HomeMy WebLinkAbout2011-12-19 Finance Committee Minutes
FINANCE COMMITTEE
December 19, 2011
Minutes
Councilors: Durgin, Blanchette, Hawes, Gallant, Sprague, Gratwick
Staff: Cyr, Birch, Dawes, Conlow, McNeil
1. Bids/Purchasing
a. Backhoe Loader – Fleet Maintenance – Nortrax - $87,000 (net of buyback
$57,800)
Cyr explained the life cycle costing process which has a buyback provision. The
vendor is required to guarantee a price at which they will buy the equipment back at
the end of five years. Staff recommended awarding the bid to Nortrax. The cost of
the equipment is $97,400. Nortrax has guaranteed to buy back the equipment for
$39,600 at the end of five years resulting in the net life cycle cost of this equipment
$57,800. The City also will be turning in a piece of equipment and receive a
$57,800 buyback for that piece of equipment. Out of pocket costs this year will be
$39,600 for a brand new 2012 John Deere backhoe loader. This bid was issued to
six vendors and only two responses were submitted. A motion was made and
seconded to approve staff recommendation. The vote was unanimous.
b. Extension of Water Quality, Hydrologic, Monitoring & Data Management
Services Contract for Bangor Impaired Streams – Engineering – Sewall
Company - $12,917
In the spring of 2009, the City issued a request for proposals to begin collecting
stream flow and water quality data from the City’s impaired streams. That contract
expired in August of 2011. Staff would like to extend the current contract with
James W. Sewall through June 30, 2012 which will allow staff to put a bid proposal
together for a longer term service contract in an amount not to exceed $12,917.
Conlow said that the City is being proactive in this area. A motion was made and
seconded to approve staff recommendation. The vote was unanimous.
2. Order, Ratifying the Execution of a Sublease Agreement Between the
City of Bangor/Community Connector and Downeast Transportation,
Inc., for the Lease of Two Transit Buses
McNeil talked of recently discovered major structural problems with several of the
buses, specifically frames. After a State Inspection, three buses were removed from
service and permanently deadlined due to the cost of repair. Hence, some of the
spare buses were put in as front line buses which reduced the spare fleet at the
worst possible time (the winter months). The Island Explorer, which is a division of
Downeast Transportation, goes out of service for the winter months. McNeil spoke
to the Downeast Transportation’s general manager about leasing two buses for back
up spares. The buses are medium in size, heavy duty 10 year buses and similar to
the ones pulled out of service. The lease rate is $600 per vehicle and will come
equipped with snow tires. The mileage rate will be 24 cents/mile. The buses will be
house at the Community Connector for three months until the end of March. McNeil
asked for Committee permission for the City Manager to sign the lease agreement.
Responding to Sprague, McNeil said his intention is to store the buses and not have
to use them. McNeil has received notification from the State verifying serial numbers
of the new vehicles but he does not have a date for their arrival. The waiting period
th
ends the 15 of January. Hawes asked if the City has a statement of condition of
the two buses from the Island Explorer. Dawes said that the two units were used all
summer but just moth-balled for the winter months. Caldwell Diesel in Ellsworth will
bring the two buses back into shape. The three buses taken out of service will go to
auction or sold as salvage. A motion was made and seconded to approve staff
recommendation. The vote was unanimous.
3. Assessing Department Quarterly Update
Birch provided a quarterly overview covering August, September and October of
2011. Conlow commented on the City’s agreement with the Town of Veazie for
assessment services. If the amount of time required by the Assessing Department
exceeds the revenues collected, the City will reevaluate the agreement and return to
the Council.
4. Order, Accepting Donation of Website Content Management System
from Sutherland Weston Marketing Communications
Cyr noted that the Committee discussed this at its meeting on December 5, 2011
and a number of questions were raised regarding donations, gifts, and conflicts of
interest. Since that meeting, the City Solicitor sent a detailed email to Council, and
the item is returning back for the Committee’s consideration. Sprague asked the
role of the Ethics Committee. Durgin said that the Order needs Council approval
and the first step is to have it come before the Finance Committee. Heitmann said
that this is not an ethical question, but it is a policy issue. If the Council does not
want to accept gifts from any councilor or councilor business, it could be added to
the City’s current policy. Responding to Gratwick, Heitmann again said it is a policy
issue, not an ethical issue. Hawes said that this particular item falls under an
existing policy that dictates there is not an issue. A conflict should not be declared
in mid-stream or at the end of a race. Blanchette stated that last week she had
asked for a roll call vote as to whether Council Chair Weston should be at the table
for this discussion and that request was not granted. Blanchette stated that she had
no problem supporting the acceptance of the donation but questioned the
perception of favoritism that was shown. The perception of a conflict is more
damaging that the actual concept. Heitmann said the conflict is not whether or not
to accept the gift. The conflict is on a councilor’s participation and discussion. The
City’s Ordinance states that the conflict is to be determined by the Council or a
Council Committee. If a conflict is declared, the councilor is not to participate in the
discussion or the voting process. He stressed that participation can be in the form
of presence as it could exert influence. If this item moves to a Council meeting, a
determination needs to be made at that time as to whether or not Council Chair
Weston has a conflict. Concerning the donation, Gallant said there is nothing in the
ordinance indicating it a conflict of interest. He said that it is the Council’s duty to
determine that prior to the next Council meeting. Heitmann and Sprague spoke of
the role of the Board of Ethics. The Council is the body that determines if there is
an ethical issue.
A motion was made and seconded to move the item to full Council. The vote was
unanimous.
Adjourned at 5:57 pm.