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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.