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HomeMy WebLinkAbout2011-06-06 Finance Committee Minutes FINANCE COMMITTEE June 6, 2011 Minutes Councilors: Bronson, Durgin, Weston, Hawes, Blanchette, Nealley, Gratwick Staff: Cyr, Conlow, Cammack, Beaton, Morgan, Wallace, Nicklas Others: Glen Wilson, Leonard Chapman 1. Consent Agenda Bronson noted that item c. will be removed from the Consent Agenda. A motion was made and seconded to approve Consent Agenda items a. and b. a. Report of Bids Awarded by Staff – May 2011 b. Authorizing Application to MEDEP for Section 319 Non Point Source Grant Funding c. Accepting a Donation to the Bangor Police Department of Laptops from Target 2. Bids/Purchasing a. Rehabilitation of Common Wall – Community Development – Copia Specialty Contractors - $50,000 - $59,100 Cyr noted that this is the commonly referred to Zoidis Lot on Central Street. There is a common wall on the right hand side of the lot. The City obtained the property and tore down the building but needed to leave one of the interior walls standing as it serves as an exterior wall for that building. The owners are willing to take over future maintenance and ownership of that wall provided that the City brings it up to a working condition. At this point, water seeps in and around it. The City issued a bid for service to dig, put in proper waterproofing and perform needed repairs. The recommendation is award to the low bidder. There is a bid alternate because it is not certain how much additional drainage might be required until the digging is complete. But in either case, Copia Specialty Contractors was the low bidder for both the base bid as well as with the alternatives. The final contract will range between $50,600 and $59,100. A motion was made and seconded to approve staff recommendation. Responding to Durgin, Cyr said there will be a written agreement on an upcoming Council agenda for ratification. Nicklas said the agreement will give the entire wall and the land underneath that wall to Ms. Lundy, who owns 30 Central Street. Should the City later decide it wants to use the wall the City would have to prepare another agreement. There is not a clause indicating that the City has the ability to use that wall without the owner’s permission. Nicklas will also check with NOE about the wall on the other side. Conlow asked for clarification of the vote. Nicklas said the agreement will come forward to the Council. Cyr said the purpose of the bid is to stop water from entering Ms. Lundy’s property. Responding to Durgin, Nicklas said it is currently a common, party wall. Given that there hasn’t been development at the site for a long period of time the City was no longer interested in using the property for development of a building. He questioned why the City would continue to maintain the wall if not planning to use it. The interest of Ms. Lundy may be less if the City wishes to keep its right to build upon that wall. Blanchette questioned why the City would want to build or develop the lot. It should be declared a green space for the City. Weston felt it inappropriate to rule out any future development and to keep options open. Nicklas said it might be useful to gather further information relating to the status of the other side wall. Weston suggested checking with the property owner of the other wall. The Committee vote was unanimous. b. Sprinkler System Installation – Fire – Sprinkler Systems Inc - $124,000 Central Fire and Station 5 do not have sprinkler systems. The Fire Department applied for and was awarded an Assistance to Firefighter Grant to install sprinkler systems in both facilities. The grant was $100,000 and required a 20% match which the City has funded through the improvement reserve. A lot of bids were issued and 3 were received. The recommendation is to award to the lower bidder, Sprinkler Systems, Inc., of Lewiston in the amount of $124,000. Cyr pointed out that this company installed the sprinkler system at Station 6. Weston asked if Maine Fire Protection is a taxpayer in Bangor. Cyr responded affirmatively. Responding to Durgin, Cyr said the highest bidder is a general contractor and would probably sub the work out to sprinkler contractor. A motion was made and seconded to approve staff recommendation. Weston doubted the motion and would like to see the local bidder awarded. The Committee vote was 4-1 for staff recommendation. c. Gate 2A Trench Drain Replacement – Airport – Lou Silver, Inc - $390,610 This item relates to a trench drain in the concrete which drains the impervious surface off to the appropriate collection system. It is crumbling and falling apart. Staff recommendation is to award to the low bidder, Lou Silver, Inc. in the amount of $390,610. Cyr pointed out that this project is part of the City’s Airport improvement plan as an AIP project. 95% of the funding comes from a federal grant, 2.5% comes from the MDOT and the Airport. A motion was made and seconded to approve staff recommendation. The Committee vote was unanimous. d. Custodial Services – Airport – River City Commercial Cleaning - $286,650 The City contracts for custodial services at the Airport as well as at City Hall. The bids are put out simultaneously. 9 bids were received. The recommendation for the Airport is to award the bid to River City Commercial Cleaning for a three-year contract at $286,650. The contract allows for a three-year extension. River City is the incumbent, and the City has been pleased with their services. Bronson noted Councilor Nealley’s arrival and further noting that Nealley would be a voting member in place of Council Chair Hawes. A motion was made and seconded to approve staff’s recommendation. The Committee vote was unanimous. e. Custodial Services – City Hall – River City Commercial Cleaning - $34,710 This is a similar bid for services as item d. but for City Hall. River City is the incumbent. Eight bids were received, and the recommendation is to award the bid to River City Commercial Cleaning in the amount of $34,710 for a three-year contract with a three-year extension. Blanchette asked for information relating to the duties of River City at City Hall. Wilson of River City responded by first thanking the City for accepting their award. In the past couple of contracts, River City has two custodians for City Hall responsible for the basement, first and second floors of City Hall. The City’s daytime employee, Ward, is responsible for the third floor. On occasion, River City has been asked to take care of the rd 3 floor to cover vacation time. In the City Hall bid this year, Wilson noted that the bid was for all four floors. River City has 50 hours/week at City Hall. The amount of the responsibilities with the current three floors is substantial and the two custodians would not be able to add the third floor. Wilson discussed his concern clarifying that he had missed the reference to the third floor when reviewing the original document. To meet the needs of City Hall, an additional 7 hours/week would be needed to accommodate the third floor. Each bidder came in to meet with Ward to go through the building. There was only one bidder who expressed concern about the allotted hours, and it was not River City. Cyr will meet with River City to work out the issue. There is no money available in the budget to cover the increased hours. Hawes said she would be more concerned with the floors which have the highest amount of traffic and wondered if hours from the basement could be decreased. Cyr said it is entirely possible. She noted that cleaning and maintenance have always been separate. For Durgin, Cyr said the existing contract is 2,600 hours. Responding, Cyr said that Ward does not do cleaning but maintenance. Ward spends an hour each morning picking up trash from the third floor, cleaning off the steps, the back alley way, restroom maintenance. Wilson noted that his initial contract with the City was for 70 hours per week, and, over the years, it was subsequently cut to 60 hours and then 50 hours for the three floors. Nealley said perhaps year two and three could be adjusted after going through the first year of the contract. It will provide Cyr and Wilson time to evaluate the service and hours. As it now stands, Cyr said the City has bid for 2,600 hours of cleaning service, and she recommends contracting for 2,600 hours of cleaning services. If the Committee awards the bid, staff will meet with Wilson to work through the priorities, determine if there are any gaps, and, if so, to find a way to service the gap. Blanchette talked about the lack of cleaning in the Council Chambers, and suggested that River City take over the third floor cleaning and Ward take care of the basement. A motion was made and seconded to approve staff’s recommendation. The Committee vote was unanimous. f. Odlin Road I-395 Pedestrian Improvements–Gardner Construction - $124,186 The improvements will include a pedestrian signal crossing at Odlin-I395. This is a Maine DOT/BACTS project which is locally administered with 80% of the funds provided by the State and a 20% match by the City. Staff recommendation is to award the bid to Gardner Construction, the low bidder, at $124,186. A motion was made and seconded to approve staff’s recommendation. The Committee vote was unanimous. g. Primary Tank Repairs – WWTP – GS Bolton - $43,750 This is repairs for tank #2 and is the last of the tanks in need of repairs at this point. Staff recommends award of bid to the low bidder, GS Bolton, in the amount of $43,750. The second low bidder is Copia Specialty from Brewer in the amount of $44,400. The City has awarded a significant amount to work to Copia over the last two meetings. Responding to Bronson, Cyr said the City’s past experience with Copia has been satisfactory. A motion was made and seconded to award to Copia Specialty, the second low bidder. The Committee vote was unanimous. h. Request to Waive Bid Requirement – WWTP – Portable Flow Meters The request is to waive the bid process for portable flow meters. The City was recently contacted by ADS Environmental Services who provides the WWTP with the other flow meter monitoring equipment. WWTP has a number of flow meters that are approaching 20 years and in need of replacement. As the City prepares to enter Phase II, long term control program, proper monitoring will be essential. Through the end of June, ADS is offering $1,000 trade-in on the old meters. Staff’s recommendation is to sole source the purchase to ADS Environmental Services for ten flow meters in order to provide compatibility between the systems, program and maintenance of the flow monitors. Maine DEP will allow the WWTP to use its unexpended State Revolving Loan Funds for the purchase. Cyr explained that the State Revolving Loan is basically a subsidized bond which was issued 12 months ago. There is always a plan for sewer projects for a two-year period but some do not come to fruition; i.e., the French Street project is currently under question due to a number of utilities under the street that cannot be identified or located. Until settled, the project will not be started. Bronson questioned not sending this item out for bid. Morgan noted that it is a compatibility issue. ADS’s monitors would allow the City to use the software and equipment currently in place to interrogate the five monitors that are active CSOs within the City. A motion was made and seconded to approve staff recommendation. The Committee vote was unanimous. 3. Request to Purchase City Land – 1043 Ohio Street Nicklas noted that Leonard Chapman of 1043 Ohio Street would like to purchase a small strip of land, about ¼ acre, from the City owned parcel at the rear of his property. Chapman would like to purchase a 40 ft. strip of this land which would provide him enough property to subdivide his land into two lots. He has 250 ft. of frontage on Ohio Street which would allow him to have a flag lot in the back and a normal lot in the front. The request came before the City in 2007 and, at that time, the Finance Committee was not interested selling the strip of land. The Assessing Department values the land at $686.00. Chapman addressed the Committee. He would like to give his current home to his children and build a single family home on the back of the property. The lot is Agricultural and Resident and it cannot be divided without the back 40 ft. strip. Responding to Nealley, Nicklas said if the land was to be sold to Chapman it would still be roughly 200-400 ft between the boundary of the property and the Kenduskeag Stream. He is not aware of any law that would require the City to hold onto a larger portion of that property. The land in question is currently landlocked and does not have road frontage. It is buildable as it currently exists. Morgan indicated there is a sewer easement, an access to road to service that sewer along that parcel of land, and that might be why the City owns the parcel. Responding to Bronson, Morgan said he would need to plot the City’s sewer across the property to determine if sale of the property would interfere with access. Weston was disappointed that this had not been determined prior to coming to the Committee. He made a motion to support the request so long as it does not interfere with the City’s access to its sewer. Durgin asked if there is another way to approach the disallowed use of that lot to change the right-of-way to it so that it could be developed without the 40 ft. strip. Nicklas said that in order to have a conforming lot in this RR&A zone, the additional land is needed for two lots. Durgin asked about a waiver. Assuming that it would require a variance in order to do so, Nicklas said that waivers are almost impossible to come by. Conlow suggested that there might be other mechanisms to look at in order to accommodate this particular request such as to transfer the property but still maintain the City’s sewer rights. Staff would then return with a better solution. Nicklas said it should not be a difficulty. Nealley seconded the motion. Blanchette noted that the second structure would be an asset to the neighborhood. The Committee vote was unanimous. 4. Discussion of Current Fund Balance Policy, Overall Direction for Future Policy as Required by Implementation of Governmental Accounting Standards Board Statement 54 Bronson noted Councilor Gratwick’s arrival. Cyr said that since the mid 90’s the City of Bangor has had an extensive and detailed “Designated and Undesignated” fund balance policy. At a meeting earlier in the year, Joe Cuetera, the City’s Financial Advisor, met with the Finance Committee to discuss bonds, financial markets and also fund balance. Recent changes in Governmental Accounting Standards require the City to adopt a new fund balance policy. The changes will bring consistency in the terms of fund balance and the types of funds set up among governmental entities. Under the new standards fund balances will no longer be classified as reserved for, designated and undesignated, but now must be classified for financial statement purposes as non-spendable, restricted, committed, assigned and unassigned. The policy classifies fund balances in accordance with the recent accounting standards and maintains the Council’s prior decisions related to fund balances. The only provision of the attached policy that is proposed to change is the target level of unassigned (previously referred to as undesignated) fund balance. By Charter this fund balance shall be no more than 10% of the operating, excluding debt service for the General Fund and no less than 5%. By prior policy, the Council had established a target of 7.5%. The fund balance policy proposes a new target of 8.33%, or one month’s expenditures. Cyr noted that the Council will not see much change but will see change in the actual audited financial statement and the reclassification of school department grants. Currently all education items are put through the general fund but will now be in a special revenue fund. Cyr will be drafting a policy that will replace all of the City’s old policies and supersede them and it should be ready for review at the next Finance Committee. Cyr asked for Council feedback, concerns, general direction and asked if there is a desire to draft a Charter Amendment related to the Undesignated Fund Balance for voter consideration in November. Responding to Bronson, Cyr said the policy should be adopted by the end of the current fiscal year. In response to Nealley’s question as to how long unexpended dollars should remain in designated reserve funds, Cyr said it is reviewed during each budget process. To set time or dollar limits can sometimes have unintended consequences. She said that maximum limits could be considered. Nealley and Cyr spoke about depreciation of buildings. Cyr and the City Manager have been discussing the fact that the City does not have a building reserve. They have discussed consolidating equipment, buildings and have reserves to deal with all of it and to return to a five-year capital plan for each department to layout in terms of priorities. But unless the reserves are funded, the policy doesn’t matter. Due to the economy, declining properties values, lack of significant growth and the Council’s desire to keep the tax rate flat, Cyr said the reserves would not be able to be funded. Durgin and Cyr spoke about the committed and assigned categories under GASP 54. Responding to Weston about the percentage of fund balance, Cyr said it is the total expenses of the City less debt service. It does not back out education. Committee adjourned at 6:50 pm