HomeMy WebLinkAbout2010-10-18 Finance Committee Minutes
FINANCE COMMITTEE
October 18, 2010
Minutes
Councilors: Bronson, Wheeler, Nealley, Stone, Hawes, Blanchette, Weston
Staff: Cyr, Ring, Cammack, Gastia, Little, Wellington, Farrar, McKay
Others: Eric Russell, Peter and Jennifer Brown
1. Consent Agenda
a. Write-off of Interest – 16 Penn Plaza
Little explained that #23 at 16 Penn Plaza was sold in the City’s fiscal year 2006, and
the City received full payment of all taxes a year later. Wells Fargo then indicated they
had made a mistake because the money wasn’t to go towards that account. Wells Fargo
asked for a reimbursement. The money was refunded by the City leaving a balance
due on the account, but the balance at the time of property sale was combined with
another one. So this particular account was no longer being assessed. The City
continued its normal procedure of sending notices to the assessed owner. When past
due notices were issued this past April, they were sent also to the assessed owner as
well as the newly assessed owner. The new owner called, Little explained the situation,
and the new owner contacted their attorney as well as the attorney for the previous
owner. The new owner has proposed to pay the principal portion due but would like
the City to waive the interest. Little recommended waiving the interest. The property
is no longer being assessed and the request for the refund was well after the time
period in which a lien could be placed on the property. The City’s only recourse would
be through the court process for the $400. Bronson asked if this was due to a clerical
misstep. Little said no; the error was on the part of Wells Fargo. A motion was made
and seconded to approve the Consent Agenda.
2. Bids/Purchasing
a. State Street Manhole Project – WWTP – Sitewerx - $77,965
Cyr said there are some structural issues with the old brick sewers on the lower end of
the State Street. A structural relining is planned for the future. In order to do the
relining, the City needs access to the systems. The City issued a bid to install 4 six-foot
diameter sewer manholes in which to gain access. These would be installed on top of
the existing brick sewers on State Street. The bids came in higher than monies
available. Engineering reviewed it and determined it could be done with the three most
crucial access areas at this point with the fourth being added at a later. Engineering
went back to both bidders and, with the manner in which the items were bid, there is
quantity information. Quantity deductions were made without putting the bid process
at risk. Staff recommendation is to award the bid to Sitewerx, the low bidder, at
$77,965. Responding to Stone, Ring said he wasn’t certain why both bids came in over
budget. Usually there are more than two bidders on this type of project. A motion was
made and seconded to approve staff recommendation. The item will be forwarded to
full Council for final action.
b. Performance Management Review Services – Police and Fire
Back in July, Cyr noted that the Council passed an Order authorizing the issuance of a
Request for Qualifications for consulting services to review public safety operations. On
th
September 8, the City received 18 responses to its RFQ. All proposals were
individually reviewed by 4 staff members (Cyr, Gastia, Cammack, Farrar) with a
unanimous opinion that there was not a clear frontrunner. The top four ranking
proposers were invited to participate in an interview process. On September 28 and
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29, the four involved staff members in addition to Councilor Chair Stone and Councilor
Bronson interviewed: Resource Management Associates, Emergency Services
Consulting International, Matrix Consulting Group, and McGrath Consulting Firm.
Interviewees were asked specific questions that arose from their proposals and the
group focused on experience, qualifications and project methodology. Cyr included a
brief outline along with the Committee’s agenda background on each of the four
groups. With police, she found that the responders tended to be organizational type
studies or in communities that were not as similar to Bangor as would have been
desirable. With fire, the responders seemed better and Emergency Services Consulting
works with fire services only. In the end, all projects are intended to take between 4-5
months to complete. The recommendation of the entire reviewing/interviewing
committee is to award a contract to Emergency Services Consulting, Inc., the best fit
for Bangor’s operations. in the amount of $30,629 plus out of pocket expenses not to
exceed $51,033 for the review of the Fire Department management review services and
a contract be executed with McGrath in the amount of $35,685 for review of the Police
Department services.
Nealley and Cyr spoke about the fact that the firms will work independently of each
other but can pool different information to see if things brought up in one department
or another that may be of benefit to the other. Nealley made a motion to move staff
recommendation. Responding to Weston, Bronson said the item will be moving forward
to full Council. Cyr said that technically it doesn’t need to go to full Council as each
individual contract is under the $50,000. Given Council interest, Cyr said there is no
reason why the contracts cannot go to full Council as individual Council Orders. She
also noted that the Committee will also be discussing payment of these services in
agenda item #3 which will come back to the Council at their upcoming meeting for final
action. Nealley clarified his motion that the Finance Committee recommends staff
approval realizing that the dollar amount will be addressed by full Council. At that time,
there will be time for discussion. Bronson clarified that Nealley did not recommend
sending the award of contracts to full Council. Weston seconded the motion with a
doubt. Bronson preferred that the contracts be sent to the entire Council. The process
began as one project and technically the combined amounts would be over $50,000.
Stone would like to hear Weston’s reasoning for doubting the motion. Weston said he
preferred to see this as a motion to full Council and commented on the motion itself if a
different motion is made. Bronson said the motion has been made. Wheeler is of the
opinion that the contract awards should go to full Council. He also suggested that the
review be placed on hold until the new city manager has had time to become familiar
with all city departments and operations. Before reviewing these two specific
departments, Wheeler suggested that the next Council should consider a total review of
all city departments and wait to integrate the fire/police reviews into a master plan.
Nealley said the Council tends to rehash, and this item will be discussed again at full
Council when it goes to them with the authorization amount of the services. Nealley
also agreed with Wheeler’s suggestion for across the board review of departments,
some of which is done during the budget process. Nealley again made the motion to
accept staff recommendation to approve the two contact awards both of which are
under $50,000.
While a worthwhile goal to review all city departments, Bronson noted that he would
doubt that there is any one consultant to perform the whole job. He also questioned
the City’s fiscal ability to undertake a completely review in any one year. Wheeler said
it was not his perspective that the total review of all City departments could be done by
one or two firms.
Bronson again clarified that the motion is to authorize the two contracts be approved at
the committee level at this time. He noted that the motion was doubted. Weston
agreed with Wheeler’s suggest to wait for the city manager to arrive and become
familiar with the various departments and their respective operations. He doubted the
motion because he feels it is a topic which should be approved by the entire Council.
Bronson supports the motion.
Bronson asked for a roll call vote. Nealley: yes; Weston: no; Bronson: yes. The item
received passage by a 2-1 vote.
c. Update on Pending Bids
Cyr spoke about demolition of 4 Mill Street. In May of 2010, the City condemned the
building located at 4 Mill Street. The City would not acquire this property until liens
mature in December 2012, therefore CDBG funding could not be used for the
demolition. This building is dangerous and needs to be demolished as soon as possible.
Code Enforcement has requested permission from the Finance Committee to solicit bids
for the demolition. Cyr has a couple of recommendation for funding sources if the
Council so approves at a high-end estimated $20,000. There are funds available in the
General Fund’s Demolition and Landfill Closure reserve. Any additional needed funds are
available for any shortfall in the Improvement Reserve. Nealley and Weston talked
about the timeframe involved after a property is condemned. Nealley asked Wellington
to explain the procedure policy in place. Wellington provided detailed information.
Bronson clarified that Cyr was seeking approval to issue bids for the demolition and to
appropriate funds. Weston made a motion to recommend approval of staff
recommendation. Nealley seconded the motion.
Cyr talked about a request for the City to issue proposals to obtain Licensed Real Estate
Professionals. The City received approximately $1.2M in federal funds under the
Neighborhood Stabilization Program which allowed the City acquire foreclosed homes,
purchase, rehab and then return them to the housing stock to qualified buyers. There
are certain requirements to be met by homeowners. The City has now expended the
majority of the grant funds and has rehabbed a number of homes which are ready to
be placed on the market. The City would like to issue a RFP to hire a qualified real
estate agent to deal with the listing, sales, pricing and closing of these properties.
Nealley approved the direction from staff. Cyr said this would not require an additional
appropriation resolve because it would be funded from the sale proceeds. If the
Committee is comfortable with the direction, the RFP will move forward. Weston made
a motion approving staff’s recommendation to issue a RFP. Nealley seconded the
motion.
3. Resolve 10-344 Appropriating $71,500 from General Fund
Undesignated Fund Balance to Fund Performance Management Review
Services of Police and Fire Departments
Cyr said this is the underlying appropriation for the police/fire departmental reviews.
Based on the recommendations from the selection committee, the total amount of
pocket estimate is $71,500. Cyr recommended that the money be appropriated from
the Undesignated Fund Balance which is at $8.5M as of June 30, 2010. The
Undesignated Fund Balance is less than it had been due to lower than anticipated
revenues during the year. Stone asked if the two firms would be willing to hold their
price for a time certain to cover the concerns expressed about the new City Manager
being brought up to speed. Stone asked Cyr to check with the two firms. Cyr said she
will do whatever the Council would like but she thinks in order to do that there should
be some amount of certainty that the reviews would go forward. Bronson said this
maneuver would push the actual payment into another fiscal year. Stone said he
preferred that both the payment and the review be pushed into another fiscal year. Cyr
said there is a progress payment schedule involved. Weston didn’t see the need to wait
and said he opposes the actual review process. Hawes talked about the use of
Undesignated Fund Balance and past discussions when the Council was dealing with the
tax rate for the current fiscal year. She recalled that it was a matter of not using it
because of pending emergency use. Hawes did not feel that using it for department
performance review is an appropriate use. Nealley spoke about precious discussions
and decisions amongst the Council to move forward with the fire/police department
reviews. He doesn’t feel it is appropriate now to talk about putting it on hold for the
arrival and settling in of the new City Manager. He would like to see the City move
forward as originally intended in this area. The final reports will be reviewed by the
Council and City Manager. Nealley spoke about savings which will be equivalent to if
not exceed the amount of the expenditure. If the consultant’s report indicates that the
City is not spending enough money on overtime, then the wrong consultants were
hired. If the consultant’s report suggests hiring more direct labor units to decrease the
demand forward upon employees to work overtime on in calling them in at late night,
then perhaps there will be savings in the overtime budget alone when $1.2M
collectively is being spent on public safety overtime. The City had its Interim City
Manager and Police Chief provide in their initial Police Department budget $80,000
worth of projected savings just in overtime. The amount proposed to be spent on the
consultant’s reviews for both departments is less than that amount. He could suggest
that the money for the reviews come from the public safety overtime budgets but he
rather suggested the money from the Undesignated Fund Balance. Within the first
fiscal year, savings will have been achieved savings from acting on the consultant’s
recommendations to replenish the expenditure. Nealley made a motion to move
Resolve 10-344 to the full Council. Weston said he is still opposed to it but since it will
be going to full Council he offered a second.
Blanchette said that she respected Nealley’s opinion but that he knew when entering
into this that there was a possibility that the consultant find that the city is grossly
understaffed in either or both the Police and Fire departments, and that the Council
would take that under consideration. She didn’t agree with Nealley’s comment about
not accepting that possible decision by the consultant just because it isn’t what the
Council wants. It sends the wrong message. She is hurt and resentful of that. A witch
hunt has never been needed. She has never felt that the departments are not being
truthful with the Council. She doesn’t think that the Police and Fire Departments have
ever been out of line. Stone felt that Nealley was saying that if the consultants indicate
that the over time is fine then Nealley meant that the consultant should look at it more
completely and hire more employees to reduce the overtime and the cost of the
additional employees may be less than the overtime. Blanchette said she is not worried
about how the Committee heard it but she is worried about what the public is hearing.
The public is hearing that the Council feels that the Fire and Police Departments are
racking up overtime unnecessarily. Nealley clarified his comments. He has never
questioned the need for additional labor units. He again referred back to the budget
session at which the Interim City Manager and Police Chief recommended an $80,000
savings in the overtime budget and then it was later whittled to $40,000. There was
not a consensus among the Council for the $40,000 and the idea was dropped. Nealley
said he never insinuated that any department was unlawful or negligent. Nealley then
spoke about Bangor’s past decision to not join regional dispatch and the redundancy in
costs with both the city and county. Bronson spoke in favor of the review.
Farrar clarified that Nealley is correct in that the Interim City Manager’s proposed
budget did recommend an $80,000 reduction in the police overtime account. He
wanted to make certain that it was his (Farrar’s) recommendation as he needed to
bring forth difficult recommendation to bring a proposed budget to the Council. The
Police Chief opposed that reduction from day one.
Bronson clarified that the motion had been moved the seconded to approve staff
recommendations to move this item on to full Council. The vote was not doubted.
4. Executive Session – 36 MRSA Section 841(2) – Hardship Abatement
A motion was made and seconded to move into Executive Session.
5. Open Session – Hardship Abatement Decision
A motion was made and seconded to approve staff recommendation.
6. Executive Session – 36 MRSA Section 841(2) – Hardship Abatement
(Material to be provided at meeting)
A motion was made and seconded to move into Executive Session.
7. Open Session – Hardship Abatement Decision
A motion was made and seconded to approve staff recommendation.
8. Discussion regarding Workout Agreement – 110 Pearl Street (Material
to be provided at meeting)
Council directed staff to enter into a workout agreement that includes a variety of
requirements that were presented by staff.
Adjourned at 6:10 pm.