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HomeMy WebLinkAbout2010-03-15 Finance Committee Minutes Finance Committee March 15, 2010 Minutes Councilors: Blanchette, Weston, Bronson, Wheeler, Nealley Staff: Cyr, Cammack, Little, Higgins, Hupp, Ring, Wardwelll, Heitmann, Gastia, Others: Erik Russell 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda items a. to l. In response to Blanchette’s suggestion, Bronson read each item. Responding to Weston, Cyr explained the nature of a quitclaim deed. a. Quitclaim Deed – 383 Broadway b. Quitclaim Deed – 2735 Broadway c. Quitclaim Deed – 190 Burleigh Road d. Quitclaim Deed – 178 Cedar Falls e. Quitclaim Deed – 205 Cedar Falls f. Quitclaim Deed – 57 Division Street g. Quitclaim Deed – 132 Parkview Avenue h. Quitclaim Deed – 20 Pray’s Park i. Quitclaim Deed – 28 Roger Street j. Quitclaim Deed – 49 Rutland Street k. Quitclaim Deed – 41 Sixth Street l. Workout Agreement – 87 Holiday Park 2. Bids/Purchasing a. Update on LED Streetlight Project During the FY10 budget process, the Council authorized the execution of a contract amendment with Honeywell to convert 319 metered streetlights to LED fixtures. As part of the ARRA 2009 stimulus funding, the City was awarded $161,000 in Department of Energy Efficiency Block Grant funds and also awarded more than $232,000 in Department of Housing and Urban Development’s Community Development Block Grant recovery fund. $100,000 was designated for the LED project. A majority of these are in the City’s downtown and waterfront area and the Council authorized appropriating $275,000 from the City’s Downtown TIF to accomplish this project. The total cost of the project is just over $523,000. It will convert the 319 metered fixtures to LED. The estimated savings on the LED fixtures for electricity is $34,000/annually. The increase and efficiency and reduced associated maintenance costs is significant. The project will move forward within the next month or so. Responding to Nealley in terms of windows, Cyr said she will follow up with Efficiency Maine to see what other programs may be available noting that Efficiency Maine dollars are normally tied to electricity use and consumption. Wheeler asked the total number of streetlights in the City. Ring said approximately 3,060. b. Update on Pending Bids Cyr noted that the first item is a mower which is used City-wide and which was included in the FY10 budget for $50,000. The current unit is a 20 year old John Deere, and its performance is declining steadily with breakdowns/repairs. A significant amount of money may be needed for repairs in order to use it for the coming season. Because of an attachment to a new machine, it will offer more versatility and perhaps eliminate the need for the City’s hill mower. The new unit would be a 4-wheel drive with an improved mower deck discharge giving a better appearance to the finished cut of lawns. It will be bid out within the next week and will be in place for the first mow of the season. Also part of the FY10 budget in the amount of $30,000 is the Golf Course fairway mower. It will replace a 1990 Torro unit, which is currently out of service and in need of a new engine as well as reel repairs at a cost of $5,000. Cyr discussed window replacements on the ramp side of the International Arrivals Building at BIA. These are the original windows installed in the 1992 expansion project. They are clear and covered with a tinting film which is now peeling. Due to dry-rot, the weather stripping is falling apart. The window frames are still in good condition but need to be refinished. The Airport recommends re-glazing and weather stripping on the first and third floor of the building. The second floor consists of bronze color panels installed to image glass panels and are also due for replacement due to rotting. The total estimated cost of the project is $36,000, which was approved as part of the FY10 budget. Responding to Nealley, Cyr said it may be possible to obtain a quote from this company for the City Hall windows but noted that the Airport’s windows are extremely different. Cyr noted that she will be talking with the Historic Preservation Commission regarding the City Hall windows at their first meeting in April to discuss if HPC will allow vinyl replacement windows and if they are willing to allow it over time, if needed, doing one-third one year, the next third another year, etc. The next item is replacement of the trash cooker boiler. There is an Airport tenant, Jerry’s Catering, who provides catering and trash disposal service for BIA aircraft. Trash removed from an aircraft is required to be disinfected and the trash cooker performs that function. It is owned and operated by the tenant but, as their landlord, the Airport is responsible to provide sufficient steam for the disposal process by maintaining a 630,000 BTU steam boiler, which is gas fired. It has been in service for over 14 years and requires continuous repairs/maintenance. The Airport recommends the purchase of a new Columbia boiler for installation by licensed Airport personnel. The estimated cost of $16,000 was part of the FY10 budget. Responding to Weston, Cyr said that the lease with Jerry’s Catering includes the maintenance of certain items including the boiler. All of the rentals at BIA are calculated based on the policy which is the 8% of fair market value. Nealley talked about spending money for repairs as opposed to purchasing a new unit and the need to look closely at future capital expenditures. Cyr spoke about rain gutters and heat trace tape for Dock 10, 11, 12 and 13 at BIA. All four hangars have the industrial steel rain gutters and downspouts which were installed at the time of construction in 1953. The current guttering is rusted and split in places. The Airport would like to install new heavy duty industrial steel gutters and downspouts and would like to add heat trace tape in each gutter to be turned on during the winter months. Total estimated cost is $48,000 and was part of the FY10 budget. Cyr discussed a ceiling upgrade for the Airport’s transit lounge in the IAB. The existing grid system fits 2x4 tiles. The Finance Committee has previously authorized BIA to salvage the existing grid system and install 2 ft. cross T’s at the half point thus allowing change in the configuration of the ceiling tile from 2x4 tiles to 2x2 tiles. The project was initially postponed because of the new roof project. The Airport is now ready to move forward with this project and $20,000 has been budgeted for it. Responding to Bronson, Cyr confirmed that this is for installation of the cross T’s and the 2x2 tiles. Bronson asked if the acoustics will be improved with the installation. Hupp said the acoustical issue is with the air handling unit. During prolonged meetings in this area, the air handling unit is turned off. She is also looking at other alternate locations for large meetings. With the ceiling tiles down, Bronson suggested it might be a good time to look at an acoustic solution. Hupp agreed. In response to Weston’s question about Airport bids, Cyr said the Airport as an enterprise fund which generates its own revenue sufficient to cover its operating as well as capital expenses. The bid will be coming out of Airport specific funds and will in no way impact the general fund. The Airport does pay an indirect cost relating to the administration of the City in that they bare a portion of the costs of human resources, administration, and legal, etc. The FAA is specific in that revenues generated by BIA must be spent on aeronautical purposes. c. Air Service Development Services – Airport – Boyd Group For a number of years, the City has had a consultant under contract to provide air service development services for scheduled air service. The City received 4 responses to its RFP: Boyd Group International, InterVistas, SH&E and Sixel Consulting. The Airport Director, the Airport’s Marketing Director and Finance Director Cyr reviewed all submissions as to qualifications, experience, methodologies, and cost. A fairly lengthy phone interview was done with all respondents. Staff’s recommendation is to award the contract to the Boyd Group International. Nealley made a motion to approve staff’s recommendation. Hupp noted that domestic air service in Bangor is of most interest when it comes to airport operations. Boyd’s insight into the industry as a whole and advice is very valuable. The motion was seconded by Weston. d. Market Demand Study – Airport – Boyd Group Hupp said a very similar process was used for the market demand study as was used in the previous item. Three responses were received and interviews were conducted in much the same way. Unanimously, the Boyd Group was determined to best provide this service which will help BIA determine how many passengers originate into the Bangor Airport region but not using BIA. This type of study was conducted in 2003 and it is timely to have another study completed in trying to recruit additional airline service. A motion was made and seconded to accept staff’s recommendation. e. Sole Source – Mobile Data Terminal Equipment – Ritec - $23,949 In 2008, mobile data terminals were placed in all public safety vehicles, both Police and Fire. A very lengthy process took place connecting all of the communication points within the City with fiber which then ties into mobile data and signals are picked up wirelessly. The initial report identified 8 core access points to be located throughout the City for start up and signal coverage and also identified locations for supplemental sites to improve coverage. Some ‘dead’ spots still remain in the area of St. Joseph Hospital’s on Center Street, Broadway at I-95, Essex Street from I-95 to Stillwater and the surrounding neighbors. St. Joseph’s will allow the City to install an antenna and microwave dish on the roof on the Center Street side of their facility. The same type of equipment and operating agreement is in place with EMMC. The cost and installation is $23,949 and staff requested the item be sole sourced to Ritec, the owner and installer for the current network in place. This is part of the 2008 Homeland Security Grant program and is 100% federally funded with no local match required. In response to Weston, Cammack said this is directly related to the mobile terminal data and not cellular communications. A motion was made and seconded to approve staff recommendation. 3. Resolve, Opposing LD 1808, the Oxford County Casino Referendum Heitmann said this item appears at the request of Councilor Bronson. Last year, a referendum question on the ballot dealing with this issue failed. A new group has made changes to the bill and it is now before the Legislature, which has three choices: pass the bill as submitted through the petition effort, send the bill to the voters by itself, or send the bill to the voters with a competing measure. From Bangor’s standpoint, the way the bill is written it would limit a casino only to Oxford County. It would result in table games not being allowed at Hollywood Slots or anywhere else. It has a tax structure with a total of 46% payments. The current bill that affects Hollywood Slots has a 49% payment. The beneficiaries are also different. It all works to create a situation where Oxford County alone would have a full blown casino with slots and table games. Heitmann met with the Legal and Veterans Affairs Committee last week at which time Rep. Martin spoke in opposition to the bill. Heitmann feels that Bangor is well served by Martin. During the public hearing, some suggestions were made that parties should look to reach an agreement on a competing measure. A conference call between parties was planned for this discussion but did not take place. Heitmann asked the Committee if it wants to recommend that the Council take an official position in opposition to the referendum question. In response to Nealley, Heitmann noted there is a clause in the bill stating that after January 1, 2011, any proposed casino or slot machine facility may not be issued a license unless approved by statewide referendum vote and vote of municipal officers or municipality in which the casino will be. Heitmann said this allows the local town officials, not the community, to vote in favor. Weston expressed his discomfort with the proposed Resolve. He spoke about the Bangor Council and the Bangor Legislative Delegation feeling it would be in his best interest to use Bangor’s Delegation to voice Bangor’s position. He suggested an open workshop with the Delegation. Heitmann said there is not a sense of urgency with the Resolve. He said that Rep. Stevens has been working closely with Hollywood Slots and Rep. Martin spoke at last week’s meeting with the Legal and Veterans Committee noting that it is clear that the two Bangor Delegation members are on the same page as Bangor. It would be useful to make sure the Delegation does understand Bangor’s position. Weston felt the Council should make an effort to meet with the Delegation in Augusta. Blanchette noted that gambling laws need to be uniform for the entire state. If this Resolve is passed by Council, it is important to work with the Legal and Veterans Committee, Bangor’s Delegation and Senator Plowman. Responding to Blanchette, Heitmann said the Oxford County reference to a harness track is 10 miles, not 2,000 ft. Blanchette stressed again that the laws need to be uniform. She talked about the need for Bangor to familiarize itself with the Oxford bill. She agreed with Weston regarding the importance of meeting with the Bangor Delegation and to include outlying town representatives as well. Wheeler talked about the advantage of getting up to bat early in the game. He feels that the Legislative Delegation must be aware of the blatant inequities of the bill as it now stands. In response to Wheeler, Heitmann said if approved by the Council the Resolve would be addressed to the entire Legislature. The Resolve is a document that can be used to state the City’s official position. th Blanchette said that in all likelihood it will be the 125 Legislature that will be taking action on the Oxford County casino. The current gambling laws were crafted over Bangor’s facility, Hollywood Slots. In response to Weston, Gastia said that crime in Bangor has slightly increased. There are a number of different reasons; i.e. the economy, three methadone clinics indicative of a drug problem in the area. Gastia said there is nothing that would attribute a rise in crime to Hollywood Slots. Bronson thought without an official position from the City it would restrain the City Solicitor from expressing the City’s position when in Augusta. He would like to see this move forward to Council. Blanchette supported Bangor stating its official position on the matter, even if a later updated resolve is passed. Bangor needs to be on record with the Bangor Legislation Delegation and the members of the Legal and Veterans Affairs Committee. Wheeler agreed. Weston favored a more generic statement in the Resolve regarding a fairer level playing field as opposed to just table games. He also suggested a newspaper editorial on the topic. Heitmann said he will expand the Resolve dealing with fairness and consistency. Nealley suggested wording revision in one of the ‘Whereas’ clauses dealing with tax rates and table games. Wheeler noted a typo in the ‘Now therefore’ section of the Resolve. A motion was made and seconded to move the item, with minor revisions as noted at tonight’s meeting, forward to the full Council at its upcoming meeting. Weston asked that action be taken to set forth meetings with Augusta representation. Blanchette noted that Wednesday’s workshop by the Legal and Vets Committee will probably be the last one held on the Oxford County casino. Responding to Blanchette, Heitmann suggested sending the proposed Resolve to the Committee letting them know that the nd Bangor City Council is working on it and will meet officially on March 22. Bronson noted that a majority of the Council will be together tomorrow evening for the Infrastructure Committee and the Personnel Committee. Heitmann said the discussion could be added at the end of the Infrastructure Committee. Weston noted the lack of a 24-hour notice to amend the Infrastructure Committee’s agenda. Heitmann clarified that an agenda item can be added without a 24-hour time limit; a special meeting would require the timeline. Bronson clarified there was a motion with a second, and it is a vote unless doubted. 4. Request to Accept & Appropriate Grant Funds from Stephen and Tabitha King Foundation to Purchase ANSI Approved (highly reflective) EMS Jackets for Firefighters Cammack noted that standards for reflective materials have changed over the past couple of years when working around motor vehicle traffic, which impacted Public Works, Police and Fire. To that point, the City purchased light-weight polyester nylon vests worn over coats. Some Fire Department employees wrote a grant making a request of the King Foundation to purchase coats that would meet the American National Standard Institute standards as well as the bloodbourne pathogen standards. The request was successfully granted and the King Foundation contributed $25,000. The Chief asked for Committee approval to accept the $25,000 and to come back to the Committee at a later date with a recommendation for purchase of EMS jackets for all 88 firefighters. A motion was made and seconded to approve staff’s recommendation. Cammack said the jackets are all season and are approximately $250-300/each. 5. Request to Accept & Appropriate FY2009 Homeland Security Grant Funds Cammack received notice from Maine Emergency Management on funding for FY09 for the City’s Homeland Security Grant funds in the amount of $343,680.84, which requires no City match. Staff develops a budget for current project items for which the funding will be used and that list is forwarded to MEMA. The Committee had received a listing of the items to be covered under the grant and Cammack stated that he would be returning to the Committee for each and every item prior to purchase. Responding to Weston, Cammack said he works with the Police Chief in determining the list of items. In response to Blanchette, Cammack said his understanding is that the City of Brewer had an incident with the Bangor’s hovercraft and will be covering the associated costs. Bronson spoke about the complexity of the hovercraft. Nealley made a motion to recommend approval to the full Council. The motion was seconded by Weston. Blanchette clarified that she was not in any way blaming the Brewer Fire Department for the incident. Cammack noted that Brewer has been and will always be Bangor’s first call for mutual aid. There is a great working relationship between the two departments. 6. Request to Accept & Appropriate FY2009 Assistance to Firefighters Grant Funds to Replace the Self Contained Breathing Apparatus Fill Station Cammack noted that the City successfully submitted a request for a fill station for a self-contained breathing apparatus at Central Fire. It does require a 10% local match of $4,000 bringing the total cost to $40,000. A motion was made and seconded to accept and appropriate the grant funds and to authorize $4,000 to be spent from the Fire Department’s capital reserve fund for the local match. Cammack noted that he will be back to the Committee before making the actual purchase. Nealley thanked Capt. Higgins. The Committee adjourned at 6:42 pm.