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HomeMy WebLinkAbout2010-04-05 Finance Committee Minutes FINANCE COMMITTEE April 5, 2010 Minutes Councilors: Bronson, Hawes, Weston, Nealley, Wheeler, Blanchette, Palmer Staff: Cyr, Dawes, Arno, Caruso, McKay, Ring, Cammack, Birch, Drew, McNeil, Little Others: Sara Yasner 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda items: a. Quitclaim Deed – 40 Nelson Street b. Quitclaim Deed – 97 Parkview Avenue c. Workout Agreement – 720 Kenduskeag Avenue d. Workout Agreement – 42 Winter Street 2. Bids a. Authorizing Amendment to Professional Services Agreement with Shadley Associates – Bangor Waterfront – Phase V At a recent Business and Economic Development Committee meeting, Cyr noted that Pam Shadley reviewed the plans for the Bangor Waterfront Phase V, which is the final phase. This current request is to authorize a contract amendment for a total amount not to exceed $386,000, which covers Shadley’s fees as well as the subcontracting for the civil engineering and irrigation consulting work. Money is available through the Community Development Block Grant Program as well as appropriations from the Downtown TIF. A motion was made and seconded to recommend approval of staff recommendation. Responding to Weston, Cyr said the initial design and engineering request for the Waterfront was an open proposal. The City has been working with Shadley Associates through the first four phases and, at this point, it is the recommendation of staff to continue on and complete this project with Shadley Associates. Responding to Weston, Cyr stated that there was not a competitive process for Phase V. She noted there was an overwhelming desire among Councilors and staff to maintain consistency throughout the waterfront master plan process. Referring to the work at Pickering Square, there is not a need for consistency of vision for engineering type services. Weston asked if the continuation of accepting proposals from the same consultant that started phase one was part of the process expressed up front. McKay said yes. When phase five is completed, Wheeler asked the total investment that will have been made in the waterfront redevelopment. McKay said the improvements thus far beginning in 2001 is approximately $11M. To complete the entire master plan would require another $4M. He noted that approximately $3M was spent on environmental clean-up, which was by federal funds. Responding to Wheeler, McKay approximated that $60,000-70,000 annually is required for maintenance of the waterfront area. He isn’t certain about operational costs for the proposed splash park. Continuing on, McKay’s proposal is to expand downtown assessment district to perhaps include some of Main Street properties that are benefitting from waterfront improvements. Wheeler spoke about the important significance of the waterfront. Bronson asked if the splash park is a definite part of the plan. In response, McKay said that the Committee’s recommendation tonight would authorize the contract amendment. Each project within the phase comes back to the Council for their approval. McKay said the amphitheater is proposed in the area further down river. The splash park would be done last. Palmer spoke about the impact of the splash park. He agreed that maintenance is an important consideration in the final decision of the splash park. b. Main/Cedar Street Intersection Improvements – Engineering – Lou Silver, Inc - $543,664 Cyr said that has been previously discussed by the Finance Committee. Bids were issued and 7 responses were received. The recommendation is to award to the low bidder, Lou Silver, Inc. of Veazie in the amount of $543,664. This is a Maine DOT/BACTS locally administered project with the State providing 90% of the funds and the City is required to provide 10%. The projected was designed and will be administered by the City’s Engineering Department. The bid requires Council approval as well as Maine DOT approval. Nealley made a motion to move staff recommendation. Weston seconded the motion. Responding to Palmer, Ring said the timeframe for the th projects calls for substantial completion by August 18 of this year. The total amount of the project is $1,085,000. The project will be under budget, Ring noted. Responding to Bronson, Ring said he would have to see if additional parking spaces might be obtained for the Police Department. Wheeler asked about the wide spread price range of bid proposals received for the removal of Smith’s Ceramics. Ring said it reflects the capabilities and experience of the contractor for performing such work. It also takes contractor salvage into consideration. c. EMS Jackets – Fire – Winterport Boot - $17,600 The Finance Committee recently reviewed a Fire Department grant received from the Stephen & Tabitha King Foundation for the all-season, highly reflective EMS jackets. Staff’s recommendation is to execute a purchase order with Winterport Boot in the amount of $17,600 ($200/jacket) providing all season jackets for all 88 employees. In response to Weston, Cammack said the remaining balance of the fund has stipulations attached from the King Foundation. There will be additional fees for jacket lettering; a quote has not yet been obtained. Staff will contact the King Foundation to see if remaining funds can be used for CO monitors. A motion was made and seconded to approve staff’s recommendation. d. Reconstruct Cargo Apron – Phase III – Airport – Sargent Corporation – $2,136,593 Cyr noted that this item also has been previously reviewed by the Finance Committee. This is an Airport Improvement Plan project with 95% funding from the Federal Government, State 2.5% and the Airport 2.5%. Two bids were submitted and staff recommendation is to award to Sargent Corporation, the low responsive bidder, in the amount of $2,136,593. Cyr noted there were issues with this bid. The bid documents are very specific clearly stating that the bidder must enter something on every single line of the bid tab; Lane Construction failed to do so. In checking with the Airport’s engineering firm and the FAA, and because directions were not followed, Lane Construction was disqualified. With Sargent’s bid amount, it was a bit different because it also had an issue. The amount of money allowed to enter for the engineer’s field office is capped because of the amount of the contract. Sargent Corporation exceeded the allowable amount for the engineer’s field office. The bid document clearly stated the cap and clearly stated the implications for exceeding the cap is that the City would adjust it downward. Sargent’s has been informed and are in agreement. A motion was made and seconded to approve staff recommendation. Responding to Bronson, Cyr said the problem was with the entire process with both responders. Cyr said that Lane is actually going to be a subcontractor to Sargent Corporation for the pavement work on the project. e. Coal Tar Sealant – Airport – Maine Sealer - $22,950 Cyr said this is a supply item used at the ramp area of the Airport. Staff recommended that the three-year contract be awarded to Maine Sealer, the low bidder, at $22,950. A motion was made and seconded to move staff recommendation. Responding to Palmer, Caruso is not aware of any environmental issues. f. Bus Rehab – BAT – H.O. Bouchard - $150,000 (estimate) Cyr said that this project has also been discussed previously. There are four BAT buses in need of significant body repair. It involves removing the side panels and anticipated other issues once removed. This was explicitly explained in the bid document. The decaling will need to be redone. The recommendation is to award the bid to H.O. Bouchard in the estimated amount of $150,000. It will require final action by the full Council. Responding to Weston, Cyr said the body work is included in the hourly rate. A motion was made and seconded to move staff’s recommendation to full Council. Bronson said he remains concerned that the City is not reaching out to enough local businesses. Cyr said it went to 15 other local bidders and she read the entire listing. Bronson noted that F.E. Hoyt and Frost Garage were not included. In response to Palmer, McNeil said that The BAT participates very heavily in the bid specifications. There are three different types of busses: light, medium and heavy duty. The cost for working on the heavy duty buses is higher. Three of the buses to be rehabbed are heavy duty buses and one is medium. A firm in Concord, NH was very close to Bouchard’s bid. Some of the problem is that the larger buses tie up such a large space for the work and, unless willing to tie up space for a month or two, other work could be lost by the vendors. g. Antifreeze, Oils, Greases – Citywide – Windward Petroleum - $65,250 Cyr said these are items used by Fleet Maintenance, Fire, Airport, and Parks and Recreation. There were two responses for the City’s request for bids. Staff recommended award of a three-year contract to Windward Petroleum of Hampden, Maine at an annual estimated cost of $65,250. A motion was made and seconded to move staff recommendation to full Council for final action. h. Update on Pending Bids Cyr provided an update on two pending bids. The first was a request for additional repair work on the primary clarification #3, which has been in service since 1986, and the underwater concrete surfaces need to be rebuilt. It will be phase two of a phase three project to repair and maintain the clarifiers. It involves pressure washing the surfaces, removal of damage aggregate, and resurfacing the floor and walls to their original specifications. This is the second of three clarifiers. One was worked on last year and the third is anticipated in FY11. The estimated cost is $45,000 and it was included FY10 WWTP budget. The second item dealt with the final phase of the disposition of used firearms at the Police Department. This has been discussed at prior committee meetings. The firearms have been received, personnel are being trained, and staff anticipates the firearms will be issued for day to day use shortly. When bidding out these items, staff had indicated the plan was to issue a request to sell the firearms to a licensed firearms dealer, and the proceeds from the sale would be used to offset the cost of acquiring the new weapons. Staff is ready to move forward with the request to sell process. Based on the price quotes from licensed dealers, staff would like to give the officers an opportunity to purchase the weapon they have used over the years in lieu of selling it to the firearms dealer. The firearms dealer will set the price assuring that it is sold at market price, and the funds will be used to offset the cost of acquisition. i. Electricity Supply Cyr provided copies of paperwork relating to this item. For some time, the City has been a member of Maine PowerOptions, which is an energy purchasing consortium specifically for Maine’s local governmental and non-profit organizations. It is funded through the Maine Bond Bank, and they do not receive a percent of the kilowatt per hour charge which is common with most folks from which you purchase energy supply. Most consumers pay the standard rate for their electrical supply and that rate is established annually by the Maine PUC. Through deregulation, an opportunity is available to bid the supply cost. The City has been using this practice and typically locks in from 3-5 years and over time it has proven beneficial. Currently the City has a contract for a medium service accounts that runs through December 2011 at 9.4 cents/kilowatt hour and a large service accounts through December 2011 at a rate of 8.75 cents per kilowatt hour. The City has never had the ability to contract its small service accounts. MainePower Option has approached the City indicating that it can now provide pricing for small service accounts, which the City now pays the standard rate of 8.78 cents/kilowatt set through February 2011. The offer would allow the City to fix its small service electrical supply costs at a rate of 8.01 cents/kilowatt hour for the next two years, 8.15 cents/kilowatt hour for the next three years and a four year option that was too high. Cyr recommended a contract for the 24-month period at 8.01 cents per kilowatt hour. Responding to Weston, Cyr said the small service accounts include fountains, parks, pump stations, City Hall, downtown traffic lights to name a few. A motion was made and seconded to approve Cyr’s recommendation. 3. Resolves, Appropriating $120,000 in MDOT Grant Funds and $30,000 in Local Match to Rehabilitate Buses Cyr said that this has been discussed previously but that she didn’t want to place it on the Council’s Consent Agenda until bringing it back to the Committee. She clarified that 80% of the funding is provided by MDOT and the remaining 20% from the City. All members of the BAT Community pay their equitable share. A motion was made and seconded to recommend approval to full Council. 4. Request from Taxpayer – 1569 Union Street Little said this request is from Bruce Watson at 1569 Union Street. He has buildings on the property but he does not own the land. Initially there were three buildings and in 2002 one building was demolished following a fire. It was torn down with a demolition permit from the City so the Assessing Department did not have knowledge of the demolition. Mr. Watson went into bankruptcy in 2002 and did not challenge the assessments until recently. He is now asking if the City would make a correction. The Assessing Department is comfortable that the structure has not been in place since 2002 but, based on their authority, could only issue an adjustment for next year’s taxes. In discussing this with the Legal Department and in the essence of fairness, staff’s recommendation is to adjust the value of the building going backwards which would result in a reduction of $2,350 in the $11,000 due in taxes. Little stipulated that it is dependent on Mr. Watson paying the taxes in full within 30 days. The taxes have not been paid since 2001, due to the bankruptcy. Responding to Weston, Little said that real estate property taxes are exempt from bankruptcy, The City can’t foreclose and take a property while a taxpayers is in bankruptcy. Once out of bankruptcy, the full amount due to the City plus all interest and fees accrued during that time are legally due. During the ten year time period, annual tax bills, past due notices, a 30-day demand notice were sent to the property owner. The City is prevented from sending a 30-45 day foreclosure notice during bankruptcy. Responding again to Weston, Little said in his opinion adequate attempts have been made to contact Mr. Watson of due payments. Watson was invited to the meeting but did not attend. Watson has indicated to Little that he is out of bankruptcy, would like to clear up the liens but would like some consideration as his assessment has technically been wrong since 2002. Nealley made a motion to move staff recommendation; the motion did not receive a second. Bronson then seconded the motion. Weston did not support staff recommendation taking into consideration the time that the property owner had to pay attention to details and the issue could have been addressed during the 10 years. In response to Palmer, Little said that the building suffered damage in the fire but did not completely destroy it. It was subsequently demolished. Although not a voting committee member, Wheeler said that Little’s recommendation is fair, reasonable and morally correct. Palmer noted the lack of communication from the property owner for quite some period of time and he chose not to attend this meeting. Bronson noted that by a vote of 2-1 the item received concurrence with staff recommendation. 5. Request for Funding Camp Bangor Cyr said the Council has an established policy for the funding of non-profit organizations whereby the interested party completes an application. The United Way of Eastern Maine has completed that process on behalf of Camp Bangor (a/k/a/ The Libra Foundation Program). The Libra Foundation will cease offering the Camp Bangor program after this year. Part of receiving a Libra Foundation Camp Bangor voucher requires the child to perform community service, For example, it could be donating a book to a library or participation in a large city-wide park clean up. The clean-up is followed by a barbeque sponsored by United Way for the parents and children. United Way is asking the City to provide up to $290 for the barbeque celebration. The thth Foundation offers $500 scholarship for each Bangor student in the 4 to 6 grades. In 2009, there were 543 campers out of 769 who were eligible. In response to Bronson, Cyr said the money has typically been set aside in the Council’s budget for non-profit use. Earlier this year, the Council approved $1,300 for the Senior Little League World Series which leaves a balance of $150 in that account. There are other unexpended monies within the Council’s travel budget, if the Council so wishes to use it. A motion was made and seconded to approve staff’s recommendation to full Council for final action. Nealley commended Cyr for the thoroughly presented Finance Committee agenda with backup materials. 6. Update from City Assessor Birch noted that his Department has dealt with 21 commercial abatement requests thus far this year and, in his 18 year tenure, this has been his most challenging time. He reviewed the materials which were presented as part of the agenda packet. Drew spoke about the sales ratio study from July 2008 to June 2009 in comparison to the April 1, 2009 assessment. Birch continued discussing the economy, loss of valuation and the City’s upcoming budget years. Bronson commended Birch for his presentation. Weston agreed with Bronson. In speaking of concerned taxpayers, Weston asked if the spreadsheet provided by Birch to the Committee could be made available on the City’s website. Birch agreed and also said that taxpayer notification letters are provided as well as a Power Point Presentation made available on the City’s Government Channel and the City’s website. Responding to Wheeler, Drew referred to Exhibit G which shows that the likely ratio range on any given sale in the City is 83%-107%. Wheeler complimented the Assessing Department. Responding to Nealley, Birch said the reason he provides the national statistical data is that the abatement requests received by the City sometimes are from out of state individual who are acting in a professional capacity as tax consultants. When presenting an abatement request, these individuals need to come to Bangor Assessing with concrete information using Bangor’s information. Prior to this year, Birch said there may have been 5-6 abatement requests annually. Responding to Nealley, Birch has provided information as of March to Farrar and Cyr. 7. Review of LD 1121 - Elderly Tax Deferral Program Little explained that this legislation was recently signed into law by the Governor and should become effective in July. The bill establishes a municipal property tax deferral program for senior citizens. The program is optional and must be adopted by municipal ordinance if a municipality chooses to participate. Bangor continues to work with taxpayers whenever possible to resolve outstanding issues and encourage the hardship abatement program where appropriate. Based on this as well as the fact that this legislation would put an unnecessary burden on the already reduced workforce, staff recommended that the City not implement this program. A motion was made and seconded to approve staff’s recommendation. 8. Request to Take Possession of 227 Pine Street A motion was made and seconded directing the Interim City Manager to take possession of property located at 227 Pine Street. The owner of record for the property located at 227 Pine Street is deceased and the heirs have expressed no interest in the property. There are outstanding taxes due to the City of over $5,000 including a matured tax lien. The building is dilapidated and is being evaluated for demolition or rehabilitation. This Order will direct the City to take possession of the property and complete an assessment to either demolish the property or sell the property for rehabilitation. This will be referred to full Council for final action. 9. Review Authority of Finance Committee At Councilor Blanchette’s request, there is currently before the City Council a proposed amendment to remove the authority of the Business and Economic Development Committee, Airport Committee, Government Operations Committee and Infrastructure to approve leases. Although the Finance Committee cannot approve leases, it does have the authority to approve contracts under certain circumstances and approve the settlement, compromise or payment of claim under certain circumstances. Blanchette requested that the Committee review the authority provided by the ordinance to determine what, if any, changes are appropriate. No action was taken on this item. 10. Executive Session – Hardship Abatement – 36 MRSA Section 841(2) A motion was made and seconded to move into Executive Session. 11. Open Session – Hardship Abatement Decision A motion was made and seconded to approve staff’s recommendation. Adjourned at 7:50 pm.