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HomeMy WebLinkAbout2009-09-21 Finance Committee Minutes FINANCE COMMITTEE September 21, 2009 Minutes Councilors: Stone, Blanchette, D’Errico, Palmer, Gratwick, Wheeler, Bronson, Hawes, Nealley Staff: Cyr, Barrett, Dawes, Ring, Hupp, Dyer, Cammack, Arno, Hathaway, Higgins, Gastia, Heitmann Others: Birkel, Ryan, Erik Russell 1. Consent Agenda a. Quitclaim Deed – 55 Manners Avenue A motion was made and seconded to approve staff’s recommendation. b. Update on Upcoming Bids Cyr noted a request from the Airport to replace their cargo scales. The City has been recently contacted by UPS, which plans to provide cargo services. The Airport’s facilities are ready to go in terms of cargo with the exception of the scales, which are not large enough and which are antiquated. The request is to bid out for a new set of scales including calibration and training at the estimated cost of $15,000. The Airport has funding leftover from capital items last year to be used for the purchase. 2. Bids/Purchasing a. Command Vehicle – Police – Quirk Chevrolet - $28,164 The current vehicle is a 1999 with 125,000 miles. Cyr said that Dawes felt this is an opportunity to look for a used vehicle but could not find one with low mileage at a reasonable price. A bid was issued for a new 4-wheel drive vehicle and 11 responses were received. Staff recommended the purchase of a new vehicle for $28,164 from Quirk Chevrolet, the next to the second lowest bidder. The low bidder was $39 less but the dealer was located in Acton, Massachusetts. A motion was made and seconded to move staff’s recommendation. In response to Wheeler’s question, Cyr said the vehicle is a 2010 Chevy Tahoe with a special services vehicle package included. b. Update on Replacement of Bass Park Vehicle Cyr said that Bass Park currently uses a 1995 GMC pickup truck with a plow for year- round day to day operations. The vehicle failed State Inspection at the Fleet Maintenance Division. Dawes suggested replacing it rather than spending over $3,000 for it to pass inspection. He again suggested a used vehicle in the range of $16,000- $18,000. This was not anticipated as part of the FY10 budget, and Cyr recommended the purchase be made from the Racino Fund. Blanchette questioned use of the Racino Fund. She suggested that if the money is taken from the Racino Fund that it needs to be reimbursed next year by the Bass Park Department. Cyr said she had made the recommendation because the guidelines adopted by the Council relating to the Racino Fund specifically call for expenditures related to capital needs to maintain the current operations of the Auditorium and Civic Center. She felt this purchase met the guidelines. Cyr noted that the original proformas had always anticipated some use of the racino fund for capital improvements or capital repairs at Bass Park. It has been below the estimated amounts initially anticipated. Money from the Racino Fund has been used annually for such small capital type items in the area of $25,000-$35,000. Bronson spoke about purchasing the pickup truck for Bass Park and holding off on the loader for recycling until a determination is made about continuing the recycling program. Cyr noted that the item for recycling was included in the anticipated bond issue that the City will be doing later this fall. The funds could be used for a different purpose or rolled over into another year. Nealley made a motion to approve staff recommendation. There was not a second. Dyer spoke about the purpose and need for the pickup truck. The truck was a hand me down from Public Works and Bass Park has used it for three years. He urged the Council to consider the purchase as a worthwhile expense. Blanchette said that she still doesn’t understand why the truck is essential to the racino operation. Blanchette made a motion to purchase the vehicle and for the amount to be included in the 2011 Bass Park budget in order to reimburse the racino fund out of the Bass Park budget. Hawes seconded the motion. Stone stated that Nealley’s motion died. Bronson did not agree with the funding mechanism; i.e. racino fund. Responding to Nealley, Cyr said that the original guidelines for the racino fund were vague. It cited capital expenditures necessary to maintain the current level of operations at the auditorium/civic center complex until such time as a new replacement arena was built. It did not provide a specific list. Nealley doubted Blanchette’s motion. Responding to Wheeler, Dyer said the ¾ ton pickup truck’s primary purpose is to clear the sidewalks in front of the auditorium and civic center and other areas where the City’s plow trucks cannot reach. Wheeler asked about private plowing services for a year. Dyer said that only if he could be guaranteed that the service would be available whenever Bass Park needed them. Stone asked for a vote and the motion passed. c. Request to Waive Bid Process – MDS Site Security & Alerting System Cyr noted that this item is for Police and Fire and the Mobile Data Service. There is another piece of equipment to be procured. At this time, the City has one large transmission receiver site and seven remote locations. The request is to authorize staff to enter into a contract with Ritec, the group who originally installed the equipment, for a security monitoring and e-mail alerting system. If a system goes down, the departments would receive an immediate e-mail alert. The system would safeguard the transmission site and as well as the seven remote sites. The estimated cost is just under $80,000. There is funding available and is allowed under the 2004 Homeland Security Grant which will expire the end of October 2009. A motion was made and seconded to approve staff’s recommendation. d. ARRA 2009 Penjajawoc Stream Watershed Non Point Source Storm Water Projects  Bangor Mall Groundwater Bypass Project – Engineering – Maine Earth - $40,680. This was a simple one item bid; Maine Earth was the low bidder.  Lower Hogan Rd Water Quality Imp – Engineering – R.F, Jordan - $126,870. This also is the low bidder for system one only. Alternate systems were bid in case funding was available but it was not.  EMCC Stormwater Treatment Project – Engineering – R.F. Jordan - $91,333. Jordan was the low base bidder. Three alternates were bid in case funding was available, but there was not.  Stillwater Ave Water Quality Imp – Engineering – R.F. Jordan - $60,559. Jordan was the low bidder for systems one and two. In response to Stone, Ring reviewed various elements of each project. Gratwick asked about the difference between system 1, 2, and 3. Ring spoke about the Stillwater Avenue Water quality improvements as an example. Staff is recommending the first two phases but not the third. System 1 is the singular most important element in terms of receiving the most advantageous treatment on the project site. Systems 2 and 3 were bid out in this case and are the next logical progression when and if funding becomes available. Cyr noted that the Hogan Road project will need to move full Council because of the amount. Two bids will be opened next Wednesday and will require a Special Finance th Committee meeting prior to the Council meeting of September 30. Hawes made a motion to approve bids for the Bangor Mall Groundwater, for the EMCC stormwater treatment project and the Stillwater Avenue water quality improvement project as stated respectively at $47,670, $91,333, and $60,559. The motion was seconded. The item passed. Hawes made a second motion that staff recommendation be forwarded to the full Council the Lower Hogan Road water quality improvement for $126,870. The motion was seconded. The item passed. 3. Orders 09-291, 09-292, Authorizing the Refinancing of $11,765,000 in Existing Obligations and the Issuance of $1,365,878 in General Obligation Bonds Cyr said there are two bond orders that will be returning to the Council at its September th 30 meeting for recommendation and approval. One is to authorize the issuance of bonds for projects that have not been funded including the FY2010 fleet replacement. The majority of the $1.3M is related to the energy conservation projects being completed by the City. The City had authorized entering into a lease/purchase agreement with Honeywell for the projects and the rate that the city would pay under that lease/purchase agreement is higher than what would be paid under the general obligation bonds. Cyr, therefore, recommended that it be covered under a general obligation bond debt issue instead. The second order would authorize the refinancing or refunding of current outstanding debt. There is approximately $5.7M of 1997 and 1998 general obligation bonds that the City can refinance. Cyr has also worked with the School Department, which had entered into a lease/purchase agreement with Honeywell for nearly $6M and that interest rate could be lowered from about 5.19% to 3% and save a significant amount of money. In total, the City anticipates issuing just over $14.2M of ten-year general obligation th bonds October 20. In addition to the projects she mentioned it also includes prior appropriations which is prior year fleet replacement costs that have not been permanently financed as well as the City’s local share of the BACTS projects. With the current market conditions and the City’s limited capital needs, the City is in a good position to take advantage of a very favorable market. Normally when refunding bonds, the City actually wraps it into new money and a 20-year debt issue which is normally at a higher interest rate. For the outstanding bonds, Cyr anticipates conservative savings at a minimum $575,000. For the School Department, they anticipate saving almost $1.2M over the next ten years. A motion was made and seconded to approve staff’s recommendation. The motion passed. Committee adjourned at 5:30 pm.