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HomeMy WebLinkAbout2009-01-05 Finance Committee Minutes FINANCE COMMITTEE January 5, 2009 Minutes Councilors: Stone, Gratwick, Blanchette, Nealley, D’Errico, Bronson, Wheeler, Palmer Staff: Cyr, Barrett, Farrar, Dawes, Yardley, Little, Caruso, Bilancia, Gastia Others: Clemons, Russell, Gagner 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda items. Stone clarified that Gratwick was a voting member. a. Quitclaim Deed – Curtis – Lot 33 Pray’s Park b. Workout Agreement – Bell – 68 Silver Road c. Workout Agreement – PJD Properties – 1412 Essex Street d. Workout Agreement – Thibodeau – Lot 116 Birch Hill e. Workout Agreement - Wilcox – 28 B Street Birch Hill 2. Bids/Purchasing a. Cutting Edges – Fleet Maintenance – Contractor Supply - $26,895 Cyr noted that this item is used on the City’s snow plows as well as other heavy equipment. A request for proposals was issued and 4 responses received. Staff recommended award to the low responsive bidder, Contractor Supply of Bangor, in the estimated amount of $26,894.69. It is the only vendor that supplies the various needed blade types and sizes. In response to Blanchette, Cyr said the primary reason for not going with Jordon Equipment for $25,761 was because their response did not include a price for the two items that they could not supply. The combined price of the two items they didn’t bid was just over $930. Gratwick asked about edges and speed bumps. Dawes said that speed bumps do create problems with cutting edges. The City has experimented with some plastic blades but the metal cutting edges do a better job in clearing the roads. Barrett clarified that speed bumps are not allowed on City streets. Speed tables are allowed; i.e. Howard Street. A motion was made and seconded to approve staff’s recommendation. b. Sole Source – Airport Lighting Vault Upgrade – Crouse Hinds - $70,325 Caruso indicated that this is a request for a sole source purchase for a lighting vault upgrade for BIA’s lighting control system, which is a complex and intricate system. In 2003 when the Airport did the runway rehab project, it did not upgrade the lighting vault system because this project was not eligible for federal funding and the system was operable. BIA was advised by Crouse Hinds that the current system is not going to be supported any more. The Airport would like to upgrade the current system to their Digitrack System which will offer operations personnel, management, and air traffic controllers real time accounting for the whole airport lighting system. The project now is eligible for federal funding. The Airport’s percentage of the $70,325 is just over $1,700. D’Errico spoke about past experience and energy efficiency. A motion was made and seconded to recommend staff approval. c. EAP Services – City Wide – Stevens Wellspring Stone noted that he serves on the Board for Affiliated Healthcare, one of the bid responders, he excused himself from the discussion and asked Blanchette to Chair the meeting for this item. Blanchette said that such action would require a vote of the Committee, and asked Stone if he is compensated for service on the Board for Affiliated. He is not compensated. Blanchette asked the Committee members if it was their opinion that Stone has a conflict of interest due to his unpaid position on the Board of Affiliated Healthcare. The Committee did not feel Stone had a conflict. The vote reflected their decision. Stone returned to chair the meeting. Farrar said for the past 12 years the City has offered an Employee Assistance Program known as an EAP for both employees and family members. The EAP provides professional assistance to employees who are experiencing either job or off the job related issues that impact their performance while working for the City. The EAP is required because the City is mandated to offer alcohol and drug testing with about ¼ of the workforce and due to the contract with ExxonMobil st at BIA. The current EAP arrangement expired on December 31 with the current provider, and proposals were sought in November. Six responses were received, which were narrowed to four and then a committee consisting of representatives of the Police Department, Community Health and Services, BIA, Public Works and Farrar interviewed the four firms. There was a unanimous recommendation that the proposal be awarded to Stevens Wellspring, the current EAP provider for the past six years. Stone noted that the average cost is $6-8,000 and asked about the hours of service provided. Farrar said 50-60 hours of direct service. There is a fixed fee component of $2,200-2,400 and then an hourly rate of $100. The City falls within the national average in terms of use – 3-5% of the employee workforce. The City’s average is 4%. Blanchette noted the benefit of this type of program. The national statistics show that whatever is spent in EAP can be a savings of 5- 10 times that amount. Responding to Blanchette, Farrar said that all municipalities that are under Federal drug and alcohol testing requirements must have an EAP. A motion was made and seconded approve staff’s recommendation. d. Council Order, Authorizing Contract for Fixed Price Fuel Oil for Fiscal Year 2010 Finance Director Cyr noted that the Council recently authorized her to enter into fixed price contracts for heating fuel for the 2008-09 heating season. In general, locking in longer term supply costs has been beneficial and has limited the potential downside risk inherent in the energy market. As is the case with other utility contracts, the City needs the ability to make a quick decision to lock in a price while that price remains available. The Finance Director would like authorization to lock in fuel prices without the delay required to schedule a Finance Committee and receive full Council approval. The Chair of the Finance Committee will be consulted in advance of a decision to lock in prices, and the Finance Committee would be notified when such an action is taken. Stone noted that Councilor Wheeler had joined the Committee. Blanchette asked that she be updated on any lock in by a note in her mail box at City Hall. She did not want the information by e-mail. Cyr agreed. Wheeler spoke in favor of locking in. A motion was made and seconded to recommend approval to full Council at their upcoming meeting. The recommendation is to authorize the Finance Director, the City Manager and the Chair of the Finance Committee to lock in with a fixed price when deemed appropriate. Stone noted that Council Chair Palmer joined the meeting. 3. Taxpayer Request to Refund & Waive Interest Little noted that Robin Gagner was present. She is a trustee with 72-74 Third Street Realty Trust, who purchased 72 Third Street from J. Smith, Inc. in August 2007. At that time, Gagner indicated she had called the City, asked for the tax office, informed them of the sale and that they were the new owner. After several months of not receiving anything from the City in the form of tax bills or notices, she called again and asked about the situation to be certain all was okay. She was instructed not to be concerned because the tax bill would be due in September 2008. Upon Little’s conversations with Gagner, it was discovered that those phone calls were to the Assessing Department, not the Treasurer’s Office. The Assessing Department does not have access to the tax data base as far as outstanding taxes. The Assessing Department staff answered the questions as far as ownership and when bills would be due for the new owners but there was no indication of needing to speak with the Treasurer’s Office or any indication that there may have been outstanding, which in this case there were. When Gagner attempted to make payment on September 2008 taxes, she discovered there was an outstanding prior year tax bill. That payment was applied to those taxes and approximately $1,031.87 of interest had been paid with her payment. Gagner would like the City to consider waiving the interest that accrued on the account when she was unaware of the outstanding taxes. If approved, the City would take the money and apply it the outstanding balances because she was completely unaware of the previous year’s outstanding taxes. There is a balance of approximately $14,700. From this point forward, because she is now aware of the balance, interest would accrue. Little said that under normal circumstances he would not recommend waiving interest but the situation here is that the taxpayer has indicated that she contacted the City two times. Based on the conversation with Gagner and, if it were his sole decision, Little said he would approve it. Gagner said the situation is due to absence of information on her part. It wasn’t until the beginning of December 2008 that she received a notice from the City indicating a $5,000 payment had been received and put towards back taxes. She was completely unaware until that time. Total taxes on the building are $10,000. She is willing to pay the back taxes but would like the accrued interest waived. Blanchette said that as a City Councilor she owes Gagner an apology for what didn’t occur. If someone calls asking for the tax office, she can’t imagine why the call went to the assessing office. She does agree with the waiver but she did request Mr. Farrar deal with the issue of inexperienced employees at the switchboard at City Hall and in the Assessor’s Office. This error cost a taxpayer a lot of money. Wheeler said the word ‘tax’ could cause the switchboard employee to send a caller to the tax assessor rather than treasurer. It could have been a very normal mistake. Gagner clarified that she didn’t know who to ask for so she did indicate to the switchboard operator that she wanted to check on taxes. Bronson said that at a properly conducted real estate closing the individual should have been well aware of the tax status. Gagner said this is her third closing. This one took place at Rudman and Winchell, there were several pro- rations involved, and it was everything into one lump sum as far as what the seller owed the buyer for taxes, what the buyer would be given for security deposit, and all of the prorated rents. The taxes were not a specific focal point. Gagner knew that taxes would be due at some point and that is why she made the call to City Hall within three or four days of the closing date. She provided her name and mailing address and asked that all notices regarding taxes be sent to her address. Little said it is very common that taxes are not explained at closings. Gagner called the City two times and should have been directed to the correct department for the correct answer. Responding to Gratwick, Little said the lien would have been on the prior owner. At the time of purchase, there was not a lien. A motion was made by Blanchette to recommend waiver of the accrued interest and that staff communications be improved. Stone did not agree with the second portion of the motion. Blanchette clarified that Little and Birch should speak with their respective employees, with Farrar present, indicating their employees and the switchboard employee make certain of where to transfer a phone call. Customers deserve a correct answer. Nealley said he understand the customer service aspect but feels it is almost an issue of jurisdiction. He feels that the process should put the second portion of the motion into the hands of the City Manager. He did not support the motion. Bronson said he supported Blanchette’s concept regarding customer service, but that he would not second the motion. D’Errico seconded staff’s recommendation to waive the interest and Councilor Blanchette’s motion for employee correction regarding communication. Stone asked for a show of hands of all in favor of supporting Blanchette’s motion. Wheeler said that the initial motion had been declared dead. Stone said he did not. Wheeler apologized. Stone noted that there were 2 in favor. The motion failed. Stone asked Nealley for a new motion. Nealley said he would support staff’s recommendation and regardless of the communication issue with employees he moves the motion that this case in an exception, not a precedent, to the rule. Blanchette said she would second Nealley’s motion because of its fairness to the taxpayer, Ms. Gagner. She wants to the public to know that sometimes the City is not good at communicating internally. Her motion was seconded. Stone noted that the item passed with one opposed. Stone asked Farrar to address the employee issues and to keep Blanchette up to date. 4. Update on Preventative Oral Health Program Because the City’s dental hygienist will be resigning, Yardley is recommending to temporarily and indefinitely discontinue the City’s preventative oral health program. The program is an extremely important investment and is part of the Health and Community Service Department’s mission. Absent federal and state support, the City by default is providing the service. It is not financially viable. There is a trust fund, which will be exhausted by the end of FY09. He is optimistic that in the next 18-24 months there will be money coming for preventative oral health. Nealley asked about other organizations that might help pick up the program. Yardley said the challenge is that most dental practices are not interested in patients ages 4 years and younger. Responding to Gratwick, Yardley said that absenteeism in school, distractions from learning in school, and overall nutrition are issues. It is a matter of treating the whole person’s health. For children, it starts with their mouth. Yardley said that the education component will continue with the WIC Program and overall health program. The department is working on a media education campaign and oral health will be included. Gratwick said that if he was a voting member of the committee he would oppose Yardley’s recommendation. Discontinuing oral health would short change a generation. The least fortunate population need to be taken care of. Yardley said that while he has outlined a compelling need unfortunately there isn’t a market. Part of his goal with public education is to bring the market closer to the need. The biggest issue is to meet the need and there needs to be a market that meets the need. He has reached out to local municipalities offering the free service but indicating a place is needed to provide the service; i.e. town and city halls. He received zero response. The oral health program’s budget was $160,000. Yardley budgeted $55,000 for MaineCare in reimbursement monies and to date has received $8,000. He budgeted $32,000 from the trust fund to breakeven. Nealley agreed with the need and with Yardley’s suggestion to ‘mothball’ the dental equipment for the future. Yardley said that if the City does a good job in marketing/education it might draw a private provider to meet the need. Nealley made a motion to approve staff’s recommendation. The motion was seconded by Blanchette. She feels that the City needs to be talking to the Congressional Delegation for increases in the WIC program. She praised the WIC Program which should be expended to include dental health not only for the mother but for children up to age 5. She asked that letters be sent to all four Congressional representatives. Palmer suggested individual meetings with the Congressional Delegation and City Council and staff. As part of the letter, Palmer asked that Barrett/Yardley include oral health as a part of that agenda. Barrett said that this is emblematic of the entire approach taken to health care and the incentives in health care nation wide. Educating pediatricians and working with school departments would be a good way to get the message out. Wheeler agreed with Gratwick and praised Yardley. It is not necessarily that the City’s priorities are out of order but with the amount of money that the city puts out in grants for activities and programs during the year which are geared primarily to provide a good time and entertainment (and they are worthwhile) he is convinced that the money can be found somewhere. The program must not be stopped. Blanchette noted that the City’s general assistance budget is the largest and it takes care of more individuals than other municipalities population wise. The money could possibly be found but the problem is state wide, country wide and world wide – oral health needs to be addressed as being every bit as vital to someone’s human health. She suggested that Rep. Pingree should be pushed in her new position. D’Errico spoke about the area school responsibility in dealing with education in this area. Yardley said the problem is a student isn’t reached for the first time until age 5. Stone noted that the motion passed unanimously. Blanchette suggested that all nine Council members sign the Congressional Delegation letter. She also asked that a letter be sent to the Maine Dental Association president. She would like a meeting with that group as well. 5. Review of Parking Fund At the December 15, 2008 Finance Committee meeting, Barrett said the Committee asked for a comprehensive review of the Parking Fund in light of the discussion of the Columbia Street Deck and the tentative authorization to issue a RFP for design/build to replace that structure. The Fund was established in the mid-1980’s. Barrett reviewed the memo and information which was provided with the Committee’s agenda. He spoke in detail of the need for additional parking and the possibility of a parking deck at Abbott Square, surface parking of the demolished former police department building on Court Street and the area on Hancock Square/Exchange Street for a parking deck. The Hammond Street Deck has a high demand. The options are to replace the deck at an estimated $1.3M funding through the Downtown TIF, expand the deck, or demolish the deck without replacing it. Staff’s recommendation is to replace the deck with a new or rebuilt structure. Responding to Nealley, Cyr said that anytime bonds are issue the City looks to see what is outstanding to get a better interest rate. Most of the bonds are not callable for the first 10 years of their life and there is a premium usually in year 8 and 9 and in year 10 they can be called at no premium. Debt is refinanced whenever possible. Cyr said the only one of significance whereby savings could be achieved would be the garage expansion, which was done in 2001. It could be refinanced in February of 2009. Responding to Nealley, Barrett said that on an annual basis the Parking Committee looks at parking fees. Over the past years, the Parking Committee has taken a much more market oriented approach toward prices and has significantly increased the permit fees, in particular. th Following the December 15 meeting, Barrett felt there was a tentative okay to move ahead with issuing a RFP for design/build on the Hammond Street Deck with no guarantee that the City would follow through. The Council would reserve the right to revisit the entire issue and make a determination on whether to proceed or not. The final cost will be part of that decision. In view of future needs for more parking, Wheeler asked about reducing the amount of free parking time from two hours to one hour and charge $1.00 for up to 2 hours and increase the fee from 2-3 hours from $1.50 to $2.00 and then increase the 24 hour maximum from $4.50 to $5.00. Clemons said when the free two hours was first instituted there were 4 parkers and now there are up to 60-70/day. At that point, there was an interest to offer incentive to park in the garage. Clemons said he would take Wheeler’s suggestion to the Parking Committee. Bronson said he doesn’t think that parking in downtown Bangor is as large of a problem as some perceive it to be. He asked the life expectancy of a new deck at Hammond Street. Clemons said it should be in the realm of 40-50 years. Responding to Nealley, Bilancia said the current structure has issues with falling concrete and time is of the essence to do something about the deck. In response to Nealley, Barrett said the Committee has previously approved the issuance of a RFP for a design/build with the caveat that they wanted to look at the entire Parking Fund before making a true commitment. He referred to it as a caution light as to how proceed. Bilancia clarified that replacing the Hammond Street Deck would be maintaining current parking inventory and not adding to it. She said it is a delicate balance on parking inventory. Stone asked if consideration had been given to demolishing the Hammond Street structure and provide paved parking on the ground level only with the resulting savings used for a structure at Hancock/ Exchange. Barrett said that not that many using the Hammond Street Deck are associated with the courts. Blanchette spoke about long-term parking for jurors and asked if the Court has addressed this problem. Barrett said there have been discussions, and he will follow up on it and report back to Blanchette. Palmer said there needs to be exploration of linking the surface parking to the downtown by way of a shuttle transportation; i.e. cost. He also spoke about the lot across from the Federal Building indicating that something should be done about it. Barrett said that Ring is putting a memo together that covers all of the issues surrounding that lot. Barrett clarified that the Committee’s intention is for staff to move forward with efforts to do Hammond Street Deck. Committee adjourned at 7:00 pm.