HomeMy WebLinkAbout2009-02-18 Finance Committee Minutes
FINANCE COMMITTEE
February 18, 2009
Minutes
Councilors: Hawes, Blanchette, D’Errico, Stone, Palmer, Wheeler, Gratwick,
Bronson, Nealley
Staff: Cyr, Barrett, Higgins, Bostock
Others: Sara Yasner, McCarthy, Brann, Melinkis, Turner, Ryder
1. Executive Session – 36 MRSA Section 841 (2) – Hardship Abatement
2. Open Session – Hardship Abatement Decision
Blanchette stated that the Committee had been in executive session in the City Manager’s Office
to review Item #1. During that session, a motion was made and seconded to recommend
approval.
3. Consent Agenda
A motion was made and seconded to approve the Consent Agenda items.
a. Quitclaim Deed – 356 Forest Avenue
b. Quitclaim Deed – 605 Union Street
4. Bids/Purchasing
a. Request to Waive Bid Requirements – Vehicle Exhaust System – Fire – Air
Cleaning Specialists - $36,695
Cyr noted that over the past few months several items have come before the Committee
relating to the new Station 6. This item is the last significant owner- provided item that will be
coming forward to the Committee. When a contract was executed with Barr & Barr to construct
the new station, certain pieces were pulled from the contract recognizing that the City had just
as much opportunity to competitively bid on them and that the City had existing relationships
with vendors. It made sense to purchase them outside of the contract. The vehicle exhaust
system is a system of hoses to hook up to the fire units so that when started they will
automatically clear all exhaust from confined areas. The proposal is to waive the bid
requirements and go with the current provider of service, Air Cleaning Specialists of New
England, who will actually move components from the current station to the new station where
at all possible to reduce the total cost of the proposal. The request is to authorize staff to
enter into a contract in the amount of $36,695 to move the existing pieces to be reused and to
provide all of the duct work and wiring needed for the system to fully operate. Higgins spoke
about the consistency and compatibility of the system. Blanchette made a motion to accept
staff’s recommendation. The motion was seconded. Gratwick asked about money saved by
using the older equipment. Higgins said it approximates $8,000. In response to Stone, Cyr
said that the cost for access system at Station 6 is comparable to what was paid for at the
Police and Central Fire Stations. Bostock said the original installs were around $3,000/door and
these will be $1,700.
5. Request to Sponsor City Wide Clean Up – Camp Bangor
Cyr introduced Sara Yasner from United Way. For a number of years, the City has had a policy
on requests for non-profit funding. There is an application process and United Way has
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submitted their application on behalf of Camp Bangor for the 10 year. The policy states that
any requests be reviewed in terms of the event’s benefit to the citizens of Bangor, how many
people are benefited in a dollar amount, and, if Bangor’s support was not in place, would the
event happen or not happen. Camp Bangor is a program sponsored by the Libra Foundation
and, over the years, it began in three Maine cities (Portland, Lewiston, and Bangor). The
Foundation provides a scholarship for every child in grades 4-6 to attend a summer camp. It is
currently $500/student. Cyr spoke about the benefit to the taxpayers as well as the students.
The Libra Foundation requests that the community receiving the benefit provide a financial
stake. As part of the requirements, students need to be a good citizen and activities are
available for them to participate in to show their appreciation; i.e. the Citywide cleanup. For
those participating students and families, a certain day is designated to clean up City parks.
The day’s event ends with a barbeque to celebrate. Camp Bangor is requesting up to $415 for
support of the barbeque. At the end of the event, Yasner submits receipts to Cyr for
reimbursement. Cyr noted that the full amount has never been requested for reimbursement.
Local businesses contribute food to the event. Yasner spoke about the application process. A
motion was made and seconded to approve the request.
6. Conversion of Park Woods Units to Permanent Housing
Cyr said this item came before the Government Operations Committee last spring. There were
4 units previously used for emergency housing and Yardley determined that it was no longer
needed. He recommended that the units be converted to permanent housing. The City had an
opportunity to apply for a HUD grant which was received in the amount of $19,154 to rehab the
units. Under the agreement for permanent housing, they will become available to homeless
families with a disabled adult or child. The housing will be under project based section 8
vouchers only. Approximately $750/unit will be generated as income for the four units or
approximately $3,000/month. Yardley viewed this as a way to continue the continuum of
housing. A number of modifications and improvements were required to move the units to
permanent housing; roofing, window replacement, siding replacement, paint and necessary
trim. The total estimate is just over $38,000. Staff at Parks Woods had contacted R&K
Construction, the current management company of the Park Woods units who deal with all of
the tenant issues. Cyr explained the Parks Woods Trust Fund which currently has a balance of
$177,000. Staff is recommending that the Committee support a Resolve appropriating the extra
$19,154 from the Park Woods Trust Fund and authorizing a contract with R&K Construction to
complete the work. Responding to Wheeler, Cyr said the project did not go out for bid. She
said that the procurement regulations allow for the waiving of bid requirements if it is deemed
in the best interest of the City. Responding to Blanchette, Cyr said the units are on Langley
Street. Blanchette talked about needed supervision around the units in terms of tidiness.
Barrett said he would talk with Yardley about the suggestion. Responding to Stone, Cyr said
that there is nothing in place to replenish the Park Woods Trust Fund. She doesn’t foresee any
significant upcoming maintenance requirements. A motion was made and seconded to approve
staff’s recommendation.
7. Request to Take Possession of 1390 Ohio Street - **Postponed
8. Review of Liquor License Applications and Special Amusement Permits
Process - **Postponed
9. Quarterly Update – Racino (Arena) Fund
Cyr said that at a fall 2008 meeting, the Finance Committee had requested quarterly updates on
the status of the Racino Arena Fund. The original projections represent the initial revenue and
expense estimates that were developed prior to the temporary facility even opening. Those
assumptions were based upon the fact that the temporary facility would begin operations in
January 2006 and continue through June 2010. The temporary facility actually opened in
November 2005 and the permanent facility opened in July 2008. In general, revenues appear
to exceed the City’s initial projection. At the temporary facility, they were exceeding the
original projections by at least 20% on an annual basis. In the last six months of the year,
there was a downturn in the economy which has affected Penn National and the operation of
Hollywood Slots. While the actual revenues for that time period of six months are probably on
track with the original projections, but it was noted that the original projection were based on
the temporary facility and are far below the anticipated projections for the permanent facility.
They are 25% below the estimates of Penn National for the permanent facility.
On the expense side, there were some unanticipated additional expenses including an extensive
amount of money for lobbyists and lawyers during the legislative process to get the slot
legislation passed and subsequent runs at changing the current legislation. Also some expenses
to move the site of the permanent facility from the Bass Park area to the riverside block.
Through the end of FY09, the City anticipated having $4.5M. At the end of December 2008,
that initial projection had been exceeded and there is just over $4.5M in the racino (arena)
fund.
In response to Palmer, Cyr said it would be fair to assume that $5M would be
reached by the end of March 2009. Cyr pointed out that she receives weekly financial
information from the Gambling Control Board. Last week was a very good week and they
returned back to the normal levels of play. Responding to Gratwick, Cyr said the funds are now
invested in CD’s at an interest rate of over 3%.
10.Cultural Commission – Grant Request from the Bangor Folk Festival – Funding for
2009 American Folk Festival - ** New Item
This item was originally scheduled to be heard by the Business & Economic Development
Committee but was moved to the Finance Committee.
Barrett said that Councilor Blanchette via the Council Chair had requested that this item be
placed on the Finance Committee agenda. The item was placed as the last item on the Finance
agenda so that it could run into the 5 pm Business and Economic Development Committee
meeting as well. Responding to Stone, Barrett said that technically the City Solicitor has
recommended that any action should be taken by the Business and Economic Development
Committee. Barrett recommended that the vote be opened up by the entire group and it would
then be moved to the full Council for final action.
Blanchette said she had inquired of staff as to why the item was going to the BED Committee
rather than the Finance Committee. She noted that there are citizens who watch the Finance
Committee to see where taxpayer dollars are being spent. She understands that the Cultural
Commission is dealing with dollars that have been previously appropriated and that are in the
current budget. Blanchette expressed concern with the fact that an increase is being requested
in these economic times. She would like to pigeon hole financial matters whether it is the
arena, the cultural fund, etc. to the Finance Committee. She said that there are people who on
a daily basis question why the City is appropriating money for a folk festival. As wonderful as
the event is, Blanchette said it is difficult to explain the benefits of the event to some folks.
Rather than discuss the merits of the AFF, she said that she would like to focus on this year’s
festival; i.e. will the economy support it, will the event scaled back while still carrying the
tradition forward.
Blanchette stated that she wants financial matters to go to the Finance Committee.
After hearing Blanchette’s request to move the item from the Business and Economic
Development Committee, Palmer said he felt it fair to bring the item to the Finance Committee.
Hawes, Chair of the Business and Economic Development Committee, noted that the entire
Council was present and, if Blanchette’s recommendation goes through, it would require an
Ordinance change. Currently, the Ordinance dictates that cultural commission items go to the
Business and Economic Development Committee. Until a change is made, that is where the
item should be heard. She did indicate that she had no problem with it being discussed at the
Finance Committee and following into the Business and Economic Development Committee
meeting at 5 pm.
Stone invited guests to the table.
Rohman, Chair of the Commission for Cultural Development, said the Commission should in
large part be viewed as economic development referring to it as asset-based development.
Bangor is leading the way in terms of arts and cultural, City forests and parks. The City’s
investment in the Commission has had a major impact in the community especially when
coupled with matching funds from other sources. The AFF is one of the great examples of a
successful grantees but it is not the only one. He noted the Downtown Countdown, the Maine
Discovery Museum expansions, and Bangor Symphony Orchestra. The AFF clearly reaches the
entire region and beyond and it is a three-day party for citizens. Rohman said it is also a good
foot forward for the downtown area hotels, restaurants and waterfront.
Rohman said that the Commission is asking the City to approve $85,000 out of the already
approved Commission for Cultural Development budget to be used for the 2009 American Folk
Festival. The total cost for the AFF is approximately $1M with over $900,000 coming from other
resources other than the City’s money.
Stone noted that a vote on this item will be taken at the Business and Economic Development
Committee shortly after 5 pm.
Heather McCarthy, Executive Director of the American Folk Festival, noted that the National Folk
Festival started in 2002. She spoke about the impact and challenges facing her organization
this year. The AFF worked with the UM Center for Tourism Research and Outreach for survey
and economic impact analysis. The data for the 2008 event concluded that over the Festival
weekend there is an economic impact of $9.8M in the Greater Bangor Region as a result of the
AFF. She has copies of the State Planning Board reports of Bangor’s tax revenues over the
course of quarters and months for the past eight years. While she wasn’t able to analyze the
effect on lodging and restaurant impact in Bangor, she would like to meet with someone who
could perform the analysis. The economic impact, quality and sense of place in Bangor are all
enhanced and have moved forward when the folk festival started. McCarthy noted that over
900 volunteers participate at the event and over 168,000 visits from festival goers in 2008.
McCarthy noted that the $85,000 request represents 11% of the Festival’s budget for 2009.
The Board is working on new projects and being creative with new ways to market the event,
to get the message out as to the cost to present the event and to identify new sources of
revenue.
Responding to Stone, Blanchette said she wants to know why the financial aspect of this or any
other entity in the City to which the City disperses money does not come through the Finance
Committee. She stressed her support of the Festival. As an elected official, she needs to make
certain that the 33,000 residents of Bangor know where their money is being spent. She stated
that she does support cultural development in Bangor. Because she has questions, she doesn’t
feel it necessary to have an entire meeting focused around her. She is asking for accountability
and to run government like a business.
Rohman suggested that the reason for the Cultural Commission’s connection with the Business
and Economic Development Committee might be because of economic development staff
member’s presence on the Commission. He made the argument that it is where it belongs. It
is an economic development issue.
Gratwick is the Council representative on the Cultural Commission and reported that he feels
that the subcommittee structure is working very well. He feels that the $85,000 would be
money well spent at this time.
Responding to Wheeler, McCarthy said the economic factor used was 1.5. He asked if McCarthy
would be prepared to give an itemized breakout of the administration costs. She referenced
information she had submitted previously asking if it didn’t cover all of this prior requests.
Wheeler said he has a concern about salaries and fringe being lumped together. He would like
specific information and McCarthy said she would provide it prior to the upcoming Council
meeting.
Barrett said that over the last 20 years the image of Bangor has changed dramatically. The
downtown has been reinvented and the City has started to reinvent its waterfront making great
progress. The Folk Festival has changed the City’s image throughout the state as well as its
own self-image. Barrett noted that Rohman has taken statewide lead in creative economy
areas and said he hears of people looking up to Bangor as an example of what can be done in a
community.
Stone suggested a two-minute break before starting the 5 pm Business and Economic
Development Committee.
A motion was made and seconded to adjourn at 4:58 pm.