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HomeMy WebLinkAbout2009-09-09 Finance Committee Minutes FINANCE COMMITTEE September 9, 2009 Minutes Councilors: Stone, Blanchette, Hawes, Nealley Staff: Cyr, Barrett, Caruso, Dawes, Cyr, Wardwell, Gastia, Ring, Heitmann 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda. a. Quitclaim Deed – 314 Fourteenth Street b. Quitclaim Deed – 128 Main Street c. Quitclaim Deed – 158 West Broadway d. Purchase of Used Vehicle e. Resolve 09-279, Appropriating $221,689 in Bureau of Justice Assistance Grant Funds f. Resolve 09-280, Appropriating $38,690 in Additional WIC Nutrition Grant Funds g. Authorization to Apply for, Accept and Appropriate up to $3,000,000 from the FAA to Reconstruct the Cargo Apron and Enter into a Contract with the Low Bidder 2. Bids a. Bi-Fold Hangar Doors – Airport – A.A. Randall - $59,698 Cyr noted that this item had been discussed by the Committee prior to staff placing the item out to bid. The doors are for Building 457, and they are large units which are opened manually. Three bids were received and the recommendation is to award the bid to A.A. Randall, the lower bidder, in the amount of $59,698. There is an appropriation for this purchase and the amount falls within the original engineering estimates. A motion was made and seconded to approve staff recommendation. b. Traffic Signal Equipment – Public Works – Highway Tech Signal - $25,993 Cyr said that this bid is for the master arms, the poles, pedestrian signals, etc. for the intersection of Cumberland and Broadway. All of the signal and equipment on Broadway will be interconnected. This is a locally administered BACTS program which 90% of the funding provided by the Federal and State Governments and the City provides a 10% local match. Staff recommended award of the bid to the sole responder, Highway Tech Signal in the amount of $25,993. The second bidder was not able to provide everything required within the bid. Cyr noted that the Committee had previously approved doing a sole source for the controller – the Ecolite – because it needs to be the same brand. Also bid separately was the video detection equipment. Breaking it up provided many vendors the potential to bid on the project. A motion was made and seconded to approve staff recommendation. c. Police Vehicles – Police – Darlings Ford - $47,254 Cyr said this bid was to replace to older police cruisers with over 120,000 miles. Both are becoming difficult and costly to repair. Three responses were received, and the recommendation is to award the bid to Darlings Ford of Bangor in the amount of $47,254. There will be a small additional expense to fully equip the cruisers. The total estimated budget for these vehicles was $56,000. Dawes said the expense involves labor only to change over equipment from the old to the new cruisers. A motion was made and seconded to approve staff recommendation. d. 2 WD Dump Truck – Sewer Maintenance – Darlings Ford - $42,491 Cyr noted that this truck is used by the Sewer Maintenance division. This item will replace a nine-year old pickup truck with over 140,000, and the cost of maintenance last year was in the range of $5,500. The unit is used on a daily basis. Four bids were received, and the recommendation is to award the bid to Darlings Ford of Bangor at $42,491. In response to Blanchette, Dawes said that this is a very specialized vehicle purchase and used vehicles of this nature are not available. A motion was made and seconded to approve staff recommendation. e. Perry Rd Pump Station – WWTP – T Buck Construction - $84,266 Cyr said that much of the needed upgrades to this station were originally installed in 1973. Most of the work involves upgrading and increasing the capacity of the pumps and completing an electrical overhaul of the station including the installation of variable frequency drives. The project has been in the planning stages for some time. Three bids were received, and the recommendation is to award it to T Buck Construction of Auburn in the amount of $74,226. Earlier, Blanchette had asked Cyr about the bid differences. The Committee was provided with a memo from CH2M-Hill did review past projects done by T Buck Construction and also a selected reference. Moore talked with individuals from Lewiston- Auburn and Saco about T Buck’s work with similar projects in those areas. Saco indicated that T Buck is their preferred contractor for this type of work. This particular contractor is already set up in the area and has some ongoing work which may have provided a reduction in overhead costs. Cyr said this might account for their lower bid price. CH2M-Hill specifically reviewed the bid estimates with T Buck on a more detailed basis. Cyr pointed out that there will be additional costs related to this project including engineering, construction as well as inspection costs. With all projects ongoing in the City’s Engineering Department, staff will be looking to hire a temporary inspector to monitor this project. In total, Cyr estimated the total upgrade to cost in the area of $165,000, which compares favorably to the original Engineering estimate of $350,000. Blanchette said it would be helpful in the future when there is a huge difference in bid prices for her to hear directly by memo from the department director. A motion was made and seconded to approve staff recommendation. Stone asked if this project qualifies for a performance bond. Cyr said that the City normally doesn’t require a performance bond for projects under $100,000. The project is so specific and so defined that staff is very comfortable that the contractor will find additional work that will need to be taken care of. Lewiston- Auburn and Saco have not had issues with change orders with T Buck. 3. Update on Funding of Coal Tar Remediation Cyr noted that this item had also been discussed at the previous night’s Infrastructure Committee where City Engineer Ring reviewed the project details. As part of the agreement between Citizens Communication and the City, Citizens provided money that the City is holding is escrow and as expenses have been incurred the City has to have Citizens sign off to release the funds from escrow for reimbursement. As of the end of August, Cyr said there is approximately $4.8M in the escrow account. Also, the City over the years has appropriated City funds from time to time because there are certain costs incurred by the City that are not eligible for reimbursement under the escrow agreement and realizing that this potentially will cost more than was available. As part of the settlement agreement, the City assigned its rights against potentially responsible third parties to Citizens giving Citizens authority to pursue those third parties via legal action with the understanding that the City would be entitled to one-third of any proceeds recovered from those third parties. Cyr said she anticipates receiving an additional approximate $1M from the 3-5 potentially responsible third parties which Citizens has already taken action against. The total contract at this point which the City Council approved with RMT is estimated at $8.86M. In addition, the City will incur costs related to environmental insurance premium of approximately a half million dollars, inspection and DEP oversight of approximately $150,000, and potentially another $50,000 in legal fees. Comparing estimated costs to available funding, there is a gap of about $1.3M. Staff’s recommended the City Council to approve a declaration of intent to issue general obligation bonds for $1.5 to pay for the Penobscot Coal Tar Remediation project. IRS regulations stipulate for reimbursement that the declaration of intent before actual expenses are incurred or within 60 days thereof. Cyr noted that the project should wrap up by November-December of this year. She said there is some flexibility of using TIF funds, general funds or bond funds but without the requested declaration of intent the City has no way to issue bonds later for reimbursement, if needed. Responding to Stone, Ring said that the extent of the coal tar issue has been one of the biggest surprises. There is a much broader area of contamination than ever before thought. Secondly, the 1.23 acres being focused on now which is expected to deal with 98-99% of the problem. Thirdly, in coal tar sites a number of those traditional applications have not been effective. The costs are much less than the potential costs estimated over the past two or three years. Responding to Nealley, Ring said a series of Department of Environmental Protection permits have been obtained as well as permits from the US Army Corps of Engineers, Department of Conservation, Federal Fish and Wildlife to name a few. In terms of the regulatory agency sign-off, Ring said there is no realistic guarantee which is why the City has insurance. A motion was made and seconded to recommend approval to full Council at their upcoming Council meeting. Adjournment at 4:55 pm