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HomeMy WebLinkAbout2009-10-19 Finance Committee Minutes FINANCE COMMITTEE October 19, 2009 MINUTES Councilors: Stone, Wheeler, Palmer, D’Errico, Hawes, Bronson, Blanchette, Gratwick, Nealley Staff: Cyr, Barrett, Dawes, Wardwell, Warren, Heitmann Others: Eric Russell 1. Executive Sessions – 36 MRSA Section 841 (2) – Hardship Abatements (a), (b) - (to be conducted in the City Manager’s Office) 2. Open Session – Hardship Abatement Decisions (a), (b) Stone noted that the two hardship abatements were discussed in Executive Session prior to the Committee moving into open session. A motion was made and seconded to approve staff’s recommendations for the two hardship abatement requests. Bronson noted his desire to vote separately on the two requests. Hawes withdrew her first motion and made a second motion which is to approve staff’s recommendation for Hardship Abatement (a). The motion was seconded by Nealley. In response to Stone, Bronson indicated that he did not vote in favor of (a). Having listened to the materials regarding the two abatements, Bronson said he didn’t feel Hardship Abatement (a) is justified. Hawes made a motion to approve staff’s recommendation for Hardship Abatement (b). The motion was seconded by Nealley. 3. Consent Agenda a. Update on Used Vehicle Purchase A motion was made by Bronson to approve the single item under Consent Agenda. The motion was seconded by Nealley. For the viewing audience, Stone explained the nature of the item. 4. Bids/Purchasing a. Screening Services – Public Works – R.F. Jordan & Sons - $22,500 On an annual basis, Cyr noted that the City looks for bids for screening services at Public Works. It involves the screening of gravel, of winter sand and 2” minstone which is a byproduct of this as well. Staff’s recommendation is to award the bid to R.F. Jordan and Sons of Ellsworth, the low bidder. It is bid a couple of different ways – one is that the leftovers remain the property of the City, and the other is that the City looks to see if it is advantageous to allow the tailings (leftovers) to remain the property of contractor. In addition, the bid also asked for a quote of just performing the screening services or if it is going to be as feasible for the screening services and trucking to Bangor. Public Works’ recommendation is to do screening only with R.F. Jordan. The City will transport the gravel and sand and the tailings will remain the property of the City of Bangor. Blanchette asked if this is the only bid for this item for the year. Wardwell said that generally there is a year’s supply ahead in case of a hard winter. He clarified that this bid is a year’s supply with R.F. Jordan and Sons. Responding to Blanchette, Wardwell said the tailings are used to line ditches, and washouts can be repaired with tailings. Responding to Gratwick, Wardwell said that in hiring out it is less money involved to haul it to Bangor. Using City trucks, the hauling is used as a fill in job in the slower winter months and costs approximately $5/yard to haul it with City vehicles and City employees. Blanchette moved staff’s recommendation, which was seconded by Nealley. b. Stormwater Utility Planning and Feasibility Services - City Wide - James W. Sewall Company - $70,000 Cyr said that this has been discussed at a variety of committees and in a variety of ways. The most recent was the discussion of the grant funding awarded to the City of Bangor by the Maine DEP. She clarified that these are actually EPA funds passed through the DEP. The City was awarded $70,000 in 604B money from EPA. Staff had targeted its use for a stormwater utility planning and feasibility consulting contract and did not want the expense to fall upon the taxpayer. Significant improvements in the area of stormwater will need to be made throughout the City over the coming years in order to comply with regulations. Pursuant to the DIMS process, staff has looked at setting up a Stormwater Utility District, which would basically be like the sewer fund where a user fee is charged based upon the impervious surface within each landowner’s control. She stressed that this is in the planning phase to determine if it is possible or if it is a good idea at this point. The City had a selection committee including the Assistant City Engineer, the Environmental Coordinator, the BIA Environmental Coordinator, and BIA Marketing Director, and the Assistant City Solicitor as well as two representatives from the Penjajawoc Citizens Review Panel evaluate and rank all four of the proposals received. The Selection Committee interviewed the top three proposers: AMEC Environmental, James W. Sewall Company, and SMRT. Cyr reviewed the criteria for the selection process. The Selection Committee’s recommendation is to award the contract to James W. Sewall Company. D’Errico asked the difference between grant money and City money either historically or current. Responding, Cyr said that there are small pockets of grant money for certain project type activities and the City has been very successful in capturing a significant portion of that money. Nealley made a motion to move staff’s recommendation. Bronson seconded the motion. Blanchette noted that this item will also be discussed at the following day’s Infrastructure Committee and that a great amount of paperwork has been included along with that agenda. Gratwick said that this is a major change and a slow move toward user fees noting that those who are more responsible for the problem are going to be paying more. Gratwick asked for a quick overview of the education process. Cyr said the same process used for the Birch Stream and Penjajawoc would be followed. The City sought out the stakeholders, talked with them, held group meetings, held personal meetings, phone calls and mailing were made to reach out to the community. The City took a collaborative approach. Warren said that the process most likely will start with a couple of public meetings, some focus groups, and there are various aspects of decision and policy making that will need to be done. The City would like to do this with the stakeholders. Blanchette said that this started a number of years ago when complaints were received from individuals out around the Airport Mall and Birch Stream. She noted that there were many partners involved including the Guard, the Airport, and the City. It has come a long way with a long way yet to go. She said that is a huge price on this required action. 5. Update on Status of Hows Corner/Plymouth Superfund Site Per request of Stone, Heitmann provided background information on this item. Early in the 1990’s, the City was notified that it was included in a long list of PRP’s – potentially responsible parties – for the so called George West also known as the Portland-Bangor Waste Oil. West was in the recycling business with waste oil and had several facilities throughout Maine. Wells was the first site Bangor was notified on and eventually the City settled with a consent decree where the City paid into a fund. At that time, the City paid $42,000. In the Wells site, about a third of the contribution of the waste oil was from the Department of Defense. A third party stepped in and cleaned up the site and the Federal government let off all the parties who signed the Consent Decree. In the late 90’s, the City was notified that it was also a PRP in the Hows Corner/ Plymouth site. The City is also a PRP at Casco, which was very small with only a few gallons of waste oil from Bangor. Bangor is not a PRP in Ellsworth. John Hamer had been working on these two sites. Although the City was not a big contributor, but because of a lack of a DoD, the city was looking at a substantial amount of money. To date, the City has paid out just over $225,000 to date. The Legislature passed an act a few years back where there would be an extra $1.00 on oil changes that was going into a fund. FAME borrowed money by bond to settle this but were looking to net between $14.8M and $16M. They got the $14.4M. GE will take over the responsibility for just over $14.2M to take care of the clean up. Parties to the Consent Decree will be able to walk away. There is still another $233,000 which is to be distributed amongst the parties. Any future costs to the City will be paid for by the borrowing. In September, the City was notified of the Consent Decree. At the request of the City Solicitor, the City Manager signed the document. Heitmann asked the Committee for a recommendation to full Council to approve a Resolve ratifying the execution of this Consent Decree which should be the end of the City’s 10-year involvement with the Plymouth site. Heitmann did say that he would return at some point in the future to talk about Casco. Responding to Gratwick, Heitmann clarified that under the Plymouth Site Consent Decree the City has paid just over $225,000 but there will be no future payments. If the City was not a party, the estimated future costs would be between $527,000 and $565,000 but the City’s share will come out of the bond. Nealley made a motion to move staff’s recommendation for ratification of the Consent Decree. The motion was seconded. The item will go to full Council. 6. Racino (Arena) Fund Update Due to the length of the meeting and the upcoming Council candidate forum, Cyr said she could briefly address this issue or refer it to another meeting. Stone suggested holding the item to another meeting. Bronson agreed to hold it for another meeting, but he did ask that Cyr return to the committee with a definite yes, there is enough money for the arena or boldly state that no, there is not enough money to buy the arena. A rehashing of a number doesn’t bring a conclusion, and Bronson stated that he wants to hear Cyr’s conclusion. Cyr said the final report from the consultants should be available this week as far as the feasibility and sizing for the new arena. Hawes said that when the report is available that another committee meeting needs to be schedule in order to move forward. Palmer said he would like to see a Council Order to rename the Racino Fund to the Arena Fund. Cyr agreed. The Committee adjourned at 5:40 pm.