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.