HomeMy WebLinkAbout2009-12-21 Finance Committee Minutes
FINANCE COMMITTEE
December 21, 2009
Minutes
Councilors: Bronson, Weston, Nealley
Staff: Cyr, Cammack, Dawes, Wardwell, Hupp, Little
1. Consent Agenda
A motion was made and seconded to approve the Consent Agenda items a. to f.
a. Quitclaim Deed – 113 Birch Hill Estates
b. Quitclaim Deed – Lot 20 Holiday Park
c. Quitclaim Deed – 34 Mt. Desert Drive
d. Workout Agreement – Lot 195 Cedar Falls
e. Workout Agreement – 64 Ohio Street
f. Workout Agreement – 79 Pier Street
g. Update on Purchase of Used Vehicle – Animal Control
At the Committee’s last meeting, the Fleet Maintenance Supervisor spoke about this
item indicating that during last year’s budget process staff recognized the City would
have a few pickup trucks that would not pass State of Maine inspection. One of those
vehicles was the animal control vehicle with a broken frame that cannot be repaired
safely. Dawes was going to look for either a new or used pickup. The city would return
the chassis as only the vehicle body was needed. The plan was to reuse the box
chassis that came off the other animal control vehicle. Dawes has looked through local
dealer lots and found a 2008 Chevrolet 1500, a 2 wheel pickup with 23,000 miles, at
Quirk’s. It was purchased at $14,234. Responding to Bronson, Cyr said that several
years ago it was established that when the Committee authorizes Dawes to look for
used vehicles that he report back to the Finance Committee regarding the purchase of
used equipment.
2. Bids
a. Lamps & Ballasts – City Wide – Gexpro - $26,179
Historically, the City has bid these items for three year contracts. Cyr noted that five
bids were received and staff’s recommendation is to award the bid to the low bidder,
Gexpro of Bangor, in the amount of $26,179.35. Cyr noted that this is the estimated
annual cost, and the City is committed to purchase from Gexpro on an as-need basis.
Responding to Weston, Cyr said that the City has dealt with Wesco and Gexpro in this
area. Wardwell said the previous contract was held by Wesco. Responding to Nealley,
Cyr said that Gexpro is the lowest bidder. Based on the quantities specified their total
bid was $26,179.35 and Wesco’s was $26,447.30. In addition, Gexpro has listed 60%
off the list price as prices for the years, one two and three. Jim Banes of Standard
Electric Company said that his company was looking at specified billable material and
quoted every item. The difference in cost was less than 1%. Standard Electric-Wesco
has successfully maintained this account for the last six years. Banes said that his
company has always provided the City with a lamp and ballast warranty of five years,
which is unique to the industry. He wanted to make certain that the items quoted were
those as were exactly and specifically stated on the list. Cyr said that the information
has been publicly available on the City’s web site since the bid opening. Cyr clarified
that the request for bid specified that responders provide the proposed manufacture
and proposed manufacturing number recognizing that folks may not always be able to
comply. She did note that there are some slight differences here and there within the
bids received. As an example, Gexpro is bidding mostly GE products in lieu of Phillips
products. Banes said he was satisfied with Cyr’s response.
Jamie Gibrarer, manager for Gexpro, said that her company is providing GE products
across the board with the exception of a few areas where GE does not provide. GE
does provide similar warranties to Phillips. She worked with GE reps and the products
crossed are equal to the Phillips’ products. Responding to Bronson, she noted that
Gexpro is willing to match the five year warranty.
Responding to Bronson, Cyr said the warranty could be written into the arrangement
with Gexpro.
Both Cyr and Wardwell spoke of the City’s good experience with Gexpro and Wesco.
Weston spoke about on-going relationships that the City has with various vendors, and
the fact that the City’s practice of always going with the lowest bid. He suggested that
from time to time the City should consider the history of dealing with individual
companies when the dollar variances are small. He suggested a conversation at a later
date to discuss the bid policy as not all things being equal at all times for the price but
that other factors do enter into consideration. Cyr agreed.
Nealley noted that he did not have a problem with the slight differential in pricing
between the two companies.
Weston made a motion that as the City moves forward that it is important the City
value more than just the bottom line and further moved that the Gexpro award be
approved. Nealley seconded the motion.
b. Mini Van Lease for the WIC Program.
Cyr apologized that this item inadvertently was not included on the original agenda.
WIC, a supplemental nutrition program for women, infants, and children, is operated
under Health and Community Services. It is a 100% federally funded program and
covers both Penobscot and Piscataquis counties. In order to perform clinical services in
the outlying areas, a number of staff with equipment travel by minivan weekly to
regularly scheduled clinics. The City has been leasing a minivan since the inception of
the WIC program. The lease expires this week. The City went out for bid for a lease
for a new minivan and received six responses. Staff recommendation is to award to the
low bidder of Darlings Commercial of Bangor. A $10,000 down payment will be used
with leftover funds from the grant which expired in September 2009. The monthly
payment will be $136.91 for 36 months. Because the WIC Program is federally funded,
the City is not allowed to own any moving vehicle and, therefore, leasing is the only
option.
A motion was made and seconded to approve staff’s recommendation.
c. Request to Waive Bid Process – Power Cot – Fire Department – Stryker -$14,253
Cammack noted that in the past three years the Fire Department has been utilizing
power cots following Council approval to purchase three cots. The Department is in the
process of beginning to update the cots. After doing in-house experiments with the
EMS Committee looking at several brands of power cots, staff recommended that the
Stryker be purchased to replace one cot with a five year extended warranty. The cot
cost is $12,427.86 with $1,825 for the warranty. Cyr said that this was included as part
of the capital budget approved by Council in FY10. Responding to Weston, Cyr
explained the waiver of bid process. Responding to Wheeler, Cammack said there
would be a one-year warranty without the extended warranty.
A motion was made and seconded to approve staff recommendation.
d. Engineering Services – Passenger Facility Charge Program – Airport – Hoyle,
Tanner & Associates
Cyr noted that BIA has one engineering firm for its AIP projects under contract
currently. Also the Airport needs to put out for bid the engineering and architectural
services for passenger facility charge projects. These charges are the $3 fee added to
airfare. Airports are required to make application in order to accept PFC fees and part
of that application is to include all the projects planned to be undertaken with the
monies. BIA is just completing its first PFC application. The most completed include
the apron work. In order to apply to the FAA, an engineering firm needs to be in place
to assist BIA through the process of submitting necessary documentation. BIA issued
RFQ’s with three respondents: Hoyle Tanner Associates, Jacobs Edward & Kelcey, and
Ames A/E. A selection committee interviewed all three firms and the unanimous
recommendation of the selection committee was to award the contract to Hoyle Tanner
and Associates for the PFC engineering and application process. Hupp said the amount
listed is not to exceed $466,000 and $66,800 respectively for the two components of
the project. The first is the actual paperwork and application to the FAA and the
second is the preliminary design for the project for phasing and scope of the costs of
future construction. Responding to Nealley, Hupp said the only local proposer was
Ames A/E. The PFC application process is a very complex and cumbersome, and Ames
A/E’s proposal called for them to partner with a company from North Carolina.
A motion was made and seconded to approve staff recommendation. Cyr noted that
there will be a Council Order on the upcoming Monday Council agenda for final action
by the full Council. Bronson noted that he supported Nealley’s approach for using local
professionals when possible.
3. Request to Take Possession of 120 Third Street
Cyr requested that this item be removed. The property owner had until Friday to
redeem his interest in the project, and payment was made in full on Friday. The City is
no longer in a position to take possession of 120 Third Street. Responding to Weston,
Cyr noted that the code violation has not yet been resolved. Wellington noted that the
City has not made progress with the property owner for a period of years now. The
City has been in front of the judge five times, three separate land use cases, and the
property owner has been held in contempt of court two times. Fines have not been
paid and the cleanup has not been completed.
4. Resolution to Approve a Revised Schedule I
Cyr noted that at the last meeting of the Finance Committee details were approved for
the Phase II American Reinvestment and Recovery Act Financing. The City received in
total $3M of funding through the Clean Water State Revolving Loan Fund and of that
amount 50.6% was principal only with 0% interest. The remaining 49.4% was interest
free and principal forgiven. When the Bond Bank put together Schedule I, which shows
the annual payment, the Maine Municipal Bond Bank, the DEP Administrative fee and
the DEP Management Fees were in the wrong columns. It does not change the
payments in total but merely flips which column the fee shows up in. Cyr asked the
Finance Committee to approve the revised Schedule I. Bronson noted that it is a
clerical correction. A motion was made and seconded to recommend staff approval.
The meeting adjourned at 5:35 pm.