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HomeMy WebLinkAbout2008-11-03 Finance Committee Minutes FINANCE COMMITTEE November 3, 2008 Minutes Councilors: Stone, Hawes, Blanchette, D’Errico, Gratwick, Palmer, Farrington Staff: Little, Barrett, Willette, Hupp, Tash Others: Bangor Savings Bank Representatives 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda.  Quitclaim Deed – Betts – 135 Fern Street  Quitclaim Deed – Rideout – Warren Court  Quitclaim Deed – Bragg – Warren Court  Quitclaim Deed – Curry – 33 Shepard Drive 2. Amendment to City Advertising Policy Barrett said the first change is to combine several items which have previously been done separately. Section 5.0 has been listed as an addendum and is now placed within the policy. It deals with authorization of non-profit organizations to advertise on The BAT when space is available. In the policy, references to The Bus were changed to The BAT. In section 4.5, reference to the Director of Parks and Recreation will be changed to Director of Bass Park. In Section 2.6, Willette offered a proposal for advertising on scoreboards at Sawyer Arena. A media vendor has approached the City to advertise on the dasher boards at Sawyer. The company would advertise for the University of Southern Maine on two 8-foot sections for the 2008-09 operating season. In recent months, staff has explored advertising opportunities and feels this would be a good time to test it. The advertising piece is on an adhesive strip which attaches to the dasher boards. In response to Gratwick’s concerns, Willette said it would resemble a bumper sticker. Change in the language would allow the City to pursue future possibilities and it would also apply to the Union Street Complex. Responding to Gratwick regarding the use of the word ‘property’ rather than the word ‘facility,’ Barrett said that freestanding signs are not allowed on municipal property. Willette said the intent of using the word property was to make it as broad as possible to include the entire Union Street Complex. The Director of Parks and Recreation will always have authority as to what is advertised. Palmer asked if the compensation amount is fair compared to other vendors. Willette said it is a fair amount and as previously mentioned a good test. Palmer asked about political signage. Barrett noted that Section 4.1 indicates that no political signage is allowed other than paid advertising on the City’s transportation system and a facility rented by a political group. A motion was made and seconded to recommend approval of staff’s recommendation. Blanchette noted that this policy will need considerable reworking when the new arena is in place. The motion passed with a unanimous vote. 3. CO 08-343, Authorizing Execution of Lease/Purchase Barrett noted that in May of this year, the Council authorized funding certain energy conservations measures through a third party lease/purchase. The City and School were evaluating installation of wood boilers at Bangor High and BIA. Since then, the decision has been made to transition to natural gas for heating purposes. With eliminating the costs associated with a wood boiler, the School Committee has now recommended that they undertake a total of approximately $7.1M in projects where $2.1 was previously approved as well as $2.7 for the high school’s wood boiler. This Order would authorize the additional funding necessary to undertake projects with a payback period of 15 years. The original Order looked at projects with a payback of 10 years or less. The funds will be used for conversion to gas, upgrade energy control systems in all of the school’s buildings, a number of systems replacements of equipment primarily air handling and mechanical equipment, and a number of projects dealing with bringing the buildings up to current codes; i.e. the High School’s kitchen. Responding to Palmer, Barrett said the central energy control system will be headquartered at City Hall with the capability of monitoring all sites. It is computer controlled. Gratwick asked if the $7.1M will come through bonds. Barrett said it is a lease-purchase arrangement and the energy savings are guaranteed to match the payments on those leases. Gratwick asked if it includes window replacement. Barrett said some have been replaced at Bangor High. Honeywell has recommended that window replacement is not cost effective. Gratwick asked about parallel figures for a fire wood boiler. Barrett said all of the information was provided previously. Responding to Farrington, Barrett said that the Council is required to approve any form of a commitment to debt by the School Department. Palmer asked about the boiler at the old Police Department. Barrett indicated he would get back to Palmer with the information. Palmer asked about the energy audit of the Bangor Public Library. Honeywell is doing the audit at the Library’s expense. Barrett will gather the information for Palmer. Barrett said the School is probably investing more than the City in energy improvement areas because of things being at the end of their useful life. A motion was made and seconded to recommend approval to full Council at its next meeting. 4. Review of Airport Investment Portfolio At Stone’s request, representatives from Bangor Savings Bank were invited to attend and to provide a review of the Airport’s investment portfolio. Hupp introduced Scott Tash, the Airport’s Finance Manager. Jim McCloud from Bangor Savings spoke and reviewed a handout but did not use the microphone (not audible). Tash spoke about the bond portfolio and its performance through September 30, 2008. Stone asked about the Airport’s investment in AIG, what was lost and what is still at risk. Discussion then turned to the equity portfolio. Stone asked about the Council’s recent decision to use money market funds instead of leasing equipment from Honeywell for energy improvements. Hupp said that the Airport has allowed bonds to expire in order to have cash for the purchase. The Airport is also looking at making a loan to GE, as in the past, with a better rate of return. Stone asked if savings would go back into savings or for operating expense. Barrett said that at the end of a fiscal year, staff makes a judgment as to what percentage of profits should be reinvested in the airport and what percentage should go into investment accounts. By lowering operating costs, it protects the Airport on the downside of decreased businesses. If costs are lowered and the current business level remains at level, it increases profits. 5. Executive Session – Hardship Abatement – 36 MRSA Section 841 (2) A motion was made and seconded to move into executive session. 6. Open Session – Hardship Abatement Decision A motion was made and seconded to approve staff’s recommendation.