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HomeMy WebLinkAbout2008-10-20 Finance Committee Minutes FINANCE COMMITTEE October 20, 2008 Minutes Councilor Attendance: Palmer, Blanchette, D’Errico, Wheeler, Gratwick Staff Attendance: Cyr, Barrett, Heitmann, Dawes, Willette, Enman, Hupp, Farrington Others: Mr. Tippett 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda. a. Quitclaim Deed – Tippett – Former Warren Court b. Council Resolve 08-331, Appropriating $662,000 from Airport Reserves to Fund Energy Conservation Projects c. Council Resolve 08-332, Appropriating Shelter Plus Care Grants Funds 2. Bids/Purchasing a. 4 x 4 Cab & Chassis – Airport – Varney GMC - $27,114 Cyr said this truck is used to plow and sand the numerous parking lots at BIA as well as general maintenance for the airfield. It is painted Wheatland yellow. Nine bids were issued and staff’s recommendation is to award the bid to Varney GMC. She pointed out that it is an alternate bid as the truck is a 2008 which is currently on Varney’s lot. The City will have the truck painted, and will install a plow, change radios and LED light bars. This will replace a 1994 half-ton pick-up that has continuous maintenance problems and is not capable of carrying the sander. A motion was made and seconded to approve staff’s recommendation. b. Request to Waive Purchasing Regulations – Food & Beverage Concession – Bangor Municipal Golf Course Cyr noted that the Golf Course operates a concession at the Golf Course and since the 2003 golf year has had a contract with the Murdy’s d/b/a/ JTRC. In 2003, the Murdy’s were the only bid responder to the City’s RFP for concession services. Prior to that, the Golf Course had experienced problems with previous operators. The Murdy’s have provided good service and quality food, and the City has received favorable patron comments. Based on this, the City entered into a second three-year term as was allowed under the original RFP in 2002. The six-year period has now been reached. Staff recommended waiving the RFP process and award the contract to the Murdy’s to continue the concession operation for another three years with the option to renew for a second three year period. The amount paid to the City is $2,000. Gratwick spoke about the rental fee. Willette said at this point the amount works for both parties but both parties are open to discussion. Gratwick felt it wouldn’t be unreasonable for an increase due to inflation. Blanchette pointed out that the Murdy’s have already absorbed food cost increases and are doing a great job at the concession. She did not agree to pass along an increase in the rent fee. Wheeler asked if the fee for Fiesta Shows at the Bangor State Fair has been increased. Cyr said it is adjusted annually as part of the three-year contract between the City and Fiesta. Wheeler agreed to go with staff’s judgment as to whether an increase should be implemented. A motion was made by Councilor Blanchette to waive the purchasing regulations and allow the Murdy’s to continue to operate the concession at the same rental rate of $2,000. Wheeler seconded the motion. Gratwick voted against the motion stating that if this motion doesn’t pass, he offered a motion that would increase the rental rate according to the best judgment of staff. Barrett suggested that Willette speak with the Murdy’s. Blanchette said that such concerns should have been raised prior to the meeting. She didn’t feel it fair to go back at the last minute to ask the Murdy’s about an increase. Blanchette said she would not amend her motion. Willette said he has had discussions with the Murdy’s and he feels they can come up with an agreed fee, if necessary, for an increase. Blanchette asked Willette how he would respond if the Murdy’s indicate they cannot afford an increase. Farrington agreed with the motion made by Blanchette. Wheeler compared this decision to ones made by this committee on sewer abatement requests; i.e. if you do it for one, you do it for all. Wheeler said the same principle may apply in this situation. Wheeler moved to amend the motion to accept staff’s recommendation subject to a negotiation between Parks and Recreation and the Murdy’s regarding an increase in their annual franchise fee. The motion was seconded by Gratwick with a clarification. He felt that Wheeler was invalidating Blanchette’s motion. Wheeler stated he was amending, not invalidating. Palmer clarified that the $2,000 is now being requested to be negotiated as part of the amended motion. Gratwick said if it is negotiated to the best extent of staff it would meet his concerns. Enman spoke about the good relationship with the Murdy’s. Enman and Willette have spoken with the Murdy’s about the rate, and there might be room for a small adjustment. Speaking to the amendment, Blanchette said if this was the intent then it should not have been brought to the Committee as waiver of bid procedures. If a new contract and fee is wanted, then it should have gone out for bid. She feels that the City is trying to nickel and dime a business that is doing the City a favor by operating the concession. Wheeler took issue with Blanchette’s point. It is not a question of nickel and diming anyone. He said it is not an issue of how well the Murdy’s operate the concession. The question is does the City renew a contract for a third time with no increase ever having been implemented or discussed. Palmer clarified there were five voting members in attendance. The amendment is to negotiate the $2,000 fee. Palmer asked for hands to be raised. The vote was 2 in favor, 3 opposed, which brought the Committee back to the main motion to waive the bid process and give the Murdy’s a three-year contract with an option of a three-year renewal at $2,000. Palmer asked for a vote. The vote is 3 in favor, 2 opposed. The motion carried. 3. Executive Session -- 1 MRSA Section 405 6 C and E – ExxonMobil Request to Assign Agreements at Bangor International Airport A motion was made and seconded to go into executive session. Subsequently, the Committee returned to open session and no action was taken.