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HomeMy WebLinkAbout2008-06-02 Finance Committee Minutes FINANCE COMMITTEE June 2, 2008 (*Immediately Following Special Council Meeting) Minutes Council Attendance: Stone, Palmer, Gratwick, Farrington, D’Errico, Hawes, Blanchette Staff Attendance: Ring, Barrett, Cyr, Nicklas, Hupp Other: Ms. Bladen, Tom Brann, Dawn Gagnon 1. Executive Session – 1 MRSA 405 (6) (E) –Workers Compensation Settlement A motion was made and seconded to move into executive session. 2. Open Session – Workers Compensation Settlement A motion was made and seconded to accept staff’s recommendation. 3. Consent Agenda Before making a motion to accept the Consent Agenda, Gratwick asked for further discussion on item d. Following discussion, a motion was made and seconded to approve the Consent Agenda items. a. Quitclaim Deed – Discontinued Portion of Webster Avenue b. Quitclaim Deed – Ingegneri – 37 Fifth Street c. Workout Agreement – Commeau – 120 Cedar Falls d. Easements/Quitclaim Deed – Pine Ledge Estates Gratwick asked the status of sidewalks in new subdivision developments. Ring said a policy governing this area is still under discussion by the Planning Board. A recent subdivision was approved on a busy street, Outer Ohio Street, and the Planning Board made a requirement for sidewalks. Item d. refers to accepting easements for draining areas for a subdivision project which was approved back in 2005. e. Request Authorization to Apply for, Accept and Appropriate a Grant from the FAA for Terminal Building Improvements 4. Bids/Purchasing a. Structural Firefighting Boots – Fire – Industrial Protection Services - $22,050 Cyr said the City recently went out for bid. This is a change in the type of boots that the Fire Department will be using. The new boots will be flame and waterproof. It is a new technology available. Three bids were received and staff recommends that a three year contract be awarded to the low bidder, Industrial Protection Services of Topsham, Maine. Responding to Palmer, Cyr said the Fire Department’s Union contract requires the City to provide firefighting gear but not this specific type. Palmer noted these boots are $245/pair. The life expectancy of the boot is 3-4 and potentially five years. Stone noted that this is a budgeted item. Cyr said the money is available within a project that came in under bid through the grant for the SCBA’s. A motion was made and seconded to approve staff’s recommendation. b. Sole Source – Utility Relocation – Engineering – Bangor Hydro /Fairpoint - $20,737 and $9,300 Cyr said there is an upcoming significant realignment project at Hogan Road/ Stillwater/Kittridge Road as part of the offsite improvements required for the WalMart project. The City needs to make traffic improvements and WalMart will make a significant contribution. In order to commence the project, the City has to work with existing utilities, which must be moved, for the widening and lengthening of the road. Utility companies require a payment. Payment is required upfront. Ring said that this specifically relates to the extension of the Hogan Road project and he provided a sketch pointing out the utility poles which need to be moved and are attributable to the project. Ring will also see if a portion of these offsite improvements could be shared with WalMart. Gratwick said he understood that the City was in this project for $250,000 through a TIF. He said it would be helpful to have the larger figures available when items such as this come before the Committee. He would like a running tally as to how much money the City and the WalMart have committed and how much has been spent. Ring said WalMart is required to do a number of offsite improvements to public roadways which totals $3.5M. Additional improvements are needed as well to about $1.5M that the City has agreed to undertake. The additional improvements undertaken by the City will have some benefit for the WalMart project but will also benefit other businesses and the traveling public in that area. Regarding funding, the agreement calls for $250,000 from WalMart, funds from developer impact fees, TIF dollars and a contribution from another abutter to the proposed expansion. Gratwick again stated that he would like the numbers brought forward as the requests come to the Committee for approval. A motion was made and seconded to approve staff recommendation. Farrington asked if there is any control about the utility fees being charged. Ring indicated there is general oversight by the PUC. In cases like this, relocation of an existing utility, it is similar to situations that the City encounters with MDOT projects; i.e. storm drains. Palmer stressed the benefit of these traffic improvements to the entire Mall area. Stone again entertained a motion. A motion was made and seconded. c. 4 x 4 Vehicle – Airport – Liberty Chevrolet - $56,472 Cyr said this comes with a significant amount of sensor equipment. It is used to cross the runway in any given weather to test the braking action of the runway to determine if it needs to be further cleared. Three bids were received. This is considered an AIP project, which is 95% funded by the FAA, 2.5% from the MDOT and the remaining 2.5% from the Airport. Liberty Chevrolet is the low bidder. The City has not had direct past experience with the company but has been used by Jacobs, Edwards and Kelcey, the City’s third party engineer on all AIP projects. Gratwick said for less money other vehicles are available and this particular vehicle is not rated well by Consumer Report and gets 14 miles/gallon. He said it is appalling and feels there should be another vehicle for better reliability. It sends a poor message. Hupp said this is a very specialized piece of equipment and not the standard use for which Consumer Report measures their vehicle ratings. Even though he understood, Gratwick said the City is basically purchasing an unreliable vehicle. Hupp said that the specifications detail the type of equipment that is required in terms of ample horsepower, 4 wheel drive, etc. and reliability is somewhat subjective. Stone spoke about purchasing a vehicle that someone may have traded in because of poor mileage. Palmer concurred with Stone, and suggested that perhaps Bob Dawes could locate a better value and then add the special equipment. Blanchette asked the age of the current vehicle. Hupp said she would need to check but it was probably purchased prior to her position as Airport Director (eight years ago). Blanchette stressed this is an enterprise fund purchase and doesn’t affect the taxpayer’s pocket. One accident on the runway would cost far more than the price of this vehicle. D’Errico said that the braking action of the runway is always required and asked if a specific instrument (decelerometer) in the sedan is still in use for the testing. Hupp said yes. Regarding a used vehicle, she said there are a couple of issues in this situation. One is the type of equipment in this vehicle does not work with your standard anti-lock brake system. Second, when using a FAA Grant, a comparison needs to be made between one vehicle and another and when looking at used vehicle many factors such as mileage and condition come into play. It becomes very subjective. She pointed out that the Airport has very regularly come to the Finance Committee asking for permission to purchase used vehicles rather than new. Palmer said that Hupp may be correct but he doesn’t feel the case has been made in this instance. He feels that other options need to be checked out. Palmer made a motion to postpone action on this until the first meeting of the Finance Committee in July. The motion was seconded. Blanchette doubted the motion. Responding to Farrington, Cyr said this allows staff sufficient time to review other options. Gratwick disagreed with Blanchette’s philosophy regarding the use of Enterprise Funds. Stone agreed to support the motion but expressed concern that it might cost more than $1,000, which is the current City’s portion for the purchase. Palmer said his issue is due diligence. D’Errico asked if the specs for the vehicle would make it clearer. Blanchette said that Bob Dawes needs to be at the next meeting. If the City purchases a used vehicle, she wants to know the cost for retrofitting. Barrett agreed that the Airport will not purchase a used vehicle that needs to be justified to the FAA. The other issue regarding size and fuel mileage can be reasonably looked at and the information provided as requested. Cyr asked if it would be acceptable to bring the information back to the second meeting in June, if the info is available. Stone agreed. d. LCD Televisions – Airport – Business Services - $12,500 Cyr indicated that most airport waiting areas have the large overhead television, and BIA would like to install ten units. The 42” screen is the best size for use and Consumer Report recommends this model. Cyr reviewed the ratings. 16 bids were received and the recommendation is to the low bidder that meets specifications to Business Services of San Diego, California. Gratwick expressed disagreement with placing tv units in the terminal. Hupp said with due respect that Gratwick is probably in the minority as most of the traveling public appreciates the opportunity to view news as a distraction. Included in this is a unit for the International Arrivals Building. A motion was made and seconded to approve staff recommendation. Responding to Stone, Hupp said they will be placed in the existing terminal area and once renovations are complete they will be moved in that portion in a way they are visible. Stone noted that all were in favor with the exception of Gratwick. e. Roof Replacement – International Terminal – Airport – Kevin Smith & Son – $155,200 Cyr noted that this item has been identified in the budget process. Four bids were received and the recommendation is to award the bid to Kevin Smith and Son of Mars Hill, the low bidder, at $155,200. The City has not had prior experience with the company but references have been checked and found to be in order. Responding to Stone, Hupp said a thorough review by Carpenter and Associates has been completed of the existing roof structure. A motion was made and seconded to recommend approval to the full Council at their next meeting. f. Domestic Terminal Alterations – Phase 1 – Airport – Nickerson & O’Day – $3,966,000 Cyr noted that Hupp recently updated the Business and Economic Development Committee on upcoming changes at the Airport and this item is part of the future changes. Four bids were received. Operating under a continuing resolution, the FAA has funded the AIP program at only 75% level. It is the City’s expectation that the additional 25% will be released prior to the end of the fiscal year. Currently FAA funded is available in the amount of $3,231,000, $80,000 from Maine Department of Transportation and the Airport paying the remaining balance. Once released, the Airport should be awarded sufficient additional federal and state dollars to cover the majority and leave the airport with the 2.5% share. This project is mostly funded through the FAA and MDOT. Staff recommended the low bidder, Nickerson & O’Day. The bid award must be approved by the FAA. Stone asked what would happen if the funds are not released? Cyr noted that the federal st fiscal year begins October 1. Barrett said there are no guarantees but it is highly likely that funding will become available. If the Committee decides to wait until funding is available, the project will be put off for another year. Portions of the project are really needed. If Congress and the Senate do not reach an agreement and funding does not become available, Hupp said the program will continue moving forward. It is a 40-year old program. Responding to Stone, Cyr said the $150,000 is for contingency, unanticipated issues at the site. Stone asked how the change orders could be eliminated. Cyr said the City will rely on Jacobs Edwards and Kelcey to minimize them. Hupp said an internal review of the plans was completed and there will be an onsite construction manager on a day to day basis and looking out for the Airport’s interests. A motion was made and seconded to recommend approval to full Council for its final action. g. Reconstruct Terminal Apron – Phase 5 – Airport – Vaughn Thibodeau & Sons – $1,848,021 Cyr noted that 4 bid responses were received. Vaughn Thibodeau & Sons were the low bidder. The project is recommended with funds from the Passenger Facility Charge Program. Adequate funding is not available at the moment but anticipate that it will be available by the end of June 2009. The Airport money will front the dollars, which is allowed by the FAA. Responding to Gratwick, Hupp said she doesn’t have the exact square footage off the top of her head. This is the area out of the Gate 1 area. The Guard’s ramp is probably 5-6 times larger. The per foot cost/per ton cost could be done but it wouldn’t be comparable because of the difference in quantities. Hupp will provide the info to Gratwick. Hupp indicated it makes sense to do this project now along with the terminal reconstruction project. A motion was made and seconded to recommend approval to full Council for their final action. 5. Resolves 08-193 & 194, Accepting & Appropriating Grant Funds for the Purpose of funding Stormwater Related Projects Cyr said that Resolve 08-193 will authorize applying for and accepting $90,000 in grant funds for water quality improvement projects for Birch Stream. Birch Stream has been designated as an urban impaired watershed by the State Department of Environmental Protection. As a result, the City has been mandated to take steps to improve water quality in the stream. This grant will be used to complete a comprehensive watershed management plan, develop a geographical information system drainage map of the watershed, obtain third party recommendations for implementing a fair and equitable stormwater fee structure, and develop recommendations and preliminary conceptual designs for modifying existing stormwater systems in the draining area. A local match of $62,000 will be required. The majority of this match will be provided through in-kind labor provided by City staff. The cash match required will be approximately $21,000, and these funds have been committed by Bangor International Airport and the Maine Air National Guard or are available from compensation fees paid by recent developments within the watershed. Resolve 08-194 will authorize applying for, accepting, and appropriating $50,000 in grant funds for a variety of stormwater related projects. This grant also addresses certain urban impaired streams. Anticipated projects include watershed surveys of both Shaw Brook and Artic Brook, restoration of the Penjajawoc Stream including the implementation of certain recommendations regarding the redesign and realignment of its channel, and developing an educational site to describe restorative techniques that can be used to improve storm water quality. A motion was made and seconded to recommend staff approval. The Resolves will appear on the upcoming Council agenda. 6. Recommendations for Appropriations of Unanticipated Revenues – BIA The current Airport budget is based on 1,300 flights. Based upon year to date data and projecting forward, it appears the actual number of flights serviced will be 1,750. This will result in unanticipated revenues and the Airport is asking Council to appropriate these additional funds for operating expenses; replace a pushback tractor; install a new roof on one of the hangars, and invest money into the Airport’s Trust Account. Responding to Stone, Cyr said reserves are estimated each year in terms of accounts receivable. She is comfortable there are adequate resources within the current airport funds due to a pending airline bankruptcy. A motion was made and seconded to approve staff’s recommendation. 7. Request to Purchase City Property – Parkview Avenue Cyr said this request was before the Committee in 2004 and was denied at that time. Ms. Bladen, property owner, indicated she has owned 34 Parkview Avenue since 1999. Since then, she has used the property behind which is owned by the School Department, to plant a small garden. She had received permission to use it. One of the problems is there is a large fence which obstructs her easy access. She would like to purchase part of that property. The City’s Legal Department has done research with the School Business office and it was not acceptable to the School Department due to their concern of a plowing issue. The only issue she is aware of is that beyond the far point of the parking area and snow is plowed up against the fence. Ms. Bladen presented photos of the area. Paul Nicklas said he has spoken with the School Business Manager Kochis. There is a concern of the storage for plowed snow, and Code Enforcement said moving the rear property line would require a new bufferyard and might result in the loss of some parking. The snow storage is a big consideration for the School Department. Gratwick asked if the fence could be removed and Ms. Bladen felt that would be acceptable. Regarding the fence removal, Blanchette asked about liability on behalf of the School Department if the snow storage area does damage to the property and/or vehicles. Blanchette asked that staff find out the reason for the fence. Stone asked Nicklas and Bladen to go back to the School Department for a resolution. He didn’t feel it was the City’s responsibility to make the decision. A motion was made to postpone the item to the next regular meeting of the Finance Committee. Stone asked Nicklas to come back to the Committee with a yes or no resolution. Bladen said she would really like to purchase the property. 8. Update on Location Search - Bangor Post Office Stone asked for this item to be placed on the agenda. He feels the City should have a voice in the location and feels it should be placed in the building next to the current facility. Since the Council has not taken an official stand to express support on this issue, McKay said he is powerless to move forward. Barrett said the post office has asked the City to comment and to express its preferences. The Club Gemini property owners have made three proposals to the post office. One of the reasons the site was not selected because of lack of adjacent parking. The post office needs 50 parking spaces. Blanchette asked about the parking across from the federal building and asked if those spaces could be made available to postal workers. A drive-up window would eliminate much of the parking issues. Moving the post office to the Gemini building would accomplish much in terms of citizen’s using the post office as well as the noise level problems associated with the Club. Barrett asked if the Committee wants staff to suggest to the post office that the Club Gemini is the preferred location. The Committee agreed unanimously. Barrett then asked if the Committee is willing to set aside 40-45 spaces in the existing lot for exclusive postal service use for its employees and customers. It would dislocate current parking users. Palmer stated that the Alter Lot does belong to the City and not the federal building. Barrett spoke about Alter becoming permit parking. Barrett asked how much the Committee would want to charge the postal service for the parking spaces. Stone said it would need to be negotiated. Palmer agreed that options for the site should be offered to the postal service. Stone asked if the Committee was comfortable with McKay moving forward to contact the postal service with the options. 9. Executive Session – 36 MRSA Section 841 (2) – Hardship Abatements (A) & (B) A motion was made and seconded to move into Executive Session. 10. Open Session – Decision on Hardship Abatements A motion was made and seconded to approve staff recommendation.