HomeMy WebLinkAbout2008-08-18 Finance Committee Minutes
FINANCE COMMITTEE
August 18, 2008
Minutes
Council Attendance: Stone, Palmer, D’Errico, Farrington, Blanchette, Hawes
Staff Attendance: Cyr, Barrett, Hupp, Dyer, Ryan, Cammack, Yardley, Ring
Others: Tim Woodcock, James Gerrity, Joyce Hedlund, Ray Cota
1. Consent Agenda
A motion was made and seconded to recommend passage of the Consent
Agenda item one.
a) Council Order 08-270, Authorization to Apply for, Accept and Appropriate
$15,000 from the Maine Community Foundations’ Penobscot Valley Health
Association Fund to Implement the Channel Markers Youth Leadership
Program
1. Bids/Purchasing
a. Roof Repairs – Bass Park – AA Randall & Sons - $15,483
Cyr noted problems with the Auditorium roof during this year’s basketball
season. The roof needs to be recoated. There were six responses to the
City’s bid request. Staff recommends award of the bid to the low bidder, AA
Randall and Sons of Glenburn, in the amount of $15,483. They also
submitted an alternate bid which was a generic coating for $11,383 but it
didn’t have an extended warranty. The $15,483 response includes a ten-year
warranty. Palmer stated that as much as he would like to avoid such
expenses there doesn’t seem to be an option. Responding to Palmer, Dyer
said that blue tarps would be less expensive but there would be an issue with
anchoring them in place. The aluminum coating reflects a high percentage of
the sunlight which causes the membrane underneath not to dry out. As part
of this project, Dyer said the four air handlers over the main floor that are
suspected to be part of the cause of the leak and which cause warm air to go
out through the roof, will be capped and sealed. Dyer noted that the last
roof work completed came with a 10-year warranty and that was 16 years
ago. A motion was made and seconded to approve staff’s recommendation.
The work should be completed within the next month.
b. Photocopier – Engineering – Spiller’s - $12,625
This item came forward as part of the Engineering Department’s budget
request to replace their current copier. The new unit has the capability to
reproduce high quality copies of large maps and plans which are used for bid
specs, field copies, plan surveys, etc. Due to the low bid quote, staff also
added a scanner to the unit. Spiller’s of Lewiston was the low bidder at a
base cost of $12,625 which includes the unit, the scanner and the first year’s
maintenance. Responding to Stone, Ring said there is a one-year warranty.
Stone asked about leasing versus purchasing. Cyr said a comparison was not
done. Since the City tends to keep the units for long periods of time, it
wouldn’t make sense to lease. Responding to Stone, she said the criteria
used to determine if a lease or a purchase is appropriate is: is the item a high
turn over item, the amount of use, the cost of replacing it every three years,
is it equipment that will be kept for 10 plus years. The reasonable life span
should be 10 years, Ring said. Stone questioned the third year maintenance
cost increase. He asked for a price of maintenance going out 8 years. Cyr
said staff will ask the question and return to the Committee. She also asked
if the Committee is willing to approve the item pending the information.
Stone said he was only one of the Committee. Ring said the current unit is
not operable and his staff has been outsourcing printing needs. Stone said
he would change his mind. Palmer made a motion, which was seconded, to
recommend approval. Stone again asked Cyr to find out the maintenance
information he requested.
c. Toners Cartridges – City Wide - information will be distributed at meeting,
awaiting results of reference checks prior to final recommendation
Cyr provided the bid sheet information stating that this is the first time that
the City has actually issued a separate bid for toner cartridges as opposed to
part of the annual office supply contract. The City and School decided to join
forces regarding purchase of toners. There were 11 responders. The low
bidder was M&B Supplies of Monroe, New York at $48,144.44. Their
references were not reputable in terms of service. The next low bidder was
The Tree House of Newton Center, Massachusetts at $49,569.75. The School
Department has done business with them in the past, and a number of
current references provided good recommendations. Staff recommended bid
award to The Tree House. Cyr stated that Corporate Express, the current
office supply vendor, is not happy with the recommendation. Responding to
Blanchette, Cyr said that the City does recycle the cartridges. It is part of the
bid requirement for toner recycling. Not all toners are applicable for credits
but some are, and Ryan separates them out. For information only, Blanchette
said she would like to know a dollar amount for cartridge recycling. Ryan said
he has been keeping track of the information and will provide it to the
Committee within a couple of days. In response to Stone, Ryan said CE has
their own brand but the City’s Information Services Department has stressed
the need to use brand names as opposed to remanufactured cartridges due
to problems with them. A motion was made and seconded to move staff
recommendation.
d. Request to Waive Bid Requirements – Penjajawoc Watershed
Management Plan – CH2M Hill
Barrett said the City has been working with the State DEP and a range of
stakeholders to develop a Penjajawoc Watershed Management Plan. This was
a spin off by the DEP to meet an EPA requirement to do a total daily maximum
load analysis of the stream. Throughout the process, the State has been
focused on a specific methodology which basically related to impervious cover.
As staff moved forward in the process, various stakeholders and businesses
became uncomfortable with that methodology and with the data historically
collected on the stream. The business community suggested that they and
the City hire a consultant (CH2M-Hill) to do a number of tasks: to pull together
all of the data that has been collected on the stream over the years and to
determine if there are areas where additional data is needed for a better
understanding of the stream. CH2M-Hill would work with the data to select an
appropriate computer water quality model that could be applied to the stream
to provide more info about the potential impact on the Stream in terms of
some of the retrofits and changes that need to be made in the future. As
projects are done in the watershed, both the City and the business community
want to be certain that projects can be measured for their impact and their
cost justified. Once that computer model is applied to the stream, there
needs to be a monitoring plan put in place to measure improvements. The
City is required to submit a plan by the end of the month to the State. It will
first come to the City Council for approval. The plan is strongly building on an
adaptive model meaning that it can be modified as the City moves forward.
The business community has proposed to pay half of the $25,000 project cost.
Staff recommended approval. CH2M-Hill knows the City well and has
extensive knowledge in the area of water quality and urban streams. Staff
feels this is the next step to fill in gaps in its knowledge that need to be filled,
select a model that can be applied to the watershed to help the City define its
plan going forward and to develop a monitoring plan that will insure actual
changes are seen as projects are implemented. Barrett feels this will assist the
City, the business community and DEP in moving forward on an agreed upon
basis of common knowledge and trust going forward. He feels it is a solid
next step to make the project a success. Tim Woodcock, representing
Webber Oil and other area businesses, said it is a very complicated and
significant issue for the City and citizenry. He said that a data base is needed
in order to proceed with the best results for the dollar expended. All are
concerned about the quality of the watershed. He feels it is anticipated that
the City will probably revisit its ordinance structure and may adopt some
ordinances based on the results of the watershed management plan.
Woodcock praised City staff for their work on the project. Responding to
Farrington, Barrett said it is no longer possible to determine the water quality
of the stream in 1968 as there was no testing or analysis at that time. The
City has talked with the State and the stakeholders about the effect of the
Marsh on the water quality in the stream. The State has agreed to look at
how far downstream the effect of the Marsh extends. There is a provision in
the Clean Water Act that exempts naturally occurring difficulties from the
requirements of the Act. If the City can show this, that stretch would not need
to meet Class B standards. The City is required to make its best efforts to
bring the Stream to Class B standards. The City wants to prioritize the projects
to arrive at the closest point of Class B standards at the lowest cost. Barrett
feels that the business community realizes it is involved in solving this
problem. It is focusing on cost effectiveness and the ability to measure where
improvements are actually having the anticipated effect. Woodcock said it is
reasonable to collect information that bears on the predevelopment quality of
the area but it can’t be scientifically quantified. This is a dynamic system and
process. D’Errico said there are a limited number of residential properties that
will be impacted. Palmer praised all involved. Blanchette expressed her
pleasure with CH2M-Hill. A motion was made and seconded to move staff
recommendation.
e. Ambulance – Fire – Custom Truck & Body Works - $103,000
Cammack said 9 bids were issued and 4 responses received. The low bidder
was Custom Truck and Body Works of Woodbury, Georgia. Because all of
their references were from their immediate vicinity, he had concerns about
what their immediate follow up would be should the City take possession of
the truck and have subsequent difficulties. Cammack sent a mechanic to
Georgia to look at the truck and the facility. He was satisfied with the firm,
the quality of their operation, and also visited neighboring communities.
Custom Truck suggested changing from a Ford product to a GM product. In
the past, all of the specs are on a Ford chassis. When purchasing an
ambulance, the Department always has to deal with two manufacturers, one
for the chassis and one for the body. When the bid was prepared, staff
wasn’t aware that GM had a chassis that would meet Ford specs. Whited
Ford has always taken care of the chassis work but is no longer working on
ambulances. Cammack said that Darling’s picked up the warranty work but
they do not have a way to lift up the ambulances to perform work on them.
Therefore, warranty work on the Ford chassis has been problematic. After a
conversation with Quirk’s, Cammack found that they were able to work on
GM products and have the equipment to lift the vehicles. He asked the
Committee to consider approval to move from the Ford chassis to a GM
chassis.
Responding to Stone, Cammack said there is nothing different on the current
spec than has been considered in prior years in terms of extra add-ons. One
of the costs that is not included in the spec, because it is done locally by
Whitten’s, is the mobile radios and mobile terminal data hookup which is an
anticipated cost of $1,800. Responding to Stone, Cammack said that the
current vehicle requires a lot of repairs and Barrett said that to not have the
unit represents a loss in revenue of $250,000-$300,000. Stone specified that
when he asks questions prior to the Committee meeting that he would like a
written response. Cyr agreed to do so. Cyr said that ambulances on average
are replaced every 3 to 3½ years. The Department has five ambulances and
generates annually $1.5-$1.7 in cash revenue. She noted that an ambulance
pays for itself in about 4 months. Stone asked if that was net after payroll
and depreciation on the vehicles. Cyr said that payroll is paid regardless and
is not a direct cost and it can’t be avoided. Stone said he would like to see a
true bottom line when costs are allocated appropriately. Barrett cautioned
that there is a distinction between full cost and budgetary impact.
Responding to Palmer, Cammack said he has written documentation from
Custom Truck of what it would cost to change from the Ford specs to the
Chevrolet spec. The item in front of the Committee outlines the new 2009
Chevrolet G4500 with the same wheel base as the Ford and the cost would
be $108,000. The estimated delivery date is within 90 days from receipt of
the chassis. Cammack pointed out that even with the additional $5,000,
Custom Truck is $89,000 lower than the second bid. Responding to Palmer,
Cammack explained that the Ford work is currently be done at Darling’s but
they have no way to safely lift the vehicle. Palmer questioned if switching
from Ford to GM was in keeping with the bid process policy. Cyr said yes
and, in all bids, the City reserves the right to negotiate with the low bidder
when it is in the best interests of the City. Farrington made a motion to
approve staff recommended. It was seconded by Palmer.
f. Public Works – Sodium Chloride
Cyr noted that this was an added item to the original agenda. Staff received
an e-mail from the Penobscot Valley Council of Governments late this
afternoon that they had opened bids for sodium chloride for the coming
season. Last year, the City participated in the PVCOG bid process for the first
time. Going in with PVCOG, the City is not obligated to enter into a contract
with their chosen supplier. It is up to each individual community. Last year,
the prices seemed high with PVCOG. The City then went out for bid and
found the responses to be even higher. This year’s price from International
Salt Company through PVCOG is $66.99/ton, which is a 14.5% increase over
what was paid last year. Staff feels that this is the best price. On an annual
basis, approximately 5,000 gallons are used. Responding to Palmer, Barrett
said that over the years the City has changed dramatically in how it applies
salt and sand to the streets. The City has gone to computerized control of its
salt and sand machines in an effort to reduce costs and to deal with
environmental concerns. Secondly, depending on the anticipated nature of
the storm and temps, the City will pre-wet streets for some storms. The
Public Works Director and crews make decisions on what treatments to use
based on the anticipated nature of the storm and temperatures. He
anticipates additional improvements in these areas. In the various impaired
watersheds, the City will be working with the private sector to try to get them
to adopt best practices in these areas. A motion was made and seconded to
approve staff recommendation.
2. Funding of Airport Energy Conversation Measures
In the middle of June, Cyr noted that Airport and WWTP staff and Honeywell
discussed energy conservations measures with the Council. At that time,
staff indicated it would return to the Committee with a proposed financing
arrangement for the project. The original cost based on a total project
estimated cost was close to $3M. Due to structural concerns with four
hangars at the Airport, Honeywell has revised their project scope and has
eliminated the insulation portion for the hangar roofs with a revised cost of
not to exceed $2.1M. Staff will in all likelihood revisit the Airport hangar
project with Honeywell. Staff is looking for approval of the funding option for
the Airport. There are two choices: debt or lease/purchase financing or use
existing funds. The cost of the financing would be 3.75-4.0% annually. Cyr
said the Airport has adequate cash or cash equivalent at this time to pay for
the project. Depending on the hangars and the pending bio-mass boiler,
there could be other larger projects pending at the Airport. Responding to
Stone, Cyr said there would still be adequate funds in the Trust Fund. The
$2.6M is in a money market account. Barrett said he is very comfortable with
the suggested funding mechanism. When the projects are completed, he
said there will be an approximate annual savings of $300,000 at the Airport.
Hupp said staff has been continually reinvesting in the Airport’s infrastructure
as well as adding to the Trust Fund. In response to Palmer, Barrett said the
wood chip boiler project is under further discussion. Palmer made a motion
to approve staff recommendation. It was seconded.
3. Review of Proposed Replacement of Fire Station #6
Item postponed pending further information.
Committee adjourned at 6:00 pm.