Loading...
HomeMy WebLinkAbout2008-08-04 Finance Committee Minutes FINANCE COMMITTEE August 4, 2008 Minutes Councilors: Palmer, Stone, Hawes, Farrington, Blanchette, Gratwick, D’Errico Staff: Cyr, Dawes, Hupp, Cammack, Farrar, Little 1. Consent Agenda A motion was made and seconded to approve the Consent Agent. a. Quitclaim Deed – 85 Cedar Street – J & S Realty Trust b. Quitclaim Deed – 17 Lincoln Street – Twenty-Four Hour Club 2. Bids/Purchasing Stone noted that Items c. and d. would be postponed to the next Committee meeting. a. Tandem Axle Cab & Chassis – Fleet Maintenance - Daigle & Houghton Inc - $114,441 Cyr said this is the beginning of the City’s purchase of two new plow trucks. The units are purchased in pieces. The cab and chassis are purchased as a unit and then the dump body, plow wing assemblies, etc. are bid out separately. The cab and chassis are then delivered to the next vendor who installs the dump body and other equipment needed. 14 bids were issued, 5 received. Staff recommended award of contract to Daigle & Houghton of Fort Kent. Gratwick asked for an overall review of the fleet, number of replacements still needed asking if it would be better to bid out in volume. Dawes noted that the problem with volume purchasing is that the replacement also comes all at one time which is a considerable amount of money versus 2-3 or 3-4 per year. He also noted that unless the purchases are in large volume, there isn’t a large savings. Responding to Palmer, Dawes said that Daigle & Houghman has a dealership and servicing branch in Hermon. In response to Stone, Dawes expects the life of the vehicles to be approximately 10 years with 100,000-110,000 miles. Discussion continued on regarding GPS use and software, and Stone asked for an update at a future meeting. A motion was made and seconded to recommend approval to the full Council. b. Overhead Doors – Fire – Overhead Door Co - $41,113 Cyr said bids were put out for 11 doors at Central Fire including purchase and installation of the new doors and removal and disposal of the old doors. 6 bids were received and the recommendation is to Overhead Door, Co., the most responsive bidder. The two lower bids did not meet specifications. Palmer asked about safety features and Cammack provided detailed information on the upgrade to the latest safety equipment. A motion was made and seconded to approve staff recommendation. c. Toner Cartridges – City Wide - CVR – Estimated $40,000 Postponed d. Request to Waive Bid Requirements – Penjajawoc Watershed Management Plan – CH2M Hill Postponed e. Request for Proposals – Car Rental Concessions – Airport Prior to the recent issuance of a request for proposals for car rental concession services, the Airport sought direction from the Business and Economic Development Committee and determined that it was in the best interests of the City and the Airport to increase the number of rental concession slots from four to five, prohibit dual branding, and maintain the requirement to register a specified number and value of vehicles in Bangor. Hupp said the City received 5 proposals for car rental concession slots. The Airport receives revenue from these agencies based on rental of counter space, leasing of maintenance facilities, parking space rental, as well as a percentage of gross revenues. To insure stability in rental revenues, the rental agencies are required to guarantee a minimum yearly revenue amount. The total guarantee from the five proposals received for the five-year contract period will be at least $5.2M. The Legal Department will review the contracts prior to entering into any agreement with the rental agencies. Responding to D’Errico, Cyr said car rental agencies are between 10-12% of total revenue at the airport. Stone asked about excise tax revenues, and Cyr said the money stays with the general fund. A motion was made and seconded to approve staff recommendation to the full City Council. f. Authorizing/Ratifying Execution of Fuel Oil Contract(s) With a dip in oil prices last week, Cyr indicated that she checked with Stone, as Chair of the Finance Committee, and City Manager Barrett regarding the purchase a contract for August delivery and they agreed that she should execute a contract with Irving for a delivery of 42,000 gallons for August at $3.713/gallon. She did not lock in the entire year. She asked for the Committee’s recommendation to move the item to full Council. She also asked the Committee to review a Council Order that would provide staff the authority to lock in a contract price either for a month at a time or the whole season, if it is in the City’s best interest. Cyr said she would contact the City Manager and the Chair of the Finance Committee prior to any purchase. Responding to Palmer, Cyr said that Irving was the supplier selected several years ago. Cyr said the item has not been out for bid for sometime. Irving is the only supplier that delivers bio-diesel. Blanchette expressed support for the item but requested that the Finance Committee be kept apprised of any contract. Blanchette thanked Cyr for her work. A motion was made and seconded to recommend approval to full Council. Farrington suggested that the Council Order should not specify a supplier. Cyr agreed. D’Errico suggested checking with the Maine ANG regarding their supplier and prices. Cyr said she would check into it. Committee adjourned at 5:30 pm.