HomeMy WebLinkAbout2007-01-18 Finance Committee Minutes
FINANCE COMMITTEE
January 18, 2007
Minutes
Councilor Attendance: Stone, Blanchette, Allen, D’Errico
Staff Attendance: Barrett, Cyr, Ring, Yardley, Dubois, Dawes, Little, Wellington
Others: Casey Leonard, Roger Lebreux, Sara Yasner, Les Shaw,
Judith Boothby, Nick Bearce, Dawn Gagnon
1. Consent Agenda
A motion was made and seconded to approve Consent Agenda items by a 3-0 vote.
a. Quitclaim Deed – Burgundy Realty Corp – 112 Franklin St
b. Quitclaim Deed – Parsons – 6 M Street Birch Hill Estates
c. Quitclaim Deed – Robinson – 383 Broadway/190 Burleigh Rd
d. Workout Agreement – Henneberry – 39 Blackstone St
e. Workout Agreement – Mailman – Lot 15 Pray’s Park
f. Workout Agreement – Wentworth – 373 Hancock St
g. Workout Agreement – Wilcox – 28 B Street Birch Hill Estates
h. Write Offs – Lot 30 & Lot 36 Martel Mobile Home Park
i. Resolve 07-059, Appropriating an $80,000 Grant from the Maine Office of
Substance Abuse
j. Resolve 07-060, Appropriating HUD Grant Funds for Project Based Rental
Assistance
2. Bids/Purchasing
a. Multiple Truck Bodies – Fleet Maintenance – Equipment Depot - $25,077
Cyr said that in November of 2006 the City went out to bid for truck cabs. This bid
is for the chaises to put on the cabs. There were 6 bids issued and 4 returned.
Equipment Depot was the low bidder. They will be responsible for installing the
items on the new Dodge Ram pick up trucks. Blanchette asked if the City has
experience with Equipment Depot. Dawes said yes and they are a qualified vendor
that performs excellent work. Stone asked what happens to the old vehicles.
Dawes said the City normally uses an auction service for surplus equipment. Two
of the vehicles are 1981 and 1982 trucks and the others are in the late 80’s.
Blanchette asked if funds are held in escrow for fleet maintenance. Cyr said yes and
the escrow is in its eighth year. Blanchette asked if there is a list of projected fleet
equipment that will need replacement each year. Cyr said that each year there is an
initial replacement plan for budgeting purposes. Dawes then decides on which
items need replacement for the budget year. A motion was made and seconded to
approve staff recommendation by a 3-0 vote. Responding to Stone, Cyr said that
the City’s Purchasing Agent Peggy Sheriff left at the end of December. Purchasing
falls under the Finance Department’s jurisdiction and Cyr is Acting Purchasing Agent
at this time.
b. Engineering Services – Public Address System – Airport – Edwards & Kelcey -
$39,752
Cyr said there are a number of capital projects at BIA that are annually funded
through the Airport Improvement Program. Through AIP, an engineering firm is
required to be chosen, which the City competitively bid, and then retains their
services for each program as it comes forward. Each time a new project comes
forward, Edwards and Kelcey, the City’s chosen engineering firm, prepares an
estimate for their cost. An independent engineering firm reviews the cost to
determine it is an appropriate charge. The independent review has been completed
and the $39,752 has been approved. With AIP projects, 95% is funded by the
federal government, 2.5% by the state and the remaining 2.5% by the Airport.
Responding to D’Errico, Cyr said the independent review firm does not charge for
their service. D’Errico asked for further information; i.e. the name of the firm and
any fees involved. Stone discussed the Federal funding requirement process of
spending larger amounts of money for a firm to lay out a project when it could be
done less expensive locally. Cyr pointed out that the engineering firm also completes
all of the federal paperwork requirements. Barrett agreed that it is a very
bureaucratic and cumbersome process. Blanchette asked how this project ties in
with Homeland Security and asks what happens if there is a power failure at BIA.
Barrett said the building is on an emergency generator. Blanchette said she would
like to know for certain and also wants to know the last time a test run was done on
a crash-down system. Barrett said they are checked once a week, Citywide.
Blanchette stated that she and D’Errico feel that the Airport Committee needs to be
reinstated. A motion was made and seconded to approve staff’s recommendation
by a 3-0 vote. D’Errico seconded the mentioning asking that the answer to
Blanchette’s stated questions be forthcoming.
c. Request to Waive Bid Requirements – CH2M Hill – GIS Services
Ring said the request is for services to help with a Geographical Information
Services set up in Bangor. GIS technology is a method to manipulate and assemble
data. It involves mapping, recording of utilities, and is a way to organize and
quickly access information such as addresses, locations, types of buildings. An
immediate need for which GIS would be useful is related to Federal and State
required watershed management plans for five impaired streams in the City. One of
them is Birch Stream, which is the City’s first priority in terms of watershed
management. Watershed management plans means a number of things – gathering
data and knowing what it is within that, what contributes to stormwater aspects,
what exists and what is proposed in the future to manage stormwater in terms of
physical facilities, and to track ownership. One of the best ways is to get a GIS
system in place. There is currently a modest budget, Ring said, including getting
started in GIS implementation with $46,000. Originally, staff had thought to use
part of the funds to hire an employee to work with GIS. Staff feels expertise is
needed to help develop an implementation plan for GIS. On the near horizon, is GIS
applications for emergency services? The Fire Department will be receiving a
$100,000 Homeland Security grant for GIS system implementation. The framework,
however, is not in place as to how best to set up a system that will not only be
useful for our short term needs (stormwater plan) but future needs as well. The
system needs to be a compatible system. There is a current retainage agreement
with CH2M-Hill, an engineering company that the City has used on a number of
projects. They have experience with GIS and the City has had a longstanding
professional relationship with them. They have experience also in GIS applications
for stormwater management systems. Staff has requested a proposal for CH2M-Hill
to meet with City staff (short and longterm projects). Staff recommends the use of
CH2M-Hill and requesting authorization to enter into a contract with them for
$16,000. D’Errico asked if the City would charge for sharing information generated
from the GIS service. Ring said in most cases it will mainly be for internal use but
he would not rule out a fee for service. Blanchette asked if the E-911 GIS statewide
system is running. Ring said it is but there are some issues and problems to be
worked out. Blanchette asked Ring if he had checked with the Penobscot County
regarding the E-911 system. Blanchette made a motion to approve staff’s
recommendation. For the record, Stone indicated Councilor Allen had joined the
table. Allen then asked if the GIS would be mainly for sewer and flooding problems
or for emergency management as well. Ring said yes and he reiterated some of his
previous comments from the beginning of the discussion. Allen asked if GIS is
compatible with E-911. Ring stressed the need for an implementation plan, or a
roadmap, as to how the City should enter this to assure that it does not end up with
incompatible or outdated equipment or systems. Ring again stated the need for
assistance with the implementation plan and CH2M-Hill. Responding to Allen, Cyr
said that 911 calls go into Bangor, not Orono. Stone asked that the discussion
surround the bid process and not wander. Allen talked about a state effort to
handle emergency calls. Ring said that while what the City is looking at will not
replace the E-911 systems, the City needs to be compatible with them. D’Errico
seconded Blanchette’s motion. It passed by a 4-0 vote.
d. Request to Waive Bid Requirements – Arena Site Update Study – HOK
Barrett referred to HOK’s 2003 arena site study. At that time, several consultants
worked on the arena issue. In 2002, CS&L did a marketing and feasibility study.
HOK identified a number of possible sites. The highest rank site was in the
downtown area followed by Bass Park. Things have changed since that original
study. There now appears to be a significant source of funding. B-13 was a
primary site and is now not available because of the new court building. The next
step in developing an arena is to decide on a site. One way to reach that point is to
ask HOK to return and work through an update of their 2003 study to look at
various options, show examples of how a facility could be configured on those sites
and work with the City to come up with a criteria and eventual recommendations for
the Council’s consideration. HOK can complete this work in a 60-90 day period at a
cost of $16,500 plus expenses. Barrett anticipates the project could be completed
for $20-25,000. Back in 2002-03, the City also looked at the potential for private
management of a new facility. Barrett suggested contacting the company that
expressed interest at that time regarding an hourly rate to be involved in the
process as needed. Blanchette asked if the Council has decided that the City needs
an arena that is paid for exclusively by Bangor taxpayers. She understands the need
for a civic center but she is uncomfortable with building a sporting arena without
asking the citizens if that is what they want to do. The racino revenue might not
always be available. She would like discussion amongst the Councilors prior to
spending $25,000 for HOK. She would like the discussion to center on whether the
City Council wants a sports arena or wants to build a civic center. At this point in
time, Blanchette said she would vote against this item. Barrett said that it has been
the clear understanding at staff level associated with a number of Council actions
that this is the direction Council wants to go in so staff has been pursuing that
direction. The Council has every right to revisit the entire issue at any point in time.
Blanchette said she feels the cost of maintenance of an arena will eventually fall
back onto the City and its taxpayers. For some years, Bass Park operated in the
black. Allen agreed with Blanchette. She said there is a great deal of sentiment
amongst citizens about spending the so-called racino funds. Allen said she would
not support this item. She also thinks the issue should go to referendum in June.
Stone agreed that the citizens need to be able to vote. He is not certain how to
word a question and how to get to that point. Barrett said that if there are
questions the Council should first look at the big issue. Is this a project you want to
consider going after using the racino funds or not? Up until tonight, that has been
the clear direction that staff has received. If the Council decides to move ahead
with the arena, then it can decide how to involve the public. Stone made a motion
that the item be tabled to a Council Workshop. Allen said a simple referendum
question would be: are you willing to spend a portion of the funds for a community
project as well as a portion for a racino project. It is not committing to a set dollar
amount but broadening the base. Blanchette said that is what the Council needs to
decide. Blanchette seconded the motion to table the item indicating that it is not
debatable at this point. Allen again said there is a growing dissent in the community
and will probably be brought through a petition referendum if the community is not
happy. Barrett was directed to set up a Council Workshop Session.
3. Review of Improvements to Health & Welfare Department
Stone commended Yardley for his work for the City. Cyr said there are
approximately $25,000 remaining in state grants as of the end of December. The grants
were issues for the WIC and Immunization programs. Yardley would like to consolidate
functions of his office. The two largest offices being used by the general public are
General Assistance and WIC. There are two separate entrances at this point, which is a
security issue. Yardley would like to rearrange the area with one central reception area,
which would be staffed fulltime. He also is looking to get Park Woods administration
out of a unit. It frees up a unit, produces additional rent and opens another slot on the
waiting list for transitional housing. Ventilation is another issue in the building. Staff
would be moved around so that everyone has exterior ventilation with fresh air. Since
Yardley’s updated memo, the City has also been awarded an additional OSA grant of
$80,000 for Penobscot and Piscataquis Counties. Part of that grant provides for 15
hours of clerical support. In last year’s budget, Yardley lost a longterm employee and
he cut the receptionist hours to 30/week and made it a parttime position. He would like
to put it back to a fulltime position as everyone will be coming through that one location
now. The OSA grant funds are adequate to cover the increased costs. Allen thought it
was a good idea. Yardley said the amount of work to be completed would not exceed
the amount of grant monies available. He has been working with Ames Engineering to
provide expertise in restructuring the office. Ames will prepare a bid package for the
City to use. The State will cover the entire cost of transferring the WIC office.
Responding to Allen, Yardley said there was an end of year surplus. He went to the
state indicating that he proposed to reorganize the office and asked if the remaining
grant dollars could be used for that purpose. The State said yes. Responding to
Blanchette, Yardley said that WIC would fund the wiring piece. She asked if funds were
available from Healthy Maine Partnerships. Yardley said that the Council had previously
approved the Healthy Maine Partnerships becoming part of the City. Yardley said that
approximately 600 clients per month come through the GA office. WIC has 3,000
clients. There are outreach clinics as well. A motion was made and seconded to
authorize staff to move forward with the process. The vote was 3-1 (Allen). The funding
will be through grant sources, not through City funds. Yardley will come back to the
Committee with bid responses for the improvement project.
4. Review of Recent Changes in Election Process
Dubois stated that last year the Council approved a reduction in the number of polling
places from eight to four. The City also implemented an early voting set up at the civic
center. She was asked to come back to the Committee with a review to see if
adjustments might be necessary. Two elections have been completed since the
changes were implemented. Following the elections, Dubois held a follow up meeting
with election staff and comments were positive. Some details at staff level can be
worked out. Dubois took the election staff comments to the citizens committee that
actually suggested the changes and received their feedback as well. For the most part,
it was very positive. 40% of voter turn out was done with early voting. She expects
that trend to continue. The citizens committee suggested that for a small election (off
year or primary election) two weeks of early voting be made available rather than three
weeks. The decision would be left to the discretion of the City Clerk. Judith Boothby
and Nick Bearce offered comments regarding the voting process. They both serve on
the citizens committee. Blanchette stated that Bangor has one of the smoothest
operating voting systems in the State of Maine. She thanked the citizens committee
and the City Clerk’s Office staff. D’Errico complimented the City Clerk. Stone expressed
appreciation to the City Clerk and her staff. Barrett concurred with the compliments of
the Clerk’s Office.
5. Review Proposed Amendments to Agreements with Maine Air Museum
Cyr said the Maine Air Museum began its operation in 1999 off Maine Avenue. The
building had been vacant for many years and it has issues, one being a leaking roof.
The Museum pays a minimum rent to the Airport, which is allowed under FAA
regulations. The Council previously approved loaning $33,700 for the roof repair and
part of that agreement is that there would be no payments due for the first five years.
The first pay would have been due on May 1, 2007. The Museum continues to work to
bring up patron use, public and private support, etc. Les Shaw, the President of the
Maine Aviation Historical Society, approached the City indicating the Museum is not in a
position to make the payment. Staff recommended rewriting the original note to
extend it an additional five years and allowed a deferred payment for another five
years. The original lease required the Museum to report monthly to the Airport and
that clause was changed to an annual reporting system. Shaw briefed the Committee
on various upgrades and building improvements so that it is code compliant. There are
over 200 displays currently at the Museum. Traffic at the Museum has increased over
the years and its annual budget is $6,000-7,000, which is mainly membership dues paid
to the Maine Aviation Historical Society and for entrances to the Museum. Shaw said
the Museum is now ready to write grants and start promoting itself. Responding to
Stone, Shaw provided a brief description of the Museum’s contents. Blanchette asked if
the organization has pursued Bangor’s cruise ship industry as part of their tour of
Bangor. Shaw said the organization is a member of the Chamber of Commerce, it has
distributed brochures through the local area, it is working on an updated brochure, it
has worked with the Challenger Center and it has been effective. Blanchette asked that
brochures be made available at the Harbor Master’s Office. Shaw agreed. A motion
was made and seconded to approve staff recommendation. Appropriate Council Orders
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will appear on the February 12 Council agenda. The vote was 4-0.
6. Request for Support of Camp Bangor
Cyr said the Libra Foundation is once again sponsoring Camp Bangor, which provides
scholarship money for all Bangor students entering grades 3-6. United Way administers
the scholarship program and hosts Camp Bangor event at the Civic Center. For the last
several years, United Way has asked the City to waive the rental fee for the Civic
Center. The one difference in this year’s program is that up to $1,000 went to every
student and it is now $800 for the two lower grades and $1,000 for the two higher
grades. There is also a Bangor Clean up event in conjunction with Bangor Beautiful
whereby the kids clean up Bangor’s parks. A barbeque is held at the end of this event
and United Way asked for $580 for the barbeque celebration. Yasner spoke about the
importance of Camp Bangor. Blanchette thinks it is a great program but asked why
Bangor High School’s auditorium and the Parks and Recreation gym are not used for
this event. Yasner said that Parks and Recreation is not large enough. Stone was not
certain that the High School’s auditorium would be feasible. Blanchette spoke of
waiving the fee for one organization and not another. Allen agreed with Blanchette.
Blanchette suggested splitting up the camp by age groups and thereby using a smaller
facility. Yasner said the logistic challenge of splitting the group is that there are about
95 camps that participate. Approximately 85% of the camps meet the needs of all the
children, which means all the camps would come for two days. Cyr said that some
parents bring more than one child, which could present a potential issue. Barrett said
that Bangor was selected over the City of Biddeford as Libra’s first choice. Libra chose
Bangor because of the support of the City in general. United Way volunteered to
administer Camp Bangor, not as part of their regular programming. Barrett’s
recommendation was to approve the issue pending asking United Way to investigate
the possibility of using the Bangor High School. Allen felt the Council was being forced
to make a decision at the last minute. Allen made a motion to deny the request. The
motion was seconded by Blanchette. She again expressed support for the program but
as a Councilor she needs to reign in unnecessary expenses. The vote was 2-2 (Stone &
D’Errico). The item will go to full Council. Barrett was asked to prepare the item for
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the January 22 Council agenda rather than waiting until February.
7. Auditors Presentation of Fiscal Year 2006 Annual Financial Report
Cyr introduced Roger Lebreux and Casey Leonard from the auditing firm of Runyon,
Kersteen and Ouellette. The auditors proceeded through the financial report.
Responding to Blanchette, Cyr said this presentation is for informational purposes only.
On the upcoming Monday’s Council Agenda, there will be a Council Order to accept the
annual financial report. Responding to Stone, Lebreux said the best way is to compare
Bangor against other similar sized municipalities. Cash in the bank, fund balance is
what is in your pocket. The City has a substantial reserve, which places the City in
positions at bonding time and helps with the bond rating and also helps stabilize the tax
rate. Responding again to Stone, Lebreux said the City is self-funded for a few
insurances but it also has reserves and actuaries showing what needs to be put aside.
There are unknowns with the Penobscot River clean up. Barrett discussed the upward
trends in excise tax collections, building permits, etc. Allen discussed the EPS school
funding formula. Leonard discussed the undesignated fund balance. Barrett said the
Charter requires the city to set the goal of no less than 5%, no more than 10%. The
Council adopted a separate policy that indicates 7.5%. If there are funds over 7.5%,
the Council could consider using them for capital purposes. He stated that fund
balances have been used to deal with the river clean up. Responding to Stone, Lebreux
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said that they normally recommend that an undesignated percentage be 1/12 of the
current year’s budget. The City uses the prior year’s budget. Responding to Stone,
Lebreux said they recommend it be 9.11%. Barrett said the undesignated fund policy is
something that the Council should perhaps spend some time discussing. Barrett said he
would like to see the undesignated fund balance be slightly higher. Blanchette talked
about Bass Park and an arena. Allen spoke about the sewer fund and asked if there are
concerns about future costs and rate increases. Barrett said that the secondary
treatment plant will be paid off in 2009. Blanchette spoke about the Schedule of
Comments as part of the auditor’s management letter and suggested the Council as a
whole go through the items to see if some could be addressed. Barrett suggested that
the auditors go through that section tonight.
8. Resolve 07-052, Appropriating Funds to Demolish 56 Larkin St
In September, the Council adopted an Order condemning this building. The owners
were properly notified of the public hearing and served with the Council’s decision,
which gave them 30 days to either repair and rehabilitate the structure or demolish it.
Over the last four years, the City has received no response to any correspondence with
the owners, including this condemnation order. As a result, the City’s only option is to
proceed with demolition of the structure at an estimated cost of $10,000. After the
work is performed, the City will place a lien on the property and attempt to recover our
costs at some point in the future. Recovery of all costs, however, is unlikely. The 30 x
100 ft. lot the house sits on is unbuildable, and acquisition by the abutting property
owners is the only viable disposition of the land. A motion was made and seconded to
approve staff recommendation. The vote was 4-0.