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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 th 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 nd 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 th 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.