HomeMy WebLinkAbout2007-04-02 Finance Committee Minutes
FINANCE COMMITTEE
April 2, 2007
Agenda
Councilor Attendance: Farrington, D’Errico, Hawes, Gratwick
Staff Attendance: Barrett, Cyr, Dyer, Ring, Little, Wardwell, Hupp,
Bolduc
1. Bids/Purchasing
a. Snow Removal Equipment – Airport – Nortrax -$92,800
Cyr said this item will be funded by Airport Improvement Program funds which is
95% federally fund, and 2.5% funded by each the State and local. Two
responses were received. Cyr stated that the purchase is contingent upon FAA
approval. Responding to D’Errico, Hupp said one of the primary uses for this
equipment will be to remove snow from the safety area and around the approach
lighting. A motion was made and seconded to approve staff recommendation.
b. Roof Replacement – Economic Development – GR Roofing Inc -
$58,168
Cyr said this is part of the FY07 budget to replace the roof at Venture
Way, which houses the Penquis CAP Child Care Center. Four responses were
received in the bid process. The City has good working experience with GR
Roofing. A motion was made and seconded to approve staff recommendation.
c. Turnout Gear – Fire – Fire Tech & Safety - $19,674
The City put out a three-year bid for turnout gear rather than going out
for bid every year. Usually 18 pairs are replaced each year. Five bid responses
were received. Fire Tech & Safety estimates $19,674 with a guaranteed no
price increase in year two and three. The Clean Clothes questionnaire was
completed as well by the manufacturer. Responding to Gratwick, Barrett said
there is 80 plus firefighters with a four-five year cycle. The equipment is also
used in training situation. Gratwick said he would be interested in used
equipment. A motion was made and seconded to approve staff recommendation.
d. Traffic Signal Equipment – Public Works – Highway Tech Signal
Equipment - $10,995
Cyr said this is the video detection equipment for the intersection of
I-395 and Odlin Road. The current equipment is failing and needs replacement.
Two bids were received. Responding to Gratwick, Ring said in total there are 25
to 30 and perhaps even more units in the City. The State does not support this
specific intersection. On State highways, Barrett said the State gets involved
with the original installation in terms of support and in any total upgrades but
the municipality is responsible for maintenance. This equipment is considered
maintenance. A motion was made and seconded to approve staff
recommendation.
e. Traffic Signal Equipment (Detectors) – Public Works – Econolite
Control Products - $12,970
Cyr said this is similar to the previous item. It is for Broadway
specifically between Grandview and Center Street. The recommendation came
from the BACTS traffic consultant. This was not part of the budget process but
Public Works has some additional funds in the salt account for the item. The low
responsive bidder was Econolite Control Products. Highway Tech submitted a
lower bid but it was an alternate. The Econolite products matches the City’s
other equipment. Gratwick asked if the same equipment is on Stillwater Avenue.
Ring said yes on outer Stillwater. The same type of equipment is used on Hogan
Road down to Mt. Hope, on Main Street, a section of State Street, Union Street,
and Broadway. Responding to Gratwick, Ring said the City is looking at
Stillwater in conjunction with some development projects but is also looking at it
through BACTS to identify operational improvements. Responding to Farrington,
Barrett said the City has dealt with the state regarding substandard equipment,
which caused traffic problems on Broadway. The State has since revised their
procedures. A motion was made and seconded to approve staff recommendation.
f. Review of Midway Contract – Bangor State Fair
Cyr said this discussion took place previously and it was requested at
that time that the final terms of the contract with the Midway operator be
returned to the Committee for approval. Dyer has been working with Fiesta
Shows. There is a new cost sharing formula, there is a change in the cost
sharing if the fair does extremely well on rides, special projects to be funded by
Fiesta, upgrade sewer and electrical services at the camp site, retrofitting the
grandstands for use by the Fair and Bass Park once the OTB moves across the
street. Dyer said this proposed contract should generate a million dollars in
revenue over the next five years. Both parties have tried to fine tune the
agreement. It is not getting any easier for carnival operators to move rides in
and out of the Maine. In any good partnership, Dyer said both parties need to
be protected. The way the ride revenue currents breaks out it protects Fiesta
Shows in a very bad year. It earns the City at least what it has earned in the past
plus the option to make more in that historic revenue place where the City has
found itself with the rides. With extraordinary years, the City gains more dollars
but it acts as an incentive for Fiesta shows to put more into new rides. A motion
was made and seconded to approve staff recommendation.
2. Request to Write off Real Estate Taxes
Little said the list he provided is mainly mobile homes. Some
individuals have moved out of Bangor, which makes collection nearly impossible.
Others are properties that are fully exempt. They were taxpayers that would
have had numerous years of taxes. Once the Homestead Exemption increased
to the values of the mobile homes, they are no longer being taxed and the City is
not receiving the money for prior year’s taxes. Little would like to get them off
the books and forward them to a collection agency. In total, it is under $5,000
for about 14 accounts. Responding to Gratwick, Little said the lien process for
mobile homes puts the lien directly on the building structure itself. The mobile
home park owner is assessed for the property. Responding to Gratwick, Little
said he would obtain information from the City Assessor regarding land
assessments on mobile homes. A motion was made and seconded to approve
staff recommendation.
3. Resolutions Approving the Details of the City’s $2,000,000
2007 SRF General Obligation Bonds
Cyr said that at a recent Finance Committee meeting Councilor Stone had
requested that discussion focus on the City’s debt and the Committee discussed
the SRF (State Revolving Loan Fund). It is administered by the Maine Municipal
Bond Bank and was established by the Federal Clean Waters Act. As payments
come in, it frees up money for the State to make loans to other entities.
Historically, the City has significantly used it since early 90’s. The $2M is being
issued under the SRF and over half of it will go towards Phase 1 of the Franklin
Street sewer separation project, a portion to Perry Road pump station upgrade,
and money for preliminary design work for the second phase of Franklin Street.
The Finance Committee has to approve the details of any bond issue. Over the
next twenty years, the City will pay a fixed interest rate of 1.65%. There are
some fees charged for Maine Municipal Bond Bank and DEP for administration
services. It might add another quarter of a point to the interest cost. Responding
to Gratwick, Cyr said on April 1, 2008, the City would make a payment of
$106,790.27 that will all go to the Maine Municipal Bond Bank and $85,305
would be applied to the outstanding principal balance, $16,400 will be
recognized as interest, $1,525.58 will go to the Bond Bank and the remainder to
the DEP. At Gratwick’s suggestion, staff will check to see if Birch Stream would
fall under the Clean Waters Act. A motion was made and seconded to approve
the details of the GOB.
4. Executive Session – Hardship Abatement – 36 MRSA § 841 (2)
A motion was made and seconded to go into executive session.
5. Open Session – Hardship Abatement Decision