Loading...
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