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HomeMy WebLinkAbout2007-07-16 Finance Committee Minutes FINANCE COMMITTEE July 16, 2007 Minutes Councilor Attendance: Hawes, D’Errico, Stone, Blanchette, Farrington, Gratwick, Allen (by conference call) Staff Attendance: McNeil, Cyr, Barrett, Farrar, Heitmann, Dubois, Wardwell, Yardley, Ring, Little, Gastia Others: Stormann, Cooper, Franklin Place, Fuzion, Karl Ward, Don Gary Stone indicated that Councilor Allen would be joining the Committee meeting in progress via conference call and that Councilor Gratwick would be a voting member for Councilor Allen. Roberts Rules do not allow a voting member to vote by telephone. 1. Consent Agenda Gratwick asked about item (d). Responding to him, Cyr said that the entity has to pay interest on any amount due. Not being able to speak for other departments, Cyr said her only contact with the Association is through taxes. Little agreed and indicated that he believes the Association is similar to a limited liability company that obtains land for subdivisions. Gratwick indicated he is sympathetic to residents unable to pay taxes but not with corporations. He asked for background information. Cyr will check and provide the requested information at a future date. Little said he felt this issue was internal matter in which the Association had not realized the amount had not been paid. When taxes are overdue, Blanchette asked if Treasury makes a notification as opposed to an expensive lien process. Little said that all outstanding taxpayer accounts are treated equal and past due notices are issued. Once the lien is committed, it is about a 2 ½- year process. Blanchette agreed with Gratwick in terms of outstanding business taxes. She suggested a penalty beyond the interest rates charged. Barrett pointed out that the interest rate is determined by the State and it is generally higher and is currently 12%. Little said that 438 liens were issued this year, which is the lowest year in the past 14 years. A motion was made and then seconded to approve the Consent Agenda by a 5-0 vote. a. Resolve 07-240, Accepting & Appropriating a DHHS Grant for STD Clinic/HIV Counseling, Testing and Referral Services b. Workout Agreement – Jones – Lot 27 I Birch Hill Estates c. Workout Agreement – O’Connell – 282 Essex Street d. Quitclaim Deeds – Stillwater Ave Land Assoc – 45 Chase Rd, 1059 Stillwater Ave e. Approval of Contract for Arena Site Location Services - HOK 2. Bids/Purchasing a. Paving – Public Works – Lane Construction - $738,863 Cyr stated that this is the City’s annual paving contract. There were two respondents to the bid. Lane Construction is the low bidder. There has been a huge escalation in paving costs. This year’s price from Lane is $60.40/ton is a 2 ½ percent increase over the prior contract. Wardwell said the City would be using 7,500 ton of payment this year and last year was 9,175. He spoke of pavement work required on Balsam Drive and Finson Road. Gratwick asked if staff had considered if traffic-calming measures have been considered when street paving is planned. Wardwell said he has included extra money this year for two streets if the City decides to move in that direction – Poplar Street and Buck Street. Ring said that the area at the top of Park Street Hill and Somerset Street is also under consideration. Ring indicated that within a few months the Howard Street area would be reviewed for the effectiveness of the traffic calming measure in place. Barrett spoke about a future policy that would apply when the City is asked to look at a traffic calming installation. Based on the Howard Street measure in place, he stated that a traffic calming measure is not a 30-day decision due to public comment and public input. By a 5-0 vote, a motion was made and then seconded to forward staff’s recommendation to the full Council. b. Watershed Management Plan – Penjajawoc Watershed – BSA At the last Finance Committee meeting, Ring indicated the Committee discussed an item dealing with a consultant to work with stakeholders to develop a water quality management plan for the Penjajawoc. The item was tabled at that time, as some folks were interested in further information. Of the four bid responders, staff still recommends retaining the contract with BSA Associates. Ring has spoken with folks since the last meeting and they are all in agreement with the recommendation. The management plan subcommittee of the Marsh/Mall th Commission will meet on July 19 to discuss the plan. Gratwick and Stone commended staff for their involvement with the project and in bringing stakeholders today in a positive manner. A motion was made and then seconded to approve staff recommendation. The vote was 5-0. c. Newport Industrial Fabrication Cost Adjustment – Police Department Gastia said this issue arose during the beginning phase of the new police headquarters and as a result of a cost increase to Newport Industrial Fabrication, the steel supplier for the new building. When the project was bid, a cost was submitted by Newport including the price for steel. When the contract award was made in August, the steel was not ordered by Newport Industrial at that time. It was ordered in mid-fall. Unfortunately, the steel prices for the project had significantly increased by the amount of $23,000. It was unforeseen. Newport Industrial asked the Police Department to consider assistance with the increase realizing there was no obligation on the part of the City. Newport could have withdrawn at that time and, fortunately, they did not. They completed the project regardless of the cost increase. Gastia stressed that Newport stayed with the project, completed the project on time with an appropriate quality of workmanship. Staff recommended that the City authorize an additional payment to Newport Industrial for $9,000 toward the $23,000 loss. Gastia stressed that Newport Industrial is a Maine company and supplies services to the general Bangor area. If the steel had been purchased shortly after the contract award, the steel increase may not have been realized or may have been significantly less. Gastia believes that Nickerson and O’Day should bear some of the responsibility in this instance in the first place. Newport Industrial remained committed to the project and avoided delays for a timely project completion. Carl Ward, President and CEO of Nickerson and O’Day, Dan Gary, President of Newport Industrial addressed the Committee. Ward said his company tried to keep the project to all contractors from Maine and basically did so. Had Newport Industrial walked away from the project, it would have created a two-month delay. Ward stressed he tried to keep the project on schedule and kept reducing the costs in other ways. Ward distributed information to the Committee. He spoke of a number of areas with significant budget decreases with respect to allowances that were scheduled to be charged against the contract resulted in a $30,000 savings against the guaranteed maximum price, which will be returned to the City in the form of a Change Order. Ward also spoke about a project difficulty in the area of the demolition Bangor Radiator Shop and utilities. O’Day’s cost to remove the building was significantly less than what was granted in the Change Order. They returned the cost under-run and also returned the profit on that cost which was approximately $16,000. Newport’s cost overrun for the completed project went from $23,000 to nearly $30,000. Should the City elect to respond to Newport’s reimbursement request, Ward said that O’Day would make up the difference between the $23,000 and $30,000, paying $7,000, because of bearing some responsibility. Newport’s profit margin for the entire project was $18,000. Gratwick commended all for a superb project. He asked how the $9,000 had been arrived at. Gastia said it was an arbitrary figure taking into consideration the City’s financial situation and the obligation of O’Day. Ward stressed that it is normal to take a few months to issue purchase orders on projects. Contractually, Newport Industrial would not have purchased any materials prior to receiving the purchase order from O’Day. Ward spoke about the New Orleans’ storm causing upheaval in the construction market causing an unforeseen impact on Newport’s park. Farrington echoed Gratwick’s commendation on the completed project. Responding to Farrington, Cyr said the final project cost for the straight construction contract from Nickerson and O’Day was $7,133,000. She indicated that this does not include furnishings, fixtures, and engineering work completed by WBRC. In the end, it will come in close to $9M. Stone recommended the Finance Director meeting with all involved to come up with a fair split of dollars. Cyr said she would like some direction asking if the Committee was comfortable with the $9,000. She is comfortable with the City paying $9,000 and O’Day paying $7,000. The Committee agreed it was comfortable with the $9,000. All parties agreed to meet with Cyr. d. Cellular Service Contract – City Wide – US Cellular Cyr indicated that the City is currently under contract with U.S. Cellular for cellular phone service through 2010. Recently, the State of Maine entered into a contract with U.S. Cellular, which allows the City to piggyback on the State’s contract. Pricing under the State plan is significantly better than the City’s current contract, with an estimated saving Citywide in excess of $15,000/year. In order to obtain this pricing, the City would need to execute a five- year contract running through 2012. From a budgeting viewpoint, Barrett said it is easier to budget a known dollar amount for a five-year period. The Finance Director does not have authority to sign a five-year contract. Responding to Stone, Cyr said the City’s cell phone contract averages $29,000 annually for 110 phones throughout the City. Stone asked how the number of minutes used are supervised. Cyr said that the City receives monthly statements for each City employee assigned a cell phone and that statement includes details of phone calls sent and received. The details are reviewed by the Department Head. Cyr said there have been incidents in which employees have been disciplined for using the City’s cell phone for personal use. Also, some employees will reimburse the City for personal use of the City’s cell phone. By a vote of 5-0, the Committee recommended approval to full Council. 3. Resolve, 07-241 Appropriating $19,569.74 in MDOT Funding – Bus Shelter Stone indicated that Councilor Allen asked to be contacted via telephone for this portion of the meeting. Cyr placed the call. Stone indicated there are two committees with 16 voting members each that this item went to before it reached the City of Bangor. There is a BACTS Technical Committee that advises the BACTS Policy Committee. The Technical Committee has 16 voting members, 3 of which are from the City of Bangor. Allen served on the Policy Committee for two years. Allen said it was in a study and she did not recall that it ever came up for a Policy Committee vote. Cooper said the BACTS Policy Committee voted to include the extra money for the University shelter in March of 06. He wasn’t certain if Allen was in attendance at that meeting. Allen asked the specific date. Cooper said he would need to look it up. Cooper stressed that Allen is still a member of the Public Advisory Committee of BACTS. Stone said this has been voted on by 32 individuals before coming to the Finance Committee and he didn’t think it should be held up at this level. Allen said she questioned the numbers at one point at the BACTS level in January of 2006. She thought it was also discussed in 2005. At one point, she understood the numbers to be $13,000 and at $11,000 the year before. She was surprised when it came in at $19,000. She wanted to clarify the numbers with Cooper. Cooper said the shelter proposal that McNeil and he costed to be included in the TIP was around $20,000. The exact amount wasn’t known and it seemed to be a reasonable number. Cooper was not aware of the lower numbers mentioned by Allen. Cooper said that the University was not involved in 2005. Allen said it was discussed when BACTS was housed at 1 Cumberland Place. Cooper said he wasn’t certain of the date. Cooper said the shelter discussed with Dr. Chapman was one that he wanted the City to explore and that was placed into the TIP in 2006 at an approximate cost. He again stated he wasn’t certain of the lower numbers mentioned by Allen. Gratwick said the question is: does the Committee, representing taxpayers, want to try to do it less expensively. Having heard this discussed many times, Gratwick said it seems to be a reasonable thing to do supporting BACTS, the University and the BAT system. He said he would support the shelter. Stone stated that according to an opinion by the City Solicitor that because Allen was not present, but participating via telephone, that she would not be a voting member of the Committee. Farrington agreed with Gratwick. He said he would vote in favor of the shelter. D’Errico said he would support the shelter. He made his decision at the last Council meeting when it was discussed at length and staff provided their recommendation. Hawes said she would support this again, as she has done at prior meetings. Blanchette said she is upset because of discussions referring to damaging the City’s relationship with the University of Maine. She doesn’t believe that is the case. As a taxpayer and as an elected official of Bangor, she has an obligation to question what she perceives to be excessive expenses that are coming out of the University. She questioned where the 32 individuals who voted for the project come from. She stated she would not support the bus shelter. She referred to exaggerated estimates from the City for the Dakin Pool renovations that were blown out of proportion as well as the Bangor Muni storage shed issue. People blame state government for being out of control but it takes people to stand and vote things down. Blanchette firmly stated that she would not support the shelter. Allen agreed and she will not support the shelter. Allen asked if the University needs the City to put this item through. Cyr said there is no University representation on any of the involved committees. Allen asked again if the University needs the City to receive the money for the shelter. Stone said that Bangor has been designated as an urbanized area and is the operator of the BAT, so it has become the focal point. Stone views Bangor as a clearinghouse. Allen asked about the other communities that need shelters. They have a right to approve these shelters on their own. Stone said the Technical Committee decides what they want to put forward for proposals for bus shelters. Each community is represented on the Technical Committee. It then goes to the Planning Committee where the final vote is taken. Because the City has three members on the Technical and the Planning Committees, Bangor does vote on other community’s requests for shelters. Barrett said that all monies come through a grant to the City of Bangor. For example, if Hampden wanted a shelter the same process as is being undertaken for the University shelter would apply. Allen asked if $37,000 is the correct dollar amount for construction of the University shelter. Stone said it is $19,000 but the University’s in-kind amount is additional. Allen said she would not support this as it stands. Blanchette said if everybody continues to support the exaggerated expenses, whether they are federal, state or local dollars, then the size and cost of government operation would never decrease. Every project starts with a first step. She knows she is fighting a losing battle but she wanted to make a statement. The University of Maine System is the largest state government expense. She questions $15,000 for the University’s land site development for the shelter. Federal dollars are not free. Allen asked Farrar about a shelter constructed in Bangor two years ago and there were definite costs at that time. She asked if it exceeded $20,000. Cyr indicated that in her memo to the committee a 5 x 8 ft. shelter, which is the most common size, would run about $6,500 or $165/sq. ft. The reason that the University shelter is so much larger is that it is one of the largest pick up points in the BAT system. So, it is a 10 x 20 ft. shelter at $19,000, which equals $97.85 per square foot. Allen asked how the costs have escalated to $30,000. Cyr said that number is looking at the $19,000, which is the out of pocket costs for the shelter itself. The local match by the University is via in-kind services and out of pocket costs. Their out of pocket costs estimated $4,600 and the remaining costs are in-kind for time and labor. Responding to Allen, Cyr said there is no current shelter so electrical needs to be put in place. Allen asked how this differs from the City of Bangor and Cyr it is not different. The City does the same for a 5 x 8 ft. shelter for under $20,000. Stone indicated a show of four hands in the affirmative to recommend passage and one in opposition. A motion was made and seconded to recommend passage by a 4-1 vote. Allen, via phone, listened to, participated in the discussion, and indicated she would vote against it. 4. Discussion of Club Fuzion Heitmann indicated that at the last Council meeting, the renewal of a special amusement permit for Club Fuzion was on the agenda. There were neighbors who attended the meeting to speak against it; i.e. noise, profanities, bottle throwing. By coincidence, the application for renewal of the liquor license was being circulated for signatures by Council. The practice has been on liquor license renewals is to circulate the paperwork at Council meetings for signatures, as a matter of convenience. Generally, the applicants for special amusement permits do not attend the Council meeting, as there is normally no issues. In this instance, one of the applicants inquired at the City Clerk’s Office if he should attend the Council meeting and was told no, not being aware of any potential issues. The neighbors, however, did attend and expressed concerns. The item was then continued to the next Council meeting. Heitmann spoke with Eileen Hodges of Franklin Place. Along with the City Clerk and Deputy Clerk, he also spoke with the Huntley’s, owners of Fuzion. The Huntley’s have spoken with some residents at Franklin Place. Police Chief Gastia also provided information on police calls to the area. There are no code issues with this Club. Eileen Hodges of Franklin Place addressed the Committee. She noted that two additional boards in their fencing have been kicked in. On Friday night, she called the Police Department at 12:30 am due to individuals arguing on the street but the individuals left before the police officers arrived. She also mentioned that Club Gemini is now opened on Sunday evenings and it is becoming noisy. Despite improvements made to abate noise, Gemini’s doors are left open. Connie Russell of Franklin Place spoke. She said it would seem that there should be some way to make an ordinance to control noise. Regarding Club Fuzion, it operated for a while very efficiently with good security. She asked if there could be an ordinance or laws governing security to have the business itself responsible for keeping the noise level down. Jack Collins, President of the Board of Directors at Franklin Place, addressed the group. Both Russell and Collins spoke of a Franklin Place resident who left the building due to the Fuzion noise levels. He cited incidents with dates that were recorded with the Police Department. He spoke of some that may not have been recorded with the Police Department. Collins spoke of the broken fence problems and displaced trash barrels. Collins stressed that Franklin Place is not anti-business but does want to find a solution. Russell Good (not certain of spelling) from Franklin Place spoke. He indicated that what was once a sporadic occurrence with noise problems has now progressed. According to Bangor Police Department records, Good said there have been 18 calls to this area since January 1, 2007. He cited a disturbance the preceding Saturday evening with 40 individual crowding Franklin Street with 7-8 cruisers responded. Earplugs are required for a decent night’s sleep. Scott Levy of Penobscot Theater spoke. He is a resident of Bangor. He said that the comments offered this evening point to the fact that these residents are living in a urban neighborhood. He commended Club Fuzion on being a late night establishment open to all sorts of individuals from all different backgrounds. Patrons and actors of the Theater frequent the establishment. Levy said he is not convinced that all of the noise is coming from Fuzion patrons. Once people leave any establishment, he isn’t certain that it is the responsibility of the establishment. Tony Daller of Franklin Place agreed with the previously stated comments. When he has called the police department, he has been impressed that responses have been immediate. David Case from Franklin Place said it is the noise between midnight and 2-3 a.m. that is the problem. Case said the establishment is serving more liquor than individuals should be receiving. Sidney Epstein of Franklin Place spoke. Downtown Bangor’s future is leaning toward second floor apartments so this is a problem that will arise in the future as well as now. A business needs to be a decent establish and a credit to the community. Prior to leaving the meeting, Hawes stated that it is very important to have these open meetings and that it is also important that individuals who chose to live downtown can do so, sleep in their beds, and be able to enjoy their homes. The meetings with Gemini worked well. It may need to be reviewed again. Parameters have to be set for Fuzion to follow; i.e. an ordinance regarding hours of operation or security. It needs to be pursued for the sake of the residents. Catherine Collins of Franklin Place addressed the Committee. Living in Philadelphia and knows about urban life. Management is crucial to patrons of any establishment. Dale Wilkes moved here from Atlanta. She was impressed with Franklin Place. She has owned an eating establishment, businesses and is in real estate and understands the value of property and does not want to stop anyone’s business, but quality of life means a lot. A business has a responsibility after midnight. Scott and Kimberly Huntley addressed the group. They reside in Orrington and owns Club Fuzion. He wants to work with the Franklin Place residents and the City. Until receiving a call from the Deputy City Clerk regarding the Council’s last meeting, Huntley had not been aware of any complaints. He stressed that he and his wife are family oriented with three small children and know what it is like to need sleep. He will do whatever he can to come to an understanding and correct the issues. Huntley referred to a meeting with the City Clerk, Deputy City Clerk, and City Solicitor last week and three issues were brought up from the last Council meeting: noise on Fridays and Saturdays from 2:30 and 3:00 a.m., beer bottles being thrown at Franklin Place, and trash outside the fence behind Franklin Place. Huntley met with Eileen Hodges following that and let her know he wants to get the situation under control. He stated that a lot of patrons are individuals who have been at other places. He attempts to provide a safe environment for individuals who have been out in the community all evening long to come to Fuzion around 1 am to dance. He has a deck in the back of the establishment. He has a sheltered smoking area. Huntley said he needs to come up with a plan to eliminate street noise. Last Saturday, Mrs. Huntley called the police because of an exceptionally large number of individuals at the Club. At 2:30 am, all of the patrons spilled out into the street. He estimated that 80-100 left this Club and approximately 40 were already in the street. He has two security individuals. He has been told that he, as an owner, has no control over the street and that his security would be at risk. Between midnight and 2:30 am, he suggested that he could put someone up on the street to monitor it and try to move people along. He asked for more legal information as to what his boundaries are as the owner. He estimated that 90% of his customers come in from Club Gemini. Mrs. Huntley spoke about her husband’s employment at Club Karma, the previous owner of the building, which now houses Fuzion. The bulk of the current businesses starts around midnight. Fuzion minimizes its serving of alcohol. The establishment shuts off the patrons at 1:55 am. They turn people away constantly. She stated that it’s not a crime to talk loudly. The City should be proud of Fuzion. The building’s landlord referred to prior lounges at this location. He said the Huntley’s run a clean ship. He wants to derive an income from the building and, if anything inhibits it, he wants to take care of it in a manner that’s helpful. Chief Gastia said the number of incidents responded to at Club Fuzion have been relatively few in number. He didn’t want to downplay it. The numbers may be low because residents hesitate to call. He said the Police Department is there to hear calls about issues and want to respond. He told Huntley that she did the right thing to call the Department last Saturday. The Department prefers to be proactive and not reactive. Regarding the recent Saturday evening incident, Gastia said it is not the business’ responsibility to respond to people spilling out into the street. These incidents increase with the warmer weather. The hours of 1- 2:30 am seem to be the hours with troublesome incidents. It is a busy time for the Department and they respond as soon as possible. Gastia feels there are some things that could be done but it will take some discussions with all involved. He indicated that officers have been assigned to the area recently to observe and the Department concurs there is a problem and needs to be addressed. Stone asked the status of Fuzion’s liquor license. There is a current license that expires today, Huntley said. He will be going to Augusta to pick up a temporary license through Monday, the next Council meeting date. The special amusement permit is also on the Council’s next meeting agenda. Huntley said with the moving of the Police Station now in a different location Franklin Place isn’t a ‘thru street’ for them traveling back to Court Street. He felt it was a major deterrent for incidents. Stone said he would like a meeting with the City Solicitor, Police Chief, Councilors Hawes, Blanchette and D’Errico and representatives from Franklin Place. Allen asked about ‘neighborhood watch’ signs to provide a visual signal. Stone asked her to send her notes to the City Solicitor or one of the Councilors to be included at a meeting. Barrett was asked to set up a Workshop prior to the next Council meeting to review the outcome of the proposed meeting. Barrett indicated that it would have to be a public meeting with public notice. Responding to Stone, Heitmann said if two council members attended it would not need to be a public meeting as long as it is not a majority of a specific committee. Blanchette is not available leaving Hawes and D’Errico. Epstein indicated that the problem is not being solved. People have rights to a quality of life. Heitmann said tonight’s purpose was to have a discussion at a committee meeting level. The Council will be voting next Monday, at its regularly scheduled meeting. The final answer comes at that time. Blanchette asked if Gemini could be asked to keep their doors closed. Heitmann has mentioned it to one of the Brann brothers. Heitmann said he would meet again with Mr. Brann. At the time Gemini was an issue, the City passed an ordinance governing the parking lot of Abbott Square, lower and upper, so that between 10 pm and 6 am, individuals cannot remain in the parking lot. Business owners do not have a right to tell people what to do who are congregating on sidewalks and streets. Responding to Blanchette, Heitmann said that lower Abbott Square abuts Franklin Place. She asked if the parking lot could be closed. Heitmann said because residents at the Harlow Street School rent spaces in the lot. He felt it is something that should be reviewed and perhaps have it regulated. Blanchette suggested a window placard and suggested Sally Bates become involved. Stone asked for a revised ordinance defining what is a bar and what is a restaurant and how are existing facilities handled. Gratwick will be out of town next Monday. His ultimate priority is to make a good quality of life for downtown residents. He strongly feels that appropriate sleep is appropriate for good public health. He suggested that the Club is fine but may be in a wrong location. He would be against the amusement permit. 5. Review of Racino Fund This item was tabled. 6. Executive Session – Hardship Abatement – 36 MRSA Section 841(2) A motion was made and seconded to go into Executive Session. 7. Open Session – Hardship Abatement - Decision A motion was made and seconded to approve staff’s recommendation.