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HomeMy WebLinkAbout1992-01-06 Finance Committee MinutesPinmnce Committee Jamary 6, 1992 at 5:00 p.m. MIfNfPS Femorali Jots Bragg, Jane Sail, Pill Cotmn, M:rwani Stere, Garry Baldacci Anrhew Clarire, representing the Wmks Ndone, premmtetl a variety of information to The city caucil. After move discussion, the Finance Caadttee requambei th staff return to tie Finance Caemittee with a draft policy Much wtmid wtlfne a percentage local labor reg iremmt on valor construction contrseca. 0he issues to be covered in this draft policy are: tie trigger, i.e., •nexpi•quent rate for emmple, Mnich wwltl activate Tie provisiag the peroa Cage of local latrs to be required; thm dollar mise of to projects to be Cewered by tie policy; eel tie de efinition of what Cmtit tar; local lahor. Ma item will return to tie Pinence Camdttee at its next meeting. 2. Maine State vet nment Syst /social Security for -time sesswal or 1 Qrary D®lrnere Join ,•ria: ____ ani Bab Farrar briefed the Finmce Committee ittee w the throe eptime offeei by irate State Fetirenaent for the orveage of part-time, sumCnel aml teiporary (par's) eiplay ae. 'de first option nxold corer all pw's arclei Maine State. The second optive would cover all Paf's Me were hired prior to Dir 31, 1991 molar Maine State, with eiployess comalml by Social Security Mo one hicol after that data: tie third option would cove all M's who ware vested pn tie Maine State n»t:.ew..t SysT as of DeceDDPx 31, 1991 by Mine Etate, with reaLdrg aipley mn ouvene3 by Social Sonority. rn adlitlw, the City could arse to not have any M's renewed by Maine State. 99e staff , ..eat:... ware that the option acontinuing M's Mm were vememi in the Maine State Syston ire Ma:.e State le adopted, uhile all new PST's or M's vale vera not vested a be comaxi by Social Security. ']hie approach could, in effect, protect ay aTloyee Me was curtantly vested in Mabe State from lcospng the heiefit of such w ating. TM ri m ce Camittse approval this option and ravmeolal it to the full Femcil. 3. C it Qrdsrnktborlz= the CitV Munmer to hyly for an] Accent Mte Gant NaleQmbinal P et Overflow Plan The city bas been notified that the state of Macre fs prepared to aawd the city $362,500 in grant funds for our 6 monitoring morvey. '@e total coat of this suraey is eatimatel to le $1,450,000. Staff tequ that the Finance Committee xecuumad to the full Corroon approval of a grant application is -tion and the v ceptor .e of these grant funds. Ppnmre Cnmittee approved this request unanimously. 4. DisAwslan of for ci Wow , Jola Quart..,,.o briefed tic Finance �ttaa on various cptiwa Much the City hes for Tlie abdmietmtian of its self-inmurai worms' compensation program. TTie City has bean self-inwvaed for many yearn: towener, the City taxied an excess policy to cover vary large claire t=ough 1988. At that time, the cost of excess camum9a Loraysad d<avarfoaiiy, and the decimior was mmja to drop the erees coverage and bs>ae completely self-ins¢dnd eaself-saa:..:.trated. Tie City tea lf -]- with the resignation of Erin cauvin, the imlividal Mc had bean cpenating Use City's self-fnsaras workers' omrypeneatfo ptog an, the City is in a position wham it mut decide hos it is to operate this program in the future. The following cptims were outlines: a. iitre an in-lune claims maziager. This positim is cuaently, froevn• and it is staff's recommendation that it not be filled at this time pending a full analysis of all of the option which the City has for its vamrkem' m�pamatiw pmgan. In adiition, filling the position at this tine may not be aprzoprfate given Hu uncertainty of £utas State funding for muu:ipal ransoms sharing and aid to education. b. Contracted third party arLiinistration by an outside firm. Jahn Quorta a... has contacted a comber of potv..;ai third party �tors for our self- raumrce edaa annual Ore forml tea[r:us was leteivei fro The Umlam Wap. preyw quotas an coal war of 675,500 for gnLfic nt expetration, and loss %withthe c services. Tills of opal is a Itsi own pxx exps: in oapaclson with the City's re�a coat of perntbg its awn Pro9ron in-tcuae. c. third party working I -hmwe e. In a Union to the proposal firms The con lap Coporation, Johnn.a.+a. received a proposal from Charles Mitchell for pmvldbg third party-ednuustratiw services through spending several days each _k at City Hall working with aur clahns and our zenegers. 7 cost of this proposal was $30,000 per year or amm.mweiy $600 per week. d. Joining the self-irim¢ed risk pool of imine Municipal Associatim. JO Quartararo has also contactai the hrine Mnicipal Aacocfatirn regarding putmntial City membership fn the iRkl'e self-ineurance pool. The giro's ba rarce pool is an association of a number of vadcipalities around the State Mc pool their self-l.reinranre risk in workeral capeneatiw and use ]RAA as a plan adminps- tritest. A risk pool allows a degree of sharing of risk ansig participating members, m that should ore member have a bad year, good year erp Tierce of other malsrs can offset it. p has agreed to analyze the City's payroll to detennrie Mat time City's aomal pr®iim for psrticipatial would be. Staff xavmedetl to the Finance Camitme that addi.tioial steles be taken w analyze all of time various ptiou am a lahle for hanNling aur antlers' cvgeneation program. 3n p+ni ular, staff xecainenrle-] that Charles eiitchell be hired at $600 per week during this inteurm period to handle our sonars' mipeivatiev claire until such time as a pe veaenm. rsanertlatfon is avallable to the Firanta Committee. Staff also that we pro i with analyzing a prolnsal from the A to detemdne Mat the city's anumsl trienniums would be to join tat risk pool. The Finance Camittne approved this approach. in a kiition, John Quartararo reported that the Maine Insurance CAmdsalm has provided the City with cantingemit approval of its cwtimind self-iraurenre progrmn• although the State has eaqressnd some reservation abcatt the City's lerel of funding for its wwzlmrs' mopeisattw progem. sdui also reporYcd to the Finance Gmni.ttsa that the Goverment Accowting Standarl aaarh has iesuai a new acavnri� atardand which wail require the City to report its uor ers, nvpaneation lhabilities as a current liability. At the present titer the City splits this liability. That potion of the liability Milch is anticipabnd to bs paid cut within a year is carried as a sherUtem liahility on the city's halance shames. The rmafrder of the City's o tstanding liability is carrbed as a lcnm - tean debt. The effect of moving the City's log-team debt Bahl I ity icor a current liahility wail he in cksavarioat ly increases cur current liability for corkers' capvnatiw with a si»uent impact on the City's utaesensg fund -3 - ate bottau bide fn ct of this proposal could ca the •+.ero••t that Ne City raise nditiaal tea ravavwe to offset its long -taco wod , crnpe+a;atfoo liability. Staff x111 rehvn to N Ff Casaftbs xi updates of this sltuatinn as ediitiorel i+d®mtim is available. COWtBNP APP%JPAiATl@i5: Airport Pun Hslarre $ 11000,000 Auticrited Bo+als 5,750,000 Federal FAA 4,216,858 Stets 111pF 168.000 abtal $11,134,858 Staff has rerentlY updated the cmPp � ID�iaa project bad at. Ae a rEgolt of Nis reviav, a +m Wier of it pate fAmtfff which pare rot fr 1l in tte curre+d, appropriation an budget. Rhese include the following item: iPTBtl-AR]L4D IT8 t �on Altematly $ 76,000 continT"Y 537,000 aBmdral Aulding atabilisa♦:..n 300,000 food Iasuerce a +d� 290.000 1bta1 S 1,203,000 On the positive side, Na iN.cial, budWt that v adoptal mntaiplated Steffi particfpatfm at $84,000 each p far two }sure. wa have xeco y baa+ ln£orned hY tM State that dm to tie pmsa of tla remit Siete-witla transpotte lvtl that asmd Yxar f Ming for the project skald he $618,125. Ca[ cud t revisai and cvV�iva budget for the pmje is now $12,335,710. Oaelderitg all eaiatu appropciatiom and aitleipatai State ad Federal funj this is $669,727 in eases of existing apprt>priatiam. Staff ecomedcd to the Pinanre Caadttee that it aPprvvx atl xawrm+u] to the full Coucfl a c mitvent of $669,727 fr® the Airport M3 op watitg budget to vetch apprcprfations with budget. The Ff+a+ve mnaittee raised a nu h of guest regatdi+g Ne proja . In i..,i:� there pee 00oD=n Nat tie origU y approved budget did rot maim pxwisione for sore fotesea7ble ftam such as the �ity for a mud�+on contin9ereY acmunc and tM cost of batl iaenarcp ad adminiatration.�svw ItllegrLe en aiegelaar inrlicaFgl Nat tlm original budget p developed based on the $rent sulmittala presented N the FAA. SL Ne FAH d not a tN ise bud9etu mntin� funs, Ne cor � iters code tux inc1t in the gra¢ alp�. cirri+„^lY. EPA rbcs not rangnise the cost of feaa+ce of bads as an itea in Nein budget. % a result, Ni, itmi pas oleo rot included. The City Mftn ' snh Joim Qmirtimaro indlcaced that this project originally began prior to the City's daoelognmt of a new policy on budgeting for capital pJects. The nen policy specifically outline what is to be in lu in capital budgets, and specifically addresses item such as boM issuan a ani erLdnds- trative costs. Iptlex the naw policy, pr ems such as repxesentad by tho Amort Tluminl Bxpemgaw should be avoided in tis fut ue. Wb aiegelaex also iniicated that the problem with the existing � Building ones not fully utd boas at the time the project budget was pot together. n was only after the original plan ami specifications cars otaftal aM issoad that the full scope of the stability pcoblmm with the exiatirg building eas xecogxiaai. As a result, the expaidi4se of $300,000 to stabilise the existing building was not anticrpatad in the crigLml project budget. It nae also pointed out that the Construction contirrg:+auq acct m t will only be need if nae mmary. Tm ocmtfngercy is established to proving for scum fle i lity in filing with existing structures. Staff ra-ognism that there is always the opportunity for problem to be identified as � aM xwmmtmRiw of existing facilities is uMertalonr. Comcilor Stage suggested that staff be dixected m identify savings which could be implemented in the mmtmction pxoject to offset the increase in appxopriatiws. Bob Biegehaar indir ted that he felt it was isportant at this time that the Airport contLue with the PJect as pismu i. Y4ule hs Ltlicaiai that savings Wold be fraud, he also felt that many of these swigs might result in gxaater� wets in future years. a an exmple, he isdicatad that repiacmmm of the carpeting in the smoanl floor of the 0amstte 'iPmdtal would be elimtnated ftmm the project, but that the City wwdd ba required to face the cost of carpet replacement fn the tear future. deferring the carpet replacement for several years might =egalxe additional costs and could also xeault in hnconv fflce ani disrtptiw to the 9Enina1 Building at a later date. Siva such d xuption is inwitable during this cvmtwction F oje:t, Bob felt it would he amonpxiate to m the full project aM miplete it at this time. as also indicated that ths Amort vas currently in a ffmvcial position whmm it could easily uxdectalm dine pmjecta and carry tin ahlitionl coon. i@ salgestsl That xeirnest�t of Airport Jnr ted surpluses into the Terminal Buildings vas a pndart stop at this point given wr saint year's firm tial perfommce as Well as car anticipation of continued gad Performance for the next save al years. After sem acliitiwal dismission, the Finloa Cmmtttes votm9 to Mccamed to the Lail council a mvisai 1e®inal Ma msioo prvj%t appreprfstioo itcl� the anicllatsd Un=ease in Stam fu ding arca a x£93 budget appropriation from the Airport of $669,727. Camcile Sen voted ageUmt this motion. 6. lbchndral appmatua Service Cunttact-yrre atimal gob Ziegelaar briefed the Finance Cmrnittee on his proposal to acecd a contract for tecMical wrisulting aervirsa at the A[xpo[t. F)3 itdir:aTsd Mat over the post fee yeazs, the city las bacon t; the Ai in amemus ceabal that aM e bo 000tty related the me The Aixpvrt. im frdinarm that Hc.ae effo[M would be rt rek ng into the furore, ate amlt,�.ly in Ha sts .r oh z area The Airport xeeponts m Unarsith State arch las neli cl d t. Bob ngDrj .e+n also lniicated that in the past the Airport has nsulti upon the eng , th consulting of wnh overall Airport thigh. nA alter ti fian. ice, the wet of 000n so such expertise is quiet port An smilocalc approach has beau Taken ho sena projects, wain, the Airport has used local consulting O& v th w an ad-hnc basis. Here again, tin wet has often been significant. Given these -5 - mat Condemns, h . ziegelaar indicatai Hat Ire had requested that an H be issues for wyoing tc.hnical coreulttg setvicas at t Airport in tie areas of Project asci monitoring, met analysis and gorenmmtal xeg•wat . 7he invent wall be to have an individual available to the City on an on-going basis Coln could Provide thane iatuvicel services at a leer cost than our Overall engineering fiw or otter local fir a on an ad-tac Weis. W. ziegelaar fndicabal Mat Richard S. Cattelle had respomled to Uva request for Pmpoeals and had gmtad a billing rate of $50 Per hour for services pxwided. Bob indicated Mat tx. Cattelle had from time to time assisned tie Airport on admr projects in Me Past and Mat fe bad Leen pleased wiM his seances. He xecametlsi that this preEneal be acceptad by tie Ptnanne C ttee. atde was appxvwed by Use Dmaptta. 7. f eillims-Bmaor �nal Airmrt Bob ziegelaar reported to tla 6 ttee that at las become naaaaar for tte Airport to engage in noway de-icing efforts m support the .egdloa aOt of IABA for a capletely mown and i free runway for launching Heir aircraft. Tia Airport Dapvrmmt has nada aaangaente to lase a taNc trailer M Tie cast of $780 paz math Erg fax sorrtta to sfo a runway de-icing fluid. It bas Oleo made a..� ��tS to Pnuheae Exam lagan Aitpoft, at Iogan•s cwt, up to 8,000 gallons of de-icing fluid. These costa weld ) billed to tie lY$A project and full expeaas would be recovered. Firende cd mittse approval these purchases. Bob ziegelaar also advised C Finance Crrsnittee that discussions bme atsrted with im9A abort a potartial lag -tam lease =angamant for Me hanger in which May am currmtlY !awned. BM +.,ay^nisi Mat to felt that the level of possible de Mato F� its atl in Bangor nos a significant factor In its possible sire m extad lis r{xratiow here. 8. Front 0W loader Reclac�t Artlwr Smclom, the Darector of motions and Maintenace, reporomd to tha Finance CamdtGs that we tale experiences an aglae failure in our unit 350, a mhber-tired wheal ns loading losler is used during the waster fox up nit peukiel lots snw blo loading is also for sow zsno c l as a back up unit for mxmcang our Snow blower wlych is ala asst for snow mllsrt:..., omwal. During pally Snowetnnms, Mss Unit is assigned Hoe City's asoma S snow � and Operates used ed suer loads operating tla t ouram. During tin summer, Ue mut to use orimsxalY ni Ha loaner Operating at Our naval pit and also for back up use for other Colts end for movimp matertala and loading moierlala at the Bublic axrirm Yard. 7 Cost Of repairing the unIt wlth a ,vi.,: mot engine is athiated at $10,-12,000. DnEorbmnatelY. Uva is an old unit, a 1976, and Mss are nmm m otter problems associated with at. Ar[fos $COCka6 rCjDxta] to the Fixanw Cmasittee that he had contacted V iaae cmnatrucuw egniEve nt companies in the Bangor area and Mat Beauregard D.ynipmst had off a nal� lease fora loader at $675/�. T1s total most of such a lace would be $8,100, slgniflemntly less than Ue single repair coat w are currently looking at and historical arcual rRnix costs for untt 350 which num $5-10,000 pax yar. m Given the immi W tead for the mp+=.eme.r unit, the Fioanre �ttee ws requested to authorize as emergency lease for a loader from eanuega� Kguip sat at the cost of $675 Per manta. Sue Grootttee appm this 9. h Pm;12ts #200 and #203 Bb earar reporteul to the Fi Camdttee m the condition of rvbM psol s units #200 and #203. Unit 200 is a 1985 FON with 32 yard capacity that is used on our regular routes. It cvurvotly has 77,283 miles and it's chassis is d relatively good con itim. By aver, the pnc body on the vehicle is quite eon. It's cmpactimm gate is suffering frequent failures, and the rwet of the body cagartmaR is in wok omdition. U t 203 is a 1977 25 yard capacity Ford collection vehicle. It csrently bas 116,980 miles. It is aur spare wit and is used as a bacons as well as on regular Wednesday route collections and collections on holitlay waken. At the presrnt time, Motor Pool is welding a new bolt into the Packer hotly. In addptim, the vehicle ie marginal at best given its agef mileage and cmrlitSm. Pother, it is a smaller capacity unit with a low density compaction ratio. Mr. Farrar iepOrYed to the Gmmfttea that we are giuckly approachuq a peition alma it will be virtually impossible to continue with the existing level of collection services w1 iuprmwents or repu of the existing equiIzent. Mr. F=ar mtli i a comber of optima for ommaldzration. 99eae i 1 2 purchase of a caw high density wldcle to replace vehicle 203; replacing the body on unit 200; contracting cut for a spare truck; and contracting cot the entire ruttish collection function. lam. Fonar indpmted that be and lLLtms Stocks are currently evaluatL tome various optima and will be renmuug to the Fp>maa C ttee at a later data to outline tteir conclusions and recammenMttaa. This item was Presented as an infomatim item only at thio time. 10. Award of aid: The following bide wen awaNai, a. Installation of Shill eontapmont Valves. 4srdeg to Kelley ConstrvRim and EngimseriM, the low bid tor at $6,659.00. This is both a purchase and Latallatim contract for the Airport Department. b. mn33rauv Pacer (;mmator. 'Foe Finmmce Cmmittre meaNetl tie hid to the low responsive biddazf Bangor (§nmarcr Caspmyf in the mount of $5,125.00. A lower bpd submitted by Grainger, Ire. of Ibrtlmd, Moire vss dsemN rot reepmaive afros the pDoposei motor did not nest ten_ Ica rpm cpesatiml XeT+tet that ass spxpfied. Gouoilor Stone asked who would be d,etalling th¢ gueretor. � [apodal that it would w installed pry the Public Worts electrical Division. O Uor Store gmestiored wbetlor it aught be lens e�vmive to contract for the installation of this unit. Staff respon a that the utut would be installed dosing regular workitg haus, and could theafoxe be Iwdled within the existL budget of the deparment. It was recognized, lies¢, that it would be appropriate in insta,rea kiln this to at least request an alternate price for installation. C. Stainless Star Wmar lions. 55e Finance Crnmittee awarded the bid Te paclase this item for the iters ater aeatneint Plant frac ©uguex Sales Cocporatim, the low bidY.r, at $6,733.30. It should be noted that last year's pope ws $8,000 from Muco, Inc. 11. T9ie Pviarice �ttee approved the City adcpti long tlfatance service offered by MI thrcvgh Public Taly 1mmcpotat . This dtaa had hvsn tliscuseed at a pzlnr C'cmdttee Teti and hatl been tablsl with Le rgqu for vee ars........:..... The estimated weighted avata9e f@ the City of Bangor's c 121 pattern thra:gh this offering will la: $0.1467 per miamtea. Thio awltoh J 10 distmca sarvlce stvild insult in a rvLs i long diataace telep3 bill. 12. and 13. �:utiva Session The Pina:ce Camdttee also held a ttve ee Ss on worism' cmq�erisation seed l acquisition.