HomeMy WebLinkAbout1985-03-08 Finance Committee MinutesFinance Committee
March 8, 1985 @ 8:00 a.m.
Minutes
Present: Councilor Jim Cox, Chairman
Councilor John McCarthy
John Flynn, City Manager
Ted Jellison, Finance Director
John Frawley, City Engineer
Rod McKay, Community Development Director
Capt. Frank Foss, Penobscot Bay Lines
Councilor John Gass was not able to attend the meeting.
1. Council Order 85-135 - Acguistion of 150 Front Street and
85-139 - Lease Agreement With Penobscot Bay Lines.
The City Engineer related the fact that he had discussed
the possible acquisition of the property at 150 Front Street
with owner, Mr. Leonard Minsky, who indicated that he had a
buyer, but would be willing to delay selling the property until
the City decided if it wished to purchase it instead. He
also informed the Committee the need for Capt. Frank Foss of
Penobscot Bay Lines to have an immediate decision as to whether
we would be able to accommodate the MV Mt. Katandin this summer.
The City Engineer indicated that the only possible location
would be the Superior Paper property, which would require
demolition of the building. The State Bureau of Parks and Rec-
reation has indicated that the use of the Municipal Dock could
not be allowed during the entire summer, since it would interfere
with the general public use. Capt. Foss explained his desire
for hopefully atwenty year lease, and that he would be willing
to make yearly payments. He was not in favor of considering
that the City should get a percentage of his gross revenue.
Councilor McCarthy suggested possibly an additional charge
could be made for parking, which would go to the City. Rod
McKay indicated that since the project would create approxi-
mately 22 part-time and 3 full-time jobs, it was possible that
Community Development funds might be used to defray up to
$100,000. of the cost of acquisition and demolition, the total
cost of which is estimated at $200,000. The Committee voted
to support the proposed Council Orders.
2. City Contribution to Penobscot Valley Solid Waste Task Force.
The City Engineer requested that the Committee authorize
the payment of the balance of the City's commitment to the
PVSTF, amounting to $7,821.50. He pointed out that the Committee
has made considerable progress toward the completion of the
proposed agreement with PERC, which was generally approved by
the Board of Directors on the previous day. He also pointed out
that our present tipping fee with SERF has been reduced from
$16.00% to $14.00, primarily as a result of the pending agree-
ment with PERE, which is already saving u n the neighborhood
of $60,000. per year. "T, a eventualVagreemenKmay-save up to
$6.00 per ton, or up to $180,000. per year, indicating our
total expenditure in excess of $90,000. has been worthwhile.
He also indicated that the existing Task Force budget is almost
depleted, and all of the other Committee communities have -
previously paid heir commitment. The Committe voted to
authorize the expenditure, and the City Manager indicated that
he would write to the City Manager of Brewer, the Task Force
Chairman, to indicate that a firm budget would have to be
provided before any further monetary commitments are made by
the City.
3. Springer Road and Sewer.
The City Engineer reported a meeting which was held with
representatives of Shaw's Market and Springer Realty relative
to the pending construction of Springer Road, extending east
from Hogan Road, on the north side Interstate Highway I-95 to
serve the proposed Shaw's Market. He related that the roadway
could be c nstructed much more economically, and without any
conflicts in construction or schedule, if it were combined with
the construction of the supermarket site work. The road and
sewer construction is estimated at approximately $116,000.,
whereas the total site work is close to $700,000. While Shaw's
is n favor of that arrangement, it is their policy to construct
their facilities using a preferred bidders list, which would
normally be in conflict with the City policy.
'The City Manager did not agree with the approach as
suggested by the City. Engineer and suggested_ that the City
staff should get together to arrive at a recommendation to be
presented to. the .Finance Committee and the City Council. The
"'Community Development Directorsuggestedthat.pemhays some
unique arrangements 'could be made through the Community
'Development department for a loan or grant agreement with
Shaws which might help to solve part of the problem. -The
staff will return to the Committee and the Councilwith an
_. appropriate_ recommendation. - -'
Adjourned at 9:20 am. :,
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