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HomeMy WebLinkAbout1998-04-06 Finance Committee MinutesFinance Committee Meeting Minutes April 6,1998 Councilors Attending: Jim Tyler, Joe Baldacci, David Leen, Michael Crowley Staff Amending: Edward Barrett, Ron Heller, Dave Little, Erik Stampfel, Norm Ramona, Dan Wellington, Mary -Amro Chalila, Dale Therlault, Brian Forms, Alan Koc ds, Dave Pellegrino, Jim Ring, Randy Mace, Debbie Cyr Others Attending: Mr. Paul, Mrs. Beckwith, Frank Jordan, Royce Day, Somme Saucier, Cbmael7 Meeting convened 9 5:02 p.m. 1. Executive Session- Poverty Abatement Abatement denied. Workout Agreement set W. 2. Executive Session- Request for Discharge of General Assistance Lien Discharge of Lien against proms" owned by Mrs. Beckwith was granted. 3. Executive Session - Legal Issue 4. School Committee Request far a BondIssue Alan Kochis explained b the Committee that at Bangor High School there are several shop new and shop has been discontinued ova the last several years as more and more classes are moved to the vocational school. High School enrollment is approacbmg 1,400 students, which is almost capacity. The need for more classroom space exists. Staff looked at the possibility of adding on, but the cost would be approximately $1 million. This shop arras were than looked at for converting into class space at a cost of approxhuately$350,000. Flas item will be on the agenda for first reading on Monday, April 13, then back to the Finance Committee and than a public hearing before the Commit. 5. Bids: a Madole Rehabilitation (Public ServiceslSewer Division) G & G Concrete Waterproofing of Oakland ($6,00048,000 estimate) This itera is for Pressure grouting thejoints in some ofthe City's manholes. The recommendation is m go with G&G Concrete Waterproofing, submitting the lowest bid at $40 per linear foot ofsealaut. Approved. b. Test Boring services (brightening) Eastman Drilling of Exeter ($15,000 estimate) and h1aine Test Borings of Brewer ($17500 estimate) The rewmmendazion is to award to Eastman Drilling ofExetec, the low bidder. Approved. C. Traffic Paint(Aicpord Prestige Sealer Products ofAshlaM ($12,938.50) The recommendation is to purchase from Prestige Sealer Products of Ashland, the low bidder. Approved. 6. Authorizing the Motor Pool Director to Purchase Three Detective Cars Four police case would be restored and three program cars would be purchased for the same amount of money that would be paid for fora new patrol was. Staff purchased one program car to be rehabbed to make sure this; worked out before committing to all four vehicles. Brandy Mace feels it worked out very well. The price on the rehab for just one vehicle was $14,500, because it had been in an accidat. The next duce that will be sent out should be approximately $12,000, whereas new vehicle cost is$24,000. Three program cars with between 20,000.25,000 miles eachcould be purchased for $36,000. Approved ]. Award of Concession Contract at Golf Course The question regarding the City's policy on smoking in the Golf Course Club House and Snack Bar arose a[ the last City Council Mating. The previous lessee of the restaurant at the golf course designated one non-smoking bible within the facility and allowed cigar smoking only outside the buildin& The new lessee Mr. Jordan, planned on using this same policy. The policy does comply with state sonatas. Councilor Leen asked if this policy was woman raw the RFP with Mr.JoNan. Dale doesn't think that this was written may the RFP. Pd Barren feels that there was requiremat for some regulations to spell out what the State law standard of`Wasombly calculated"mart. There has never beaa rule adopted in clarify who the precise requirements are. Under eaten cbcumstancea, the approach used there in the past meets the state law. Councilor Crowley asked Mr. Jordan what impact he felt keeping the status quo in piece is or any thoughts he may have making changes. Mr. Jordan explained that he ha spoken to smokers and non-smokers about this issue. Awn -smoky didn't feel it had been a problem. Mr. Jordan feels if it becomes completely rummuming, it will hent the business and of it. Mr. Crowley asked as the contract is written now, if Mr. Jordan decides a year from now that he needs two obles that are non-nooking, is that his decision? Solicitor Stumpfei stated yes. Mr. Jordan explanted that if there is a need for van -smoking, if he is asked for a non-smoking Numamm4 he will provide it. Councilor Tyler explained that Councilor Aube raised this issue and spoke with Jim today because he was unable to be at the meeting. Jim indicated N Mike that if at all possible he would give him an opportunity to give his opinion with respect to this issue. Ed Barrett explained that this item does have to go back on Ne Council Agenda Mr. Jordan is looking a the first of May as an opening date. Councilor Tyler expressed] his concern that an REP was sent out and under one set of rales or lack thereof, Mr. Jordan, in goad f 'N, responded assuming that he would be able to operate under the same circumstances as the prior operator and now the question has arisen if that is so. Jun would like the record to indicate than there are 4 members present The Committee approved recommendation to Council. 8. Workout Agreement- MatwN Lion (Shea) Mr. Shea cmrerrly bas outstanding sewer charges in the meant of $2,300. There has hem problems with Mr. Shea in the past W he has not complied with other sgreemenis and Code Enforcement had another issue with biro. The City does have some vendor checks that me being held back from Mr. Shea They have net been cashed yet, until we are sure that the workout agreement is acceptable. Mr. Shea his requested that future vendor checks be taken and applied against his debt. Reluctantly, Nom's recommendation is that the workout alinement be done with extra conditions. One being fiat Mr. Shea specifically agrees that those vendor checks will be taken and that he will finish the clean up as ordered by the court. This is consistent with the policy of making people who want workout agreements comply with obligations to the City. Approved as recommended. 9. Workout Agtseenent- Manned Lim(Leonmd) Bangor Savings Bank box paid the outstanding sewer charges m full on this property. Mr. Leonard still has not paid his second half of the 1998 taxes, which are a month overdue. The request is for a municipal quitclaim deed to JefGey & Deborah Lecnmd. Committee approved. I0. Workout Agreement- Matured Lim (Hughes) Ms. Hughes indicated to John Rice at the Treating Plant that it would take almost four years to pay this off. Workout agreements are net done for more Nan 12 months ata time. Ms. Hughes had a previous workout agreement with the City in July 1996 for sewer charges and a[ that time her debt was $866.62. She did not comply with the requhementsoftheagreement Q ndysbeisinarrmrsinthea roto£$1,116.97. She can pay no mom than$25 per month. She also owes $1,074.22 for the second half of F 98 property Was Staffrecommendatiou is that Ms. Hughes be contacted and have her come Or Approved recomrnendation. 11. Workout Agreement- Matured Lien (Sprout) Mr. Sproul owes $10,43/.95 formanued nixes as well as W in lien and 98 nixes. He would like to enter into a workout agreement. He has left $954.46 to be held, pending approval. He indicated that he couldprobabiypay this in a 12 month period and keep his 99'spaid. Dave Little's recommerWation is to enter term Ne agreement Approved. 12. Workout Agreement -Manned Lien (Costa ) Mr. Costain owes $1,125.92 as a result ofmatured 95 and %tux lien M well w 9] and 98 tares. Mr. Costain indicated he could pay $25.00 per weak. Be came in to pay the first $25 pending approval. Staff recommends ruining into the agreement. Approved. 13. Municipal Quitclaim Deed - (Barrelling) Norwest Mortgage has requested a municipal quitclaim deed for this property. They request that the deed be to the owner. The outstanding sewn charges have been paid ($891.54). There are no outstanding property taxes. Staff recommends deeding property back to the owner. Approved. l4. Municipal Quitclaim Dead -((roman) There is a workout agreement with the City and else a mortgage with the City. Both sewer and property taxes have matured. Mr. Gomm is selling this property, witha closing time set for April l]. At that time, all the outstanding charges ofapproxinamely $11,000 will be paid. There are no code issues with the property. Staff reconmendsa council order stating that the City will convey the property back to him if there is a closing. Approved. 15. Municipal Quitclaim Deed - (Goodwin) A sewer lien on this property has matured The mortgage holder was not informed of the lien, as restudied by statute. The bad has since paid the amount of the lien. The mortgage holder is asking that the property be conveyed back to the owner. Norm Heilman explained thffi eminently this would not happen because they have other obligations to the City. However, because the mortgage holder was not notified, it is recommended Nat the City agree N execute the deed in Nis case. Approved. 16. Municipal Quitclaim Mod -(Husek) Mr. Husek came before the committee a few weeks ago on some judgements and the Committee's recormnendetion was to waive the hueres on thosejudgements. Cameras personal property and ora was a lead use violation. Since that decision, Mr. Husek has found a mortgage tympany that will refinance his property. They have seat a check for $9,045.04 re pay off those two judgements as well as the 96 and 97 tax lien and 98 nixes. There is no sewer or code violations on the property and if payment is accepted for the 96 her, Dave Little will work with Norm Heitmann to get the quitclaim process through as Mr. Husek wants to have the property quitclaimed back to him directly but it is assessed to CMI incorporated. Approved recommendation. 17. Review of Management[.ettar from Ruayoa, Kersteeq Ouellette Ron Heller explained different aspects of me management letter Son the City auditors. There are duce levels that they deal with Two levels are reportable conditions and the tirdlevelisotercomments. The first level ofrsportable conditions is material weakness. This is the most serious ofthe commm[s made. The one material weakness cited was the School Department's accounting system and their less tan optimal use of the general ledge. Ed Barnett explained that to School Department has its own accounting system that battles eu of the detail work forte school department. The City exercises control a amuch more general level through the accounting system and general ledger and we don't get into all of the specifics that they do. Most of the difficulties are in how the system is interfaced with the City's tracking at a more general level. It is the school department's intention to adopt all the recommendations contained into management letter. An issue bar Ron is cash and the segregation of cash. He feels that cash should not be segregated. Tracking this would be difficult The cash is allocated to different funds, it can't be allocated within the specific funds aed it would be cumbersome to dm thus. Ed explained that by having control over cash out and cash in, the City has overall Oral control. Mast of the problems are within subsystems of an accounting system. How it is allocated and where it goes within the accounting system in the school department is not as crucial. What is cmcial is that the School Department sort doing some of this in a more timely fashion so it does not delay the City, which has been a problem in the pest. It has taker longer for them to reconcile all of thew subsidiary ledgers and all of their accounting derail. One of the reasons tat the School Department his their own system is that due sate requires that School Departments report in a certain formes. There were two conditions that were noted as nonmaterial weaknesses. One is the extra cash drawer in Treasury. Debbie Cyr pointed out that in most cities or tawre where thus practice happens, it is considered aamterial weakness; but, because of the size of the City and tlhe history of the drawer (neve out of balance by more than adollar), the auditors do not consider it that serious. Dave Little explained that the current system is two cumbersome for an individual to sign out, take the cash drawer, all their work, log out of the system and someone else to sit down, log in, wait on four or five customers during bunch how and then sign our. As much as possible each employee stays on then own cash drawer, bat nomally there is one dmwuth t 2 to 3 people could be on. If Pentamarma were installed and up and wmwg the way it is set up, a cash drawer could be shared but each individual transaction would be named by whoever logged in. Tbat person would have to log on the server, which would namow this problem down. Pd explained that the primary accounting system was changed about fouryears W. Asa pintofthefollowupmchengingthecorepmg ,thereereanum aofsubsidimy systems that ore also going to be replaced. The biggest problem at the moment is the tax billing and collections systems. This has held tap the completion of transition because there have been difficulties with the program from Personation. They leave been given deadline ofAaw by which time the City wars it proven that the system is fixed. Almof the commears made in the management letter refer to the old systems that the City operated under. The second non -material condition concerns the relationship with the Water District The fact that bills are payable at several location, that City assets are not always under the City's control. The City has been engaged in conversations with the District about voning out some ofthoseproblems. Smffwilltrytomhdmizetheseproblems. The City's position, m this point, is that it is a fairly convenient system for Bangor tax payers andto the extent that it can be made to work better, staff will and ifnot, at some point, there my need to be a change. In closing, there were minor comments Segregation of duties in the Treasurer's Office: It is a small officethat can get very busy at times and that is when this becomes an issue. houcst and Penalties: To the went that the system is capable, apolicy will be mutilated to charge interest on receivables, citywide. Computer Compatbility: The SratETechdcal Committer will have a report shortly m the full Committee outlining recommendations. Diaster Recovery Plan: A backup far systems and procedures needs to be implemented. Crime and Dishonesty Policy: With the management letter and this resporse, the City will be purchasing such coverage as an add on to the existing policies. With no further business to discuss, the meeting adjourned at 6:30 pm