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HomeMy WebLinkAbout1998-05-04 Finance Committee MinutesFinance Committee Meeting Minutes May 4, 1998 at 5:00 p.m. Councilors Attending: Nchi Fareham, Dave Leen, lin Tyler, Gerry Palmer, Joe Badacci, Councilor Crowley Staff Attending: Ed Barrett, Dave Pellegrino, Ron Heller, Stan Moses Others Attending: Meeting wavered at 5:00 p.m L Bid: a. Moving and Assembling Train Station Building (Community Developmem) Modular Enterprises of Holden ($1,000) This is the building located at the vocational school. Modular Enterprises was the only responsive bidder, $3,500 to move it and $3,500 to not it together. Dave Petegaw has no reasoatobeievethattheywill not do an excellentjob. Stan Moses feels it is a good price. Councilor Tyler asked with regard to the prepared foundation, he thought is was discussed to leave the budding as portable as possible. Stan explained that the foundation will be a wnarete slab with wnwete pihars similar to what a mobile home is put on. Approved. 2. Discussion on Long Term Fuel Contract Ron Dollar explained that the City has been approached by Fiaova Financial and Dead ]liver Coronary to enter into a longer term had purchase contract for between ] and 10 years. The deal works because Fumva is able to use the difference between then woof fiords and the City's own to sarin "spread" inwme off the transaction. The question that staff has is that this is a radical departure from anything done before with fuel wmracts. Typically the City goes for one year. Dave Pellegrino explained that no really the City does an annual bid for fuel and the City of Brewer's fire) also. Approximately 1 million gallons is purchased. Staff is doing the updates now and there is over 800,000 gallons of number two and the rest of it is gasoline and diesel. Typically them are two to three bids from Webber, frsdn& C.N. Brown and Larger distributors. The last three years there has been of Ted prim. The fust two years was with Irvin& giving a fury Ted price for the number two fuel oil by going min the futures market and buying a lot of bambo a, usually about 12. This year the Ted price was 650. Staff feels that normally is a good way to do it Ron Heller explained that one of the issues about this is that they are not guaranteeing any prices. The City would be subject to control pricing. Dave commented that the pricing structure would be a little dff'erent rather than the Opus average for Bangor they would be using the New York price which is the theoretically price that the dealers pay for the fuel. They are also looking for a nickel profit as we0. Committee rejected proposal. 3. Council Resolve 98-187 Accepting and Appropriating the Contribution from Calcining Dairy for the purchase ofTmes Following this winter's ice norm, Oakhurst Dairy initiated a statewide effort to designate a porton of the sale price of then milk for the purchase of replacement trees th the communities which experienced ice storm damage. The City has received a check for $5,000 from Oakhurst. There is also$1,000 from Bangor Daily that was accepted last time, which gives the City $6,000. Approved. 4.Council Resolve 98-189 Making an Appropriation of Certain Unanticipated Revenues to the General Fund's Improvement Rceerve-PERC performance Credits and Motor Truck and Transport Settlement. Councilor Tyler excused himself from discussion of this issue. Ed Barmadeplainedthazit has been the City's normal practice to take the PERC rebate and put it into the improvement reserve. That money effectively gets used as a way to cover some of the smaller capital needs and capital maintenance needs without using direct but funds to do that. The Motor Track and Transport settlement is armally auto excise wRwtiom. The City will ead up over budget on the revenue side, for auto excise collecrioos so staff would like to also take that amount to put into the improvement reserve. By putting these two amounts ban the improvement reserve, that gives enough money to fund everything recommended in next year's budget from that source, plus leaves enough that ifthere is no more money in that reserve there is still enough for the year after. It helps keep the tax rate down. Approved recommendation to Cull Council. 5. Council Resolve 98-190 Appropriating Funds Received from the State of Maine for the Provision of Emergency Food Vouchers. Following the ice stoma, the State of Maine estabLshed an Emergency Food Vouch" program to assist citvevs in need. It was provided through the General Assistance Program operated by mumcipaG6es. Under this program, the expenditures for the City of Bangor totaled $15,257.19 and the Stam reimbursement for these expenditures has been received. Approved. 6. Request to Purchase City Property -Carroll Street (continued from lest meeting) Norm Hermann explained that after speaking with Tun Ring, than conclusion is to recommerW agaimt the purchase. Normdoeso'tseemy,&jectiontothemusingthe property. It is a pretty big tractoflend and it is premature for the City to predict what might be done with that property and premature to start selling off bas and pieces of it. The recommendation is if the Deals]as ssk to continue using the property, m enter into a lease agrcement with the Desbdes for plaiting the garden they went to plain. Norm will bring back a lease the Committce can review. 7. Waiver of Tax Um -171 Holiday Park This is an abandoned trailer ta Holiday Pak and the park owners went through the abandoned property statute. There were mortgage holders who also gave up their interest Intheproperty. There are matured kms ontheproperty, and thetrailerparkisaskig for the City to let go of the natured liens. The Glenburn Fire Depattmmt wants to rake the property for burning. Bill Masters from Code will be viewing the property tomorrow. Staff's advice is that the property is not worth anything and that the City go ahead and do this. Ordinarily the mortgage holder would be given an opportunity to come 4 but they have already relmsed their interest Approved raommendation. 8. Paymemof Tax Lim- 64 Meadowsmok Road Oct only) There is a request from Judith Cooper to accept payment in full for outstanding taxm on the above property. There is aurently a 96 matured lint as well as a 97 but lint and 98 taxes. The total outstanding is $1,432.83. Dave Little has received the check and is holding it parting approved. Staffrecemmends acceptance. Approval. fiu5499