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HomeMy WebLinkAbout2003-11-05 Finance Committee MinutesFINANCE COMMITTEE November Sr 2003 Minutes Councilor Attendance: Tremble, Palmer, Allen, Greene Staff Attendance: Cyr, Pellegrino, Little, Hupp, Ring, Stockus, Birch Others: Nino Chiappone 1. Consent Agenda A motion was made and seconded W approve the Consent Agenda items as follows. a. Quitclaim Deed - Anderson/Pooler- 164 Paris Streey45 Patten Street b. Quitclaim Deed - Powers -74Sevemh Street c. Write off Real Estate - 44 Queen City Mobile Home Park J. Write off Personal Property - Gill Capital 2. Bids/Purchasing a. Heating System Modifications -Bass Park -John Travers Plumbing&Heating - $14,460. A motion was made and seconded to approve staffs recommendation. b. Hauling Services Pulp Loader -Public Works- Clouston Trucking-$50/hr. Nino Chiappone's bid was $49/hour and Clouston was $50.1hour. Staff recommended Clouston, the current provider, who would be less expensive for the Cay as he is located two miles from Public Works and is capable for responding to emergency rails faster. Stcckus mid that emergency response time is an important consideration. Stockus has no fault with Chlappone's work but he does have a concern with the emergency response time. Chiappone is approximately a half-hour's distance from Public Works. The trees are brought W Public Works for chipping. Chlappone was present taking exception W staffs recommendation. He feels that staff's reasons for not going with his Mtl are not valid. The contract states that the contractor must be available within a 24 -tour timeframe. He has worked for the City over 1,000 hours In 1998-2000. In 1999, he spent 140 cleaning up the City Forest. He did not charge for travel time only for hours spent in the forest. Roadside brush cleanup was charged from the time he got to the pickup site to the time arriving at Public Works. His truck Is a 1999 which is 14 years newer than Clouston's. Greene asked the total average hours per year. Pellegrino said E is $15,000 per year on average. In response to Palmer, Chiappone is self-employed with no employees. He also listed other issues which he felt were beneficial: his truck has a 15,000 pd. gross vehicle weight with a third axle, it is 14 years newer, the loader is six years newer and 3 feet longer, the sides are 7 R tall so he on haul more volume. Palmer asked about the billing process for time spent. Chiappone said he receives a list from Public Works for roadside pickups. He leaves Omngton through Brewer and to the first pickup site in Bangor and starts his time at the pickup site. He continues to the next step until he unloads at Public Works at which time he steps the clock. Palmer asked staff to reiterate their reasons for recommending Clouston. Stockus stated it is the experience the City has had with Mr. Clouston, the fact that he Is available almost on a moment's notice, he works for an hour or two at a time rather than full day. Palmer made a motion to approve staffs recommendation with a caveat that he appreciates Mr. Chlaponne addressing the Committee with his point of view. Palmer urged him to participate in upcoming bids with the City and to perhaps contact Committee members prior be the meeting to process his thoughts. The motion was seconded by Greene. Tremble spoke about the Importance of preference to Bangor vendors. Hogan Road Extension — Engineering — Bids Opened 11/5/03. Ring mid the extension will go between the Crossroads Plaza and the Country Inn. The City has long envisioned an extension of the Hogan Road. There is another project pending which would relocate the lower end of Kdbidge Road. The City has an agreement with BEV, Inc. containing provisions to either connect the Gillman Road or other places on Stillwater Avenue. The agreement with BEV, Inc. required the City to undertake certain steps over a period of time in exchange for securing the right of way at no cost to the City. The extension will require construction of 700 ft. of road and seven bids were received. The completion time is May 13, 2004. Staff recommended award of contract to the low bidder, Vaughn Thibodeau and Sons, in the amount of $79,786. A motion was made and seconded to approve stafFs recommendation. Emergency Generator— City Hall — Bids Opened 11/5/03. Pellegrino said this Is a replacement generator. There is not sufficient capacity on the existing generator which was installed in 1968 to cover the communications center room at City Hall, which will also Include the new telephone system, to provide emergency power to that room. Staff recommended award of bid to Southworth Milton of Scarborough, the low bidder, in the amount of $17,350. Pellegrino stated that additional expenses will also be incurred with approximately $3,000 for hook-up to the gas line and another $2-4,000 for Public Works electrical for a conduit placement. A motion was made and seconded be approve staff's recommendation. 3. Acceptance of Claim A motion was made and seconded to recommend to full Council authorization for payment of a self-insured claim to Netlets, Inc. in the amount of $7,120.60. In May 2002, there was an accident involving one of their aircraft and an airport tug which caused damage to the aircraft. The City was subsequently invoiced by Netlets in October of 2003. While this invoice arrived after the 180 -day limit prescribed within the Maine Tarts Claim Ad, the Airport Department would like to pay the claim since it was the result of damage caused by an employee of the Airport. NeUets is a good customer at BIA, and BIA would like to maintain a sound mrldng relationship with them. Palmer asked about staff training and Hupp indicated it is on-going. 4. Assessor's Update The City Assessor reviewed with the Committee the recently recelved Assessment Review and Identified steps that will be undertaken to address It. The Committee had received Printed Information with their agenda. The Maine Revenue reports indicates how Bangor has slipped from 100% on ratios. The residential property to 89%, business to 96%, condominiums to 89%, mobile homes has increased to 116%. Birch referenced the Council's resolve asking the Assessor's department to be at 100% as well as the State of Maine's statutory provisions under Title 36, Section 327.1 referencing the minimum assessment ratios. He said that residential properties will be receiving a minimum of a 6% increase bemuse they are under - assessed, condos 9%. These two adjustments will ralse the assessment ratio to 95%. The business properties at 96% are within that range so no adjustments are perceived. Adjustments have been made to mobile homes and they are currently at 96%. Birch referenced The 2004 State Valuation report for Bangor was based on a field report tion In August of 2003. The commercial building ratios Is at 94% and for State valuation purposes all communities are factored to 100%. Personal property valuations are divided by the 94% to generate new numbers. Bangor has convinced the Bureau of Revenue Services for the past three years that Bangor has an aggressive personal property discovery process in place and it has been accepted for the two previous years and not factored up. Bangor's State valuation is $1,757,650 has been reduced by a little more that $16M which will result In an additional $135,000 school subsidy for Bangor. Birch said he is seeing a 6.8% increase in residential gains. A comparison of July and August of 2003 versus July and August of 2002 show alarming figures. First, the current year figures show the medium home sale price increasing by 15.1%. The volume of Bangor sales is up by 240+ transactions over the prior year. Medium valuation has raised to $115,000 in Penobscot County, in Barger it is $130,000. Bemuse scarcity and interest continue to remain low, money is available which creates more activity. Condos continue to sell in las than three days. It is a seller's market. S. Issuance of License Plates Staff presented information regarding whether or not the City's Treasury office should issue license plates. This issue has been raised by Coundlors on a number of occasions. At the last Committee meeting staff outlined why the City should not become a full registration agent. However, the DMV has recently made the City aware of other options it has in regards to issuing license plates. According to DMV the City can limit the types of registrations it is willing to complete. Therefore, staff recommends that the City become a full registration agent, but --- - limiting the issuance of license plates to passenger vehicle, purchased from a Maine dealer far Bangor residents and businesses. The State Is willing to come on site for training. A motion was made and seconded to approve staffs recommendation. 6. Low Speed Vehicles Staff reviewed the new law pertaining to Low Speed Vehicles with the Committee. These vehicles are allowed in all Maine communities unless the City chooses to prohibit their use. These vehicles are registered like any other automobile. To date the City is aware of only one such vehicle in Bangor.