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.