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HomeMy WebLinkAbout2003-12-03 Finance Committee MinutesFinance Committee Meeting Minutes December 3, 2003 @ 5:00 PM Councilors Attending: Frank Farrington, Gerry Palmer, Geoff Gratwick, Anne Allen Staff Attending: FA Barrett, Deb Cyr, Norm Hellmann, John Hamer Others Attending: Bill Miller The meeting convened M 4:57 p.m. 1. Consent Agenda a. Quitclaim Deed—Kunz-198 kuit Street The Committee approved the Consent Agenda. Rhan est for Support— Bangor Bard Farrington asked Cyr for a brief review of the funding of non-proft. Cyr said that the policy is Is broken down into operating and special purpose/project requests. The City's position is Mat we will not contribute to non-profit agencies far operating budgets or for special purposes. Under special purposes and projects Mere are some allowances where the Finance Committee could see what the benefit for the City would be, how many people would it benefit, etc. Allen said that this is a worthwhile event that benefits the dithers of Bangor. Allen wanted to know why this event is not under the budget category that: allocates funding for the Bangor Band. Farrington noted that this Issue should be discussed during the annual budget process. GmWck wanted to know the criteria used W fund the traditionally funded requests listed in the backup material. Cyr said that each one is a little bit different. She noted that the a of July Corporation receives $7,500 and is a large scale event, Bangor Convention and Visitors Bureau recer es $100,000, private school transportation, books and testing materials is approximately $130,000, Bangor Public library is in our charter and is roughly $1.1 million, the Maine Shakespeare Festival has been $10,000 and the East/West Highway Association has received $10,000. Palmer said that the Bangor Banti has been around since the eady 1800's and that as Allen noted this should be part of the annual budget. Cyr said that the Bangor Band will be having their annual concert at the Civic Center this year. In the past, the concert has been at the Cohen School, however, it was not well attended. A few years ago, the Council decided thrt Bass Park would no longer give space may. The concert is fire W everyone, and Mike Dye suggested the possibility of trading services far the fair, or getting a sponsorship. Cyr said that by going ahead with this request it helped others to realize the need that the Bangor Band has for financial support. Cyr said that this morning she was presented with a $1,000 check for the Band loom Capital Seven, which will allow them to hold their concert at the CMC Center and keep it hes for the public. Palmer said that he has always felt that Capital Seven knew how to drum up business, and that this was one Capital Seven decision Mat ended on a positive note. Bill Miller of the Bangor Banti spoke about the fad that years ago, the City of Bangor had the Bangor Symphony Orchestra and the Bangor Band in its yearly budget. He said that as years went by, these were cut from the budget due to budget constraints. He noted that the band practices at the Parks and Recreation Department, and this department sets up the equipment for concerts. He said that the Band is a part of the City, and that the Civic Center has more room and better accessibility. Miller said that historically, the Bangor Band is a partof the community and that they welcome this kind d support and he will make sure that Capital Seven receives proper credit. 3. Release of Deed Condition — Bangor EWangelical Churcir Heitman said that Bangor Evangelical Church is requesting a release deed from the City, far a portion of property they are selling to help finance the building of a new church. Some of the earlier deeds for the property contain reverter language, which conveys the property back to the Qty should R cease being used for church purposes. In 2001, the City issued a release deed for the same type of issue to the church. Heitmann recommended approval. The Committee approved the request. 0. Council Order, Authorizing the Execution of an Administrative Order by Consent for Remedial design— Hows Corner Superfund Site Farrington asked Hamer to provide a quick review. Hamer said that the Hows Corner Superfund Site Is located in Plymouth, Maine. The she is a 2 -acre site surrounded by a fence. From 1965 to 1960 there was a waste oil rerovery operation at this she, with eight above ground oil tanks. The oil was separated and the usable part sold off, and the remainder used for roads. The waste oil operation ceased operating In 1980 and the site remained vacant far six or seven years. The Propend was listed for sale and the contamination was discovered during a prepurchase environmental assessment At this point they started doing some well mon"horing around the site, and discovered that some of the byproducts of the waste oil breakdown were showing up in people's wells. DEP and EPA became invoked and started doing some conative action at the side, such as removing soll and placing a new water line. They started Iooklng at who might be potentially responsible parties (PRP) under the federal Superfund taw. Under this law, anybody who contributed waste di would be liable regardless afault or knowledge. The City of Bangor was one of about 500 parties identified as mntdbuting m the she. Hamer noted that after such a long period of time, a number of parties have disappeared, whether corporators want under or people moved away. He said that there are currently about 100 parties chat have banded together to negotiate with the EPA to install a new water system. The group formed in 1998 and the City joined the group. Hamer said that he became ihwotved in 1999. The first thing EPA does is come in and cleanup the side as best as it an, and then can charge the PRP for the cleanup costs. In this particular rase, the PRPs are working with EPA and voluntarily paying the cleanup costs. The PRP has agreed be a remedial investigation feasibility study to determine the status of the corhzminadon and the best possible ways to remedy it. In July 2002, EPA Issued an interim record of decision which established two phases of cleanup at the site, with the phase m right the Immediate site where the most Intensive pollution Is and the offsite phase, which includes Me groundwater damage. The PRP group has onmously agreed to negotiate an Administrative Order by Consent for Remedial Design to design the remedy for a portion of the site. Hamer sald that this order would authorize the City Manager to execute the flnal agreement and be enter into an escrow agreement W appoint Hence Atwood as agent for the group. Hamer noted that the City of Bangor is already financially obligated to do this remedial design work. Grgovick wanted to know the dollar amount "a whole cleanup project and specifically Bangofs portion. Hamer said that the cost is based on the amount of waste oil contributed to the ste. Overall, Bangor Is 1% of the entire waste oil, however, because the group has been reduced, Bangor is now about 3% of the overall waste oil by volume. In terms of the overall casts, It Is Impossible to predict. In about six months, Hamer thought he would be back before the Committee requesting $20,000 for the remedial assessment So far, the City has pald $130,000 toward the site. Palmer wanted th know If anyone had addressed what Is happening downstream from the site. Hamer said that in 1980 there was some question as to what EPA requested members to do. Palmer warted to know If we have a recommendation In place m prevent this type of incident in the future. Hamer said the we do along with legislation. Farrington inquired that there really was no choice In the matter. Hamer replied the the obligations will be the same regardless of the choice, and if the City declines to join the PRP agreemenk. then eventually EPA can come back and sue the City again. The Committee approved the Council Order. 5. Council Order, Ratifying the Retenflon of PMI, Flaherty, Regime, Pachlos ik Haley, LLC, to Assist the City in Defending the U.& EPA's Pending MAUI Administrative Enfonxsment Action Hamer said that the U.S. Environmental Protection Agency filed an administrative enforcement action against the City of Bangor for certain alleged violators of the Resource Conservation & Recover Act (RCRA) in October 2131 The City is seeking miifikation of the hiring of Preti, Rahedy, eta, who have extensive exyerlence in this area, to assist the City in negodations with the EPA. Allen wanted to know what the cost factor, and Hamer replied $30-90,01. He noted that the potential fines from EPA could total $1 million. Cyr explained the various violations, including the ladle of secondary containers for hazardous waste, aerosol cans in the tmshcan, lack of signs, etc. Farnngtun wanted to know the time fame of the vidations, to which Cyr replied the the violations occurred in 2001 and the City received the report In 2003. The Committee approved the Council Order to the NII Council. Taxpayer limmumm s Claim Cyr noted that the City had received a letter from a taxpayer regarding a sewer backup Insurance claim. The Koguts have topenenced two such backups in the last seven months (March 213 and October 213). The Sewer maintenance division will begin a quarterly, cleaning of the sewer lines in this area to prevent another reoccurrence. In both Instances the Kogut's were pleased with the service of bah the City and the insurance carrier, however each claim was paid based on the value of the property and not the replacement value. The Kogut's accepted this on the first loss, but asked if something can be done for the second incident. It is the 011 policy to not make payment above or beyond the commercial coverage we have purchased. However, staff would like to seek the Committee's position on this specific claim. Palmer wanted to know if the City needs to reevaluate Its Insurance policy and If there was an engineering problem that needed to be addressed. Barrett said that we are in the process of determining the actual problem spot in the line, and will roared the problem for the long term. Gratwick wanted to know the Civs history in paying claims such as these, and what is the precedent that we will be setting. Barrett said that the general liability that the City has for sewer lines is only in situations where we are aware of potential problems, or problems in our line that we should have been aware of, inadequate maintenance. In the past, the Coundl has generally gone along with what the insurance company has to say. There have been other claims that the City has agreed ro pay, such as an act of vandalism. Barrett said in this situation, the first incident, we go with what the insurance company says, but the second inddent, we are much more culpable. He noted that this problem was on our maintenance Ila and it was not competed. As a gesture of goodwill toward a other, this is jusdflable request Palmer recommended that we reimburse the citizen the difference, $561.30. The Committee approved this request. The meeting adjourned at 5:45 p.m.