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HomeMy WebLinkAbout1998-12-07 Finance Committee MinutesFinance Committee Meeting Maurice December 9, 1998 Counselor; Attending: Michael Crowley, Michael Aube, Pat Blanchette, Gamy Palmer, Joe Baldoed, J Tyler Staff Attending: Edward Barnett, Ron Heller,Mary-Anne Citable, Dave little, Debbie Cyr, Don Window, Dave Pellegrino Others Attending: 8 u htera fRmhy Tyson. Roger Lebrew) 1. Rxecuve Sessions Poverty Abatement Normaa Palmer, 2501turleigh Road -real essamlax accmmt #50344 Conmettes agreed W share the 1998 taxes and eller into a tax dub or tax club -like amungement for 19W and subsequent axes. 2. Presentation- Audit and Among Finandel The results of the 19% audit were conveyed to the Committee. Material was distributed fm the Committee members. Kathy Tyson explained that the Committee should commend the staff ofthe Finance Department for the work they did. Theprocessgcesfor4-5 works and ended the beginning ofNovernber, which was earlier than the previous year. This will enable the City to ger to market -rest weak with the bonds with current fmmcial statements. Roger].ebrewwentoversouceofthekeypoints all those itemsbefeltwem signifiwH. M nagemern Lathe : Roger sated that the City has no material weaknesses and the comments made in the letter were more generd comments with less significant internal controls that they would litre to sen improved. The new system with Pentamation will help clean up some of the issues. I sings, 11 Ron Heller updated the Committee on the recent purchases of the housing on Randolph Drive and the BMF] facility on Sylvan ]toad. An RPP was put out and bids were received. Mn ah that the bids received were approximately a full percentage point off the market. There is a commitment from People's Heritage to buy the qty bonds, $2.4 -union for the pwchaseofthowe opropertiesat3.8%mwofidmstovera3yeartam-. No prepayment penalty It is important to have w prepayment penalty because as the wits are sold on Randolph Drive, the debthasto beredred. Staff is lookingfn approvalto sign with People's Heritage and privately place it. Terms and Cota ifions: Note will be executed next week. Principle and interest due no later than December 15, 2001. Interest Paid on 6 month imervah& Legal opinion needed from bond counsel. Councilor Hlunchette commented that this will be repaid as orals are sold, but what happens if enough units are not4 Ron explained that it could either be funded long term or the City could go back and ask to roll it out another year. Pat asked staff to continue to update the Cortmdttee on this issue once it gds underway. Ron will update the Committor every six months. Commitee directed staff to move forward in negotiating this emangematt with People's Heritage Bank order the terms as outlined. 4. Bids: Recommendation to award to M&StateContractors ofEddiegton, the low bidder. This roawvm W fon rifle mnge ue ofthe armoq =d is appmdmately 2W' x 30'. The cast includes installation of I W of insulation and the natural of all asbestos containing materials. This money bas been budgeted]. Approved. b. 1999 Suburban 4x4 Vebide. Wine Department H4 Wri¢M ofPneftedd ($27 07 1 Dave Pellegino rewvuvatds net purchasing from low bidder because the vehicle is a 2 - wheel drive, not 4 -wheel. Bean and Conquest of Bangor is the second lowest bidder for $27,612.00. Approved recommendation. C, 12221ETmr Truck Cab& Chassis(MmrproB White Ford M'Banaer (8$27 3501 Recommendation W purchase from the lowbidder, Whited Ford of Bangor. Adumpbody and plow will be purchased separately and installed on the cath & chassis. Approved. 5. Pouring Rights for Soft Drink Concession (Baas Park? Councilor Blanchette asked that this item betable l until the next mooting. Item tabled The Bays Park CommitteF Mike Dyer and Dave Pellegrino met with each of the proposers. The Committee made a decision to give the advertising, marketing and pronation of due Bangor State Fav to Davis Communications ofGlatbum and the Auditorium/Civic Center marketing, promotions and public relations to Steve Robbins, Creative Services of Bangor. Mark Wellman from Marketing Media & Wellman, the concent provider of the services for both, attended the meeting to address the Committee. W. Wellm rt wmmeMed that he feels that they met the objectives they were hired to do which were to develop neer strategies and programs for marketing wmmudcatiovs There was record high attendmme at the Fav but year This year, they submitted the Fair's program to the haemational Association of Fairs mulExhibitions and won fust place for their radio campaign, second place for the total overall campaign and tied for thvd far the newspaper vel Ne wwbshe. Mr. WeWnan feels that the decision tooffer Ne wnnact toafirmtW,tohisknowledge,basnochmu ndnouwkr M,isnotawodidm. He drought the challenge originally was that they were unable to sack to the budget, yet they have not been given arty written budget in Use three years since they've been doing it. He mplavmd that when asked if he would negotiate on the budget, he indicated that he could. Mark feels they have delivered excellent results for the City and that the contract should not be given to someone else. Councilor Baldwa commented that having worked on the Bass Park Committee with the Fair, he does support the Committee's position regarding the Auditorium but that Mark's work during the fair was an unqualified seems and a big asset to the City and he hopes that this is recognized by flus Committee. Councilor Palmer, the Chair of the Bass Park Committee explained that they looked at all the proposals very carefully. They recognized that the individual selected is a Mand new agency. They spoke carefully about the what 0 situation, but there are safeguards in place. The Committee was pleased with the moommendation. They recogwzW Mr. Wellman and his organization and the fine work they have done, but felt this was an opportunity to get a new ndv, try some new things and the Committee is very condonable with that decision. Councilor Blanchette contracted that Mark has done a good job for what he did, however in many instances the budget was ovearm and this is something the City can not afford. Mike Dyer explained that the Commina decided for the first time to split the contract by not awarding the Auditorium and Fav commons to the same organization- They also discussed costs involved. Industry standards in the For industry for agency fees for advertising me approximately 15-22°0. In 1996, the agency fcs for Marke ing, Media & Wellman were 32% of the total expanded, in 1997, 46% of the total expended and in 1998, 405s. Combined with outside services for collateral, printing, etc., in 1996, 58% of the total amount of money spent on advertising was for non -media purchases and in 1997 end 1998 the number was 66% in each year. The Committee felt that this was excessive. All thrc other agencies offered to keep the agency fas in the 20-25% range of mor total budget they were given. Mr. WeWnan addressed the Committee on some of the issues brought forth by Councilors. He explained that his records show that the con ofthe letterhead was $1790, which included printing. Logo development was done in a way that delivered good results. The charge on tlse percentage of agency fees vs. the Mal budge is something he was not aware of It wasn't that they couldn't stick to the budget, but that the agency fees as a percentage ofthe total budget were higher than the industry standard. Mark explained that they work by results and objectives. They are getting the results and doing good work. They didn't realize there was a funerals in play. Their agency fees are 26% of the total monies dual were delivered for the Bangor gone Fav' 1998 because they generated $26,500 in free media on top of the $50,000. This was a$76,500 budget, of which $26,500 was generated in free media by working with the TV nations and the Bangor Daily News. Channels 5 and 2 gave over $7,000 in free media and additional coverage. Mark's proposal shows how to generate more merry for the fav through corporate sponsorships that need to be sold in advance. Councilor Aube asked with respect to the alomative, what was the mon competing factors in going with an unknown. Councilor Palmer answered that the individual was enthusiastic, and theyhavedoneworkinthisarea. TheyfowsedonbudgetaMespema,whdchwwpanofthe visual presentation made at that meeting. Mdse Dyer shared that in going through the process everyone had differentideas. He has worked withltce Davis and smue ofthe others that will be broughtmwithher. Mgce'sbiggestommemwastbebudget. Itisfddthet Davis Communications will better deliver the services for Bass Pak Mark Wellman commented that he understood that it was at the discretion of the Committee to split between the two, so they didn't write two different proposals. They were willing to take half ofit, Councilor Palmer answered that some markered on the area that they warned and he fit that they marketed very well. Mark's point is that they have done a good job and have createda momentum and it will not be the same ifyou try and ant quality. Mark points out that they area proven fnnthat works very well together and they have 3 years experence. When asked about negotiating on the ones on agency services, Mark answered yes, they would. Councilor Tyler commented that he felt the anglers and public opinion show that the fair las changed for the better in the last couple ofyears and he isnot sure which way the Committee shouldgoonthisissue. Councilor Blanchette answered that the fair bas it highs and Iowa. Different ideas are Wed ant there ere a number of reasons why attendance can be low at a fav, one may be the economic picture within the City. At the Bass park meeting Councilor Vardamis commented that Ms. Davis is such a vivacious person that she gets along well with sponsors, prubablymanesothmanyoftheotherapplicants. The toolsarein placeto dothe fan and Ms. Davis sbould not be disqualified because she is an unknown. Mr. Wellman thanked the Committer for giving him a chance to address them. Counalor Tyler asked if there has been a marks ing budget established for the fair and if not, when will the budget be established? Mike Dyer answered that there has bun a budget established for the fay. Mike pointed out that he gave Mark an opportunity to address his billing philosophy, which is to bill out on time and/or "old he be willing to work with a capped agency budget Mike asked the Committee after ifMr. Wellman had answered that question to everyone's satisfaction, and he had mt. Committee approved recommendation of staff. 7. SnImol Creasing (mard Contract Increase in Elumfly Rans tPolice The City contracts with MDA Security to provide school crosvng guards at several locations throughout the City. The new owners ofMDA have a mncem with the cancer contract. When the contract was awarded to MDA, it was based on providing 236'' hours of coverage per week. Theyetmendymccivearateof$10.25perhour. ThefY98/99budgetwasprepandbaudm these figures and 587,625 was appropriated. Kindergarten clasus now ma a fug day instead of 3A day and crossinng guards are no longer needed during goontime. Weekly covered changed from 236'Ato 187W This will msuft in an expeMiture of approximately $68,000, MDA would like To change the weekly coverage to increase by five to i92''. They propose a rate increase from $10.25tc$11.95anhourandanadditim 5hoursperwcekforafternoonsupervivon. Ifthisis accepted, We weekly cost will increase $378 from $1,922 to $2,300. Based on this $77,485 will be expended. Approved. 'f-417T3%rFii. r - 0 9.(Public Approved. 10, OctnFer Financials Tabled. 11. Ma urMTrlin-1818th Shea Indefinitely postponed. l2. Munigipal 0tuWaim Deed -83 Parker Street Approved recmnmendetion. 13. Matured Tax lin-]-77HmmnM Street Approved recommendation. 14. Municipal OnitcLm Dead -10 AuhAw li�ad Approved rewvavendation. 15. Munzwl Quitclaim Deed -1083rd Street Approvedrceommendation. M Manned Tar lien -2]2 Assw Street Approved recommendation 17. Wnrkrnn Agreement -159 Stillwater Avenue Approved recommendation. 18. Tax Lien Foreclosures - I ormatmal ladme David Little captained that as of this dat%there were 187 properties that will mature on December 9. If you uake out those that have workout agreements or pending workout agreements, waived foreclosures, and payalems that are approved tonight, there wiH be approximately 158. Dave capecus a lot of payments in the nest two days, and this nmnber may drop down w about 100. In prioryears, the another has been approximately 100, but included workout agreements. Dave wM come back in two weeks and let the Constance knowthe numberwhich foreclosed and than current status. StaTwiHalso come back in 3armarywith a policy on foreclosures.