HomeMy WebLinkAbout1985-02-27 Finance Committee MinutesFinance Committee
February 27, 1985 @ 8:00 a.m.
Minutes
Present: Councilor Jim Cox, Chairman
Councilor John Gass
Councilor John McCarthy
Councilor Marshall Frankel
John Flynn, City Manager
Ted Jellison, Finance Director
Sally Thompson, Community Development
John Frawley, City Engineer
Dave Pellegrino, Purchasing Agent
1. Jack Roberts - WHEY.
Due to illness, Mr. Roberts was unable to attend the meeting
He will be notified of the next Finance Committee meeting.
2. Park 6"Shop Validation Stickers.
The City Manager was contacted by Sue Patterson, owner
of
Paperfest, regarding the validation stickers in the Park and
Shop Lot which have always been distributed by Freeses. The
administration recommended that the City sell the books of
'•� validation stickers to the merchants as they request them at
their desire. The books are $15.00 each - $10.00 goes to the
City and the remaining $5.00 to the River City Association
of downtown merchants.
The Committee unanimously approved.
kv 3. Request Authority to Hire Consultant -'Health Insurance Plan.
The City Manager indicated that he and the Finance Director
had been looking at the City's health insurance package for
the past couple of years in terms of making changes that would
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money. They recommended that the City hire a consultant
to study all of the City!s health insurance needs and provide
recommendations on what the City could be providing so that
n going out for bid the City would have the expertise in
knowing what variations would be advantageous in health
insurance plans The consultant would be someone who has
experience in designing the plan and the components.
The Committee authorized the administration to proceed with
solicitation of a consultant to determine who was available
for such an engagement and what the fee structure would
likely be.Should the Finance Committee then approve the
actual hiring of a consultant, the money would have to be
transferred from the Contingent Account,
4. community Development
The Committee approved one loan,and deferred action o
pother loan for property at the corner of Parkview and
Garland Street indicating that at this time they did not
feel the incomeappeared to be.enough to substantiate the
loan request. They requested Sally Thompson to notify the
individual asking him to come back in six months with more
detailed information.
S. Beth Abraham Synagogue.
Councilor Gass had asked the City Manager ilp it was possible
for the contractor who is demolishing the present Synagogue
building to haul the material to the City's dump site rather
than hauling it to SERF. The current charge from SERF is
$14/ton and the amount of debris could be considerable.
The City Manager -asked the City Engineer to figure out what
charges would be involved for this and Mr. Frawley indicated
it would be approximately $700 - $500 for fill to cover the
debris and $170 for use of a bulldozer. If it were an other
than Wednesday afternoon or weekends an attendant would have
to be hired.
The City Manager indicated that the City has done this in the
past with their own buildings being demolished but had never
done it for an outside group and wanted the Committee's
authorization.
Councilor Cox and Councilor Gass voted in favor of allowing
use of the City's dump. Councilor McCarthy was opposed
indicating that he felt he was being rushed into a decision
which has broader implications and felt more information
should be available. Councilor Gass indicated to the Committee
that he is a member of the Beth Abraham Congregation.
6. Bids:
a Wastewater
Sampler
Equipment
The Committee approved award to ETA Associates, the low
bidder., at $5,713.00.
b. Contract Renewal for Automotive Batteries.
The Committee approved extention of the contract. with
N.H. Bragg from March 1985 thru February 1986 for
automotive batteries.
C. Install Runway Surface Condition Sensor System.
Award was made to Brescia Construction Corp., the low bidder,
at $1768020.00. This is part of the AIP project and has
been approved by the FAA.
6. Bids - Cont'd.
d. Radio Equipment.
Awarded bid to Motorola Communications and Electronics,
the only bidder, for a total of $5,872.10 for radios for
the ambulance.
e. Temperature Control Maintenance.
Award contract for the Fire Station's temperature control
HVAC systema maintenance to Honeywell, Inc., the low
bidder, at an annual cast of $7,372.00.
Award the contract for temperature controls maintenance
at the Police Station to Johnson Controls, Inc., the
low bidder, at an annual cost of $1,668.00.
Both contracts will be r wed on an annual basis until
terminated by either party
Bond Issue Information.
The Finance.Dlrector gave,the Committee copies of information /
dealing with the bond issue. He indicated he wouldalsosend -'
the same information to the entire City Council.
Regarding the bond issue, he stated that by going ten years
for a portion of the total instead of 20 years it would. save
the City $580,750 over the life of the bond issue. He went
over
amortization schedule he had put together. Assuming
the Citywent 10 years on the entire isand comparing it
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to the original proposal which was put forth with a portion 10
years and a portion 20 years, it would save $808,000. Averaged
out over the life of the two issues, the 10 yean.:tbtal issue
would be $396,000/year. With the 10/20 year portion, it would
$321,200 and would cost an additional $75,000 year to save
$808,000 over the 10 year period. In terms of tax dollars, it
would amount toanadditional 20 cents per year to go the 10
year ltotal issue and save $808;000. -
As per Council Order, the decision as to whether the City
goes with the 10 or 20 year bond issue
will be decided by
the Finance Committee, Chairman of the Council and the Finance
Director.
Councilor Tilley had requested the Finance Director to look
at the cash position based upon the June 30, 1984 audit. Mr.
Jellison indicated that there was $5 million in cash of which
approximately $1 million is tied up in current liabilities,
working capital requirements. $4 million of cash is then used
in the various designated reserves two of which cannot be
touched as they are departmental carry -forwards amost School
Department non -budget items and School Department surplus.
The other four reserves
are Motor Pool, Bus, Fire and Self -
Insurance. After takingthese reserves, it leaves $1,242,000
in available cash and $1.2 million a w utilized in the 1985
budget leaving an excess of $42,000.
g. Bond Issue Information Cont'd
The Finance Director referred to Councilor Tilley's letter
totheeditor in the Bangor Daily News and the cement
n the management letter which talks about the reserves.
Tilley keeps raising
ing the issue Of the City .not being i
conformance with generally accepted accounting principles.
The'auditorsare not commenting on the propriety of reserves
and, in fact, command the City for having the financial
capability to have and maintain those various reserves which
s the envy of every city in the state. The auditors are,
however, commenting on some technical accounting methods for
the way the City is
currently handling the reserves.
The auditors will be meeting with the Council on March lith
prior to the Council Meeting and will discuss the reserves
at that time. The Finance Director stressed again that the
auditors have no questions on the propriety of the reserve
accounts.
S. Solid waste Project. _
The City Engineer indicated that in April of 1984 .the Council
authorized the City's continuing support of the Penobscot
Valley Solid waste Project by allowing $1.00 per capita`.
contribution. All of the municipalities involved have made
the same commitment, however, Bangor indicated they would
give half of the money at that time and the other half after
the Finance Committee had considered it. The project i
getting to the point where aontract will be signed and the
City's remaining share of $15,821 is needed.
The Committee agreed to pay half of the commitment - $7,500
until the City Engineer comes
s back to them with a total
budget of what it will cost to complete the project. After
receiving this budgetary information, they will make a decision
on the remaining $7,500.
Committee adjourned at 9:55 a.m.
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