HomeMy WebLinkAbout1992-03-16 Finance Committee MinutesCnimcilcxe Present: TOM Bragg, Jane Saxl, Richard Store, Marshall 11agm1,
Pat Blanchette
Staff Present, Fd Barlett, &A Paccar, JOM Quartaram, 1 A St ripfel,
Milne Byer
1. Almntive Session.
This iters res referred to the next Pgrance Camittee vesting.
2. SeleclAnn of Jdrerths' Park Onolex.
This item was tatren out of ozder to acc®ndate staff and a zrgaeaatauve of
Bronson rn�.m...'�w ,
+tike Df reviewed the selection process used to solicit an aAJuq
agency. TWO proposals Were xareivsl. Staff recc mads selection of Bronson
n' cations, Inc. for the following reasons,
a) Bhhs agency, wads the beat written aM verbal paese ntatfma.
b) Bon ronss a full service agency itch can tensile all elamnts of
the Rase Park Gmples's n is including p�
c) This ag � the Bees lwrk account �
for a sb� rs
anct hasof yea
ahe c ttee than discussed the wean bdget for advertising, the proposed
length a the contract (five y9115, to ENuhle asmally)• and whether the City
would terve ownership of all work products.
Mitre Dyer explaired that the annual overall budget is fn the range of
$15,000; the City Would hava ownership of all work promxts; ad the City
would have the right to terminate the cmtrat onumally.
After discussion, Councilor Sari moved that the mntnsot be awarded w
0meon for those yeaxs with amoral xecals. This was saoMed by cou cilar
Baldscci and awnwed unanimously by the Cmmittea.
3. Award of m tract for Actuary Bt dy of Workers'
TOM n......7.,. esplained that as a the city, is requlred to
pnxfOvn an actuarial study of its workers' owpensation program to detemdm
its cuaett end future liability. Over the past few years, this study has
been Performed by i+mnk B. Mall Cu2any. The last report mceived froluded
too many disclavmra, and W. Quarts :aro was net satisfied with the product.
As a sesult, he xavnontled ward a contract to hdeaOrd• Ward and hay con.
In an mncunt nt to excead $1,500.
After extensive discussion of the history and current status of the City's
waders' wgsnsation pragran, the recommendation as appmnsd.
4. ltlnrivation to Pill Vacant iaaitims.
a) Assistant City Solt Ston. councilor Store reported to the Cxmi.ttee that
the agreement m fill the Assistant City Solicitor position was an elaont of
the esployvmant negotiation with city Solicitor Stmpfel. 19e crmuittee
approved advertising for this position.
b) Tonant a Office. Jon waw--- reported
to the Camittee that the Treasurer'e Office has fallen behind m its
colla -clan work. While funds are being deposited, out tax collection recratis
are not being updated in a timely fashion and the pSlic often experiences
waits to make paynents in the office.
The staffing of the collectian function was seiwed this
year with the alfminatlm of the Treanner•s position. In addition, one
Clerk position has been vacant sire Oecenter.
The Committee appxwel internal advertising for this petition on a vote of
3-1, Councilor Baldacci oppethng.
C) Motor Pool Suvervims. Director of Administration Bob Farrar reporhei to
the Committee that internal interviews for this position had ben cvrcludnd.
Interviews were con t l by Mr. Ferrer ad Arthur Stmkm of the Public
Vbrka Department. it ie the crosensas of the Cmndttm3 than it v+oultl litre W
solicit applications [ outside of the City for this positfm. Discussion
follwxtl regarding the nseads of the mOtar Itol aid the qualificatims of the
Indhvidmal who would fill this positiah. The Committee approvtd the
Mian W advertise for this position Outside of the City on a whe
of 4-0.
Finance Dixectar Jahn ^Y.:aY_-_— reviami the teraT� of this tagw ary
petition with the Finance Committee. The position was creates m an effort
W ihnzaase aur collection of both accounts receivable and werhe tame.
•the position has been very successful in a000mplishing these goals. the
Original artnriaatton for this position was for a aix-month period which
wi11 expire early m Jae. the Finazire Directcr fndfoated that he wishes to
extend this position tlnmxp the end of June and to change the status of the
pusttion W permanent.
The foots of the CommitbeWs discussion was on the issue of changing this
poaitlon from a Ca%zrary W a pemanent one. A number of C.amiti'es masters
indicated that tey were rot cm£atahle with such a change at this thee, and
felt that the status of this position ahold be reviumal as a part of the
budget pmcess. Folloahng discussion, the Committee voted W authorize
continu^.g the temperaxy position through Jae without the change of status
W permanent.
6. Trarefer of Bad within Sauer Pmiect .
Fierce Director John Quartararn reported tont to City's auiitosa had
revdeed to various City capital funis and had racomnrendnd that oectaln
changes in appmpciatime he made in order W relne the a neat Of City
lish£lfty W the faheral government for u trage paymahts. The overall
effect of this transfer will be W income that older bond fads ere exposed
first. The transfer Will not Increase the agxopriatim of the Overall
projems. This xeamnvadatiah was mmhmously approeed by the Committee.
7. 1Tarefer of iatirns wiNin isjoq
and Iaoaim Nm-Brntl Awxooriations.
Tie F� DLt+1.Knr rep i to Hie Camlitee tMt L6 eudiVJ[8 hxi Alm
su09estod certain clmmles wiNin the Parking Fwd. F ly vests associated
wtN Ne design of Le Pick ing Square Parking C age wexe home by exiatj g
resowcre wiNin the Pocking Fuel. nater in the Prows' s, araieY was lnrmw[ 1
form mna....,+a.e.. sie omstnx?imt laoject ses mvp� a
beiarce xereuivg in the trod Encs hgwcd for Le Fuoject. Rtm autlitom
wT sLe wFira an DNiret e Nmx coming e £m u for these mirky
Ne earkvg Fuc be
itf back t Lu: Parking Hud. Tans will provide several here , First
it will induce aNitmu p yable to Ne federal govanv�n S Uo it will
an
restore sate available cords t Pa Pinking Hud which tan be oast a carry
the cosh floc of that fwd. � Parking Fund c mg Gly operates at a deficit
duet the debt servlre associated ;a v Parking Garage. 19ne excess Encs
ho be rePlecerl t in lend fords world provide operating cash t the fwd r
lepe£ully result in the funint ]tr h t alY upn e b General FUM for
cash reds. lfiia err:,... xis aPPmved by Ne mitt by wrenwmas vete.
B. Pav' Fiscal Y 93 Peoasbental Btdoot I�ruea[e.
City Nanagec w iyrrett xzaiexd wiN the Cawftt tM .vei �
depamosnr 1 trldget raluesta s tted for M3 budget. H noted that
overall rose deyrment 1 for an increase in expecit of
$653,515 over Ne Frit adopted budget. This xep+e.e.we a 3.18 frcreace in
Spending.
Nhile tie majority of depariumtta sukmi.tt mxget regtr which ware below
Na currant bar's, Lase deParhrer shied increaeea. The depenaenta
SINO1VEd V Polite, Fi , aM Finance. the m9jor xB96we for UIE imrB9s8
in Police and Fire ars sdsting inion Con m wkdch call for a 5% cost-
o£-living 3noreese effective ori Le nw hidg� 1+er. Tte Prinery reason
for ChE imN190 m t Finan me M1are'M1im� lain t11e ar04 of NOLIRB'
capamation. Thin issue has been�pra✓1mm1Y discoseai wiN the Fbmme
Cmtnitt.
Gn tic revewe aide of tie budget, total non-tax xewenwe is eetimat to be
dmn appvnxbrm y $550,000, or 7.36. She major masons for Nis are the
coadmning xvluctimt N State xvemm Shardml, and in mn:o
encase tax azd oLer lire 1t releiffi t Le cue nt a-.onnaaic slo d n.
the City Nawger also Ldicabsd to Na G ittee Lot there Amin tmtain
unca�ass in Nis budtg t. In ion we h noyet ratefved
on the cast of 1SgF3 for M3 or r cost of Ne city's hea1N
lnmuanox Prograa. Miitiwal n ie are likely to raoain, imbtlLg
beginvog Ne Procasa of arYkreesing an aging fleet, resolving our ov¢all
aplmmch to waLrem• �tion, m addressing other a p® and capital
needs ftlmting our street overlay prayam.
9. t Five-Yaar xvenune aml
A five-year projection Of Ne satimarst revames ac expsvlitures for the
suer Hud oma prw3tled to the Csnmittea. dtm projection basdcally 3rdicates
Nat the currmtt Iwact£ce of bicrassing sear fees 10% esery six annL v
raluimi t conminue thnntio Ff96. After that fnbtt, ile ra of in wase
may Possibly be rsducetl.
TM Primxry factors driving the increase fn the cost of tle Sewer Pod axe
delft mrvice and operating costs associated with the 60®clary treatvent
plant. In particular, F4$4 will see a aignEficant fncxmee in principal
payumts on our debt servicer aince that is t first year in which principal
Payments met be mace on the plant. Operating costs for the now Plant will
begin to affect the MT$3 budget, ami a full years operating inpact met be
fnclurl d m the M4 budget. Our current estimate i that the cost of
operating the secondary tmarvent plant will be in Una range of $1.5 million
pre Ya r.
The aty Manager aid motion the Finance C®nittee that these projections are
only as good as the asmmptims Welch un erlfe then. Of the asmmptionc
incbded, the most gueatioreble ie the extent of Intoe borrowing nasi to
borrameet tlm remains seer ei from problem. Toe projection was based m
StanD Of Maine.
c t agna frac the sty's current concent agreement wit the
State of Ian That apemara calls m the sty to do cts per
year, $2
million will
worth of Separation the nn art renovation paty's per year. This
dncx+m will be superseded in the nimr future by the sty's cmu^at arocee
with the Faat th avv....me,nan a fw lit xger..y. Ore part of that decree
pla nixes that the sty prepare a facilities plan for CS'0 compliance. That
plan f be oJeuve Unix city IC will include a caplets listing of
all of the projects tnat Ume sty will be regufxed to lM rn e, and it is
m Bondy ®timared that the cost of these projara will be in the $50-60
minim dollar range. The nvaesolved issue which may effect the Semi Pad
projections is the length of tier over Winch bare projects mutt be
asaztal®n. xhis wlll tea matter of dfanmaim between the sty ani the
Metlerai. entoxce�mt
agencies.
Manager rocs mmdoa that tlds projection be pla^ i on a future Finance
Ommfttee meeting Were more time could be spent aialnfng it.
10. Rraxd of Hid for Site iration5 Peeler Street.
The Firence C�mittea aaaxdnl the contact for the Site irneatigatim at 5
Parker Street m Sebago TECNnics, the lee bidder, in the amomnt of $3,550.00.