HomeMy WebLinkAbout1985-05-10 Finance Committee MinutesFinance Committee
May 10, 1985 at 8:00 a.m.
Minutes
Present: Councilor Jim Cox, Chairman
Councilor John McCarthy
Councilor ed Brum
Councilor Arthur Tilley
Councilor Larry Willey
Councilor Marshall Frankel -
John Flynn, City Manager
T Jellison, Finance Director
John Field, City Treasurer
Pate D'EtriM, Airport Manager
John Frawley, City Engineer
Dams Pellegrino, Purchasing Agent
Sally Thompson, Community Bevelgxrent
lkd McRay, Community Develop ant Director
1. Purchase of Aircraft
The Cumittee approved the Purchasing Agent's for
purchaae of the aircraft tug from F. L. Douglas Ltd., England for
$139,228 Pds, sterling Which is $188,000 with the exchange rate. 'the
equip ant will be brought to Halifax, Suva Scotia and trucked to Bangor
for approximately $3,2110 thereby making a total cost of $175,000 which
was the amwnted budgeted. The metMid of payment will be to convert the
U.S. dollars to pds. sterling. The Committee approved the
reoomuendation of putting the money into Casco Northern Bank, which has
an international department, aM they Nave agreed to freeze the exchange
rate for six months. Even though the equipment is foreign made it does
have Arerican}m8e (arts and the manufacturer has requester personnel ba
ant to England for training in the maintenance and operation of the
equipinst. Expected delivery date of the tug is Eacmuber of 1985.
2. Community Development.
The Cxxmittee took no action on the disposition of property on York
Street asking that it be brought back to their next renting.
The Committee approved a loan as presented by the Community Developant
Director with the condition that Urn note be signed with the loon
�licaat.
3. Pine Meadmes Subdivision - Revised Aeon.
The City Engineer discussed a revised report which had been sent out
with the Council Agenda regarding the deferred assessments on the Pine
Meadows Subdivision. The revised report clarifies that assessments for
the developer's share are to be levied as the lots are sold, with a
minhrm of six lot assessments to be levied each year far the first
three years ahn the remaining assssments on be levied at Ute eaj of
three years.
It was suggested that this policy is one which Should be adopted by the
City for all developers in Ne future, if it is used in this news.
,When asked why the City participates in these costs, the City Engineer
explained Nat subdivision regulations state that the City will ley, a
certain percentage, as well as it encauragea the developer to build.
The increased taxes will amount to $8,800/year ani the developer will
be guaranteeing to pay the equivalent of arassessments per year for
$18,600 totaling $26,000 and the City will be Spending approximately
$24,000. Councilor Willey and Tilley q StlOned spending taxpayer
dollars for Nis and Willey mentioned a revolving loan type of fund for
soon developments. Councilor Tilley mentioned tie developer going to a
bank rather Nan to Ne City for the money.
The Committee asked that the staff obtain information from other
cane pities as to how Ney handle Nis matter end asked the Finance
Director to find out what interest rate a developer would pay to the
bank on such a project.
4. Sewer Project - Stillwater Avenus.
the Committee xeovnended approval of a Council Order which will
autborize the contraction of a sewer extension on Stillwater Avenue
from Penjajawec Stream to the Rittridge Road. The omstruction will
begin after receiving payment of the esHmrted assessment of $3,358.00
from the original petitioner and the am of $29,000 will be trareferred
from the Reserve for Future CCTBtNCtion-$CNPY Fund to cover the
balance of the initial construction mat with the remaining assessments
to be levied upon cmgletim of the construction and submission o£ a
final report to the City Council or net they be deferred mtil entry
into the sewer as requested, but an longer than three years, with a ten
percent interest to be charged annually for each year of deferral.
a. Estimated Amoral Ramnirementa of Au[oaro[ive Pilters and I.mma. '19ne
Coamittee re onmanded award of n annual contras! for autorotIT
filters to Wbay Auto Parts, fire low aggregate bidder, at $4,917.41 for
the estimated annual xequireemt; and, an annual contract for
automotive lamps to N. H. Brag) and Sona, ties loot aggregate bidder, at
$1,295.56 for Ne estimated annual requirement.
b. Gasoline. The Conattee reoaime deI award of an annual contract to
Irving 011 Company far the purchase of gasoline. Irving 011 was the
low, aggregate bidder in the cooperative bid with Brewer, Old Town and
Ha pdm.
c. MowinaMadtine. The C ittee regamendM Nrchasa from Hewes
Company, Inc.. the low bidder, at $7.667.84.
d. Play Structure. Ihs C®nittee reommerded purchase from M. E.
O'Brian ad Sona. Inc., Ube only responsive bidder, at $11,945.56.
6. Results of Bod Sale.
The Finance Director indicated that tM bonds were sold on May 1, 1985
W the road bank. The net interest cast for the 10 years is ] 1/48
which will save the City approximately $31,000.00.
0. Aircraft Repair Station.
The Purcbasing Agent informed Ube Cmmittee that a purchase order was
processed for spare parts for a customer at the Aircraft Repair Satin
in the amount of $3,952.64.
8. .Health Plan Consultant.
Vne Committee recommended approval of a Council order authorizing the
City Manager to enter into a contract with Albert C. Jones Nov England,
Inc. for health plan benefits consulting services for the pmnpose of
examining the City's current plan and possible alternatives and cost-
saving techniques.
9. Cover Material.
1be City Manager indicated tbat approximately 3,000 yards of cover
material for the dump was purchased at $1.00/yard. The administration
had previously indicated W We Committee Uhat the fill could be
purchased for 50 centa/yard but the City did not get the lowest bid.
Adjourned at 9:30 a.m.