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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.