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HomeMy WebLinkAbout1995-05-15 Finance Committee MinutesFinance Committee May 15, 1995 Minutes Committee Members Present D. Soucy, Chair, P. Blanchette, - M. Frankel, C. Popper, J. Tyler Staff Present E. Barrett, B. Farrar, D. Pellegrino, D. Cyr, B. Stumpfel, R. Berriman, J. Ring S. Thompson, A. Stover, A. Stockus, D. Theriault, R. McKay, T.T. Martcial Other Present: Roxanne Saucier, BON, Gerry Thibodeau, Stauffer, Thibodeau & Associates, Mary Jeannette Person, Owen Cele Meeting was called to order at 5:01 p.m. 1. Review Annual Financial Statements G. Thibodeau noted that many improvements had occurred during the past year. He further noted that there were some additional items which could be improved upon as noted in the management letter. Property taxes needed to be reconciled on a monthly basis. D. Cyr explained that as time allows clerk from finance was reconciling the tax accounts in the current year. In addition, with the upcoming installation of new tax receivable software, the reconciliation process would be easier. G. Thibodeau noted that discrepancies between excise tax receipts processed and the state report were found. D. Cyr stated that the problem was software related. The Atlantic Turnkey software went through an update in August of 1994 to resolve the problems. Treasury tested week in January 1995 to ensure resolution and no differences were noted. We believe this has been resolved. G. Thibodeau related the concern that the reserve for uncollectible in the sewer fund may not be adequate. D. Cyr responded that sewer personnel have concentrated heavily on collections for the past year. Of balances incurred prior to December 1992, 30 had been collected since June of 1994. The 1993 and 1994 overdue amounts have been liened. The next step for the older balances would be small claims court in order to secure judgment against the property. M. Frankel added that we should identify those that will not be collected in any fashion, write them off and then determine if reserve is adequate. G. Thibodeau addressed the issue of the school records not being reconciled to the city records in a timely manner, thereby, delaying the release of the financial statements for four months. D. Cyr stated that the school department is receiving city reports monthly. The school department has indicated to her that revenue hasbeen reconciled through Item No B: Site Development Plan approval f r construction of an 0,400 a t. building for a s and service use lots don eanair Road i Orbar. Itonatry. Distric Eur Thomas/Bangor otor Sola, appli no. Planning Offi r Lord not d that the pplicant had submitted revised plans addx ss ing-Engin Bring Staf a regarding drainage. He tol the Board t at the re sec nplan met the requirements of a zone and a require ants for site plan submittal. Staf reconvnended pproval. Mr. Hall ved to approv submitted. Mrj Burgoyne Seco to 0 in favor/BUSINESS BUSINESS Item No. 9: IPlanning Board p((Itl Communications Plann n Officer Lord di Land Develo e nt Code. sitdevelopment plan a the notion. The Board voted 5 of Correspondence and Other e Planning Office. d amendment pages to the Thereng no further i m for discussion, the meeting was adjourneda 8:08 p.m. Y March of 1995 and that expenditures have been scheduled out for comparison to school records. She also explained that the delay was related to the fact that FY94 was the first year of the separate school accounting system and due to medical leave involving of key school financial personnel. G. Thibodeau noted that an individual should be monitoring all grants and contracts and maintaining a listing. D. Cyr noted that once the finance department i at full staff, the intention is to incorporate this function into finance• M. Frankel asked if finance currently receives all the necessary information regarding grants. E. Barrett responded that the city had changed procedures to improve upon the identification of grants. This is being accomplished through the necessity of council action to authorize, accept and appropriate grant funds. M. Frankel noted that finance should be keeping a running log of all grants based on the bi-monthly agendas. G. Thibodeau noted that a fixed asset survey had been done for nonschool seta but had not been converted to use n the accounting records. He ar recommended this conversion be done and that a similar survey should be done for school assets D. Cyr responded that procedures need to be established between finance and purchasing to accomplish the conversion but that there would be difficulties due to differences in policy between Mfixed assets to be surveyed and those to be capitalized (i.e. minimum threshold differences and need to locate actual cost information). E. Barrett added that an update was done in FY95 and that it is budgeted to be done again in FY96. Also, the listing has proved extremely useful by producing a list for insurance purposes. D. Soucy asked whether the school intends to have a fixed asset survey done. B. Barrett answered that he did know, but would address the issue with the school department. G. Thibodeau noted that the bus division makes up approximately 50& of the executive division expenditures. He recommended that the bus be removed from the executive division to increase visibility. D. Cyr responded that beginning with grants approved after July 1994 such programs were being. accounted for in a separate grant fund. The bus would be moved to this fund beginning in FY96. This prevents distortion of the general fund results of operations by removing the grants. M. Frankel asked if each grant was accounted for separately within the grant fund. D. Cyr responded yes. G. Thibodeau presented selected comparisons with prior year financial statements. The general fund's unreserved and undesignated fund balance had increased by $1.58 million; addressed the general fund's annual operating subsidies to and additional receivables due from enterprise funds; and unfunded pension obligation under the Maine State Retirement System. B. Barrett noted that the fund balance is currently 7.5t of the general fund budget and that charter sets goals of at least 5% and not to exceed 10t. D. Pellegrino asked that item 9 of the agenda be taken out of order to accommodate R. Harriman's scheduling conflict. D. Soucy agreed to take item out of order. 9. Police Department Radio System Upgrade - Sole Source Purchase R. Harriman presented request to complete the radio system upgrade by issuance of requisitions to Whitten's 2 -Way without going through the bid process. The upgrade would be funded by drug forfeiture monies. Approximately half would be to finish installation of encryption boards which Whitten's would allow the city to obtain at their dealer cost provided the city pay for shipping and handling. The remainder would be to upgrade the communication center. The center is under a service contract with Whitten's 2 -Way and installation of these products by another vendor would be a violation of the maintenance agreement. 41 C. Popper moved to issue requisitions to Whitten's 2 -Way as sole source provider for the police department radio system upgrade. Seconded by P. Blanchette. Passed. 2. Bids a. influenza Vaccine ( Health & Welfare Department). D. Pellegrino presented recomnedation to award purchase of influenza vaccine to Wyeth-Ayerst Laboratories of Philadelphia, PA, the only bidder in the amount of $0,384.00. M. Frankel asked whether we use all the vaccine ordered. D. Pellegrino indicated he did not know. But that the City normally purchased under a provision where left over vaccine was returned to the manufacturer who would take it back and provide a full refund. C. Popper asked why the city does not purchase the non -returnable vaccine or whether, if overstocked the City could sell to doctors. E. Barrett responded that the number of vaccines administered depends largely on the publicity given to the upcoming flu season. To avoid any potential liability, it would not be recommended to sell excess vaccine to others. M. Frankel asked whether there was a list of past vaccine recipients. B. Barrett indicated that the health & welfare department would have the names of past recipients. M. Frankel added that the city should use the list to contact individuals to estimate the current year's need. P. Blanchette felt that would defeat the purpose of offering clinics B. Barrett stated he would contact the health A welfare department and obtain the number of influenza vaccines administered in past years. S. Tyler moved to award the purchase of influenza vaccine to Wyeth-Ayerst Laboratories in the amount of $7,384.00 dependant upon staff review of number of vaccines administered in past years. P. Blanchette seconded. Passed. b.- 4 Wheel Drive Tractor (Public Services) D. Pellegrino explained that the tractor was to be used for leaf composting and some road mowing as part of a grant from Maine waste Management Agency (MWMA). He presented recommendation to award purchase for 4 wheel drive tractor to Hammond & Tilton of Fairfield, the low bidder, in the amount of $35,895.00. M. Frankel moved to award the purchase of a 4 wheel drive tractor to Hammond & Tilton of Fairfield, in the amount of $35,895.00. Seconded by 10 C. Popper. Passed. c. Disc Harrow (Public Services) D. Pellegrino explained that the disc harrow was to be used for leaf composting as part of 'a grant from MWMA. He presented recommedation to award purchase for disc harrow to Ingraham Ford of Corrina, the low bidder, in the amount of $6,175.00. M. Frankel moved to award the purchase of a disc harrow to Ingraham Ford, in the amount of $6,175.00. Seconded by C. Popper. Passed. d. Railroad Street Sewer Replacement S. Ring explained that this was part of the CSO compliance projects, which would involve replacing 21" pipe with 30" pipe, thereby increasing volume and reducing theamount of overflow. D. Pellegrino presented recommendation to award contract to Campbell Construction Company of Brewer, the low bidder, in the amount of $108,030.55. M. Frankel moved to award the Contract to Campbell Construction Company, in the amount of $108,030.55. Seconded by C. Popper. Passed. e. Handicap Access Renovations - Golf Course D. Pellegrino explained that the renovations were needed for access from the deck to the restaurant, doors, counters and restrooms. M. Frankel questioned the large variance between the law bid of $9,331.000 and the high bid of $19,451.00. D. Pellegrino responded that the majorit of bids were clustered around the lower priced bid but some were definitely higher. He added that the contractors were all aware of the scope of the work. P. Blanchette moved to award the contract to KBP Kitchens & Bath, in the antount of $9,331.00. Seconded by J. Tyler. Passed. f. Handicap Access Renovations Park Woods D. Pellegrino noted that the original budget estimate of $30,000.00 was too low and that the budget would be revised to accommodate the expense for the renovations or negotiations would be undertaken with the contractor as to which portions of the work are absolutely needed within the current budgeted amount. D. Pellegrino presented recommendation to award contract for handicap access renovations at Park Woods to Northern Maine Construction of Bangor, the low bidder, in the amount of $44,880.00. C. Popper asked of all the units were included in this renovations. T.J. Martzial responded that the renovations were for 4 1/2 units. C Popper moved to award the contract to Northern Maine Construction, in the amount of $44,880.00. Seconded by P. Blanchette. Passed 4 - 0, D. Soucy abstained. g. Office Supplies City -Wide 41 D. Pellegrino explained that the bid encompassed 44 core items and included a request for a discount on all other items. Currently departments utilize both the the contract and local vendors. Some items can be purchased locally cheaper than contract but not in majority of instances. D. Pellegrino presented recommendation to award contract for office supplies City-wide to Boise Cascade of Billerica MA, the low bidder, in the amount of $9,917.50 and that the central services stores be continued. M. Frankel asked whether this represented a wholesale situation. D. Pellegrino responded that the city would be buying direct and that if the item was not one of the 44 core items it would be discounted 38%. He added that he would like the current practice to continue one more year and increase efforts to enforce the use of the contracted vendor. C. Popper added that he would like to see the city support local vendors. D. Pellegrino added that there tends to be a large mark up on some items purchased locally (i.e.Loring Short & Harmon (LSH) pencils 1.59/doz was paid but bid at .49/doz). C. Popper added that LSH may not have been aware they were selling to city. C. Popper remarked on the 159 mark up on supplies in central services, added that central services time could be utilized other purposes and let the departments order individually and support local vendors. P. Blanchette stated that it would cost more for each department to issue purchase orders and increase the number of checks to issue. The fewer purchase orders the better. It would also decrease the potential for abuse. C. Popper questioned whether the current stores was used to maintain central service personnel. P. Blanchette answered that maintaining the store roan was not their only duty. B. Farrar added that approximately 12 hours a month are consumed with store room related activities, and that n turn it increases the productivity of the 46 user departments by maintaining stores on site. P. Blanchette moved to award the contract for office supplies city wide to Boise Cascade in the amount of $9,917.57. Seconded by J. Tyler. Passed 3 -2, M. Frankel and C. Popper in opposition. 3. Pension Inquiry E. Stumpfel explained that Mrs. Person is a recent widow whose husband worked for the fire department for 31 years and retired under the city's old pension plan. Mrs. Person had inquired as to whether she would be eligible to receive a monthly benefit as the retiree's widow. Under the city's old pension plan, there was no survivor benefit election. MCurrently there are only 3 retirees receiving benefits under the old plan and two surviving widows that the city is aware of. _ M. Frankel asked if the city were to establish a survivor benefit is if these are all the individuals who would be affected. S. Thompson responded that it was unknown how many there are. C.Popper asked for an explanation of page 29 of the meeting materials. E. Stumpfel responded that the list represented survivor benefit options currently available under Maine State Retirement System (MSRS). S. Thompson added that fire and police personnel fall into a special plan in MSRS, which does not allow a survivor benefit options. M. Frankel asked why under the new plan (MSRS) were police and fire personnel excluded from survivor benefit option. S. Thompson stated the only reason she was aware of was that MSRS offered those personnel special retirement options whichgenerally were more costly and that a survivor benefit option would increase costs even further. E. Barrett asked for further explanation of survivor benefit. E. Stumpier stated that no one covered by the old plan could elect survivor benefit. B. Barrett asked if everyone was given the opportunity to 'enter MSRS. S. Thompson responded that all active employees were given the option at the time the city adopted the Maine State Retirement System and that the option to move to the MSRS plan from the city's was given at least one other time after that point. S. Thompson added that all retirees under old plan were and are receiving different amounts. Mrs. Person did receive life insurance proceeds from city policy. C. Popper asked how much. Mrs. Person responded $2,800.00. C. Popper asked whether Mrs. Person would be able to continue health insurance through the city's policy. S. Thompson responded yes. P. Blanchette asked what the city's options are. R. Stumpfel responded that city can do as it chooses and could establish a survivor benefit. D. Soucy requested information regarding what the cost of a survivor benefit would be actuarially had it been available. He noted that if the city chooses to allow a survivor benefit, it should be done for all. E. Stumpfel added that the city can establish a present or future date for any changes to begin. C. Popper expressed concern that under MSRS there would no survivor benefit under special plans. S. Stumpfel stated that figures would be obtained and brought back to the committee. D. Soucy asked Mrs. Person if she would like to say anything. She stated she and family bad been residents of the city since 1871 and felt the city owes her something. B. Farrar stated the city would try to obtain figures from MSRS provided they would cooperate. C. Popper moved to delay further discussion and decision until figures could be obtained for a survivor benefit. 41 At this point Mrs. Person left the meeting. J. 'Tyler questioned the task given to staff to try to look at a particular class using assumptions under MSRS. M. Frankel added that he sensed that Mrs. Person's greatest concern was the ability to continue with city health insurance. S. Thompson responded that as a widow she would always be eligible, at her expense. J. Tyler advocates no changes, does not want to go back. M. Frankel added that the city should discuss with Mrs. Person the fact the health insurance will always, be available to her to determine if that is more of a concern to her than the receipt of monthly pension benefits. C. Popper asked how we could make the change to the old plan when it is not available under MSRS for fire and police personnel and stated would not be in favor. E. Stumpfel stated that staff would try to determine reduction in benefit had the survivor benefit been an option. D. Soucy added that the staff should have discussion with Mrs. Person to explain all findings and her eligible benefits. E. Barrett noted that it would be appropriate to ask Mrs. Person back when a decision is made. 0 I10 This item was tabled with instructions to staff to obtain figures as to what benefit would have been had a survivor benefit been available. 4. Supplemental Appropriation of Community Development Rehabilitation Loan for Improvements at Park woods E. Barrett explained the a loan had been previously approved but additional funding was necessary. The need is a result of the delay by government services in donating excess properties located in harsher climates to local agencies. C. Popper moved to appropriate an additional $46,591 in Community Development Rehabilitation Loan proceeds to Park Woods for necessary. repairs and improvements. Seconded by P. Blanchette. Passed. 5. Purchase of a Wheelchair Bus (City Nursing Facility) E. Barrett requested that this item be tabled. C. Popper moved to table purchase of wheelchair bus. M. Frankel seconded. Pass. 6. order to Abolish Reserve Future Construction Airport E. Barrett explained that Airport was funding sufficient capital improvements and that it was no longer necessary to set aside specific rentalincomes for this purpose. P. Blanchette moved to approve order to abolish reserve future construction Airport_ Seconded by M. Frankel. Passed. - 7. Exchange of Mortgage for Tax Lien E. Stumpfel explained that Mr. Shepard wasexperiencing financial difficulties and had received notice of pending lien. He requested this exchange to preserve credit and to allow sufficient time to market the property. M. Frankel moved to approve exchange of mortgage for tax lien for Mr. Shepard (RE 35643). Seconded by P. Blanchette. Passed. 8. UPS Request E. Stumpfel explained he had received a request from UPS to decrease the amount of rent charge for each of its four drop boxes from $150.00/yr per box to $75.00/yr per box. P. Blanchette noted that the boxes were for the sole benefit of DPS not the City. C. Popper asked whether the boxes were located on city property. B. Barrett responded that the boxes are located on city right of ways. P. Blanchette moved to deny UPS request for reduction in rent of right of way for drop box locations. Seconded by D. Soucy. Passed. 10. Renewal of Airport Liability Insurance Owen Cole, agent, explained that airport liability has a very limited insurance market_ He recommended maintaining the current $100,000,000 coverage since city is operating as fixed base operation. P. Blanchette asked whether this represented enough coverage. O. Cole indicated that that would be an internal decision. He added that claims in major accidents are averaging $1,200,000/seat. E. Stumpfel added that the city maintains a high limit in order to attract carriers, but that he was unsure as whether the level of coverage was adequate. C. Popper asked if other brokers had been contacted. D. Pellegrino responded that no other were contacted this year. Last year others were 41 contacted only one of whom thought they could access other markets. In the end, that individual was not able to locate additional markets. J. 'Tyler moved to the renewal of Airport liability insurance to AIG Aviation as presented by Owen Cole. Seconded by P. Blanchette. Passed 4 - 0, D. Soucy abstained. 11. Claim Settlement MOT Bullseye Bridge Takings J. Tyler moved to accept claim settlement for MOT Bullseye Bridge takings. Seconded by P. Blanchette. Passed. Adjourned 6:31 p.m. Debbie Cyr Recording Secretary