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HomeMy WebLinkAbout1998-06-15 Finance Committee MinutesFinance Committee Meeting Minutes Sone 15, 1999 Councilors Attending: Jim Tyler, The Woodcock los Bellotti, Michael Aube, Michael Crowley, Gary Palma Staff Attending: Edward Barest, Erik StumpRl, Ron Heller Others Attending: Owen Cole (SargeN, Tyler & West), Fred Hartstone Meeting convened at 5:09 p.m. 1. tentative Session: Poverty AbaGmeat Ri auea No sbmement grated. Workout Agreement put in place 2. Fred's Hardware The Finance Committee was asked by Councilor Baldacci to take under consideration an informal quote that was recentlyreceived on some budding materials for Public Works. Theasueisthmthere is a$50 diff in wotes between the low bidder, which is a company located in Orrington and Fred's Hardware, which is located in Bangor. The City's tarsen policy is that there is only local prefiresce Sbka are fled. Councilor Baldacci explained that he requested this because he felt it was an issue that should be reviewed to see it'something more could be done by promoting local bidders. blr. Hanaoneaddressed the Committee with his concerns about the bidding process. HefxIsthat the City should use Bettor vendors and that the Ca" being given quality merchandise for the best dollarfrumlocedcompsnles. Mr. Hartstmentedsvey, stronglythat he is not beinglreated fairly by the City Dave Pellegrino responded that the biggest problem is the hardware. 99e/ ofthe City's bardware relurremaus are bought under a field purchase order, less then $200. Everyone bas the opportunity to use a field purchase order and pick up what tiny need wherever they can Dave is hying to educate all the departments an how to handle themselves when using field purchase orders. Mr. Hatsmne has bad d'uliculty, with some of the departments and as a result there is some aversion to goingto Fred's Hardware. Thenconcemshavebeenvoicedleh .Harthone. Davefeelsthat the Cityisdoingbarerandtlse runmberetlatwere put together show this. L calpreferencehasbecn a subject of the Council for many yenm It is something that Dave is opposed to because it allies competition and date wouldbe a great deal ofdlfficulty its loci prefererme were established. Staff isbeingveryopenadhona[with W.Hatstone. Progressisbeivg made and staff will cominueto work with Mr Hadstone end Dave will contimreto tollmv up with departments to address any issues thin may come up. Councilor Primer asked Dave W outline the question ofreMiabon from other towns dBarigor had some farm oflocal preference. Dave explainedthat ifBmgm esmbhsbes a local preference for then vendors, other towns could do the same thing which would be a demancon to the Bangor vendors. It would restrict their competitive edge with another town's companies. Local vendors would raise deir prices in bid situations and others tend ort to want to give pricing Councilor Palmer asked' if it would help to involve some of the vendors in the process of mating with departments to go over procedures? Dave explained that he has been going to the different departments and discussed some of the problems that have been faced end wbat airy should do to avoid these types of circumstances. Councilor Crowley commented that he had the opportunity to speak with Mr. Harestone on several ocrzdom. Itis initial concern was that than may be some unmentioned ben, nonetheless, some built in bias into the City's practices based on what Mr. Bateman was providing him far information. That led Councilor Crowley to ask more questions and try to deternme where the City was coming from ahatouvderstrvl the pracessaMpro nes bttta. Mikefads DavehasoufLnedsomeofthe initiatives that both Mr. Hartstone recommended to him and that had come out of many other common. One bang that to City needs to be more game in certain ways. Mike asked Mr. flarestme what@was,specifically, tathewadd 4lretorequest City Comedic do? W.Hartsmseerplamed that his concern is when speaks with various department regarding their needs and is told everything is fin%but then fords of ohm the department isn't satisfied and has used another vendor. Heheals that he has also tried to work with staff, but fats that [lure are stuff members that are lying to Flim and beubeing treated uMa'dy Condor Woodcock commented flog naffs obligation is toga the best item for the best price for the City. Councilor Tyler commented that the figure representing the amomt the City has spent st Fred's Hardware has clanger) from approximately $400 to $21,292 ower his tenure on the Council, which is a considerable incomes. rranIsaaru.77MM aMMTTr� P,M Recommendation is to go with du low bidder at $1.475 per pound, which is less than last year at $179perpouvd. Approved. This material is being purchased mender We City's CSOpro®am. This into covawtahmear storage humility that will povide the atone water storage capaety requved by the BPA Contingent upon City Commit approval as it is ova $100,000. Approved recommendation to Council. �41 This will reduce the been gain experienced on the southwest side of the Domestic Terminal Building. It"helpgreaUywithairwnditioningeosts. Thengcamnrmdomnistogowiththelowbidder. Approved. r474=i frsrsr, rrrm This is for building Q53. The boiler is a water robe boiler and the purchase of this boiler will enable City staffto install it without changing any of its connections or removing asbesms. Approved. These are the last two tmdergramd faakties that have to be taken care or to beat the DEP's deadline of next October 1. The reconunendeion is to go with the low bidder at$54,700. Approved. There was a question about why was there such a difference between the estimates and the final bid. Dave explained that when the estimate was done it was done with only square footage in mind. It was a very prehanarr ary mmiber. Other hone were considered including fixtures and material for walls mW Rows. As a result, the wft per square hurt mmeaeed.Itis felt that once this work is done it will not need to be done again. Ties is $50,000 more timn original estimate. Mike Dyer explained that between IDs suditorimn floor and the Civic Center mof project, approximately $90,000 will not be expended on those two projects anal it is being proposed to take the overrun can the bathroom project from thosefunds. Approved. The Treasury Department has ban amemely displeased with the Motor Atlantic Turnkey Software (AM)beingused. Thwehavebeenwmmwbugserrdddcieociesthd AMbasbeenumbleto correct. Cuatoma service was the biggest wmzm. Ile rewmmeodetiov is to go with the low bidder. Approved. 4. Renewal of Airport Liability Insurance Coverage Dave Pellegrino explained Rat in the past there has only ban one insurance company to give quotes. Thisyeartheaarethree. ThesearetheoWythreeivsurancewmpatdesthatwillprovide Ruskind ofinauance. Quoteswe a offered from AIG Aviation, Inc, Associated Aviation Underwriters, and Green American Insurance Company. Great American las quoted $100,884 but leaves out an important covemgethat AMG does provide. AlGdeldwthe FellowE ployee6xclusionand Creat American does not. Should an employee that may cause bodily injury to a fellow employee there would be wvenge for the City under Workers' Compensation for the injury. However, should the injured party, or the estate, we the employee, no coverage would be awarded under Great American's policy. The City does not need this coverage. The savings for the City woWd be approximately $19,000. The recommendation is to go with Great American Approved 5. Consideration of Fiscal Prim for Gasoline an Dave Pellegrino explained that Irving OR has won the bid this year for fuel prices and offered to fix the price. The market right now is quite low, and it is likely that it may go a lutle lower but more thenlikelyitwillgohigher. The Sled price is.54 cents for diesel,.58 cents for regalar Sea get .61 cevtsfor89. Staffmournmends accepting the offer from Irving. Approved. 6. Oaitelaim Dent -15th Street A title search found various tax Geos assessed against a prior owner in the 1950's and 60's that had no discharge of record. The current owner has requested a municipal quaclahn deed W clear the title to the property. Approved. 7. Workers' Compenantion Rae.aa Reinnarenro Staff recommendation is Employers Regenerates The outdo las come in significantly lower than was paidmthepastat$13,813. Approved. 8, Orden Authorizing 2% Pay Adjustment This would authorize a non-union pay plan adjustment of 2%. The continuing union curuags contain 2% an well. The 2%is budgeted and gulfmcouwevdafion is that non-union pay scales be increased by 2%. The cost would be approximately $ 258,000. Approved, 9. Fmoren Arms Staff has recently received notice that Richard and Toby Zabot, owners of 1 Main Street and 92 Forest Avenue are out of bankruptcy and subsequently checks have been received to pay in full all the outstanding real estate and personal property taxes that we owed to the qty. The checks total $18,632.99. Approved I0. Matured Lien- JEW" Street Lot 438 Staff received a call from Find Bank regarding Lloyd Bradeen. There is a matured 19% up: Sega 1997 to Sen and outstanding 1998 taxes. Fleet Bank on behalf of W. Bradeen, suggested that he would Sias to enter Moo a workout agreement with the City. Flee[ Bank would pay the total due on the 1996 matured Use and Mr. Bmdeen would pay the 199/ and 1998 fasces over a 12 month workout agnemeou The total the for 19% to be paid by Fleet is S601.58 plus the $70 quitclaim fre. The check has been sent The balance for 1997 and 1998 is apprognmely$95o.00. This would resuh in $W per month payments. Approved. 11. TULieo Staff received araluest on atax lien Into on Friday and asked the Committee if they would tike it held over ural near meeting or put on the agenda for full coancil action. It involves payment of 1996 matured lim, 1997 lien and Food mans on commercial property totaling $10,000 owned by Charles Adams Sr., 73 Husson Avenue. There are no rude violations with this property. Committee approved putting Us on the nnar Finance Committee agenda 11. Review of Cast". Lumber and P IuuuDoors This was covered as part of agenda item 92 above. With no farther business to disass the meeting adjourned.