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HomeMy WebLinkAbout1985-07-24 Finance Committee Minutes"CAR 1. HAVEN 10,111. 11 111,09 1. COX JOHN W. MCCARTHY THOMAS 1. "I'll Am ARTHUR R. TILLEY 491t9of Pargor, Aim Cry COUNCIL July 25, 1985 Mr. John Flynn City Manager City of Bangor City Hall Harlow Street Bangor, ME 04401 Dear John AS I indicated to you in our telephbne conversation in the afternoon of July 25, 1 have discovered that I haves conflict of interest in connection with the Pine Meadows Subdivision issue that was voted on at the finance Committee meeting on July 25, 1985. Therefore, I must abstain from voting and I would appreciate it if you would correct the minutes to reflect this disclosure. Sincerely, Jo la by Finance Committee July 24, 1985 at 6:30 p.m. Minutes Present: Councilor Jim Cm:, Chairman Councilor John McCarthy Council Chairman Ton Davis Councilor Arthur Tilley Councilor Edger Brown Councilor Marshall Frankel John Flynn, City Manager Ted Jellison, Finance Director 9cd McKay, Community Development Director Dave Pellegrino, Purchasing Agent Bch Miller, City Solicitor Don Souty Carl Snow Steve Creighton 1. Cc mnunity Development. The Committee approved three loare for property at 18 Third Strest, 58 Nelson Street and 26-28 Autumn Street. 2. Bids a. Traffic Guides. The Caimittee approved ward W MDA Security, the low bidder, a $$4.99/far. S. Park Benches. The Committee approved ward of bid to Park Structures of Merica, the low responsive bidder, for 45 benches at $11,758.00. C. Cons[ruccion of Fvads and Severe in Pine Meadows Subdivision. The Committee remmame approval of Councilor McCarthy s notion to award the bid to Hughes Brothers, Inc., the low bidder, at $160,575.95. MCarthy indicated he felt the Cantil had made some sort of commitment on this project but did not feel the City was hound to deal with other developers in the sae way as dealing with this particular project. He further indicated flat one problem sboul9 be addressed and resolved immdiately. At the July 17th Public works Committee meeting, it was decided that a formula should be devel ped to determine if subdivision projects were in the public interest for the City to spend public monies for streets and sesers, and that a policy be developed on the city/developer participation in the projects specifying now the developer's participation should be Imbibed in terms of deferred assessments. In reference W Pira Meadows, the City Manager indicated that when Council Order 85-179 was passed by Ube City Council be felt fire City had emmitted itself to the construction of roads and severe in Phases I and II of the project and had further committed itself to some type of deferred asses meot. After the July 17th meeting, he as under the aswuption that the staff was to talk W the developer regarding interest cbargea on deferrals. In meeting with staff members, it as recommended that 8 1/28 interest should be charged on the unpaid balance of assessments. The City Solicitor bad issued an opinion indicating that action approved by the passage of Council Order 85-179 was illegal. McCarthy questioned how the bid for Pine Meadows street and seaar construction could be approved if the Council Order action is illegal. The City Manager suggested that if the Council feels at this point that interest should he charged that the Council Order could be amended to appropriately reflect wtotever new arrangement the Council agreed upon with the developer. Nn Saucy, developer of Pine Meadows, indicated that he felt the City had entered into an agreement with him by passage of the Order and said that he would abide with wiatever changes the Council made in their pollCieS with the understanding that all be treated equally. A changed policy, which affects a project already, approved under anther policy, has got to affect everyone involved. Councilor Tilley indicated he would net agree to the City being in a position to loan taxpayer money out to anyone without interest. He indicated he had gotten two separate legal pinions Mich stated that the process was illegal. The City Solicitor had previously issued an opinion indicating the illegality of the process. He did state that he felt the 8 1/28 interest rate would be appropriate for the Pine Meado s pmject. Councilor McCarthy again restated tis umtion te approve passage of the bid for Pine Meadows Subdivision streets and sewers to Mtghes Brothers, Inc. with the understanding that there is still a pcohlem that should be resolved Immediately as it relates t0 other sutdivision projects. d. Quick C^, ler and Backhoe Bucket. The Committee approved purchase Of two coup er arta nre Ecom Harold O. Smith and Sins, Inc., the lou bidder, at $12,549.60. e. Mask uniforms. The G.mmittee recommended approval of work uniforms for the Firm Baps T from Sears S Foebuck at $4,256.10. 3. Council Order BS-2"/2 "FeversLn Transfer of Huls for Street Fecoumtructlm." Iis Ca®ittee rxrnamded �oval of this Order Mich cancels actrm taken in Order 85-261. The original street program called for the State Highway Black Grant monies to be split $60,000 for maintenance and $100,000 for CostruCtim. Iba City received a letter on July 15, 1985 indicating the City's allocation for FY 86 will be $205,330.20 instead of $160,000. The City will use the additional $45,000 in place of the transfer. Adjourned at 0:35 p.m. NOTE: Pe: Item 2 d., let the record show that Councilor McCarthy, by letter dated July 25, 1985 to the City Manager, indicated he must abstain from voting due to a conflict of Interest in the Pine Meadas Subdivision issue. A copy of said letter is attarJcd to these minutes. Finance Committee July 24, 1985 at 6:30 p.m. Minutes Present: Councilor Jim Cox, Chairman Councilor John McCarthy Council Chairman Tan Davis Councilor Arthur Tilley Councilor Edgar Brown John Flynn, City Manager Ted Jellison, Finance Director Pod McKay, Community Development Director Was Pellegrino, Purchasing Agent Bab Miller, City Solicitor Con Soucy Carl Snow Stave Creighton 1. Community Devel Ina Committee approved three loans for property at 18 Third Street, SB Nelson Street and 26- Autumn Street. 2. Bids a. Traffic Guides. The Committee approved award to MDA Security, the lox bidder, at T4.99 r. b. Park Benches. The Committee approved award of bid to Park Structures ofAmerio,�[m�w respor�slve bidder, for 45 benches at $11,758.00. c. Construction of Barts ad Sewers in Pira Meadows Subdivision. The Committee recommended approval of Councilor ithy's motrm to award the bid to Hughes Brothers, Inc., the low bidder, at $160,575.95. McCarthy indicated he felt the Council had made some sort of commitment on this project but did not feel the City was bouts to deal with other developers in tine same way as dealing with this particular project. He further indicated that the problem should he addressed and resolved immediately. At the July 17th Public Works Committee meeting, it was decided that a formula should he developed to determine if subdivision projects were in the public interest for the City to spend public monies for streets and sewers, and that a policy he developed on the city/developer participation in the projects specifying how the developer's participation should be handled in terms of deferred assessments. In reference to Fire Meadows, the City Manager indicated that when Council Order 85-179 was passed by the City Council he felt the City had committed itself M the construction of mads and sewers in Phases I and II of the project and had further committed itself to some type of deferred assessment. After the July 17th vesting, he was under the assumption that the staff was to talk to the developer regarding interest charges on deferrals. In meeting with staff maulers, it was remmended that 8 1/28 interest should be charged on the unpaid balance of asmemaswnts. The City Solicitor had issued an opinion indicating Mat action approval by the passage of Council Order 85 179was illegal. McCarthy questioned how the bid for Pine Meadows street and sewer construction could be approved if the Ch cil Order action is illegal. The City Manager: suggested that if the Council feels at this point that interest should be charged that the Council Order omld be amended to appropriately reflect whatever new arrangement the Council agreed open with the developer. fon Soucy, developer of Pira Meadows, indicated that he felt the City had entered into an agrobamt with him by passage of the Order and said that he would abide with whatever charges the Council made in their policies with the understanding that all he treated equally. A changed policy, which effects a project already approved under mother policy, has got to affect everyone involved. Councilor Tilley indicated to would not agree to the City being in a position to loan taxpayer money out to anyone without interest. He indicated he had gotten two separate legal opinions which stated that the process was illegal. The City Solicitm had previously issued an opinion indicating the illegality of the process. He did state that hu felt the 8 1/28 interest rate would he appropriate for the Pine Meadows project. Compiler McCarthy again restated his netim to approve passage of the bid for Pins Meadows Subdivision streets and severe to Hughes Brothers, Inc. with the understanding that thane is still a problem that should be resolved immediately as it relates to other subdivision projects. d. Quick Coupler and Backhoe Bucket. The C ittee approved purchase of two coupler attachments fens Harold O. Smith and Sons, Inc., the low bidder, at $12,549.60. a. Wmk Uniforms. The Committee remmandnd approval of werk uniforms for the Fore Bepar4rent from Sears s � at $4,256.10. 3. Council Order 85-2]2 "Boversi Transfer of Funds for Street peomstrwt m. Cmmrtree recaanen approval or mTs Order whTch mantels action taken m Order 85-261. The original street program called for the State Highway Block Grant monies to he split $60,000 for maintenance and $100,000 for construction. Tee City received a letter on July 15, 1985 indicating the City's allocation for FY 86 will be $205,330.20 instead of $160,000. The City will use the additional $45,000 in pipes of the transfer. Adjourned at 7:35 p.m. B t 1e: Item 2 d., let the record snow that Councilor McCarthy, by letter dated July 25, 1985 to the City Manager, indicated be must abstain from outing due to a conflict of interest in the Pine Meadows Subdivision issue. A copy of said letter is attached to these minutes. 0