HomeMy WebLinkAbout1985-11-15 Finance Committee MinutesFinance Committee
November 15, 1985 at 3:00 p.m.
Minutes
Present: Councilor Arthur Tilley, Chairman
Cpmcilor James Cox
Councilor larry Willey
JoM Flynn, City Manager
Ted Jellison, Finance Director
Jim Ring, Director of Public Warks
Ralph Mishou, Director of Sewage Treatment Plant
John Frawley, City Engineer
Dave Pellegrino, Purchasing Agent
Jim Phillips, City Assessor
Sally Thompson, Community Development
1. Council Order 86-13 •Hanlock Ridge Subdivision'.
Harold Johnson, developer of the Hemlock Ridge Subdivision, was present
for discussion of Council Order 86-13. The City Manager end the Finance
Director recommended that $59,000 plug be closed cut of the Capital Pond
Project for the Solid Waste Incinerator into the General Reserve Fund which
would bring the Reserve FUM total to approximately $140,000 and that
$110,000 be taken out of the Reserve for Future Construction -General in
order N state an actual fund citation for the roads in this subdivision
Project. There would still be a balance of $100,000 in the Solid Waste
Project because of the project's incompletion. The Committee unanimously
agreed and Council Order 86-13 will be appropriately amended for the Council
Novamber 25th agenda.
2. Community Development.
The Cawittee recommended approval for an amendment to a loan which the
Finance Committee hed approved pack in June for property at 258 French
Street.
3. Micro -Hydro Electric Generator Project for the Wastewater Treatment
Plant.
Ralph Mishcu indicated Nis project had been previously approved by the
City Council. The original eatiMetes from Hleinsctmidt and Damning were in
the neighborhood of $60,000 and, after going out for construction bids, the
lowest bid care in at $155,000. Approximately $18,000 bad already been
spent for equipment and $13,000 for engineering fees. Industrial High Tech
from Thomaston, Maine, has contacted the City and has indicated they can do
the job for a total of $85,000 which includes the $13,000 and $18,000
already expelled. A copy of the detailed proposed budget was distributed to
the Committee with their agendas. The Pinance Director indicated that the
original Project was $60,000, $30,000 of which wes provided from the sawar
Reserve and the other $30,000 was ro came from a State Grant. Mr. Mishou
stated the City has 106[ the State Grant. The Purchasing Agent felt there
would possibly be other avenues for a grant due ro the nature of the
project. If the COMadttee approved the project, a Council Order would have
Finance Committee -2- 11/15/85
to be introduced in order W transfer $55,000 from the Sesser Reserve W
ver the project's total cost. At Councilor Willey's request, Mr. Mishou
updated him as to the backgraud of the project. Jim Ring agreed with the
feasibility of the proposnd project. ane Purchasing Agent indicated the two
bids were rejected for being too high. He further indicated the regulations
have been satisfied through this process and would mw be going W a
negotiated contract. Industrial High Tech indicated that if the project
re W be undertaken in the near future it would result in a savings to the
City in berms of their costs. The ultimate benefit to the City amounts W a
month's worth of electricity for the Treatment Plant per year, 100,000
kiloaats per year or $7,500.00. As the rare of electricity goes up, this
amount will increase. Councilor Tilley questioned the misleading of
Kleinschmidt and Dunning resulting in the loss of the State Grant. Willey
suggested the City should not overlook loosing the State Grant. He also
stated that bash upon what had been reviewed at today's meeting he felt it
was a mazginal project. The City Manager indicated that if the City has to
get into any kind of treatment strive primary treatment the electricity
content of the how plant would be subatantial. Willey recvmrended the item
he continued to the rent Oommittee meeting, are that Tilley and Flynn uret
with the Legislative Delegation to see if effort can be nada in securing a
grant. Willey further indicated he felt that industry was experimenting at
that City's expense on this project. Tilley agreed but felt chat if
Kleinschmidt and Cunning have been paid money for a feasibility study and
the City went out for bid based upon their estimate that the City should go
back W than and perhaps demand reimbursement of the money paid by the
City. Pellegrino indicated that $10,000 of the amount was for design work
which has been ccnpleted and the $3,000 was for the feasibility study and
felt it is a very feasible project. Tilley asked that detailed cast
information be obtained concerning a similar project in Pennsylvania and
also requested the Purchasing Agent write to neinac midt and Lwmhg, as
previously mentioned. 'The Committee agreed to place the item on the 11/22
Finance agenda.
4. Contract for Laundry Services.
Councilor Cox made a motion W approve accept of the contract with We
Franklin Laundry at 22 cents per pound with Councilor Tilley secoiiny the
notion. Councilor Willey did not care due W a conflict of interest.
5. Council Order 86-10 "Financial Statements".
Councilor Tilley requested this item be referred W the 11/22 agenda.
6. City Assessor - dim Phillips.
Councilor Tilley indicated he would like W see a written statamnt W
ensnare that all Information that is generated on permits involving
expenditures for imorovmenta ate buildings, etc., ba referred to the
Assessing Department on a formal basis so that they are aware of everything
that is going on. Mr. Phillips explained the current process. He receives
a print out of permits that are issued by the Cade Enforcement Office. The
system sea put together several years ago and he didn't feel it had been
niintained efficiently. He requested a copy of the permit itself which was
done by having new forms printed a i follow up each one but indicated he
still wasn't completely satisfied with the process and would ba willing to
work with a committee towards a solution. Tilley suggested that Phillips,
Ted Jellison and Ton Small arrive at a solution and felt that all this type
of information should flow through the computer. The original system was
designed as a Code Enforcement tool with information that hopefully would be
available to Assessing. It was hot designed as a combined system.
Finance Committee -3- 11/15/85
Tilley wanted to be sure that a system was available whereby all
information fry Code Enforcement was getting to the Assessing Department
for them to follow through. Phillips made a suggestion that the Planning,
Cvmenity Development, Code Enforcement and Assessing Department beads
should meet an a regular basis to discuss the major projects being worked on
within the City. Tilley suggested that when a new system is developed that
it be formalized as part of the administrative procedures.
Tilley also expressed concern that the Council wasn't aware of what
takes place in terms of additional assessment throughout the year. He would
like to see a quarterly report commencing with the assessment the Council
accepts with the current budget. The City Assesmr indicated it's difficult
to project assessments. Real estate is seething which can be handled in
this area but indicated that regarding personal property he mule provide
the total Men taxes are committed and provide total supplementals as they
crew in during the year and possibly provide another total a few prior to
the taxes being committed the rent year. Phillips felt a report could be
provided on January 1st, February lot, March let and, after April 1st, a
report could be provided every week when values would be finalized. Tilley
didn't feel a weekly report was necessary. Cox rcommended a mmnNly
report. The City Manager suggested that W. Phillips provide the Council
with the bottom line of the report rather Nan a lengthy report, and Tilley
agreed. Wben asked if the full report will be available for review in the
Assessor's Office, Mr. Phillips indicated he would be hesitant as a property
owner might possibly find out the value of his property had been increased
prior to being officially notified by the City.
Willey said he was going to suggest to the Council Chairman that the
subcommittees propose their primary goals end objectives for the year to the
Council as a Male. He felt the Finance Committee should take the lead in
this area particularly in the area of a proposal for a Council budget
process. Tilley agreed further indicating he would like to see the monthly
financial reports reviewed step by step. He also suggested a Council
t6fpmmittee be established to lack at tha City's rash position and cash flow
and obtain an outside opinion as to Mot should be reserved, the method for
accruing depreciation, etc. Willey suggested unanausbared capital accounts
be reviewed to determine if they can be transferred.
The City Manager and Finance Director suggested the Council meet within
the next few weeks to discuss some basic facts concerning budgets; i.e.,
venues, losses, valuation, revaluation, operating expense increases. The
administration is requesting ems parameters sat by the Council within whits
the administration can work concerning the budget.
The Committee agreed to meet on hbvmmier 22nd at 3:00 p.m.
Crnmittee adjourned at 4:20 p.m.