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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.