HomeMy WebLinkAbout1985-12-20 Finance Committee MinutesFinance Committee
December 20, 1985 at 3:30 p.m.
Minutes
Present: Councilor Arthur Tilley, Chairman
Councilor James Cox
Councilor Larry Willey
John Plynn, City Manager
Ted Jellism, Finance Director
Ralph Misdou, Sewage Treatment Plant Supervisor
have Pellegrino, Purchasing Agent
Jotm Field, City Treasurer
Ted Jellison, Finance Director
Role Theriault, Parks 6 Recreation Director
John Frawley, City Engineer '
1. MicNHYdro Plolect
The Committee unanimously approved the transfer of $43,000 fror the
Reserve for future ConstructicMSewar account to the Treatment Plant MiQ
Hydro Eergy Project account. The original cost estimate of $60,000 has
been updated to $73,000 and the proposed $30,000 State contribution is no
longer available. The transfer will allow total local funding for the
project. A Council Order will be prepared and introduced under suspension
Of rules at the next Council meeting.
2. import on Purchasing of Aircraft Tug.
The Finance Director indicated $175,000 bad been budgeted for the basic
tug and the actual purchase price was $207,073.80. The price of the pound
was mch higher than anticipated when the purchase was actually completed,
transportation was $600 over the original estimate, astuns duty had a -
slight decrease, the bank originally indicated their charge would to me
quarter of one percent of the price of the item and their charges had
ncreased during the six-month period necessary to acquire the iter plus
nor Larges for the letter of credit needed to pay the contractor. Even
after the pound price fluctuated, the total purchase price was $28,000 less
than the next lowest bid received. Councilor Cron questioned the procedures
used as to when to purchase the tug in accordance with CM pound value. The
Finance Director indicated that purchase advice regarding the prod value
was given by the Bank of Boston. Tilley indicated that before the City
locked itself into a purchase the administration should have core to the
Committee with the increased pound information for their decision as to
purchases whether the puashould be made. The tug had to he ordered at the time
of the bid and the commitment was solid in pounds after the bid was made.
It wasn't possible for the City to cancel the order after that time and
there was an irrevocable letter -of credit. Willey felt that once the
$175,000 was set the City ahold have locked itself into that figure and
indicated the Committee should be made more aware of these situations in the
future. The additional $33,000 will cone from the Airport Outlay budget.
3. Bids
a. electric lamps. Inc Gumnittee agreed to award the contract W
Standard Electric CO., the low aggregate bidder, at $13,582.82 for the
City's estimated requirements.
b. Mgu d Chlorine. The Committee awarded the contract W Sones
Chemicals, Inc.. the lw bidder, at $11,451.00 for the estimated annual
requitement of 66,000 Its.
c. G quid Propane Gas. The Committee awarded the contract to Central
Maine Gas, the lw bidder, at $.6674 and $.6974 per gallon.
d. Catchnasin cleaner. The Committee agreed to purchase rhe item foam
Maitre Equipment Co. Inc., tW low bidder, at $15,165.92.
4. Addendum to Contract with Lightning Techmlogies.
the Purchasing Agent reported that, after a meeting with all patties
involved concerning the problem of lightning and the Airport's runway
lighting controls, FAA indicated that future costs for repair of Nis
equipment would be Won by the FAA. Mr. Plover of lightning Techrologies
las indicated Mat designing a fix on the system mould be approximately
$6,500; if the equipment has W be taken to the lab for excessive testing it
would be eatMr $7,500. Ina City will pay the fees and will get a 9%
reimbursement from the FAS. The Finance Committee recommended appzWal and
it will W brought before the Airport Committee.
5. Selection bevies Committee.
The Committee agreed to meet as a Selection Review Committee on January
8th at 1:00 p.m. to interview architectural and engineering firms for the
maintenance building at the Airport. The Purchasing Agent will set up said
interviews.
6. Golf Course Pates
The Committee was given a copy, of proposer] golf course rate increases
for 1986 as well as comparisons of 1985. Tilley suggested that an
W added to whatever race scledule is agreed to and at the increase be pu
Mt
in a special reserve for the future proposed nire-tele expansion. Austin
Galley had suggested the rates be increased $25.00 across the board, which
is reflected in the 1986 rates, with the increase to be allocated in a
special reserve fund for the Course expansion as well as an increase in the
greens fees by $1.00. The City Manager didn't feel a secool reserve fund
should me created out felt that the increase in fees could te put in the
original reserve fund. Ito Committee asked for information on charges at
otter golf courses which aren't private clots and will consider the Stem at
their next meeting. Willey asked if the land purchased for the additional
ce roles was needed by the Airport because of potential FAA regulations. - -----
Frawley has been in contact with the FAS to clarify if the land could be
eligible for FAA funding and, if Ad, the next consideration is bow the land
can be developed. Willey did not agree with funding an additional nine -
holes. He indicated he had been told that the FAS item was proposed M the
City and that City controlled land was mandated. The City Manager indicated
there had been discussion as M possible FAS reimbursement if the property
could be included as pert of the clear zone.
7. Insurance Update
TTe Finance Director updated the Committee on insurance. At the last
meeting, he had given an update as to public official liability, which has
still not been settled. In addition, the City has been advised that their
excess workers compensation policy with the U.S. Fire Insurance Camany will
not be renewed on 7/1X8 and their police professional will net be renewed
on its April 17, 1986 renewal date. Tilley asked that the Finance Director
write a letter to the Council listing the existing policies with expiration
dates attaching a copy of the letter Councilor Brown had from the Business
and Commerce Committee of the Legislature.
8. Review of Budget Proposals.
The City Manager gave the Committee a copy of a letter he had written in
response to Councilor Tilley's home in reference to the budget process. He
else gave than a copy of a letter from Adams Russell regarding an increase
in cable television rates. the Finance Committee is responsible for review
of the mesa and responding to the increase. Its Committee, agreed W most
with Mr. Clark of the local cable branch.
9. Northeast Combat Lemnest for Parkin Permits
Une Coammittee denied the request for six parking permits as requested by
letter from John Suprarovich W the City Manager. The permits have been
granted free of charge for several years now. The Manager will an indicate
the C amittee's decision W Mr. Suprarovich.
10. The Coundittee agreed W meet with Don white, representing .}udsen
Heights, on Friday, December 27th, W discuss An assessment on twenty -ore
unsold lots which are part of the original indenture stating assessments
will be paid after six years. Willey asked for a coq of the agreement.
Committee adjourned at 5:30 p.m