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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