HomeMy WebLinkAbout2004-11-01 Finance Committee Minutes '
FINANCE COMMITTEE I
November i, 2004
Minutes ,
Councilor Attendance: D'Errico, Palmer, Farrington, Gratwick, Allen '
Staff Attendance: Cyr, Hupp, Barrett, Caruso, Pellegrino, Dawes,
Heitmann ,
Others: Strachan, Suletzki
1. Bids/Purchasing ,
a. Rock Salt — Public Works — Harcros Chemicals, Inc - $204,750
In response to Gratwick, Ring spoke about the corrosive action of salt '
on concrete. Palmer asked about pre-purchasing for future cost
savings. Pellegrino said the City does pre-buy. The current storage
facilities (approximately 5,000 yards) at Public Works are at capacity '
with the $37/ton price. A motion was made and seconded to approve
staff's recommendation.
b. Front-end Loader — Motor Pool — Nortrax - $134,500 '
A motion was made and seconded to approve staff's recommendation. '
The item will be going to the full Council on November 8, 2004.
c. Aircraft De-Icing Truck— Airport — FMC Technologies - $282,825 '
A motion was made and seconded to approve staff's recommendation.
This item will be going to the full Council on November 8, 2004.
d. De-Icing Fluid Collection System — Precast — Airport — American ,
Concrete Industries - $236,952
A motion was made and seconded to approve staff's recommendation. '
This item will be going to the full Council on November 8, 2004.
e. Runway Deicing/Anti-Icing Fluid Contract — Airport— Clearway LLC - '
$108,400
Earlier this year, a contract for this product was awarded to Old World '
Industries of Northbrook, Illinois. Recently, this company indicated
that they would not be able to deliver to Bangor due to a shortage of
available trucks to service this business. Staff reviewed the other bids ,
that were received in August and recommend award of a three-year
contract to the third low bidder, Clearway, LLC of Newark, New Jersey.
This company provided runway de-icing fluid to the airport for the past six �
years and provided excellent service. Clearway's bid was slightly higher
than that of the second low bidder. However, their delivery time is
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� shorter since Clearway is located in New Jersey and the second low bidder
is located in North Carolina. Since delivery is sometimes critical to the
' operation of the Airport, the slightly higher price is considered worth the
additional annual cost of approximately $1,600. The Air National Guard
reimburses the Airport for half of the actual cost of the de-icing fluid that
, is used. A motion was made and seconded to approve staff's
recommendation. This item will be going to the full Council on November
' 8, 2004.
f. Discussion of Lease with E�oconMobil Aviation
' During budget discussions, Hupp indicated there was discussion of the
possibility of extending the fuel hydrant system to the area where
transient military aircraft is parked. The area is currently is under
' reconstruction with Department of Defense funds through the Air National
Guard. During the reconstruction, she felt it was an appropriate time to
extend the fuel hydrant to that area. Currently, the area has to be fueled
' by truck. E�oconMobil is willing to pay for that project in exchange for an
extension of their lease. E�oconMobil has been a longstanding partner with
BIA. The expansion of this system will allow the Airport to fuel more
' transient military aircraft and generate new revenue. The cost of the
projed is approximately $430,000. E�oconMobil has agreed to pay the
' cost of the hydrant system in exchange for a five-year lease e�ension
with a five-year option to renew. Howie Strachan of E�oconMobil
addressed the Committee. A motion was made and seconded to approve
, staff's recommendation. This item will be going to the full Council on
November 8, 2004.
� g. Fuel Truck Containment Building — Airport— ).M. Brown - $360,000
Hupp explained that recent changes in regulations adopted by the
Environmental Protection Agency will require the City to construct a fuel
, spill containment system capable of handling fuel spills or leaks from the
dozen or so aircraft refueling trucks that operate at BIA. When initially
reviewed by the Finance Committee, staff anticipated that the cost of this
, project would be split 50-50 with E�oconMobil Corporation. This was to be
done in conjunction with a second project to extend BIA's fuel hydrant
system to a portion of the heavy-duty ramp frequently used by transient
� military traffic. Since then, further discussions have taken place with
E�oconMobil. As a result, the Airport and EbconMobil have agreed to a
' different arrangement where the City will fully fund this project and
E�oconMobil will undertake the fuel hydrant extension project in return for
an extension of their lease. The Airport has budgeted $362,000 for both
, projecks. As a result, funds are available to proceed with this building. A
motion was made and seconded to approve staff's recommendation. The
item will go to full Council at its November 8, 2004 meeting.
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h. Fuel Price Update '
Pellegrino said the City has not locked in to a price for #2 fuel oil and
diesel fuel. In discussions with Irving Oil, Pellegrino said that Irving ,
indicates that the supply does not support the price. He feels the City
needs to wait to see what the market will do and he does not suggest a
lock-in. Staff is working with City departments on conservation efforts in '
terms of operation of vehicles and in heating of buildings. As a new
measure, Barrett said that departments would be surcharged for the cost '
of vehicle fuel. Currently, it is covered out of the Motor Pool's budget.
The additional mark up that the city is paying over budget will be charged
to the departments to provide an incentive to more carefully track vehicle '
fuel and heating oil usage. Palmer suggested conservation efforts are
prudent at all times and not just in response to increased fuel prices.
z. Council Resolve 04-327, Appropriation from Airport Reserves to '
Fund Agreement with Intrac, Inc.
Rainer Suletski, President of Intrac, Inc., indicated that he is withdrawing ,
his request.
A motion was made and seconded to adjourn the meeting at 6:00 pm. '
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