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HomeMy WebLinkAbout2004-08-10 Finance Committee Minutes , FINANCE COMMITTEE � August 2, 2004 Minutes � Councilor Attendance: Farrington, Palmer, D'Errico, Gratwick, Tremble Staff Attendance: Little, Pellegrino, Mitchell, Caruso, Moore, Enman, McKay, Heitmann, Martzial � Others: Bangor Symphony Orchestra Representatives � 1. Executive Session — 1 M.R.S.A. Section 405 (6) (E) — Workers Compensation Settlement � A motion was made and seconded to go into Executive Session. A motion was made and seconded to go out of Executive Session. � 2. Open Session — Recommendation on Workers Compensation Settlement A motion was made and seconded to approve staff's recommendation. � 3. Consent Agenda ' A motion was made and seconded to approve the Consent Agenda. ' a. Quitclaim Deed — McKinnon — Center Street Property b. Quitclaim Deed —Thomas — 296 French Street c. Update on Cues Inc., Workout Agreement � 4. Bids/Purchasing � a. Fairway Mower — Golf Course — Hammond Tractor - $25,518 Palmer asked if there is a buyback associated with the purchase. Pellegrino said no, indicating that this piece of equipment has a long � life expectancy. Enman said the mowers last an average of 6-8 years. The current mowers are in the 1i-12 year range. Each winter, the mowers are maintained with new bushings, seals, etc. to extend the � life of the vehicle. The item is included in the current budget, and the Hammond Tractor bid came in approximately $10,000 under budget. A motion was made and seconded to approve staff's recommendation. � b. Upgrade Pump Drives and Controls — WWTP — Larkin Enterprises - ' $178,800 Pellegrino indicated that there were originally 5-6 parties interested in � this project, but only one bid was received. The bid has been reviewed by the City's consultants, and they have concluded that Larkin's bid price is reasonable. Moore indicated the budgeted amount � was $225,000. The current drive parts will be obsolete next year and will need to be replaced. Gratwick asked about the expertise and ' , track record of Larkin. Moore said Larkin has extensive experience with instrumentation in the areas of power plants to wastewater � treatments to water treatment plants. Both Moore and the City's consultant were satisfied. Gratwick asked about recourse if the City is not satisfied. Pellegrino said there is always a retainage amount, � which will not be released until the City is satisfied with the working performance of the equipment. There also is a warranty period. A motion was made and seconded to approve staff's recommendation. � The item will go to full Council for final approval. c. Training — Citywide — Safety Communications Corp - $21,345 ' Pellegrino indicated there are a number of training requirements for , the various City departments. BIA had gone out for a request for quotes. Because it was over $10,000, it requires Finance Committee approval. Mitchell said that as a result of recent environmental issues � there are some issues that need to be addressed for basic oil spills, HAZWOPER (hazardous materials/emergency response training), and confined space entry. Such training requires a high level of expertise. � The City currently has some outdated written programs that need to be updated to meet improved standards. In response to Tremble, Mitchell said that a confined space is any area that would have a , limited means of egress and could involve some type of engulfinent or hazardous atmosphere; i.e., a trench, a vault, a manhole. Mitchell , said the item in question is an initial training session to bring employees up to speed followed by annual refresher training. D'Errico asked if the training could be shared with the Air Guard. Mitchell said � the Air Guard has been approached, and there are areas the Guard would consider but other areas they would prefer to provide their own. Gratwick asked why, and Mitchell indicated it would be due to � liability issues. The training has to be done on actual sites, which would mean that City employees would be entering into confined spaces of the Air Guard. Gratwick asked if specifics could be worked � out on sharing training with the Guard. Mitchell said the training is specific to the confined space so that the responder has to train with the City employees in City locations. Mitchell indicated that part of � the process is to complete an inventory of confined spaces by Department. D'Errico asked if this would become an Airport budget ' item in subsequent years. Mitchell said that some dollars would come from his budget. Barrett said the Fire Department has separately trained for confined space rescue. The Air Guard has its own fire � department and their primary responders would be the Guard. The City would only become involved under the mutual aid agreement. The subject training on the agenda is for those employees who enter � into confined spaces. Barrett said the Air Guard has most likely performed this training but could perhaps join together for update training. Gratwick stressed the importance of working toward � combined training in other areas. Refresher training can be done in- , , house. The initial training is more difficult and requires expertise. ' D'Errico confirmed that the Council has recently approved a position for environmental compliance and assumed that this position would be responsible for managing the training. Tremble questioned the � three bids received and asked if the bid award could be split between the three bidders resulting in a savings for approximately $2,000. Mitchell said he would have to check with Rod Madden at BIA, who 1 had acquired the bids. Tremble suggested postponing action until that time. Given the City's scrutiny by EPA, Mitchell felt it should not be delayed long. Barrett said the bid could be awarded as , recommended with a caveat that if it could not be split it would be awarded to Safety Communications Corp. A motion was made and , seconded to approve the City Manager's recommendation. Gratwick talked about relying on references for performance of the bidders. Mitchell said they have to comply with the OSHA standards in order to � train. Safety Communications does training for the Air Guard and comes highly recommended. For future bids, Farrington suggested that staff check with bidders to see if services can be split. Farrington , repeated the motion made by the City Manager to have staff check into sptitting the bid award. The motion received an unanimous vote from the Committee: ' S. Review of RFP Process ' Council Chair Tremble had requested that the Finance Committee review the current request for proposals process used by the City, particularly in ' situations where the City is offering land for development. During the recent discussions regarding Union Place, concerns were raised by both proposers and members of Council regarding the up-front costs associated � with meeting the requirements of the RFP. He suggested that consideration be given to simplifying the initial stage of proposal submission to reduce the cost burden and make it easier for more parties � to express interest and to participate in the process, especially for development proposals. In the Union Place RFP process, Tremble said that one interested developer had invested $3-4,000. Barrett said there � are ways the process could be made simpler. One would be instead of going through an RFP process for development proposals, the City could do a Request for Qualifications and Concepts. McKay said one of the ' reasons the City goes through the RFP process is to give everyone a fair and equal opportunity to submit proposals. The nature of the RFP varies � dependent upon the development and site. He stressed that a base line of information is necessary in order for the City to assess proposals. McKay provided a listing of necessary information for RFPs: 1) the � developer; 2) the proposed development; 3) development schedule; 4) the developers experience and qualifications; 5) estimate of the development cost; 6) financial capacity of the developer to carry out the � development; 7) a development concept; 8) assessment of the public benefit from the project; 9) compensation offered to the City for the � development site; 10) developer's request for financial assistance from the , City; 11) the City needs to make sure the developer can meet certain City � site specific requirements. As an example, he reviewed developer information received from Bob Baldacci and Fred Foresley. Regarding the waterfront project, McKay said the Ciry did go through the Request for , Qualifications and Concept process. The City reviewed all submittals and then selected a group of developers from whom they wouid like development proposals submitted. The RFP set forth criteria that the City , would use to evaluate all proposals. Regarding the Union Place proposal, McKay said more information may have been required due to the size of the project and it is location on an important corner of the City. A very 1 similar RFP was issued for the Essex Street Naval Reserve site. Farrington I had previously met with McKay and had asked for a list of staff requirements prior to approving tentative developer status. The above , listing was in response to Farrington's request. D'Errico felt step 9 should be eliminated. He did agree with a two step process —the request for � qualifications and concept and then a detailed RFP. Tremble agreed with D'Errico. Tremble talked of removing 7 and 9. Gratwick asked about the phase 1 and phase 2 of the RFP process. McKay said typically a phase 1 , would be a request for qualifications and phase 2 would be submitting a proposal in a requested format. Barrett said the two step process would be acceptable with the caveat that it does depend upon the site to be , developed. Gratwick asked how the City issues RFP. First, the City issues marketing materials. Then the RFP is sent to known developers, members of the Maine Real Estate Development Association, builders, architects, � engineers, doctors, etc. Martrial said that the City sent out 50-55 for the Union Place project. Gratwick agreed in making the progress as simple as ' possible. He spoke about not having architectural drawings as part of the initial submittal. McKay said that some architectural firms provide the service pro bono in anticipation of being selected as the architectural firm � for the project. Palmer supported the two-tier process. Phase 1 should be very simpie with low or no cost involved. Developers should know up front what costs are involved with submitting a response to RFPs. � Farrington felt that design is important in the initial stages. The amount of compensation offered to the City is important as well. With the Baldacci/Foresley proposal, Farrington asked McKay how many of the 10 � points were included in this proposal. McKay said all. Farrington said that it has been suggested that numbers 7 and 9 be eliminated. Farrington said he assumed that any candidate could be considered during the first , phase and a competitor would be chosen at the end of the second phase. Tremble said he envisioned that a developer could be chosen in the first phase. Palmer asked about #10. McKay said there may be specific � criteria for specific projects. Under question 7, McKay said the City could ask for the basic information, evaluate the proposals received, and then � select 2-3 for interview and request more information at that time. In summary, Farrington indicated that there has been some concern with the full 10 items as staff as listed in tier 1. Palmer said it is important to know � the municipality in which the developer resides and works. Gratwick said � , staff could put together a draft of what has been discussed at the ' committee level and perhaps run it by some developers for their input. Tremble agreed. Palmer also asked that the process be very clear about deadlines. Farrington indicated that items 11 and 1Z had been added to ' the list, residence and working location of developer and the more specific deadline information. D'Errico said he still feels that item 9 should not be in tier 1 or tier 2, especially the second part of 9. Tremble agreed. ' Farrington went on record as saying that it is important to know if a developer is going to require financial assistance and, all things being equal, a developer requiring it is not as desirable as a developer not � requiring it. Barrett said most of this comes out in the negotiating phase. Gratwick said he is not concerned by the financial assistance aspect as ' most individuals know it is available. Pellegrino suggested that staff come back to the committee with a draft regarding the two-tier process; i.e. what it should look like, what it should contain, and the reasons why. A ' motion was made and seconded to request staff to come back to the committee with a draft two-tiered breakdown of the RFP process. , 6. Request for Funding — Bangor Symphony Orchestra Representatives of the Bangor Symphony Orchestra presented their � request for $30,000 in funding in support of Back to the River: A Musical Celebration of Bangor's Roots. Little said the Symphony has requested ' $30,000 ($25,000 in cash and $5,000 for in-kind services) from the City to help pay for a free world premiere at Bass Park this fall which will be the beginning of tour planned up and down the Penobscot River next year. ' The Symphony has been selected as Maine's representative in the Continental Harmony Project of the American Composers Forum that provided the BSO a grant that allowed them an in-residence composer. � The Premier will be free of charge to attendees and the total cost is approximately $60,000. The non-profit funding request form was signed by three Councilors, which brought it to the Committee level for discussion � and recommendation. The recommendation of the Finance Department staff is that, based upon the City's support of past programs and the recent budget process, the funding level be somewhat less than the � $30,000. Little said there was $5,000 budgeted by the Council specifically for reduced rates at Bass Park or for other City departments that need to use Bass Park. Any other amounts would be taken from the undesignated ' fund balance. Tremble was supportive of some level of City participation from the undesignated fund balance and the marketing budget. Gratwick � asked about the free tickets as opposed to some free tickets and others for sale. Palmer asked how many Bangor participants would be in the program and what are outside areas doing in terms of participating in the , funding. Susan Jonason and Sandra Leonard were in attendance and described the ' program. $45,000 has been raised from the National Endowment from the Arts and from two foundations. Half of that amount is for the Bangor � World Premier and half is for the other regions where the event will be , held. The premier will feature music written specifically for Bangor , entitled Symphony No.4, The Penobscot River. The Symphony wants the concert to be free. Leonard, a BSO Board member, said the BSO is the oldest, continuously operating community orchestra in the country. It was , organized in 1896 and has been self-sustaining. The Premier is a celebration of Bangor for its citizenry. In response to Palmer, Leonard said the World Premier at Bangor Auditorium will be for 3,500 seats. In , response to Palmer, Jonason said many groups would be involved including Bangor Symphony with 80-90 players, Universiry of Maine Singers, Bangor High School chorus making up 200 voices. Also the ' Robinson Ballet will be involved. When the Premier is taken to Millinocket and Bucksport,"there will be several hundred served. With the composer � in residence in Bangor for five weeks during the coming school year, there will be many Bangor students served. Gratwick is appreciative of the BSO's independence and the potential of the Premier. By granting a � lesser amount, Gratwick expressed it in no way reflected on the excellence of the project. Jonason said they are looking to the business community and have made 16 requests to date hoping to raise another $10,000. , The BSO is also working on a fundraising effort. In response to Gratwick, Jonason said that without City support the concert would not be free. Farrington talked about the bucket brigade such as used at the Folk � Festival. Tremble agreed with Gratwick's earlier comments that this is a difficult time with the pending tax cap proposal. Tremble made a motion to waive the $5,000 Auditorium rental fee for the Premier. The motion ' was seconded by Palmer. Tremble asked for the balance of the undesignated fund balance reserve. Little said the current balance is a ' little over $3.5M and $1.175M was taken out during the budget process. Barrett recalled that the City was within $350,000 of having allocated all of the undesignated fund balance that was available for expenditure. Due � to the City's policy, a certain amount has to remain in the fund. Tremble asked about marketing dollars in Economic Development. Barrett said that $77,500 was budgeted in marketing and broken out for a variety of , needs. Palmer expressed concern about the City Manager's involvement in the discussion due to his membership on the BSO Board. Barrett indicated that is correct and he only entered the discussion to clarify the � financial numbers. Tremble made a motion to support the Premier project with $15,000 to come out of existing line items in the budget such as marketing. Gratwick questioned the process. He liked Tremble's motion , but feels it needs to be balanced against other requirements and needs of the City. Gratwick said he would want to know where the dollars would � come from within the City's budget and what the trade-off will be. He suggested the item be postponed to the next Finance Committee meeting. Palmer seconded Tremble's motion. D'Errico asked if the BSO had � received any fixed numbers in terms of fundraising from the community. Jonason said they have received a $Z,000 sponsorship. D'Errico asked if the Chamber of Commerce members are involved and about the � availability of Airport marketing funds. Palmer shared Gratwick's concerns � , but is comfortable with the $15,000 and looking to other funding from the ' Airport. As an example, he stated that part of the Committee's challenge in dealing with the request is that $15,000 would represent property taxes on 7-8 homes in Bangor. Gratwick asked the BSO representatives if a � two-week wait would hinder the project. Palmer seconded Gratwick's motion to postpone the item. Tremble suggested the item be tabled for a week and be part of the Council's pre-meeting schedule on August 9rn ' Gratwick wanted to be sure it is discussed at a public meeting. Regarding procedure, Barrett clarified the item will require Council action and will , require an order authorizing the payment for the rent and an order or appropriation resolve for the actual funding. Unless a recommendation is made at tonighYs meeting, it would not be on the counci� agenda until , August 23. Gratwick made a motion that the item be tabled to one-week hence for a pre-meeting of the Council on August 9 and then to the full Council on August 23. Palmer seconded the motion. The motion � unanimously passed. ' , ' � � � , ' ' � 1 �