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HomeMy WebLinkAbout2001-12-19 Finance Committee Minutes � Finance Committee ' December 19, 2001 Minutes , Councilors Attending: Tremble, Farrington, Palmer, Nealley, Farnham � Staff Attending: Barrett, Cyr, Pellegrino, Dyer Others: Representatives of Runyon, Kersteen and Ouellette 1. Consent Ac�enda , a. Extension of Workout Agreement— 224 Forest Avenue ' b. Extension of Workout Agreement — Various Accounts c. Extension of Workout Agreement — Lot 15 Pray's Park ' d. Workout Agreement— 27 Crestmont Road A motion was made and seconded to approve Consent Agenda items. , 2. Bids: a. Asbestos Removal-Naval Reserve Center-Asbestos Abatement of Maine , 5� 8,900 Committee unanimously approved staff's recommendation. I b. Floor Drain-Airport-Ouality Contracting Corporation-�14,480 � This project involves the installation of oil-water separators and associated drainage in Building 457 at BIA. The installation is required by the DEP. The Committee unanimously approved staff's recommendation. � c. Boiler System-Bangor Auditorium This item was added to the agenda. , Dyer indicated there are two leaks in one of the condensate return lines. In addition, the existing vacuum pump system is not functioning properly � resulting in the loss of additional condensate. Staff is proposing a short- term fix to the problem of using too much City water in the makeup water tank (approximately 2,100 gallons in two days at one point last week) ' which is causing corrosion in the lines as well as the boiler. There is $20,000 available in capital funds and Dyer estimates this project to be , $13-15,000. Dyer had discussed this at the recent Business and Economic Development Committee, which approved his recommendation. In response to Tremble, Dyer said that in-house staff arrived at the short- ' term fix proposal. r � ' , The Finance Committee recommended approval to hire a contractor to do the work on an emergency basis. , c. Request to Waive Bid Process-Thermal Imaginq Cameras-Fire , This item was removed from the agenda. 3. Presentation of the Annual Audit � Presentation of the City's Comprehensive Annual Financial Report was made by � representatives of the City's independent audit firm of Runyon, Kersteen and Ouellette, for the past five years. Copies of the report were distributed to the Council prior to the meeting, and a copy will be on file with the minutes. The � City will soon be applying to the Government Finance Officers Association of America for its fifth Comprehensive Annual Financial Report. The City has received four CAFR awards in a row. RKO reported that the City continues to � maintain its excellent financial condition. RKO representatives expressed appreciation for and commendation to the City's Finance Director for her capable and professional working relationship. � 4. Selection of Underwriters , Cyr met with the City's financial advisor and the Ciry's bond counsel on Friday. They discussed issuing a pension obligation bonds to take out the liability owed , on Maine State Retirement. It could be done through a negotiated sale versus the general obligation bonds which are done on a competitive sale basis. Staff recommended that three underwriters be hired to work on this. UBS Paine ' Webber would act as the senior manager at 40%. Gates Capital would be appointed as co-manager at 40%. Quick and Reilly would be an underwriter at 20% of the issue. This will the first time the City would insure an issue which ' would put the City's rating to a Aa Paine Webber will set the pricing at $4.97 takedown on each $1,000 of bonds issued. Also added will be $.59 of expenses per $1,000. It will cover Paine Webber's legal expenses. 50 cents for every � $1,000 bond issued goes to the undenvriter, 40% to Paine Webber, 40% to Gates Capital, and 20% to Quick and Reilly. The remaining $4.47 goes to whoever sells the bonds. The fees will be over $100,000, which will be rolled t into the bond issues. On an upcoming Council Agenda, there will be a Order that will authorize the pension obligation bond which includes the underwriter portion , as well. Committee approved staff's recommendation. , As another update, Cyr indicated she attended a recent meeting of the Children's Museum Finance Committee meeting. The first principal payment has been ' ' ' made to the City as well as some e�ra. The Museum's committee is considering ' to start paying down on the note each month. � , � ' � , � , � ' , � ' ' , ' ,