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HomeMy WebLinkAbout2003-03-05 Finance Committee Minutes 1 Finance Committee ' March 5, 2003 ' Minutes Council Attendance: Palmer, Farnham, Nealley, Greene, Allen , Staff Attendance: Barrett, Cyr, Pellegrino, Little, Birch, Drew, Moore, Stover, , Winslow, Wellington Others: Andy Sturgeon, Butch Foss, Bill Masters, Jim Allen 1. Consent Agenda ' A motion was made and seconded to approve the Consent Agenda. � a. Council Resolve 03-94, Accepting and Appropriating Grant Funds from Maine Historic Preservation Commission � b. Workout Agreement — Young & Poisson — 142 Holiday Park 2. Bids/Purchasing , a. Color Copier— Central Services — Imagistics International $19,656 (36 Month � Lease). The copier will be used for promotional brochures for Community and Economic Development and the Airport and potentially The Folk Festival. It is a heavy-duty machine capable of producing thousands of copies and will � also be available to any staff member throughout the City for color photocopies. Staff completed a comprehensive review of proposals received. Annette Stover of the Central Services staff performed a thorough review of ' the performances of the three copiers. The recommendation for Imagistics is for $400 a month and 15¢ per copy and local color copies are in the area of 40-50¢/copy. Nealley asked about the need for color copies when the City � has outside marketing firms. Stover had conducted a survey among City departments and the estimated color copy needs are 5,000/month, which include current needs as well as future needs if a color copy were available to ' the City. Barrett said that sometimes the marketing firms will provide a copy ready mock-up brochure and then the Ciry pays a high price for the printing. ' A motion was made and seconded to approve staff recommendation. b. Non-Metallic Collection System Components — WWTP — Ecesis LLC - $9,235 & , Lane Supply - $767. This item had been referred from the last Finance Committee meeting. Committee members questioned the split of purchases between two vendors. Moore explained that in buying this equipment for the � primary clarifier the components that are connected together by a chain and special link in the chain. He recommending purchasing all items from the same manufacturer due to problems in the past when purchasing piece by � piece. The pieces do not always line up properly. Staff recommended purchasing the chain from the same vendor. The seal would be purchased , � � from another vendor because it is not an integral part of the chain. A motion was made and seconded to approve staff recommendation. � c. Electrical Enclosures — Community Development — G.E. Supply Co. - $17,767 ' These four items are for the riverfront development project. They will be constructed of stainless steel and painted green. The enclosures are 3 x 5 ft and will be mounted on the ground with shrubs around them. A motion was � made and seconded to approve staff's recommendation. d. Asbestos & Hazardous Waste Removal — Community Development — � American Abatement Inc. - $31,900. This is for the waterworks project. A motion was made and seconded to approve staff's recommendation. � e. Request to Waive Proposal Process for Towing Services Contract. The City currently has a contract with Union Street Citgo for towing services and has had for many years. The services are primarily for the Police Department. ' Staff's recommendation is to extend the contract for another 3-year period with Union Street Citgo. RFP's were issued three years ago and no others ' were received at that time. Since the agenda was put together for this meeting, a Hampden business has indicated they would like to have made a proposal to the City. He, however, does not have an impound lot and he is � � negotiating to purchase one on Godsoe Road. He cannot fulfill current requirements without the lot. Pellegrino said the options are to renew the contract for a 3-year period, for a shorter period, or simply go out for ' proposals now and remain on a month to month basis with the current provider. Nealley didn't feel it was critical to go out to bid each time as long as it done on a somewhat regular basis. The Hampden business has 4-5 ' towing vehicles. The current impound lot is grandfathered in terms of zoning requirements. The Godsoe site is not currently zoned for vehicle storage but easily could be as it is in an industrial site. Farnham asked if other cities own / their own impound lot and wondered if this was preventing other businesses � from participating in the bid process. Winslow said the main reason he , prefers not to have an impound lot is that a number of vehicles towed remain unclaimed because value doesn't equal the amount of the tow charge and the storage fees. The Chief has checked with other police chiefs who house ' vehicles at their stations and most do not recommend it based upon their experience. Those communities end up paying the towing fee after a certain period of time to dispose of the vehicles. At accident scenes, the individuals ' are asked their preference for towing service and, if none is stated, Union Street Citgo is called. Farnham indicated there is a lot of business to be had for this type of service and perhaps it could be split between two businesses. � She doesn't want the lack of an impound lot to be a disqualifier. Winslow said the department has enjoyed a good working relationship with Union Street Citgo since 1981, they have a convenient impound lot location, have 14 tow , vehicles which provides a timely response, but he would be supportive of working with another business that is capable of providing the same service. He would adamantly oppose multiple agencies providing the towing service. ' He cited other communities have worked with a rotating wrecker service list ' and it causes problems. Nealley spoke if favor of the competitive bid process � so that there is always someone else who has an opportuniry. Allen agreed with Neailey but does support the contract going to one primary agency. 1 Greene felt the Committee needs to be mindful of the fact that the current provider has 14 vehicles and probably has that amount due to the City's � contract. Union Street Citgo has made a significant investment due to the City's contract. At this point, Greene feels that Union Street Citgo is prepared and other agencies have an interest but are not in a position to actually enter � into an agreement to provide the level of service. Palmer said he doesn't know what other agencies are available and, in fairness, felt it appropriate to put the service out to bid. He stressed he has no problem with the current � provider, who provides an excellent service. In looking at competitive bids, Nealley said the committee looks at the quality of service and the where withal to commit to the situation. He said that a low bidder should not be � chosen if not able to commit. Palmer said that is why the City has a Purchasing Agent and the Committee looks at a variety of issues not just the lowest number. ' Pellegrino said he has not problem with issuing a RFP where cost would be one part of the consideration and who would give the City Yhe most money , for the annual privilege of having the exclusive towing contract. Palmer again stressed the great service provided by Union Street Citgo but in fairness � everyone should have a shot in the process. Farnham talked about a new impound lot having to be on the fringe of the City according to zoning requirements. Pellegrino said that even if the bid went to another business , with an impound lot the current impound lot would still be at its current location for Mr. Foss' use. Farnham talked about the number of tow trucks needed for the contract, and Foss said that 14 trucks were not needed for the , City's contract. He said 6-7 would be needed to properly perform the service. Nealley asked how many years the Hampden business has been in business, and Pellegrino said he estimated 5-6 years. Nealley agreed with Farnham � that if a business doesn't have an opportunity for the City contract it doesn't allow them room to grow and to have financing in place. He would rather see the impoundment lot in an industrial park. ' Cyr said the contract could be extended for one-year and, if in one year, the , other interested parry is able to move forward with the land purchase, zoning, etc., there would be a more viable choice available. Nealley asked the number of cars impounded that are under the City's contract. Foss said � approximately 75-80%. Farnham had received a call from the Hampden businessman who was unable to attend the Committee meeting due to towing commitments. If he had the contract, he would be willing to move his � business into Bangor. Allen made a motion that the current contract be renewed. Nealley seconded , the motion. Farnham doubted the motion. She did ask that the contract term be shortened. Palmer asked for a roll call vote: Allen, yes; Nealley, yes; ' ' � Farnham, no but put a motion on the floor to amend the contract term; ' Greene, yes; Palmer, no. The motion was passed 3-2. 3. Request for Support — Bangor Eastside Little League ' Representative(s) of Bangor Eastside Little League presented their request for City support for parking lot improvements. BESLL is seeking approximately � $5,000 in funds to pave the current parking lots, thereby reducing on street parking. BESLL has a complex at the end of Forest Avenue. They are asking that the $5,000 be included in the City's ne� year's paving program. Lane / Construction has agreed to fund half of the cost of the paving if the City will also participate. Andy Sturgeon, Bill Masters and Jim Allen updated the Committee on improvements made to the complex estimated at $250,000, which was all � done by private donations. The paved parking lot will reduce on street parking. Farnham stated that her husband is president of the West Side Little League program and wondered if it presented a conflict for her. The Committee ' determined no conflict existed. Barrett talked about donations to non-profit organizations but did express his support for the proposal, in particular, as it will � benefit the area at a relatively minor cost. Nealley asked about the private donations and where the City's contribution would come from. Cyr said that if the Committee approved it would be included as part of the Ciry's paving program � for this spring or for FY04. Tremble had called Farnham prior to the meeting regarding the use of stone dust for this project area. Barrett talked about the appearance of stone dust as well as tracking it out onto the street. It rainy ' weather, it creates mud. Barrett recommended pavement. A motion was made and seconded to approve the $5,000 to the Bangor East Side Little League for the paving project. Greene supported the contribution. ' 4. Assessor's Update � The City Assessor updated the Committee on the real estate assessment process for FY2004 and reviewed materials he had provided to the committee in ' their agenda packet. The housing market should remain healthy according to predictions. Bangor real estate sales activiry has increased 5.7% from 2001 to 2002. Overall valuation increase from the proposed changes to the residential ' land and building values is estimated to be at $33,000,000. The overall valuation increase for commercial properties is estimated at $11,000,000. Birch talked about supply and demand and indicated that Bangor has had a scarcity of , the number of residential developable blocks available. As of December 2002, there were 54 lots available with the majority being held by the developer to build their own homes. There are some developers who have started the process ' to add to the housing inventory. Judson Heights has preliminary plans to add 57 lots. Birch reviewed a draft letter prepared for Bangor taxpayers regarding a change in value to their property. If approved, the letter will be printed on the ' backside of all individual tax bills. The average residential home tax rate will go up 3% but the condos will go up about 6%. Bangor will not reach the 95-100% ' window but on the threshold. Assessing Department staff has prepared a power point presentation for upcoming fiscal year and asked for permission to use it on , the government access channel. Paper copies of the presentation were provided � to the Committee. Nealley expressed concern about reaching the 100% valuation and the Council being forthright at budget time when discussing the ' mill rate. Barrett said that he and the Assessor have had the same conversation the past two years when looking at the increases and have tried to not push it to , the 100% level recognizing that this is a somewhat unusual period so that when housing and interest rates change the City doesn't come back two years from now and realize that decreases in valuation need to be made. Greene agreed � that education to the taxpayer is necessary. Greene asked about the valuation increasing and the quality rating is decreasing. Barrett said it is based on last year and the State determined that the adjustments made last year were not � sufficient in terms of moving the City's percentage of market value up. Greene asked about the quality rating of 18 for business properties. Barrett said the current rating is not totally based on the percentage of market value. It is also a � method of standard deviation. The quality rating measures not only how close you are to market value but how consistently close you are by property. The higher rating would indicate that in commercial business properties there is more , variability in the ratings. Barrett said the largest properly taxes increases were in the early 90's. Since then, the property tax rate has been relatively stable and � up until the last three years haven't seen much increase in residential property value. In response to Nealley, Barrett said information could be provided to show the median over time. Alien agreed and talked about retired individuals on a � fixed income. Barrett said many qualify for the State circuit breaker program but do not apply. Palmer mentioned that this meeting was being broadcast live and a good means to get the information out to the taxpayer. Nealley asked if a , reminder for the Circuit Breaker Program information could be printed on the tax bill. 5. Executive Session — Hardship Abatement , A motion was made and seconded to go into executive session for both item 5 � and 7. 6. Open Session — Hardship Abatement Decision ' A motion was made and seconded to approve the abatement. , 7. Executive Session — Hardship Abatement , 8. Open Session — Hardship Abatement Decision , A motion was made and seconded to approve the abatement. ' , �