HomeMy WebLinkAbout1994-05-16 Finance Committee Minutes Finarbce Ccarmittee
May 16, 1994
Minutes
� Ccarmittee N�nibers Present: C. S�llivan, Chair, D.
SoucY. P. B1anClyette,
G. Baldacci, J. Tyler (sitt:ing in W. Cohen)
Council N1�nbers Present: C. Po�ppp.r.
Staff Present: E. Barrett, J. Quartararo, D. Pellegrino,
E. Stiunpfel, R. Mislwu, J. Ring, A. Stockus,
Asst. Chief WP.�ib, T. Corbett, M. Perry,
T. Holbrook
Othexs Present: Bang�or Public Works: C. Tueh�x, D. Pardilla,
A. Iarson, M. y�lood, N. Wood, D. Rydex
AFT/Bangor: R. Ferrell
A+ Cleanisig: J. Landry
Central Me. Cleaning: M. McCue, K. NlcC�ie
Sawyer Erivimrnrn�ital Services: P. Strauch,
WVII reporter and caariera operator
Nleeting was called to order at 5:05 p.m.
1. Cauncil Resolv�e 94-212 - Appropriation Within the Fire Department for
Parchase of Jaws-of-Life
• Quaxtaxaro presented ite�m which is a referral frcan City Cauncil.
P. Blan+chette moved rec�ndation to City Council for appraval of Gounail
Resolv+e 94-212. Second+ed by G. Baldacci. Passed.
2. Coun+cil Order 94-213 - Transfex £rcen Continc�ency to Voter registration
for Postage
Quartaram presented ite�n which is a referral frcBn City Council.
D. 5oucy maved rec�ztion to City Council for appraval of Caunci.l
O�dex 94-213: Seconded by P. Blanchette. Passed.
3. Appoin�tment of City Auditor for pexiod ending June 30, 1994 (FY94)
Quartararo presented it�n ari,d reviewed. material in packet. G. Baldacci
questioned auditor's camients con,ceriing extra h+ours required after Jan.
lst, during tax season. Quartararo responded that current year data is
being uploaded to new ca�nputer systesn, and if th+e new sy5tesrt functions
better than the old syst�n, staff prociuction of fir�n�-ial stat�nents and
closing entries shpuld be m4re timely.
D. Saucy mav+ed rec�ndation City Council to appoint Brantnex, Thibodeau
& Associates as City Aud.itor for the pPxiod ending June 30, 1994 (FY94)
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and to enter contxact rv�t to e�ceed $39,000. Secor�ded by G. Baldacci.
Passed.
• 4. RFP - Garbage Collection
RlIIg gav+e a presentation ccariparing the a��nt costs and savings to the
City if it wn.re to contract with Sawyex Envirornr�ital S�rvice for either
partial or full pick up of City garbage, or to use a s�ni.-auto�nated
collection pirocess.
Base City cost for fiv+e years .... . . $ 1,242,090
Base Sawyer cost for five year ... .. . . 1,225,925, savings est. $ 16,000
Sawyer Alt. #1 (1/2 city) plus City
cost (1/2 city) for fiv+e years ..... . . 1,248,106, cost est. $ 6,000
Sawy+er Alt. #2 (s�sni-auto) fiv+e y�ars 1,137,305, savings est. $ 5,000.
Discussion cor�erning irbclusion of City capital costs, depreciation of
$39,000/y+ear was included as a City cost. Urxl,er the se�n.i-auto�nated
alternate, cost of the special bins would be $350,000 to $400,000 ($50 to
$60 each), and at the erbd of 5 years only half the value of the cont.a�nP�
wr�uld be paid and Sawy�r wauld retain a�mership of the conta�nP�. The
effect of a full privatization would be the loss of 6 jobs, 2 are vacant,
which would mean the layoff of 4 e�layees.
Questions vuere rai.sed about th+e use of special contair�rs for
s�ni-auto�nated pickup. P. Stxauch (SES) respond,ed that video had be�n
pravided to Public Works regandi.ng operation, and smaller cont.a�nP� could
be used. Also, if bags were put aut with the container, would arrange to
have driver pic}mp th+e e�rtxa bags.
• G. Baldacci question,ed City Solicitor con,cerning enforceability of "Y�ld
hannless" clause, and wheth�r an injured party could still sue the City.
Solicitor responded that injured pa.rty could sti.11 sue the City, but th�e
contractor would hav+e to make the City whole, but the City would still
have to answer any suit fi.led. Anything can be put in a contract, ttve
problem is enforcing that contract if t1�e contractor were to c� aut of
busin,ess. Solicitor cloe see potential probleqn of p�iblic ccenplaints being
directed to Public Works, which puts an added aciminis�ative cost of the
City.
D. Soucy noted that he did r�t see sufficient savings to justify changing
the method the City is using to collect garbage.
P. Blanchette n�oted that sh,e has serious concerns abaut a private
contractor, and she has great pride in PWs �nployees. Concerns includ+e
loss of fleet und�r alt�xnates 1 and 2 and how the City wvuld respond if
the contractor was r�t acceptable and th,ere was rbo fleet available to the
City. Mpst of �nplcyyees are resiclents of Bangor.
P. Strauch responded that road to privatization is not an easy road,
although th,�re i.s e.xperience thraughout the country. SES has nev+Px
defaulted on a contract. SES has over 100 �nployees wh,o are resicYent of
the Greatex Bangor Area. SES irncluded alternates 1 & 2 as options for th�e
City. Agrees that Alt. #2 goes too far into th,e future. Base bid was for
full privatization, and Alt. #1 pravic�es best of both worlds -- City and
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contractor pick up. Contract can be structured to allaw a tp��n�tion of
the contract before the agreed date. SES has the sa�r� concerns about
capital equignent, and applies industry standard of 5 year d+epreciation.
� SES mainten�nce and fuel costs are greater than the City, therefore if he
were d�oing th,e profonna, he wr�uld est�mated a $90,000 savi n� to the City.
G. Baldacci agreed wi.th P. Blanchette and D. Soucy. thexe are not
significant savings to change current method. City does a pretty good
job, and gnplayees are dedicated.
J. Tyler c�nted that he was ner�rous about Alt. #1, and the City being
able to opt out aftPx or� year. Strauch stated that SES has sa�ne concerns
and is wi.l.ling to pravide joint aan+�xship of equigr�it transfer equipment
if City opts out. J. Tyler nc�ted that City can not rush into
sc-sniauto�natic piclaap. N1pre concrete effort and plarLn;nq i.s needed. Can
not support privatization now.
C. Sullivan noted that Y�e did not sup�ort privatizing.
CaYmittee noted consensus to not proceed.. Barr�tt reccamrn.�vded ager�da it�n
to City Council with recatmer�dat:i.on nc�t to proceed with privatization.
G. Baldacci moved rec�ation to City Council to n�t to proceed wi.th
privatization of garbag+e collection. 5econded by D. Soucy. Passed.
5. l�uiway l�bber Deposit Rc�m�val - Airport Depar�r�xit
Pellegrino presented recammendation to award contract or rc�m�val of rubb�x
� markings at the Airmrt to Accent Stxipe, In�c., Orchard Park, NY for price
of $10,000. Thi.s is an annual contract and th,e v�xidor's cost is 1/2 or
less of other ccarrpetitors because they use high pressure action. Contract
cost is split 50:50 with Air National G�ard, th,�refore City's net cost is
$5,000.
P. Blanchette maved reco[miendation to award contract or r�mval of rubber
markings at th,e Aixport to Accent Stripe, Inc., Q�chard Park, NY for price
of $10,000. Seconded by J. Tyler. Passed.
6. Relocation of Condenser Units for �a�n�� Building Air Conditioning
Pellegrino presented rec�ation to award various contracts to
subcontractors to relocate air conditioning condenser units fir the
'j��inal ,;��q for total costs of $26,276. Thi.s will be an added cost
in the ongoing claim against Leo A. Daly. City will contract directly
with the subcontractors. D. Saucy abstained due to a conflict of
interest, his nephew awns one of the ccarq.x�rLies being contracted.
P. Blan�chette maved award. of contract�srs for relocation of air
conditioning condenser units at the fie.rnL��� Building to; Main+e Enexgy,
Inc., Bangor $12,500; Northern Maine Construction, Bangor $12,196; Roof
S�istFsns of Maine, Bangor $1,250; and Honcyw�ll, In+c., Portland $330 for a
total of $26,276. Seconded by J. Tyler. Passed 4:0:1.
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Voting Yes: G. BaldacCi, P. Blanchette, C. S�llivan and J. Tyler.
Voting No: None.
Abstained: Soucy.
• 7. Custodial Service - BIA
Pellegrino rv�ted that Airport Dirnctor Ziegelaar is out of tawn, bn�t that
m�rn froan Director is ir�luded with packet. Staff continues to rec�d
A+ Cleaning, l�t will accept direction of the Co�rmittee and Coun�cil and
negotiate contract with Rivpx City if directed. Sin�ce the last meeting,
A+ has agreed to p�r�vide scare health care benefits to �nplayees, at
additional $13.00 pPx day cost to contract. He�nefit i.s a 50:50 split
between emplayer and eqnplayees. Additional cost to the contract i.s abrnit
$5,000 annually.
P. Blanch,ette stated that she stands by her original stat�nt that
P�*-�-�Ge in cleaning closed secure office is different tha`��cleariing an
apen and operating facility, and she stills reccermends River City.
D. Soucy supports staff rec�dation to award to A+ Clear�ing. Contract
was put aut to bid. If th�re i.s a change in health care require�r�ents, the
contract award would stand and contractor wr�uld absorb additional cost.
Savings $50,000 is not a smal.l a�mmunt of money. The City w�uld mak,� a
miStak,e if it did not accept the law bid and bypassed tY� oth�r three
bidders wlw are lawpx than the current vendor.
J. Tylex stated support for D. Saucy. Wh�n. ca�tnittee revi�wed th,e garbage
collection, questions w�re nc�t raised about health ben�fits for
• contractor's e�nplayees. Saving� $50,000 is not a small a�mmunt of money.
Ziegelaar's n�sno states that "In tenn.s of quality, staff rated A Plus,
Service�naster and River City at equal levels", haw did staff rate th+�m
equal? Pellegrino respond+ed that there was an excellent presentation,
refer�nces were all c�ood, all responc�ents can pravide the saarie level of
sexvice, and while A+ has �t dc�ne airports it has o�ther large clients and
i.s capable of pravid:ing the service.
D. Soucy questioned Solicitor regarciing problans which may arise cbue a
deviat:i.on f�ren the RFP without a substantial change in the RFP. Solicitor
responded that City had reserved the right to reject any and all proposals
withput recourse. Second, price was rwt the sole critexia. Whe.re the RFP
does rvot weight the criteria, each criterion is weighted equally.
Finally, he does not expect legal action against the City frcgn award.
C. Sullivan question�ed wh+eth�x respondents provi�e a d,�rbnstration of
their clean:ing work? Pellegri.no responded rw. C. Sullivan questioned wlw
had pravided referen+ces? Pellegrin,� respond,ed that th,e ver�clors did. C.
Sullivan questioned whether the stability of th,e vendors had been checked,
and if Purchasing Agent would be ��mrised if on+e ccanpany had gon,e out of
busin+ess s�v�ral times? Pellegrino responded yes.
G. Baldacci questior�ed the legal concerns of Rivpx City mentioning at the
Council meeting that it wr�uld lawer price? Solicitor responded that wauld
be unfair to allaw River City to amen�d its proposal ,after all proposals
are on the table. Council may consider experience of proposers and
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dete�nin+e how valuable that experience is. A+ would be at a di.sadvantage
during a transition as it becomes accustamed to airport scheduling, and
goes through security. ScY�eduling is especial.ly uriportant when th�re are
• divpxsions to Bangor due to oth�x ai�rt closings and quick response is
need,ed.
K. NlcCue (Central Maine Cleaning) coer�r�nted that he was surprised that
their references were not in the top 3 because th�y do irast of the New
England �elephone office and that h:i.s coampany had not closed 8 times. He
is eager for the contract and spent many hours working on the proposal, if
A+ wc�n on price it should be awarded. If Rivex City wants another charbce
then all custariers should be reference checlfled so that all proposers have
a fair shot at winning the bid.
D. Saucy moved to accept rec�rnx�ation of staff ar�l rec�nd that City
Council award custodial services contract to law pmposer A+ Cleaning,
Auburn. Seconded by J. Tyler. Failed 2:3.
Vot:ing Yes: D. Soucy and J. Tyler
Voting No: P. Blanchette, G. Baldacci and C. S�llivan
D. Saucy mav+ed that return itc�n to full City Council for consideration and
award of contract. Seconded by J. Tyler. Passed 4:1.
Voting Yes: G. Baldacci, D. Soucy, C. Sullivan and J. Tyler
Voting No: P. Blanchette
8. Pu�nchase of Iandfill Caver Matexial
• Ring presented it�n. IAu Silvpx Inc. has �+�rnlus material available which
would be usable as lan,dfill caver matexial for price of $1.00 per sq. yd.
cbelivered. There is about 15,000 to 20,000 sq. yds available. Last year
the Coun+cil agreed to pay Bangor Hydro $2.50 sq. yd for similar materia].
but it was not available.
P. Blanchette mav+ed appraval of purchase of 20,000 sq. yds of caver
material for the landfill fro�n Lou Silvex, Inc. at $1.00 per sq. yd
delivex�d. Seconded by G. Baldacci. Passed.
9. Bids
a. Tires, Tubes and S�rvice (City Wide)
Pellegrino presented itFsn and nc�ted that there was an exror on the bid tab
sh,eet when this was presented at th,e last meeting. Rec�rvded award
contract to av+Pxall law bidd�r FreightlirvPx of Maine, Inc. Bangnr for
estimated price of $64,916.71.
D. Soucy mav+ed awand of contract to overall law bidder Freightliner of
N�;*�, Inc. Bangor for estimated price of $64,916.71. Secorided by G.
Baldacci. Passed.
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b. Painting Buildings 270 and 272 (Ecor�ic Development)
Pellegrirv� presented rec�ation to award contract to law responsive
. bidder Clarkson Interr�ational, Augusta for price of $6,725.00.
D. Soucy maved award of contract to law responsiv+e bidder Clarkson
International, Augusta for price of $6,725.00. Seconded by G. Baldacci.
Passed.
c. Decorativ+e Stre�t Lights (Engin�xing and Ccer�minity D�velogr�nt)
Pellegrin� presented rec�ndation awarci contract to law bid�c3ex �;l,,,an
Electxic, Bang�r for price of $1,654 each.
D. Soucy maved aw�arod of contract to law bid�x Gi]man Electric, Bangor for
price of $1,654 ea�ch. Seconded by G. Baldacci. Passed.
d. Aexial Bocen Truck (Ntotor Fool)
Pellegrino presented reccem�endation to award cantract for altexnate bid to
Ja�ries Kiley Co�rrparYy, Sarnaville, N� for price of $95,334. Alternate bid
is for a d�nstrator vehicle with m4re options than speced, and delivery
in 2 we�lcs versus 6 - 12 month d�eliv+�ry
G. Baldacci maved award contxact for alternate bid to James Ki.ley Ccanpany,
Sc�nezvi.11e, N�i for price of $95,334. Seconded by P. Blanchette. Passed.
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� e. Stainless Steel Wear Rings (Wastewater Treatlrient Plant)
Pellegrino presented recar�r�ndation to award contract to sole bid+d,�x
Hisco, Inc., West Flartford, GT for price of $6,424.
D. Soucy mav+ed award contract to sole biddPx Hisco, Inc., West Hartford,
CT for price of $6,424. Seconded by P. Blarnchette. Passed.
9. �IVE SESSIO�T: Worlaer's Cce�ensation (3 cases)
D. Saucy mav+ed to go into Executive Session to review three wr�rker's
cceriperLsation cases. Seconded by P. Blanchette. Passed
Into Fxecutive Session at 6:08 p.m.
Out of Executive Session at 6:20 p.m.
No mr�tions made, consensus is to take cases to City C,ouncil for approval.
Adjourrved. 6:21 p.m.
John Quartararo
Recording Secretary
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