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HomeMy WebLinkAbout1997-11-03 Finance Committee Minutes � Finance Committee Meeting Minutes 11-3-97 Councilors Attending: Don Soucy,David Leeq 7im Ty1er,Pat Blanchette, Joe Baldacci Staff Attending: Edward Barrett, Dave Pellegrina, Dan Wellington, Arthur Stockus, Clarence Peters,Ron Heller,Deb Cyr, Stan Moses, Jeff Cammack, Bob Farrar, Joe McNeil, Dave Little, Randy Mace, Penelope Olsen, Rod McKay Other Attending: Ch. 7, Roxanne Saucer, Ch. 5 Meeting convened at 5:00 pm , 1. Bids: a. Wheeler Dump Truck(Motor Pool) Freightliner of Maine of Bangor($93,612.34) • This is the large 10-12 cu. yard capacity dump truck. The recommendation is to purchase the Freightliner for$93,612.34. Councilor Tyler asked the difference between the FLD 120 and the FLD 112. Randy Mace explained that they are basically the same truck. The height of the frame is different to accomodate different engine models. The engine model that has been asked for won't fit in the FLD112. Ed Banett explained that normally when a dump truck is purchased, the equipment for plowing is moved from the old truck to the new truck. In this instance, the equipment on the old truck is over 26 years old and all of the plowing rigs need replacing. Recommendation approved. b. Loader Attachments (Motor Pool) Dorr's Equipment of Bangor($10,616) This is for loader attachments such as snow bucket, snow blade, and pallet forks. This is a$10,616 expenditure, and $12,000 was budgeted for it. The recommendation is for the low bidder, Dorr's Equipment, Bangor. Recommendation approved. c. Office Roof Replacement (Parks and Recreation) G.R. Roofing, Inc. of Bucksport($31,775) This is the flat portion of the roof at the armory building. This is a complete roof • replacement, rip and tear to the deck, and replace with a membrane. There was initially an item to just patch the roof, but the roof needed to be replaced. The warranty on the roof is 10 yeaxs. Recommendation approved. � d. Calcium Chloride(Public Services) W.H. Shurtleff of South Portland ($2,068) and Paris Farmers Union of South Paris ($5,364.60) This is for both the liquid calcium chloride and the anhydrous or dry chloride. This is an item that is purchased every year. Recommendation is to purchase the liquid chloride from W. H. Shurtleff of South Portland and the anhydrous chloride from Paris Fa.rmers Union of South Paris. Recommendation approved. e. Road Sa1t (Public Services) Penobscot Bay Sa1t Company of Pittsburgh,PA($102,420) Staff did a lot of analysis regarding this item. Samples were analyzed because of competition between the different suppliers. Penobscot Bay's sample passed. The existing supplier, Harcros Chemicals did not pass the size specification. The Penobscot Bay sample had a little bit higher moisture content and staffwill take ' samples with every delivery received in the future and assess a penalty if they do go over the moisture requirement. Recommendation to Council approved. f. Base Station(The Bus Division) Whitten's 2-Way Service of Brewer($5,016.49) . Recommendation to purchase from Whitten's 2-Way Service of Brewer, the low bidder. Approved. g. Mini-Van Lease (Health and Welfare/WIC Division) Whited Ford of Presque Isle($11,984.76) A van is leased every three years for the WIC Division. The lease amount is $332.91 per month. The previous lease was $350.42 per month. This lease is for a Ford Windstar, which will meet their needs. Approved. h. Computers(Airport Department) L&K Micro Supply, Inc. of San 7ose, CA($5,438) and Professional Computer Group of Bangor($260) The recommendation is to go with the low bidder, L&K Micro�Supply, Inc. of San Jose, CA. Recommendation approved. i. Kenduskeag Stream Exterior Stairs(Community Development) Bernson Enterprises of Di�nnont ($26,789.77) This project is for the exterior stairs beside Bangor Savings Bank. This was bid on previously and came in at $49,000, which was much more than was anticipated. • There are complications because of who owns what and where the stairs can be attached. The City does own the sidewalk down into the Kenduskeag Stream Park area. The City has been working with the bank and they have helped out and � cooperated with staff. The first set of stairs was so wide, part of it connected to the foot bridge across the Kenduskeag Stream and the state was concerned about being able to see under the bridge to inspect it. Recommendation is for the low bidder, Bernson Enterprises. Recommendation approved. j. Zero Turning Radius Mower(Parks and Recreation) Freedom Power Equipment ($13,260) These are the mowers with handles that can spin without traveling any distance. Each of the mowers has been tried out. The recommendation is not to go with the low bidder because the Exmark was set up much more comfortably so the person spending 8 hours on the mower isn't hunched over in an awkward position. There is a two year warranty and guaranteed parts overnight or they are free. The Exmark is less than$200 more than the lowest acceptable bid. The low bid mower was Toro Z222. This machine could not supply the rollover protection that is needed. Recommendation approved. , 2. Council Resolve 97-436 Appropriation ofFunds to Settle Fiscal Years 1994 through 1997 of the Fire Department Union Contract The amount of$420,000 is an estimate and staffis hopeful it is a not to exceed estimate. There is a lot of paperwork that needs to be gone through, person by person, week by � week, to actually come up with the amounts that are going to be necessary for each employee and the retired employees. It is going to take some time, but staff wanted to get a number to the Council so that work can begin. The majority of this amount will have to be funded from the undesignated fund balance. �125,000 has already been appropriated from this toward the increase in the cost for Maine State Retirement that was shifted to the general fund. Bob Farrar pointed out that when the payout was done last December for the four years' worth of COLA increases, appro�mately$200,000+, it used up a good portion of the amount that had been set aside. Committee recommended approval to the City Council. 3. Council Resolve 97-437 Appropriation of Funds to Settle the First Year of the City Nursing Facility Contract This is a one year cost (July l, 1996-June 30, 1997)to take care of last year. The total is $18,602. Committee recommends approval to the City Council. 4. Roof Replacement-Freese Building Rod McKay explained that Roof Systems of Maine did 1/3 of the roof work on the Freese Building for Joe Cloutier. Staffwould like to have the whole roof done. Dan Wellington has several concerns with the water leaking down on the City side of the building. Roof Systems of Maine gave a quote for doing the other side of the roof. The quote for this • work is $52,680. Dan feels that there is an urgency to getting this work done before it starts snowing. The only way to do this is not to go out to bid, but to hire Roof Systems of Maine who have stated that they can have it done in December. Daryl Rhodes has � voiced his concerns that if the roof is done, it be done in such a way that Maine School for the Arts will not have to do it a second time. Staff spoke with Daryl's architect, at Daryl's suggestion, and they have suggested the go ahead as proposed to do the roof the same way as 7oe Cloutier ha.d it done. Staff recommends having Roof System of Maine do the job in December. Councilors asked about Option#2. Dan Wellington expla.ined that in talking with PenBay contractors, who did the Realty Resources apartments,they expla.ined that there is 12" of working space between the ceiling of the top floor and the roof. To get R38, fiberglass is the least expensive. To do solid or rigid insulation on the roof to get anywhere near R10 is going to cost .60 cents per square foot. Their preference is to do it all inside, because there is a large amount of working space in there. Their feeling is that regardless of whether it becomes residential or commercial space, it is going to be a lot cheaper to do that insulation with fiberglass. The funds to pay for this will come out of the $80,000 being reserved from the sale to Realty Resources. Committee recommends approval. 5. Review of Annual Financials � Ron Heller, Finance Director, presented the Committee with an overview of the financial performance of the eight enterprise funds for 1997. These have not been completely audited; however, it is expected that these numbers aze final. There may be a couple of reclassifications that may take prior to finalization. All enterprise funds, with the exception of the Nursing Facility and Bass Park had increases in operating revenue this . year ranging from .1%to 4%. Operating expenses other than depreciation and amortization, were all down except for the Nursing Facility and Bass Park. Some of these were substantial: 6.4%reduction at the Sewer Utility, 2%reduction at the Airport, 2.7% at Park Woods, 13%Parking Fund, and 6.4% at the Golf Course. In terms of operating income, it was much the same pattern; up $187,000 at Sewer utility, $136,000 at the Airport, $66,000 at Park Woods,the Nursing Facility was off$126,000,the Parking Fund was up $58,000, and the Golf Course was up $37,000. Cash was generated this year in the enterprise funds of about $1,925,188 primarily from operational performance. The sewer utility generated about $709,000 from operations and increased cash and the Airport generated about $795,000. Stafffeels that the enterprise funds did very well this year. Ed Barrett commented that the first year of operating Park Woods was difficult, which has apparently turned itself around. They have been able to make a small repayment toward the amount they bonowed from the general fund last year. The Nursing Facility has a problem with occupancy, so subsidy was provided to them as well as another 1/4 million from the general fund. Bass Park required about $100,000 more than the budgeted subsidy. These continue to be the two problem areas. Staff has started work on the City Nursing Facility, but these changes will not be effective until the following year. Sta.ff is also working on proposals and marketing ideas for Bass Park. Councilor Soucy commented that the year to date revenue for the Golf Course was up but it was also up in September. Ron spoke to Da1e regarding this. It was driven by weather and the type of play. Councilor Tyler asked for clarification of the budgeted decrease of miscellaneous revenue for September. Ron Heller e�lained that last year$142,000 was • budgeted and this year$7,500 was budgeted, representing a decrease in revenue from our workers' comp excess policy. Most of the cla.ims reaching the excess policy have been settled. With no further business on the Agenda, the meeting was adjourned at 5:37 pm.