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Home My WebLink About1992-08-03 Finance Committee Minutes • Finance Ccgnmittee August 3, 1992 � Minutes , Ccarmittee N1e�nbers l�esent: J. Bragg, CY�air, R. 5tone, J. Saxl G. Baldacci, W. Cohen Council N.f�nbers Present: M. Frankel Staff Present: E. Ba.rrett, J. Quartararo, B. Farrar, D. Pellegrino, D. Thexiault, E. Stimnpfel Others Presellt: G. 2'hibOdeau, Hratltn�r, Thibodeau & ASsoC. L. SoueY, La9er, Acie & Assoc. J. S"�mith, WL�BZ Meeting called to order at 8:03 am, present w�re J. Hragg, R. Stone and W. Cohen, who may vote to break a tie. R. Stone maved to appoint W. Cohen to sit on Ccarmittee as a voting meqnber until othe.r ccarmittee m�snb�xs arrived. Seconded by J. Bragg. Passed. 1. Awa�-3. of Bid -- FY92 GenQxal Qbligation Bonds Quartararo gave presentation regarding the bid results, city bond rating reaffi�ned at Aa and the net interest cost of 5.2456� for the bonds to be issued. • Stone maved award of bonds to Prudential Securities, Inc. and the inte.rest rates bid per the ccxnpetitive bid on July 28, 1992. Seconded. by J. Bragg. Passed. 2. Selection of Auditing Finn -- FY92 Quartararo gave presentation about the request for proposal (RFP) process, the makeup of the audit review co�ttnittee, the proposals received, the ' proposal r�view process and the reccgm�ndation to award to high pr�poser, Runyon, Kersteen, Ouellette & Lessard, South Portland, for proposed price of $35,920. Evaluation of proposals judged that RKOL sutmitted the best quality proposal and approach to audit services, including staffing and di.stribution of staff tiirie, and that client list indicates clients who are closer in size to Bangor's annual $75,000,000 in annual revenues than other proposers. G. 2'hibodeau, representing Brantner, 'I'hibodeau & Assoc., as lawer piroposer gave a presentation for award to law proposer for price of $20,000 plus 200 free hours of accounting services. Distributed ccerrparison analysis. 1. local firni, which specializes in g�ntal audits, • 2. client list includes Cities of Old Zbwn and Brera�r, which are � , approximately 1/2 size of Bangor, 3. BT&A's proposal if for 58� of their st�n�a� hourly rates, currently profession is di.scounting rates 50� to 75� off sta.ndard rates to ac ,;� • business, RKOL's proposed are 75� of stan�a� rates. Portland audit finn.s rates start at 10� - 15� highex than Bangor audit firm rates, and at a recent S�inar p�t, Marwick indicated they are willing to discount their fees by 50�, 4. city should not hav+e to pay for accounting services pPxfonr�d by audit firnt, therefore BT&A is offering 200 free hours of accounting services if used by Dec. 31, 1992, 5. RKOL's piroposal asstur�es that city's records will be in top condition, BT&A does not, given 245 adjusting journal entries for FY91, BT&A anticipates significant accounting wr�rk for the city, 6. RKQL's proposal does not indicate ariy concern about significant audit problems, BT&A's d,oes, 7. RKOlL's proposal for indisect cost study at $5,000 to $10,000 is unrealistic and indicates 80� of w�rk would be perfornied. by an inc�Tr�r1PT1C6d staffer who was only certified in 1991, 8. prior to Hrooks & Carter city used a Portland firn1, Peat, Marwick 9. City of Hrewer used BT&A and changed to RKOL, they hav+e had pr�bl�ns with tin�ly receipt of reports and billing, Hrewex will.be looking to change firnl next year and will be soliciting BT&A (later correction was made than speaker did not mean to imply Brewer dissatisfaction with RKOL), • 10. 'lb�,m of Hampd.�n reject RKOL proposal when tawn solicited, 11. Questioned RKOL's senior manager being a single pa.rent and living in Old Orchard Beach and having to trav+el to Bangor for audit wr�rk; stated that BT&A has a fFsnale mznac�x who graduated frcan Husson College and has 7-8 years experience who is in line for partnership January 1993, 12. Questioned wlw at � worlsed on Lewiston audit because engageqrn.nt partner for LEwiston is not th,e same as the engage�nt partner for Bang�or ProPosal. 13. T'hibodeau would be the partrver on the job for BT&A, 25 years of �experience, anticipa.tes high partner involv�r�ent do to city's probl�ns, 14. As a local f.inn, th,�re would not be any travel time nor travel expenses to the city. R. Stone questioned wlw at RKQL would be wor]Ci.IIg on Bangor audit? J. Saxl requested follaw up with Hrc�x. Questioned wheth�r RKQL being out of tawn would be a problFsn for the city? M. Frankel questioned what city would gain with out of tawn finm instead of a local firni? Troubled but travel time and travel costs. � � aG. Baldacci questioned extent to which r�view ccannittee considered price? L. Soucy, I,ager, Ade & Assoc. spoke to support c�nts of G. Thibodeau • and express concern with review ccnmittee averlooking discrepancies between high and law proposers and rec�nding high proposer to Finance Ccgrmittee. Questioned RKOL's accounting fees at 100� of standar�d rates. Ccamnittee referrcd to Council without recoa�m�endation. 3. Awarc3. of bid for Indirect Cost Allocation Program (ICAP) E. Barrett reccamiended postpon�e itFsn since rec�ridation is to award. to same firni tha.t receives the audit avrard. 4. Appoin-l�rient of Treasurer, Tax Collector and Deputy Tax Collector Barr�tt presented request to appoint Paul Rideout, Deputy Finance Director (Auditing Division) as Treasurer/� Collector, and Bruce Shibles, Assistant City Solicitor as Deputy Tax Collector. J. Saxl maved appointm�nts. Seconded by J. Sragg. Passed It-�ns 5 and 6 postponed Bids: 1. Photocopier contract for Central Services • postponed. a. R+esrbval of Portions of Bangor Dam J. Saxl maved award to law bidder, Northeast Marine 'Ibwing & Construction, Inc. for a not to exceed amount of $65,000. Seconded by J. Bragg. Passed. b. Paving City Streets J. Saxl maved rec�ndation to City Council for award to law bidd�r, Tanp Construction, Inc. Seconded by R. Stone. Passed. c. Faizw�ay Mawer Pellegrino presented rec�ation to award to high bidder because of the quality. Iaw bidder meets mini�aun specifications, which were written to not e�lude law bidder. J. Saxl maved. rejection of law bid frcan Sawtelle Brother, and awa�r3. purchase of Toro mawer to Turf Products Corp. for purchase price of $21,800. Seconded by R. Stone. Passed . � � � R. Stone requested city look at the APR for the firLnring option versus the direct purchase before placing the order. • Meeting adjourned at 9:18 am. Recording Secretary John Quartararo Finance Director • • �