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HomeMy WebLinkAbout2006-08-07 Finance Committee Minutes � � FINANCE COMMIITEE August 7, 2006 Minutes � Councilor Attendance: Hawes D'Errico Farrin ton Gratwick P I , , g , , a mer � Staff Attendance: Barrett, Cyr, Winslow, Cammack, Dawes, Hupp, Dubois, Enman, Warren, Gastia, Yardley, Comeau Others: Gagnon, Lucy, Buckley � i. Consent Agenda A motion was made and seconded to approve the Consent Agenda. � a. Council Resolve 06-277, Accepting and Appropriating U.S. Fish and Wildlife Boating Infrastructure Grant , b. Quitclaim Deed — Doyon — 617 Ohio Street 2. Bids/Purchasing � a. Police Patrol Cruisers — Motor Pool—Quirk Ford of Augusta — $68,670 ' Cyr said this is part of the City's annual Motor Pool's vehicle replacement program for at least three cruisers per year. 4 bids were received. Farrington spoke about the cost of service between Quirk of Augusta and � Quirk of Bangor. Dawes said the only service on the vehicles that would be performed outside of the City's facility would be for warranty work, which doesn't matter if it is done in Bangor or Augusta. A motion was � made and seconded to approve staff's recommendation. Gratwick spoke about spending the taxpayer's money locally. He thinks this is an ideal instance to realize that if a bid is within a certain percentage and owned � by a local business that the local business be favored. He realizes there is no policy in place but recommended that it be further studied. Cyr said that the city is concerned that it will eliminate bidders from participating if � it is known that the City will automatically go with a local business. She feels that it would replace a true, competitive process. Barrett said that � effectively, Ford is the only company that now manufactures police vehicles. He said that stafF has spent a lot of time over the past few days - . asking if Quirk Ford of Augusta is considered a local company since it is � owned by Quirk whose corporate headquarters are in Bangor. He feels that it is a sound argument for a local company that pays significant local property taxes. Gratwick would still like the issue studied further. � b. Heavy Rescue Vehicle — Fire — Sugarloaf Ambulance/Rescue Vehicles - $262,013 � C�rr indicated that only one response was received. Six bids were issued. The City has applied for and award $198,000 from the Assistance of 1 . 1 , Firefighter Grant process and part of that grant required a 10% City � match which brings the total to $220,000 available. The local match was previously authorized by the Council. The Fire Department is $42,000 short. The Penobscot County Commissioner's contributed $20,000, � realizing it is a regional project. $22,000 is available within the Fire Equipment Reserve that could be used. The Reserve is currently above � what was estimated as of the year end. Responding to Gratwick, C�rr said the Fire Equipment Reserve was set up as a way to recognize the fact that there was no funding mechanism to replace fire department vehicles. The � current balance is approximately $100,000. The policy indicates it should be near $65,000. Barrett said that in approximately 10 years the ladder truck will need replacement at approximately $1.3 to $1.5M. Staff has � suggested building up a fund over the years in order to pay for it at that time so as not to borrow. Cammack said that this equipment will also be used for confined space needs with Wastewater Treatment. Responding , to D'Errico, Cammack said the department has been applying for federal funds for some time but more on the prevention side and through , Emergency Management Agency grant seminars. Responding to Farrington, Cammack said that the price of steel has gone up significantly. The grant was awarded in 2005 and the process ends prior to that so it is � difficult to estimate the cost of equipment. Heavy rescue vehicles are specialized and tailored. Farrington and Palmer were pleased with the County's participation. A motion was made and seconded to approve all � three of staff's recommendation to full Council: appropriate the money, accept the grant and then award the bid. Gratwick asked about ladder truck use in surrounding communities and Cammack indicated it could be � discussed later due to its length. Heavy rescue equipment will definitely be shared with surrounding communities. Responding to Gratwick, � Cammack said that such a request would come through the regional � communications center and then to the Bangor dispatch. c. Request to Waive Bid Process — Cabling New Police Station — New � England Communication - $63,101 Cyr said staff is recommending that New England Communication install all data, telephone and videoconferencing wiring. Cyr noted that this � company has installed all other such wiring and phone networks in the City's building. It will involved 224 cable drops within the new police � building. Gastia said to delay the project would cost money. Farrington supported to waive the bid process but in the future anticipated process he suggested sufficient planning to allow for the competitive bid process. , Barrett pointed out that the 911 is separate wiring and a separate company. Palmer asked why the costs were not included in the original bid for the building project. Gastia said the City's phone system was � installed but the department was not prepared to put it into the Court � � ' � � Street building at that time because it would have to be taken out and placed in the'new building. Gastia did not know at that time the number of phones and drops that would be necessary. A motion was made and ' seconded to recommend approval to the fuli Council. d. Park Woods Mgmt — Park Woods—R & K Construction & Properly ' Management - $47,000 Cyr said the property manager oversees management of the Park Woods � grounds and units as well as collects rent. Bangor Housing has indicated _ its desire to not continue in the management capacity of Park Woods and the City solicited bids. 14 were sent and 1 response received. Yardley � had received a good recommendation regarding R&K, owned by John Karnes. He will make up the anticipated deficit caused by the new numbers. There are 60 units in the complex. Health and Welfare rents � 44. Currently, the City pays the Bangor Housing Authority $2,290/month for the management fee. R&K's fee is $2,400/month. Responding to Gratwick, Cyr said the City knows it needs to pay $2,400/month for the � maintenance management service; $9,200/year for snow plowing, $9,000/grounds maintenance totaling $47,000. Other quoted costs � include: all plumbing issues will be on a time and material basis at $30/hours for labor: Materials are at cost plus 10%. Heating system work will be done at $30/hour and the same for materials at cost plus 10%. Boiler cleaning, tune up and efficiency test will be done at ! $75/boiler. Approximately $100,000 has been spent yearly for all areas and that money has been budgeted. Palmer asked if R&K is incorporated � or an LLC and asked if Mr. Karnes will be able to perform all of the work and what type of succession planning is there for his corpor�tion if something happens. Cyr said if anything happened the City would find a � replacement management firm. A motion was made and seconded to approve staff's recommendation. � e. Cargo Van —Airport—Varney GMC - $27,526 Cyr said this item was approved as part of the budget process. Eight bids were issued and 6 responses received. Staff recommends award to the . , third lowest bidder, Varney GMC. The first lowest bidder did not meet specs for a variety of reasons, and the second lowest bidder required a purchase order the day of the bid opening. The City refused to do so. A ' motion was made and seconded to approve staff recommendation. f. Carpeting —Airport— Saliba's Rug Sales - $81,875 � Cyr said the carpet tiles will mainly be used in the domestic arrivals ` building and a small area in the international arrivals building. / Approximately $135,000 was budgeted for this item. Six bids were issued � and six received back. The first low bid was an alternate tile and did not ' � , meet the bid specs. The second low bidder could only install the tiles , from 7:30 am to 4:30 pm, Monday thru Friday which was not flexible enough to meet airport needs. Gratwick talked about the difference ' between the bids received. Paimer asked the Airport staff to review seating arrangements in the boarding area at BIA, which he feels is very antiquated. A motion was made and seconded to approve staff � recommendation. g. Roof Replacement—Airport— Hahnel Bros Inc - $156,420 ' Cyr said this is a roof replacement for the domestic terminal building. $160,000 had been budgeted. Hahnel Bros was formerly Bangor Roofing. A motion was made and seconded to approve staff s recommendation to � accept the low bid. h. Marketing Study — Airport — SH&E - $120,500+ , The City received six proposals for marketing services. A selection committee consisting of eight individuals, including representatives of the � City Council, interviewed four firms and recommended that SH&E of Cambridge, Massachusetts. SH&E will examine the potential for additional business development at the airport in the areas of international corporate ■ traffic, commercial charter traffic, and air cargo. The estimated cost is � $120,500 plus expenses. Funding for this project is available in the Airport's budget, and a proposed scope of work was discussed. D'Errico � pointed out that it was a scope of work drafted by the selection � committee, not the original list. Based on initial discussions with SH&E, � Hupp said the original proposal of $176,000 was reduced to approximately $120,500. SH&E was formed in 1963 and is one of the largest consulting firms dedicated to commercial aviation. They have undertaken projects � for cargo and passenger airlines, charter operators, fractional general aviation operato�s,fixed base ope�ators and others in the United States and throughout the world. As a result, the company has wide-ranging � contacts throughout the industry that will be invaluable to this project. Gratwick asked about the advertising and real estate areas. Hupp said real estate development can be handled locally and internally with staff. � Regarding advertising, Hupp said there are differing ideas among the. Council as to how to proceed. There is a vacancy in the Airport's marketing department at the moment. None of the companies who made , proposals had expertise in that area. Her thoughts are to see where the most impact can be made in advertising and then hire someone to fill the position accordingly. Gratwick and Barrett discussed the mass local media , advertising currently in place to raise awareness of BIA. Barrett indicated it needs to be discussed by the Council. He also spoke of a RFP for � advertising services. Gratwick spoke about air cargo. Hupp said the responder does talk about sizing the market which will take local activity . � , , , into account. The airport provided a report, compiled by airport staff, to SH&E regarding seafood shipping as well. Responding to Palmer, Hupp � said the SH&E would make a presentation to the Council. Palmer asked if more than one could be provided without additional costs involved. Hupp said yes. A motion was made and seconded to recommend approvat to the full Council. , i. Energy Audit and Energy PerFormance Contract— Honeywell ' Barrett said that the City issued a request for proposals for these services, including energy audits of various City facilities that will produce a list of potential energy conservation projects. The selected firm would � � then implement those cost saving suggestions after approval by the City Council. The cost of implementing the projects will be recovered through utility savings guaranteed by the energy services company. Three � responses were received and reviewed by a selection panel including representatives of various City departments, the School Department, � - Bangor Hydro, and the Council Chair. This committee interviewed each of the three companies and recommended that the City select Honeywell. The major reasons for recommending Honeywell included: its status as a � major publicly owned firm with a strong presence in Maine; its strong history in undertaking energy performance contracts including work specifically done at airports and wastewater treatment plants; the company's emphasis on the energy audit portion of the contract as a ' crucial element in its overall success; its ability to provide direct project engineering and in-house installation of HVAC improvements, thus � reducing the number of subcontractors involved and simplifying the City's project management responsibilities; and the balanced mix the company's proposal provided between proven energy saving projects and innovative ' alternatives. In addition, the City has direct experience with Honeywell since the company has provided services to Bangor International Airport for many years. Barrett explained that this project has been a priority for � the Council, both due to the rapidly escalating costs of energy and environmental considerations. Responding to D'Errico, Barrett said the � audit includes schools, which will be covered by their budget. The first phase of the audit will identify which buildings will be done in detail. Responding to Gratwick, Barrett said the only situation in which the City � would pay for the audit would be if the City decided not to go forward with sufficient energy saving recommendations and projects. At the end of the audit, the City has the ehoice to decide whether or not to do the � projects. The audit will cost 8 cents per square foot up to a million square feet and 6�/z cents for anything over a million square feet. The estimate is $64,000 and that cost will roll over into the cost recovery plan under the � energy performance contract. Honeywell will recover the $64,000 through the savings created by implemented efficiencies. Jim Lucy of Honeywell � , ' addressed the Committee. Responding to Gratwick, Lucy said there is an ' ongoing process and the nature of the guarantee is to have an ongoing measurement of verification of the results. Honeywell coilects the.billing � information and measure that against the baseline of preconditions in the building. Their objective is to demonstrate they have met the guarantee. There is an annual measurement and verification auditing process. He , talked about changing the behavior side of energy savings; i.e. changing habits, increase awareness. Gratwick asked if a task force should be . created to work with Honeywell. Barrett said it is something to consider � further in the process. The City does have an internal environmental management system committee that represents the various departments specifically working in the energy issue. Gratwick asked to be made � aware of this committee's meeting schedule. A motion was made and seconded to approve stafF's recommendation to full Council. An Order will , be prepared which will authorize negotiations with Honeywell for this project and authorize the Finance Committee to approve the final energy audit and energy performance service contracts once they are negotiated. ' j. 4-Wheel Drive Tractor— Golf— Bruce's Tractor Sales - $16,521 � C�rr said this item was budgeted at $25,000. 6 responses were received and staff is recommending the second low bidder. The first low bidder was deemed non-responsive. Enman responded to Gratwick regarding ' the Montana unit and the difFerence in horsepower. A motion was made and seconded to approve staff's recommendation. � k. Webster Ave Water/Sewer Ext. — Golf Course — Lou Silver- $99,000 , Cyr said that six bids were received and the three low base bids were reviewed. Silver's origi�al bid was $220,000 and staff worked to reduce the cost to $99;000. A motion was made and seconded to approve staff � recommendation. I. Maintenance Building — Golf Course —C and N Custom Builders — � $555,450 During the FY06 budget process, the Council approved the construction of a 7,200 sq. ft. maintenance facility at the Golf Course. This facility will � replace the existing 2,400 sq. ft., forty-year old structure that the Course currently uses. This structure lacks adequate work and storage space, does not provide basic amenities such as office space and restrooms for � employees, and is necessary to insure that we meet all state and federal environmental and safety requirements. In addition, the project includes funding for installation of a new sewer service at an estimated cost of � $99,000 (item k above). The bids for both the sewer project and building , ' / ' , construction have been received and exceed the available funding by approximately $120,000. Major factors contributing to this increase are � the cost of the sewer portion of the project and the escalating construction costs over the past 12 months. 7 bids were issued with 7 responses received. Responding to Gratwick, Barrett said the City does ' not have standards in the area of energy efficiency but are working in that direction. There are various levels of building certification. Half of the proposed building will be heated with radiant heat flooring. Enman ' also said that insulation for energy efFciency was considered. Enman did not have the statistics available. Gratwick asked if energy efficient requirements would have changed the bid process. Cyr said to go away , from radiant heat flooring would cost more dollars to operate. Enman said it would be more money to put blowers in place. Warren was involved with the building design. Barrett said he will ask Honeywell to rreview the plans and to offer suggestions. Warren said that in general the lead items cost more upfront even though money is saved over time. The energy conservation is looking at a policy for that area. Barrett said , that it also depends on the level of certification. Barrett recommended that the Committee approve construction and, afi�er review by Honeywell, � a change order can be put in place with the contractor. Palmer agreed with radiant heating but is concerned with the price of the building to be used for storage. He thinks perhaps a better price could be obtained. , Palmer mentioned that Carpenter Associates did not provide a sound estimate for the pool house at Dakin Pool. He voted against the sewer line project as well. He isn't certain of guarantees that it will not freeze � and savings will be lost. There is ledge at the golf course, which was made obvious with the irrigation system. A motion was made and seconded to recommend to full Council a Resolve that will appropriate ' $120,000 from Golf Course Reserves for the construction of a maintenance building. Gratwick noted that the energy information would not be available by the next Council meeting. Responding to Barrett, � Enman said a two-week delay could not cause difficulty. Palmer made a motion to postpone this issue to the next regularly scheduled Finance , Committee meeting. It was seconded. A vote was taken and the motion failed. The original motion remains in place. A vote was taken on the original motion of staff's recommendation and passed by a vote of 3-2. ' m. Refuse Collection — Dumpsters — City Wide — Pine Tree Waste — $63,341 � Cyr said 6 bids were issued, 3 received. The average price for a one-year service is just of $69,000 citywide. The recommendation is to award to the low bidder. Responding to Gratwick, Cyr indicated she would provide � a breakdown of the information for him by e-mail. The City currently has . a contract with Evergreen Waste. Palmer asked for waste weight , , ' numbers from Pine Tree. Cyr said it is by pick up, not by weight per , dumpster. Paimer said it would be helpful to have the information. Palmer spoke about a video for the government channel on the rules for ' sorting recycling and trash. Warren said she would work on estimated weight for each dumpster. A motion was made and seconded to approve stafF's recommendation. ' 3. Review Have-a-Heart Trap Lending Policy Several months ago, Cyr indicated that citizens had expressed concern about ' stray cats. There are not a lot of options available to the City but stafF did discuss a lending program of Have a Heart Traps. Dubois outlined the policy proposed. She indicated that the proposal is to have 10 traps available to the , citizens, free of charge, for a one-week period. A deposit of $50 would be required on each trap with late fees established as well. Winslow said that he � is amazed at how busy the Animal Control Officer is and he is concerned that this program will take time that the employee doesn't have. Ken Buckley, 207 Forest Avenue, addressed the committee, and he opposes the policy. He doesn't feel Bangor has a cat crisis. He indicated that one person (Mrs. ' Lindsey ? of 130 Forest Avenue) has complained that Bangor as 2,000 cats running wild. He disagrees. He spoke with the complainant, who feels the � issue has been exaggerated: He talked about the difficulty to differentiate between a domestic cat and a wild cat. He said the Finance Committee approved $500 for the traps based on one individual's testimony. ]eff ' Johnson, 800 Ohio Street, said there is a cat prob�em but he isn't sure of the number at large. Due to full capacity, the Bangor Humane Society is giving cats away at no charge. He has trapped 30 cats, 25 had feline leukemia: He � feels that cats should be licensed. If people are made to be responsible for their pets, they will do so. If the trap policy goes into place, Gratwick wants ' to be certain that handout materials accompany it. He mentioned a problem with woodchucks. Palmer expressed concern with misuse of the traps; i.e. animals being sold for research. Stray cats are held at the Humane Society � for eight days. The Society is not now accepting cats due to the large number currently at the facility. Barrett said the City receives complaints about other kinds of animals, and the City advises them to rent traps. Palmer ' talked about strife among neighbors. Barrett said this is a problem that has existed for a long time and the City doesn't have to become involved. There is a cost involved with licensing cats, as was suggested. It would require an , extra employee in animal control. Dubois said that her office has been tracking complaints regarding stray cats since February. Her office receives complaints from those who have rented traps to catch animals. Hawes � clarified that the proposed policy.is a lending program for cats only and does not address the cat issues. She suggested that discussion should be focused on the policy only at this time. She assumed that further discussion for cat � issues would fall under the Government Operations Committee. Responding � ' ' � ' to Palmer, Dubois said the cost to rent a trap is $8.00/day and around $54/purchase. Palmer asked if the City should be in the lending business. , Hawes thinks no. Palmer said perhaps the Humane Society should be in the trap business. Gratwick thinks it is a reasonable policy for another organization within the City but not certain that the City should be in the ' business of traps. He suggested putting the issue on hold for a month to see if other organizations have an interest. Hawes would like to see this sent to an outside organization. Farrington said this is a lending policy to facilitate a ' property owner who has a problem with nuisance animals. He made a motion to approve the lending policy to the full Council for action. Winslow said the question is: is the City going to be everything to everybody and � where does the responsibility end. The policy is something his department can manage but he would be comfortable if the policy fails as the animal control offrcer is busy enough. He is concerned with the neighborhood issues � associated with trapping animals. Farrington's motion was seconded. Farrington agreed with Palmer that this is an issue of mutual respect among the citizenry. Gratwick and D'Errico voted in opposition, 1 voted in favor. , The motion was defeated. 4. Update on City Clerk's Office —Voter Registration � Dubois indicated that Registrar of Voters Anne Cox resigned efFective )uly 7. Dubois had originally budgeted for 12-hour voter registration positions. With , Cox's departure, Dubois looked at current staffing levels, etc. She is currently filling a 22 hour/week position in the front ofFice of the City Clerk's Office. The City Clerk and Treasury departments are also looking to share employees � when appropriate. Voter Registration is not that busy during elections. The early voting process allows registration at the polls as well as on Election Day. Dubois suggested that the vacant position has become more of a clerical ' position and suggested that rather than filling the 12-hour position to expand the 22 hour position to help out in Voter Registration for 10-12 hours/week in a clerical function. Any counter worl� needed at Vote� Registration wouki be , moved to the City Clerk's office window. The Voter Registration.Office would be moved to the back office and move the City Clerk to the front office where Voter Registration is currently located. Responding to Farrington, Dubois said , the costs involved are the same. Gratwick applauded the proposal especially the cross-training. He qu�stioned if the City Clerk should be in such a visible , location. A motion was made and seconded to approve. Dubois spoke about voting booths indicating she has $3,000 in her budget for the purchase. She showed the Committee newer booths which do not have a curtain and asked � for their opinion. She would like to hear from them within the next few weeks. She indicated the metal booths are still available but they are not a durable unit. It is basically the same cost for both types of booths. Law does ' require a curtain at a voting booth. She said there is also another booth and she will obtain a sample. It is light weight, less space is required and it is ' ' ' easy to store. $3,000 would purchase 15 booths. Dubois wili base her , decision on the Council's suggestion. 5. Executive Session — 36 M.R.S.A. Section 841(2) — Hardship � Abatement A motion was made and seconded to go into executive session. , 6. Open Session— Hardship Abatement Decision A motion was made and seconded to approve staff recommendation. � ' � ' � ' � � , ' ' , ' � , '