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HomeMy WebLinkAbout2009-08-03 Finance Committee Minutes � - � FINANCE COMMITTEE � August 3, 2009 Minutes � Councilors: Stone, Hawes, Palmer, Bronson, Nealley Staff: Cyr, Barrett, Caruso, Yardley, Little, McNeil � Others: Mr. Knight 1. Consent Agenda - � Stone asked Yardley to speak on Consent Agenda items k. and j. Yardley said the grants are from the fund for Healthy Maine. The grant monies will cover al1 costs of the programs as well as other fixed costs outside of the grant. Regarding personnel costs, � � they will grow with cost of living and merit increases and then the margin gets a bit closer. Initialiy, in the first year there is a start up cost of office equipment for staff. A . portion of Yardley's salary is paid from the grant which reduces the burden to the City. � A motion was made and seconded to approve the following Consent Agenda items. a. Quitclaim — 24 Davis Street b. Quitclaim — 826 Union Street � �` c. Quitclaim — 39 C Street— Birch Hill Estates � d. Quitclaim — 1456 Union Street e. Workout Agreement— 43 Fourteenth Street � f. Workout Agreement— 24 Milford Street g. Workout Agreement— 71 & 79 Pier Street h. Workout Agreement— 324 Union Street � i. Personal Properly Adjustment— 892 Odlin Road j. Resolve 09-250, Appropriating $1,084,873 from Maine DECD under the � Department of HUD for Neighborhood Stabilization Program k. Resolve 09-251, Appropriating $599,721 Grant from Maine DHHS, CDC to Address Tobacco, Substance Abuse, Chronic Disease, Nutrition, and � Physical Health through Prevention Strategies I. Reso(ve 09-252, Appropriating $50,000 Grant from Maine DHHS to Support an Overdose Prevention Program � m. Resolve 09-253, Appropriating $412,650 from FAA for Design of Cargo Aircraft Parking Apron and Purchase of Interactive Training Program � 2. Bids/Purchasing a. Commissiornng Agent— Police—Tumer Group - $23,900 Cyr noted that the City has had continuing issues with the HVAC system at the new � Police Department buitding. Staff has worked in the ensuing two years to deal with the malfunctions, failures, and leaks with the actual engineering firm, the actuai subcontractor as well as the equipment manufacturer reps. The system has been � tweaked resulting in some improvements but it continues to be problematic. Staff talked with the Finance Committee previously about hiring a Commissioning Agent to go � through the system, determine the design, the installation, and the operation to identify � � � � the deficiencies. The City issued a Request for Qualifications for this service and received 5 submissions, one of whom did not submit pricing_so was immediately � disqualified. A group of staff reviewed the remaining 4 submissions and, based on their submissions, two groups were identified as the most qualified: Turner Group and Allied Engineering. As a previous commission agent, Bob Marcotte from Honeywell aiso � reviewed both submissions. Based on.the additional information received, staff recommended that the contract be awarded to the Turner Group in the amount of $23,900. Referring to all of the bid agenda items, Bronson noted that he saw very few � Bangor contractors or entities as part of the bidding process. He wanted to be certain that Bangor entities are invited to bid. If Bangor entities do fail in bidding, he suggested that the City might work with them to help them develop into being � sufficient; hence, business development. Cyr explained that any vendor who contacts the City is asked to complete a vendor application which provides contact information, � etc. It also has a large check list for vendors to mark all of the service and/or goods that they provide. The information is then entered into a data base. When issuing a bid, the City will e-maii a notification to all vendors on the list that a bid will be going � out for a specific item/project and it asks them to refer to the City's website for detailed , information. All bids are published in the Bangor Daily and on the City's website. Cyr said that commissioning agents is a specialty and she is not aware of any Bangor � individuals who serve as commissioning agents. Responding to Bronson's earlier comment, Palmer said that Bangor is a great North Star around which every other community looks to as a point of reference. He agreed that a solution is needed. A � motion was made and seconded to approve staff recommendation. b. Parking Lot Canopy— Airport—Gai�ek - $81,585 � Caruso said that the recommendation is to award bid to Gaftek for the construction of a canopy for the Airport's parking lot. An exit canopy was requested to protect customers from the weather, to protect the recently installed equipment, as well as the individuals � who work in #he parking booths. Gaftek is the low bidder. A motion was made and seconded to approve staff recommendation. � c. Runway Snow Sweepers—Airport— HP Fairfield - $1,057,086 Caruso stated that staff is recommending the purchase of two runway brooms for the � Airport. The brooms can be used year round but primarily in the winter months. This item was previously approved through the Council and FAA as part of BIA's five-year capital improvement plan. The purchase will be part of the AIP program with 95% � being funded through the FAA, and the remaining divided equafly between the state and the airport. The airport originally received 3 bids from 2 bidders. The lowest bidder from Kodiak did not receive positive references. Airport and its engineering staff � reviewed the specs and checked references and resulted in 11 airports providing poor references. HP Fairfield meets or exceeds all of the specifications as well as positive recommendations. A motion was made and seconded to approve staff � recommendation. The item will be referred to the Council for final action. d. Update on Pending Bids . . � � � • � Cyr noted that the first item is bus rehabilitation for The Bat. Earlier in the year, the � City was in hopes of receiving six new buses to replace some of its current fleet. Four were to come from the stimulus package, and 2 of which were to be included in the sta#e bond referendum. Unfortunately, during budget deliberations, the two units were � removed from the State's bond package. In addition, the City had planned to rehab two buses. Without the additional two buses from the state, the City is in the position � . where it needs to rehab four units in order to maintain its fleet. Three are 1996 buses, one is a 1999 and the work will include decal replacement, body and mechanical work, and estimated to be $30,000/each for a total of$120,000. The work wili qualify under � the BAT's operating grants from the federal and state governments. 80% will come through the State and/or passed through the Federal via state. The local share will approximate $24,000 which will be apportioned appropriate to the participating communities. Responding to Gratwick, McNeil said the cost of a new bus approximates , $400,000. Once rehabbed, McNeil estimates another 45 years use. Responding to Stone, Cyr said the buses through the stimulus funding require no local match. McNeil � said the rehabbed buses will be going into a spare pool and used as needed. Cyr noted that the buses actually belong to the State of Maine. � The.second item relates to the Sewer Maintenance Division. They are working with a nine-year old pickup truck with over 140,000 mifes and it is costly for maintenance at this point. The vehicle is used on a daily basis. $40,000 was included in the WVVfP � budget to replace the vehicle. � The third item concerns bi-fold doors on Building 457 at BIA. Caruso said !t is a former � military hangar and is currently being rented. The sliding doors are the ofd heavy metat style doors that slide on rails. The Airport is looking to replace them with a new bi-fold � door. Responding to Gratwick, Caruso said the building was not included in the Honeywell project but the building has been insulated as will the new doors. The current doors are now opened manually and it sometimes requires airport tractors to � push them open. � 3. Reques# From Taxpayer— 11 Field Street � Little said that Bill Knight would address the Committee regarding 11 Field Street. The property is jointly owned by Knight and his daughter, who lived in the home until the . time of her death earlier this year. After that�me, Mr. Knight found there were 9 years � of outstanding taxes and sewer charges totaling about $25,000. He was unaware of the issue. From Knight's perspec,-tive, he thought there was an agreement with the City that � at anytime the taxes did not get paid that the C'ity were to notify him directly and fie � would take care of them. Littie had no record of that agreement. Knight indicated that his son-in-law is currently living at Field Street and the son-in-law has indicated that he will not be paying the taxes. � Knight gave some history regarding the properly. � � � � Barrett said that in this instance with nine years of unpaid taxes the City has a series of matured liens. It is generally the City's po{icy to riot take possession of any property � which is owned occupied. Barrett suggested that Littfe and Cyr might meet with Knight to see what can be worked out to deal with the issue. Cyr said she would need direction from the Council. Littie said that Knight is not looking for a workout agreement. Little � said it comes down to the question of whether the Finance Committee feels comfortable in that at one time there was a verbal agreement with prior staff of the City and that agreement did not get carried through to current staff and is the City willing to do � something to the interest or amounts due for Mr. Knight. Then perhaps reevaluate the situation and see if a workout agreement can be reached that is for a more reasonable amount that is outstanding. � Palmer clarified that Knight does own li Field Street. Responding to Palmer, Knight " said that he does not have close relationship to the son-in-law. Little said the home is , assessed at $ip0,100. Palmer said he would be interested in looking.at a lien when the property is sold. Knight said that if he could get things straightened out that he had given thought to selling the property. � � Nealley made a motion directing staff(Cyr and Little) to work with Knight to come up � with an agreeable arrangement. The motion was seconded. Little said the City would not interfere with any type of sale as long as the City is assured that the taxes would be paid as part of the closing. Cyr said that if Knight determines it is in his best interest to � sell the property the City can provide a letter of assurance to the realtor and/or the banker that all of the appropriate paperwork would be executed upon receipt of payment. Knight noted that he also has the lot beside ii Field Street which was � deeded to his two�daughters (both deceased) and the property has not been probated. Cyr said she would have the City Solicitor pull the legal information concerning the lot to see what can be done. � 4. Discussion of Information to be Included with Tax Bills Historically there have .been two pieces of information on the back of the tax bill. One , has been a pie chart which graphically depicts where the tax dollars are being spent and what the dollars support, and the second portion has been a fairly lengthy letter � from the City Assessor relating to market value adjustments made in individual properties. This year there are almost no adjustments in market value. Staff suggested that it might be appropriate to include information specifieally relating to the � upcoming auto excise tax referendum; i.e. the amount of excise tax the City receives, � an estimate of the breakdown of from where those taxes are received. Gratwick had requested that information be provided as to solid waste costs. Being a unique year, � Cyr felt it appropriate to come to the Committee asking their opinion and direction. In these budget times, Gratwick said the main question is how to decrease the property � tax and along with that is a desire to have more user based fees in the area of solid waste. He referred to it as`pay as you throw.' He feels it is an appropriate way to � � � - � decrease the properly tax and.it is also a very green way to go. He suggested that the � information could be displayed on the back of the tax bill as to the dollar amount for solid waste removal and how a �pay as you throw' plan would be more beneficial, etc. Cyr noted that the information could be provided in the pie chart � Nealley spoke about user fees. He feels that an hin that oes�on the back of a Yt 9 9 property tax bill should he approved by committee and then full Council. � Bronson like th i f in the soli waste f i t the ie ch rt as we11 d e dea o add g d ees n o p a as to � demonstrate where the incomes are derived. He feels that'pay as you throw' may be inevitable in the future. If the City did go to the pay as you throw, could the City have a transfer station in addition to paid curbside pick-up. � Paimer concurred with Nealley's comments about a gray area as to what the City Council should suggest supporting to taxpayers but the costs are what they. are and he � has no problem with making taxpayers aware. Cyr noted that the tax bilts will be going out next week. The City is prohibited from � advocating one way or another. The City's role is to provide information related to income tax. � Stone's recommendation would be to provide information related to the auto excise tax and let the taxpayer make their decisions. Palmer said that the vote of the Council at its last meeting stands by itself and what is presented in the tax bill should be as � impartial as possible and not reflective of that vote. Barrett supported Cyr in that the City's intent is to provide information. If the City sits � on the sidelines and doesn't provide information, then the City is failing the citizens, who wilt be voting in November on something that has implications from the Eity that � we understand. If the referendum passes, it will reduce the City's excise tax revenues by $1.8M. It would then require either reductions in services or an increase in property taxes. The taxpayers can still make their own decision. � Nealley said that it is up to the Council to decide if there will be a decrease in services or an increase in the tax rate. It is a slippery slope and a gray area of political � advocacy on the excise tax issue. The vast majority of taxpayers in Bangor would say no more new taxes. � Bronson said that there are only two mechanisms to deal with a shortfall in the City's budget: one is to not continue some effort and reduce costs or find new income, which � probably means taxes. He asked if there is a third alternative: In response, Nealley spoke about fiscal stewardship as in one's own household budget and small business. In times of a shrmking economy that govemment likewise shrinks. He spoke of the � racino fund and reserve accounts compared to sidewaiks and street repair. � � � � � � i . � Stone asked for a show of hands of those who want to include excise tax wording on � the back of the tax biil. Based upon the generai consensus of those Councilors present, staff was directed to propose writing related to excise tax and circulate via e-mail for ail Councilors to weigh in on. � Gratwick said that he hopes that solid waste was included in the show of hands. Adjourned at 8:30 a.m. � . � � � � � � � . � � � � � � . � � �