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HomeMy WebLinkAbout2009-06-15 Finance Committee Minutes ' � � FINANCE COMMITTEE June 15, 2009 Minutes � Councilors: D'Errico, Blanchette, Nealley, Wheeler Staff: Cyr, Barrett, Caruso, Birch, Moore, Masters, Wellington, Gastia, Willette, � Yardley Others: � ]ohn Hanson, Cary Weston, Elizabeth Sutherland, Steve Mason, Erik Russell, ]ack Burgess, Todd Neal ' 1. Consent Agenda A motion was made and seconded to approve the Consent Agenda items, a-f. � Nealley spoke about item e. and Blanchette noted that this item has been discussed several times in executive session. The amount was negotiated by Airport Director � Hupp and F�oconMobil for the airport to purchase, if not all, of F�oconMobil's trucks that BIA uses for its tank farm. Blanchette and D'Errico commended Hupp and staff for their work on this particular issue. � a. Quitclaim Deed — 162 Gariand Street b. U�lity Tractor— Parlcs &Recreation —Greenway Equipment- $19,725 � c. HPC Grant— Martin/WBRC - $10,980 d. Biosolids Disposai Services—WWTP - Contract Amendment with New England Organics � e. Resolve 09-200,Appropriating $1,100,000 from Airport Unanticipated Revenues for the Purchase of Fuel Trucks and E�ocon Mobil's Interest in Assets at Bangor Intema�onal Airpoit � f. Resolve 09-201,Appropriating $35,384 in 2009]ustice Assistance Grant Funds � 2. Resolve 09-202,Appropriating Funds to Support a Lead Poisoning Prevention Program ' C�r said that staff wanted to bring this to the Committee`s attention for one specific reason. This was first read at the Council's last meeting for the amount of$39,000. ■ From the time the Resolve was prepared until last week, the City was notified that ■ the City will be receiving another $40,750 for this particular program. This grant now instead of being a 3-month grant for $39,000 will be a 15-month grant for � $79,750. The item will appear on the next Council agenda and wiil need to be amended by substitution. All of the education and prevention programs performed with this grant will be done in conjunction with Penquis CAP. Yardley said this is a '� Maine CDC Grant that is part of their overall effort to funnel these types of funds through the Healthy Maine Partnership sites around the state. Bangor is one of � those sites. One is a regional effort and one is for the �ty of Bangor, through its Heaithy Maine Partnership which covers 12 communities. The C'�ty is working closely � ' , with Penquis because they have a lead program. The City will be providing some of � the public education, pamphlets and publications. The City will work with Penquis to respond as funds allow and as is appropriate. A motion was made and seconded to refer the Resolve, as amended, to full Council. ■ ! 3. Bids a. Clarifier Repairs—WWTP—Copia Specialty Contractors - $86,490 i Cyr said this came to the Committee for its review prior to RFP's being issued. The gravity treatment portion of the WWTP has steel rakes that go through the biosolids. It is a corrosive process. The steel rakes need to be , sandblasted and recoated. The other part is to do concrete repairs on the primary clarifier. The City received four bids and staff recommends award to � the low bidder, Copia of Brewer in the amount of$86,490. A motion was made and seconded to move staff recommendation. b. Pickering Square Phase 3, 4 &5 — Parking — Hascall & Hall - $690,502 � Cyr noted that the City embarked on the process of regular repairs and � maintenance to the Pickering Square garage. It started two to three years � ago. Two full phases of the restoration have been completed. Last year, during phase two, staff asked the Council that the bid process be waived to use the contractor used in the first year. At that time, Council approved the , waiver with the understanding that the C'ity would bid out the next three phases all at one time. Four bids were received for Phase 3, 4, & 5. Cyr noted that this type of repair work is aiways subject to annual appropriation. � Staff has recommended the low bidder, Hascatl & Hall, for a total three-year price of$690,502. John Hanson Ban or resident Exec tive Direct r f � , g , u o o the Mame State Buildmg Construction Trades Council, argued in support of the second bidder, ' Contracting Specialists, Inc (CSI). He is familiar with this company, they are signatories to the Trade Council's agreement, do a great deal of work in Maine, utilize Maine workers, and have an impeccable reputation. Hanson � noted that getting the lowest bid is not always the cheapest bid and, as an iilustration, spoke of the HVAC problems at the new Police Station. All too often, he feels that low bidders end up costing the C'�ty and the taxpayer � more money. In this case, the doilar disparity between Hascall & Hall and Contracting Specialists is relafively small —a $39,000 difference. Contracting Specialist is a company most particularly suited for those conditions that are � subject to deterioration and weatherization. Looking at their specific proposal for the Pickering Square garage, Hanson said their focus has been almost � exclusively in this type of work. It's not just repairing the damage done by climatic circumstances but also in taking remedial steps to assure that the deterioration is slowed down. He said that Contracting Specialists takes on � the challenging jobs. � � . � � � Hanson continued indicating that Contracting Specialists provides the � generally accepted array of fringe benefits to its employee. Hascall & Hall offer a health care program but the burden for that falls entirely on the � employees. He is in hopes that the City will favorably consider utilizing Contracting Specialisfis in this particular case. , � In response to Wheeler, Hanson replied their CSI's headquarters are located- Massachusetts and have offices in Portiand. Responding to Wheeler, Cyr said that Hascall & Hall's home office is in Portiand. Wheeler asked for specific � information as to whether Hascall & Hall is a Maine owned and operated company. Cyr said that the bid tab is signed by Robert Bergeron, who is � located on Presumpcott Street in Portland, Maine. Wheeler asked how Hascall & Hatl qualified higher than Contracting Specialists. Gyr explained that total bid price is the starting point used. All qualifications and experiences are then ' reviewed. In #�is case, five specific examples of recent similar work were required. Becker and Structural checked with all of the five references. Becker physically inspected one of the garages where Hascall & Hall had done � similar work to repair and reseal joints. Wheeler asked if Contracting Specialists were given the same �ind of background check. Cyr said they were not only because of the fact that the City has extensive experience with ' Contracting Speciatists at this point and have been very happy with their perFormance. The City has no issues with their work quality. Last year, the bid process was waived and allowed CSI another year of contract with the , understanding thafi the City would bid it out this fime around. All things being equal, tfie City would have probably stayed with Contracting Specialists but all things are not equai. It is the City's policy to go with the low � responsive bidder. If there had been any concems about Hascall & Hail's perFormance, staff would not have made this recommendation. � Nealley said one of the issu� is the fact that Contracfing Specialist has had a two-year working relationship with the City. In due respect to the information provided by Hanson, Nealfey feels it is difficult to see where there �� are other substantial differences as to why the City should waive its tradition of going with the lowest bid in this case. � Nealley made a motion to move staff recommendation. Blanchette said she was not ready to second the motion. She asked for clarification as to � whether there is a written policy that the City will aiways go with the lowest bidder if all specs are met. Cyr said the procurement regulations stipulate � that the �ty make a recommendation that is in the City's best interest. It does not define the parameters of best interest. Historically one of the factors being used is cost, another is past experience, another is similar � experience. Blanchette clarified that this is stafP's recommendation and not necessarily one that will agree with how the Council votes. She stated that � � � the Council has the final vote. Blanchette spoke about structurai issues � when the parking garage was newly opened and money needed for repairs. Parking structures within themselves are an art. Blanchette stated that she was not comfortable seconding staff s recommendation. More information is ' needed. D'Errico asked for the representafives to come to the table to speak. Cyr ' introduced ]ack Burgess from Becker Structural. The City has had a long history with this firm. With Becker's guidance, the City has embarked on a maintenance plan for the parking garage. , Blanchette asked if the City can get the performance needed from Hascall & � Hall that it has received from Contracting Specialists. Burgess said that Becker Structural has never worked with Hascall & Hall and felt it was due diligence to follow up with the references. Burgess visited with Unum parking � garage on site to hear a review of the work perFormed by Hascall & Hall. Unum's repre.sentative had nothing to say but good things about the work of Hascall & Hall. Unum, being an insurance company, was very safety � conscious, and felt that Hascall & Hall met the criteria. Unum noted that the crew was courteous to employees. Unum said they would hire Hascall & Hall again without doubt. Burgess said the sealant work at the Unum project was ' very good. There was an unexpected rain storm that took place before the sealant was fully cured causing issues. Hascall &Hall removed that section and replaced it without cost to Unum. Responding to Blanchette, Burgess , said he did not know he linear footage that was replaced. Burgess also checked with the City of Portland's parking manager; who said he would hire � Hascafl &Hall anytime. Burgess also noted that Becker Structural has had a good working experience with Consulting Specialists. Responding to Blanchette, Burgess said that he believes Robert Bergeron of Hascall & Hail � lives in the Portland area. Burgess did not ask Mr. Bergeron specifically about his residence. � � ��Nealley asked which firm would have more Bangor area employees or contractors working on the project. Burgess said he is not certain of the location of Hascall & Hall's workforce but believes they are in Maine. The � firm is involved with two other Bangor project�: EMMC and Bangor Hydro. Responding to Nealley, Hanson said that GSI has had other Bangor projects. He could not speak as to how many of their workforce is from Bangor. They � do draw from the immediate area. They are a unionized company and go through the union hiring hall, which puts people to work from the immediate area. In this case, CSI has utilized the immediate Bangor area people 100%. ,� Hanson did not have�knowledge of Hascall & Hall's worl�orce. � � ! � 1 � Nealley said he would contemplate a reconsideration of the original motion. He would like to see the Committee be consistent with it moving forward and he thinks the City should be preferential to those who do the most for the f local economy. When there aren't considerable price differences, Nealley said the City's bias should be with ongoing relationships instead of jumping into new untried, untested relationships. The City may want to factor this into the , qualifications in looking at entering into the bid process, he noted. � If this is approved by the Committee and before the Council votes on Mond�y, Blanchette said she would like information regarding Hascall & Hall's workforce. Bringing a workforce from the Portland area does not help Bangor , taxpayers. She is impressed with CSI's medical insurance plan for their workforce. Responding to Blanchette, Hanson said that Hascall & Hall is not a union shop. Bianchette asked Hanson to provide information about the � surrounding areas covered and the people who have worked for CSI in the Bangor region; i.e., Orono, Hermon, Old Town, etc. � Responding to Wheeler, staff noted that the motion has not been seconded. Blanchette asked that this item be moved to the full Council with no recommendation from the Finance Committee. The Council of nine will ' decide the issue. Wheeler seconded. c. Paving —Airport— Lane Construction Corp - $118,816 � D'Errico noted this reclaiming/paving is for a portion of Godfrey Boulevard as well as the Eldur Corp parking lot. Two responses were received to the �ty's ' bid. Staff recommended award of the contract to the low bidder, Lane Construction Corp, in the amount of$118,816. Caruso noted that the Eldur parking lot was last repaved in the late 70's or early 80's. Wheeler questioned � the number of days n�ted in the bid response to complete the projects. Lane has a comple�on time of five days and the other bidder with flfty days. Cyr said the memo information is correct and was provided by the bidders. Once � given notice to proceed, Lane indicated they could complefie the Godfrey Boulevard work in five days and the Eldur Corp work within ten days. Thibodeau's bid indicated fifty days for both Godfrey Boulevard and Eldur � Corp. A motion was made and seconded to recommend approval. The item will be referred to the full Council. � d. Aircraft Deicing Truck—Airport= Premier Engineering & Manufacturing - $285,720 � In the end of fiscal year 08, the Council approved the purchase of a new aircraft deicer using unanficipated revenues. The Airport anticipates replacing a 1985 model that is currently experiencing some major � maintenance issues such as cracked tanks, engine problems, heater problems and electrical issues. In 2005, the Council also approved the purchase of a , � � new aircraft deicer that was much more user friendly and safer. The Airport ' intends to purchase a very similar model at this point. Caruso said the Airport is looking for the ability to deice larger aircrafit. The Airport received 4 qualifying proposals for this bid. A selection committee reviewed the � specifications carefully and chose not to select the lowest bidder because it did not meet the extended boom height minimum that was requested in the RFP. A specific return on investment was developed based on overali cost�, , operational data, annual revenues from deicing services from current airiine tenants, additional diversions, improved cycle time benefits such as reduced � energy costs, greater fuel efficiency, reduced maintenance costs. Through this report, a retum on investment should be achieved in year 7 of the anticipated life cycle which is over 25 years. ' D'Errico explained that deicing is one of the numerous services that BL4 provides and that there is a fee attached for each deicing. Caruso said it is � part of the ground handling service offered by BIA. It is a component of BIA's operation. A motion was made and seconded to approve staff recommendation. The � item will be moving forward to full Council. e. Towbarless Tractor—Airport—TLD America - $614,684 , Caruso said that in 2008 the Council approved the purchase of a new replacement wide body aircraft pushback tractor for the Airport. As part of its � ground handling division, BIA maintains a wide body aircrafit pushback. The eurrent unit was made and manufactured in England, has pertormed well and � is nearing the end of its useful life. Staff recommends purchasing a new unit. D'Errico noted that this is the second piece of equipment purchased from Great Britain. A return on investment was developed and is expected in year � 17. The life span of the unit is 25 years. The selection committee reviewed the bid proposals and recommended award to the low bidder, TLD America, in the amount of$614,684. Nealley noted that much of the airport's essential � equipment is purchased with AIP funds. A motior� was made and seconded to approve stafPs recommenda�ion to full Council. Responding to Blanchette, Caruso said it is not part of the landing fee but part of the ground handling ' package. Blanchette said that in the future it might be educationat for Airport staff to provide an update on annual income from the deicing service. D'Errico agreed that it would be interesting for the public. Wheeler supported t Blan�hette's request for the additional information. f. Liability Insurance—Airport—Global Aerospace - $307,880 i On an annual basis, Cyr said that the City has been working with Sargent Tyler and West to obtain quotes for airport insurance.� It is a very specific � market. The Airport's current carrier is Global Aerospace, who has provided a � � i � renewal quote. The coverage limits are remaining the same. Last year, the Airport increased its liability limit. Global was the only carrier to bid on this item and the recommendation is to award the bid to them for a total annual � cost of$307,880. The current policy is $286,800 to Global. The Airport has� had a couple of claims causing the increase. A motion was made and seconded to move staff recommendation to the full Council. � g. Public Relations—Airport—Weston/Sutherland Group Masters noted RPF's were sought in March for two areas: one for public � relations and one for advertising and marketing. Through a process of a setection committee comprised of Council members and stafF, the proposal ' presentations have been reviewed and arrived at two recommendations, one for each contract. � The first recommendation is to award the public relations contract to Sutherland and Weston of Bangor for a three-year term. Nealley commended the choice of a Bangor firm. For the public relations contract, Masters said ' there were six total responses. There were three responders that were eliminated due to their lack of substantiating their credentials. There were three in-state responders, one from Bangor, Portfand and Lewiston/Aubum ' area. Of the three, Sutherland/Weston stood out as the agency which had the best grasp of what the Airport is facing for a public relations situation and throughout the Downeast, northem and central Maine area. They know the � market piace and have the skilis to work with the Airport in a professional manner. They understand the dynamic of the industry in Bangor from not � only a tourism standpoint, but also from an indus#ry for cargo and other services pertormed at BIA. ' Blanchette asked Wheeler for his expertise in the market as well as his service as a Council representative on the selection committee. Wheeler said it was an interesting experience. He believes that the selection of a local firm, � given all other requirements having been met, that it is a very wise choice. Masters said ifiat in the interim, while the Airport has been without a public rela�ons agency, Sutherland/Weston did win the quote for a short-term � project and have been extremely cooperative and excellent to work with. Blanchette noted that she was Legislative roommates in Augusta with Sutherland's mother. Responding to Wheeler, Masters said there are two � termination provisions in the contract, one for a 7-day and one for a 30-day termination. , A motion was made and seconded to approve stafPs recommendation to award the bid to Sutherland/Weston for the Airport's public relations contract. � , � � � h. Advertising -arport—Swardlick � Masters then discussed the marketing and advertising contract, which covers scheduled air service, corporate general aviation, air cargo and international � charter potential business. The sefection committee was the same committee that covered the pubtic relations piece and recommended Swardlick Marketing Group of Portland for a three-year contract with the start of the � new fiscal year. They have experience in the transportation side of the industry, a wide array of clients including Maine O�ce of Tourism, Maine � Department of Transportation, Maine Tumpike Authority, M�TS, Bentley College, and m the past LL Bean. Steve Mason, Managing Director of Swardlick, was in attendance. Nealley indicated his familiarity with the organization and they come with high credentials. Wheeler spoke about ,� social media, a new phenomenon in the marketing field. He noted that both Sutherland/Weston and Swardlick use Twitter and Facebook. � A motion was made and seconded to approve staff recommendation. This will move forward to the full Council for its final action. ' i. Update on Upcoming Bids C�rr said the two pending items are both Airport related. The first is a �anopy ' over those lanes used when exiting BIA's parking lot and moving forward to the ticket booth, both the credit card as well as the manned machines. It will provide weather protection for the booth, the equipment, the operator and � the patrons. It is a two posted canopy design and would fit well over the existing booth layout and blend in with the surrounding structures. The total � estimated installation cost is estimated at $65,000-$70,000. These funds are available with the Airport's capital budget. The second item is related to fencing around the employee parking lot. At ■ the moment, it is a split rail wood fence which requires post replacement in the spring due to the wintertime plowing. The request is to replace it with a � metal guard rail type fence, similar to other parking areas on the Airport properly. � RFP's will be issued unless the Council does not ap rove. � P 4. Assessors Update � � Birch noted that he provides an update to the Finance Committee several times annually as to assessments and the local real estate market. He said ' that all of the work has been completed for the residential properly owners, single family, condo, and mobile homes. This involves 101 residential neighborhoods. St�ff has reviewed each neighborhood, performed a sates � ratio anatysis, and only three neighborhoods will see increases in valuation. It � i � � consists of 56 properties. Neighborhood 33, (LaBarca Lane and Greenfieid Avenue) due to tack of sales, have not had an increase in valuation for four years. Neighborhood fi9 (Gynthia Circle) witl see a siight increase. � Neighborhood 78 {Bolling Drive and Langley Street) is single family and mixed multifamily, and only the mixed multifamily will see the increase. � Commercial properties were more of a challenge this year due to lack of development for the future. Staff utilizes the Marshall and Swift Cost Service � on an annual basis to adjust its individual cost files supported through the market activity on commercial property. The April 1, 2009 data indicated that typically the commercial properties should be adjusted by 11%. Phil Drew, � Deputy Assessor, consulted with some architectural firms and local builders and staff has utilized a local multiplier in Marshall and Swift's manuaf for Bangor specific. Staff has ruled those multipliers with a 5% negative � adjustment for next year. Birch reviewed the complexities in dealing with commercial property and talked about the five classes of construction. Looking at next year, there are only 3 small commercial developments ' forecast to be build and completed. There is also an abundance of labor surplus. Both factors contribute to the slowing of the local economy. � Barrett clarified that commercial properties would see a percentage adjustment less depreciafion. � Birch spoke about personal property. In 7anuary, 2,720 property declarations were mailed out by the Assessing. As of]une 10"', 1,781 declarations had been retumed. Since]ur�e 10�', some additional declarations have been � received and all have been processed. He noted that about 1,600 large commercial personal properly owners file electronically. � Birch noted that the TIF commitment information report will provided in July. The tax commitment date is tentatively set for July 8"'. Harris Computer � Soflware will assist the City to transfer the numbers into the collection side to start the next fiscal year. , Assessing staff is working on its Power Point presentation and it will be aired on the Govemment Channel in August and again in September. It will also be available on the City's web site as of]uly 29th. ' S. Resolution rovin the Terms of a 1960 000 ARRA Loan �►Pp 9 $ . , � C�rr nofied that the Finance Committee is charged with adopting a resolution each time the City issues debt. Earlier this spring when discussing the sdmulus money, the City was awarded�ust over $2.8M in stimulus funds � through the EPA via the Maine Department of Environmental Protection. It was mainty for non-point source stormwater improvements to the Birch Street , ' � and the Penjajawoc watersheds. It also includes the purchase of a street , � sweeper and data Iogger and monitors. Paperwork needs to be processed and this Resolution will authorize the issuance of just over $968,000 in bonds to fund $1.9M of debt. A portion of it is a grant, totally forgiven, and the � other portion is interest free. While the loan amounts to $1,960,000, the City will actually repay $968,908 interest free. The remaining $991,092 wiil be principal forgiven. The EPA wants to do this in phases. The projects the City , currently has underway are the data loggers and monitors, the street - sweeper and the Birch Stream projects. In a coupie of months, there will be � another similar Resolufion for the Penjajawoc projects. Blanchette asked about in-stream mon�toring equipment. Respondmg, Gyr said the equipment is put into the stream and it gathers water temp, rain fail, etc. Based on the � coliected information, the City will be able to find a way to restore the streams to a level that they should be at and to see how any changes impact . the streams. , 6. Discussion Item - Interim Depar�nental Reporting Due to the absence of Bronson and Palmer, Nealley made a motion to table , this item to the next meeting. It was seconded. The Committee adjourned at 6:30 pm. � � � � � , � � , �