HomeMy WebLinkAbout2017-02-15 17-084 RESOLVECOUNCIL ACTION
Item No. 17-084
Date: February 13, 2017
Item/Subject: Resolve, Appropriating $636,614 from the General Fund Unassigned Fund Balance to
Fund Building Improvements at 103 Texas Avenue
Responsible Department: Finance
Commentary: This Resolve will appropriate $636,614 from the General Fund Unassigned Fund Balance
to fund building improvements at 103 Texas Avenue. In 2000 the Council turned operations of a City
owned nursing over to a private non-profit corporation. The Bangor Nursing and Rehabilitation Center
(BNRC) was created for the purpose of acquiring, managing, and operating the nursing home. Given that
certain financial support and other matters needed to be addressed to continue the operation of the
nursing home the City and BRNC entered into an Agreement (Master Transaction Agreement). The
Agreement included a provision that the City provide funds to address recommended capital
improvements identified in a report prepared by Carpenter and Associates in the estimated amount of
$2.25 million. Improvements have been made over the years and there now remains $636,614 of the
original $2.25 million. The Agreement also provided that the parties would negotiate a lease for the City's
use of part of the building for the Health and Community Services Department and the City has leased
space since the City conveyed the property to BRNC.
BRNC now had a need to spend some of the remaining capital improvement funds to do some
improvements necessary maintain their State and Federal reimbursement for services to its clients. BRNC
has estimated that the cost of the improvements to be approximately $420,000. In addition, the portion
of the building leased by the City needs some capital improvements including asbestos abatement, mold
remediation, security such as doors and the layout of the space, and other life safety improvements
repairs. As a result, the City and BNRC agree that what after BNRC expenditure of approximately
$420,000 will be used to pay for the needed improvements to the leased portion of the building. The
completion of work on under this expenditure will conclude any obligations the City incurred under the
Master
This item was reviewed and recommended for passage by the Finance Committee on February 6, 2017.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
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Department Head
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City Manager
Page _ of
Vi'Mance Director
City Solicitor
17-084
FEBURARY 13, 2017
Assigned to Councilor Sprague
CITY OF BANGOR
(TITLE) Resolve, Appropriating $636,614 from the General Fund Unassigned Fund Balance to
Fund Building Improvements at 103 Texas Avenue
BE IT RESOL VED BY 77 -IE CITY COUNCIL OF 77-1E CITY OF BANGOR, THAT
The Finance Director is hereby authorized to appropriate $636,614 and establish a capital
project for the purpose of funding building improvements at 103 Texas Avenue.
IN CITY COUNCIL
FEBRUARY 15, 2017
CR 17-084
FIRST READING
CITY CLERK
IN CITY COUNCIL
FEBRUARY 27, 2017
CR 17-084
MOTION MADE AND SECONDED FOR PASSAGE
SASSED
CITY CLERK