FINANCE COMMITTEE

March 16, 2009

 

MINUTES

 

Councilors Attending: Stone, Bronson, D’Errico, Blanchette, Wheeler, Gratwick

Staff Attending:  Cyr, Barrett, Seymour, Moore, Hupp, Heitmann, Dubois, Gastia

                              

1.                 Executive Session – Workers Compensation Settlement – 1 MRSA Section 405 (6) (E)

 

2.                 Executive Session – Hardship Abatement – 36 MRSA Section 841 (2) 

 

3.                 Open Session – (a) – Recommendation on Workers Compensation Settlement and (b) Hardship Abatement Decision.  A motion was made and seconded to approve staff’s recommendation on Items 1. and 2. 

 

4.                 Consent Agenda

A motion was made and seconded to approve the Consent Agenda items.

a.      Quitclaim Deed – 69 Dirigo Drive

b.     Quitclaim Deed – 303 Lincoln Street

c.      Quitclaim Deed – 51 Poplar Street

d.     Authorization to Apply for & Accept a Grant of up to $5,000,000 to Reconstruct the Cargo Aircraft Parking Apron under the American Recovery & Reinvestment Act

Barrett noted that the City is not yet certain that it will be receiving the grant.  The City has applied for the grant and needs to be in position to respond quickly if notified of receipt.  Hupp noted that the grant does not require a local or state match.  The grant funds for the design have already been approved and the project is shovel-ready.

 

5.                 Bids/Purchasing

a.      Request to Extend Towing Contract – Police

Cyr noted that the City has had a towing contract for many years.  Union Street Citgo has held the contract since the 1980’s. The contract is with a specific company to tow vehicles that are in the way of snow removal, in case of an accident, disabled vehicles. The contract has not been bid for about ten years and will soon expire.  The contractor pays the City an annual fee for the contract at about $12,000.  Part of the agreement proposed by Union Street Citgo now is to increase the rates and the amount of revenue paid to the City.  The proposed contract is a little over $15,200 for a three-year period.  Union Street Citgo has an in-town impound lot, which is easily accessible.  The Police Department has recommended that the item not be placed out to bid and that the Union Street Citgo proposal be accepted.  Gastia said that the impound lot is a secured lot.  Wheeler asked why a fee is associated with the contract.   Cyr said while the company is performing a service, it is not a service for which the City pays.  Union Street Citgo is paying the City for the right to be the sole provider of the specific service.  Barrett likened it to a franchise fee.  A motion was made and seconded to approve staff’s recommendation. Responding to Wheeler’s previous phone call, Gastia said in 2008 there were 262 OUI arrests and most result in towing a vehicle.  There were 361 operating after suspension cases and a number of those would result in a vehicle tow. There were 228 personal injury accidents and 2,335 property damage accidents.  There were 42 miscellaneous towed vehicles.  He said that there are well over 1,000 vehicles that the City has towed. 

 

b.     Sole Source – WWTP – Modicon Quantum Workstation - $13,795

Moore said this is an industrial computer that will provide automatic operations at the Plant and allows the Plant to staff at only ten hours a day rather than 24/7.  Last year, a hardware upgrade was performed and, if approved, this purchase will allow for a backup controller.  Responding to Gratwick, Moore noted that the Plant has 14 full time employees.  A motion was made and seconded to approve staff’s recommendation.

 

c.      Update on Pending Bids

Cyr talked about a tri-plex mower.  The Golf Course had budgeted $22,000 to replace a mower that is used to mow the greens and it would replace a 1989 Jacobson mower that it wore out.  The motor leaks and it burns oil.  In order to use it for the upcoming year, the motor would need to be replaced. The estimated useful life of a tri-plex mower is 7-10 years.

 

Regarding water quality data collection services, Cyr said this item is being placed on hold.  Barrett said that the City has been notified that it will be receiving approximately $2.8M for stormwater projects in the Birch and Penjajawoc Stream area as well as water quality monitoring, testing and gauging and buying a higher quality street sweeper.  At least 50% of the dollars need to be committed with 120 days of Legislation passage, which was in February. The State is looking for most projects to be under contracts at various times.  The street sweeper and in-stream monitoring items need to be under contract by May 30th deadline, the Birch Stream by July 21st and the Penjajawoc Stream by September 30th.   Barrett advised the Committee that items will be coming forward for their expeditious review.  He noted that the monies are a 50-50 split between a grant and a no interest loan.  If approved at tomorrow’s TIC meeting, there will be an Order on the upcoming Council agenda authorizing staff to indicate the City’s willingness to DEP to accept the funds and to meet the deadlines.  Then a bond order will then appear on the Council’s agenda for the first meeting in April.  Barrett also spoke about the overload that this will be placing on the Engineering Department.  Blanchette asked about stimulus funds to provide temporary assistance to the Engineering Department.  Barrett said that staff is looking into this and also is looking to hire outside engineering for some of the projects.  Gratwick spoke about the complexity of stormwater issues and he urged all Councilors to attend TIC meeting. 

                  

6.                 Review of Liquor License Applications and Special Amusement Permits Process

Heitmann said over the past couple of years a number of citizen and Council concerns have been raised about liquor license establishments; i.e. bars.  Under the Statute, public hearings are not held on liquor license renewals.  Staff suggested renewals should be noted on Council agendas for Class 10 and 11.  Police, Fire, Code and Treasury are required to sign off on licenses and renewals.   If staff does not want to sign off, there is currently no formal mechanism in place by which to deal with it. 

 

Heitmann also spoke about the need for liquor license and special amusement permit renewal dates to coincide.  The Statute was originally intended in this manner but real life situations make it difficult.  The City approves special amusement permits and the State approves liquor licenses with the City’s recommendation and the dates might not coincide.  He noted that it is staff’s goal to work over time to line up the two permitting dates at no cost to the applicant.  It would be a gradual process.

 

Responding to Wheeler, Dubois said the committee packet included a list of special amusement permits with liquor licenses totaling 17.  Class 10 and 11 licenses had approximately 10-12.

 

In response to Stone, Barrett suggested that a policy should be put in place for future guidance and direction.  It will appear on the April 13th Council agenda.

 

A motion was made and seconded to accept staff’s recommendation.

 

7.                 Ordinance 09-106, Amending Chapter 9, Section 8 – Standing Committees

 

Barrett said the Council has held several workshops to discuss the standing committee system.  Based on those discussions and his understanding of the consensus at the workshops, he drafted a revised committee ordinance. The Ordinance has had a first reading and will be returning to the full Council for approval.  Prior to final action, Barrett wanted to review it to make sure that the draft Ordinance lines up with Council and staff discussions during the workshops.  Responding to Stone, Barrett said the bigger changes are clarifying that the Personnel Committee will be made up of the chairs of the separate committees with the Council Chair in charge of it.  Jurisdictional changes involve Government Operations which will pick up the City Clerk and also will take over BAT.  The Infrastructure Committee will be shifting the Airport, Golf Course, and Parking Fund to the Business and Economic Development Committee. 

 

A motion was made and seconded to recommend approval to the full Council.

 

8.                 Calendar 2009 Financing Plan

Wherever the City has a significant capital investment to make and grant funds are not available, Cyr said that historically they are paid for through the issuance of general obligation bonds.  The City is large enough to issue enough debt and can go out in a bid situation to the open market to sell bonds.  For the past two years, the City hasn’t entered into the market but staff is now comfortable to go back into the market.  Once a project is authorized for a general obligation bond, the project is authorized by the City Council and any bids, contracts, etc. are also authorized by the Finance Committee or the Council.  Cyr said that this year she is looking to into the market two times.  In April of 2009, the City will borrow about $3.1M for the next twenty years.  It will fund Fire Station 6 at $2.4M and the improvements to Bangor Nursing and Rehab Center at $700,000.  The initial projections show an average interest rate over the 20 year life at about 4.5% and the early years should be significantly lower. In the fall of 2009, the City will look to finance some of the shorter-term projects: vehicle replacement over a nine-year period for just over $1M; energy conservation measures through a lease purchase agreement with Honeywell; local share of BACTS money dependent upon stimulus funding.  She also talked about calling two older bond issues and, as of this fall, there will not be a premium involved to call them.  They are 1997 and 1998 debt issues.  They will be refinancing and wrapped into the larger issue.  On the refinance pieces, there will be a savings in excess of $560,000 over the next ten years.  Responding to Wheeler, the face value of the two bonds to be called is just over $5.4M.  Responding to Gratwick, Cyr spoke about the Bangor Nursing and Rehab Center bonds.  Cyr noted that all of these bonds have been authorized by the City Council.  At an April meeting, the Finance Committee is charged with approving the details of any financing.  Once the bonds have been bid and accepted, the Finance Committee signs off. 

 

In response to Stone, Cyr spoke about previous discussions regarding a design/build of the Columbia Street Parking Deck. Requests for qualifications had been issued and 8 responses were received.  A group of 4 staff members reviewed all 8 proposals and ranked them independently resulting in a list of four firms invited to participate in the interview process.  Stone and the 4 staff members completed the interview process, and Cyr will be following up on references.  Stone suggested a Special Council Meeting on March 23 prior to the Council meeting to review the process and the recommendation.  An Order will be placed on the Council agenda with the team’s name left blank. 

 

Adjourned at 5:55 pm