FINANCE COMMITTEE

July 20, 2009

Minutes

Councilors: Stone, Palmer, Nealley, D’Errico

Staff: Barrett, Cyr, Cammack, Wardwell, Gastia, Hupp, Ring, Birch,

Little

Others: Dave Mansfield, Frank Carr

1. Bids/Purchasing

a. Sole Source Procurement Request – Thermal Imaging Cameras – Fire – Mine Safety Appliances Company - $22,969

As part of the Fire Department’s 2008 Homeland Security Grant funding, Cyr noted that approval was granted for the purchase of two thermal imaging cameras. These will replace two older cameras which will be offered to other fire departments that might have a need. Going with Mine Safety Appliances Company allows continuity in the level of supplies that are on all engine units. Cammack said the older models will be offered statewide as a purchase. Responding to Palmer, Cammack was not certain how these units would fit for energy conservation measurement purposes. In response to Stone, Cyr said the Homeland Security Grant funding works through the State notifying the municipality of the amount of money allocated to Bangor. As a group, Bangor Police and Fire look to see what items would fit within the purchase guidelines. Cammack said the $22,969 is a bit under what was projected for budgeting. Any remaining funds can be used for other needs but need to be processed by an amendment through the Maine Emergency Management Agency. A motion was made and seconded to approve staff’s recommendation.

b. Sole Source Procurement Request – Firearms Range Master Control – Police – MANCOM Manufacturing - $19,180

Cyr noted that this is another sole source requirement from the Police Department. When the new station was constructed, staff was informed that the master control for operating the firearms range was expensive so staff made the decision not to install it at that time. Gastia has been in contact with MANCOM Manufacturing who provided a quote of $19,180 for the master control. Cyr explained the workings of the master control. For a fee, other agencies use the range for training purposes. Responding to Nealley, Cyr said the item was included in this year’s budget discussions pertaining to capital items. A motion was made and seconded to approve staff’s recommendation.

c. Sole Source Procurement Request – Traffic Controller – Public Works – Econolite - $13,743

Cyr said that last year the Finance Committee was asked to waive the bid requirements to purchase an Econolite traffic controller for the Broadway and Stillwater intersection. This is a similar request for the intersection of Broadway and Cumberland. In order to interconnect all of the signals on the Broadway corridor it is necessary to have the same types of controllers that mesh together. The City has done significant business and has a good vendor relationship with Econolite over the years. Wardwell said that the Broadway and State Street intersection will be next updated. A motion was made and seconded to recommend approval.

d. Stormwater BIA Contracts 1 – 4 - Engineering – Information to be provided at the meeting

Cyr said that the Council had received a memo late Friday afternoon via e-mail as an update for this item. In review, she noted that the City received nearly $1.7M in the Federal Recovery Act Funding program for stormwater improvements in the Birch Stream area. The City segregated it into four separate projects realizing there would not be sufficient funds for all needed improvements. When bids were opened last week, there was a significant amount of interest. The low bidder’s pricing was well within the City’s budget estimate. The low bidder vendor contacted the City late Thursday afternoon indicating they had made significant errors in their bid submissions and asked to have their bid withdrawn. Staff allowed the withdrawal. Since that time, the City Engineer, his staff and Maine DEP have worked extensively with the other lower bidders to come up with a project that fits the amount of funding available. It was accomplished through value engineering looking at all of the quantities and work requested and picking out the more important pieces of the project and focusing solely on those.

Ring noted that in working with DEP last Friday the City was also able to secure an additional $163,000 in Stimulus Funding to supplement the previously awarded $1.7M. Two of the largest changes are the sediment that will be removed from the big channels on either side of Godfrey Boulevard. DEP has concurred that it can be used as backfill in some project installations as opposed to hauling it away. The second is a change in the design of the channel protection. These channels are basically going to be narrowed up and the sides will have stone armor and some wetlands will be created among other things. Through the efforts of many, Ring said he was pleased to be able to define projects and revise pricing on the two larger ones. On the third bid, he noted an award of $83,000 which was a series of infiltration swales which are basins that receive stormwater and treat it. In total, two major contracts will be completed and some of the third one. At this time, staff is not recommending any work to be done on contract four which was pavement removal. The contracts had been numbered in order of priority.

Ring summarized the contract awards. Contract one will be awarded to the Sargent Corporation in the amount of $690,503 representing a reduction of $131,700 from their original bid. Contract two will be awarded to Vaughn Thibodeau in the amount of $928,604 representing a reduction of $404,219. Contract three in the amount of $83,635.

This will leave slightly over $100,000 for contingency.

Palmer noted that these are all funded through the American Recovery Act dollars. A motion was made and seconded to approve staff’s recommendation.

e. Engineering & Architectural Services – Airport Improvement Plan – Airport – Jacobs

In late spring of this year, Cyr noted that the City was required to go out for Request for Qualifications for engineering and architectural firms related to Airport Improvement Projects (AIP), which is the Federal grant program through which the City receives for funding Airport improvements. Typically the Federal government pays 95% of the total construction and engineering costs with the State and City each paying 2½%. The City’s share is paid from Airport revenues. A requirement to participate is that the City must select an engineering firm for this particular type of work. The City had three responses to its RFP from Hoyle Tanner and Associates, Jacobs, and McFarley & Johnson. Staff reviewed all qualifications and recommend the next five year contract be awarded to Jacobs, the company that has been used for the last twelve years. Responding to D’Errico, Hupp said that estimates for engineering projects under AIP are all reviewed by an independent consultant before award of bid. The independent consultant used for the past nine years is Dick Cattelle. A motion was made and seconded to approve staff’s recommendation. Responding to Stone, Hupp said the dollar amount for the independent consultant is relatively minor and does not meet the threshold for requiring a bid.

f. Request for Qualifications – Wildlife Hazard Study - Airport

About two weeks ago, Cyr said that the City had been notified that it had some funding available to complete a Wildlife Hazard Study at Bangor International Airport. The deadline attached to this is by the end of July. It requires a competitive qualification process. One of the FAA requirements is that pricing cannot be asked for but for only qualifications. The estimated total cost is $80,000, and 95% will be contributed by the Federal government with the State and City contributing 2½% each. Airport staff has put together and distributed a letter of request for qualifications. Two responses have been received and a third is expected this week. The request from staff to the Committee is to seek authorization for the Airport Director, in conjunction with the City Manager and the Finance Director, to actually award the contract to the best qualified response. Because of the deadline timing, time does not allow it to be returned to the Finance Committee and Council. Responding to Palmer, Hupp provided an overview of the project. Stone asked about the anticipated end result of the study. Hupp said as part of it is to review what BIA is doing currently to mitigate aircraft interaction with wildlife. The study may provide recommendations to improve the Airport’s current efforts, reduce habitat and those types of minor improvements. A motion was made and seconded to approve staff’s recommendation.

g. Update on Pending Bids

Cyr noted that the first item is a fairway mower. There was $39,000 included in the FY10 budget to replace the current mower, which is 18 years old and needs many replacement parts. The City will go out for bid for either a new one or an unsold previous year model.

The second item is police vehicles. The City has cut back substantially on what it had anticipated replacing as part of its Fleet Replacement Policy. Two cruisers are replaced annually. These two would replace two older models that are costly to repair and to operate and both have in excess of 120,000 miles. The approximate cost for two new vehicles is an estimated $56,000.

The third is a front end loader. The City has been doing a buy back on loaders for the past several years. The City purchases the loader, uses it for 3-4 years, and returns it back to the vendor with a guaranteed payment back at the end of the contract. This particularly loader was purchased in October of 2005 and needs to be returned in October of 2009. It is used year round both for construction and snow plowing. The estimated cost is $175,000.

The fourth is a police command vehicle, which is a 1997 Ford Expedition with 125,000 miles. The Police Department received a grant to replace this vehicle. The current vehicle will not pass inspection without expensive body work and brake line replacement. For the new vehicle, the Department will look at program vehicles or last year’s model with less than 10,000 miles. The anticipated cost is $25,000-$28,000.

The fifth item is for the remainder of the necessary purchases to upgrade the Broadway and Cumberland intersection as discussed with the bid item above, Econolite traffic controller. This includes mast arms, video detection systems, and signals. The total cost estimates $37,100. This is a BACTS project with 90% Federal and state and the City’s local match is 10%.

The last item is the Perry Road Pump Station which needs improvements and upgrades and which was originally installed in 1973. The City has worked previously with CH2M-Hill to provide some engineering services for this project. The work will include upgrading and increasing the capacity of the pumps and completing an electrical overall of the station itself including the installation of variable frequency drives. The Treatment Plant has $350,000 available through the revolving loan fund. The City has previously entered into a contract to borrow that money last spring. The estimated budget for this is $287,000.

Regarding the fairway mower, Nealley said he would like to see the City find a unsold previous year model. Responding to Nealley’s comment about the front end loader, Cyr said the used equipment is looked at on occasion but the City’s practice of late has been to go with the lease buyback. Wardwell said these are the large versatile prices of equipment which have the plow and wing, are hooked up to the large snow blowers for snow removal, and are used with buckets for loading snow and gravel. Part of the 4-5 year buyback plan is that the vendor guarantees what the City will experience for repairs during that period of time. Responding to Palmer, Cyr explained that Fleet Maintenance staff, who are licensed by the State Police, inspect City vehicles. It is not considered a conflict of interest. Stone talked about the fairway mower and Barrett said that the Golf Course has revenues that have historically exceeded its expenses.

2. Request for Funding – Senior Little League World Series Banquet

Cyr introduced Dave Mansfield of the Senior Little League World Series, which returns to Bangor in August. In prior conversation with Palmer, Mansfield asked about using the Civic Center for their annual banquet. The Series has submitted their application request funding as required by City policy to fund the $1,300 for the Civic Center rental for the banquet and player presentations. Cyr pointed out that the City does contribution $8,500 for an ad for the Series and also provides some goods and in-kind services from Parks and Recreation. This is the first year that the Series has asked for the City’s participation with the banquet costs. In 2004-2006, the banquet was held at the Civic Center and paid for the full rental. Since then, it has been held at the Elks Club. Three City Councilors requested that this request be heard by the Finance Committee. Based upon the application and the recent past practice of the City Council, Cyr did not feel that the request met the established criteria of the City’s policy.

Responding to Stone, Cyr said that she doesn’t feel the City’s support is essential for the program/project to take place. The criteria set forth in the policy deals with the benefit of an event to the City and its residents will receive. Cyr doesn’t feel that there is a sufficient number of Bangor residents to benefit from this event.

D’Errico spoke about the $8,500 for an ad, which he clarified was paid for by the Airport and by the Economic Development marketing budget. Cyr said there was concern expressed as to whether the money was for an ad or considered a contribution. There was an issue with the terminology. For the first few years of the Series, the City made outright contributions.

Mansfield, Stadium Manager and President of Bangor Baseball/Softball, Inc., a division of Bangor Westside Little League, said he views the $8,500 for the ad as support from the City to bring individuals from all over the world to Bangor. He listed the countries to be represented including the Philippines, Aruba, Italy, Canada. It costs $140,000 to house and feed the kids, transportation, and use of the stadium. Mansfield feels the City needs to put its best foot forward for the incoming young adults and their families in providing the best facility for the banquet which honors the worldwide champions. ESPN will be televising the Championship games. Mansfield is looking for more advertising at the facility focusing on Bangor, Maine. No demographics are available as to what the Series brings to the city. He focuses on using local and statewide vendors for the event. Local individuals attend the series. He noted that the Elks Club site is very crowded and hot for the Series’ banquet. The Series raises over $30,000 in gate receipts. There are sponsors involved as well.

Nealley praised Mansfield’s efforts. He is concerned about honoring any non-essential municipal services for spending. He stressed that the Series is a fantastic event for Bangor. He talked about the $8,500 as a contribution/ad from the City, which shows the taxpayers of Bangor are showing support at that level. He said he could not support any additional City support at this point.

Palmer said that this event adds a tremendous amount to the community. These are tough times and he looks at it as an in-kind request in that the building is in place and extra staffing would not be required. In-kind is as important as hard cash. Palmer noted that the City supports the AFF at $85,000 plus the in-kind provided for that event. Why not showcase the best that Bangor has to offer to people from all over the world. Palmer praised Mansfield, St. Pierre, Owen and Booker and numerous others involved with the Series. Palmer said he would be supportive of the request.

Responding to D’Errico, Cyr said the Civic Center is an enterprise fund. Typically, if the Council determines that it wants to support an event at the Civic Center, the amount of money would be approved and transferred out of the Council’s budget. This year, the actual budgeted amount in the Council’s budget for this purpose is $1,450.

Stone noted he had received an e-mail from Councilor Wheeler, who supports this request.

Responding to Stone, Cyr said there is $1,450 available for this purpose in the Council’s budget. Historically the City has funded around $450-500 to Camp Bangor. She noted that there have been no other requests approved over the past several years other than Camp Bangor. She indicated that it is a direct tie to Bangor’s taxpayers. The total cost of the banquet event to the Series is $11,368. $9,000 is related to meals and the other $2,368 is related to the Civic Center costs. $1,300 is the Civic Center rental and the rest is for the cost of staffing and set up. The Series estimates raising $2,000 in ticket sales for the banquet. The full Council will review this only if it is forwarded to them by this Committee.

Mansfield said he raised $140,000 of which several service clubs are very much involved as well as the Air Guard and local businesses.

Without taking a vote at the Committee level, Stone asked that the item be placed on the full Council agenda. When the Finance Committee meetings moved to 7:30 am in the summer months, Stone heard from Wheeler and Blanchette, who were not able to attend the morning meetings, and Stone would like all Councilors to have the opportunity to vote on the request. Stone asked Mansfield to attend the Monday Council meeting. Cyr said she will put the item forward to Council without Finance Committee recommendation.

Mansfield and Palmer continued to talk about marketing. Palmer invited Mansfield to the July 28^th 175^th City’s Birthday Committee to discuss some promotional efforts.

3. Discussion Item - Proposal for a Cost Savings Committee

Cyr explained that Frank Carr had previously contacted Norm Heitmann about some cost savings committees in other communities that are normally comprised of City staff, and Carr wanted the opportunity to speak to the Council on this behalf.

Carr noted that he is a Bangor citizen and a retired City Airport employee and also retired from the Federal Government at the Airport. He has previously been involved in what was called a Shrink Committee in a retail business, shrink being waste. The committee was involved with identifying waste and ways to save money. In looking at Council, budget, and committee meetings on a whole this year, Carr knows how important it is to the City and the taxpayers to save money. He said that this opportunity would cost the City nothing. He reviewed bullet points which he had provided to the Committee in writing:

-All City employees in all departments will participate in this with no exception.

-A rotating cost saving committee is formed which will over time give everyone a chance to serve on that committee.

-The results are measurable and quantifiable.

-The employees can be recognized for their efforts.

-Carr did this program with the TSA at the Airport with very good results. An approximate $27,000 was saved.

-The mechanics of the program include:

-Formation of a committee with a representative from each department

-Employees look for ways to save money in their department; i.e. reduce supplies, material costs and/or reduce labor required through efficiency. This is a good way for employees to come forward with cost saving ideas.

-Each employee’s idea is considered by the committee with a guarantee that the committee either voted to move the item/idea onto the City Manager or his designee or move it back to the employee with a written explanation of why it could not be used.

-When submitting an idea to the committee, the written idea must be complete with details on achieving it. Carr noted that from past experience if this is done properly the employee is not rebuffed by it and are thanked for bringing forward the request.

-Each employee may be publicly recognized for an accepted and enacted cost savings by way of certificates, recognition at Council or committee meetings.

-Suggested frequency of the meetings usually starts on a monthly basis and then as needed.

-The cost savings committee along with the department heads is encouraged to give an approximation of the exact dollar figure for any City Manager to accept an idea which had been enacted.

-The City Manager or his designee must present the program to each department and answer any questions at that time. Carr noted that Farrar was involved in many of these meetings at the Airport, was always a very good advocate and would be a good person to present this program.

Nealley thanked Carr for presenting the program and expressed support. He noted that both Barrett and Cyr are fiscally frugal and wouldn’t want to be penny wise and pound foolish. Responding to Stone, Barrett said that staff is getting ready to do detailed reviews of departments in advance of next year’s budget and this suggestion might be something to bring back at that time after having more time to consider it. He did point out that back in the early 90’s the City did adopt a policy urging that employee with suggestions for cost savings come forward and there was a policy under which they would share in the financial savings with any recommendations that came forward. Barrett said that he was disappointed as there were very few recommendations received through that process. He said he is not opposed to it but one of the difficulties with citywide efforts is just organizing it because of the number of departments, locations, and work schedules. Barrett said he would be glad to spend time with Cyr and Carr and come back to the Committee with more information.

Carr said he understands the departmental logistics but stated that only one member from each department would be involved with the committee. Each employee has the opportunity to serve on the committee at some point as the membership rotates. In many cases, the committee will kick back cost saving suggestions if the suggestion is not viable. The City Manager or his designee will review the cost saving suggestion and have the opportunity to send it back to the committee with a reason.

Stone asked that Cyr, Barrett and Carr get together and return to the committee.

Palmer applauded Carr in coming forward with cost saving ideas. If employees can be a part of the process, he encourages it. He is supportive of this in a general way; however, but doesn’t want it to be just a committee/City Manager sort of process. He would like to see the Finance Committee involved in the process.

Nealley asked about bringing the item back to the Finance Committee on a date certain. Realizing that cost savings efforts are currently in place, Nealley said it is good to highlight them and to reinforce them among employees. Carr said he would like to see something done in Bangor and he plans to visit in Brewer as well.

The item will return to the Finance Committee at its first regularly scheduled meeting in September.

4. Update on Racino (Arena) Fund

Cyr noted that she provides quarterly updates as to the status of this fund to the Finance Committee. The permanent facility opened in July 2008, but all of the original projections assumed that the permanent facility wouldn’t open until July 2010. In looking at the earlier opening of the permanent facility, original projections were reexamined and an increase in annual revenue in the neighborhood of 80% was anticipated; however, no one predicted what was going to happen in the economy when the original projections were made four-five years ago. Actual revenues were below anticipated for the revised projections but obviously they still exceeded the original projections because of the permanent facility.

While there was a slowdown in the revenue, it is still 33½% over original estimates for the first year of operation even at a permanent facility. Earlier this year, the Council entered into a contract for a market and facility sizing study with AECOM, which has a gaming arm and which will look at the assumptions being used by the City to provide guidance.

As of the end of FY09, the original estimates assumed just under $5.4M available within this fund and the actual results are nearly $5.6M. The City continues to guard the money for its original intended purpose which is to replace the current civic center/ auditorium.

5. Discussion Item - Interim Departmental Reporting

This item was postponed to another meeting pending the attendance of Councilor Bronson.

Committee adjourned at 9:00 a.m.