FINANCE COMMITTEE MEETING MINUTES
AUGUST 6TH, 2007
The meeting was called to order by Mr. Farley at 5:17 with all present.
The Motion to accept the minutes of the July 16th meeting was made by Mr. McCurry and seconded by Mr. Ready. All in favor.
The Expenditure Warrant was available for signing.
DISCUSSION/APPROVAL: Award bid for Police facility front door replacement. (Chief Beaupre) Two proposals were returned, from DSI and Portland Glass. The third would-be bidder was the company Portland Glass uses as a sub-contractor, so they would not bid. The Chief’s wish is to recommend DSI to do the job. Mr. Farley asked the Chief to explain the layout of the new doorway. The Chief said the existing doors are set at such an angle that it is very hard for a person in a wheelchair to enter and hold the door; someone has to be there to hold the door currently. The new first set of doors will slide open and sideways, then will close before the second set of doors opens. With this design it will not only help retain heat in the building, but is physically challenged friendly. Mr. Ready asked what the electrical cost would be. The Chief said roughly $383.00. A Motion was made by Mr. Ready to award the bid to DSI, and seconded by Mr. McCurry. All in favor.
DISCUSSION/APPROVAL: Purchase of park items (C. Walsh) From the CIP budget, this is to follow through to add amenities such as seating benches and picnic tables to Clifford Park and Mechanics Park. Mr. Walsh stated that this purchase is a catalogue purchase and we have been purchasing from Barco this year. Mr. McCurry asked how are the benches and tables being secured, and would they be stored away in the winter months? Mr. Walsh said while the furniture is outside, it will be chained, and in the winter months, would be stored at Public Works or at the Parks Maintenance building. Mr. Ready asked if this completed the outfitting of furnishings for the parks. Mr. Walsh said it brings it up a step closer; we still will need to replace picnic tables at Rotary Park in the future. Motion was made by Mr. McCurry to approve the purchases of park furnishings from Barco Products. Seconded by Mr. Farley. Mr. Ready asked if we went out to bid for these items. Mr. Walsh said he got the prices from the catalogues, as there are no local supplies. All in favor.
DISCUSSION/APPROVAL: Award contracts for ambulance chassis and remounting of module (R. Fournier) Chief Fournier asked Mr. Marcotte to explain. O’Connor was the low bid. The body bought from Sugarloaf ambulance is strong and dependable, the wiring is simple, the hinges and door latches are sturdy, and the service and warranty service have been great. To take the GMC chassis from an International body, check doors and hardware and repaint. $103,393.00 completed. The budget was $100,000.00 so this is $3000.00 higher than expected. Mr. McCurry asked where this $3000.00 is coming from. Mr. Marcotte did not get into detail before the budget was allocated. Mr. Koehler said the City had budgeted for 3 pieces of equipment total $518,000.00. $42,000.00 put aside as a lease down payment. We would make the lease amount more. Mr. Ready made the Motion to award the bid to GMC O’Connor’s Motor for $36,054.00, seconded by Mr. Farley. All in favor. Mr. Ready awarded the second half to Sugarloaf ambulance for $66,738.00, seconded by Mr. Farley. All in favor.
DISCUSSION/APPROVAL: Award bid for pavement grinder. (G. Casavant) Mr. Marcotte put this out to bid, advertised. One bid received quoted $15,652.00; the budget for this was $16,500.00. Mr. McCurry asked about a generic attachment, did they consider using one and what the price would be. Mr. Marcotte said a generic would work, but would have to be modified to fit the existing equipment, would not work as well as the same make. Mr. Ready made the Motion to award $15,652.72. Seconded by Mr. Farley. Mr. McCurry opposed. Mr. Koehler said even though under $20,000.00, it’s got to go to council with the leasing language.
DISCUSSION/APPROVAL: Settlement agreement with Patenaude for drainage issue (T. Milligan) Mr. Milligan explained the drainage issues on Graham St. sewer replacement project. Mr. Ready asked if we had Mr. Jacques draw up language before the process is done, so there will be no come-back for monies down the line. Mr. McCurry said it should go to Wastewater Commission as well. Mr. McCurry made the motion to approve $4,860.00 for settlement, seconded by Mr. Ready with provision the language is drawn up by Mr. Jacques.
DISCUSSION/APPROVAL: Balance transfer from Undesignated Fund Balance to close out T2000 Grant Fund as of June 30, 2007 (C. Koehler) State program T-2000 grants, the City took advantage, but for one reason or another, things were not done to have that money available to us. We did save money in other areas. Take the undesignated fund balance to clear up the negative balance in the T-2000 fund. Mr. McCurry made the Motion to transfer the monies, seconded by Mr. Ready. All in favor.
DISCUSSION/APPROVAL: Approve bidder and authorize final negotiations for natural gas contract for year commencing November 1, 2007 (C. Koehler) The faster we approve the bidder the better chances we have at locking in at a low price. Three bidders responded. There are only so many companies allowed to supply natural gas in Maine. Mr. Koehler was advised to do an estimate of proposed usage. We should choose a company and work with them and refine the figures and usage. The swing each month is a different figure than the amount we lock in at. We have a 10% swing on our current contract. Union oil did not put a swing into their bid. Their measurement had to be calculated. There is hedging going on, and no downside protection. It’s a fixed gas price. We are currently looking for the City side, School, and presumably the Ice Arena, as they have not said otherwise. Mr. Farley asked what was our total usage last year. Mr. Koehler said there was 2 yrs of actual usage. The current contracts have different prices by buildings. Mr. Farley asked what we budgeted for last year. Mr. Koehler said the gas and heating fuel was mixed together, he would have to split and calculate the figures. Mayor Nutting asked who we dealt with last year; Global Montello. And is it a two-year option. Mr. Koehler said we would lock in for two years. The Mayor also asked if we had any experience dealing with Hess. Mr. Koehler explained that Hess just started operating in Maine. Mr. Farley said we are dealing with a billing company. Mr. Koehler said we get a bill from Northern Utilities for use of their pipeline that our gas comes through. Mr. Farley asked if the price changes based on the building. How long would Curt need to do a cost usage on each building? Mr. Koehler said he would need approximately a week to organize. Mr. McCurry recommends the Hess bid for 2 years @ 10.55, and seconded by Mr. Farley. Mr. Ready said 100% swing is important. All in favor.
DISCUSSION/APPROVAL: Change FY08 tax commitment to use more of school surplus funds as revenue (K. Farley) The allocation of additional funds to School dept. Mrs. Poli and Mrs. Gauvin came in for the meeting, as they were on vacation. The report had seen additional monies carried forward, from unanticipated revenues. They are here to clarify the situation, Mr. Farley did not contact the school board members and he apologizes. Move forward with adequate information and try to offset the tax levy without reopening the budget. Mrs. Poli said we will have very little carry-over next year, and cautioned the Finance committee before they remove any monies or re-open the budget. Mr. Farley said they have no intentions of reopening the budget. The money will go to offset taxes this year or next year. The City took on the burden of $1.5 million. Mr. McCurry would like to take the $1million into the City funds. Mrs. Poli would consider splitting the money, which was advised by the School Dept. attorneys, as they did not want to lose the $1m. Mr. McCurry specifically asked about the carry-over and then it was $500,000.00, and how to transfer the money. Mrs. Poli said the wording has to be very specific, and when sent to the attorneys, they are awaiting the response. Mr. Farley: what should happen now, the Finance Committee to recommend a goal of increasing the current year carry-over. At this point a single reading is adequate based on the information given by Mrs. Poli and Mrs. Gauvin. Mr. Farley thanked them for their presence. Mr. McCurry questioned only needing one reading, if we are not changing the budget. It needs to be clarified in increasing the revenues for the School Dept. Mr. Ready made a recommendation to increase the current carry-over and offset reduction. Mr. Farley seconded, Mr. McCurry opposed. Passed 3-1.
DISCUSSION/APPROVAL: Write off FY2001 Personal Property taxes as of June 30, 2007. Write off PPT more than 6 years old. There is no legal recourse under uniform commercial code. The amount is $96,301.11, of which two items were lost through bankruptcy. We could collect, but all the businesses are now gone. Move forward to approve and send on to council. Mr. Farley asked about the process of collection and these are beyond collection. Mr. Koehler said in general, we have had good collections. We did send out postcards, but they have no effect on bankruptcy. Mr. Ready said in 2002 an aggressive effort was made to recapture some monies. Mr. Koehler, we are still working, planning to take a couple to small claims court. Mr. McCurry made the Motion to approve the write off. Seconded by Mr. Ready. All in favor.
DISCUSSION/APPROVAL: Changes to Designated Fund Balances as of June 30, 2007. (C. Koehler) Part 1 of 3 part question. These projects have been finished and have a balance remaining. This is the amount to be transferred. Motion made by Mr. Ready to transfer $22,228.50 from designated to undesignated. Seconded, Mr. McCurry. All in favor. Current year CIP regular budget not done by June 30th, but still needs to be done. Mr. McCurry asked why St Louis field and the Community Center did not get done. Mr. Bubier answered that the list of projects, some small, was ongoing. Mr. McCurry asked about the PACTS work and when we would anticipate it being complete. Mr. Bubier said that it had to be resubmitted on the engineering side. Mr. Farley asked if any of the bond questions from the State are dedicated to these projects. Mr. Ready asked if Pacts was on the list. They are not as of this moment, new list developed? 07/08 done? 08/09 Pact projects 2 to 4 years, no deadlines but a rolling process, and it is possible for some of these projects to reappear. Mr. Ready asked if Rte. 1 was a PACTS project 2010/2011. Mr. Milligan said still on the list, referring to the Rte. 1 project. Engineering dollars programmed to the next phase. Construction dollars assigned to it. Enhanced project scoping cost moves through engineering process 4 to 6 years. Mr. Farley thanked Mr. Milligan. Mr. Ready made the Motion for Finance to transfer from account 10013-30100 to account 10013-30101, $520,094.00, Seconded by Mr. Farley, Mr. McCurry opposed. Part 3- Sewer Department has reserves they would like to carry-over. Mr. Ready asked about the operations contract expense, and that the contract renewal was 2 yrs past. Mr. Milligan said that was correct. Mr. Ready asked why? Mr. Milligan the numbers have been presented and proposes what they will do for us the next year. Today got the first bill, contract renewal, automatically extended. Have not come to an agreement. Mr. McCurry said we had a meeting some time ago regarding this. Mr. Milligan said they have recently come forward to revise the proposal. Mr. Ready have we made a proposal yet, or just waiting? Mr. Milligan said we rejected the proposal. Mr. Ready said this was two years ago and wonders why we have not pushed to complete. Mr. McCurry made the Motion to designate $523,950.00, seconded by Mr. Ready. All in favor.
DISCUSSION: Report on Johnson Controls Detailed Energy Audit (B. Phinney) City has full ability to pick and chose what improvements. Emery School needs to be discussed as whether to do energy efficient improvements, if the building is going to be sold. The good news is that the audit did show that the City is in good shape as far as energy management goes. Very frugal. The various improvements that Johnson Controls found reduce the amount of energy used by the City as a 17% reduction and savings per year. If savings are more than projected the City gets the savings. Originally, any savings were carried over, is reconciled every year. Next step is to take inventory and move forward with JC’s, finding out how we would take on the finance. There does not seem to be a downside resulting from the audit for the City. The different scenarios are also included with the wastewater management in there.
DISCUSSION: Procedures for hearing appeals of Sewer User abatement denials (C. Koehler) Basically the Waste Water policy manual states that someone denied an abatement can appeal to the Finance Committee. There has been a denial but no written request for appeal yet. Mr. Farley this would typically be in an Executive session. Mr. McCurry said that it ended up going to court. Mr. Farley said any communications should go certified mail as to protect, and Mr. Koehler would take care of this issue. A special meeting and notification to committee. Mr. Ready asked about the appeal process and to make sure with our legal council, Mr. Jacques, before the appeal.
OUTSTANDING ISSUES: Regional Cooperation: A new discussion on Saco Island buildings and the Biddeford Mill, walkways and utilities. A series of meetings called for the owners and developers. The ongoing actions regarding the lock-box issue.
Under Other Business it was noted that in the City Manager’s Report there was a typo error in reference to truncated domes.
Mr. McCurry said in regards to MERC settlement that it appears Saco got more. But in essence Biddeford did get a better deal than the public was lead to believe. Mr. McCurry said the issue of cell phones comes up every so often. We need a policy put into place in regards to downloading music and text-messaging as these features cost money, also ring-tones. These charges should not be absorbed by the City, but should be paid by the user of the phone. Mr. Farley asked Mr. Bubier to have a list for the Sept meeting and to address who gets issued what type of calling equipment. Also there is a number you can call for no charge like a 411 operator. Chief Beaupre e-mailed all the Councilors that the phone charges get pooled. Each Dept head would monitor their own staff, keeping in mind, about the charging for text messaging and downloading of ring tones and music, that the user would refrain from downloading, or pay the City for the extra charges. Mr. McCurry said it costs $1.25 for a 411 call. Mayor Nutting is to ask the School side for a head count back 10 years. Mr. Ready said that Mr. Lapierre requested a contractor to do work at the Community Center; the job was $6,200.00. It was supposed to be under $3000.00, in order not to go out to bid. Mr. Bubier interjected and said that when the electrical cable was exposed, it was shorter than code. It was an emergency situation, which would fall under the emergency provisions. Mr. Bubier said he would take full responsibility for this particular situation. Mr. Ready not questioning the emergency, but perhaps Josie could have sent out an email explaining that it was an emergency and explain why. This was talked about during the budget, that if a line is over budget, it should be shown that it is over. The overall budget is under control, but we need to be aware that we are budgeting correctly for a certain line. So the figures have to be correct and charged to the appropriate account lines, to see if we are budgeting accordingly for that line. Mr. Farley asked when the masonry on the building was taking place. Mr. Bubier said the crane would be here on Tuesday. Mr. Farley said Lisa Parker from Saco, has been invited to join the next Finance meeting to review performance measures and budget projections. She will be on the agenda as starting off the meeting and general discussion. Mr. McCurry made the Motion to adjourn, seconded by Mr. Ready, All in favor. The meeting was adjourned at 7:45.