FINANCE COMMITTEE AGENDA

February 20, 2019 @ 5:15 pm

1. Bids/Purchasing a. Aircraft Belt Loader – Airport – Aero Specialties - $52,469 b. Engineering Design Services for Replacement of Climber Screens – Wastewater

Treatment – Hoyle, Tanner & Associates - $84,500 c. Request to Waive Bid Process Additional Work Chair Stair Lift – Parks & Recreation –

House Revivers - $15,861 d. Request to Extend Property Listing Contract – Community & Economic Development

– Epstein Commercial Real Estate

2. Presentation of FY 2018 Independent Audit by Runyon Kersteen Ouellette

CITY OF BANGOR AWARD RECOMMENDATION

BID ITEMS: Aircraft Belt Loader

DEPARTMENT: Airport

BUDGET AMOUNT: 52,559 AMOUNT OF AWARD: 52,469

ACCOUNT NUMBER: 8512‐910001100

VENDOR(S) RECOMMENDED: Aero Specialties, Inc

Past Experience with Vendor : x Excellent Good Fair

Poor None

OTHER COMMENTS:

This purchase was necessitated due to a minor employee injury.  This original unit did not include 

current safety enhancement and is vital to our airline operations.  The funding was redirected from 

savings on other equipment purchases.  The City received 4 bids for this unit.  The low bid (Aero 

Specialties Option #1) did not meet bid specifications (diesel powered).  The next two lowest bidders 

were Ground Support Specialist and Aero Specialties.  Both bidders were contacted to adjust the 

safety rail system and Ground Support Specialist to provide freight costs.  No follow up was received 

from Ground Support Specialist.  Aero Specialties provided a revised price for the change to the safety 

rail system in the amount of $52,469.  Therefore, staff recommendation is to award the contract to 

Aero Specialties (Option #2), the low responsive bidder, in the amount of $52,469.

AERO Specialties, Inc. Option #1

Ground Support Specialist

AERO Specialties, Inc. Option #2 Textron GSE

Boise, ID Horn Lake, MS Boise, ID Kennesaw, GAItem Description Price Price Price Price

1 Aircraft Belt Loader 49,726.04 51,020.00 53,466.04 59,595.00 2 Trade in Price for 1 Used Belt Loader N/A - unit has no trade-in value 0 N/A - unit has no trade-in value 0

49,726.04$ 51,020.00$ 53,466.04$ 59,595.00$ 2019 2019 2019 2019TLD GSS TLD Textron GSE

NBL-PK (Perkins Diesel) GS350 NBL-FD (Ford Gas) 660-28No No No No

Has a current lead time of 45 days ARO. 12-14 weeks Has a current lead time of

90 days ARO. 12-16 weeks

ModelIs the equipment available now?

Estimated delivery after receipt of order in weeks

Make

City of Bangor Bid TabulationBid: Aircraft Belt Loader

Bid Opening: January 30, 2019

Total Bid Amount (minus trade in amount):Year

Bid No. P19-027

Memo

To: Finance Committee

From: Andrew Rudzinski, Director Water Quality Management

cc: Deborah Cyr, Finance Director

Date: February 6, 2019

Re: Design of Replacement of Screening Systems at KPS and WWTP

The WWTP has requested proposals for design services to replace the screening system at both the Kenduskeag Pump Station and the WWTP. These screens serve a critical function, removing harmful solid waste from the wastewater, prior to pumping through the system and treatment. The systems to be replaced date back to pre-1996, in one case pre-1992, and are well beyond their life expectancy. The costs to repair these systems are a major expense for the City, averaging approximately $15,000 annually in recent years.

There were four bids for this project ranging from $84,500 to $281,761. The low bid was submitted by Hoyle, Tanner & Associates of Yarmouth, Maine. The Director contacted five (5) of the entities listed for recommendations, and received very positive feedback from all. References contacted were in Brattleboro, Vt., S. Burlington, Vt., Keene N.H., Gardiner, Me., and Portland Water District, Portland, Me. Projects ranged from fairly small in scope to over $30 million dollars in cost. The Director and Engineering staff had also viewed one of the projects in Augusta a few years ago.

The Department recommends the City contract with Hoyle, Tanner & Associates for the cost of $84,500 to design the above project. The RFP was issued as design only, however, due to the value of the bid being lower than anticipated, staff recommends Hoyle, Tanner & Associates be allowed to manage the project as well, at time & materials, for a cost-not-to-exceed $25,000 without Committee approval.

Respectfully,

Andy Rudzinski, Director of Water Quality Management

AECOM Chelmsford, MA

Hoyle, Tanner, & Associates, Inc. Yarmouth, ME

Mid-South Engineering Orono, ME

Wright - Pierce Topsham, ME

City of Bangor Bid TabulationBid: Engineering Design Services for Replacement of Climber Screens Bid No. P19-023

Respondents

Bid Opening: January 30, 2019

MEMORANDUM

TO: Finance Committee FROM: Tracy Willette, Director Parks and Recreation SUBJ: Chair Lift Replacement DATE: February 13, 2019 During the FY 19 budget process, Parks and Recreation staff identified the wheel chair lift at the Parks and Recreation Center for replacement. The unit had been in place since the mid-1990’s and was difficult to service and find replacement parts. Funding was approved to replace the lift. We reached out to potential vendors to replace the lift. Maine Accessibility Corp provided a proposal. They proposed a vertical chair lift which was the most common replacement solution in a building such as ours. We were approved to accept the proposal from Maine Accessibility. The lift will be installed on the second floor of our building and provide access to the third floor. This fulfills our ADA requirement for access to the third floor of the building. During our initial conversations with Maine Accessibility, the unit requires an enclosed “chute” from the second floor to the third floor. We determined the best location to locate the lift and the representative from Maine Accessibility suggested House Revivers to contact regarding the construction of the chute. They indicated they have worked with House Revivers on similar type projects. They are familiar with the equipment and the specific construction requirements of the chute. Bob Kelly of House Revivers has assessed our proposed location with a representative of Maine Accessibility and provided us an estimate. Their estimate is $15,861.20 and includes all tasks and materials needed to complete the work. The chute will be located within an office space as well as program space on the third floor, so it will require additional effort to secure the construction zone from these areas. Given the good experience the City has had with House Revivers and the background they have with constructing these enclosures, staff is requesting approval to move forward with House Revivers to complete this work. I will be at your meeting to answer any questions you have.

Memo

To: Finance Committee

From: Tanya Emery, Director of Community & Economic Development

cc: Cathy Conlow, City Manager; Deb Cyr, Finance Director

Date: February 19, 2019

Re: Renewal of Listing Agreements with Epstein Commercial for Maine Business Enterprise Park

The City has previously authorized listing agreements for Epstein Commercial Real Estate to represent our parcels in the Maine Business Enterprise Park and BanAir Industrial Park. This was the result of a full RFP process in which we accepted bids from qualified commercial real estate professionals. The contract had no end date, but the ability to renew on a year to year basis if we are satisfied.

Originally staff expected to issue another RFP in 2018 once work on reconfiguring the west side of the Maine Business Enterprise Park was complete, because at that time there would be additional parcels to be represented. However, that work has been started (concepts only) but not completed, nor do we expect it to be complete in the next 6 months. Therefore, City staff recommend renewing the listing agreement with David Hughes of Epstein Commercial Real Estate as the lead broker for a term of one year, ending in February 2020.

Listing agreement terms include prices for the six remaining lots in the Maine Business Enterprise Park and BanAir Industrial Park, exclusive authorization to sell, a commission fee of eight percent of the sale price, and the ability to advertise the property and place signs on the property. Staff recommend approval.

CITY OF BANGORFINANCIAL OVERVIEWPresented by: Jennifer ConnersRUNYON KERSTEEN OUELLETTE

INSIDE2. Summary of Audit Results3. Summary of Audit Results, continued4. General Fund – Fund Balance5. General Fund – City and School Revenues 6. General Fund – City Expenditures7. General Fund – School Department Expenditures8. General Fund Unassigned Fund Balance as a Percentage

of Prior Year General Fund Operating Expenditures9. General Fund Unassigned Fund Balance as a Percentage

of Budget as Compared to Other Communities10. Tax Collections as Compared to Other Communities11. Revenues Pie Chart – 201812. Expenditures Pie Chart – 201813. Debt per Capita – Last Ten Fiscal Years

About this presentationThis presentation is intended as a tool to assist the City Council,School Committee and management in understanding itsfinancial operating results. The information contained in thispublication should be read in conjunction with the auditedfinancial statements and related disclosures and should not beused for any other purposes without the expressed consent ofRUNYON KERSTEEN OUELLETTE.

Please contact us at 207-773-2986 or 1-800-486-178420 Long Creek Drive, South Portland, ME 04106.

City of Bangor

• Financial Statement Opinion - Unmodified• Report Required by Government Auditing Standards (GAS)

– Material Weaknesses: None– Significant Deficiencies: None

• Report Required by the Uniform Guidance (Federal Single Audit)– Programs Tested:

• Women, Infants and Children (WIC) • CDBG – Entitlements Grant Cluster• Special Education Cluster (Local Entitlement)• Highway Planning and Construction Cluster• Federal Transit Cluster

– Finding: • Federal Transit Cluster Buy America Certifications

2

SUMMARY OF AUDIT RESULTS

City of Bangor

• Report Required by the Maine Uniform Accounting and Auditing Practices for Community Agencies– Programs Tested:

• Women, Infants and Children (WIC)• Substance Abuse Prevention• Supplemental Nutrition Assistance Program• Federal Transit – Formula Grants/Bus and Bus Facilities Formula

Program

– Findings: None

3

SUMMARY OF AUDIT RESULTS, CONTINUED

CITY OF BANGORGENERAL FUND – FUND BALANCE

4

Observations:

• Nonspendable fund balance includes advances to other funds, inventory, and prepaid items.

• Restricted fund balance includes amounts for PEG capital support, and the School Department’s fund balances.

• Committed fund balance includes amounts from the Cultural Commission, and amounts carried forward to 2019 for the Fire and Community Connector Departments.

• Assigned fund balance includes amounts set aside for encumbrances, workers’ compensation, and various reserves.

• Unassigned fund balance is the balance after amounts are assigned to all other fund balance categories.

• Total fund balance increased $3,402,686.

2018 2017 2016 2015Nonspendable $3,009,025 $2,962,473 $3,138,639 $2,572,748Restricted $714,412 $764,922 $1,374,097 $909,284Committed $118,316 $288,743 $5,406 $110,933Assigned $8,124,295 $6,439,941 $5,754,846 $4,642,727Unassigned $14,064,283 $12,171,566 $11,315,235 $9,995,105

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

CITY OF BANGOR

5

GENERAL FUND – CITY & SCHOOL REVENUESBudget Actual Variance

Taxes 60,954,900 62,395,656 1,440,756

State revenue sharing 2,300,000 2,506,552 206,552

State education subsidy 18,333,469 18,483,961 150,492

Other intergovernmental 7,653,083 8,646,265 993,182

Licenses and permits 622,743 1,014,170 391,427

Charges for services 13,654,567 14,499,626 845,059

Other revenues 658,140 1,014,113 355,973

Total revenues 104,176,902 108,560,343 4,383,441

Appropriation from fund balances

1,345,916 7,480 (1,338,436)

Other financing sources 42,000 45,051 3,051

Transfers from other funds 215,309 20,000 (195,309)

Total revenues and other financing sources

105,780,127 108,632,874 2,852,747

• Tax revenue exceeded the budget as excise tax from auto registrations exceeded expectations by $942,490, as well as due to collection of prior year taxes.

• State revenue sharing exceeded the budget due to changes at the state level.

•State education subsidy exceeded budget due to additional funding granted by the state after the budget was passed.

• Other intergovernmental revenue exceeded the budget as School Department state agency client reimbursements exceeded expectations due to an increased number of students. In addition, School Department grants exceeded budgeted amounts due to the timing of grant reimbursements which exceeded budgeted allocation amounts.

Licenses and Permits exceeded the budget due to a large project undertaken by Bangor Savings Bank in the current year.

• Charges for services exceeded the budget due to an increased use of ambulance services. In addition, the School Department had an increase in tuition revenues due to increased enrollment, and higher reimbursement for transportation.

CITY OF BANGOR

6

GENERAL FUND – CITY EXPENDITURESBalancesCarried

Budget Actual Variance

General government 86,815 5,560,694 5,415,774 231,735

Public safety 193,439 18,514,772 18,169,124 539,087

Health, community services, and recreation

- 5,225,472 5,067,611 157,861

Public services - 10,857,824 10,539,710 318,114

Other agencies 8,489 4,920,942 4,907,267 22,164

Education – regular 2,039,940 45,227,281 44,723,349 2,543,872

Education – other 784,253 7,852,920 8,901,571 (264,398)

Pensions and other fringe benefits

- 2,419,957 2,387,161 32,796

Debt service - 3,445,204 3,413,641 31,563

Tax increment financing payments

- 885,862 909,689 (23,827)

Total expenditures 3,112,936 104,910,928 104,434,897 3,588,967

Appropriations to assignedfund balance

- - 1,598,000 (1,598,000)

Transfers to other funds - 869,199 869,199 -

Total expenditures and other financing uses

3,112,936 105,780,127 106,902,096 1,990,967

• General government expenditures were lower than the budget as costs related to heat, IT maintenance contracts, and health insurance were all lower than anticipated.

• Public safety expenditures were lower than the budget due to multiple unfilled vacancies, which reduced payroll costs.

•Health, community services and recreation expenditures were lower than the budget due to a decrease in demand for general assistance.

• Education expenditures(regular and other) are explained on the next graph.

CITY OF BANGOR

7

GENERAL FUND – SCHOOL DEPARTMENT EXPENDITURES

Budget Actual Variance

Regular Instruction 19,547,697 19,326,319 221,378

Special Education 7,231,381 7,230,320 1,061

Instructional Support 3,889,142 3,777,188 111,954

System Administration 1,119,323 1,089,020 30,303

CTE Instruction 545,000 541,309 3,691

School Administration 2,473,410 2,395,731 77,679

Facilities Maintenance 5,423,570 5,403,841 19,729

Transportation 1,905,000 1,886,504 18,496

Other Instruction 1,369,221 1,351,954 17,267

Debt Service 1,606,308 1,606,238 70

Contingency and Other 117,229 114,925 2,304

Total expenditures 45,227,281 44,723,349 503,932

• Regular instruction expenditures were lower than anticipated as costs related to insurance, textbooks, supplies, and substitutes were all lower than anticipated.

• Instructional support expenditures were lower than budgeted as costs related to technology supplies, and equipment were lower than anticipated. In addition, there were positive variances in other miscellaneous accounts.

•School administration expenditures were lower than anticipated as two employees were on unpaid leave for several months.

CITY OF BANGORGENERAL FUND – UNASSIGNED FUND BALANCE AS A PERCENTAGE OF PRIOR YEAR

GENERAL FUND OPERATING EXPENDITURES

Unassigned fund balance2018 14.41%2017 12.75%2016 12.17%2015 10.86%2014 10.88%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

12.00%

13.00%

14.00%

15.00%

8

Observations:

• Minimum Fund Balance Policy –unassigned fund balance target is equal to 8.33% of prior year General Fund operating expenditures (expenditures less debt service), with a maximum of 16.66%.

• Unassigned Fund Balance per the City’s Policy – 2018 unassigned fund balance was 14.41%, which is within the policy range.

•Unassigned Fund Balance as a Percentage of PY GF Expenditures – from 2014 to 2018, unassigned fund balance has increased 3.53%.

CITY OF BANGORUNASSIGNED FUND BALANCE AS A PERCENTAGE OF BUDGET AS COMPARED TO

OTHER COMMUNITIED

2016 2017 2018Auburn 7.54% 8.83% 9.65%Augusta 10.14% 9.60% 9.74%Bangor 11.10% 11.83% 13.30%Gorham 9.75% 10.52% 9.21%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

9

Observations:• All of these calculations includes the City/Town and the School Department’s respective budgets.

CITY OF BANGOR

10

TAX COLLECTIONS COMPARED TO OTHER CITIES

2016 2017 2018Auburn 97.61% 97.65% 95.69%Augusta 97.53% 97.30% 97.87%Bangor 98.08% 98.00% 98.16%Gorham 97.07% 97.49% 97.39%Portland 98.90% 98.88% 99.18%

93.00%

94.00%

95.00%

96.00%

97.00%

98.00%

99.00%

100.00%

•Collections for any given year are for the taxes levied in that year only.

CITY OF BANGOR2018 GENERAL FUND REVENUES

11

Property taxes 52%

Other taxes 6%

State revenue sharing 2%

School subsidy 17%

Other intergovernmental8%

Licenses and permits 1%

Charges for services 13%

Other 1%

CITY OF BANGOR2018 GENERAL FUND EXPENDITURES

12

General Government 5%Public Safety 17%

Health, Community Services and Recreation

5%

Public Services 10%

Other Agencies 5%

Education 50%

Other 6%

Appropriations to Assigned Fund Balances

2%

CITY OF BANGORDEBT PER CAPITA – LAST TEN FISCAL YEARS

13

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Debt per capita $1,945 $2,079 $1,795 $2,466 $1,903 $2,036 $2,017 $1,946 $1,741 $1,754

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

Debt per capita calculations only include non-self supporting debt.