Belfast City Council Meeting

Tuesday, April 15, 2008

TO: MAYOR ASH AND HONORABLE MEMBERS OF BELFAST CITY COUNCIL

FROM: Joseph J. Slocum, City Manager

DATE: Friday, April 11, 2008

Non- Agenda Items:

The Budget: It was my plan to deliver to you the budget next Friday April 18^th. The process has been very intricate often calling for many programs and services to be completely re-evaluated. To achieve the goal of the 18^th I would have to be finished before Wednesday April 16 so that copies could be prepared. Given the other requirements of the Council, its Committees, the Departments and our citizens - it does not appear at this time that I will be finished by the 16^th. Right now you should expect the Budget to be delivered to you sometime in the week of April 21. While this has been a time consuming exercise, every minute of it has been a valuable experience.

11.B Discussion and Possible action on Oak Hill Road Drainage Culvert Bid Opening: This is a project that was approved in the current budget. I double checked the States inspection procedures and reviewed their actual inspection report to confirm that this expensive work actually needed to be done. The under the road culvert is more than 20 feet below the surface of the road and near a tight hillside curve. The job will require the removal and replacement of a massive amount of fill in order to do the work. Since the groundwork is so voluminous, I first investigated the possibility of using a sleeve to reline the collapsing pipe rather than remove all the fill. That option did not offer any savings. I then felt that it would be in the best long-term interest of the city to use a pipe that would last the longest in order to get the longest benefit for our money. We attach a copy of the bids that we would like you to accept. We are currently reviewing the lowest three bidders to make sure they fully understood what they bid on. We are also are checking their references and experience. We may or may not be ready to ask you to award bids at this meeting.

11.C Discussion and possible action on #2 Fuel Bid Opening: We are all faced with high increases in fuel prices for next year. The latest bids came in on the 10^th, some of which were only good for that day. The bids revealed, at a minimum, a 47% increase in the cost of #2 heating oil for next year. Pushing this shock aside we need to consider whether we should reject all bids at this time and consider trying the market again in early June. What we do know is that we will have different prices between the time I write this and the actual meeting on the 15th. I called around and spoke with fuel dealers that we did not get bids from and picked their brains about what is happening in the industry. Historically heating fuel prices have dropped after the heating fuel season as plants retrofitted to focus more on gasoline production.

That did not happen last year which has everyone concerned about next year. The end of the heating season is April 30^th and most dealers are not prepared to offer residential contracts for next year until after that point. I will bring you updated figures at the meeting on Tuesday. I may also at that time recommend that we consider rejecting all bids and think about putting the issue back out to bid again in late May or early June. This has been a positive learning experience. (Gray)

11.D Discussion and possible action of a lease of City Waterfront Property to Alex Turner. Last fall we discussed leasing the old Railroad Repair Building and the adjacent Block building to Alex Turner and Belfast Boat Yard. The Council supported a 5-year agreement and asked that I meet with Alex to iron out details. I am sorry that we are finally getting back to this issue but issues on all sides have delayed it. We now have a proposal for your consideration. If these terms are acceptable I will have a lease drawn up to reflect these provisions: See backup materials attached. (Blue)

Property leased: 16,280 square feet of land including the two buildings: the cinderblock building with the dirt floor and the old train repair building. Map of lease premises is attached.

Term: 5 years with a provision that clearly states that this lease will not be renewed. I have asked for this because I want the City to have no continuing obligation at the end of the 5 years in case the City has a new development scheme or other plan for the property at that time.

Lease Cost: $375 a month with a CPI adjustment made after the end of each year of the lease.

Maintenance: Buildings and Grounds will be the responsibility of Alex Turner and Belfast Boatyard

Utilities: Utilities are all paid by Alex Turner and Belfast Boatyard

Improvements to the Buildings inside and out all subject to the rules and regulations of the City, State etc. and shall be paid for by Alex Turner and Belfast Boatyard. At the end of the lease period such improvements shall belong to the City, free and clear of any encumbrances.

Taxes: Alex Turner and Belfast Boatyard shall be responsible for any taxes associated with the property.

Insurance naming the City as an additional insured in the amount of $1,000,000

No excavation or soil disturbance without expressed written consent of the City.

If the Council approves this lease then I will have the city attorney draw it up for signatures. I continue to note that I do not favor long-term alienation of City property that is not tied to a long-term plan. The low rent here is very much intended to reflect that improvements will be all at the cost of the tenant and will belong to the city at the end of the term. To me the most important provision is the clear lease statement that the lease will not be renewed, hence giving the City back its ability to decide the property’s long term future as part of a long term plan.

11.E First reading of proposed Zoning Amendments to the City Code of Ordinances, Chapter 98, Technical Standards, amendments mostly address proposed revisions to the current requirements regarding parking. Wayne Marshall, City Planner has memo and materials, and will address this. (Orchid)

11.F Discussion and possible action on a request from Edward and Judy Hemmingsen d/b/a Belfast Bay Inn for dedicated parking spaces in the downtown on Main Street. Three (3) Main Street parking spaces are being requested for dedicated, exclusive use for their new 8 unit Hotel. (Pink)

This is a complex issue to consider. First, storefront parking spaces are the best and most coveted type of parking for any commercial enterprise anywhere. You will have to decide whether a space on the street equals a space in an off street parking lot. I reattach the Hemmingsen’s earlier letter detailing their request. Since then I have met with Ed Hemmingsen who has explained that they need three Main Street parking spaces to accommodate two vehicles, which can unpack or pack luggage at the same time. He has offered to replace the spaces with less desirable off street parking at either of two locations in the downtown area. The first option would be his below grade parking lot next to Dudley’s Restaurant and the other option would be on land where the former Murphy’s Café stood (until last week) at the intersection on Main and Cross Streets. The latter may be a better location because it is closer to street grade and on the same side of the street. However there would be green space between these spaces and the street itself.

Most hotels do have a drive up and registration area where luggage can be unloaded. These hotel suites are likely to be rented at high-end rates and so it is reasonable for guests to expect this type of amenity. I note that the City had previously decided that it would provide these three spaces when an earlier proposal was made for a 22-room hotel at this location.

As a manager I see public property as a public asset. I generally never support its sale unless the Council deems it to be either “surplus” or of minimal long-term value to the City. While a use agreement, not a sale, is contemplated here I do think you should see it as a long-term arrangement. I also, like everyone else, see local business as an asset. We do not know how the Downtown Merchants think about this proposal although it would be hard for me to believe that they would not support a hotel in the downtown area. The precedent issue is clearly there for you to consider and perhaps, or perhaps not, the offer of replacement spaces might reduce that likelihood. Would a building owner see this proposal and then ask to swap out the spaces behind their building for ones on the street in front of their business? They might indeed.

I asked whether spaces limited to 30 minute parking in front of the building would accomplish the same thing and the answer was no. Mr. Hemmingsen felt that if his customers could not pull right in like they can do for other hotels then they would likely drive by and land at a hotel where they could.

The only other idea I have would be to consider entering into the swap under whatever terms you feel are appropriate for a limited period of time so that its effect could be revisited to see its true impact.

I expect Mr. Hemmingsen will be at the meeting to answer any questions you may have.

11.G Discussion of new City Grounds Maintenance Program. At your last meeting the Council supported the idea of bringing “in house” our grounds maintenance and lawn mowing maintenance as a cost saving measure.

To get the mowing and the bathrooms cleaned by outside contractors we would have spent between $60,000 and $100,000. Our proposed in house program will look like this:

Lead Grounds Keeping person: From existing staff at Public Works no additional cost

2 seasonal grounds keeping positions- $20,000.

Used Truck -?

Commercial Mower: $6,000

Trailer (Est): $3,000

3 commercial hand mowers: $1,500

Trimmers etc.: $1,500
Vehicle Maintenance: $2,500

These positions will also clean the restrooms at the City Park during the week and we hope to have lifeguards take care of those bathrooms on the weekends. The harbor staff will maintain the downtown bathrooms. I note that we also budget about $45,000 per year in Park Maintenance and according to Parks Director Jim Bell most of this is for manual labor. We hope to use more of our own labor from the three positions identified above to save even more money in that budget line.

We will indeed need a truck, trailer and a series of mowers ASAP. The big mower and the truck will each cost more than the $4,000 bid limit. To move things along I have asked Jim Bell to solicit bids on the mower and the truck. With respect to the truck we are looking to buy a used ½ ton with less than 25,000 miles on it with absolutely no extras. We are presently soliciting bids for those as well. Given our time constraints I may ask you at the meeting for permission to by pass some of our normal purchasing procedures to get up and running right away.

That’s all for now. Have a safe and pleasant weekend.