Mike Beck’s Bangor City Council Summary April 7, 2025

Disclaimer: The views I express here are my own and should NOT be construed as speaking for the City of Bangor or the City Council of Bangor.

April 7, 2025

City Council Workshop

You can view the agenda here.

1. ARPA Agreement Amendment for Bangor Housing Development Corporation:
   • An amendment was discussed to adjust the income requirements for a 55+ housing development funded partly by ARPA funds.  
   • Previously, 60% of units were for individuals at 50% AMI or lower, and the rest at 60% AMI.  
   • The final financing requires all units to be rented to individuals at 60% AMI or lower.  
   • The council approved this non-substantive change, and groundbreaking is expected in June.  
2. Congressionally Directed Spending Requests:
   • The city plans to submit two requests for federal funding:
     • $3 million for the Hogan Road area Kmart pump station sewer upgrade (balance of a $5 million project).  
     • Funding to redo the security screening checkpoint at Bangor International Airport, although this could also be funded by passenger facility charges.  
   • Letters of support were requested for community partner applications:
     • Community Care for improvements at the Shaw House shelter ($821,000 needed).  
     • Penobscot Community Healthcare (PCHC) for consolidating operations and renovating their Union Street clinic ($5 million project, requesting 50% funding).  
   • The council agreed to submit the city’s requests and the letters of support.  
3. Legislative Update:
   • People’s Veto Referendum (LD 609): A potential referendum could delay the state budget (FY25 closeout and FY26-27 biennial budget), possibly leading to a state shutdown and impacting municipal funding like aid to education and revenue sharing. The situation is being monitored.  
   • Specific Bills Discussed:
     • Act to Support Maine Discovery Museum: City will submit testimony in support, aligning with past support.  
     • LD 194 (Phase out Vehicle Excise Tax): City staff opposes this bill due to the significant loss of revenue (over $7 million annually) and potential negative impacts on rental car agency registrations.  
     • LD 1244 (Warming Shelter Requirements): The bill would require every city and county to operate warming shelters below 40°F. The city feels this is an overreach and that the state should fund/operate such initiatives, suggesting bolstering existing MaineHousing funding instead.  
     • Tort Claims Act Liability Caps: Two bills propose increasing the liability cap for governmental entities (from $400k to $1.2M generally, and $5M for school field trips). The city opposes these due to potential increases in insurance costs and property taxes, noting few claims have ever hit the current cap.  
     • Act on Personal Items of Unhoused Persons: This bill proposes a due process/quasi-judicial process for handling the belongings of unhoused individuals found on public property. While the city states it aims not to destroy belongings and provides notice, there was discussion (led by myself) about the need for state standards, acknowledging concerns about items being discarded, particularly by shelters. The city plans to suggest alternatives.  
     • Bills with Past Hearings: Support was affirmed for bills sustaining emergency shelters and continuing support for the Maine Multicultural Center. Opposition was voiced regarding a bill clarifying manufactured housing jurisdiction due to fee exemptions and another (LD 1247) limiting the city’s ability to assess fees for housing development work.

Government Operations Committee

You can view the meeting agenda here. Due to a technical issue there is no recording of this meeting available. The meeting was available for viewing via Zoom.

1. Opioid Settlement Work Plan
   • When the agenda came out the previous Friday (April 4) it detailed Bangor Public Health’s proposed use of $32,921 to hold public listening workshops and would result in a report being delivered in late September to Bangor City Council on suggested uses for the Opioid Settlement Funds.
   • I heard from many of you who stated this felt like an unnecessary use of funds, specifically the $18,750 proposed for a consultant to facilitate the sessions.
     • Bangor Public Health clarified that this consultant was not being brought in for expertise on substance use – only as a facilitator. The goal was to hear from the public and local experts.
   • Based on your feedback I proposed an alternative – rather than another series of listening sessions with the public – I proposed a committee to get to work on giving Council actionable items so we can start investing this money.
     • During the meeting I used ME-RAP‘s excellent report from their 2024 Summer Series of listening sessions as an example of how so much feedback had already been collected from the public.
     • You can see my proposed ordinance for this committee here. The motion passed in committee and staff will review the document and make the necessary adjustments. It will then be presented back to City Council for approval.
2. Ordinance Amendment: Clarification Regarding Roberts Rules
   • Current code states that Bangor City Council and its standing committees (GovOps, Infrastructure, Business & Econ. Dev., Finance, and Personnel) must adhere to Roberts Rules of Order: “In all cases where the parliamentary proceedings are not herein determined, Roberts Rules of Order shall be taken as authority to decide the course of the proceedings.”
   • There had been some insistence by some members of the public as of late that Roberts Rules of Order also applied to Advisory committees. However, in looking at the code of ordinances, the ordinance establishing Roberts Rules of Order is contained in Chapter 9, Article I, which governs the rules for City Council. Advisory committees are defined under Chapter 23. It was the City’s position that Roberts Rules were not mandatory for these citizen boards.
   • What made this an issue as of late for come concerned citizens is the city’s Advisory Committee on Racial Equity, Inclusion, and Human Rights (ACREIHR) held meetings without a quorum. It is important to note that no actions were taken during these meetings, other than minutes kept of the discussions. These meetings were also property noticed to the public according to Maine law.
   • Having already believed that Roberts Rules of Order do not apply to advisory boards I welcomed this clarification.
   • The other issue, the lack of quorum, was also addressed in this amendment. I don’t disagree with the citizens’ frustration that a quorum is not being regularly met, however I do not object to an advisory’s body to continue with their properly noticed meeting so long as actions aren’t being taken. The real issue to tackle here is absenteeism, which in the case of ACREIHR, they are taking steps to address.
   • It is for these reasons that I voted to support the amendment to the ordinance.
3. 4th of July Update
   • City Council was presented a memo (in the agenda) updating us on a status change with the July 4th Corporation. Fundraising for the fireworks had become a greater challenge and city staff were recommending that the City of Bangor take over the fundraising, which included reaching out to the City of Brewer to explore joint funding. The fireworks typically cost $25,000 a year and per the memo Bangor has donated $5,000 towards that in the past.
   • The way it was presented, at least from my perspective, was an affirmative vote would obligate the City of Bangor to spend up to the full $25,000, with the hope that we would raise funds to offset the cost to the City. That didn’t sit right with me. I love fireworks as much as anybody and I certainly want to see the display happen. That said, it didn’t make sense to agree to an unknown when there was still time to talk to Brewer first and get a better understanding of Bangor’s total exposure for this display.
   • I also raised the question why isn’t this being seen as a last resort. What other options have been explored? If we’re talking about raising funds from sponsors, that sounded more like a project for the Downtown Bangor Partnership, for example.
   • I moved to approve staff being able to contact Brewer about this and then come back to us with a fuller picture.
4. City Hall Update
   • Hoping to be moved back in to City Hall by late summer.

Finance Committee

You can view the meeting agenda here.

Bid and Purchasing Items:

1. Data Switches (Airport/Cross Center): A request was approved to purchase 25 Extreme data switches from the preferred vendor, Harbor Networks, for $92,761 to upgrade systems at the airport and Cross Center. The committee discussed why an RFP wasn’t issued (based on IT’s prior evaluation of compatibility and Harbor being Extreme Network’s preferred seller for best service/maintenance).  
2. Airport Boarding Bridge Replacement: The contract was awarded to the lowest bidder, Benchmark Construction, for $2,436,844. It was confirmed that this project is PFC funded and that Benchmark was not responsible for a separate, unrelated wiring issue.  
3. Banair Road Ditch Rehabilitation: The contract was awarded to the lowest bidder, CMC Lynch, for $80,690. Funding comes from previously approved capital funds ($75,000) and the stormwater drainage improvement account (approx. $5,000).  
4. Alert Building Cleanup (Airport): The bid was awarded to J Butler LLC for $744,600 to handle the hazardous cleanup and demolition, including hauling contaminated water offsite for treatment. This option was chosen over on-site treatment due to concerns about meeting contamination standards. The project is funded by an EPA grant.  

Audit Services:

• The committee revisited the sole bid received for FY25 audit services from the current auditor, RKO, for $174,500.  
• Arguments and Concerns Raised Against Rehiring RKO:
• Significant Price Increase & Lack of Competition: Councilors expressed strong concerns about the $174,500 price tag, noting it was a substantial increase. A comparison with South Portland, also audited by RKO, showed Bangor was being quoted a significantly higher rate per hour (approximately $50 more). This fueled concerns about a potential “monopoly effect” where limited competition allows the sole bidder to dictate higher prices. It was felt that awarding the contract without exploring other options might be “financially irresponsible”. The roughly $50,000 increase was highlighted as equivalent to the cost of two fireworks shows, a nod to a discussion held during the GovOps committee meeting.  
• History of Delays & Performance: A major point of contention was RKO’s track record of delays in completing Bangor’s recent audits. It was noted that RKO was still working on completing the previous year’s audit, leading to frustration about awarding them the next year’s contract under these circumstances. It was argued that RKO didn’t even meet the RFP’s qualifications because the RFP specified due date requirements, which the firm consistently failed to meet in recent years.  
• Dissatisfaction with Current Service: Strong objection was taken to language in the RFP process where the city’s response to a bidder question indicated the city was “very satisfied with the current performance”. Councilors vehemently disagreed, stating they were not satisfied due to the delays.  
• Impact of Delays: The delays were framed as holding the city “hostage,” particularly concerning the Annual Report, which the city decided back in 1997 to link with the audit. This prevents the timely release of the city’s financial picture to the public.  
• Inadequate Outreach/RFP Process: Concern was raised that perhaps not enough was done to encourage other firms to bid. There was a desire to redo the RFP and proactively reach out directly to all 14 licensed auditing firms in Maine to ensure broader participation. The fact that only one bid was received was seen as problematic.  
• Counterarguments and Administration’s Position:
• Complexity of Bangor’s Audit: The Finance Director explained that comparing Bangor’s audit cost directly to other cities like South Portland wasn’t “apples-to-apples”. Bangor has more enterprise funds (7 vs. 1 in South Portland), significantly more grant programs requiring compliance testing (over 80 vs. approx. 50), and the specific complexities of auditing an airport (PFC/AIP rules), requiring more specialized, potentially higher-cost staff time.  I questioned the relevancy of the information provided if it wasn’t “apples-to-apples”.
• Shared Responsibility for Delays: The Finance Director emphasized that the delays were not solely RKO’s fault. He cited severe city staffing issues in multiple key departments following COVID, delays caused by the move back into City Hall, and difficulties in furnishing required information promptly to the auditors as significant contributing factors. While acknowledging RKO also had staffing issues, he stressed the city’s own challenges in meeting its obligations. He noted RKO had consistently met deadlines prior to 2020.  
• Limited Pool of Qualified Auditors: It was pointed out that while there might be 14 licensed firms, likely only 2, 3, or 4 are actually qualified and willing to perform complex governmental audits requiring specific “Yellow Book” standards and expertise.  (During the March 17th Finance Committee meeting staff had said 19 firms.)
• Risk of Having No Audit: A stark warning was issued that rejecting the sole bidder and potentially ending the relationship with RKO could leave the city without an audit for FY25. This would have severe consequences, potentially violating city charter requirements, bond covenants and jeopardizing state and federal funding eligibility.
  • First, I dismiss this risk on its face. This would suggest the city staff would simply give up on their pursuit of an audit for FY2025? For as long as FY2024’s audit is taking (still in progress as of April 16, 2025) I have every confidence we could have found another auditor had we put full effort in soliciting bids for another.
  • Second, I question why there is not a similar concern over violating the charter requirement for an Annual Report to be issued at the end of the Fiscal Year. We are nearly 10 months past the end of the last fiscal year without an Annual Report, and for the 2nd year in a row City Council received a budget before the Annual Report.
• The Motions and Outcome:
• Motion to Reject: I made a detailed motion to reject RKO’s bid on the grounds that their history of delays indicated an inability to meet RFP requirements, to instruct the Finance Director to reissue the RFP with the original deadlines, and to require proactive, direct contact with all qualified Maine firms to encourage broader bidding. This motion failed.  
• Motion to Accept One-Year Contract: The administration recommended, and a subsequent motion was made, to award RKO a one-year contract (instead of a multi-year one) for the proposed $174,500. The rationale was to ensure the city fulfills its legal and financial obligations by having an audit completed for FY25, while allowing the council to reassess RKO’s performance (and the city’s ability to provide timely information) before committing further. This motion passed 3-1, with me being the NO vote.
• The end result is auditing services received a 45% increase for ONE YEAR, representing $54,500 in additional expense to the City. The FY2026 Budget projects another property tax increase. Stuff like this adds up.

City Hall Upgrades:

1. Audiovisual Equipment: The contract was awarded to the second-lowest bidder, ProEV Systems, for $199,510.95. The lowest bidder was rejected because they proposed proprietary equipment, limiting future flexibility. Funding was approved from the improvement reserve.  
2. Wiring & Security Access: Contracts totaling $413,000 were awarded to ABM Mechanical ($333k) and Norris Minute Man ($80k) for data/security cabling and door access systems for the first-floor renovation. It was explained that wiring was historically treated as a separate project and not included in the initial renovation scope. Funding was approved from the unassigned fund balance.  

Property Possession:

• The committee approved moving forward with taking possession of seven properties with matured tax liens, mostly vacant land, to clear up tax rolls. The process follows state law regarding notice and potential resale, with excess funds returned to former owners or sent to the state’s abandoned property fund.  

Audit Status Update:

• The Finance Director reported that the completion of the current audit is still pending. Recent delays involve addressing new accounting standards requiring detailed disclosure of leases, which necessitated gathering more information and making adjustments. It was emphasized that these adjustments relate to specific accounting rules (full accrual) and don’t reflect issues with the city’s operational budget or cash position.

Business & Economic Development

You can read the agenda here.

1. Recreation Economy for Rural Communities (RERC):

• Chair of the Greater Bangor RERC Steering Committee, presented an update.  
• The committee finalized an action plan focusing on promoting outdoor recreation/cultural tourism, improving trail/waterway connectivity and river access, and fostering regional collaboration.  
• Funding was received for a wayfinding project (including audits and signage) and a regional market research/brand development campaign.  
• The committee requested and received approval for the acceptance of a donation of three interactive digital wayfinding kiosks to be placed on the waterfront, in Pickering Square, and at the airport.  

2. Airport Director Report:

• The Airport Director provided several updates:
  • Delta extended its seasonal service to Atlanta and Detroit for six weeks and upgraded aircraft size.  
  • February passenger numbers were up 15% year-over-year compared to 2024. The new parking lot generated roughly $150,000 in revenue in about four months.  
  • Updates were given on infrastructure projects, including a passenger boarding bridge replacement, the terminal connector project, and upcoming runway closures.  
  • An air service development report highlighted Bangor’s market recovery post-pandemic, identified key destinations (with potential targets like Nashville and Raleigh Durham), noted Bangor’s higher average airfare compared to regional competitors, and discussed industry trends like airline consolidation and the growth of low-cost carriers. Potential interest from Southwest Airlines seems to be on hold. Confirmed targets include United to Washington D.C. and the already secured Delta service to Detroit.  
  • The committee approved pursuing a funding opportunity through the Northern Borders Regional Commission for checkpoint upgrades, specifically unmanned exit lanes.  

3. Army Corps of Engineers Request:

• The Assistant City Solicitor requested authorization for the U.S. Army Corps of Engineers to conduct soil testing on city property adjacent to the airport (the former Bangor Military Range) to check for military munitions.  
• The committee approved the request.  

4. Foreign Trade Zone (FTZ) Update:

• The Economic Development Officer provided an update on reactivating Bangor’s FTZ (Zone 58), which hasn’t been active for over 30 years.  
• The FTZ allows businesses within a five-county area to potentially defer or eliminate duties on imported goods, improving cash flow.  
• While the city acts as the grantee and promoter, businesses work directly with the Department of Commerce and Customs Border Protection (CBP) for compliance and specific benefits. Establishing partnerships with relevant agencies has been a focus.  
• The committee approved moving forward with a promotional campaign to educate businesses about the FTZ benefits, despite the city having limited control over the final implementation process for individual businesses.  

5. Community Development Updates:

• The Community Development Officer outlined plans for National Community Development Week (April 21-25).  
• Activities aim to inform the public about the Community Development Block Grant (CDBG) program, celebrate its 50th anniversary, and advocate for continued federal funding, noting that award amounts haven’t been adjusted for inflation in 50 years.  
• Events include planning workshops, public engagement surveys, an open house, and a CDBG project showcase.
• I asked for a proclamation recognizing National Community Development Week, which I had the honor to read and present at the next City Council meeting.

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