HomeMy WebLinkAbout2017-01-03 Finance Committee MinutesFINANCE COMMITTEE MINUTES
January 3, 2017 @ 5:15
Councilors in Attendance: Graham, Sprague, Nealley, Faircloth, Perry
Staff in Attendance: Cyr, Conlow, Willett, Nicklas, Linscott, Little
1. Bids/Purchasing
a. Backhoe/loader (life cycle costing) - Public Services - Nortrax - $107,000
Motion made and seconded to recommend contract award to City Council. Motion
passed unanimously.
b. Contract Assignment and Amendment — Bus Rehabilitation Contract
Motion made and seconded to recommend contract assignment and amendment from
MMA to Loring Industries to City Council, motion passed unanimously.
2. Request to Accept Proposed Settlement of Utility Charges — 55 Pushaw Road
Staff reviewed the issues with the outstanding utility charges, prior to the current owner's
acquisition. Prior to the recent utility billing conversion, tenants were assigned new
accounts, once the conversion occurred, all past due amounts related to the location were
reflected in one account. The owner proposed a settlement to pay all outstanding principal
and a portion of the interest. The City accepted similar settlements during the conversion
period. In order, to accept this settlement, all other amounts owed on the property must
be paid as well, specifically property taxes. Motion made and seconded to approve
settlement as presented by staff, motion passed unanimously.
3. Request to Write off Real Estate Taxes — Lot 59 Colonial Pines Park
This mobile home has just over $1,500 in outstanding taxes. When the owner left, the
Park took possession of the unit and due to its condition, demolished the property,
therefore staff recommendation is to write off the amounts owed. There was discussion
about the issue with past due amounts on mobile homes. Typically, the City does not
take possession as it creates additional carrying costs (lot rent, utility and insurance) and
there isn't sufficient value for the additional investment. Typically, the City works with
the Park owners who resolve the issues with the unit (typically demo, renovate or disposal)
and the City typically writes off the taxes. Councilor Graham asked if there was a way to
create an escrow of sorts with new units installed to guard against this, staff indicated
they did not believe there was any way to create such an escrow. It was also noted that
there is an existing State Statute that requires those who remove mobile homes obtain a
form that all taxes are paid in full prior to moving/removing. This provision is typically
not adhered to. Motion made and seconded to write off real estate taxes, motion passed
unanimously.
4. Request to Write off Real Estate Taxes — Buildings Only — 2682 Broadway
These tax accounts are comprised of three buildings located on land owned by another.
As the matured liens related to the buildings only, Legal was working to determine the
best course of action. The City wanted to be sure it identified any potential liabilities or
hazards within the buildings prior to taking possession, to ensure additional liability was
not being assumed. It recently came to our attention, that the buildings have been
removed, therefore the liens no longer have an asset behind them. Legal indicated that
they did not believe Legal action would result in adequate compensation to justify the
additional costs to pursue in court. Therefore, staff recommendation is to write off the
real estate taxes. Councilor Graham indicated that he felt the City should pursue some
sort of Legal action due to the size of the write. Other Councilors noted discomfort with
the amount of the write off, but did support Staff recommendation. Motion made and
seconded to write off real estate taxes, motion passed by a vote of 4-1, with Councilor
Graham the dissenting vote.
5. Update on Properties with Matured Liens and City Acquired Properties
Staff provided an update on the City's collection status of real estate taxes as well as an
overview of properties acquired by the City and the status of each. It was noted that
Staff will be coming before the Committee early this spring with a list of properties
identified for Council action. It is likely that many of these properties will be occupied.
Councilor Graham asked about options to enhance the marketing of acquired properties.
Staff indicated that most recently efforts have been through the RFP process, BDN ad,
facebook and a local real estate show. Staff shared that to date the properties acquired
have had little to no value. If acquired properties have good potential value, staff will
look to utilize other means such as an enhanced web presence and/or broker relationship.
Meeting adjourned 5;49 pm