HomeMy WebLinkAbout2016-09-19 Finance Committee MinutesFINANCE COMMITTEE MINUTES
September 19, 2016
Councilors in Attendance: Perry, Faircloth, Graham, Sprague, Durgin, Nealley,
Nichols
Staff in Attendance: Cyr, Conlow, Beaton, Willett, Wardwell, Little, Drew, Nicklas,
Willette, Webb, Rudzinski
1. Bids/Purchasing
a. Plow Equipment & Truck Body — Public Works — HP Fairfield - $66,545
Motion made and seconded to award bid, motion passed unanimously.
b. Tandem Axle Cab & Chassis — Public Works — Daigle & Houghton - $77,775
Motion made and seconded to award bid, motion passed unanimously.
c. Roof Repairs Parks & Rec Center — Parks & Rec - Roof Systems of Maine -
$17,995
Motion made and seconded to award bid, motion passed unanimously.
d. Multiple Vehicles — Public Works — Darlings Automall - $61,628
Motion made and seconded to award bid, motion passed unanimously.
e. Underground Pipe Modifications & Valve Pit — Airport — Sullivan & Merritt -
$73,500
Motion made and seconded to award bid, motion passed unanimously.
f. Request to Waive Bid Process — Deicing Building Furnace — Airport
Motion made and seconded to waive the bid process to acquire a Thermo Cycle
furnace from manufacturer to be installed by Airport personnel in the amount of
$12,132. Motion passed unanimously.
g. Review of Revised Procurement Policy
Staff presented an overall of the revisions to the procurement policy. The
amendment incorporates additional requirements related to procurements with
Federal Transportation Administration (FTA) grant funds. This was an item that was
raised during the Community Connector's recent FTA triennial review. Most are
related to ensuring compliance with federal bid requirements such as Davis Bacon
for construction, Buy America for goods, and the required documentation.
Motion made and seconded to recommend approval of the revised Procurement
Policy to the City Council. Motion passed unanimously.
2. School Department Request to Appropriate Capital Reserve Funds
The request to appropriate school capital reserve funds that came about as a result the
State of Maine final general purpose aid to education funding for FY 2016. Three school
roofs are leaking and the request is to appropriate $225,000 of these funds to repair the
roofs prior to winter.
Motion made and seconded to recommend the appropriation to the City Council. Motion
passed unanimously.
3. Utility Billing Update
Staff reviewed the current state of the City's utility billing system, which is now being done
by City staff. The first liens under the new system will be maturing in January of 2017.
Based on concerns about outstanding amounts, staff reviewed all accounts over 90 days
with liens. The 40 largest accounts will be contacted regarding all amounts owed the City.
Recently the staff has focused on real estate accounts with multiple years of liens, but in
reviewing the sewer bills, it may be necessary to update our methods for identifying
accounts to full up on. Staff is working to tie together sewer and real estate accounts so
that amounts and number of years outstanding can be utilized to determine collection
efforts. Councilors expressed varying thoughts including is this methodology targeting,
should certain types of entities such as non -profits be viewed differently, should lists be
made public, etc. Staff will continue to work on this effort to provide options for the
Committee/Council to consider.
4. Request to Write off Taxes — 12 K Street Birch Hill Estates
The owner of this property walked away from it. The park owner is willing to rehab and
take possession of it, but has requested the City write off the outstanding taxes. Concern
was expressed that this sends a message. It was noted the property owners walk away
from real estate on a fairly regular basis. In addition, mobile homeowners are known to
simply move the home at times. Staff recommendation is to write the taxes off as this is in
the best interest of the City. If this action were not taken, the City would become the
owner, be required to pay lot rent, insure and determine its fate, i.e, rehab or dispose of.
Motion made and seconded to write off the taxes. Motion passed unanimously.
5. City Assessor Review of 2017 Commitment Report
The City Assessor reviewed the recently completed 2017 commitment report. The report
summarized the overall minor reductions in both real estate and personal property values.
The reduction in real estate is driven by abatements and the reduction in personal property
is due to only about 1/2 or new investments in personal property are taxed locally and the
balance is exempt from taxation through the State's BETE program. Under the BETE
program the City is reimbursed 56% of the lost tax revenue.
The City Assessor reviewed the results of the recently completed State Valuation process.
The State Valuation increased slightly, and the City's sales rational and quality rating also
improved.
The City Assessor review the upcoming change to the Homestead Exemption. It will
increase to $20,000 per home effective 4/1/2017, but will also come with an increased
reimbursement from the State which should minimize the impact on the City's tax rate. The
department will also be reviewing eligibility for the exemption, both those that have it that
should be verified as well as outreach and education for those who may be eligible.
Councilors asked about projects that would generate additional tax value in the coming year
and it was noted that there is limited growth projected.
6. Executive Session — 1 MRSA Section 405 (6)(E) — Workers Compensation
Settlement
7. Open Session — Workers Compensation Settlement Recommendation
Motion made and seconded to recommend approval of the settlement to the City
Council. Motion passed unanimously.
Meeting adjourned 6;38 pm