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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