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HomeMy WebLinkAbout1998-02-17 Finance Committee MinutesFinance Committee Meeting Minutes February 1], 1998 Councilors Mending: James Tyler, Michael Crowley, Joseph BaldaaS Nichi Farnham David Lan StaffMerdiag: Edward Barren, Err Stumpfel, Norm Heitman, Deb Cyr, Dave Little, Gail Campbell Others Handing: Royce Day, Fred Vardamis Meeting Convened at 6:25 p.m 1. Executive Session: Two Land Dispositions 2. Bids: a. Handicap Modifications (Airport Departmerrt) Nickerson & O'Day, Inc. Of Bangor ($249,685) This is primarily for the installation of sprinkler system and is included order handicapped modifications because by putting in tim sprinder systems, places of refuge do not have to be built and the costs can be reduced to meeting handicap requuemeres. There is also some work being done on original bathrooms than were not renovated as well as some of the entryways. The sprinader system is approximately5150,000. ThebaWromsandemywaysaodacalingmakeupthe balance. Councilor Tyler salad why there is such a difference in the budgeted named and the estimated amount? Dave Pellegrino mnunrnted that he wasn't gore. The final engineer's estimate was $280,000. Ed explained that what was put together in the budget was a rough carinate without any engineering costs associated. Councilor Leen commented that this was budgeted fm approximately $193,000 and now it is m$ 249,000 with two accowt numbers. Dave would like to know what execute this is coning our oR Deb Cyr eaplairtaxi that the additional money is coming from an outlay account. The Committee tabled this item. 3. Relocation ofHeahh and Welfare Department to the Naval Reserve Center. Three proposals were received for office space. They included 77 Exchange Street (former Key Barr building), 12 Stillwater Avenue (former St Joseph Healthcare Unit), andnewmn imlogobhind BeacoNCadMac/Olds. Alldreewerosomewbat expensive, Haugh stafforigmally thought the Navd Reserve Center didn't suit the nerds, etaffdecided to take anothalook Carpaterand Asso6Uminass iadonwith Bingham & Woodward did a prelirninary review of the property. There is 15,000 square feet plus 3,000 in storage, 3 acres ofland, a garage and d is a good location. Councilor Leen asked if City Engine" dbn Ring bas looked at this in terms Mthe increased emouat of traffic on Esses Street and Stillwater Avenue ares This is a may inmeaive use for this building and Dave is concerning now that until there is some relief of traffic coming from Broadway going down Stillwater to the mall, there would be increased congestion. Mary Anne ChaWa agreed that there would be a significant increase There would be 75 parking spaces on site, which is adequate to deal with clients and staff. ]here are approximately 30 employees plus there are 75-100 individuals seen each day, which would be about 130 more people a day traveling in this area In comparing the renovation cost ($812,000.00) with the present value of the lease payments "at 10 years, the result is approsnowely $940,000.00. More money would be spent on new construction office space and the building will not be owned after 10 years. Staff recommends proceeding with the renovation project at the Naval reserve Center after the change in license is approved at the Nursing Facility There should be a good idea on how the nate will react to the Nursing Facility proposal within the neat several weeks. Ed Barrett as Don Gross, the Nursing Facility Admirristmtor, to attend the maxt Municipal Operations Committee to update the Committee. Comcdor Farnham asked about the possibility ofusing the Army Reserve Center instead ofthe Naval Reserve Center, Pd Barrett explained that the building hasjust started going through thefederal disposition process. It has been declared as surplus, which means it first hes to go to Health and Human Service, than go through the MCKhmey procedure to we if there is a homeless provider who is interested mit, The City's epemence is thus burn the mama federal property is dodged excess to the time anything is done with h, is a mini num of three years. Approved as recommended. 4. Designated Demolition Resarw Ammust Ed Barrett explained that this would amend the City's designated fimd balance policy to allow the City to have a demolition reserve. When a property is sold which was acquired through tax title, this account is to help pay for demolition and other costs associated. Approved as recommended. 5. George Tirades Properties These are properties that the City has already taken possession of but int he possession order the taxes were not written off This made to be done through Council Order. The mtalwnteofflslustmder$35,000. Approved. 6. Payments and Workout Agreements- Various properties These are five separate properties that owners have either offered to pay in full or enter into a workout agreement. These properties have a trained 1996 tax Gen because the City owns title to the property. Pour of the properties are straightforward. Them are no code violations, no sewer due except a minimal amount Dave tittle was contacted by the Mortgage Company on the find property. They indicated they may wish to pay, but Dave hasnotbeardbackbomtlem. Thiswouhlgivea30dayapprovel. Iftheyommenhim within the iwxt month, he will take either the mortgage company or the owaces money, and deed the property back to them. If he doesn't hear from them, he will come back agminwhm theydo comact him. Counmlor Tyler asked the City Solicitor ifthis is consistent with the torrent practice. Erik replied, no, to the einem that there is rota workout agreement in place. These we matured tax liens that have come to the City offer the her has matured asking for a workom. What there are no code violations, these requests are normally considered. The Camndtt« approved recommendation to accept, subject to the City Solicitor being made aware of the agmannerds and accepts them. 7. Payment of Outstanding Taxes -78 Bice Street Purple's Fler"vage Bank coatamnd the Treasurer's Office inquiring about Consolidated Warehouse on 78 Bice Street They weretold there are delinquent =as and no workout in place. People's paid $70,000 on pay off all the liens. There is a 19%maturol lien, an approval is needed to accept that money. Ray Lynch, the owner ofLynco wanted the Council to understand that he did have a workout agreement that expired. FIe was making programme under that agreement and it was his belief, given to him by the former rex collector, that the agreement did not need to be re-signed after 12 months, it would automatically be extended. The Legal Department has indicated an Dave that the City is well within [ear rights to accept the money born People's, pay off the account and bring it current The property will than be quit -clamed back to Lynco. Erik commented that occasionally the City bas foreclosed on property owners, bin nM the bank. Dave explained that in talking with Mr. Lynch, his indication to him was that the bank was aware of the matured hen but also knew there was a workout agreement an they were fire with it. Approved. S. 13A Street - Purchase of City Property Crtant Trailer Sales contacted Dave Little indicating that they would like to purchase a under that is located at patch M Estates. They indicated that the trailer was abandoned and not down. At Dave's request,Code Ifrdmcement went our and looked at it. It does appear to be abandoned, but it is structurally sound and in need of cosmetic work. The estimated worth is approximately $10,M-$15,000, It is valued at $17,000. Dave would like to tryW con act the mortgage comping and the previous owners, both of which were notified ofmhe matured lien, but have not responded. ifpsyment can not be received, Dave will come back to the next Furnace Committee Meeting with a recommendation to take possession and seg it through a bid process: Approved. 9. Bangor Meme Associates - Collection Account A member of years ago, $80,000 was loaned to the Bangor Maine Association to redevelop Property now known as the Phenix Inn. Some, payments were made, but the loan went ido a def h status, as did the&A mortgage. The &n mortgage holder foreclosed, sold the property, which wiped out the City's security interest, but still had the mortgage note. Bangor Maine Associates had an assets but their general partner, Sldp Igoe, did. Suit was filed againd turn and ajidgmem was given in the amoum of $65,799.10. M..Igoewasin Coln'omiaatrhetimeofjudgmm althougbhedid5 m answer. The moat recent information is that has is living in Vrginia and the City Solicitor wmWd like to send the Me to a law firm in Virginia to by to Sed him dere. There are two options: One is a straight contingency of 1/3 the amount recovered and the other is that 5% of the principal and interest due as of February l2, 1998 be prepaid. In return, if anything is recovered, the rota) contingency wW be 23%. The Committee approved recommendation of 1/3 of the around recovered. 10. Order: Transfer of Appropriation for Special Elections for 1998 This is to cover the cost oftwo elections. One was the special referendum this modh and them is a special Council election coming up in April. The budge attached is approvmtely$9,000 per election ($18,000). There is currently about $26,000. Approved.