Loading...
HomeMy WebLinkAbout2000-03-20 Finance Committee MinutesFinance Committee Meeting Minutes March 20, 2000 Councilors Attending: Pat Blanchette, Dan Tremble, Michael Crowley, Gerry Palmer, Nichl Farnham Staff Attending: Edward Barrett, Dave Pellegrino, Ben Birch, Charlie Mitchell, Sean Gross, David Little, Arthur Stockus, Jim Ring, Phil Drew Meeting convened at 5:00 p.m. 1. Consent Agenda: a. Matured Real Estate Lien - 15 Highland Avenue It. Matured Sewer Uen - 303 Lincoln Street C. Matured Sewer Lien - 32 Walter Street Approved. 2. Bids: a. Speed Monitoring Awareness Trailer - Police Department KUStom Signal, Inc. ($9,985.00) Recommendation to award to the only bidder for the complete speed monitoring radar and trailer for $9,590.00. The additional $195.00 is for a storage cover for the bailer. $5,000.00 Is budgeted from the Drug Forfeiture Account with matching funds to come from the State of Maine, Bureau of Highway Safety for Traffic Enforcement Gant. Approved. It. Greens Mower - Golf Course Hammond Tractor ($3,954.00) Recommendation to award to Hammond Tactor of Fairfield, the low bidder. Approved. C. Repair of Snowplow Staff Is asking for approval to have the repairs done to the new plowtruck that was recently Involved in an accident. The estimated cost is $20,000 - $30,000. Staff is meeting with the insurance company to see about coverage of the truck. If the insurance company doesn't cover the cost of repairs, saff will come back with a recommended source for payment. 3. Award of Contract for Airport C - AirpQEVEumhasina Stellar Partners Inc.,of Tampa. Florida Stellar Partners, formerly Fenton Hill Florida and the current operator of the Bookshop, was the only proposal received. They are proposing to operate ail retail operations (except restaurant/lounge) and have negotiated with the Grasshopper Shop and Duty Free Sales concessionaires In doing so. Stellar Partners would act as the "Master Concessionaire" and sub -contract to the other two operators. Stellar Partners will manage all three and be responsible for the staffing and stock keeping at all three stores. This system has been proven to work at other airports and results in more efficient services. Staff recommends this proposal. Approved. 4. Award of Contract for Airport Advert " - Almort/Purchasing Boston Fox Tique International LLC (BFT) of Portland, ME Ten proposals were received for the Airport advertising consulting services. Staff narrowed the feld to three and interviewed those three on March 3. BFT Is staffs recommendation, in part, because they are affiliated with Terry Banks Kemp of Portland. They have tremendous buying power in the market doing over $24 million In advertising per year. They do have an office in the UK and are familiar with the European market. They were the most responsive to the request and gave a very professional proposal, presentation and Interview. They also did not have any possible conflicts of interest. Approved recommendation to Council. MONEM1171 7FPu Ed Barrett explained that Public Works has a number of automated applications that are important, One of which is cost accounting where they can cost out the jobs and what they actually spend on inventory system, installations in the field, which they dont have the capability of doing right now (tacking sign installations, etc.). During the budget process, $7,500 was authorized to buy a software package to allow them to transition off the old IMS system Into a new package that would be designed specifically for Public Works applications. The package that staff Initially looked at did not complete the tasks needed. Information Services looked at the program and found it to be a decent financial package but it was very structured and left little or no room for expansion without going back and having them re -write the software in order to accomplish what was needed. Carte -Graph gave a demonstration of their software and was so impressive that BACIS bought the signal module. Information Services, Public Works and Aron Larson evaluated this and found that it was a far more technically orientated program. It was able to do the financials that were required and also has the capabilities of tying into a global positioning system. It is based on an access database, which enables Public Works to go in and make their own modifications. Both Public Works and Information Services feel that this will provide the department with what they need now and in the future. This will enable Public Works more detail on the smnnwater, which is something that they have not been able to do. The Sewer Division is also interested in this program. There is nothing currently in place to track their sewer maintenance. They are willing to contribute the additional money needed. In the 1999 budget, capital funds were approved for City Streets software and an automated time system In the amount of $13,500. In addition, there is still money left from a blower that was purchased in the amount of $12,000. The items needed total $25,500. $4,255 is needed to complete the purchase. Staff considers CarteGraph as the sole source provider. They are the only company to provide what is needed. Approved recommendation to Council. 6. Insurance Coverage Charlie Mitchell explained that they received notice from Dunlap Insurance that the current Insurance carrier, Great American Insurance Company, will not be renewing the current policy with the City. This will be effective July 1, 2000. The replacement will be Royal Insurance for property Insurance. They underwrote 50% of the property insurance so it will be a minimal change. Region Insurance Company will be handling the liability. Charlie has been assured that Region is an "A" rated company, which is the same rating as Great American.. P.Z. Massamont will still retain the servicing. They have hired four senior adjusters from Great American as well as the loss control Individual that was servicing this area. Great American is also getting out of the Airport Insurance business. The current Airport policy will not be renewed as of July P. The agent on the Airport Insurance indicated to Charlie that there are two other markets that he feels he will be able to place the airport at the same level of coverage with a company of equal size and without a substantial premium increase. St. Paul Insurance Company, who insures the Nursing Facility, has also decided they are not going to insure nursing facilities any longer. The City's agent is in the process of finding a replacement policy for the Nursing Facility. Staff will keep the Committee Informed, of further changes. '•�ItIPQ�•1:1T The Finance Committee has recently discussed the City's current hardship abatement policy and what is mandatory and also discussed potentially changing how staff processes some of the abatements and giving authority to the Finance Director that on the dear cut cases to come in and recommend and not necessarily bring the individual In. Section 4 of the policy outlines the criteria. One recommended change would be to change 4.1 to read "A hardship abatement shall generally be granted... " Generally if someone meets the criteria in the first section, unless there is something highly unusual, the abatement will be granted under state law. If there were something unusual, It can be taken into consideration. The second question is whether something different should be done as far as processing these requests when they are very dear -cut. Councilor Blanchette commented that there have been poverty abatements before the Committee where on an individual's list of monthly expenses has included cable bills, veterinary bills, which are not figured in. They are backed off according to the City's policy. Section 3.4 of the current policy defines necessary living expenses. These are reasonable expenses for mortgage payments, taxes, basic utilities, healthcare expenses, food, work-related expenses, basic clothing, and automobile, home, and health Insurance. Councilor Blanchette asked why taxes are included in a poverty abatement when they are not being paid. Ed explained that if it Is not abated, they have to pay It Its a monthly expense. Councilor Tremble commented that under section 5.3.5 it mentions other alternatives to alleviate financial distress such as relatives, refinancing, and public assistance Including General Assistance. Some Individuals requesting an abatement have equity in their homes and perhaps should be encouraged to refinance. Dave Little explained the reason far the policy was due to the number of requests staff receive for hardship abatements. At the time, the Council asked that staff begin the process of looking over the individual's application and getting the necessary information and then give the Committee a recommendation. The current Council has raised questions that had not been discussed before, such as equity in the home, relatives, etc. The general policy of the Council has been that the hardship abatement shall be a last resort. An Individual can not be forced to refinance, borrow from relatives, etc. The request can be denied by saying that the Individual has other means of getting the money but it puts the City in the position of whether or not to take the property. If an individual Is denied, they have the right to appeal to the Board of Appeals. In most cases, Individuals who have gone before the Board of Appeals, the decision of the Committee was overturned. Councilor Blanchette asked what guidelines the Board of Appeals uses. Dave L'M1tle - answered that they use the same guidelines as the Committee. Ben Birch commenced that the Assessing Office went through a series of three or four workshops to familiarize the board with the statutory procedures. It may help to familiarize the board with poverty abatements. Councilor Crowley suggested that if the Committee denles an abatement request, the language of the policy he attached w that when It goes to the Board they can look at the policy. Councilor Tremble suggested that if an applicant meets the 4.1 criteria staff should include them on the wnsent agenda of the Committee Agenda which recommends approval. David tittle commented that recently an applicant met all the criteria except that they have $80,000 - $90,000 equity in the home, however staff can not force them to refinance, etc. Ed Barrett suggested that the City Solicitor address this particular Issue of equity in a home and come back to the Committee with further information. Councilor Crowley asked If this policy would hold up under legal scrutiny. Ed answered that there have been very few law cases on what constitutes a poverty abatement. The standard is state law which is section 2.0 of the City's policy. Staff will took further into questions raised and bring more information back to the Committee. Ben Birch, City Assessor, presented to the Committee forecasts for the next year predicated on market conditions as they have been evaluated over the past 4-6 months. Quality of Assessments (Constitutional and Statutory Requirement) Article 9, Section 8 of the Maine Constitution requires assessment to be apportioned and assessed equally according to Just value. Title 36 of the Tax taw, Section 327 sets the minimum assessment standards. Staffs information will support these standards. The range of assessment rating is between 70% and 110%. The Quality Rating minimum standard Is a quality rating of 20, which Is average, 15 is good. The lower the number, 10 or less, is an excellent rating. The City has a tical level of assessment that they follow. The City Council set a policy in the 80's that the department strives to achieve assessment ratios as near to 100% as powlble. The arrem state level for the City is at 93% with a quality rating of 12. Staff work In preparation for this update included Sales Ratios Studies comparing current assessed values with the actual sales that occurred during the specific period. Staff concluded that they are currently under - assessing residential property on average and that properties are generally being treated equitably and the City's quality rating is increasing indicating a greater level of dispersion between various property types. Sales Ratios Studies Staff performed 75 ratio studies. The review is critical for maintaining equality in assessments. To important aspects were discovered: 1. FY2001 Original Ratio Analysis: Sale Perlod/Average Ratio). This information presents a dear picture that the "first six months' and the 'last six month" of the one-year period shows statistically significant reductions in the sales race. The first sir months had a ratio of 94% and the last six months had a ratio of 91%. 2. Higher valued properties tended to be under -assessed relative to lower valued properties. Properties above $100K were averaging just about 90%. (A graph was provided to the Committee). After determining that equality needed to improve, market factors/forces that impact on both supply and demand were reviewed. Staff explained the demand side of the market. In the end, the buyer agrees to buy and the seller agrees to sell and the impact on the real estate market is overall appreciation in the average price of a home in Bangor. The recommended changes include: 1. In -town Residential Land and Rural Rear Lane values will change (Land Valuation Changes for Proposed FY2001). 2. Residential dwelling with finished basements 3. Residential dwelling with built-in garages 4. Building Height 5. Building Grade These adjustments will improve equity and the price related differential that is current at 1.02 to 1.01. Residential Percentage Increases Ratio Study Analysis Ben explained that 80% of the properties in the City of Bangor will have a change of less than 4%. in looking at the conversion to tax dollars, it shows that 90% of the properties are going to see an increase less than $100. This is assumed if the tax rate stays at 23.70. 440 properties will get an increase in over $140. FY2001 Proposed Changes: Supply and demand factors have Increased. The average selling price in Bangor has gone up from $90,000 to $92,000. These adjustments are necessary because of the market. Overall, the residential average ratio has increased from 93 to 95, which is the goal. Fairness and equltability have improved and the assessments are necessary. After some discussion, the Committee indicated approval of the Assessor's recommended adjustments in property value. 9. Executive Session: Two Hardship Abatement ReauesCs Tabled With nothing further to discuss, the meeting adjourned