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HomeMy WebLinkAbout2021-06-07 Finance Committee Minutes FINANCE COMMITTEE MINUTES June 7, 2021 Councilors in Attendance: Okafor, Dubay, Davitt, Nichols, Hawes, Tremble, Sprague, Fournier Staff in Attendance: Laurie, Conlow, Little, Caruso, Huotari, Hathaway, Theriault 1. Consent Agenda a. Workout Agreement – 122,118,116 Jackson Street – Sanborn Properties b. Workout Agreement – 190 Union Street – Marshall c. Workout Agreement – 177 Larkin Street – Robinson d. Workout Agreement – 133 Lancaster Avenue – Isaacs e. Workout Agreement – 21 E Street – Pavento f. Workout Agreement – 27 Ohio Street – Barry g. Ratification of Fuel Tank Overflow Protection System – Airport – Sullivan & Merritt - $70,679 h. Resolve, Accepting and Appropriating Project Canopy Planting Grant in the Amount of $7,756 i. Ratification of Emergency Purchase – Tractor Cab Replacement – Public Services - Bootheel Tractor Parts - $12,500 j. Ratification of Lease of Two Electric Vehicles – Fleet Maintenance – Quirk Hyundai Motion made and seconded to approve consent agenda items, motion passed unanimously. 2. Bids/Purchasing a. Fuel Emergency Shut-off Valve Alarm System – Airport – Progress Engineering - $103,877 Motion made and seconded to recommend contract award to the City Council, motion passed unanimously. b. Union Plaza ADA Accessibility Improvements – Engineering – Hughes Brothers - $44,192 Motion made and seconded to approve contract award, motion passed unanimously. c. Stream Monitoring – Engineering – FB Environmental Associates - $97,490 City Council had received a letter from a respondent requesting that the bid award recommendation be reconsidered. In light of this request, staff proposed the option tabling this item and directing the request back to staff through the bid protest process. The protest process is undertaken by the Finance Director who reviews all the pertinent information including communication with the two lowest priced respondents. Council Chair Tremble inquired about the bid recommendation process. Staff noted that the bid process is overseen by the Finance department, but responses are supplied to the staff subject matter experts for review and recommendation. Councilor Sprague wanted to ensure that the protest focused on relevant issues and performance of the respondents. Motion was made and seconded to table this item to the Finance Committee meeting of June 21, 2021 and have the staff complete the bid protest process, motion passed unanimously. d. Request to Contract for Pickering Square Garage Drainage Repair – Parking – Hughes Brothers - $12,600 Motion made and seconded to approve contract award, motion passed unanimously. e. Request to Purchase Rain Gear – Police – Trident Armory - $15,959 Motion made and seconded to authorize the purchase, motion passed unanimously. f. Renewal of Workers Compensation Third Party Administration Contract – Maine Municipal Association Motion made and seconded tor recommend contract to City Council, motion passed unanimously. 3. Taxpayer Request – 22 South Park Street – Proposed Sale The City has matured liens as well as holds mortgages through its CDBG program on this property. The property is under the ownership of the heirs of the owner. A buyer approached the City to determine if the City would take less than the full amount owed if a sale could be negotiated, in no case would any funds be paid to the heirs. The exact payment amount will not be known until closing, but it is estimated that the shortfall would be approximately $4,000. Staff recommendation was that the Committee authorize staff to accept a lower amount if not significantly different to allow the sale to proceed so that the property can be rehabbed and enhance the neighborhood. Motion made and seconded to approve staff recommendation, motion passed unanimously. 4. Request to Write-off Utility Charges – 39 Vernon Street The recent buyer of this property had contacted the City for a final utility bill so that all amounts owed could be settled as part of the closing. Staff inadvertently omitted past due amounts so those amounts remained unpaid after the closing. Staff recommendation is to write off these amounts of approximately $400. Motion made and seconded to approve staff recommendation, motion passed unanimously. 5. Taxpayer Request – 104 Mt. Hope Avenue – Cassidy This taxpayer has been a party to a workout agreement with the City for the last several years. The individual has been diligent in adhering to all the terms. Mr. Cassidy has the opportunity to provide a lump sum payment for past due amounts that would clear the majority of the amounts owed. The taxpayer request was that the City accept approximately $1,820 less in interest than currently owed ($15,865 in principal and $16,955 in interest). A Councilor questioned what interest rate is charged staff responded that it varies by year from between 8% - 9%. Staff recommendation is that the City accept the payment offered by the taxpayer (which has been received is awaiting the Committee’s decision). Motion made and seconded to approve staff recommendation, motion passed unanimously. 6. Request to Write off Uncollectible Personal Property Taxes Annually staff reviews the status of outstanding personal property taxes as part of its ongoing “clean up” of long outstanding balances (some accounts date back to 1997). Unlike real estate taxes, personal property taxes are not subject to the municipal lien process, while there is the UCC filing process, it is cumbersome and difficult to perfect to the City’s interest. Staff recommendation is to write-off $96,400 in uncollectible personal property accounts. The accounts in question are no longer being assessed personal property. They represent businesses that are closed, were sold or previously owned by corporations that are now dissolved. Staff noted that the cost of tracking down the equipment and owners will most likely exceed any potential payments. In addition, even with write-off’s the City’s overall collection rate for personal property taxes is over 99%. Motion made and seconded to approve staff recommendation, motion passed unanimously. Meeting adjourned at 6:45 pm