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HomeMy WebLinkAbout1998-11-02 Finance Committee Minutes Finance Committee Meeting Minutes November 2, 1998 � Councilors Attending: Joe Baldacci, David Leen, Jerry Palmer, Jim Tyler , Staff Attending: Edwa.rd Banett, Dave Pellegrino, Bill LaPa.n, Debbie Cyr, Ron Heller,Norm Heitmann, 7effCammack, T.J. Martzial, Rod McKay 1. �: a. Waste Oil Heaters(Motor Pool Department�, Orino Waste Oil Heaters of Rumford($6,995.00� These are replacement heaters for Motor Pool. Orino is the low bidder. Approved. b. Asbestos Removal Services(C�Nursing Facilitxl Maine SF of Auburn($21,718.00� This is for the mechanical room at CNF. The cost is higher due to access problems. Staff recommends Maine SF of Auburn. Approved. c. Interior Renovations �City Nursin Facili 2 C.A. Construction�Inc. OfEast Sullivan(�49�571.00� � Tabled pending further discussion. d. Office Automation Systems ,C�Ha11� New�n�land Communications ofPortland ($78�361.00� This is for the first phase of the City's office automation. There are approximately 100 PC's in the City. There is a variety of hardware and software on these machines and staffwanted to look at a uniform soflware package for word processing, spreadsheets, database system and internal and external e-mail access. The Committee also took a complete inventory of hardware and software and put together a list of those machines that were year 2000 compliant and those that were not and plans were developed in how to address this issue. After discussions about software, the Committee decided on Windows95 as the operating system and Microsoft Office as the basic software. The communication system would be done through WindowsNT. In looking at hardware, staff decided on a separate file server that would handle all the office automation and communication which would be hooked together with the current file server that handles the financial ' applications. The original step is to upgrade City Hall. The next step is to extend the system to other departments by using the institutional net that the cable provider will give the City. It will be a fiber optic system which will give the capability of transmitting video, audio, data, etc. at a high speed at no cost. This • should be up and running within the next calendar yeax. Staffwill also be looking at selecting an Internet service provider to route e-mail to the outside. $80,000 has Page 2 Finance Committee MeetingMinutes November 2, 1998 � been budgeted this year to get started. The Committee evaluated the proposals and Councilors Tyler and Farnham sat in on presentations from three vendors. ' The recommendation is New England Communications. The hardware cost is approximately$37,000. The software is $24,000,which includes upgrading the PC's that need to be to have Windows95 installed. Installation and hardware ma.intenance is $16,592. Staff suggests that even though this item is less than $100,000, it go forward to the full Council because it does have implications that will extend beyond $100,000. Approved. 2. R�uest to Purchase Used Vehicle(Motor Pool Denartment� Bob Dawes explained that the pick-up truck assigned to the General Highway Foreman was taken out of service because of its condition. Staff is requesting pre-authorization to look around and find something priced up to $13,000. Approved. 3. Request for Waiver of Interest and Lien Fees- 160 Silver Road This item was tabled from a previous meeting. The owner of the property, Charyll Chandler asked to address the Committee. There is currently a lien on her property for unpaid taxes. At the time when Ms. Chandler purchased the property,the first half of the FY98 taxes were paid in full but she was not informed about the second half due in March of 98. The taxes went unpaid and City sent a 30-day demand letter to Gladys Rogers, � who is deceased but was the assessed owner for FY98. In 7une, the City filed the lien. When Ms. Chandler paid 1999 taxes, the City applied the money, per the City policy, to the unpaid taxes. When she received the receipt, she called with her concerns. Staff indicated to Ms. Chandler that this happens fa.irly regularly due to the number of tax bills that the City handles and that they could not help her rectify this mistake. Ms. Chandler then spoke with Norman Heitmann who agreed to put this item on the agenda. Based on these circumstances, Ms. Chandler is asking for the lien to be removed and also any charges associated with this. Norm commented that this is a unique situation and is unclear why the postal registration card wasn't returned to the City. The law requires that the Demand letter be sent to the assessed person, which in this case was the deceased. If staff had known, they would ha.ve sent a copy to the owner; this didn't happen because Treasury did not know. The amount involved is $54.00. Legally the City is not required to return the money, and sta�cautions the Council on the precedent this may set. Committee approved waiving the fees due to the unusual circumstances involved. 4. I�otice of Lease Termination-Diri,�o Search and Rescue Dirigo signed a lease in 7une with the City for the former City animal shelter. The sole consideration of the lease was $1 per yeaz plus an obligation to pay utility charges. For � whatever reason,Dirigo has not paid the utility charges. They were sent a notice of lease termination. As of today, Erik received a faxed photocopy of a receipt from C.N. Brown and a f�ed photocopy of two checks, one to C.N. Brown and the other to Credit Bureau Services of New Hampshire(Bangor Hydro bill)for the full amount due. The lease does not need to be terminated and staff is asking if the Committee wants the notice withdrawn. The notice of termination will be withdrawn. Page 3 Finance Committee MeetingMirzutes November 2, 1998 � 5. Council Resolve 98-425 A��ro�riating the Balance of the Bangor Firemen's Relief Fund and Closin� Out the Fund , When this trust was established, the City was not able to insure its employees against accidents and injuries. With the advent of Workers' Compensation, there is no need for this fund. The City provides 100% of wages and covers medical and related costs for firefighters who are injured. The transfer of the trust's balance to the Workers' Compensation Division complies with the intent of the trust. The balance is $18,700. The City could go to the probate court to get permission to terminate the trust or leave it as it is with respect to the original $2,220. Staffrecommends amending the resolve by indicating that the balance of the interest go back to the Workers' Comp account and have Erik go to probate court separately on the $2,220 to get permission to dissolve the trust. Staff will amend the resolve and put it on the agenda. Erik commented that there are a number of these trusts. He currently has two in probate court. One is the Bangor Fuel Society. The City holds funds in trust for them and they have petitioned the probate court to dissolve that so they can assume direct management of the funds. There is also the French Meda1 Fund which is managed by the School Department for the purpose of awarding silver medals to students in Bangor schools for academic achievement, which has $55,000 in it. The City ha.s gone to probate court to change the purposes of this trust. Ed commented that there are a lot of missionary fixnds . that should be freed up and made into something that can be used. These are funds that were originally established for the poor. Given the general assistance program and the federal support program, it is almost impossible to use this money. Staffwould like to put these into a trust for a purpose related to the original request. Committee directed staffto put together a list of the funds so that they can be taken care of at the same time. 6. Council Order,- Transferring $200,000 to the Enterprise Fund. This Order would transfer$200,000 to the Reserve Fund for Enterprise Funds and increase the amount in reserve from$1,900,000 to $2,100,000. This transfer from the Undesignated Fund balance is one of the funding mechanisms identified in Council order 96-247 which created the Designed and Undesignated Fund Balance Policy. Approved recommendation. 7. Council Order. Authorizing the Finance Director to Reclassif,�Certain Desi�nated Fund Balances Accounting regulations do not correspond with how the City budgets. Specifically the regulations state that if you have pre-paid items on your balance sheet, you must reserve � fund balance for that. This year there is a$26,600 pre-paid item which will have to show a reserve fund balance in the auditor's financials. This order will allow the Finance Director to transfer money for financial statement purposes only. It will not change the � original intent of Council. Committee recommends approval to full Council. 8. Rec�uest for Tax Exem�t Status-207 Perry Road, Lot 8 This is an update for the Committee. Ben Birch heard from St. Joseph's Hospital and notified the property owner that he is satisfied, through proper documentation, that the Page 4 Finance Committee MeetingMinutes November 2, 1998 � hospital discontinued their activities of December 1. Therefore, as of April 1,the Perry Road property will be taxed. 9. Matured Sewer Lien-Workout Agreement- 102 Cotta�e Street Mr. Savage, owner of 102 Cottage Street is requesting another workout agreement for his sewer bill. The lien on this property matured on 3/12/98. Norm explained that the taxes are current and there are no code issues. Mr. Savage has agreed to a payment scheduled, plus keeping the current bills paid. It will be paid off in approximately 12 months. Committee authorized staffto go ahead with workout agreement. 10. Matured Tax Lien- 80 Elm Street Staff is asking that this item be tabled. Originally it was thought that there were no code issues; however it has been discovered that there are. There a.re two buildings on the property and both are partially placarded. More information will be needed. Approved tabling this issue. 11. �uest for Abatement of Taxes- 1953 Essex Street Mr. Merrill sold property located at 1953 Essex St. There were outstanding taxes for 97, � 98 and 99. When the check was received for payment, a portion was applied to pay off outstanding personal property taxes owed by Mr. Merrill for equipment located at 41 Perkins Street and covered for the yea.rs of 1994-1998. The amount applied was $1,540.07. Mr. Merrill explained that the equipment was moved in 1994 and should not have been assessed. He is asking that the 1994-1998 personal property taxes be abated and the payments applied to those years be transferred to the balance of 1998 tax lien and the first half of the 1999 t�es for the property on Essex Street. The City Assessor agrees that the equipment is not located at that property for tax year 1999 and will abate those taxes, but does not have authority to go back and abate prior years. Mr. Merrill is required to file a declaration of equipment to the Assessing office, but he did not. Mr. Merrill recently came into the office and signed a statement that he did remove it. Because it is a portable item, the City Assessor is satisfied with Mr. Merrill's statement. Staff recommends abatement of taxes. Approved recommendation to Council. 12. Executive Session-Property Dis�osition 13. Rec�uest for Easement- 181 Randolph Drive Earle Rafuse is requesting an easement across the abutting property recently purchased by the City from the Federal government. After discussion, the Committee voted not to � recommned the easement. This easement would further restrict an already substandard side yard set back and is most likely not permissable under the City's land use ordinance. 14. Executive Session: L I s e _-- __ _ _ Page S Finance Committee MeetingMinutes November 2, 1998 � 15. Matured Sewer Lien- 289 Broadway Staff is recommending deeding this property back to the owners. Approved. , 16. Review of Sentember Financials Ron Heller explained a few points of the financial statements. Debt service on the general fund was a difference between last September and this September. This is the posting of the debt service payment that was made at the end of September. Another point is that the sewer fund yeax to date revenues are $70,000 as opposed to $2.5 million last year. There is $2 million that hasn't yet been posted from the treatment plant. FINl 1-2.98 � �