05/20/85 Board of Public Works Minutes

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REGULAR MEETING MAY 20, 1985 Based on this information, Mr. Vance is recommending that an award be made to Security Pacific Leasing Corporation subject to further negotiation by the Controller reference the interest rate and that he be authorized to negotiate with the other proposers if an agreement cannot be reached with Security Pacific. It was noted that this award might also be used to finance the equipment that the Board received bids on for the Alley Paving Program, if necessary. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above recommendation was accepted and approved. APPROVE CONTRACT WITH FEDERATED COLLECTION AGENCY (AMBULANCE SERVICE COLLECTIONS) Chief Timothy J. Brassell submitted to the Board for approval a contract with Federated Collection Agency, 224 W. Jefferson, Suite 502, South Bend, Indiana. Chief Brassell indicated that of four collection agencies contacted, only two submitted proposals; Midwest Collection Service and Federated Collection Agency. Federated Collection Agency's collection costs are 35% of all accounts compared to Midwest's 40% to 6 months and 50% of all over. Federated expects a recovery rate of 42%. Therefore, Chief Brassell recommends entering into a contract for the collection of past -due ambulance service accounts with the Federated Collection Agency. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the above contract was approved and executed. APPROVE BUREAU OF HOUSING NEIGHBORHOOD PAINT -UP PROGRAM AGREEMENT Mr. Ted Leverman, Assistant Director, Bureau of Housing, submitted to the Board for approval an Agreement for Rehabilitation of Real Property between the Board of Public Works and Homeowner, Bruce and Janice Johnson, for the property located at 501 Kosciuszko. Mr. Leverman advised that the previous owners of this property had been approved for the Paint -Up Program but subsequently moved after having painted only a portion of the house. Since the new buyers meet the financial qualifications of the program the Bureau of Housing is seeking approval of this Agreement so the project may be successfully completed. Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard and carried, the above Agreement was approved and executed. REPORT ON PROCEDURES USED BY BUREAU OF HOUSING WHEN PURCHASING PROPERTIES UNDER THE LOCAL HOMESTEADING PROGRAM In a letter to the Board, Mr. Ted Leverman, Assistant Director, Bureau of Housing, reported that when the Local Homesteading Program began in 1984 they contacted several real estate agencies and informed them of the type of properties they were seeking within their target area. They also checked out several properties listed for sale by owners. In 1984 the Bureau of Housing purchased six (6) properties. Ms. Carol Zartner of Cressy and Everett Realty was the only agent who came forward with a list of properties of which the Bureau of Housing eventually selected four (4) and selected two (2) properties without the involvement of a realtor. Three (3) purchases are currently being processed and Ms. Zartner is involved in their execution. Further, out of the six (6) properties involving realtors to date, Cressy and Everett has been the listing agent on only two (2). The other four (4) were listed by Century 21, H.I.S. Realty and 20th Century Realty. It is Mr. Leverman's understanding that Cressy & Everett shared the commission paid by the seller in those transactions. Mr. Leverman indicated that the process of selection is the same for all properties. The Bureau of Housing inspects the property with the realtor or homeowner. Their Rehabilitation Specialist gives an approximate figure on the cost or rehab based on this general inspection. A decision is then made based on the sale price, the approximate cost of rehab and the location. Next, they