By GAGE WILSON
For GlasgowNews1
The Glasgow Finance Committee spent much of its June meeting discussing unresolved payments tied to the city’s new Bounty of the Barrens Farmers Market, including how unpaid subcontractors may be compensated so remaining work on the facility can be completed.
Discussion centered on the month-old building after three subcontractors, including companies responsible for electrical, plumbing and HVAC work, filed liens, legal claims asserting unpaid balances for labor or materials, related to the project.
Construction of the facility was overseen by general contractor STACO Building Co., whose parent company, Concentric Corp. of America, operates out of London, Kentucky. As general contractor, STACO was responsible for overseeing construction and paying the subcontractors it hired.
“There are some things to still do,” said City Treasurer Victoria Simmons. “They still need to finish sealing the floor and there is concrete to be poured on one side.”
Chairman Terry Bunnell asked for clarification on payments to the subcontractors used during construction.
“I’ve got a list on my desk of what the subs are all owed,” answered Mayor Henry Royse. “That money is owed by STACO…We can’t get it finished because the contractors aren’t going to finish their work until they’ve got some money.”
Royse used Scott, Murphy and Daniel as an example.
“They need to finish the top, final coat of the parking lot,” he said. “They’re not going to come do anything until they have been paid.”
City attorney Rich Alexander has filed paperwork seeking release of remaining project funds so subcontractors can be paid and complete outstanding work, according to Royse. Royse noted the process could take up to seven days.
Because the city contracted with STACO rather than directly with each subcontractor, committee members emphasized that the unpaid balances remain the contractor’s responsibility.
“The fact is, we hired a company and we have paid that company, that company then hired [sub] contractors and they have not paid their debt,” said Councilwoman Chasity Lowery.
Bunnell said with liquidated damages, contractual penalties assessed when contract terms such as deadlines are not met, still leave roughly $200,000 tied to the project available and already budgeted by the city.
“We just need to work with the subcontractors and see them paid,” said Bunnell. “Because we do not want liens up on that property.”
While not formally listed on the agenda, occupational tax administrator Nick Hurt outlined changes to the city’s tax collection system.
“Pretty much anything that my office collects will be available July 1 to pay online,” Hurt said. “The website is going through KLC and we’re going to be allowing credit card payments.”
Hurt explained that in the past his office has primarily handled net profit tax, transient room tax, occupational tax and other tax notices by mail. Moving forward, his office will encourage businesses and individuals to take advantage of the online option, though payments may still be made in person or by mail.
He also noted that his office will no longer send invoices or reminder letters, a change Hurt estimated could save the city around $15,000 annually. Invoices will still be available online using the taxpayer’s account number.
Hurt said that businesses and individuals will receive a letter in the coming weeks outlining the changes and providing instructions for accessing the city’s online portal. He also made special mention that no due dates will change, and that payments will be processed under current timetables.
Committee members noted debit and credit card transactions will carry a convenience fee of between 3 and 3.5 percent to offset processing costs.
KEY FACTS
• Glasgow’s finance committee discussed unpaid subcontractors and liens at the new Bounty of the Barrens Farmers Market building.
• Several subcontractors handling electrical, plumbing, HVAC and paving have filed liens over unpaid balances.
• General contractor STACO Building Co. was responsible for paying subcontractors and remains at the center of the dispute.
• City Treasurer Victoria Simmons said sealing the floor and pouring remaining concrete are among unfinished items.
• Mayor Henry Royse said subcontractors are refusing to complete work until they receive payment from STACO.
• City Attorney Rich Alexander has filed paperwork to release remaining project funds so subs can be paid.
• Committee Chair Terry Bunnell said roughly $200,000 in budgeted project funds remain tied to the project.
• Councilwoman Chasity Lowery emphasized that the unpaid balances are the responsibility of the contractor, not the city.
• Occupational tax administrator Nick Hurt outlined a new online payment system for most city taxes starting July 1.
• The city will stop mailing most invoices and reminders, a change Hurt said could save about $15,000 a year.
• Debit and credit card payments will carry a 3 to 3.5 percent convenience fee to cover processing costs.
• The next finance committee meeting is scheduled for July 21 at 5:30 p.m.
