April 2, 2007
Work Session
Present at the meeting were Mayor Danderson, Councilors Nelson, Grenier, Cusson, Danderson, Donovan, Lafleur, and Roy; Councilor Poulin was absent. Staff members present were: Patrick MacQueen, Blandine Shallow, Andre Caron, and Pamela Laflamme. Guests were Tom Casey of Warner Cable, Bob Vachon, the City's auditor, Michael Caron, Caron Building Center. Media and public were also present.
Financial Statements
Bob Vachon reported that revenues exceeded expenditures by $26,000 in the General Fund. There are four enterprise funds in the City: Sewer Fund, BIDPA, Courthouse and Cates Hill. Unrestricted new assets which represent the difference between assets and liabilities are as follows: Sewer Fund: $2.1 million dollars; BIDPA: $465,000; all others: $3,000. Cash flows for the enterprise funds are $771,000 for the Sewer Fund and $390,000 for BIDPA.
In the General Fund actual revenues exceeded actual expenditures by $522,000. There were no reportable conditions found during the audit and no written management letter was deemed necessary.
Because the City receives more than $500,000 in federal dollars, it is subject to a federal audit. The City expended over $4.5 million in federal funds during the year; of this amount $2.8 million was received by the School Department. There was one major finding in the Police Department where the Department did not solicit competitive bids for a Homeland Security Grant.
Councilor Grenier asked for Mr. Vachon's opinion of the City's financial health. Mr. Vachon noted that major issues do not seem to stop this City and it seems to be resilient.
Councilor Donovan asked about depreciated assets and how to caution against their effect on the audit. Mr. Vachon reported that if capital items can be budgeted without affecting the tax rate, the depreciation would be offset with capital items.
Mr. Vachon mentioned that the audit is three or four weeks later than usual and that is due to BWW having new accounting software. Had the audit not been complete by March 31, there would be a need to ask for an extension.
Councilor Grenier noted that the airport was not included as an enterprise fund and Mr. Vachon stated that the airport is a special revenue fund of the city. There being no further questions for Mr. Vachon, he left the meeting at this time.
Time Warner Cable - Tom Casey
Mr. Casey explained that significant things have been happening at Time Warner with the acquisition of Adelphia. The local office is managed by the district in Portland ME. In 2003 Time Warner launched Road Runner, high speed Internet access; in 2005, digital phone service was added.
Councilor Grenier made the point that people on a fixed income are likely to subscribe to basic cable and he feels that the stations offered should be usable. There are two PBS stations with much of the same programming; however there is only one French channel that does not carry hockey. He questioned whether the NFL network would ever be carried on ESPN. Mr. Casey reported that the cost to acquire the network depends on the advertisers and the projected viewers.
Mayor Danderson questioned the lack of phone service for three days last summer. Mr. Casey indicated that TW relies on Verizon for some of their third party network and that network failed. The problems were addressed and TW is looking to have back up service.
Councilor Donovan commented that religious stations were taken out of basic cable. Mayor Danderson asked about community programming and how it is handled in other communities. Mr. Casey acknowledged that the community channel here is undeveloped. That will become part of the franchise agreement. It was suggested that a cable production could be tied into education.
Mr. MacQueen clarified that three years ago, he and Bill Jackson started negotiations with Time Warner for the cable franchise agreement. Several contacts were made but the negotiations never got going.
Residency Issue
Councilor Donovan stated that his colleague from Ward I no longer resides in the ward. He stressed that a council person has to be a resident of the ward they were elected to. Councilor Nelson responded that she welcomes having the issue sent to the attorney general.
Councilor Grenier voiced that Councilor Nelson was elected by the people and it is not up to the Council to be asking her to resign her position.
He went on to say that there is a gray area in the Charter and he suggested putting together a charter amendment question to address the issue. There is a strict timeline to follow and the process should be started as soon as possible. In two years, it may be a good idea to have a Charter Commission for a revision. He added that salaries for the Mayor and City Council have been the same since 1974.
Councilor Lafleur moved to send a letter to the Attorney General's office seeking clarification of Councilor Nelson's residency status; Councilor Grenier seconded and the motion carried.
Capital Items in the Sewer Fund
Mr. MacQueen asked that the changes to reduce capital items in the Sewer Fund to a total of $195,000 as proposed in his memo be approved to reflect reality. Councilor Grenier moved to add the item to the agenda; Councilor Lafleur seconded and the motion carried.
Mayor Danderson recessed the work session to hold a public hearing. Following the public hearing, Mayor Danderson resumed the work session.
Other
Mr. MacQueen explained that Mike Caron was here to talk about Union Street which is the sidewalk created by the Route 110 Project in front of Caron Building Center. Mr. Caron reported that it has been difficult for the business to plow and remove snow due to the sidewalk configuration. Pamela Laflamme spoke with the Project Manager at the State and he pointed out that selling Union Street would make the City subject to the costs that have already been expended including the removal of two buildings.
Mr. Caron indicated that he does not want to be breaking the law by pushing snow onto the sidewalk and his intent is to have the street laid out in such a way that he and Munce's can use the area for accumulating snow. Mayor Danderson suggested that perhaps when spring comes, the business could restore the grassy areas to make it aesthetically pleasing. Mr. Caron agreed that this would be a reasonable solution. Councilor Nelson moved to direct the City Planner to work with the State on options that would allow Caron Building Center flexibility to deposit snow on Union Street; Councilor Danderson seconded and the motion carried.
There being no further business, the meeting moved to the Regular Session.
Non-Public Session
Councilor Grenier moved to go into non-public session per RSA 91-A:3 (e) Consideration or negotiation of pending claims or litigation which has been threatened in writing or filed against the body or agency or any subdivision thereof, or against any member thereof because of his or her membership in such body or agency, until the claim or litigation has been fully adjudicated or otherwise settled. Any application filed for tax abatement, pursuant to law, with any body or board shall not constitute a threatened or filed litigation against any body, board, or agency for the purposes of this subparagraph and 91-A:2 (b) Strategy or negotiations with respect to collective bargaining; Councilor Nelson seconded and the motion carried unanimously by roll call vote.
Croteau Property
Mr. MacQueen reported that the City's attorney sent a letter urging the City to proceed with consent stipulations on the Croteau (Rocket Snowmobile property). The City Manager recommended that Council members move ahead as proposed by the City Attorney.
Councilor Nelson so moved; Councilor Grenier seconded and the motion carried unanimously by roll call.
Collective Bargaining
The City Manager updated the Council with regard to OPEIU and Teamsters negotiations.
Councilor Grenier moved to come out of non-public session; Councilor Nelson seconded and the motion carried.
Councilor Grenier mentioned that the Building Committee toured Brown School last Wednesday with the school's principal.
With regard to housing, Councilor Grenier noted that it is time to take a look at sprinkler systems for non-owner occupied buildings in Berlin. Mr. MacQueen stated that the Fire Chief has been working on an ordinance that would require two means of egress or a sprinkler system. The proposed ordinance would allow three years to install. In the discussion that followed, Council members wanted the ordinance introduced with a one year time limit and they would consider amending after discussion takes place.
Councilor Grenier asked if the city could buy some of the dilapidated housing to speed up the process of eliminating some of the blight. Mr. MacQueen noted that there is not much money; however there is nothing stopping an offer from being made and brought to Council.
Council members agreed that a list of tax delinquencies would be made available to the newspaper for publication if they so choose. Taxes are a matter of public information
Mr. MacQueen stated that, as a result of the inspections of March 14 and 15, the Fire Marshall's office has said that there is a need for another fire inspector. Councilor Donovan suggested writing to the Governor stating that we need help funding such a position.
Councilor Nelson moved to adjourn; Councilor Grenier seconded and the motion carried. The meeting ended at 9:00 p.m.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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