Work Session
March 9, 2009
Present were Mayor Bertrand, Councilors Donovan, McCue, Remillard, Goudreau, Lafleur, Cayer and Poulin; Councilor Evans was absent.
Others present included: Commissioner of DRED George Bald, Director Roy Duddy, Beano Lamontagne, Regional Economic Development Director Max Makaitis, Jim Wagner, Pamela Laflamme, Ralph Collins, Nicole Plourde, Mitch Couture, Martha Laflamme, Marion Huntley, Brian Leclerc, Jon Edwards, Chris Dubey, Jonathan Dubey, Beverly Dupont, Corinne Cascadden, Gary Bisson, media and public
Mayor Bertrand opened the meeting at 6:30 p.m. introducing the group from DRED.
Councilor Donovan questioned Regional Economic Development Director Max Makaitis regarding his mission, who he works for and who pays his salary. It was determined that he was hired through a grant that is administered by the Northern Community Investment Corporation. He is charged with regional economic development for the eight communities in Coos County. At this time he answers to AVER. Councilor Donovan invited him back to meet with the Council.
State Department of Resources and Economic Development (DRED)
Commissioner Bald stated that he appreciates the opportunity to come and speak to the Council. He said that he has been involved in economic development for most of his career on the local, regional and State level. A headline in the Berlin Daily Sun that stated the city feels shortchanged by the state prompted the visit.
Commissioner Bald explained several efforts that the State has taken on to benefit the North Country including the Department of Travel and Tourism's work with the Roger Brooks effort. The Parks & Recreation Department has made an effort at Milan Hill State Park and with Jericho Park trail building. There is a long term plan and every year there will be more to offer at Jericho.
With regard to economic development, Commissioner Bald noted that DRED works on recruitment and works with businesses that are in the community making sure they avail themselves of the opportunities that the State has. Companies are brought around and they won't necessarily be seen because absolute confidentiality is often essential.
DRED has worked with procurement technical assistance that helps companies who want to do work with the federal government. Marketing & Communications works with travel and economic development to promote tourism to the area.
Commissioner Bald went on to say that there is a sense of frustration on the economy; however this is not a time when we can do anything less. The best way to attract new business is to have a positive attitude about the community. Often if a company is looking at a location they will subscribe to the local paper to gauge the sentiment in the community.
The Commissioner stressed the need for land and buildings to entice a company to come to the area. There are fewer companies that want to build a building; most want to move into an existing building. A lot of people start their business in tough economic times. The City should be looking for someone who likes to recreate in the North Country and may be attracted to the area by the quality of life.
Mayor Bertrand acknowledged that the Council has heard from BIDPA that they need to procure land and come up with a spec building. There may be 60 acres available and if Laidlaw does not come to fruition, it would be 120 acres in center of city. Mayor Bertrand asked if any stimulus money will be directed towards DRED and Commissioner Bald responded that there will be funds for broadband and wireless in the North Country as well as efficiencies with energy. These will be competitive and come through the appropriate State department.
Councilor McCue commented that he appreciates the idea of confidentiality and the difficulty comes when there is not good communication and the Council feeling like they are deliberately left out of the process. He agreed that Berlin should lead with a positive attitude; however we don't want to appear like a desperate community that will take anything.
Commissioner Bald established that communities tell the State what they want and what they don't want. The local economic development person is informed and it is up to that person to keep the Council apprised.
Councilor Donovan stated that in the case of Laidlaw, he cannot be convinced that it just happened. He hoped that this Council expands economic development to hire a coordinator full time.
Commissioner Bald maintained that the State did not play a role in the Laidlaw transaction with the exception of giving a contact name at Fraser. The State would not force a business in or out of a community.
The Commissioner stressed the need for the City to have someone working full time on economic development. Once a company is interested, the economic development person has to make sure they get all the information needed.
Councilor Lafleur commented that the City has a great work force. The infrastructure needs improvement and the Conway bypass would be a step in the right direction. The North Country can't get raw material in and finished product out without the infrastructure improvements
Councilor Goudreau voiced the feeling that everyone decides what is best for us. There is a need to have someone who is dedicated to economic development full time. He also suggested a forum for local business to get together and throw out ideas.
The Commissioner noted that Jericho Park is the biggest project the Trails Bureau has ever done. As important to a community as water and sewer are patience and attitude. The community didn't get into trouble in five years and it will take longer than five years to get out. The State does not have the recourses to make Jericho Park happen overnight.
Commissioner Bald stated that there is not a more important time to be positive. Citizens are looking to the Council to make a difference, be positive and move forward. Councilor Goudreau surmised that he is not sure the State or Governor is aware of the dire situation here. Commissioner Bald responded that without exaggeration, the Governor asks more about this area than any other in the State. He knows the issues here and saying that he doesn't would shortchange him. .
Councilor Cayer commented that the City has spent 100 years of its history being a work force and that is now gone. We have yet to identify what we want to become. Trails are something we can do with little investment but big returns, whereas land and building space are not easy to come by with meager resources. He went on to say that we are New England's playground and our asset is where we live. We have to focus on that and sell that lifestyle.
Councilor Remillard established that as a realtor she has to sell the area and convince people to come to the city. She questioned what DRED has done for the Bass building and Steel Elements. Commissioner Bald explained that his department has organized a bus tour that stopped at the Bass facility. The building has a severe disadvantage because of its ceiling height. They have also worked closely with Steel Elements.
Max Makaitis addressed the City Council apologizing for not coming sooner. He noted that 90% of the work he's done since arriving has been in Berlin. He is looking forward to working with each of the Councilors.
Roy Duddy indicated that there are a lot of federal tax dollars to fund green; telecommunications; and billions going into weatherization. There will be training for people to do audits in energy efficiency. He voiced his willingness to work with the city encouraging any new ideas or concepts.
Mayor Bertrand closed the discussion by saying that this Council is committed to finding a new path forward and trying to be forward thinking. They want to diversify the economy and partner with State. DRED representatives left the meeting at this time.
Berlin Ambulance
Mr. MacQueen reported that BEMS was contacted to see if there was anything they could do to hold down ambulance subsidy costs. Most payments are made by Medicare, Medicaid or private insurance. The ambulance company does not get the full reimbursement allowed by Medicare unless their rates are at the Medicare level. Chris Dubey explained that the BEMS financial system works on what Medicaid, Medicare are willing to pay. Raising the rates will allow the company to capture the full rates allowable.
By raising their rates, BEMS can forego a total of $12,000 on their contract in the next fiscal year. Mayor Bertrand confirmed that the Council has to approve rate increases.
Councilor Cayer asked for information on the improvement of ambulance services and Mr. Dubey stated that there is now full time paramedic coverage in the city. Mr. MacQueen proposed that if the rates went into effect immediately, the City may be able to realize more savings. Mayor Bertrand suggested that the rates be adjusted as of April 1 so that the public can be informed.
Councilor Donovan moved to accept the rates presented by BEMS and have them become effective April 1, for a fifteen month period; Councilor Poulin seconded and the motion carried. Mayor Bertrand clarified that the implementation of the new rates will result in a monthly City subsidy payment of $19,500 for 15 months, until July 1, 2010.
Mr. Dubey noted that if revenues were to increase dramatically, BEMS could come forward with an alternative payment schedule where the city pays less. He added that in July of 2010, the subsidy would be at $20,500 per month as indicated in the contract.
Sewer Rate
Mr. MacQueen explained that staff is recommending a sewer rate increase from $7.01 to $7.99 per 100 cubic feet of consumption. The Sewer Department has started paying debt service for a rural development loan that was used for treatment plant upgrades. An increase of 14% to 7.99 is being proposed. No decision was rendered at this time; the item will be brought up again at the next meeting.
BWW Request to Apply for RDA Loan/Grant
Mr. MacQueen reported that the Water Works wants to apply for an RDA grant/loan for federal assistance get $3 million in loan and $1 million in grant funds for water line improvements. The application states that the duly authorized signatory will have the authorization of the Council to sign.
Mayor Bertrand outlined the Water Works' financial situation. The Water Works has been doing forced account work which is putting in water lines using their own forces and charging it out as a contract. It is important to their viability to apply for funding. Councilor McCue expressed concern that the Water Works may be forced to refinance debt. Councilor Donovan made the point that if the Water Works doesn't make their bond payments, the city has to pay.
Councilor Donovan moved to authorize the City Manager to execute the grant application for Berlin Water Works to complete its application to the USDA RDA Grant Fund; Councilor Poulin seconded and the motion carried.
Board of Education
Mitch Couture proposed capital improvements at the same amount as last year using $160,000 for two buses; painting the Jr. High Auditorium for $25,000; paving a high school parking lot at $35,000; and $24,998 for window replacement. A boiler survey for the three remaining buildings is due in the next three weeks and the Board anticipates issues. Schools have spent $10,000 on boiler repairs in the system and the Board may want to bond to replace boilers, re-point brick and address old windows.
Councilor Donovan asked if increasing the distance to reduce the number of children bused has been considered and Mr. Couture replied that it has not. Councilor Donovan asked if janitors can paint the auditorium during the summer. Mr. Couture said that they could; however something else would suffer. Councilor Donovan asked if there is flexibility on the two buses in favor of heating improvements and Mr. Couture stated that the Board is recommending the new buses and there would be some savings with better gas mileage and less repair costs. Buses to be replaced are 93 and 97 (refers to their bus number and year). That would leave a 99 bus in the fleet.
Mayor Bertrand asked what the plans are for janitorial staff at Bartlett. In response Mr. Couture indicated that they are not anticipating replacing a retiree from the High School. Mayor Bertrand advised the Board that in the review of boiler needs there should be some consideration given to local biomass as well as stimulus money for green energy and duel fuel possibilities.
Councilor McCue asked for clarification on the "480" capital improvements which are different than those presented by the schools. Mr. MacQueen established that the City goes through an extensive capital program process that the schools participate in and then a different set of CIP requests was received for the budget.
Councilor Lafleur confirmed that the maintenance on boilers is not part of the Honeywell contract. They were hired to do work on air exchange at the Jr. High.
Councilor Goudreau referred to the declining student population and asked why not close Brown School as well. Mr. Couture agreed that the student population is declining; however the City is not in a position to have only two schools yet. A combined school with Gorham was reviewed by a Committee and Gorham is not interested due to the Council having complete control over the schools. Councilor Donovan said that the Charter could be changed but the Council has never been asked. Mr. Couture noted that the reception from Gorham was that they were not interested at this time.
Councilor Goudreau asked if consolidation of School Administrative Units (SAU's) has been considered. Mr. Couture reasoned that the Board would lose control over the superintendent if the SAU's were combined.
Councilor Goudreau asked what is new to the budget to account for the additional $600,000. It was determined that the increase reflects union contract wage and benefit increases.
Councilor McCue pointed out that the direction from the Council was a 7.5% decrease in the budget from all departments. Mr. Couture stated that because the schools are 92-94% employees, cutting 7.5% would have been an ugly situation. Councilor McCue asked what it would take to get to level funding Mr. Mr. Couture responded that it is more difficult for them because their budget is all people. It was determined that final decisions on staffing need to be made prior to April 15 and the Board is opposed to sending out pink slips to all staff saying that it is a detriment to moral.
Councilor Remillard questioned an increase to technical services and Ms. Huntley noted that the After School Program is funded in that line item. The program was administered through a grant; however funding is no longer available.
Communication from SAU 20.
Mr. Couture reported that this communication should have gone to the Board of Education and the Board will review it at their next meeting.
Option for State Budget Revenue Items
Councilor McCue informed the Council that he is attending a meeting Wednesday where some of the options for State revenue will be discussed.
Council members advised the following: Support for an increase of Rooms & Meals Tax if it is shared with municipalities; oppose the Legacy and Successions Tax; support the NHMA Retirement positions; support gambling; support regionalization; do not support an increase in vehicle registration permit fees; support NHMA's opposition to the suspension of any revenue sharing and rooms tax distribution to municipalities; oppose using Federal Stimulus to shore up the State budget.
Non-Meeting
Councilor Donovan moved to go into non-meeting per RSA 91-A:2 (c) Consultation with legal counsel; Councilor Poulin seconded and the motion carried unanimously by roll call.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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