Work Session
April 6, 2009
Present were Mayor Bertrand, Councilors Evans, Goudreau, Cayer, McCue, Remillard, Lafleur, Donovan and Poulin. Others present included Andre Caron, Brian Valerino, Blandine Shallow, Bill Andreas, Chris Gamache, District Ranger Katie Stewart, Deputy District Ranger O’dell Tucker, Bev Raymond, media and public
Mayor Bertrand called the meeting to order at 6:43
Forest Service/Trails Bureau - Jericho Mountain Park Land Transaction
District Ranger Katie Stewart, Deputy District Ranger O’dell Tucker and Chris Gamache of the NH Trails Bureau came to the Council to ask for support of a land transaction. The White Mountain National Forest has a small landlocked piece of land within Jericho Park.
Mr. MacQueen noted that this transaction is intended to make the piece of land part of Jericho Mountain State Park and we want that to happen as long as it does not cost us money. Ms. Stewart added that if the swap is made, the State can manage their piece as one contiguous piece and the Forest Service can do the same. The group was looking for a letter of support to the Forest Service from the City for the transaction to occur.
Councilor Lafleur moved to send a letter of support; Councilor Evans seconded and the motion did not pass on a 5/4 vote.
The consensus of the Council was that they would prefer to see the letter prior to approving it. They were in favor of the concept and showed a willingness to send a support letter once they have read it.
Councilor Donovan asked about the bill to allow four wheelers on city streets and whether the bill had the support of the Trails Bureau. Mr. Gamache responded that there were issues in the bill that conflict with existing law and both DOT and Fish & Game were opposed. His office offered to rewrite the legislation. Councilor Cayer noted that there is a potential that the bill could come back. Councilor Donovan established that the Safety Committee would be willing to recommend an ordinance to the full Council to allow four wheelers within the city compact.
Councilor Lafleur asked what the road blocks were that prevented the legislation from passing. Mr. Gamache noted that the bill had State wide impacts; it had been amended so that it was no longer just for Coos County. Mr. Gamache and the Forest Service representatives left the meeting at this time.
City Audit – Bob Vachon
Mr. Vachon reported that there were no issues with this audit. The city received an unqualified opinion on its financial statements for the year ending June 30, 2008. Mr. Vachon reviewed the different funds in the City and noted that they used to look at numbers; now they audit the operations
The City Council uses the budgetary basis of accounting. Governmental revenues were $412,000 more than budgeted. Most communities were surprised by the economy but Berlin’s figures were very close.
In his management letter, Mr. Vachon mentioned that grant fund accounting should be segregated and recorded in its proper fund; yearend adjustments could be reviewed more closely and the City Comptroller should be reviewing transactions for propriety and bring any questions to the city manager
Mr. Vachon explained that his firm will begin the audit two weeks later to give additional time to the Finance Office to prepare. He thanked the staff and stated that they do a lot with a little.
List of Impending Tax Deed Properties
Mr. MacQueen explained that the Tax Collector is bringing these before the Council to ask that two properties involved in bankruptcy and four properties that are believed to have environmental issues not be taken. According to State Law the City has to tax deed properties that have not paid taxes. Under RSA 80:76 the Governing body can vote to not accept the deed due to environmental conditions. Two properties are in bankruptcy and there is a stay in place per the U.S. Bankruptcy Code 362.
Councilor Goudreau moved to remove the following six properties from the impending tax deed list:
Lavoie, Jack R. / Trustee of 653 Western Ave Trust (In bankruptcy)
Perry, Francis W High Street (In bankruptcy)
Pulp of America LLC / C Shubert, Trustee of Bankruptcy Estate Cell House
Pulp of America LLC / C Shubert, Trustee of Bankruptcy Estate Hutchins Street
Pulp of America LLC / C Shubert, Trustee of Bankruptcy Estate Hutchins Street
Pulp of America LLC / C Shubert, Trustee of Bankruptcy Estate Dutil Street
Councilor Lafleur seconded and the motion carried.
Request from BEDCO to Postpone Tax Deeding for 174 Jericho Road
In a letter from Bill Andreas, BEDCO was asking that the impending tax deed on 174 Jericho Road be postponed. BEDCO has a mortgage on the property and the foreclosure auction has not been secured yet.
Councilors asked what burden would be put on BEDCO if the City pursues the tax deed. Mr. Andreas noted that BEDCO is in for the unpaid loan, an appraisal, taxes owed and evicting tenants that have not paid rent. Councilor Remillard concluded that it is part of the risk factor of doing business as a bank or financial institution such as BEDCO.
Councilor McCue reasoned that it is likely that the statute does not allow for delay. It would set a dangerous precedent given the circumstances of the city. Mr. MacQueen agreed saying that the tax deeding process is cumbersome in that the law has the City waiting three years to take a property. Mr. Caron added that in court, the City has been able to say that the law has been followed. If there are instances of inconsistency, it could jeopardize the City’s position in tax cases.
Councilor Donovan moved to take the recommendations of the tax collector and not grant an extension of time to BEDCO for 174 Jericho Road; Councilor Lafleur seconded and the motion carried.
7:30 Public Hearings
There were no comments on any of the 7 public hearings.
Andre Caron read statement into the record regarding the Neighborhood Stabilization Grant
Fuel Oil Bid Process
Mr. MacQueen reviewed the City’s practice of bidding heating oil with the Town of Gorham and other local communities. This year, the City joined Our Town Energy Alliance and they are advising that it is a good time to lock in a price for next year.
Last week the prices were $1.86 for the tanker delivery and $1.93 for pedal truck. These prices fluctuate and the companies will only hold them for less than 24 hours. One way to get these prices is for the Council to waive the bidding process and authorize the City Manager to enter into a contract tomorrow morning. The other option would be to go out to bid.
At this time Munces and CN Brown have offered prices. Munce’s would require payment up front at $2.1375 for the pedal truck and $1.9566 for the tank truck; and CN Brown would lock in the price at $2.049 for pedal truck and $1.939 for tanker and the City would be on a “pay as you go” program. It was the Manager’s recommendation that the Council waive the bid process and authorize him to enter into a contract for #2 oil and to work with Munce’s for diesel. The pricing in the past week would be saving hundreds of thousands over the price we had last year.
Councilor members questioned whether the City should consider not going with the lower price to keep the business local. There were also concerns that this was moving quickly. Councilor Donovan asked if there could be an opportunity to purchase fuel for 24 months.
Councilor Goudreau moved to waive the bid process to obtain these prices; Councilor Donovan seconded and the motion carried with Councilor Poulin and Cayer voting against.
Other
Councilor Goudreau indicated that he was not clear on all the information in the memo from the school board. He expressed concern that the School Board has to issue pink slips prior to April 15 and the Council has not made a decision on the issue. Councilor Donovan said that the Council has to pass the budget as a whole and it would not be fair for the schools to have a number and none of the other departments knowing their budget.
Councilors agreed to ask that the School Board be invited to the April 13 meeting to further discuss the School budget.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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