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City Council Minutes 10/26/2009 Work Session
Work Session
Monday, October 26, 2009

Members present:  Mayor Bertrand, Councilors McCue, Landry, Remillard, Evans, Lafleur, Cayer and Poulin; absent was Councilor Goudreau

Others present: several members of Mrs. Watson’s Civics Class, Martha Laflamme, Corinne Cascadden, Marion Huntley, Mel Liston, Bill Gabler, Paul Bousquet, Nicole Plourde, Barry Kelley, media and public

School Regionalization
Mayor Bertrand noted that he found the information on the different types of school districts helpful to understanding the complications and benefits that may come from regionalization.  He added that there has been enough interest in the potential for regionalization to see if cost savings could be achieved.

Ms. Cascadden commented that she and Superintendent Bousquet have coordinated several times through the years and they plan to do more in the future.  There are Gorham students who take advantage of Berlin programs and Berlin students who go to Gorham for particular programs.  Sport teams travel together when possible; the Outing Clubs of both schools have had joint outings.  Mr. Bousquet added that the calendars for all schools will be the same to facilitate more cooperation with students and staff in-service days.

Ms. Cascadden explained that the SAU’s will continue to share services; however there is a need to know whether there is support for regionalization which is a formal process that all communities would have to buy into.  

Councilor McCue summarized the biggest questions as, who will pay and who will be in charge?  

Councilor Evans commented that he is in favor of moving forward because he could see cost savings through costs that would compact.  He questioned how regionalization would affect outside funding from federal agencies.  Ms. Cascadden theorized that it would likely affect adequacy.  Mr. Bousquet stressed that all these questions need to be answered so that all parties know the answers going in.  

Mayor Bertrand noted that costs will be greatly dependent on the framework of the proposal.  He added that the strength of the school system and quality of the schools are taken into consideration when people make decisions about coming to Berlin.   

Councilor Lafleur stated that it becomes a question of how to best serve the young people of the communities.  Neither community wants to lose its identity.

Mr. MacQueen complimented Mr. Bousquet and Ms. Cascadden for once again, considering regionalization.  He referred to one of the comments Sarah Brown, Administrator DOE, made saying that she would not count on saving money with regionalization.  Its purpose is to offer additional programs for students.  Berlin has low property values and a formula for paying for education is usually based on property values and number of students attending.   What would the formula be?  Would Berlin be on the same scale as other communities with higher property values?  These are some of the issues that become the problem that has to be dealt with.  

Mayor Bertrand recognized the greater degree of cooperation and sharing of services that is already happening.  He recommended tabling the issue until there is more information.  There are different permeations of what can take place resulting in better education at the best cost possible.

Councilor Lafleur asked how regionalization would affect students.  Mr. Bousquet reported that it would benefit the students with the schools being able to offer more.  For the schools to offer programs, classrooms have to be full.  Ms. Cascadden added that if we are looking at a larger circle to include Berlin and Gorham, we gain the best of both so that all students have the same opportunities.

Councilor Remillard strongly recommended moving forward stating that it is to the student’s benefit.  Councilor Poulin commented that it is great to see the two SAU’s working together.  We could be saving money and adding resources by not trying to replace either school but use them together.  School Board members and Superintendents Bousquet and Cascadden left the meeting at this time.

Clean Power Questions, Barry Kelley
Mayor Bertrand called on Barry Kelly who was afforded time on the agenda to ask questions regarding the Council’s position with Clean Power, LLC.  He asked if the City’s legal counsel Jonathan Peress was with the same law firm that represented Clean Power on an air permit application.    Mayor Bertrand responded that the law firm was hired to help the City with the EFSEC process should Laidlaw file in the near future.  Mr. MacQueen added that Attorney Peress declared that he had represented Clean Power for a time and no longer represents them.  

Mr. Kelly asked about the Council’s petition to intervene and questioned the meaning of “the docket”.  Mayor Bertrand explained that Clean Power has filed a complaint against PSNH to the Public Utilities Commission claiming that PSNH has failed to negotiate a power purchase agreement with Clean Power.  The PUC determined that the complaint had merit to be heard and they have set a process to hear the complaint.   

Mr. Kelly commented that PSNH is one of the biggest taxpayers in the City and supporters of the community.  He reasoned that the City may not want act to aggravate its largest taxpayer.   Mayor Bertrand responded that the City‘s actions are not meant to aggravate anyone.  PSNH’s charge is to provide the least cost power possible.   Clean Power deserves an answer as to why PSNH won’t negotiate.  To date, they have only said they are not obligated.

Mr. Kelly confirmed that there are no legal costs involved with the City filing as an Intervener.   Councilor McCue made the point that though PSNH pays high taxes, Berlin’s citizens are rate payers and they pay a lot of money in electric bills to PSNH.  He stated that we can’t turn a blind eye to PSNH if they are not operating in the best interest of the citizens.  

Councilor Landry expressed that the City is filing as an intervener in support of a company that is ready to develop in Berlin.  Clean Power is ready to go and ready to give jobs.  PSNH is holding them up.  We need jobs and tax base and we need to support Clean Power.  Berlin needs to do what is best for Berlin.  

Mr. Kelley asked why the Council is not saying the same for Laidlaw.  Councilor Landry replied that has never come out against Laidlaw but Clean Power is ready to move forward now.    

Clean Power Algae Memo Draft
Mayor Bertrand distributed a memorandum of understanding asking City to work together with Clean Power, Simply Green LLC, the University of NH, and Baetel Corporation to research a commercial algae facility in Berlin.  Mr. Liston explained that there is a process being researched to grow algae that would ultimately be turned into bio-fuel.  Its residue would then be used as nutrients for animals.  Such a company could increase Berlin’s tax base, create jobs, and create value in the sewage treatment plant that is not there now

Councilor Evans understood that the company would be developing algae into a usable product.  The algae are coming from the City’s leachate at the treatment plant.  The waste product will then become marketable.  Mr. Liston added that it takes warm water, co2, grow lights and different algae would need to be introduced.  Carbon in the stack is used to grow the algae and the process is called carbon sequestration.  He added that this would create more jobs, more tax base, and be more environmentally sound.

Councilor McCue confirmed that the company would still go through the planning/zoning process.  Mr. Liston added that this may change all the air permits.  Mr. Gabler informed the Council that this is a multi-million dollar project and the company wants assurances that the City will not deny use of the effluent at the treatment plant.  Mr. Liston added that they want to do the research; this is too good and too important to fail.  If this is done in Berlin it will be the first and one of a kind in the country.  

Councilor Landry stated that he is leery to sign anything until there is more information.  Councilor Evans asked the City Manager if there are ramifications to signing the memorandum of understanding.  Mr. MacQueen replied that it is an informal agreement that all parties are willing to research adding the algae growing component to the biomass plant.  The city attorney may add language to the MOU that would state signing is not committing the city to anything.  

Councilor Cayer clarified that effluent from the treatment plant will be used for cooling as well as for algae growth.   He commented that the project is shovel ready and ready to break ground.  He questioned what is holding it back?  In response, Mr. Liston indicated that Clean Power needs a customer to sell power to.  PSNH could make it happen sooner rather than later; it could be next month if there were a power purchase agreement.

Councilor McCue reasoned that if the City were to enter into this MOU, the new city logo should be used on the document.  Councilor Remillard asked if the algae plant would be constructed at the same time as the biomass plant and Mr. Liston noted that it would be a separate project, likely five years out.

Councilor Landry asked what part UNH is playing in the partnership.  Mr. Liston noted that UNH and Simply Green have a grant application in to do research and get technologies together.  

Mayor Bertrand suggested and the Council conceded that the Council will further review the memorandum of understanding and get back to the City Manager by Noon Wednesday with any concerns.  The City Attorney will be asked to review the MOU as well.  Next Monday night, the Council would be ready to make a decision on whether to sign.  

Mr. Liston asked that he be copied on proposed modifications.

Intervener Petition to the PUC
Mayor Bertrand gave details of the order of notice that was issued by the Public Utilities Commission, docket number DE09-067  http://www.puc.nh.gov/Regulatory/Docketbk/2009/09-067.htm .  It sets a date for a hearing and allows for any party to intervene on or before October 28. 2009.  

Mr. MacQueen distributed a petition to be sent to the PUC which attempts to explain why the city is interested in being an intervening party.  Councilor Remillard affirmed that full intervener status will not put the City in a position to use legal counsel.  

Mayor Bertrand explained that the City plans to file as an intervener, on behalf of the citizens of Berlin when Laidlaw goes through the EFSEC process to see that the proper action takes place.  Laidlaw has yet to file with EFSEC.   Petitioning to be an intervener in the Clean Power case allows a voice in the process and affords the opportunity to get more involved.  If the date goes by, we lose the opportunity.  

Councilor McCue agreed that the City is asking for an opportunity to participate in the process.  This is not an adversarial position. The PUC will do fact-finding and in the course of process, the City needs to have an opportunity to be heard if necessary.  

Councilor Cayer summarized by saying that the Council is looking out for the best interest of the people in the community and he is hoping the PUC takes Clean Power’s allegations seriously and holds PSNH accountable.  
Councilor McCue moved to authorize the City Manager to sign the petition to intervene in the case of Docket #DE 09-067 Clean Power Development, LLC, Complaint Against Public Service of New Hampshire; Councilor Poulin seconded and the motion carried with all voting in favor

Other
Following up on a call he received from a citizen who expressed frustration at the City stopping the wood pellet plant from coming to Berlin, Councilor McCue spoke with Jim Wagner.   Mr. Wagner indicated that the city has been helpful with permitting and the company’s difficulties are with equity financing, not with anything the City did.

Councilor McCue encouraged people to get out and vote.  

Councilor McCue moved to adjourn; Councilor Cayer seconded and the motion carried.  The meeting ended at 8:40 pm.

Respectfully Submitted,

Susan Tremblay
Administrative Assistant