Work Session
March 1, 2010
Present were: Mayor Grenier, Councilors Landry, Remillard, Danderson, McCue, Evans, Rozek, Poulin; Councilor Cayer was absent.
Others presents included: Andre Caron, Corinne Cascadden, Jon Edwards, Robert Pelchat, Sue Warren, Angela Martin Giroux, Marion Huntley, Patrick MacQueen, media and public
Assessing Services
Jon Edwards voiced the opinion of the Board of Assessors by saying that the current assessing firm, Avitar, has done an exceptional job for the City. Avitar is not the cheapest but there is a concern that if we go with the cheaper quote, we will run into similar issues as in the past with having to defend appeals. Mayor Grenier asked if any appeals have made it to the Board of Tax and Land Appeals (BTLA). Mr. Edwards noted that cases have been dropped before reaching the BTLA and abatements have been rectified before court. He added that though the price seems substantial, Avitar has been associated with the City of Berlin for a long time.
Councilor Danderson remembered that 30% of the people came in with contentions on their assessment at the last revaluation. He asked what Avitar will do to improve their record. Mr. Edwards defended the company saying that they were trying to justify the highest prices possible and had to justify retail value. Using square footage and the value of competing properties, they justified the price. It created issues particularly with large homes that had never seen prices in that high a range.
Mr. Edwards explained that the City is at 121% value; however that figure is unconfirmed. Residential values are down by 20% but it is likely that commercial properties will go up creating a balance. He voiced that the City should stay with current assessing firm because they have the sales data that they’ve accumulated for a long time.
Councilor Rozek commented that in his experience, the accuracy of Avitar has been poor. In the case of his own property, Avitar was not able to support their figures and had to readjust after the Rozek’s hired an appraiser to counter the assessing firm’s number. He felt that the company did not have a lot of assessing experience but they did have comfortable, easy to use software. There could be something out there that would work better.
Councilor Landry confirmed that the lowest price firm was Brett Purvis and Associates who were apparently offering the same service. He questioned what experience the firm has. Mr. Edwards cautioned that we would be taking a chance by using another firm quoting so much less. It would not be worth it to end up in lawsuits.
Councilor McCue confirmed that the low price was $269,700 and he asked if we know anything about the other firms. He affirmed that the recommendation of the Board is based on having worked with Avitar for ten years. Mr. MacQueen established that this was a request for proposals and it is legitimate not to accept the low price. He suggested that board negotiate and come back with a proposed contract for the Council to review.
Mayor Grenier relayed that he was on the Council when Sabre Systems was hired and the City was forced to do a second revaluation at a cost of $400,000. He confirmed that 20% of the city is verified yearly. Ms. Warren noted that the information gathered does update values but does not change the base rate; only a full update will change the base. Councilor Remillard stated that she has worked with Avitar and finds they do a good job; however she wants to know that the City has checked all the companies that applied.
Councilor Danderson agreed that familiarity is a good thing but the first price should never be accepted. Avitar has the software in place and the price should reflect that. The item will be removed from the agenda and postponed for two weeks.
Value Engineering
Mr. MacQueen distributed copies of the value engineering request for quotations that went out to qualified firms February 22, 2010 with a response date by March 11, 2010. Value engineering is a process used on big contracts, those over $10 million, and it is a requirement of Rural Development as well as the Department of Environmental Services.
Mr. MacQueen went on to say that though there has been some discussion as to what extent value engineering needs to be done, it is a requirement of the funding agency and we need to go through it. The process ensures that the Federal government is getting its money’s worth whereby another engineering firm is hired to second guess what the first engineer submitted in his plans. The value engineering firm asks questions and offers alternatives that may add value to the project. There is a cost of $40,000 to $50,000; however if we get the funding, it will likely be multi-million and would pay for itself.
Mayor Grenier described his experience with the process as a board member of the AVRRDD and said that the value engineer came up with a different conclusion than the original engineer on a waste water treatment plant. Mr. MacQueen established that if the City does not get the funding, we will likely not proceed with this process. Once proposals come in, there will be a review by staff and a recommendation would come to the Council for a final approval. Mayor Grenier suggested that Roland Viens be asked to take part in the staff review. To Councilor Remillard’s question regarding when a decision on funding could be expected, Mr. MacQueen stated that the application is in Washington and we should hear any time
School Grants
Mayor Grenier explained that this is a reconciliation of federal funds to the actual amount of grant funds received by the school. Compounding the difference is that the Federal and the City’s fiscal years are not the same.
Councilor Danderson said that he heard from a speaker at the Chamber of Commerce dinner that Berlin would be getting additional Title I and IDEA grant funding. Ms. Huntley noted that the funds will come over multiple years and they are accounted for in the reconciliation.
Councilor McCue commented that we are adding $257,830 to the budget with these grants. He noted that there are some that have not come in or come in at less than anticipated. He questioned how this affects the budget. Ms. Huntley stated that for every grant there are revenues and expenditures budgeted; if there are no revenues, then the schools do not expend the money. It has no impact on tax rate. If we don’t get the grant; we don’t do the program.
Councilor Danderson stated that there has been a 15% decrease in students and a 7% increase in the school budget per year. He would like to evaluate staffing and be sure we get what we pay for. He wants successful schools but money needs to be spent wisely. Ms. Huntley responded that they consider the schools as a business and where accommodations can be made, they are. There have been changes in curriculum to meet the needs of the students and to meet budget limitations.
ARRA Funding for Notre Dame
Mr. Caron reported that this grant will go toward funding lead remediation for Notre Dame. The City originally received $200,000 for asbestos and lead remediation; however more than that was spent for asbestos only. We are now left with lead and we have worked with DES to find other funds. DES has moved us up the chain for funding because there is a buyer and an alternative use for the building. The Division of Historical Resources wants to save the woodwork inside the building as well as the window frames. This project is on time and shovel ready and therefore eligible for ARRA funding.
Councilor McCue wanted to be sure the City will be made whole and that we are not going out of pocket to pay for these remediations. Mr. Caron noted that in previous year’s capital budgets, match money was put aside for the Brownfield and DES grants.
Mr. Caron indicated that he hopes to be out to bid in May for the lead project. He added that the NH Housing Finance Authority is selling tax credits and the estimated budget for the Notre Dame project is about $6 million. In response to Councilor Evans, Mr. Caron explained that tax credits are issued when a bank or large company that pays capital gains taxes to the State of NH takes a tax deduction from the credits issued.
Councilor Evans moved to strike #8 from the agenda for this evening; Councilor McCue seconded and the motion carried.
Respectfully Submitted
Susan Tremblay
Administrative Assistant
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