Work Session
March 12, 2012
Present were: Mayor Grenier, Councilors Otis, Remillard, Ducharme, Morgan-Allain, Higbee, Rozek, Nelson, and Théberge
Others present included: Eric Kaminsky, Mike Perreault, Patty Chase, Corinne Cascadden, Bryan Lamirande, Nicole Plourde, Dan Record, Karin Dorval, Louise Valliere, Mr. & Mrs. Benski, media, and public
Mayor Grenier called the meeting to order at 6:30 pm
Airport Project Discussion
Mayor Grenier reported that the Berlin Airport Authority has the opportunity to receive grant funds from the Federal Aviation Administration (FAA) to replace the Jet A tank, upgrade the rotating beacon and replace the wind sock. Mr. Kaminsky explained that we only found out this past Friday that funding would be available for this project. The FAA pays on a reimbursement basis for all but 7% of the project. This grant is not to exceed $300,000; the BAA’s match would be $22,500. Councilor Higbee entered the meeting at this time.
Mayor Grenier noted that both the expenditure and revenue will need to be added to the budget since we did not have the information when the budget was put together. To add this item to the budget, a 2/3 majority is needed.
Councilor Ducharme asked if the match will come from the airport budget and Mr. Kaminsky stated that it is not included in budget at this time. Mayor Grenier said that these grants typically take 18 months to close out and the airport can budget for the match in two fiscal years. Councilor Remillard asked if we are required to change the tank and Mr. Kaminsky indicated that when the tank reaches 20 years old, there are several expensive maintenance issues that will need to be addressed. This tank is 17 years old. The money we will be spending will be on a new piece of equipment rather than on the old tank.
Councilor Rozek made the point that fuel sales make up most of the revenue for the airport. If we were to lose use of the tank it could mean losing 90% of the airport’s income. Councilor Théberge asked if the tank will be one with a larger capacity and he was informed that it will go from 10,000 to 12,000 gallons. We will sell the used tank.
With regard to the beacon, Mr. Kaminsky established that the plan is to have the existing beacon rebuilt and the windsock will be replaced. The airport’s portion to pay is 7.5 % of $300,000 or $22,500 and $277,500 will be grant money. The $22,500 can be budgeted over two years.
Councilor Rozek moved to add 22,500 over two years to the airport budget to cover the match for $277,500 of grant funds from the FAA; Councilor Remillard seconded and the motion carried unanimously thereby achieving the 2/3 majority needed to add the item to the budget.
School Budget - Board of Education
School Board Chair Nicole Plourde, Corinne Cascadden and Bryan Lamirande presented the school budget to the Council. Ms. Plourde explained that enrollment figures show that an increase in students is expected. Class size numbers in the middle school are high without including any numbers for increases from the federal prison. Grades are broken out as follows: Elementary is k-2; grades 3-5 are upper elementary; Grades 6-8 are middle school and Grades 9-12 high school.
Ms. Plourde established that the School Board increased the request over this year's budget by $879,076 for a $17.9 million budget, anticipating enrollment increases from the federal prison. They have worked hard to cut costs by developing an 8 step pay plan for administration thereby reducing the top of the pay scale. Three administrators are above the capped wage scale and they will not get a percentage increase. Cost reductions have been made in maintenance saving money by doing work in-house at a savings to school and city. Schools now have a minivan they use to transport students.
Mr. Lamirande explained that the changes made in maintenance include the procedure for building checks which are now done at a scheduled time in a city vehicle and the custodian doing the check is assigned duties to complete. The overtime went from $11,300 to $4,967.
Ms. Plourde went on to say that if there were to be ten additional students in each grade, the Jr. High would have more students than allowed by law. The budget proposal adds five new teachers to bridge the gap. Tuition rates for 124 students are different for each school and are determined by a formula.
The budget proposal has a breakdown of the tax rate and amounts spent on school and non-school as well as comparisons with other communities and what they spend on education. The school's request for travel and out of district placement is down by 13.2% and that is with the same number of students that have special needs. There is no capital in the request; however there is still a need to replace 2 school buses.
There would be no more grant money this year for the JAG program and it has been found to be a useful service to students with substance abuse and mental health issues. The Board chose to increase legal fees by $2,000 based on having spent $18,000 last year, mostly on union battles. The energy management is Honeywell and strides have been made to reduce the cost of the contract. The major increase in supplies is the increase in the cost of oil. It is expected that Federal programs will have the same funding.
The rationale for adding 5 teachers is that the Federal prison will be adding 332 new employees; 40% of those will be transfers who are expected to be in place by mid May. There are 9 employees that are here already and they bring in 19 students. Berlin High is the 2nd longest accredited high school in the state.
Mr. Lamirande commented that the estimated revenues are not going up; building aid is down and if grants don’t come through, the schools still have to run. The NH Code of Rules for Education and minimum staff requirements were included for the Council's review. The schools are at risk because of class size.
Councilor Rozek clarified that accreditation and school approval are two different processes for all grades.
Councilor Ducharme was interested in seeing the Federal programs and the budget breakdown for those expenses. Mr. Lamirande stated that the school does not run on grants; they are anticipated every year but not part of the general fund. The schools can never expend more than they take in or spend more than what is approved by the city. Councilor Ducharme asked about the food services budget and Mr. Lamirande indicated that it is a self funded program and funding gets carried into the next year with no more than 4 months of revenue ahead. Revenues for food services have exceeded expenditures in the past; however last year funding from surplus covered the costs.
Councilor Ducharme asked where the money came from for the additional legal fees and Mr. Lamirande said that the additional $8,000 had to come from other items. Ms. Cascaden commented that technology advances are not included in this budget and there will be testing of students on technology soon.
Councilor Remillard asked about the maintenance and repair contract with Honeywell and the proposal to discontinue with them. Mr. Lamirande stated that the contract is cut by half from $100,000 to $50,000. Ms. Cascadden commented that the schools had a library specialist split position between Brown School and BHS and thought it worked well; however accreditation says there needs to be one for each school. Councilor Remillard asked how the addition of five teachers would affect classroom sizes and the Superintendent said the classes would go from over 30 to 22 or 23 per class in 7 and 8th grade. The additional teachers would be in English, math, social studies and science; with the 5th position being a special ed case manager.
Councilor Higbee asked if we would be committed to five teachers even if the additional students don't come. Ms. Cascadden indicated that Senator Shaheen's office gave their best guess of 120 to 180 employees who would be living within a 30 mile radius. She said the schools would not hire without need.
Ms. Plourde acknowledged that the schools have been working to keep minimum standards and as things get better in the City, the optimum standards could be the goal. Councilor Ducharme agreed that as a parent minimum standards are a concern. Ms. Plourde expressed concern about losing the ability to offer specialty courses at the high school.
Councilor Rozek questioned block scheduling asking if it is a good use of time when out of a 7 hour teacher workday, 90 minutes is for planning per day. Ms. Plourde responded that block scheduling offers more classes for students and more opportunity. Mayor Grenier commented that the Building Utilization Study Committee he was on some years ago found that block scheduling was the cause of underutilizing buildings and staff. Music which is an integral part of education because it teaches discipline, took a hit with block scheduling. It begs the question, are we maximizing the use of facilities and personnel.
With regard to the tax rate history in the school budget, Mayor Grenier noted that the city pays the school's debt service and if that were factored in, the numbers would change. There were 284 employees at the school last year and 256 this year.
Councilor Remillard asked for the positions organizational chart and the proposed change from this year to next year.
Mayor Grenier thanked the administrators and School Board and they left the meeting at this time.
Discussion re: Contract for Trash Pick Up
Mayor Grenier reported that it may be time to revisit a request for proposals for municipal refuse collection. Mr. MacQueen stated that he had started a draft in 2009 and this is not a final document but it gives an idea of the approach. We would want to include recycling in the bid. He recommended that the city put out a bid so that we can put out a specific scope of work. There will be questions such as how will we plow snow if the work force drops. Do we contract out snow removal or use part time employees in the winter? We would reserve the right to reject all bids. Contractors would have to spend considerable time to prepare such a bid and it would have to be done seriously if Council wants to proceed.
Councilor Higbee commented that there must be precedent for this in other communities; he asked if there are savings. Mr. MacQueen informed the Council that in the first and second year there would be savings but in subsequent years it could be costly. Much depends on the number of bids received and if there is just one, it would cause great concern. Mayor Grenier suggested quoting for a ten year request. It is frustrating that $150,000 of revenues from recycling go into the garbage and it is time that the public and employees take the task of recycling seriously.
Councilor Rozek stated that contracts work very well and this could save money; he recommended and supported seeking the information saying that the Council owes it to taxpayers to make sure their dollars are being maximized. There is a responsibility to provide the same service at a more efficient rate.
Mr. Perreault commented that the price of a contract could skyrocket after a few years. Using in-house people should be able to outperform contractors. He added that strides have been made at Public Works to save money as well. He urged councilors to call if they see problems with recyclables in the garbage so that the situation can be properly looked into.
Mr. Perreault noted that a two week warning campaign has been scheduled to warn citizens that they should be recycling. If recyclables are in the garbage, the bag will be tagged with an orange sticker and left for the homeowner to remove the recyclables.
Mayor Grenier suggested dedicating a work session to the proposed trash collection contract. Councilor Théberge was concerned that a contract for garbage could result in more garbage being left at curbside meaning that the police would have to get involved. Mr. MacQueen agreed that it would be a battle and Mayor Grenier conceded that it is a battle we have to face and move ahead with.
Councilor Remillard noted that recycling bins need to be available and Mr. Perreault stated that he put in a grant proposal for the tubs.
There being no further business, Councilor Nelson moved to adjourn; Councilor Rozek seconded and the motion carried. The meeting ended at 8:30 p.m.
Respectfully Submitted
Susan Tremblay
Administrative Assistant
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