Work Session
January 21, 2013
Present were: Mayor Grenier, Councilors Otis, Remillard, Benski, Higbee, Rozek, Nelson and Theberge; Councilor Morgan-Allain was absent
Others present: Patrick MacQueen, Pamela Laflamme, Mike Perreault, Jay Poulin, Senator Jeff Woodburn, Representatives Robert Theberge, Yvonne Coulombe; Mike Waddell; Jay Poulin of HEB Engineers, Barbara Tetreault, Berlin Daily Sun
Meeting with Senator Jeff Woodburn, Representatives Robert Theberge & Yvonne Thomas
Mayor Grenier thanked the Senator and Representatives for coming and asked Mr. MacQueen to review issues at the forefront of this year’s legislative session for municipalities like Berlin. Mr. MacQueen said that it is imperative that deferred state aid grants for water and pollution control projects be restored. Traditionally the State has participated with 20% of these projects to encourage municipalities to embark on the projects; the lack of these funds is hitting communities very hard.
Berlin is slated to lose school equitable aid in the amount of $374,000 which is critical. Demographics, population, and low property values equate to Berlin getting a lot of State aid for education.
Senator Woodburn commented that he will deliver the message adding that the State is in the hole $25 million and has had to cut a lot of services. He questioned where the money is going to come from. He indicated that there is support in the Senate for a gambling bill and perhaps that will bring additional revenue. He stated that he is committed to getting the bill passed and it needs to gain support in the House. He is working to secure an annual amount that will flow into the North Country from the gambling proceeds.
Representative Theberge reported that there is a proposal to increase the gas tax by 4 cents for each of 3 years with the increase being less for diesel. In the proposed bill, 15% would be going directly to municipalities. He noted that Representative Coulombe put in the bill requested by the City having to do with ATV use on the highway. Representative Thomas stated that she is not on board with the gas tax saying that the North Country already pays .20 more per gallon than the southern part of the state. She would be in favor of raising registration fees which would affect everyone in the same way. Senator Woodburn was not in agreement with increasing the gas tax either. Representative Thomas voiced that she did not think the votes are there for a gambling bill in the House.
Mr. MacQueen noted that SAG money cannot be restored if it is not in the governor’s budget. Representative Theberge indicated Governor Hassan will put it in the budget. Senator Woodburn explained that he wants to find resources to take care of rest areas.
Mayor Grenier introduced Mike Waddell saying that there is an issue facing communities that he wanted the Council to be briefed on. Mr. Waddell said that he works for Skip Sansoucy who represents Berlin and Gorham and at least 50 other NH communities. This year, corporate utility companies have filed 100 appeals against communities across the state. These utilities including PSNH believe they have a favorable legislature and court system in place to support their view.
1. They want to change the method by which the State does valuation from “fair market value” to “book value less depreciation.” Such a change applied to a house bought in 1984 would have that house with a value of 0 in 2013.
2. Utility companies are not required to obtain building permits nor are they required to reveal construction, or operating costs to local assessors unless ordered to by the BTLA. A small community wanting to get valuation information has to file a legal proceeding to get the information they need making the process expensive to the community.
3. The State DRA sets values for equalization purposes using the unit method and not the “fair market value” resulting in values that reduce the amount they get for school tax;
4. Utility companies promote a project such as Northern Pass using positive tax impact as a way of gaining local support and then they appeal the values to attempt to avoid property tax.
Mr. Waddell stated that his company is not presenting solutions; they are only trying to educate selectman on the existing problem and to stress that the unit method does not work. Fair market value is the only fair method of valuation.
Mr. MacQueen added that the State is shooting itself in the foot when the State undervalues utilities; the State is getting less money. If values are less than they should be, then the State is not raising the revenue it should be raising. There is a major problem that needs to be corrected. Mr. Waddell added that a little town facing valuation challenges from these utilities has to take on the cost to mount a successful legal effort and that cost is insurmountable.
Mayor Grenier stated that there are utilities that won’t give information to do an accurate appraisal. After not giving the needed information, they can then appeal their valuation to the BTLA and to Superior Court. He suggested that there should be legislation that a utility that withholds information loses its right to appeal.
It was noted that 25% of Berlin’s total value is utilities. Brookfield has purchased dams from Florida Power and Light in an arm’s length real estate transaction; however it is not likely that they will want the value to be used for tax purposes. Mayor Grenier acknowledged that Brookfield is attempting to renege on the PILT agreement they have with the County. Few understand why valuation matters at all; Mr. Waddell stated that what is needed is a venue to educate legislators, councilmen and selectmen.
Representative Theberge asked if it is possible to have the municipal association to lobby. Mr. MacQueen established that there is a need for state legislation to even the playing field. It comes to fairness versus favoritism. Mr. Waddell said that there are years of case law with a winning record. It is the cost involved that causes most towns to fold. At 7:40 p.m. Mayor Grenier called for a five minute recess to hold a public hearing for CDBG grant funding. The work session resumed at 7:50 p.m.
Mayor Grenier commented that it is important to protect our valuations because lower values will cause a spike in taxes. He thanked Mr. Waddell for the information.
AVRRDD Request for Decision on Burgess Waste Water Treatment Facility
Mr. MacQueen reported that he received a letter from the AVRRDD asking if the City has any interest in pursuing the purchase of the Burgess Waste Water Treatment Plant. His recommendation is to decline the offer at this time. The purpose of purchasing the plant would have been to increase capacity and reduce the incidents of Combined Sewer Overflow (CSO). The waste district is looking for an answer by the end of the month.
Councilor Remillard asked if Mr. MacQueen is sure there will not be a need for the plant in the future and he replied that he is not sure; however it is more likely that it would be less expensive to build a holding tank adjacent to the existing plant rather than move material to the Burgess plant.
Mayor Grenier supported continuing with the City’s I & I efforts to increase capacity. We will continue to attack the problem rather than add useless infrastructure, he said.
Councilor Remillard moved with a second from Councilor Rozek to send a communication to the AVRRDD respectfully declining to purchase the Burgess Plant. So moved, the motion carried.
Hutchins Street Cost Estimate Update
Jay Poulin indicated that he has done additional review since the last meeting on proposed changes to Hutchins Street. He stated that the street is the second most travelled in Berlin with Route 16 being first and Route 110 as third. New cost estimates update the cost of Hutchins Street from $ 2.2 million estimated in 2009 to $2.8 million at today’s costs. There is wetland impact and wetland mitigation for 10,000 square feet would be necessary. There is a potential for hazardous material and a fair amount of contingency is built into the estimate. Easement acquisition is not included.
Mayor Grenier stated that this new roadway will benefit the entire North Country and the solid waste district will get a benefit. He proposed to discuss the cost of soil disposal with the District at their next meeting which could save the city money off the project.
Mr. Poulin informed the Council that the project estimates include landscaping of the Bridge Street area. The realignment eliminates the sharp turn, at the intersection of Bridge Street and includes sidewalk with green space. There is some question about a multi use corridor and whether it makes sense to add it at this time. Councilor Theberge wanted to know more about access to Success Pond Road, I & I and lighting for the new street. He stressed that his constituents are supportive and they want a lit walkway. Mr. Poulin assured that there is access to Success Pond Road in the plan. The project takes drainage into account. There is nothing in the plan for lighting.
Mr. Poulin stated that he will send along estimates for lighting. Mr. MacQueen went over the available funding as $800,000 in a Congressional allocation; 1.2 million available in the bond. There is approximately $400,000 left from Cate Street money; however Route 110 will need additional funding that is not yet in place.
There being no further business in work session, Mayor Grenier moved on to the regular meeting.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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