City Council Work Session
May 13, 2013
Present were: Mayor Grenier, Councilors Otis, Benski, Morgan-Allain, Higbee, Rozek, Nelson and Theberge; absent was Councilor Remillard
Others present: Bob Vachon, Patty Chase, Pamela Laflamme, Patrick MacQueen, Mike Perreault, Corinne Cascadden, Nicole Plourde, several firefighters, media and public
Mayor Grenier called the meeting to order at 6:30 pm. He asked for a non-public session after the auditor’s presentation. Councilor Rozek so moved; Councilor Otis seconded and the motion carried.
City Audit – Bob Vachon
Mayor Grenier thanked Mr. Vachon for donating tickets for the BHS Hockey team to attend the end of season banquet. The gesture is much appreciated.
Mr. Vachon reported that the City received an unqualified opinion which means that in all material respects, the audit can be relied on. He went through his review of the audited financial statements for year ended June 30, 2012. He commented that there has been a tremendous improvement and Ms. Chase is doing a great job for the city.
Councilor Theberge asked for more information on the recommendations and Mr. Vachon said that he wanted additional detail to the adjustments to journal entries. Ms. Chase assured that all journal entries now have sufficient back up information. Councilor Theberge asked about periodically changing auditors and Mr. Vachon noted that some municipalities change every few years. He emphasized that his company strives to change people periodically and to take a fresh look every year.
Mayor Grenier asked about the overall financial health of the City and Mr. Vachon stated that Berlin is on the same level as it has been which is good since there has been an economic decline. Berliners generally pay their taxes though it’s a struggle. Mr. Vachon indicated that there will be changes in reporting beginning in 2015 when unfunded pension liability will go on the city’s financial statements. Mayor Grenier thanked Mr. Vachon and he left the meeting at 6:48 p.m.
Non-Public Session
Councilor Rozek moved with a second from Councilor Theberge to go into non-public session per RSA 91-A:3II(d) Consideration of the acquisition, sale or lease of real or personal property. So moved, the motion carried unanimously by roll call.
Councilor Theberge moved with a second from Councilor Rozek to seal the minutes until there is a transaction on the property. So moved, the motion carried unanimously by roll call.
Councilor Rozek moved with a second from Councilor Morgan-Allain to come out of non-public session. So moved, the motion carried unanimously by roll call.
Recommendation to Hire WP for Manual & GIS Mapping
In a memo from Public Works Director Mike Perreault, the Council was informed that the City is under an administrative order to update its Operations and Maintenance manual and to complete GIS mapping of the sanitary sewer system. Wright Pierce is able to do the work needed for a not to exceed price of $16,750. Mr. Perreault confirmed that the work does not include mapping the draining system. Councilor Rozek asked if the work can be done in house and Mr. Perreault stated that we don’t have the capability or the man hour resources.
Councilor Theberge moved to authorize the City Manager to enter into a contract agreement with Wright Pierce to do the work required in the administrative order for a price not to exceed $16,750; Councilor Rozek seconded and the motion carried.
NHMBB Loan Agreement
Mr. MacQueen stated that the Council has had the first reading on the resolution to refinance $3.5 million of a bond initiated three years ago, plus $1 million in new funding through the NH Municipal Bond Bank. The loan agreement will need to be signed after the resolution passes. The vote will need to authorize the city manager, treasurer and clerk to execute the loan agreement.
Council Decision for Publishing Budget
Mr. MacQueen presented possible changes to the City Manager’s budget. Some are corrections and some are recommendations. Even with the changes, the tax rate would go up $1.44, using $1 million from unappropriated fund balance.
Mayor Grenier voiced that it is a somber situation when we have to add $1.44 to the tax rate and that will not bring positions back. Councilor Higbee asked for detail of what will be cut from capital in this proposal. Mr. MacQueen provided the following list:
Sidewalk Replacement $50,000 to $25,000
Retaining wall Replacement $50,000 to $25,000
Street Rehabilitation $100,000 to $75,000
Bridge Inspection $25,000 to $15,000
Storm Drain Replacement $20,000 to $10,000
PW Fuel Distribution System $136,000 to $50,000
PW Equipment Replacement $50,000 to $25,000
Downtown Improvements $100,000 to $60,000
In Cruiser Cameras $5,000 to 0
Radio Consoles $124,000 to $44,500
PD Storage Area $25,000 to 0
Recreation Equipment $10,000 to $5,000
Housing $150,000 to $125,000
Schools $30,000 to 0
Councilor Nelson commented that this could be the year that we skip the money for downtown to save a job. Mayor Grenier stressed that the money is part of the initiative to keep the downtown moving forward. Councilor Otis asked what percentage of the budget is capital and Mr. MacQueen said that it was 15% in the original city manager’s budget and this reduction would bring it to under 10%. Councilor Theberge asked if the PD needs to buy a new car this year. He was informed that they are on a 2-2-1 rotation where they buy 2 cars in two consecutive years, then one car in the fifth year. Their cars take a beating.
Council discussed the additional funds needed to put positions back: $18,000 for the part time clerk; a part time inspector $11,000; 2 firefighters $170,000 (-30,000 for overtime); 1 position in PWD for $58000; 1 Solid Waste position for $56000; and a Parks position goes from full time to part time for $48000.
Revenue
Councilor Theberge asked about the cable franchise fee and Mr. MacQueen explained the fee can be as high as 5% but Berlin charges 3%. The fee comes to the City no matter what the cable rates are
A negative number in Fire Alarm User Fees is revenue that was expected into this year and did not come in.
01-401 Mayor and City Council
Councilor Rozek moved to approve $50,858 for Mayor and City Council; Councilor Nelson seconded and the motion carried.
01-402 Administration
Councilor Rozek moved to approve $1,100.857.42 for administration; Councilor Higbee seconded and the motion carried unanimously by roll call thereby achieving the 2/3 majority.
01-403 Elections
Councilor Rozek moved to approve $8,115. for elections; Councilor Morgan Allain seconded and the motion carried.
01-404 City Hall and Other Buildings
Councilor Rozek moved with a second from Councilor Higbee to approve $53,857.70 for City Hall and Other Buildings. So moved, the motion carried.
01-406 Property Liability Insurance
Councilor Rozek moved with a second from Councilor Higbee to approve $116,469.45 for Property Liability. So moved, the motion carried.
01-407 County Tax
Councilor Rozek moved with a second from Councilor Higbee to approve $1,702,551.84 for County Tal.
In discussion Councilor Theberge asked how the County budget could be controlled. Mayor Grenier voiced that the commissioners came in with a flat budget and the State Representatives raised the tax by 2.2%.
So moved, the motion carried.
01-408 Central services
Councilor Theberge moved with a second from Councilor Rozek to approve $344.580 for Central Services. So moved, the motion carried.
01-410 Personnel Benefits
Councilor Nelson moved with a second from Councilor Rozek to approve $203,736 for Personnel Benefits. So moved, the motion carried.
01-411 Contingency
Councilor Higbee moved with a second from Councilor Morgan-Allain to approve $9,600 for Contingency. So moved, the motion carried.
01-412 Outside Agencies
Councilor Rozek moved with a second from Councilor Nelson to approve $61,574.52 for Outside Agencies. So moved, the motion carried. Councilor Higbee abstained.
01-413 Cemeteries
Councilor Rozek moved with a second from Councilor Higbee to approve $11,861.48 for Cemeteries. So moved, the motion carried.
01-414 Transfer Out
Councilor Higbee moved with a second from Councilor Rozek moved to approve $71,086.82 for Transfer to airport and sewer fund. So moved, the motion carried.
01-420 Police Department
Councilor Rozek moved with a second from Councilor Higbee to approve $2,916,640 for the Police Department.
In discussion Councilor Benski questioned $45,000 for Dispatcher Training. It was later determined that ammunition is included in that line item.
She also asked about 420-406 Parking Enforcement, why it is a special line item. The most likely reason is for bookkeeping purposes.
Councilor Benski questioned crossing guards for $26,000 saying that she has not seen them.
In the vote that followed, all voted in favor of the motion.
01-421 Fire Department
Councilor Nelson voiced that she would rather see a management position eliminated rather than a man on the ground. Councilor Morgan Allain asked if administrative duties can be done by the existing staff.
Mayor Grenier suggested inviting the chief back in to talk about it. He added that there are revenues that come with the inspections done by the assistant chief.
Councilor Rozek moved with a second from Councilor Higbee to approve $2,059,699.09 for the Fire Department.
In discussion, Councilors asked about account 421 136 “working out of rank” and it was determined that this is budgeted for firefighters who fill in for someone at a higher rank.
421 137 call back for alarm is for firefighters’ overtime
421 309 Plectron Allowance is a pager allowance
421 138 is planned overtime where someone is scheduled for overtime.
With no further questions, Mayor Grenier called for a vote and all voted in favor.
It was determined that Chief Trull would be asked to next Monday’s meeting.
01-422 Street lighting
Councilor Rozek moved with a second from Councilor Higbee to approve $124,500 for street lighting. So moved, the motion carried.
01-423 Ambulance
Councilor Rozek moved with a second from Councilor Nelson to approve $311,000 for ambulance. The motion carried unanimously by roll call thereby achieving the 2/3 majority.
01-424 Public Safety
Councilor Rozek moved with a second from Councilor Nelson to approve $73,230 for Special Public Safety. So moved, the motion carried.
01-425 Housing
Councilor Rozek moved with a second from Councilor Higbee to approve $95,165.13 for Housing. So moved, the motion carried.
01-430 PWD
Councilor Rozek moved with a second from Councilor Higbee to approve $1,613,232.57 for Public Works
In discussion, Councilor Rozek asked if the budget can be reduced to keep people working.
He questioned whether it is possible to hire firefighters to work 28 hours per week with no benefits, retirement, or health care. Mr. MacQueen indicated that the union contract contemplates all at full time and he did not know if part time would attract firefighters since they still have to graduate the fire academy. Mayor Grenier said that he would support reinstating the PWD and solid waste personnel first.
In the vote that followed, all voted in favor.
01-431 Engineering
Councilor Rozek moved with a second from Councilor Higbee to approve $120,050.09 for Engineering. So moved, the motion carried.
01-436 Solid Waste
Councilor Rozek moved with a second from Councilor Higbee to approve $806,322.71 for Solid Waste. So moved, the motion carried.
01-440 Health
Councilor Rozek moved with a second from Councilor Higbee to approve $484,997.5 for the Health Department. So moved, the motion carried.
01-441 Welfare
Councilor Rozek moved with a second from Councilor Higbee to approve $123,246.85 for Welfare. So moved, the motion carried.
01-449 Parks Maintenance
Councilor Rozek moved with a second from Councilor Higbee to approve $244,849.11 for Parks Maintenance. So moved, the motion carried.
01-450 Recreation
Councilor Rozek moved with a second from Councilor Higbee to approve $114,586.82 for Recreation. So moved, the motion carried.
Councilor Benski stated that recreation is a non-essential service and perhaps the goal would be to sustain the department with user fees.
01-451 Library
Councilor Rozek moved with a second from Councilor Higbee to approve $176,690.09 for the Library.
In discussion Councilor Rozek questioned whether there is duplication of services with a high school library and the college library. Mr. MacQueen mentioned that the Children’s Department at the Library services a lot of children.
In the vote that followed, all voted in favor.
01-460 Schools
Councilor Rozek moved with a second from Councilor Higbee to approve $16,792,801 to the Schools. So moved, the motion carried.
Mayor Grenier got a consensus from the Council to allow Nicole Plourde to comment.
Ms. Plourde said that though it appears to be a slight increase to the school budget, it is actually a cut because of uncontrolled expenses from the NHRS and property liability insurance formerly paid for by the City totaling $313,000. Mayor Grenier stated that when the State gets additional funding, it could mean level funding for the schools but we won’t know until the budget is passed.
01-470 Debt Service
Councilor Rozek moved with a second from Councilor Higbee to approve $891,627.13 for debt service. So moved, the motion carried.
01-480 Capital Improvements
Councilor Rozek moved with a second from Councilor Higbee to approve $575,900 for Capital Improvements.
In discussion Councilor Otis stated that he has a hard time supporting cuts to capital; infrastructure is in more need of the dollars than reinstating personnel. Councilor Benski agreed, saying that we have to keep the infrastructure solid.
All voted in favor of the motion.
Spending is reduced by $915,000 from last year and it still results in a $1.44 tax increase.
BIDPA – Airport and All Other Funds
Councilor Nelson moved with a second from Councilor Rozek to approve the budget amounts as presented by the City Manager in all other funds. So moved, the motion carried.
Sewer User
Councilor Rozek moved with a second from Councilor Higbee to approve $1,320,910 for Sewer User. So moved, the motion carried.
The grand total of all funds is $37,378,509.78
Non-Public Session
Councilor Rozek moved with a second from Councilor Higbee to go into Non Public Session per RSA 91-A:3 II(a) Personnel. So moved, the motion carried
Mr. MacQueen presented the Council with the draft two year employment agreement with Jim Wheeler. It is a 25 month agreement that totals $144,143.
Councilor Rozek moved to accept the agreement and to authorize Mayor Grenier to sign on behalf of the City; Councilor Theberge seconded and the motion carried.
Councilor Rozek moved to come out of non-public session; Councilor Theberge seconded and the motion carried unanimously by roll call.
Councilor Rozek moved with a second from Councilor Theberge to go in non-meeting per RSA 91-A:2, I (b) Collective Bargaining. So moved, the motion carried unanimously by roll call.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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