May 19, 2014
Work Session
Present were Mayor Grenier, Councilors Otis, Remillard, Benski, Morgan Allain, Higbee, Rozek, Nelson, and Theberge
Others present were: City Manager Jim Wheeler, Community Development Director Pamela Laflamme, Finance Director Patty Chase, Barbara Tetreault Berlin Daily Sun
Mayor Grenier opened the meeting at 6:34
Auditor RFP
Mr. Wheeler reported that the City put out a Request for Proposals for auditing and received two responses, one from Ron Beaulieu and Associates and one from Vachon, Clukay. Proposals were reviewed by the City Manager and Finance Director. There is a significant difference in price with the Beaulieu proposal at $24,000 and Vachon at $44,750 which is an all-inclusive fee. There are several scenarios in the proposal where Beaulieu could bring in additional cost. References favored Vachon Clukay and after due diligence, the recommendation is to do a one year agreement with Vachon.
Councilor Rozek moved with a second from Councilor Theberge to hire Vachon Clukay for a one year term at $44,750 to do the City’s FY 15 audit. So moved, the motion carried.
Review Electricity Proposals
Mr. Wheeler explained that the city went out for proposals on electricity prices due to our current contract expiring as of June 2. The schools asked if we would go out for proposals. The City has been using UMG as its broker since 2009 and we’ve had favorable pricing. We can deal with a supplier directly or an aggregator/broker who shops around for prices and alerts us to the best time to lock in a price.
The brokerage fee is three quarters of one cent per kw which amounts to just under $2,000 per year on the City’s consumption of 2.65 million kw hours. Mr. Wheeler recommended in the city’s best interest, to continue with the broker. We have the benefit of their expertise and a history of decent pricing.
Councilor Remillard did not recommend a six month contract because we would then be renewing in the winter. She did not agree with using a broker saying that it is just adding cost.
Councilor Rozek commented that there is a good track record with the current broker. Councilor Benski confirmed that the City’s contract is up June 2 and there is no problem being addressed. Mayor Grenier noted that he wants to avoid going through this process every six months and that can be done with a broker.
Councilor Nelson moved to continue to use UMG as the city’s utility broker; Councilor Otis seconded and the motion carried. Councilor Morgan Allain asked if any of the others are brokers and Mr. Wheeler confirmed that they are direct suppliers. Mayor Grenier asked for a roll call vote in which Councilors Nelson, Higbee, Theberge, Benski, Otis, and Rozek voted for; Councilor Morgan Allain and Mayor Grenier voted against; Councilor Remillard abstained. The motion carried.
Hutchins Street
Mr. Wheeler informed the Council that the Hutchins Street south project (Dummer Yard) will not likely be done in this construction season. He is hoping that the engineering can get done to go out for bid in the winter where it is most likely to get good pricing. Mayor Grenier commented that Turcotte to Bridge Street cannot remain in its current condition and Mr. Wheeler confirmed that the area is to be shimmed. This year’s projects will be Hutchins Street North and Route 110. Next year it will be Hutchins Street South and Main Street. Councilors expressed that they would like to see the corner at Bridge and Hutchins addressed.
Capital Improvement Project Resolution
The City received $400,000 for selling property at Community Field to PSNH for the expansion of their substation. Resolution 2014-10 will appropriate the revenue to field improvement projects in the FY14 budget.
The second resolution 2014-11, appropriates $15,000 from the County for legal expenses.
Request for Motion for Declaratory Ruling
Ms. Laflamme explained that Jericho Power LLC is looking for the Council to provide a letter of support so that they would not have to go through SEC for the second part of their project. They were granted a waiver for the first part of their project, three wind turbines, and now with two more towers, they would like all five towers to be one project. They have gone through an extensive amount of permitting and done due diligence. Mayor Grenier expressed his support saying that this project has been thoroughly vetted at the local level. Councilor Nelson moved with a second from Councilor Morgan Allain to support sending a letter to SEC not to take jurisdiction on the Jericho Power Project. The motion carried unanimously.
DMV Lease Agreement
Ms. Laflamme reported that BIDPA has agreed to extend the lease of a portion of 143 East Milan Road to the DMV. The State lease asks for a certifying vote by the council to include with the lease. She went on to say that it is true DMV wants to move to another location; however they are willing to pay extra for a short term lease.
Councilor Rozek moved to enter into a lease agreement with the DMV as proposed by BIDPA; Councilor Benski seconded and the motion carried.
Councilor Remillard established that it would be good to keep the DMV in Berlin. Ms. Laflamme stated that their criteria included 35 spaces of parking and counter space for six employees; there was no such space available.
Non-public session
Councilor Otis moved with a second from Councilor Morgan-Allain 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 Rozek moved to seal the minutes until the property discussed is sold as releasing them would render the proposed action ineffective; Councilor Morgan Allain seconded and the motion carried unanimously.
Councilor Rozek moved to come out of non-public session; Councilor Higbee seconded and the motion carried unanimously.
There being no further business in the work session, Mayor Grenier called to move on to the regular meeting.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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