Work Session
June 9, 2014
Present were: Mayor Grenier, Councilors Otis, Remillard, Benski, Morgan Allain, Higbee, Rozek, Nelson and Theberge.
Others Present: City Manager James Wheeler, City Auditor Bob Vachon, CPA Jarad Vartanian, Finance Director Patty Chase, Public Works Director Michael Perreault, School Superintendent Corinne Cascadden, Business Administrator Brian Lamirande, Barbara Tetreault Berlin Daily Sun, and several members of the public.
Mayor Grenier opened the meeting at 6:30 pm. Councilor Rozek moved with a second from Councilor Morgan Allain to add the following items to the agenda: Berlin/Milan AREA Agreement; Land Matters, and Fire Department Staffing Update. So moved, the motion carried.
Audit Discussion – Bob Vachon, Jarad Vartanian
Mayor Grenier introduced Bob Vachon and Jarad Vartanian of Vachon Clukay, the City’s auditing firm. Mr. Vachon reported that the audit report is in a different format but it is the same information that has been presented in the past. Mr. Vartanian said that the GASB’s approach to auditing is based on risk and the auditing firm is charged with determining what is at higher risk and testing those areas.
In the General Fund total expenditures of $32 million are $606,000 less than the amount budgeted. Expenditures exceeded revenues by $486,000.
Mr. Vartanian explained that they also issue a report on internal controls and no significant deficiencies were found. Because the City receives over $500,000 in grants, a single audit is also done. There were two compliance findings related to the Community Development Block Grant where grant funds were not spent within the 90 day window provided. These were not findings where the money was spent improperly but it was not spent down within the required time frame.
Mr. Vachon thanked Patty Chase for her help and the help of her staff. He warned of significant changes coming with GASB moving pension liability onto the city’s books in 2015. Mayor Grenier asked for the opinion of the general health of the city’s finances. Mr. Vachon stated that the DRA recommends 10 to 17% in reserve and Berlin is not close to that amount; however it would be unreasonable to raise taxes to fund ufb. Berlin’s budget is within its means. The auditors left the meeting at this time.
Proposed Letter of Support for LCHIP
Mr. Wheeler stated that CAP is applying to LCHIP to fund improvements to the Brown Company House. They are looking for a letter of support. Councilor Rozek moved to send a letter supporting a grant application to LCHIP for the Brown Company House; Councilor Morgan-Allain seconded and the motion carried. Councilor Higbee abstained from voting because he is employed by CAP.
Sewer Abatement Requests
Mike Perreault reported that the calculations have been verified with the finance office. He said that metered water usage is measured by the Berlin Water Works and provided to the City. We use three of four quarters for the calculation due to the running water program. Anyone on a well is advised to meter their water; otherwise an average which is 48 is used. The residential rate is 80% of the total rate.
- Paulette Pratte Amount Billed: $ 428
863 Western Ave Last Year’s billing: $ 166
Councilors agreed that customarily the bill is not altered because of a leaky toilet. The water still goes through the waste water treatment process. Councilor Remillard moved to deny the request; Councilor Nelson seconded and the motion carried with all voting in favor.
- Betty Fortier Amount Billed: $ 773
843 Western Ave. Last Year’s billing: $ 581
Mr. Fortier was present and he commented that the house was redone there was a plumbing problem with one of the toilets. Mayor Grenier indicated that the Council does not abate for plumbing problems because the water is treated.
Councilor Nelson moved to deny the request; Councilor Remillard seconded and the motion carried with all voting in favor.
- Marguerite Richard Amount Billed: $ 236
530 Western Ave. Last Year’s billing: $ 70
Councilor Remillard moved to deny the request; Councilor Morgan-Allain seconded and the motion carried with all voting in favor.
The next three abatement requests are well related and they are all from people who have unmetered wells. They were all charged the average.
Councilor Nelson moved to deny the abatement requests from 4. Coulombe 5. Dumont and 6. Dickinson; Councilor Remillard seconded and the motion carried with all voting in favor. Mayor Grenier abstained from voting on #4 due to conflict.
- Jennine Coulombe Amount Billed: $ 307
41 Ramsey Street Last Year’s billing: $ 307
- Michel & Sandra Dumont Amount Billed: $ 307
700 Hillside Ave. Last Year’s billing: $ 307
- Stephen Dickinson Amount Billed: $ 307
19 Charron Ave. Last Year’s billing: $ 307
- Katie Guilbeault Amount Billed: $ 479
148 Sweden Street Last Year’s billing: $ 243
Mr. Perreault indicated that all data was checked. Councilor Remillard moved to deny the request; Councilor Morgan Allain seconded and the motion carried.
- Willard Pine LLC Amount Billed: $6,728
241 Willard St Last Year’s billing $1,830
Mayor Grenier read Mr. Sorrentino’s letter that explained how he had a faulty meter changed by the Water Works leading to more average consumptions. Water Works did not adjust their consumptions which is the usual benchmark for a reduction in the sewer bill. There were suggestions to cut the amount of the bill in half; adding a percentage to last year’s bill; and ultimately it was decided to charge $2,400 giving the customer the benefit of the doubt. Councilor Nelson moved to charge $2,400 for the Willard Pine, LLC 2014 sewer bill; Councilor Benski seconded and the motion carried.
Mr. Perreault commented that when consumption is abated by the Water Works, the sewer charges are also abated.
AREA Agreement
Corinne Cascadden shared information about the AREA agreement with the Town of MiIan. Students are being reassigned to Gorham from Milan under “manifest hardship”. Typically there are one or two students per year that fall into this category; however this year there were seven with another pending. When the AREA was considered, Milan wanted the choice to send a student to either Berlin or Gorham; however the Berlin School Board thought that 70 to 80 students are too many for choice.
Superintendent Cascadden said that she questioned the number of students being reassigned to Gorham. RSA 195-A says that the districts may agree to send students but it would have to be done jointly by both school boards and the change would be valid for only one year.
On June 19, there will be a meeting of both school boards. The RSA depicts a process of a study committee and it is expected that the reassignments will be discussed at the meeting. Should a study committee be convened, there may be a need to come back to the Council to report on who will be on the Committee. Ms. Cascadden indicated that she will keep the Council informed.
Land Matters
Mr. Wheeler reported that in researching title for the sale of the Car Freshner building, the attorney found that the City has a right of first refusal from a 1961 deed. There is also a lot line adjustment that needs to have the incorporation corrected to “Delaware”.
Councilor Rozek moved with a second from Councilor Higbee to authorize the City Manager to:
Execute the Release of Right of Reverter prepared by attorney Thom Cote relative to a Quitclaim Deed from the City to the Berlin Industrial Reality Co. dated March 6, 1961 and recorded in Book 458/Page 0348 of the Coos County Registry of Deeds; and
Execute a Corrective Warranty Deed between the City and Car-Freshner Corp. which corrects the state of the grantees incorporation as Delaware at the time of the transfer.
The motion carried unanimous vote. Councilor Rozek confirmed that the city attorney has reviewed and agreed.
Fire Dept Staffing Discussion
Mr. Wheeler indicated that he has had conversations with the Fire Chief, Assistant Chief and union representative about the current budget situation that does not fund two positions leaving the force at 16, its current level. The issue is that four firefighters are needed to respond to a scene and he asked if everyone would work to solve that problem. All are willing to work on the concept.
Mr. Wheeler suggested a facilitated meeting that would bring forward what other ways could be used to have four people respond. The facilitator would be independent and not have an opinion on one side or the other.
Mayor Grenier asked if the makeup of the committee has been discussed. Mr. Wheeler noted that there would be a group of firefighters, administrators; council member; someone from the public and perhaps others. Mayor Grenier suggested Council Benski as the Council’s representative. He noted that there will need to be additional funding for the Fire Department for overtime. He added that he would not support less than 16 full time firefighters. It is important to get help from the people who know the job.
Mayor Grenier established that we need four people to attack a fire. He questioned how we get there when there are vacations, sick time and sixteen people. Do the salaried guys become part of the attack force?
There being no further business in the work session, the Council moved on to a non-meeting.
Councilor Nelson moved to go into non-meeting per RSA 91-A:2, I(b) Collective Bargaining; Councilor Rozek seconded and the motion carried unanimously by roll call.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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