Selectmen’s Meeting
February 22, 2005
I. Call to Order
Selectman Harding called the meeting to order at 7:02pm. In attendance were Selectman Gary F. Nelson, Selectman Norman P. Harding, Chairman Stephen M. Cushing and Town Administrator, Nancy J. Wrigley. Minutes were transcribed and typed by Office Manager, Mary B. Winglass.
II. Introduction of Guests
III. Old Business
A. Continued discussion of the 2004 tax bill for 18 Brenner Drive
The Selectmen met with Rose and Leo LaRochelle of 18 Brenner Drive regarding their request of a tax abatement of his 2004 tax bill due to not being able to occupy their home until the cistern was in place which was sometime in August/September of 2004.
The Selectmen requested the town Assessor, Andrea Lewy to review this request and her recommendation was to give the LaRochelle’s a refund of $3,695.00 as a good faith adjustment for the five months, April through August, that the LaRochelle’s were unable to occupy their home. Chairman Cushing stated that he felt Andrea’s recommendation is a good resolution.
Selectman Harding motioned to abate a portion of the 2004 tax bill for Rose and Leo LaRochelle of 18 Brenner Drive, Map 007-03-014-18 which is a refund of $3,695.00. Second by Chairman Cushing. TA, Wrigley stated that no interest is given as this is a good faith adjustment. Vote: Unanimous.
Mr. LaRochelle then spoke to the Selectmen about his bond reduction request. The Selectmen responded that this item needs to be addressed with the Planning Board and he needs to request to be placed on the next meeting agenda. Chairman Cushing informed Mr. LaRochelle that it takes a vote of the Planning Board to reduce the bond.
Mr. LaRochelle requested to speak about the current use penalty bill for the lots on Brenner Drive. Mr. LaRochelle spoke about the purchase price of the property and showed the Selectmen pictures of the lots before the road was built. The Selectmen explained that the current use penalty has no relationship to the price paid for the property or that at the time there was no road. A sales analysis was done by Assessor, Andrea Lewy and that is what was used to determine the value of the lots. The current use penalty is 10% of the fair market value.
B. Continued discussion of plowing concerns with Road Agent, Frank Gibbs
Present were Road Agent, Frank Gibbs; Lorraine Lurvey of 6 Crossman Circle and Debra Gridley of 8 Crossman Circle
Ms. Lurvey and Ms. Gridley discussed their concern with the possible contamination to the wetlands due to the snow piled on top of the drainage pipe that runs underneath the road and into the wetlands at the back of their property and to the damage done to the town owned right of way at the front of their property.
The Selectmen responded to the issue of contaminating the wetlands with the salt used on the roads is a non issue for if the snow was piled across the street it would still run through the pipes down to the wetlands area.
Ms. Gridley thanked Frank for his consideration during the last snow storm for pushing the snow to a different spot. The Selectmen, Frank Gibbs, Ms. Lurvey and Ms. Gridley all examined the subdivision plan for Crossman Circle. Frank Gibbs explained that the town right of way is 50 feet with 22 feet being paved. That leaves 14 feet off the pavement on both sides of the road that is owned by the town. This area is used to deposit the snow and to push the snow back for site distance. Frank added that if we have a large storm he will try to leave it on the right of way, if there is any damage to the property after the fourteen feet, Gibbs Construction will repair the damage.
The Selectmen decided that once the snow is gone, they will go down and check on the property.
IV. New Business
V. Announcements
VI. Accept Minutes of Selectmen Meetings
· Selectmen’s Public meeting minutes of February 7, 2005
Selectman Harding motioned to accept the Selectmen meeting minutes of February 7, 2005. Second by Selectman Nelson. Vote: Unanimous.
VII. Reports from Department Heads
VIII. Review of Action Items
IX. Adjourn
Selectman Harding motioned to go into non-public session at 8pm under RSA 91-A:3 II (c) discussion with the Treasurer regarding town funds. Second by Selectman Cushing. Roll Call Vote: Selectman Nelson – yes, Selectman Harding – yes, Selectman Cushing – yes. Vote: Unanimous.
Treasurer, Elizabeth Standing was present and she brought Nicole Pellenz, Vice President of Government Banking Division for Banknorth to discuss the town accounts held by Banknorth and to help explain the town’s “sweep account”.
Ms. Pellenz explained that the town has a cash management account a/k/a sweep account which is an account that puts the town’s cash to work by sweeping funds to and from for investment purposes. The transfer automatically occurs after all checks and deposits are processed and the collected balance is calculated. The funds are then automatically invested overnight in a repurchase agreement. A repurchase agreement is a contract to sell and subsequently repurchase securities on a specific date and price. Each agreement is fully collateralized at 102% and issued through an independent 3rd party to insure everything invested is secure.
Ms. Pellenz then showed the Selectmen an excel spreadsheet outlining the average balance of the sweep account for each month in 2004, interest rate, interest earned, waived fees and the projected interest to be earned in 2005 at a rate of 2.60% and the projected interest for 2005 with Merrimac Savings Bank at a rate of 1.50%.
The Selectmen then reviewed a list of town accounts held by Banknorth including the account number, account type and interest rate. Ms. Pellenz stated that she would get copies of signature cards on the accounts. The Selectmen and Treasurer then discussed handling the funds and the differences between Banknorth and Merrimac Savings Bank. The Selectmen then directed Treasurer, Betty Standing to open a new municipal checking account with Banknorth to be used for payroll and vendor payments; currently the town has a Citizen’s Bank account for this purpose.
Ms. Pellenz then discussed with the Selectmen and the Treasurer that many town’s put their impact fees into a CD and the bank will keep track of the interest for each fee instead of the town opening up separate accounts in order to keep track of the interest. Ms. Pellenz stated that Banknorth does not charge a fee for closing CD’s early; it was agreed by all that this would be the best way to handle the funds.
A discussion ensued regarding the interest rates at Merrimac Savings Bank and the President, John Meserve told the Board at their February 7, 2005 meeting that he would match Banknorth rates and that he would be competitive. Treasurer, Betty Standing added that she spoke with Merrimac Savings Bank and was told that they do not have a sweep account and if the interest rates are better at Banknorth then it would be smarter to keep things as they are. It was discussed that maybe we could use Merrimac Bank as a depository and sweep the funds out on a weekly or biweekly basis to Banknorth. Ms. Pellenz stated that the money would then be put into a cash concentration account and would have the benefit of earning the high interest rates on the balance of the account.
The Selectmen requested a monthly statement from Banknorth of all the town accounts. Ms. Pellenz will send the statement via e-mail to the Selectmen’s Office.
The Selectmen thanked Ms. Pellenz for taking the time to attend this meeting to explain the services provided by Banknorth. The Selectmen discussed meeting with Merrimac Savings Bank again to review account information.
The Selectmen discussed with Treasurer, Betty Standing the letter of credits issued to the town through the Planning Board by developers to cover the cost of the new development and road improvements. It was discussed that the Planning Board needs to relinquish the original letter of credit to the Treasurer for safekeeping in the safe. The Planning Board secretary is not bonded and they do not have a fireproof safe for storage and the Treasurer needs to establish a paper trail so there is documentation on file at the Town Hall. TA, Wrigley stated that this information needs to be listed in the town report and she did not have all the information this year.
The Selectmen then discussed the second checking account set up by the Treasurer at the Merrimac Savings Bank for the Planning Board. This account is to be used to deposit the revenue (fees) that is taken in by the Planning Board; the Planning Board stated that they will give a check quarterly to the town to be deposited into the general fund. The Selectmen questioned the need and legality of this account and Betty responded that she checked with Meg Baker of the State of New Hampshire Dept of Revenue and was told that if the Planning Board sets the fees then they can control the account. TA, Wrigley stated that when she spoke with Meg Baker she was told that this account was not legal and cannot be done. The Selectmen requested TA, Wrigley to contact Meg to discuss this issue further and to discuss the option of
billing the NPREA account for updating the tax maps.
TA, Nancy Wrigley and Treasurer, Betty Standing discussed signature cards on all town accounts. It was decided that Nancy, Betty and Selectman Harding will go down to the bank together to straighten out this situation.
The Selectmen discussed the need for internal accounting procedures and to sit down with the Planning Board to discuss this with them.
Selectman Harding closed the non-public session at 10:02pm. Per unanimous roll call vote, the minutes of the meeting are to be made public.
Respectfully Submitted,
Mary B. Winglass
Office Manager
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