SELECTMEN’S MEETING MINUTES
April 28, 2008
Call to Order
Chairman Donovan called the meeting to order at 6:08pm. In attendance were Chairman Robert S. Donovan, Jr., Selectman Trisha J. McCarthy, Selectman Raymond D. Thayer, Town Administrator Nancy J. Wrigley and Office Manager Mary B. Winglass. The meeting was audio taped and the minutes were transcribed and typed by Office Manager Winglass.
Chairman Donovan recognized the following who were present at the meeting; Bookkeeper/Payroll Administrator Kim Hughes, Police Chief Lawrence Streeter and Frank Gibbs.
A. Police Department
1. Continued discussion of the Police Department Budget
Police Chief Streeter stated that he does not have anything new to add as everything he had to say was covered at the last public meeting. Chief Streeter talked about the default budget and that he thought it would be the same as last year’s budget and did not realize how the default budget is defined. Chief Streeter added that given the personnel obligations and the price of gas this year, there is no way the department will make it without a significant adjustment. Chief Streeter stated that he will do whatever the Board wants to do in that regard.
Selectman McCarthy asked if we have ever been in this situation before where we had to back things out for the default budget. Kim Hughes responded that it is not that you are backing it out but making an adjustment. Selectman McCarthy questioned that as a resident one would assume that the default budget is the same as last year. Chief Streeter responded that the statute RSA 40:13 defines the default budget and RSA 34:10 allow the Selectmen to transfer funds within the budget. Chief Streeter stated that he spoke to an Attorney at the Local Government Center and he read the law outlining the default budget under RSA 40:13, but if you default back to RSA 34:10 it allows the Selectmen to transfer appropriations of any unexpended balance left in the budget at the end of the year.
Chairman Donovan responded that we should wait until half way through the year before we are transferring appropriations between budgets. Chief Streeter stated that he was told by Attorney Holmquist at the Local Government Center that 40:13 is only a guideline in that the Board of Selectmen can set the default budget however they want and the State will not micromanage what the Board does with the default budget therefore it is not cast in stone. Chief Streeter added that he will make some adjustments in his budget but he will need some guidance from the Board with other adjustments.
Payroll Administrator/Bookkeeper Kim Hughes questioned whether we are looking to make an adjustment now or later in the year when we know what the expenditures total? Hughes added that every department is aware that we are all on a default budget and the need to watch expenditures and that she felt that it would be best to wait until the end of June or the beginning of July to consider adjustments. Selectman McCarthy responded that July may still be too early. Chairman Donovan asked if every department received a memo regarding the default budget as requested by the Board at their last meeting. Office Manager Winglass responded that a memo went out to each department last week per the Board’s request.
Selectman McCarthy added that she spoke at great length with the State of New Hampshire Department of Revenue Administration and in the Highway Department’s case, as they are in need of funds for the sand and salt shed, to receive the money now would require the town to hold a special town meeting. Selectman McCarthy stated that she was told from the State that instead of doing it that way, if you have a line item in the budget that is not a zero balance and you use that for the emergency work i.e. sand/salt shed then in September you contact the State and ask for the over expended funds for the emergency purpose. A letter outlining the situation has already been given to the State and they told Selectman McCarthy that they would approve the transfer of funds from the general fund into the budget. Selectman McCarthy
added that she feels the Police Department is dealing with a hardship case with the price of gasoline but she was not so sure if the State would consider this an emergency situation.
Chairman Donovan stated that he feels that if we keep everybody tight on their budgets this year then we probably will not have a problem for we had a balance of approximately $275,000.00 at the end of last year and hopefully we will have enough to cover everybody at the end of this year. Chief Streeter responded that what he sees is a $24,000 deficit and it is his obligation to put it out there for the Board’s consideration. Selectman McCarthy stated that she feels that we will be alright if we continue along as we are and in September we will see how the operating budget if fairing; she added that it is good to anticipate a shortage but it is not an emergency now.
A discussed ensued that the fact of the matter is setting a budget is an art and sometimes you go over and other times under as it has happened in the past and usually the funds are in another budget to balance it out. Chairman Donovan added that when making a purchase this year we need to stay with the basics, no bells and whistles.
2. Continued discussion of the Best Management Practice for handling of
the Police Detail Special Revolving Account
Payroll Administrator/Bookkeeper Kim Hughes stated that she is looking for some direction regarding the bookkeeping for this account. Kim explained that with the Treasurer, they implemented a quarterly invoicing/payment schedule regarding the Police Detail Revolving Account. Currently, the Special Detail Revolving Account is reimbursing the town’s operating account for the Police Officers’ payroll and the associated costs paid by the Town for details (i.e. Social Security, Medicare, NH Retirement, Workers’ Compensation). The other fee deposited into this account is the cruiser fee charged at $10 per hour, if a cruiser is required, and at this point the cruiser fees are collecting in the revolving account.
Chief Streeter asked who put this account together and why? Town Administrator Nancy Wrigley responded that the warrant article was written in order to reduce the taxes in town. Prior to the approval of the warrant article, the town had to include in the budget the estimated amount of details expected for the ensuing year. The reason for this is due to gross appropriation and many times the amount of details exceeded the appropriated amount which required the overage to be covered by another budget. With this account, all payments to the town for police details are deposited into the revolving account and as Kim explained, the revolving account is reimbursing the town for payroll and associated expenses; the cruiser fee is accumulating and according to the warrant article, the funds can only be used for the purpose
for which the fund was created.
The Board discussed the possibility of using the cruiser fee to offset the cruiser maintenance line item in the Police Department’s budget per Chief Streeter’s spreadsheet outlining the department’s revenue projection for the year. Chief Streeter added that the revenue spreadsheet is an illustration only to show the revenue taken in by the department.
Another option discussed is to leave the funds in the revolving account and allow it to accumulate. Since the funds can only be used “for the purpose for which the fund was created”, a discussion ensued to include the expense of gasoline, cruiser maintenance, cruiser lease payments etc. TA, Wrigley responded that when working on the wording of the warrant article, she was told by the Department of Revenue Administration that the funds could not be used to purchase a new cruiser. TA, Wrigley informed the Board that as of the end of 2007, the balance in the account was approximately $47,500. After a discussion on the best way to use these funds to help with the shortfall in the Police Department budget this year, the Board approved the following;
Chairman Donovan motioned that all Police Department gas purchases starting in June 2008 are to be paid out of the Police Detail Special Revolving Account. Second by Selectman McCarthy. Vote: Unanimous.
Town Hall Parking Ordinance
Chief Streeter stated that he is working on the wording of this ordinance.
B. Highway Department Issues
1. Continued discussion of the Rental Agreement
Road Agent Mike Pivero discussed the rental agreement drawn up by the Town Attorney in response to the Board’s request for a legal opinion on a Hold Harmless Agreement from Road Agent Mike Pivero. Pivero stated that the Hold Harmless Agreement is no different than what you would have to sign when renting equipment from a rental company. Pivero stated that he would not sign the rental agreement drafted by the town’s Attorney for it does not cover him; the tools are used by town employees, not his employees therefore it is out of his realm of insurance coverage. Prior Road Agent Frank Gibbs was asked if he ever had a rental agreement with the town; Gibbs responded “no”. The Board discussed that the employees are covered under the town’s insurance. Chairman Donovan stated that if he
was in Pivero’s shoes he would not sign it. Pivero added that another option is for the town to rent their equipment from a rental company. Bookkeeper/Payroll Administrator Kim Hughes asked if there is a list of equipment and the fee schedule. Pivero responded that he could come up with a list and asked how detail do you want the list. Chairman Donovan replied that to cover every screwdriver used is almost impossible for you never know what equipment the Road Crew will be using on any given day. Hughes responded that she was not sure what the Town would require him to do. Pivero responded that he could prepare a list. Chairman Donovan and Selectman McCarthy responded that what happens if he leaves something out. Chairman Donovan responded that what Pivero is looking for is to be covered if any incident happens when using his equipment. The Board decided that a list of equipment is not necessary. Hughes added that if a town
employee is hurt on the job they will be covered under the town’s workers’ compensation policy.
Selectman Thayer motioned to sign the Hold Harmless Agreement as given to us by Road Agent Mike Pivero as written. Second by Selectman McCarthy. Discussion: It was discussed that the Hold Harmless Agreement includes a lot of the same wording as in the rental agreement prepared by the Town Attorney. Vote: Unanimous.
2. Continued discussion of the Highway Budget
Road Agent Mike Pivero stated that at last weeks meeting, the topic discussed was the salaries of the Road Crew and how it affected the bottom line of the Highway budget. Selectman Thayer reviewed the minutes of December 4, 2007 when the merit raises were voted on. Chairman Donovan informed Bookkeeper/Payroll Administrator Kim Hughes that the issue surrounding the Highway budget is that approximately $7,000 for insurance was taken out of the budget and then raises were given that was not included in the default budget. Office Manager Winglass replied that the merit raises were included in the default budget salary line item of $48,351.00 but it did not include the cost of living increases. Pivero stated that the bottom line budget for 2007 was $352,930 and the year to date expenditures for 2007 was $367,379 therefore
he felt that he was short by approximately $14,000. Pivero added that last years salary expenditures were only $32,997 out of the $47,933 appropriated. Selectman McCarthy explained that last year there were some changes in personnel due to a leave of absence of an employee on the Road Crew. Pivero responded that there is still not enough money in the salary line item for his two employees working 34 hours per week. TA, Wrigley responded that the budget allowed for both employees at 32 hours per week. Selectman McCarthy added that the Road Crew typically work 32 to 34 hours per week except in the winter due to the bad weather when there was not a lot of work for them. Pivero responded that maybe he came at this the wrong way and then asked if he has the authority to set the rules on the number of hours per week for his employees. Pivero was told that his employees are permanent part time which means they have to work at least 25 hours or
more regularly scheduled hours per week. Chairman Donovan asked what you do if you only have 25 hours of work for the Road Crew. Hughes explained that due to the personnel policy, the permanent part time employees must work at least 25 hours per week to receive part time holiday and vacation benefits. Selectman McCarthy added that last year the Road Crew went through personnel changes and in order to keep a good staff for retention purposes, it was decided, as recommended by the prior Road Agent, to give them an increase. The Road Crew does not receive the medical benefits as full time employees therefore they were given a certain amount of hours to help with retention. Selectman McCarthy added that last year the current crew went to training in the fall and worked on the Stormwater Management Plan by locating all the culverts in town on a map. Pivero responded that since he came on Board the Road Crew has been working 34 hours
per week; therefore he will need to cut back. Hughes asked Pivero about his projects planned for this year. Pivero responded that he has a culvert that needs to be replaced on Pond Street which will cost approximately $15,000 to $18,000 alone, which is only one out of many projects. Pivero asked the Selectmen if he cannot do any projects this year for we are already over in the sand/salt budget by $900 and we know we need to spend more in that line item this year. Pivero added that certainly we know that there is work to be done but it won’t get done without money. Selectman McCarthy responded that everybody needs to prioritize and do what they can or cannot do within the budget constraints. Pivero stated that he is here to find out if the budget can be increased, that’s all. Prior Road Agent Gibbs asked Pivero how he plans on spending up to $15,000 on the culvert replacement. Pivero responded that it is $225 per foot for
the box culvert, there is forty feet of box culvert and that is before it gets here, dug, copper dams and all the other work and then Pivero offered to Gibbs to bid on the project. Gibbs responded that he was planning on fixing it differently. Pivero explained that you cannot put in any smaller of a culvert than the beaver culvert, therefore the culvert needs to be equal to a foot bigger than the beaver culvert which is 4 x 4 ½ .
Selectman McCarthy added that originally the Road Crew generally works longer hours in the summer due to the additional road work with the tree trimming, cleanings of the culverts and catch basins and a lighter schedule in the winter months for many times they were let go after they cleaned up after a snowstorm. Pivero stated that it did not look like the Road Crew worked less in the winter. Selectman McCarthy responded that this all started at the end of last year. Chairman Donovan asked why are we here discussing all this when we do not talk to the Police Department, Fire Department, Library or anybody about their budget and the man hours; we generally leave it up to the department head to determine the need of the department. Selectman McCarthy responded that Mike asked about his budget; Pivero concurred that
he needs to know his options to keep within his budget and now he knows he can decrease the hours of the Road Crew. Selectman McCarthy responded to Pivero that she understands the need to do what needs to be done and if we need to move money around then we can do that; don’t stop doing what needs to be done. Selectman Thayer stated his concern with over expending the budget due to other shortfalls such as the Police Department budget. Bookkeeper Kim Hughes discussed the need for a plan to determine the work that needs to be completed this year. Pivero responded that he needed to know what his budget will be before preparing a plan. Kim explained and Pivero concurred that by showing a plan will help determine the need for any additional funding for projects due to a priority/emergency repair.
Selectman McCarthy asked Gibbs about the grant money given to the town from FEMA last year due to the Mother’s Day flood and if any of that funding was for the Pond Street culvert. Gibbs responded “no”. Gibbs explained that he drove around the town with a representative from FEMA in order to determine the necessary repairs. Pivero added that he knows that the window is closed to file for funding but he will still try for they can only say no.
Pivero stated that the other project that he needs to complete is the Peaslee Crossing/Smith Corner Road intersection. Pivero added that the plan should never have been approved by the town but the road needs to be completed per the plan so that we are not held accountable in the end. Pivero added that Winglass is working with the Treasurer to determine how much money is left to complete the project.
The Board then discussed funding approved by the voters for the “Road System Improvement Fund” and if this fund could help offset the cost of these repairs. After reviewing the original warrant article that passed in 2001, it was determined that the Selectmen were not designated as the “agents” to expend the funds so it looks as if we need to go back to the voters to approve an expenditure and/or to authorize the Selectmen as the Agents overseeing the account. TA, Wrigley will check on this with the State. It was determined that as of December 31, 2007, the account balance was $50,000 plus approximately $2,000 in interest with an additional $25,000 approved March 2008. Pivero added that this fund would certainly help this year, if it is available.
Pivero asked to close out the budget issue to make sure he understands the perimeters. Pivero stated that his salary line item is $48,351, which is the number he needs to stay under. Selectman McCarthy responded that if we have another May flood issue which leads to extenuating circumstances then he needs to come back to the Board. Chairman Donovan asked if Pivero only needs the Road Crew for 25 hours one week and then eight additional hours the next week does that require that we pay overtime. Pivero explained that per the labor laws a person must physically work over 40 hours to receive overtime pay. Pivero stated that he understands that he cannot go below 25 hours per week and not over 39 hours per week. Selectman Thayer asked about the December 4th Selectmen’s meeting minutes for the
only two Selectmen present was John Ulcickas and Trisha McCarthy. At that meeting, it was voted to give the Road Crew a raise and he asked if Bob signed off on the minutes and if that has any bearing and then he asked if it is a conflict for Trisha to approve the merit increases. Selectman McCarthy replied that she checked with the Local Government Center and because her son works for the Road Crew but does not live in town nor with her then there is no personal gain therefore it is not a conflict. Selectman Thayer stated that he figured he would bring it up and Selectman McCarthy stated that she checked after the meeting to make sure she was not doing anything wrong. Selectman Thayer responded that he is happy with Selectman McCarthy’s explanation.
3. Continued discussion of the Sand/Salt Storage
Selectman McCarthy stated that she spoke with Jeanne Samms from the Department of Revenue Administration and reiterated what had been discussed earlier with Police Chief Streeter regarding any emergency expenditure. She was told to use a line item in the budget that has approved funding and to incur the expense within that line item and then in September we can petition the State to use funds from the “fund balance” to cover the unanticipated hardship case. Selectman McCarthy did tell the State that the project could run up to $80,000 and after reviewing the fund balance it was determined by the State that funding is available to handle this hardship case. Chairman Donovan asked if we can get that in writing. Selectman McCarthy responded that she was told that many other towns do this and in September or
October you write a letter to the DRA Commissioner outlining the hardship and as long as you have the funds in the “fund balance” then there will be no problem. Selectman McCarthy added that the expense to move the sand/salt from Gibbs property needs to be included in the cost of this project.
Pivero asked if he needs to bring in a full set of plans showing the set backs to bring to the town for approval. Selectman McCarthy responded “yes” the only town waiver is to the permit fees. Pivero discussed that there are two different lots located on Dugway Road and yet in the Groundwater Management plan it shows it as one. Pivero asked if the town received a grant for the plan. Selectman McCarthy responded that she worked on it as part of the Conservation Commission and we did not receive any grant money. Pivero added that he has researched the properties and there are two deeds. Pivero asked when the Groundwater Management laid out the zone did they include both lots. Selectman McCarthy stated that she will check on it for she has the paperwork at home.
Selectman McCarthy discussed that at a recent Planning Board meeting it was discussed that since there is an aquifer in this area, they wondered if the Conservation Commission would look to make this area a Water District and why the Selectmen were looking to put a sand/salt storage on this lot. Selectman McCarthy explained that it will be stored in a shed and will be protected from the elements.
Pivero added that now that he has a plan and once the Groundwater Management is confirmed he is ready to come up with some budget numbers. His plan is to build a 48 x 30 and we can always add to it later. Gibbs discussed his proposal to bring the trucks inside the shed to load the materials in order to keep the material contained.
Selectman McCarthy stated that she will reiterate her prior conversation with Jeanne Samms from the State by putting it in an email so she can get her response by email
Adjourn
Chairman Donovan motioned to adjourn the meeting at 8:19pm. Second by Selectman Thayer. Vote: Unanimous.
Respectfully Submitted,
Mary B. Winglass, Office Manager
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