NOTTINGHAM BUDGET COMMITTEE MINUTES
JANUARY 19, 2006
PUBLIC SESSION
APPROVED BY THE COMMITTEE SEPTEMBER 28, 2006
PRESENT: ABSENT:
Mr. Michael Koester, Chair Mr. Chet Batchelder (Excused)
Mr. Peter Bock, Selectman's Representative
Ms. Judy Doughty, School Board Representative
Ms. Gail Powell
Mr. Jack Caldon
Mr. Philip Fernald
Ms. Denise Blaha
Ms. Noreen White-Roy
Mr. Kurt Duprey
Mr. John Decker
OTHERS PRESENT:
Ms. Mary Bonser, Selectman
Mr. William Netishen, Selectman
Mr. Tom Sweeney, Building Committee
Representatives of the Society for the Protection of New Hampshire Forests
Mr. Charles Brown, Town Administrator
Ms. Kelly Tivnan, Budget Committee Secretary
The Chair called the meeting to order at 7:00pm.
TEACHER CONTRACT:
Mr. Koester said that the Budget Committee had wanted to discuss the teacher contract warrant article. Ms. Doughty said that she was glad the Budget Committee had supported the teacher contract. She said that she understood that the Budget Committee wanted to put together a statement of reservations about the proposed contract. She said that she would like to give a little background of the proposed contract. She said that negotiations involved 'give and take.' She said that the negotiating committee had chipped away at the longevity. She said that the school district was where they needed to be with pay with this contract. She said that the district was not paying co-pay anymore. She said that the negotiating committee had to chip down and they had been happy to get the contract as low as they
had. She said that the negotiating committee had accomplished some goals. She said that the percent between steps was higher at the entry level. She said that would help keep entry level salaries comparable with other places. She said that the salaries for MA+45 were high. She said that they had tried to change that to CAGS but it hadn't happened. She said that the School Board wanted to eliminate that MA+45 step. She said that those salaries looked high but just because of the 2002 contract. She said that the district had a lot of veteran teachers. She said that the negotiating committee had tried to address the issues. She said that they had done the best they could. She explained "fact finding" and she said that one professional person acted as "judge." She said that the teacher contract question would go on the warrant. She said that the School Board had wanted to maintain control
over the process as much as possible. She said that every failed contract had cost a little more money. She said that the cost of living kept going up. She said that she did not want to have to negotiate another contract with more money. Mr. Decker said that there was money missing from the budget and the warrant article. He said that he had a problem with the legality of the warrant article. Mr. Doughty said that the longevity would cost $150 multiplied by 13 people. Mr. Decker added that number needed to be multiplied by 2 because this was a 2 year contract. Ms. Roy said that from the way this had been explained to Budget Committee she thought the money had already been taken from the surplus. Mr. Decker said that was not legal. Ms. Doughty said that there was time for the SAU to come up with a clear explanation of this issue. Mr. Koester said that there might be a misunderstanding of this issue between
members of the Budget Committee and the SAU staff. Mr. Caldon said that there had been reservations by Budget Committee members about the teacher contract. He said that he had clear ideas about how the pay scales should be. He said that the top of the pay scale was loaded and he said that they had not looked at comparable sized towns. He said that Nottingham was not in danger of paying teachers less than the state average. He said that they were told there was a 2.6% increase in the scale. He said that there was a 6% increase 3 years in a row. He said that the voters would be voting on an appropriation for 3 years. He said that the taxpayers needed to be told how much the contract cost every year. He said that the figure of 2.6% was misleading and the voters should be told it like it was. Ms. Doughty said that the School Board would explain the contract to the voters as best they could. She said that there was a
trust issue and it bothered her. Mr. Koester said that the contract had been presented to the Budget Committee within hours before they needed to vote on it. Ms. Blaha asked how long the contract negotiations took. Ms. Doughty said that the third session of negotiations had been shorter than the first two. She said that having the professional negotiator had sped up the process and made her more comfortable. She noted that the contract had not become a public document until it was ratified by both sides. Ms. Powell said that there had been a time 3 years earlier when the figures had been misrepresented.
Ms. Roy made a motion that the Budget Committee schedule a meeting for January 26, 2006.
Mr. Bock said that the information needed to be clear. Mr. Koester said that face to face discussion might be necessary. Mr. Decker said that he needed numbers. Ms. Roy asked if the Budget Committee could go in front of the people and explain their thoughts on this. Ms. Powell said that the Budget Committee was comfortable with the operating budget. Mr. Caldon asked when the warrant needed to be posted. Mr. Koester said that the warrant needed to be posted on January 30, 2006. Mr. Decker said that if the warrant article changed there would need to be another public hearing on it. Mr. Koester said that the document would be presented "as is." Mr. Decker said that he would not vote for it without further explanation. Ms. Bonser asked if the document could be amended at the
Deliberative Session. Mr. Koester said no. He said that the teacher contract was a negotiated document. Mr. Caldon recommended that the Budget Committee move forward with their meeting since they had already recommended the teacher contract warrant article.
Ms. Roy withdrew her motion for another meeting.
Ms. Roy said that she would go and get the paperwork and drive wherever was necessary to make sure Budget Committee members got the chance to sign it.
FIRE STATION:
Mr. Sweeney said that he was representing the Building Committee. He said that they wanted to buy property from the school. He said that the property was about 3 acres plus or minus. He said that the survey work on the property was ongoing. He said that $800,000 was being requested in a warrant article for a new fire station. He said that the Fire Department needed more space. He said that the new station would fit all of the equipment and trucks. He said that this was an extremely important project which had been coming for a long time. He said that the town really needed this. Mr. Duprey asked if there was something showing how the Building Committee had arrived at the figure of $800,000. Mr. Sweeney said that the office space would be 20ft by 80ft and the bay would be 80ft by
80ft. He said that they did have drawings but he said that they would keep changing for the moment. Mr. Bock asked how soon plans could be available. Mr. Sweeney said that the Building Committee had the layout of the proposed building but they could not get instant plans. He said that the Building Committee had been talking to the Fire Department. He said that the proposed new building would have a steel structure and they knew what it would look like. Mr. Bock asked if they had that information. Mr. Sweeney said that some things took time. He said that they could move faster on this after they had bought the property. Mr. Bock said that the Building Committee might not be asking for enough money. He said that the public would want to see documents, etc. Mr. Sweeney said that $800,000 would be enough. Ms. Roy asked if $800,000 was a not to exceed number. Mr. Sweeney said that they would not exceed
$800,000 unless something unforeseen happened. Mr. Duprey asked if someone would be rebuilding the nature trail. Ms. Doughty said that there were some volunteers who would be rebuilding the nature trail. Mr. Duprey noted that plans would go a long way towards this project. Mr. Sweeney said that if the project was approved in March they hoped to have it up by October.
ANNOUNCEMENTS:
Mr. Decker said that the Town Budget Public Hearing would be on February 9, 2006.
Mr. Koester said that election sign ups would be from January 25, 2006- February 3, 2006. He said that there were three open 3 year positions and one open 1 year position on the Budget Committee.
MULLIGAN FOREST:
Mr. Chris Mills and Mr. Tom Howe said that they were from the Society for the Protection of New Hampshire Forests and they wanted to talk about Mulligan Forest. Mr. Howe said that he would do the overview. He said that the proposal involved a 2,036 acre parcel of land which was owned by Jim Fernald, Rick Fernald and Debra Fernald-Stevens. He said that the town could purchase an easement of the property for $1,250,000. He said that the current appraised value of the property was $1,708,000. He said that this was a unique property within New Hampshire. He said that this was the largest privately owned forest in New Hampshire. He said that the Fernald family had owned this property for more than a century and the family had taken pride in welcoming appropriate public use of the property. He said
that the goal was to help people understand good land management and to allow the land to be used for recreational value such as hunting. He said that this land was accessible to the public and there were 5 miles of woods roads. He said that this land also included plant and animal habitats. He said that there was a deer wintering area and 365 acres of wetlands. He said that the area overlied an existing aquifer which contributed to three water supplies. He noted that one of those water supplies was the Nottingham School. He said that the easement would allow the owners to extract water for a public water supply. He said that this land also linked with other conserved lands. He said that the county population was expected to grow 30% by 2025. Mr. Mills said that the amount of money that this purchase would cost per capita was at the lower end of what neighboring communities had done. He said that the midpoint was $1.7
million for fair market value. He said that this would cost the town 27% less than that so it would be a bargain sale. He said that the town had been asked to pay half. He said that they were hoping 15% of the total or $250,000 would come from a matching grant from LCHIP. He said that the Society for the Protection of New Hampshire Forests would privately fund the remaining $150,000. He said that the town was not being asked to cover between $125,000 and $150,000 in expenses. He said that the Society for the Protection of New Hampshire Forests was committed to finding that money. He said that people had been asking them why they wanted to do this now. He said that one of the big reasons was the LCHIP grant. He said that if they were going to get an LCHIP grant it would need to be during the next LCHIP funding cycle. He said that LCHIP had a list of 300 projects and they would fund 2 or 3. He said that this project
would have a good shot of being one of those 2 or 3. He said that knowing where their money was coming from was crucial and he said that a positive vote from the town would be crucial. He said that would show that the people were behind this project. He said that momentum was a big part of projects like this. He said that the Society for the Protection of New Hampshire Forests had the capacity to pull together information campaigns and they would help do whatever was necessary to get the word out about this project. Mr. Caldon asked what the society's role would be in perpetuity. Mr. Howe said that they would monitor the property by air and with visits and they would talk to the landowners. Mr. Caldon asked if this land would be promoted as a recreation area. Mr. Howe said that this would be a low impact recreational opportunity. He said that the Society would have the right to construct and maintain a trail head area. He
said that the Society for the Protection of New Hampshire Forests would work with the landowners. He said that this project would be a partnership. He said that the goal was to promote the continuation of stewardship. Mr. Decker asked about the fair market value of this property. Mr. Howe said that the fair market value would be what a reasonable buyer would pay. He noted the value of the development rights. Mr. Mills said that in response to the question of what the town would be getting for their money he would say that they would be assuring no one developed this property. Ms. Bonser noted that the use of the property would not change. She said that for $489 per acre the value of the transaction far exceeded the cost. Ms. Powell asked if this purchase would bring with it obligations for future costs. Mr. Howe said that he could not envision or imagine any future costs to the town because of their involvement with this. He said that the town could make sure the Society
for the Protection of New Hampshire Forests was living up to its promise. He said that the Society had trust and they had agreements to protect 600,000 acres of forest across the state of New Hampshire. Mr. Mills said that easement monitoring would be a cost to the Society for the Protection of New Hampshire Forests forever. He said that the Society raised money for that cost up front. Mr. Koester asked if there would be any potential liability costs to the town. Mr. Howe said that the town was not assuming the responsibility for public access to the property. He said that the landowner and the Society for the Protection of New Hampshire forests would be responsible for the land. He said that the only thing the town would need to do would be to make sure that the Society for the Protection of New Hampshire Forests upheld their obligations. Ms. Doughty said that she was so grateful for this opportunity. She asked whether wheel
traffic would be allowed on the property. Mr. Howe said that question would be up to the owners of the property. He said that the easement only allowed for pedestrian access. Mr. Fernald (Archie) asked how the people would know that the Board of Selectmen was watching to make sure the Society For the Protection of New Hampshire Forests was doing what it was supposed to be doing. Mr. Netishen said that the Board of Selectmen would get reports from the Society for the Protection of New Hampshire Forests and the Selectmen would be able to go on the property to look at it. He said that the community needed to look towards the future. He said that this was an opportunity that the entire community should support. Ms. Roy asked if Mr. Howe and Mr. Mills would be at Town Meeting so that the public could ask questions if they wanted. Mr. Mills said yes. Mr. Caldon said that the contract between the parties was good. Mr. Netishen
said that it was a draft document. Mr. Caldon said that the public needed to see the work that went into this. Mr. Mills said that the Society for the Protection of New Hampshire Forests did an annual monitoring report which would be available for review. Ms. Bonser noted that this project and the Society for the Protection of New Hampshire Forests had received an endorsement from the Planning Board, the Conservation Commission, the Board of Selectmen and the Capital Improvement Plan Committee. Ms. Blaha asked about the provision regarding water withdrawal. Mr. Howe said that they had just wanted to leave the option open. He said that they did not even know if a municipal water system would be possible. Mr. Koester asked about mineral rights. Mr. Howe said that the land owners could not sell sand or gravel commercially. He said that the landowners could use the sand and gravel and they could move sand and gravel from one area of
their property to another. Mr. Netishen said that the landowners needed to notify the Society for the Protection of New Hampshire Forests in advance of any plan to use the sand or gravel.
DISCUSSION OF TOWN BUDGET:
The Budget Committee opened discussion about the town operating budget at 8:50pm.
At this time Ms. Doughty left.
Mr. Fernald said that it bothered him that the Budget Committee was rushing through this discussion.
Mr. Brown stated that the cost for voter registration printing had increased. He said that the town was trying to get a vote tabulating machine. He said that there would be a demo programming charge plus the cost per ballot. He said that it would give the town the opportunity to try the machine.
Mr. Brown said that the line for Planning and Zoning equipment had increased from $0 to $938. He said that they were in dire need of a new flat file two new legal file cabinets.
Mr. Brown said that the cost of library building maintenance under general government buildings had increased. He said that they needed to stripe the parking lot. Ms. Roy asked if the old police department building was going to be made into library parking. Mr. Brown said that there was no plan to connect the two pieces of property.
Mr. Brown said that there was a change in the line for Community Center electric. Mr. Decker asked if the change to energy efficient light bulbs had helped. Mr. Netishen said yes. Ms. Roy noted that new windows would help too. Mr. Netishen said that over the next 2 years they expected to see a big difference because of those windows. Mr. Brown said that the electricity usage in the building had increased. Mr. Decker said that the town should look into motion lights in the bathroom. Ms. Bonser said that was a good idea.
Mr. Brown said that the money for the police chief's retirement had been removed from the salary line and put into the liability line.
Mr. Brown said that there had been a slight increase in the line for Fire/Rescue Service Contracts because of a slight increase in the copier service contract for the Fire Department.
Mr. Brown said that there had been an increase in the line for highway signs. He said that the amount had increased from $2,000 to $3,300. He said that they had needed to spend $1,200 on signs for 2 bridges.
Mr. Koester asked about the Fire Department office equipment. Mr. Brown said that money was for the copier lease. He said that they had looked into the value of a purchase versus a lease.
Mr. Brown said that the line for Engineering and Consulting had increased because of money needed for bridge repair. He said that the increase also included money for engineering on Swan Drive. He said that in 2012 they would get a reimbursement for construction on one of the bridges. He said that they would get an 80% reimbursement of their engineering costs possibly as early as August. He said that they also had $80,000 for the construction of a new bridge. He said that they could get an 80% reimbursement of that when the construction was complete. Mr. Decker asked if this project was similar to Mountain Road. Mr. Netishen said that it was similar but on a larger scale. Mr. Brown said that the plan was for the town to do this work themselves immediately because they wanted to avoid closing
the bridge as much as possible. He said that this had caused a significant increase in the budget for roads.
Mr. Brown said that said that the line for Recreation Equipment had increased from $1,075 to $1,375 because they had not allowed for a monitor.
Mr. Brown noted the warrant articles. He said that Article 5 was the conservation easement for $858,500. He said that the bond was 10%.
Mr. Brown said that pest control would go on the warrant and they could let the voters decide. Ms. Bonser said that the Board of Selectmen had put a dollar figure with the question of pest control so that they could do something about that if the voters wanted them to. Ms. Blaha said that the people wanted information about health and environmental concerns. Ms. Cheryl Smith said that she had put together information from people at the University of New Hampshire. She said that they needed to look at the implications of this. She said that there were organic farmers in town who could lose their certification. Mr. Brown said that the Board of Selectmen had taken digital mapping out of the budget. He said that pest control would be a huge discussion in town. Mr. Caldon said that the people were
looking for the best practices to manage pest control. Ms. Bonser said that they were looking at other alternatives besides spraying. She said that there was a lot of standing water in Nottingham. Mr. Brown said that he had some information on a spraying program that would be ongoing from April to October.
Mr. Brown said that the cost for the grater included the interest on the lease. He said that the reserve fund articles were for $50,000 each and they included a Highway Department Truck and a Fire Apparatus. Mr. Fernald asked why a larger grater was needed. Mr. Brown said that the current grater wasn't big enough. Mr. Fernald said that the large graters did too much harm to the roads.
Mr. Koester asked if the Fire Station would be bonded. Mr. Brown said that they were waiting for more information about the proposed fire station.
Mr. Brown said that they were also waiting for some more wording that would be included in the warrant article about Mulligan Forest. He said that the Society for the Protection of New Hampshire Forests would provide the wording and they would explain how each year's payment would affect the budget. Mr. Caldon noted that bonding would affect the debt service.
Mr. Brown said that the projected town operating budget was $2,888,300.
Mr. Brown said that there would be a processing fee of 10% for the easement loan price and he said that there would be a bond counsel fee. He said that the bond counsel fee would be in the line for legal costs.
Mr. Caldon asked about the tax impact. Mr. Brown said that he did not know what it would be and he would not guess. He said that he could not predict the tax rate. Mr. Netishen said that they needed to make some assumptions to look at the possible tax impact. He noted that the projected town operating budget was $2,888,300 and the projected cost of the special articles was $2,687,638. Mr. Duprey said that they needed to come up with revenue estimates. Mr. Netishen said that in 2003 and 2004 the tax impact had stayed at $4.50. He said that in 2005 the tax impact had gone down to $2.88 because the assessed valuation had gone up. Mr. Duprey said that he expected to be able to have an understanding of the potential tax impact. Mr. Fernald asked if the Board of Selectmen were going to
recommend everything. Mr. Netishen said that they had not decided yet.
Mr. Fernald asked why the bridges needed to be done. Ms. Bonser said that the state had sent them a letter. Mr. Brown said that the letter had recommended a closure and a barricade. Mr. Netishen said that the Board of Selectmen had done an excellent job protecting the liability of the town. He said that they had gone out and gotten price quotes and other information. Mr. Brown said that he had talked to the engineering company and the Road Agent about this project.
Mr. Decker asked about the land use change tax. Ms. Bonser said that they had bought 3 easements and had obligated to 4. She said that they had the authority to spend money from the land use change tax without going before the town. Mr. Decker noted that Nottingham was not the only town which benefited from easements. Mr. Netishen said that it would be great if the community supported these easements and it would help them get grants.
Mr. Decker made a motion to adjourn the meeting at 10:05pm. Mr. Caldon seconded the motion. The present members of the Budget Committee voted unanimously in favor of the motion. The motion passed 9-0.
Respectfully submitted,
Kelly Tivnan
Budget Committee Secretary
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