BC20101007t

APPROVED

TOWN OF PELHAM

BUDGET COMM= ITTEE /= MEETING MINUTES

Thursday, October 7, 2010

APPROVED &#= 8211; October 21, 2010

CALL TO ORDER – 7:30pm

PRESENT:

Also Present:

Mr. Larry Hall, Mr. Dan= iel Guimond, Mr. John Lavallee, Mr. Dennis Viger, Mr. Robert Sherman, Mr. Gre= gory Farris, Ms. Angèle Diack, Mr. K= en Dunne, Selectmen Representative Edmund Gleason

Town Administrator Tom = Gaydos, Cable Television Coordinator Jim Greenwood, Fire Chief James Midgley, Pol= ice Chief Joseph Roark, Police Department Office Manager Laurette Guay

ABSENT:

School Board Representa= tive Andy Ducharme

PLEDGE OF ALLEGIANCE

MINUTES REVIEW

MOTION:

(Lavallee/Sher= man) To approve the Se= ptember 27, 2010 meeting minutes as written.

VOTE:

(9-0-0) The motion carried.

2011 TOWN BUDGET R= EVIEW – ALL DEPARTMENTS

Assessor – The budget had an increase due to a placeholde= r if the utilities were to be reassessed. Tennessee Gas will be sent a tax bill in a few weeks; they will have until the spring to appeal such.

Budget Committee – No questions/comments.

Cable – Mr. Lavallee asked if the assumption was the reve= nues would be $177,000. Cable Coordinator Jim Greenwood said that was correct. Mr. Lavallee questioned how the $8= 7,780 would be spent. Mr. Greenwood= said he would stick with 1/12 of the budget until March, 2011 (based on the projection of $177,000 coming in). Mr. Lavallee wanted to know what would happen in the event the money= was shorted. Mr. Greenwood said typically (over the last several years) there had been an increase. He believed the 2011 revenues woul= d be over $180,000. Ms. Diack aske= d if there would be a point that the Town was saturated with cable and could onl= y go so far with expected revenues. Mr. Greenwood said there were roughly 3300 subscribers to cable (approximately = 75% of parcels in Town) and the number appeared to stay at that point.

Cemetery – An adjustment will need to be made under salar= ies to show the correct figure for the Recording Secretary. The salaries request was increased= from $88,267 to now read $88,342. = The expansion program would continue. Mr. Farris asked if the telephone could be hooked into the Town̵= 7;s connection since Cemetery had an internet connection. Mr. Gaydos said a separate line wo= uld need to be run, but there might be a way to speak over the internet.

Conservation Commission – There was $1,665,000 remaining = in the bond fund; and approximately $400,000 in the current use fund. Mr. Farris asked what the restrict= ions were for the current use fund. Mr. Gaydos said a warrant article would be needed to use it differently. Mr. Lavallee stated that there sho= uld be some consideration for the Town taking some money back to offset the tax ro= ll or the general fund. Mr. Gaydos said the money was a borrowing capacity for forestry. He said if a change/alteration/restrictions were desired, a warrant article would be the avenue to do such.

Debt Service Interest – No questions/comments.

Debt Service Principal – No questions/comments.

Elections – Increase in postage for the ten year purge.

Emergency Management and Fire Department– Mr. Farris said= he had questioned whether the current Forestry truck had been received through= a grant. Fire Chief James Midgl= ey came forward and stated the current vehicle, Forestry 1, had been received through a grant that he wrote approximately 6 or 7 years ago. The vehicle they were requesting to replace was one that they had to return to the Department of Forest and Lan= ds in 2009. Mr. Farris asked if = both vehicles had been procured from grants.&nb= sp; Chief Midgley answered no; there was a vehicle loan program through = the Federal and State Governments where they give a vehicle (in dilapidated sha= pe) and it’s the Town’s requirement to do all the upkeep and any maintenance required. When a = town is done with the vehicle it’s given back. Mr. Gaydos said the program starte= d in the 1960’s when forest fires were a problem. The state had old military trucks = they would lend out. Mr. Farris commented that the voters never voted to accept a debt to the tax bill vehi= cle for the two trucks discussed; both vehicles had been given to the Town. He questioned if it altered how th= ose vehicles were put into the budget, or if it needed to go to the voters beca= use it wasn’t a replacement. Mr. Guimond noted the cost could be two times (the cost for) a Police vehicle.<= span style=3D'mso-spacerun:yes'> The question was if that amount wa= s for replacement. Mr. Gaydos stated there was a need for the Forestry vehicle.= He said the vehicle had been sent back because it was the financially prudent thing to do. He comme= nted that the requested vehicle was a replacement because the first unit the Town had was leant for no cost. Mr. Farris reiterated that the voters didn’t have a say regarding the fir= st two vehicles.

Mr. Hall read aloud a por= tion of the Budget Committee By-Laws pertaining to Capital Expenditures as follows: “A replacement capital expend= iture whose dollar amount exceeds the lowest current state bid price of a police cruiser by no more than twice, may be inserted into an operational budget b= y a vote of the Budget Committee.” He said if the committee knew the price of the lowest current po= lice cruiser, they would know if the (forestry vehicle) number came in under it. It was noted that the new= state bid price would come out in November. Mr. Gleason commented that the vehicle had been a functional piece of equipment that had been operating in the Town (and the voters benefited fro= m) for at least the last ten years, even though it was given to the Town on a lend/lease. He stated that the vehicle needed replacement. M= r. Lavallee stated people had a right to vote on items costing certain amounts= . Mr. Gleason said the Committee changed its policy several years ago recognizing that times had changed and he felt that this was a situation where common s= ense needed to be applies. He reit= erated that the vehicle had benefited the voters for the past ten years and it was worthy of being replaced. Mr. Lavallee said he wasn’t questioning the fire department’s resou= rce or value, he was questioning the expense that went to the voters.

There was further discuss= ion regarding items being requested and the safety concern of the defibrillators having defective batteries. M= r. Gleason stated that the Selectmen may look at funding it this year if it wa= s a critical life safety concern.

Mr. Viger said he looked = at the forestry vehicle as a replacement since the Town had it since the 1960’s. He said it was = in the fleet, it was now outdated and needed to be replaced and it met the criteria for replacement as a line item. He saw no reason to put it into a warrant article. Mr. Sherman agreed. He felt it might be helpful for the Chief to create a priority list for new equipment. Ms. Diack noted examples of when t= he school had replaced equipment (within the budget) they received as a gift.<= span style=3D'mso-spacerun:yes'> Mr. Farris said it was not so much= of a replacement vehicle, it was the cost. Mr. Dunne said based on the amount specified in the By-Laws, the requested vehicle was only off by approximately $2000. He asked if requested amount was s= et in stone. Chief Midgley said if = the issue came to $500 or $1000 he would make it up in his budget. He discussed the status of the veh= icles currently being used in the department; the requested vehicle was used as p= art of the operations in the department. He commented that the tanker unit would also not be around for much longer, it was becoming very cost prohibitive to keep it in operation. He noted if the department didn= 217;t get the requested vehicle, (once the tanker no longer was in service) they would be down to one forestry unit.

Chief Midgley provided the Committee with an update regarding the life packs and cardiac monitors.

The conversation reverted= back to the fire department equipment. Mr. Viger asked if when the equipment was received at the department if there w= as any additional equipment needed to make it serviceable. Chief Midgley answered no.

Mr. Lavallee asked what t= ime limit the Chief was allowing Physio Control to correct the problems with the batteries (not staying charged) within the cardiac monitors. Chief Midgley described his course= of action with Physio and informed that the notified the FDA and planned to go= to the press if the situation elevated. He said they were taking stop gap measures to prevent failure of the system; the monitors worked fine, it was the power system that was failing. To cost to replace a monitor was approximately $20,000-$25,000.= Chief Midgley said in speaking to other fire chiefs he found there w= as a problem up and down the coast.

Health Officer – No questions/comments.

Health Services – No questions/comments.

Highway Department – Mr. Farris said the Selectmen had sp= oken about possibly replenishing the highway grant fund with surplus. He wanted to know if it was to try= to maintain a road repair fund. = Mr. Gleason said there was a $650,000 budget surplus available and the request = was made to put some money back into the highway fund of that surplus. The Selectmen voted to put the sur= plus back into the fund balance because the philosophy was that they should represent to the voters and Budget Committee the actual cost of highway maintenance. There was a thre= e year reserve that the Highway Agent would be using to repair the roads; approximately $504,000 would be used to repair roads this year. Mr. Farris said he had been asked = why the money was being replenished and if it had been spent on something besid= es highways. Mr. Gaydos stated a= ll the highway expenditures were made on highways. He explained that the fund had been built up with three years of reserve block grant. There was a request to replenish i= t so there would always be a fund in the event of a disaster. The Selectmen didn’t want to continue doing that so people could see what was actually being spent on the roads. Mr. Gleason reiterated= that the Selectmen felt they should represent (in the budget) the actual cost of highway maintenance.

Mr. Farris questioned if = there was to be a surplus in the overall budget if the Selectmen would consider u= sing some of that money, such as to replace the fire department’s defibrillators. Mr. Gleason s= aid the Selectmen were responsible for the bottom line. As long as there was a line item i= n the operating budget that covered that type of equipment, they could look at funding it. Mr. Gleason said = the Selectmen requested that the Fire Chief identify the corrective action; if = that corrective action looks to be problematic, the Selectmen will review alloca= ting money to resolve the situation.

Mr. Viger said by followi= ng the Selectmen’s way, there is a chance that the warrant article would be defeated, which runs the risk of losing a year of road repair. He was concerned that the Town wou= ld end up in a similar situation as the year 1994 when the Town had to take a bond= to repair several miles of road because they had been let go for so long. Mr. Viger believed they would be b= etter off to do a presentation at the Deliberative Session to show the people whe= re the money was going and leave it the way it currently was so the roads that needed fixing could be fixed. Mr. Gleason said the Selectmen put the money in the operating budget also to minimize the amount of warrant articles.&n= bsp; Mr. Viger questioned how the highway block grant would be handled un= der the Selectmen’s current proposal.&nb= sp; Mr. Gleason said the highway block grant got used up as the Highway Agent needed it; this year it was being used to pave roads. Mr. Viger didn’t feel it made sense to move money for fixing roads into a warrant article. Mr. Gaydos said it was a close vot= e to have the extra money put into a warrant article. The Selectmen met and agreed= if the Budget Committee wanted to take that part of it and put it back into the operating budget, they would be fine with that. Mr. Gaydos said there were a numbe= r of different ways for the block grant to be dealt with, one of which was to le= t it arrive and have it flow to general revenue and appropriate it through the operating budget. Mr. Gleason= said the Selectmen were trying to do a representative budget of the actual costs= of maintaining the roads in the Town. <= /span>

Mr. Hall asked when the n= umber for the block grant would be received.&nbs= p; Mr. Gaydos said it arrives in the December timeframe.

Mr. Hall said he would li= ke the vehicle schedule to be more aggressive and possibly lease vehicles, replace them quicker and reduce maintenance costs.= Mr. Gaydos said he would work with the Highway Agent and get a regul= ar schedule for the beginning of 2012.

Human Services – No questions/comments.

Insurance – The number can be adjusted at reconsideration= if needed.

Legal – No questions/comments.

Library - No questions/comments.

Park & Recreation – Mr. Hall commented that the department spent $23,000 more than it ended up taking in and questioned wha= t it was spent on. Mr. Gaydos said= it was spent on major field repairs. He described the work that had been done.

Planning Department – No questions/comments.

Police Department – The only adjustment in the budget wou= ld be the overtime rate. Mr. Gui= mond asked if $14,000 (f/t dispatcher overtime) was to be subtracted from salaries. Police Department O= ffice Manager Laurette Guay stated that she rechecked the numbers and explained t= hat within the first year of hire an employee received two step increases; two dispatchers were at a step lower than what they would actually be at. Police Chief Joseph Roark further explained that there were several other employees that were adjusted to properly show their steps. Th= ere were three officers and two dispatchers that had previously been at the incorrect rate. Revised sheet= s were provided to the Board.

Mr. Sherman asked if any discussion regarding the School Resource Officer (‘SRO’)(and possibly splitting the salary) had occurred either with the School Board or= the Selectmen. Chief Roark said h= e had a brief discussion with Mr. Gaydos regarding the pros/cons in approaching t= he School District.&n= bsp; He had some concerns in that the SRO would be their employee and have control beyond what he may want to sacrifice in that respect. There was no formal warrant vs. operating budget discussion. = Mr. Hall said he reviewed the School District Budget and saw that there was a potential warrant article for the SRO.&nbs= p; Chief Roark said he hadn’t had a formal discussion. Mr. Lavallee commented that the in= surance package was not included in the information provided for the SRO. Mr. Farris noted that the payroll = was for nine month, not twelve months. =

Retirement – The estimate provided in the budget assumed = that the state wouldn’t fully fund retirement.

Selectmen – $5180 could be cut from the telephone budget.=

Senior Center – Mr. Gaydos said the Seni= or Center indicated, based on increased use, the bus driver was using more hou= rs than originally budgeted. The= y may request reconsideration if the amount was considerably higher.

There was a brief discuss= ion regarding the status of the expansion project. Mr. Sherman questioned if there wo= uld be a penalty if the building wasn’t completed on time. Mr. Gleason didn’t believe so. He said they were monitor= ing the status based on the list of values.&nb= sp;

Town Buildings – Ms. Diack asked if they could have more information (breakdown) regarding the ‘required computer accessories’ listed under Expenses for $8,459; it is the same number = as was listed last year. Mr. Gay= dos believed the number was derived based on what was being spent; there were several systems run within the Town and there were certain things unique to each of the departments.

Mr. Hall wanted to know i= f there was a more comfortable number for building repairs, rather than the $55,000 shown, since approximately $34,000 would be used. Mr. Gaydos said he would provide f= igures from this year (and 2009) to use as an example.

Town Celebrations – No questions/comments.

Town Clerk – No questions/comments.

Transfer Station – Mr. Dunne asked what the line item for cable was for. Mr. Gaydos sai= d the line item was for the internet.

Treasurer – No questions/comments.

Trust Funds – No questions/comments.

ACTION ITEMS – (ongoing)

· ~~Mr. Gaydos will confirm the Town is in compliance with the Payment Card Industry Data Security Systems by providin= g a copy of the e-mail confirmation and on-going security costs;~~ 9/16/10 Mr. Gay= dos informed that the Town paid nothing for the security because nothing went onto the Town’s computer. It was= set up like that so as to not have security problems. COMPLETE= D

· ~~Mr. Gaydos will review past budgets to fi= nd out where the cost for the cemetery flags had previously been placed~~; <= span style=3D'color:red'>COMPLETED

· Mr. Gaydos= will speak with the Highway Road Agent to find out the impact to the roads when Pennichuck fixed breaks in their water lines (specifically Vassar Drive); as of 9/16/10 Pennichuck is investi= gating the Town’s complaint on Vassar and why they take pieces of it up versus replacing the whole line. =

· ~~Mr. Gaydos will provide a list of all Tru= st Funds held by the Trustees;~~ 9/16/10 Mr. Gaydos provided the list as requested. COMPLETED

· ~~Mr. Gaydos will work with Mr. Greenwood to provide an inventory list of equipment indicating when it would need replac= ing – along with any back up requested;~~ COM= PLETED

· Mr. Greenwood would supply the balance amount figure;

· ~~Mr. Gaydos will find out what the bank fe= es and interest revenue year to date as compared to 2009;~~ 10/7/10 - There is $1,043.33= in bank fees. To date there has been = $ 6,107 of revenue. COMPLETED

·         Selectmen Viger will research to see if consolidating the phone system with all departments could help obtain a better rate;

·         ~~Library Trustee Fran Garboski to clarify = the trust funds. What money was t= aken out and for what use;~~ 10/7/10 Mr. Gleason said he had a conversation with the Trustee; there had been no expenditures of trusts for the library.&nb= sp; COMPLETED

·         Selectmen Rep. Vi= ger will find out what rate is given to a fire fighter du= ring workman compensation period in the event they were filling in a plus rate w= hen injured. =

·         ~~Fire Chief Midgley to provide the Board w= ith the cost estimate of two defibrillators~~. COMP= LETED

·         ~~Fire Chief Midgley to provide the Board w= ith back up information regarding the forestry truck, thermal imaging, rescue struts, boat, porta-tank and strategic planning.~~ COMPL= ETED

·         ~~Police Chief Roark to verify the salary f= or Patrolman 16 & 17~~. 9/30/10 Mr. Gay= dos stated there was an in advertent error in calculation; on the chart, a 10% raise w= as given rather than a 5% raise. New sheets will be provided to the Board. 10/7/10 Mr. Gaydos said there was a 13% increase was= due to the timing of the probation (one year…or 6mo. After completion of academy) and regular raise; they receive a step after probation and a step = on April 1^st. COMPLETED

·         ~~Police Chief Roark will check the figures= for the dispatcher salary~~. 9/30/10 Mr. Gaydos stated there was an incorrect ove= rtime rate used; corrected sheet will be provided. COMPLETED

·         ~~Police Chief Roark to provide numbers for what the School Resource Officer would cost in the budget~~. COMPLETED

·         Park & Recrea= tion Director Brian Johnson will check on the= life span of the batteries in the defibrillators and find out if new batteries n= eed to be purchased.

·         ~~Highway Agent Don Foss to provide an equipment list showing a potential replacement schedule.~~ COMPLETED <= o:p>

·         ~~Mr. Gaydos to get information on the state’s latest review of the Willow Street bridge status and how much was in the capital reserve fund~~.   10/7/10 information regarding the bridge inspection = was provided. Mr. Gaydos stated that the amount in the Willow Street Bridge Cap= ital Reserve was $124,402. COMPLETED

·         Highway Agent Don= Foss to draft an argument why the $219,000 for road repairs should be put back into the operating budget.

·         ~~Planning Director Jeff Gowan to provide a number showing how many violations were found during the year~~. COMPLETED

·         ~~Planning Director Jeff Gowan to provide an estimate for the replacement cost of the plan copier~~. COMPLETED

·         Planning Director= Jeff Gowan to provide backup regarding Munism= art maintenance.

·         Mr. Gaydos to provide the balance of the senior (voluntary) contribution fund, the senior/recreation impact fee fund ~~and the = fire impact fee fund~~. 10/7/10 Mr. Gaydos stated that the Fire Impac= t Fee balance was $313,688; some of the funds were coming up on six years he will provide the number for such and a schedule for returning the remaining bala= nce in the event a fire station was not built. <= /p>

·         ~~Transfer Station Superintendent Ron Hanno= n to provide last year’s revenue figures for tin cans, newspapers, cardboa= rd and plastic~~. COMPLETED=

·         Mr. Gaydos to find out what computer soft= ware was needed by the Cemetery Department to complete the plotting of graves. 10/7/10 Mr. Gaydos said he was asked to acquire a piece of software, which was an upgrade.&= nbsp; COMPLETED

·         Mr. Gaydos= to review the cellular plan and associated costs. = 10/7/10 Four people (Town Administrator, Park & Recreation Director, Planning Director and Finance Director) are on plans, there are no usage charges; the total cost of which is approximately $6100.= Mr. Gaydos will review the associa= ted department’s budgets to see if cellular use was included in their budgets.

·         ~~Mr. Gaydos will find out what the unfunded liability is for the compensated absence fund.~~ 10/7/10 Mr. Gaydos stated there was $61,592 in the C= apital Reserve; the unfunded liability is $550,242 COMPLETED

·         Mr. Gaydos will do a comparison (for the compensated abse= nce fund) between what the unfunded balance was, what was in the account and wh= at was anticipated to be used this year.

·         Mr. Gaydos to provide the number of what had been spent year-to-= date for Human Services.

·         ~~Mr. Gaydos to inform what had been spent = on the Historical Society building~~. 10/7/10 Mr. Gaydos stated in 2009 $15,300 was spent = and to date in 2010, $12,900 had been spent. COMPLETE= D

ADJOURNMENT

MOTION:

(Viger/Sherman= ) To adjourn the meeting.

VOTE:

(9-0-0) The motion carried.

The meeting was adjourned at approximately 9:12 pm.

            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =          Respectfully submitted,

            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =          Charity A. Landry Willis

            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =          Recording Secretary