BC20111110

APPROVED

TOWN OF PELHAM

BUDGET COMM= ITTEE - MEETING MINUTES

Thursday, November 10, 2011<= /p>

APPROVED &#= 8211; January 12, 2012

CALL TO ORDER – 7:30pm

PRESENT:

Also Present:

Mr. Larry Hall, Mr. Dan= iel Guimond, Mr. John Lavallee, Mr. Dennis Viger, Mr. Gregory Farris, Mr. Rob= ert Sherman, Mr. Joe Puddister, Mr. David Cate, Mr. Ken Dunne, Selectmen Representative Edmund Gleason

Town Administrator Tom = Gaydos

ABSENT:

School Board Representa= tive Meghan Larson

PLEDGE OF ALLEGIANCE

MINUTES REVIEW

October 2= 0, 2011

MOTION:

(Lavallee/Sher= man)To approve the O= ctober 20, 2011 meeting minutes as written.

VOTE:

(7-0-3) The motion carried. Mr. Hal= l, Mr. Gleason and Mr. Dunne abstained.

2012 TOWN WARRANT REVIEW

Mr. Gaydos came forward t= o review the proposed 2012 Town Warrant Articles.&n= bsp; He said they were listed in no particular order and were labeled in letters.

ARTICLE C: Shall the Town vote = to change the purpose of the existing Library Renovation – ADA Expendable Trust Fund to include any construction/ renovation at the Library and to appoint the Library Trustees= as agents to expend. (This Article requires a 2/3 majority vote per RSA 35:16.= )

Mr. Viger questioned if t= he trustees had to come back to the Town’s people for the expenditure. Mr. Gaydos said if the article was approved, they wouldn’t have to come back to the Town’s people. Mr. Gleason noted that under the existing trust, the Library Trustees were the agents to expend. Mr. Viger asked for the account balance. Mr. Gleason said the Library Renovation was currently at $18,099.

ARTICLE D: Shall the Town vote = to raise and appropriate the sum of $210,000 for the purpose of purchasing a n= ew, fully equipped ambulance and to remove $87,440 plus interest to date from t= he Ambulance Capital Reserve Fund and close that account? The balance will be funded by withdrawing $90,000 from the Ambulance Replacement Revolving Acco= unt and $32,560 from the Federal Emergency Management Agency (FEMA) account. No funds will be raised through taxation. (Majority Vote Required)

Mr. Farris asked the diff= erence between a capital reserve fund and a replacement revolving account. Mr. Gaydos said they were set up b= y two different statutes. The Ambul= ance Capital Reserve Fund was money that was set aside to an account by the taxp= ayers. Subsequently the state allowed for towns to have revolving accounts, where a portion of revenues go into an account and can only be spent for a specific purpose as set out by the statute. Mr. Gaydos said a similar revolving account had been set up for the Recreation Department. He not= ed that the first $25,000 in ambulance revenues went into the ambulance revolving account for the sole purpose of replacing an ambulance. Mr. Farris asked why the account wasn’t called simply a fire vehicle replacement. Mr. Gaydos said the statute didn= 217;t allow it; it is very specific because of where the funds came from.

Mr. Viger asked if there = was a difference in the way the accounts were expended. Mr. Gaydos said the Selectmen were= the agents to expend both the revolving account and the FEMA account. Mr. Viger asked if the Selectmen c= ould expend the funds to purchase an ambulance.= Mr. Gaydos answered yes. He said the people would see how much money would go into the account and also= see the plan for replacement. Mr.= Viger said unless the account was discussed every year, the people wouldn’t know the account was there, or putting money into. He said with it being set up to ha= ve money put in automatically, the expenditure could also happen automatically. He was bothere= d that there wouldn’t be any checks and balances. Mr. Gleason noted that the account= could only be used for an ambulance because that’s how it was designated. He said the ambulance couldn’= ;t be purchased until enough money was accrued.&= nbsp; He said he’d have to check, but there may be a requirement to = hold a public hearing on it. Mr. G= aydos said the Capital Improvement Plan will show when these things were ready to= be replaced.

Mr. Sherman asked if the = old ambulance could be used to offset the cost for the new one. Mr. Gaydos said they would try to = get what they could for the vehicle; what they received would be used as a gene= ral revenue. Mr. Gleason said the= Chief would take what equipment he could use from the vehicle. He said the value would be minimal= . Mr. Sherman asked how many miles t= he vehicle had on it. Mr. Gaydos= said it wasn’t the miles, it was the hours that were important.

Mr. Farris said basically= the right of the voter is being taken away as to how to fund it. Mr. Gleason replied that the voter= s approved the revolving account with the purpose to accumulate money to purchase ambulances. Mr. Farris didn&#= 8217;t believe that people understood how the account worked when they voted it in.

There was a brief discuss= ion regarding the replacement schedule. Mr. Lavallee confirmed that the money in the fund wouldn’t be used until a new ambulance was needed. Mr. Gleason answered yes. Mr. Hall asked when the next repla= cement would be. Mr. Gaydos said 2019.

ARTICLE E: Shall the Town vote = to raise and appropriate the sum of $3,900,000 for the purpose of constructing= a fire station and to approve withdrawal of $2,100,000 of unassigned residual fund balance to offset this cost? Additionally, $423,393 will be withdrawn from the fire impact fee account, leaving a balance of $1,376,607 to be raised by taxation. (Majority Vote Required)

Mr. Viger asked what the = fire impact fee account was. Mr. G= aydos said when the Town passed the impact fee, so when every new house was built there was a fee based on square footage that went into the impact fee account.

Mr. Cate asked if the amo= unt specified was the maximum amount. Mr. Gaydos answered yes. He said the contract was set up as open book accounting. If the amount com= es in less, the taxpayers keep the difference.&n= bsp;

Mr. Lavallee asked what l= ast year’s number was. Mr. Gleason said last year’s number was $3.7 million, but the warrant for bond was $3.5 million. Mr. La= vallee asked if the Selectmen’s intent was to pay for the fire station in on= e year. Mr. Gleason answered yes; it was a= one year warrant article.

Mr. Farris said they had = always been told that the Town had to have a certain fund balance based on a formula. But now he’s f= ound out that’s not true, which was a surprise. He believed there was currently $2= .9 million in the Town fund balance. He said the Selectmen could have used that money to lower the tax rate over the last several years, while the economy was bad. Now they would take the money in t= he fund balance as well as ask to raise additional money. Mr. Farris pointed out that the Selectmen had the opportunity over the last several years to lower the tax = rate and off set some of the increases to the tax payer, but instead had let the balance build. He felt it was unfair to the taxpayer to do so. Mr. Gleason said the Selectmen had held a very austere budget since 2005 holding departments to zero growth. H= e said they were fortunate to build up a fund balance. Two years ago they offset taxes an= d last year the tax rate decreased. = Mr. Gleason said the state made recommendations on the fund balance to cover emergencies that may arise during the course of the year, but it was not mandatory.

Mr. Viger noted that the = School Board had also done a good job. A large part of the funding had come from the School Board and what they̵= 7;ve turned back year after year. = Mr. Viger asked how they would get a chance to use the funds to do something th= ey needed to do. Mr. Gleason sai= d the school wasn’t authorized to have a fund balance. Mr. Viger asked if the school coul= d go to the Selectmen and request money from the fund balance. Mr. Gaydos said they would have to= look at the rate because none of the money turned back by the school went back to the taxpayer; it was used to offset the following year’s cost. He explained how the Town handled = the fund balance.

Mr. Dunne asked if the wa= rrant article wording had to remain as it was, or if it could be amended. Mr. Gaydos said the statutes presc= ribed how the wording is to be crafted.

Mr. Sherman assumed that = the Selectmen would give a presentation similar to last year. Mr. Gaydos said there would be man= y more details this time; the contractor would provide a guaranteed maximum price.= Mr. Sherman asked if it included t= he removal of the old fire station. Mr. Gaydos understood that there was funding in the round about construction (t= hat would occur in the Town Center) if they rec= eived notice early enough.

Mr. Hall asked if the Boa= rd would have a plan of the station prior to voting. Mr. Gaydos said he would have Chief Midgley provide a plan to the Board.

Mr. Farris asked if there= were assurances that nothing would be changed on the plans in the event the contractor runs close to the not-to-exceed number. Mr. Gaydos answered yes. Mr. Farris asked if any overage wo= uld come from the contractor, not the plan.&nb= sp; Mr. Gleason said they would have a guaranteed maximum price that couldn’t be exceed. Mr. Farris wanted to know what assurances the taxpayer would have that the added money to the tax rate would only be for that one year. Mr. Gleason said the money would be raised through a warrant article; the problems that occurred with the elementary school was that the bond payment was included in the operating budget.

Mr. Hall asked if the Tow= n had the capacity to raise more impact fees.&nb= sp; Mr. Gaydos didn’t believe it would be a large amount. Mr. Gleason discussed impact fees = and the stipulations attached to how their raised and used.

ARTICLE F: Shall the Town vote = to approve a Department of Justice Community Oriented Policing Services (COPS) grant in the amount of $196,057 for the purpose of equipping and funding an additional police officer for three years with the condition the town must fully fund that officer in the fourth year? (Majority Vote Required)

Mr. Lavallee suggested ad= ding the word ‘only’ to the end of the paragraph “…the town must fully fund that officer in only the fourth year..”<= /span>

Mr. Cate asked if the fou= rth year costs were known. Mr. Gaydos answered no; the Police contract was currently up, and there would probably= be another contract up by that point. Mr. Cate asked if an approximate dollar figure could be included. The answer was no.

Mr. Sherman asked how the additional Police Officer would be used.&n= bsp; Mr. Gaydos said the officer would be used for patrol. It would cut down on overtime, but= would not guarantee minimum staffing. It was noted in the fourth year the officer would be included in the operation budget and the Budget Committee would make the decision if they wanted to f= und the position, or not.

Mr. Viger questioned if t= he $196,057 would have to be paid back if the officer wasn’t funded in t= he fourth year. Mr. Gaydos answered yes. Mr. Viger asked= if there were any other penalties. Mr. Gaydos wasn’t aware of any.

ARTICLE H: Shall the Town vote = to raise and appropriate the sum of $300,000 for repair, maintenance and upgra= ding of Town roads, to be offset by the State Grant for highway maintenance? This is a Special Warrant Article. (Majority Vote Required)

Mr. Gaydos noted that the $300,000 was a guess; this y= ear the Town would receive $305,000. The amount will be known by reconsideration, however during the past year the state adjusted the number when the Town went to set the tax rate.<= span style=3D'mso-spacerun:yes'>

Mr. Cate asked why the article didn’t say ‘= ;no funds would be raised through taxation’. Mr. Gaydos said the voters h= ad a choice of taking the money and putting it in the General Fund.

Mr. Dunne said since the number was unknown if the wor= ding should indicate an ‘approximate’ number. Mr. Gaydos said the state would pr= ovide a number and it would be added.

Mr. Viger asked if the Town received any state or fede= ral funding for the last storm. M= r. Gaydos said they were currently applying for it.

ARTICLE J: Shall the Town vote = to raise and appropriate the sum of $21,350 from the Raymond Park Capital Reserve for the purpose of for= est management, trail maintenance, security and other costs associated with the maintenance and care of Raymond Park? Funds requested come from the net revenues produced by timber harvesting. No portion of said amount to be raised by local taxes. This is a non-lapsing account per RSA 32:7. (Majority Vote Required= )

There was a brief discuss= ion regarding the work that needed to be done at the park.

ARTICLE L: Shall the Town vote = to approve cost items included in the three year collective bargaining agreeme= nt ratified by the Board of Selectmen and the Pelham Public Works and Municipal Employees, Local 1801 of the American Federation of State, County and Munic= ipal Employees (AFSCME), which calls for the following increases and benefits an= d to further raise and appropriate the sum of $59,766 to fund this year of the agreement? (Majority Vote Required)

YEAR &= nbsp; &nbs= p; COST &= nbsp; &nbs= p; &= nbsp; ACCUMULATED COST

2012 &nbs= p; $ 59,766

2013 &nbs= p; $ 38,476 &= nbsp; $ 98,242

2014 &nbs= p; $ 64,856 &= nbsp; &nbs= p; = $ 163,098

Mr. Gaydos said a majorit= y of the cost was medical benefits. Th= ere was a brief discussion regarding what changes had occurred and the associat= ed costs. He will provide the pl= an cost number to the Board as well as the first year costs for review. The agreement covers twenty-one employees.

ARTICLE M: Shall the Town vote = to raise and appropriate the sum of $25,000 to fund a professional study of ca= uses of frequent flooding of Beaver Brook and the neighborhoods, homes, roads, a= nd businesses in proximity to the brook? The study will identify those actions= the Town and State or both should take to reduce flooding and estimate the cost= s of these actions. It will also identify those actions of the Town or State whi= ch contribute to the flooding and which the Town or State or both should modif= y or stop. This study is to be pai= d from the Federal Emergency Management Agency ( FEMA) account and will have no im= pact on the tax rate. (Majority Vote Required)

Mr. Viger asked if the ar= ticle would extend the setback to wetlands from 50ft. to 100ft. Mr. Gaydos answered no; that would= be a zoning question. He believed = the purpose was to find a way to control the water to the north of Town so it c= ould be better managed as it flowed. Mr. Viger asked if this was part of the study done a few years ago when the Town had to do an inventory of where storm drains were located. Mr. Gaydos said that was the Storm= Water Management Plan that the Town had to comply with every year. That was a different program to determine if the Town was trapping storm water or allowing silt to wash into the rivers and streams. Mr. V= iger asked if the requested study could affect the way bridges are built in Town. Mr. Gaydos answered yes= . Mr. Viger asked if the state could= force the Town to remove the Ab= bott Street Bridge. Mr. Gaydos answered no; the study = was for the Selectmen, not the state. If there were any regulations to be passed the voters would vote on them. Mr. Viger wanted to kno= w if there would be a state or federal mandate that the Town would need to upgra= de crossings etc. Mr. Gaydos sai= d it may be a recommendation, but the Town may not do it.

Mr. Sherman asked if the = whole length of Beaver Brook would be examined.&= nbsp; Mr. Gaydos said it had yet to be defined. He said the Selectmen wanted to en= sure that they had a well defined goal for the study.

Mr. Gleason said the situ= ation was there were several residents in Town that were constantly under water e= very time there was a change. He s= aid the state changed the Mai= n Street Bridge without telling anyone and now the Town was seeing flooding. They were attempting to look at wh= at was causing the flooding and what could be done in the future to mitigate/corre= ct the situation. He said they a= lso knew that when dams were released toward the north, Pelham would experience flooding. Mr. Gleason noted t= hat the Army Corps of Engineers was working in Dracut/Lowell and the Town was trying to get them to take some action.&nb= sp; Senator Shaheen is going to try to intercede to get Pelham some help.

Mr. Dunne asked how much = is in the FEMA account. He wanted to know when FEMA Funds were received if they w= ere ‘ear marked’ for specific things, or one lump sum. Mr. Gaydos said it was a lump sum = put into the account and the Selectmen would expend the money as they saw fit.<= span style=3D'mso-spacerun:yes'> To date there was just under $100,= 000 in the account. Mr. Gleason said= the Selectmen tried to put the money back into FEMA related causes.

ARTICLE N; Shall the Town vote = to authorize the Selectmen to enter into a 3 year lease-purchase agreement for $14,004 for the purpose of obtaining a new Ford Focus to replace the current Planning Department vehicle and to further raise and appropriate the sum of $4,668 for the first year’s payment for that purpose? This agreement = will have a n0n-appropriation and non-replacement clause as prescribed by state statute. The current Planning vehicle has over 150,000 miles and will not p= ass inspection. (Majority Vote Required)

Mr. Farris asked if the $= 14,000 included interest. Mr. Gaydos answered yes.

Mr. Dunne asked when the inspection sticker was due for the current vehicle. Mr. Gaydos said it was due in April.

Mr. Hall asked if there w= ere any thought to put it in the budget. Mr. Gleason said they would love to put the payments into the budget.

ADJOURNMENT

MOTION:

(Lavallee/Sher= man) To adjourn the meeting.

VOTE:

(10-0-0) The motion carried.

The meeting was adjourned at approximately 9:10 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