| April 14, 2008 Meeting Minutes |
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City Council Meeting
Minutes
April 14, 2008
Non public session in accordance with RSA 91-A: 2, I (b) to discuss
collective bargaining/labor negotiations. .
City Council Chambers
7:00 p.m.
3. Pledge of Allegiance.
Action: Councilor Black moved approval of the March 10, 2008 meeting minutes. The motion was duly seconded and passed with no dissenting votes.
Councilor Nyhan moved approval of the March 17, 2008 meeting minutes. The motion was duly seconded and passed with no dissenting votes.
Action: Martin Jorgensen was not in attendance to receive the resolution.
Action: Abigail Sykas, Vice President of Development and Public Relations at Havenwood Heritage Heights thanked Council for inviting them to give this presentation this evening. She recognized the sponsors of the event noting that they have contributed significantly both in terms of their time and energy in making this event a success. Ms. Sykas indicated that this is the fifth year of the USI Championship, the fourth year at Beaver Meadow and one of the eighteen events played nationwide as part of the Duramed Futures Tour, the official developmental tour of the LPGA.
A 2 ½ minute video was displayed as part of the presentation.
Ms. Sykas explained that the USI Championship is the only professional golf event played in New England north of the Mass Pike. She pointed out some of the benefits to the city including: the total economic impact on the city over $300,000; over 3,500 individuals in attendance; and the city receives a significant amount of press both highlighting Beaver Meadow and the city. She noted that the money raised from the tournament does go to support the residents at Havenwood Heritage Heights who have outlived their own personal financial resources.
Michael Palmieri, President and CEO of Havenwood Heritage Heights, indicated that there is an enormous amount of social capital that is built and being built. He added that one of the critical elements of this tournament is that there are several hundred volunteers who come out to be a part of this. He indicated that momentum is continued to be built to create as much social capital as possible.
Councilor Nyhan inquired whether there are any local players involved. Ms. Sykas explained that it varies from year to year indicating that there are over 350 members of the tour and that only 144 ultimately commit to play in this event. She noted that the most local member is from North Andover, Massachusetts who played here last year and may be back again this year.
Mr. Palmieri added that they have the opportunity to invite an amateur within a fifty mile radius of this venue to come play with the pros. He indicated that this has been done over the last four years.
Mayor Pro Tem St. Hilaire noted that any interested Councilors or members of the community wishing to volunteer for this event should contact Abigail Sykas.
Consent Agenda
Items
Note: Items listed as pulled from the consent agenda will be discussed at the
end of the meeting following unfinished business.
Action: Councilor Lemieux moved approval of the consent agenda. The motion was duly seconded. Councilor Black indicated that he did not wish to remove item 10. The motion to approve the consent agenda passed with no dissenting votes.
Referral to the Planning Board
Referral to Community Development
Action: This item was not removed from the consent agenda.
Referral to the Parking Committee
Referral to the Energy & Environment Committee
Items Tabled for a May 12, 2008 Public Hearing
From the City Manager
Consent Reports
25. Report from the City Treasurer regarding the spring 2008 tax bill insert.
26. Report from the Parking Committee in response to a communication from TJ & Patty Chandonnet, 3 Shaw Street Penacook, requesting permission from the City to park at the end of Shaw Street, a dead end street within the City. (3-8)
Consent Resolutions
Consent Communications
Appointments
Mary Beth Robinson and Paula Miner
A. Resolution appropriating the sum of $100,000 for transfer to the 53rd week capital reserve fund account and designating FY2007 general fund balance as a tax stabilization reserve; together with report from the Deputy City Manager – Finance. (3-10)
Action: City Manager Tom Aspell provided a brief overview indicating that the Fiscal Policy Advisory Committee made a recommendation that $100,000 be allocated to a 53rd week reserve. He explained that every few years there is a 53rd week for pay and instead of this becoming due in one year, Council has decided to spread this out over several years.
Mayor Pro Tem St. Hilaire opened the public hearing. There being no public testimony, the Mayor Pro Tem declared the hearing closed.
B.
Resolution amending budget
resolution #8048 adopting the FY2008 budget
June 25, 2007 by reducing the use of prior year fund balance and reducing the
general fund transfer to the capital projects fund and reducing the capital
projects fund appropriations for highway CIP projects 78, 79 and 80. (3-11)
Action: City Manager Aspell provided a brief overview indicating that the Fiscal Policy Advisory Committee made a recommendation that within the 2007 tax stabilization reserve there would be a reduction in the designation of funds of $546,920 to $578,080 so as to increase the undesignated unreserved fund balance. He noted that this would achieve the City Council’s goal of the eight percent target. He indicated that this would be done by reducing the transfer from fund balance to various highway programs by $700,000. Referencing the March Council meeting, Mr. Aspell indicated that Councilor Lemieux had pulled item 56 to be considered at the same time or as part of this public hearing.
Councilor Lemieux moved that item 56 on the agenda be considered with this public hearing. The motion was duly seconded and passed with no dissenting votes.
Mayor Pro Tem St. Hilaire opened the public hearing. There being no public testimony, the Mayor Pro Tem declared the hearing closed.
C. Ordinance amending the Code of Ordinances, Title I, General Code; Chapter 1, Government Organization, by amending Schedule I of Article 1-5, Fees, Fines, and Penalties; together with report from the Finance Director .(3-12)
Action: Councilor McClure moved to consider public hearing D with this hearing. The motion was duly seconded and passed with no dissenting votes.
City Manager Aspell provided a brief overview explaining that primarily the fee changes are based on a three percent plus or minus increase with some notable exceptions.
Councilor McClure indicated that she had asked the City Manager what income the Finance Director projected these fee increases would bring in to the city and was told that is was between $75,000 to $100,000. She inquired whether the range was because of the uncertainty in the market. Mr. Aspell responded that many of the fees are based upon economic development activity and if this activity grows faster than expected then it would bring in more revenue and if it grows slower than expected it will bring in less revenue. He explained that these fees go to offset the city’s expenses so that the more the city has in fees to offset expenses the less that will have to be raised in tax revenue to cover some of the costs associated with providing these services. Referencing the report, Councilor McClure pointed out that there are no programmed projected or requested increases in the library fees because it has been found that the fees have gotten to a point where people simply stopped paying because the price is too much for them. She inquired whether there are other departments that staff is anticipating this to happen. Mr. Aspell indicated that it won’t occur in terms of necessary services that are needed but that this is more in terms of the penalties. He indicated that behaviors change such as in returning library books on time or not having as many false alarms therefore bringing in less revenue but indicating that the overall service is better. Councilor McClure pointed out that the fiscal goals call for revision of fees and fines bi-annually and this seems to be done every year inquiring whether there is any reason why this needs to be done every year. She noted that there is a lot of time spent on review by staff, administration and Council and wonders why this could not be done every two years. Mr. Aspell indicated that it could be explaining that the reason this has been done every year for the last few years is because of the increase of costs and the cost of living.
Referencing the special duty for the Police Department, Councilor Lemieux noted that it is his understanding that as a police officer approaches retirement, they load up on voluntary overtime to bump their annuity payments and inquired whether this is taken into account when staff determines the net overhead. Mr. Aspell responded that not in the sense that the city is calculating how much individuals will receive in retirement but from the sense that the city brings in additional revenue over and above the special duty costs that help offset the budget. He indicated that the rate this last year has been between $10,000 to $20,000 over what the city’s true costs are so in a way the costs are being offset.
Mayor Pro Tem St. Hilaire opened the public hearing. There being no public testimony, the Mayor Pro Tem declared the hearing closed.
D. Non-Ordinance Fee Increases. (3-13)
Action: Public hearing on this item taken with item C.
E. Ordinance amending the Code of Ordinances, Title IV, Zoning Code; Chapter 28, Zoning Ordinance; Article 28-2, Zoning Districts and Allowable Uses; Section 28-2-3, the Zoning Map; together with report from the Planning Board in response to a communication from Richard Uchida, Crisp, Barrett, Hebert & Uchida, PLLC, requesting the rezoning of a parcel of property on the corner of Hoit and Whitney Road in Penacook. (12-11) (3-14)
Action: City Manager Aspell provided a brief overview explaining that there is a parcel of property at the southeast corner at the intersection of Hoit and Whitney Roads that has been requested to be rezoned from industrial to urban commercial. He indicated that the individuals making the proposal have agreed to set a series of covenants therefore permitting uses to a maximum of 8,000 square feet of floor area per use and a total gross floor area of buildings that may be constructed in this CU District shall not exceed 50,000 square feet. He explained that essentially what this states is the property by Exit 17 at the corner of Whitney and Hoit Roads would be zoned commercial to allow a motorized commercial use meaning gas stations and retail use. Mr. Aspell indicated that the Planning Board has reviewed this and has made a recommendation to the Council unanimously that the property be rezoned.
Mayor Pro Tem St. Hilaire opened the public hearing.
Public Testimony
Maria Dolder, Crisp, Barrett & Uchida, stressed that the Planning Board unanimously voted for this rezoning application based on the covenants that were agreed to be set upon the property. She informed the Council that the covenants have been recorded at the registry and are limiting the use of the property to small scale convenience type retail facilities.
There being no further public testimony, the Mayor Pro Tem declared the hearing closed.
F. Ordinance amending the Code of Ordinances, Title IV, Zoning Code; Chapter 29, Subdivision Code; Chapter 29.2, Public Capital Facilities Impact Fees Ordinance; Section 29.2-1-3, Administration; together with report from the Assistant for Special Projects. (3-15)
Action: City Manager Aspell provided a brief overview explaining that several years ago when the City Council adopted impact fees it made three notable exceptions to this to try to encourage economic development: the Capital Commons site; Blue Cross/Blue Shield building; the Penacook Mill property. He indicated that Matt Walsh, Assistant for Special Projects, had submitted a report dated February 28th and has done an analysis and recommends that the properties for the Penacook Mill and the former Blue Cross/Blue Shield building be removed from the priority list. Referencing the former Blue Cross/Blue Shield building, Mr. Aspell explained that the project is completed and what the concern has been is that there are a number of non-tax paying entities in there and the city wants to make sure that is limited to a reasonable number so that impact fees are paid as the project proceeds. Referencing the Penacook Mill, he indicated that the city has invested a lot of money in there and now that the building is coming down there is a different set of economic development realities in place. He indicated that both property owners are in complete concurrence with this recommendation.
Councilor Blanchard inquired as to how much money the city has spent on the Sears Block project before Mr. Simchik ever broke ground for Capital Commons. Assistant for Special Projects Matt Walsh responded that his recollection is that the city purchased the property for approximately $250,000; the demolition and clean up was $365,000; and the city completed design of the project before Mr. Simchik started construction which was approximately $1 million with the total spent being approximately $1.6 million.
Mayor Pro Tem St. Hilaire opened the public hearing. There being no public
testimony, the Mayor declared the hearing closed.
G. Resolution appropriating the sum of $25,000 in city transportation impact fees for downtown bus shelter project, CIP #284; together with report from the Assistant for Special Projects.
Action: Assistant for Special Projects Matt Walsh provided an overview explaining that the city is involved with building a pair of bus shelters in downtown with one located in Eagle Square and another located at the intersection Park and North Main Streets. He indicated that the project originally had a budget of $89,000 funded eighty percent by the state and the city paying for the additional $17,800. He noted that there was a very lengthy public input and design process. Mr. Walsh explained that staff has prepared the design and the bid document and that the estimates for construction exceeds what the total budget is as available so what is being asked is an appropriation of an additional $25,000 in transportation impact fees to allow staff to proceed with bidding and construction of the project. Mr. Walsh stressed that if the Council did not want to appropriate the additional monies, under the grant agreement with the state the city would have to reimburse the state for money that they have given towards the design which is just over $14,000. He indicated that the recommendation is to appropriate the additional money, move forward with construction of at least one shelter and then evaluate whether or not to move forward with the Eagle Square shelter pending bids for construction.
Mayor Pro Tem St. Hilaire inquired that of the $14,000 the city would have to reimburse how much of this has been expended. Mr. Walsh responded that it has all been expended explaining that the cost for design is $34,000, the state has paid $14,000 and the city has put in $20,000.
Councilor Keach inquired, given the current economic situation, how is it known since bidding has not gone out that estimates are what are being projected. Mr. Walsh responded that the estimates are based on numbers developed by the city’s civil and structural engineer as well as the architect. He noted that a project that is this small is very hard to pin down as to what the construction industry will come back with especially in this case in which two custom aluminum structures are involved. He indicated that he asked for this amount just because of the degree of uncertainty. Councilor Keach inquired whether there is any opportunity to stay within budget by eliminating an ornate part. Mr. Walsh responded explaining that they are minimalistic structures and there is not the opportunity like a regular building to value engineer them.
Councilor Nyhan inquired as to the total cost of the shelters. Mr. Walsh responded that the construction of the two structures together is $113,000 plus the $34,000 into it. He indicated that what he is asking for is enough money to construct the Park Street shelter which is an estimated construction cost $65,700. Councilor Nyhan inquired as to the city’s total expenditure for the one bus stop. Mr. Walsh responded that it would be approximately $42,000.
Councilor Coen noted that he feels that the $34,000 fee for design was high for these structures. Mr. Walsh explained that there were a few reasons for this including that a lot of money had been expended going through many design processes to come up with two designs that would appease downtown merchants as well as the Council. He added that staff had brought this forth to Council which was discussed during two or three sessions to try to find something that would work for everybody. He explained that staff was originally going to place the Park Street shelter on the State House Plaza but there had been a lot of concern about the design in which it had been ultimately concluded that the city was uncomfortable with having it there because of possible obscurement of monuments that are at the plaza and ended up moving this shelter. He explained that there were numerous iterations for the Eagle Square shelter largely because merchants were concerned about having their store fronts blocked by a shelter. Mr. Walsh indicated that when a final concept for each location was decided upon, it became apparent that the city needed to expend additional money on property survey, structural engineering and civil engineering. He noted this was because instead of being within the limits on an existing sidewalk, the Park Street shelter ended up having to go out in the street with a bump out which required surveying to find out what was had for utilities and additional drainage which ended up being a very expensive process. Councilor Coen indicated that it appears that the design itself is one thing but another very expensive part was the engineering and actual site location. Councilor Coen questioned whether there was any way to copyright the designs. Mr. Walsh indicated that these are unique shelters that have been designed specifically for the city. He noted that if Council seriously wanted to pursue this, staff would look into it.
Councilor Nyhan pointed out that the city’s portion is $42,000 to build this shelter of which if Council doesn’t proceed, the city will have spent $34,000 in design and reimbursement to the state. He noted that $8,000 is being looked for to get a $72,000 shelter.
Councilor Lemieux noted that staff had indicated that there is $71,000 in state funds available and that the city has already been reimbursed $14,000 which leaves $57,000 on the table in state funds. He questioned whether all of this would be used by the city. Mr. Walsh responded that the state will only fund eighty percent of the construction so it would depend on what the bid came in at. He indicated that it is his suspicion that because of the way that the project has worked out overall with the extra design cost, the state will end up having a little extra money on the table and the city will end up putting in the difference.
Mayor Pro Tem St. Hilaire questioned whether what is being asked this evening is to appropriate $25,000 and if Council votes against this item then $14,000 would have to be reimbursed back to the state. Mr. Walsh indicated that to be correct. Mayor Pro Tem St. Hilaire indicated that in net the city would be spending $11,000 more if Council approves the resolution. Mr. Walsh indicated that to be correct.
City Manager Tom Aspell explained that this has been a 2 ½ year process of the Council being intimately involved in every design of this piece. He indicated that staff has gone back and forth to each downtown merchant to receive their feedback then coming back to Council and having the Council make decisions explaining that is where the $34,000 design cost is being seen versus what was originally envisioned.
Mayor Pro Tem St. Hilaire opened the public hearing. There being no public testimony, the Mayor declared the hearing closed.
April 14, 2008 Public Hearing Action
Action: Councilor McClure moved approval. The motion was duly seconded and passed with no dissenting votes.
Action: Councilor Nyhan moved approval. The motion was duly seconded and passed with no dissenting votes.
Councilor Lemieux moved approval of item 56 on the agenda. The motion was duly seconded and passed with no dissenting votes.
Action: Councilor Nyhan moved approval. The motion was duly seconded.
Councilor McClure inquired as to how the city compared to other public and private cemeteries in terms of fees. General Services Director Chip Chesley responded that the city is in the top half or top quarter.
Referencing Recreation fees, Councilor Blanchard inquired as to how much this will impact the registration fees for camp. Recreation Director David Gill responded that most of the camps are only going up between $4 to $8 for a week. He explained that a scholarship process is still offered and noted that the city is in the middle price range. Councilor Blanchard questioned whether it is felt that this will deprive children from going to camp. Mr. Gill responded that he did not feel this would deprive children.
City Manager Aspell questioned whether anyone has been turned away from signing up for any recreational program that Mr. Gill was aware of. Mr. Gill responded no.
Referencing suspense item 3, Councilor Stetson inquired as to the affect the fees will have to the Concord Babe Ruth. Mr. Gill responded that those fee increases had been approved last August by City Council. Mr. Gill explained that if Council refers suspense item 3 to the Recreation and Parks Advisory Committee they will take the communication under advisement. Councilor Stetson inquired how much the fees will be increased this year. Mr. Gill responded that they are not being increased this year.
Councilor Nyhan, Recreation and Parks Advisory Committee member, explained that there had been a subcommittee that had lengthy discussion regarding the fees and the different groups and as he recalled that there had been a consensus that for quite some time these groups had been enjoying fees far below the market rate. He indicated that this was more of a correction than it is a desire to generate revenue above and beyond what is expected of an organization.
There being no further Council discussion, the motion to approve passed with no dissenting votes.
Action: Councilor Nyhan moved approval. The motion was duly seconded and passed with no dissenting votes.
Action: Councilor Shurtleff moved approval. The motion was duly seconded.
Councilor Blanchard asked that Council receive better maps in the future.
The motion to approve passed with no dissenting votes.
Action: Councilor Nyhan moved approval. The motion was duly seconded.
Councilor Blanchard moved to leave the development of the tannery property open to negotiation as far as impact fees are concerned. The motion was duly seconded by Councilor Shurtleff.
City Manager Aspell explained that the purpose of this change is that being that the city is the landowner the city can negotiate anything with the value of the property in terms of who it is sold to. He indicated that the idea with the impact fees was because any type of use that occurs out there is going to create an impact on the traffic situation. He noted that the idea is to have the money to actually make the improvements that can then be used to offset the cost to the developers.
Councilor Shurtleff withdrew his second to the motion based on the City Manager’s explanation.
Councilor Coen seconded Councilor Blanchard’s motion.
Councilor Keach inquired whether making this move would put the city in a better position to negotiate with a potential buyer. Mr. Walsh responded that he feels that it puts the city in a stronger position.
Councilor Stetson questioned the status of fees for Capital Commons. Mr. Walsh responded that staff left Capital Commons within the ordinance because it has a long way to be completed.
Councilor Blanchard’s amendment to remove the tannery project from this ordinance failed on a voice vote.
The original motion to approve the ordinance passed on a voice vote.
Action: Councilor Coen moved approval of the resolution. The motion was duly seconded.
Councilor Nyhan indicated that this has been a long process in large because the Council has had so much input in the design elements. He noted his concern with spending this exuberant money on bus shelters further noting that if Council does not appropriate the additional dollars, $34,000 will have been spent for nothing. He indicated that it boils down for him is that the city spends $34,000 and receives nothing in return or spend an additional $11,000 and deliver a product to the citizens of Concord.
Following additional Council discussion, the motion passed 12 to 1 on a show of hands vote.
Reports
Action: Deputy City Manager – Finance Jim Howard provided a detailed overview. He indicated that other post employment retirement benefits (OPEB) along with the city’s present declining fiscal position, the continued difficulties associated funding the New Hampshire Retirement System and the current state of the economy will require the attention not only of the administration and the Council but employees, retirees and eventually the community at large. Mr. Howard explained that GASB 45 says that certain benefits must be portrayed in the city’s financial statements at the time they are accrued, regardless of when they are paid. He noted that what GASB 45 will not tell us is that the city must fund these post employment benefits but rather at this point it simply establishes the accounting and financing reporting requirements that reflect this obligation that the city is incurring; how a government finances or otherwise deals with these retirement obligations is a separate policy decision to be made by local officials. He indicated that GASB 45 reveals whether the costs of retirement or OPEB benefits are being deferred, placing cash-flow demands on taxpayers in the future; pay now or pay more later - has the city made promises or incurred obligations for the future that need to be disclosed or funded today; provides better information to financial report users (such as citizens and credit rating agencies) about unfunded OPEB liabilities. Mr. Howard explained that two of the main concepts that are being dealt with are Unfunded Actuarially Accrued Liability (UAAL) which is the amount of benefits to-date for both current and future (active employees) retirees; and Annual Required contribution (ARC) or amount required to meet the UAAL. He explained that both of these have two components to them: the implicit subsidy and explicit subsidy. The implicit subsidy arises from a state law that requires that local governments in the State of NH must allow retirees into the active employee group and benefit plans. He noted that healthcare costs increase with age and the portion of these higher costs earned today need to be accrued for today and everybody shares in these costs including the city, employees and retirees. He indicated that the explicit subsidy arose in December 1980 when the City Council approved a city paid post employment retiree program and that in calendar year 1981 the city PayGo cost was $28,206 for all retirees with no state subsidy to apply against this. Mr. Howard indicated that ten years later, after undergoing ten years of increases, it was obvious that there was a problem associated with this benefit and the city terminated this benefit for all persons hired after December 31, 1990. He noted that presently the city limits this subsidy for the retirees up to the amount that is paid for an active employee. He explained that the city hired an actuary as required in 2007 to begin the study and to determine what the city’s annual required contribution and unfunded accrued liability was. He pointed out that the 2008 budget includes PayGo costs (net of NHRS subsidy) all funds of $711,940. He indicated that the New Hampshire Retirement System presently subsidizes retiree health benefits and this subsidy will be depleted for various groups in the years that are indicated and will contribute to a fairly significant increase in the PayGo amount when this happens. Mr. Howard provided a summary of the city’s paid retiree benefit, explicit summary, the amount that the city pays on behalf of retirees. He explained that it applies for those employees hired by the city prior to December 31, 1990 and retiring from city service; that are age 62 (60 if employee retires with at least 35 years of full time service) or disabled as a result of city employment; retired directly from city employment with minimum of ten years service to the city; was enrolled at time of retirement in city plan and can maintain eligibility if continuously enrolled in another plan since retirement; must enroll in Medicare Part A and B to obtain supplement; the paid benefit limited to active employee amount; the city share is net of state subsidy (which presently grows at 8% annually. Mr. Howard indicated that at this point the only governments that are required to disclose this information in their financial statements are those that have over $100 million in revenues and the city is not included within this group therefore not having to disclose this in the FY08 financials but will have to disclose in the FY09 financials. He noted that what is known about this group is that they have funded approximately $11 billion of an estimated $381 billion across this group, roughly three percent of their obligation. He indicated that it is estimated on a per capita basis some states have a liability of roughly $200 per person; UAAL amounts range from 1/3 of to multiples of general fund budgets; ARC range from 30% to ten times PayGo amount; in NH, most towns and cities do not provide explicit subsidy; all entities have liability for implicit subsidy; NH School and County experience is unknown; state disclosed $2.9 billion in FY2007. In summary, Mr. Howard indicated that this is something that is going to be recognized in the city’s FY2009 CAFR and the forces at work and the risk with which we must contend are: the tax payers and tax burden (affordability); ability to maintain service levels; employees: paid retiree benefit eligible (pre-1991) and non-benefit eligible (post 1990); current and future retiree ‘obligation’; awareness of the city’s credit rating and cost of debt service. He noted that an option for dealing with this would involve developing some alternative funding mechanisms – trusts carry risk and cost but can reduce UAAL and ARC and benefit communications, re-design, funding levels, co-pays and retiree health promotion efforts. Mr. Howard explained that page three within the report identifies the actuarial accrued liability and the numbers as of July 1, 2006 was the most complete report that was available at the time the actuarial studies began. He noted that what the annual required contribution would dictate at this point is a citywide amount of $4.4 million as to what the city would have to appropriate today in order to be able to fund this accrued liability. He indicated that the city presently appropriated $700,000 for this liability which leads the city over $3.7 million short. He explained that the explicit liability that is a portion of $55 million is approximately $38 million or 69 percent of this liability; the implicit liability is approximately 31 percent or $17 million.
Councilor Shurtleff inquired whether this would include retired teachers as well. Mr. Howard responded that the implicit subsidy would apply to them but in talking to members of school administration it is their belief that they do not have an explicit liability adding that they have not done their study yet but are in the process of putting their request for proposal together to hire an actuary.
Councilor Coen, referencing if this is done this year, inquired as to what would be the obligation for each taxpayer. Mr. Howard responded that the total per capita is $1250 which would be the accrued liability divided by the number of people in the community. He explained that if a check was written this year it would be to get caught up to fund the unfunded accrued liability and then each year, part of the tax or water bill would include paying that subsequent years portion because it’s an obligation that goes on year after year.
Councilor Keach inquired as to the $770,000 that was paid this year. Mr. Howard explained that this was just the cash pay out of what the premium is indicating that it doesn’t recognize the potential future costs as the retirement system does in their calculations. Mr. Howard noted that one of the analyses that the city has begun to do on this is look at continuing to pay just on a pay as you go basis versus beginning to prefund. He noted that staying on a pay as you go basis will result in an additional net present value $12 million cost over a thirty year period so that if the city can begin to prefund this, the city can reduce the cost of it. Mr. Howard stressed that in ten years, if action is not taken now, the pay as you go cost will exceed the annual required contribution for the prefunding cost.
There being no further questions, Councilor Nyhan moved approval of the report.
The motion was duly seconded and passed with no dissenting votes.
Unfinished Business
Action:
This item was approved. Action on this item was
taken after the approval of item 49.
Action: This item remained on the table.
Comments, Requests by Mayor, City Councilors
Referencing a report on the consent agenda, Councilor Blanchard commended the Parking Committee for resolving the issue with the Chandonetts on Shaw Street, Penacook indicating that this seemed like a very reasonable and logical result.
Consideration of Suspense Items
Councilor Nyhan moved to consider suspense items that were not previously advertised. The motion was duly seconded and passed with no dissenting votes.
4 Sus1 To be set for a May 12, 2008
Public Hearing
Resolution appropriating the sum of $110,000
and authorizing the issuance of $110,000 in bonds and notes for emergency
repairs to the Penacook Wastewater Treatment system and reducing the
appropriation and borrowing previously authorized for construction of grit
removal system upgrades in the headworks area at the Hall Street Wastewater
Treatment Plant by the same amount; together with report from General Services.
Action: Councilor Nyhan moved to set this item for a May public hearing. The motion was duly seconded and passed with no dissenting votes.
4 Sus2 Street
closure request
Street closure request from the
New Hampshire Historical Society for their annual meeting to be held on Saturday
May 3, 2008.
Action: Councilor Nyhan moved approval subject to public safety and administrative requirements. The motion was duly seconded and passed with no dissenting votes.
4 Sus3 Referral to the Recreation and
Parks Advisory Committee
Communication from Fred Douglas, Concord Babe Ruth Baseball League,
requesting their annual fee for use of city fields be set at $500 per year.
Action: Councilor Stetson moved to refer this item to the Recreation and Parks Advisory Committee. The motion was duly seconded and passed with no dissenting votes.
4 Sus4 Referral to the Transportation
Policy Advisory Committee and the Police Department
Communication from Sarah Haines, 53 Alice Drive, requesting that the City take
action and implement additional measures to reduce speed in the Sandwood
Crossing, Meadow Brook Apartments area.
Action: Councilor Stetson moved to refer this item to the Transportation Policy Advisory Committee and the Police Department. The motion was duly seconded and passed with no dissenting votes.
Adjournment
The time being 9:00 p.m., Councilor Nyhan moved to recess the meeting and enter into non-public session in accordance with RSA 91-A: 2, I (b) to discuss collective bargaining/labor negotiations. The motion was duly seconded and passed on a roll call vote with Councilors Bennett, Black, Blanchard, Coen, Keach, Lemieux, McClure, Nyhan, Patten, Mayor Pro Tem St. Hilaire, Councilors Shurtleff and Werner voting yes. Councilor Stetson voted no.
Following their non-public session, Councilor Bennett moved to re-convene their Council meeting. The motion was duly seconded and passed unanimously.
Councilor Nyhan moved to seal the minutes of the meeting. The motion was duly seconded by Councilor Bennett and passed with one dissent vote by Councilor Stetson.
Councilor McClure moved to approve the UAW contract. The motion was duly seconded by Councilor Lemieux and passed with no dissenting votes.
Councilor Nyhan moved to reject the fact finders report. The motion was duly seconded by Councilor Blanchard and passed with no dissenting votes.
A true copy; I attest:
Michelle Tiffany
Deputy City Clerk