City Council Special Meeting/CIP Worksession
MINUTES
January 25, 2010
 City Council Chambers
7:00 p.m.

Non-public session in accordance with RSA 91-A: 2, I (b) to discuss collective bargaining strategies (union contract negotiations )to be held prior to the City Council meeting at 6:30 p.m. 

1.      Mayor Bouley called the meeting to order at 6:30 p.m. 

2.      Roll Call. Councilors Bennett, Blanchard, Mayor Bouley, Councilors Coen, DelloIacono, Grady, Shurtleff and Stetson were present.  Councilors Bouchard, Keach, McClure, Nyhan, Patten, St. Hilaire and Werner were late. 

Councilor Nyhan moved to enter non-public session in accordance with RSA 91-A: 2, I (b) to discuss collective bargaining strategies.  The motion was duly seconded and passed with no dissenting votes. 

Following Council discussion Council Nyhan moved to exit non-public session and seal the minutes.  The motion was duly seconded and passed with no dissenting votes. 

At 7:00 p.m. City Council began their recessed City Council meeting. 

Items Tabled for a February 8, 2010 Public Hearing 

3.      Resolution authorizing the City Manager to enter into a purchase and sales/development agreement with DEW Crescent Street Properties LLC concerning the sale and redevelopment of 4 Crescent Street, Penacook; together with report from the Assistant for Special Projects.     

4.      Resolution authorizing the City Manager to grant a sewer easement to DEW Crescent Street Properties LLC over city owned land known as the Walnut Street City Park, Tax Map P2, Block 1, Lot 2.

5.      Resolution appropriating the sum of $225,000 from the Economic Development Reserve Fund to support redevelopment of the former Allied Leather Tannery Complex.  

6.      Resolution appropriating the sum of $853,800 for Energy Efficiency and Conservation Strategy Improvements to various City Buildings and Facilities
CIP# 325 including the appropriation of $203,800 of American Reinvestment and Recovery Administration Funds administered by the US Department of Energy through the Energy Efficiency Community Block Grant program and authorizing the issuance of $650,000 in bonds and notes; together with report from the Deputy City Manager – Finance.  (To be submitted under separate cover)

Action:  Following a motion duly made and seconded items 3 – 6 were set for public hearing on February 8, 2010.

Comments, Requests by Mayor, City Councilors

Action:  There were no comments or requests.

Comments, Requests by the City Manager

Action:  There were no comments or requests.

Adjournment of City Council meeting

Action:  Councilor Stetson moved to adjourn the meeting and open the City Council Capital Budget Out Years Work Session.  The motion was duly seconded and passed on a voice vote.

The Mayor opened the CIP work session and recognized Tom Aspell, City Manager, who made some brief opening remarks.  He explained that the purpose of the work session was to review the so-called “out years” of the Capital Improvement Program (e.g. FY2011 – FY2015).  He also briefly discussed the purpose of the CIP and funding sources associated therewith.

Following the presentation, Assistant for Special Projects Matt Walsh led the Council through the discussion of the CIP by program category.

Airport:

Mr. Walsh reported that 11 projects are currently programmed in the out years.  The genesis of the majority of these projects was the 2006 Airport Master Plan.  He further explained that the cost of the majority of the airport projects within the CIP are funded as follows:  95% by Federal Government, 2.5% by State, 2.5% by City.  So, if a project hypothetically cost $1,000,000, the City’s share would be $25,000.

Mr. Walsh reminded Councilors that the airport is financially self supporting.  Thus, no capital projects are funded by the City’s General Fund and projects are only undertaken when the airport fund can afford to.

Mr. Walsh gave a brief overview of certain projects.  He also reported on the positive economic impacts the airport has on the city and surrounding region. 

A brief discussion ensued about the terminal building replacement project.  Mr. Walsh explained that the FAA does not view funding this project as a priority, due to other safety and maintenance priorities at the airport.  He explained that the City has approached the local congressional delegation seeking earmarks to help with the project without avail.

MOTION:  A motion to tentatively approve the category as presented was duly made and seconded.  The motion carried on a voice vote.

Arena:

Mr. Walsh briefly discussed the arena.  He noted that the facility is part of an enterprise fund, thus the facility is self supported for its operating and capital expenditures.  A brief discussion of CIP 64 ensued.  No changes were made.

MOTION:  A motion to tentatively approve the category as presented was duly made and seconded.  The motion carried on a voice vote.

Bridges:

Mr. Walsh briefly discussed the category.  He noted that five projects are currently programmed.  A long discussion ensued regarding CIP 22 (Sewalls Falls Bridge), including recent emergency repairs and the status of design and permitting.  The City Engineer noted that the NHDOT is currently conducting a cost / benefit study to determine whether preserving the existing 1930’s bridge is viable.  No changes were made.

MOTION:  A motion to tentatively approve the category as presented was duly made and seconded.  The motion carried on a voice vote.

Cemeteries:

Mr. Walsh provided a brief overview of the category.  No changes were made.

MOTION:  A motion to tentatively approve the category as presented was duly made and seconded.  The motion carried on a voice vote.

Community Planning:

Mr. Walsh provided a brief overview of the category.  He explained that the staff has proposed deleting projects 331 (Village Plans) and 437 (Community Facilities Studies) as they are either no longer relevant or can be completed using in-house resources.

MOTON:  A motion to delete CIP 331 and 437 was duly made and seconded.  The motion carried on a voice vote.

MOTION:  A motion to tentatively approve the category as amended was duly made and seconded.  The motion carried on a voice vote.

Downtown:

Mr. Walsh provided a brief overview of the category.  He explained that the genesis of CIP 97 (Low Avenue) was the 1997 downtown master plan and suggested that this project should be combined with CIP 460 (Downtown Streetscape Improvements).  Mr. Walsh also suggested that CIP 99 (Downtown River Access) be delayed to the out years, as this project will likely not advance until the I-93 Bow / Concord widening project moves forward.  He also noted that staff will likely attempt to expedite CIP 281 (Eagle Square Renovations) due to concerns over safety associated with deteriorating brick pavers.

MOTON:  A motion to move CIP 99 to FY 2015 was duly made and seconded.  The motion carried on a voice vote.

MOTION:  A motion to tentatively approve the category as amended was duly made and seconded.  The motion carried on a voice vote

Economic Development:

Mr. Walsh provided a brief overview of the category. 

He explained that CIP 43 (Garvins Falls Development) must be revised and broken into distinct phases, as well as further delayed to the out years.  

Mr. Walsh also briefly discussed the purpose of CIP 481.  He explained funds programmed in the project are used to allow the City to compensate a developer when they upgrade certain infrastructure installed as part of a private development project in order to accommodate future economic development activities at the City’s request.  He also explained that this is only used when the City has no regulatory authority to require a developer to make such an upgrade at its expense.    

Mr. Walsh also advised that CIP 508 will likely be revised to reflect anticipated activities at the Penacook Tannery site.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Fire Vehicles:

Mr. Walsh provided a brief overview of the category.  A lengthy discussion of CIP 4 (Fire Vehicles) occurred.  It was explained that the Department reviews its vehicle needs annually and revises CIP 4 as necessary.  No changes were made. 

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Golf:

Mr. Walsh presented the category and explained that the Golf Fund is an enterprise fund.  Thus, all golf expenditures – both capital and operating - are solely supported by the course.  He further explained that projects are only undertaken when the Fund can financially support such investments. 

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

General Services Vehicles:

Mr. Walsh provided a brief overview of the category.  A lengthy discussion of CIP 121 occurred.  It was explained that the General Services Department reviews its vehicle needs annually and revises CIP 121 as necessary.  No changes were made. 

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Information Technology:

Mr. Walsh provided a brief overview of the category.  A lengthy discussion of CIP 2 occurred.  It was noted that the City has been utilizing computer hardware longer than in the past.  A typical computer is now retained by the City for 5 years instead of 3.  It was noted that this is becoming problematic.  Discussion of certain operating platforms, including software packages such as MS Office and “open office” also occurred. A variety of hardware needs were discussed.   No changes were made.  Discussion of CIP 130 (City Hall Photocopier) and CIP 412 also occurred.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Intersections:

Mr. Walsh provided a brief overview of the category.  He noted that there are 9 projects currently programmed and that the City’s TPAC and TOC have been working to review and re-prioritize each project given available resources.  Thus, many of these projects will be reformulated and re-scheduled based on prioritization system.

MOTON:  A motion to move CIP 34 to FY 2015 was duly made and seconded.  The motion carried on a voice vote.

MOTION:  A motion to tentatively approve the category as amended was duly made and seconded.  The motion carried on a voice vote

Parking:

Mr. Walsh provided a brief overview of the category.  He noted that a full review of the parking fund is currently underway and that, given the condition of the fund, the ability to pursue capital projects is limited.  With that said, he emphasized that the proposed vehicle replacement scheduled in CIP 403 is a top priority for the Parking Division.

A brief discussion of the use of electronic kiosks to replace the existing manual meters ensued.  It was noted the cost to do the replacement – excluding decommissioning and removal of the existing meters - was approximately $570,000.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Parks and Open Space: 

Mr. Walsh provided a brief overview of the category.  He noted that the City’s RPAC will be working to prioritize park projects, as several projects have become back logged due to limited financial resources.  Mr. Walsh also noted that CIP 515 (Winter Recreation Opportunities at Beaver Meadow Golf Course) might be expedited to FY 2011, as a grant opportunity might be available to fund up to half of the project cost.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Public Buildings:

Mr. Walsh provided a brief overview of the category.  A brief discussion ensued regarding CIP 65 concerning $150,000 in FY11 for replacement of the City Hall heating system.  Mr. Walsh explained that this project has been delayed for several years, as the City has been waiting to see if Concord Steam will build a new steam plant on Langdon Avenue.  It has been anticipated that steam rates will drop if a new plant is constructed.

CIP 484 (Police Department Windows) was also discussed in detail.  Several Councilors expressed concern about the poor condition of these windows.  Deputy City Manager Howard suggested that the windows could be replaced using an energy bond being presented to City Council on February 8^th for public hearing.

CIP 510 (Human Services Improvements) was also discussed.  Councilors inquired about the length of the lease with the state of New Hampshire and expressed a desire to attempt to relocate the Human Services offices closer to City Hall.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Public Safety:

Mr. Walsh provided a brief overview of the category.  A brief discussion ensued regarding several projects, including CIP 252, 522, 521, and others.  No changes were made.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Sewer Collection:

Mr. Walsh provided a brief overview of the category.  He reiterated that the Sewer Fund is an enterprise fund.  Thus, all projects are solely supported by sewer rate payers.

No changes were made.

MOTION:  A motion to tentatively approve the category presented was duly made and seconded.  The motion carried on a voice vote.

Sewer Treatment:

Mr. Walsh provided a brief overview of the category.  He reiterated that the Sewer Fund is an enterprise fund.  Thus, all projects are solely supported by sewer rate payers.

A lengthy discussion ensued regarding CIP 89 (Hall Street Odor Control).  Discussion focused on schedule and decision points as the City continues to evaluate whether to invest more money into the project.  It was reiterated that it is impossible to guarantee that funds previously invested, or scheduled to be invested in the future, will reduce or eliminate the odor issues.

MOTION:  A motion to revise CIP 89 by expediting the FY13 and FY 14 scopes to FY11 and FY 12 was duly made and seconded.  The motion carried on a voice vote.

MOTION:  A motion to tentatively approve the category revised was duly made and seconded.  The motion carried on a voice vote.

Sidewalks and Streetscapes

Mr. Walsh provided a brief overview of the category.  It was noted that CIP 17 (Targeted Neighborhood Improvements) will likely be restructured to occur every other year, as the City does not have financial or staff resources to do the program annually.  First year of the rebuilt program will be 2012.

MOTION:  A motion to merge CIP 97 (Low Avenue Improvements) with CIP 460 (Downtown Streetscape Project) was duly made and seconded.  The motion carried on a voice vote.

MOTION:  A motion to tentatively approve the category revised was duly made and seconded.  The motion carried on a voice vote.

Solid Waste Management

Mr. Walsh provided a brief overview of the category.  Discussion ensued regarding the purpose of CIP 411 (Solid waste Master Plan).  It was explained that the purpose of the project was to help the City examine options for when the current contract with the incinerator expires within the next few years. 

MOTION:  A motion to delay CIP 411 to FY 2015 was duly made and seconded.  The motion carried on a voice vote.

MOTION:  A motion to tentatively approve the category revised was duly made and seconded.  The motion carried on a voice vote.

Storm Sewer:

Mr. Walsh provided a brief overview of the category.  Discussion ensued regarding the purpose of CIP 497 (Horseshoe Pond Drainage).    

MOTION:  A motion to tentatively approve the category was duly made and seconded.  The motion carried on a voice vote.

Street Corridor Improvements:

Mr. Walsh provided a brief overview of the category.  Discussion ensued regarding CIP 35 relative to scheduling of Village Street improvements in Downtown Penacook. 

MOTION:  A motion was made by Councilor Blanchard and seconded by Councilor Shurtleff to expedite the Downtown Penacook portion of CIP 35 from FY 2012 to FY 2011.  The motion failed on a voice vote.

MOTION:  A motion to tentatively approve the category was duly made and seconded.  The motion carried on a voice vote.

Street Rehabilitation:

Mr. Walsh provided a brief overview of the category.  A lengthy discussion ensued regarding the status of the City’s annual neighborhood road program and the ability to resume a regular 30 year maintenance program for each City street.  Councilor Nyhan asked when streets scheduled for repair in the south end during FY 2009, which were subsequently cancelled due to fiscal constraints, would be reprogrammed in the plan.  General Services committed to research his concern.  A broad discussion occurred regarding the fiscal challenges in the general, water, and waste water funds, which are inhibiting the City’s ability to transition from a “triage” approach to a routine maintenance program for all City streets.

MOTION:  A motion to tentatively approve the category was duly made and seconded.  The motion carried on a voice vote.

Streets New Construction:

Mr. Walsh provided a brief overview of the category.  A lengthy discussion ensued regarding the status of CIP 18.  It was noted that staff will likely push the project further into the out years, as it is directly tied to the schedule of the Bow / Concord I-93 project.  No changes were made.

MOTION:  A motion to tentatively approve the category was duly made and seconded.  The motion carried on a voice vote.

Water Distribution System:

Mr. Walsh provided a brief overview of the category.  No changes were made.

MOTION:  A motion to tentatively approve the category was duly made and seconded.  The motion carried on a voice vote.

Water Treatment:

Mr. Walsh provided a brief overview of the category.  No changes were made.

MOTION:  A motion to tentatively approve the category was duly made and seconded.  The motion carried on a voice vote.

Final Action:

Councilor Keach made a motion to expedite the Shawmut Street portion of CIP 83 to FY 2011.  The motion was duly seconded and passed on a voice vote.

A motion to finalize FY 2011 – 2015 of the CIP was duly made and seconded.  The motion carried on a voice vote.

The work session concluded at 10:40 PM.

Respectfully Submitted,

Matthew R. Walsh
Assistant for Special Projects