Budget Committee Meeting ~ August 1, 2022

2022-08-01 · Budget Committee · 1:22:45 · watch on YouTube →

A special Budget Committee meeting called because a special town meeting had been scheduled for 16 August. No written minutes accompanied this recording, so speaker names below carry the (?) marker where they are inferred from context. The committee introduced two new members and re-elected Milt Simon chair and Jill Gaston vice chair; seven of the eight current members were present, with a ninth seat vacant since a member retired and awaiting a select board appointment. It then took the four warrant articles in order, all appropriations from the town's ARPA funds: $23,230 for cooling at the fire station, $34,500 for heating, cooling, a water heater and insulation at the town office, $45,000 for communication and information technology upgrades across three buildings, and $16,000 for GIS tax mapping. Together they come to $118,730, about 28 percent of the town's ARPA money, and the committee's role was limited to voting the select board's figures up or down rather than changing them. Only the town office article has a plainly stated result on the recording, where the vote is called unanimous; on the other three the chair calls for and against and the recording moves on without an audible result.

No written minutes could be matched to this meeting. The transcript records that the speaker changed but never who was speaking, so any name attached to a statement below is inferred from context and is marked (?).

What was discussed

1. 0:06
   Purpose of the meeting and introductions

   The chair opened at 6:35 p.m. and explained this was a special meeting prompted by the special town meeting set for 16 August, and that the committee had two new members. Members introduced themselves by name and road: Milt Simon, Neil Berry and John Talbot of Stackpole Road, Jane Rice of Bowie Hill, Heather Roy of Hallowell Road, Jill Gaston of Stackpole Road, and one further member whose name is not recoverable from the recording.

2. 0:06
   Election of chair and vice chair

   This was the first meeting since the town voted in the new members, so the committee elected officers for the year running through the next budget season to town election. Milt Simon was nominated for chair and Jill Gaston for vice chair; both accepted.

3. 0:06
   Quorum and the vacant seat

   Seven of the eight current members were present. The committee is one member short of nine following a retirement, and is waiting on the select board to appoint the ninth.

4. 0:06
   What the committee can and cannot do

   The chair reminded the room that the committee's votes are yes or no only: it cannot change the figures, and either approves what the select board has recommended or does not.

5. 0:06
   Article 3 read: fire station HVAC

   The article asks the town to appropriate $23,230 from coronavirus local fiscal recovery funds, known as ARPA, for HVAC work at the fire station.

6. 0:06
   The fire chief on why the work is needed

   The fire chief said the issue started about eight months ago when the station lost heat, prompting a look at heat pumps for both heating and cooling. The station has no cooling at all; the last addition was 20 years ago with no ductwork, though there is a mezzanine or attic space that would take ducts.

7. 5:11
   The station as a cooling and reunification centre

   The station is the school's reunification centre, so children could have to come there in an emergency in any hot month. What used to be a volunteer service now has three or four people at the station daily for up to twelve hours; all the offices except the chief's are internal with no windows, and the office manager reported hers at 80 degrees. A window unit on wheels runs 24 hours a day to hold the training room at 75, and the town website had been updated to say the station would be ready to cool during a heat advisory that Thursday.

8. 5:11
   What the quote actually covers

   The quote is for ducted cooling only, covering the office and training side, not the bays, which have four overhead gas-fed units. One of the two units in the HVAC room has already been replaced and upgraded; the second, over twenty years old, serves the hot water, and the chief said they could duct off the replaced unit if it fails.

9. 5:11
   How the quotes were obtained

   No separate engineering study was commissioned. All three bidders visited, measured radiators, square footage and ceiling heights, and identified which internal offices would need ducting through a wall, then each ran the numbers past its own supplier's engineer. A member questioned why the recommended unit sizes differed, with the bidders proposing a 24k, a 9k and an 18k unit for the same spaces.

10. 10:13
    Why the unit sizes differed

    The 9k option assumed open doors and natural airflow rather than ducting, and would have blown on someone at their desk all day, so the real choice was between 18k and 24k; the successful bidder rounded up because units come in those two sizes. The fire chief said he recused himself from the process, answering questions but leaving it to Calvin to run.

11. 10:13
    How it will be installed

    The condenser goes outside at the back near the tower, with lines through the wall, and the ductwork runs through the crawl space above the offices rather than through the steel-stud walls. Under the successful quote every office and the bathrooms are ducted, so doors can stay closed.

12. 10:13
    Who the contractor is and how the work was advertised

    The successful bidder is Agility, which the meeting placed in Minot. It answered the same advertisement as the others. The process was described as a request for quotes under the town's purchasing policy, run to be quick because of supply chain delays and delegated to Calvin so there was a consistent point of contact for both buildings.

13. 15:40
    Whether the two buildings can be separated

    Asked whether Agility's price was all or nothing across the two buildings, the manager said all the bids were itemised by facility and he had not asked about a discount, but that the economy of scale comes from doing two jobs in the same area rather than travelling for one. Agility has been told it is the responsible bidder, subject to final approval at the town meeting.

14. 15:40
    What ARPA funds are

    Members explained ARPA as COVID relief money for infrastructure, capital purchases and assistance to residents, which is not raised from taxpayers and does not mean a second property tax increase; one member described it as the town's own money coming back rather than free money. If all four articles pass the total is $118,730, which is 28 percent of the ARPA money the town has to spend, and the select board will be looking for ideas on the remaining 72 percent.

15. 15:40
    ARPA rules and the capital reserves

    The interim town manager produced the draft audit for the period ending 31 December 2021, showing the town's reserves. He warned that removing warrant articles already approved in March from the appropriations and substituting ARPA funds would be a violation of the ARPA rules, and argued the projects before the committee fit what ARPA is intended for.

16. 21:37
    What the reserve figures do and do not include

    A member asked whether the capital amounts approved at town meeting this year appear in the audit figures; they do not, because this fiscal year has not been audited and will be after 31 December. The truck bought this year comes out of those accounts.

17. 21:37
    What happens if an article is not approved

    A member said the select board had stated that if the article failed it would still make the expenditure and fund it from the capital account, and wanted to know the balance. The manager said he could not be as definite about that, and that the board would take the committee's recommendations at its 9 August meeting and decide sources then, adding that capital reserve money does not need fresh appropriation because it has already been appropriated.

18. 21:37
    The GIS article and tax billing

    The manager linked the technology articles to tax billing, saying the town's map systems are in very poor shape and that upgrading affects the quality of the tax bills going out in 2023 and 2024.

19. 21:37
    How capital reserves work

    Asked how capital funds can be spent without an appropriation, the manager explained that where an appropriation is not fully spent the remainder stays in capital reserve and is already available, and that grants can supplement. A member recalled the town meeting vote on whether unspent appropriations return to the general fund or stay in the account they were raised for.

20. 27:35
    Worked example of a reserve

    The manager gave the example of accumulating towards a million-dollar purchase over five years: if only $950,000 is spent, the remaining $50,000 either stays with that item for capital maintenance or is recaptured as undesignated capital for future projects. A member asked whether $40,000 voted into the fire rescue capital fund at the April 2021 town meeting appears in the figures, and was told the auditor treats it at year end.

21. 27:35
    Whether this is the committee's business tonight

    A member said the committee's job is to say yes or no on the four articles, that the citizens rather than the committee decide at town meeting, and that what the select board does with capital funds afterwards is two steps away. Others agreed and a motion on Article 3 followed.

22. 27:35
    How the $23,230 was arrived at

    A member said she had been confused leaving the select board meeting and had gone back and listened to the recording. Agility's bid was $44,419, of which $20,193 was applied to the fire department, rounded up to $20,200, with a further 15 percent added to reach $23,230.

23. 27:35
    If the work costs more or less than the appropriation

    Members noted that this applies to all four articles: any unspent balance goes back into the ARPA funds for other use, and if the appropriation is short another vote would be needed. Several thought going back for a second vote mid-job is theoretically right but not realistic, and that the 15 percent addition is intended to cover it.

24. 33:00
    Where coming back for more money would apply

    Members agreed the select board had been insistent that on the communications article specifically it would come back and request additional money if the work was underfunded, replacing what it could now and more later. It was clarified that unspent ARPA returns to the ARPA pool rather than to a reserve the board can then spend as it wishes.

25. 33:00
    Article 4 read: town office HVAC

    The article appropriates $34,500 of ARPA funds for HVAC work at the town office, covering two air conditioning units rather than heat pumps, gas furnaces, an 18-gallon electric hot water heater and insulation, with a five-year parts and labour warranty and two years of annual maintenance. The derivation was $22,526 from the bid plus $2,000 for the water heater and $5,000 for insulation, rounded to $30,000 with 15 percent added.

26. 33:00
    The building's long-term future

    A member asked whether the plans for the building are settled before money is spent on it. The answer was that the select board's long-run intention has been to turn this meeting room into office space and move meetings to the Eureka Center, but there are no firm numbers for upgrading the Eureka Center. Three people are at times crammed into a back room roughly eight feet by ten.

27. 38:48
    Whether the ductwork suits the reconfigured space

    The manager said the ducting would serve the office space that would be created here, describing a movable wall with a hard map and public computer access on one side and offices on the other to relieve the congestion. He said the insulation should buy the town enough time to decide where it will be at its next level of population growth, the town standing at about 4,100 people.

28. 38:48
    Running costs and Efficiency Maine

    A member said she had asked how the monthly running costs of the different systems compared and had not been given those figures, and that the bill falls on the annual budget rather than on ARPA. She argued the town should seek quotes from Efficiency Maine approved contractors so that grants, such as one available for lighting, stay open to it. The counter was that the heating and cooling load on the same building is unchanged and should improve with insulation, and that the town cannot solicit quotes because they must come in response to the advertisement.

29. 44:34
    The manager's answer on grants and procurement

    The manager said the committee is a review body for the budget presentation rather than a procurement group. He said Efficiency Maine grants are around 50 percent reimbursement, that the application would take a long time with no guarantee of approval or timing, and that the Samsung units proposed are efficient, dependable and come with two years of maintenance. His argument was that the priority had been getting into the queue for equipment; the summer was already lost, but getting the heating settled would show in future monthly figures.

30. 44:34
    Article 5 read: communication and IT upgrades

    The article appropriates $45,000 of ARPA funds for communication and information technology upgrades for the town office, the public works building and the fire station.

31. 44:34
    Whether to replace all the computers at once

    A member questioned replacing every computer regardless of age and suggested replacing the oldest first over the next two years, so that the town is not facing sixteen replacements at once again in five years. Devin Garneau (?) said most of the machines were bought at the same time or to similar specification, with the newest about three years old and the oldest five to six.

32. 44:34
    What can be scaled back

    Devin (?) said the phone and internet upgrade can be covered fully by this money, and that the computer element is easy to scale back, doing fifteen rather than eighteen if necessary, so the work can come in under budget.

33. 50:19
    Monthly cost of the phone and internet change

    The change will cost $238.62 a month more than the town currently pays for phone and internet across all three buildings. The existing system is failing, hard to hear on, and has poor voicemail, which members said causes customer frustration.

34. 50:19
    Cable franchise fees

    The town has a history of using cable franchise fees to cover telecommunications costs, and receives roughly $43,000. Members expect that to be cut or lost in the coming Comcast negotiation, with the argument being that ARPA came along at the right time to fund the investment instead. Consolidated Communications fibre is being run around town, with others expected, so the network will diversify.

35. 55:58
    The town channel and streaming

    Members were told the Durham channel continues and meetings will still be streamed live, with the YouTube channel for later viewing. A full new setup, adding YouTube streaming alongside the TV channel, waits on the new internet because the current connection is not fast enough. Connecting the Eureka Center is not in this $45,000 because the select board did not have quotes or enough information, and may come back at the April town meeting still using ARPA funds.

36. 55:58
    How the $45,000 breaks down

    The components given were $5,000 for firewalls, $2,500 to upgrade the phone and internet system, an allowance for as many computers as possible, and $8,000 for BEK to install the software and set the machines up, said to total $39,500 before the select board rounded it to $45,000; the individual figures as spoken do not add to that total. Per machine the cost was put at about $1,500 plus a $500 BEK setup fee, and BEK's rough estimate to replace every computer including its own fees was around $43,000.

37. 1:01:05
    Objection that the case was pitched wrongly

    A member argued that the need is speed and security rather than workstations, saying a five-year-old computer is not old in the real world and that the money should be spent on faster and more secure internet and on firewalls so the town's system cannot be corrupted or hacked. He said he had heard about laptops and phones but nothing about the internal systems that run the town.

38. 1:01:05
    Response on security

    Joe (?) said the security safeguards come with the upgraded equipment and had simply not been pitched as a selling point, but agreed they are the important part. He described desktop security, more secure access from the back office, voicemail reachable from computers, and replacing an analogue system at the back with a digital one. Municipalities generally stay within a three-year technology cycle, so the town is behind. A member recalled the town's email being hacked, which cost the town money.

39. 1:07:05
    Access to meetings

    A member said she had filmed and streamed meetings herself at multiple points because the town lacked the capacity, and that the upgrade should change that. She pointed to problems between March and May with recording and streaming, including the budget meetings, and to a member being unable to find a record of an earlier meeting.

40. 1:07:05
    Trio

    Asked whether a new server for Trio is included, Devin (?) said no and that he has had no training on it. Trio is the backbone of the town's accounting, taxing and information systems and has no server of its own, running on the town manager's and the treasurer's computers, with an annual software fee. The committee was told BEK had confirmed Trio does not itself need upgrading as a result of the computer replacement, but whether it is cloud-based was not settled on the recording.

41. 1:12:14
    Article 6 read: GIS tax mapping

    The article appropriates $16,000 of ARPA funds for GIS tax mapping work. This covers creating and digitising all of the town's maps plus two years of subscription in one package, after which a subscription line of about $3,000 a year would appear, expected from around FY25.

42. 1:12:14
    What GIS mapping would give the town

    The system is built in layers, with tax billing on top of the base map and further layers added by query. Members asked whether it ties into the resource protection mapping the town planner has already done; the answer was that the planner used free software too basic for a member of the public or a realtor to draw information from, which is why the town office takes those calls. Realtors, buyers and sellers were named as the primary users, and the material would be available online for reading but not editing.

43. 1:17:41
    Comparable towns and why the change is being made

    Norway was given as the town to look at, using the same consultant and the same layer the town would get, with Naples, Bridgton and Gray also mentioned. The reason for moving now is that the town's maps are still drawn and edited by hand by an elderly mapper who committee members said is ill; the assessor had told one member during the last budget season that the town had to move to GIS. The manager qualified that Durham is not quite the last town in the state doing it this way, as some very small towns and unorganised territories still use hand-drawn maps.

44. 1:17:41
    Whether the work had already been funded

    A member noted the town planner had raised GIS mapping during the budget meetings as part of the justification for increased hours, and that she had checked whether it had already been allocated, since ARPA funds cannot be used for something already appropriated. The answer was that his request did not cover tax mapping and was not granted.

What was decided

• 0:06
  Milt Simon continues as chair of the budget committee for the coming year. The chair called for and against and noted one abstention; no result is announced on the recording, but he accepted the nomination and chaired the rest of the meeting.passed
• 0:06
  Jill Gaston continues as vice chair of the budget committee. The tally as spoken is "seven one", which the recording leaves ambiguous between seven to one and seven in favour with one member not voting.passed
• 27:35
  Recommend Article 3, appropriating $23,230 from ARPA funds for HVAC work, specifically cooling, at the fire station. The motion was made and seconded and the chair called for and against, but the recording does not carry an audible result before he moves to Article 4.outcome unclear
• 44:34
  Recommend Article 4, appropriating $34,500 from ARPA funds for HVAC work, heating and cooling, at the town office. The chair states the vote is unanimous.passed
• 1:12:14
  Recommend Article 5, appropriating $45,000 from ARPA funds for communication and information technology upgrades at the town office, public works and fire station buildings. The motion was made and seconded and the chair called for and against, but no result is audible before the discussion moves on.outcome unclear
• 1:17:41
  Recommend Article 6, appropriating $16,000 from ARPA funds for GIS tax mapping work. The motion was made and seconded and the chair called for and against, but the recording ends in cross-talk with no result stated.outcome unclear

An outcome reads "unclear" where the recording does not state it plainly. The recogniser drops short words, and "the motion does not carry" is one missing word from its opposite.

Worth knowing

• 15:40
  The four articles together come to $118,730, about 28 percent of the ARPA money the town has to spend; the select board will be seeking ideas on the other 72 percent. The manager warned that substituting ARPA funds for warrant articles already appropriated in March would breach the ARPA rules.
• 27:35
  The select board added a 15 percent margin to each figure. The fire station's $20,200 share of Agility's $44,419 bid became $23,230, and the town office's $30,000 became $34,500. Anything unspent goes back into the ARPA pool, and members doubted a second special town meeting to top up an underfunded job would be realistic mid-project.
• 50:19
  The phone and internet upgrade will cost $238.62 a month more than the town pays now across all three buildings. At the same time the town expects the roughly $43,000 a year it receives in cable franchise fees, which it has historically used to cover telecommunications, to be reduced or lost in the coming Comcast negotiation.
• 1:01:05
  A member objected that the technology article had been sold as replacing workstations when the real need is speed and security, saying a five-year-old computer is not old and the money should go to firewalls and protection against hacking. A select board member agreed the security case had not been made, and it was noted the town's email had been hacked before at a cost to the town.

Motion language found in the transcript

Located by pattern matching, with no model involved: "I move that", "I'll second", "all those in favour". This is an independent check on the summary above: 2 passages of motion language, against 6 decisions summarised.

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