Select Board Meeting ~ July 12, 2016

2016-07-12 · Select Board · 1:08:29 · watch on YouTube →

A regular Select Board meeting with all five selectmen present, most of it given over to a joint session with the budget committee, including two new members. The administrator explained a large workers compensation overrun caused by an insurer's payroll audit that arrived in April, after town meeting, and walked new members through why the town takes a tax anticipation note each spring. The board authorised the administrator and public information technician to interview and select an assistant PIT, and accepted the town's response letter to the Bureau of Labor Standards following an inspection that produced a $550 fine, with a lockout and tagout policy still to be rewritten. The road commissioner reported the excavator cleats fitted, grinding on Rabbit Road starting Monday and progress on the bond-funded road project. The code enforcement officer explained that the planning board cannot hold informational discussions without a complete application, and the administrator told the board she is holding cheques already written until the town has cash to cover them.

What was discussed

1. 0:02
   Call to order and consent agenda

   The board returned from recess with all five members present. The agenda was amended to add an assistant public information technician discussion as item 7C. There was no public comment and the consent agenda was accepted as presented.

2. 0:02
   Joint session with the budget committee

   Six budget committee members attended. Chairman Jeff Wakeman introduced the selectmen and welcomed two new committee members, Mark Baron and Rick Evans, and opened the floor to questions on the budget.

3. 5:14
   Workers compensation overrun

   Asked why the figure was so far off, the administrator explained the insurer audits the previous year's payroll and sent a revised bill in April, after town meeting, that was significantly larger than expected. The overrun will have to be covered by underspending other lines rather than formally reducing them. She said she has checked next year's figures against the audit and believes the town is covered.

4. 5:14
   Election expenses and the sinkhole line

   Election expenses are at around 90% and payroll at 50%, largely because the voting booths were bought this year as a one-time cost, with more elections still to come in November. The $1,650 budgeted to repay the undesignated fund for the emergency sinkhole repair has not yet been transferred; the work is done and the transfer is usually made closer to year end.

5. 5:14
   Bond payments and the tax anticipation note

   A member asked whether the town would save by paying the fire station and Quint bond payments early. The administrator said the town does not have the cash: because of the calendar budget year, paying large amounts before tax money arrives would mean paying them with borrowed money. This year's tax anticipation note was taken in May at 0.89%, which she estimated at $200 to $250 in interest, plus about $1,500 in bond counsel fees to arrange it, so roughly $1,700 to $1,800 in total.

6. 10:39
   Why the town needs a note each spring

   For the benefit of new members, the board explained that Durham runs a calendar budget year but does not commit taxes until June, so expenses from January onward have to be met before revenue arrives. Changes in how school money came in, combined with heavy use of undesignated funds in the past, left the town without enough cash to bridge the gap, and it has taken tax anticipation notes for the past four or five years.

7. 10:39
   Rebuilding the undesignated fund

   The fund stood at about $800,000 on January 1 against a target the board put at somewhere near $1.5 million. It typically grows by $100,000 to $150,000 a year from unspent budgets and unused overlay, and last year suffered a setback of nearly $200,000 from an error in committing taxes. Members were told unspent money in the two largest departments rolls into those departments' capital funds rather than into undesignated funds, which is why the rebuild is slow.

8. 10:39
   What the overlay is for

   This year's overlay was $121,000, around 2 to 2.4%, rather than the 5% allowed. The administrator said the overlay exists to cover abatements and non-payment of taxes with a modest buffer, and that the state of the undesignated fund should not be a factor in setting it.

9. 16:03
   How abatements are accounted for

   There is no budgeted abatement line, so the abatement account currently shows about $2,000 in the red; at year end the auditors make a journal entry taking abatements out of the overlay, and the balance of the overlay goes into undesignated funds. A member suggested giving abatements their own expense line so it does not appear as a deficit in the administration budget, with the caveat that no figure could be set during budget season.

10. 16:03
    Costs of appeals

    Members asked where the year's appeals costs fall. Appellants are required to pay for certified postage and any advertising the town incurs, so a $72 newspaper notice is billed back and reimbursed. Appeals board members are unpaid; only the secretary is paid.

11. 21:10
    Workers compensation mechanics

    The bill is paid in four instalments, the first the largest. The administrator pays from her own budget first, then fire, then public works, which is why negatives appear in sequence. She estimated public works would end around $9,000 over, fire about $1,500 in the red and administration about $253 in the red. A claim last year will raise the town's modification next year.

12. 21:10
    Getting the audit earlier

    Members asked whether the payroll audit could be obtained before April so the figure could be built into the budget. The administrator said April is when MMA sends the bill but agreed to ask whether it could come two months earlier, and noted that if a confirmed figure arrived after the budget committee had finished, the number could still be changed on the town meeting floor.

13. 26:29
    How the estimate went wrong

    The payroll figures are due before December 31. They were submitted in the administrator's first three months, before public works had completed a full year, so the percentage assumed did not hold. She said she should have revised the numbers once the year was complete.

14. 26:29
    Timing of the budget season

    Budget committee members said the last two cycles felt rushed, with meetings starting only a week or so before they were needed and running to eleven at night. Asked for a target, they said the first or second week of February, avoiding the school vacation week. The selectmen acknowledged running behind for the 2015 and 2016 budgets and said they would try to do better.

15. 26:29
    How the budget is presented

    A member repeated an earlier request that next year's budget document drop the column showing what was originally requested and restore the column showing one additional year of expenditures.

16. 31:31
    Town office maintenance

    The administrator said $800 set aside to paint the building has largely gone on air conditioning and generator repairs, and she does not know how maintenance will be handled next year. A member suggested approaching high school students who need community volunteer hours to do painting, since the money was only for paint.

17. 31:31
    Road bond project progress

    Most culverts are done, ditching has started and trees have been cut, with grinding due to begin Monday. Members noted the new privy at Runaround Pond is in place and the new bridge is open.

18. 31:31
    Meeting again before budget season

    The budget committee asked to meet before February. The board set Tuesday December 6, when the committee will have figures through November 30. The administrator will also send quarterly reports routinely and a preliminary year-end sheet in early January; the books close December 31 and the audit is done in the first week of January.

19. 37:01
    Assistant public information technician

    The board discussed letting the administrator and the current PIT run the interviews and pick a candidate, bringing the choice back for final approval. One candidate had already been met that day and a second had expressed interest without applying; no closing date was set, so the posting stands until someone suitable is found.

20. 37:01
    Department of Labor inspection report

    The town received the inspector's report and a draft response letter was circulated. The road commissioner said he had spoken with an official at the Bureau of Labor Standards who told him to write the response as drafted and send it in, and who would want proof on the item carrying the fine.

21. 42:38
    The outstanding lockout and tagout item

    The only item not yet addressed is the lockout and tagout policy, which the town has but which is missing components and needs rewriting from the ground up. The road commissioner said he is waiting for the Bureau to tell him which of two standards to follow, hazardous energy control or lockout and tagout, which he described as the same thing under different titles. He expected to meet the August 30 abatement deadline.

22. 42:38
    Items already corrected

    An electrician fixed the electrical findings, a paintbrush stored in the freezer was removed, pressure was released from the oxygen and settling tanks, and 36 inches of clear space in front of the electrical panel has been painted solid yellow with placards to be fitted. Members noted the MMA Safety Works inspection had been about nine or ten months earlier, just outside the six month window that would have prevented this inspection.

23. 42:38
    The size of the fine

    The fine came to $550, which the Bureau official told the road commissioner was unusually low for a public works operation, where he said fines typically start at $3,000 to $4,000. Requesting a penalty discussion removes 90% of it. The official recommended the town move into the SHAPE programme afterwards to avoid a repeat.

24. 47:43
    Road commissioner's report

    The rubber cleats for the excavator came in at $6,900 and were fitted that day. Grinding on Rabbit Road starts Monday. Culverts have been set at the depth the ditch will be once the road is finished, so some look low, and a buried culvert was found under a driveway on Rabbit Road where a ditch had been filled in.

25. 47:43
    Working around residents

    The resident whose maples were cut has her firewood and is satisfied. She asked the crew not to work in front of her house for about a week because her dog was injured by fireworks; the commissioner said they would be as sensitive as they could without slowing the project, and that they would not reach that side for a week anyway.

26. 47:43
    Slip liner and other work

    The slip liner is still not in; the supplier is waiting on the product. If no price comes for the other culvert by Monday, the crew will do it themselves; the trees growing over it were cut that day. Work also waits on the cable company finishing a hookup so a trench can be backfilled, and shoulders are due to start.

27. 53:09
    Paving contractor turned away

    The paving crew arrived the previous Tuesday but was sent away because the road in question was not ready, with cross pipes still to install; they went to Lisbon instead. Bowie Hill is holding up well apart from damage from someone doing burnouts with studded tires.

28. 53:09
    Fire chief's report

    The chief, back after an absence, was congratulated on becoming president of a New England association and said he had little to report. On the concrete work in the fire station parking lot, he has three price quotes, still has calls to make, and noted the contractor being suggested was not the lowest priced, though price is not the only consideration.

29. 53:09
    Runaround Pond privy

    Members praised the workmanship, saying it was close to subdivision grade, and noted the crew worked to a state plan setting tank size and standards. A boat launch sign is expected to go up in the coming week. No toilet paper dispenser was included in the state design and the board agreed one must be added, with someone assigned to keep it stocked.

30. 58:15
    Mapping software

    The code enforcement officer reported he had installed his own commercially licensed Rhino 3D program on the town laptop to work with shape files, having found GIS good for holding information about space but poor for producing maps. He explained the licence permits installation on multiple machines but use by only one person at a time, that the vendor checks this over the internet, and that he will remove it when he leaves.

31. 58:15
    You cannot talk to the planning board without an application

    The code officer said residents have long come to the planning board for informational discussions, which is not permitted: the board is administrative and can only administer the ordinances, and cannot hear anything until it has found an application complete. He said he was raising it publicly so residents understand, and that submitting an application preserves every right of appeal, to the board of appeals, superior court and the law court.

32. 1:03:27
    Where residents should go first

    Asked where people should get the information they need, the code officer said they should come to him and he will help construct the application, and that if something cannot be resolved the planning board can explain what is missing or waive it. He said he will never refuse anyone an application, and that any denial he issues must come with a written finding citing what was not met, which is what preserves the applicant's rights on appeal.

33. 1:03:27
    Cash position

    The administrator said tax bills have gone out and payments are starting to come in, but the town is running short on cash, so she is holding cheques already written until there is money to cover them. She asked the board to be aware of it for when she next requests a tax anticipation note, and said one payment that cannot go past its due date would be hand-delivered.

34. 1:03:27
    Selectmen's comments and upcoming meetings

    Meetings were announced for July 26 and August 9 at 6:30 p.m. The chairman thanked Maine DOT and the contractors for their work on the new bridge, and thanked Josh Libby for representing the town at the bridge opening.

What was decided

• 0:02
  Amend the agenda to add an assistant public information technician discussion as item 7C.passed
• 0:02
  Accept the consent agenda as presented.passed
• 16:03
  A budget committee member proposed giving abatements their own expense line so the account does not show as a deficit. The administrator said she could do that but no conclusion is recorded on the tape.outcome unclear
• 21:10
  The administrator will ask MMA whether the workers compensation payroll audit can be provided earlier than April, so the figure can be built into the budget rather than arriving after town meeting.passed
• 26:29
  The budget committee asked to begin budget meetings by the first or second week of February, avoiding school vacation week. The selectmen said they would try but could not promise.outcome unclear
• 26:29
  A member repeated a request that next year's budget document drop the column showing the original request and restore a column of one additional year of expenditures. No agreement is recorded on the tape.outcome unclear
• 31:31
  The budget committee and selectmen will meet on Tuesday December 6, when figures through November 30 will be available. The administrator will send quarterly reports routinely and a preliminary year-end sheet in early January, before the audit.passed
• 37:01
  Allow the administrator and the public information technician to interview candidates and select an assistant PIT, with the selection brought back to the board for final approval.passed
• 47:43
  Accept the letter to the Bureau of Labor Standards as presented, to be signed by the board and sent by registered mail before the July 20 deadline, together with a request for a penalty discussion.passed
• 58:15
  A toilet paper dispenser will be added at the Runaround Pond privy, which the state design did not include, with someone assigned to keep it stocked.passed
• 1:03:27
  A motion to adjourn was made and seconded. The recording ends before any result is audible.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.

Motions the minutes record

The town's own written account of what was decided, taken from select_board_minutes_7-12-20161.txt. It owes nothing to the recording or to a model: the clerk typed it, with the vote. Where the summary above claims a decision this list does not carry, the summary is the part to doubt.

• the Board into Executive Session pursuant to Title #1, M.R.S.A., ss. 405(6)(A) – Personnel – Assistant to PIT Interview at 6:04 p.mcarried 5-0

  Moved by Jeffrey Wakeman, seconded by Joshua Libby

• the Board into Recess until 6:30 p.mcarried 5-0

  Moved by Jeffrey Wakeman, seconded by Sarah Hall

• Reconvene the Regular Selectmen's Meeting at 6:30 p.mcarried 5-0

  Moved by Jeffrey Wakeman, seconded by Joshua Libby

• Approve the Consent Agenda as presentedcarried 5-0

  Moved by Sarah Hall, seconded by Mark Blake

• the Board sign a letter requesting a Penalty Discussion and send letter to the Director, DOL Bureau of Labor Standardscarried 5-0

  Moved by Sarah Hall, seconded by Mark Blake

• Allow the Administrative Assistant and the PIT do do interviews and forward their recommendation to the Board of Selectmencarried 5-0

  Moved by Jeffrey Wakeman, seconded by Mark Blake

• Adjourn at 7:39 p.mcarried 5-0

  Moved by Joshua Libby, seconded by Mark Blake

Worth knowing

• 5:14
  The insurer's payroll audit for workers compensation arrived in April, after town meeting, with a bill significantly larger than budgeted. Several lines are already in the red and the overrun will have to be absorbed by underspending elsewhere. The town will ask whether the audit can be supplied earlier so the figure can go into the budget.
• 10:39
  The undesignated fund stood at about $800,000 on January 1 against a target of roughly $1.5 million, and grows only $100,000 to $150,000 a year, with a setback of nearly $200,000 last year from an error in committing taxes. As a result the town has taken a tax anticipation note for four or five years running; this year's cost about $250 in interest at 0.89% plus roughly $1,500 in bond counsel fees.
• 42:38
  The Department of Labor inspection produced a $550 fine, which the Bureau official told the road commissioner is unusually low for a public works operation where fines typically start at $3,000 to $4,000, and requesting a penalty discussion removes 90% of it. The only item still outstanding is the lockout and tagout policy, which must be abated by August 30.
• 58:15
  The code enforcement officer said residents cannot have an informational discussion with the planning board: it is an administrative body that cannot hear anything until it has found a complete application. He asked residents to come to him first, said he will help construct an application and will never refuse one, and that applying is what preserves the right of appeal.

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 11 decisions summarised.

Elsewhere

← 2016-06-28 Select Board2016-07-26 Select Board →All meetings