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Chris Doloff (BFD), Chief Skantze (BFD), and a variety of on

lookers were present.

The Chairman called the meeting to order at 6:59 p.m., and the meeting

was video taped for LRPA.

Minutes of December 17, 2007

Dorcas Gordon made the motion to accept the minutes of December 17, 2007. Catherine Pitari seconded the motion. Chairman Auger asked for discussion, omissions, or changes to the minutes of December 17, 2007. Dorcas Gordon stated her name was incorrectly spelled on pages 10 and 12, and would like the “n” removed from her last name just before the “d” in each instance. The minutes of December 17, 2007 were accepted with the above amendments. MOTION CARRIED.

Pay and Classification Study-Local Government Center

Chairman Auger asked that Donetta Haley of the Local Government Center give her presentation to the Budget Committee. Ms. Haley handed out a book containing information pertaining to the Pay and Classification Study. Ms. Haley stated the LGC did a pay study on 44 jobs within the Town of Bristol. Ms. Haley explained employees were given a questionnaire to fill out, these were approved by the supervisor then analyzed by the LGC who wrote job descriptions. These job descriptions were then sent back to the supervisors for approval, and then they came back to LGC where the heavy work began on these jobs within the market. The study was conducted with the concerns of internal and external equity.

Pay and Classification Study Continued

Ms. Haley stated the external equity refers to the competitiveness of the labor market who draws from Bristol helping to attract and retain the employees who are valuable to the community. Some of the factors considered were the Geographic Location, Equalized Valuation, Population, and Town Operations. The LGC then came up with 22 labor grades, and each job was then placed into the labor grades.

Town Manager Corrow stated the department heads also submitted information pertaining to their department specifics by comparing to other towns that were similar to their departments and stated why they were similar such as calls for service, size of budgets, population, and a variety of other things. Ms. Corrow stated she then reviewed the information along with the Board of Selectmen, and then it was reviewed by the Local Government Center. Ms. Corrow stated during that process a few communities were scratched from the list as it was felt the were not similar enough. Ms. Haley stated that is correct, if we saw a number that was way out of whack we eliminated that community as a comparable community.

Ms. Corrow stated once those communities were eliminated they were able to come up with a range, and the positions were placed within the ranges. Ms. Corrow stated things that were considered during this process including number of years in the position, experience, level of education, and in some instances' performance looking at both the high and low ends of performance. Ms. Corrow stated for the most part it was number of years in the position and level of education that determined the majority of the placements.

Chairman Auger stated when looking at the towns selected for the study he found that six (6) of the communities had well over a billion dollars in tax base as compared to Bristol which has a tax base of $530 million. Mr. Auger stated he was wondering how the rational came about when these communities have four (4) and a half (1/2) times more of a tax base than Bristol has? Mr. Auger stated an example would be the Town of Moultonborough who has $2.76 billion as a tax base. Mr. Auger would like to hear a rational for this. Ms. Haley stated with Moultonborough a couple of factors were looked at such as the similarities in town operations, and the population would swell seasonally.

Chairman Auger stated Meredith has $1.8 billion in a tax base, they also have a lake and a seasonal population, but their tax base is considerably different from the Town of Bristol can you give a rational for this? Ms. Haley stated again the same factors were considered when looking at Meredith. Mr. Auger stated Gilford has a $1.6 billion tax base, Alton $1.5 billion, Wolfeboro $1.5 billion, and a little town such as Sunapee $1 billion. Mr. Auger stated there seems to be issues regarding the numbers of population. Mr. Auger stated Bristol’s population is about 3,000 while the others we just spoke about are all over 4,000 and as high a 7,300 per capital income. In a list of fifteen (15) towns Bristol is somewhere down around ten (10) per capita income of $38,000 while the others are well above that.

Pay and Classification Study Continued

Chairman Auger asked why these towns were the valued choices? Ms. Haley stated she does not believe per capita income was looked at in making any of the choices. Mr. Auger asked if the capital income should have been considered when putting the study together? Ms. Haley stated in some instances. Mr. Auger stated it seems that these things should have been looked at, giving someone a pay increase of say $7.00 per hour is hard to take when presenting this to taxpayers. Mr. Auger commented he is not saying it is right or wrong, but it seems to be a lot at once.

Town Manager Corrow stated it was extremely difficult to find towns with exactly the same population, valuation, and exactly the same geographically. Ms. Corrow continued saying they compared to the size of the department, what the department does, and what sort of things the department is doing. Moultonboro does have a much larger valuation than the Town of Bristol, but at the same time they are very comparable to Bristol throughout their departments. Mr. Auger stated he would agree with Ms. Corrow, but if one were to take averages within the communities he would guarantee that they could have come up with communities that would have come in with a foundation closer than those used. Mr. Auger stated we will be pretty hard pressed to sell this to taxpayers. Mr. Auger stated he certainly supports increasing salaries, but to level that taxpayers can afford. Mr. Auger stated he believes the community can no support such increases and that they must be extremely careful with what is presented to taxpayers. Richard Walenda stated may people are in a fixed income situation, and if we continue with the increases the Town of Bristol will be in bankruptcy.

Catherine Pitari asked if the job descriptions were comparable to the selected towns or were the written specifically for the Town of Bristol? Ms. Haley stated they were written specifically for the Town of Bristol. In doing that, they were compared to other towns. Dorcas Gordon stated lets not kill the messenger here explaining a lot does count on the ability to pay and where an individual is placed on the scale.

Town Manager Corrow stated pay studies are not an exact science it is a bit of an art and it really needs to be worked through to make it work. Ms. Corrow stated she feels they did a great job considering all the obstacles presented through the process, but it does not take a study to tell her that there is a problem with equity among the departments. Part of the equity issues came about as part of the separate commissions within the departments, and she feels when she seeks applicants for positions it is very difficult to obtain applicants who are qualified or capable of doing the job for the pay that is offered to them. It is difficult for not only the Town Manager, but the department heads also. Although, a pay classification study is expensive, the goal is to recruit good quality people, and retain them. Ms. Corrow stated a lot of work went into the study, and she really feels good about it feeling it should be implemented. Richard Walenda stated if you look at the Town Manager position or Department Head positions there is an increase in all of the positions. Chairman Auger stated to Mr. Walenda that most of the positions he is discussing are under contract, and the only increase visible is the 4% cost of living.

Pay and Classification Study Continued

Mr. Auger stated some of the Fire Department positions have a larger increase than the 4% . Chairman Auger stated asking for a $10,000 increase of the community is pretty significant. Mr. Auger stated maybe it could be spread out over time. Ms. Corrow stated explained she does not care what people think as much as she cares about doing what is right for the employee’s, and by doing this the community will benefit by having quality employees’. Ms. Corrow stated it could possibly be spread out over 10 years or more.

Paul Simard commented that he works outside municipal government and the turn over rates is much worse as is the pay.

Tom Winn stated the raises seem to be more or less around public safety positions. Mr. Winn stated these are viable positions, and when you look at what these individuals are actually paid verses the services they provide to the community we should be ashamed of ourselves.

Chairman Auger directed the Budget Committee members to look at the study itself getting back to the actual study. Jon Thouin ask how did each position arrive at the grades they were placed in? Ms. Haley explained they took the numbers averaging them out, using a percentage between the grades, and using the market data. Chairman Auger asked for her definition of market value? Ms. Haley stated the comparable data received from the department as well as other positions within the state. Mr. Thouin asked if the percentage between the grades had been structured prior to placing the positions within each grade? Town Manager Corrow explained it was not because it was the first time looking at individual job descriptions that was based on experience, etc., and then the marketing data was melded with that. The market in one instance was so low that a position was bumped up to the minimum wage for 2008.

Chairman Auger asked what were the factors determining grade level 14 and lets say grade level 15. Ms. Haley stated the market value, and the duties associated with the position. Ms. Haley stated what we did for the wage schedule was to give a range of pay scales throughout the study. Mr. Auger stated he would like to know how that mid range was determined? Ms. Haley stated it was take each job, looking at the numbers, and finding the mid range of each job. Ms. Haley stated they got the maximum, then determined the mid range, and then went to the minimum. Town Manager Corrow stated she did take the average, getting the maximum first, but did not go any lower than the minimum wage.

Paul Simard asked what Ms. Corrow’s recommendation was for the study? Mr. Simard wanted to know if her recommendation was the mid-range numbers? Ms. Corrow stated she has provided that information on a spread sheet for the budget committee to review. Chairman Auger asked that Ms. Corrow hold off on this possible implementation until later in the meeting.

Pay and Classification Study Continued

Tom Winn stated the numbers in population are really inaccurate based on the number of out of state people who come to the area during specific times of year, and he is uncertain how anyone can accurately project those numbers. Ms. Haley stated she was very impressed with the amount of information she received from Bristol while trying to put this study together. Ms. Haley stated a lot of work went into the study, and it was thoroughly done. Dave Carr asked why amount was budgeted for the cost of the study? Ms. Corrow stated $6,700, but the Town would not be paying for the study based on the time it had taken the LGC to get it done. Catherine Pitari asked if the Town Manager or Selectmen have played with the numbers and if so what impact will the wages have on the town? Chairman Auger stated that will be part of the discussion later in the meeting.

The Budget Committee took a two minute recess.

Police Building Committee

Chairman Auger asked for the spokesperson for the Police Building Committee to step forward to address the budget committee. Town Manager, Elizabeth Corrow addressed the Budget Committee relative to the Police Building.

Ms. Corrow stated last year the Police Building proposed at the Lake Street Auto site, the project cost was $2.6 million, and it was turned down. This year the committee went back to the drawing for board and came up with a proposal to use the “Old Town Hall” constructed in 1848 to create a “New Town Hall”. The current Town Hall could then be better utilized as a “New Police Building”. Ms. Corrow explained by doing this the town saves a lot of money. Ms. Corrow introduced Paul Mirski, Architect and Keith McBay from Bonnet, Page and Stone who is the project manager. Ms. Corrow explained that by retro fitting the existing Town Hall for the Police Station it would give them more than the adequate space needed by the department. She added that by renovating the Old Town Hall it will address space issues, issues with the vault storage, ADA issues, and a variety of other things that need to be taken care of. Ms. Corrow stated at a cost much lower than the originally projected $2.6 million for the Lake Auto site.

Ms. Corrow stated most of the costs will be associated with renovating the old Town Hall, but we will be saving a building and creating more than adequate space for town offices. At the same time, the Police Department needs will be met by adding and removing a few walls within the current structure. The cost of new construction far out weights the cost of this project that makes sense to her. Ms. Corrow stated she then contacted Keith McBay at Bonnet, Page, and Stone to look at the project. Ms. Corrow stated by using a project manager everything can be bid out verses getting individual businesses to come in give us a figure and then being hit with inflation costs. So we interview a number of firms, hired Mr. Mirski, and Bonnet, Page, and Stone. Chairman Auger asked at what cost? Ms. Corrow stated we are not paying Bonnet, Page, and Stone a cent right now until things are approved at Town Meeting.

Police Building Committee Continued

Town Manager Corrow stated they have been using Mr. McBay through out the entire process of getting the proposal together for taxpayers. Mr. McBay has been calculating the numbers, looking at local services, looking at things we can do ourselves, and a variety of other issues. Mr. Mirski is extremely conservative, and he has been very beneficial to the project. Ms. Corrow introduced all members of the Police Building Committee as follows:

Chris Doloff, Chairman

Don Milbran

Lt. Lewis

Chief Clark

Steve Favorite, Selectmen Rep.

Monic Bear

Ms. Corrow introduced Paul Mirski to the Budget Committee. Mr. Mirski stated he has previously done some work on the Mill in Laconia, NH, and has worked with Bonnet, Page, and Stone in the past. Mr. Mirski handed out sketches of the two (2) buildings outlining the renovations to each. Mr. Mirski then reviewed the plans with budget committee members.

Paul Mirski explained the existing town offices are an excellent candidate for a police station. Mr. Mirski stated the location is great, the space needed by the department is adequate, and it also offers some growth within the organization should it be needed in the future.

Mr. Mirski then handed out sketches on renovations to the old Town Hall that consists of lifting the building, and slightly sliding it back 37 feet to gain additional space within the building and for parking. Mr. Mirski stated an elevator lift will be added in the lower level (new construction) to address ADA issues, and offices will be placed throughout both levels. This plan will also include an adequate vault for storage of records. Dorcas Gordon asked if the clap boards will be kept in tact? Mr. Mirski stated all materials that can be reused to keep the historical integrity of the building will be used throughout the building to save costs. Mr. Mirski stated the current roof is also a problem, so he proposes to replace the existing roof with a metal one. Mr. Mirski stated these renovations can be done at a cost of $124/$162 per square foot. This could not be done if it were new construction.

Chairman Auger asked about the space above the assembly room wondering if that space would be used? Mr. Mirski stated there is space there but it would be considered dead space.

Police Building Committee Continued

Ron Preble asked where the music room is located in the Police Station? Mr. Mirski asked why a music room was needed? Mr. Preble stated the original building was constructed using funds designated for an Opera House. Mr. Mirski stated he was not aware of this, but would certainly look in to it, and find space for a music room.Richard Walenda asked why the old Town Hall was not considered for the Police Station? Mr. Mirski stated it would not be cost effective. Paul Mirski turned the rest of the presentation over to Keith McBay of Bonnet, Page, and Stone to review the costs associated with the project.

Mr. McBay handed out sheets showing construction management costs, and project development costs. Mr. McBay reviewed the information with the Budget Committee. The proposed operational cost of the project is $22,797, and the projected total cost of the project is $2,992, 400. This reflects an overall savings of $1,166,300 over new construction. Mr. McBay stated the town will also be gaining 7,599 square feet between the two (2) structures allowing for any growth that may occur over the years.

Andrew Hemmingway asked if the $225 per square foot is the typical municipal project cost for new construction? Mr. McBay stated it is, and it could even cost more. Mr. Hemmingway asked what the soft costs included? Mr. McBay stated they are things that are not nuts and bolts of the project. Both buildings are included in the budget that Mr. McBay handed out.

Catherine Pitari asked if Fire Suppression and the Alarm were also included in these costs? Mr. McBay stated they have been included. Mr. Hemmingway asked if there had been any problems with land acquisitions, and are the costs confirmed? Town Manager, Corrow stated they are for the most part. Mr. Hemmingway asked if there is a formula used to figure out the contingency? Mr. McBay stated it is 5% of the construction costs.

Skip Bowies asked how the parking will be at the old Town Hall? Mr. Mirski stated parking would be to the right of the building, and there will be a small loss of five (5) spaces. Ron Preble asked if there would be additional parking at the existing Town Hall for the Police Department? Mr. Mirski stated he does not see a need for additional parking, but that the lot is expandable if needed at some point.

CIP Committee

Chairman Auger asked Murray Campbell of the CIP Committee (subcommittee of Planning Board) to address the Budget Committee at this time. Mr. Campbell stated the CIP was created by the Planning Board and consists of a five-person subcommittee charged with preparing a CIP for the Board of Selectmen’s consideration. The group has worked diligently to produce such a document under severe time constraints. This report (handed out) represents the CIP Committee’s effort to provide the Planning Board and the Town of Bristol with a road map to future capital spending which sets priorities and attempts to avoid the wide swings in capital spending which have occurred in recent years.

CIP Committee Continued

The CIP does attempt to set priorities and to coordinate major expenditures with the hop of stabilizing the impact of capital projects on the tax rate over the next 10 years.

Mr. Campbell continued saying the report includes recommendations for funding, such as the use of capital reserve accounts, issuance of bonds, receipt of grant money, etc. For 2008, the CIP Committee defined a capital project as a tangible project or asset having a cost of $2,500 and a useful life of at least three years. One of the CIP’s most important role was to suggest ways to fund Bristol’s organizational structure and needs for the Town of Bristol working within the master plan. Planning and budgeting over the next ten (10) years to avoid any spikes in the tax rate experienced in the past. The CIP reviewed the historical capital expense data for the past ten (10) years, and realized it had spiked up as high as 40% on many occasions. This clearly manifests the problems overtime. The CIP Committee is working closely with the Town Manager, Department Heads, and ordinary citizens to develop a capital needs program for funding over time. It is an ongoing fluid program that requires constant updating. The presentation will also be in the annual town report for citizens to read, as you all have a copy of this here tonight. Mr. Campbell thanked the many individuals who assisted in putting the CIP Report together and for their many hours of hard work.

Mr. Campbell stated every attempt has been made to make sure the numbers on the spreadsheet are as accurate as possible. Mr. Campbell reviewed the budget items, and graphs written within the report with the committee. Mr. Campbell explained the CIP looked at items in order of priority, and then looked at how each could be done over time. He explained the spreadsheets indicate the costs over a ten (10) year period for each item. Mr. Campbell stated many of the survey’s returned some sort of improvement to the Town whether it be improvement to the downtown area, beaches, walking paths, transfer station, and police station. Mr. Campbell explained these are the issues they are trying to work with over the ten (10) year period. Mr. Campbell stated the report also covers an explanation of these items in greater detail.

Chairman Auger asked if inflationary costs were figured into these spread sheets. Mr. Campbell stated inflationary costs were not figured in due to the time constraints of producing the report on time to the committee. Dorcas Gordon thanked the CIP Committee for all their hard work, and for looking at the concerns of the Town as a whole. Mr. Campbell stated Dan Paridis is working with the NH Planned Cherette for future planning as well. Mr. Parity stated the Planned Cherette is an organization who brings in a number of professionals who will look at the Town’s situation and make recommendations on the entire project. Mr. Parity stated for the number of experts who are brought in to determine such things the cost is relatively small. Mr. Parity stated $30,000 of experts in this type of planning for $1,500. Mr. Parity stated at some point letters would like to be obtained by those who support the CIP Projects. Chairman Auger thanked the CIP Committee for attending the meeting, and the members exited the meeting.

Salaries and Benefits

Chairman Auger asked Town Manager, Elizabeth Corrow to discuss the Salaries and Benefits with the Budget Committee that was postponed from earlier discussions of tonight’s meeting. Ms. Corrow handed out the completed 2007 budget for members to review. Ms. Corrow explained she had handed out Budget Sheets with the proposed 2008 budgets that now include the Salaries and Benefits for 2008.

Ms. Corrow explained there is an updated excel sheet with the comparison from 2007 and 2008 Salaries and Benefits. Ms. Corrow stated this year the health insurance this year did not go up, but there were some adjustments that did make the line items go down. Life Insurance also went down a little, and retirement went up $19,000 stating that is tied into the wages, but the rate still remains the same. The wage difference in the general fund is $175,844, and the bottom line is 186,794. Medicare and FICA are also up based on the wage adjustments. Ms. Corrow stated all are outlined on the updated Budget Sheets.

Chairman Auger handed out a list of Town Salaries within the state he had gotten from the Local Government Center’s website. Mr. Auger stated the sheets are an overview of Full-Time and part-time Salaries for different positions throughout all departments showing salaries from 2003 projecting through 2008. Jon Thouin asked if the changes only included wages and benefits? Town Manager, Corrow stated it does include additional Library hours. Paul Simard asked if the Town Employee’s were anticipating anything specific with the salaries? Ms. Corrow stated the employee’s understand the budget process. Jon Thouin asked if the encumbered money was that of this year? Ms. Corrow stated it is not it consists of last years.

Other Items

Chairman Auger stated next week he will hand out a 3 page sort on the 2008 Budget 100 Series and 200 Series covering all benefits. Mr. Auger stated next week the Budget Committee will meet with the Board of Selectmen to have a serious discussion on a number of budget items.

The next meeting of the Budget Committee will be held on Monday, January 14, 2008 at 7:00 p.m. in the lower level of the Bristol Town Offices.

Dave Carr asked how the Budget Committee will address the rest of the budget? Chairman Auger stated next week the committee will meet with the Board of Selectmen. Mr. Chairman stated once the Salaries and Benefits are out of the way the majority of the budget will be done. Then possibly addressing the Executive Department, Public Safety & Public Service Departments, and Finish it up the following week. Chairman Auger stated we need to determine whether or not we support these budgets.

Correspondence

Chairman Auger stated he received a letter from Ray Burton. Mr. Auger stated he also saw the advertisement in the paper for the open position on the Budget Committee.

Adjournment

Paul Simard made the motion to adjourn at 9:55 p.m. Ron Preble seconded the motion. All members present agreed. MOTION CARRIED.