2012-10-18-AC-min - Laserfiche WebLink

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October 18, 2012 town meeting. Factors that warrant an appropriation higher than the current shortfall are: variables in the cost of steel; potential unanticipated tear down costs for the old building; the guaranteed maximum price requirement; and an $800,000 difference in our two current total cost estimates. There was some discussion at the School Committee meeting about addressing the shortfall by taking money out of the construction contingency fund but this did not receive support. The School Committee wants to go out to bid in December before bid requests for a number of other known construction projects are issued within the state. 4. Estabrook School Access Roads: DPW Director Bill Hadley and Town Engineer John Livsey described the Estabrook School access road project and efforts to address neighborhood issues. Most of the proposed changes are on Robinson Road, but Grove Street intersections are also included. Based on 75 percent design estimates the project will require $1.5 million, which includes 20 percent contingency funding. 20 percent is a typical contingency amount at this stage of design; contingency funding can be as low as 10 percent when the design work is at 100 percent. Potential cost overruns for which the 20 percent contingency may be required include drainage design work, which is still being developed and may require special permitting. Testing should determine whether soft soil or ledge is under the current asphalt; either condition could increase costs. No takings for permanent easements are anticipated. By taking this project to the special town meeting this fall, the work can be done during the summer of 2013 when the students are on vacation. In response to questions about the use of free cash, rather than debt service, to fund this project, Rob Addelson explained that $1.6 million of free cash certified at the end of the previous fiscal year had been set aside for this purpose but was not ultimately appropriated at last spring's annual town meeting because the project was not yet ready. The resulting surplus became part of the free cash balance at the end of FY2012, and so it is now appropriate to earmark it again for this purpose. There are no implications for the rest of the budget. 5. Discussion of Special Town Meeting Articles: Glenn Parker reviewed his outline for the committee's report to the fall special Town Meeting and noted that articles 2, 3, 4, and 6 are related and involve positions of multiple committees. He reported that the chairs of Capital Expenditures, Appropriations and Selectmen met to discuss the possibility of developing a consensus proposal on how to use excess funds and may continue those discussions. It is understood that any proposal developed by the chairs would ultimately be subject to approval of their respective committees. One of the options for disposition of unallocated funds is to increase the amount appropriated for the pension fund in FY2013. Rob Addelson suggested that such a recommendation may be made after the Retirement Board determines the annual amount the Town would need to allocate to reach its 2020 goal of a 100 percent funded pension fund. He reported that the Retirement Board has received an updated actuarial report indicating that, beginning in FY2014, our annual contribution will need to be increased significantly from $4.2 million to $7.3 million. This increase arises from an increase in life expectancy, a decrease in expected returns on investment accounts and the multi -year averaging of pension fund balance that now fully integrates the economic downturn. Although the Retirement Board could require $7.3 million of the Town, the 2