2014-02-26-AC-min - Laserfiche WebLink

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2014-02-26Minutes Mr. Levine reported that the Solar Task Force met with the Board of Selectmen (BoS) seeking approval to issue a Request for Qualifications for a contractor to install solar panels on town buildings and/or at the Hartwell Avenue landfill. It was noted that the state has reduced its tax incentives for using alternative energy but new incentives are being considered. Liaison Reports: 2.A task force has been working with Deborah Mauger, Chairof the Board of Selectmen (BoS), to develop a policy for pre-funding the Town’s “other post- employment benefit”(OPEB) obligations,i.e. the Town's health insurance obligationsfor retirees. They are discussing the possibility of setting aside 33% to 100% ofthe annual “normal” cost of the obligation,with a target of fully fundingthe total obligation in about 40 years. Comments included the following: Current budgets are able to support such a policy. If at a future time it seems advisable to reduce the amount or even use some of the funds, this would be possible. The actuaries who create estimates of the amount needed annually to cover the costs over a particular period of time, are generally conservative. Furthermore, it is difficult to make the necessary predictions when looking at a 40 year time span. Over time, the Town may be able to reduce the amount needed annually based on new predictions, and/or the Town may reach its goal soonerthan originally calculated. There isn't a downside to either of these scenarios. There are 20 Massachusetts municipalitiesthat are rated Aaa, and Lexington is one of them. Most of those communities have not taken steps to pre-fund their OPEB obligations, suggestingthat,at least at this time, doing so is not critical to maintaining anAaarating. However, rating agencies do specifically askabout a community's efforts to address this obligation. Governor Deval Patrick has supported legislation to require communities to pre-fund this liability and has beencritical of communities for not supporting it. The policy being discussed isworded to allow flexibility, but it will provide a reasoned basisfor addressing this obligation annually. The Committee was generallyin support of the Town adopting a policy to pre-fund these obligations, and the process for doing so was discussed. Itwas agreed that this Committee should take a position on any policy that the BoS proposesto adopt. Mr. Parker will ask Ms. Mauger if a draft motion for a policy will be available for this Committee to review at its March 5 meeting. He will also write up a report on Article 15, Appropriate to Post Employment Insurance Liability Fund, supporting an appropriation of $1.19 million in FY2015. Reports to the Upcoming ATM and STM: 3.There will be two reports from this Committee, one for the special and one forthe annualTown Meeting. This Committee does not need to comment on Articles 26 through 32 in the Warrant for the Annual Town Meeting, which are not financially related. Voting on the other articles is planned for next week's meeting.It was noted that the scope for the Visitor Center project has not yet been finalized. There was a motion, which was seconded, to approve Article 2, Cary Memorial Building Upgrades, for $8,677,400 in the STM Warrant. The motion passed. VOTE: 7-0 2