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Special Town Meeting 2017-1 Analysis and Recommendations The warrant for the March 2017 Special Town Meeting 2017-1 lists four articles with financial implica- tions for the Town. Three articles concern major capital projects. The fourth article concerns financial protocol with respect to borrowings. Article 2017-1.2: Appropriate Design Funds for Fire Station Funds Requested Funding Source Committee Recommendation $450,000 GF Debt Approval(9-0) The Town purchased the property formerly owned by Liberty Mutual at 171/173 Bedford St. in late 2016, with the intent to prepare that property to serve as swing space, see Article 2017-1.3 below,while the Fire Headquarters station is demolished and rebuilt. This article requests an appropriation of$450,000 to fund the design of the new station through the schematic design and design development stages. The justification for replacement of the Fire Headquarters station is documented elsewhere. This Com- mittee briefly reviewed the rationale in our"Report to the Special Town Meeting on September 21, 2016" dated September 14, 2016,under Article 2016-5.2. A brief synopsis of the rationale may also be found in the report of the Capital Expenditures Committee to that special town meeting. The reasons to replace the facility are discussed at length in a report submitted to the Town by consultants Donham & Sweeney Ar- chitects in 20111. If this article is approved,we anticipate that there will be a follow-up request at a special town meeting in the early fall of 2017 for the appropriation of funds to prepare construction documents, do the construc- tion, and manage the project. The preliminary estimate for the cost of preparing construction documents is $550,000; and the preliminary estimate for the sum of the costs of design work, actual construction and project management services is $17,800,000. It is anticipated that the fall appropriation request will be contingent on approval of the exclusion of debt service for the project at a referendum to be held later in the fall. The debt exclusion authority would cover the present request for design funds, which will be financed in the interim by short-term, interest-only bond anticipation notes (BANs), as well as the ex- penses for subsequent phases of the project. In the event that a debt exclusion for the fire station is not approved by voters this fall or in the next year or two, the fire station replacement will not proceed and the $450,000 of debt incurred under this article for preliminary design work would have to be serviced within the non-exempt tax levy. If all approvals are granted according to the anticipated schedule, the new Fire Headquarters station would likely be available for occupancy in late 2019. The Committee unanimously recommends approval of the article(9-0). ' "Lexington Fire Station Schematic Design Study Report",dated 2/15/2011,Donham&Sweeney Architects. This report is available on the Town website at: http://records.lexingtonma.gov/weblink/O/doc/142658/Pagel.aspx. 4