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HomeMy WebLinkAbout2013-01-15-CEC-minMinutes of the Lexington Capital Expenditures Committee (CEC) Meeting Open Session Date, Place, and Location: January 15, 2013, 8:00 A.M., Town Office Building, Reed Room (111) Members Present: Charles Lamb, Chair; Beth Masterman, Vice - Chair; Jill Hai; Bill Hurley; David Kanter Other Attendees: Susan Bennett, Executive Director, Lexington Historical Society (LHS); Carl Valente, Town Manager; Rob Addelson, Assistant Town Manager for Finance; Melisa Tintocalis, Economic Development Director; Robert Pressman, Community Preservation Committee (CPC); Sara Arnold, Recording Secretary Document(s) Presented: • CPC Project Application Summary Form: Buckman Tavern — Restoration and Renovation; LHS • Tables with Preliminary Estimate of [Community Preservation Act (CPA)] Funds Available for Appropriation at the 2013 Annual Town Meeting; Mr. Addelson • FY2014— FY2018 Capital Improvement Project: Economic Development • Photos of Lexington Center, Grain Mill Alley, Pedestrian Alley, and sample alternative alleys; Economic Development Call to Order: Mr. Lamb called the meeting to order at 8:09 A.M. LHS CPA Request for Buckman Tavern: Ms. Bennett presented the LHS request for CPA funds for Buckman Tavern upgrades. The scope of the project is comparable to those completed at Munroe Tavern and the Hancock - Clarke House. The purpose of the project is to • Preserve the historic fabric of the house; • Provide universal accessibility, which means a lift to the second floor, modifications within the house to accommodate wheelchairs, and two accessible entrances; • Install life- safety measures, which means fire - suppression and depression systems; and -Upgrade wiring, plumbing, and climate - control systems, as appropriate. The footprint of the building will be maintained, but minor changes will be observable from outside the building: • The cupola will be expanded slightly to accommodate a code - compliant stairwell; • A 20 century window will be removed; and • Both entrance doors will be made accessible. LHS is working with David Pinsonneault, Operations Manager for the Department of Pubic Works, on designing accessible paths to the building. The total project is expected to cost $952,820. LHS is requesting $650,000 from the CPC and expects fund - raising efforts to cover the $302,820 balance. LHS has raised approximately $3.0 million over the years. Ms. Bennett noted that unlike Munroe Tavern and the Hancock - Clarke House, Buckman Tavern is owned by the Town. It was purchased Page 1 of 4 in 1914 and was put in the hands of the LHS, under a 99 -year lease that was just renewed, for the operation and maintenance as long as it is used for historic purposes. Mr. Kanter asked whether the Town ownership would necessitate the project follow the public- bidding process. Mrs. Bennett advised that research had been done on that matter and LHS can continue to use the private- contracting process as had been done for the other two houses. In response to questions about other future large projects, Ms. Bennett said that there are no other large projects anticipated over the next five years involving buildings that are currently under LHS stewardship, but noted the Town does have other historic buildings for which a designated use has not been determined (i.e., the Stone Building and the Hosmer House) She commented that Lexington is recognized within the State for its efforts to maintain its historic structures. One consequence is that the Massachusetts Preservation Commission will be holding a conference in Lexington and showcase Lexington's historic buildings for its studies. Member Concerns & Liaison Reports: • New Estabrook School: Mr. Kanter advised that Pat Goddard, Director of Public Facilities, reported the Chapter 149A bidding and contracting process is working well for the Town. The project is ahead of schedule and now, following the sub -trade bids at the end of last year, has a $32,795,932 guaranteed maximum price (GMP) for the construction budget (CB). [The original CB was $31,145,045; at the 60% construction - document stage it was $33,908.371; and after the value- engineering effort it was $32,397,719— $1,252,674 above the original CB. It was that difference, plus other estimating uncertainty and unknowns such as potential Environmental Protection Agency extensive and extended monitoring and reporting because of the hazardous materials (PCBs, although successfully abated) in the demolition of the current school, that prompted the request for, and approval of, an additional $2,600,000 appropriation at the November 2012 Special Town Meeting. The GMP represents $398,213 more than the last CB estimate which increase is significantly less than the estimating uncertainty which was included in the additional appropriation approved last fall. (The GMP is $1,650,887 more than the original CB.)] There are four factors for which the Town is financially responsible if the costs exceed the following allowances that are included in the GMP: $466,300 for PCB abatement; $150,000 for winter - weather conditions; $75,000 for utility consumption during construction; and $50,000 for student drop- off /pick -up changes to the new school Even if any of those amounts are exceeded, the existing contingency funds are expected to cover the excess costs. Originally, occupancy was scheduled for June 2013, but the current schedule — which can still experience changes —has that happening in February 2013. Demolition of the old building will not be completed by then, which means students will continue to be dropped off at the current location, but there'll be special provisions to ensure safe passage from the current drop- off /pick -up point to the new Page 2 of 4 school. The whole project is now projected to be completed by September 2013, rather than December 2013. • Cary Memorial Hall Upgrades: Mr. Kanter reported that the Ad hoc Cary Memorial Building Program Committee submitted its report to the Board of Selectmen (BoS) last night. It is estimated that just under $8.0 million will be needed for the construction phase to renovate the building; $550,000 is being requested from the CPC for the balance of the design- and - engineering (D &E) costs. The CPC is recommending that D &E funding to the 2013 Annual Town Meeting and understands what is the currently - projected construction estimate. Both amounts are listed in the Town Manager FY2014 Preliminary Budget & Financing Plan (the "White Book "). During the Selectmen's meeting, Selectman Deb Mauger expressed concern about competing demands for Capital funds, but didn't distinguish among the fund sources. If the Town purchases the available property at 33 Marrett Rd., some of the cost could be allocated as a request to the CPC and the rest to the Town's general tax levy. The fact that many recreation projects are now eligible for funding under the CPA might expand the allocation requested of the CPC, but at this time no proposed allocation is known. This Committee supports the $550,000 request. It was noted that while the BoS will take positions on projects proposed for funding under the CPA, at least all those recommended by the CPC are expected to be on the Town Meeting Warrant irrespective of the BoS' position. • Recreation Strategic - Planning Sessions: Ms. Hai and Mr. Lamb will each attend one of the two sessions. Financing the Wright Farm Purchase: Mr. Addelson presented a table that identifies estimated available CPA funds for appropriation during FY2014. There is just under $2.2 million in excess of the current claims on CPA funds before factoring in (1) costs related to the debt service on the Wright Farm purchase, (2) acquisition costs related to a purchase at 33 Marrett Road, or (3) a final value for the Undesignated Fund Balance. Town Meeting approved a $2,950,000 purchase price for the Wright Farm. The Town usually issues bonds on February 1 each year, but it is currently premature to prepare the terms of a bond for the Wright Farm expense because there isn't enough information relating to the needs for Cary Memorial Hall and any purchase at 33 Marrett Road. Mr. Addelson recommends initially issuing a Bond Anticipation Note (BAN) for Wright Farm rather than a bond. This will be good for one year, during which the Town only pays interest, no principal. When then transitioning to a bond, it would be possible to pay down the debt with some of the Community Preservation Fund (CPF) cash. Mr. Kanter requested that, consistent with the understanding when this Committee agreed to defer a decision on the use of CPF cash for the purchase, both of the Town's finance committees and the CPC be allowed to weigh in on how much cash should be used to reduce the bond. A motion was made and seconded to support the issuance of a 1 -year BAN in February, 2013, for the direct purchase cost of Wright Farm. Vote: 5 -0 There was a discussion about the potential for an increase in the excess CPA funds beyond the currently unknown Undesignated Fund Balance. There was $15,000 for interest appropriated in conjunction with the Wright Farm purchase (2012 Annual Town Meeting, Article 9), although those funds probably need to be re- appropriated. Also, two CPA projects currently identified as having a claim on CPA funds may well not move forward this Page 3 of 4 year for the currently identified amounts. The Hastings Park Gazebo Rehabilitation /Restoration ($30,000) needs to be amended to provide compliance with the Americans with Disabilities Act —which would require a significant increase in cost —or may be withdrawn. The Visitor Center — Design Phase ($68,950) does not have its companion general -fund funds included in the FY2014 White Book. Lexington Center Pocket Park and Alley Design (Phase I of II) CPA Request: Ms. Tintocalis presented the Town's request for $15,000 to design a project that is estimated to be $95,000 to implement. She shared photos of the pedestrian alley (approximately 800 square feet from Massachusetts Avenue, between Michelson's Shoe's and Citizen's Bank, to the Town's municipal parking lot) and the Grain Mill Alley (approximately 1,200 square feet from Massachusetts Avenue, along side Bank of America and its parking lot, and continuing toward the Minuteman Bikeway). Those approximately 2,000 square feet are owned by private businesses: Citizens Bank owns the pedestrian alley; Bank of America and the Condo Office Association own the Grain Mill Alley. Ms. Tintocalis reported that the owners have verbally agreed to an easement or a ground lease with the Town, but don't want to make any legal commitments without seeing the proposed design. Also, they are not interested in providing any financing for any of the improvements. Using CPA funds for a project on land that remains privately owned creates a challenge. Mr. Kanter opposed the $15,000 D &E request for CPA program funds on the basis that it is premature because there are no funds requested for even addressing the legal issues, much less assure a resolution of them with the relevant property owners. He advised that the CPC has recommended that D &E funding for the project. The Committee discussed alternatives for resolving the issues and for funding the project. Ms. Tintocalis agreed to research legal costs for addressing the use of CPA funds on private land and for addressing any requirements that may be of concern to the owners of the properties in question. The Committee won't take a position until it has more information. Move to Executive Session: Mr. Lamb, as Chair, declared that an Executive Session is warranted under the Open Meeting Law Exemption 6 (to consider the purchase, exchange, lease or value of real property), as the discussion in an open meeting may have a detrimental effect on the negotiating position of the Town —and with the intention to reconvene in Open Session only to adjourn. A motion to do so was moved and seconded. Each member was polled. Vote: 5 -0 The Committee went into Executive Session at 10:10 A.M. Return to Open Session: The Committee returned to open session at 10:35 A.M. Adjourn: A Motion was made and seconded at 10:35 A.M. to adjourn. Vote: 5 -0 These Minutes were approved by the CEC at its meeting on January 22, 2013. Page 4 of 4