HomeMy WebLinkAbout2018-06-25-CEC-min Y Minutes of the
Lexington Capital Expenditures Committee (CEC) Meeting
June 25, 2018
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Location and Time: Town Office Building, Reed Room; 7:45 A.M.
Members Present: Charles Lamb, Chair; David Kanter, Vice-Chair & Clerk;
Sandy Beebee;Wendy Manz; and Frank Smith
Members Absent: Rod Cole
Others Present: Sara Arnold, Recording Secretary
Documents Presented:
• Notice of CEC Meeting, June 25, 2018
• Draft #3 Minutes of the CEC Meeting, June 6, 2018
• CEC Input to the Board of Selectmen's (BoS's) Goals Setting for Fiscal Years (FYs)
2019 & 2020, May 28, 2018, with Commentary Prepared by Mr. Kanter, 24 Jun 2018
Based on BoS Comments at its 19 Jun 2018 Meeting
Call to Order: Mr. Lamb called the meeting to order at 7:46 A.M.
Approval of Minutes: Mr. Kanter presented three proposed edits to the Draft #3 Minutes
of the CEC meeting, June 6, 2018. A Motion was made and seconded to approve those
Minutes as amended. Vote: 4-0-1 (Mr. Smith abstained because he had not attended that
meeting.)
Member Concerns and Liaison Reports: Mr. Kanter reported the following regarding the
June 191" meeting of the BoS:
• The BoS approved Bond Anticipation Notes (BANs) totaling $12,116,855. Factoring
in the $113,777.27 premium received from the winning bidder, J.P. Morgan
Securities LLC, the net interest cost for the Town is 1.56%, which is an increase
from the 1.40% on the BANs issued this January and the 0.94% on those issued last
June.
• The BoS continued its goals-setting efforts—the primary purpose the meeting. The
BoS reviewed 52 recommended goals—some as carryovers from the FY2018 &
FY2019 goals; most as inputs from the staff, Town committees, and other Town
bodies. The inputs had been ranked based on the previously identified interests
expressed by the individual BoS members. During the review, the Board agreed that
a number of goals could be merged. The Town Manager's Office will prepare a goals
list that reflects the Board's discussion and positions. This Committee's
recommendations were addressed by the BoS, as follows:
➢ Overall Capital Planning: This was identified as a high-priority carryover and
did not include addressing a separate policy regarding funding durations for
capital projects as recommended by this Committee.
➢ Town-wide Facilities Master Plan: This was identified as a high-priority
carryover. The BoS supported the creation of another Ad hoc Town-wide
Master Planning Committee to ensure both Municipal and Schools planning
are integrated so the result is a truly a Town-wide plan.
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
June 25, 2018
➢ Capital Project Matrix/Timeline Template: This on-going, combined effort by
Jon Himmel, Chair, Permanent Building Committee, Mark Sandeen, Chair,
Sustainability Committee, and Town staff to develop consistent standards and
processes for building projects was identified as a high priority. Carl Valente,
Town Manager, advised the Board that while progress has been made in
developing this product, there remain unresolved issues regarding what
details should be proposed as being in the policy.
➢ Use of Discretionary Funds: This was ranked in the last 20 goal
recommendations on the list. As time was running out for the BoS meeting,
the Chair asked each member to identify any one or two in that last group that
needed to be discussed at this meeting. This input by this Committee was not
raised by any member, so it was not addressed.
➢ Sidewalks: This Committee's recommendation regarding a policy of separate
funding requests for the different locations of sidewalk capital projects was
mentioned, but no position taken.
➢ Community Housing Policy: As there were several different inputs that would
fall under this goal, it was noted that all the stakeholders associated with
community housing policies need to develop a consensus opinion on
recommended changes to the policy. It was also mentioned that this
Committee's input about a new staff position to assist the Lexington Housing
Assistance Board (LexHAB) was surprising in that LexHAB has not advanced
a similar request.
➢ Lexington Community Center Expansion:This was identified as the last of the
high priority inputs, but that the project requires additional process and
evaluation.
Ms. Beebee and Mr. Smith reported on the June 141" Financial Summit, which focused on
two School Department financial requests, as follows:
• $1.1 million for additional laboratory-equipped classrooms needed by the fall of
2019:
➢ The School Committee reviewed the available options for addressing the
continued increases in enrollment and their impact on the science program.
Programmatic changes would not necessarily solve the problem.
➢ A funding source for adding new laboratory space has not been identified.
The schedule for this project identifies funding approval at a fall 2018 Special
Town Meeting for design development between November 2018 and
February 2019, followed by the bid process, selecting a contractor in March or
April, and construction during the summer of 2019.
This Committee is interested in just what fund source could be available to
support that proposed project schedule which entails contracting, likely twice,
before any FY2020 funding would be available. Also discussed was the cost to
taxpayers of maintaining the quality of education that Lexington offers.
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
June 25, 2018
• $106,000 needed to begin the next School Master Planning effort:
➢ Two options for funding have been explored: Using funds from the School
Department 2018 operating budget or from the Appropriation Committee's
2018 Reserve Fund which can only be used for extraordinary or unforeseen
expenditures—terms which are left for that committee to define. The latter
option is considered justified because of a recent, unforeseen, advice by bond
counsel that the Motion for the appropriation (which is already obligated in a
contract) which funds the SC had originally planned to use only allows for the
use to be financed over time—which is not the case for this effort.
➢ The SC is in favor of using the Appropriation Committee's Reserve Funds,
rather than using operating funds for a non-operating expense. Mr. Valente
said that that only operating use of operating funds is the normal practice, but
non-operating use could be allowed if it is made publicly clear that is being
done.
➢ The Appropriation Committee, which must approve use of the Reserve Fund,
has not taken a position, but is expected to do so at its meeting in two days
(on the 271"). The School Committee has approved an operating budget
transfer to cover this effort if the Reserve Fund use is not approved.
Mr. Lamb reported that, to-date, Deborah Brown, the Town Moderator and appointing
authority for this Committee, has not found a candidate for filling the open position on this
Committee. Suggestions from this Committee and others are welcomed.
Adjourn: A Motion was made and seconded at 8:18 A.M. to adjourn. Vote:5-0.
These Minutes were approved by the CEC at its meeting on September 12, 2018.
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