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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting March 13, 2013, Executive Session Date, Place, and Location: March 13, 2013, 8:00 A.M., Cary Memorial Building, Ellen Stone Room Members Present: Charles Lamb, Chair; Beth Masterman, Vice - Chair; Jill Hai; Bill Hurley; David Kanter Others Present: Carl Valente, Town Manager; Rob Addelson, Assistant Town Manager for Finance; Marilyn Fenollosa, Vice - Chair, Lexington Community Preservation Committee (CPC); Nathalie Rice, Administrative Assistant, Lexington CPC; Glenn Parker, Chair, Lexington Appropriation Committee Document Presented: Financial Model of "Impact of 33 Marrett Road Financing on CPA Funds" prepared by Mr. Addelson. (Copies returned to him at the end of the Executive Session.) With Mr. Lamb, as Chair, having called to order at 8:00 A.M. the Open Session — which had been posted also to involve an Executive Session —he subsequently declared that an Executive Session was 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. A Motion to do so was made and seconded. Each member was polled and each voted "yes" The Committee went into Executive Session at 8:01 A.M. Potential Acquisition of Property at 33 Marrett Road Mr. Addelson presented his financial model that showed the impact on the projected availability of the Community Preservation Fund (CPF) through FY2021 considering the Town's offer to purchase that property. It is contemplated that of a $10,950,000 offer, the Town would request a recommendation from the CPC to the March 18, 2013, Special Town Meeting to use CPF- supported, 10 -year, debt to $7,390,000 (67% of the total purchase price, but the maximum eligible under the Community Preservation Act [CPA]) plus a smaller amount of CPF cash for ancillary expenses. The balance of the purchase would be funded with General Fund cash. The model projected that the CPF not only could accommodate its contribution to the land purchase, but also multiple other big- ticket CPA - eligible projects currently contemplated while still allocating several million dollars each year to the required CPF reserves and for other projects. Mr. Lamb expressed his concern that the model assumed there would continue to be the annual State match, at the current percentage, as part of the yearly revenue into the CPF as that is not only subject to fluctuations in the State's Community Preservation Trust Fund, but also to future Legislative actions. Mr. Addelson acknowledged that potential variability on the down side, but noted that he had deliberately not presumed any up -side in the revenue from the Governor - approved Legislative action to provide in FY2014 up to $25 million from any surplus in the State's FY2013 budget when that year closes and the Page 1 of 2