HomeMy WebLinkAbout2012-10-16-CEC-minMinutes of the Lexington Capital Expenditures Committee (CEC) Meeting
Date, Place, and Location: October 16, 2012, 8:00 A.M., Town Office Building, Reed
Room (111)
Members Present: Charles Lamb, Chair; David Kanter; Bill Hurley; Beth Masterman;
Jill Hai
Other Attendees: Donna Hooper, Town Clerk; Nasrin Rohani, Town Archivist; Koren
Stembridge, Cary Memorial Library Director; Rob Addelson, Assistant Town Manager for
Finance; Theo Kalivas, Budget Officer; Sara Arnold, Recording Secretary
Documents Presented:
1. Executive Summary (Tracking), School Committee Meeting, October 13, 2012 &
Plan for Getting to Budget, after that School Committee Meeting, prepared by
Shawmut Design and Construction (SD &C) regarding the new Estabrook Elementary
School; including handwritten notes added by Mr. Kanter
2. FY2014— FY2018 Capital Improvement Projects (CIPs), Town Clerk,
September 11, 2012, & Library, October 5, 2012
3. Table of Funding Budget Priorities, October 2, 2012, presented by the Town
Manager to the Financial Summit 1, October 3, 2012
Call to Order: Mr. Lamb called the meeting to order at 8:03 A.M.
Approval of Minutes:
It was moved and seconded that the Minutes of the Committee's Executive Session,
May 4, 2012, meeting as reflected in the draft that had been distributed electronically,
October 15, 2012, be approved and made public as authorized by the Town Manager.
Vote: 3 -0 -2.
The process for preparing minutes was reviewed.
Liaison Reports: Mr. Kanter reported as follows:
• Ad Hoc Townwide Facilities Master Planning Committee: On October 5, 2012,
that committee met with representatives of The Cecil Group, the consultants hired to
assist the Town in developing such a master plan for all of the Town facilities. The
representatives summarized the Scope of Services and reported that they are
looking at past reports and analyses of the Town's buildings. They expect to help the
Town prioritize projects and estimate the required funding. The project includes
providing an initial analysis of potential Town use of the for -sale portion of the
Scottish Rite Museum property by January or February 2013.
• Permanent Building Committee (PBC) & School Committee (SC) Regarding the
New Estabrook Elementary School Project: At the joint PBC /SC meeting on
October 11, 2012, the PBC reported that the SD &C (the General Contractor)
construction -cost estimate at the 60% construction - document (CD) stage was over
the budget by about $2.8 million and a parallel cost estimate by the architects
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(DiNisco Design Partnership) was about $0.8 million higher. A 1 round of
collaborative value- engineering (VE) decisions involving that contractor, the
architects, the PBC, and the SC had reduced that contractor's estimate's gap to
about $2.1 million. A 2 nd round of VE decisions proposed by the contractor and the
PBC would have reduced that gap to about $1.0 million. The SC, at its meeting on
October 13, 2012, reviewed the list of 2 nd -round VE items. All were accepted except
for the following which the SC believed would adversely affect the educational or
operational aspects of the new school: (1) substituting a 2 -pipe heating /cooling
system in the classrooms —which would have required a 3 -day delay in switching
between the two modes —for a 4 -pipe system; (2) substituting a lift from the receiving
area —which would preclude persons from accompanying the loads —for an elevator;
and (3) eliminating any of the speech- reinforcement system in the classrooms. That
left the gap at about $1.2 million.
Mr. Kanter said he had expressed his concerns at both the PBC /SC and the
subsequent SC meetings that the costing of the demolition of the old school building
cannot be as accurately estimated —which may result in higher bids than are now
contemplated in the SD &C estimate —and there remains the unresolved $0.8 million
difference between the two 60 % -CD estimates. He had suggested a more
conservative shortfall estimate would be $2.5 million —and something on that order
should be the additional appropriation requested at the November 19, 2012, Special
Town Meeting.
Mr. Kanter reported that all the parties involved, including the Owner's Project
Manager, feel it's vital to remain on the current schedule -100% CD /bid package by
November 28, 2012; bids due by December 20, 2012; and a Guaranteed Maximum
Price (GMP) with the successful bidder by December 31, 2012. Not only would that
keep the contract schedule on track for completion as contemplated by the School
Committee, but would also keep this project's bidding before that for a number of
other anticipated school construction projects within the State.
FY2014— FY2018 Capital Budget Review: Staff came to discuss their capital requests, as
follows:
• Town Clerk's Office:
➢ Archives & Records Management /Records Conservation & Preservation:
Ms. Hooper explained the need for a 3 -year, $20,000, annual funding for
digitizing newly designated historic records. After three years, costs associated
with this project would be included in the operating budget. As the effort is likely
to remain eligible for submission to the Community Preservation Committee
(CPC) for support from the Community Preservation Fund, Mr. Kanter supported
having these efforts remain as a capital project beyond those three years.
➢ Election System Upgrade: Ms. Hooper explained that the current vote scanners
will reach their life expectancy in a few years, at which point the Town will need
to purchase 10 replacements —one for each of the nine voting locations and one
as a spare. The current scanners can no longer be purchased new, and rebuilt
scanners (about $4,500 each) are currently considered to be the best option
before the planned total replacement in FY2018 at an estimated cost of $60,000.
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Mr. Kanter noted that this item should be included in the line for equipment. He
also noted that, as mentioned last year to the finance staff, there aren't enough
categories on the CIP forms to properly identify the cost elements.
Mr. Kanter also noted that there was no "placekeeper" CIP for the capital portion
of an electronic- voting system for use at Town Meetings —and that such funding
potentially would be needed if the amended By -Law allowing for electronic voting
were to be approved at next - month's Special Town Meeting. Ms. Hooper said
she'll look into sponsoring such a CIP.
• Library:
➢ Cary Memorial Library RFID (Radio Frequency Identification) Conversion Project:
Ms. Stembridge explained that this system will improve the library's workflow
efficiency and will accurately and efficiently track inventory. In response to
questions, she explained that:
• Maintenance is not expected during the first year; funding for it will start in
years two and three.
• Only physical materials need RFID tags; it may be possible to reduce the
number of required tags.
• Library staff is already overextended so the efficiencies will not reduce staffing
requirements.
• The library will use some current staff, some volunteers, and some part -time
students to install the RFID tags; this is part of the $20,000 contingency line
item.
• The Lexington library coordinates with 42 other libraries in the area.
• Two vendors have submitted pricing information.
• The Stone Building in East Lexington is not a likely candidate for future library
use.
The Committee members expressed concern that there wasn't enough money
included to cover installation requirements effectively and efficiently. They suggested
considering making this a "turn -key" contract by including the initial tagging to ensure
there is timely and accurate completion of the transition to the use of RFID in the
Cary Memorial Library. They also encouraged coordinating with the Lexington school
libraries, which have problems with inventory, to see if a joint project makes sense at
this time.
Election of Officers: Mr. Lamb advised that he wants to be able to transition out as Chair
and, thus, he would like the Vice -Chair to be elected with the intent of becoming Chair.
Also, as he will not be present at the November 19, 2012, Special Town Meeting, the Vice -
Chair will need to chair the Committee at that Meeting. After discussion among the
members as to their individual interests in being the Vice - Chair, and although new to the
Committee, Ms. Masterman agreed she was willing to serve as Vice - Chair.
A motion was made and seconded to elect Mr. Lamb as Chair and Ms. Masterman as
Vice - Chair. Vote: 5 -0.
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Liaison Assignments: Committee members agreed to serve as liaisons to committees,
subject areas, and departments, as follows:
CPC
Mr. Kanter
Conservation
Mr. Lamb
Facilities
Mr. Hurley
Fire and Police
Ms. Masterman
Library
Ms. Hai
Public Works
Ms. Hai
Schools
Mr. Hurley
Information Technolgy
Mr. Lamb
Solar Energy
Ms. Masterman
Recreation
Ms. Hai
Senior /Community Center
Mr. Lamb
The responsibilities as liaison include drafting this Committee's positions, as appropriate,
for this Committee's Reports to Town Meetings. Mr. Kanter volunteered to remain as the
editor for such reports. It was agreed that the Committee members act for what, in their
opinion, is best for the Town.
Unallocated FY2013 Revenue: The Town has projected over $4,209,471 in savings
generated by the switch to using the State's Group Insurance Commission (GIC) health -
insurance options for employees. At the 2012 Annual Town Meeting, $1,116,250 of the total
had been applied toward Street Maintenance /Reconstruction ($400,000), Reduction of
School Bus Fees ($316,250), and Debt Exclusion Offset (Tax Relief) ($400,000).
Competing interests for the $3,093,221 balance have been identified: adding more to the
Pension Fund, adding more to the OPEB (Other Post - Employment Benefits) Fund, and
establishing a new Stabilization Fund for capital - related purposes, including a debt - service
reserve. Mr. Kanter reported that the Appropriation Committee has been exploring the
value of adding to the OPEB fund —and when. It was noted that the Town does not yet
know yet what the Retirement Board will determine is required as the FY2013 contribution
to the Pension Fund according to that Board's long -term plan to meet the Town's goal of
fully funding its pension liabilities —a position that current State law requires must be
achieved by 2040.
[Mr. Hurley left the meeting at 10:40 A.M.]
Committee members expressed the position that the CEC should be supporting efforts to
protect and provide capital assets; and the new Stabilization Fund directly addresses that
purpose.
A motion was made and seconded to support moving as much of the still - unallocated
FY2013 revenue as possible into a new capital - related Stabilization Fund. Vote: 4 -0.
2012 Annual Town Report: Mr. Lamb has prepared the Committee's input to that report
and will be providing the final text to the members.
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Warrant Articles for the Special Town Meeting, November 19, 2012: Mr. Kanter noted
that of all the financial Articles, only Article 5 —which entails improvements to Robinson
Road (including a full - length sidewalk) & Grove Street —has a dollar amount cited. He is
concerned that the $1.5 million cited may not be enough for the project — especially as it will
entail negotiating with the State because of the adjacency to the 1 -95 right of way and the
overpass over that highway; however, the dollar amount is below the "Inserted by" line and,
therefore, a revised amount could be included in the Motion.
The Committee then reviewed all the Articles in the Warrant and decided only the following
required inclusion in its report to Town Meeting and member assignments for drafting
comments would be as shown:
Article 3 (Establish and Appropriate to Specified Stabilization Funds: Mr. Lamb and /or
Ms. Masterman
Article 5 (Estabrook School Access Improvements): Mr. Kanter
Article 6 (Appropriate for New Estabrook School): Mr. Hurley
Article 7 (Appropriate for Authorized Capital Improvements): To be determined as, at
this time, the Committee has not been informed of any action that will be requested
under this Article. If none, the Motion would be to indefinitely postpone.
Adjourn: A Motion was made and seconded at 11:05 A.M. to adjourn. Vote: 4 -0
These Minutes were approved by the CEC at its meeting on October 23, 2012.
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