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HomeMy WebLinkAbout2013-09-24-CEC-minMinutes of the Lexington Capital Expenditures Committee (CEC) Meeting September 24, 2013 Location and Time: Town Office Building, Reed Room (111), 8:00 A.M. Members Present: Jill Hai, Chair; David Kanter, Vice - Chair; Bill Hurley; Wendy Manz; Beth Masterman Members Absent: None Others Present: Carl Valente, Town Manager; Rob Addelson, Assistance Town Manager for Finance; Pat Goddard, Director, Department of Public Facilities; Mark Barrett, Project Manager, Department of Public Facilities; Michelle Ciccolo, Chair, Ad Hoc Community Center Advisory Committee (AhCCAC); Dorinda Goodman, Director of IT /MIS; Deborah Mauger, Chair, Board of Selectmen (BoS) Documents Presented: Extract of Presentation to the School Committee with an Update on Lexington High School (LHS) Overcrowding with Space Recommendation, Budget Estimate, & Construction Schedule (September 10, 2013) Presentation to the BoS on Financing LHS Modular Classrooms (September 23, 2013) 50% Construction Document Cost Estimate for LHS Modular Expansion (North Bay Construction Consultants, September 3, 2013) Ad hoc Community Center Advisory Committee Presentation to the BoS (September 23, 2013) Draft Feasibility Estimate, September 13, 2013, for Lexington Community Center Interim Move (VJ Associates) Talking Paper on a Town Network Infrastructure Redundancy Project (Ms. Goodman, undated; provided September 23, 2013) Call to Order: Ms. Hai called the meeting to order at 8:02 A.M. Project for Additional Temporary (Modular) Classrooms for the LHS (Expected to be presented to a November 4, 2013, Special Town Meeting [ "Fall STM "]) Using the same information that he had presented to the School Committee, Mr. Goddard explained how the growth in enrollment at the LHS from that contemplated in the 2000 renovation (1,842), to the actual in FY2013 (2,007), and that projected for FY2016 (2,154), when coupled with 12 existing general- education classrooms having been repurposed to meet specialized programmatic demands, has created an urgent requirement for additional classrooms at that school. The design & engineering for an expansion was presented to, and approved by, the 2013 Annual Town Meeting under its Article 14(f). Mr. Goddard presented the recommended interim solution that entails having ready for occupancy by the end of next summer for the 2014 -2015 academic year, 15 modular, pre- fabricated, Stretch - Code - compliant, classrooms (10 for general education; 5 for the graduates of the Clarke Middle School Intensive Learning Program [ILP]) and, by the end of the following summer for the 2015 -2016 academic year, 9 more modular classrooms (2 for general education; 7 for the graduates of the Diamond Middle School ILP). The staggered Page 1 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting September 24, 2013 availability is feasible as that supports when the associated enrollment will hit the LHS. The first set (17,300 Gross Square Feet [GSF]) would be installed adjacent to and connected with the Arts & Humanities Building; the second set (6,300 GSF), between and connected to the Science and Math Buildings. In both cases, there will be a common roof covering the modular components. The rounded cost estimate based on 50% design - development documents is $5.3 million (with a high -range of $6.1 million) for the first, 2014, set; and $1.4 million (with a high -range of $1.6 million) for the second (2015) set — putting the currently estimated total - project construction cost (including both direct and soft costs) ( "construction cost ") at about $6.7 million (with a high -range of about $7.7 million). Mr. Goddard said that while the full appropriation estimated as needed for both sets of classrooms will be request at the Fall STM, each set would be independently bid as the area in which both sets would go is constrained and would not readily accommodate both constructions at the same time, and forcing a single mobilization is not contemplated to offer any meaningful cost savings. The planned timeline for each year's set is for contract award in January, breaking ground and utility work beginning in March, delivery of the modular units in late June, and Certificate of Occupancy in August. The Committee asked many questions about the proposed project and Mr. Goddard provided answers. One regarded whether this provided capacity beyond the currently projected enrollment demand. Mr. Goddard's answer was that it didn't. This is to provide only interim relief until a major reconstruction /replacement of the LHS that's planned for FY2021. Another asked about the acoustics in the modular units. Mr. Goddard said it would be quieter than most of the existing classrooms, but not as quiet as new permanent construction. There will be insulation between the rooms and centralized ventilation. Mr. Addelson then addressed the plan for paying for the two -year construction cost. While an updated cost estimate is expected next month based on 90% construction documents, he presented his current modeling which uses the $7.2 million mid -point of the existing estimate cited above. This modeling assumes that any bonding would be for the maximum term of 10 years allowed for such a project, would carry a 4% annual interest rate, and be issued as needed in February 2014 and February 2015. A target goal of annual increases in the Town's overall non - excluded debt (including already authorized debt, an annual amount for each year's other capital projects based on the average of recent years, and the new debt service for this project) is not more than 5 %. • Model I had the $7.2 million construction cost debt financed, but that projected a 20.9% annual growth of the overall non - excluded debt service in FY2015, 6.3% in FY2016, and 0.5% in FY2017. • Model II used $1.73 million of currently unallocated FY2014 cash leaving $5.47 million to be financed. That brought the FY2015 increase down to 16.5 %; the FY2016 marginally higher at 6.6 %, and FY2017 marginally higher at 0.6 %.. Page 2 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting September 24, 2013 - Model III financed the full $7.2 million, but applied the unallocated $1.73 million in cash to offset debt service. That brought the FY2015 increase down to 5.0 %; increases FY2016 to 7.8 %; and increases FY2017 to 14.1 %. - Model IV financed the full $7.2 million, but increased the cash to offset debt service to $2.62 million by also applying about $890,000 from the Capital Project /Debt Service/ Building Renewal Stabilization Fund. That keeps FY2015 at 5.0 %; reduces FY2016 to 5.0 %; and reduces FY2017 to 5.2 %. (While FY2018 had previously had reductions in debt service over FY2017 in the previous models, this model swings it to a positive 5.6 %.) The Committee had numerous questions regarding this modeling of how to fund this project's construction cost and Mr. Addelson provided answers. The Committee recognized that the allocation of either the $1.73 million or the $2.62 million diverts some portion thereof that potentially may be available to address other non - exempt capital projects. Mr. Kanter asked whether Mr. Addelson had considered introducing one or more Bond Anticipation Notes (BANs) into the model as that would defer the initial principal payments. Mr. Addelson said that while it was technically feasible to use one or more BANs, he had not done so as he believes the Town should not push the problem to further out -years when the situation on other funding needs is not very clear. Conceptually, the Committee endorsed Model IV over the other models, but took no formal vote as this matter needs to be revisited when the more - refined estimate for the total project construction cost is available next month and the modeling can be re -run with that estimate as the request to the Fall STM would use it as the starting point for deciding what should be the dollar amount. Additional Funding for Initial- Occupancy Work at 39 Marrett Road to Allow Opening of a New Community Center and Hosting of Associated Town Staff (Expected to be presented to the Fall STM) Using the same information that the AhCCAC had presented to the BoS, Mr. Goddard explained the current status of that committee's plan for the initial occupancy of the main building on the property that the Town is purchasing off Marrett Road for developing into a Community Center. (Closing on that purchase is scheduled for this December 3 A companion design effort is underway for what might be the full build -out of that building and, potentially, an expansion of that building; however, the primary emphasis is on defining the initial occupancy so a funding request for the full design & engineering (D &E) and construction of that can be presented to the Fall STM. Shown were the contracted architects' (Steffian Bradley Architects [SBA]) schematic -level test fits of how all the programming currently at the Muzzey Senior Center (without that requiring a co- located commercial kitchen) and the staff of the Town's Human Services and Recreation Departments (with their storage requirements) could fit into the main building. SBA also provided a draft Feasibility Estimate for all the code - compliance and minimal structural changes needed to support such an initial occupancy. Mr. Goddard said that at this point total estimated project construction costs (including the associated soft costs) to permit the interim occupancy range from $755,000 to $1,210,000. Page 3 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting September 24, 2013 So far, the AhCCAC has recommended to the BoS that all the Muzzey Senior Center programming (without a co- located commercial kitchen) be included, along with the Human Services staff, in the initial occupancy. That committee is still discussing whether all or just some part of the Recreation Department's staff should be included and they plan to advise the BoS of that decision at a future meeting of that Board. Most of the purchase funding, including ancillary costs and the funding for the architect to do the schematic -level design for both the interim occupancy and a full build -out, was recommended by the Town's Community Preservation Committee (CPC), and approved by the March 18, 2013 Special Town Meeting, with the Town's Community Preservation Fund (CPF) being the source. It is anticipated that the Town will ask the CPC to recommend to the Fall STM, presumably after getting a Town Counsel opinion on the eligibility under the Community Preservation Act, that all of the funding associated with the completion of the D &E through construction documents for the interim occupancy and the bidding and the award of the construction contract for that work also be from the CPF. (Further funding for the D &E related to a further build -out, if any, would be presented to a later Town Meeting following later recommendations to the BoS by the AhCCAC.) Mr. Goddard said that another cost estimate, reflecting further decisions of the AhCCAC and additional investigations of the building's status, is expected next month. This Committee took no formal vote as this matter needs to be revisited when that next estimate is available next month and, in any case, a formal vote would normally not be taken until the CPC has decided to make a recommendation to the Fall STM for any use of the CPF for the continuing interim - occupancy work. Project to Replace Entry Ramp to the Bays at Central Fire Station Mr. Addelson and Mr. Goddard briefed the Committee that that ramp has deteriorated such that Lexington Fire Chief Wilson is concerned about its structural integrity — especially if it is left to endure this winter season. The estimated cost is about $15,000 (less than the usual threshold for a stand -alone capital project), the proposal is to use available Building Envelope & Systems funding, and no currently contemplated FY2014 effort that would use that funding would be curtailed. The Committee had no reservation about applying that fund source to the repair of the ramp. Town's Initiative to Establish Another Fiber -Optic Data Connection as Redundancy for a Portion of the Existing Institutional Network (11-Net) Ms. Goodman amplified on the information in her talking paper with emphasis on the risks of the current hub - and -spoke topology of the Institutional Network (I -Net) that provides essential, day -in and day -out services to some 17 municipal and 13 school building in Town. The I -Net is based on using the two strands of single -mode dark fiber -95% of which is aerial (on poles) provided by RCN, one of the licensed cable- service providers in the Town. As she wrote, the singular dependency on a vulnerable aerial infrastructure, a topology which has no failover capability, a break in one location can result in loss of service to multiple locations, and dependency on RCN bandwidth and Internet - Protocol Page 4 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting September 24, 2013 addresses all contribute to the level of risk. She recommended a long- range, phased, program to install a network loop or multiple -loop to connect all critical Town locations. The first phase would be an engineered solution running from the Hadley Public Services Building (201 Bedford Street) to the Police Headquarters (1575 Massachusetts Avenue) with break -outs to the RCN hub for the Town (173 Bedford Street), the Town Office Building, the Central Fire Headquarters. At this time, Verizon has available free conduit space along that route into which the Town could place the new fiber. If that space remains available to the Town, the estimated cost to complete the installation of that redundant path is approximately $30,000. (A full build -out throughout the Town could be on the order of $400,000.) The funding source for this initial redundancy is proposed to be the PEG (Public, Educational, & Government) Access Revolving Fund that hold the payments from all three cable licensees in Town (RCN, Verizon, and Comcast). At each Annual Town Meeting, a maximum dollar amount is authorized for the expenses paid by each Revolving Fund. The proposed project was not contemplated when the FY2014 authorization ($450,000) was approved by the 2013 Annual Town Meeting, however, the BoS with approval of the "finance committee" may adjust that authorization in between Town Meetings. The Committee endorsed the proposed project and supports an increase in the FY2014 authorization for the PEG Access Revolving Fund to permit the use of its funds for the project. Other Articles for a Fall STM Except for adjustments into and out of a Stabilization Fund and the Committee's spoken report to the Town Meeting, no other Articles are anticipated to have capital implications. Committee's report to the Fall STM Meeting Regarding the anticipated Articles, Mr. Hurley agreed to prepare a draft input on the project for the LHS modular classrooms; Ms. Masterman on the project for initial occupancy of the Community Center; and Ms. Hai and Mr. Kanter would handle any miscellaneous financial Articles (e.g., regarding the Stabilization Funds). Committee meeting will be posted for October 10, 2013, at which time initial inputs to the Committee's report will be due, and one on October 21, 2013, for approval of the final version of the report. Mr. Kanter will be the editor and provide one or more drafts to the Committee members for their review —with any feedback to be provide just to Mr. Kanter. The objective will be to publish the report —both in hardcopy and electronically —not later than October 28, 2013, to meet the 1 -week- before- Town - Meeting goal. Plans for Presentation to the Committee of the Town Departments' Proposed Capital Improvement Projects (CIPs) for the FY2015 Capital Program The Committee agreed to have weekly meetings scheduled to hear those presentations beginning on October 29, 2013, at 8:00 A.M., and continuing until December 3, 2013. [Note: It was subsequently decided not to meet on November 26, 2013.] Weekly meetings would Page 5 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting September 24, 2013 continue on December 10, 2013, and December 17, 2013, for the Committee to have deliberations to evaluate the CIPs. Member Concerns and Liaison Reports Mr. Hurley advised that Mr. Valente had provided the following update to the informal group in Town advising him with regard to his work on a proposed new Minuteman Regional High School Agreement (MRHSA) —of which Mr. Hurley is a member: Part of the new proposal addresses financing capital projects, including a new or renovated Minuteman Regional High School (MRHS). Included in the latest version is a suggested proposal that would include the cities of Medford, Waltham, and Watertown as full members of the MRHSA. If they are not included as full members (who contribute funding for capital projects along with for the operating expenses), then it is being suggested they might be assessed some amount (based on a proposed formula for all communities sending students to MRHS) for capital costs. A presentation on the proposed new MRHSA by the MRHS Superintendent Dr. Edward Bouquillon to the MRHS School Committee is scheduled in October. If accepted by that Committee, then all 16 member communities [Acton, Arlington, Belmont, Bolton, Boxborough, Carlisle, Concord, Dover, Lancaster, Lexington, Lincoln, Needham, Stow, Sudbury, Wayland, & Weston] would be required to vote to approve the proposal. The new MRHSA also will need approval of the Commissioner of the Massachusetts Department of Elementary & Secondary Education (DESE). Mr. Hurley left the meeting at 10:40 a.m. Mr. Kanter advised that Jon Himmel, Co -Chair of the Town's Permanent Building Committee, has advised that he has developed a detailed model of what he believes the Town's process should be for its capital projects. He has proposed that there be a joint meeting of this Committee and the Appropriation Committee to hear about his model and provide him feedback on it. Recognizing that the Appropriation Committee normally meets in the evenings, there will be discussions after the Fall STM about holding such a joint meeting when it would be practical for most members of both committees to attend. Adjourn: A Motion was made and seconded at 10:50 A.M. to adjourn. Vote: 4-0 These Minutes were approved by the CEC at its meeting on October 10, 2013. Page 6of6