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HomeMy WebLinkAbout2013-09-25-AC-min9/25/13 Minutes Minutes Town of Lexington Appropriation Committee September 25, 2013 Place and time: Ellen Stone Room, Cary Memorial Building, 7:30 p.m. Members present. Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Alan Levine; Eric Michelson; Richard Neumeier; Robert Cohen, Susan McLeish, Jonina Schonfeld, Mollie Garberg, Rob Addelson (non- voting, ex officio) Other Attendees: Dr. Paul Ash, Superintendent of Lexington Public Schools; Pat Goddard, Director of Public Facilities; Mary Ann Stewart, Chair, Lexington School Committee; Jim Osten, Chair, Lexington Town Meeting Members Association The meeting was called to order at 7:39 p.m. 1. Lexington High School Modular Classrooms and Educational Space: Superintendent of Schools, Dr. Paul Ash, and Director of Public Facilities, Patrick Goddard, made a presentation on the School Committee's proposal, to be considered at the upcoming special town meeting, to add modular classrooms and educational space to Lexington High School. Dr. Ash explained that increasing enrollment, especially among special needs students, is the primary driver of the need for more space. Enrollment is projected to increase 17% by 2016. The plan is to install two groups of modular units in courtyard spaces adjacent to or between existing buildings. The units would comprise 12 general education classrooms as well as 5 and 7 educational spaces for the extensions to high school age students of the two Intensive Learning Programs (ILPs) housed, respectively, at the Clarke and Diamond Middle Schools. These Intensive Learning Programs will serve students of high school age through age 22 as required by state law. The units have an expected life of 10 years and would act as a bridge to accommodate the educational needs of students until the high school can be renovated or replaced as discussed in the Lexington capital projects master planning effort. The project would be done in two phases, a larger phase to be done in 2014 and a smaller phase in 2015. Mr. Goddard explained that a 50% construction design document has provided the basis for an estimate of the construction cost of the 2014 phase of the project of $4.7M. However, by the time 90% construction design documents are completed, and the 2015 phase as well as non - construction costs including Furniture, Fixtures and Equipment (FF &E) are added, it is anticipated that the total costs will be $6.7M to $7.7M, and an amount in that range will be sought at the upcoming Special Town Meeting. The cost estimates assume that modular units are less expensive than new construction. Per square foot costs are estimated at approximately $261 /sq. ft. while new construction would be $350- $375 /sq ft. As a frame of reference, the cost of construction of the new Estabrook School will be in the range of $450 /sq. ft. Mr. Addelson made a presentation on options for financing the LHS modular additions. He explained that Chapter 44 of the Massachusetts General Laws categorizes modular structures as equipment, for which debt may not be issued for a term longer than 5 years; however, the Board of Selectmen may extend that authorization to 10 years, and it is anticipated that they will do so here. Mr. Addelson then presented four scenarios using the midpoint cost assumption of $7.2M and 9/25/13 Minutes various combinations of cash and 10 -year debt financing in an effort to hold the annual increases in the Town's overall non - exempt debt service costs to 5% (of the previous year's debt service costs). The first scenario showed $7.2M financed exclusively by debt; the second showed $5.47M financed by debt and $1.73M financed with cash; and the third showed $7.2M financed with debt but using $1.73M in cash used to offset debt service. The fourth scenario showed $7.2M financed with debt and the use of $2.62M in cash set aside before the project start to pay portions of the debt service in fiscal years 2015, 2016, and 2017, and was the only one of the four scenarios that would hold the annual debt service cost increases to 5% or less. It was noted that no debt exclusion will be required for financing the project and that the decision on how to proceed will be affected by as -yet unavailable projections of free cash and new growth. Mr. Addelson confirmed that initial projection estimates would be shared at the upcoming budget summit on October 3 rd 2. Community Center: Mr. Addelson and Mr. Goddard made a presentation on the second major item for which appropriations will be requested at the upcoming Special Town Meeting, the interim improvement plan for upgrades to the new community center at 39 Marrett Road (formerly referred to as 33 Marrett Road). The interim improvement plan was developed by the Community Center Advisory Committee (CCAC) in order to allow the community center to open in the building and to move the senior center and human services departments to the new space as soon as feasible. The plan contemplates the removal of some walls and the addition of doors, along with mechanical, electrical and plumbing work. The schedule of work projects occupancy to take place in May of 2014 with an estimated construction cost between $755,000 and $1,210,000. The exclusive source of funds would be the Community Preservation Fund. The Board of Selectmen has reviewed the plan and received the report of the CCAC, but has asked for a revision that would allow the Recreation Department to take occupancy alongside the senior center and human services department. 3. Draft Warrant: Mr. Addelson reported that a draft warrant will be presented at the Budget Summit on October 3 rd that includes: • A warrant article to cover financial `housekeeping' matters, including any needed transfers to /from the general fund, enterprise funds and the Community Preservation Fund; supplemental appropriations for upcoming election costs; and any changes to water and waste water assessments. • A warrant article to request funds for the Lexington High School Modular Classrooms and Educational Space project. • A warrant article to request funds for first phase or interim Community Center construction. • A warrant article to make any necessary transfers to /from stabilization funds. 4. Minutes: The minutes of the meeting of September 12, 2013 were approved, as revised. 5. Election of Officers: The committee re- elected Glenn Parker, Chair and John Bartenstein as Vice Chair and Secretary by a vote of 8 in favor, 0 opposed. The meeting was adjourned at 9:40 p.m. A list of documents and other exhibits used at the meeting is set forth below. 2 9/25/13 Minutes Respectfully submitted, Mollie Garberg Approved October 17, 2013 Exhibits 1. Meeting Agenda posted by Glenn Parker, Chair 2. LHS Space Drivers and Recommendation, prepared by Pat Goddard 3. LHS Financing Scenarios, prepared by Rob Addelson 4. Interim Schedule, Scope and Feasibility Estimate, prepared by Pat Goddard 5. "Lexington Community Center, CCAC Meeting," prepared by Steffian Bradley Architects