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HomeMy WebLinkAbout2014-01-14-CEC-min •'pJ5 pAgb7 NIpBl„�� LLn Minutes of the Aoti Lexington Capital Expenditures Committee (CEC) Meeting January 14, 2014 APRIL 19' Location and Time Town Office Building, Parker Room, 8.00 A.M Members Present Jill Hai, Chair, David Kanter, Vice-Chair, Bill Hurley, Wendy Manz, Beth Masterman Members Absent None Others Present Glenn Parker, Chair, Appropriation Committee, George Burnell, Member of the Town Meeting Members Association (TMMA) Executive Committee, Rob Addelson, Assistant Town Manager for Finance, Sara Arnold, Recording Secretary Documents Presented • Notice of Public Meeting/Agenda for January 14, 2014, Meeting • Town of Lexington, Massachusetts, Fiscal Year (FY) 2015 Town Manager's Preliminary Budget & Financing Plan, January 13, 2014 ("White Book") • Condensed Table of Contents from CAPITAL EXPENDITURES COMMITTEE REPORT TO 2013 ATM with Default Committee-Member Assignments for Report to 2014 ATM & Accompanying STM, a document prepared by Mr Kanter, January 6, 2014 • Community Preservation Committee's FY2015 Project List, January 9, 2014, with Final Votes to that Date • Draft #2 Minutes of the CEC Meeting, December 20, 2013 Call to Order Ms Hai called the meeting to order at 8.03 A.M Opening Comments Mr Kanter suggested that this Committee focus on Section XI (Capital Investment) in the White Book when writing this Committee's report for the March 24, 2014, Special Town Meeting (STM) and the 2014 Annual Town Meeting (ATM) He then reported on the previous night's Board of Selectmen (BoS) meeting saying that, subject to this Committee's review, the BoS is prepared to recommend that approximately $5 8 million be transferred into the Capital-related Stabilization Fund which, according to Deborah Mauger, BoS chair, along with mitigating debt service, would be used for sizable projects that are funded outside of a Proposition 21/2 debt exclusion An example might be the Visitor Center renovation project. He added that when the current draws for such debt service from that Stabilization Fund are completed, the funds currently in that Fund would be essentially depleted The BoS decided that it is more important to set this money aside to help with tax relief over the long term rather than seek tax relief immediately Comments for the January 15th Budget Collaboration/Summit Meeting IV and for this Committee's Report(s) to the Spring 2014 STM and 2014 ATM There was a quick review of the FY2015 capital requests in the White Book to determine if this Committee would comment on any specific projects at the Summit meeting or if any projects might require additional narrative in this Committee's report(s) to those Meetings Page 1 of 5 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 14, 2014 The following comments were made • Fire Station Headquarters Replacement Design The report's narrative will acknowledge that the $300,000 request may not be spent in FY2015, this is a placeholder It will be noted that this Committee supports the position that this is the Town's highest priority for replacing/renovating major buildings • School Building Envelope and Systems Program There are inconsistent amounts and scope in the White Book that need to be resolved • Community Center Renovation—Design and Sidewalk Construction After discussion about this project and its two components, it was generally agreed that this Committee will suggest the following at the Summit meeting Phase 2 is not ready for either of those Meetings, it is anticipated that additional funding will be needed for Phase 1 , and the sidewalk—which the Committee unanimously endorses—has its construction carried as $250,000, but as design has not even started, construction funding should not be appropriated along with the now-pending supplement for Phase 1 nor tied to Phase 2 The updated budget for Phase 1 should be available on January 21St • Hastings School Renovation/Replacement This Committee will discuss the absence of this project in the White Book. The Town has submitted a Statement of Interest to the Massachusetts School Building Authority (MSBA) as the Town's application for State funding Although a response from the MSBA is not expected before the 2014 ATM, it is reasonable to expect it in FY2015 and if the response is positive, the Town would have to act quickly to appropriate funds for the Feasibility Study This Committee, therefore, believes the project should be included in the FY2015 budget. • Lexington High School Modular Classroom Construction Mr Addelson explained that although this project was funded at the fall 2013 STM, it is included as a FY2015 project request because the impact of the debt financing is significant and needs to be integrated into all of the tables in the White Book. He added that the White Book explains that funding has already been approved, and Town Meeting will not be asked to vote on this again • Massachusetts Avenue Intersection Improvements It was noted that if this isn't approved as a State Transportation Improvement Program project, it won't be pursued Mr Addelson said that if approved, the $500,000 being requested would not be spent without specific, prior, approval by the BoS • School Classroom Furniture This Committee should ensure the scope of this project has been properly revised considering how items previously presented under this project have had other funding sources cited Mr Addelson confirmed that two projects, one for the Municipal Parking Lot Improvements and the other for Hastings Park Overhead Wires, have been removed from consideration in the FY2015 budget. Mr Kanter reported that he had e-mailed to this Committee a table showing the CPC's votes taken, so far, on the projects submitted to the CPC requesting FY2015 funding from the Community Preservation Fund He also said that it is anticipated that the sequence of Page 2 of 5 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 14, 2014 events on March 24th will be to open the ATM, recess it, open the STM and conduct its business, dissolve the STM, and resume the ATM ACTION ITEM Ms Hai agreed to draft and distribute to this Committee the statement she plans to make at the Summit meeting in response to the Town Manager's request for this Committee's comments on the Capital Budget in the White Book. Comments on the White Book Mr Kanter commented on the following additional items from his review of the White Book • Pages 3 and 5 There are some changes in the debt-service-mitigation tables, and he would like to know why • Page 5 When was the $350,000 for FY2016 exempt-debt-service mitigation first identified • Page 5 What is the reason for the reference to the Hastings School as a renovation rather than as a reconstruction? • Section I (Overview) The calendar for the FY2015 Budget Process is missing the STM • Section II (Revenues), Page 11-4 The source amounts for the Total amounts don't add to the Totals In response to questions about use of the Health Insurance Reserve, Mr Addelson explained that the Health Claims Trust Fund holds the cumulative balance from employee contributions for health insurance, and these funds can only be used for health-insurance costs Article 4 will show the use of $1 0 million from this Trust Fund to pay for health-insurance benefits for which the Town is responsible The result is that $1 0 million less will be needed from the General Fund—freeing that amount up as partial funding for the proposed FY2015 allocation to the Other Post-Employment Benefits (OPEB) fund which is toward the unfunded liability for retiree health benefits Mr Kanter reported that the lowest bid for the first phase of the High School Modular Buildings came in approximately $900,000 over the portion of the appropriation budgeted for that phase He did not know whether the project will be re-bid or whether there will be a request at this time for additional funding Content, Organization, and Responsibilities for the Committee's Report(s) to the 2014 ATM and the expected accompanying March 24, 2014 STM Mr Kanter's handout showing the condensed Table of Contents from this Committee's report to the 2013 ATM and draft assignments for each section was discussed In a few cases, more than one person is assigned to a topic He said each person should work on the "Programs" component of the report that correlates with their liaison assignments Where important to highlight, updates on previous projects would be included Also included would be forward references (but not extended descriptions) to the FY2015 projects that will be listed in the later section of the report(s) Page 3 of 5 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 14, 2014 ACTION ITEMS • Mr Kanter will begin preparation of the outline of the report, As has been the Committee's practice, supplemental text normally is not added in the Warrant Article Analysis and Recommendations section later in the report unless it provides a minority opinion or there are policy concerns that warrant being stated there • Ms Hai will draft the Executive Summary • Ms Manz will incorporate recently received information regarding ADA deficiencies into the material she prepares • To provide a starting point for the "Programs" write-ups, Mr Kanter will provide an electronic copy of the Committee's report to the 2013 Annual Town Meeting • Initial drafts of the "Programs" inputs should be prepared for the January 25th meeting • Final drafts of the "Programs" inputs should be submitted to Mr Kanter no later than noon on Sunday, February 9th • Mr Kanter will prepare a strawman report after he incorporates the member inputs, with the goal that this Committee will begin, if not started earlier, to take straw votes at the February 11th meeting • Once the major tables in the report have been prepared by Mr Kanter, he and Mr Hurley will work on proofing the cross-references in the report and the footnotes for those tables • Ms Hai will ask Mr Addelson if the two tables in the White Book can be merged to create the Town's five-year Capital Plan The goal will be for the final report to go to the printer on March 12th and to be published by March 17th—thereby meeting the objective of having the report available to all Town Meeting members at least one week before the first deliberations are expected on matters addressed in the report. Mr Burnell advised that he is preparing a report on the municipal capital Articles for the TMMA's booklet for the Information Sessions held by the TMMA before the Town Meetings Mr Kanter volunteered to provide Mr Burnell with this Committee's knowledge about those Articles Approval of Minutes A Motion was made and seconded to rescind the January 7, 2014, vote to approve the Draft Minutes of the CEC Meeting, December 20, 2013, and to approve, instead, the Draft #2 Minutes of that meeting Vote 5-0 Next Meetings It was decided that a meeting isn't needed on Tuesday, January 21St The next scheduled meetings are at 8.00 A M on the following Tuesdays January 28th, February 4th, February 11th, February 25th, March 4th, March 11th, and, tentatively, March 18th It is hoped that final approval of this Committee's report will be on March 11th Because Ms Masterman will be out of town on that date, a meeting will be scheduled for March 14th to get her vote on the report. Page 4 of 5 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 14, 2014 Liaison Reports Mr Kanter asked for an opinion from this Committee regarding the earlier-discussed proposed transfer of about $5 8 million into the Capital-related Stabilization Fund He believes that if a project requires a Proposition 21/2 debt exclusion, the referendum should be for the full amount of the project so that the public understands the full financial impact. He does not object to using the funds for an entire capital project that does not require such a referendum There was general agreement with that concept. Adjourn A Motion was made and seconded at 10.00 A.M to adjourn Vote 5-0 These Minutes were approved by the CEC at its meeting on January 28, 2014 Page 5 of 5