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HomeMy WebLinkAbout2014-07-10-AC-min 7/10/14Minutes Minutes Town of Lexington Appropriation Committee July 10, 2014 : ReedRoom,Town OfficeBuilding,7:30p.m. : Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Mollie Garberg;Alan Levine;Beth Masterman; Susan McLeish; Eric Michelson;Andrei Radulescu-Banu; Rob Addelson (non-voting, ex officio). Members Absent:Richard Neumeier Other attendees: Carl Valente, Town Manager; Theo Kalivas, Budget Officer; David Kanter, Capital Expenditures Committee; Robert Cohen, Town Meeting Member The meetingwas calledto order at 7:32p.m. Announcements: 1.Changes in the Appropriation Committee membership were reviewed. Mr. Radulescu-Banu andMs. Masterman have joined the Committee filling vacancies created by Ms. Schonfeld andMr. Cohen. Mr. Cohen reported that he recently resigned because his professional commitments conflict with servingon the committee. He thanked the members for their support. Liaison Reports: 2.Mr. Levine reported having attended a meetingregarding the 20 year contractthat the Town is negotiatingfor solar panels on six buildings in Lexington. Solar panels forthe Hartwell Avenue town property are not included. Mr. Levine is comfortable that the financial analysis for this project is reasonable. It is anticipated that the contract will be presented th to the Board of Selectmen on July 28.It was notedthat this is a complicated project, partially because the regulations governing solar electricity have beenfluid. There is a 2016 deadline for accessing a capacity restriction.Mr. Levine suggested talking directly toMark Sandeen, Chair of the Sustainable Lexington Committee, for more detailed information. Mr. Levine reported that he attended the first meeting of the Ad hoc School Master Planning Committee. The consultant for this project is currently meeting with the principals of all the schools to assess the capacity of the buildings as they are presently used. The School Administration Building will also be evaluated. The next meetingof this committeeis tomorrow th (July 11). The consultants expect to issue a report in early September that will be used to determine the need for expandingschool capacityin the near future. Aneed for such funding will influence the decision whether to holda fall Special Town Meeting(STM). It was noted that the Townhas not yet set a date fora special election to replace Deb Mauger, who is resigningas a member of the Board of Selectmen. Adjustments to the FY2014budget 3.:Mr. Addelson reviewedthe threetransfer accounts/mechanisms that he recommends usingto balanceline items inthe FY14 budget: 1 7/10/14Minutes Reserve Fund: The Appropriation Committee controls the use of funds in theReserve Fund thatcan be used to cover line item deficitsthat result from unanticipated expenses.The current balance of the FY2014 Reserve Fund is approximately $900,000. Salary Adjustment Account: Some salaries arenot finalized at the time of the Annual TownMeeting. With BoS approval,fundsfrom this account can be transferred to the appropriate line item for the finalized salaries. 3% Transfer: The “3% transfer rule” allows the town to transfer unused funds from a departmental budget to cover deficits in another part of the budget. The transferred funds cannot be more than 3% of the budget of the department from which they are transferred.The Appropriation Committee and the BoS must approve these transfers. Mr. Addelsonreviewed the recommended amounts to be transferred, the sourcesforthose funds, and the purpose for the transfers as outlined in thehandoutthatincluded the FY2014 Proposed Year End Budget Adjustments.TheBoS has approved/endorsedthe proposed transfers from all three sources, although two of the amounts have increased since they voted.They will be asked to revote, as follows: To increase the Salary AdjustmentAccount transfer by $12,000. This will allow a50-50 split between the budgets for the two fiscal years that are included in the first payroll check each year.Past practice used a 60-40 split. To increasethe transfer authorized by the “3%transferrule” by $6,700 to cover Legal Services associated with the current contract negotiations for the solar panels. Based on Mr. Addelson’srecommendations, the following votes were taken: A motion was made and seconded to approve the transfer of $76,000from the Reserve Fund to cover unanticipated expenses for unemployment insurance and property insurance, as discussed and as outlined in the handout. The motion passed. VOTE: 8-0 A motion was made and seconded to approve the transfer, under the 3% rule,of$110,370, which includes the $6,700 discussed above,asoutlined in the handout.The motion passed. VOTE: 8-0. A motion was made and seconded to endorse the transferof $128,400, which includes the $12,000 discussed above, from the Salary Adjustment Account for salaries in specific departments, as recommended above andas outlinedin the handout. The motion passed. VOTE: 8-0. Mr. Addelson’shandout also identified a Snow and Ice FY14 budget deficit of $652,712. He explained that the deficit would likely be funded, without the need for further Town Meeting action, from the following sources: $300,000from the set-aside in the FY15 budget for FY14 snow and ice removal, a mechanism that is allowed by state regulation. 2 7/10/14Minutes The balance of $352,717 from theincrease in FY2015 state aid, which exceeded the estimateused in setting the FY2015 budget at the Annual Town Meeting by approximately $890,000. FY15 Reserve Fund Transfer Request: 4.Mr. Valente asked thecommittee to consider a FY15 Reserve Fund transfer to support the Hartwell Avenue/Alewife Station shuttle service, which has recently experienced a significant cut in federal funding. The non-profit 128 Business Council, a local Transportation Management Association, operates the service and guarantees a taxi ride home, if necessary. Passengers from contributing properties pay $1.00 each way; others pay $3.00.Town support of thisservice is part of the Town’s effort to promote business activity on Hartwell Avenueand minimize single car trips.The Council reports that ridership has been exceptionally good for a new service. The program’s grosscostsare$172,000 annually. The Town received afederal grant covering 80% of the costs topilot this service from August 31, 2013 to August 30, 2015. During the first year, four of the seven property ownerson Hartwell Avenue providedmost of the remaining 20% and the Town contributed $3,500. The Town recently learned that the federal grant isbeing terminated as of August 30, 2014, primarilybecause of the federalsequester. The Town is asking the Hartwell Avenue property owners to assume 60% of the next year’s costs with the understanding that the Town will assume 40%, i.e. $69,120. The Town has received a verbal commitment from two of theparticipating property ownersand a written commitment from the other two. One possible source of the Town’s contribution would be the Transportation Demand Management (TDM)Stabilization Fund. Both the BoS and the Transportation Advisory Committee (TAC) supported the use of those funds for this purpose, although TAC asked that this be a one-year-only request. However, becauseTDMfunds are not available withoutTown Meetingapproval,and Mr. Valente needs assurance of available funds by early August, he did not pursue this option. Discussion focused on the value of having this service, the desire for the Hartwell Avenue property owners to contribute as much as possible, and support for having the bus provide service to Lexington residents. Mr. Valente said that the 128 Business Council has been asked to include a Lexington stop during its reverse commute. It was generally agreed that an immediate vote to release the funds would beprematureas awritten commitment has not yet been received from all participating Hartwell Avenue property owners.A motion was made and seconded to indicate the Committee’s willingness to support the 40% funding from the Reserve Fund when the need arises. The motion passed. VOTE: 8-0 Minutes: 5.A motion was madeand seconded to approve the Committee’s minutes for February 26, 2014, March 19, 2014, April 6, 2014, and May 7, 2014.The motion passed. VOTE: 6-0-2. Future Meetings: 6.It is unlikely that there will be an August meeting. Mr. Parker will distribute a Doodle poll for an early September meeting; election of officers will be included on that 3 7/10/14Minutes agenda. It is probable that there will be a NovemberSTM, which will require weekly meetings in October. An effort will be made to hold meetings on Thursday evenings; the next best day of the week is Tuesday, followed by Wednesday. The meeting was adjourned at 8:57p.m. A list of documents and other exhibits used at the meeting is set forth below. Respectfully submitted, Sara Arnold Approved September 4, 2014 Exhibits 1.Agenda,posted by Glenn Parker, Chair 2.Agenda Item Summary, Lexington Board of Selectmen Meeting, June 30, 2014,including FY2014 Proposed Year End Budget Adjustments 4