Loading...
HomeMy WebLinkAbout2015-01-06-CEC-min Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 Town Office Building, Reed Room; 8:00 .. Location and Time: AM Jill Hai, Chair; David Kanter, Vice-Chair & Clerk; Rod Cole; Members Present: Wendy Manz Elizabeth Barnett Member Absent: Rob Addelson, Assistant Town Manager for Finance; Patty Moore, Others Present: Budget Officer; John Livsey, Town Engineer, Department of Public Works (DPW); Bob Pressman, Community Preservation Committee (CPC); Russell Tanner, Representative of the First Parish Church in Lexington; Sara Arnold, Recording Secretary Documents Presented: Notice of Public Meeting/Agenda for January6,2015 FY2016ÃFY2020 Capital Project Requests with Results of CEC Review; based on December 15, 2014 review (Distributed at December 16, 2014, meeting) CPA Fund Projected Revenues and Expenditures; CPA model \[with minor correction by David Kanter\]; Prepared December 18, 2014 (Distributed by Mr. KanterÈs e-mail to the other CEC Members and Ms. Arnold, December 20, 2014 1:54 ..,) PM FY16 CPA Project List As of December 18, 2014, CPC Meeting, Revised by Mr. Kanter (Distributed by Mr. KanterÈs e-mail to the other CEC Members and Ms. Arnold, December 23, 2014 10:30 ..) PM Draft #2 Minutes of the CEC Meeting, December 9, 2014 (Distributed by Mr. KanterÈs e-mail to the other CEC Members and Ms. Arnold, December 18, 2014 9:30 ..) PM Draft Minutes of the CEC Meeting, December 15, 2014 (Distributed by Mr. KanterÈs e-mail to the other CEC Members and Ms. Arnold, December 21, 2014 0:37 ..) AM Draft #2 Minutes of the CEC Meeting, December 16, 2014 (Distributed by Mr. KanterÈs e-mail to the other CEC Members and Ms. Arnold, January 4, 2015 9:02 ..) PM Updates to Draft #2 Minutes of the CEC Meeting, December 16, 2014 (Distributed by Mr. KanterÈs e-mails to the other CEC Members and Ms. Arnold, January 5, 2015 10:47 .. & 12:15 ..) AMPM Ms. Hai called the meeting to order at 8:05 .. Call to Order: AM Updates to the FY2016Ã2020 Capital Improvement Projects (CIPs) and Other Proposed Capital Projects: DPW: Mr. Livsey provided updated information regarding two DPW-proposed capital projects, as follows: Center Streetscape Improvements (#321): The FY2016 funding request for this project (with $8 million being the overall remaining cost of this project, including FY2016 funding) has been reduced from $4.0 million to $2.5 million. The proposed FY2016-funded phase now addresses Massachusetts Avenue from Woburn Street to Grant Street and includes a traffic signal and several new crosswalks at Woburn Street; Massachusetts Avenue sidewalk replacement, with appropriate curb Page 1 of 7 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 cuts; paving Massachusetts Avenue, maintaining current crosswalks; new trees and street furniture (at the bus stop and the area used for the FarmersÈ Market); and new lights for the street and pedestrian crossings. He added that the sidewalks will have a five-foot-wide concrete center strip and wire-cut brick edges. CEC Mr. Kanter requested a sketch and the cost allocation for Comments/Questions: each of the components of the downsized project. It was also recommended that descriptions of the project highlight its safety elements. It was noted that a jurisdiction question still needs to be resolved. There are differing opinions regarding whether the Historic Districts Commission (HDC) or the Board of Selectmen (BoS) has final authority over the design of elements within any of this space. The outcome could determine the final design and, thus, the cost estimate. Pump Station Upgrades (#529): This CIP includes for FY2016 what has been its recent usual$600,000 annual requestÄthat is still needed for what had been contemplated, but an urgent, unexpected, need to address problems experienced with the Gleason Road force-main sewer line presents an estimated, additional, approximately $700,000 funding request for work principally at the Main Pump Station off Bedford Street adjacent to I-95/Rt 128. Although the three pumps, themselves, in this station do not need replacing at this time, they require new drive systems (motors, variable-frequency controls, new instrumentation, and associated code upgrades) to address the problem along the line. It is also planned to perform a cleaning of the line, but it is expected that can be funded using a prior appropriation under the Sanitary Sewer System Investigation and Improvements Program (#524) without a specific, supplemental, funding request. First Parish of Lexington ChurchÈs Request to the CPC for Funding under the Community Preservation Act (CPA): In the initial absence of a representative from that church and having attended the churchÈs presentation to the CPC, Mr. Kanter presented the application to this Committee. He included the evolution of the request (since first requesting construction funding) and the CPCÈs response to both the initial request and the current request for funding in the amount of $40,000 toward a Historic Structure Report on the churchÈs sanctuary building. That report is expected to cost $52,660 with the church to fund the $12,660 balance. Mr. Kanter advised that the CPC made clear that recommending this funding request to Town Meeting did not in any way reflect any potential support for follow-on funding of any work on the building. Mr. Tanner advised that the congregation is planning a capital fundraising campaign to help support the preliminary work and the reconstruction that is needed. He noted that churches in other communities have received CPA funding. Mr. Kanter advised Mr. Tanner that Lexington has CEC Comments/Questions: previously accepted that some work on private assets was eligible under the CPA and, in the instant case, that the CPC had already deemed the work under the current application is eligibleÄand to that this Committee has raised no objection. However, the CPC, this Committee, and then our town Meeting if the CPC recommends funding, must also judge whether that any use of funds under the CPA is of sufficient priority against other demands on that funding that it warrants being so funded. In general, the Town has a higher bar set Page 2 of 7 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 for the use of its funding under the CPA for any private asset when there are competing needs for CPA-eligible work on Town assets. This Committee acknowledged that the churchÈs standing is enhanced because it on the Lexington Green, and there is value in supporting this project because it serves to properly document an important element of the area surrounding the Green, but that, in and of itself, does not assure any follow-on request for fundingÄin whole or in partÄwill be similarly supported, even by the CPC. In summary, the following points were stressed: The Historic Structure Report must be available as a public document; The Town has serious needs for capital projects, which means it will be necessary to prioritize projects; This CommitteeÈs support of funding the report does not necessarily translate into support for using CPA funds for future construction; and The CPC must recommend to Town Meeting support for CPA funding of any project before Town Meeting can even debate whether so to fund a project. This Committee only shares its position on the project with the CPC and, if the CPC recommends to Town Meeting it be funded, also submits its own recommendation to that Town Meeting. A Motion was made and seconded to take a preliminary position to support the First Parish in LexingtonÈs CPA funding request of $40,000, as discussed. Vote: 4Ã0 Updates: Mr. Addelson introduced Patty Moore, the TownÈs new Budget Officer. He then provided financial updates on the following capital projects: Department of Public Facilities: Community Center Sidewalk (#966): An FY2016 $50,000 funding request is contemplated for creating a design for an additional sidewalk to the new Community Center from Marrett Road. LHS Heating Systems Upgrade Phases 2 & 3 (#564): Although the design funding (estimated at $150,000) can come from the General Fund, the $2.2 million construction cost is a likely candidate for a debt exclusion. A Bond Anticipation Note (BAN) can be issued before a referendum. Clarke Middle School Circulation and Parking Improvements#934): The ( projected design cost has been reduced to $150,000 and can come from the General Fund. The estimated construction cost has recently been increased to $10.0 million, making this a likely candidate for debt exclusion. A BAN can be issued before a referendum. Renovation & Update of Diamond Kitchen and Cafeteria (#900): This project has been renamed ÅMiddle School Space MiningÆ and will include projects at both Diamond and Clarke Middle Schools; the project will include a FY2016 $1,024,000 funding request. Food Service LHS Dishwasher and Installation (#953): There are plans to use the Food Service Revolving Fund to pay for this project. Increases in school-lunch fees will help replenish the fund. Using a revolving fund does not require an appropriation, although the project likely will be included in the FY2016 Page 3 of 7 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 Preliminary Budget & Financing Plan (ÅWhite BookÆ)Äwhich this Committee encourages be done. Cary Memorial Building Sidewalk Enhancement (#965): This project will include an FY2016 $335,000 funding request. As noted earlier regarding the Center Streetscape Improvements, it has yet to be determined whether the HDC or the BoS has jurisdiction over the design. The amount of the request is sufficient to cover the current estimate if the surface design should need to be brick rather than the concrete (with brick band) endorsed by the BoS. Fire Department: Fire Pumper (#964): The estimated cost for FY2016 remains at $500,000. Police Department: Software (Police & Fire/EMS) (#477): The funding request has been reduced from $721,406 to $705,900 because of a reduction in the request related to having a program manager. DPW: Bikeway Bridge Renovations (#883): The request for funding has been changed to include $10,000 for design work in FY2016 and $70,000 in construction funding for FY2017. While this Committee had recommended CPA funding for the whole project, a CPA request will be considered for the FY2017 construction costs. Hartwell Avenue Infrastructure Improvements(#850): It isnÈt practicable to postpone just the Maguire Road portion of this project, and the other components are safety related, making it important to pursue this project. Pump Station Upgrades(#529): It hasnÈt been determined yet how to finance the project to address the critical issues with the Gleason Road force main. Battle Green Streetscape Improvements (#922): It was noted that this Committee considered the Harrington Road portion of this project as safety related and therefore of a higher priority than the rest of the project. That portion is being estimated at approximately $60,000 of the current request; the balance of approximately $140,000 is for other improvements. The Committee suggested that there are more important projects than the other improvements identified in this project. School Department: School Furniture, Equipment & Systems Program (#896): There have been no changes since the updated CIP was issued. There was discussion about the continued funding for the Cary Memorial Building renovations that are currently underway and this CommitteeÈs continuing interest in participating in the decision about whether any cash balance in the Community Preservation Fund (CPF) should be used. Mr. Addelson said that in any case the interest on the BAN needs to be paid, and this will need an appropriation. The Town may issue a rollover BAN to allow time for determining whether it makes sense to pay down the BAN-to- Bond transition with cash available in the CPF. Staff members are currently developing a debt-exclusion model that includes 20-year obligations for future projects incorporated into Page 4 of 7 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 the TownÈs existing debt obligations. The impact on the debt service within the tax levy and outside the levy limit will be evaluated. A 5% metric is being used to estimate annual, not-excluded, debt-service increases. While the Town has both its General Stabilization Fund and the specific Capital Projects/Debt Service Reserve/Building Renewal Stabilization Fund (Capital Stabilization Fund) that could be used to pay for capital projects, including mitigating peak years of debt service, Mr. Addelson said the General Stabilization Fund is intended to offset revenue shortfalls, not additional expenses. There was discussion about this CommitteeÈs strong opposition to using the Capital Stabilization Fund to minimize the amount presented to voters for a project or to avoid a referendum. Mr. Addelson agreed that Stabilization Fund should be used to fund projects or to mitigate the impact of debt service, not to reduce project costs; and he noted that use of anyCapital Stabilization Fund requires Town Meeting approval. Updates and Discussion Regarding this CommitteeÈs Positions on the FY2016Ã FY2020 Capital Program and Potential Financing Plans: Ms. Hai reported on a meeting held on December 22, 2014, with Dr. Ash, School Superintendent; Margaret Coppe, School Committee Chair; Joe Pato, Selectmen Chair; Glenn Parker, Appropriation Committee Chair; Carl Valente, Town Manager; and Mr. Addelson. The discussion focused on the potential for six capital projects at Bridge, Bowman, Fiske and Harrington Elementary Schools, and at Diamond and Clarke Middle Schools, to be presented for design money at the upcoming Town Meeting to address projected school-enrollment increases. If the Hasting Elementary School rebuild/renovate project is eventually accepted for State partial funding, the Fiske project might not be necessary. There was no reference to a request for funds to address 2015Ã2016 space shortfalls at the elementary schools, but the identified projects did include a potential request for approximately $3.7 million (a preliminary Åball-parkÈ figure) to install prefabricated units for the fall of 2016. All numbers were qualified to represent per-square-foot costs only, no engineering, and therefore could be Åway offÆ. Ms. Hai reported that the schools are experiencing an immediate need for additional pre-kindergarten (Pre-K) space because of increased enrollment in that program. The plan is to start using space in the School Administration Building (Åold HarringtonÆ) this month. There is an understanding that 7,000 square feet of space can be worked on in that building without triggering the need for code upgrades throughout the whole building and without the need to get Town Meeting to approve funding; however, the Pre-K program needs additional space long-term. Ms. Hai reported that a debt-exclusion model including these projects is being prepared by Mr. Valente and Mr. Addelson, and it is expected to include several options. It will be th available for the January 15 Budget Collaboration/Summit and hopefully for the BoS th January 12 meeting. It was noted that design studies are needed to more fully understand the scope and cost of the projects that are being considered. Discussions indicated the following tentative project schedule: January 2015: Temporary expansion of Pre-K program elements into the School Administration Building; Fall 2016: Installation of pre-fabricated units at Bridge and Bowman is complete (a possible ball-park cost of $3.7 million); Page 5 of 7 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 Fall 2017: Harrington expansion is complete; it includes space for the Pre-K program; Fall 2017: Clarke expansion is complete, adding four to five additional classrooms; Fall 2018: Diamond expansion is complete, adding four to five additional classrooms. Ms. Hai indicated that there would likely be a request for design-study funds at the 2015 Annual Town Meeting (ATM) and a fall 2015 Special Town Meeting request for construction funds to install pre-fabricated units at Bridge and Bowman. Although ball-park costs have been provided by Symmes Maini & McKee Associates (SMMA) (consultants for a school master plan study) for a series of options, the costs were provided for comparative purposes only. More defined costs are expected by the th January 8 meeting of the Ad hoc School Master Planning Committee (AhSMPC). It was agreed that this Committee does not need a lot of detail from the School Committee at this point, but anoverall Ågame planÆ, such as outlined by Ms.Hai, should be adopted. Ms. Hai added that the Permanent Building Committee (PBC) will be meeting at 6:00 .. PM th on January 8 and the AhSMPC is meeting at 7:00 .. that night to discuss the school PM building projects being considered to address increasing student enrollment. The AhSMPC has invited the School Committee, this Committee, the Appropriation Committee, the PBC, and the BoS to join its meeting. Ms. Hai reported that Preparations for the Budget Collaboration/Summit Meeting 4: she will be identifying this CommitteeÈs concerns regarding the capital projects, and she will th be reporting on them at the January 15 Budget Collaboration/Summit. Towards this effort, she asked that Committee members review the projects and this CommitteeÈs preliminary positions, and forward any comments to her as soon as possible so they can be reviewed th at this CommitteeÈs January 13 meeting. Mr. Kanter reviewed Discussion of the CPAÈs Revenues and Expenditures: Mr. AddelsonÈs model that shows the estimated cash balance after all the funding requests currently supported by the CPC are approved by the 2015 ATM, and then modeling for the subsequent years through FY2025. The financing will be proposed by Mr. Addelson who will suggest how to best provide the funding through use of cash, a BAN, and/or bonding. Mr. Kanter referred the Committee to the FY16 CPA Project List As of December 18, 2014, CPC Meeting as a consolidated report on what the CPC has approved. He noted that the funding request for the Grain Mill Alley project had increased from the $16,000 presented to this Committee to the $18,000 presented to the CPCÄwith the increase to cover potential, additional, legal fees associated with the project. There were other questions about that project, and Ms. Hai reported that she will discuss them when she meets with Melisa Tintocalis, Economic Development Director, later this week. Mr. Cole advised that the previous discussion Member Concerns and Liaison Reports: at this meeting had addressed what he would have provided as this CommitteeÈs liaison to the AhSMPC. Mr. Kanter advised that Karen Simmons, Director of Recreation, has advised that she cannot do a single bid for resurfacing the last two Lincoln Fields as contemplated when she had briefed this Committee. Instead, she now expects that Field #2 will go out to bid next month with work to begin this June. Field #3 would go out to bid as soon as Page 6 of 7 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting January 6, 2015 practical after approval at the 2015 ATM with the work to begin immediately following successful completion of the work on Field #2. Approval of the three pending Minutes was deferred until a future Approval of Minutes: meeting. A Motion was made and seconded at 9:52 .. to adjourn. Adjourn:Vote: 4Ã0 AM These Minutes were approved by the CEC at its meeting on January 13, 2015. Page 7 of 7