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Home My WebLink About2014-09-23-AC-min 9/23/14Minutes Minutes Town of Lexington Appropriation Committee September 23,2014 : ParkerRoom,Town OfficeBuilding,7:30p.m. : Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Alan Levine; Beth Masterman;Susan McLeish; Eric Michelson; Richard Neumeier;Andrei Radulescu-Banu; Rob Addelson (non-voting, ex officio) Members Absent:Mollie Garberg Other attendees: Ada Wong, Vice-Chair, Chamber of Commerce; Pam Shadley, Secretary, Chamber of Commerce; Melisa Tintocalis, Economic Development Director; Dawn McKenna, Chair, Tourism Committee The meetingwas calledto order at 7:35p.m. Visitors’Center: 1.Mr. Addelson reported that,at lastMonday’s Board of Selectmen (BoS) meeting,the BoStookpositions on two proposals that will assist the Town in assumingresponsibility foroperatingthe Visitors’Center,starting immediately. The BoS approved arecommendation asking this Committeeto transfer $35,000 from the reserve fundinto the Economic Development Department’s budgetfor use inFiscal Year 2015 (FY15).The funds, half of which areintended for personalservices (i.e., personnel) and the balancefor expenses, tobe used primarilyfor purchasing gift shop merchandise, will serveas a bridge loan. The BoSapproved the establishment of a Visitors’Centerrevolving fund with aspending limit of $100,000in FY15. The creation of a new revolving fundalso requires the approval of this Committee Mr. Addelson said that the Chamber of Commerce has assisted the Town in analyzing the Visitors’ Center financial needs through June 2015, and the transition has been orderly.In response to questions, he, Ms. Tintocalis, Ms. Wong, and Ms.Shadleyexplained: The current Visitors’ Center staff (one fulltime; four part-time)will becomeTown employees with benefits, includingparticipation in the retirement system or a deferred compensation program under the Omnibus Budget Reconciliation Act of 1990OBRA), ( depending on the number hours for which they are hired. The latter does not involveany Town obligations. AVisitors’ Center staff member with merchandising experience recently retired. Remaining is afull-timeemployee whoacts as the supervisor.Ms. Tintocalis will be overseeing the operation, and she is consulting withthe Tourism Committee. The unemployment issues, if the Town eventually decides to hire a contractor to operate the Visitors’Center, have not been fully identified, although the unemploymentinsurance for those employees is not significant. The value of the current inventory in the gift shop is beingassessed at wholesale. It has not yet been determined how the Chamber’s financial obligations to the Town, which are currently in arrears, will be handled. 1 9/23/14Minutes Visitors’Center renovations, as discussed last spring, have been put on hold andarepart of the current discussions. Technical equipment and capabilities, such as copying machines and the ability to accept credit cards, are being discussed. The current cash register will continue to be used. The largest gift shop vendors have agreed to work with the Town. Stock for the gift shop has not been replenished recently, and this is a necessary first step. Orders are being placed this week. Even if the Visitors’Center wasn’t selling merchandise, it would still servean important role in the Town, and it would still need to be staffed. If the gift shop can’t cover the costs of operating the Visitors’Center, additional funding will be requested at the Annual Town Meeting, which will provide this Committee with an opportunity to revisit the undertakinginMarch. Concerns and comments expressed by members of this Committee included the following: Before paying the Chamber for the gift shop inventory, the Town shouldconsider offsetting the amount the Chamber owes the Town. Both short term and long termVisitors’ Centerneeds should be identified. To be successful, this enterpriseneedsinput froma merchandiser with retailexpertise. Information fromother Towns that operate Visitors’ Centerscould be useful. The Town should evaluate the pros and cons of operating the Visitors’ Center with and without a gift shop. The Visitors’ Center is a valuable resource with or without the gift shop. An update on this mattershould be brought to this Committee no later than April 2015. Ms. McKenna explained that Carla Fortman, a founder of the gift store Crafty Yankee and volunteer for the Historical Society, shares her retail expertise for the gift shops in Lexington’s historic houses. Ms. McKenna believes the Town and the Historical Society can work collaborativelyand recommended there be joint discussions about the long term roles to be played by each. A motion was made and seconded to approve the transfer of $35,000 from the reserve fund to the Economic Development budget for the Visitors’Center, with $17,500 going to personalservicesand the balance for expenses of operating the facility.The motion passed. VOTE: 8-0 A motion was made and seconded to approve the creation of a revolving fund, with a FY15 spending ceiling of $100,000, for use in operating the Visitors’ Center.The motion passed. VOTE: 8-0 Budget Process: 2.Mr. Addelson reported that he expects the budget planning schedule, including the dates for staff presentations to the BoS, tobe available by the end of the week. Mr. Parker suggested that having Appropriation Committee coverage at the BoS budget presentations would be valuable; it is unlikely that these sessions are recorded. They are usually held over a period th of several days.It was noted that the first budget summit is planned for October 8. Mr. Addelson reported that Theo Kalivas, Budget Officer, is leaving Lexingtonand joining the Massachusetts Department of Revenue, Division of Local Services. It is anticipated that it will take two months to fill the position. 2 9/23/14Minutes Liaison Reports: 3. Ad hoc School Master Planning Committee (AhSMPC):Mr. Levine reported that he reviewed thetwo reports that were presented to the School Committee last week: one from theEnrollment Working Group (working group)and one from Symmes, Maini, and McKee Associates (SMMA), consultants for the school master planning project. Mr. Levinedeveloped school enrollment projections that suggest an increase of approximately 600 students between now and 2019, whereas the working group projects 672 new students.In either case, the increases need to be addressed. Mr.Levineaddedthat Clarke Middle School will need additional space in three to four years, but the immediate demandis at the elementary level in 2015-2016. Although Estabrook Elementary School (Estabrook) has four extra classrooms,the other five elementary schools are currently at or exceeding capacity, andthe anticipated student increases in 2015-2016create a situation that challenges Lexington’s educationalpolicies.Redistricting alone will not resolve the problem.The SMMA report suggests using general classroom space for art and music programs until a long term solution is implemented at the elementary level, but the School Committee has traditionally expressed strong supportforseparate art andmusic rooms. Mr. Levine concluded his report by saying that the Ad hoc School Master Planning Committee has asked SMMA to provide costs and pros and cons for addressing the 2015-2016 elementary school capacity needs by adding modular classrooms and/or by moving pre-kindergarten students from the Harrington Elementary School into the School Administration Building. The latter is complicated because, althoughthe School Administration Buildinghas some available space, the building will need to be upgraded to meet currentschool building codes. Water/Sewer Rates:Mr. Bartenstein reported that the BoS had recently set the Town’s Water and Sewer rates for FY2015, and that there would be a 2% increase in combined water/sewer rates for the average consumer. He hopes that,in the future, the BoSwill consider his suggestions with respect to the water usage projections that are used to determine the rate changesand the management of surplus revenue. Next Meetings: 4.Mr. Parker will arrange for meeting space on October 22 and October 29. The meeting was adjourned at 9:00 p.m. The documentsused at the meeting arelistedbelow. Respectfully submitted, Sara Arnold Recording Secretary Approved November 20, 2014 Exhibits 1.Agenda,posted by Glenn Parker, Chair 3