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Home My WebLink About2015-02-19-AC-min 02/19/15 AC Minutes Minutes Town of Lexington Appropriation Committee February19,2015 : Public Facilities Building, Room 221, 7:30 p.m. : Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Alan Levine; Beth Masterman;Susan McLeish;Eric Michelson; Rob Addelson (non-voting, ex officio) Members absent:Andrei Radulescu-Banu; Mollie Garberg;Richard Neumeier Other attendees: Sandy Beebee, Lexington Parents Advocacy Group The meeting was called to order at 7:39p.m. Minutes: 1.A motion was made and seconded to approve the February 5, 2015Minutes, as amended, and the February 12, 2015 Minutes, as amended. The motion was approved. VOTE: 6-0 Liaison Reports: 2.Ms. McLeish reported that Vicki Blier, Co-Chair of the Tax Deferral and Exemption Study Committee, wasconcerned about inaccuracies in the Lexington Minuteman’sarticle on her recent presentation to the Board of Selectmen (BoS), as discussed at this Committee’s meeting th on February 12.Ms. Blierhas contacted the newspaper’s editor. It was suggested that Ms. Blier also submit a letter to the editor for publication. School Facilities Project “Consensus” Document. 3.Mr. Parker reported on a meeting with the Town Manager, Mr. Addelson, the Superintendent of Schools, and representatives ofthe School Committee, Capital Expenditures Committee, BoS, and Permanent Building Committee. This working session provided an opportunity to begin draftinga document that would presenta consensus position on the next steps associated with the School Building Master Plan. In response to ongoing and future school overcrowding issues, an appropriation request for approximately $4.0 million is being proposed fora spring 2015 Special Town Meeting(STM).The STM article would provide funding to develop various school building projects to differing levels of design and/or development of construction documents. The current draft of the consensus document, a copy of which was circulated at the meeting, identifiesa process for releasing fundsappropriated for work beyond the design phase based on information developed during the design phase.The document would give the BoS final authority to releasefunds.Mr. Parker stressed, however,that the various committees involved in this process would need to work together and that the BoS Chair has assured that the BoSwill not act without input from the finance committees.It was generally agreed that there is a need for flexibility in the event that enrollmentsturns out to besignificantly higher or lower than currently projected. Mr. Addelsonstatedthat the funds would not be appropriated to the School Department budgetbut to the Facilities Department budget.To ensure thatall up-front design expenditures for any particular project can ultimatelybe incorporated into a debt exclusion for that project, should it proceed, he plans to lay out in themotion for therequestedappropriation the anticipated spending by buildingfor each component. 1 02/19/15 AC Minutes There wasdiscussion whether the draft consensus document shouldconsiderredistricting and other possible administrative optionsfor providing some immediate relief at the schools which are currentlyover-capacity. There were also comments about the school buildings and sites thatwill be studied. It was noted that the Town plans to submit a Statement of Interest to the Massachusetts School Building Authority regarding the Town’s needto rebuild the Hastings Elementary School. The Town won’t know before December 2015 whether the project will be accepted for State funding assistance. At that point,the Town will need to decide whether to proceed on that project. Report to the 2015 Special and Annual Town Meetings: 4.Mr. Parker hopes that afirst th group of articles can be reviewed at the February 26meeting and that asecond group of articles can th be reviewed at the March 5meeting. He requested that all draft write-ups be submitted to him by th March 12.Discussion/commentsabout subjects that maybe part of the report includedthe following: Debt Service Stabilization Fund:This is useful for the smaller projects and can help stabilize the tax rate when there are peaks that are considered untenable. Adjust Retirement Cost of Living Adjustment(COLA)Base for Retirees:Mr. Addelson provided background information on this article. State law provides for a $12,000 base to which an annual cost-of-living adjustment may be applied but that base maybe increased by local option up to $13,000. The Massachusetts Public Employee Retirement Administration Commission (PERAC), whichprovides oversight and regulation of the state’s public pension systems,recentlyadopted a $13,000 base for members of the State Retirement System and the Teachers’ Retirement System, which includes Lexington teachers. The base for Lexington municipal employees is still $12,000but the Retirement Board has recommended that it be increased to $13,000.Mr. Addelson noted that PERAC has encouragedpublic employee retirement systemsto become fully funded by 2025 or 2030 rather than using the current state-mandated2040 target, and Lexington’s Retirement Board is considering such a change. The proposed increase in the COLA base would increasethe amount the Town needs to set aside annually to reach that goal. In response to concerns about the impact on the Town budget of an earlier full-funding target date,Mr. Addelson suggested that this is an issue the Committeemight wish to raise atthenext budgetsummit. Other Post Employment Benefits(OPEB):There was discussion about this year’s proposed appropriation to the OPEB stabilization fund. Funds for thiseffort are currently being drawn fromthe health insurance trustfund, which is no longer active.In response to questions, Mr. Addelson saidthat the health insurance trustfund could be drawn down at a faster rate, although a minimum balance should be retained in the event the Town withdraws from the state’sGroup Insurance Commission (GIC)and returns to a self-insurance program. STM 2 Article for Cary Memorial Building Sidewalk:The current designincludes granite pavers for the handicappedunloading zone. These add $30,000 to the cost, bringing the budget request to $192,000.It isn’t clear whether the Commission on Disability has reviewed the latest design. STM 2 Article for Pump Station Repairs:Engineering studies to determine the best way to address the pounding noise that is being heard in the Gleason Road area are going forward. There is a request for $750,000to address the problem.The necessary funds would be appropriatedfrom the wastewater fundretained earnings, which has a current balance of approximately $2,000,000. 2 02/19/15 AC Minutes A motion was made and seconded to support the anticipated STM 2 Article 2 for pump station repairs. The motion passed. VOTE: 6-0 STM 2 Article for Capital Improvement Program:This STM articlewill request$350,000for School Departmentfurniture, fixtures, and equipment(FF&E). The School Department used $350,000 from its FY2015 FF&E appropriation to help fund the installation of prefabricated units at Lexington High School (LHS). This step was necessary to allow opening of the High th School intensive learning program by September 2015. (On February 12, this Committee approved a Reserve Fund transfer of $150,000 for the balance needed to complete the LHS prefab units.)To offset this appropriation, the School Department willwithdrawan itemin its FY2016 school capital appropriation request for $350,000 for Diamond Middle School (Diamond) “Space Mining.” A motion was made and seconded to support STM 2Article 6for the School Department FF&E budget. The motion passed. VOTE: 6-0 Thereensued a brief discussion of Mr. Parker’s proposed assignments for write-ups on the FY2016 operating budgetandother ATMArticles. th Next Meetings: 5.ABudget Summit is scheduled forFebruary 25, and this Committee’s next th meeting will be held on February 26. The meeting was adjourned at 10:10p.m. The documents used at the meeting are listed below. Respectfully submitted, Sara Arnold Recording Secretary ApprovedJuly 9, 2015 Exhibits 1.Agenda,posted by Glenn Parker 2.School Building Project Consensus Plan, Final Draft for the 2015 Lexington Budget Summit, February 19, 2015 3