HomeMy WebLinkAbout2015-10-30-CEC-minMinutes of the
Lexington Capital Expenditures Committee (CEC) Meeting
October 30, 2015
Location and Time: Town Office Building, Reed Room, 8:30 A.M.
Members Present: Jill Hai, Chair; David Kanter, Vice -Chair & Clerk; Elizabeth Barnett;
Rod Cole; Wendy Manz
Members Absent: None
Others Present: Elaine Ashton, Town Meeting member; Sara Arnold, Recording Secretary
Documents Presented:
• Notice of Public Meeting for CEC Meeting, October 30, 2015
• Department of Public Works (DPW) FY2017— FY2021 Capital Improvement Projects
(CIPs)
• Draft Updated CEC Subject Areas & Liaison Assignments for Fiscal Year 2016
(Distributed by Mr. Kanter's e -mail to the other Committee members and Ms. Arnold,
October 27, 2015 6:17 P.M.)
Call to Order: Ms. Hai called the meeting to order at 8:30 A.M.
Member Concerns and Liaison Reports: Ms. Hai reported on the first meeting of the
Town Manager's Working Group on Finance (Finance WG) held on October 29th. The
group discussed parameters for a financial analysis that would help evaluate the potential
impact on the taxpayer of the myriad School- and Town - building projects. It was generally
agreed that the Town should continue to support $5.0 million annually for capital projects
supported primarily by the tax levy, consistent with past practice, and that the debt service
should not represent more than an additional 5 %. Other parameters for the analysis were
identified at the Finance WG meeting, as follows:
• Specific Projects to be Included:
(1) Diamond Middle School (Diamond) and Clarke Middle School (Clarke)
renovations /additions;
(2) The purchase and renovations of the Armenian Sisters Academy building on
Pelham Road;
(3) The Lexington High School heating, ventilation, and air - conditioning upgrade;
(4) Remodeling of the building at Minuteman Regional Technical High School
campus to accommodate the pre- kindergarten (Lexington Children's Place)
program;
(5) Remodeling at the Harrington Elementary School;
(6) A new Hastings Elementary School (Hastings) without Massachusetts School
Building Authority (MSBA) funds;
(7) A new Fire Department headquarters; and
(8) A new Police Department station.
A new high school is not being included because the project is not anticipated within
the next five years.
• Taxpayer Tolerance: There is general agreement that there shouldn't be sudden,
large, tax increases. A first model will be created showing a 1% increase in the
excluded debt addition to the tax burden.
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
October 30, 2015
• Term of the Debt: The Town usually issues 20 -year bonds; the group questioned
whether a longer term would impact the Town's AAA credit rating and, thus, would
increase the interest rate. Regarding the former, the City of Newton and Town of
Concord recently issued bonds for school projects with terms of 30 years and 23 years,
respectively. Their bond ratings were not affected, indicating that Lexington's risk is
minimal. Carl Valente, Lexington Town Manager, commented that the goal is not a Triple
A rating, but to sustain the Town's ability to provide services.
• Drawing on the Capital Stabilization Fund: It is expected that there will be only
one more year when $2.0 million can be added to this fund. It is anticipated that
funds will be withdrawn to control peak tax -rate increases or the annual rate of
increase generated by the School- and Town - building projects being contemplated.
Comments made during the discussion included:
• Lexington High School capacity needs to be evaluated.
• System -wide enrollment projections need to be continually updated.
• It is understood that a bond's term is not supposed to exceed the life expectancy
of the funded asset.
• There are some concerns in the community regarding the actual costs to be
incurred for renovations to the Pelham Road facility, which the Town is interested in
purchasing. The Town cannot get more detailed information about the facility's
condition until it is owned by the Town.
• The Visitors' Center will not be included in the analysis. Its uses are still being
developed and it is anticipated to be covered within levy debt.
CEC reporting to the November 2, 2015, STM #1 —debate expected to begin on
December 2, 2015: It was noted that writing this Committee's report to the STM #1 was
challenging because the available information is limited. It is necessary to know the
motions as soon as possible. Data regarding Clarke and Diamond should be available on
November 10th, but the School Committee still needs to make decisions. Ms. Hai agreed to
distribute a chart that may help in this process.
Pre - Presentation Discussion of DPW FY2017— FY2021 CIPs: Questions for the DPW
were developed for each CIP, as appropriate. It was noted that bandwidth was of concern
with the demands on this Department. Ms. Barnett will create a listing of the questions that
will be provided to that Department so it has them not later than early on the coming
Monday (November 2nd)
CEC reporting to the November 2, 2015, Special Town Meeting (STM) #2— debate to
begin that date:
Ms. Hai led a discussion of what spoken reporting would be planned for that STM #2. As
she does not expect to be able to be present, it was agreed:
(1) Mr. Kanter would make all the called -upon reporting, but other members would
respond on behalf of our Committee if questions arose related to their departmental or
liaison assignments;
(2) Under Article 1 (Reports of Committees, etc.), all that was needed was to move
to have our report to the Town Meeting received and placed on file; and
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
October 30, 2015
(3) The only supplemental comments to be made as called upon to report on each
Article in our report would be based on the italicized text in that report under Article 4
(Appropriate For Water System Improvement) & Article 6 (Appropriate Funds for Fire
Station Study).
It was agreed that there was no need for the Committee to meet before the STM.
Mr. Kanter will cancel the meetings that had been posted for that purpose on
November 2 & 9, 2015 —and release the room reservations associated with those
meetings.
Mr. Cole left at 9:40 A.M.
Member Concerns and Liaison Reports (continued):
A Motion was made and seconded to approve the Updated CEC Subject Areas & Liaison
Assignments for Fiscal Year 2016 as had been previously distributed. Vote: 4 -0
No actions were taken on the following Agenda items:
• Updates on any new, public, information from the Board of Selectmen, the School
Committee, or other Town bodies regarding the Multiple School Construction Projects
(now including the land purchase and improvements at 20 Pelham Road along with
access improvements to that site)
• CEC reporting to the 2016 Annual Town Meeting
• Any other urgent business that may properly come before the Committee that could
not be foreseen by the Chair
• Approval of Minutes
Adjourn: A Motion was made and seconded at 10:36 A.M. to adjourn. Vote: 4 -0
These Minutes were approved by the CEC at its meeting on November 17, 2015.
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