HomeMy WebLinkAbout2016-02-08-CEC-STM1-STM2-rpt CAPITAL EXPENDITURES COMMITTEE REPORT TO FEBRUARY 8, 2016, STMs 2016-1 & 2016-2
CAPITAL EXPIHNDITURES COMMITTEE
TOWN OF LEXINGTON
REPORT TO THE
February 8, 2016, SPECIAL TOWN MEETINGs (STMs)
2016-1 & 2016-2
Released February 1, 2016
Submitted by:
Jill I. Hai, Chair
David G. Kanter, Vice-Chair& Clerk
Elizabeth DeMille Barnett
Rodney Cole
Wendy Manz
Starts on Reverse
CAPITAL EXPENDITURES COMMITTEE REPORT TO FEBRUARY 8,2016, STMs 2016-1 &2016-2
Warrant-Article Explanations and Recommendations
Cites of the "Town Warrant"refer to "TOWN WARRANT, Town of Lexington, Special Town
Meeting 2016-1"and "TOWN WARRANT, Town of Lexington, Special Town Meeting 2016-2",
both for Meetings on February 8, 2016.
STM 2016-1
STM 2016-1, Article 2: Fund Funding
AMENDMENTS TO Authorization Source Committee Recommends
THE REGIONAL Requested
SCHOOL DISTRICT N/A N/A Approval(5-0)
AGREEMENT OF THE
MINUTEMAN
REGIONAL
VOCATIONAL
SCHOOL DISTRICT
"To see if the Town will vote, consistent with Section VII of the existing "Agreement With Respect
to the Establishment of a Technical and Vocational Regional School District" for the Minuteman
Regional Vocational School District, to accept the amendments to said Agreement which have been
submitted as a restated"Regional Agreement"bearing the date of December 21, 2015 to the Board
of Selectmen of each member town; or act in any other manner in relation thereto."
"DESCRIPTION: The new draft Regional Agreement, approved by the Minuteman School
Committee, streamlines the process for withdrawal by member towns, eliminates the five-student
minimum charged to member towns for capital costs, and requires out-of-district communities to
help pay for their share of capital costs of a new building. The 2014 Lexington Town Meeting
approved a similar version of this Regional Agreement. That version, however, was approved by
only 10 of the 16 towns in the Minuteman District. Unanimous approval is required. It is believed
that a consensus has been reached by all of the Minuteman communities and each Board of
Selectmen has agreed to call for a Special Town Meeting to take place by March 1, 2016 to
consider this revised Agreement."
[Town Warrant for 2016-1]
The above Description summarizes what the new, additional, amendments would achieve. The
Minuteman School has extensive material on all of the currently proposed amendments posted on-line at
<htt)://www.minuteman.or!IP e/196>, and information for Special Town Meetings at
<http://minuteman.schoolwires.net/Page/589> including, as item #3, a robust list of Frequently Asked
Questions (FAQ).
As stated in FAQ Question #21: Can my town reject the "escape clause" by which those towns leaving
the District may avoid paying their share of the capital expense for a new school?
Rejection of all or part of the proposed agreement by any of the 16 member towns will kill the
Regional Agreement. Defeat of the Regional Agreement may increase the likelihood that roughly
$45 million committed by the state to the Minuteman High School construction project will be
lost to the District. If the Massachusetts School Building Authority (MSBA)project fails, District
taxpayers will be required to pay approximately $100 million for repairs, without any help from
the MSBA.
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CAPITAL EXPENDITURES COMMITTEE REPORT TO FEBRUARY 8,2016, STMs 2016-1 &2016-2
For that reason, this Committee is reporting on this matter, as we did to the 2014 Annual Town Meeting,
despite the fact that all funding for the Minuteman district—including an apportionment of any capital
costs—would come through the assessment process and be an expense of the Operating Budget.
The current Minuteman facility is inadequate and in failing condition. This Committee joins in support
for a new facility and once again, this Committee unanimously recommends approval of the Amended
Agreement being presented.
STM 2016-1, Article 3: Fund Funding
APPROPRIATE FOR Authorization Source Committee Recommends
HASTINGS SCHOOL Requested
FEASIBILITY STUDY $1,500,000 GF (Candidate for Approval (5-0)
Excluded Debt)
"To see if the Town will vote to appropriate, borrow or transfer from available funds, an amount of
money, to be expended under the direction of the Permanent Building Committee, for the costs of a
feasibility study relating to the Hastings School located at 7 Crosby Road, in Lexington, for which
feasibility study the Town may be eligible for a grant from the Massachusetts School Building
Authority ("MSBA"). The MSBA's grant program is a non-entitlement, discretionary program based
on need, as determined by the MSBA, and any costs the Town incurs in connection with the feasibility
study in excess of any grant approved by and received from the MSBA shall be the sole responsibility
of the Town, or act in any other manner in relation thereto."
"DESCRIPTION: On January 27, 2016, the Board of the Massachusetts School Building Authority is
expected to vote on Lexington's application to accept the Hastings School into the MSBA
reimbursement program. If the Town's application is approved at that time, this Article would fund the
first phase of the process, conducting a feasibility study."
[Town Warrant for 2016-1]
The Massachusetts School Building Authority (MSBA) Board of Directors did authorize an invitation to
Lexington to proceed into the Eligibility Period—the 1st module (which must be completed within
270 days of that Board's authorization) in the MSBA's 8-module Building Process:
MS le A Budding Process
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One of the requirements of the Eligibility Period is a local vote to authorize funding for the
MSBA-specified Feasibility Study (FS). This Article provides for that vote and includes the information
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CAPITAL EXPENDITURES COMMITTEE REPORT TO FEBRUARY 8,2016, STMs 2016-1 &2016-2
stipulated by the MSBA for such an action. The scope of, and matters addressed in, the FS itself are also
stipulated by the MSBA.
The building project contemplated for the new Maria Hastings Elementary School has a preliminarily
estimated total cost of about $60 million. (That is before any reimbursements by MSBA—expected to be
approximately 30% of total project costs.) Starting from scratch, a FS for a project of that size and
complexity might reasonably be expected to cost about 2.5% of the total construction contract (estimated
at about $47 million). The resulting estimated $1.175 million, plus a $0.325 million contingency, is the
basis of this request. A good portion of the information needed in the standard MSBA FS is already in
hand; therefore, it is expected that the funding being requested will be sufficient for gathering and
formatting any remaining information that is needed for the MSBA FS and also provide flexibility for the
still-evolving project requirements and schedule.
Although the MSBA has the 270-day limit for the School District to complete all the work required by the
MSBA during the Eligibility Period, the Town would become eligible to receive an invitation from the
MSBA Board of Directors to the Feasibility Study phase as soon as all that work had been completed.
This Committee considers the creation of a new Hastings Elementary School a vital element in a larger
plan for expanding the School District's capacity to provide relief for current enrollment and adequate
space for the projected, significant, increase in enrollment. The replacement of the Hastings School, with
MSBA participation, will move us toward needed capacity for projected enrollment in the fall of 2019.
However, as this Committee has stated previously (see the discussion in its December 4, 2015, Report to
the November 2, 2015, STM#1, for Article 2), overcrowding is likely to continue at the Pre-K and
elementary levels. The Committee unanimously supports the requested appropriation, and expects that
the resulting design will address capacity needs in a manner both economically efficient and appropriate
for our educational program.
STM 2016-1, Article 4: Fund Funding
ESTABLISH, RENAME Authorization Source Committee Recommends
AND APPROPRIATE Requested
TO AND FROM Traffic Mitigation SF
SPECIFIED
STABILIZATION Deposit Traffic Mitigation Approval(5-0)
FUNDS (SFs) $39,644.50 Special Revenue
Account
"To see if the Town will vote to create,rename or appropriate sums of money to and from Stabilization
Funds in accordance with Section 5B of Chapter 40 of the Massachusetts General Laws for the
purposes of: (a) Section 135 Zoning By-Law, (b) Traffic Mitigation, (c) Transportation Demand
Management/Public Transportation, (d) School Bus Transportation, (e) Special Education, (f) Center
Improvement District; (g) Debt Service, (h) Transportation Management Overlay District , (i) Avalon
Bay School Enrollment Mitigation Fund, and (j) Capital; and determine whether the money shall be
provided by the tax levy,by transfer from available funds, or by any combination of these methods; or
act in any other manner in relation thereto."
"DESCRIPTION: This article proposes to establish, rename or fund Stabilization Funds for specific
purposes and to appropriate funds therefrom. Money in those funds may be invested and the interest
may then become a part of the particular fund. These funds may later be appropriated for the specific
designated purpose, by a two- thirds vote of an Annual or Special Town Meeting, for any lawful
purpose."
[Town Warrant for 2016-1]
Note: All of the Town's Specified Stabilization Funds are in addition to the Town's General
Stabilization Fund. See the Appendix for a table with information on all the current Specified
Stabilization Funds.
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CAPITAL EXPENDITURES COMMITTEE REPORT TO FEBRUARY 8,2016, STMs 2016-1 &2016-2
The only fund identified in the Warrant under this Article with capital implications and for which an
action is contemplated at this Special Town Meeting is the Traffic Mitigation SF—whose balance as of
January 13, 2016, is $107,541.41. The deposit into this Fund is available as a result of total payments in
the amount of$79,289.02 by Cubist Pharmaceuticals (now a wholly owned subsidiary of Merck&Co.) in
connection with the prior approval of a property-development project in Town. The share of those
payments into the Traffic Mitigation SF is at the Town's discretion. (The balance of those payments went
into the Transportation Demand Management/Public Transportation SF.)
STM 2016-2
STM 2016 2,Article 2: Fund Funding
LAND PURCHASE— Authorization Source Committee Recommends
20 PELHAM ROAD Requested
To Be Determined GF (Candidate for Pending
Excluded Debt)
"To see if the Town will vote to authorize the Selectmen to take by eminent domain, purchase or
otherwise acquire, for municipal or school purposes, any fee, easement, or other interest in all or any
part of land known as 20 Pelham Road and shown as lot 65A on Assessors' Property Map 31, and to
appropriate a sum of money therefor and for associated design, engineering and architectural services
for plans and specifications and related costs in connection with said property; and determine whether
the money shall be provided by the tax levy, by transfer from available funds, or by borrowing, or by
any combination of these methods; or act in any other manner in relation thereto."
DESCRIPTION: This article requests authority and funding to purchase or take by eminent domain the
property at 20 Pelham Road, owned by the Armenian Sisters and formerly used as an elementary
school,to be used for municipal or school purposes.
[Town Warrant for 2016-2]
At the time of this report, there is no further public information available on this potential purchase. This
Committee believes that deliberations have been postponed to a session of this STM later than
February 8, 2016. When more information is available, this Committee will update its position on this
Article and report that to this STM.
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CAPITAL EXPENDITURES COMMITTEE REPORT TO FEBRUARY 8,2016, STMs 2016-1 &2016-2
Appendix: Information on the Town's Current Specific
Stabilization Funds
Review of Lexington's Specified Stabilization Funds for Applicability
to the Lexington Capital Expenditures Committee's Reports to a Lexington Town Meeting
Town Warrant,Town of Lexington,for Special Town Meeting 2016-1 on 8 Feb 2016,signed 11 Jan 2016
Article 4:ESTABLISH,RENAME AND APPROPRIATE TO AND FROM SPECIFIED STABILIZATION FUNDS
"To see if the Town will vote to create, rename or appropriate sums of money to and from Stabilization Funds in
accordance with Section 5B of Chapter 40 of the Massachusetts General Laws for the purposes of:(a)Section 135 Zoning
By-Law, (b)Traffic Mitigation, (c)Transportation Demand Management/Public Transportation, (d)School Bus
Transportation,(e)Special Education,(f)Center Improvement District;(g)Debt Service,(h)Transportation Management
Overlay District, (i)Avalon Bay School Enrollment Mitigation Fund,and (j)Capital; and determine whether the money
shall be provided by the tax levy, by transfer from available funds, or by any combination of these methods;or act in
any other manner in relation thereto."
Warrant Town Meeting(ATM=Annual;STM=Special) Capital
Sequence Name Created Purpose Related
(a) Section 135 Zoning By-Law 2007 ATM,Art 39 "for the purpose of financing public Yes
improvements pursuant to Section 135 of the
Code of Lexington"
(b) Traffic Mitigation 2007 ATM,Art 39 "for the purpose of financing traffic mitigation Yes
projects pursuant to conditions of special
permits issue by the Town
(c) Transportation Demand 2007 ATM,Art 39 "for the purpose of supporting the operations No
Management/Public of Lexpress Bus Service"
Transportation
(d) School Bus Transportation 2007 ATM,Art 39 "for the purpose of supporting transportation No
of students to and from school on a daily basis"
(e) Special Education 2008 ATM,Art 24 None stated when created,but Appropriation No
Committee Report to that Town Meeting says
"for setting aside reserves to help cover
unexpected out-of-district Special Education
expenses that exceed budget"
(f) Center Improvement District 2009 ATM,Art 25 "to fund needed improvements in Lexington Yes
Center"
(g) Debt Service 2009 ATM,Art 26 "for the purpose of paying a portion of the debt Yes
service on certain outstanding bonds of the
Town issued for the purpose of the Diamond
Middle School,Clarke Middle School and High
School construction projects"
(h) Transportation Management 2011 ATM,Art 20 "for the purpose of financing transportation Yes
Overlay District infrastructure improvements per Section 135-
43C of the Code of the Town of Lexington"
(i) Avalon Bay School Enrollment 2011 ATM,Art 20 "to mitigate the cost of students attending the No
Mitigation Fund Lexington Public Schools who reside at Avalon
Bay"
(j) Capital 2012 STM 19 Nov, Originally name"Capital Projects/Debt Service Yes
Art 3,&renamed Reserve/Building Renewal Fund";purposes
under 2015 ATM, remained the same when renamed
Art 26e
Prepared 13 Jan 2016 by David G.Kanter,Vice-Chair&Clerk,Lexington Capital Expenditures Committee
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