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HomeMy WebLinkAbout2016-01-28-CPC minMinutes of the Community Preservation Committee Thursday, January 28, 2016 Parker Meeting Room Town Office Building 1625 Massachusetts Ave 3:00 PM Committee Members Present: Marilyn Fenollosa, Chair; Richard Wolk, Vice - Chair; Richard Canale, David Horton, Jeanne Krieger, Leo McSweeney, Bob Pressman, Sandra Shaw. Absent: Norman Cohen Administrative Assistant: Elizabeth Lane Other Attendees: David Kanter, Vice - Chair, Capital Expenditures Committee and liaison to the CPC; Rob Addelson, Assistant Town Manager for Finance. Ms. Fenollosa called the meeting to order at 3:03 PM. 1) FY17 Debt Service Figures- Mr. Addelson distributed a hand -out detailing FY17 debt service and projected revenues and expenditures. He first reviewed projected FY17 debt service figures for the unissued debt on the Cary Memorial Building Upgrades and the Community Center Renovations. He recommended issuing short -term debt in the form of bond anticipation notes (BANs) for these amounts which would come due in July 2016. Projected debt service (including principal and interest) for the Cary Memorial Building Upgrades is $643,891 and $322,712 for the Community Center Renovations. Additional actual debt service payments for FY17 include $410,050 for the Wright Farm acquisition, $1,028,100 for the Community Center acquisition and $889,600 for the Cary Memorial Building Upgrade. Including a small FY17 issuance cost, the total FY17 debt service amount totals $3,295,359. Ms. Fenollosa encouraged questions and comments from the CPC regarding Mr. Addelson's presentation and debt service request. She asked about the capability of assigning debt service payments to the reserve from which the project was originally assigned (under CPA allowable spending purposes) instead of the payments coming from the unbudgeted reserve or undesignated fund balance, both of which maintain large balances. Mr. Addelson mentioned that the trend has not been to build balances in the statutory reserves since those funds are restricted for projects that qualify as historic resources, open space or community housing. The residual balance in the unbudgeted and undesignated buckets is not restricted for specific spending purposes like the statutory reserves. Mr. Wolk expressed concern about setting the precedent of making debt service payments from the statutory reserve under which the project was initially assigned instead of allocating funds 1 from the unassigned reserves. This practice could burden a statutory reserve and hinder the issuance of additional funds for worthy projects in subsequent years. Mr. Addelson pointed out that the same amount of funds would be available for allocation, they would just be in different 'buckets.' Mr. Kanter thought that the statutory reserves should be burdened as debt comes due. The CPC then unanimously supported having debt service payments being made, at least initially and to the extent balances permit, from the applicable statutory reserve. Mr. Horton asked about the adequacy of funding for worthy projects in the future given the present debt service request. Mr. Addelson did not foresee the debt service request burdening the CPC's ability to make future recommendations given current and projected reserve balances. Mr. Kanter mentioned that the Town's finance committees (Appropriation Committee and Capital Expenditures Committee) prefer that debt financing be as front - loaded and short as possible, not driven out to the maximum allowable term. Mr. Addelson mentioned that some debt service payments, like those made on the Community Center, are done on a ten -year basis because there is concern about the ability to fund other projects. Mr. Canale thought that Mr. Kanter offered important input and the CPC should consider all opinions but he felt the CPC shouldn't sacrifice worthy projects that may come before them because of aggressive debt service payment schedules. Mr. Kanter assured the CPC that the advice from the finance committees only applied to any proposed financing after the CPC had made its own decision to recommend a project to Town Meeting. Ms. Krieger thought Mr. Addelson's financial model indicated flexibility for the Committee and that the CPC was in good shape. Ms. Fenollosa pointed out that there is almost a $2 million balance in the account which is something the CPC always aims to do. After a motion duly made and seconded, the CPC approved the total FY17 debt service amount of $3,295,359. The vote was (8 -0). 2) Committee Business- Minutes- The CPC voted to approve the minutes (8 -0) from their December 17, 2015 public hearing and meeting, as distributed. FY15 Administrative Expenses- The Committee reviewed a copy of the FY15 administrative expenses and Ms. Fenollosa asked for Ms. Lane to circulate a copy of the FY16 administrative costs expended to date. Ms. Fenollosa also provided updates on some FY17 projects: Keeler Farm Acquisition- Ms. Fenollosa reported that LexHAB was denied the HOME funds they sought to finance the purchase of the Keeler Farm community housing acquisition. LexHAB will 2 seek $185,000 in CPA funds for the acquisition. (The CPC initially voted the project as a placeholder). Munroe Tavern Archaeological Dig- Ms. Fenollosa also reported that Susan Bennett asked if FY16 funds could be made available for the Lexington Historical Society's proposed archaeological dig at Munroe Tavern. The Society wishes to conduct the dig during the upcoming school vacation week in April, shortly after the anticipated close of Annual Town Meeting. Any funds appropriated by Town Meeting are not available until after the close of the last session. Mr. Addelson confirmed that there was enough money in the undesignated fund balance to fund the project and Town Counsel also provided a favorable recommendation of their request to commence the project before it is approved. They did stipulate, however that the risk falls to the Lexington Historical Society and their vendor in the event that the funds are not approved by Town Meeting. Lexington Arts and Crafts Society's (LACS) Parsons Gallery Lighting Renovation- Ms. Fenollosa advised that Town Counsel responded to a question regarding the need for a preservation restriction for the Lexington Arts and Crafts Society Parsons Gallery Lighting renovation. They reasoned that a preservation restriction is not required because no fixture in real property is being acquired, pursuant to section 12 of the Community Preservation Act; however a formal, binding agreement with the Society is warranted. Grain MiII Alley Design Implementation- Ms. Fenollosa also reported that Melisa Tintocalis revised the proposal for the Grain Mill Alley project. One of the property's abutters still didn't agree with the original proposal so the possibility of proceeding with just 2/3 of the original design was being explored. The CPC thought it was worth inviting Ms. Tintocalis to a future meeting to discuss the revised plans. Visitors Center Renovation- The Visitors Center Renovation project does not seem likely to move forward as an FY17 CPA project. The project is pending Board of Selectmen input and approval but Ms. Fenollosa said that the design plans appear to favor new construction over renovation of the existing building. She also reported that the Town Manager recommended deferring the project in FY17. Mr. Kanter provided the CPC with a run -down of preliminary positions the Capital Expenditures Committee maintains regarding the FY17 CPA projects: Not Recommended ➢ Grain Mill Alley Design Implementation ➢ LACS Parsons Gallery Lighting Renovation ➢ Antony Park Construction ➢ Granite Forest Pocket Park at Lincoln Park ➢ Visitors Center Renovation Recommended 3 ➢ Munroe Tavern Archaeological Dig ➢ Munroe Center for the Arts Windows Study ➢ Keeler Farm Community Housing Acquisition ➢ Greeley Village Rear Door and Porch Preservation ➢ Town Pool Renovation Design and Engineering Costs ➢ Park Improvements- Hard Court Resurfacing ➢ Wright Farm Barn Needs Assessment and Feasibility Study- support contingent on the Town successfully closing on the property and the barn being a viable candidate for renovation ➢ Minuteman Bikeway Wayfinding Signs Implementation ➢ Park Improvements- Athletic Fields ➢ Park and Playground Improvements ➢ Administrative Budget ➢ Debt Service The meeting was adjourned at 4:25 PM. Documents submitted at the meeting: 1) FY/7 CPA Debt Service Figures and Projected Revenues and Expenditures 2) FY15 Administrative Cost Break -down Respectfully Submitted, Elizabeth Lane Administrative Assistant Community Preservation Committee 4