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HomeMy WebLinkAbout2023-01-11-AC-min 01/11/2023 AC Minutes 1 Minutes Town of Lexington Appropriation Committee (AC) January 11, 2023 Place and Time: Remote Participation: in accordance with An Act Relative to Extending Certain State of Emergency Accommodations, signed into law by Gov. Baker on July 16, 2022, communica- tion took place via a Zoom teleconferencing session that was open to the public; 7:30 p.m. Members Present: Glenn Parker, Chair; Anil Ahuja; John Bartenstein; Alan Levine, Secretary; Eric Michelson; Lily Manhua Yan; Carolyn Kosnoff, Assistant Town Manager, Finance (non-vot- ing, ex officio) Members Absent: Sanjay Padaki, Vice-Chair Other Attendees: David Kanter, Capital Expenditures Committee; Cristina Burwell, Exec. Dir. Munroe Center for the Arts (Lexington Friends of the Arts); Steve Poltorzycki, Board Chair, Mun- roe Center for the Arts; Brian Healy, Architect At 7:34 p.m. Mr. Parker called the meeting to order and confirmed attendance by roll call. Mr. Par- ker volunteered to take minutes and both he and Mr. Levine recorded the meeting for the purpose of creating minutes. Announcements and Liaison Reports Mr. Levine noted that meetings of the School Building Committee and Master Planning Advisory Committee for the schools that had been scheduled for January 9 and January 10, respectively, were postponed until February. There was no further explanation for the delay. Ms. Kosnoff stated that her office hopes to publish the White Book (Preliminary Budget and Fi- nancing Plan) on Friday, January 13. Publication of the White Book was previously scheduled for Monday, January 9, but this was delayed due to unresolved issues in the proposed operating budget. The Town has received updated bids for a new trash removal contract, which must be integrated into the budget. There is also an imbalance in the School Department budget that requires further consideration. Mr. Parker noted that the Committee is still working from a rough list of articles, but that the Select Board will vote the official Warrant for the 2023 Annual Town Meeting on January 23. Ms. Kos- noff stated that a draft Warrant will be available over the coming weekend, January 14–15. Ms. Kosnoff stated that the Select Board reviewed a proposal for the Town’s new Storm Water Util- ity at its January 9 meeting. They have decided to wait on further action until a fall 2023 special town meeting. Warrant Articles for the 2023 Annual Town Meeting Mr. Parker welcomed Cristina Burwell to the meeting to discuss Article 10(b), which requests fund- ing for a renovation project at the Munroe Center for the Arts (the “Munroe Center”). Ms. Burwell was joined by Steve Poltorzycki, Board Chair of the Lexington Friends of the Arts, the nonprofit organization supporting the Munroe Center, and by Brian Healy, the architect responsible for the design of the proposed addition to the Munroe Center. Mr. Bartenstein asked if the proposal would be funded via the Community Preservation Act (CPA). Ms. Kosnoff confirmed that the only source of Town funding would be the CPA but noted that other private funding might be possible. 01/11/2023 AC Minutes 2 Ms. Burwell and Mr. Healy addressed the Committee, making the following points: The project has already been presented to the Dept. of Recreation and Community Pro- grams, the Capital Expenditures Committee (CEC), the Dept. of Public Facilities (DPF), the Historic Districts Commission (HDC), and to neighbors of the Munroe Center. The Town Manager has also been involved in extensive discussions with the Munroe Center. The goal of the project is to address immediate needs of the building related to accessibility (as regulated under the Americans with Disabilities Act, or ADA) and interior climate con- trol (HVAC). By an act of the Town, the building has been used to support practicing artists and arts edu- cation for roughly 40 years. A nonprofit, Lexington Friends of the Arts (doing business as Munroe Center for the Arts), has been managing the building since 1994. In 2020, the Mun- roe Center signed a 10-year lease with the Town, with the option for two 10-year extensions. The Munroe Center pays the Town $2,000 per month, and also covers all ongoing mainte- nance and operating expenses for the building, including utilities and the fire monitoring system. The nonprofit has also covered some capital expenses, including a new roof, an up- graded parking lot, new attic insulation, and re-keying the building for better access by emergency services. The Munroe Center partnered with the Town to replace 123 windows, a major capital invest- ment, so that essentially any additional work will trigger ADA requirements to make the building fully accessible. The Munroe Center regards accessibility as a very important issue for its community. The project will provide access to people who cannot use stairs, as well as accessible, gender- neutral restrooms on all floors of the building. The addition at the rear of the building will, in effect, become the new “front door”. The proposed work will also replace an aging HVAC system, including a very old boiler. The need for this work is driven by two factors. First, the local climate, and the patterns of use for the building have changed greatly since its origins as a school building. Second, the DPF has rejected the use of window-mounted air conditioners on the top two floors because they cannot meet the practical demands of current users, so, as a result, there is no air condi- tioning in the building. Committee members directed questions to Ms. Burwell. The project will be managed through the DPF. The CPC has voted 7-0-2 to support the project. The requested CPA appropriation was stated to be $6.79 million, although Mr. Kanter recalled the CPC voting on $6,635,191. (After the meeting the latter number was acknowledged to be correct.) The estimated cost includes a 10% construction contingency with a 7% escalation. The Town will fund this with $2 million in CPA debt, with the remaining cash coming from the Community Preserva- tion Fund (CPF). This would leave the CPF with about $1.5 million in Unallocated Reserves. Ideally, the project would begin in summer, focusing initially on the heating system, and then pro- ceed through the winter with completion the following summer. Ms. Burwell stated that the Munroe Center would maintain its programming schedule during construction. Mr. Bartenstein asked for more explanation of the functional features of the addition. Mr. Healy listed the handicapped-accessible entrance, a new elevator surrounded by gender-neutral restrooms, 01/11/2023 AC Minutes 3 and new stairs. There is a transition from the lower ground entrance to the floors in the existing building. Mr. Kanter asked what kind of fuel would be used to drive the new HVAC system. Mr. Healy stated it would be electric. Mr. Kanter asked if solar power would be included in the design. Mr. Healy stated they have discussed it but would only do so if solar was “efficient and not [merely] sym- bolic”. The Munroe Center hired and paid Brian Healy Architects to produce a design and a related cost es- timate. The Committee asked why the Munroe Center should be paying for this, and strongly sug- gested that the expense for architectural design services on a Town-owned building should be borne by the Town. Ms. Yan asked if the rent would increase to help pay for the project. Ms. Burwell noted that she ex- pected higher operating expenses after the project is complete, but she had no plans to increase the rent for tenants, and Ms. Kosnoff stated that the Town did not expect to raise the rent under the cur- rent lease. Mr. Osborne asked about the parking situation at the building. Mr. Healy stated that they are re- quired to provide 42 parking spaces with 2 ADA spaces. They are trying to minimize asphalt and maximize green space while improving safety and access for emergency vehicles. Mr. Osborne asked if changes to the parking would affect utility service to the building. Mr. Healy noted that the project needed to manage all stormwater runoff from the new addition and that there will be a stormwater management system with collection basins. Mr. Michelson asked for clarification on the cost spreadsheet for the project that was provided to the Committee, since he could not find line items for the cost of the HVAC system and elevator. Mr. Healy explained that the full cost estimate was 42 pages, and that the spreadsheet sent to the Committee showed only a summary of suggested reductions in scope and cost, so the costs for the HVAC and elevator are not shown as separate items. Mr. Parker asked what needs would remain for the building once this project was completed. Mr. Poltorzycki stated that Mr. Healy had developed a master plan that covered many areas on the cam- pus, but the urgent need for improvements to accessibility and HVAC superseded any other work. Funding for additional changes will be difficult for the Munroe Center to raise and would likely not be feasible within the next 3–5 years. Mr. Poltorzycki stated that the building is in good condition for its age, but that it will eventually require further maintenance. Mr. Healy stated that the current project design anticipates future growth, and that they avoided spending in areas that might conflict with future projects. Ms. Burwell stated that this year they have painted the building exterior, com- pleted the window upgrades, and replaced the roof, but that the gutters need some attention. She feels that the building is in “pretty decent shape”. Mr. Poltorzycki noted that a more intense renova- tion would have interrupted programming, which they wanted to avoid, but that he feels they will be set for at least the next five years. Mr. Bartenstein asked about the fee structure for tenants in the building. Ms. Burwell noted that they impose a building restoration fee. Mr. Poltorzycki stated that they have three large tenants who pay rent, along with ten studio artists, and the Munroe Center runs a visual arts program that charges fees to students. Mr. Poltorzycki stated that the lease requires the Munroe Center to cover all operational costs. Mr. Bartenstein asked if annual revenue was adequate to cover expenses. Mr. Poltorzycki stated that they operate “in the black” every year. 01/11/2023 AC Minutes 4 Mr. Ahuja asked when the last time rental rates for tenants were set. Ms. Burwell stated that this oc- curred just before the start of the pandemic in 2020. Mr. Ahuja asked how frequently rental rates are adjusted. Mr. Poltorzycki stated that his board considers this matter annually to decide if a rent in- crease is warranted. He noted that the pandemic created a special situation that justified providing some relief to tenants, but that they will continue to evaluate the rental rates based on comparable organizations in the area. Mr. Kanter asked for a copy of the lease. Mr. Levine commented that the Town does not operate the building to generate revenue. Instead, the Town is supporting a partnership with a local arts organization that provides a valuable service to the Town. Mr. Healy stated that improving accessibility for Munroe Center was strongly motivated by many stories of parents visiting the Munroe Center who were unable to see their children perform in the outdated facility. 2023 ATM Report Planning Mr. Parker reviewed the current assignments for the upcoming report. Ms. Kosnoff stated that important budget and capital planning information would be presented at the upcoming Select Board meeting on January 16, so Committee members should attend if possi- ble. She stated she hoped to publish the White Book by Friday, January 13. Funding for Emergency Medical Services Mr. Levine asked Ms. Kosnoff to explain why the budget shows zero funding for emergency medi- cal services personnel. Ms. Kosnoff stated that she believes all or most of the Town’s firefighters are certified EMTs. They receive a base salary from the Town, plus an additional stipend if they have that certification, along with other extras based on various professional qualifications. This is all paid from the fire suppression budget, and due to the complexity of the accounting, the budget does not distinguish staffing expenses for emergency medical services from those for fire suppres- sion. Mr. Levine asked where ambulance fees are deposited. Ms. Kosnoff stated they go into the General Fund. Meeting Schedule Mr. Parker stated that a meeting on Wednesday January 18 would not be feasible with his schedule. There were no changes or additions to the Committee’s meeting schedule. Minutes of Prior Meetings Mr. Parker said that he has a draft of the minutes from the December Budget Summit III meeting. He is willing to share them and requested that any comments be sent to him by the next day. A motion was made and seconded to approve the minutes of January 5, 2023. The motion passed on a roll call vote. VOTE: 6–0 with 1 abstention. Mr. Levine mentioned that there is a new web-based procedure for submitting approved minutes to the Town Clerk for archiving. Adjourn The meeting was adjourned by roll call vote at 8:48 p.m. Respectfully submitted, 01/11/2023 AC Minutes 5 Glenn P. Parker Approved: February 2, 2023 Exhibits ● Agenda, posted by Mr. Parker ● Slide Presentation on Munroe Building — Cristina Burwell ● Spreadsheet with cost reductions for Munroe Building project — Cristina Burwell