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HomeMy WebLinkAbout2017-01-19-AC-min01/19/2017 AC Minutes Minutes Town of Lexington Appropriation Committee (AC) January 19, 2017 Place and time: Parker Room, Town Office Building, 7:30 p.m. Members present: John Bartenstein, Chair; Alan Levine, Vice -Chair & Secretary; Eric Michelson; Richard Neumeier; Sanjay Padaki; Andrei Radulescu -Banu; Lily Manhua Yan; Carolyn Kosnoff, Assistant Town Manager, Finance (non- voting, ex officio) Members Absent: Jian Helen Yang Membership Note: There is an opening for one more member. Others Present: Charles Lamb, Capital Expenditures Committee; Pat Goddard, Director, Department of Public Facilities (DPF); Dawn McKenna, Chair, Tourism Committee The meeting was called to order at 7:34 pm. 1. Announcements Mr. Neumeier reported that the January 9, 2017 Lawyers' Weekly listed a position for Executive Assistant Solicitor in the City of Lowell, salary $64,898- 76,174. The January 16, 2017 Lawyers' Weekly listed a position for Labor Counsel in the City of Somerville, salary $82,400- 90,000. Mr. Padaki reported having received the following information from Mr. Addelson regarding Town bonds, as of June 30, 2016: • $110,811,418: The principal outstanding on previously issued bonds, of which a portion is retired each year, with the final retirement in 2029. • $86,956,760: The principal of the yet to be issued bonds authorized by prior town meetings, including bonds authorized inside and outside the Proposition 21/2 levy limit, but excluding bonds for the water, sewer and recreation enterprise fund. Of this amount, approximately $66 million is for school renovation costs approved at the May 2016 town - wide election. • $5,589,791: The principal of the yet to be issued bonds for water, sewer and recreation enterprise fund projects authorized by prior town meetings. It was noted that these amounts do not come close to statutory limits. Ms. Kosnoff agreed to explore ways to include these data in the Town's tracking metrics. Mr. Michelson reported that the Center Streetscape Ad hoc Review Committee has issued its report, which includes recommendations for the Board of Selectmen. The members of that committee are not unanimous in regard to the use of bricks versus concrete for the sidewalks. It is anticipated that the consulting group for the project will be asked to price the recommendations with options. There is a placeholder for this project in the warrant for the Annual Town Meeting (ATM). It was also reported that the Planning Board is discussing the issue of allowing two family homes by special permit. This could have a financial impact to the extent it increases density. Mr. Bartenstein believes the Committee should explore the potential ramifications but may need some legal guidance on the permissible limits of debate. 1 01/19/2017 AC Minutes 2. Minutes: A motion was made and seconded to approve the draft January 5, 2017 minutes with edits identified by Mr. Neumeier. VOTE: 7 -0 3. Capital Projects and the Special Town Meeting (STM), Articles 2 -4 It was noted that a STM is being planned for the first night of the March 20 ATM. As reported by Mr. Goddard, the date of the STM is influenced by the timeline of the new Hastings Elementary School (Hastings) construction project. Mr. Goddard reported the following: • The Massachusetts School Building Authority (MSBA) Board, which previously provided preliminary approval of the Hastings project for a state grant, is expected to approve the preferred schematic design on February 15. • Town Meeting has already appropriated funds for the feasibility study, which is due in June 2017. • There will be a request at the ATM for an appropriation of $720,000 that would allow the Town to continue design development after June 2017. • The MSBA and the Town are working collaboratively to create a Budget and Scope Agreement, which requires a robust schematic design, for approval in August. The Town will then have 120 days to fund the project. The plan envisions requesting at a fall STM an appropriation to cover construction documents, construction, and other project costs, which would be followed by a debt exclusion referendum. The referendum is tentatively planned for November 2017. In response to questions, Mr. Goddard added the following: • The MSBA reimburses a percentage of the cost, but only of eligible components and only up to a ceiling on the cost per square foot. It is anticipated that the ultimate reimbursement will amount to approximately 30% of the total project. • A change in the current formulas to increase the allowable cost per square foot is unlikely because the MSBA tries to support as many projects as possible. • The estimated total cost is $62.0 million, which includes $12.0 million in "soft costs ", i.e., non - construction costs. • The Town is using DiNisco Design to develop the project's plans. Two other projects will require timely action at the STM in March to appropriate design funds in order for those projects to be included in a debt exclusion referendum on the same date as the Hastings project: the Pelham Road project and the fire department project. Mr. Goddard noted the following in his report on these projects: 20 Pelham Road building renovation: • The current plan is to purchase or acquire this property by eminent domain or negotiated agreement with funds already appropriated by Town Meeting in 2016. • The School Committee supports a plan to renovate approximately half of the building for the Lexington Children's Place. The estimated cost of this work is $18.3M. • The Board of Selectmen support using the remaining half of the building, the gym, cafeteria, stage, and other miscellaneous spaces for the Lexington Community Center (LexCC). Cost 2 01/19/2017 AC Minutes estimates for this work have not yet been fully developed, but are expected to be completed soon and presented to the Board of Selectmen on February 27. • A request for an appropriation of $771,000, originally planned to fund the complete design for the LCP, will be made at the STM. However, due to increases in the scope and cost of the project, the funding will be targeted to completing design through design development for the Pelham Project, including LCP and Community Center use. • An appropriation for the remainder of the design costs through construction documents, as well as the costs of construction, will be sought at a fall STM. • In response to questions, Mr. Goddard commented that a sidewalk between the 20 Pelham Road building and the LexCC is being considered and an additional road access option, which will be reviewed by the Fire Department, is being explored. These costs are not yet identified, but will be included in the Board of Selectmen presentation February 27. Fire Station and Fire Station Swing Space: • The Town recently purchased 173 Bedford Street with plans to use the facility as swing space and thereby allow the Fire Headquarters station to be rebuilt at its current site. • Approval of a STM request for $450,000 would allow design work on the new permanent station to proceed through design development and would also cover certain reimbursable costs. • Approval of a separate STM request for $50,000 would allow design work on the renovations needed for the 173 Bedford St. property to allow it to serve as temporary swing space. • It is anticipated that the swing space would be used by the Fire Department from the spring of 2018 until early winter 2019. Because the police station also needs to be replaced, 173 Bedford Street could subsequently be used for police department swing space, or for a new Police Headquarters building. • It was noted that the second floor of the Bedford Street buildingwill not be renovated, because the Fire Department does not need the space, and any other potential use of the second floor space would require a separate entrance and upgrade of the second floor to make it compatible with the building code. 4. Visitor Center — ATM Article 18 Ms. McKenna made a presentation on an article requesting an appropriation to fund the replacement or renovation of the Visitor Center. This project is not included in the recommended FY2018 budget; thus, Ms. McKenna is presenting it to ATM as a citizens' article. She said that the project has been repeatedly postponed during the budget process for a variety of reasons, and she believes it is time to take it to Town Meeting. Ms. McKenna reviewed the history of the Visitor's Center, stressing its value in encouraging tourism and economic development. The Town currently operates it and is realizing a small profit from its gift shop. The current facility, owned by the Town, was built in the late 1960s and has had few upgrades. Efforts began about six years ago to identify the programmatic goals and identify facility needs to support the programs. Town Meeting subsequently approved $285,000 for schematic design work based on the results of that study, and a $3.7 million replacement building was recommended. Ms. 3 01/19/2017 AC Minutes McKenna believes the cost of the building can be reduced to closer to $3.0 million. Additional design work would be needed to revise the schematic design to be consistent with this lower cost. Ms. McKenna suggested that potential funding sources to service the debt could include income from the gift shop as well as contributions from the Liberty Ride revolving fund. She also noted that the $7.7 million being suggested for allocation into the Capital Stabilization Fund could be reduced. Some Committee members suggested that the article might have a better chance of passage if limited at this point to appropriating the additional designs costs necessary to update the design. Ms. McKenna added that funding for an exhibit designer is needed as well. 5. Planning for Annual Town Meeting Report Mr. Bartenstein reported that he has started talking to the AC members about assignments for the AC report. 6. Adjourn The Committee adjourned at 9:38 p.m. The documents used at the meeting are listed below. Respectfully submitted, Sara Arnold, Recording Secretary Approved: February 2, 2017 Exhibits • Agenda, posted by John Bartenstein, Acting Chair • Excerpt from DiNisco report presented to the School Committee on 11/1/16 on Pelham Road option for Lexington Children's Place • 173 Bedford Street Floor Plans: existing and proposed first floor • 173 Bedford Street Proposed Site Plan 4