HomeMy WebLinkAbout2017-08-22-CEC-minMinutes of the
Lexington Capital Expenditures Committee (CEC) Meeting
{� August 22, 2017
Location and Time: Town Office Building, Reed Room (111); 7:30 A.M.
Members Present: Jill Hai, Chair; David Kanter, Vice -Chair & Clerk; Sandy Beebee
(arrived at 7:42 A.M.); Rod Cole; Charles Lamb; Wendy Manz; Frank Smith (remote
participation)
Members Absent: None
Others Present: Joe Pato, Board of Selectmen (BoS); Carolyn Kosnoff, Assistant Town
Manager, Finance; Sara Arnold, Recording Secretary
Documents Presented:
• Notice of CEC Meeting, August 22, 2017
• Draft Minutes of the CEC Meeting, August 2, 2017
• Memo by John Bartenstein, Chair, Lexington Appropriation Committee,
May 15, 2017, "Alternate Proposal for Debt Exclusion Referendum, Use of Capital
Stabilization Fund"
• CEC Subject Areas & Liaison Assignments for Fiscal Year 2017; dated 15 Nov 2016
• Town of Lexington Organizational Chart; Source: Town of Lexington FY2017
Recommended Budget & Financing Plan ("Brown Book"), February 29, 2016; inside
front cover
Call to Order: At 7:36 A.M., Ms. Hai called the meeting to order and authorized Frank Smith
to participate remotely via teleconferencing because he was at a significant geographic
distance from this meeting place.
Approval of Minutes: A Motion was made and seconded to approve the Draft Minutes of
the CEC meeting, August 2, 2017. By Roll Call Vote: 5-0-1 (Mr. Lamb abstained as he
was not at that meeting.)
(Ms. Beebee arrived)
Discussion of the Special Financial Summit (SFS) that is Scheduled for
September 13, 2017: Mr. Pato reported having missed the August 2, 2017, SFS and
wanted, prior to the September SFS, to better understand the position of this Committee
regarding the use of the Capital Stabilization Fund (CSF) to offset the size of the
anticipated debt -exclusion package. His perception, based on the Minutes of the August 2nd
SFS, was that the discussion and positions expressed by this Committee and the
Appropriation Committee related primarily to political concerns related to the large
debt -exclusion package being developed and the need to minimize the impact on the
taxpayers. He wanted to hear more about this Committee's financial analyses and the
long-term prudence of using CSF fund for this purpose.
Mr. Kanter disagreed that this Committee's positions were primarily political. He said that
Mr. Bartenstein's proposal not to include the two, past, land purchases (20 Pelham Road
and 173 Bedford Street) in this fall's Debt -Exclusion Referendum and then to fully pay off
those costs from the CSF had been thoroughly discussed and supported by this Committee
with primary regard to what was considered a fiduciary responsibility of the Town. Ms. Hai
noted that there had been considerable discussion about the financial implications during a
"Chairs + One" meeting held prior to the August 2nd Special Summit.
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
August 22, 2017
Each member of this Committee stressed the need to see the updated financial models
currently being prepared by staff and they are interested in having the models include the
impact of replacing Lexington High School (LHS). Ms. Kosnoff noted that the LHS project
has not been defined, nor has timing been determined, making it extremely difficult to
include an estimate for it. Mr. Pato commented that he envisions a LHS project to be a
series of smaller projects carried out over 15 years of more.
There was agreement by the Committee that:
• Because the Town has already made the purchases of 173 Bedford Street and
20 Pelham Road, there is logic in using the cash in the CSF to pay for them rather
than adding them to further bond debt -service being addressed in the debt -exclusion
package.
• The Town also has a responsibility to the taxpayers whose past tax money is in the
CSF. It seems appropriate to use some of those funds now to reduce the total
financial burden of those two land purchases.
Mr. Lamb added that the current financial models assume 30 -year bonds, but the Town
should be financing those projects with bonds whose terms do not exceed 20 years. The
arbitrary caps on tax increases adopted by the BoS should not necessarily dictate the
length of the bonds.
Mr. Pato's responses included the following:
• It seems preferable to plan on amortizing the property purchases over a short period
of time rather than paying for them outright. This would help retain flexibility for using
the CSF when it is most needed; this will be better understood after the debt
exclusion referendum.
• The public is not naive; moving the money around would not protect them from the
financial impacts.
• The land purchases are important elements of the projects to build a new fire station
and a new facility for the Lexington Children's Place and should be recognized as
part of those projects.
• The Bedford Street property may be sold after it is no longer needed for swing
space.
• If funds for rebuilding the Maria Hastings Elementary School (Hastings) are not
approved in the debt exclusion vote, the Town still needs to rebuild Hastings
because of increasing enrollment.
It was noted that the debt -exclusion vote is tentatively scheduled for early December. The
results could impact when to issue bonds and whether to roll over the bond anticipation
notes (BANs) that are due in February. Ms. Kosnoff advised that although BANs have
typically been for a 1 -year term, a shorter term can be used if pay -downs are to be made in
less than the next year.
In response to a question, Mr. Pato reported that the BoS had recently voted to support its
earlier vote for an all -electric system for the new Hastings facility. This triggered discussion
about efforts by Jon Himmel, Chair, Permanent Building Committee (PBC), to identify the
Town entities who could have a vested interest in major building projects and to develop a
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
August 22, 2017
time -line for involving them during the whole of such a project's process. (This is an
undertaking that this Committee had previously endorsed, in concept, when earlier
proposed to it by Mr. Himmel.) Mr. Lamb, as the Committee's liaison to the PBC, agreed to
work with Mr. Himmel on this effort.
Discussion of the Committee's Organization and Processes—including Planning for
Fall Special Town Meeting(s) and the FY2019 Capital -Budget Review Cycle: It was
noted that this Committee's responsibilities include preparing reports to Town Meeting
regarding recommended capital expenditures, and Committee members assume a variety
of tasks to complete that objective.
Mr. Kanter, currently the editor for all Committee reports to Town Meetings, asked whether
the Committee still supports his approach and practices to that editorial work. He received
unanimous support.
Ms. Hai asked the Committee to consider whether a different approach in the layout of the
report regarding presenting the same information would enhance its usefulness to all the
Town Meeting Members. (That would be a discussion for a future meeting.)
After reviewing assignments for the FY2017 effort and discussing various options for
incorporating assistance from Ms. Beebee and Mr. Smith, who recently joined this
Committee, it was agreed that for further activity during FY2018:
• Ms. Beebee would assume responsibility for reporting on Culture and Recreation
projects, with Ms. Manz assisting as necessary;
• Ms. Beebee would "shadow" Mr. Cole's responsibilities relating to school projects;
• Other "shadow" opportunities are available based on interest;
• Mr. Smith would assume responsibility for reporting on Public Works projects, with
Mr. Kanter assisting as necessary;
• Ms. Beebee would serve as liaison to the Commission on Disability and Mr. Smith
would serve as liaison to the Lexington Center Committee.
• All other previous assignments would continue.
It was noted that the Center Streetscape Design Review Ad hoc Committee may be
dissolved in the near future, eliminating that liaison assignment.
After reviewing the leadership roles for this Committee, a Motion was made and seconded
to elect Ms. Hai to continue as the Chair, Mr. Lamb to be the Vice -Chair, and Mr. Kanter to
continue as the Clerk. By Roll Call Vote: 7-0
Member Concerns and Liaison Reports: Ms. Hai reported that Michael Cronin—who is
currently the Chief of Operations for the Newton Public Schools—has been selected to be
Lexington's next Director of the Department of Public Facilities beginning on the 25th of next
month.
Future Dates for this Committee:
• Regarding a Fall 2017 STM and a December Debt -Exclusion Referendum:
September 13th–SFS for Updates on Costs of capital projects
September 18th–BoS meeting to discuss the STM and referendum
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Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting
August 22, 2017
September 20tH 26tH and October 4th—CEC meetings
• Regarding FY2019—FY2023 Capital Improvement Project (CIP) requests and
Preparation of Report for 2018 Annual Town Meeting:
October 5th—Budget Summit I
October 16th—CIPS submitted to BoS
October 20th—ClPsdistributed to CEC
October 25th, November 1St 8th 14th 29th December 5th 13th 20th and January 10th
17th 24th—CEC meetings. (Carl Valente, Town Manager, is expected to attend a
CEC meeting in late December and/or early January to receive input on this
Committee's positions on the CIPs)
November 15th—Budget Summit II
December 7th—Budget Summit III
January 25th—Budget Summit IV (when this Committee will present its positions on
CIPS)
February 13th—Budget Summit V (if needed)
Adjourn: A Motion was made and seconded at 9:28 A.M. to adjourn. By Roll Call Vote: 7-0
These Minutes were approved by the CEC at its meeting on September 13, 2017.
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