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HomeMy WebLinkAbout2017-10-04-CEC-min Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting October 4, 2017 Location and Time: Town Office Building, Reed Room (111); 7:30 A.M. Members Present: Jill Hai, Chair;Charles Lamb, Vice-Chair, David Kanter, Clerk; Sandy Beebee; Rod Cole; Wendy Manz; Frank Smith Member Absent: None Others Present: Carolyn Kosnoff, Assistant Town Manager for Finance Documents Presented: Notice of CEC Meeting, October 4, 2017 Draft #3 of CEC Report to Special Town Meetings (STMs) 2017-2 & 2017-3 Capital Financing Model and Property Tax Mitigation Plan, Financial Summit #1, October 5, 2017, Prepared by Carolyn J. Kosnoff, Assistant Town Manager for Finance Draft #3 of the Minutes for the CEC meeting on September 20, 2017 Draft Minutes for the CEC meeting on September 26, 2017 Call to Order: At 7:32 A.M., Ms. Hai called the meeting to order. Preparation for STMs 2017-2 & -3 (scheduled to begin on Monday, October 16, 2017)—including the CEC report to those STMs—and Discussion of matters related to the subsequent Debt-Exclusion Referendum: Ms. Hai led the Committee through its review of the Draft 3 of its report to STMs 2017-2 & 3. The Committee discussed each Article, agreed on the text for each while noting the Comments which identified the additional, non-substantive, further changes to be made, and formally voted the CommitteeÓs positions as follows: \[Note: While the following actions were paused to address the Capital Financing Model and Property Tax Mitigation Plan (see below), they are being presented together for the convenience of the reader\], STM 2017-2: Article 2: Appropriate for Hastings School Construction: Vote: Approval (7–0) Article 3: Appropriate Design Funds for Lexington ChildrenÓs Place/20 Pelham Road: Vote: Approval (7–0) Article 4: Appropriate Design Funds for Fire Headquarters: Vote: Approval (7–0) Article 5: Appropriate for Temporary Fire Station Construction: Vote: Approval (7–0) STM 2017-3: Article 6: Establish and Appropriate to and from Specified Stabilization Funds: Vote: Approval (7–0) Article 7: Amend Revolving Fund Authorization: Vote: Approval (7–0) Article 8: Appropriate Design Funds for Visitors Center: Vote: Limited to Funds for a Revised Schematic Design with a Substantially Lower Project Cost (7–0) Article 9: Appropriate for Solid Waste Collection Equipment: At the time of this meeting, the Board of Selectmen had not made a decision as to the collection methods under the new contract and whether new rollable, covered, barrels for automated pickup would be provided under that contract or purchased by the Town. If those decisions have not been made before this STM is ready to be Page 1 of 2 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting October 4, 2017 dissolved, the Committee expects this Article would be moved to be Indefinitely PostponedÏwhich this Committee would then unanimously support. Vote: Pending (7–0); Article 11: Appropriate for Lexington High School Security System Design: Vote: Approval (7–0) Article 12: Appropriate Community Preservation Act Projects: Part 1: For the Affordable Housing request: Vote: Approval (7–0) Part 2: For the Open Space request: Awaiting more information as the Community Preservation Committee (CPC) has not yet recommended any funding request. The committee will include this sub-Article in its report if the CPC recommends a request. Vote: Pending (7–0) Article 13: Appropriate for Authorized Capital Improvements: The Committee has been advised there are no actions required. Vote: Indefinite Postponement (7–0) While the Committee hopes it would know the CPC decision regarding what would be Article 12, Part 2, prior to the next CEC meeting on October 6, 2017, a Motion was made and seconded to approve the Draft #3 of the CEC report to Town Meetings 2017-2 & -3, with the known, non-substantial, further inputs that are to be added as well as any additional, non-substantial, changes approved by this CommitteeÓs Chair, Vice-Chair, or Clerk. Vote: Approval (7–0) Ms. Kosnoff initiated the discussion of the Capital Financing Model and Property Tax Mitigation Plan that will be presented tomorrow evening to Budget Summit I. The primary feedback provided to her by the Committee was that: (1) The failure to address anywhere in the model the projected Lexington High SchoolÓs renovation/replacementÏwhich is expected to be the TownÓs largest-ever capital program (possibly on the order of $200 million)Ïremains a critical omission; (2) The alternative to finance the $12.344 million land purchases (20 Pelham Road & 173 Bedford Street) with Bond Anticipation Notes that would be retired from an uncertain, supplemental, revenue puts the TownÓs usual level of Cash Capital projects in the out years at substantial risk. That risk needs to be explicitly acknowledged in the model; and (3) The cumulative dollar amounts in the annual change in tax bill needs to be checked as the difference in the alternatives seems very smallÏ perhaps because the aggregate tax amount over the years must still be collectedÏand, if that be the case, that should also be explicitly acknowledged in the model. Approval of Minutes: A Motion was made and seconded to approve, as amended, the Draft #3 Minutes of the CEC meeting on September 20, 2017, and the Draft Minutes of the CEC meeting on September 26, 2017. Vote: 7–0 Next Meeting: Although posted for October 6, 2017, at 7:30 A.M. in the Cary Memorial LibraryÓs Learning Room (more properly identified as the Learning Center), for the memberÓs convenience, that meeting will not be called to order until 8:00 A.M. (Mr. Kanter plans to be there at the posted time in case a non-member arrives then.) Adjourn: A Motion was made and seconded at 9:41 A.M. to adjourn. Vote: 7–0 These Minutes were approved by the CEC at its meeting on October, 6, 2017. Page 2 of 2