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HomeMy WebLinkAbout2017-12-20-CEC-min gnrj p Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting . r December 20, 2017 APRIL 19" Location and Time: Town Office Building, Reed Room (111); 7:45 A.M. Members Present: Charles Lamb, Chair; David Kanter, Vice-Chair & Clerk; Sandy Beebee; Rod Cole; Frank Smith; Wendy Manz Members Absent: None Others Present: Carl Valente, Town Manager; Carolyn Kosnoff, Assistant Town Manager for Finance; Jennifer Hewitt, Budget Officer, Finance Department; Sara Arnold, Recording Secretary Documents Presented: • Notice of CEC Meeting, December 20, 2017 • Charles Lamb's Notes, December 20, 2017, for sharing CEC's preliminary positions and comments with the Town Manager and the Assistant Town Manager for Finance • FY2019—FY2023 Capital Improvement Programs (CIPs) • Draft #3 Minutes of the CEC Meeting, December 13, 2017 Call to Order: At 7:45 A.M., Mr. Lamb called the meeting to order. Review of the FY2019—FY2023 CIPs: Based on his notes, Mr. Lamb shared this Committee's concerns regarding the CIPs, which notes he agreed to share with all those present. (Text in italics below are presentations based on those notes, identifying 9 areas of concern. 1. Specific project concerns: • #1048 Community Center Campus Expansion: This appeared without consideration for any sort of master or 5-year plan. It was generally agreed that this project is premature and should be slipped at least until after ensuring all the other needs for the 20 Pelham Road Property (primarily the new Lexington Children's Place and its ancillary projects such as adjacent road-and-sidewalk work) have been fully addressed. Additional comments included, but were not limited to, the following: Mr. Lamb stressed that this is likely the most problematic project for this Committee. 2. Items where we do not know if there will be alternative funding sought if Community Preservation Act (CPA) funding is not approved: • #278 Athletic Facility Lighting • #282 Park and Playground Improvements • #532 Park Improvements—Hard Court Resurfacing • #732 Center Track and Field Reconstruction • #1046 Old Reservoir Bathhouse Renovation Additional comments included, but were not limited to, the following: Mr. Valente explained that the reason Melissa Battite, Director, Recreation and Community Programs, told this Committee that the Board of Selectmen (BoS) would determine next steps if the CPA funding is not approved was because he had told her that she did not Page 1 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting December 20, 2017 need to determine alternative funding sources; it would be the BoS that decides whether to use the tax levy. Ms. Manz noted that the Community Preservation Committee (CPC) would be meeting the next day to review funding resources; she indicated that their preliminary discussions led her to believe that they will support the projects. Mr. Lamb and Ms. Beebee reported that they would be attending the January 4, 2018 meeting with the BoS and School Committee to discuss the Athletic Facility Lighting project. 3. Concerns about some projects which have out-year funding requests: • #983 Parking Lot Consolidation and Repaving: Citizens want additional center parking, but analysis is needed to determine whether this consolidation of privately-owned parking areas is feasible and cost effective. • #915 Hartwell Avenue Compost Site Improvements: It was generally agreed that this project should be pursued earlier than is currently identified in the C/P as the reasons cited for slipping the program do not appear to warrant that much of a slip. The compost site is a revenue generator and the improvement in making load measurements should be fully functional as soon as possible. 4. Projects where we need additional information before we can evaluate them properly: • #327 Automatic Meter Reading System. Need Return-on-Investment study. • #522 Street Improvements: Looking for January report from consultants regarding street-pavement conditions. Also looking for reconciliation between staff reports that we are making greater improvements than projected with the lower funding level. BoS should establish a Road Surface Rating (RSR) goal that suggests, in turn, what future funding should be necessary to at least achieve that RSR. Additional comments included, but were not limited to, the following: Mr. Valente reported that the BoS has been prioritizing sidewalk and intersection improvements, which may have resulted in a plateau for street improvements. Mr. Kanter clarified that this Committee is concerned with an apparent conceptual disconnect. The consultants creating the pavement condition report and John Livsey, Town Engineer, seem to have different perspectives on the degree of progress being made relative to the resulting road conditions and, therefore, the projection of the future RSR and the backlog. Mr. Kanter reiterated the importance of having a RSR goal. • #966 Community Center Sidewalk: The CIP has no funding request, estimated schedule, or plans for alternatives. • #1060 Pelham Road Sidewalk and Roadway Improvements: The conceptual plans have alternatives and it's not clear if the $1.4 million is a worst-case cost—and for which alternatives. Also, the cost basis is cited as being from an older analysis or comparable Department of Public Works sidewalk projects and it was not clear that was a sufficient basis for this roadway and sidewalk project. • #321 Center Streetscape Improvements: Ongoing unknowns about how the revised 25% design is progressing toward incorporation of the directed changes to the project scope and specifics so it's impossible to evaluate at this time. Page 2 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting December 20, 2017 • #732 Center Track and Field Reconstruction. We would like the Department of Public Facilities (DPF) to explain or sketch plans for a staging area under the most far-reaching land need for the Lexington High School renovation/reconstruction. Additional questions/comments included, but were not limited, to the following: Mr. Valente noted that the January 4th meeting referenced earlier will provide an opportunity to discuss this, but stressed that there is no high-school project at this time so that such information has not been developed. He added the following: • The track area and tennis courts are relatively small; the fields closer to the high school are likely a preferred staging area. • Vine Brook flows under the center playgrounds, creating a challenge for building a new high school in that area. • If the track is not replaced, it will have to be closed for safety reasons. • The track was installed in 2000. There have been two overlay projects for the track: the first in 2006; the second in 2012—which should have made it usable through 2018. An additional overlay is not practical. 5. We have concerns about the adequacy of the CIP format (e.g., insufficient granularity in the categories [the rows] and the inability to include alphabetical entries such as for "to be determined'; as one example) and the different approaches by different departments regarding out-year funding amounts (e.g., how the estimates were made, inflation factors or not, and instructions to departments). Additional comments included, but were not limited to, the following: Mr. Valente reported that there is staff support for a new financial system that would generate the CIPs, but it is first necessary to upgrade the Town's Munis system, which is earmarked for FY2019. That will set the platform for a new CIP system. The Committee also felt the CIPs could benefit from better editing to improve the quality of the presentations and full compliance with the completion instructions. 6. We feel some projects should be listed under DPF instead of where they are listed. We understand the bandwidth concerns involved, but the executing department needs to be the responsible department as it has the formal expertise, not the "client"for the project. • #967 Police Outdoor/Indoor Firing Range • #940 Westview Cemetery Building • #1049 Pine Meadows Clubhouse Renovation • #528 Hydrant Replacement Program 7. As the following are really continuing programs, if they are not moved into the Operating Budget, they should generally be funded with cash, not financing: • #644 Sidewalk Improvement • #945 LPS Technology Capital Request • #653 Building Flooring Program • #683 Townwide Culvert Replacement Program Page 3 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting December 20, 2017 8. What is the general philosophy for the extra approximately$619,000 in cash capital? Mr. Valente noted that he tries to limit general-fund debt. Currently there is approximately $6.5 million of new general fund debt per year, thus it has been necessary to dip into the Capital Stabilization Fund. Approximately $600,000 in cash capital is used for capital projects annually. Capital projects generally cost up to $1.5 million annually. He hopes to use cash to fund the track infield. There is an effort to balance the general-fund debt. The Police Station funding has used up much of the headroom there had been for general-fund debt. This year the set-aside for debt service of$300,000 will close out to Free Cash. 9. Other minor items: • #981 Transportation Mitigation: We'd like to reaffirm that appropriations for this CIP should be treated as one-year-only funding; unused portions not be carried over into subsequent fiscal years. We see this project as directly analogous to the DPF's Bid Documents project which is being treated as one-year-only funding. Additional comments included, but were not limited to, the following: Mr. Valente explained that there are timing and quality of service elements associated with the issues that are addressed with this funding, and he questioned whether such restrictions would be advisable. • #835 Visitors Center: We generally agree the project is necessary, but looking to see real progress made, and reported on, reducing the overall cost using the Special Town Meeting appropriation before taking a position on a 2018 Annual Town Meeting (ATM) appropriation. Additional comments included, but were not limited to, the following: Mr. Valente reported that the BoS believes that the best scope for the project has been identified and is exploring non-tax levy funding sources. In the meantime, the consultants have started testing of the ground at the site, and there is an effort being initiated to trim material costs. • #1044 Lexington High School Upgrade: We are not sure that the timing of the initial funding in FY2022 matches the currently projected timing of the School Committee's Statement of Interest to the Massachusetts School Building Authority (MSBA). Also, there is no estimate for follow-on funding in the year immediately following initial funding. Additional comments included, but were not limited to, the following: Mr. Cole agreed to talk to the School Committee. Mr. Valente noted that the MSBA traditionally rejects projects while the Town is in the process of building another MSBA-fund-supported facility and the Hastings Elementary School project, which is being supported by MSBA, will not be complete before FY2019. • #1057 SMR High Definition broadcasting upgrade: We would like assurance that the high-definition camera can pick up the laser pointer "spots" so that viewers can see what is being identified. Page 4 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting December 20, 2017 • #554 Street Acceptance: We understand there are public- versus private-title issues with the Green Lane roadway. We do not believe the staff should go near any acceptance project without clear title; feel it is a waste of staff's time. Mr. Kanter added that this Committee is also concerned about CIP #1020, Public Safety Radio Console Replacement, because the Police Department, as of the 1St of next year, will be operating this essential public-safety-equipment without a formal service contract. This Committee asks that the replacement be funded in FY2019 rather than the FY2020 identified in the CIP. Mr. Valente reported that work on the intersection of Hartwell Avenue and Maguire Road will be postponed until the United States Air Force completes a water-main project. Mr. Kanter expressed his support for replacing the track, despite concerns about a future high-school project potentially needing that space. He doesn't think the track should be closed. If it has to be closed, he asked about using space in Lexington at the Minuteman Regional Vocational Technical School (MMTech) for a track after MMTech builds its new facility elsewhere on its campus. Mr. Valente said that the MMTech superintendent is creating a business model for a new recreation facility. He added that, unlike the current facility, the new MMTech facility will not have a pool; the Lexington High School swimmers will need to find a new location for pursuing their sport. After Mr. Valente, Ms. Kosnoff, and Ms. Hewitt departed, there was discussion about next steps. Mr. Lamb and Mr. Kanter explained that staff is not likely to respond directly to today's CEC input, but the projects included in the Town Manager's Preliminary Budget & Financing Plan (the "White Book")—scheduled to be released on January 22, 2018—and staff comments at the January 24, 2018, Budget Summit IV, may be influenced by these conversations. There is an effort to reach consensus on projects before the BoS FY2019 Recommended Budget & Financing Plan (the "Brown Book")—scheduled to be released on March 2, 2018—so that there may be a closer agreement when going to the 2018 ATM. If it looks like a significant consensus is unlikely, this Committee may choose to meet with the BoS or invite a Selectman to a CEC meeting to ensure mutual understanding of, if not agreement on, the issues. It is also permissible to have one-on-one conversations with the Chair of the BoS. Each year the process is adjusted based on the circumstances. Two projects that are of particular concern to this Committee were identified: • Community Center Campus Expansion: This project should not be pursued at this time because of other financial demands. • Public Safety Radio Console Replacement: This should be a FY2019 project to ensure public-safety radio communications are never at risk. Should these be included in the "Brown Book" as they are now written, this Committee could choose to present an amendment(s) at the 2018 ATM to resolve its concern(s)—if allowable under the language in the Town Warrant Article(s). Minutes: Mr. Kanter read recommended edits for Draft #3 of the CEC Minutes for the December 13, 2017, meeting. A Motion was made and seconded to approve said Minutes, as revised. Vote: 6-0 Page 5 of 6 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting December 20, 2017 CEC Report to the 2018 ATM, including CPA Projects: Ms. Manz discussed two non-Town-sponsored projects whose formal proposals are expected to be presented to the CPC for funding and she asked about inviting the proponents to a CEC meeting: • The Trustees for 9 Oakland Street, which is a non-profit facility for brain-damaged individuals, are requesting $200,000 towards a $425,000 project to help improve the facilities. CPA funds were used when the facility was converted into housing, but this new project will not add housing units. Questions were raised about the eligibility of the project for CPA funding. Ms. Manz reported that is being reviewed by Town Counsel. • The Munroe Center for the Arts is requesting funds for an accessibility project, but neither the scope nor the funding is known at this time. It was agreed that Ms. Manz should invite both proponents to the CEC's January 17, 2018, meeting with the expectation that, by then, it would be known that Town Counsel supports their eligibility and whether the CPC has voted to recommend them to the 2018 ATM. (If not recommended to that ATM then there would be no purpose in hearing from the proponent.) There was discussion about using CPA funds for non-Town projects. Although this is allowable, the Town's practice has been to hold such projects to a higher standard than used for Town projects. It was agreed to leave the January 10, 2018, CEC meeting on the Committee-members' calendars with the understanding that it will likely be cancelled unless some matter arises that needs this Committee's attention by that date. In addition to the January 171" meeting, there is a CEC meeting scheduled for January 241". These meetings are expected to be primarily used to develop this Committee's report to the 2018 ATM. Mr. Kanter agreed to distribute the first part of last year's report in a Microsoft Word format with indications of who is assigned to work on each segment. Committee members were encouraged to begin working on writing at least a first draft of their respective segments for the Committee's report to that ATM. After a discussion of alternative approaches to the Committee's report, it was agreed to continue with what had been its prior approach to such reports—recognizing that approach provides for an important record ("institutional memory") of this Committee's information and positions regarding capital projects. As for the Articles section of the report, each Article would be judged as to whether text, beyond what had been included under our prior practice, might be warranted to augment the quoted material (e.g., from the Warrant and/or the "Brown Book") so as to amplify on the Committee's position. Adjourn: A Motion was made and seconded at 9:22 A.M. to adjourn. Vote: 6-0 These Minutes were approved by the CEC at its meeting on January 24, 2018. Page 6 of 6