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HomeMy WebLinkAbout2018-02-21-CEC-min Y Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting February 21, 2018 APRIL 19'" �d N4i„'47�r 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 (arrived at 7:47 A.M.); Frank Smith Member Absent: Wendy Manz Others Present: Sara Arnold, Recording Secretary Documents Presented: • Notice of CEC Meeting, February 21, 2018 • General Stabilization Fund History Relative to 5% of Net Operating Revenue; graph distributed by Mr. Kanter • General Stabilization Fund History Relative to 5% of Net Operating Revenue; Table distributed by Mr. Kanter • Indicator 1.13: Reserves and Fund Balance; prepared by Town of Lexington for Summit 1, October 5, 2017 • Microsoft Excel Workbook for CEC Discussion of Consent Agenda at 2018 ATM, prepared by Mr. Kanter with Board of Selectmen's (BoS) supported items and Mr. Kanter's suggested items • CEC Nominations for 2018 ATM Consent Agenda, reflecting decisions made during February 21, 2018 meeting • Email from Carl Valente, Town Manager, to Mr. Lamb regarding Police Radio Console System, February 6, 2018 • Draft #3 Minutes of the CEC Meeting, January 24, 2018, 7:45 A.M. • Draft Minutes of the CEC Meeting, January 24, 2018, 7:00 P.M. Call to Order: At 7:45 A.M., Mr. Lamb called the meeting to order. Minutes: After Mr. Kanter advised that a comment in the Draft #3 Minutes for the morning CEC Meeting, January 24, 2018, had been resolved without affecting those Minutes, a Motion was made and seconded to approve said Minutes, as presented. Vote: 5-0 A Motion was made and seconded to approve the Draft Minutes for the evening CEC Meeting, January 24, 2018. Vote: 5-0 Member Concerns and Liaison Reports: Mr. Kanter reported that he had drafted a Motion for ATM Article 32, Amend General Bylaw regarding Financial Committees (Citizen's Article), which if approved would ensure that the language for these Committees reflects current practice. The draft Motion has been forwarded to Mr. Lamb, John Bartenstein, Chair of the Appropriation Committee, and Deborah Brown, Town Moderator, for their coordination and would then need to be reviewed by Town Counsel. Mr. Lamb reported that Dawn McKenna, Chair, Tourism Committee, has agreed to attend a meeting of this Committee just prior to ATM to discuss funding being requested for a new Page 1 of 3 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting February 21, 2018 Visitors' Center. The late timing reflects an effort to review the most up-to-date information possible before this Committee takes a vote on what level of funding it supports. BoS Decisions Regarding the FY2019 Recommended Budget and Financing Plan ("Brown Book") • Police Radio Console System: Mr. Kanter reported that the BoS asked Mr. Valente to include funding for a replacement of that System in the FY2019 budget. (The Town Manager's FY2019 Preliminary Budget has funding in FY2020). This Committee has been encouraging this change to avoid possible risks associated with delaying the purchase. Mr. Lamb shared an email from Mr. Valente explaining the Town Manager's logic for supporting the FY2020 funding. A Motion was made and seconded to continue to support a sub-Article to fund the Police Radio Console System in FY2019 without comment regarding implementation timing. Vote: 5-0 • General Stabilization Fund (GSF): Mr. Kanter reported that the Brown Book is not expected to include an infusion into the GSF—the same position taken by the BoS in Town Meetings every year since 2010. He reviewed material regarding this fund, noting that it was understood the Town fiscal guidelines identify the balance should be at least 5.0% of the annual revenue—and more specifically, presented as the Net Operating Revenue. Using those guidelines, while in 2011, the GSF was about $1.0 million above such a 5.0% objective; today it represents 4.9% and is approximately $200,000 below that goal—and would be expected to fall about an additional $200,000 more under that goal each year. Mr. Kanter plans, as a Town Meeting member, to submit amendments to the 2018 ATM that would: (1) infuse discretionary funding in the GSF, and (2) fund that action by an equal reduction in the discretionary funding currently identified for the Other Post-Employment Benefits (OPEB) Fund. He noted that there is no statutory obligation to fund OPEB. Mr. Kanter asked whether this Committee felt it appropriate to take a position on this matter. It was noted that this fund may not have direct capital implications, but during discussion, the question was raised as to whether the BoS fiscal policies on the extent of discretionary funding toward the Town's Pension Fund, the OPEB Fund, the Capital Stabilization Fund, and the GSF reflect the most-appropriate, current, balance. No position was taken by this Committee. • Lexington Community Center (LexCC) Expansion: Mr. Kanter reported that the BoS currently supports FY2019 funding for advancing that Expansion to schematic design. One factor was the belief that with the additional design work, the Town would be in a better position for soliciting donations and grants for the Expansion. Ms. McKenna advised the BoS at its meeting where that decision was made that with that approach the BoS was putting the LexCC Expansion in direct competition with the previously agreed decision that the new Visitors' Center Project should also be funded on both a public and private basis—including grants and donations. Page 2 of 3 Minutes of the Lexington Capital Expenditures Committee (CEC) Meeting February 21, 2018 Mr. Kanter reported that there are currently three conceptual designs for the LexCC expansion that had been presented by the architect to the BoS: One located the Expansion on Pelham Road property; two for locating it next to the current building. During the ensuing Committee discussion of the FY2019 funding for the LexCC Expansion, the Committee's continually expressed concern that the Town has other, more-pressing, capital projects that need to be completed before there is a LexCC Expansion remained as a key issue. It was agreed, consistent with past discussions of this Committee, that while an Expansion may be desirable and would be used, it would not be fiscally responsible to pursue that at this time. • Center Streetscape Project: Mr. Kanter reported that the BoS had voted 3-2 in favor of removing from consideration the installation of traffic signals at the Woburn Street and Massachusetts Avenue intersection—which intersection improvement has been planned as the first phase of this multi-phase project. Discussion of the process leading to the 2018 ATM and the Committee's report to that ATM There was discussion about the process for continuing to develop this Committee's report to the 2018 ATM, including plans to update tables. It was noted that, beyond providing the reader additional context for the request, supplemental text provides a record for "institutional memory". In response to Mr. Lamb's question about items to include in the Executive Summary, it was suggested that it include, but not be limited to, there be discussion about the 2017 debt exclusion, the five-year plan, and the financial implications of addressing critical projects that are yet to be funded. It was noted that Mr. Lamb and Mr. Kanter plan to attend the Town Moderator's March 201" meeting. It was agreed that during the 2018 ATM the most efficient manner would be for Mr. Lamb to speak on behalf of the Committee for all the Articles, as necessary. Proposed list of Articles/sub-Articles for the 2018 ATM's "Consent Agenda" Using a handout listing all the Articles/sub-Articles with information identifying those supported by the BoS and those suggested for consideration by Mr. Kanter, this Committee reviewed each entry on the list and determined which to support for a Consent Agenda. Mr. Kanter made notations on the list during the discussion and, at the end of the discussion, provided the Committee with which entries had been removed. He agreed to finalize the listing to just those being nominated by this Committee and forward the result to Ms. Brown and the Chairs of the BoS and the Appropriation Committee with "Cc" addressing to, among others, Mr. Valente and the other members of this Committee. A motion was made and seconded to support the list as recorded by Mr. Kanter. Vote: 5-0 Adjourn: A Motion was made and seconded at 8:59 A.M. to adjourn. Vote:5-0 These Minutes were approved by the CEC at its meeting on February 28, 2018. 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