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Home My WebLink About2018-03-26-CEC-ATM-rpt (Updates & Errata) UPDATES TO&ERRATA IN CAPITAL EXPENDITURES COMMITTEE REPORT TO 2018 ATM CAPITAL EXPENDITURES COMMITTEE TOWN OF LEXINGTON r,, Ne 0 a , t'-' \7\\)l' F-',-, -"4,:"Nik '''';',1 t ' x is w '',/ APRILix r' UPDATES TO & ERRATA IN THE REPORT TO THE 2018 ANNUAL TOWN MEETING (ATM) (Released March 26, 2018) Released April 20, 2018 Submitted by: Charles Lamb, Chair David G Kanter, Vice-Chair & Clerk Sandy Beebee Rodney Cole Wendy Manz Frank Smith UPDATES TO&ERRATA IN CAPITAL EXPENDITURES COMMITTEE REPORT TO 2018 ATM This document provides updates to, and corrects two errors in, the Committee's Report. The updates primarily reflect changes based on the Board of Selectmen positions and Committee deliberations, and votes by both of them, regarding Article 11 (Westview Cemetery Building Construction) and Article 22 (Visitors Center, Appropriate for Visitors Center—Construction/Bid Documents & Construction),that occurred after the publishing of that Report. Page 3 a. Article 22 (1) General Fund(Debt) Change "$4,500,000"to "$4,375,000" (2) Total. Change 14,700,000"to "$4,575,000" (3) CEC Differences Change "$200,000 (placekeeper)6"to "No position (3-3)6" b Public Facilities Department Sub-Totals (1) General Fund(Debt) Change 107,725,664"to "$37,600,664" (2) Requests Total. Change "$39,656,602"to "$39,531,602" Page 4 a. Article 11 Replace in its entirety with. Westview Cemetery Building 11 Constructions IP b Public Works Department Sub-Totals (1) General Fund(Debt) Change "$7,379,500"to `$4,339,500" (2) Total. Change `$14,544,500"to"$11,504,500" c Add missing Article 32 entry between Articles 31 & 35 Amend General Bylaw 32 Regarding Financial N/A Committees(Citizens Article) d Article 35 CEC Differences Delete in its entirety e Totals (1) General Fund(Debt) Change "$47,331,464"to "$44,166,464" (2) Totals Change `$64,031,128"to"$60,866,128" f. Footnotes (1) 6 Delete the first sentence in its entirety (2) 8 Change "will"to "would" Page 12 a. Visitors Center (1) Title Append a footnote number"17" (1) FY2019 Recommended. Change 14,700,000"to 14,575,000" (2) Non-TBD Totals Change "$4,700,000"to 14,575,000" b Subtotal—Public Facahtaes- (1) FY2019 Recommended. Change "$39,656,602"to"$39,531,602" 1 UPDATES TO&ERRATA IN CAPITAL EXPENDITURES COMMITTEE REPORT TO 2018 ATM (2) Non-TBD Totals Change "$79,839,764"to "$79,714,764" Page 13 Grand Total. a. Change to "Grand Totals" b FY2019 Recommended Change "$61,006,402"to `$60,881,402" c Non-TBD Totals Change "$177,036,887"to "$176,911,887" Page 14 Footnotes a. 11 Change "a Design Development"to "completed Design Develop and its" b Add as a new, last, footnote "I7This Committee is evenly split (3-3) on whether to support any construction funding at this Annual Town Meeting (i.e., the $4,375,000 included in the $4,575,000), but has not yet taken a position on that same construction amount if it were to be presented at a fall 2017 Special Town Meeting;therefore, the total amount is shown as the FY2019 Recommended." Paye 43 Article 11 a. Funds Requested. Change "$3,040,000"to "N/A" b Funding Source In its entirety, change to "N/A" c Committee Recommends Change "Disapproval (6-0)" to "indefinite Postponement (6-0)" Page 58 Article 22 a. Amount Requested. Change "$4,700,000"to "$4,575,000" b Funding Source Change "$4,500,000"to "$4,375,000" c Committee Recommends Change "Approval(4-2)"to No Position (3-3)" d. Committee Comments (beginning"Since the Brown Book ") Replace in its entirety with. Since the Brown Book was published, the Board of Selectmen (BoS)voted to include, in addition to the earlier planned request for $200,000 for the constnlction/bid documents, an additional $4,300,000 in construction funds—for a total of $4,500,000 The staff then had a proposal to increase the construction funds to include an additional $200,000 associated with the temporary facilities (yet to be determined) that would provide the Center s services during the demolition of the current building and the construction of the new building—raising the total to $4,700,000— the amount this Committee had supported (4-2) with the extra $200,000 as a placekeeper to ensure there would be sufficient funds to achieve all the proposed objectives. The staff subsequently provided to the BoS at its March 26, 2018, meeting a draft Motion with a revised proposal that reduces the additional funding related to the temporary facilities to $75,000—revising the total to $4,575,000 The BoS did not take a vote of its position on that Motion, but the majority would support the $4,575,000 over the $4,500,000 At this Committee s meeting later that evening, after further deliberations, this Committee re-voted its position on including the construction funding (without regard to which final amount the BoS would support) and the result was 3-3, therefore, no position. At the BoS meeting on April 2, 2018, it voted to support this Article at $4,575,000 1�ote The_following is based on the spoken report made by this Committee during the Town Meeting deliberation, April 2, 2018, on this Article This Committee unanimously supports an updated and expanded Visitors Center to provide enhanced services to Lexington s growing visitor population Further, we recognize the long planning and finding period that this project has endured We accept that the program developed 2 UPDATES TO&ERRATA IN CAPITAL EXPENDITURES COMMITTEE REPORT TO 2018 ATM by the Board of Selectmen and stakeholders is valid ho1i ever, those elements were not properly challenged during any value engineering that has occurred on this project. Such value engineering is essential to a final-cost evaluation Further, no decision has been made on ally of the five items totaling approximately$200 000 that have been identified as savings before, or add alternates in the bid—which would reduce the appropriation. Previous funding brought the project to Design Development The original intent of the Article 22 was to appropriate $200,000 to carry through Bid Documents—m,hich this Committee unanimously supports. The current Article 22 has expanded to include construction funding hence the$4,575,000 amount. This proposed appropriation would be the fourth for this project—the most-significant factor for those members in_favor of approval However, we also note that the project size and scope has increased from an initial $1,700,000 estimate.for a renovation and expansion to that current request to finish_funding a new–building project While the multi-year timeline has contributed to that growth, a large share is due to a major growth in program requirements Having a precise construction-cost estimate at construction/bid documents is cr prudent choice—a significant factor for those members opposed to approval Waiting until the Fall to appropriate construction funds will not cost anything extra because the bidding, in either case would not be until next spring and reduced contractor costs offset expected inflation Proponents provided several non-financial reasons for funding construction 11011, but they were not convincing to our Committee The Town s Historic District Commission (HDC) has seen sonic of the current design and is aware of the future building s massing It also knows that demolition of the current building— which is formally listed on the Historic Register—is implied bi the nem, building design However those members against approval are concerned that the HDC has not,formally, or informally, voted to approve the proposed new building or to demolish the current Visitors Center The HDC, which has the final authority, has never been asked to take a formal stance on any of the elements of the project within its purview The Battle Green area is especial)- sensitive, so it is troubling to approve construction .funding before that Commission has voted its acceptance Several years ago, the HDC said that the Hosmer House could not be torn down or even moved. Members opposed to thus Article do not think that only construction appropriation— much less one of this magnitude—should be made without that Commission, if applicable, having granted approval Another factor for the members opposed is that debt-service modeling is 11014 a de facto standard for large capital projects in the budget process However this project is being advanced without any such modeling in place especially in light of the other capital projects that are on the five–year plan In the end this Committee is evenly split on approval of construction funding under this Article 3 UPDATES TO&ERRATA IN CAPITAL EXPENDITURES COMMITTEE REPORT TO 2018 ATM Page 60 Article 25 a. Amount for Rescission. Change"$552,798 50"to "$425,482" b Replace the text At the time borrowing authority" and then just the table that follows (but not the text after the table) in their entirety with. The following rescissions are being requested because those projects are completed without needing the remaining borrowing authonty Unused Borrowing Authorizations to be Rescinded Rescind Purpose Original Appropriation Total Appropriation Amount Percentage DPW Equipment 2015 ATM,Article 11(b) $1,270,000 $47,355 3.73% Additional(Schools)Time Clock System Funds 2015 ATM,Article 16(c) $208,000 $208,000 100.00% High School Modular Classrooms 2015 STM 2,Article 6 $350,000 $22,000 6.29% Munroe School Roof 2016 ATM,Article 15(h) $298,000 $140,450 47 13% Lexington High School Nurse Office 2017 ATM,Article 16(i) $320 100 $7 6771 2.40% Total $2,446,1001 $425,4821 As it is unusual for a complete authonty to be rescinded, the explanation for that happening with the "Additional (Schools) Time Clock System Funds" is those additional supplemental funds had been requested to ensure an award could be made based on earlier bids. However, these funds were not needed as upon rebidding the project an award could be, and was, made under the original appropriation as previously supplemented. Page 63 Article 31 a. Committee Recommends Change "N/A"to "Indefinite Postponement(6-0)" b Text following the quote Change "At this time,there"to "There" Appendix B-1 Article 11 a. Town Request: Change `$3,040,000"to "IP" b Funding Source Delete in its entirety c CEC Difference Delete in its entirety Appendix B-2 a. Article 22 (1) Town Request: Change "$4,700,000"with"$4,575,000" (2) Funding Source Change"$4,500,000"with"$4,375,000" (3) CEC Difference Change "$200,000 (placekeeper)t"to "No Position (3-3)1." b Article 35, CEC Difference Delete in its entirety c Total(does not include TBD) Correct "$57,780,984"to "$63,857,500" (which includes the update) d. Footnote Delete the first sentence in its entirety 4