HomeMy WebLinkAbout2011-01-25-CEC-minMinutes from Capital Expenditures Committee Meeting
1/25/2011, 8:OOam, Town Office Building, Rm 111
Members Present: David Kanter, Shirley Stolz, Charles Lamb (Chair), Ted Edson
(Vice- Chair)
Member Absent: Bill Hurley
Other Attendees: Ginger McGuire (Muzzey High Condominium Association
[Association], Muzzey Community Preservation Subcommittee), Joel Adler (Community
Preservation Committee [CPC])
Documents Presented and Reviewed: 1 -Page Handout from Ms. McGuire, "Muzzey
Window Replacement Project ", undated.
Mr. Lamb called the meeting to order at 8:OOam.
Muzzey Condominium Association — Window Replacement:
Ms. McGuire made a presentation on the project the Association submitted to the CPC
for funding of the difference in cost for the Renewal by Andersen replacement windows
required by the Historic District Commission (HDC) (estimated at $2,855 /window,
including installation) and what a Castle vinyl window would cost (estimated at
$931 /window, including installation). The HDC has been involved in this process for
about a year. The CPC has approved this project if in the form of a no- interest loan, to
be repaid when a unit is sold.
In 2008 there was an Engineering study funded by the CPC where the building was
reviewed. Changes were needed and identified to maintain the stability of the building.
The association performs regular assessments and allocates funds to repair things for
which they are responsible.
While the units in the Association owned by the Lexington Housing Assistance Board
(LexHAB) have 55 windows that need to be replaced, LexHAB —the funding of whose
windows are not a part of the request to the CPC —is looking at its own contracting
options to install those Anderson windows for its units' windows. It's possible that the
other unit owners who still need to replace their windows would join in any LexHAB -
initiated contract —which might make for a larger purchase and obtain a bigger discount
for both LexHAB and those other unit owners.
Other funding sources, including grants, were sought unsuccessfully and this project is
not eligible for the MassSave program because it has more than 5 units. Their
condominium documents stipulate that the unit owners are responsible, along with the
interior cost, for the costs associated with (at least) their windows. Assistance is being
sought from the Town as the Muzzey condominium is an affordable- housing complex.
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Last year, out of a total of 253 windows that needed replacement, 61 have been
replaced in 13 of the units and in the Association's common areas using their own
resources. That leaves 137 windows — excluding the 55 windows in the LexHAB -owned
units —which still need replacement in 34 remaining units. The estimated cost for the
137 - window project is $378,977 and $253,915 of that total is being requested to cover
the difference between the cost of a vinyl window and the HDC- required window. The
owner will bear the remaining 1/3 of the cost.
And finally, that the HDC requires the replacements to be completed by the end of 2016
(a 5 -year period) because of the associated structural issues.
There was then a discussion by the Committee regarding how windows of a different
construction were permitted by the HDC to be used in parts of the Cary Memorial
Library that weren't seen from the main streets when it was reconstructed, the HDC
jurisdiction in this regard, as well as what might be their flexibility for this project. There
was a discussion regarding the inflation cost of the windows over the next 5 years.
Ms. McGuire said that if there were an increase, the owner would be responsible for the
difference under the condominium documents. Mr. Kanter said his experience is that
changing such documents is an extremely difficult process as it requires 100%
agreement by all unit owners and by all mortgage holders.
There was a discussion of the difference between restoration and replacing.
Ms. McGuire said refurbishing the outside would have been $1,500 and another $1,000
to do the frame. The costs were comparable, but the owner would still not have new
storm windows. The HDC rejected the option to restore. There was concern on the
Committee regarding the use of CPA money to benefit a unit owner as well as setting
any precedent regarding others in an Historic District who, likewise, face the same,
previously- known, requirement only to do exterior work that meets the approval of the
HDC —which generally costs more.
There has been no formal vote by the affected unit owns to accept the loan option
instead of a grant. The Town proposes that the loan be protected by a lien on each
affected unit for the loan amount, without any provision for interest. Ms. McGuire said a
vote is expected in February. There was discussion regarding how the sale of a unit
would work with a balance on the loan for funding as approved by the CPC. Discussion
included topics such as sale procedures, values, lien payoffs and the affordability of the
units. There was further discussion regarding how the money would return to the Town
in the event of a sale, who would be responsible for legal costs involved, how this would
be processed at the Registry -of -Deeds level, and fund replacement in the event the
CPA program no longer exists in Town. It was agreed this could be complicated in the
future. LexHAB is involved in the management of all of this condominium's units so it
might make sense to have them assist. Another issue is the future risk that others who
did not benefit from this type of funds to complain and want reimbursement. The
question had already been raised, but CPA funding cannot be used as a
reimbursement. If windows are not replaced by 2016, Ms. McGuire said the Association
would handle replacement and lien the unit.
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Ms. McGuire was thanked for presenting and informed it is the role of the committee to
make a recommendation to Town Meeting, however it is not binding. The Committee's
objective is to make its report public not less than a week prior to the session at Town
Meeting when any matter addressed in its report will be debated. Mr. Lamb suggested
Ms. McGuire might wish to contact Glenn Parker, Chair of the Appropriation Committee,
to see if they wish a presentation.
Report to the 2011 Annual Town Meeting & Future Meetings:
Mr. Kanter will work to complete by 1 February a "strawman" (template) for the
Committee's Report to Town Meeting using information in the Town's FY2012
Preliminary Budget & Financing Plan (the "White Book ") and the Warrant for that
Meeting. That "strawman" will be divided up among the Committee members for
updating; the Recording Secretary will incorporate the changes. The next two meetings
are scheduled for 2/8 and 2/15. Summit 5 is scheduled for February 2, 2011.
There was a discussion regarding the remaining presentations to this Committee on
Capital matters that will be on the Warrant for the 2011 Annual Town Meeting. The
Recording Secretary will schedule necessary attendees at the next two meetings in
February for those matters.
Other Business:
Mr. Kanter briefed the Committee on the outcome of his meeting yesterday with
Rob Addelson, Assistant Town Manager for Finance, to discuss disconnects Mr. Kanter
believes his review found between the information in the "White Book" and the
presentations made to this Committee. Where Mr. Addelson agreed with Mr. Kanter's
findings, corrections are planned before the final FY2012 Budget & Financing Plan (the
"Brown Book ") is prepared. In response to Mr. Kanter's request, Mr. Addelson said he
will provide a spreadsheet for a 5 -year Capital Plan that includes the FY2012
recommended program along with their program for the 4 out years.
Mr. Edson moved to adjourn. Ms. Stolz seconded the motion. Meeting adjourned at
10:00 a.m.
These Minutes were approved by the CEC at its meeting on February 8, 2011.
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