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HomeMy WebLinkAbout2011-10-06-AC-minOctober 6, 2011 Minutes Town of Lexington Appropriation Committee Meeting October 6, 2011 Time and Location: Town Office Building, Room 111, 7:3 0 p.m. Members Present: Glenn Parker, Chair; John Bartenstein, Vice Chair and Secretary; Joe Pato, Vice Chair; Mollie Garberg; Alan Levine; Eric Michelson; Richard Neumeier; Jonina Schonfeld; Rob Addelson (non- voting, ex officio) Not in Attendance: Robert Cohen Others in Attendance: Dawn McKenna, TMM The meeting was called to order at 7:3 8 p.m. Minutes. The 8/18/11 minutes were approved by a vote of 7 -0 -1. The minutes from 9/7/11 and 4/20/11 will be reviewed for the next meeting. There was a discussion regarding the protocol for specifying attendance at the meetings. Special Town Meeting. The Committee discussed the upcoming capital articles (fire radio communication system and Bridge and Bowman school renovation projects) and its report to the special town meeting. Since most of the articles are capital - related, a suggestion was made to issue a combined report with the Capital Expenditures Committee (CEC). The draft warrant was reviewed and discussed. Mr. Addelson and Mr. Valente are planning to make a presentation on proposed actions for the special town meeting to the Selectmen on 10/17, and to the Appropriation Committee at its meeting on 10/19. It was suggested that the AC's 10/19 meeting be coordinated with the CEC, and that School Committee representatives and that representatives of the Building Committee also be invited. In preparation for drafting the Committee's report, members would be interested to know more about the Bridge and Bowman School project, specifically the reconstruction debt service schedule, the current status of existing excluded debt, and a sketch of the project content. There was a discussion of the relationship between the Bridge and Bowman school renovation projects and the Estabrook school replacement project if both are included in a debt exclusion referendum. Mr. Michelson will develop a list of questions regarding this article for the 10/19 meeting. Mr. Parker inquired about the status of funds already spent on the school projects. Mr. Addelson said that $750K appropriated for design work for the Bridge and Bowman projects at the 2010 Annual Town Meeting, and an additional $280k appropriated at the 2011 ATM, has been spent, both financed through the issuance of short -term notes (not bonds). The notes are coming due after the upcoming referendum vote, and if the debt exclusion is approved these amounts will be rolled into the total excluded debt for the project. If the debt exclusion is not approved, they will remain as general fund debt within the levy limit. October 6, 2011 Mr. Addelson informed the Committee that the proposal to install artificial turf at the Center Field complex will not be moving forward at the special town meeting because the preliminary engineering investigation concluded that the soil structure raises the cost beyond what was envisioned. The cost of that investigation was minimal and can be absorbed within the DPW budget. With regard to the anticipated Estabrook debt exclusion referendum, Dawn McKenna commented that Lexington historically has never had a debt exclusion presented to the voters before it has been approved at Town Meeting. She suggested that the Committee's report address why the traditional procedure is not being followed this time, as well as the pros and cons of taking a different approach. Mr. Bartenstein inquired whether there had been any consideration of placing an article on the warrant for the special town meeting at least calling for a resolution expressing Town Meeting's support for the Estabrook replacement project, and suggested that this might be an idea to consider if a similar situation arises in the future. Article Assignments and Report Schedule. Article 2: Bridge and Bowman Schools Reconstruction — Alan, Mollie, and Jonina Article 3: Fire Communication System - Richard Article 4: FYI Operating and Enterprise Fund Budgets — John, Glenn Article 5: Specified Stabilization Funds - Eric Article 6: Stabilization Fund - Eric Article 7: Authorized Capital Improvements - Eric The goal is to have the first draft of article write -ups to the Chair by 10/26 (before the 10/27 meeting). Based on the meeting schedule outlined below, the goal is to have a final draft of the entire report ready for the printer on 11/9. Future Meeting Schedule. 10/12 (executive session with BOS, AC and School Committee on health insurance) 10/19 (presentation and straw vote) 10/27 (final draft edit review and discussion) 11/2 (holding as needed) 11/8 (final vote on report) 11/17 (budget summit) Special Town Meeting is scheduled for 11/14 at 7 p.m. Liaison Reports by Staff and Members. Fire radio project. Mr. Addelson and Mr. Valente will be making a presentation on the fire radio communication system to the CEC at 8: 00 a.m. on 10/ 18/11. New Growth. Mr. Addelson reported that the final number on new growth should be available before the Special Town Meeting but will depend on the DOR's current values review. 2 October 6, 2011 Water /Sewer Rates. Mr. Bartenstein reported on the FY 2012 water /sewer rate presentation made to the Board of Selectman meeting at its meeting on Monday, 10/3. The basic proposal was for a combined rate increase of 14 %, with alternative proposals to lower this increase for the "average" user by appropriating additional retained earnings at the special town meeting, differentially increasing the third -tier water and sewer rates, or both. Although costs are up only about 5 %, the proposal for an unexpectedly large increase was driven by: (1) the inadvertent omission of over $100,000 in debt service for an MWRA- funded sewer capital improvement project in the FY 2011 rate submission, as well as in the FY 2012 budget proposed at the 2011 Annual Town Meeting; and (2) the reliance on usage data for the FY 2011 rate - setting that failed to account for the Town's policy of readjusting in the billing process metered tier usage for multi -unit dwellings, as a result of which Tier 1 usage was understated and Tier 3 usage overstated. Mr. Bartenstein informed the Board of Selectmen that he believed further investigation was warranted of several usage assumptions underlying the rate proposal that appeared to be unduly conservative, and that he hoped to work with Town staff in the coming weeks to develop an alternative rate proposal that would lower the proposed rate increase to a more reasonable level without the need for differential tier increases and minimizing the need for further draws on retained earnings. CPC funded Study of Cary Hall. Mr. Bartenstein also reported on a meeting he attended a few weeks ago regarding a proposal for the renovation of Cary Hall, based on a design study financed by a prior appropriation from the Community Preservation Fund. The proposed project, estimated to cost approximately $8 million, would include fixing meeting rooms, soundproofing them and making them more comfortable, handicap access, audio /visual, lighting, HVAC and staging improvement, as well as improving the acoustics and building a practice rehearsal room on lower level. The Historical Commission will be presenting this proposal for funding by the CPC. If approved, it would probably require bonding given its magnitude. SUMMARY OF ACTION ITEMS: Mr. Michelson will develop a list of questions regarding Article 2. Mr. Parker will invite members of the school and building committees to the 10/19 AC meeting, coordinate with CEC regarding a joint meeting, determine what reports will be provided and prepared for Town Meeting, and check on the need to post a notice and agenda for the 10/12 summit meeting Mr. Pato will request advance information for the Committee for the 10/12 summit. The meeting was adjourned at 8:55 p.m. A list of documents and other exhibits used at the meeting is attached. Respectfully submitted, Andrea Yepez Recording Secretary Approved October 27, 2011 October 6, 2011 Exhibits Town of Lexington Appropriation Committee Meeting October 6, 2011 1. Meeting Agenda, posted by Glenn Parker, Chair. 2. Draft Warrant 11