HomeMy WebLinkAbout2012-04-23-CEC-minMinutes of the Lexington Capital Expenditures Committee (CEC) Meeting
Date, Place, and Location: April 23, 2012 7:00 P.M., Town Office Building, Room 111
Members Present: Charles Lamb, Chair; Ted Edson, Vice - Chair; Bill Hurley; Shirley Stolz;
David Kanter
Documents Presented:
1. Committee's Projection for the CPA Funding Available for FY2014 (Extract from the
Committee's Report to the 2012 Annual Town Meeting [ATM] & 2012 Special Town
Meeting, April 2, 2012, Page 12, released March 23, 2012)
2. Mr. Addelson's, Assistant Town Manager for Finance, Spreadsheet, April 20, 2012
"Financing Options for the Acquisition of the Wright Farm Property"
Call to Order: Mr. Lamb called the meeting to order at 7:00 P.M.
Approval of Minutes
It was moved and seconded that the Minutes of the Committee's April 11, 2012, meeting,
as reflected in the draft that had been distributed electronically, April 21, 2012, be
approved. Vote: 4 -0 -1 (Mr. Edson abstained)
It was moved and seconded that the Minutes of the Committee's April 20, 2012, meeting,
as reflected in the draft that had been distributed electronically, April 21, 2012, with the
additional changes presented today by Mr. Kanter, be approved. Vote: 4 -0 -1 (Mr. Lamb
abstained)
Supplemental Funding for Cary Memorial Library Energy Management Systems
(EMS)
For the purpose of getting Mr. Lamb's position on that matter —as he had been absent from
the Committee's discussion and vote at its April 20, 2012, meeting —the Committee again
addressed the request from Mr. Pat Goddard, Director of Lexington's Department of Public
Facilities, for the Committee's questions or concerns over the use of available, prior -year,
Building Envelope funding (2007 ATM, Article 31(j)) to complete the funding for the
Library's new EMS. Mr. Kanter reiterated for Mr. Lamb's benefit that it had been suggested
to Mr. Goddard that use of a more - recent - year's Building Envelope & Systems funding
would clearly be within scope to be the supplement for the EMS project. After further
discussion, it was moved and seconded to include Mr. Lamb's position; thereby making the
Committee's vote not to concur with the use of those funds 4 -1 (Mr. Lamb concurred with
the use). Mr. Kanter is to advise Mr. Goddard of the updated vote.
Revisit Committee's Opinion on Supplemental FY2013 Funding to the Post
Employment Insurance Liability Fund for the Other Post - Employment Benefits
(OPEB)
For the purpose of getting Mr. Lamb's position on that matter —as he had been absent from
the Committee's discussion and vote at its April 20, 2012, meeting —the Committee again
addressed the revision of its opinion expressed at the Budget Collaboration— Summit
Meeting 7 on April 11, 2012, that it was reasonable to add another $500,000 to the OPEB
fund from projected FY2013 health- benefits savings as a result of the Town and its
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employees having agreed to move the health benefits under the program managed by the
State's Group Insurance Commission. (That would make the FY2013 contribution
$1,000,000.) After further discussion, it was moved and seconded to include Mr. Lamb's
position; thereby making the Committee's vote to revise its opinion to only support the
originally contemplated $500,000 contribution 5 -0. Mr. Kanter is to advise the addressees
of the e-mail reporting the earlier vote of the updated vote.
Funding of the Wright -Farm Land Purchase (2012 ATM, Articles 9 & 10)
Ms. Stolz reported on the decision by the Community Preservation Committee (CPC) at its
meeting on April 20, 2012, to recommend the purchase for conservation only the land —
which now excludes a parcel containing the house, garage, & barn; although there would
be an option to purchase that later upon the death of a Wright - family member. The price is
$2,950,000 and there will be some additional associated costs (e.g., legal and surveying, to
cite at least two). While the CPC had considered some Community Preservation Fund
(CPF) cash & debt funding options, it only included the use of $500,000 in cash; it didn't
include any specific deficit debt financing in its recommendation to purchase; deferring that
decision pending guidance from the Town's finance committees, Board of Selectmen, and
the Town staff.
The Committee reviewed its projection of a $1,975,825 end- of- FY2013 balance in the CPF
prior to any cash funding toward this land purchase and the projection for the additional
revenue that would be available to the CPC as it addresses its needs for FY2014 funding.
Also reviewed was Mr. Addelson's spreadsheet with financing options for this purchase.
After discussion the Committee agreed its previous position was still applicable that
Community Preservation Act projects for which cash -only funding is not practical should be
front -end loaded with a cash component and only use short -term debt — preferably with an
accelerated debt - service schedule —for the balance of the funding.
It was moved and seconded that the Committee's recommendation for this purchase be the
use of $1,000,000 of CPF cash and the $1,950,000 balance to be debt serviced by the CPF
and whose term, including any intermediate Note(s), is not to exceed a total of five years,
and the associated costs be funded with CPF cash. Vote: 5 -0.
Supplement to the Committee's Report to the 2012 Annual Town Meeting (ATM)
The Committee reviewed the Draft #2 that had been provided to them by e -mail,
April 22, 2012, along with other updates. It then was moved and seconded that that draft,
as updated and with the changes described, be approved as the Committee's supplement,
but with Mr. Kanter authorized to make further administrative and editorial changes to the
extent they do not materially affect the Committee's analysis, updated and corrected
information, or positions. Vote: 5 -0. It is intended, if practical, that the supplement be
released at least one week before this Town Meeting takes up Articles 9 & 10.
Adjourn: A Motion was made and seconded at 7:25 P.M. to adjourn. Vote: 5 -0
These Minutes were approved by the CEC at its meeting on May 4, 2012.
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