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HomeMy WebLinkAbout2008-10-09 Finance Committee Minutes Finance Committee Meeting October 9, 2008 The meeting convened at 7:20 p.m. in the Conference Room, 16 Lowell Street, Reading, Chairman George Hines, Committee members Barry Massachusetts. Present were Berman, Marsie West, David Greenfield and Tom White. Also present were Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, DPW Director Ted McIntire, and Town Engineer George Zambouras. George Hines called the meeting to order at 7:15 p.m. First order of business was the approval of Minutes dated September 10, 2008. On Motion by Barry Berman seconded by Marsie West to accept the minutes of the meeting dated October 1, 2008, as amended FINCOM voted 5-0-0. Liaison Reports No members reported any new liaison reports. Roads Town Manager Peter Hechenbleikner updated the FINCOM with the negative views on Article 10 (Roads – debt authorization) of the Board of Selectmen from earlier this week. George Hines asked what the reasoning behind this was, and Hechenbleikner replied that it was a combination of ability to sell debt and the uncertainty with regards to the price of asphalt. Town Engineer George Zambouras presented the Pavement Management Plan. He noted that the Selectman had further requests to what he was showing tonight, including using 2000 as the baseline year in the discussion of the PCI. On 7/1/07 the PCI was 74.5, and is considered below a target of somewhere in the range of 80. Zambouras presented five examples of how to proceed on roads: 1.spend $775k/yr results in a PCI of 65.2; 2.spend $1.5 million, then $450k/yr results in a PCI of 66.9; 3.spend $2 million, then $450k/yr results in a PCI of 68.3; 4.spend $800k/yr and increase that amount by $25k/yr results in a PCI of 66.6; 5.spend $1 million/yr and increase that by $50k/yr results in a PCI of 72.2. November Town Meeting Warrant Article 1 will included a report on the condition of the roads, in response to a previous Town Meeting instructional motion. In addition, reports from RMLD and the Schools will be given. Several FINCOM members expressed concern with committing funds for 5 years now given the uncertain economic situation On Motion by Barry Berman seconded by Marsie West for Article 10 (Roads – debt) FINCOM voted 1-3-1 (Berman voting for, Greenfield abstaining). George Hines asked the Town Engineer for an update on the Birch Meadow tennis courts. Zambouras reported that there is a standstill between the Town and the general contractor. Hines asked if expected seasonal use next spring could be assured, and Zambouras said that it could not. A brief discussion about the DPW garage and cemetery buildings followed, with Assistant Town Manager/Finance Director Bob LeLacheur showing where these items were found in the capital plan. On Motion by Marsie West seconded by Tom White for Article 3 (update Capital Plan) FINCOM voted 5-0-0. Matt Wilson will give the report at Town Meeting. On Motion by David Greenfield seconded by Marsie West for Block A of Article 4 (the $687,782 enterprise fund change in allocation method voting) FINCOM voted 5-0-0 . On Motion by Marsie West seconded by Tom White for Block B of Article 4 (the debt refinancing impact for FY09) FINCOM voted 5-0-0. Block C of Article 4 will be reviewed on October 15, 2008. Andrew Grimes will give the report for Article 4 at Town Meeting. On Motion by Tom White seconded by David Greenfield for Article 6 (set aside 40R payments in a revolving fund) FINCOM voted 5-0-0. Tom White will give the report at Town Meeting. On Motion by David Greenfield seconded by Marsie West for Article 7 (previous water debt) FINCOM voted 5-0-0. David Greenfield will give the report at Town Meeting. A discussion of Article 8 (Suburban Mobility revolving fund) ensued. Hechenbleikner gave the background of the grant. Greenfield asked how we determined the demand for the service, Hechenbleikner replied that a variety of supportive sources (such as the World Café) indicated a level of interest, but no one could be certain of the outcome. The Town would approach the issue to be able to terminate it early if it was not going well (for example, leasing the van & driver). On Motion by David Greenfield seconded by Barry Berman for Article 8 FINCOM voted 5-0-0. Marsie West will give the report at Town Meeting. Article 9 – previously voted, Barry Berman will give the report. Article 10 – previously voted, Marsie West will give the report On Motion by David Greenfield seconded by Marsie West for Article 11 (fire engine) FINCOM voted 5-0-0. George Hines will give the report at Town Meeting. Peter Hechenbleikner reviewed Article 12 (land acquisition) in detail, reviewing the parcels of land and a map of the Town. FINCOM held a brief discussion, with members delaying the vote until October 15, 2008. George Hines asked about the ongoing discussion of RMLD rate setting issues. Peter Hechenbleikner said that the issue was one for the RMLD Board. On a motion by Berman seconded by West the meeting was adjourned at 9:35 PM on a vote of 5-0-0 Respectfully submitted, Secretary