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HomeMy WebLinkAbout2013-01-09 Finance Committee MinutesFinance Committee Meeting January 9,2013 The meeting convened at 7:35 p.m. in the Town Hall Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman David Greenfield, Vice Chairman Barry Berman and members Jeanne Borowski, Mark Dockser, Karen Herrick, Paul McNeice,. Jeff Perkins and Paula Perry. Also present was Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Board of Selectmen Chairman Steve Goldy, Board of Selectmen Ben Tafoya, Selectman John Arena, Library Board of Trustees Chairman David Hutchinson, Vice Chairman Dick Curtis and Trustees Cherrie DuBois, Alice Collins, Andrew Grimes and Vicky Yablonsky and Library Director Ruth Urell, and resident Steve Crook; FINCOM member Hal Torman was absent. Mr. Greenfield called the meeting to order. Review January 28 Special Town Meeting Warrant Article 3 /Amend FY13 -22 Capital Plan: Mr. LeLacheur described three requests for the School Facilities to be funded in January and two changes to future general fund capital. The FYI requests include $25,000 for Parker MS jymnasium wall padding for student safety; $25,000 for RMHS furniture in light of the large 8 grade class entering for next year; and $27,500 for security system upgrades at various school buildings. Ms. Perry will give the report at Meeting. Article 4 /Amend FY13 Budget: Mr. LeLacheur described the requests which include the three capital items as previously described; $46,000 in interest costs to settle some long - standing Assessors abatements (interest cannot be paid from the overlay fund); $7,000 for Finance /election wages as the November Presidential election was about $10,000 over budget due to staffing needs to operate during heavy voter turnout while RMHS was in session; $10,000 for Finance/HR expenses to pay for an Assessment Center for Police promotions; and a shift of $11,000 from Community ServicesNeterans wages to expenses in anticipation of joining a Veteran's District with Melrose, Wakefield and Saugus. Mr. Berman asked where the Police assessment center would be held, and Mr. Hechenbleikner replied that it would be held in Town Hall. He described previous assessment centers and stressed the importance of hiring the right person. will give the report at Town Article 5/Prior Year Bill: Mr. LeLacheur reminded FINCOM that this $500 bill was discussed at November Town Meeting as a likely expense because a law firm forgot to send invoices out to several municipalities for about six months, crossing fiscal years. On a motion by Ms Perry seconded by Mr. Dockser, FINCOM recommended the subject matter of the Article by a vote of 8 -0 -0. Mr. McNeice will give the report at Town Meeting. Article 6 /Library building renovation and expansion project: Mr. Hutchinson gave a background to the process which began in 2007 /8 with evaluations of the building from both a structural and programmatic angle. He stated that early on five options were considered, including doing nothing, minimal fixes, a brand new building in a different location, significant renovations to the existing building, and those renovations plus an expansion of the floor space. Very strong feedback from the community through a series of public meetings directed the group to focus on keeping the present building and location. Mr. Hutchinson explained that the state grant allowed for a 5% change from the submitted plans, but any larger change would not be funded without reapplying. Mr. Hechenbleikner explained that the state requirement from a library program standpoint was to create a facility that would last for twenty years; from a building standpoint the structure should be thought of as a 30+ year investment. Ms. Perry asked to what level of detail was the state was involved. Ms. Urell replied that there were 13 functional areas examined, and the level of detail was right down to the seats, materials and computers available. Mr. Hutchinson explained that a library architect was hired because of this exacting level of detail required. Mr. Berman asked what the cost of doing nothing to the facility is, because it is surely not zero. He asked to distinguish between renovate and expand the floor plan, and what are the costs. Mr. Greenfield asked about the $9 million in construction costs and what the weaknesses in the building are and the specific repair costs. Mr. Hechenbleikner and Mr. Grimes explained that these were estimates, based on 31,000 square feet and costs of $258 /square foot for renovation. Ms. Herrick asked about the design contingency, and Ms. Urell replied that at this point the Town only had schematic designs, but for example a corridor might need to be added for traffic flow. Mr. Brown asked if the costs were for the roof structure or the roof itself, and Mr. Hechenbleikner described the last renovation where the roof was omitted to cut costs, then replaced within a few years. Ms. Urell described how the chimneys and turrets leak, but the structure itself is fine. Mr. Dockser asked about other projects and how costs compare, if there was any federal funding available, and if Reading would hire a project manager. Ms. Urell said she was not aware of any federal funding for library building projects, and that a project manager would be hired. Mr. Grimes added that a local donations discussion has started in the community. Mr. Greenfield asked what the Selectmen think about this project, and Mr. Tafoya replied that the Board was interested in the accuracy of renovation costs and who would be responsible during the construction process, both for longer term policy and then the day -to -day decisions. Mr. Hechenbleikner said that his view was that both the Facilities department and Library Director would report to the Town Manager on this project. He added that he was in favor of a Library Building Committee that would be advisory to both the Town Manager and the Facilities Director, and that it would include library staff, FINCOM, Trustees and residents. On the matter of project cost he stated that it was best to know the revised cost now and not after a bid process; and Mr. Hutchinson pointed out that the increases were not in reimbursable items so the Town did not miss out on any state aid. Mr. Van Magness said he didn't think his group was yet ready to go to Town Meeting. He asked what the project alternatives were, along with those costs. He reminded FINCOM about OPEB and all the other large -scale projects that might proceed as debt exclusions. Mr. Greenfield agreed that those other projects were important to consider, and that's why they were reviewed at November Town Meeting and will be again at January Town Meeting. He said that all we can do is make the best decision possible with the best information we have available. Mr. Hechenbleikner stated that the Library project was ranked highest by the ad hoc Municipal Building Committee a few years ago. Mr. McNeice asked if the figure of $20,000 for an extra election was correct, and Mr. LeLacheur replied that it was in that ballpark. Mr. Hechenbleikner said that one option was to defer this Town Meeting vote to the Annual Town Meeting, and then to have a special election. Mr. Greenfield wondered how FINCOM could vote on this project without knowing the costs of alternatives. He polled other FINCOM members. Mr. McNeice said that he could not vote tonight in the absence of such information, and Ms. Borawski agreed. She added that the project probably makes sense because of the grant, but there was not enough information to be certain. Mw. Herrick said that the Article should not go forward to Town Meeting if the FINCOM did not vote, and Ms. Perry agreed that a FINCOM vote was critical for Town Meeting to have. She said that while there was not exact information that she knew there was a significant cost to do nothing. Mr. Grimes said that the decision was made nearly seven years ago as to what alternative to select, and that's why a menu of choices and costs was not presented now. Mr. Berman said that he would vote now because he knew of all the past emergency repairs and that significant work was needed on the building. Mr. Arena stated that the project history is what it is, but the perception of new Town Meeting members was important to consider. He said that there would be only one shot at this, and said there was no reason to rush to failure — there was much risk in not taking the time needed and holding a special election instead. Mr. Greenfield said that the Article could be postponed to April Town Meeting if needed. Mr. Crook asked if there was a ballpark figure available for the repairs only portion of the project. He said it is important to consider longer -term costs as well as project costs. Ms. Urell said a specific number was not available for repairs only, and Mr. Hechenbleikner stated that it would be very expensive and time consuming to get a detailed alternative set of costs. Mr. Bonazoli said that the other projects and challenges would be presented at Town Meeting, and Mr. Berman said we didn't have perfect information on any of these projects. Mr. Bonazoli said that ultimately the residents of the Town will set the priorities. Mr. Dockser said he liked Mr. Crook's idea of looking at 10 -20 year costs for alternatives. Mr. Greenfield stated that FINCOM would not vote on Article 6 tonight. FINCOM agreed to join a Selectman's meeting on January 23, 2013 in order to get an update on alternative costs. Mr Greenfield will write a report to Town Meeting. Article 7/Pearl Street eminent domain: Mr. Hechenbleikner explained to FINCOM that the title to this property was not clear, the origins cannot be traced. He said there might be a $1 consideration fee, which is why FINCOM could vote this Article. Mr. Dockser will give the report at Town Meeting. Article 8 /Walker's Brook easement: Mr. Hechenbleikner explained to FINCOM the desire for a bus shelter and the possibility of a $1 consideration fee also. Ms. Borawski will give the report at Meeting. Article 10 /electronic billboard: Mr. Hechenbleikner explained to FINCOM the recent history of two test cases along rte. 93 and that late last fall the state changed the rules to allow electronic billboards. He stated that the only place in Reading that met the state's criteria was at the West Street Mobil station, where it would be placed to be visible for the highway traffic. He explained as host community the Town would receive an annual sum of between $25k and $50k from a vendor that was in negotiations. He said that other benefits would be that other billboards in town along Main Street would be taken down within five years, and that the Town would get some advertising time on the electronic billboard. He reminded FINCOM that this idea came from a Financial Forum a couple of years ago about ways to raise revenue. Mr. Greenfield reminded FINCOM that their role was purely financial in light of the revenue provided, and that the merit of the policy itself within the community was not the purview of the Committee. Mr. Berman will give the report at Meeting. Minutes Respectfully submitted, ^\C�\1 � I, Secretary `� U� ` ' " �J