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HomeMy WebLinkAbout2013-03-13 Finance Committee PacketIofI =..�F. vv vv vv — uuuiSiva.svvii aswi■�cauu.sivu�_ivicc�ui�v auavtt�•► �J.. Google Search i'�c��i'esS FINCOM Wednesday, March 13, 2013 at 7:30 PM Town Hall Conference Room Printer - Friendly Version Review Annual Town Meeting Warrant Articles 4 through 16 (although Article 13 will be deferred until next week) and Article 20 Snow & Ice Approval Minutes February 13 February 27 CAMMON Town of Reading, Massachusetts 16 Lowell Street, Reading, MA 01867 Website Disclaimer Virtual Towns & Schools Website O 3/13/2013 433 PM DRAFT 2013 Annual Town Meeting Monday April 22, 2013 WARRANT OUTLINE REVISED 03/12/2013 Art. Mover/ Moderator # Article Description S onsor Comment Notes 3/12/2013 1 �U/ DRAFT 2013 Annual Town Meeting Monday April 22, 2013 WARRANT OUTLINE REVISED 03/12/2013 16 Authorize debt — water distribution Board of Selectmen im rovements 17 Accept Easement for on -street parking Board of Selectmen — Pierce Street 18 Accept Drainage Easement — Victoria Board of Selectmen Avenue 19 Adjust property boundaries — Birch Board of Selectmen Meadow and School Committee 20 Approve Affordable Housing Trust Board of Selectmen Fund Allocation Plan 21 Amend Reading General Bylaw Board of Health section 1.8 to make Board of Health regulations and Rubbish Bylaw subject to 1.8 — non criminal dis osition 22 Amend Reading General Bylaw Board of Selectmen section 8.8 - Animal Control Bylaw 23 A rove revised Zonin Ma CPDC 24 Amendment of Section 2 -15, Board of Selectmen Referendum Procedure, of the Reading Home Rule Charter. 25 Remove Town Meeting members Board of Selectmen pursuant to Section 2.6 of the Reading Home Rule Charter 3/12/2013 2 A) J/ ARTICLE 2 To hear and act on the reports of the Board of Selectmen, Town Accountant, Treasurer - Collector, Board of Assessors, Director of Public Works, Town Clerk, Tree Warden, Board of Health, School Committee, Contributory Retirement Board, Library Trustees, Municipal Light Board, Finance Committee, Cemetery Trustees, Community Planning & Development Commission, Town Manager and any other Official, Board or Special Committee. Board of Selectmen Background: This article appears on the Warrant for all Town Meetings. At this Annual Town Meeting, the following report(s) are anticipated: ➢ State of the Town (Board of Selectmen) Finance Committee Report: No report. Bylaw Committee Report: No report. ARTICLE 3 To choose all other necessary Town Officers and Special Committees and determine what instructions shall be given Town Officers and Special Committees, and to see what sum the Town will vote to appropriate by borrowing or transfer from available funds, or otherwise, for the purpose of funding Town Officers and Special Committees to carry out the instructions given to them, or take any other action with respect thereto. Board of Selectmen Background: This Article appears on the Warrant of all Town Meetings. There are no known Instructional Motions at this time. The Town Moderator requires that all proposed Instructional Motions be submitted to the Town Clerk in advance so that Town Meeting Members may be "warned" as to the subject of an Instructional Motion in advance of the motion being made. Instructional Motions are normally held until the end of all other business at Town Meeting. Finance Committee Report: No report. Bylaw Committee Report: No report. ARTICLE 4 ) To see if the Town will vote to amend the FY 2013 - FY 2022 Capital Improvements Program as I vided for in Section 7 -7 of the Reading Home Rule Charter and as previously amended, or take any othe ction with respect thereto. Board of Selectmen Background: This Article is included in every Town Meeting Warrant. Town Bylaws prohibit Town Meeting from approving any Capital Expenditure unless the project is included in the Capital Improvements Program (CIP). Bond ratings agencies also want to ensure that changes to a long -term CIP are adequately described. The following changes are proposed to the 2013 -2022 CIP: r� General Fund FYI 3: 4200,000 ♦ - $250,000 Schools: School Space Needs ♦ + $50,000 Town Facilities — radio equipment repairs FYI 4: 430,000 ♦ - $15,000 GIS flyover ♦ - $45,000 Road repairs ♦ +$30,000 Pedestrian safety /sidewalks FYI 5: +$80,000 ♦ $80,000 Town Hall bathroom repairs inadvertently not listed in Jan '13 CIP FYI to FY23: ♦ No changes made Water Enterprise Fund FY14: - $49,500 ♦ +$550,000 for initial phase of large -scale water main repair & replacement project (shown as debt expense) ♦ - $350,000 H St. loop — project moved into large -scale project ♦ - $276,000 Causeway Rd. loop — project moved into large -scale project ♦ +$50,000 general water main lining program ♦ - $23,500 Previous MWRA debt project for Haverhill /Howard reduced — now shown as $185k/yr for this project plus $20k/yr debt that will be allocated to large water main projects FY15:415,000 ♦ +$545,000 for initial phase of large -scale water main repair & replacement project (shown as debt expense) ♦ +$130,000 added to booster station SCADA project ♦ - $220,000 Bear Hill tank maintenance ♦ - $200,000 wells upgrade project ♦ - $150,000 general water main lining program (amount lowered from $200k to $50k) ♦ - $120,000 Larch Lane project moved to FY16 FYI to FY23: ♦ Various projects rearranged by priorities; projected costs updated; many water main repairs folded into large -scale debt - financed project Sewer Enterprise Fund FYI 4: - $282,000 ♦ +$350,000 Lewis St., Howard St., and Charles St. projects replaces $75,000 Lewis St. project originally listed in FY12. Note whole project is $450k — balance to be funded by MWRA grant/loan program shown as debt; ♦ - $300,000 West St. sewer station project moved out to FY15; ♦ - $270,000 Joseph's Way sewer station project moved out to FY17; ♦ - $37,000 pickup truck replacement moved to FY17i ♦ - $25,000 reduce amount of general sewer main projects from $75,000 to $50,000. 4 rN FYI 5: 4200,000 ♦ +$300,000 West St. sewer station project moved out to FY15; ♦ +$120,000 truck replacement moved up from FY17; ♦ - $100,000 reduce amount of general sewer main projects from $150,000 to $50,000. ♦ - $520,000 Batchelder sewer station moved out to FY16 FYI to FY23: ♦ Various projects rearranged by priorities and projected costs updated. Storm Water Enterprise Fund FYI 4: 0 ♦ Reduce MS4 permit consulting & lab testing from $50,000 to $25,000 ♦ Increase Drainage improvement projects from $140,000 to $165,000 FY15 to FY22: ♦ Saugus and Aberjona river projects moved out two years ♦ Design work now FY17 and FY18; project debt now begins in FY20 ♦ Drainage improvement project funding adjusted to result in generally level capital requests for the next several years Finance Committee Report: Bylaw Committee Report: No report. ARTICLE 5 To see if the Town will vote to transfer funds take any other action with respect thereto. into the Sick Leave Stabilization Fund, or Board of Selectmen Background: This Stabilization Fund is set up to fund sick leave buyback for certain employees when they leave the employ of the Town, usually through retirement. Since wage line items in many Town departments are relatively small and budgets are built about 18 months in advance, even a typical six -month retirement notice is not sufficient to be able to fund this liability ahead of time. The sick leave buy -back benefit does not exist for mid- and higher -level management and other professional positions, and it is important to note that it is being phased out with employee turnover in every Town position. As of June 30, 2012 the total liability for Town employees was estimated to be a bit over $600,000. This summer we will study the liability from an actuarial viewpoint to determine if this Stabilization Fund method is optimal, and also to determine the best future funding plan. In the meanwhile, a transfer from Free Cash to this Stabilization Fund of $100,000 will adequately cover the funding request in Article 6 and leave a balance available to a future Town Meeting when needed. Finance Committee Report: Bylaw Committee Report: No report. 5 &) LARTICLE To see if the Town will vote to amend one or more of the votes taken under Article 13 of t the Annual Town Meeting of April 23, 2012 as amended under Article 4 of the Warrant of the t Town Meeting of November 13, 2012 and under Article 4 of the January 28, 2013 Special Town Meeting; and to see what sum the Town will vote to appropriate by borrowing or transfer from available funds, or otherwise, as the result of any such amended votes for the operation of the Town and its government, or take any other action with respect thereto. Board of Selectmen Background: The following budget amendments are proposed for the FY13 budget: General Fund — Wages and Expenses Account Line Description Decrease Increase B99 - Benefits Health Insurance premiums - $380,000 $0 OPEB contribution +$380,000 C99 - Capital Schools: school space needs - $250,000 $200,665.02 Town Facilities: Main Street Fire station radio equipment repairs (paid by insurance claim) +$49,334.98* D99 — Debt Service Killam & Birch Meadow Green Repair projects $30,000 191 — Finance wages Two special elections (state may reimburse in FY13 $30,000 or FY14 192 — Finance Two special elections (state may reimburse in FY13 $ 6,000 expenses or FY14) K91 — Community Sick leave buy -back / vacation, due to retirement $10,313 ** Services wages M91 — DPW wages Sick leave buy -back / vacation, due to retirements $38,129 ** 2 M92 — DPW expenses Highway — sidewalk repairs $6,000 $11,000 Highway — street signs $5,000 M93 — Snow & Ice $150,000 M94 — DPW Street $ 25,000 Lights M95 — DPW Rubbish Collection & solid waste disposal $100,000 N91 — Public Safety Fire sick leave buy -back / vacation, due to- $125,089 wages retirement $15,089 ** Fire OT $110,000 N92 — Public Safety Police Academy tuitions — reimbursed by $16,500 expenses employees directly to the General Fund $12,000 New police officer — uniform $4,500 U99 - Schools School Department — purchase new curriculum $250,000 Subtotals $325,665.02 $667,031 Net Operating Expenses $341,365.98 From Tax Levy, State Aid and Other Local $228,500 Receipts *From Insurance payments $49,334.98 * *From Sick Leave Buyback Fund $63,531 Finance Committee Report: Bylaw Committee Report: No report. 6 R ARTICLE 7 J To see if the Town will vote to authorize the payment during Fiscal Year 2013 of bills remaining paid for previous fiscal years for goods and services actually rendered to the Town, or take any otheraVion with respect thereto. Board of Selectmen Background: There are no known prior year's bills and this article will therefore be indefinitely postponed Finance Committee Report: No report. Bylaw Committee Report: No report ARTICLE 8 1 To see if the Town will vote to approve the FY 2014 — FY 2023 Capital Improvements Program as ,provided for in Section 7 -7 of the Reading Home Rule Charter, or take any other action with Board of Selectmen Background: Please see the Blue Pages in the Appendix of this Warrant Report for the FY 2013 — FY 2022 Capital improvements Program. Finance Committee Report: Bylaw Committee Report: No report. ARTICLE 9 J To see if the Town will vote to authorize revolving funds for certain Town Departments under Massachusetts General Laws, Chapter 44, Section 53E'/ for the fiscal year beginning July 1, 2013 with m�the rec ' s, as specified, credited to each fund, the purposes, as listed, for which each fund may be spent, the amount that may be spent from each fund for the fiscal year, and the disposition of the balance of each fund at fiscal year end. Revolving Account Spending Authority Revenue Source Allowed Expenses Expenditure Limits Year End Balance Fees as provided for in Reading Consulting and engineering Conservation General Bylaws services for the review of $25,000 Commission Section 5.7, designs and engineering Available for Consulting Conservation Wetlands work for the protection of expenditure Fees Commission Protection wetlands. next ear Building, Plumbing, Legal, oversight and Wiring, Gas and inspection, plan review, other permits for initial property appraisals he Oaktree, and appeals, Community $200,000 Addison-Wesley/ Services general Inspection Pearson and management, curb Available for Revolving Town Johnson Woods sidewalks and pedestrian expenditure Fund Manager developments safety improvements, next year 7 or take any other action with respect thereto. Board of Selectmen Background: The revolving funds established in this article are subject to annual renewal by Town Meeting. Inspections Revolving Fund - Beginning in 2004, Town Meeting approved the Inspections Revolving Funds as a way to deposit building and other permit fees, and to use them directly for purposes of plan review, inspections, legal expenses, initial property value appraisal and appeals, and general management of the Community Services operations related to three developments as well as for the construction of curbs, sidewalks and pedestrian safety improvements and records archiving and management. The balance available as of 3 -7 -13 in this fund is $509,894. There is expected to be little expenditure from these funds for FY 2013. The balance in the fund is from permit fees from Oaktree, Addison - Wesley /Pearson (now Pulte Homes), and Johnson Woods developments. Health Clinic Revolving Fund - The Reading Health Division contracts for third party payments for a number of immunizations. The funds are used to augment the influenza vaccine supply from the State Department of Public Health to insure vaccine for the homebound clients and first responders. The Division also uses these funds for materials for other screening clinics. Clinic client fees are also deposited into this fund to offset vaccine and clinical supply costs. The balance available as of 3 -7 -13 in this fund is $47,625. The State has been cutting back on the free flu and other vaccines to be distributed to cities and towns, and the Town therefore needs to purchase extra doses. The necessary amounts used for clinic vaccine, supplies and staff salaries related to the clinics each year directly from the revolving fund is therefore approximately $25,000. Library Materials Replacement Fund — During the course of a year, the Library recovers funds from patrons who have lost or damaged books or other materials. Previously, those funds went into the Town's General Fund and at the end of the year went into Free Cash. Once this Revolving Fund was adopted (beginning in FY 2010), those funds recovered from patrons for lost or damaged materials were available directly to the Library for expenditure to purchase replacement materials and processing supplies. The balance available as of 3 -7 -13 in this fund is $6,591. 8 records archiving and other project related costs. Vaccines, materials for screening clinics and clinical supply costs, medical $25,000 Public Health Clinic Fees and equipment and supplies, Available for Clinics and Board of third party immunizations, educational expenditure Services Health reimbursements materials next year Library Library Charges for lost or Acquire Library materials to Available for Materials Director and damaged Library replace lost or damaged $15,000 expenditure Replacement Trustees materials items next year Utilities and all other Available for Mattera Cabin Recreation maintenance and operating $10,000 expenditure Operating dministrator Rental Fees ex enses next year Director of Public Works upon the recommendati on of the Sale of timber; fees Available for Town Forest for use of the Town Planning and Improvements $10,000 expenditure Town Forest Committee Forest to the Town Forest next ear or take any other action with respect thereto. Board of Selectmen Background: The revolving funds established in this article are subject to annual renewal by Town Meeting. Inspections Revolving Fund - Beginning in 2004, Town Meeting approved the Inspections Revolving Funds as a way to deposit building and other permit fees, and to use them directly for purposes of plan review, inspections, legal expenses, initial property value appraisal and appeals, and general management of the Community Services operations related to three developments as well as for the construction of curbs, sidewalks and pedestrian safety improvements and records archiving and management. The balance available as of 3 -7 -13 in this fund is $509,894. There is expected to be little expenditure from these funds for FY 2013. The balance in the fund is from permit fees from Oaktree, Addison - Wesley /Pearson (now Pulte Homes), and Johnson Woods developments. Health Clinic Revolving Fund - The Reading Health Division contracts for third party payments for a number of immunizations. The funds are used to augment the influenza vaccine supply from the State Department of Public Health to insure vaccine for the homebound clients and first responders. The Division also uses these funds for materials for other screening clinics. Clinic client fees are also deposited into this fund to offset vaccine and clinical supply costs. The balance available as of 3 -7 -13 in this fund is $47,625. The State has been cutting back on the free flu and other vaccines to be distributed to cities and towns, and the Town therefore needs to purchase extra doses. The necessary amounts used for clinic vaccine, supplies and staff salaries related to the clinics each year directly from the revolving fund is therefore approximately $25,000. Library Materials Replacement Fund — During the course of a year, the Library recovers funds from patrons who have lost or damaged books or other materials. Previously, those funds went into the Town's General Fund and at the end of the year went into Free Cash. Once this Revolving Fund was adopted (beginning in FY 2010), those funds recovered from patrons for lost or damaged materials were available directly to the Library for expenditure to purchase replacement materials and processing supplies. The balance available as of 3 -7 -13 in this fund is $6,591. 8 • Mattera Cabin Operating Fund — The log cabin on the Mattera conservation land was purchased several years ago, and was recently renovated by the Vocational School. Some of the use is revenue generating, and it is anticipated that over time the site will generate enough funding to pay the operating costs of the cabin — primarily utilities. This Article allows those revenues that are generated to be used directly for the operating expenses of the cabin. The balance available as of 3 -7 -13 in this fund is $1,290. Town Forest Revolvina Fund was created in 2011. The purpose is to allow revenues from controlled timber harvesting and permit fees to then be spent by the DPW Director upon the recommendation of the Town Forest Committee, on improvements to the Town Forest, including planning efforts. The Town Forest Committee has had a forest stewardship plan created (through a grant) to make recommendations on forest management including controlled timber harvesting. The Committee is in the process of determining how to proceed in beginning this work. In addition, the Town Forest Committee completed work on a master plan for the Town Forest and adjacent property, and the Master Plan will include recommendations on improvement to the Town Forest. Finally, the Town Forest Committee is beginning to develop policies and regulations on the use of the Town Forest. Since this revolving fund was just created2 years ago the balance available as of 3 -7 -13 in this fund is $0. It is anticipated that timber harvesting on a limited basis will begin in FY 2014, and therefore there will be proceeds in the revolving fund which can be used for the purposes of the revolving fund. Finance Committee Report: Bylaw Committee Report: No report. C LE 10 To see if the Town will vote to authorize the Board of Selectmen to sell, or exchange, or e of pon such terms and conditions as they may determine, various items of Town tangible property, or their action with respect thereto. Board of Selectmen Backaround: Following is a list of surplus vehicles that are scheduled to be disposed of in Meeting approval is required for disposition of tangible property with a value of $5000 or m that any of these items have a value that exceeds that amount, but to be safe, Town Me requested. Disposition could be through trade in, auction, or other sale. • Police 2009 Ford Crown Victoria • Police 2005 Ford Taurus • Police 1998 Ford Econoline Van (ACO Van) • DPW 1982 Ford 445 Tractor • DPW 1996 Chevy 3500 Dump Truck • DPW 1997 Holder C9700 Sidewalk Plow • DPW 2001 International 4900 Dump Truck • DPW 1997 Ford F350 4X4 • DPW 1997 Ford F350 4X2 Finance Committee Report: Bylaw Committee Report: No report. FY 2014. Town ,re. It is unlikely -,ting approval is 'ARTICLE 1 y To see if the Town will vote to determine how much money the Town will appropriate by ,borrowing, or from the tax levy, or transfer from available funds, or otherwise, for the operation of the Town and it&rnment for Fiscal Year 2014 - beginning July 1, 2013, or take any other action with respect thereto. 9 Iu/ Finance Committee Background: Please see the Yellow Pages of this document for full details of the FY 2014 budget. Finance Committee Report: Bylaw Committee Report: No report. ARTICLE 12 ) To see what sum the Town will appropriate to the irrevocable trust for "Other Post Employment�enefits Liabilities" or take any action with respect thereto. Board of Selectmen Background: As part of the FY13 budget the town voted $420,000 in the general fund, $47,664 in the water fund, $9,667 in the sewer fund and $5,570 in the storm water fund for Other Post Employment Benefit (OPEB) contributions. In addition, Article 6 in this warrant will add $380,000 in FY13 to OPEB contributions in the general fund. This Article will move the total of all these OPEB contributions ($862,902) to the irrevocable trust for Other Post - Employment Benefits liabilities. According to the Town's most recent actuarial OPEB valuation study, in FY13 the annual contribution required to fully fund this liability over 30 years (net of health insurance premiums already budgeted) is an additional $1,575,257 in the general fund. Thus the $800,000 mentioned above is only about half of that actuarially determined funding level. Finance Committee Report: Bylaw Committee Report: No report. ARTICLE 13 o see if the Town will vote, pursuant to Section 5.2 of the Reading General Bylaws, to approve and lathorize a settlement of a pending litigation matter involving the construction of the Reading High School, eentitled TLT Construction Corporation v. Harleysville Worcester Insurance Company v. Town of Reading -M dlesex Superior Court, Docket No. MICV2007- 05072 -B, involving the payment of a sum of more than Fifty Thousand ($50,000) Dollars, or take any other action relating thereto. School Committee Background: The Reading School Committee has reached a tentative settlement of one of the outstanding legal cases involving the construction of the Reading Memorial High School. There is one additional case that is outstanding. By Charter and Bylaw the Board of Selectmen needs to approve any settlements, and Town Meeting needs to approve any settlements of general (not Workers Comp) legal matters in excess of $25,000 where Town funds are involved. The following is the pertinent section o fthe General Bylaw: 5.2 Resolution of Legal Matters Town Counsel, or any other Special Counsel employed by the Board of Selectmen pursuant to Section 6 -4 of the Charter, shall not make any final settlement of any litigation to which the Town is a party unless he has been duly authorized by a vote of the Board of Selectmen, or by a vote of Town Meeting. The Board of Selectmen shall have the authority to compromise and settle all suits involving the payment by the Town of Twenty -Five Thousand ($25,000) Dollars or less, and they shall further have the authority to compromise or settle all claims, actions, proceedings and suits arising under Worker's Compensation or related disability insurance statutes involving payment by the Town of Fifty Thousand ($50,000) Dollars or less. Town Meeting must approve the compromise or settlement of all suits 10 i�) involving payment by the Town of more than Twenty -Five Thousand ($25, 000) Dollars, except claims, actions, proceedings and suits arising under Worker's Compensation or related disability insurance statutes in which case Town Meeting must approve or compromise the settlement of all such matters involving the payment by the Town of more than Fifty Thousand ($50, 000) Dollars. The balance in the RMHS construction account is $1,284,312.52, and these funds can and have been used to pay for legal expenses and are available to pay for any settlement of legal matters. Finance Committee Report: Bylaw Committee Report: No report. f►RTICLE 14 To see what sum the Town will vote to appropriate by borrowing, whether in anticipation of reimburs ent from the State under Chapter 44, Section 6, Massachusetts General Laws, or pursuant to a r enabling authority or from the tax levy, or transfer from available funds, or otherwise, for highway projects in accordance with Chapter 90, Massachusetts General Laws, or take any other action with respect thereto. Board of Selectmen Background: The purpose of this Article is to make Chapter 90 funds for road improvements available to the Town. The Article authorizes expenditures upon receipt of the grant. Based on the Governor's proposed Transportation Plan the Town's FY 2014 Chapter 90 allocation is anticipated to be $904,518. This amount represents a $301,506 increase over the previous year's allotment. The expectation is that the State will formally announce the actual amount prior to the April 22 Annual Town Meeting. Finance Committee Report: Bylaw Committee Report: No report. ARTICLE 15 To see what sum the Town will raise by borrowing or transfer from available funds, or otherwise, appropriate for the purpose of making extraordinary repairs and /or replacement of sanitary ection systems on all or portions of Howard Street, Lewis Street, and Charles Street, including the costs of consulting services, audits, plans, documents, cost estimates, bidding services and all related expenses incidental thereto and necessary in connection therewith, said sum to be expended by and under the direction of the Town Manager; and to see if the Town will authorize the Board of Selectmen, Town Manager, or any other agency of the Town, to apply for a grant or grants, to be used to defray the cost of all, or any part of, said sanitary sewer improvements; and to authorize the Town Manager to enter into any and all contracts and agreements as may be necessary to carry out the purposes of this Article, or take any other action with respect thereto Board of Selectmen Background: During recent investigations the Town's Infiltration and Inflow (1 /1) program has identified several sewer mains that are deteriorated and a significant source of infiltration. Infiltration occurs when surface or ground water enters sewers through leaks, cracks and faulty joints in pipes and manholes. Any 1/1 into the sewer system increases the amount of sewage to be treated which directly affects the Town's sewer rates through increased assessments from the Massachusetts Water Resources Authority (MWRA). The replacement and rehabilitation of defective sewer mains are essential in reducing the amount of 1/1 introduced into the system. The sewer mains identified to be rehabilitated and replaced under this article are located on Lewis Street, Charles Street and Howard Street. Approximately 1200' on Lewis Street and 600' on Charles Street will be 11 1'ni) rehabilitated by means of Cured -In -Place Pipe (CIPP). CIPP is a trenchless sewer main repair that lines the sewer main with a reinforced fabric liner making the pipe structurally sound and watertight. This process is less disruptive to the road surface and does not require the complete restoration of roadway surfaces. However, the 1500' of sewer main on Howard Street is too structurally compromised and undersized for CIPP and must be replaced. The replacement will remove the existing 6" pipe and replace it with a new 8" pipe, including manholes, services and pavement rehabilitation. The total cost of these projects will be $460,000. Funding for the project will utilize $350,000 of Town Capital funds and $110,000 of MWRA 1/1 Local Assistance funds in the form of a 45% grant and 55% interest free loan with a repayment period of 5 years. Finance Committee Report : No report. ARTICLE 16 / To see what sum the Town will raise by borrowing or transfer from available funds, or otherwise,,and appropriate for the purpose of making extraordinary repairs and /or replacement of water .distribution mains on the following streets or portions of the following streets: Main Street, Mill Street, Locust Street, Bear Hill Road, Linden Street, Minot Street, Summer Avenue, Libby Avenue, cross - country from Belmont Street to Libby Avenue, Chute Street, Haven Street, Sanborn Street, High Street and Washington Street; including the costs of consulting services, audits, plans, documents, cost estimates, bidding services and all related expenses incidental thereto and necessary in connection therewith, , to be used to defray the cost of all, or any part of, said water distribution system improvements; and to authorize the Town Manager to enter into any and all contracts and agreements as may be necessary to carry out the purposes of this Article, or take any other action with respect thereto Board of Selectmen Background: The purpose of this Article is to authorize debt for planned improvements to the water system. In 2012 the Town hired Weston and Sampson Inc. to develop a new water system hydraulic model and develop a Water System Master Plan Report to reflect current system hydraulics. The model evaluated the town's distribution system to address the new MWRA supply, water quality concerns, and the proposed new second connection by MWRA. The report indicated that in switching the main source of water from the north (location of the Town's former Water Treatment Plant) to the south (location of the MWRA interconnection) combined with the 29% of unlined cast iron pipe in the system caused several system deficiencies. To address these deficiencies Weston and Sampson developed a 20+ year Master Plan. The master plan recommends the cleaning and lining of unlined cast iron mains and replacing of undersized or deteriorated mains. The plan's initial Phase A includes projects which will create the greatest level of improvement to the system and address improvements to water quality in the northern part of town. Phase A is planned to be implemented in two (2) phases the first phase in FY 14 and the second phase in FY16 as identified below: Phase A -1 (FY14) Main Street, Mill Street, Locus Street, Bear Hill Road, Linden Street, Minot Street, Summer Avenue, Libby Avenue, X- Country — Belmont Street to Libby Avenue, Phase A -2 (FYI 6) Chute Street, Haven Street, Sanborn Street, High Street and Washington Street To assist the Town in funding of these projects the Town was successful in obtaining the accelerated release of MWRA loan assistance for this project. Under MWRA's Local Water Assistance Program ( LWSAP) the Town will be able to utilize any surplus MWRA funds from the previously approved water main projects and $4,012,000 of new LWSAP funds toward the proposed new water improvements. Under the LWSAP program the Town will receive interest free loans with a repayment period of up to 10 years. 12 Drive ", in Reading, MA" dated March 4, 2013, prepared by Bay State Surveying Associates; or take any other action with re s ct thereto. Board of Selectmen and School Committee Background: Durin the design of the Reading Memorial High School project it became clear that the ownership patterns o land by the Town in the Birch Meadow area were not consistent with the current and proposed uses of the s . Some of the lands owned by the Town for parkland are actually School Department facilities (the stadium is attwIly split through the middle — part Town parkland and part School Department ownership), and some School owmd properties are actually used as public parks (Imagination Station site). The Board of Selectmen and the School mmittee entered into an agreement on May 27, 2003 to: " • Place an article on the Town Me ing warrant following completion of the Reading Memorial High School addition /renovation project to ansfer all land that the Reading Memorial High School buildings and appurtenances occupy (includin parking lots but not including park land and fields), to the Reading School Committee. Upon com etion of the project, an as -built survey will be done by the School Committee at their sole cost and expens of the entire Birch Meadow complex, and this survey will be used as the basis of determining the prope y whose ownership will be transferred to and /or from the Reading School Committee; • Provide a long -term lease to the Reading School the "care, custody, and control" of all lands and fields that are a part of the Reading Memorial High Schoo dition /renovation project" The project is complete and the Town Engineering Division has bee working to do the necessary survey work to determine the existing property bounds and ownership, and to evelop the plan for the proposed new boundaries. This land transfer may need approval of the legislature to the extent that an park lands are proposed to be transferred to the School Department. Finance Committee Report: No report. Bylaw Committee Report: No report. ARTICLE 20 To see if the Town will vote to approve an Affordable Housing Trust Fund Allocation Plan pursuant to hapter 140 of the Acts of 2001 entitled "AN ACT AUTHORIZING THE TOWN OF READING TO ETA p-SH AN AFFORDABLE HOUSING TRUST FUND ", or take any other action with respect thereto. Board of Selectmen Background: The purpose of this Article is to approve an Affordable Housing Trust Fund Allocation Plan approved by the Board of Selectmen. Chapter 140 of the Acts of 2001 authorized the Town of Reading to establish an Affordable Housing Trust Fund (AHTF). ♦ "The Town of Reading may establish a separate fund to be known as the Affordable Housing Trust Fund for the purpose of creating or preserving affordable housing ... for the purpose of creating, maintaining or operating affordable housing." ♦ The AHTF may "develop new or rehabilitate existing dwelling units for purchase or rental by low and moderate income housing purchasers or tenants;" ♦ "Expenditures shall follow an allocation plan submitted by the Board of Selectmen annually to Town Meeting at the Annual Town Meeting, and approved by Town Meeting." ♦ "all expenditures from the fund, ... shall be in accordance with the allocation plan and approved by a majority vote of the full combined memberships of the Board of Selectmen and the Reading Housing Authority." 15 The purpose of the Affordable Housing Allocation Plan is to provide a framework for the Town to expend funds on affordable housing. The current balance is $ $259,693.37. Funds have been accumulated over the years as funds were secured for the purpose by the CPDC, and funds deposited in one instance when an existing affordable unit was no longer able to be kept affordable after efforts were made to do so. There are no Town tax generated funds in the AHTF. The only expenditure to date from the AHTF is an amount of $200,000 for Oaktree development to provide an additional 3 affordable housing units. That sum has been fully been utilized. At the 2012 Annual Town Meeting, approval was given for funding to hire a consultant to update the Town's Housing Plan, including the 5 year "Housing Production Plan ". This effort is important as a defense against unfriendly 40B developments in the community, and requires the Town to develop a phased plan to produce housing to reach the 10% threshold as required by the 40B statute. As part of these planning efforts, the Town has received a report on how the AHTF can best be used to support the "Planned Production" goals of the Housing Plan. The AHTF element of the study was received in the late winter 2013, and a presentation is scheduled before the Board of Selectmen and the Reading Housing Authority in early April. The report recommends major restructuring of the Town's AHTF efforts, and because the Board of Selectmen will not have had a chance to fully review and evaluate this recommendation before Town Meeting begins, the Town Manager is recommending to the Board of Selectmen that the AHTF Allocation Plan as shown below be adopted as the framework for the use of Affordable Housing Trust Fund in FY 2014. An additional initiative that is being considered (Reading is the lead agency on the project) is to join a regional consortium which would assist the member communities in monitoring and administering the Town's responsibilities for the various affordable housing developments that exist and will be developed in the future, to maintain the affordable units that the Town has worked so hard to create. This would be a potential use of the "Administrative" monies designated by the Affordable housing Allocation Plan. Affordable Housing Trust Fund Allocation Plan FY 2014 Pursuant to Article 20 of the 2013 Annual Town Meeting, an Affordable Housing Trust Fund Allocation Plan for the Fiscal Year 2014 in accordance with the provisions of Chapter 140 of the Acts of 2001 is as follows: Available Balance — Unrestricted Funds: $ 259,077 Available Balance — Restricted Funds $ 0 Unrestricted funds shall be used for the following purposes: $10,000 or a maximum of 5% for administration of Affordable Housing Remainder for constructing affordable housing (including loan and grant programs); or for maintaining and improving affordability of existing housing stock; or for the purchase of existing housing stock to add it to or maintain it as a part of the existing affordable housing inventory Finance Committee Report: Bylaw Committee Report: No report. ARTICLE To see if the Town will vo � amend Sectio 1.8 of the General Bylaw by adding to the chart the follo ng lines: Following SectioX8.- Bylaw Bylaw Enforcing Penalty — P�alty — -7 Penalty — Section Person First econd Additional ZZ 16 ZZ Joint Meeting of the Finance Committee, Board of Selectmen, and School Committee February 13, 2013 The meeting convened at the Pleasant Street Center, 49 Pleasant Street, Reading, Massachusetts. The Finance Committee called to order at 7:07 p.m. Present were Selectmen Ben Tafoya, Richard Schubert, John Arena, James Bonazoli; Finance Committee members David Greenfield, Barry Berman, Jeanne Borawski, Hal Torman, Paula Perry, Karen Herrick, Jeffrey Perkins, and Paul McNeice; School Committee members Karen Janowski, Rob Spadafora, Chuck Robinson, and Harold Croft; Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools John Doherty, Assistant Superintendent of Schools Mary Delai, Town Accountant Sharon Angstrom, Town Planner Jean Delios, Public Works Director Jeff Zager, Fire Chief Greg Burns, Public Works Business Administrator Jane Kinsella, Office Manager Paula Schena, Town Meeting member Stephen Crook. Financial Update FY13 Budgets — Bob LeLacheur noted that the weekend storm cost $240,000 and that leaves a balance of $50K - $70K. Mr. LeLacheur reviewed the projected changes to the FY13 budget at the Annual Town Meeting and he noted that the use of free cash is close to zero. FY14 Budget Process and Updates — Bob LeLacheur noted that the result of the October Financial Forum resulted in FY14 budgets of 2.5% and using $1 million in free cash. Cuts to some accommodated costs in December resulted in a 3% budget using $1 million in free cash. In January there was a decrease in the health insurance premium and that allows a 3.75% operating budget. Cash Reserves — Bob LeLacheur noted that free cash is $7 million plus or 9% of net income. One time events that saved us money put us in good shape but we can't count on that every year. Discussion about FY14 Budgets The Town has developed a list of over $300K of desired additions. The Superintendent's school budget was $556,797 over the 3% guideline and the School Committee's school budget was $756,797 over the 3% guideline. The facilities budget is $45,018 below the 3.75 %. Bob LeLacheur reviewed the potential budget changes ranked by staff and Selectmen. The Town Manager noted that the zoning bylaws really need to be done and $75,000 is a one time cost. It has not been ranked but it should be a priority. John Arena asked what we will be at two to three years from now if we do 3.75% and Bob LeLacheur indicated probably 2.50 %. The Town Manager noted that all labor contracts expire in 2014. If state aid comes in higher than predicted then we will reduce the use of free cash. k„ Board of Selectmen, School Committee and Finance Committee — February 13 2013 — page 3 David Greenfield asked why Police and Fire overtime isn't being funded and Bob LeLacheur noted there is already an increase built into the base budget. Barry Berman noted that an additional Crossing Guard got high rankings but didn't get funded. The Town Manager noted it is not needed because there is one within 250 feet. Karen Herrick asked what benefit we would see by updating the zoning bylaws and the Town Manager noted it will be easier for residents, developers, and staff. Jean Delios noted that people are requesting a redo of the off premise sign section of the bylaws. Karen Janowski called the School Committee to order at 7:40 p.m. Ben Tafoya called the Board of Selectmen to order at 7:40 p.m. David Greenfield asked what the drivers are in the school budget increase. John Doherty noted that $310,000 is curriculum material which is a one time cost and others are increase in number of positions due to enrollment. John Arena asked if the FTE's are a recurring cost that will persist and Mr. Doherty indicated that is correct. David Greenfield noted that he is not concerned about free cash this year but feels we will be setting ourselves up for trouble in future years. Barry Berman noted that free cash has never been healthier and is okay with using it as long as we don't go crazy. Hal Torman indicated he is concerned with an increase in headcounts. He asked if enrollment dropped will the headcount drop and John Doherty noted it was hard to say, but enrollment numbers are strong. Karen Herrick noted that she's comfortable spending now because it's like an investment in our future. The Town Manager noted that $1 million in free cash works out to be $118,000 for the Town and $756,797 for the Schools. Richard Schubert asked how many 8t` graders are moving to the 9t' grade and John Doherty indicated he did not know but it usually is 5 %. Chuck Robinson noted that 5% equals 60 students. John Doherty noted that over the past years we have had 100 additional students and no increase in staff. John Arena asked about the $400,000 for full day kindergarten and the Town Manager noted that the School Department is using a portion of that to explore other options. John Doherty noted that he anticipates that the most they will use of the $400,000 is $150,000. 11 Board of Selectmen, School Committee and Finance Committee — February 13 2013 — page 3 David Greenfield indicated that next year he wants to discuss how to balance out the 1/3 and 2/3 split between the Town and School because when you keep adding to one the amount gets out of whack. Draft Library Building Committee Policy — The Town Manager noted this is scheduled for a hearing on February 26, 2013. The Library made changes at 6:45 p.m. today so there might be changes to it. The proposal is to have one Finance Committee member on the Committee along with two Library Trustees, two Library staff, one Historic Commission member, two Town Meeting members and two residents with professional construction expertise. Approval of Minutes A motion by Perry seconded by Herrick to approve the minutes of January 9, 2013 as amended was approved by a vote of 7 -0 -1. A motion by Arena seconded by Schubert that the Board of Selectmen go into Executive Session to consider the purchase, exchange, lease or value of real property and that the Chair declares that an open meeting may have a detrimental effect on the negotiating position of the body and not to reconvene in Open Session was approved on a roll call vote with all four members voting in the affirmative. A motion by Berman seconded by McNeice that the Finance Committee go into Executive Session to consider the purchase, exchange, lease or value of real property and that the Chair declares that an open meeting may have a detrimental effect on the negotiating position of the body and not to reconvene in Open Session was approved on a roll call vote with all eight members voting in the affirmative. A motion by Croft seconded by Spadafora that the School Committee ao into Executive Session to consider the purchase, exchange, lease or value of real property and that the Chair declares that an open meeting may have a detrimental effect on the negotiating position of the body and not to reconvene in Open Session was approved on a roll call vote with all four members voting in the affirmative. Respectfully submitted, Secretary n Finance Committee Meeting February 27, 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 and members Jeanne Borawski, Mark Dockser, Karen Herrick, Paul McNeice, Paula Perry and Hal Torman. Also present was Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Town Accountant Sharon Angstrom, Fire Chief Greg Burns, Community Services Director /Town Planner Jean Delios, DPW Business Manager Jane Kinsella, DPW Director Jeff Zager, Town Engineer George Zambouras and resident Jeff Struble; FINCOM Vice Chairman Barry Berman and member Jeff Perkins were absent. Mr. Greenfield called the meeting to order. Comments from Town Meeting member Mr. Greenfield highlighted emails sent between Town Meeting member Jeff Struble and himself, and the fact he invited Mr. Struble in to further the discussion on the role of FINCOM with the entire committee. Mr. Struble began by introducing himself as a Town Meeting member and also the fact that as a structural engineer he was involved in the volunteer effort to respond to FINCOM's inquiry about a cost of an alternative library project plan. He disagreed that FINCOM should have requested such information on the project so late in the process, and that it had never before stepped in front of an elected board (in this case the Library Trustees) to question their decision. He stated his concern as for future projects that Reading might undertake and the role that FINCOM might play. Ms. Perry stated that she did disagree with some of the tone in the FINCOM report at Town Meeting that Mr. Greenfield presented, and did not believe that tone accurately reflected the opinion of a majority of FINCOM. Mr. Perkins, as a new member to FINCOM, asked why the FINCOM liaison did not get involved earlier in the library project process. Mr. Greenfield remarked that anytime a project or major decision is in front of the FINCOM or the entire community, it is important to have alternatives. Ms. Perry agreed and that FINCOM had been asking the cost of not doing the library project — a so- called `do- nothing' decision — for a few months. Mr. McNeice agreed that FINCOM purposefully did not ask for a full alternative plan, just a cost estimate so they had some basis for comparison and they could answer that question in public. Mr. Dockser stated that the big change in the updated project cost estimate did play a role, because it brought the financial aspect of the project under more scrutiny, and that FINCOM's role was to be able to fully understand the situation before making a decision. Mr. Greenfield said that he expects groups to come fully prepared when they present information to FINCOM, and that he would support any effort to improve the process of a fuller discussion along the way before reaching FINCOM. Library Building Committee Mr. LeLacheur reviewed the Board of Selectmen's policy to establish a Library Building Committee, and asked that FINCOM appoint one member. Ms. Herrick volunteered for that role. rA � On a motion by Mr. Dockser seconded by Ms. Perry, FINCOM appointed Ms Herrick as their representative to the Library Building Committee by a vote of 7 -0 -0. FY14 Town Manager's Budget Mr. LeLacheur reviewed the agendas for the next several FINCOM meetings through the end of March, including discussions of the FY14 budget and Articles at the upcoming Annual Town Meeting. Mr. Hechenbleikner presented an overview of the FY14 budget, which includes the use of just over $1 million in free cash. The budget fully funds the School Committee's budget and over the next two weeks Town department heads will review each of their FY14 budgets with FINCOM. Mr. LeLacheur reviewed the changes between the October Financial Forum and the March budget meetings. This year there is a $0.8 million improvement and most of those funds are being used in ongoing operating budgets; last year there was a $2 million improvement and about half of those funds were directed towards operating budgets, with a large share towards substance abuse prevention efforts. Ms. Angstrom reviewed the projected FY14 revenues in detail. She spoke about historical patterns, and changes in those patterns that should be considered going forward. She also reviewed the current levels of reserves and how after the proposed use of free cash in the FY14 budget the remaining balance was just under $7 million, or 9.1% of net available revenue — a figure well in excess of FINCOM's minimum 5% policy. Ms. Angstrom responded to an advance question from Ms. Borawski by describing the regeneration of reserves back to 2000. The level of reserves has grown substantially over that time because the town has spent large one -time revenues sparingly. Mr. LeLacheur reviewed the FY14 operating budgets — both the Town and Schools have +3.75% increase, plus the schools received additional funding of over $180,000 and the Town received over $30,000. Town Facilities did not need the full 3.75 %, so $50,000 less free cash was used to balance the overall budget. Among Town departments the budget changes were mixed, ranging from +11.4% in Community Services (due to a one -time $75,000 expense on a zoning bylaw project) to +0.1% for Accounting. Mr. LeLacheur then switched to total department budgets which will be the focus of the remaining FINCOM budget meetings. These ranged from +9.0% for Community Services to -1.8% for Town Administration. He also showed the employment of the various Town departments, which show a 2.7% increase from FY09 /10 for Public Safety, but a 5% decrease in all other departments combined. Public Works Mr. Zager reviewed the +2.9% DPW budget, which included the restoration of four seasonal laborers and the addition of one part-time clerk. Ms. Perry asked about the $10,000 expense for watering downtown flowers provided by the Economic Development Committee. Mr. Zager reviewed the history and the options. Mr. Greenfield asked what the EDC spends towards flowers, and if they could chip in more so the DPW share was less for watering. Mr. Torman / l) cited the success of the Fall Street Faire as generating funds for EDC activities, including the downtown flowers project. Mr. Zager reviewed the rubbish, snow & ice and street lights budgets — all of which showed modest changes for next year. He reminded FINCOM about the success of the changes to the rubbish program, and that Reading won an award for the changes. Mr. Torman asked a question about the year -to -date rubbish budget, and Ms. Kinsella replied that funds were set aside to pay expected costs for the rest of the year, but those funds had not yet been spent. This would lead to a surplus in this budget by year -end. Enterprise Funds Mr. LeLacheur discussed the overview of water & sewer reserves, and described W &S Enterprise fund costs as MWRA assessments (55 %) that have been projected to increase at 6.1% annually from FY12 -17; and local costs (45 %) that have been planned to increase at 0.8% annually over that same time period. He described that both the large -scale water main repair project and the complete sewer station upgrade project had been placed into the capital plans. Mr. LeLacheur showed a combination of expenses and use of reserves that lead to a 2% net budget increase for the water fund and a 5.6% increase for the sewer fund. The Storm Water fund was about unchanged for FYI 4, leaving the $40/household basic fee structure intact. Town Administration Mr. Hechenbleikner reviewed the 1.8% Town Administration budget, which aside from removing town manager transition costs had very little changed. Mr. Greenfield asked if the property & casualty rate from MIIA was competitive, and Mr. Hechenbleikner replied that as MIIA was non - profit that it was for both P &C and Worker's Comp insurance. He also mentioned that MIIA gave excellent customer service, which was important because those filing claims were often residents of the Town. Accounting Ms. Angstrom reviewed the +0.1 % Accounting budget, which had few changes. The Assistant Accountant position was reduced but a stipend was put in it's place. Additional professional development funds were added since she was new to the public sector. Finance Mr. LeLacheur reviewed the -0.1 % Finance budget, which included regionalization in the Assessing division and the restoration of hours to a part time general clerical position. He reviewed in detail the Assessing function and all the changes that had happened since last June. He stated that the changes were very positive and things were going along very well now. On motion by Mr. Torman seconded by Ms. Perry the FINCOM voted to adiourn it's meeting at 10:05 p.m. by a vote of 7 -0 -0. Respectfully submitted, Secretary