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HomeMy WebLinkAbout2014-01-29 Board of Selectmen Minutes OFR �\ Town of Reading b i Meeting Minutes RECEIVED i-OWN CLERK RKY 639•lV�ORQ��r _!1 D I N�.7 I i 1 S J. Board - Committee - Commission - Council: ,a +r^R 18 A II: 30 Board of Selectmen Date: 2014-01-29 Time: 7:30 PM Building: Pleasant Street Senior Center Location: Great Room Address: 49 Pleasant Street Purpose: Financial Forum Attendees: Members - Present: Chairman James Bonazoli, Vice Chairman John Arena, Secretary Ben Tafoya, and Selectman Daniel Ensminger Members - Not Present: Marsie West Others Present: Town Manager Bob LeLacheur, Joe Huggins, Sharon Angstrom, Jean Delios, John Halsey, Kevin Sexton, John Doherty, Chuck Robinson, Jeanne Borawski, David Hutchinson, Jane Kinsella, Chief Burns, Jeff Zager, Ruth Urell, Mary Delai, David Greenfield, Mark Dockser, Karen Herrick, Barry Berman, Paul McNeice, Alice Collins, Vicki Yablonsky, Bill Brown, Donavin Bentley, Cherri Dubois, Nancy Twomey, Rachel Baumgarten, Brandon Chapman, Craig Merry, Nick Bonanno, Amy Lannon, Mary Pastore, Geoffrey - Coram, Karl Weld, Evan Warner, Greg Stepler, Paul Hemphill, Andrew Grimes, Stephen Crook, John Brzezenski, Phil Rushworth, Office Manager Paula Schena Minutes Respectfully Submitted By: Secretary Ben Tafoya Topics of Discussion: The Board of Selectmen, Library Board of Trustees and Library Building Committee called to order at 7:30 p.m. Finance Committee member Mark Dockser indicated the Finance Committee will have a quorum later. Town Accountant Sharon Angstrom reviewed the revenues and reserves. She noted that there is a total of $9.3 million in reserves. She noted that property taxes increased 3.6%, excise tax is over $3 million and state aid was reduced $218,000. The Town Manager noted that accommodated costs have decreased. Health insurance is an unknown so he used 7%. The budgets at 3.50% are fine. Superintendent of Schools John Doherty noted that they are $485,000 above the 3.50% with the COLA, bargaining, and Special Ed out of district placements. He noted it is pretty much a maintenance budget. The Town Manager noted the Town's budget is pretty much a maintenance budget except for the reorg that was needed. The 3.50% maintains and not more than that. He noted both the schools 'and town cannot do everything the community wants. He also noted that we are at a historic high for free cash, but free cash is not revenue. The Finance Committee guidance was to use up to $1.5 million in free cash. There are so many needs and we need that $1.5 million to maintain. It is up to FinCom to decide if we use more. Page 1 1 Board of Selectmen Minutes - January 29, 2014 - page 2 Daniel Ensminger noted that the Speaker Delio noted at the MMA Conference that they will hopefully be increasing state aid for didn't say how much. David Greenfield noted that the Town has good money managers and the tax payers are getting a lot for their money. He noted the budget was put together conservatively and this is reasonable. Ben Tafoya noted we are using $1.5 million because we are regenerating about the same amount at the end of the fiscal year. He also noted it would be appropriate to discuss using free cash for one-time items. Library Proiect The Town Manager noted that more money is needed for the Library project. He noted that the wording in Article 6 has changed. The Selectmen can decide to restrict to having debt exclusion or just go to Town Meeting for all or nothing. They can strike the wording that is underlined. The Town Manager noted that we need approval of Town Meeting to authorize debt and we need the approval of the voters to do debt exclusion. Town Meeting was elected to do what voters want. Library Trustees Chairman David Hutchinson introduced Architect Paul Viccica and Designer Chris Coios. Mr. Hutchinson reviewed the first floor plan and noted the ramp has been removed to give oversight of who_is entering and exiting the building. The lower level will have a new elevator. There are two major conference rooms and the upper floor is the children's room. He noted that the architects have been testing the building and code systems. The design is to adapt to becoming more digital over the years. There is water damage inside the walls. The eaves are showing signs of rot. There are hazardous materials and accessibility issues. The seismic code requires structural reinforcement. The MEP systems are worn/wearing out. Costs - The current proposal is $18.328 million. The Town approved $14.912 million so they need an additional $3.416 million. The direct construction costs have increased $2.4 million. Paul Viccica reviewed the construction costs indicating that $2.7 million is needed for the addition, $700K for the site work, $7 million for the renovation to bring it up to code, and $480K for handicap accessibility. Chris Coios noted the exterior of the building has a lot of water penetration. Finance Committee members Barry Berman and Karen Herrick joined the meeting and the Finance Committee was called to order. Daniel Ensminger questioned the $2.7 million increase in construction costs and Mr. Viccica noted that is for the exterior repair and accessibility. These are typical for a building that age but are fixable. Mr. Viccica noted that operating costs will be lowered due to new systems with technology, energy, and networking included. Daniel Ensminger asked about the hazardous waste and Mr. Coios noted there is lead paint, asbestos in the ceilings, and an asbestos roof. Bill Brown asked if there would be any change in cost if all the meeting rooms were on the first floor and the stacks were on the bottom. Mr. Coios noted they are trying to keep as much at ground level as possible. Bill Brown asked how much more per household this will cost and the Town Manager indicated about another $50 bringing it to $200. Page 1 2 Board of Selectmen Minutes - January 29, 2014 - page 3 Library Building Committee member Nancy Twomey noted the project is shaping up nicely. The initial numbers had very insufficient estimates. She noted there are always things that come up in renovations, this is just a bigger scale. She noted it is time to make this building a library. She also noted that a lot of brainpower is on the committee and they are very diligent. David Hutchinson noted we won't have the $5 million from the state if we choose the other options of doing the renovation only or a new building. He noted that a renovation only does not save money at $15 million. A new building is expensive at $23 million and has execution risks. He is requesting a Special Town Meeting to approve debt exclusion for an additional $3.5 million. Chuck Robinson asked how much of that was just discovered or overlooked. John Arena asked what fraction of the delta was hidden. David Hutchinson indicated he did not know. He did note that the furniture has been added-in fully funded. Chris Coios noted that the additional money is for the seismic updates; $400K just for plaster insulation in the attic - it is in disrepair and needs to be brought up to a higher level. The roof repair is $179K versus the original quote of $29K. They have also added in the spires on the roof. Daniel Ensminger asked if the state funding request was a percentage reimbursement and David Hutchinson indicated the plan was sent in and they gave us a fixed amount. Daniel Ensminger asked if we had gone in with an $18 million project what would we have received and Ruth Urell noted the state looks at the eligible costs and needs of the community. Daniel Ensminger asked if we could ask for more and Ruth Urell indicated we did ask but they said no. Chris Coios noted we would have to reapply for a new grant for the project and we would have to give back the money that we received. David Greenfield noted that the early estimates were negligent and we'll learn from this but we need to move forward. The Town Manager noted that we asked for a project that the community will be proud of and to be transparent. The quality of the information is as good as it will be. James Bonazoli noted he wasn't sure if we could go back to the well a second time and he indicated we need to make sure that nothing is being held back. Paul Viccica noted that the contingencies are at a level to cover a project like this if we go out to bid in July. Paul McNeice asked what are the next steps that might change the costs and Mr. Viccica noted that the next step is the design development but this is not a moving target and this should not add to the amount. Karl Weld asked what will be cut if the money doesn't get approved and David Hutchinson noted this project is not cutable. If the project is not done then it will cost $15 million to renovate and we will have to pay back the $5 million grant. David Greenfield noted that this conversation started when the building had serious problems and something has to be done. John Arena asked if we delayed one year what would the additional cost be and Mr. Viccica indicated 5% - 6%. Page 1 3 i Board of Selectmen Minutes - January 29, 2014 - page 4 Bill Brown noted that Town Meeting has to be made aware of the upcoming projects such as the early childhood school, the DPW Garage, Cemetery Garage, etc. David Greenfield noted that has been presented at each of the Town Meetings and we should keep putting it out there. Barry Berman noted that people knew about the Woburn Street School and that was taken off because the costs were too high. He feels a permanent Building Committee needs to be established with professionals. Chuck Robinson noted that the School Committee never went to Town Meeting with the Woburn Street School proposal. Bill Brown noted that he proposed a permanent Building Committee to the Charter Review Committee and they said no so if the Finance Committee wants one, they have to tell them. A neighbor to the Library asked if the voters say no, will the project be dead. David Hutchison indicated we will know after the Selectmen close the Warrant tonight. Daniel Ensminger suggested selling the Oakland Road property for $1 million and doing a co-located facility. The Town Manager reviewed the timeline for putting this on the ballot. He noted if the Selectmen close the Warrant and leave out the wording for debt exclusion in the Article, then Town Meeting can put it back in if they want it to go on the ballot. Ben Tafoya asked if the debt exclusion fails, could they hold another Town Meeting to do the project inside the debt exclusion and the Town Manager indicated we could. The consensus of the Board of Selectmen was to make the Article as broad as possible. A motion by Bonazoli seconded by Ensminger to have a Special Town Meeting on February 13, 2014 and remove the wording for a debt exclusion was approved by a vote of 4-0-0. It was agreed that there would be a meeting next Tuesday to discuss the financials. A motion by Arena seconded by Ensminger to adiourn the meeting at 9.52 p.m. was approved by a vote of 4-0-0. Res ull submitte ecretary Page 1 4