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HomeMy WebLinkAbout2004-05-03 Finance Committee MinutesRECEI VED READING, MASS. Finance Committee Meeting May 3, 2004 1004 JUL -2 P 12. 4 S The meeting convened at 5:40 p.m. in the RMHS Guidance Suite, 62 Oakland Road, Reading, Massachusetts. This was a joint meeting of the Finance Committee and the School Committee. Present from the Finance Committee were Chairman Jim Francis, Andrew Grimes, Paul Bolger, Richard McDonald, Catherine Martin, and from the School Committee Chairman Pete Dahl, Vice Chairman Carl McFadden, Lisa Gibbs, Rob Spadafora, Elaine Webb (John Carpenter arrived late), Superintendent of Schools Pat Schettini, Town Manager Peter Hechenbleilmer, A13 representative Scott Dunlop, Flansburgh representative Robert Byrd and resident Jacqui Mandell. The School Committee wanted to wait a few minutes until John Carpenter arrived. The Town Manager presented to the School Committee action for this evening's Town Meeting. The action would request talking Article 4 off the table, making a minor amendment to the Capital Improvements Program, retabling Article 13, and noting that there was a typographical error on the dollar amount on Article 12 - the MWRA debt authorization. On motion by Martin seconded by Grimes the Finance Committee voted to reconsider Article 4 by a vote of 5-0-0. The Town Manager explained that the Capital Improvements Program had $200,000 for inflow and infiltration to be paid for from the enterprise program. The change is to increase the amount to $209,400 in FY 2004 from enterprise debt. On motion by Grimes seconded by Martin, the Finance Committee voted to recommend the revised Capital Improvements Program by a vote of 5-0-0. The Finance Committee agreed that the transposition of numbers in the originally voted motion on Article 12 was immaterial ($500) and could be corrected as part of the motion. John Carpenter arrived and Scott Dunlop from A13 reviewed the bids received for the Barrows School project. The low bid was $6,104,599. It was a competitive bidding climate. The low bidder is certified by DCAM up to $8 million for a single project. This is the first project of this size that this contractor will have done. A13 is still checking references. Their experience, as well as Flansburgh's, indicates that often a contractor who is trying to expand their ability to do business does a better job than some of the larger contractors because they are trying to increase their certification level from DCAM. In response to a question, it was noted that going to the next lowest bidder would probably create a challenge from the low bidder. In addition, the next lowest bidder is in the same situation of the low bidder in terms of this being their first larger proj ect. Scott Dunlop then reviewed the project budgets for the new elementary school and for the Barrows School project. On the new elementary school project, he noted that the only tecluiology included in the budget is $60,000 for the phone system. Normally, the $105,000 total technology budget would be about $280,000 higher. It was noted that Finance Committee Meeting - May 3, 2004 - Page 2 there may. be some remaining money from the contingency that can be used for technology when the project comes closer to completion. The project budget as presented indicates a "surplus" of $634,000 in the debt authorization for that project. On the Barrows project, there is no money in the budget for furniture and equipment or for technology. The budgets should be approximately the same for furniture and equipment and technology as for a new school. However, because it is an existing school, reuse of technology and furniture can be reduced by 50%. The project budget carries a contingency of 5.7% for construction contingency. This is a little bit "light" they prefer to have a percent. With the assumptions in this budget, the total budget will be $7,734,153.68. The total amount approved is $7.1 million. Transferring $634,000 from the new elementary school debt authorization to the Barrows School debt authorization will close this gap. In response to a question by Jacqui Mandell, Scott Dunlop noted that the Barrows School project is well below the per square foot cost that would be authorized by the State. There was discussion about future funding for technology and furniture and equipment through the Town's Capital Improvements Program. The Town Manager suggested that if, when the projects are completed and there is not adequate contingency to cover these expenses, the Town might want to consider increasing the debt authorization as appropriate and thereby letting the SBA Program pay for 2/3 of the cost. If it is funded strictly by the Town, then the Town will pay 100% of the cost. This is a decision that can be made once the projects are further along probably at the next Annual Town Meeting and we know exactly how much additional funds might be needed, if any. The Town Manager noted that the budget for the Barrows School project does not include a telephone system. He also noted that the Town and the School Department have worked together to hire a consultant who has developed a technology master plan. It may be that through savings in the Centrex System over the next several years, a lease purchase could be executed for the telephones for the new school and/or the Barrows School, and the cost paid through savings in the annual phone bills. The Town Manager noted that the new school project did not include funding for a playground. He suggested that through contigency or otherwise, if monies could be made available, the Town will work to create a playground using our standard equipment manufacturer. He asked that the contractor, as part of their work, grade the area appropriately for a playground. On motion by McDonald seconded by Martin, the Finance Committee voted to recommend to Town Meeting under Article 13 the rescission of $634,000 of debt for the new school project, and the increase of debt for the Barrows School project in the amount of $634,000 The motion was approved by a vote of 5-0-0. The Finance Committee will cancel their meeting scheduled for Wednesday evening. Finance Committee Meeting- May 3, 2004 - Page 3 On motion by Martin seconded by McDonald, the Finance Committee voted to adjourn their meeting of May 3, 2004 at 6:30 p.m. by a vote of 5-0-0. Respectfully submitted, Sec et . W."-