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HomeMy WebLinkAbout1993-11-29 Capital Improvements Advisory MinutesI/ Capital Improvements Advisory Subcommittee Minutes to Meeting November 29, 1993 Members present: Jim Keigley, George Thompson, Victor Petri, Mark Huber, Pill Murphy Also present: Town Manager Peter Hechenbleikner The meeting was called to order by Jim Keigley at 7:52pm, The Minutes of November 8, 1993 were approved on a motion by George Thompson which was seconded by Victor Petri. Jim Keigley then announced that the meeting agenda contained one item: presentation by Peter Hechenbleikner of the preliminary FY95 capital plan. Peter began the presentation by stating that the summary description from FY94 was basically relevant in FY95. He passed out a copy of the FY94 summary and the FY94 capital plan which was approved by town meeting. Attached was his preliminary capital plan covering the years FY95-FY04. In his explanation, Peter made the following points: 1) Due to uncertainty over the long term impact of Educational Reform on the municipal budget, he was basing the FY95 budget on similar revenues as FY94. Specifically, no free cash would be used and approximately $500k of the available levy limit would not be appropriated. 2) Bond Anticipation Notes for school projects approved at the last Town Meeting were assumed to carry an interest rate of 4%. Peter pointed out that this was a conservative estimate since current BANS carried a rate of approximately 2.6%3) The detailed schedule highlighting budget, proposed capital spending, and proposed projects is basically accurate with the exception of payment schedules for proposed projects. He stated that information was still coming in, and used the Parker Middle School as an example. He had just changed the previously projected $5M expenditure to the current $11M estimate from the School Building Committee. Peter took the opportunity to suggest that the CIAS and the SBC hold a joint meeting to discuss the Parker Middle School project. The committee felt that the idea had merit, but that the meeting should be held after a preliminary report was submitted to FinCom, primarily because the Parker project will not go before town meeting until the FY97 budget is discussed. 4) Peter noted that the assumption of $1M for renovations on the Police Station was a very rough estimate. He will propose that an architect be commissioned ' from FY95's operating budget. Mark asked whether there would be any Federal or State money available for offsetting the cost of the project. Peter noted that he would vigorously pursue appropriate grants, but the current outlook for grant money is not promising. At the conclusion of Peter's presentation, Bill Murphy asked whether Capital improvements fell above the School Reform Line, or below it. Peter explained that by definition, bonded projects (new schools, roof repairs, etc.) fell below the line. He also explained that clear definition on maintenance type items does not exist. After some discussion, the sense of the committee was that the town should take an aggressive stance in placing maintenance type items above the line. There was concern voiced over setting a precedent now that the town will regret later. Jim Keigley asked about road resurfacing, and why the expenditures were scheduled to be in outlying years. Peter explained that the rule of thumb he was using (6.53% of operating budget be allocated towards capital items) did not allow for resurfacing expenditures from the town's budget in the short term. His plan calls for spending only the funds which are available through Chapter 90, or through other grants for the next two years. Peter also noted that there is currently a sidewalk inventory taking place in town. The results of this inventory will highlight the priorities when sidewalk funds become available. Peter than explained the policy which the town uses to choose concrete or bitumunious materials for sidewalks. At the conclusion of the discussion of FY95 capital plans, Mark Huber offered to merge the spreadsheets from FY94 (done in the old format) with the FY95 data. There was a discussion in which Peter outlined concerns over not showing the source of funding in the context of the overall capital plan. The professional staff has secured $3M in roadwork grants which Reading will receive in the next several years. He felt that it was important for members of the community to understand just how important these grants are to Reading's roadway maintenance efforts. After some discussion, the committee agreed to meet on December 8th at 7:15pm. If necessary, the committee will also meet on December 14 and. 22. At 9:23pm, Mark Huber made a motion for adjournment, which was seconded by Victor Petri. The motion carried: 5-0-0. Respectfully submitted, William C. Murphy