HomeMy WebLinkAbout2016-12-14Minutes for December 14, 2016, adopted June 14, 2017
Town of Nantucket
Capital Program Committee m -47
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Members: Christy Kickham (Chair), Peter McEachern (vice chair), Richard Hussey (Secretary), Jii rKe nC
Nat Lowell, Pete Kaizer, Stephen Welch C. A
MINUTES z r"11
Wednesday, December 14, 2016
4 Fairgrounds Road, Training Room — 8:00 am N
Called to order at 8:04 a.m.
Staff: Libby Gibson, Town Manager; Gregg Tivnan, Assistant Town Manager; Brian Turbitt,
Director Finance; Julia. Lindner, Financial Analyst; Terry Norton, Town Minutes Taker
Attending Members: Kickham, McEachern, Hussey, Kelly, Kaizer, Welch
Absent Members: Lowell
Late arrival: None
Documents used: Copy of Document of Recommendations for Finance Committee; spreadsheet provided
by Mr. McEachern
Discussion Kickham — He has a question on the Our Island Home (OIH) requests; he visited the facility.
Turbitt — He included photos of areas in need of repair. Those are included in the members'
packets.
Kickham — He was thinking the shingling could wait until the fate of the building is known.
Turbitt — It has been recommended that shingling come out of retained earnings. Authorizing
the allocation of retained earnings holds a funding source but doesn't obligate the work be done.
Kickham — In the next two to six years there will be a decision on the OIH facility.
Welch — To the extent it isn't required this year, he suggests shingling be revisited in an out year.
If air sealing is required, that should be singled out as a line item; it could be a quality of life issue
for residents, but he would want to know what the cost for air sealing would be or at least have a
general idea.
Kickham — Asked if there is the option to redesign the description to air infiltration mitigation.
Turbitt — Yes, if you want to redirect it to air sealing and want to allocate the $343,000 that can
be done. This issue will continue to exist even while the new building is under construction. The
dollar threshold would determine how it's done.
Welch — Asked if CapCom recommends $343,000 and found out that it would only cost
$100,000, is there a way to address that discrepancy, especially since the $343,000 is public
information.
Turbitt — The Town is not obligated to accept a bid; any and all bids can be rejected for any
reason. Noted that an architect would have to be retained to draw up the work before it can go
out to bid, even for shingling.
Kelly — He doesn't see any one strongly pushing this to be done.
Kickham - $343,000 for shingling seems very high.
Welch — Suggested recommending the air infiltration and that the Town accept the line item; he
would, however, like a better idea for the scope of work and cost. If we don't have time to do
that, suggested approving a number that is slightly less than half the $343,000. Noted there are
short-term resolutions to the air infiltration issue.
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Minutes for December 14, 2016, adopted June. 14, 2017
Kelly — He thinks the committee has all the information it is going to get and agrees with Mr.
Welch's suggestion
Action Motion to approve $150,000 for air infiltration mitigation. (made by: Hussey) (seconded by.
Welch) Carried unanimously
Department of Public Works (DPW) Bucket truck and chipper
Kickham — There had been discussion about seeing the truck's log book.
McEachemn — The log book should be about the operation of the equipment: hours, condition,
safety, who shuts it off, etc; these are OSHA requirements.
Gibson — The log book records where they worked on trees and what they did. Municipalities are
not required to follow OSHA rules.
McEachem — That is all the more reason he is does not support the purchase of a new bucket
truck and chipper. This is a job that could be outsourced and be relieved of the responsibility of
that potentially dangerous piece of equipment.
Gibson — Noted that the Madaket power -line incident was the first accident in twenty years
involving the bucket truck and feels it unfair to indicate it has not be operated safely. The request
to see the log book is nothing this board has ever requested in the past If the Town were to
privatize tree trimming work, that would require collective bargaining as it involves a change in
working conditions for the operator; that could not be completed by July 1, 2017. Gathering the
level of documentation and information this committee wants to see will take time.
Welch — If we are going to talk privatizing, we need the Town operating costs and the cost for
contracting the work out for comparison. Pointed out that if the work is outsourced, the Town
loses the flexibility of having the equipment on site and the ability of later selling that asset The
decision to privatize needs to be very carefully considered.
Discussion on the motion for the bucket truck.
Gibson — The current truck is old and rusty, but runs, though it doesn't have the safety features
of newer trucks. If this isn't voted through, the truck would continue to be used, though less and
less. That means tree work isn't going to get done or we will have to figure out how it would be
done; that entails bargaining. The Town has used Bartlett Tree Service in addition to the truck.
Kickham — He would like to know that the safety standards for the equipment are being
followed and other information that would inform his decision.
Hussey — He would vote to approve it because outsourcing unlikely and this is unsafe and out-
dated equipment.
Welch — Unlike other towns, we can't call in back up in the event of an emergency; if we can
afford having that asset there, it is very valuable. He would vote to approve it
McEachem — Noted that the existing truck could be of continued use by removing the boom
and using it to transport the chipper material. He would approve pieces of equipment to go onto
the truck with attachments.
Action Motion to remove the bucket truck from FY2018 recommendation. (made by: Kelly) (seconded
by: McEachem) Not Carried with four opposed.
McEachem — Suggested holding off on the new truck and asking DPW to come back with
vacuum attachments for the current truck.
Kelly — Stated he is concerned about any discussion of privatizing as it involves collective
bargaining and that should not be brought up. Stated the committee didn't get data on the usage
so he doesn't know how the committee can include the need for the truck without that
information.
Kickham — Asked if the DPW would start logging the usage of the truck and equipment for
future information.
Gibson — She has made notes to discuss that with the DPW.
Welch — He believes it is in CapCom purview to discuss the finances of privatizing. Asked about
the legality of talking about privatizing. He questions his ability to make a decision about the
purchasing a piece equipment if he can't compare the financials of privatization.
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Minutes for December 14, 2016, adopted June 14, 2017
Gibson — CapCom could broadly suggest privatizing is a measure the Town should look into.
That would enter the CapCom into a whole new area with deciding it needs to examine
operational issues and costs.
McEachern — He feels strongly that the committee should ask how equipment is used; it goes
into the operating budget. That means asking more questions of Department Heads; they might
look harder into using the operating budget. The memo he put out came from the Town policy
and procedures; we don't have to ask questions if we are given the information that comes from a
credible source.
Welch — Based on financial policy and procedures; there is a mandate we anticipate the operating
budget impact that result from capital projects. It goes on to detail that CapCom do a cost -
benefit analysis, life -cycle costs, and cash -flor modeling. He is not suggesting the committee
micro- manage departments and have privatized bids on every project. He feels the committee has
a responsibility to anticipate the cost of operating versus out sourcing generally.
`Sconset Flagpole Monument
Hussey — He had asked for information about why the insurance did not pay damages.
Gibson — She is still waiting to hear from another department on that.
Kickham —We have approved this; we just wanted the insurance informati on.
Welch — Suggested a comment that notes the Town is pursuing the insurance reimbursement.
Other questions and comments
Hussey — He had asked for a chart of all anticipated new municipal buildings at today's costs.
Welch — He had asked for OIH capital requests for the past four years.
Gibson — Reviewed difficulties in putting together the municipal building chart. She will get a list
of all municipal buildings; providing assessed value is not always relevant to what is being put into
repairs or renovation of a structure.
McEachern — Knowing the assessed value helps understand at what point triggers are activated.
Kickham — There was a $15M ticket that is now $40M for the new OIH facility. Asked what
happened.
Gibson — The $15M was an old number; as the Town got deeper into the process, State
requirements were added and that brought the cost up.
Kickham — He had asked about the $50,000 for the ambulance.
Turbitt — This is for equipment and supplies required so the ambulance will meet Advanced Life
Support requirements. Once supplies are in place, their replacement would come out of the
operational budget.
Discussion McEachern — Should add a list of funding sources. He doesn't think thoughts about going
forward should be included in the committee report. If we summarize and fund, that's good.
Turbitt — He can have the recommendation packet together with the funding sources by close of
business today; then the presentation is complete, he will send it to the Finance Committee.
Kickham — In regards to Mr. McEachern's suggestion, that is a discussion for a future meeting.
Welch — Issues with the capital plan have been correctly identified as well as issues the committee
needs to address. However, he feels adding those flaws this budget season creates more questions
than answers because he doesn't think the committee will have time to vet flaws or address
questions to improve.
Kelly — He thinks the ideas for this committee going forward should be included in the
presentation to Finance Committee.
McEachern — Presented the Finance Committee point of view on what they would want to
know.
Further discussion on whether or not Mr. McEachern's suggestion should be included in this
recommendation and what should be discussed at a follow -up meeting.
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Minutes for December 14, 2016, adopted June 14, 2017
Kaizer — Suggested including the initial list of capital projects so that the Finance Committee
could see what projects are not going forward.
Kickham — Asked about aggregating.
Turbitt — In the report, the three existing schools were aggregated. There was some with the
airport.
Welch — Thinks the report should reflect that some projects under $50,000 were aggregated. It's
important that the Finance Committee know the CapCom reviewed the requests. Some numbers
in parentheses aren't red.
Kaizer — Offered to format the report. Asked if Mr. McEachern's spreadsheet is being included
in the report.
Consensus is okay with including the spreadsheet:.
Kaizer — Asked if there should be any comments on the Madaket /Warrens Landing $80M sewer.
Turbitt — It is not part of the capital request. It should be taken out.
111. DATE OF
Monday, December 19, 2016, 4:00 p.m. 4 Fairgrounds Road, Conference Room
Topic: Present Committee Recommendations for FY2018 Capital Projects to Finance Committee
Discussion about the follow -up meeting date: Wednesday, February 8, 8:00 a.m.
Adjourned at 9:52 a.m.
Submitted by:
Terry L. Norton
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