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HomeMy WebLinkAbout2016-11-23Minutes for November 23, 2016, adopted June 14, 2017 Town of Nantucket Capital Program Committee �Z www.nantucket - ma.gov Members: Christy Kickham (Chair), Peter McEachern (vice chair), Richard Hussey (Secretary),ui Ke,C Nat Lowell, Pete Kaizer, Stephen Welch v 17 MINUTES 0 `. Wednesday, November 23, 2016 4 Fairgrounds Road, Training Room — 8:00 am N r Called to order at 8:09 a.m. Staff: Brian Turbitt, Director Finance; Terry Norton, Town Minutes Taker Attending Members: Kickham, Hussey, Kelly, Lowell, Kaizer, Welch Absent Members: McEachern Late arrival: None Documents used: Copy of minutes for October 26, 2016, November 2, 2016, November 9, 2016, and November 16, 2016; Capital Improvement Plan 2018 thru 2027; capital project detail packets. APPROVE 1. 1. October 26, 2016 — Motion to Approve as amended. (made by: Welch) (seconded by: LoweTCarried unanimously 2. November 2, 2016 — Motion to Approve. (made by: Welch) (seconded by: Lowell)Carded unanimously 3. November 9, 2016 — Motion to Approve. (made by: Welch) (seconded by: Lowell)Carried unanimously 4. November 16, 2016 — Motion to Approve. (made by: Welch) (seconded by: Lowell)Carried unanimously 11. RECAP AND STATUS REVIEW OF • Discussion Kickham — One item to be discussed is the Finance Committee report. Asked for suggestions Kelly — Criteria should be applied in choosing projects to recommend: regulatory, operating deficiencies etc. Things that have a payback of five years or less or are related to a new program are some broad criteria that could be applied. Welch — He'd like to make sure we have a complete list of the capital projects. Turbitt — Finance has updated and completed the capital project list based on all changes; he has also reconciled the school and sewer. Welch — He had asked for out years for OIH and didn't get it; he asked for it once again. Also, he would like to see a debt service report. Asked for a Selectmen- approved copy of the Long - Term Capital Planning Financial Policies and Procedures, which included a list of conditions to use in consideration when prioritizing projects, specifically the part of that plan pertinent to this committee. While reviewing a project, he suggested looking at the ranking and give each a priority value; then meet with the department heads to discuss which criteria apply; at the end of the process, we'd have a record of which priorities are applicable and our assigned value for that Kelly — Town Administration is looking at the capital debt exclusion of $2.9M. Turbitt — The last two years have authorized borrowing on three items: Island -wide road maintenance, sidewalks, and Surfside area roads reconstruction. Noted that the Town is finishing a review of past capital projects to see which can be closed out and money reappropriated. The anticipation is Our Island Home (OIH) will be funded by debt exclusion. There is $6.6M in free cash this year. The rationale for road improvements and the sidewalk plan is it makes sense to consider financing due to being long -term, high -dollar -value projects. Page 1 of 4 Minutes for November 23, 2016, adopted June 14, 2017 Welch — Every proposed project meets six of the twelve criteria. We need to review as to how each project fits in. Kickham — The $4.2 from free cash, asked how it was figured. Turbitt — Take the whole number, look at funding five -year bills, fund one -time operating expenses, every five years you fund from free cash, and some FY2018 projects might be funded from free cash. He looks at the whole picture to figure out what makes sense to fit it in. We've had several years of healthy free cash to fund projects. There are potential proceeds from real estate sale and reappropriations; that is being confirmed. Kickham - In the future, suggesting submitting the criteria with the paperwork to the department heads so they will know that's how this board will look at the project. Welch — Having read through the policy procedures, CapCom has a wide scope of responsibility. He believes it is not objectionable for this board to request informati on in a form that is necessary to making an informed decision. He also feels information is needed in a more timely manner. Lowell — He understands the need for more details but feels that the small stuff, such as items that come up every year, could be separated from the larger one -time projects, such as the OIH new facility. Those large projects require more detailed consideration. Kelly — He wonders if all the projects can be done in FY2018; that should be a criterion for prioritization. Turbitt — Once money is appropriated, some projects are so multi- phased, they take more than twelve months to complete; also we can't tear up sidewalks between June and October. Kelly — Questions appropriating money that can't be spent in that fiscal year. Money to be spent in the fiscal year for which it was appropriated is a criterion prioritizing a project. Welch —The problem becomes having enough staff resources to break each project down to every aspect of every project to that detail to know whether or not a project will be completed in the year proposed and in the way anticipated. Turbitt — The one thing to keep in mind is the borrowing obligation; it wouldn't take away from other resources. Discussion a. Facilities Welch — In his opinion maintenance trumps any new building in any regard; he suggested facilities be approved subject to a footnote that the Finance Department advises the aggregation is acceptable. He suggests approval of all with the exception of the Tom Nevers playground equipment to be discussed and considered further. Kaizer — Should flag items that are required by law for compliance, such as the Fire Station renovation to add female quarters. Turbitt — He can tag projects that have compliance requisites. Discussion about the role of the FinCom member on this committee. b. Fire Department Lowell — He would recommend all three projects for approval. Hussey — He questions the `Sconset Fire Station Feasibility Study; would like to revisit that; $100,000 is a high figure. c. OIH Facility Kelly —There is a process in place to put the new building on the 2018 ATM. Suggests passing on this at this time. d. Police Department Lowell — The upgrade of dispatch equipment makes a lot of sense to him. Kelly — His concern is the cost for the upgrade of the dispatch equipment, $930,150. He would like to discuss this further. Welch — He will explain his findings at that time. He also has a line -item break down. Page 2 of 4 Minutes for November 23, 2016, adopted June 14, 2017 Turbitt — The choice came down to financing all of it out of free cash this year or lease it over three years; that would be a three -year commitment of spending free cash. In his mind it makes sense to pay it all out of free cash. Debt exclusion is an option; debt exclusion would not hit long- term borrowing because bans can be done for up to five years. e. Public Works Turbitt — The $200,000 is the full cost for the `Sconset Flagpole with $50,000 coming from Community Preservation Committee. The remainder would be plugged into free cash. Welch — Would like to know which of the larger pieces of equipment — loader, bucket truck with chipper, and grader — could be put off to next year. Discussion about the value of under -cover storage to facilitate the lifespan of vehicles. Kickham — He would like to hold off on the mowing equipment until such time as he knows it will be stored under cover and that it will be properly maintained. f. School Department Welch — He would like to see an updated campus site plan before making a recommendation. Kelly — He doesn't think there is a consensus for asking for the updated plan. Discussion about items to be reconsidered /revisited for recommendation versus just wanting additional information. g. Sewer Expansion Turbitt — This is going up for debt exclusion; it was approved at October's Special Town Meeting. h. Town Administration Consensus would recommend both for approval i. Transportation Lowell — He's okay with all the items, but the question is will all of it happen in FY2018. It's more about funding the item for when they will go to bid and plans will be developed. Turbitt — The recommendation to borrow allows the flexibility of when to proceed. Kelly — Suggests revisiting these. He would like to know how much of the $3.75M will be spent by the end of FY2018. Welch — He would like to revisit the Sidewalk Improvement Plan. Turbitt — He can only borrow what he reasonably expects to spend on the Sidewalk Improvement Plan. He has to outline how and when it will be spent. There might be an opportunity to push some out. j. Airport Enterprise Fund Discussion about this board's role in regards to Enterprise Funds. Hussey — How much of the $4M would be the Town's responsibility Turbitt — For three projects, $2.7M would come from other sources; the rest is internal through their own funding sources: retained earnings and fuel revolver etc. k. OIH Enterprise Fund Kickham — The whole thing needs to be revisited. Lowell — The kitchen is brand new, doesn't understand the reason for the kitchen renovation request. Kelly — It is for a new washing machine and the walk -in freezer. Welch — He wants to see a bigger picture in order make a good recommendation. Lowell — the future of the building is critical in making decisions: spending money on a building that will be repurposed is one thing; spending money on a building that will be torn down is another. 1. Sewer Enterprise Fund Welch — He would like to know the actual mileage of sewer lines in the Capacity /Maintenance/ Operations /Management (CMOM). He's looked at the cost other towns are paying for the work and frequency of they are doing. Page 3 of 4 Minutes for November 23, 2016, adopted June 14, 2017 Turbitt — Met with Mr. Grey; might be able to shift numbers around; this was put in as a place holder for Phase I to the ACO. There's a possibility it can be reduced to something more manageable and change how it'll be funded. Kaizer — Some things don't look mandatory for FY2018. Discussion about the $250,000 water main for the plant and housing. Turbitt — By the next meeting He will have Mr. Grey provide an in -depth explanation for request. Welch — Asked why spare parts inventory is include under capital; that should be operational. Turbitt — Had an internal discussion on that; it might be removed before the next meeting. M. `Sconset Water Company Welch — Wants to revisit the water main; it makes sense and is warranted but he needs more information. n. Solid Waste Enterprise Fund Welch — Asked if the out year for mining are accurate. Turbitt— Believes FY2018 and FY2019 are the final years for mining and are accurate in regards to the current plan. Kickham — Should note that the driving force here is compliance. o. Wannacomet Water Company Welch — He has the same request for this water main as for `Sconset. CAPCOM BUSINESS 1. Nonc V. DATE OF Wcdnesday, November 30, 2016, 8:00 a.m. at 4 Fairgrounds Road, Training Room Topic: Review any outstanding items /issues; begin preparation for final recommendations Adjourned at 10:13 a.m. Submitted by: Terry L. Norton Page 4 of 4