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HomeMy WebLinkAbout2017-6-26Minutes for June 28, 2017, adopted Aug. 2 Town of Nantucket Capital Program Committee www.nantucket- ma.gov Members: Christy Kickham (Chair), Peter McEachern (vice chair), Richard Hussey (SecretarVr9Jasorr1 Bridges, Nat Lowell, Pete Kaizer, Stephen Welch MINUTES CS �' y Wednesday, une 28, 2017 C 4 Fairgrounds Road, Training Room - 8:00 am N C7 : ' -o r -;- = m :alled to order at 8:06 a.m. and Announcements made. Staff: Libby Gibson, Town Manager; Brian Turbitt, Director Finance; Julia LindneWFinxacial Analyst; Terry Norton, Town Minutes Taker lttending Members: Kickham, Hussey, Bridges, Kaizer, Welch lbsent Members: McEachern, Lowell 1,ate arrival: None I)ocuments used: Copy of minutes for June 14 & 21, 2017; Draft Capital Request Form; Wannacomet Water Company (WWCo) request for water main replacement APPROVE 1. 1. June 14, 2017: Motion to Approve. (made by: Hussey) (seconded by: Bridges) Carried unanimously 2. _June 21, 2017: Motion to Approve. (made by: Hussey) (seconded by: Bridges) Carried unanimously • • • • • Discussion Welch - He and Mr. Turbitt revised the Capital Project Request Form based on previous comments and performed a dry run to generate a sample WWCo capital request for replacing water mains. Anything "greyed" out won't be seen by the department heads; the first phase of using this form will all be point and click. Gibson - A worksheet would help with projects that involve design, construction, OPM, and permitting. Noted that in the cost of projects, the Department Head needs to include things like police details. Travel costs are part of the bidding process. Turitt - Stated that the Plan -It software will be used during the construction of an access database, connected to this new form. This won't be in effect until next year. Kaizer - "Project Interdependencies" under Project Introduction might not be clear, if it is cost or just that other departments are involved. Kickham - We need to know what inter - dependencies' information is relative to CapCom for our review of a project and if it is a detail the committee might hold against the project. Welch - Suggested it be boiled down to projects involving costs to be borne by other departments i.e., road improvements might involve another department. Gibson - Utilities should be added to get people to thinking about it even though the utilin company bears that cost. Hussey - Suggested adding in parens "if impact to costs" if there are related costs. Welch - Classification: Description would be mandatory to process the form. Images attached would be a separate box and a scrolling field for additional information. Lindner - Asked if there was consideration for a Location field so that it can be a search criteria. Gibson - That would lend itself to some projects but not to others. Welch - Suggested a drop down with Specific Address, Island Wide, Department Address; he'll make a note to think about it. This might be a later iteration. Kickham - On the existing from, there is a project number; asked if that is in the new form. Page 1 of 3 Minutes fox June 28, 2017, adopted Aug. 2 Welch — Any new projects will be part of the database. Explained the back - filling for the database. Department Heads will fill in from a certain date forward with Finance inputting data on open projects going back three years. To the right under CIP Status is "alternative action—,, explain:" should go down under Recommended Funding Source. Recommended Funding Source would be done by Finance to ascertain where the funding will come from. He will add under Reappropriations and another checkable field for to track whether it is other funds or specific to the project. Turbitt — Prior Borrowing will go away. You can't reappropriate funds into a different project; you can only transfer permanently borrowed unused funds to a project similar in years and type; we're down to very few projects where we can do that. Prior Articles funded by free cash or tax rate can be reallocated as necessary. Free cash has no limitation for whit it can be reallocated. Finance would make the recommendation on the funding source, not the department head. Welch — Effects of Funding, this is also "below the line" so department heads don't get it. Turbitt — Would like to add " /Retained Earnings" to Free Cash because that's what it's called when certified for an Enterprise Fund. Under Borrowing: can't do a debt exclusion for an Enterprise Fund; suggested adding Enterprise Fund under Borrowing because a project is funded by user rate and fees. Asked that "2' /a exclusion" be changed to Debt Exclusion and change "2' /2" to Levy Limit. Kaizer — Under Borrowing, asked if Borrowing is checked as well as one of the two options. Welch — Yes. Effects of Funding: this presents a working notion of how the project will affect the bottom line for taxes and /or rate payers. Turbitt — We need to look at the potential impact of the project on the tax; because to do "taxes retired not retired ", Finance must calculate what the entire budget is going be to be able to predict the tax rate; we start that process long before getting to bottom line budgetary number for the General Fund operating budget. He feels the committee would be better served to have an analysis what the approved project did to the tax rate after we set it all; there are other moving parts and metrics. Welch — The next step is evaluation and prioritizing. He'd like to finish up the proposed procedure and fmalize with a dry run in one meeting. CAPCOM BUSINESS 1. Set the next meeting date 2. Committee Reports a. None V. DATE OF Wednesday, July 12, 2017, 8:00 a.m. Training Room kdjourned at 9:43 a.m. Submitted by: ferry L. Norton Page 3 of 3