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HomeMy WebLinkAbout2013-3-11Minutes for Much 11, 2013, adopted April 23 Town of Nantucket Finance Committee www.namucket- ma.Rov ® o Committee Members: Matthew Mulcahy (Chart), Tim Soverino (Vice-chair), John sty Kickham, Clifford Williams James Kelly Matt Fee David Worth, Julia Lin r 9 9 MINUTES G n Monday, March 11, 2013 art, 4 Fairgrounds Road, Community Room — 4:00 p.m. � 9 L 0 a Called to order at 4:00 p.m. jk Staff in attendance: Libby Gibson, Town Manager; Irene Larivee, Finance Directoi�'rreg Tivnan; Assistant Town Manager; Martin Anguelov, Budget Analyst; Ai rev�orce, Director Planning and Land Use Services; William Pitman, Chief of Poliva Tom Rafter, Manager Nantucket Memorial Airport; Mark McDougall, Chief antucket Fire Department; Kara Buzanoski, Director Department of Public Works; Ed Maxwell, Deputy Fire Chief; Terry Norton, Town Minutes Taker Attending Members: Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Absent Members: Lindner Late Arrivals: None Early Departures: Tiffany 5:44 p.m. Public: Rick Atherton, Board of Selectmen (BOS); Patty Roggeveen, Chair BOS; Allen Reinhard, Nantucket Islands Land Bank Documents -r Copies t. of -r I. PI BLIC COMMENTS —ANY MEMBER 01' 1111( PUBLIC MAY ADDRESS COMMITTEE ATTHISTIME 1. February 7, 2013 — Motion to Approve. (Fee) seconded. Carried unanimously 2. February 11, 2013 — Motion to Approve. (Tiffany) seconded. Carried 6 -0/Fee abstain 3. February 12, 2013 — Motion to Approve. Tiffany) seconded. Carried 6 -0/Fee abstain 4. February 14, 2013 — Motion to Approve. (Williams) seconded. Carried unanimously 5. February 19, 2013 — Motion to Approve. (Tiffany) seconded. Carried unanimously 6. February 21, 2013 — Motion to Approve. (Fee) seconded. Carried unanimously BE COMMITTEE REPORTS/COMMENTS 1. Audit Committee: Mulcahy — interview process of Auditor firms is complete. 1. Article 2 - Appropriation — Unpaid Bills: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion None Action Motion to Adopt. (Tiffany) seconded. Carried unanimously Page I of 8 Minutes for March 11, 2013, adopted April 23 2. Article 3 - Appropriation — Prior year Articles: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion None Action Motion to Adopt both the article and the comment. (Kelly) seconded. Carried unanimously 3. Article 6 - Fiscal Year 2013 General Fund Budget Transfers: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Williams — Asked about salaries & expenses. Pittman — To fill vacancies, replace prisoner transport van, purchase snow removal equipment for PSF, and replace Resource Officer's vehicle. Discussion about whether or the Police Department went through the capital project approval protocol. Action Motion to Adopt. (Tiffany) seconded. Carried unanimously 4. Article 8 - Appropriation: Fiscal Year 2014 General Fund Operating Budget: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Gibson — Reviewed a correction from the schools. Kelly — Proposes a comment talking about the thought process behind the motion. Action Motion to Adopt. (Kelly) seconded. Carried 6 -0 5. Article 9 - Appropriation — Health and Human Services: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Fee, Worth Recused Kelly Sponsor BOS Discussion Mulcahy — BOS moved to reduce Nantucket Cottage Hospital Social Services. Kickham — Explained the Contract Review Committee reasons for the reduction in Nantucket Cottage Hospital Social Services allocation. Action Motion to Adopt. (Tiffany) seconded. Carried unanimously Page 2 of 8 Minutes for March 11, 2013, adopted April 23 6. Article 10 - Appropriation— General Fund Capital Expenditures: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Gibson — Article 10, numbers did not change, just the format. Discussion about the $600,000 for construction plans for the new fire station. Some committee members feel it seems to be a high percentage for a municipal project. Much depends on the final plans and the actual construction bid. Sale of the land hopefully will help off -set the cost of the new facility. Worth — Looking at the figure and stripping out extraneous, asked if to get to the point where there are design specs to take to Town Meeting, the fee is $476,000. Stated that the amount for the Project Manager is immaterial as the Town is not to the point of construction. The Town wants an architect to do a set of plans that are suitable to bid so that at next Town Meeting voters can approve the expenditure for the construction of the new fire station. $476,000 plus the add -ins for structural review, legal counsel, insurance, and advertising fees is the amount needed to get to that point. The project manager is not necessary during the design phase. McDougall — During the design phase, would have to have someone who fully understands the text of the engineers. Don't know if that could an appointed position of someone within the Town regards to the actual designing of the plans: electrical, plumbing, etc. Worth — The real number is $600,000 less $50,000. There will probably be a building committee. McDougall — There might be a Citizen's Advisory Board that the BOS would set up and have in place. Agreed it would be great if there were some other way to knock $50,000 off by having a qualified person as the OPM during the design phase. Kelly — The $600,000 is a sub -set of the $1,090,000. The $476,000 is a portion of the $750,000; and the $50,000 is the third -party review. Stated that gives him more confidence that the $600,000 is what is needed to get into position for a construction RFP. Tiffany — These numbers are based on the drawings from the original effort to build the Public Safety Facility (PSF) including a new fun station. McDougall — Those are general numbers are based on $380 per square foot; but the plans did not include details. Tiffany — Asked why put out the expense for construction drawings if there is no guarantee that the voters will approve it at Town Meeting. Roggeveen — Explained the BOS point of view for approving the appropriation. McDougall — Explained that the building and construction cost are based on current market value per square feet for municipal buildings. This is not a set bid price. Worth — The proposed is almost an 85 percent increase in size for the fire station and would increase the PSF by 50 percent. Pittman — Reviewed the history and thought process that led to the construction of the PSF which originally included a fire station. The original project that included the fire station was not construction ready; those plans came after the fire station was removed from the original plans. Soverino — Stated his opinion that the Town is at the point where it should look at staging resources on the north side of Town due to increased traffic congestion. Also pointed out that this project did not go through Capital Program Committee review process. McDougall — Concern right now is to get the facilities and personnel up to par before opening a second facility. Page 3 of 8 Minutes for March 11, 2013, adopted April 23 Discussion Fee — Stated he would be more comfortable with $200K, concerned about the psychology of continued previous investment, and asked what $13M does to the debt and debt ratio. Larivee — In response to the question about debt, would forward the information to the committee members. Kelly — Believes that the committee should be 100 percent behind this if it is going to go forward. The committee needs to resolve its questions about a0 aspects of this article. Worth — Asked about the shelving request for $45,000. Gibson — Originally, FinCom was not ready to approve it as a reserve fund transfer and suggested including it in this article. Discussion about why the idea of doing a reserve fund transfer was turned down. Gibson — Stated she advanced it as part of Article 10 as a courtesy. Expressed the opinion that this is not a mandatory expenditure. The $45,000 is associated with moving the shelving from the Town Clerk's old vaults to the new vault. Tiffany — Sounds like this is not a dire need. If it becomes so in the future, the Town can ask for a reserve fund transfer. Mulcahy — The restrooms. Gibson — None of the restrooms in the Town Building me handicapped (I -I/C) accessible; according to the State, since the building houses state offices, the restrooms are supposed to be I-UC accessible. Do not have a fmal number on the renovation costs; it would have to be a technical amendment. Discussion about a comment. Fee to write it up. Action Motion to Reduce Article 10 by $600,000 and remove the fire station and shelving. ( Soverino) seconded. Carried 5- 1/Kickham opposed; Kelly abstain. 7. Article 11 - Appropriation — Enterprise Funds Operations: Sitting Mulcahy, Tiffany, Kickham, Williams, Kelly, Fee Recused Worth, Soverino Sponsor BOS for the various departments Discussion Discussion of comment crafted by Town Counsel. Action Motion to Adopt. (Williams) seconded. Carried unanimously Page 4 of 8 Minutes for March 11, 2013, adopted April 23 8. Article 12 - Appropriation — Enterprise Funds Capital Expenditures: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None _ Sponsor BOS for the various departments Discussion Gibson — This was changed to put in the same format as Article 10. Discussion after motion to adopt was carried. Soverino — Asked why the professional services for Storm Water Mapping was being charged to the sewer account as opposed to the general fund. Buzanoski — Originally it was part of the infiltration/inflow project. Larivee — This cleans up the accounting by putting the funds back into the retained earnings; it is already part of the retained earnings. It is not re- borrowing; it is not going to add to the debt service. Soverino — Stated the belief that storm water is a cost that should be shared by all tax- payers, not just those on sewer. Soverino — Stated he would prefer to see this paid for out of the General Fund instead of the Sewer Fund; but would not want to be the only one to reconsider the vote to adopt. Mulcahy — Asked Mr. Soverino if he would like to make a motion to reconsider. Discussion after vote to reconsider. Worth — It should be paid for out of the Sewer Fund if it is designed to reduce storm water going into the sewer system. If it is for infiltration in flow, it goes into the sewer system and would have a direct bearing on the loads going into the system. Soverino — Would agree unless this is a separate piping system for storm water drainage throughout the Town. It is hard to know from looking at the article. Buzanoski — Would have to do some research to get that information. Soverino — I &I is for when pipes leak and water rushes into the sewer. Storm Water is typically a separate system. Asked that it be held for Ms Buzanoski to come back with that information. Action Motion to Adopt. (Kelly) seconded. Carried unanimously Motion to Reconsider the vote on Article 12. (Soverino) seconded. Carried unanimously Held for further information 9. Article 13 - Enterprise Funds — Fiscal Year 2013 Budget Transfers: Sitting Mulcahy, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused Soverino Sponsor BOS Discussion None Action Motion to Adopt. (Fee) seconded. Carried unanimously 10. Article 19 - Rescind Unused Borrowing Authority: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Larivee — This is a cleanup of 15 years of authorization. The projects are done or not continuing and the amount refunded. There was about $52M in authorized funds with $29M unused. Worth — Asked what the intended is for the $29M: to retire or re- appropriate. Larivee — To retire the authorization. Discussion about the comment. Action Motion to Adopt. (Fee) seconded. Carried unanimously Page 5 of 8 Minutes for March 11, 2013, adopted April 23 11. Article 21 - Appropriation — Collective Bargaining Agreement/Fire: Sitting Mulcahy, Soverino, Tiffany, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Tiffany — For the record, wants FinCom to understand what they we looking at. Reviewed the 2010 -2012 total costs was a 5.8 increase per year for the fire department. This agreement is a 2.35 percent increase per year. For the bargaining objective, the rate needs to improve more as 2.35 percent increases are not sustainable. Fee — Feels this motion needs a comment and what Mr. Tiffany said makes sense as a good comment. Action Motion to Adopt. (Kelly) seconded. Carried unanimously 12. Article 29 - Appropriation — Other Post - Employment Benefits Trust Fund: Sitting Mulcahy, Soverino, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Gibson — There is no BOS recommendation on this article. Town Administration recommends $500,000. The BOS meets March 13 and would make their recommendation at that time. Discussion about FinCom possibly approving a different amount. Kickham — FinCom needs to step up to the plate and make a decision on this. Would be willing to support the $500,000. Discussion on the motion. Worth — If this is funded at $500,000, asked if the contribution would be funded at the same amount same next year. Gibson — Stated the belief that would not happen. Unlikely to be able to fund $500,000 a year. Town Administration would hope something would be put into the fund annually. Need a policy for this. Roggeveen — BOS discussion is about the merits of doing this and what would happen in the future, because once the money goes in, it can't be used for other purposes. Atherton — Stated that the Town wants to be set up to manage the money and have a process so as to know who is in charge and how it will work; do not have to write the check until the Town knows what it's doing. We happen to have the money so there is a good reason to do this, but the Town is not ready to adopt a policy to do this every year. Kelly — Do not have a methodology for knowing what the risks are or knowing what the amounts would be. Concerned what happens if there is a federal solution to the problem or what happens to the money if towns appropriate it. Kickham — This is a fair amount to start the process; and won't know many of the answers until going through the process. Atherton — The money goes from the Town of Nantucket to the process which provides payment for the medical benefits. This money is going to end up off the balance sheet. It is not unlike putting money into a stabilization fund; but once it is in the trust, it cannot beused for other purposes. Could start with $200,000 for a couple of years, which would give the Town time to look at the process. Page 6 of 8 Minutes for March 11, 2013, adopted April 23 Discussion Discussion about Soverino's amendment to the motion. Soverino explained his amendment. continued Atherton — If the money were put in a stabilization fund, Town Meeting could vote to take it out of the stabilization fund and put it in a trust fund. Needs to be enough to make a difference. Fee — Should be a higher amount, $100,000 isn't significant enough. Asked about it going to the stabilization fund. Atherton — Could vote to take no action and move the money to the stabilization fund. Soverino — Is open to a larger amount. Discussion about the friendly amendment for $250,000. Soverino — Asked Ms Roggeveen if this motion was something the BOS could embrace. Roggeveen — Yes. Atherton — Suggested placing in a separate trust fund but need to know who will manage that trust fund. That would provide time to put a policy with parameters in place before the check is written. Larivee — This is not an authorization of transfer of funds. Can put in a comment that it is to provide time to put a policy in place. Action Motion to Adopt as $500,000. (Soverino) seconded. Motion to amend down to $100,000. (Soverino) seconded. Friendly amendment to make it $250,000. ( Kickham) seconded. Friendly amendment to the friendly amendment that $250,000 be transferred to the OPEB fund per BOS recommendation per regulations. (Soverino) Carried Unanimously Motion to Adopt the appropriation of $250,000 to the OPEB Trust Fund upon language to follow the procedures and development of the follow BOS recommendations. (Soverino) seconded. Carried unanimously 13. Article 41 — Wind Turbine Moratorium: Sitting Mulcahy, Soverino, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor Bruce Mandel et al Discussion Review draft motion. Action Motion to Adopt. (Williams) seconded. Carried unanimously 14. Article - 46 Bylaw Amendment — CommitteesNisitor Services and Information Advisory Committee Sitting Mulcahy, Soverino, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Gibson — Amendment on the FinCom motion. Action Motion to Adopt as amended. (Kelly) seconded. Carried unanimously 15. Article 47 - Bylaw — Civil Fingerprinting Authorization Sitting Mulcahy, Soverino, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor BOS Discussion Gibson — Do not have an answer for Town Counsel about inclusion of Selectmen comments. Soverino — Asked why one set of fingerprints can't be reused. Action Held. Page 7 of 8 Minutes for March 11, 2013, adopted April 23 16. Article 65 - Home rule petition — Cessation of Longevity Payments for Nantucket Town and County Employees & Sitting Mulcahy, Soverino, Kickham, Williams, Kelly, Fee, Worth Recused None Sponsor Craig Spery, et al Discussion Sense of the meeting article. Kiekham — FinCom supports the discussion and education on the subject. Soverino — Expressed the opinion that he supports Mr. Kelly's thought that the Town should have a compensation plan and it should be of an amount decided upon by a strategy team. Kelly — Town Administration has made it know this is the direction they are headed and FinCom should support that. Discussion on the comment. Action Motion to Adopt. (Kelly) seconded. Carried unanimously Motion to Adopt the comment. (Kelly) seconded. Carried unanimously Date of Next Meeting: Tuesday, March 12, 2013, 4:30p.m., Nantucket High School Cafeteria Topics: Discussion of Siasconset and Wannacomet Capital, Discussion of Articles for the Annual Town Meeting. Adjourned 6:11 p.m. Submitted by: Terry L. Norton Page 8 of 8