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HomeMy WebLinkAbout2019-1-10CapProCom Minutes for Januan- 10, 2019, adopted June 13 Town of Nantucket Capital Program Committee; ' r _ Nyww.nantucket-ma.gov Members: Stepllcii Welch (Chair), Pete Kaizer (vice chair), Richard Hussey (Secretary), Christ- Mckham, Peter McEachern, Jason Bridges, Nat Lowell MINUTES Thursday, January 10, 2019 Warnnacomet Water Company, Conference Room — 10:30 am Called to order a,- 10:3-) a.m. and announcements made. Staff: Brian Turbitt, Director Finance; Rebecca Woodley -Oliver, _assistant Procurement Officer; Alexandria Penta, Financial Analyst; Terry Norton, Town Minutes Taker :attending Members: Welch, haizer, Hussey, Kickham, Lowell Absent Members: Mcl :achern, Bridges Late arrival: \onc Documents used: CapCom Summary of FY20 Requests as of 01.01.2019 Agenda adopted by unanimous consent. COMMENTS1. PUBLIC 1. None II. APPROVE MINUTES Discussion Welch — \ c need to be able to fund or propose a funding mechanism. We have information on all except Public Safety Facility (PSF) auxiliary building set up for repairs and harbor master layup yard had a question if it could be incorporated in the PSF Auxiliary Building. Reviewed the setup of the spreadsheet; focus will be on the variances. Cappiil�z tl.c cells Turbitt — Che bid came in just under S12M but I'm recommending going with the S14-\1 on rcducst from the Department of Public Works (DPW) director. We wouldn't permanently borrow my more than was used on the project. Facility- _access Road & Parking Lot Maintenance Welch —This variance relates to the funding source. Asked to hold for a moment. Turbitt 1 1, >,)r Drain & Collection Tank could be reappropriated from unspent landfill mining mune%, but n it for the total amount of $100,000. Welch "11iere are two projects, Repair Electrical Systems and Overhead Doors, that just meet our Cap(:om requirements of $50,000. Turbitt — We are transferring money from prior capital; he recommends leaving as capital projects. V+Ieich -- Cmined Landfill Mining is moot at this point since we're going with a cap. The change is S800,0oi) less. Facilities: Annuals Welch —There here is a capacity issue in terms of deliverables and ability to complete requests. _asked if rhereis funding available. Page 1 of 6 CapProCom Minutes for Januan� 10, 2019, adopted June 13 Turbitt he full implementation of prior funding hasn't yet been exhausted; that's why it's recommended at this level. If re recommend millions of dollars in borrowing, that would be a lot of debr to carry on an annual basis. He attempted to balance all requests with a realistic funding plan. Hussey - Town Administration RORI scores; there are three below 50'o; asked if that's a concern. Welch 1-1e has a personal concern with funding anything below the average-weighted RORI. He doesn't know if at this stage we can dissect and address this. Turbitt - The Americans with Disabilities Act (ADA) accessible upgrade was recommended for finding at 550,000 because we received two grants, which will allow DPW to continue on the All_A upgrade around Town. Welch - 1 he .lnnual Facilities Equipment Replacements and Lighting updates, asked if there is grant funding or what information there is on those. Turbitt - Lighting Update is being handled by the Town Energy Coordinator; updates will be recommended from that office. Equipment Replacement was funded last year; we have 5-rears of holding and there is a need to fund it at some level over a period of time. Welch Deferring maintenance ends up costing more; we recommend funding these to keep on top of maintenance. Getting on top of maintenance plans is important. Lowell - -Asked about the ADA upgrade, are the two sources of money is separate. Turbitt --- Tlhcy're separate. Explained the grant requirements. It's detrimental to fund at a smaller armounr rather then moving forward. Welch - We are looking for a systematic approach to construction and transparency regarding the cost. That helps project out what next year will be. Asked if there are concerns about eliminating the variance by matching our recommendations to Town Administration and Finance. Kaizer -1 he "Town rated 229% for the ADA upgrade, which is legally required, and it is the 2°`- low csr dollL�r request. The Town's three lowest ratings are the lowest dollar amounts. Asked if the t-\v-o lo« csr could go into the Operations Budget. Turbitt If they go into Operations Budget, he'll still be using free cash. The ADA grant is to work through the transition plan and build on future years for a more solid approach. Welch -There's a lot of work to be done around the community to help people out and that's a rclam-e small amount of money. Kickham - \sked upon which recommendations the funding sources are based and how that affects ncc funding source. Turbitt - -Those are based the pot of money he knows he has. The T'N1 recommend allocating $5\l from free cash; we have $994,000 to spend from the 1%; anvthing else xve'd use borrowing, capital exclusion, or debt exclusion. More likely will be debt exclusion for the large infra-structure projects. He's trying to get the rolling stock to be a capital exclusion; so that it's a one-time raise. Welch - \\e aren't in a place to systematically to provide our own funding source recommendation; it is part of our charge. We'll eliminate the variance by matching the Town recommendation. 1\lotion Motion to Accept that amount in the hopper. (made by: Hussey-) (seconded) Vote Carried unanimously- letries Beach facilities Upgrade Welch - 1'his received a high RORI from the Town and a lower than average by CapCom. The Town recommends it not be funded at this point; it'll be an outyear project. Turbitt \\'e have money for the review and analysis for what needs to be done; however, eye are halfway through Jan and it won't open until late April or -NIay with work not beginning until next 1,all. I le recommended it be placed in an outyear. Lowell -- Fie sees this situation as the same Children's Beach bathroom upgrade. Kickham \sked if there is something in the DPW for future maintenance of the facility. Turbitt -That would come out of the Annuals. Page 2 of 6 `;apProCom -Minutes fox Januan- 10, 2019, adopted June 13 Welch — I lis concern is capacity. f this isn't funded this fiscal year, that allows DPW to get set up with the new staff and the implementation. Our RORI was on this 430'0, which was quite a bit h m-er. Motion Motion to Follow funding source recommendation, is not to recommend. (made by: Huss«-) !sec(;nded) Vote Carried unanimously Kaizer There will be questions at ATM why these are being pushed out; we need to be able to explain that. Turbitt — He doesn't want to have to keep going back for more money; the effort is not to be reactionarN- when there is a need for more money. Welch — \Vc don't want to end up without money to meet the actual needs of the tenants. This is actually a placeholder. Farking Improvements: 2 Fairgrounds Road & Town Pier Welch 'I he town has no recommendation on the funding source while we recommended full funding; however, our RORI is 43%. Town Administration suggests the Marijuana excise tax will go toward repair of the Town Pier. Asked if 2 Fairgrounds Road was being tied in with the Waitt Drive imprm-cment. Turbitt The Town hasn't finished the plans for Waitt Drive and doesn't know what's happening there. Town Administration decided this is critical and will be done on borrowing. Kaizer — Clarified that this will exclude the Town Pier as well. Lowell — Tlic Town Pier Parking is being redesigned. Welch - Hnt becomes another placeholder; and they might need to ask for more money. Nlotion Motion to Accept the Town recommendation and move to an out year. (made by: Hussey) (scco ndcd) Vote Carried unanimously Road Improvements & Maintenance Welch — Tlicre was a request for $3.5 with a significant variance. We are waiting on a report that updar s im-cnrory of maintenance requirements. Turbitt "i he $1M recommended funding is typical of past allocations and would supplement , hat we get from Chapter 90. Nlotion Motion to track the funding source for $1M; that's phased and recurring and will be an out year. ;made by: Hussey) (seconded) Vote Carried unanimously NIulr14-sc parh & Cobblestone Repair Lowell — hceping the Multi -use Paths and Cobblestone repair separate is a good idea for information purposes. Welch —I he recommendation is funding $250 from free cash. Nlotion Motion to accept funding recommendations for Multi -use Paths and Cobblestone Repair. (made b\-: Lowell) (seconded) Vote Carried unanimously V,.w -inct Road Shared Use Path Turbitt —The he recommendation is for $354,000, which is our required match. Welch — We will revisit this in FY2021. Turbitt —In 1 Y2021 he will use same mechanism. Motion Motion to approve funding recommendation as a borrowing. (made by: Lowell) (seconded) Vote Carrico unanimously I ransportarion — Decommission Fire Cisterns. Welch _lsked the rationale. Turbitt — We have a $200,000 le«- limit; given circumstances we're facing with potential Enterprise i�und issues, these can be absorbed through a budget transfer and covered on an as - needed basrs. Page 3 of 6 CapProCom :Minutes for Januar- 10, 2019, adopted June 13 Kickham — Asked what "it" means in terms of waiting until "it" happens. If we don't fund it and "it" happens, how would it be funded. He doesn't want the funding to be delayed and thus the work. Turbitt — If "it" happens, we'd typically fund it through the Operations Budget to take care of it Mirnediatel\-; if there's time, we can go to Finance Committee (FinCom) under une\pected%unanticipated expense; we get closer to the end of the fiscal year, we can use a 33B transfer, which is a transfer between budgets with permission from FinCom and the Select Board. Welch — There are two approaches being discussed: proactive and reactive. This is a potential hazard: he suggests it be funded but doesn't know the funding source. Turbitt —asked what CapCom wants to fund as long as it is under S100,000; he'll find a �vay. Welch — Suggested swapping with the $75,000 from FY2021; that leaves money in the account in case something comes up. Lowell -- I f c doesn't think a survey is being done since the maps are good. He thinks DPW can handle a problem if it happens; as far as a full plan to locate all existing cisterns is a major project. Kickham He wants something in place to show that the Town is addressing a potential cistern collapse. Lowell He's good with funding $50,000. Discussion about possible ways to fund this. Motion Motion to Recommend Funding at $50,000 for FY2021. (made bv: Kickham) (seconded) Vote Carried unanimously Harbor 'Master Industry Road Layup Yard Welch His concern with putting this off is that it's a step toward getting staff to efficiently urilize space during the winter and do services before the Spring. Turbitt — You would still be looking at two years before they are proactively doing what needs to be done. In i,Y2021, there's almost $400,000 for the modular building. This S495,000 doesn't get the building. He asked the DPW director if this could all be one project next year. The response to that was apathetic. The funding would be a recommendation to borrow. Welch With respect to RORI, we received this request last year and it was pulled. He has his RORI for this; eight of the categories came in at 100%. This is productivity-, efficiency-, and planning. He personally supports this. Lowell — Asked if this is considered a placeholder. Turbitt He considers this phased funding, not a placeholder. The DPW deputy director has a good handle on where he's going with this. Welch — \yi'e're putting of improvements in efficiency and effectiveness. This would be for site devclopmem, so they are ready for the building; it sets them up for completion. Kickham — _Asked how actively this will be used off season. Turbitt He suspects it will be heavily used; it's beneficial for preparing for the upcoming season. His recommendation is based upon not loading up the Town with debt; phased funding pushes the impact down the road. If necessary, he'll recommend borrowing that wouldn't happen fora couple of years. Hussey — Asked if the Town is moving off the zero recommendation. Motion Motion to Fund as a form of borrowing. (made by: Lowell) (seconded) Vote Carried till anlinously Administrarion: E -permitting Turbitt — 'Ihere is variance because we found money and implemented the first phase. Motion Motion to Track the Town Funding recommendation. (made by: Kaizer) (seconded) Vote Can,Icd ullan:mously I icer \lanagcment — DPW and Sewer Welch — There are several DPW vehicles and Sewer is requesting a loader, a 1 -ton truck, and new excavation ecluipment. We'll start with the sewer vehicles. We had asked for prioritization of the vehicles from the directors of the DPW and sewer. The DPW vehicles were voted into the Page 4 of 6 CapProCorn Minutes for January 10, 2019, adopted June 13 hopper subject to a review of the prioritization. The Sewer vehicles were not voted into the hopper subject to a review of the prioritization. Lowell — He would like to get them to share, particularly the loader. Hussev — Looking at the Town is pretty clear in their assessment of the need; he thinks it could be pushed to an out year. Lowell — DIAV uses their loader a lot while Sewer's works on the lot. They aren't cheap, so he'd prefer them being able to share. Turbitt — We've programmed them as capital exclusion. There's been significant issues with trash compactor truck; it gets heavy use. He programed them all into the capital exclusion except for the passeiager vehicle, which rated substantiallv low. This goes back to the conversation that he's looked ar this program as capital exclusion, which last year was for rolling stock. We face a backlog; of equipment and infrastructure and could be just delaying the cost. His recommendation is to eliminate one of the director vehicles. Kickham —This would be the first time we have a service response truck and we've gotten by for years \yithour one. Lowell Nantucket is really small; when you break down, you call service. This truck is a heavy truck like __ ou'd see on the side of the highway. On Island, you tow trucks with a loader, not a tory truck. He wants more information on what this vehicle really is; but do eventhing else on their list. I -le doesn't want to purchase a truck used only twice a year. Turbitt We're also talking about time efficiency. Welch The service truck should move to an outyear. Kaizer — He would also eliminate the second sweeper; he doesn't see the need at this time and it's the priciest request. also, eliminate the excavation equipment, which is also pricey. Doing that curs the request in half. Welch — I criminate the one loader, the service truck, DPW passenger vehicle, and sweeper. ;Motion Motion to put the loader, one DPW director vehicle, trash compactor truck and vehicle lifts in the hopper. (made by: Kaizer) (seconded) Vote Carried unanimously Se\yCr: one-ron truck_, loader, and excavation equipment Welch The excavation equipment is something for yard, shop, and work around the eeMlnarirlltV he's looking at a backhoe. Town recently recommended the Sewer Department prm idc in-house services for things like manhole replacement. Turbine 'I iacse would be funded through the Enterprise Fund retained earnings. Lowell — Our rankings are much higher than the Town's or Finance. He wonders about the 1 - ton rruck, if ir's a dump truck or pick up. Welch — Parr of our process was glazed through; some of this stuff was reviewed ad museum and nova hr's three months later; that lack of efficiency is frustrating. Kickham — suggested holding off this loader since we're funding DPS 's; the excavation equipment rated in verjv low. Woodlev- OtiN-er — according to Mr. Gray, the existing excavation equipment isn't the greatest Turbitt — He doesn't have the equipment to respond to an emergency; he has to call for it and wait for people who can help to get here. He wants to be able to respond in a timely manner. vvi-,\ excavator is number 1 on his list. Kaizer — I I would prefer to go with Mr. Gray's priorities, which is the loader over the 1 -ton track. Hussey — _agrees with --L\1r. Kaizer. Nlotion Motion to approve loader and excavation equip funding as recommended through retained earnings and the 1 -ton truck moved to an out year. (made by: Kickham) (seconded) Vote C111'rled unanimously 1~aciliry- _'lccess Road Welch — 'Money hasn't been found for this. There is a potential to reappropriate. Page 5of6 CapProCom \hnutes for Januan- 10, 2019, adopted June 13 Turbitt — Will meet next week to finalize unused mining money. Asked this be held for that discussion. It will be an article reappropriation. Motion Motion to put in the hopper as an article reappropriation at the maximum amount available. (made by: Hussy) (seconded) Vote Carried unanimously Welch — _\skvd for a final motion to accept all recommendations. Motion Motion to Approve all recommendations as currently outlined to this date. (made bN-: hickham) (seconded) Vote Carried unanimously V. LIAISON/COMMITTEE REPORTSCOMMENTS 1. Committee Reports a. Welch — _\s a representative of CapCom, he attended the Vulnerability Prevention Seminar for Town to establish a plan to leverage State and Federal funding by identifying hazards and risks and come up with a consensus model to prioritize those hazards and risks. A theme of our report this year is capacity- of financially and staffing resources to deliver a product in a timely way. This falls under the Coast -ti 1Zcsilienc\- Plan and will have a dramatic impact on spending in the future. The funding source nccds Evill be identified and should be included in our report. b. Member Comments a. Welch :\fter january, we should get together to do a recap and continue working on best practices. Town might be making changes in capital management. The joint meeting with the Select Board is January ?3 at 6:00 p.m. Date: Friday, Januan- IS, 2019 at 10:30 a.m. in Wannacomet Water Company Conference Room ldjourned at 12:21 p.m. Submitted by: 'ferry L. Norton Page 6of6