HomeMy WebLinkAboutCapital Program Committee FY 2012 Report_201401231020024035Town of Nantucket
Capital Program Committee
FY2012 Report to Finance Committee and Board of Selectmen
I. Background:
Town Code requires the Town to “spend” an amount defined as: “The Town shall spend on
capital projects a minimum of 1% of total Town local receipts collected in the prior fiscal year plus
1% of the total real estate and personal property taxes collected in the prior fiscal year”. If the
total cost of approved projects exceeds this total (estimated to be about $700,000 in FY2012),
the additional amount must be funded through an override, unless free cash is available or
unused funds from previously approved projects can be reallocated. In August, 2010 the BOS
decided to not include the 1% capital funding requirement in the FY2012 Operating Budget.
Capital
:
On September 22, 2010 the Town Manager (“TM’) presented her recommendations on
d of Selectmen. Proposed projects were separated into three areas
t require funding from the General Fund)
Projects to the Boar
1. Enterprise Funds (generally do no
2. Schools.
partments (Non‐school) 3. Town De
Only those projects recommended by the TM, which the BOS also recommend are forwarded to
our Committee.
ote: The TM and BOS do not make recommendations (for or against) on School projects, or on
ertain Enterprise projects (Airport and Wannacomet Water).
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II. Summary:
It is difficult to make a clear comparison between the dollar amount of our Committee’s
recommendations and the originally proposed totals. This is due, in part, to our
recommendation to replace the $19,000,000 Shimmo Needs Area sewer with the $15,000,000
Monomoy Needs Area sewer. It is also difficult to draw comparisons with the
recommendations of Town Manager (TM) and/or the Board of Selectmen (BOS). The reason is
that the TM and BOS differ, slightly, as to which projects they recommended. Furthermore, the
M and BOS do not opine on certain projects (schools, airport and water company). The point T
being that there are a number of “moving parts” that make comparisons difficult.
That said, we can state that the Capital Program Committee (CapCom) has generally reduced
the total number of, and dollar amount of, the projects proposed by the BOS.
n doing so, we have followed the procedure that we adopted beginning with FY2010, wherein
hich we deem to be in the highest of our four categories:
I
we recommend only those projects w
ly projects we are recommending. Highest Priority (“Essential”) These are the on
t postponable”) Second Priority (“Necessary, bu
Third Priority (“Desirable”)
Fourth Priority (“Appropriate”)
Enterprise Funds – x projects totaling $25,460,230 (Airport; Landfill; Monomoy)
A
Schools – four proje ts totaling $650,000
ccordingly, our recommendations are:
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Town Departments (Nonschools) seven projects totaling $2,945,000.
Recommendations regarding funding:
Free cash (General Fund) available for FY2012 has been certified as $2,581,592.
Free cash (Landfill mining) available for FY2012 has been certified as $469,809.
e ts be separated into th ee, separate articles in
W recommend that the approved projec r
Town Meeting, as follows:
1.
2. ide required
$9,800,000 ‐ Airport (four projects) No override required.
$2,000,000 ‐ S. Water Street Re‐configuration/renovation Overr
3. $2,255,230 – Six Town (non‐school); four school; landfill mining No override
required; use free cash from the two categories listed above.
4. The $15,000,000 Monomoy Sewer Project may comprise an additional article if any
of the funding comes from the General Fund. Please note that we are recommending
the Monomoy project in lieu of the $19,000,000 Shimmo Sewer Project. Please see
page five (5) for explanation. Override may be required
We also wish to compliment the TM and many department managers on the progress they have
made in giving greater attention to the “out‐years”. There are still some gaps, but generally the
level of planning has improved in the last two years. We now have greater clarity on five‐year
and ten‐year capital needs. However, we wish to emphasize that further improvement is
needed in the financial justification of proposed projects, with particular emphasis on the
amount of savings or the amount of incremental revenues that the project will provide.
urther, these savings/revenues should be incorporated in a “years to payback” analysis that F
should be a part of each project request.
Finally, in Section V on page 8 of this report we discuss our committee’s recommendations on
hanges to Chapter 11; Article II of the Town Code, which defines CapCom and its
esponsibilities.
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I iginal Requests/Proposals from departmental managers:
Enterprise Funds – proposed eight projects totaling $31,110,230
Of these wer &
Wastew jects.
II. Or
, the TM and BOS recommended three (“Solid Waste & Recycling” and “Se
ater”) t aling $21,060 50,000 Airp rt proot,230, and did not opine on $10,0 o
Schools – proposed five projects, totaling $850,000. TM and BOS did not opine.
Town projects (nonschool) – proposed 22 projects totaling $6,138,543.
Of these, the TM recommended seven totaling $2,680,943 as “Tier 1 – fund in FY2012”.
) Of the remaining fifteen projects, the TM recommended postponing twelve ($1,809,000
to future years and three ($1,648,600) were not recommended.
With one exception (Bike Paths/Sidewalks ($250,943)) the BOS generally agreed with
the TM recommendations, but in addition made recommendations to fund certain road
improvements. The BOS FY2012 recommendations totaled $3,175,000.
Please refer to Table 1 on page 3 for clarification of the above information.
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Table 1
Summary of FY2010 Capital Project Recommendations
Project TM BOS CapCom
Enterprise Funds
Airport
Admin. Bldg. renovation N/A N/A Yes
Vehicles/Equipment N/A N/A No
Resurface Runway 6 – 24 N/A N/A Yes
Ramp Electrification N/A N/A Yes
Parallel Taxiway./R’wy 15‐33 N/A N/A Yes
Sew
Yes Yes N/A
er
Shimmo Needs Area
Monomoy Needs Area1 N/A N/A Yes 1
Solid Waste
Lined landfill cell Yes Yes No
Landfill mining Yes Yes Yes
Schools
. Rm.
rade
NHS Large Group Instr N/A N/A No
NHS Phone System upg N/A N/A Yes
NHS Pool filter/boiler N/A N/A Yes
NES Roof replacement N/A N/A Yes
NPS Vehicle replacement N/A N/A Yes
T
)
own
Jetties Beach conc. Bldg. Yes Yes Yes
Muni. Bldgs. Repairs (Various Yes Yes Yes
20 S. Water St. renovations Yes Yes Yes
Millie’s Bridge Design/Eng’g. Yes Yes Yes
Nobadeer Farm Rd.
3 No Yes No
IT – servers Yes Yes No
IT – desktops/printers Yes Yes Yes
GIS – digital update Yes Yes Yes
)2
Road maintenance No Yes Yes
otal Projects Recommended 10 12 9 (+ 4 + 4T
Total Dollar Amount 4 N/A N/A N/A
t precede the 1. CapCom, after discussions with DPW, recommends the Monomoy Sewer projec
Shimmo Needs Area project.
2. Refers to four Airport and four School projects, which TM and BOS do not rate.
3. The Nobadeer Farm Road project was recommended by TM and BOS at the Nov. 10 BOS
meeting. It is a combination of two related projects originally submitted by DPW and Planning.
This project clearly meets our second priority (“Necessary, but postponable), but we did not
recommend it because we felt it did not meet the “Essential” priority ranking.
. Comparisons of dollar amounts are meaningless because TM and BOS do not rate school projects,
nd do not rate projects submitted by Airport and Wannacomet Water.
4
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IV. Discussion of CapCom recommended projects: Enterprise Funds – Airport:
1. Renovate Administration Building and Furnishings $3,000,000
ding
plus
This will replace the current (flat roof) building, which does not meet buil
code for renovation. The new building will provide administration space
general aviation support. Eighty percent of the cost ($2,500,000) will be
funded by a state grant.
2. Resurface Runway 624 $2,300,000
The current runway is showing signs of age and wear. This project will be
) in order to save on
) will be covered by
done simultaneously with runway 15‐33 (see 3. below
construction costs. Of the total cost, 95% ($2,185,000
a federal grant and 2½ % ($57,500) by a state grant.
3. Construct parallel taxiway to runway 1533 $2,000,000
This project is safety related and required to meet new G.P.S. system
requirements. Federal (95%) and state (2.5%) grants will cover the vast
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ajority of the expense.
4. Ramp electrification $2,500,000
The completion of this project will allow jet aircraft to have power while
stored on the ramps without having their engines on. This project qualifies
rough the FAA “VALE” program (Voluntary Alternate
e
for federal funding th
Low Emission). Grants from federal (95%) and state (2.5%) will fund th
majority of the cost.
Note: A fifth request ($250,000 for New Airfield Equipment) did not meet
CapCom’s highest priority (“essential”) as the Airport Manager stated that
he had no immediate need for new equipment. There are no federal or
state grants for this category, but we wish to point out that the airport has
more than sufficient funds in it’s “rainy day fund” to pay for this project.
FinCom may wish to include this item in the warrant for TM.
Enterprise Funds – Landfill Mining
Landfill Mining $660,230
Several years ago Nantucket entered into a consent agreement with the State
Department of Environmental Protection (“DEP”) in which it committed to
protect our aquifer from the effects of leaching of the mountain of trash at our
landfill. The remedies essentially are to cap the area or remove and reprocess
the contents of the “mountain”. After an analysis of the costs of each option,
the Board of Selectman opted in 2008 to move forward with what the Town
calls the “Landfill Mining Project”. A contract was negotiated with Waste
Options for five years to mine and process a volume acceptable to the DEP.
For the first two years free cash has been available as a funding source and
the cost of about $600,000 per year has been allocated as a capital item
included in Article 13 at ATM. The FY2012 mining in the amount of $660,230
is being recommended for funding at the April, 2011 ATM. There will then be
two more years of the current arrangement to come before the 2012 and
2013 ATMs. At that point, the BOS and the ATM will reassess the method of
meeting the DEP requirement to either cap the remainder of the mountain or
to continue annually, or on an accelerated basis, to process and remove the
contents. The latter is the likely recommendation for removal is the true long‐
term solution.
1.
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Enterprise Funds – Sewer and Wastewater
Shimmo (Monomoy) Collection System $19,000,000 ($15,000,000
Shimmo Needs Area is one of the three areas identified in the CWMP to
reduce pollution of the Nantucket Harbor. It is located just east of the
Monomoy Needs Area and is boarded by Nantucket Harbor to the north and
Polpis Road to the south. The design has been funded and the cost estimate
provided by AECOM in the CWMP. The Surfside wastewater plant is sized to
handle all three additional needs areas (including Surfside) so no new
employees or major additional expenses are anticipated. The 185 new
connections could generate $370,000 in connection fees and $148,000 in
annual sewer user fees.
1. )
Note: At our meeting Jeff Willett suggested that it would be more
efficient to start with the Monomoy Needs Area, as some of the lines
needed for Shimmo will require extensions through Monomoy. The
Monomoy Needs Area also benefits from a lower cost estimate ($15MM)
and more connections (227) with the consequent higher level of
connection fees ($454,000) and higher sewer user fees ($182,000).
Schools
1. NHS Phone System Upgrade $50,000
The School presently has a Mitel analogue telephone switch, which links
analogue phones together and with outside Verizon trunk lines. This switch is
now at its end of life, and periodically malfunctions. Mitel has recommended
replacement with one of their digital switches at a cost of about $50,000.
Should the need become more immediate as was indicated by the school
representatives, the Committee supports a school request for funding from
the Town’s Reserve Fund prior to July 1, 2011.
Because of the immediate need for this equipment, we are recommending the
expense with the understanding that more modern VOIP service is being
implemented across all Town functions, including the Schools, with a full
system overhaul anticipated in either FY 2013 or FY 2014.
HS Pool Water Filter and Boiler Upgrade/Replacement $200,000
The school’s representatives stressed the negative impact the 20‐year old
current system is having on the plant and pool’s functioning. There is a
potential for failure of the existing system, which would render the pool
useless, resulting in a substantial negative impact on school programs, swim
clubs and the general public. The system is currently located on the other side
of the complex from the pool. The replacement would move the boiler system
closer to the pool, which would reduce oil heating and electrical pumping
costs by an estimated 20%. By replacing the boiler, there would be an energy
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and thus monetary savings of approximately of $4,000 per year.
ES Flat Roof Replacement $350,000
Other portions of the roof have been replaced to date and this would
complete the project and eliminate leakage into the interior of the school that
could potentially compromise air quality and damage the school. This portion
of the roof is the last area to be done of all three schools. It is anticipated that
the project would be completed during the summer of 2011, as this work
cannot be undertaken during the school year. Any delay in funding would
push the project out to the sum 2012. In the future an annual Infrared
Scan is recommended for all fla to locate moisture within the roof.
3. N
mer of
t roofs
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PS Ground Vehicle Replacement $50,000
The current grounds utility vehicle is from 2001, unreliable and is 2‐wheel
drive. The maintenance department is responsible for maintaining the
extensive grounds and athletic fields and is in need of a more serviceable
vehicle that is 4‐wheel drive with a dump body. The new truck would be able
to be fitted with a plow and sander for general grounds maintenance and
snow plowing, thus eliminating the reliance on outside contractors for snow
removal, which cost $3,000 last year for two small storms. There would be a
savings in maintenance costs of up to $1,500 per year as well, while
increasing safety on the school grounds. A total estimated savings of $5,500
per year yields about a 12‐year payback.
4. N
Town Departments (Nonschool)
1. Jetties Beach Bathing Concession Building Repair $120,000
This request is for $120K to maintain an important income‐producing Town
asset. Specifically $25K to increase the intake and exhaust capacity in the
kitchen, as the current equipment is inadequate for today’s usage, $8K for fire
alarm system remote hook‐up to the Nantucket Fire Department, $30K for
shingling the south wall and painting the building, $6K to repair three
dormers, and $35K to replace and paint the remaining bathhouse windows,
and to replace and re‐shingle the deck. The Park & Rec. manager estimated
that an additional $10,000 per year lease revenue might result from these
repairs. This additional revenue should provide a 15‐year payback of
principal and interest.
2.Municipal Buildings Repairs $75,000
This request is for $75K to address some of the long postponed issues
contained in the 2007 assessment done by Greene & Robinson for
maintaining Town buildings. Town and County Building: $45,000 ($20,000
to repair the cracks and paint the first floor hallways up the stairways to the
doors and $25K to replace all the antiquated interior lighting). Mooney
Building: $15,000 for rotted door trim, sash and window repairs.
0 South Water Street Space Reconfig. & Improvements $2,000,00
The Town commissioned a design firm in 2006 to develop a plan for
managing the Town’s need for office space. The plan recognized that the
“Mooney Building” at 22 Federal Street was not a viable long‐term asset for
use by the Town. The building is in need of repair, is not properly
handicapped accessible, and is not conducive to efficient use as offices. In
short, the Town needs to sell the building. In order to do so, alternative space
for the staff now ensconced in the Mooney Building must be available. The
plan referred to above suggested that the old police facility at 20 South Water
Street be renovated into office space and the occupants at 22 Federal Street
move to Water Street. The capital cost of the renovation of 20 South Water
treet is $2,000,000. Approval at the 2011 ATM will enable this plan to move
orward.
3. 2 0
S
f
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4. Millie’s Bridge Design and Engineering $50,000
The wooden deck and bridge approaches to Millie’s Bridge are in dire need of
repairs, and present a potential safety hazard. This bridge is the only access
to Smith’s Point, and should the bridge fail, there would be no emergency
access to many houses across Hither Creek. This $50K request is for an
engineering contract to evaluate Millie’s Bridge, based on MA Highway Bridge
Reports. The contract calls for creating specifications and construction
drawings, administering the bidding process and construction supervision for
corrective action.
Desktops and Printers $50,000
IT has requested $50,000 for replacement and additional desktops/printers
(computer work stations). At present all workstations consist of PCs
connected to a local area network with each computer loaded with Microsoft
Office and other software, which is expensive to replace and maintain. This
traditional set‐up compares with a virtual workstation, which interfaces with
virtual servers over the network, on which are stored all applications and
data. We recommend this request for $50,000 to handle the short term needs
of the Town. We further recommend that the long term IT Plan include the
5.
use of more state‐of‐the‐art technology.
GIS Digital Orthophoto Update $50,000
GIS has requested $50,000 to hire outside contractors to up‐date digital
images and integrate them into the Town's GIS Data Base. We recommend in
favor of this request, with the suggestion that outsourcing this function may
be more cost‐effective.
6.
Road Maintenance $600,000
The Town in the past few Years has relied on State Chapter 90 funding for its
road repair financing which is about 33% of the annual amount
recommended in the 2005 MACTEC Pavement Management Plan. Many Town
streets are too short to qualify for Chapter 90 funding, such as the streets
7.
listed below in this proposal. We must maintain the streets now to avoid
more costly repairs later. The streets proposed include:
Meader Street ‐‐$20,000 New Street Sconset‐‐$370,880
Back Street ‐‐ $24,478 W. Dover Street ‐‐ $20,000
pper Main Street‐‐$69,000 E. Dover Street‐‐ $15,000
arren Street‐‐$19,438 Coon Street‐‐ $10,000
U
W
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V. Recommended changes to Town Code – Chapter 11, Article II
§ Establishment: membership Our Committee feels that seven voting members, with a majority (currently four)
being at‐large members appointed by BOS, is appropriate. We also believe that
the representative members from FinCom; BOS and NP&EDC provide valuable
nges recommended.
116
§ 11
perspective to our deliberations. No cha
8 Compensation Recommend language change as follows (in bold): “The members of the Capital Program Committee shall not be paid for
their services, but may incur reasonable expenses in the performance of
their duties with prior approval by FinCom.”
Issuance of reports
Recommend language change as follows: (change 10
§ 119
to 60)
“The Capital Program Committee shall issue a report or reports … Such reports
shall be made to the Board of Selectmen and Finance Committee at least 10 60
days prior to the date of the Town Meeting called to vote on any proposed capital
expenditure.”
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