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HomeMy WebLinkAbout2019-10-10CapProCom Mnutes for October 10, 2019, adopted Nov. 21 Town of Nantucket CLEF= Capital Program Committee 20- FM, 1: 2� www.nantucket-ma.gov Members: Stephen Welch (Chair), Pete Kaizer (vice chair), Richard Hussey (Secretary), Christy Kickham, Peter McEachern, Jason Bridges, Nat Lowell MINUTES Thursday, October 10, 2019 4 Fairgrounds Road, Community Room — 10:00 am Called to order at 10:00 a.m. and Announcements made. Staff: Libby Gibson, Town Manager; Rachel Day, Assistant Town Manager; Brian Turbitt, Director Finance; Rebecca Woodley -Oliver, Assistant Procurement Officer; Alexandria Penta, Financial Analyst Attending Members: Welch, Kaizer, Hussey, Kickham, Lowell Absent Members: McEachern, Bridges Department Heads: Brett Lennerton, Our Island Home Manager; Dawn Hill Holdgate, Select Board Chair Documents used: Copy of minutes for October 3, 2019; Capital Improvement Plan (CIP) Requests Agenda adopted by unanimous consent. COMMENTS1. PUBLIC APPROVE11. 1. October 3, 2019: adopted •30TITMOM 14ING]1 • 1. New Our Island Home (OIH) Facility Discussion a. Presentation of FY2021 and Out -Year Requests. (Audio cuts in, discussion in progress) Turbitt — to reconfigure the schedule provides a better interest rate on the mortgage. The true subsidy coming from the Town General Fund this year will be $2,026,000 with $2.6m in the Enterprise Fund retained earnings; the true deficit is $4.6M; retained earnings will be about $900,000 less so the subsidy will have to increase. Welch — Asked at what point in the timeline are the retained earnings depleted. Turbitt — Theoretically, they are never depleted, provided we continue to get the CPE reimbursement through the fiscal year. As of July 1, 2019, the retained earnings and CPE reimbursement will be closer together. Welch — OIH is running an annual deficit. Over a 20 -year timeline, the retained earnings are less than the net deficit; the General Fund subsidy will need to increase. Turbitt — As of the September 11`h Select Board meeting presentation, the subsidy goes to over $3m; we have to fill that gap. We need to discuss a potential override of Proposition 21/2; we have to get away from is using retained earnings, which is as unstable revenue source. Welch — Asked if there is a balance point between the number of occupied rooms and staff and if the proposed new layout changes that. Lennerton — With the new building layout, we wouldn't have to hire additional people; that was a driving point behind choosing a layout. Welch — The new building should be designed to meet the tightest use and requirements. Dey — We could adjust the usage of the beds to meet needs. There are different models for adult day care, which we could keep as a recreational model. Page 1 of 3 CapProCom Minutes for October 10, 2019, adopted Nov. 21 Welch — You are looking at building something that can be repurposed; that needs to be brought up in the recommendation. Discussion about different options for repurposing the new OIH facility should OIH fold. Welch — He'd like to get the presentation on the layout options. Then we can go back to look at the cost. Dey — Reviewed the site restrictions that dictated the layout options and explained the pros and cons of each option. Based upon some feedback, the layout of Option 1 closely reflects what we now have; in her opinion, Option 2 would be harder to tie in. The 2 -story concept is hard for people to understand, the dining room would be on 2"d -floor. Unfortunately, we can't fit it all on 1 story in the construction space we have. Hill Holdgate — These are purely conceptual with the necessary programing to be plugged in and the location on site; the designs were done with Historic District Commission purview in mind. Dey — The abutters have been made aware of the concept plans and proximity to property boundaries. Welch — Asked if there is any discussion at the Select Board level about having one option at Town meeting. Hill Holdgate — Agrees we should have one option; these are similar, but she prefers Option 1. Lowell — He thinks before Town Meeting there should be a public presentation where voters can comment and ask questions about the proposed layout. Hill Holdgate — There has been discussion about putting the override and design on the warrant but no formal vote. Hussey — Asked about the possible impact on Landmark House. Dey — The manager has been included in discussion; the largest impact would be on parking during construction. There would be an impact on the view from the 2" d floor of Landmark House. We'll have to work out some temporary shared parking arrangement. Lennerton — When it's all done, we'll have more parking than we have now. Dey — An on-going issue is the single access road; we will work with Landmark House on coming up with a second access road for safety reasons. Welch — Wants to discuss construction costs. Lowell — Suggested they push the possible diverse uses when presenting the new facility to the public to help justify the cost. Dey — Presented the possible construction costs for Option 1, which is 57,156 square feet. Hussey — Asked about the architectural costs, Line 11. Dey — That is the design/engineering cost for the architectural drawings. Welch — 15% of the $5m construction cost is a really big number for the design/engineering. Turbitt — Explained the contingency costs have to be reviewed against the plan and what was put out to bid with follow-up discussion. This project might have more contingency costs due to removing the existing during construction. Welch — Asked if this includes equipment that is State mandated. Lennerton — The beds don't have to be hospital beds but do need to be adjustable. Welch — Asked about the furniture and equipment selection process and if the workgroup will be involved in that. Dey — Some equipment will be built in, such as the type of lift, so are part of the design_ Removable furniture and equipment would be ordered through existing channels. Welch — General presumption if this goes to ATM and makes it to ballot, asked what the timeline would be. Dey — We are looking at starting construction around late 2021. Turbitt — We have to hire the Operations Project Manager, then look for a designer, and have a firm number so after the Town Meeting a ballot votes we can enter into a contract. Page 2of3 CapProCom Minutes for October 10, 2019, adopted Nov. 21 Hill Holdgate — The $5m is a guesstimate. We might be able to save money going with modular construction. These are just concept ideas. Discussion about what the $5m includes in terms of services. Lowell — Noted the CLA provided drawings but we have to start over again with new design drawings. Turbitt — CLA is an accounting firm, not a design firm. Welch — Thanked everyone for coming and for the presentation. OTHER 1. Green Sheet/Committee Reports a. None 2. Member Comments a. None 3. Date of the next meeting a. To be Announced Adjourned at about 11:15 a.m. Submitted by: Terry L. Norton Page 3 of 3