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HomeMy Public PortalAboutFiscal Year 2022 Capital Improvement Program (5 Year)Michael). Driscoll Town Manager TOWN OF WATERTOWN Once of the Torun Manager Administration Building 149 Main Street Watertown, MA 02472 Phone: 617.972-6465 www.warertown-ma.gov town tngr@watertown-nia.gov To: Honorable Town Council From: Michael J. Driscoll, Town Manager Date: January 26, 2021 RE: Fiscal Year 2022-2026 Capital Improvement Program Pursuant to the provisions of the Watertown Home Rule Charter, the attached Town Council Resolution on the Fiscal Year 2022 Budget Process and the 'Town Council Resolution on Watertown's Ongoing Capital Project Budget Cnridelines, I herewith present the Proposed Fiscal Year 2022-2026 Capital improvement Program (CIP). The Proposed Fiscal Year 2022-2026 General Fund CIP totals $467,799,100, which represents a decrease of $56,351,400 from the Fiscal Year 2021-2025 CIP. Potential renovation/reconstruction of school facilities totaling $289,500,000 is included as a subcategory in the Fiscal Year 2022-2026 Capital Improvement Program. Projects included in the potential renovation/reconstruction of school facilities are fuilher outlined in the `Building for the Future" section of this correspondence and are as follows: • 3 Elementary Schools Project • High School & Related Costs $ 89,500,000 $200,000,000 $289,500,000 The bonding requirement for the Fiscal Year 2022-2026 CIP is $152,184,800 and the Street and Sidewalk bonds of $53,235,800 listed in Fiscal Year 2026 are not included in the bonding requirement. The funding source of $6,400,000 of the CIP has not been determined. The following are the projects/items with the landing source to be determined (TBD). • Former Police Facility Renovation/Reuse $ 4,800,000 • Former North Branch Renovation/Reuse $ 1,100,000 • Multi -Service Center Renovation $ 500,000 TOTAL: $ 6,400,000 The CIP includes all known capital needs, regardless of the source of funding. On June 28, 2016, in accordance with Fiscal Year 2017 Budget Policy Guideline II.L., a transfer of funds was considered in order to move forward with an updated Facilities Assessment Study that would detail the repairs and improvements needed to maintain the existing municipal facilities. The Honorable Town Council approved the transfer of $134,000 for the Proposed Facilities Assessment Study of 18 existing school and municipal facilities. The Architecture firm of Gienapp Design Associates completed the Facilities Assessment Study of the eighteen buildings which includes recommendations for repairs and maintenance over the next ten years totaling $57.9 million. The Facilities Assessment Study has been utilized in the development of the Fiscal Year 2022-2026 CIP and will serve as a guide to allocate monies for ongoing maintenance. Water and Sewer Enterprise Funds Capital Improvement Program (CIP) The proposed Fiscal Year 2022-2026 Water and Sewer Enterprise Funds CIP totals $22,670,000 and is attached in this document. Stormwater Infrastructure Improvements of $36,100,000 are included in the same document with the funding source "to be determined "(TBD) to support design and construction of future projects targeting phosphorus removal to comply with the Town's NPDES permit, issued by the EPA. The Permit requires specific phosphorus reduction targets be met over a 20-year timeframe as part of a Phosphorus Control Plan. To date, the Town has begun compiling information related to existing phosphorus removal activities and is also participating in a technical assistance grants from EPA and MADEP related to nutrient removal (including phosphorus). Several phosphorus control elements have been included in recent capital projects using existing funding sources. Litigation of the NPDES permit is complete, and although some timing and requirements of the Phosphorus Control Plan have been modified, the written plan must still be completed by June 30, 2023. Over the next two years, the Town will continue to develop a Phosphorus Control Plan and also identify funding needs. As indicated in the Fiscal Year 2016 Budget Message, and in accordance with Town Council's Budget Policy Guideline, a determination of how to fund future stormwater infrastructure improvements will be undertaken. Options exist including the creation of a stormwater utility, which could be set up as an Enterprise Fund (as the City of Newton has done); or financing could be established through the General Fund. On June 25, 2019, the Honorable Town Council approved a Proposed Loan Order totaling $1,050,000 utilizing monies from the MWRA Inflow and Infiltration I/I Local Financial Assistance Program which consists of a $787,500 grant (75%) and a $262,500 interest free loan (25%) payable over five years. On June 25, 2019, the Honorable Town Council also approved a proposed interest free Loan Order totaling $500,000 utilizing monies from the MWRA Local Water System Assistance Program (LWSAP). This program provides funds for replacing outdated unlined cast iron water mains in the Town's distribution system which will improve system water quality and increase system pressures and flows. Included in the Fiscal Years 2020 & 2021 Enterprise Funds CIP is the utilization of $2,100,000 from the MWRA Inflow and Infiltration 1/I Local Financial Assistance Program which consists of a $1,575,000 grant (75%) and a $525,000 interest free loan (25%) payable over five years. Proposed Loan Orders will be brought forward for these projects. 2 Proposed interest free Loan Orders totaling $1,000,000 will also be brought forward utilizing monies from the MWRA Local Water System Assistance Program (LWSAP), as these monies are included in the Fiscal Years 2020 & 2021 Enterprise Funds CIP. As indicated above, this program provides funds for replacing outdated unlined cast iron water mains in the Town's distribution system which will improve system water quality and increase system pressures and flows. The following is a list of items that were contained in the Fiscal Years 2019 & 2021 Enterprise Funds CIP. Fiscal Year 2019 $270,000 Sewer Heavy-duty Crane Fiscal Year 2019 $ 60,000 Water Utility 'Truck Fiscal Year 2021 $250,000 Sewer Street Sweeper Fiscal Year 2021 $ 60,000 Water Utility Truck 'Che Fiscal Year 2021 CIP items have been moved to Fiscal Year 2022 CIP. Proposed Loan Orders will be brought forward for these items subsequent to the Honorable Town Council's adoption of conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. The Council's Committee on Public Works will be exploring options for the Department of Public Works' proposed replacement of Town -wide residential water meters. In Fiscal Years 2021 and 2022, The Department of Public Works will be undertaking multiple projects throughout the Town utilizing previously appropriated capital funds. The various projects are related to the following: • Inflow and Infiltration Removal • Sewer and Drain Replacement & Relining • Water System Improvements • Water Main Replacements All of the work to the water, sewer and drain systems directly impacts the Water and Sewer rates. Interest free loans and outright grants will enable the Town to perform necessary work with little or minimal impact on the rate payers. Fiscal Year 2016 Proposed Loan Order On March 10, 2020, the Honorable Town Council adopted twenty-eight (28) conceptual recommendations on the Fiscal Year 2021-2025 CIP. Conceptual recommendation #1 reads as follows: • Confirm the prior recommendation to proceed with the FYI proposed loan order for $900,000 for Moxley Park Comas Renovations & Lighting (Design @ 100,000, Construction @ 800,000), subject to the condition that the Recreation Department shall hold community meetings to develop a design proposal and have one or more informational presentations to the Town Council. N A Proposed Loan Order will be brought forward for this item subsequent to the Honorable Town Council's adoption of conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. • Moxley Courts Renovations & Lighting $ 900,000 Fiscal Year 2017 Proposed Loan Orders As previously stated, on March 10, 2020, the Honorable Town Council adopted twenty-eight (28) conceptual recommendations on the Fiscal Year 2021-2025 CIP. Conceptual recommendations #2 and #3 reads as follows: • Confirm the prior recommendation to proceed with the FYI proposed loan order for $950,000 for improvements to the Casey Park baseball area (Design @ 100,000, Construction @ 850,000), subject to the condition that the Recreation Department shall hold community meetings to develop a design proposal and have one or more informational presentations to the Town Council. • Confirm the prior recommendation to proceed with the FYI loan order for Victory Field Phase 2 for $3,000,000 in accordance with the Final Report of the Ad Hoc Committee on Victory Field Phase 2 dated June 28, 2018 as approved by the Town Council on August 14, 2018, subject to the outcome of the High School Feasibility Study. On June 25, 2019, the Honorable Town Council approved a transfer of funds totaling $284,500 in order to move forward with the design of Victory Field Phase 2. Proposed Loan Orders will be brought forward subsequent to the Honorable Town Council's adoption of conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. • Casey Park Improvements $ 950,000 • Victory Field Improvements (Phase 11) $ 3,000,000 TOTAL: $ 3,950,000 Fiscal Year 2018 Proposed Loan Orders On March 10, 2020, the Honorable Town Council adopted twenty-eight (28) conceptual recommendations on the Fiscal Year 2021-2025 CIP. Conceptual recommendations 45 and #6 reads as follows: • Confirm the prior recommendation to proceed with the FYI proposed loan order for $385,000 for Administration Building for asphalt roof shingle replacement, painting, and carpet. • Confirm the prior recommendation to proceed with the FYI 8 proposed loan order for $325,000 for the Community Path Design from Saltonstall Park to Taylor St, subject to coordination with the parking meter upgrades in the municipal parking lots, which may require additional monies; and policy guidance from the Public Works Committee. rd The following is the list of items contained in the Fiscal Year 2018 CIP. Proposed Loan Orders will be brought forward subsequent to the Honorable Town Council's adoption of conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. • Administration Building Improvements $ 385,000 • Community Path Design $ 325,000 TOTAL: $ 710,000 Fiscal Year 2019 Proposed Loan Orders On March 10, 2020, the Honorable Town Council adopted twenty-eight (28) conceptual recommendations on the Fiscal Year 2021-2025 CIP. Conceptual recommendations #7, #8, 49 and # 10 reads as follows: Confirm the prior recommendation to proceed with the FY19 proposed loan order 66r $877,000 for Public Works Equipment consisting of • Highway Skid Steer @ 65,000 • Highway 48,000 GVW Dump 'Truck @ 243,000 • Snow & Ice 6 Wheel Combo Body Truck @ 265,000 • Snow & Ice Front Loader Blower Attachment @ 205,000 • Parks/Forestry Farm Tractor @ 75,000 • Parks/Forestry Infield Groomer @ 24,000 • Confirm the prior recommendation to proceed with the FY19 proposed loan order for $300,000 for the Saltonstall Park lighting improvements subject to the condition that the Recreation Department shall hold community meetings to develop a design proposal and have one or more informational presentations to the Town Council. • Confirm the prior recommendation to proceed with the FY19 proposed loan order for $215,000 for Administration Building Improvements consisting of: • Fire Alarm System replacement @ 85,000 • Air Conditioning and Plumbing upgrades @ 130,000 Confirm the prior recommendation to proceed the prior recommendation to proceed with the FY19 proposed loan order for $155,000 for Fire Station Improvements consisting of the following; however the East Station improvements may require additional money subsequent to further review by the on -call architect: • East Station HVAC and Plumbing upgrades @ 120,000 • Main Station apparatus bay floor recoating @ 35,000 The Fire Station Improvements have been moved to Fiscal Years 2022 and 2023 CIP. The following is the revised list of items contained in the Fiscal Year 2019 CIP. Proposed Loan Orders will be brought forward subsequent to the Honorable Town Council's adoption of conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. Public Works Equipment $ 877,000 Saltonstall Park Improvements $ 300,000 Administration Building Improvements $ 215,000 TOTAL: $ 1,392,000 5 Fiscal Year 2020 Proposed Loan Orders As a follow-up to the Honorable Town Council's adoption of conceptual recommendations on the Fiscal Year 2021-2025 Capital Improvement Program, the following is a revised list of items contained in the Fiscal Year 2020 CIP: • Community Path Construction — Taylor to Linear $ 3,000,000 • Arsenal Park Renovations (Phase A)* $ 1,600,000 • Connector Roads/Longer Streets Improvements $ 1,500,000 • Fire Stations Improvements $ 165,000 • Police Station Improvements $ 125,600 • Various School Improvements $ 95,000 TOTAL: $ 6,485,600 * Arsenal Park Renovations will be done in two phases with $2,700,000 included in the Fiscal Year 2021 CIP. Developer Mitigation & Proposed [-Cubed Funds will offset some of the cost. On June 23, 2020, the Honorable Town Council approved a transfer of funds totaling $1,778,200 to move forward with Arsenal Park Phase A Improvements. The School Improvements totaling $95,000 was related to design of the Middle School boilers which was done with previously appropriated monies. The Fire Station Improvements have been moved to Fiscal Year 2022 CIP. The following is a revised list of items contained in the Fiscal Year 2020 CIP. Proposed Loan Orders will be brought forward subsequent to the Honorable Town Council's adoption of the conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program: Community Path Construction — Taylor to Linear $ 3,000,000 Connector Roads/Longer Streets Improvements $ 1,500,000 Police Station Improvements $ 125,600 TOTAL: $ 4,625,600 Fiscal Year 2021 Proposed Loan Orders As you recall, the Fiscal Year 2021 Budget Message dated June 8.2020 stated Proposed Loan Orders will be brought forward for various Capital items contained in the Fiscal Year 2021 CIP. The acquisition of the proposed items is consistent with one of the Honorable Town Council's priorities of not deferring maintenance and/or recognition of costs of capital equipment, facilities and infrastructure to future years. The items that were to be included in the Proposed Loan Orders are as follows: 'Three Elementary Schools Project $64,000,000 High School Building Project* $ 7,500,000 Arsenal Park Renovations (Phase B)** $ 2,700,000 Various School Improvements $ 2,574,000 Street & Sidewalk Improvements $ 2,500,000 Connector Roads/Longer Streets Improvements $ 1,500,000 Police Radio System Replacement $ 1,167,000 Public Works Equipment $ 590,000 0 Information Technology $ 575,000 Fire Radio System Replacement $ 535,000 Skating Arena Improvements $ 444,000 Filippello Spray Park Renovation $ 400,000 Emergency Ambulance Vehicle $ 355,000 Underground Duct for Utilities $ 300,000 Administration Building Improvements $ 130,000 Saltonstall Park Gazebo $ 90,000 Library Improvements $ 75,000 Public Buildings Equipment $ 60,000 Fire Station Improvements $ 41,600 TOTAL: $85,536,600 * Assumes Debt Exclusion Financing ** Developer Mitigation & Proposed I -Cubed Funds will offset some of the cost On June 9, 2020, the Honorable Town Council unanimously approved a Proposed Loan Order totaling $103,455,000 to pay costs of constructing a new Hosmer and Curmiff Elementary Schools. The above -mentioned $64,000,000 less $4,640,000 related to an upcoming Transfer of Funds of budgeted Fiscal Year 2021 monies for principal and interest was permanently borrowed today. The winning bid on the bonds was an average interest rate of 1.343% for the 20-year General Obligation Bond Issue! Additionally, a Net Premium of $7,215,000 will be applied to the project costs and thereby lowering the Bond Issue to $52,145,000 as outlined below: $64,000,000 ($4,640,000) Upcoming Transfer ($7,215,000) Net Premium $52,145,000 Given the permanent borrowing occurred today, we have not had the opportunity to move the planned debt amounts related to today's bond issue into the permanent debt category. Therefore, we have listed the $64,000,000 as Planned Debt and will provide the accounting of today's bond sale at a later date. The Proposed Fiscal Year 2021 CIP of $7,500,000 for the High School Project will be included with the Fiscal Year 2022 Capital Improvement Program borrowing. On September 22, 2020, the Honorable Town Council approved a Proposed Loan Order totaling $355,000 to pay costs of purchasing a new ambulance for the Fire Department. On October 13, 2020, the Honorable Town Council approved a Proposed Loan Order totaling $188,000 to pay costs of repairing and upgrading the Town Hall elevator. On November 24, 2020, the Honorable Town Council approved a Transfer of Funds totaling $66,068 to move forward with the purchase of two tractor like snow blowers for the Department of Public Buildings that will be utilized for the sidewalks around the schools. On December 8, 2020, the I lonorable Town Council approved a Transfer of Funds totaling $103,000 to move forward with the remodeling of six Middle School bathrooms. On January 12, 2021, the Honorable Town Council approved a Proposed Loan Order totaling $1,771,000 to pay costs of the Town -wide Radio Infrastructure Improvements. Tonight, there is a First Reading on a Proposed Loan Order totaling $921,800 to pay costs of replacing two boilers at the Middle School. The following Fiscal Year 2021 CIP Items have been moved to Fiscal Years 2022 or 2023 CIP. Public Works Equipment $ 385,000 Underground Duct for Utilities $ 300,000 Skating Arena Improvements $ 144,000 Saltonstall Park Gazebo $ 90,000 Library Improvements $ 75,000 The following is a revised list of items contained in the Fiscal Year 2021 CIP. Proposed Loan Orders will be brought forward subsequent to the Honorable Town Council's adoption of the conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. Three Elementary Schools Project $64,000,000 Arsenal Park Renovations (Phase B)* $ 2,700,000 Street & Sidewalk Improvements $ 2,500,000 Various School Improvements $ 1,622,800 Connector Roads/Longer Streets Improvements $ 1,500,000 Information Technology $ 575,000 Filippello Spray Park Renovation $ 400,000 Skating Arena Improvements $ 300,000 Public Works Equipment 205,000 Fire Station Improvements $ 41,600 TOTAL: $73,844,400 * Developer Mitigation & Proposed 1-Cubed Funds will offset some of the cost School Capital Projects The Fiscal Year 2022-2026 CIP includes funding of various school improvements totaling $313,695,000 over the next five fiscal years. 'Che breakdown of these improvements are as follows: a 3 Elementary Schools Project* a High School & Related Costs** a School to be determined (High, Phillips) a Bond Remodeling (Middle) a Tax Revenue (various school buildings) a Technology (various school buildings) a Bond Equipment (Middle, High) $ 89,500,000 $200,000,000 $ 16,722,000 $ 5,382,000 $ 1,246,000 $ 500,000 $ 345,000 TOTAL: $313,695,000 * Renovation/Pcconstruction •w Proposed Debt Exclusion 8 If the High School Project moves forward and includes the Phillips School site, the improvements of "School to be determined" totaling $16,722,000 would be removed from the Fiscal Year 2022- 2026 CIP. The following is the breakdown of the School Capital Projects included in the Fiscal Year 2022 Capital Improvement Program. • Three Elementary Schools Project $ 46,000,000 • High School Building Project* $ 15,000,000 • Middle School $ 3,156,000 • IIigh School $ 335,000 District $ 130,000 • Phillips $ 15,000 TOTAL: $ 64,636,000 ' Assumes Debt Cxclusion funding Building for the Future Initiative — Three Elementary Schools Project The information in this section has been previously provided and is being included for historical purposes. There are minor edits in the last few paragraphs on pages 12 & 13. On March 13, 2017, the honorable School Committee approved the award of a contract to AD Architects, LLC to assist with moving forward with the Building for the Future Initiative. Building for the Future is a comprehensive, forward -looking initiative to address learning, operational and capacity improvements for all school facilities. On July 27, 2017, the Honorable Town Council and the Honorable School Committee held a joint meeting in order to have a presentation by AD Architects LLC on their formal recommendations related to the Building for the Future Initiative. The following is an excerpt from the joint meeting minutes: PROJECT PRIORITY 1. The elementary schools and the high school have top priority and that the middle school is less crowded than any of these schools; therefore, it should be considered for renovation after the high school is completed. 2. The High School, being the single largest project, should continue to seek MSBA funding and that the Statement of Interest (SOI) should list the needs on a priority basis and identify them clearly. The revised SOI should help with obtaining the grant. 3. If the High School were accepted as an MSBA project, their timeline would not allow construction to begin until 2021. 4. If the Town were to fund the Elementary School project independently of the MSBA grant program, construction could be completed prior to the High School construction in 2021. Given the three elementary schools and the high school were identified as high priorities, steps were taken to advance the continued development of both projects simultaneously, with the elementary schools project on a non MSBA path and the high school potentially on a path for MSBA assistance. A timeline was presented whereby the potential Elementary Schools Project estimated at $80 million - $120 million could be completed prior to the beginning of the IIigh School construction. 9 The potential renovation/reconstruction of school facilities was included as a subcategory in the Fiscal Year 2019-2023 Capital improvement Program and included the following projects: • 3 Elementary Schools Project $125,100,000 • High School Project $158,600,000 $283,700,000 As indicated during the Fiscal Year 2019 Preliminary Budget Overview Presentation on October 9, 2017 and subsequently formalized in the Honorable Town Council's Fiscal Year 2019 Budget Policy Guideline Il. A., funding of the Elementary Schools Project is included in the Debt and Interest Forecast and all of this project is to be done within the confines of Proposition 2 %2. The projected High School Project would be funded with a debt exclusion financing and a grant from the Massachusetts School Building Authority (MSBA) and the breakdown of the projected financing is as follows: • Debt Exclusion • MSBA $ 82,472,000 $ 76,128 000 $158,600,000 On October 24, 2017, the Honorable Town Council approved a transfer of funds totaling $149,996 for Owner's Project Manager Services (OPM) for the evaluation of potential solutions and schematic design phases of the Three Elementary Schools Project. On December 12, 2017, the Honorable Town Council approved a Proposed Loan Order totaling $1,378,599 for the purpose of paying costs of Designer Services for the design, construction, addition to and/or renovation of the three elementary schools. Given all of the above, it was necessary to move forward with the establishment of a School Building Committee. Thirteen (13) appointments to the Committee were made in March 2018 including the Honorable Town Council President Mark Sideris, Town Council Vice President Vincent Piccirilli, School Committee Chairman John Portz and School Committee member Lindsay Mosca. The Committee is the representative of the Town in all dealings with the architect including but not limited to the following: development and review of conceptual design options and the selection of a preferred design option, preparation of all design, construction, and bidding documents, supervision of public bidding process, award of contract to successful bidder, compliance with the program and time requirements of the Town, evaluation of the quality, appropriateness and functional attributes of the architect's solution or proposal, periodic meetings with the architect and builder to assure compliance as the project moves forward, review of all change orders during the construction phase, and all other powers and duties as are necessary and appropriate. As indicated during the Fiscal Year 2020 Preliminary Budget Overview presentation on October 9, 2018, the Town was much closer in moving forward with two initiatives, fully funded retirement system and OPEB Liability funding; and financing of the three Elementary Schools Project within the confines of Proposition 2 %2. Additionally, the Fiscal Year 2019 New Growth was $2.6 million over the original budget and these monies have been earmarked to fund Pension Costs, Other Post - Employment Benefits (OPEB) and the 3 Elementary Schools Project. 10 On December 11, 2018, the Honorable Town Council adopted and ranked the Fiscal Year 2020 Budget Policy Guidelines. The top ranked Fiscal Year 2020 Budget Policy Guideline II.A. reads as follows: Continue to develop Building for the future Initiative funding in collaboration with the School Building Committee; for the Three Elementary Schools project by formalizing the proposal to use funds redirected from the retirement appropriation when the pension fund is fully funded while also paying down the OPEB liability; and for the MSBA High School project with the proposed debt exclusion funding. During the Fiscal Year 2020 Preliminary Budget Overview presentation, I indicated the School Building Committee has been working tirelessly to review conceptual design options for the three elementary schools in an effort to ultimately select a preferred design option that is in the best interests of the Town, the taxpayers and the successful education of our children. To that end, the School Building Committee had met twenty (20) times starting on March 14, 2018; and held 3 community forums at each of the elementary schools in November 2018 to receive feedback on the various conceptual design options. On January 8, 2019, the Honorable Town Council approved a modification to the Resolution on the Fiscal Year 2020 Budget Process. The submission date of the Fiscal Year 2020-20204 Capital Improvement Program was moved fi•om January 22"d to January 31, 2019 in order to consider the School Building Committee's actions at their January 23, 2019 meeting. On January 23, 2019, the School Building Committee adopted the following motions: Motion 1: That the School Building Committee formally endorses and refers the conceptual and schematic design and cost estimate, as presented tonight (January 23, 2019) to the Town Manager for his consideration. (Unanimously voted) Motion 2: That the School Building Committee authorizes the Chair, along with representatives from Ai3 and Daedalus, to meet with the 'Town Manager to discuss the design and cost of the project as just referred. (Unanimously voted) The endorsed conceptual and schematic design includes all -new construction of the Hosmer and Cunniff Schools and comprehensive renovations and additions to the Lowell School. The proposed projects create modern, forward -thinking facilities and associated site amenities that meet the educational, neighborhood, energy efficiency, and recreational goals established through a public process of meetings and forums. These projects are part of a long-term vision of providing outstanding education, recreation, and healthy neighborhoods throughout Watertown and will serve the Town for many decades. The approximately $170 million cost estimate includes the total project costs representative of the buildings, sitework, furniture, technology, and all associated costs of the completed and occupied facilities. On January 31, 2019, I respectfully recommended moving forward with the School Building Committee's endorsed conceptual and schematic design. Funding of $170,000,000 for the Three Elementary Schools Project was included in the Proposed Fiscal Year 2020-2024 Capital Improvement Program and all of this project is to be done within the confines of Proposition 2 %. 'The Honorable Town Council's Fiscal Year 2020-2024 Capital Improvement Program conceptual recommendation #18 reads as follows: Concur with the decision to proceed with the `Building for the Future" initiative of $170,000,000 for the Three Elementary Schools Project funding within the confines of Proposition 2'/z, and not proceed with the $5,304,000 for renovation projects for the Cunniff, Hosmer, and Lowell schools shown in the FY2020-2024 CIF as NB (included in New Building) or RB (included in Renovated Building). As a follow up to that conceptual recommendation and in accordance with the Honorable Town Council's Fiscal Year 2020 Budget Policy Guideline II.A, the following was the timeline for borrowing $170,000,000 for the Three Elementary Schools Project as outlined in the Fiscal Year 2020 Budget Message dated April 23, 2019: Fiscal Year 2020 $ 35,000,000 Fiscal Year 2021 $ 45,000,000 Fiscal Year 2022 $ 45,000,000 Fiscal Year 2023 $ 45,000,000 $170,000,000 The School Building Committee working with AD Architects LLC has completed the following phases related to the Three Elementary Schools Project: • Schematic Design Phase • Design Development Phase • Construction Document Phase • Construction Contractor Bidding After significant discussions with the School Committee, School Building Committee and Town Council, the Town leased Saint Jude School, Waltham beginning on July 1, 2020 through June 30, 2023 for swing space for the Three Elementary Schools Project. This decision will allow the CunnitTand Lowell Schools to be completed two years earlier than originally projected! The Cunniff and IIosmer Schools were bid as a single collective package in order to receive the most competitive pricing and to ensure the two schools will receive the same building systems and materials; and allow for management of a single contractor for these two projects. As previously stated, on June 9, 2020 the Honorable Town Council unanimously approved a Proposed Loan Order totaling $103,455,000 to pay costs of constructing a new Hosmer and Cunniff Elementary Schools. During last Summer, the Hosmer PK-5 School was consolidated into the "Z-shaped" building. The Hosmer Preschool Program (5 classrooms) moved to the Phillips Building, which necessitated the Facilities Department relocating to another property in Watertown that will be rented during the construction of the Three Elementary Schools Project. Construction began at the Cunniff and Hosmer during this Summer and the Cunniff School will be completed by the end of this calendar year; and the Hosmer School will be completed by the Summer of 2022. 12 Construction will begin at the Lowell School dU61111 111c. Summer ol'2022 and will be completed by the end of calendar year 2023. Given the leasing of Saint Jude's and the acceleration of the Cunniff and Lowell Schools Project with completion dates two years earlier than originally projected, the following is the timeline for borrowing $170,000,000 for the Three Elementary Schools Project: Fiscal Year 2020 $ 16,521,891 Fiscal Year 2021 $ 64,000,000 Fiscal Year 2022 $ 46,000,000 Fiscal Year 2023 $ 43,478,109 $170,000,000 As stated many times in the past couple of years, as a result of the aggressive funding of the Retirement System, financing of the $170,000,000 for the Three Elementary Schools Project will be done within the confines of Proposition 2%:. Massachusetts School Building Authority Core Program - High School The information in this section has been previously provided and is being included for historical purposes with updated information on page 15. On March 28, 2017, the Honorable Town Council approved the submission of a Core Program Statement of Interest to the Massachusetts School Building Authority (MSBA). As indicated on the MSBA website, the Core Program is primarily for projects beyond the scope of the Accelerated Repair Program, including extensive repairs, renovations, addition/renovations, and new school construction. The Core Program in question is the High School and this was the fourth year of submission of a Statement of Interest. On December 13, 2017, the MSBA Board of Directors voted to invite the Statement of Interest (the "SOI") for the High School into the MSBA's Eligibility Period. The 270-day Eligibility Period formalizes and streamlines the beginning of the MSBA's grant approval process and benefits the Town by providing a definitive schedule for the completion of preliminary requirements, assisting with the determination of financial and community readiness, and identifying needs for planning and budgeting. Successful completion of all activities in the Eligibility Period will allow the Town to be eligible for an MSBA invitation to Feasibility Study. Invitation into the Eligibility Period is not an invitation to Feasibility Study. Moving forward in the MSBA's process requires collaboration with the MSBA, and an invitation to Feasibility Study will require a further vote of the MSBA Board of Directors. To qualify for any funding from the MSBA, local communities must follow the MSBA's statute and regulations, which require MSBA partnership and approval at each step of the process. The Town's Eligibility Period commenced on April 2"d and concluded on December 28, 2018. On March 15, 2018, the Honorable Town Council adopted twenty-seven (27) conceptual recommendations on the Fiscal Year 2019-2023 CIP. Conceptual recommendation #22 reads as follows: • That the Administration continue to develop financially prudent financing for the "Building for the Future" initiative for funding of the 3 Elementary School Project within the confines of Proposition 2'/z; and the proposed debt -exclusion funding of the MSBA High School Project. 13 On October 3, 2018, the School Building Committee unanimously approved a motion to request the Town Manager move forward with funding of $1,600,000 for the Feasibility Study and Schematic Design Phase for the Watertown High School Project. On November 13, 2018, the Honorable Town Council approved a Proposed Loan Order totaling $1,600,000 as a follow-up to the School Building Committee's request and in accordance with the above -mentioned conceptual recommendation. On December 12, 2018, the Massachusetts School Building Authority (MSBA) voted to invite the Town to partner with the MSBA in conducting a Feasibility Study for the Watertown High School. During the Feasibility Study phase, the Town and the MSBA will partner pursuant to the terms of the Feasibility Study Agreement to find the most fiscally responsible and educationally appropriate solution to the problems identified at the Watertown High School. The Feasibility Study, which will be conducted pursuant to the MSBA's regulations and policies, requires the Town to work with the MSBA on the procurement of an Owner's Project Manager and Designer, which will help bring the Town's Feasibility Study to fruition. Subsequent to the submission of the Fiscal Year 2020-2024 Capital Improvement Program on January 31, 2019, on March 12'h the Honorable Town Council adopted 29 conceptual recommendations including #19 which reads as follows: • Concur with the decision to proceed with the "Building for the Future" initiative using proposed debt -exclusion funding of the MSBA High School Project for $157,000,000, and not proceed with the $14,177,000 for renovation projects for the high school shown in the FY2020-2024 CIP as STBD (School to Be Determined). On May 8, 2019, the MSBA approved the Town's selection of Compass Project Management as the Owner's Project Manager (OPM) for the High School Project. Subsequently, a contract totaling $343,926 was executed for these OPM services. On September 17, 2019, the MSBA Designer Selection Panel (DSP) voted AB Architects LLC as the first -ranked firm for designer services for the High School Project. The DSP determined that AD Architects LLC possesses the requisite skills and experience for this project, particularly in light of their extensive experience in the design and construction of schools in Massachusetts. The DSP indicated the Town should take the appropriate local steps necessary to award the contract for designer services. Subsequently, a contract totaling $1,131,900 was executed. The School Building Committee working with AD Architects LLC has been working on the MSBA "Feasibility and Schematic" process which is broken down into three phases: 1. Preliminary Design Program 2. Preferred Schematic Study & Report 3. Schematic Design The Preliminary Design Program documentation was submitted to the MSBA in February 2020 for their approval to proceed to the next step, Preferred Schematic Study and Report. 14 Following a 2-month pause in the project due to COVID-19, the Project Team and School Building Committee reconvened regular meetings in May of 2020 and continued development of a total of (5) options and (13) schemes. These schemes explored projects ranging from just upgrading the existing school to current codes (required by MSBA, phased addition/renovation options of the existing high school, phased new construction just on the high school site, phased new construction using the both the Phillip's site and the high school site, and lastly phased new construction using Victory Field. These options/schemes were presented to the School Building Committee over a total of virtual SBC meetings, as well as presented to the Community on (3) virtual Community Forums. On December 2, 2020, the School Building Committee unanimously voted to proceed with the Preferred Option 3D-4 of phased new construction using both the Phillips and existing high school site, and authorized AB and Compass Project Management to submit the Preferred Schematic Study and Report (PSR) to the Massachusetts School Building Authority (MSBA) on December 29, 2020. The project is currently under review with the MSBA in anticipation of approval at the May 2021 Board Meeting. The PSR submission completes the Feasibility Study Phase for the Watertown High School project, after which the project will proceed into Schematic Design. The Honorable Town Council's Fiscal Year 2022 Budget Policy Guideline II.A. reads as follows: • Continue support for Building for the Future Initiative funding in collaboration with the School Building Committee, for the Three Elementary Schools project, and for the MSBA High School project with proposed debt exclusion funding in conjunction with outreach efforts to the community by the School Committee. As a follow-up to that Budget Policy Guideline and at this point, the $200,000,000 in the Fiscal Year 2021-2025 CIP has been included in the Fiscal Year 2022-2026 Capital Improvement Program for the High School & related costs with a funding source of a Proposed Debt Exclusion and a MSBA Grant. Given all of the above and the ongoing review with the MSBA, discussions will continue on how best to proceed and the High School & related costs may be amended. After completion of Schematic Design in late Fall of 2021, the Town would then be seeking a Debt Exclusion vote. Street and Sidewalk Improvements Street and sidewalk maintenance is one of the top priorities in the Honorable Town Council's Fiscal Years 2009 through 2022 Budget Policy Guidelines. Within the Fiscal Year 2022-2026 CIP, $105,333,400 is designated for street and sidewalk improvements. The Fiscal Year 2021 General Fund Budget includes $1,114,600 to augment projected Chapter 90 monies. Beginning in Fiscal Year 1999 and including Fiscal Year 2021, the Honorable Town Council. has approved $16,269,844 for the Street and Sidewalk Improvements appropriation, an average of $707,385 for each of the twenty-three fiscal years. Beginning in Fiscal Year 2013 and continuing tlu-ough Fiscal Year 2017, the honorable Town Council authorized four (4) Loan Orders totaling $13,100,000 to fiend Street and Sidewalk Improvements. 15 On September 26, 2017, the Honorable 'Town Council approved a Proposed Loan Order totaling $975,000 to fund Street and Sidewalk Improvements related to the Common Street Project (Mt. Auburn to Orchard Street). On June 5, 2018, the IIonorable Town Council approved a Proposed Loan Order totaling $2,500,000 to fund street and sidewalk improvements contained in the Fiscal Year 2018 CIP. On September 10, 2019, the Honorable Town Council approved a Proposed Loan Order totaling $2,500,000 to fund street and sidewalk improvements contained in the Fiscal Year 2019 CIP. On February 25, 2020, the Honorable Town Council approved a Proposed Loan Order totaling $2,500,000 to fund street and sidewalk improvements completed in the Fiscal Year 2020 CIP. On October 27, 2020, the IIonorable Town Council approved a list of streets to be included in the Fiscal Year 2021 Road Program. A Proposed Loan Order totaling $2,500,000 will be brought forward next month to fund these Street and Sidewalk Improvements. As a follow-up to an adopted conceptual recommendation on the Fiscal Year 2019-2023, Fiscal Year 2020-2024 and Fiscal Year 2021-2025 Capital Improvement Programs, a Proposed Loan Order for $325,000 will be brought forward for the Community Path design from Saltonstall Park to Taylor Street, subject to coordination with the parking meter upgrades in the municipal parking lots; and policy guidance from Town Council's Public Works Committee. Subsequent to this design, $3,000,000 is included in the Fiscal Year 2020 CIP for construction of the Community Path. In accordance with an Action Item adopted by the IIonorable Town Council at their January 8, 2019 Town Council Meeting, five future Loan Orders totaling $7,500,000 for "collective roads and longer streets" have been included in the Proposed Fiscal Year 2022-2026 Capital Improvement Program. Five future Loan Orders for Street and Sidewalk Improvements totaling $20,900,000 are included in the Proposed Fiscal Year 2022-2026 CIP. The following is the schedule of Proposed Loan Orders for Street and Sidewalk Improvements: Fiscal Year 2022 $ 4,300,000 Fiscal Year 2023 $ 4,000,000 Fiscal Year 2024 $ 4,300,000 Fiscal Year 2025 $ 4,000,000 Fiscal Year 2026 $ 4,300,000 TOTAL: $20,900,000 In summary, beginning in Fiscal Year 2013 and continuing through Fiscal Year 2026, the Honorable Town Council has or is planning on authorizing loan orders for Street and Sidewalk Improvements totaling $51,300,000 over the fourteen fiscal years, all within the confines of Proposition 2 /z. Capital Projects ,Stabilization Fund As you recall and as stated in the Fiscal Year 2019 Budget Message dated May 1, 2018, the original North East Solid Waste Committee Agreement (NESWC) expired in September 2005 and the Town has executed three Post 2005 Agreements through Fiscal Year 2020. As a result of these actions and the foresight the Town had in funding the significant costs of the NESWC Agreement, transfers of $500,000 annually from the Capital Projects Stabilization Fund began in Fiscal Year 2006 and will continue through Fiscal Year 2020. 16 In order to continue the annual transfer of $500,000 beyond Fiscal Year 2020, we looked for opportunities to make transfers to this Stabilization Fund in an effort to support Capital Projects. On July 10, 2018, the Ilonorable Town Council appropriated $500,000 to this Stabilization Fund in order to continue the annual transfer of $500,000 through Fiscal Year 2021. On October 23, 2018, the Honorable Town Council approved a Proposed Amendment to the Fiscal Year 2019 Budget that included an appropriation of $500,000 to this stabilization fund in order to continue the annual transfer of $500,000 through Fiscal Year 2022. On June 25, 2019, the Honorable Town Council appropriated $500,000 to this Stabilization Fund in order to continue the annual transfer of $500,000 through Fiscal Year 2023. On November 12, 2019, the Ilonorable Town Council approved a Proposed Amendment to the Fiscal Year 2020 Budget that included an appropriation of $500,000 to this stabilization fund in order to continue the annual transfer of $500,000 through Fiscal Year 2024. On July 14, 2020, the Honorable Town Council appropriated $500,000 to this Stabilization Fund in order to continue the annual transfer of $500,000 through Fiscal Year 2025. In order to continue the annual transfer beyond Fiscal Year 2025, we will look for opportunities to make transfers to this Stabilization Fund in an effort to support capital projects. CLOSING In addition to all of the above -mentioned Capital Projects, I respectfully recommend discussion continue in accordance with the Honorable Town Council's conceptual recommendation #28 on the Fiscal Year 2021-2025 CIP which reads as follows: 28. Concur with the Town Manager's recommendation for the Town Council to continue discussion on the following items: • Reuse of Town Buildings (Former North Branch Library & Former Police Station) • Record Storage Management & related issues • Department of Public Works Staging Areas • Acquisition of Land for open Space and/or Recreation use. I respectfully recommend discussions also continue with the Honorable Town Council regarding integrating additional improvements in Fiscal Years 2022-2026 including but not limited to the potential renovation/reconstruction of school facilities, and at the same time, looking to identify how best to fund these improvements. I look forward to working with the Honorable Town Council in their adoption of conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program. cc: Honorable School Committee Honorable Library Board of Trustees School Building Committee All Department heads 17 Watertown Town Council Administration Building 149 Main Street Watertown, MA 02472 Phone: 617-977,6470 ELECTED OFFICIALS: Mark S. Sideris, RESOLUTION # �%`r 2020 — R — Council President Vincent), Piceirilli, Jr., RESOLUTION ON THE FISCAL YEAR 2022 BUDGET PROCESS Vice President & District C Councilor WHEREAS: Article 5 of the Watertown I-lome Rule Chatter sets out a process for the Caroline Bays development and adoption of the annual operating budget and capital improvement Councilor At Large program; and Anthony J. Donato, Councilor At Large WHEREAS: The Town Council wishes to establish a timeline, consistent with the Charter, by which it will provided policy guidance to the Town Manager on the Susan G. Fat Larofr,ge Councilor At Large development of the budget and capital improvement program; and p g p p� p g Anthony Palomha, WHEREAS: Such a timeline will also give town residents notice of their opportunity Councilor Al barge to offer input on these impot•tant financial matters; Angeline B. Kounelis, District A Councilor NOW THEREFORE BE IT RESOLVED: That the Town Council of the City known LisaJ. Feltner, as the Town of Watertown establishes the following timeline for the development of the District B Councilor Fiscal Year 2022 operating budget and capital improvement program: D strut count toand, I . The Fiscal Year 2022 Preliminary Budget Overview will be presented to the Town Council by October 13, 2020. 2. The Town Council will adopt its Fiscal Year 2022 Budget Policy Guidelines by November 24, 2020. 3. The proposed Fiscal Year 2022-2026 Capital Improvetnent Program will be presented to the Town Council by January 26, 2021. 4. The Town Council will adopt its conceptual recommendations on the Fiscal Year 2022-2026 Capital Improvement Program by March 9, 2021 subject to the availability of funds. �Z1 i�/ `l I hereby certify that at a regular meeting of the Town C ncil for which a quorum was present, the above Resolution was adopted by a vote of 7 for, Clagainst, and lJpresent on September 8, 2020. Marilyn Pronovost, douncil Clerk Mark S. i ris, 06uncil President ELECTED OFFICIALS: Mark S. Slderle, Council President Stephen P. Corbett, Vice President John A. Donohue, Councilor At Large Susan G. FalkoN, Councilor At Large Anth6y Pelomba, Councilor At Large Angeline B. I(ounells, District A Councilor Cecilia Lank, District B Councilor Vincent J. Plccirllli, Jr., District C Councilor Kenneth M. Woodland District D Councilor Watertown Town Council Administration Building 149 Maln Street Watertown, MA 02472 Phone; 617-972-6470 Resolution# 2013- .16 Resolution; Watertown's Ongoing Capital Project Budget Guidelines WHEREAS the Town Council adopts budget policy guidelines each year pursuant to Section 5-1 of the Watertown Homo Rule Charter, so that the Town Manager can develop budgetary goals anti the Town budget for the next fiscal year, and • WHEREAS in the Fiscal Year 2014 budget policy guidelines, Attachment A "ADDITIONAL RECOMMENDATIONS ON CAPITAL PROJECTS" was included to use the Town's capital project funds in the most efficient maimer, and to improve the efficiency and transparency of the Capital Improvement Program (CIP) process, and WHEREAS these recommendations have become standard operating procedure for the Town of Watertown, and do not need to be revised each year. NOW THEREFORE BE IT RESOLVED that the Town Council of the City•lulown as the Town of Watertown hereby establishes the following recommendations on capital projects as permanent budget policy guidance, to be followed annually: 1. Status of existing capital finds and projects: As part of the Janxiaty CIP submission by the 'own Manager, include from each department, a listing of all existing unspent capital funds (including Chapter 9Q, developer mitigation, grant funds, etc.) acid a status on each project or acquisition, including how and when reninining funds will'bespent, effective November 30th. a. Include project fttucls appropriates) by the Town Council to the School Department. b. Inclucle Water/Sewer Enterprise Fund reporting of capital, projects & finds as a new section of the CIP separate from the General Fund, 2. Details on new proieots: As part of the January CIP submission by the Town Manager, provide details for all items in the CIP that have been previously shown as annual ltltrtp sums in a single line. a. Include the School Department's "varlous school improvements". b. Include "highway reconstruction" and "sidewalk reconstruction", with a forecast of streets to be done eacli year. c. Inclucle Water/Sewer Enterprise Fund capital projects as a new section of the CIP. separate ftom the General Fund, with a forecast of streets to be clone each year. d. Includo transportation or water/sewer and stormwater* projects which have or will be proposed in the future, with no fr.inding source yet identified. 3. Coordination Issues Related to Public Works projects; The increasing volume and complexity of public works projects requires a rethinking of how file Town does its planning to maximize the use of capital funds' and departmental resources, as well as providing information to the public in a timely, readily accessible fashion. a. To this end, the CIP'ueeds to have a five-year forecast of what water/seiver/stormwater, road reconstruction, and sidewalk reconstruction ace planned, by specific street, which will: i. Insure that work is sequenced to obtlin the nnaxinlunl life from road and sidewalk reconstruction without major water/sewer work compromising their integrity. ii. Allow utility companies adequate time to plan underground service replacements prior to road and sidewalk reconstruction, to avoid compromising their integrity. iii. Allow time for the Zoning Enforcement Office to notify property owners of non- conforming driveways, while giving the owners adequate time to seek a variance. iv. Allow developers time to plan their projects in coordination with the Town, and avoid digging up newly installed roads and sidewalks. v. Allow abutting homeowners, who may want to pay for granite curbs on streets scheduled for asphalt curbs, time to arrange contracting and payment. vi. Allow time for the Tree Warden to notify abutters who may want a street tree in front of their properly, to allow for the placement of a tree pit prior to the installation of a new sidewalk. vii. Provide more transparency to citizens on public works projects and spending. viii. Allow the Public Works Connlittee or other appropriate conunittee adequate time to review the proposed work and provide policy guidance on the above as it relates to Watertown's goals. b. Issues of coordination and timing need to be improved to insure the most efficient use of fiiiuls, and bonding of animal street construction projects should be coordinated with bidding such.that contractors call begin by April and be completed by November. c. The Public Works Departnient should address, on all ongoing basis: i. Assure adequate supervisory capacity to eliminate decision bottlenecks and improve timeliness of responses for�conis(cuction Work. ii. Notification to the public of what construction is happening and where and when it will occur must be improved, and should be available on tine website and updated regularly. ill. Improve'colipletion of punch list items on projccts needs to be improved, including painting of roadway markings, installation of traffic signs, removal of temporary construction signs, cleanup of construction debris, etc. 4. Protection of investments: With millions of dollars being spent each year in Watertown on street and sidewalk construction, the administration should take a more aggressive role to protect the value of these investments to insure that maximum life is obtaincd from the new surfaces. BE IT FURTHER RESOLVED that this resolution shall be incorporated by reference into tl&e annual budget policAuidelines that fire adopted each year, Council I hereby certify that at a regular meeting of the Town Council for which a quorum was present, the above Resolution was adopted by unanimous voice vote on December 9, 2013, Vale&' Papas, Coin&cil Clerk Marls S. 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