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HomeMy Public PortalAboutCapital Planning Committee -- 2022-02-03 MinutesTown of Brewster 2198 Main Street Brewster, MA 02631 Capitalplanning@brewster-ma.gov Phone: (508) 896-3701 MINUTES OF CAPITAL PLANNING MEETING DATE: February 3, 2022 TIME: 10:00 AM PLACE: Remote Participation - Office of: Select Board Town Administrator REMOTE PARTICIPANTS: Bill Schirmacher, Town Administrator Peter Lombardi, Treasurer/Collector Lisa Vitale, Assistant Town Administrator Donna Kalinick, Ross Gorman, Cynthia Caldwell Call to Order, Declaration of a Quorum and Meeting Participation Statement Bill Schirmacher called the meeting to order at 10:01am. A quorum was declared, and the meeting participation was read. Public Announcements and Comment None Election of Officers Completed last meeting. Continued Review of Draft FY2236 Capital Improvement Plan & Discussion of Spring 2022 Capital Requests Mr. Lombardi reviewed that there are a few decision points that need to be made in terms of refining the plan. The first and most important is deciding on what capital request to include on the warrant this spring for Town Meeting, then to look at FY23 & FY24 as we are significantly above where we would like to be in terms of use of free cash to cover our capital needs. Mr. Lombardi reviewed the capital improvement plan spreadsheet and noted that items in yellow are capital requests anticipated to be put on the warrant for spring town meeting. The items in red text are what has changed and what needs to be discussed. Items for Warrant: • Public works and recycling center site assessment at $70k- reappropriation of existing funds, no net impact. Does require Town Meeting vote. • Facilities- moved the room 'divider for Town Hall out to FY23 • Library- pushed out the actual replacement of the elevator, roughly estimated at $300k to FY23. Added a new appropriation of $30k as the design costs for the project. Assumption is that the Town will cover with free cash up to $20k of the expense and the Ladies Library Association will cover the remaining $10k. Town Administration will discuss with the Library Association Board can support this amount and to discuss the initial assumptions about funding the actual construction, which in this plan assumes the Town will cover $225k and the Library Association would cover the other $75k for the elevator. ,..��,,•• f{E.VVgr"G,,,,, Town of Brewster - Office of: °Q O� ELPER 6� `%� SelectBoard 2198 Main Street Brewster, MA 02631 Town Administrator 3 a a = Capitalplanning@brewster-ma.gov ° _ _ CO CO Phone: (508) 896-3701 minuaa�a\�`\�`�oo°�\\ • Department of Natural Resources: o Beach and Landing Repairs and improvements- reduced by $15k from previous capital articles. Major cost is related to sand nourishment due to erosion. o Long Pond Boat Ramp project is moving along, received updated cost estimates for the project, we have a placeholder of $80k. There is a prior appropriation to cover engineering and partial construction of $75k unencumbered, looking to supplement this with another $350k appropriation. The actual construction is estimated to cost about $410k, includes a .20% contingency. Proposed in the plan is that $125k be funded by ABPA, and another $225k from free cash. o Wildfire Management- no changes at $10k • Select Board: o Integrated Water Resource Planning/Implementation remains at $75k o Drummer Boy Park Master Plan update- Design and Permitting- had a placeholder amount at $50k, received an updated estimate and increased to $75k, includes hiring a structural engineer to look at the bandstand as well as the structure adjacent to the playground. • Schools. o Three standing combined capital articles: technology, HVAC, plumbing and electrical and painting. There are previous articles with balances of $67k+. We have asked to either reduce or push out to next fiscal or use another funding source. o New technology infrastructure at Eddy; asked for supporting details and possible other funding sources. o Stony Brook boiler and unit ventilator design and replacement this is critical to move forward. • Water Department: o No changes, capital requests are coming from water retained earnings. • Golf Department -26 items on the capital plan, these items stem from the National Golf Foundation review of the business model. A consulting firm has been hired to specifically look at the irrigation system. The Golf Commission and staff have worked with Town Administration to build a capital plan that is aligned with the recent studies. o Additional clubhouse window and door replacement -there was funding at fall town meeting of $70k appropriated for this line item, with an updated cost estimate, it is just over $200k. o Maintenance Building study- looking for a small appropriation to develop the scope of work and understand existing conditions and what the operational needs are. o Additional HVAC/boiler upgrades- there was an $80k appropriation at fall town meeting for upgrades to HVAC and boiler, there have been a lot of problems with these systems. An engineering firm was hired to identify solutions, based on the results, looking for another $150k to complete the work. o $320k in total for this coming Spring, brings the total amount used from reserve funds a little under $900k. Consistent for the next 4 fiscal years for capital requests. Mr. Lombardi reviewed were we currently stand, for free cash appropriations for this Spring, including the Long Pond Boat ramp, is a little over $700k, ideally, we want to be no higher than $600k. The total free cash il�j�ii ijil�j 'Fl•I,kiPcu ,,,,,-• 7Cowri of Brewster 2198 Main Street Brewster, MA 02631 Capitalplanning@brewster-ma.gov Phone: (508) 896-3701 Office of: Select Board Town Administrator appropriation for capital is at $3.4M, does not account for the $200k that Town meeting appropriated for interim costs associated with the maintenance and upkeep of the Sea Camps properties (for operating expenses for the remainder of the fiscal year), so the total appropriated is $3.6M. Free Cash was certified this year at $4.5M, which would leave us with a $900k balance, however we would want to be closer to $1M, which is consistent with the financial reserves policy. The possibility to reduce or remove the $1501< from the schools will help get us to where we need to be, hope is to know in the next week. Regarding the elementary school feasibility study, there are two considerations, The first is that based on current enrollment and projections it is conceptually possible to combine the two schools. The most cost- efficientway to do this is at the Stony Brook school. If all grades are located at Stony Brook, PreK- grade 5, the report identifies another $900k in upgrades and expanded learning space that would be necessary. If the PreK were to stay at the Eddy School, there wouldn't be major capital costs to consolidate. The report separately identifies about $4M in facility upgrades at both schools that are not included in the elementary school capital plan. At this point, we will need an answer from the school on the capital plan items before any changes are made. Mr. Lombardi reviewed the additional items highlighted in read on the spreadsheet, noting that our target for free cash appropriations year over year are in the vicinity of $1.75M. For fiscal years 23 and 24 we are at $2.8M for both. The following Departments were reviewed for major capital expenses: • DPW — $100k in FY22 for aone-ton dump truck, already pushed out a year, will see if we need to push one more year. In FY24 $225k for a new loader and backhoe, looking to move this out a year or two as well • Police- the dispatch console, cell tower funds (currently at over $300k) might be able to be used to help cover some of the costs. • Library- still need to know more about the elevator replacement and construction project. • Natural Resources o FY23-Freemans Pond Culvert Wing Walls, a local match component to the project, assumed to be a little over $100k non-federal match. Looking into whether there is state grant funding available. o FY24- Bike Trail Extension to Linnell at $800k and the Wing Island Boardwalk Construction at $500k, not assuming any'are covered with Town funds. No funding source for the Linnell Landing project, waiting for state funding. o Low lying road improvements $100k placeholder, public forum is in a couple of weeks, could be moved out. Mr. Gorman asked if we have created in the budgets the maximum amount of free cash allowed bylaw as far as raising taxes. Mr. Lombardi responded that free cash is essentially comprised of three things, unappropriated balance of free cash from the previous year, any revenues over and above what was projected from operating budget and the any unexpended appropriations. The Town has been consistent in certifying free cash at over $3M. Adding that if closing out every year at over $3M and we want to end up at a $1M balance, we can afford to use about $1.75M of free cash. Mr. Gorman stated that if we are trying to Capital Planning 02.03.2022 www.brewster-ma.gov Page 3 of 5 „��./ • i►;I�1,1 (�j�t=i 4�b[bii�, `ca ;:::. �: _, , = `. ` , Town of Brewster 2198 Main Street Brewster, MA 02631 Capitalplanning@brewster-ma.gov Phone: (508) 896-3701 Office of: Select Board Town Administrator generate more free cash, we are talking about reducing capital expenses but not increasing revenue. Asking if we have increased in the assumptions in FY23 & 24 the maximum take revenue? Mr. Lombardi answered that if we do that it has an inverse affect, if you increase your revenue projections closer to previous year actuals, what this means that you will typically close out less to free cash as there isn't much of a difference between projected and actual revenues. Noting that it is important to be conservative in revenue projections. Major Capital Projects for FY23 &24 Cont'd: • Select Board - o Innovative Alternative Septic pilot program- assumption is that all $300k is going to be funded with free cash but looking to possibly opt out of the Cape Cod Islands Water Protection Fund, if so we will be able to use some of the alternative version of the program to fund some or all of this project as well as the septic upgrade at the golf course set for FY25. o Drummer Boy Park Master Plan phase 1 & 2- back up cost estimates have been provided for this project, we are carrying $750k in FY23 and another $750k in FY24. The assumption now is that all will be covered by free cash. Phase 1 work is important to keep,in FY23 for construction. Some of phase 2 may be eligible for CPC funding, and perhaps some of phase 1. We will consider the use of ARPA funds and issuing short-term debt, both have challenges. Regardless of if we do move forward with the project, there needs to be a combination of funding sources and financing strategies to make it all work. • Schools o Over $600k for the new boiler and unit ventilators at Stony Brook, about a thrid of which is anticipated to be covered by MSBA or Green Communities and the remaining by free cash. o In FY24 $250k for resurfacing the Eddy school parking lot, possible it could be pushed out to FY25. Mr. Lombardi noted that this was record year for CPC revenues, a state match that started at 100% when we first adopted the statute, got down as low as 15% or so. In recent years the State put a new influx of state revenues and this year had surplus. We typically bring in about $1M in revenues between the local property tax surcharge and the state match. For FY23 we are at $1.1M a little high, when looking at what is included in the formula, the major driver is the Millstone Road Housing project, assuming a $7501< from CPC and $250k from the Housing Trust. Ms. Kalinick added that the proposals received are under review and expects the process to be completed in March and a recommendation will be made to the Select Board. Planning on a joint meeting with the CPC on how future housing request and how this request will be handled. Discussion regarding the Trusts funding process took place to see if the numbers will need to be adjusted. Mr. Lombardi mentioned that there is no plan to use funds from capital stabilization until 2026, with an assumption of $2.5M for the library renovation project. We have been including funding in the operating budget to transfer funds to this account from a portion of short-term rentals, at least 25%. For next fiscal another appropriation plan to bring the balance up to $1.025M, a resource that we have with the idea to be used for major capital. Capital Planning 02.03.2022 www.brewster-ma.�ov Paye 4 of 5 \\�o\\\\��� � � lry,� •�°,aiiiii r o Office of: ' ��®� o� FIGER gH,F�% wf!rn � ��rewster Select Board 2 r �� � 2198 Main Street Brewster, MA 02631 Tovvn Administrator 3 � a a = Capitalplanning@brewster-ma.gov r — __ �` Phone: (508) 896-3701 //////�%///// EB RPB R'BE \\\\\\\\\�\\\\� //llll 1111 I I I I I I I I I11\\\\ In terms of Golf Department, a fair amount of new capital requests that have been included: • Maintenance Building Design at $100k in FY23. Assuming the maintenance building replacement is a placeholder of $1M and assuming issuing a 10 -year short term debt at 3% interest rate. In the FY23 budget and what is planned for FY24 we would have at least $400k in the captain's golf operating budget that can be transferred to a new golf stabilization fund. The fund would be up to $800k by the close of FY24, maybe able to use these funds to cover some, if not all the cost of the maintenance facility. Also $25k for construction management/oversight in FY24. • Sink Hole repairs, added another $20k for material in FY23 • Kitchen equipment replacement $25k approved by town meeting this Spring, added $15k in the out years. • Clubhouse painting in FY23 increased to $45K • Pumphouse protection project early estimates have the costs at $150k, with a $10k appropriation from this past fall that will help. • Tree work &grinding at $20k in FY23 &FY24 • Irrigation replacement project, most significant on the horizon, added$45k in FY23 for design of the work. In FY25 & 26 first debt payments of $300k each, total project cost is assumed at $4.7M. Assumed funding source is debt and capacity in the Golf Dept budget to cover the new debt. $45k in FY25 & 26 for construction administration oversight. • Tee box renovations, pro shop furnishings, clubhouse surroundings/theme enhancements and driving range improvements, all new and all recommendations for the National Golf Foundation to improve user experience. Matters Not Reasonable Anticipated by the Chair: None Next Meetings: February 10, 2022 at 10am. Adjournment Mr. Lombardi moved to adjourn at 11:21am. Ross Gorman second. All in favor. Respectfully submitted by Erika Mawn, Executive Assistant Accompanying Documents: Town of Brewster Draft FY2022-FY2026 CIP Five Year Plan Capital Planning 02.03.2022 www.brewster-ma.gov