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Home My Public Portal About1 11 23 FinCom Packet Jt w Select Board Town of Brewster Finance Committee 2198 Main St., Brewster, MA 02631 fincommeeting@brewster-ma.gov (508) 896-3701 JOINT MEETING AGENDA FINANCE COMMITTEE & SELECT BOARD Remote Participation Only January 11, 2023 at 6:00 PM Pursuant to Chapter 107 of the Acts of 2022, this meeting will be conducted in person and via remote means, in accordance with applicable law. This means that members of the public body may access this meeting in person, or via virtual means. In person attendance will be at the meeting location listed above, and it is possible that any or all members of the public body may attend remotely. No in-person attendance of members of the public will be permitted, and public participation in any public hearing conducted during this meeting shall be by remote means only. Members of the public who wish to access the meeting may do so in the following manner: Phone: Call (929) 436-2866 or (301) 715-8592. Webinar ID: 862 2956 9696 Passcode: 565167 To request to speak: Press *9 and wait to be recognized. Zoom Webinar: https://us02web.zoom.us/j/86229569696?pwd=MUhJNGpoU3VocTZ0cTU0VGpYcWdVQT09 Passcode: 565167 To request to speak: Tap Zoom “Raise Hand”, then wait to be recognized. When required by law or allowed by the Chair, persons wishing to provide public comment or otherwise participate in the meeting, may do so by accessing the meeting remotely, as noted above. Additionally, the meeting will be broadcast live, in real time, via Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brewster-ma.gov), or Video recording (tv.brewster-ma.gov). Finance Committee Harvey (Pete) Dahl Chair Frank Bridges Vice Chair William Meehan Clerk Andrew Evans William Henchy Alex Hopper Honey Pivirotto Robert Tobias Robert Young Town Administrator Peter Lombardi Finance Director Mimi Bernardo 1. Call to Order 2. Declaration of a Quorum 3. Meeting Participation Statement 4. Recording Statement 5. Public Announcements and Comment: Members of the public may address the Finance Committee on matters not on the meeting’s agenda for a maximum 3-5 minutes at the Chair’s discretion. Under the Open Meeting Law, the Finance Committee is unable to reply but may add items presented to a future agenda. 6. Town Administrator/Finance Director Report 7. Presentation of FY23-27 Capital Improvement Plan, including supplemental FY23 Capital requests – Finance Team 8. Nauset Regional High School Project – Discussion 9. Nauset Regional High School Budget - Discussion 10. Liaison Reports and Assignments 11. Approval of Minutes 12. Request for agenda items for future meetings 13. Matters Not Reasonably Anticipated by the Chair 14. Next Finance Committee Meeting 15. Adjournment Date Posted: Date Revised: Received by Town Clerk: FY23-FY27 CAPITAL IMPROVEMENT PLAN (CIP) PETER LOMBARDI, TOWN MANAGER MIMI BERNARDO, FINANCE DIRECTOR DONNA KALINICK, ASSISTANT TOWN MANAGER TOWN OF BREWSTER, MASSACHUSETTS JANUARY 11, 2023 AGENDA •Five-Year Capital Improvement Plan Overview •All Funding Sources Summary •Planned Free Cash Investments •Nauset & Brewster Elementary Schools Detail •Spring 2023 Capital Requests •Telling Our (Capital) Stories 01/11/23 FY23-FY27 TOWN OF BREWSTER CIP OVERVIEW •Major Projects •Nauset Regional High School Renovation ($170M total) •Stony Brook School Roof & HVAC ($11+M) •Millstone Road Improvements ($5.75M) •Captains Maintenance Building & Irrigation System ($10.5M) •Rail Trail Extension to Linnell Landing ($1.9M) •Millstone Road Community Housing ($1M) •Ongoing Commitments •Integrated Water Resource Management Planning •Fleet, Facilities, and Equipment Re-investments •Remaining Policy Questions •Drummer Boy Park Improvements •Wing Island Access Improvements •Community Center •Future Cape Cod Sea Camps Projects 01/11/23 TOWN OF BREWSTER 5 YEAR CIP OVERVIEW 01/11/23 BREWSTER MAJOR CAPITAL FY23-27 (1 OF 4) 01/11/23 BREWSTER MAJOR CAPITAL FY23-27 (2 OF 4) 01/11/23 BREWSTER MAJOR CAPITAL FY23-27 (3 OF 4) 01/11/23 BREWSTER MAJOR CAPITAL FY23-27 (4 OF 4) 01/11/23 BREWSTER CAPITAL FUNDING SOURCES SUMMARY •Free Cash is primary funding source of Capital Improvement Plan •Water & Golf Enterprise fund their own capital through Retaining Earnings •Ambulance Receipts fund majority of Fire Department capital •Short-term debt is paid within levy •Excluded debt expected to increase significantly due to planned school projects •Funding sources are diversified and sustainable •Town maximizes state and federal grant opportunities •No anticipated use of Capital Stabilization fund in next 5 years 01/11/23 BREWSTER CAPITAL FUNDING SOURCES SUMMARY 01/11/23 FREE CASH INVESTMENTS POLICY & HISTORY •Financial Reserves Policy targets certified Free Cash balance of 5-7% of annual General Fund Operating budget ($2.3M - $3.2M) •12-year Free Cash average = $2.9M •$4.5+M Free Cash balances in FYs 21 & 22 due to higher-than-expected revenues during pandemic •Town has built its Capital Stabilization fund ($925k current balance) •Target annual Free Cash appropriations on capital = $1.75-2M •Target Free Cash year-end balances of 2-2.5% of annual General Fund operating budget ($1-1.2M) 01/11/2023 5 YEAR FREE CASH INVESTMENTS 01/11/2023 NAUSET REGIONAL & BREWSTER SCHOOLS FY23-FY27 CAPITAL •Annual Brewster debt payments for Nauset High School Renovation Project - $4.25M, starting in FY24 •Annual Nauset Regional capital allocation - $275+k, with 2.5% annual escalator (raised through tax levy) •Major Stony Brook Elementary HVAC & roof projects will require debt exclusions and may trigger other mandatory code upgrades •Eddy School needs siding replacement & repaving parking lot and sidewalks •Ongoing annual requests from elementary schools include funding for painting, flooring, technology, and plumbing/HVAC repairs •Brewster School Committee to vote on updated 5-year plan on January 18, 2023 & school officials to present capital request details to Town during upcoming budget meetings 01/11/23 NAUSET REGIONAL & BREWSTER SCHOOLS 5 YEAR CAPITAL •Debt payments for Nauset High School Building Project 4.25 Million annually •NRSD receives annual capital allocation from district towns, increases by 2.5% annually, raised on through tax levy, $278, 577 Brewster’s share •Stony Brook Elementary has major capital needs: Replace HVAC system, replace rubber roof-Both projects will need to be debt excluded •Ongoing requests annually from BES include money for painting, flooring, technology and plumbing/HVAC repairs •Eddy School requests include replacing siding and replacing parking lot 01/11/23 SPRING 2023 CAPITAL PROJECTS •Majority of capital requests funded at Fall Special Town Meeting ($2M of $3M total) •Town Meeting approval needed for most, but not all, projects •Majority of projects funded via Free Cash (exceptions noted in parentheses) •Public Works: Millstone Road design (road bond); Breakwater Rd & Foster Rd repaving (state aid); MS4 compliance; Landfill monitoring; and Cemetery improvements (perpetual care) •Water Department: Ongoing water meter replacement, distribution systems, treatment facilities; Exterior tank painting (all Water Retained Earnings) •Select Board: Cape Cod Sea Camps remediation (ARPA)01/11/23 SPRING 2023 CAPITAL PROJECTS 01/11/23 SPRING 2023 CAPITAL PROJECTS CONTINUED •Natural Resources: Ongoing beach & landing repairs and wildfire management; Walkers Pond water quality improvements; Stony Brook Millsites retaining wall and fishways (75+% federal grants) and Freemans Pond culvert improvements (100% federal and state grant funded) •Elementary Schools: $383k in total, including several major IT investments •Nauset Regional School District: Annual capital allocation (tax levy) •Fire Department: Annual fleet lease payments (Ambulance Receipts) & policy software •Golf: Supplemental funding for clubhouse window and door project (Golf Reserves) •Library: Telephone and IT upgrades •Facilities: Spruce Hill building roof repairs 01/11/23 SPRING 2023 CAPITAL PROJECTS CONTINUED 01/11/23 FREE CASH BALANCES & APPROPRIATIONS •$4.6+M Certified Free Cash as of June 30, 2022 •$2M Free Cash approved at Fall 2022 Town Meeting •~$1M Proposed Free Cash Expenditures for Spring 2023 Town Meeting •$1.65M Free Cash Balance if all capital approved in Spring 2023 •$500k Planned Free Cash Transfer to Capital Stabilization in Spring 2023 •$1.15M Year-end Free Cash Balance (2.3% of annual GF operating budget)* * Target is 2-2.5% per Financial Reserves Policy 01/11/2023 CHANGING THE NARRATIVE WITH CAPITAL STORIES •Finance Team launched Open Gov platform in Winter 2022 with FY23 operating budget: https://stories.opengov.com/brewsterma/published /vNFj7_V0i Goal of continuing to make budget information and processes more accessible and transparent •FY23-27 Capital Improvement Plan is now available in Open Gov on Town website: Click this link to go to the FY23-27 CIP capital projects homepage.Capital stories are organized by department – provide project narratives, proposed funding mechanisms, and anticipated timing details 01/11/23 CHANGING THE NARRATIVE WITH CAPITAL STORIES 01/11/2023 CHANGING THE NARRATIVE WITH CAPITAL STORIES 01/11/2023 QUESTIONS? 01/11/2023 Finance Committee Minutes October 19, 2022 Page 1 of 4 TOWN OF BREWSTER FINANCE COMMITTEE Date: October 19, 2022 Time: 6:00 PM MEETING MINUTES Present: Chair Pete Dahl, Robert Tobias, Andy Evans, Honey Pivirotto, Alex Hopper, Bill Meehan, William Henchy Also present: Peter Lombardi, Town Administrator; Mimi Bernardo, Finance Director; Faythe Ellis, Community Preservation Committee Absent: Vice Chair Frank Bridges, Bob Young The Chair called the meeting to order at 6:02 pm and announced a quorum. Pursuant to Chapter 107 of the Acts of 2022, this meeting will be conducted in person and via remote means, in accordance with applicable law. This means that members of the public body may access this meeting in person, or via virtual means. In person attendance will be at the meeting location listed above, and it is possible that any or all members of the public body may attend remotely. No in-person attendance of members of the public will be permitted, and public participation in any public hearing conducted during this meeting shall be by remote means only. Additionally, the meeting may be viewed by: Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brerwster-ma.gov), or Video recording (tv.brewster-ma.gov). 1.Public Announcements and Comment- none 2.Town Administrator/Finance Director Report Peter Lombardi addressed the Committee - General Contractor bids were open for NRHS – the low bid came in $30M over budget. School Building Committee will be meeting next Wednesday for a review and discussion of next steps. The Town Administrators have scheduled a meeting with the Superintendent a couple weeks out now. Pete asked, to clarify – the filed sub-bids are total amount including the filed sub-bids. Pete said he knows how much work the School Building Committee has done on this, as much as we are seeing, there is nothing they could have done on this. Circumstances are just different; it is difficult for them to do the work they wanted to do, and they have his support. Peter Lombardi said, as a follow up, the low bidder is the same firm that did the Tech project, which was a good project, under budget, on time – all the things you’d like to see. There was discussion about updating the project website, and it should be current by next week. Honey asked Peter Lombardi about the $30M over – over the $132M approved? Peter Lombardi answered, yes, that is correct. He expects the total amount to be released next week. If the school officials decide to move forward with the project, the four towns will have to call special town meetings and there is an optional follow up ballot measure. 3.Discussion and Vote on Town Meeting Warrant Articles a.Article 5 (CPC bylaw) – Faythe Ellis b.Article 10 – Local Comprehensive Plan Approved: VOTE: Finance Committee Minutes October 19, 2022 Page 2 of 4 Article 5 – CPC bylaw – Faythe Ellis Faythe Ellis addressed the Committee – this is a new and improved version of this article. Faythe Ellis then presented Article 5 – Town Code Amendment to Community Preservation Act Bylaw. She kept it brief as much of this had been presented before. Alex thanked Faythe Ellis for her presentation and then asked about the 189 communities across the commonwealth who adopted the CPA, how many adopted the statutory formula? Faythe Ellis answered 188 use the statutory formula. Robert said he supports the article. One thought he had was the unbudgeted reserve was not available to Open Space as it stands currently. Under the new guidelines, it could be 75%. It is not a raw deal for Open Space but an improvement in the flexibility to fund Open Space projects. Bill Henchy asked about the Target Allocation Policy (TAP) – the policy itself. He voted for the article in the spring, but the debate at Town Meeting changed his mind slightly – how is it that the original allocation came to be 50% to Open Space? Peter Lombardi said Brewster had adopted the Land Bank and CPA was passed after that. The way it was originally proposed was a 1 to 1 match with state funds. The idea at the time was that Brewster had taken on debt for conservation purposes to be financed by the land bank. We were essentially bringing in the same amount of revenues and 50% were directed to Open Space – we would be bringing in the same exact match for Open Space. We had to maintain that allocation until all the debt was retired or paid off. Bill Henchy asked if it is the committee’s belief that rationale is no longer necessary going forward and additional flexibility is preferred. Faythe Ellis answered that they believe the added flexibility will benefit the other projects that are coming our way. Bill Meehan supports this amendment – community preservation is not limited to the acquisition of open space. We have done a remarkable job historically of obtaining open space. Community housing, recreation and historical preservation are all noble goals. He trusts the CPC to make good decisions going forward. We are not taking money away from our ability to acquire open space. Faythe Ellis said the final point is that the CPC just recommends to Town Meeting – the final decision comes to Town Meeting to make. Pete said there is nothing to prevent us to move those percentages around to help fund those open space needs. Flexibility is a good thing. He is supportive as is Bill Henchy. Peter Lombardi wanted to say that the Target Allocation Policy is not only non-binding but that it isn’t meant to be applied year to year but cover all five years of the plan. It is intended to give us the most amount of flexibility going forward. Bill Meehan MOVED to approve Article 5 as presented in the Warrant. Bill Henchy second. Roll Call Vote: Bill Meehan – yes, Robert Tobias – yes, Andy Evans – yes, Bill Henchy – yes, Alex Hopper – yes, Honey Pivirotto – yes, Chair Pete Dahl– yes The Committee voted: 7-yes 0-no Article 10 - Local Comprehensive Plan (LCP) Peter Lombardi said we have been talking about this for a while now, the Vision Planning Committee started in 2016 in developing the vision plan. The Local Comprehensive Plan is intended to guide our land use decisions and land use policies for the next 10+ years. There was extensive public feedback including a survey where we saw 25% response rate which is very high. It follows in large part the form of the Vision Plan. There is an extensive action plan with the LCP - 100+ action items that are recommended for consideration. The Select Board voted unanimously to recommend this article to Town Meeting. Pete said that he feels it is very comprehensive – it’s hard to disagree with a lot of what’s included in there. The work that was done was incredible, incredible public participation, very well organized to lead you through the process and where it will look over a 5-year period. Bill Henchy asked about the Wing Island Boardwalk and if there is consideration being given to taking those recommendations out of the LCP? He thinks a lot of extraordinary work would be placed unnecessarily at risk if not. It would be wise to take that step. Peter Lombardi said there were several Finance Committee Minutes October 19, 2022 Page 3 of 4 residents who raised the project as an issue of concern, and they expressed the same concerns. Ultimately the Planning Board and the Select Board chose not to make changes, and it was adopted as presented. He said we are in the process of putting information on the website to respond to questions. The LCP is going to be an important roadmap, but it isn’t a requirement, it is intended to be high level in its policy direction. If Town Meeting adopts the LCP and if the town decides to submit it for certification to the commission, if the commission certifies, we do have obligations to make sure our zoning bylaws are consistent with what is in the LCP. But there are many other considerations that are not land use policy related where we are not putting ourselves in a position that we must proceed forward. If the project is or is not included, it won’t fundamentally change the process or outcome relative to that issue. Bill Meehan thinks this is a remarkable piece of work, he supports it fully, this is not a one issue piece of work. Pete said he is a profound supporter of the work of Town Meeting, removing any of the references to the work of past Town Meetings would be counterproductive. He respects Town Meeting that much. Peter Lombardi said this issue, this project, is front and center today, but there are 100+ action items in this plan, any one of them may be as controversial or more controversial and that doesn’t mean it isn’t a good plan and shouldn’t be adopted because there will be a public process for each of those issues as we go forward. Bill Meehan MOVED to approve Article 10 as presented in the Warrant. Bill Henchy second. Roll Call Vote: Bill Meehan – yes, Robert Tobias – yes, Andy Evans – yes, Bill Henchy – abstain, Alex Hopper – yes, Honey Pivirotto – yes, Chair Pete Dahl– yes The Committee voted: 6-yes 0-no 1-abstain a.Liaison Reports and Assignments Bill Meehan said the Bay Parcel Planning Committee met yesterday. Progress has been made on securing a consultant. The committee reviewed the warrant articles relating to the parcel, and the committee decided that because both the FinCom and Select Board had recommended approval, they voted their sentiment in support of that position. Griffin Ryder from the DPW went into detail about parking facilities for the pool, and there were questions raised. Griffin Ryder is going to take it back and do a little more work on those questions – space and traffic flow. We are closer to a solution on that. b. Approval of Minutes – 9/28/22 Bill Meehan MOVED to approve the Minutes of 9/28/22 as presented. Alex Hopper second. Roll Call Vote: Bill Meehan – yes, Robert Tobias – abstain, Honey Pivirotto – yes, Andy Evans – yes, Bill Henchy – abstain, Alex Hopper – yes, Chair Pete Dahl– yes The Committee voted: 5-yes 0-no 2-abstain c. Request for agenda items for future meetings – please email Pete d. Matters Not Reasonably Anticipated by the Chair- none Article 13 &14 create the revolving fund for the pool on the Bay Property - Peter Lombardi said we have been working to get our arms around what this process would entail. Based on recent feedback, we are looking to increase the FY spending limit to $200,000 and increase the free cash appropriation to $200,000. The annual operating expenses will be up to $125,000. This is the longest season open every day and during the day, so the highest expense. We will be contracting supervision every day, as Finance Committee Minutes October 19, 2022 Page 4 of 4 well as initial equipment expense on the order of $50,000-$60,000. It won’t cost $200,000 to run the pool annually, but we have to set the ceiling for the spending limit. Bill Henchy MOVED to affirm its votes on Articles 13 & 14 at the new spending limits recommended in the Warrant. Bill Meehan second. Roll Call Vote: Bill Meehan – yes, Robert Tobias – yes, Andy Evans – yes, Bill Henchy – yes, Alex Hopper – yes, Honey Pivirotto – yes, Chair Pete Dahl– yes The Committee voted: 7-yes 0-no Article 9 - Bill Henchy watched the deliberations, and if he understands one question, the new language would have the effect of precluding citizens petitions at a special town meeting that was called by the Select Board on a Warrant that was 14 days out. That is his concern with the article. It is inappropriate and probably conflicts with state law which obligate the Select Board to include in the Warrant in any Special Town Meeting material that is requested by 100 registered voters. He can easily see the use of the bylaw as a process mechanism if the Select Board were inclined to try to preclude citizens petitions at a special town meeting. Bill Henchy MOVED to rescind its prior vote to recommend Article 9. Bill Meehan second. Andy asked, since it went back to Town Counsel, is there anything new there? Peter Lombardi said after the initial draft article, they provided this language, and it was to avoid such scenarios where the Select Board would have to wait 45 days to call that meeting in order to allow for another Citizens Petition to be included in the Warrant in that emergency Special Town Meeting. Roll Call Vote: Bill Meehan – no, Robert Tobias – no, Andy Evans – no, Bill Henchy – yes, Alex Hopper – no, Honey Pivirotto – no, Chair Pete Dahl– no The Committee voted: 1-yes 6-no e. Next Finance Committee Meeting – defer f. Adjournment Bill Meehan MOVED to adjourn the meeting at 7:31PM. Bill Henchy second. Roll Call Vote: Bill Meehan – yes, Bill Henchy – yes, Alex Hopper – yes, Honey Pivirotto – yes, Robert Tobias – yes, Andy Evans – yes, Chair Pete Dahl– yes. The Committee voted: 7-yes 0-no Respectfully submitted, Beth Devine Packet of supporting materials on website for public review. Finance Committee Minutes November 30, 2022 Page 1 of 4 TOWN OF BREWSTER FINANCE COMMITTEE Date: November 30, 2022 Time: 6:00 PM MEETING MINUTES Present: Chair Pete Dahl, Vice Chair Frank Bridges, Clerk Bill Meehan, Robert Tobias, William Henchy, Bob Young, Andy Evans, Alex Hopper, Honey Pivirotto Also present: Donna Kalinick, Assistant Town Administrator; Mimi Bernardo, Finance Director; Lisa Vitale, Treasurer/Collector Absent: Peter Lombardi, Town Administrator The Chair called the meeting to order at 6:02 pm and announced a quorum. Pursuant to Chapter 107 of the Acts of 2022, this meeting will be conducted in person and via remote means, in accordance with applicable law. This means that members of the public body may access this meeting in person, or via virtual means. In person attendance will be at the meeting location listed above, and it is possible that any or all members of the public body may attend remotely. No in-person attendance of members of the public will be permitted, and public participation in any public hearing conducted during this meeting shall be by remote means only. Additionally, the meeting may be viewed by: Live broadcast (Brewster Government TV Channel 18), Livestream (livestream.brerwster-ma.gov), or Video recording (tv.brewster-ma.gov). 1.Public Announcements and Comment- none 2.Town Administrator/Finance Director Report Donna Kalinick said they started the financial forecasting and budget process. They delivered a first initial draft of the five-year financial forecast to the Golf Commission yesterday. This is the first time doing a forecast to the Golf Department as they are now an Enterprise Fund. We also were working through a 10-year capital plan with them that we will be doing a small update as well on that. Mimi Bernardo said one of the auditors is coming tomorrow and possibly Friday to tie up loose ends. We are still on track to get the final audit by the end of this month. We’ll make a game time decision; we haven’t got the department breakout yet. She will report to the Audit Committee when they will be able to review together. Donna Kalinick wanted to mention that collections for this tax period were very strong. 3.Town Debt – Analysis and Discussion Pete asked for a summary of where we are on the Town debt. Donna Kalinick said before we do that, we sent you several spreadsheets of information. Lisa Vitale will be presenting the large debt spreadsheet in your packet. Because the Nauset debt and the Cape Tech debt come to us as a debt assessment. After that, we want to Approved: VOTE: Finance Committee Minutes November 30, 2022 Page 2 of 4 talk about the spreadsheet based on information from the district’s financial advisor. We extrapolated that out to what does it mean in real tax dollars. That is what people want to know. Lisa Vitale said our debt has been steady until the Sea Camps properties which added new debt to FY2023. In FY2024 that’s the first year we are making the first-year principal and interest payment. $3,292,672 total debt for the entire fiscal year which includes the Sea Camps debt. What that means is that it is not going into her schedules. Pete said the overall debt, the 3rd party debt assessed to us, and what the taxpayers will end up paying. Lisa Vitale said not all this debt is General Fund debt or Enterprise debt. This isn’t exactly what taxpayers will see on their tax bill. Mimi Bernardo went to the spreadsheet that just went over the Nauset High project debt schedule. We have two existing projects through the region and the Tech debt. She found out from the school business manager that the enrollment for Brewster has gone down slightly by 6 students which will help us on our portion of the debt. Bob Young said when the vote happened, the median home would have been paying $258/year to support the high school project – interest rates have gone up, the project is up by 40% roughly, and the Brewster percentage of children at the high school has declined slightly. Resulted annually cost of $466/year which is a 75% increase over what they expected when they voted last time. Frank said we are at $106M in debt service where we started at $61M. Pete said the increase of project cost is about 29% because you have to take into account what the MSBA is paying. Andy asked if the $133,100,000 does or does not include the increase? Donna Kalinick answered it includes the increase, but it doesn’t include the amount from the MSBA. Their amount has not changed and will not change. Honey said, in reading the material, she was unsure if there has been anything put in writing about what options have been considered about cutting back on any of the scope of the project? Bob Young said, at the last meeting he saw, they said they had squeezed every dollar out of the project that they can. “We have a project, it’s just more expensive.” Donna Kalinick said as the Procurement Officer for the town, when you go out to bid for a project, you create an equal playing field. You cannot go in after that and ask to take something substantial out of it. They would have to go back and re-do the whole process because the bids would then all need to change. Honey said in her experience, when something like this happens, higher interest rates, etc., they have removed something and then sent it back out to re-bid the project to help with the budget. Robert Tobias said that any significant scope change, would take the MSBA money down to $0. Then they would have to go back to them and start all over. Andy said what we need to focus on is the consequences of the funding vote if approved or not approved. For him, it seems that if not approved, all work will cease, the $36M will be lost from the MSBA, we have already spent $21M and will have to pay for that no matter what happens, and we are going to have higher costs related to the aging existing building. What he sees is the question, is, do we agree with all of this? Is there some possible less negative outcome that could exist if the town doesn’t go forward with such a large project? Pete said when any town has a fully depreciated building like the high school, that is paid for, off the books, and you go to build a new high school, it is a big piece of debt you put on the books. It is just what happens. To answer Andy’s question, yes, if they can’t get this approved, they lose their funding from the MSBA and there would be construction accelerators going on. To him, the issue is to try to find a way to mitigate that debt by the discussion of other questions we should be asking. To him, it’s asking what Truro and P-town are doing. They are benefitting and they should be paying some of this debt spread out fairly. Bob Young said it’s kind of a “damned if you do and damned if you don’t” problem. He thinks we should ask for the detailed analysis of this work. Where are the dollars going, how much would it cost to go back to the drawing board? There has been a bunch of work already done that can be used going forward. Has anyone gone back to the MSBA to ask the questions about demographic change? He doesn’t think they would have been asked that question about enrollment decline before. Pete said he doesn’t think they were as negative as they could be in their consequences if not approved. When a school building gets to this kind of condition, they worry about Finance Committee Minutes November 30, 2022 Page 3 of 4 accreditation. This could be a large issue if you are going to put all your students, when your buildings are failing, into trailers. He is trying to find a way to get to a yes. If not approved, all those architectural costs are waisted, and they are in the millions of dollars and they would have to be spent again. This isn’t great, but we can go back to discuss the original project. We all have agreed there is a need for this high school to be fixed. Putting it off for another 3-4 years, does not help the process. We are meeting on Monday and have a short time to ask a handful of questions and then come back and have further discussion. Which are the most important pieces we can ask during that time so we can make a recommendation to the taxpayers of Brewster before they go to the polls. Frank wants to know what the Brewster taxpayer will need to absorb if they vote this down with the money already spent vs. how much taxes will go up if the project goes through so they can make a choice based on fact not opinion. Donna Kalinick asked if he would like them to calculate Brewster’s share of the impact of the $28M debt. She said they would have to make some assumptions about what would happen with the debt and assume some costs as well. Frank said he thinks this is what the taxpayers need to see, in a more concrete way. Pete said we need to distill the questions down to the few that will make the most difference. To him, it comes down to Bob’s question 5 on his list in the packet. Having P-Town and Truro paying their personal share. And it has to be a debt assessment, it can’t be wrapped up in tuition payments. An increase of about $258 to $466 which goes up significantly for the median priced household. Honey said they will want to know, what projects in our town can not go forward and either have to be given up or delayed for a significant period. There is only so much debt that we realistically would want to incur. So, things like the community center, the library, and other items that are important to the people of this town. Its important to know more than just the amount of money for this, but what is being given up, or significantly delaying, many other projects. Donna Kalinick said it’s important to look at how much debt a town should carry and how much debt should the taxpayers have to carry. The amount that will hit the tax bills (if this passes) will make it very difficult for us to do anything else that isn’t completely critical. We have to consider what taxpayers can afford. We will be looking at other things and really weighing out what can be brought forward and what cannot. Bob Young asked to come back to the questions regarding next Monday’s Select Board Meeting. Honey said she thinks to be balanced, how many years have we gone without any sort of major debt assessment to pay for NRHS? This would be important information to have before they vote. Donna Kalinick said the green repair was voted in 2012 for a little over $4M for 20 years plus the annual allocation. And there was the Middle School roof project. Around that same time, there was discussion of a set allocation of capital that went to a district. That has been in effect for about 10 years now. Honey added, as far as the high school goes, there has not been a big number going out the door for whatever was needed - when is the last time, what were they, and how long ago did they happen? Those would be important to know. Pete also asked about building upgrades, etc. Honey said there is a certain dollar amount that we haven’t been paying for a substantial amount of time, and that is a fact of the matter. The committee then went over the questions they wanted to bring to Monday’s Select Board meeting. Donna Kalinick said Peter Lombardi would want you to know that he and the other Town Administrators have had several meetings with the Superintendent. She said they will post the agenda tomorrow and will send the packet out on Friday. They were intending on including the large debt spreadsheet, Mimi Bernardo’s spreadsheet, and the tax impact worksheet. 4.Nauset Regional High School Project – Discussion, Strategy, and Vote No further discussion from the above item. Finance Committee Minutes November 30, 2022 Page 4 of 4 5.Liaison Reports and Assignments - defer 6. Review and Approval of Minutes – 10/5/22 & 10/12/22 Bill Meehan MOVED to approve the Minutes of 10/5/22 as presented. Frank Bridges second. Roll Call Vote: Bill Meehan – yes, Frank Bridges – yes, Bob Young – yes, Robert Tobias – abstain, Andy Evans – yes, Bill Henchy – yes, Honey Pivirotto – yes, Alex Hopper – yes, Chair Pete Dahl– yes The Committee voted: 8-yes 0-no 1-abstain Bill Meehan MOVED to approve the Minutes of 10/12/22 as presented. Frank Bridges second. Roll Call Vote: Bill Meehan – yes, Frank Bridges – yes, Bob Young – yes, Robert Tobias – yes, Andy Evans – yes, Bill Henchy – abstain, Honey Pivirotto – yes, Alex Hopper – yes, Chair Pete Dahl–yes The Committee voted: 8-yes 0-no 1-abstain 7. Request for agenda items for future meetings – please email Pete 8. Matters Not Reasonably Anticipated by the Chair- none 9. Next Finance Committee Meeting – Joint Meeting w/ Select Board, Mon 12/5/22 10. Adjournment Bill Meehan MOVED to adjourn the meeting at 7:58PM. Frank Bridges second. Roll Call Vote: Bill Meehan – yes, Frank Bridges – yes, Bob Young – yes, Robert Tobias – yes, Andy Evans – yes, Bill Henchy – yes, Honey Pivirotto – yes, Alex Hopper – yes, Chair Pete Dahl– yes. The Committee voted: 9-yes 0-no Respectfully submitted, Beth Devine Packet of supporting materials on website for public review. Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 1 of 11 Office of: Select Board Town Administrator MINUTES OF THE SELECT BOARD MEETING REGULAR SESSION DATE: December 5, 2022 TIME: 5:00 PM PLACE: Remote Participation REMOTE PARTICIPANTS: Chair Whitney, Selectperson Chatelain, Selectperson Bingham, Selectperson Chaffee, Selectperson Hoffmann, Town Administrator Peter Lombardi, Assistant Town Administrator Donna Kalinick, Finance Director Mimi Bernardo; Finance Committee Members: Frank Bridges, Bob Young, Alex Hopper, Andy Evans, Honey Pivirotto, Bill Meehan, Robert Tobias; Nauset School Committee Members: Chris Easley, Gregory Levasseur, Judith Schumacher, and Tom Fitzgibbons Call to Order, Declaration of a Quorum, Meeting Participation Statement and Recording Statement Chair Whitney called the meeting to order at 5:00pm, read the meeting participation and recording statements and declared a quorum by announcing that all members of the Select Board are present. Chair Whitney announced the Select Board would be entering into Executive Session to review and vote on executive session minutes and to discuss strategy with respect to litigation as an open meeting may have a detrimental effect on the litigating position of the Town, Bott vs. Brewster and will return to open session with an anticipated start time of 6:00pm. Selectperson Hoffmann moved to enter executive session. Selectperson Bingham second. A roll call vote was taken. Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Hoffmann, Selectperson Chatelain- yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. The Select Board returned to open session at 5:34pm. Select Board Announcements and Liaison Reports Selectperson Hoffmann mentioned the Art in the Afternoon events that were held at the Art Center at the Sea Camps property hosted by the Cultural Council and sponsored by the Recreation Department. Town Administrator’s Report Mr. Lombardi acknowledged the letters received from the state for Brewster Fire Fighters who responded to the oil spill on Rt 137. The Town had significant assistance from Harwich Fire Department as well as other Town Departments that have been involved in clean up and remediation of this unfortunate event. Mr. Lombardi reviewed several grant awards the Town has received:  A little under $11K from DEP through their sustainable materials recovery program. This award was received due to the great work by our Recycling Commission and DPW. Funds go back to supporting the programs showcased by the Town of the work that is done at the Transfer station. This is an annual award that is based on reward points the Town earns through different programs. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 2 of 11 Office of: Select Board Town Administrator  Just under $9K through our insurance provider MIIA for loss prevention equipment for our Water Department, Department of Public Works and Facilities Department.  $200K grant from the State Department of Fish and Game through their division of Ecological Restoration for planned work on what they call the Freemans Pond Restoration Project, also known as Paines Creek Culvert. The project has been completed for several years but still encounter issues with overtopping and washout, the Town is looking to identify a longer-term solution. These funds can be used as a local match for 75% construction grant that has already been secured and can be used for permitting. Mr. Lombardi shared that the Town received notice from our Library Director, Cindy St. Amour that she will be retiring in March. The Town will be working with the Board of Brewster Ladies Library Association in filling the position as soon as possible as this is an important position in the community. Adding that the new hire will be critical in understanding what the path forward is for the library. Mr. Lombardi thanked Cindy for service and wished her the best in her retirement. Consent Agenda a. Meeting Minutes: November 7 and November 14, 2022 b. Execute Warrant for January 10, 2023 Special Town Election c. Request from Zoning Board of Appeals to Hold a Meeting on January 10 th d. Request for Facility Use: Brewster Conservation Trust e. Request from Verizon for Equipment Modification to Facility at Cell Tower Site: 1657 Main Street f. Committee Appointment: Cultural Council, Jan Crocker g. Request to Utilize Town Equipment: Homeless for the Holidays (Brewster Fire/Rescue Association) h. One Day Liquor License Applications: Cape Rep Theatre Chair Whitney noted that the Board was informed that per State statute no Zoning Regulatory board can meet on a day of the election and this item will be stricken from the agenda. Selectperson Hoffmann stated that she will be abstaining from the approval of the meeting minutes from the November 7, 2022 meeting. Selectperson Hoffmann moved to approve the Consent Agenda omitting item c. Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Discuss and Vote on Updated Memorandum of Understanding Between Cape Light Compact and Town of Brewster Regarding Energy Manager Position- Select Board FY23-24 Strategic Plan Goal CA-1 Mr. Lombardi recalled that about a year ago the Board was approached with a pilot project to partner with the Cape Light Compact where they hired a new full-time position, and the individual would work one day a week for the Town as the part time Energy Manager. Ultimately Cait Cantella was hired and has served in this role for the past 18 months, this has worked out well for both organizations and has helped in advancing issues. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 3 of 11 Office of: Select Board Town Administrator A handful of minor changes have been made to the original Memorandum of Understanding in consultation with Ms. Cantella and Cape Light Compact. The Town is looking forward to continuing the arrangement and allowing the position to grow and expand to look more broadly at a net zero plan, as well as see the next generation of our energy committee. The salary for the position is funded essentially entirely through a portion of the proceeds of one of the two solar car ports at the Captain’s Golf Course parking lots. Selectperson Hoffmann moved to accept the Memorandum of Understanding between Cape Light Compact and the Town of Brewster regarding the Energy Manager position. Selectperson Chaffee second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Discuss and Vote to Disband Energy Committee & Create New Energy & Climate A ction Committee- Select Board FY23-24 Strategic Plan Goal CA-1 Mr. Lombardi referenced the memo in the packet and the series of important issues that the Energy Committee worked on when first formed and the excellent job they have done in keeping Brewster on the leading edge of these energy initiatives. Adding that over the past several years there has been a trend for energy and climate change. Mr. Lombardi communicated with the existing members of the energy committee and noted that this is in no way a reflection on their work and contributions, the feedback was positive. Mr. Lombardi reviewed the proposed charge and noted that the Select Board would look to solicit letters of interest from residents and follow the Board’s appointment policy. It is recommended that the charge allow for one part-time resident on the committee. This will be a seven-member committee with three-year staggered terms. Mr. Lombardi noted that we have had the benefit of Brewster representatives to the boards of the Cape Light Compact and the Cape and Vineyard Electric Cooperative and should be ex-officio members, if not full member of the Committee. Selectperson Hoffmann moved to disband the Energy Committee and create a new Energy and Climate Action Committee with the addition in the charge to allow a non-resident member as applicable. Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Public Announcements and Comments: None Discuss and Vote to Renew Annual Common Victualler, Innholder, Lodging House, New and/or Used Car Dealers, Hawker Peddler & Livery Licenses Chair Whitney stated that the latest information received is that Apt Cape Cod, Island Blue Crab and the Kitchen Café will not be voted on tonight for various reasons and will be voted on at a future meeting. Apt Cape Cod and Island Blue Crab have not filed paperwork or paid the fees, and the Kitchen Café is going in front of the Planning Board on December 14. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 4 of 11 Office of: Select Board Town Administrator Resident Meredith Bair, an abutter to the Kitchen Café, read a letter of her concerns to the Select Board regarding the renewal of their Annual Common Victualle rs license. Danielle Panzica, owner of the Kitchen Café, stated that these are false statements and accusations regarding her business, and it will be discussed further at the next meeting. Selectperson Hoffmann moved that the Select Board vote to approve the renewal of the following Annual Common Victualler’s licenses, pending all financial obligations have been paid to the Town and the establishment has passed all building and health inspections:  Ack Gioia  Breakwater Fish & Lobster • Brewster Fish House Restaurant  Brewster Inn / Woodshed • Brewster Pizza House  Brewster VFW Post 9917 • Café Alfresco  Candleberry Inn • Cape Cod National Golf Club  Chillingsworth • Cobie’s  Dunkin Donuts • Eat Cake 4 Breakfast  Freeman’s Grill • Harbor Lights Mini Golf  J.T. Seafood • Kate’s Cape Cod Ice Cream  Laurino’s Cape Cod Village • Linx Tavern at Ocean Edge  Ocean Edge Inn & Conference Center • Old Sea Pines Inn  Sea Meadow Inn • Snowy Owl Coffee Roasters  Spinnaker •Stone L’Oven Pizza Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved to continue the discussion and vote of the Annual Common Victualler’s License for the Kitchen Café, Apt Cape Cod and Island Blue Crab Food & Spirits to a future Select Board meeting. Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Select Board vote to approve the renewal of the following Annual Innholder’s licenses, pending all financial obligations have been paid to the Town and the establishment has passed all building and health department inspections:  Brewster By the Sea • Candleberry Inn •Chilingsworth • Michael’s Cottages • Old Manse Inn •Old Sea Pines Inn • Ocean Edge Inn & Conference Center • Pepper House Inn •Sea Meadow Inn • Spinnaker Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 5 of 11 Office of: Select Board Town Administrator Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Select Board vote to approve the renewal of the following Annual Lodging House licenses, pending all financial obligations have been paid to the Town and the establishment has passed all Building and Health Department inspections:  The Captain Freeman Inn • The Ruddy Turnstone Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Board vote to approve the renewal of the following Annual Used Car Dealers/ Class II Licenses, pending all financial obligation have been paid to the Town:  Don’s Auto Cosmetics • Bola Talabi – Export Only Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Select Board vote to approve the renewal of the following Annual Livery License, pending all financial obligations have been paid to the Town: • Cape Cod Patient Transport, LLC d/b/a Prime Medical Transport Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Select Board vote to approve the renewal of the following annual Hawker and Peddler Licenses pending all financial obligations have been paid to the Town:  Boundless, Inc. (Eric Barber) Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann- yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. 6:15pm Public Hearing- Renew Annual Liquor Licenses: Apt Cape Cod, Brewster Fish House, Brewster Pizza House, Island Blue Crab Food & Spirits, Laurino’s Cape Cod Village, Stone L’Oven Pizza, Woodshed, Ack Gioia, Freeman’s Grill, Linx Tavern, Ocean Edge Inn & Conference Center, Brewster Post #9917 VFW, Chillingsworth, Old Sea Pines Inn, Spinnaker, Brewster Farms Quick Pic, Brewster Village Marketplace, Brewster Wines & Spirits, Winslow Spirits & Things, Luke’s Super Liquors, Millstone Liquors, Ferretti’s Market, Ocean Edge Resorts Selectperson Hoffmann moved to open the public hearing. Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 6 of 11 Office of: Select Board Town Administrator Resident Danielle Panzica asked if there is a timeframe in which Apt Cape Cod and Island Blue Crab have to have their paperwork in by or it is an automatic dismissal? Mr. Lombardi noted that the licenses ru n on a calendar year basis. Chair Whitney added that if they do not have their paperwork in by the end of the year, they would not be allowed to sell alcohol in 2023. Selectperson Hoffmann moved to continue the hearing for Apt Cape Cod and Island Blue Crab and close the public hearing. Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Board vote to approve the following renewal of annual all alcoholic restaurant licenses pending they pass their annual inspections, have submitted the required liquor liability insurance and all financial obligations have been paid to the Town:  Veron J Smith d/b/a Brewster Fish House  Brewster Pizza House, LLC  Bow to Stern Ltd, d/b/a Freemans Grill  Brown Dog Investments, Inc. d/b/a Laurino’s Cape Cod Village  Alexandra and Athanasios Inc., d/b/a Stone L’Oven Pizza  Brewster Inn Inc., d/b/a Woodshed Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Board vote to approve the following renewal of annual general on- premises wines and malt license pending they pass their annual inspections, have the required liquor liability insurance and all financial obligations have been paid to the Town:  ACK Gioia, LLC Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Board vote to approve the following renewals of annual all alcoholic club licenses pending they pass their annual inspections, have the required liquor liability insurance and all financial obligations have been paid to the Town:  Brewster Post 9917 VFW of the U.S., Inc. d/b/a Brewster Post #9917 VFW  Ocean Edge Resort Limited Partnership d/b/a Inn Ocean Edge Inn & Conference Center  Ocean Edge Resort Limited Partnership d/b/a Linx Tavern and Bar Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 7 of 11 Office of: Select Board Town Administrator Selectperson Hoffmann moved that the Board vote to approve the following renewals of annual all alcoholic hotel/innkeeper licenses pending they pass their annual inspections, have the required liquor liability insurance and all financial obligations have been paid to the Town:  Chillingsworth Inc. • Old Sea Pines Inn Corp., d/b/a Old Sea Pines Inn • Spincape LLC, d/b/a Spinnaker Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Board vote to approve the following renewals of annual all alcoholic package store licenses, pending all financial obligations have been paid to the Town:  Brewster Farms Quick Pik Inc., d/b/a Brewster Farms Quick Pik  Kmkb Inc., d/b/a Brewster Village Marketplace  Vidira Corp., d/b/a Brewster Wine & Spirits  Luke’s of Brewster Inc., d/b/a Luke’s Super Liquors  Checkerberry Inc., d/b/a Millstone Liquors  A Plus Ventures d/b/a Winslow’s Spirits and Things Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Selectperson Hoffmann moved that the Board vote to approve the following renewal of annual wines and malt package store licenses, pending all financial obligations have been paid to the Town:  A Rose Realty Inc., d/b/a Ferretti’s Market • OERGC Inc., d/b/a Ocean Edge Resorts Selectperson Bingham second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee- yes, Selectperson Bingham-yes, Selectperson Hoffmann-yes, Chair Whitney-yes. The vote was 5-Yes, 0-No. Presentation and Discussion on Nauset Regional High School Project & Upcoming Special Elections (Joint Meeting with Finance Committee)- Brooke Clenchy, Nauset Superintendent & Chris Easley, Nauset Regional School Committee Chair Chair Pete Dahl called the Finance Committee meeting to order and declared a quorum with the following members present: Frank Bridges, Bob Young, Alex Hopper, Andy Evans, Honey Pivirotto, Bill Meehan, Robert Tobias. Mr. Easley and Ms. Schumacher shared a presentation concerning the January 10 vote on the request for additional funding for the High School Building Project. Noting that the challenge is the cost increase over the estimate, which is represented in the contractors bid to construct the High School. The original cost estimate is a three-year-old event and in the past, we were dealing with an estimate and now there is a bid. This challenge is a statement of the time that we live in. Highlights of the presentation included: Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 8 of 11 Office of: Select Board Town Administrator  A timeline review: o 2014-2016; problem was identified, original application to the MSBA building program was denied, applied again in 2016 and was accepted. o 2017; Spring Town Meetings voted and approved $1.3M to fund the feasibility study o 2018-2019; a series of steps taken to select the preferred building design o February 2020; MSBA approved the building design and project budget. MSBA awards approximately $36M in State funding for the Nauset Regional High School (NRHS) project o Spring 2020; Town Meetings cancelled due to Covid and vote postponed o March 2021; District-wide vote approves $131,825,665 to fund the NRHS building project o 2021-present; building design developed into blueprint and bid documents, 37 mobile trailer units purchased and installed, design modifications made to reduce $7.3M in costs o June 2022; building project out to bid o October 2022; two bids received, Brait Builders won the bid at $134.4M, the 2nd bidder was at $159.8M o November 2022; the Nauset School Committee voted to ask the taxpayers for the additional funds to construct the High School as planned.  Additional funding request for construction costs and contingency was reviewed o Current total project budget = $131,825,665; revised total project budget = $169,925,665, resulting in a new funding request of $38,100,000.  Estimated Tax Consequences for Brewster - exact terms will be completed in May o 4.65% interest rate, based on a 30-year level debt bond (subject to change)  First year and every year is $67.87 per $100,000 of assessed value o 4.5% interest rate, based on a 25-year level deb bond (subject to change)  First year and every year is $87.91 per $100,000 of assessed value  Two options for residents o Vote to provide the additional funding and build the high school as planned  8 years in the making and the $36M in state funding will not be lost  The new High School as proposed is what the community selected as the solution  $28M has been borrowed and has been expended and committed for work done and contracted to date  Quality general contractor in Brait Builders, same contractors that built Cape Tech o Vote down the additional funding and start all over again  Still pay the $28M already borrowed towards the agreed solution and lose the $36M MSBA grant  Lose a known builder and a known cost for the solution identified 8 years ago. A new project will take another 4-5 years.  Must continue to maintain a 50-year-old building and the 37 mobile trailer classrooms  Risk having to bring the entire high school building up to current building codes Members of the Select Board and the Finance Committee asked questions and made comments regarding the presentation: Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 9 of 11 Office of: Select Board Town Administrator  Estimated tax impact was based on $133.1M which is the amount borrowed and requested to be used by various Town Administrators.  The proposed High School can be adapted to include 8th graders. Ms. Schumacher shared that over 150 resident high school students attend other public high schools and that it could be possible for students to return with the new campus.  Multiple questions were asked regarding the builder’s risk insurance. Originally the builder’s risk insurance was included in the general contractors’ conditions of the bid, however the risk carrier approached the region, and the model today is that the school district/Town would assume the builder’s risk policy and oversee the costs of the insurance for the project. It is a budget estimate until the policy is purchased for the construction. Once the school has refined numbers they will be provided.  Once the project is over, the school would try to sell the mobile trailer classrooms.  Mr. Easley explained more about the construction costs and contingency amounts presented. Noting that they been conservative and keeping a tight budget.  Selectperson Chatelain commented that the medium home value in Brewster is closer to $600,000. Ms. Kalinick noted that the Finance Committee had provided a spreadsheet in the packet with this updated information on tax impact. There was a request to update the tax impact slide to reflect the current median value of a residential home in Brewster, which is $636,700 for FY23.  Finance Committee asked if the School Committee would commit to requiring Provincetown and Truro to pay their proportional share of the debt related to the project when their current tuition agreement concludes? Mr. Easley responded that the total dollar amount will include what it takes to educate a child at Nauset High School, this will be considered and will be part of what they must pay. Mr. Fitzgibbon added that they will make every effort for them to pay their portion of the debt, but they can’t force them to join the region.  Mr. Easley will provide the expenditure report on the approximate $28M that was spent or encumbered.  Mr. Levasseur detailed the cost of the 37 mobile classroom trailers, including price for the trailers ($550K), transportation, and installation which totaled $5.5M. In the original project budget was $3M, the other $2.4M was taking from the contingency for the construction. The reason to purchase the additional trailers was to reduce the project from a 4-phase project to a 2 ½ -3 phase project. The timeframe is now 2 ½ to 3 years for the project, an updated timeline will be provided.  Mr. Levasseur responded to the Finance Committee question regarding the $42M in costs that the MSBA would not recognize. One of the costs that MSBA does not contribute to is the septic system, which in this project is $1.6M, they also do not contribute to office spaces. There were things planned for to reduce the impact of the budget on the project. The MSBA wants to direct their money to education, but they do pay a proportionate share of every space on the campus. Added that if we wanted to reduce the project, we would have to cut significant square footage, the problem is it is not the project that was approved.  Mr. Lombardi noted that for this project, holding the costs constant and assuming the interest rate provided, the difference between a 25- and 30-year level debt term to the medium residential property owner in Brewster is $34/year in savings for a 30-year term vs a 25-year term. In total debt it is $25M in additional interest costs paid going from a 25-year term to a 30-year term. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 10 of 11 Office of: Select Board Town Administrator  Regarding the auditorium and performing arts center, the plan is to construct a new preforming arts center in a new location and the existing auditorium gets rehab for other uses. Mr. Lombardi stated that it is important to clearly communicate to residents consistent figures for project costs and potential tax implications. There needs to be an agreement on what these figures are and use them consistently from Town to Town. Member Bridges moved to adjourn the Finance Committee meeting. Member Meehan second. A roll call vote was taken. Member Bridges-yes, Member Young-yes, Member Hopper-yes, Member Evans-yes, Member Pivirotto-yes, Member Meehan-yes, Member Tobias-yes, Chair Dahl-yes. The Finance Committee vote was 8-Yes, 0-No. Update on Stony Brook Elementary School HVAC Feasibility Study and Discuss Potential Next Steps Mr. Lombardi noted that over the past couple of years on the 5-year Capital Plan the Town has included line items that acknowledge the need to upgrade both the boiler and ventilation system at the Stony Brook school. The cost estimates for this project have been on the order of $1M historically, based on information provided by the schools. There was a capital request for $75K at the Town Meeting last May for design of these new systems. The first step in the process was to commission a feasibility study and recently the Town received the final report from Weston & Sampson Engineers, Inc. This is a new study and in light of the upcoming vote regarding the High School renovation project, Mr. Lombardi thought it was important to bring this report to the attention of the Select Board and residents. Noting that there are many decisions still to be made. Mr. Lombardi noted that the report looks at four a lternatives:  An upgrade to the boilers only, cost is approximately $2M  The other three have a cost approximation of $8-$9M (significantly higher than originally estimated), one is for a natural gas fired boiler and cooling system and the other two use electric systems in different forms. The assessed value of the Stony Brook School building is approximately $10M and any work that is completed to this facility that exceeds 30% of the assessed value triggers significant code compliance. Mr. Lombardi reminded the Board that the consolidation of the schools is on pause pending further decline in enrollment. The findings from the consolidation report point to the fact that the Stony Brook is much more likely to accommodate consolidation if we get to that point. Adding that investing money into the school would be a long-term investment. Mr. Lombardi noted the plan would bring the feasibility study team from Weston & Sampson to present the study to the school committee. It would be helpful and appropriate for members of the newly formed energy and climate change committee to be involved and provide guidance and support. It was stated that the State has recently suspended their accelerated repair program. It is important to understand that some form of significant investment in this facility will be needed. There are copies of the air quality reports included in the meeting packet, this leads to the conclusion that not upgrading the ventilation system really wouldn’t be a wise decision for the health of students, faculty, and everyone else in the building. Ms. Kalinick added that in options 3 & 4 a significant amount of the costs is Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.05.2022 www.brewster-ma.gov Page 11 of 11 Office of: Select Board Town Administrator associated with upgrading the electric. When the updated Capital Plan is presented in January, there is a major roof renovation that is estimated at $2M. Adding that the code compliance and the amount of money spent is over 3 years. Mr. Lombardi shared that this is all informational and we expect that numbers will need to be updated in the capital plan to have a better understanding of what the long-term costs look like. Debrief on Fall 2022 Special Town Meeting and Discuss Potential Next Steps for Vision Planning Committee and Drummer Boy Park Phase I Design The Board agreed to postpone this agenda item to the next Select Board meeting. FYIs Mr. Lombardi made note of two items in the FYIs, the first is the regulations relative to hunting in the Punkhorn Parklands this year and the second is that DEP has proposed a series of updated regulations to Title V and created new watershed permitting regulations. The proposed regulations are consistent with what had initially been presented in previous workshops, they do have significant impact across the Cape and specifically to Brewster. Unfortunately, one of the key elements that had been originally included in the proposal was a $200M appropriation to help cover some of the local costs of compliance of either developing the watershed permits or implementing the IA technologies, this funding has been cut down to $15M. There is opportunity to provide feedback in expressing the significant financial burden this puts on the Town and on residents. Matters Not Reasonably Anticipated by the Chair: None Questions from the Media: None Next Meetings December 7 (Joint with Board of Health), December 12 (Joint with Finance Committee), December 19, 2022, January 9, January 11 (Joint with the Finance Committee re. 5 Year Capital Improvement Plan) and January 23, 2023 Adjournment Selectperson Bingham moved to adjourn at 8:25pm. Selectperson Hoffmann second. A roll call vote was taken. Selectperson Chatelain-yes, Selectperson Chaffee-yes, Selectperson Hoffmann, Selectperson Bingham- yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Respectfully submitted by Erika Mawn, Executive Assistant Approved: __________________ Signed: _________________________________________ Date Selectperson Hoffmann, Clerk of the Select Board Accompanying Documents in Packet: Agenda, TA Report, Consent agenda items, Public Hearing documents for renewal of annual liquor licenses, renewal of annual licenses information, NRHS Project and Special Election information, Stony Brook HVAC documents, Memorandum of Understanding with Cape Light Compact, Energy & Climate Action Committee documents, Fall TM debrief, FYIs. 12 / 20 / 2022 Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.12.2022 www.brewster-ma.gov Page 1 of 6 Office of: Select Board Town Administrator MINUTES OF THE JOING SELECT BOARD & FINANCE COMMITTEE MEETING REGULAR SESSION DATE: December 12, 2022 TIME: 6:00 PM PLACE: Remote Participation REMOTE PARTICIPANTS: Chair Whitney, Selectperson Chatelain, Selectperson Bingham, Selectperson Chaffee, Selectperson Hoffmann, Town Administrator Peter Lombardi, Assistant Town Administrator Donna Kalinick, Finance Director Mimi Bernardo; Finance Committee Members: Frank Bridges, Bob Young, Alex Hopper, Andy Evans, Honey Pivirotto, Bill Meehan, Robert Tobias, Chair Pete Dahl. ABSENT: Bill Henchy Call to Order, Declaration of a Quorum, Meeting Participation Statement and Recording Statement Chair Whitney called the meeting to order at 6:00pm, declared a quorum by stating that all members of the Select Board are present and read the meeting participation and recording statements. Public Announcements and Comment None Select Board Announcements and Liaison Reports None Town Administrator’s Report Mr. Lombardi shared that the Town’s first Charter that was overwhelmingly approved at the May 2021 Town Meeting has been with State legislature. With the help of Representative Whelan, the Charter is currently pending with the Senate. The hope is that the Senate will approve our Charter before the end of this legislative session and then go to the Governor for signature before the transition in administration. Mr. Lombardi thanked the legislative delegation in helping to navigate the process. Consent Agenda a. Appointments: Pond Parcel Planning Committee- Allen Ryone, Conservation Commission-Kimberley Crocker Pearson Selectperson Hoffmann moved to approve the Consent Agenda from December 12, 2022. Selectperson Bingham second. A roll call vote was taken. Selectperson Hoffmann-yes, Selectperson Bingham-yes, Selectperson Chaffee-yes, Selectperson Chatelain- yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. FY24-28 Financial Forecast Presentation, Discuss FY24 Budget Development Guidelines, and Review FY24 Budget Calendar (Strategic Plan Goal G-1) Finance Committee Chair Dahl declared a quorum by stating all members expect Bill Henchy are present and called the Finance Committee meeting to order. The Budget Forecast for Fiscal Years 2024-2028 PowerPoint was presented by Mr. Lombardi, Finance Director Mimi Bernardo and Assistant Town Administrator Donna Kalinick. Mr. Lombardi noted that the Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.12.2022 www.brewster-ma.gov Page 2 of 6 Office of: Select Board Town Administrator Town transitioned to the online budget platform, OpenGov last year and will be adding the 5-year Capital Improvement plan to the platform as well. Which provides transparency and accessibility to the Towns finance and budget documents.  Overview of FY23 Budget o Stayed relatively conservative with revenue estimates for State aid and local receipts, there is still unknowns on the horizon, but there were these concerns over the last two years as well. o The Compensation and Classification study changes were implemented in FY22, the focus was to get all bargaining units in sync. The cost-of-living adjustment (COLA) for FY23 was 2.75%. o OPEB is level funded at $300K ($267K from the general fund) o Short-Term rental revenues: allocated $187.5K to Capital Stabilization and $375K to Affordable Housing Trust. Created a new Water Quality Capital Stabilization fund and appropriated $112.5K. o Created a new Special Education Stabilization Fund and appropriated $100K of available funding due to unanticipated significant increase in Ch. 70 school funding. o Staffing changes: new full-time Cape Cod Sea Camps property manager, part-time Town Hall floater, 2 seasonal staff for Department of Natural Resources, part-time Town nurse and increased hours of the Zoning Board of Appeals administrative assistant. Net effect is $52K as the Town was able to leverage ARPA funds. o Increase in Brewster students at CC Tech assessment, 18 student enrollment increase. Nauset Regional Assessment increase of 4.1%. Brewster Elementary schools is consistent with past increase at 2.5% (does not include benefits).  Revenue Assumptions o New Growth: $225K a year annual increase, additive over the span of 5 years. Worked with Deputy Assessor who has completed comprehensive analysis and projections. o State Aid (cherry sheet): Level funded for FY24; 2% increases in FY25+. o Local Receipts: 6% increase for FY24 & FY25 estimates based on FY19-FY22 actuals and record- high Free Cash totals in FY21 & 22 (specifically motor vehicle excise and traditional lodging). Approximately 4.5% increase for FY26 through FY28. o Short-term Rental Revenues: $100K increase to $80K in FY24 based on $1+M FY21 & 22 actuals. 5% increase in FY25+. Summer 2022 (June, July, and August) actual short-term rentals was about $860K. Allocation breakdown is 50% to Affordable Housing Trust, 25% to Capital Stabilization, 15% to Water Quality Stabilization fund and 10% to the General Fund (directed to operating expenses that directly support and help implement goals on the Select Board’s Strategic Plan). o Solar Revenues: $20K in FY24+ to General Fund for Energy Manager and $70+K balance to the Golf Department to help cover operating expenses. o New Marijuana Revenues: $150K starting in FY25 (when they will be online), increasing $50K per year FY26-FY28. Based on the DOR statewide actuals from comparable communities. o Indirects: increased in FY23 (Golf & Water) to better reflect actual contributions, 5% increase in FY24+ Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.12.2022 www.brewster-ma.gov Page 3 of 6 Office of: Select Board Town Administrator o Overlay Reserves (Abatements): $250K FY24+ based on current balance and anticipated annual expenses, including expected expansion of targeted tax relief. Mr. Lombardi noted that when looking at the Revenue Assumption visualization bar chart, can see that our excluded debt increased from FY22 to FY23, this is the $1M excluded debt from the Bay Property, the Pond Property is being funded through non excluded debt and other contributions. In FY24, our assumption is that the High School will come online with about $4.2M of new excluded debt. In FY21 & 22 Brewster had abnormally low excluded debt based on the size of the community and organization.  Expense Assumptions o General Expenses carried at 2% and the Town will be monitoring line items. Department heads deliver budgets that are sustainable and typically their expenses come in at 2%. o Personnel carried a 2.5% COLA in FY24-26 (2% in FY27-28), plus step increases. Includes some department heads moving from 37.5 hours per week to 40 hours. o Nauset Schools forecasting a 3% increase in FY24-25 and carrying 2.5% in FY26+ o Cape Cod Tech traditionally at 2.5% or below; FY24-26 at 2.5% and 2% in FY27+. Enrollment figures are based on current enrollment. o Pension increase is 11% in FY24, 10% in FY25-26 and 9% in FY27-28. Increases are calculated on the overall personnel costs; this includes the increase in positions. o Health Insurance has a 5% increase in FY24+ and will be reviewed each year. o OPEB is level funded at $300K, we receive an update every two years. The Town has a long- term plan, that once the pension responsibilities is paid off we will shift more money from pension to OPEB. o Short-term Revenues (STR): Housing Trust $425K (50% of STR), Capital Stabilization $212.5K (25% of STR), and Water Quality Stabilization $127.5K (15% of STR) When looking at expenses overtime, it increases from FY22 to FY23, due to the compensation and classification study and the debt from the Cape Cod Sea Camps. Another large jump from FY23 to FY24, in which the main driver is the projected debt from the High School. From FY24 to FY28 the expenses are consistent.  Excluded Debt o Sea Camps Properties- $20M debt issuance; 30-year term level debt starting in FY23. FY24 payment is $981,623. The true interest cost on the loan is 2.74%. o The school debt is not debt carried on financial statements, it is paid when the Town makes its assessment payments.  Cape Cod Tech High School- $81M debt issuance; 20-year term level principal started in FY20, FY23 payment was $549,461 and FY24 payment will be $471,498 based on 6 student decrease.  Nauset High School Project- $133M debt issuance; assume a 25-year term level debt starting in FY24 at a 4.5% interest rate. Brewster’s share will be about +$4.25M in Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.12.2022 www.brewster-ma.gov Page 4 of 6 Office of: Select Board Town Administrator FY24. Approximately $450 to $500 annual cost for the average medium home value of $636,700.  Forecast Implications o Estimated FY24 General Fund revenue totals = $55,120,434 o Projected FY24 General Fund operating appropriations= $54,982,377 o Estimated available FY24 levy capacity= $138, 377 Mr. Lombardi noted that our levy capacity is limited in FY25 and beyond, on the order of magnitude of a $55M budget, plus or minus $50-100K is not statistically significant. The Town feels there are not any looming structural deficit as long as the FY24 budget remains consistent with the projections. One of the primary reasons why the out years look like more of a challenge in this year’s forecast is the fact that the Nauset Regional assessment increased by over 4% this year, when our assumption was 2.5%. The operating expenses were closer to 6%. Mr. Lombardi stated that one change on a significant portion of our budget in one fiscal year has a ripple effect into future fiscal years.  Budget Development o Suggested operating budget guidance:  Target school expense increases of 3.0%  Instruct Town departments to deliver level service budget  FY24 budget presentation on February 6 (joint meeting)  Department head presentations planned for February 8 & 10 (joint meetings) o Suggested capital budget guidance:  Update FY23-27 requests, the goal is to maintain $1.75-2M annual commitment to funding capital needs via free cash  Spring FY23 department head requests due December 22  FY23-27 CIP presentation planned for January 11 (joint meeting)  Supplemental FY23 capital needs to be addressed at Spring 2023 Town Meeting, there is $2,641,154 in unappropriated Free Cash available.  Select Board FY23-24 Strategic Plan Goals with Operating Budget Implications o Currently have one full time position as the property manager for the Sea Camps properties, this level of staffing has worked since the property is not actively used. As the Town tries to provide access to the property, there is the potential need to expand staffing in FY24 and beyond. The Town will have to make strategic decisions in the near future regarding property insurance for the Bay property as it has been a challenge. The Town wants to provide public access but does not want to unnecessarily expose the Town in terms of liability. In the hopes of opening the pool for public use to residents there are staffing and infrastructure considerations in supporting the expanded access of the property. o Targeted tax relief that will likely have budget implications for FY24 and beyond. o Develop a 5-year financial plan for the Affordable Housing Trust, a sustainable plan that supports the need to continue the investment of short-term rental revenues at the 50% threshold. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.12.2022 www.brewster-ma.gov Page 5 of 6 Office of: Select Board Town Administrator o Need to identify the areas the Town needs to make targeted investments in increasing our staffing capacity to help meet the community and organizational needs and support the needs long term. Expect as part of the FY24 budget discussion will look at potential staffing increases in a couple of different departments. o Continue to build our relationship with the Nauset School Officials, our goal is different than what we have done historically. The Town will need to be very clear in identifying what we view as our capacity for school budget increases based on our big picture forecast and developing sustainable budgets. As well as being clear that if their operating expenses come in higher, we won’t necessarily have the ability to incorporate it into a budget that is also within our levy limit. The Select Board and members of the Finance Committee took turns commenting and asking questions about the presentation. Selectperson Hoffmann inquired about the marijuana revenues and the community host agreement. Mr. Lombardi stated that we have assumed only the local option tax revenues from the businesses coming online. The Town has negotiated host community agreements with both businesses that include additional community impact fees but based on the recent case law and legislative changes that were made, we will be able to collect some revenues for community impact fees, they are likely to be significantly less than original thought. Therefore, the Town assumed a 3% tax revenue. Mr. Bridges asked if there are significant labor contracts that come up during th is forecast that highlights specific years, that we should be aware of? Mr. Lombardi noted that all the Town’s employment agreements have the same terms and expire June 2023. The Town is in the process of negotiating new 3-year contracts and have assumed 2.5% COLA in FY24-26. This will then reduce to 2% in FY27 and FY28. Adding that we have accounted for the step increases and contractual obligations for existing staff, assuming that the step and grade system remains in its current form. Th e schools have one year left through the end of FY24 on their existing agreements and then will be negotiating new 3-year contracts. Mr. Young expressed concern about the messaging to the Nauset School District, noting that overall enrollment for the district is down 14.6%, but the budget is up 49% on a gross dollar basis and 21% on an inflation adjusted basis. Mr. Lombardi responded that he recognizes that the Town is taking a different approach with the school than we have in the past. We are trying to balance being realistic with being fiscally prudent. Mr. Lombardi noted that the Town has given budget requests and not necessarily stronger directives in the past. The employee steps were discussed, noting that the increment between steps is 3% with a couple of exceptions, which was standardized through the Compensation and Classification process. Mr. Lombardi noted that some employees in the next couple of years will be reaching the top step and will not receive step increases. This data is tracked and has been applied to personnel expenses as a percentage. Ms. Bernardo shared that labor costs would increase as follows, for FY24 just over 5%, for FY25 4.95%, for FY26 4.52%, for FY27 3.93%, and for FY28 3.67%. Mr. Lombardi noted that the Town wanted to make sure that we are competitive in the market and wanted our pay scale to be around the 75th percentile. Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d Town of Brewster 2198 Main Street Brewster, MA 02631-1898 Phone: (508) 896-3701 www.brewster-ma.gov Select Board 12.12.2022 www.brewster-ma.gov Page 6 of 6 Office of: Select Board Town Administrator Chair Dahl inquired about Brewster’s contribution to the Cape & Islands Water Protection Fund and how it is reflected in the budget. Mr. Lombardi noted the contribution is collected directly by the State so we don’t see it in the general fund, the only time we would receive it would be as a subsidy from the fund to directly cover debt payments of an eligible project. Adding that eligible businesses are required to make payments to the State, then it is allocated to the fund. Regarding student enrollment, Mr. Lombardi shared that can rely on the Oct 1 enrollment report to be consistent with what ultimately survives the state process for Cape Cod Tech, but this is not the case for the Regional District because the similar reports for the charter schools and so forth are not available. The Town only has a portion of the data and have not made assumptions for Nauset. Mr. Lombardi shared that the Finance team developed a 5-year financial forecast for the golf department, there have been significant policy discussions and decisions and the Town’s interest is to have their rate recommendations grounded in the financial forecast as an expected expense. This was well received by the Golf Commission and will be something to continue to build on in future years. The plan is to do something similar with the Water Department in March. Finance Committee Member Tobias moved to adjourn at 7:39pm. Member Evans second. A roll call vote was taken. Member Bridges- yes, Member Young-yes, Member Tobias-yes, Member Pivirotto -yes, Member Evans-yes, Member Meehan-yes, Chair Dahl-yes. The Board vote was 7-Yes, 0-No. Matters Not Reasonably Anticipated by the Chair None Questions from the Media None Next Meetings December 19, 2022, January 9, January 11 (Joint with the Finance Committee re. 5 Year Capital Improvement Plan) and January 23, 2023 Adjournment Selectperson Hoffmann moved to adjourn at 7:40pm. Selectperson Chatelain second. A roll call vote was taken. Selectperson Hoffmann-yes, Selectperson Chaffee-yes, Selectperson Bingham-yes, Selectperson Chatelain-yes, Chair Whitney-yes. The Board vote was 5-Yes, 0-No. Respectfully submitted by Erika Mawn, Executive Assistant Approved: __________________ Signed: _________________________________________ Date Selectperson Hoffmann, Clerk of the Select Board Accompanying Documents in Packet: Agenda, Consent agenda items, Financial Forecast PowerPoint. 12 / 20 / 2022 Doc ID: 3ead0d6bc4286f1aea6835bb231ac89c691ae73d