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Home My Public Portal AboutSelect Board -- 2023-01-11 Minutes3 0 r E W8V t 4 ifimW.. . Approved: 3/15/23 VOTE: 7-04 Select Board Approved: 3/27/2023 Vote: 5-0-0 TOWN OF DIVE VV 1 1% FINANCE COMMITTEE JOINT MEETING WITH SELECT BOARD ime: Date: January 11, 2023 T 6:00 PM _ , VIRTUAL MEETING MINUTES e Present: Finance Committee -Chair Pete Dahl, Vice Chair Frank Bridges, Clerk Bill Meehan, Robert Tobias, Alex Hopper, Honey Pivirotto, Bob Young, Andy Evans Present: Select Board - Chair Whitney, Selectperson Chatelain, Selectperson Bingham, Selectperson Chaffee, Selectperson Hoffmann Also present: Peter Lombardi, Town Administrator; Donna Kalinick, Assistant Town Administrator; Mimi Bernardo, Finance Director Absent: William Henchy Chair Dahl called the meeting to order at 6:01 pm and announced a quorum. After the Meeting Participation statement, Select Board Chair Whitney called the Select Board to order. 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 Manager/Finance Director Report . Peter wanted to acknowledge the special election yesterday, they have their funding, and we have our debt exclusion, Approximately $4.25M. We will be in communication with Nauset officials around the debt and timing of the debt issuance and impact on resident tax bills for next year, The State Legislature and former Governor Baker approve] our Special Act creating a Town Charter. Thanks to Bill and Cindy and their participation in that committee. It was a lot of work, but we have our own constitution now. There will be some changes relative to capital planning which we will talk about going forward. Pete congratulated Peter Lombardi and Donna Kalinick on their new titles because of the Charter as Town Manager and Assistant Town Manager. 3. Presentation of FY23-27 Capital Improvement Plan, including supplemental FY23 Capital requests — Finance Team Peter Lombardi addressed the committees joined by Mimi Bernardo and Donna Kalinick as your Finance Team. He wanted to start by mentioning we typically have this joint meeting around this time yearly. The town has a Finance Committee Minutes I .Ianuat y 11, 2023 i t f Page 1 of 5 5 -year capital improvemdht plan, what it comprises are all the known projects, capital expenditures and investments, infrastructure, facilities, our fleet, etc, that really looks at things wholistically looking at the needs of the community and tries to create a sustainable model while also being fiscally responsible. Historically, the plan has been developed in consultation with the Capital Planning Committee, however, with the Charter, those responsibilities have become more of a staff led process. In terms of what we are presenting tonight, we have met with Department Heads this summer and again in the past month and really look back on last year's plan and understand what is new and different in terms of priorities, new initiatives, projects, or acquisitions we had on our radar. We developed a series of recommendations we have here tonight. In the past, there was a large spreadsheet, which was difficult for others to access. We have moved to the open.gov platform, an online platform. It was a fair amount to take on initially but brings a lot of benefits and is very much in line with the goals and strategic. plan of the Select Board in terms of this being an ongoing goal in continuing to improve outreach, communication ;and outreach and accessibility of town finances to our residents. Our agenda for tonight, vie start with the very big picture of the 5 -year capital plan overview structured by department. There is a requirement that the Select Board present a 5 -year capital plan for all projects over $100,000 to the residents 'at the Annual Town Meeting in the spring. He will then hand it to Mimi Bernardo for her to go over All the Funding Sources Summary. She will also talk about Planned Free Cash Investments. Then they will look at the Nauset & Brewster Elementary Schools Detail. After that, Donna Kalinick will look at the Spring 2023 Capital Requests. And we will close with telling Our Capital Stories. Then we will wrap up with questions. Peter Lombardi then went through the slide presentation slide by slide. j Major Projects • Nauset Regional High School Renovation • Stony Brook School Roof & HVAC • Millstone Road Improvements • Captains Maintenance Building & Irrigation System • Rail Trail Extension to Linnell Landing • Millstone Road Community Housing Ongoing Commitments j • Integrated Water Resource Management Planning • Fleet, Facilities, and Equipment Re -investments Remaining Policy Questions • Drummer Boy Palk Improvements • Wing Island Access Improvements • Community Center • Future Cape Cod Sea Camps Projects Peter Lombardi then went through the Capital Projects List —mostly highlights —starting with those approved already and included in the plan. The next column is Spring of 2023 and you combine them to get the total aggregate need for this current fiscal year. Peter Lombardi then handed it over to Mimi Bernardo to talk about the funding sources that were chosen to fund the projects on the list. Mimi Bernardo said that because we do leverage many funding sources, it makes it very manageable. It keeps us focused on what needs to be done, and we can always reprioritize as we go along: Free Cash is the primary funding source of the capital improvement plan, but that doesn't mean that free cash funds the largest and most complicated projects, which we know is debt, excluded debt preferably. The Water Department and Golf Department are Enterprise Funds. They pay for their own debt and if they don't borrow Finance Committee Minutes January 11, 2023 Page 2 of 5 t P d G for their projects, they usp their retained earnings which is their free cash equivalent. Just because you are a Brewster taxpayer, and you pay taxes, you are technically funding projects that are paid for with General Fund money. The capital at the;Golf Course and the Water Department is only funded through their receipts. So just because you play golf, and you don't have town water, you are funding golf course projects, but you aren't funding water projects. The fire department usually has very healthy receipt reserve fund for appropriation account from their ambulance receipts. That balance usually runs about $2M. They use some of it to pay for their annual operating budget and for their capital. They can usually get the equipment they need. Short term debt is paid through the tax levy. Excluded debt will increase now based on last night. Funding sources are diversified and sustainable. For capital stabilization we have a healthy balance there and we aren't planning to use that in the next five years, She then went through the Capital Funding Sources Summary, Peter Lombardi then went on to the Nauset Regional & Brewster School FY23-FY27 Capital, information received from the school ;staff. The School Committee will take this up and vote on their 5 -year plan next week. There isn't a lot of supporting detail around this, but it will unfold over the next couple months. All 4 towns approved an annual capital allocation that goes to the region that increases 2.5% each year. It increases each year. For Brewster it is $275,000 and raised from the tax levy — what we pay to the district to support their capital needs across all the districts. With the major capital needs for the Stony Brook School, one important item to note is that if the eombined total of these projects over a 3 -year period exceeds 30% of the assessed value of the facility, thed' ther codes and requirements are triggered, Two projects totaling approximately $11 M for both. i Donna Kalinick then went through the Spring 2023 Capital Projects. Some of them have been mentioned already if they were $100;000 or more. Some are under that and are ongoing items. The majority of our Capital requests are funded at our` Annual Town Meeting. We did fund approximately $2M of the $3M total for this fiscal year. She discussed` Public Works projects and Water Department projects, also the Cape Cod Sea Camps remediation. We are working with a consultant and will get that out to bid soon. She then went through highlights of projects that were not already discussed. Donna Kalinick also went over the Free Cash Balances & Appropriations. They are'really hoping they will be able to accurately forecast theses revenues. If there is any type of recession, it is often these types of revenues that are hit — rental tax, meal tax, and motor vehicle tax. Right now, Free Cash is healthy with a year end balance of $1,15M which is 2.3% of the annual operating budget for the general fund. s She turned it over to Peter Lombardi to talk about our Capital Stories — the fun part! Peter Lombardi said it is the fun stuff. We do lots of things well, we don't always do the best job telling our stories. We hope this new way of looking at these stories can help us to do that on the Open Gov platform being as transparent as possible. Significant funds are being appropriated, and we are hopeful this helps folks navigate this much easier. There is a high-level overview of the project, funding sources, and when we think that project will come online. We are excited about this, we hope you have been able to take some time to look at the pages and if not, will be able to do so soon. He then opened it up for questions. Pete thanked the Finance 'Team for a great presentation. Bill Meehan said this is by far the finest presentation we have received. Don't underestimate the work that went into this. Will the town of Brewster support two elementary schools for the indefinite future? Peter Lombardi said there was a feasibility study about the possibility of combining those two schools. Recently, the School Committee took a vote to not recommend consolidation at this timelbut expressed a willingness to continue to monitor enrollment and reopen discussions when enrollment dropped to around the mid-50 mark. For the most part, once they get to 3 classes/grade, consolidation becomes a of easier practically speaking in terms of the State. As we talk about major looming expenditures, that is a policy discussion that will come up again in the context of what could be a significant debt exclusion to cover tAe cost of that work. Andy said the presentation was excellent and wanted to ask Peter Finance Committee Minutes January 11, 2023 Page 3 of S ,i , t 1 Lombardi about cost esti';mates for major projects. Given our experience with the Nauset Regional High School and the difficulty they had in making accurate cost estimations effected by covid, etc., do we have greater competence in the cost estimates for the major projects, so we don't have to go back and up all the estimates as we did in the school projects. Peter Lombardi answered our projects aren't on the same scale as the High School project. We have seen increases on the facilities side, less so on horizontal construction. We don't have a lot of major facility projects on�,our medium-term horizon, but we will continue to track it. That is part of the reason we update this plan annually. Frank said this was a very well thought out plan. When he looks at the summary page, at the totals, he is c¢ncerned with what he can and cannot see in this Capital Plan. Such as the Golf Course - $10.5M -Peter Lombardi answered that on that question, in the Capital Plan, reflects our annual debt obligations because that i`s how it will be financed. If you go to the detail in the Golf Budget, you will see there are annual lease payments for those projects. Frank saw $400,000 in remediation costs�at the Bay Property. Peter Lombardi answered it is for a former shooting range on the property. That is a conservative estimate for what we think the projec�''cost will be. We have done analysis on both properties, and this is the only part that needs to be cleaned up/ lead removal, we are planning to use ARPA funds for that work. Selectperson Chaffee thanked the team for the presentation —she has some concern about the proposed Linnel bike path extension. She would support pausing that project while the work goes onto develop the long-term plan of the Bay Property.,'$9M she would support holding off on. Peter Lombardi said at the same time we are finalizing design of the new Millstone Road improvements that includes a crossing from the new sidewalk over to the Sea Camps property. It is a fair point with a lot that has changed since we first initiated that project. Selectperson Chatelain said he shares Frank's concerns about the school improvements. How will the decision- making work there between the town boards and the school committee? Peter Lombardi said the School Committee has care, custody, and control of both schools and are the primary decision makers. They would want to look at a couple �f decades of what systems really makes sense. Generally, to this point, Town Administration, and our Bnergy Manager have been working with school officials on this early feasibility work, this is the really known major capital project. He is hopeful there will be some sensitivity on the school's part for working with the town in terms of what makes the most sense —overall, timing, and means of financing, etc. More to come on that. It is very early on. It does bare a lot of attention in the coming months. Selectperson Chatelain hopes the School Committee, as it goes through the process, that a114 options get considered. Peter Lombardi said that if the schools were to consolidate, it would only make sense at the Stony Broolc School. Reinvestment in the Stony Brook School does make good long-term sense. Selectperson Hoffmann echoed the thank you and thought the Capital Stories are just great and hopes the residents will really go in and look at all of this! The report we received was helpful as we move through this. She wonders with the library's change with the decision not to invest in renovation, and with the electronic records and archival database project, will they be included in the pr.`,oject? Peter Lombardi said that primarily included existing Town records in paper and hard copy in town offices`, transitioning to an electronic format for ease of access. Relative to the library, with the decision not to move forward with the major renovation, the Board of the library is going back and looking at where their priorities lige. Their director is set to retire in a couple of months, and the Board is eager to sit down with the new director and see what they think will be the capital needs for the future. Selectperson Whitney thanked the group as well for an excellent presentation. The addition of the Capital Stories is tremendous and hopefully will really help people understand what the Capital Projects are funding. Selectperson HoffmannMOVED to adjourn the meeting at 7:52 PM. Selectperson Chaffee second. Roll Call Vote: Selectperson Chatelain -yes, Selectperson Bingham -yes, Selectperson Chaffee -yes, Selectperson Hoffmann} yes, Chair Whitney -yes f The Select Board voted;' S -yes 0 -no 4. Nauset Regional High School Project —Discussion -none Fina��ce Committee Minutes ') January I1, 2023 �: Page 4 of S �� 5. Nauset Regional High School Budget —Discussion -none 6. Liaison Reports and Assignments -defer 7. Review and Approval of Minutes —Joint SB/FinCom 12/5/22 & 12/12/22; FinCom 10/19/22 & 11/30/22 Bill Meehan MOVED to' approve the 10/19/22 Minutes as presented. Andy Evans second. Roll Call Vote: Bill Meehan —yes, Franlc Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex' Hopper —yes, Chair Pete Dahl— yes The Committee voted: 7, yes 0 -no Honey left the meeting before the vote was taken. Bill Meehan MOVED toy approve the 11/30/22 Minutes as presented. Andy Evans second. Roll Call Vote: Bill Meehan —yes, Frank Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex Hopper —yes, Chair Pete Dahl— yes The Committee voted: 7 -yes 0 -no Bill Meehan MOVED to� approve the 12/5/22 Joint Minutes, the Finance Committee portion, as presented. Franlc Bridges second. -: Roll Call Vote: Bill Meehan —yes, Franlc Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex Hopper —yes, Chair Pete Dahl— yes The Committee voted: �-yes 0 -no sa Bill Meehan MOVED to` approve the 12/12/22 Joint Minutes, the Finance Committee portion, as presented. Franlc Brides second. Roll Call Vote: Bill Meehan —yes, Franlc Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex Hoppler —yes, Chair Pete Dahl— yes r The Committee voted: Z -yes 0 -no 8. Request for agenda items for future meetings —please email Pete 9. Matters Not Reasonably Anticipated by the Chair- none 10. Next Finance Committee Meeting —TBD 11. Adjournment Bill Meehan MOVED to adjourn the meeting at 7:57 PM. Frank Bridges second. Roll Call Vote: Bill Meehan —yes, Frank Bridges —yes, Robert Tobias —yes, Bob Young —yes, Alex Hopper — yes, Andy Evans —yes, Chair Pete Dahl— yes. The Committee voted: 73yes 0 -no Respectfully submitted, Beth Devine Packet of supporting materials on website for public review. Finance Canmtttee Minutes January I1, 2023 s. Page 5 of S a '� 5. Nauset Regional High School Budget —Discussion -none 6. Liaison Reports and Assignments -defer 7. Review and Approval of Minutes —Joint SB/FinCom 12/5/22 & 12/12/22; FinCom 10/19/22 & 11/30/22 Bill Meehan MOVED to' approve the 10/19/22 Minutes as presented. Andy Evans second. Roll Call Vote: Bill Meehan —yes, Franlc Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex' Hopper —yes, Chair Pete Dahl— yes The Committee voted: 7, yes 0 -no Honey left the meeting before the vote was taken. Bill Meehan MOVED toy approve the 11/30/22 Minutes as presented. Andy Evans second. Roll Call Vote: Bill Meehan —yes, Frank Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex Hopper —yes, Chair Pete Dahl— yes The Committee voted: 7 -yes 0 -no Bill Meehan MOVED to� approve the 12/5/22 Joint Minutes, the Finance Committee portion, as presented. Franlc Bridges second. -: Roll Call Vote: Bill Meehan —yes, Franlc Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex Hopper —yes, Chair Pete Dahl— yes The Committee voted: �-yes 0 -no sa Bill Meehan MOVED to` approve the 12/12/22 Joint Minutes, the Finance Committee portion, as presented. Franlc Brides second. Roll Call Vote: Bill Meehan —yes, Franlc Bridges —yes, Robert Tobias —yes, Bob Young —yes, Andy Evans —yes, Alex Hoppler —yes, Chair Pete Dahl— yes r The Committee voted: Z -yes 0 -no 8. Request for agenda items for future meetings —please email Pete 9. Matters Not Reasonably Anticipated by the Chair- none 10. Next Finance Committee Meeting —TBD 11. Adjournment Bill Meehan MOVED to adjourn the meeting at 7:57 PM. Frank Bridges second. Roll Call Vote: Bill Meehan —yes, Frank Bridges —yes, Robert Tobias —yes, Bob Young —yes, Alex Hopper — yes, Andy Evans —yes, Chair Pete Dahl— yes. The Committee voted: 73yes 0 -no Respectfully submitted, Beth Devine Packet of supporting materials on website for public review. Finance Canmtttee Minutes January I1, 2023 s. Page 5 of S a