HomeMy Public PortalAbout05-08-2012 Transfer Riverfront Project TOWN OF
1630 WATERTOWN
Office of the Town Manager
:•.1>" + .
Administration Building
149 Main Street
Watertown,MA 02472
Phone: 617-972-6465
Michael J. Driscoll Pax:617-972-6404
www.watertavn-ma.gov
Town Manager townmer@vaterrowu-ma.eov
To: Honorable Town Council
From: Michael J. Driscoll, Town Manager
Date: May 2, 2012
RE: Agenda Item—Transfer of Funds Request
As you recall, at the March 13, 2012 Town Council Meeting the Honorable Town
Council adopted conceptual recommendations on the Fiscal Year 2013-2017 Capital
Improvement Program including a recommendation in principle to provide up to $100,000
toward the overall $1,635,000 construction cost of the Watertown Riverfront Park Restoration
Project, subject to the issue being placed on a Town Council Agenda as a separate item for Town
Council's vote. (See attached Committee on Budget&Fiscal Oversight minutes—pages 1 & 5)
Subsequent to the action at the March 13t" Town Council Meeting, an Informational
PowerPoint Presentation on the above mentioned Riverfront Project was provided at the April
10, 2012 Town Council Meeting. (See excerpt from April 10, 2012 Town Council minutes)
As indicated in the attached page from the April 10°1 presentation titled "Proposed Town
Council Resolution", no finds will be expended until the Commonwealth of Massachusetts is
committed to financing at a level of at least $600,000 and frilly executing one or more project
phases of the Watertown Riverfront Park Restoration Project.
Therefore, as a follow-up to the Honorable Town Council's action at the April 10, 2012
Town Council Meeting, I respectfully request the attached transfer be placed on the May 8, 2012
Town Council Agenda.
Thank you for your consideration in this matter.
cc: Steven Magoon, Director of Community Development and Planning
Thomas J. Tracy, Town Auditor
Phyllis L. Marshall,Town Treasurer/Collector
TRANSFER AMOUNT $100,000
FROM: FY 12 TOWN COUNCIL RESERVE $ 100,000
0111152-570780
TO: FY 12 TRANSFER TO CAPITAL PROJ. - RIVERFRONT $ 100,000
0193059-590978
1 hereby certify to the availability, authority of funding source, mathematical accuracy
and appropriate fiscal year.
C_
DATE l TOWN AUDIT
Ji
Town of Watertown
Town Council Committee of the Budget and Fiscal Oversight
Report of the Meetings of February 6, 13,22,27 and March 5,2012
Report Date: March 13,2012
The purpose of the meetings was to review the Town's FY2013-FY2017 Capital Improvement
Program (CIP) as submitted by the Town Manager on January 11, 2012, and to make
recommendations to the Town Council. (See riun:n wavmerto rn-n,a govn)ncun,enrv;ee•.sox?DD=aoao r
The Committee convened on February 6,2012 at 7:00 pin. Present were Vincent Piccirilli,
chair; Angie Kounelis, vice chair; Cecilia Leak, secretary; Town Manager Michael Driscoll;
Town Auditor Tom Tracy; and Treasurer/Collector Phyllis Marshall. The discussion included:
• Mr. Driscoll gave an overview of the FY 2103-17 CIP program and FYI l and FY12
loan orders.
• Ms. Marshall presented the CIP items for the Departments of Administration,
Information Technology, Fire, Library, Police, Senior Center, and Skating Arena.
• There was an initial discussion of the Energy Services Company (ESCO) audit by
Johnson Controls and potential budget impact of executing the work.
• Mr. Tracy presented an interest and principal cost analysis of the CIP.
The meeting adjourned at 9:30 pm.
The Committee reconvened on February 13 at 7:00 pm. Present were Mr. Piccirilli, Ms.
Kounelis, Ms. Leak, Mr. Driscoll, Mr. Tracy and Ms. Marshall. Also present were Vice
President Stephen Corbett; Superintendent of Public Works Gerald Mee; and Recreation
Director Peter Centola. Discussion included the following:
• Councilor Corbett asked to present a funding request to the Committee for a project that
was not included in the CIP. He presented the phased proposal by Friends of the
Riverfront that was developed as part of the ongoing discussion with the State to
allocate funding for the Watertown Riverfront Park Restoration Project(see attachment
A). Councilor Corbett asked the Committee to consider recommending that the Town
Council allocate up to $100,000 to find a portion of the$1.635M riverfront restoration
project. He noted that this commitment would assist in moving the State forward to
finding the project. Importantly,he noted that any finding by the Town world need to
be at least matched by other stakeholders.
• Mr. Centola presented the parks and recreation CIP items, focusing on the 552 Main St
and Casey Park renovations. The Committee asked for an informational presentation at
the February 28°i Town Council meeting about the plans for these two parks.
• Mr. Mee presented the Public Works projects(see attachment B). He noted the use of
MWRA finding to undertake a number of projects within the town to address potential
problems related to water, drain and sewer systems. For the proposed local road
projects for 2012, the Committee requested that the updated Roadway Management
Study be referred to the Committee on Public Works before further discussion took
place.
Budget and Fiscal Oversight Committee Report—March 13, 2012
• Mr.Tracy presented a summary of the available balances in the DPW capital account
(see attachment Q. The total as of 2/9/12 is$9,288,397 consisting of$5,699,014 in
capital accounts, $484,755 in bonded finds, and $3,104,628 in non-bonded funds. Of
the $9.3M,the summary shows 73.7% is sewer finds, 4.6%water funds, 10.1%streets
and sidewalks, and 11.6% for buildings and equipment.
The Committee adjourned at 9:30 pm.
The Committee reconvened on February 22 at 5:30 pm.Present were Mr. Piccirilli, Ms.
Kounelis,Ms. Leak, Mr. Driscoll, Mr. Tracy and Ms. Marshall. Also present were President
Mark Sideris; School Committee member and chair of Buildings and Grounds subcommittee
Michael Shepard;Director of School Business Services Jack Loughran; Director of School
Facilities Jay Francione; and Beth Greenblatt of Beacon Integrated Solutions. The discussion
was to review the proposed ESCO agreement with Johnson Controls and the implications for
Town and School budgets:
• Councilor Piccirilli explained the overall goal of an ESCO agreement—to save energy
and energy-related costs—is one of the Town's Budget priorities. In December 2011
Johnson Controls submitted a detailed baseline energy audit of all Town and School
buildings to the Town; and outlined a proposal for capital investment in building
updates/renovations and an ongoing management plan to achieve energy-savings. In
the ESCO plan submitted by Johnson Controls, the Town would need to borrow$8M to
implement the energy-related Town and School building updates and renovations.
Money currently in the Town and School budgets for energy-related operating expenses
that would be saved by the energy conservation upgrades would be redirected and
applied to pay the debt service on this loan. Johnson Controls would manage the
implementation of the updates/renovations and monitor energy usage. The contract
would guarantee a certain level of energy-savings.
• Ms. Greenblatt, a consultant who was recently engaged by the Town to oversee the
apalysis of the proposed agreement, presented an overview of her company's
background and review of the required due diligence and risk management assessment
necessary before committing to an ESCO agreement(see attachment D). Following
Ms. Greenblatt's presentation of the Johnson Control proposal, the Committee agreed
that because of the need to do a thorough due diligence, it was not possible to consider
the ESCO agreement in developing the FY2013 budget.
The Committee adjourned at 7:45 pm.
The Committee reconvened on February 27 at 7:00 pun. Present were Mr. Piccirilli, Ms.
Kounelis, Mr. Driscoll, Mr. Tracy and Ms. Marshall. (Ms.Leak was out of town) Also present
were Mr. Loughran;Mr. Francione; and Anne Hardiman, Principal of the Hosmer School. .
The discussion was to review the school department CIP items:
• The School subcommittee on Buildings and Grounds met on February 10 to develop the
information presented this evening.
• Mr. Francione presented a list of how the approximately$197,000 in capital fund
balances will be spent before the end of this fiscal year(see attachment E).
• Mr. Loughran will send an updated list of how the approximately $161,000 of the
balance of$358,921 in capital finds was spent(see attachment F).
Page 2 of 7
Budget and Fiscal Oversight Committee Report—March 13, 2012
• Mr. Francione presented the list of FY2013 projects to be done in the summer of 2012
(see attachment G). This work totals $442,300.
• Ms. Hardiman discussed the$95,000 item for the Hosmer Connections/Autism
Awareness program. The finds are to develop the architectural plans and a cost
estimate,not for the actual construction work.
• There was further discussion on CIP items in future years and it was noted that the
School Committee needs to develop a long-term vision for programming to insure the
capital spending is aligned with those needs.
• It was noted that the work on the new phone system was about two-thirds done, and was
expected to be complete by the end of the FY2012.
The Committee adjourned at 9:10 pm.
The Committee reconvened on March 5 at 7:00 pm. Present were Mr. Piccirilli, Ms. Kounelis,
Ms. Leak, Mr. Driscoll, Mr.Tracy and Ms. Marshall. Also present were Councilors Anthony
Palomba and Ken Woodland; and Mr. Francione.
First, there was follow-up discussion on CIP items from previous meetings:
• As a follow up to the February 28°i informational presentation on the proposed 552
Main Street park renovations, Councilor Woodland said that he would be holding a
community meeting with neighbors and the Recreation Department to discuss the
proposed plans prior to a final approval. The Committee felt that finding for the project
should not be held up, but the concerns of the neighborhood should be addressed before
the project is put out to bid.
• Councilor Kounelis felt there may be safety issues with the chain link fencing
surrounding the Casey Park ice rink, and asked Mr. Driscoll to provide some additional
information to the Council on this.
• Councilor Piccirilli noted that the DPW did not provide the updated list of pending road
projects for which finding has not been identified, and asked that Mr. Mee provide this
list when he returns.
Next,the Committee voted unanimously to make the following conceptual recommendations to
the Town Council regarding the FY2013 Capital Improvement Program:
1) The Comprehensive Master Plan will be funded from FY12 reserve funds, with a
transfer request to be brought forward in April or May 2012 for a vote of the Town
Council.
2) In last year's recommendations, Ms.Marshall was asked to work with bond counsel to
use bonded funds left over from the purchase of the new pumper in FYI to be
allocated to the purchase of the new ambulance in FYI 1, but it turns out that this is not
allowed because the FYI bond was for equipment with a 20 year life, and the
ambulance has only a 10 year useful life. Therefore these leftover finds should be
applied to the new pumper truck in the proposed FY12 loan order, upon a vote of the
Town Council.
Page 3 of 7
Budget and Fiscal Oversight Committee Report—March 13, 2012
3) For the 552 Main Street park renovations,the intention was to use the approximately
$300,000 in funds left over from the construction of the new police station on the park
along with a$200,OOO loan order. However park renovations have only a 15 year
useful life, so this is not permitted as the bond was for 20 years. Therefore
approximately$300,000 in accrued FYI 0, FYI I and FY12 tax revenue recreation
capital fiords will be used instead to partially fund the renovations. In addition, the
Recreation Department shall make an updated presentation to the Town Council to
answer the concerns of the neighborhood about the 552 Main Street park renovations,
prior to sending the project out to bid.
4) For the balance of the proposed FYI I loan order totaling$1,025,000 (top of page 3 of
the CIP),the recommendation were to make the following changes to reduce the total to
$862,000:
a) Purchase the public works equipment swap loader and sidewalk tractor.
b) Purchase the ambulance, $210,000 and the senior shuttle bus, $110,000.
c) Proceed with the 552 Main St recreation improvements using$200,000 in
bonded funds.
d) Defer the fire building improvements of$138,000, pending architect's design
review and issubnce of specifications.
e) Reduce the skating rink improvements to $25,000 based on a new estimate for
cost of the compressors.
5) For the revised proposed FY12 loan order totaling$730,000 (bottom of page 3 of the
CIP),the recommendation were to make the following changes to reduce the total to
$645,000:
a) Move forward with the new fire pumper truck to replace a 1994 model, for
$515,000 minus the leftover finds of approximately$70,000.
b) Move forward with the$150,000 IT equipment consisting of a$40K MUNIS
server, $60K for a network server, and $50K in GIS expansion to add assessors,
DPW, police, fire, and census data from the clerk's office.
c) Move forward with$50,000 police equipment consisting of$12,500 for tactical
bullet-proof vests, $18,000 for an evidence photo validation system, and
$19,500 for two new speed radar trailers to replace the two older units.
d) Remove the$15,000 in fire equipment which was fora radio comparator
transceiver. This will be funded from tax revenues, and the department has
applied for grants.
6) Regarding the Energy Services Company(ESCO)project, the administration will not be
able to complete the due diligence required to proceed with this project, prior to the
April submission of the FY13 budget. Therefore, the recommendation is for both the
Town Manager and the School Committee to proceed with the development of their
FYI budgets without the ESCO project,while continuing with the process to
implement the ESCO project in the FY14 budget.
Page 4 of 7
Budget and Fiscal Oversight Committee Report—March 13, 2012
7) For School Department projects:
a) Abort$197,000 remains of the$358,921 unspent capital find balance from a
year ago, and school department will spend this on the remaining projects as
presented,prior to June 30, 2012.
b) Recommend proceeding with the borrowing and/or appropriation of$442,300
for FYI for the school department to use on the projects indicated in the
revised FY2013-FY2017 Capital Improvements list, with work to be done in the
summer 2012.
8) For street and sidewalk construction,recommend proceeding with the $2.5M borrowing
for FYI to be used for summer 2012 projects as identified in the CIP Scenario A in the
updated Pavement Management Program presented on February 21, 2012, with the final
list of streets to be done using local finds to be referred to the Committee on Public
Woks for review and recommendations prior to the commencement of work.
9) For the police department shotgun replacement of$11,500,this item will be removed
from the CIP as the department will seek other funding sources such as grants.
10)For the DPW parks division greens groomer/sweeper of$22,700,this item will be
removed from the CIP as the department will use existing parks capital finds.
1 I)Regarding Vice President Corbett's proposal for the Town to provide up to $100,000
towards the overall $1.635M construction cost of the Watertown Riverfront Park
Restoration Project,the Committee agreed in principle as follows:
a) The concept has merit as a means to move the project up the priority list with the
Department of Conservation and Recreation, because it is currently on hold due
to lack of construction funding from the state.
b) The potential contribution from the Town can be used to leverage donations
from other stakeholders, and the amount of the Town's contribution may be
dependent on what other stakeholders contribute.
c) The fiords should only be used for a phase of the project worth at least$500,000.
d) The use of the finds would be contingent upon release of construction finds by
the state for the entire phase.
e) Any potential Town contribution should be allocated from available FY2012
reserve funds, with the transfer being made in FY2012.
f) This issue should be placed on the agenda as a separate item for the Town
Council to vote on.
12)The DPW shall provide this Committee with an updated list of all proposed or pending
capital roadway projects, whether or not the funding sources have been identified, and
the Committee recommends that such a list be include as part of the CIP package in
future years.
Page 5 of 7
Budget and Fiscal Oversight Committee Report—March 13, 2012
Finally, the Mr. Driscoll presented the following report on how the Committee's conceptual
recommendations would affect the CIP line item and overall FY 2013 budget, if adopted by the
Town Council:
a) The assumptions in the November 9, 2011 Preliminary Budget Overview expenditure
forecast were revised, first based on the CIP dated 1/11/12 on February 6 (see
attachment H dated 2/6/12).
The revised expenditure forecast for debt and interest for FY2013 (page 49 of the
attachment) was reduced by$966,258 from$8,127,050 to $7,160,792, primarily by
moving the $2.5M street and sidewalk borrowing from FY2012 to FY2013. FY2014
was reduced by$872,638 and FY2015 was reduced by$35,830.
b) Debt and Interest payments in FY2013 would be reduced by$234,450, consisting of a
reduction in principal of$28,000 and a reduction in interest of$206,450, per the
difference between the two CIP cost analyses provided by Mr.Tracy.
The original analysis(see attachment I) is per the CIP dated 1/11/12 and shows the
items that would be deleted in red and the items that have been deferred in yellow. The
revised analysis (see attachment J) is based on the Committee's recommendations.
c) Total FY20t3 debt and interest would be$6,926,342, consisting of revised November
9, 2011 estimate of$7,160,792 minus $234,450 in additional debt& interest reductions
(see attachment K dated 3/5/12, page 49).
d) Total FY2013 Capital Spending would be $7,830,767, consisting of$6,926,342 in debt
and interest plus $904,425 on non-debt capital expenditures (see attachment K page 50).
e) The$234,450 in additional debt and interest reductions will fiirther reduce the FY2013
expenditure assumptions from$102,184,279 to$101,949,829 (see attachment K page
55).
f) Based on the latest FY2013 expenditure assumptions of$101,949,829, the total FY2013
capital spending of$7,830,767 would be 7.69%of the budget.
g) Based on the latest FY2013 revenue assumptions of$101,817,183, the total FY2013
capital spending of$7,830,767 would be 7.7%of the budget.
h) The Committee feels this meets the FY2013 Budget Policy Guideline that the Town
should seek to make capital expenditures (including debt and exclusive of enterprise
finds)equal to at least 7.5-8%of the operating budget.
The meeting adjourned at 8:30 pm.
Submitted by
Cecilia Lenk, Secretary
Page 6 of 7
Budget and Fiscal Oversight Committee Report—March 13, 2012
List of attachments:
A. Watertown Riverfront Park Restoration Project Phased Costs
B. Public Works Memo 2/13/12 Capital Expenditures (12 pages)
C. Summary of DPW Capital Funds as of 2/9/12 (2 pages)
D. Presentation by Beacon on Energy Saving Performance Contracting(5 pages)
E. School Department Proposed Use of Existing Unspent Capital Finds from prior year
F. School Department Expenditure of Existing Unspent Capital Funds from prior year
G. School Proposed FY2013-2017 Capital Improvement Projects, revised 2/28/12 (6 pages)
H. November 9, 2011 Preliminary Budget Expenditure Forecast page 49 revised 2/6/12
L CIP Principal &Interest Analysis per original CIP dated 1/1 I/12 (2 pages)
J. CIP Principal &Interest Analysis per recommendations 3/5/12 (2 pages)
K.November 9, 2011 Preliminary Budget Expenditure Forecast revised 3/5/12 (3 pages)
Page 7 of 7
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Bank Stabilization $20 K Bank Stabilization $20 K Path $135 K Paul Street $40 K
Granite Steps $25 K Wetland $55 K Road Improvement $55 K Hiking Trail $45 K
Monument $40 K Path $165 K Bank Stabilization $15 K Deck $40 K
Fishing Stone $1S K Deck S40 K Granite Overlook $35 K Granite Steps $35 K
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Woodland, Vice President Stephen P. Corbett and Council President Mark S. Sideris
voting in the affirmative.
Councilor Leak read the proclamation recognizing the 25`h Anniversary of Project
Literacy. Ms.Laurie Gardner and Susan Viskin thanked the Council for the recognition.
Vice President Corbett moved to accept the proclamation, seconded by Councilor
Donohue and adopted by voice vote with Councilors John A. Donohue, Susan G.
Falkoff, Anthony Palomba,Angeline B. Kounelis, Cecilia Lenk, Vincent J. Piccirilli, Jr.,
Kenneth M. Woodland,Vice President Stephen P. Corbett and Council President Mark
S. Sideris voting in the affirmative.
7b) Informational Power Point presentation on the Riverfi•ont Project—Vice
President Stephen P. Corbett and Councilor Cecilia Leak: A complete presentation
of the Riverfi•ont Project was provided to the Town Council by Councilor Lenk and
Vice President Corbett and placed on the Town's website,
The Chair noted that Steve Rothstein, President of Perkins School for the Blind
was in the audience.
Councilor Corbett provided background information on the 1.65 million dollar
Riverfi•ont project which he noted has been permitted and endorsed. The mile
long multipath restoration project is a public/private partnership of the following:
DCR; Town of Watertown; Perkins School for the Blind; and the Lawrence and
Lillian Solomon Fund as well as other groups and individuals.
Councilor Leak indicated that private donations and a Town commitment of
$100,000.00 are contingent on the State funding an initial $600,000.00 of one or
more of the phases of the project. It was also noted that Perkins School has
committed to maintaining the Braille Trail but that the DCR will be responsible
for most of the maintenance of the Riverfi•ont trail. Vice President Corbett
indicated that there has been talk of approaching local businesses for donations.
The Town Manager stated that the proposed $100,000.00 Town contribution was
looked on favorably by the Budget and Fiscal Oversight Committee and was so
noted in their report of March 13"'. He stated that if the Town Council was in
favor of the commitment, a transfer of finds could be placed on the next agenda
for discussion and vote. The Manager fiirther noted that the transfer, if adopted,
would be placed in the Capital Improvements Project account which allows the
monies to cross fiscal years,
The Chair asked for a Sense of the Meeting vote in support of the Riverfi•ont
Project. So moved by Councilor Falkoff, seconded by Councilor Lenk and
adopted by unanimous roll call vote with Councilors John A. Donohue, Susan G.
Falkoff,Anthony Palomba, Angeline B. Kounelis, Cecilia Lenk, Vincent J.
Piccirilli,Jr., Kenneth M. Woodland, Vice President Stephen P. Corbett and
Council President Mark S. Sideris voting in the affirmative.
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