Back to Capital Outlay Committee Minutes
Attending: Chairman Ray Eisenbies, Ron Kirven, Lucy Hancock, Jonathan Asher and Andy Mooradian (both representing the Advisory Committee), Ted Alexiades (Town Accountant)
Guests: Dennis Corcoran (Hingham Public Library), Mark Thorell (Recreation Department), Tory Dolan (Recreation Commission), Randy Sylvester and Manny DaSilva (Department of Public Works)
Ray Eisenbies called the meeting to order at 7:00 PM in the 3rd floor South Hearing Room.
Capital Budget Request – Hingham Public Library
Library Director Dennis Corcoran presented the proposed capital outlay requests for the next six years. He would like to spend $20,000 on replacement of computers and related equipment in each of the six years. Ted Alexiades mentioned the virtual desktop concept, and Dennis agreed that this is worth investigating. The thin-client environment would work for some of the public use PCs but perhaps not for the HPL staff using the Old Colony Library Network. Ted noted that Steve Becker (Town Webmaster) is pursuing the virtualization of the servers for all Town departments. Dennis offered the library as a test site when the Town is at the thin-client stage.
The key capital request for 2011 is the replacement of the heating system boilers. They are well beyond their useful life and may or may not last a few more years. Replacement boilers would save 23% of the library’s natural gas costs, reduce stack pollution emitted, and re-gain space in the boiler room. Asbestos removal would be done very carefully in order to prevent exposure and avoid potential liability issues. Dennis has considered the purchase of a generator that would be used if the need arises to shed power and to keep the library open in the case of a power reduction or outage. The cost of a generator is about $140,000. The Committee briefly discussed the idea of a power co-generation plant instead of new boilers and a generator. Ted and Dennis agreed to get more information about co-generation.
In comparing last year’s forecast of capital requests, Committee members noticed that painting and parking-lot repair (total of $150,000) are no longer in the 2011 list. Dennis replied that this work is more aesthetic than functional. The painting has been pushed out a few years, as has the roof replacement. The parking-lot repair is no longer on the horizon.
Capital Budget Request – Recreation Department
Recreation Director Mark Thorell presented the proposed capital outlay requests for the next six years. Expenditures fall into the following three categories: playground replacement, Fitness Room equipment, and Recreation Center equipment / arcades. The Recreation Center and Fitness Room are self-funding through Recreation Department revenue; the playgrounds are not. Committee members suggested that Mark investigate the cost of leasing versus buying the fitness equipment. (Operating lease not capital lease.) Newer equipment would make us more competitive with other health clubs and fitness centers.
The Recreation Department does not yet have the software that was approved by the COC in October. The RFP is in the hands of the Selectmen. Andy Mooradian will ask Kevin Paicos (Town Administrator) to keep the process moving.
Capital Budget Request – Department of Public Works (including Landfill)
DPW Director Randy Sylvester presented the proposed capital outlay requests for the DPW for the next six years. He was accompanied by Manny DaSilva, Maintenance Supervisor. The most important item on the 2011 list is a new catch basin cleaner / sander that is needed because the current truck was totaled in a recent storm. Additional items for 2011 include a road sweeper, two ¾-ton pick-up trucks, and a dump truck with sander. Committee members noted that the replacement schedule does not have to tie directly to the number of years of use; the approach can be to move items out in the schedule if replacement is not needed until later. Randy will reevaluate the schedule and send the changes to Ted.
Several private wells must be closed in the Lewis Court neighborhood (off Hersey Street). This will require the installation of a water main extension. The anticipated cost of this project is $87,000. Upon project completion, the six affected homeowners will become Aquarion customers.
The DPW / Highway Department maintains the Town playing fields. The capital project list includes $10,000 per year for infield rehabilitation. This maintenance was cut from last year’s budget. The DPW also mows most of the fields in Hingham, including those belonging to the School and Recreation Departments.
Randy also presented the proposed capital outlay requests for the landfill. The equipment schedule is the same as last year. Items for 2011 include replacement of one closed-top trash trailer, repair and tires for existing trailers, and replacement of a front-end loader. Randy will get quotes on buying a used front-end loader rather than a new one. The DPW is working with the MA DEP regarding plans to cap the landfill. At this point in time, the landfill cap costs are not certain, but Town officials expect to have enough funds for this project and to complete it in 2012.
The landfill scale (to weigh commercial vehicles) is installed, and the wiring is complete. The remote station is due to arrive by late January. The next step is to build the ramps. Randy will update the COC when the pay structure is established. Revenue from the scale will go back to the landfill.
Other Business
The Selectmen and the Advisory Committee have requested that the COC have a preliminary estimate of capital expenditures before the economic summit on 1/31. The COC will establish a set of criteria by which to determine if a capital item qualifies as a candidate for recommendation. Jon Asher will email the proposed criteria to the COC for review and approval at the 1/20 meeting. The COC will review the 2011 and 2012 capital requests against the criteria, determine which ones are qualified candidates, and rank them in priority order. Then the COC will decide which items to fund through the capital budget and which ones (if any) to fund via borrowing (short-term debt). For FY11 and beyond, the Board of Selectmen has taken the position that capital expenditures will no longer be funded from the General Fund Balance reserves. Ted Alexiades will email Committee members the spreadsheet that can be used for sensitivity analysis.
The Advisory Committee has submitted a warrant article to the Selectmen regarding the Capital Outlay Committee. The purpose is to clean up Part 2 of Article 14 of the Town’s General By-Laws. COC members unanimously approved the revised By-Law wording.
Ron Kirven will update the minutes from the 12/3/2009 COC meeting and present them for approval at the 1/20 COC meeting.
During this budget season, the COC will meet on Wednesdays at 7:00 PM.
The meeting was adjourned at 9:35 PM.
Respectfully submitted,
Lucy Hancock, Secretary