HomeMy WebLinkAboutFCMeetingMinutes_06.05.12
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TOWN OF NORTH ANDOVER
FINANCE COMMITTEE
Meeting Minutes
Meeting Date:
June 5, 2012
Meeting Location: Town Hall, First Floor Meeting called to order: 6:45
Conference Room
Alan LeBovidge AL, Chairman Ramsey Bahrawy- RB
X
Tom Dugan TD, Vice Chairman 7:Robert Norbedo-RN
x X
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Ben Osgood-BO Matthew Remis-MRem
X X
Dan Leary -DL
X
Peter Besen-PB Pat Sifferlen, PS, Admin
X X
Donald Elliot DE
X
Non FinCom Members in Attendance
OTHERS: - Steve Weisman (SW), John Simons (JS), Ray Santilli (RS), Steve Foster (SF),Mike
Denault (MD), Hal Meyers (HM), Bob Morrison (BM), Bob Larochelle (BL)
Note: All FINCOM votes are subject to change upon receipt of new information.
Note: Documents used in this meeting are listed in Document Table, herein.
II. Previous Minutes Approved
DATE May 22, 2012 Approved
III. New Business
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AGENDA ITEM: A John Simons Discussion on Community Preservation
Discussion: AL introduces John Simons
JS discusses the list of Community Preservation Funds
First two are top priorities for the Stevens Estate
Restoration of exterior walls for $206,200
Window replacement $101,3000
Discussion on the 623 Osgood Street Land 15 acres for 1.4 million. This portion
connects a lot of town open space enhances the value of Osgood Hill, preserves the
purchase we will
be able to put parking lot on Osgood Street which is included in price.
No other discussion on rest of list.
BO will recues himself from the Ridgewood Cemetery restoration of the Main
Gate
Motion Taken by PB to vote favorable action on Ridgewood Cemetery
Restoration seconded by DL
Vote Taken 6 Y 0 N
Motion taken by BO to vote favorable action on rest of list of appropriations for
Community Preservation seconded by DL
Vote Taken 7 Y 0 N
Al How much money is in the preservation fund?
JS As of FY12 there is 3.8 million uncommitted funds. I will send you a spreadsheet.
By the end of FY 13 with CPA surcharge and match funds there will be 5.6 million
available and will be using 2.7 million
AGENDA ITEM: B Discussion on Article 26 ESCO
Discussion: RS believes there were still some unanswered questions that Fincom had and would
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like to introduce some of the Ameresco representatives.
RS passed out a list of questions (attached) he believed Fincom had.
PB If someone has a financial interest how are they considered an independent
representative of the town?
BO Does the town pay Peregrine?
SW the town does pay Peregrine out of the PW budget since spring of 09 they have
paid 15K
On this particular project net after rebate does not include Peregrine fees.
Question 2 Discussion
PB all the cost of software and maintenance of equipment, you are guaranteeing with
the 30K a year maint cost?
BO when would you go to Bond?
AM: 6-9 months after beginning of work we are using conservative approach with the
2.75% rate cash flow could be considerably higher if rate is lower. Will use existing
cash flow before we bond money.
Question 3
Town could do this under chapter 149 law but the town would not be able to
accomplish under a reasonable period of years. Town will have to Bond and pay for
the work rather than having energy savings pay for work.
AL With the cost of particular items would it be cheaper by the town to do separately
instead of bundling with a 20% mark up.
AM bundling 4 million work difference in profit margin goes away.
AL if some of these projects were a high priority why werent they on the CIP list.
Would the CIP go down?
RS we get 40 or 50 Cip requests a year. we dont fund them all we do a scoring system
TD: have any of these been on the list and where did they score.
RS No we usually wait for something to fail. We dont do a proactive approach.
Question 4 no discussion
Question 5 Fire Station and other projects were removed from list
Question 6 no discussion
Question 7 no discussion
Question 8 Discussion
SW this contract was based on qualifications not low bid even though Ameresco was
the lowest bid.
Question 9 Discussion
Lighting payback is slightly higher because the town has already done some level of
light upgrade.
Question 10 Discussion
DE my concern was the repair and upgrade of steam systems
SW if we had unlimited savings we would replace steam system given cash flow this
was avoidable.
TD or we use CIP and prioritize to replace steam systems.
Question 11 No discussion
Question 12 Discussion
RS these projects were dollar based. Would have to be within the cip guidelines
hat was appropriated.
Question 13 Discussion
Will completely abide by the vote of Town Meeting. Will pay Ameresco 39K and say
Thank you
Question 14 Discussion
AL any towns that are like us doing these projects?
RS Scituate Each town(14) within the MVPC can use Ameresco Bruce Thibedeau did
the scoring for us
SW If you put more towns together you get a more competitive bids.
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AGENDA ITEM
Discussion: Question 10 Discussion
DE my concern was the repair and upgrade of steam systems
SW if we had unlimited savings we would replace steam system given cash flow this
was avoidable.
TD or we use CIP and prioritize to replace steam systems.
Question 11 No discussion
Question 12 Discussion
RS these projects were dollar based. Would have to be within the cip guidelines
hat was appropriated.
Question 13 Discussion
Will completely abide by the vote of Town Meeting. Will pay Ameresco 39K and say
Thank you
Question 14 Discussion
AL any towns that are like us doing these projects?
RS Scituate Each town(14) within the MVPC can use Ameresco Bruce Thibedeau did
the scoring for us
SW If you put more towns together you get a more competitive bids
BO Can you run through how we do savings.
RS an example would be if Middle School had a 200K a year utility budget and they
will save 20K from projects. In FY14 their budget would still be 200k for utilities but
20K will be separately allocated for bonding. If Middles School sees 30K savings 20K
would go to bonding and 10K would go back to their budget.
TD Ameresco would be writing us a check.
?
Payment is done upon completion
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DOCUMENTS PROVIDED AT MEETING
V. Adjournment-
Motion: BO Unanimous
Seconded: RN Time: 9:15
IV. Next Meetings
June 12, 2012
TYPE FROM TO SUBJECT COMMENTS
ITEM #
1 List of John Simons Fincom
Community
Preservation
2 Questions Ray Santilli Fincom
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ITEM # ACTION ITEM INDIVID. COMPL. STATUS
DATE
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