CIP 9/5/12

Meredith Capital Improvements Program (CIP) Advisory Committee Meeting Minutes
September 5, 2012

Members Present:                                                         
Lou Kahn, Chairman, Planning Board Rep.                            
Jack Carty, School Board Rep.
Ed Touhey, Planning Board Rep.                                                                                            
Miller Lovett, Board of Selectmen Rep.
Barbara Clark
Dave Thorpe
Jeanie Forrester                                    

Staff Present:                                                                   
Phil Warren, Town Manager                                                                                              
Brenda Vittner, Administrative Services Director                                                                                               
John Edgar, Community Development Director                                                                                               
Mike Faller, Public Works Director                                                                                               
Dan Leonard, Water and Sewer Supt.

Chairman Lou Kahn called the meeting of the Capital Improvements Program Advisory Committee to order at 7:05 PM on Wednesday, September 5, 2012 at the Town Hall Annex.

Minutes.  The Committee reviewed draft minutes from 6/6/12 and 6/20/12.  Chairman Kahn called for any corrections.  There being none, Chairman Kahn deemed the minutes approved by acclamation. 

Update: Administrative Services.  

Brenda Vittner, Administrative Services Director advised the Committee that Meredith is participating in a group bond sale coordinated by the NH Bond Bank.  The bond sale occurs next week. Approximately $1.042 mil of Meredith’s debt, issued through USDA Rural Development, is included in the re-financing.  The rate will be reduced from 4.125% to 2.599-2.908%.  The term will be reduced from the 25 years remaining on the original loan to a 15 year term.  Over the term of the loan, approximately $350,000 in interest will be saved.  Annual debt payments will increase from $71,639.01 to approximately $95,000. Lou noted that the CIP Advisory Committee anticipates debt retirement as a means to support additional capital investment.  Brenda advised that the estimated amount of debt reduction between 2012 and 2013 was approximately $35,000 and would be reduced by the increase in the refinancing payment. Phil and Brenda assured the committee that although the payment is higher, the amount of debt retirement ($35,000) would still be available to the committee for planning purposes.

There was general discussion regarding the overall financial condition of the town including the fund balance, stability of non-property tax revenues and the tax base.

Update: Public Works Department. 

Phil Warren and Mike Faller reviewed with the Committee a 2013 DPW Equipment Inventory/ Replacement Schedule.  Two (2) F550 Ford Dump trucks are scheduled for replacement in 2013 at $90,000 per truck.  The departmental schedule includes the replacement of a Kenworth Dump/Sander ($185,000), Holder sidewalk tractor ($100,000), Case backhoe ($110,000) in 2014.

Additional replacements are scheduled through 2020.  There was discussion regarding the need to adequately fund the DPW Equipment Expendable Trust Fund.

Phil Warren and Mike Faller reviewed with the Committee a 2013 Road Projects Summary.  Lou Kahn noted that last year the Committee recommended and additional $100,000 of funding towards roads.  Phil noted that all road maintenance in the form of overlays, chip seals, and improvements less than the CIP threshold should be viewed as re-occurring expenses and ought to be included in the departmental budget.

Phil advised that he and Mike are not happy with the Road Surface Management System  (RSMS) program and exploring alternative pavement management programs.

Phil advised that internal committee work would begin this fall regarding the feasibility of replacing the DPW garage.  At this point in time there are no requests for soft cost or construction funding.  Phil anticipates that there would be an update for the Committee in the Spring of 2013.  Issues that will also be part of the analysis include: energy, air quality, fuel tanks, sewer, water and road access.

Update: Fire Department. 

Phil Warren reviewed with the Committee a Project Identification Form for a Heavy Rescue Vehicle revised to 8/20/12 and the 2011 Fire Department Equipment Inventory/Replacement Schedule. The current revised estimated cost of the vehicle is $550,000.  There was discussion regarding the funding of the Fire Equipment Expendable Trust for this vehicle and subsequent apparatus replacements.

Update: Water Department.

Phil Warren discussed with the committee two future water projects but emphasized that in both instances, (1) it is not his intention to have these items scheduled in the Capital Improvements Program but rather to get the needs identified and “on-the-table”; and (2) he plans to build up the Water Department’s reserves to pay for these improvements. 

Phil Warren and Dan Leonard reviewed with the committee a Project Identification Form for Bayshore Drive and Water Street water main replacements ($350,000).  There was discussion regarding the need for the projects relative to fire protection and water quality.  Dan showed the Committee a section of pipe from Bayshore Drive that was heavily turberculated. There was discussion about possibly bundling these two projects into one for bidding purposes.

A Project Identification Form for a generator replacement/upgrade at the treatment plant was reviewed.  Dan indicated that the water treatment plant currently has a 175 kW generator. This generator is not capable of running the entire plant at full capacity.  A generator assessment done in 2011 by Weston & Sampson recommends a 250 kW generator be installed at the water plant. The generator from the plant would go to the fire station, and the fire station generator would go to town hall ($200,000).  Grant funding will be also sought to offset 50% of the cost of the Water Department generator.

Other Business. Lou Kahn requested that hard copies of documents for review be provided to the Committee.

Jack Carty distributed a memorandum from Maryellen Ormond and Trish Temperino to the School Board dated August 31, 2012.  Jack summarized the circumstances that contributed to the district’s fund balance ($967,355) and the Board’s decision to encumber funds for various purposes ($365,759).

There was general discussion regarding the district’s 6-year Capital Improvement Plan, enrollment trends, building capacities and potential opportunities for collaboration.

Next Meeting. 

The next meeting of the CIP Advisory Committee is scheduled for Wednesday, September 12th, 7:00 PM at the Annex. 

Adjourn.  

With no further business to come before the Committee, the Chairman adjourned the meeting at 9:00 PM.

Respectfully Submitted,
John Edgar
Community Development Director
September 6, 2012

Approved: September 12, 2012