CAPITAL OUTLAY COMMITTEE

JANUARY 28, 2010

                                                            MINUTES

The meeting of the Capital Outlay Committee was held at 7:30 pm in the Selectmen's Meeting room and was called to order at 7:36 p.m. by Chair Paul Linehan.

Members Present:

Chair:                           Paul Linehan

Board of Selectmen:   Walter "Joe" Roach , Alternate Richard Powell

Finance Committee:    Gordon Gladstone and Brian Fitzgerald

School Committee:       Mitch Blaustein and Alison Rutley

Finance Director:          Bill Fowler (ex-officio)

Town Administrator:     Benjamin E. Puritz (ex-officio)

Others Present:

Superintendent of Public Works:  Eric Hooper

1.   Administrative Items

Approval of December 17 , 2009 Minutes

MOVED and SECONDED to accept the December 17 , 2009 Minutes  VOTED: 4-0-1

2. Review Balances in Previous Authorizations

School Committee member Alison Rutley distributed a memo dated January 28, 2010 from Susan Owen, Business Manager for the School Department addressed to Dr. Barbara J. Dunham, Superintendent of Schools re Capital Outlay.  In the memo the School Committee voted on January 20, 2010 to return unused funds from the following capital accounts: East Fields - $17.16, Post Construction Repairs SHS - $332.33 and HVAC Sharon Middle School - $1,059.34 for a total of $1,4808.83.  In addition, the memo cited additional funds that had previously been voted to the Middle School were identified that are no longer required to do the work originally requested as this scope will be done by the voter-approved over-ride Middle School renovation project, totaling $79,885.40 from FY’08 authorizations; $14,923 and $7,280.80 from FY’09 authorizations.  Several other projects were identified with remaining balances that have not been closed out.  There was discussion on how to deal with the unused Capital Outlay authorizations.  Bill Fowler to review outstanding balances and advise.

3. Discuss/review policies on Capital Purchases

Chair Linehan stated that the Capital Outlay Request minimum qualification is $10,000 value with a five-year life span.  There was discussion re Police vehicles having a life span of three years and are then passed down to other Town departments for use.  Chair Linehan discussed with the Committee whether or not it is permissible for police vehicles to have a primary purpose of 3-year life span rather than a 5-year span and if this satisfies the legal requirements.  Town Administrator, Benjamin Puritz, stated it does satisfy the legal requirements considering residual value and is, therefore, permissible.  Chair Linehan has asked that Chief Bernstein attend the next Capital Outlay Committee meeting to discuss police vehicles.

Council on Aging vehicles were also discussed.  Council on Aging Director, Norma Fitzgerald to be at next meeting re COA van and bus.

Also discussed were the purchases of Fire Department boots and pagers.  Are these items properly a Capital purchase or a segregated operating budget account?  The Town Administrator and Finance Director will discuss this matter with Fire Chief Dennis Mann.

DPW Superintendent Eric Hooper presented to the committee information re repair vs. a purchase of a new front end loader.  The one DPW has now is inoperable at this time.  Since 2007 repairs have been made and are very costly.   Repairs now need to be done re hydraulic leakage and a transmission replacement and a remanufactured engine at a cost in the vicinity of $17,650 and a new one would cost around $125,000.  There have been major problems since 2007.  There is no guarantee that these problems won’t happen again.  Every time the front end loader goes in for repairs DPW is left without the use of the vehicle for weeks. 

The caretaker’s house at the Community Center was discussed and Eric Hooper said that they have been getting quotes.  Selectman Roach has talked with Town Engineer Peter O’Cain and Building Inspector Joseph Kent re this matter and they are drawing up an RFP for the Caretaker’s House.  They would check to see if this project should go forward or not.

Mr. Hooper talked about the windows for the Police Station, Fire Station and Municipal Building.  There will be a bid going out for these windows.

Finance Director, Bill Fowler to have information for next meeting re funds that haven’t been expended and real locatable funds.

4. Debt Reduction Plan

Two Debt Reduction spreadsheets of debt reduction plans were distributed to the Committee FY’11 (one for a 6.0% and the other for a 6.5% COC budget relative to Town’s net operating budget).  FY’10, the Committee had voted not to exceed 6.0% budget (5.93% total budget with 5.55% in debt service) to help relieve pressure on operating budget.  The Committee will need to decide what percentage to target.

5.   Future Meeting Date and Agenda Items

      Next Meeting: February 25, 2010 at 7:00 p.m. Selectmen’s Meeting Room

      It was MOVED and SECONDED to adjourn.  VOTED: 5-0-0

      The meeting was adjourned at 8:40 p.m.