Capital Improvement Policy Committee Meeting ~ November 30, 2022

2022-11-30 · Capital Improvement Committee · 1:56:10 · watch on YouTube →

The first meeting of the Capital Improvement Program committee for the 2023 cycle, and the first for new town manager Jerry Douglas and for a new member. Paul, the committee's chair, walked through how the process works: department heads update replacement schedules, the manager builds a five-year plan, applications go to the selectmen for an initial look and then to this committee, which scores them individually and returns a ranking. Jerry Douglas (?) presented the materials in a new format organised by department with reserve balances shown, and took the committee through the administration, public works and fire requests, including a town office generator, $60,000 toward a full property revaluation, a stream crossing that has risen in price, a light-duty plow truck, diesel exhaust extraction at the fire station, a chief's vehicle and a Quint rehabilitation. The committee asked for clearer applications, particularly whether each request is a reserve request or a project, and agreed to leave the choice of funding source to the select board. It scheduled a meeting with the fire chief and road commissioner for early December and a final ranking review for December 20.

No written minutes could be matched to this meeting. The transcript records that the speaker changed but never who was speaking, so any name attached to a statement below is inferred from context and is marked (?).

What was discussed

1. 0:04
   Introductions and how the CIP process works

   Members introduced themselves around the table for a new member, Pete. Paul (?) explained that department heads update their equipment replacement schedules annually, the manager builds a proposed five-year plan, and applications for the coming year go to the board of selectmen for an initial review before reaching this committee. Members then score each project separately against criteria set out in the town's CIP policy, Michelle collates the scores into a ranking, and the committee meets once more before its recommendation goes to the selectmen.

2. 5:38
   Why the process exists

   The ranking gives the selectmen and budget committee a vetted list and a sense of how far down it the town can afford to go once the operations budget is known. Members said scoring independently still converges on much the same order, and that doing the work early spares the select board from vetting projects while assembling the budget. Another benefit noted was that by town meeting the department heads have already answered the committee's questions, so there is little debate on the floor.

3. 11:14
   The town manager's first committee meeting

   Jerry Douglas (?) thanked the committee and said this was his first committee meeting as town manager. He said he had watched video of last year's meetings to understand the process, had inherited two sets of spreadsheets from his predecessors, and was still piecing the process together.

4. 11:14
   A new format for the five-year plan

   Rather than co-mingling all departments within each year, Jerry organised the five-year plan by department, with the reserve balance shown in bold at the top, expenditures in red, and the running balance after each. Paul (?) said having reliable reserve balances was a real improvement, since at the same point last year the committee did not have them.

5. 17:07
   A discrepancy in the generator figure

   A member noticed the generator showing as 16 in one column and 32 in another, and that the figures did not match the 2023 request. Jerry agreed it may be a mistake and undertook to check.

6. 17:07
   Adding five-year totals

   Paul (?) asked that the year two to five columns be dropped and that each department's block instead carry two totals for the five-year period, estimated expenditures and estimated reserve requests. The point is to show what proportion of planned spending the town is actually saving for, which he said raises a larger question for the selectmen: given the town's current bond payments, should it be aiming to save 100%, 60% or something less?

7. 22:15
   Election of chair

   Paul (?) noted the election had been overlooked at the start of the meeting and that he was not chair until duly elected. A motion was made that he serve as chair for this session.

8. 22:15
   How much reserve balances should influence the ranking

   Pete (?) asked whether members should rank agnostic of what is in reserve. The answer was that the criteria are more holistic, weighing how the cost estimate was arrived at, whether it is a written quote or a phone conversation, and how far the planning has gone. He gave the example of the fire department's reserve balance running to minus $260,000 five years out, and said a genuine life safety item still ranks high regardless.

9. 27:39
   The breathing apparatus example

   The self-contained breathing apparatus request was cited as the kind of item that ranks high whatever the reserve position: the tanks could no longer be filled by most vendors, were at their expiration date, and could not be swapped with other departments on mutual aid calls because they were a different style.

10. 27:39
    Town office copier and fax machine

    The five-year lease ends this month and would otherwise roll to month-to-month. The lease costs about $2,245 a year plus $1,720 for the fax machine; buying a combined unit outright is about $6,354 with an $800 annual service contract covering ink and repairs. Over five years that is roughly $25,000 to lease against about $10,000 to buy, and the town does around 50,000 copies a year against a machine life of about 800,000 pages.

11. 27:39
    Whether the copier is the committee's business

    The item falls below the CIP threshold and is proposed for ARPA funding, so members concluded it was not in the committee's charge to evaluate, while noting Jerry had done well to identify the saving. It was noted the board can authorise purchases below the threshold itself, as it did recently with a scanner.

12. 33:11
    Town office generator

    A $23,000 request to replace the town office standby generator, which failed to start during a recent storm; the fire chief and the technician got it running, and the technician said the 20-year-old machine should be considered for replacement. ARPA funding is proposed.

13. 33:11
    Where the ARPA money stands

    Durham received about $210,000 in 2021 and $211,000 in 2022, roughly $422,000 in total. A special town meeting already committed about $118,000 to HVAC work at the fire station and town office, technology upgrades including new computers for the town office, fire station and public works, digitising tax maps, two years of updates and $1,675 of roof insulation; about $51,000 of that has been spent. ARPA money cannot be combined with tax dollars raised for the same item or with federal grant funds, must be allocated by 2024 and spent by 2026.

14. 38:46
    How ARPA money is being directed

    There had been three opportunities for public input, and requests such as one for the Eureka Center are being tracked. The board decided to focus on town projects rather than distributing money to nonprofits, on the view that town projects benefit everyone rather than requiring the town to pick among groups.

15. 38:46
    Warrant article mechanics for ARPA

    Any ARPA spending has to go on a warrant article. Members discussed pairing articles, so that if voters decline to fund an item from ARPA there is a second article to raise the money instead, giving voters a choice without losing a needed purchase.

16. 38:46
    Town office space

    Paul recalled that the previous manager, Kathy, had requested a needs assessment on town office space in earlier years. Improving the Eureka Center so meetings can be held there would free space in the town office. Jerry (?) said the current layout gives the town manager nowhere to hold a confidential conversation, which he described as making the job uneasy at times.

17. 43:47
    Fire station generator and maintenance

    A separate and larger generator at the fire station is also proposed for replacement, prepared by the fire chief, with quotes available. Members noted the town appears to have no annual preventive maintenance on its generators, only a small line item for generator work of a few hundred dollars, and flagged it as a question for the chief.

18. 43:47
    Assessing: a full revaluation instead of a market adjustment

    The $60,000 the town approved last year for a market adjustment has not been spent. Assessor Donna Hayes recommends a full revaluation instead, contracted out and targeted for 2025, estimated at $150,000 to $200,000, by which point 15 years will have passed since Durham's last one. The request is $60,000 more this year to reach $120,000 in reserve and a further $60,000 in 2024 to reach $180,000, with an RFP needed soon because firms are booked well ahead.

19. 49:46
    Reserve money and cash flow

    Members raised the risk of reserve money being spent for cash flow between town meeting and the arrival of tax payments and then not being replenished, since the funds can only be raised once. Jerry (?) said he had been struggling with knowing what is truly available, that he had met with the bank and the town is in reasonable shape now, but agreed better accountability and real numbers are needed.

20. 49:46
    Stream crossing

    The town approved $101,000 last year for a stream crossing on Swamp Road. Prices have risen and the town's portion is now put at $150,000, so a further $49,000, rounded to $50,000, is requested; the matching grant is $150,000. Two crossings had originally been planned but only one went ahead because costs rose.

21. 55:06
    Whether the grant will come through

    Asked whether the town has a commitment from DEP, Jerry (?) said the application is in and Calvin feels strongly it will fly, and that he does not want to lose the opportunity.

22. 55:06
    Public works reserve request

    A $100,000 request to replenish the public works reserve. Paul (?) said the application does not say why, and that it would be far stronger tied to the replacement schedule, pointing to an expenditure of around $280,000 in 2026 and three trucks in the next five years. Members noted the budget committee is likely to cut a bare figure with no justification behind it.

23. 55:06
    Light-duty plow truck

    A new light-duty plow truck with a dump body, at about $97,000, to replace one whose body has been welded two or three times.

24. 1:00:25
    Holding a price in this market

    Members recalled last year's truck request, approved at about $200,000, coming in higher and now costing $242,000 with a surcharge on the equipment fitting. Dealer quotes hold for around 30 days, which makes any application figure provisional, and there is no reliable way to price something planned for 2025.

25. 1:00:25
    Keeping the old truck for parts runs

    The 2008 Chevy would be kept for parts runs. Members cautioned that this only looks free until it too has to be replaced, and that the crew might be better off using the old truck for cold patch and gravel rather than the new one.

26. 1:06:07
    Parts runs and the road plan

    It was noted the town has a mechanic and that suppliers deliver, so parts runs should mostly be an emergency matter rather than routine. The committee praised the road commissioner's road inventory and paving plan as better than most towns produce, while warning that publishing a plan invites residents to hold the town to it. Quaker Meeting House Road has been moved forward because heavy truck traffic since a gravel pit opened is damaging a road not built for it.

27. 1:11:26
    Fire department position and funding sources

    The fire department is in comparatively good shape, with about $284,000 in reserve, and the chief is not asking for a great deal. Members discussed how reserve balances interact with a request proposed for ARPA funding, and concluded the committee's job is to rank rather than to choose funding sources, though it might comment holistically at the end once it sees where the ARPA-eligible items fall in the ranking.

28. 1:16:38
    Diesel exhaust extraction at the fire station

    A $50,000 request for a system to remove diesel exhaust from the garage when vehicles are run inside. The application cites exhaust particles as the leading cancer risk to firefighters, states that about 60% of firefighter deaths are cancer-related, and refers to NFPA 1500. Members asked for a citation to the specific requirement, and noted the chief has applied unsuccessfully for grant funding for it.

29. 1:16:38
    A vehicle for the fire chief

    A $60,000 request. The chief currently responds in his own truck and uses it to block roads at accidents, and the town pays him a $300 a month stipend, $3,600 a year. Members asked whether the application is a reserve request or a project, whether it is for a new or used vehicle, and whose insurance covers the truck when it is being used to block a road.

30. 1:22:12
    Is the stipend a fair deal

    Members noted the stipend would stop once a vehicle is bought. One compared $300 a month with the IRS mileage rate of about 55 cents, which is meant to cover the full cost of ownership including depreciation and insurance, and said the town may not be getting the bargain it assumes. Others pointed to the advantages of a marked vehicle carrying safety equipment at a scene. The chief lives in Pownal, close to the town line.

31. 1:27:46
    Alternatives to a new chief's vehicle

    One option raised was for the chief to take the road commissioner's 2008 truck when it is replaced next year, as a bridge. Jerry also raised leasing equipment rather than paying for it out of reserves, which he said would help cash flow and avoid drawing $60,000 to $250,000 out at once or needing a tax anticipation note. A question was also raised about what the department tows and with what.

32. 1:32:55
    Quint rehabilitation

    Rather than replace the Quint, the chief proposes rehabilitating it, giving seven to ten more years of service to around 2030 or 2032, with planning for a replacement two or three years before that. A replacement had been carried on the schedule at around $700,000 although everyone knew it would be over a million. The application combines a previous year's reserve of $59,000 and needs to state clearly that it is a project.

33. 1:32:55
    How questions will be handled

    Members will send their questions to Paul rather than discuss them by email, which he noted is a slippery slope under FOAA. He will compile them into one package for Jerry to pass to the department heads, so they are not blindsided when they come to the meeting.

34. 1:38:14
    Meeting with department heads and the manager's attendance

    The committee agreed it wants to meet both the fire chief and the road commissioner. Jerry (?) said he intends to attend every meeting this first year, both to learn the process and to support his staff.

35. 1:43:21
    Finding dates

    Members worked through the town calendar looking for a date that did not clash with the planning board or other meetings, and settled on a primary and a fallback subject to the department heads' availability.

36. 1:48:41
    Meeting dates set

    The department head meeting will be December 7 or 8 at 6:30, with Jerry to confirm with the fire chief and road commissioner. The final ranking review was set for Tuesday December 20 at 6:00, before the holidays, with members ranking individually in between and Michelle collating the scores.

37. 1:48:41
    Corrected application sheets

    Jerry agreed to reissue the application sheets with the request type stated correctly as reserve or project, since the applications are carried forward to the budget committee and the selectmen and are referenced throughout the process. He also agreed the public works reserve request should be tied to the replacement schedule.

38. 1:53:41
    Closing

    Members reflected that the process front-loads the questions the select board would otherwise face during the budget, and that the committee has worked well together. The meeting ended shortly afterwards.

What was decided

• 17:07
  Jerry Douglas will add, for each department, five-year totals of estimated expenditures and estimated reserve requests to the five-year plan, and drop the year two to five columns, so the committee can see what share of planned spending is being saved for.passed
• 22:15
  A motion was made that Paul serve as chair of the committee for this session. No second or vote is audible on the recording, though he chairs the rest of the meeting.outcome unclear
• 27:39
  The committee will not evaluate the town office copier and fax replacement, since it falls below the CIP threshold and is proposed for ARPA funding, and is therefore outside the committee's charge.passed
• 1:11:26
  The committee will continue to rank projects rather than recommend funding sources, leaving the choice between ARPA, reserves and taxation to the select board, while reserving the option of a general comment once it sees where the ARPA-eligible items fall in the ranking.passed
• 1:32:55
  Members will send their questions to Paul rather than circulate them by email, and he will compile them into a single package for the town manager to pass to the department heads in advance.passed
• 1:38:14
  The committee will meet with both the fire chief and the road commissioner at its next meeting.passed
• 1:48:41
  The department head meeting will be held on December 7 or 8 at 6:30, with the town manager to confirm which date suits the fire chief and the road commissioner.passed
• 1:48:41
  The final meeting to review the collated rankings will be Tuesday December 20 at 6:00.passed
• 1:48:41
  Jerry Douglas will reissue the application sheets with each request correctly marked as either a reserve request or a project, and will ask the road commissioner to tie the $100,000 reserve request to his replacement schedule.passed
• 1:53:41
  A motion was made at the very end of the recording. Its wording and result are not audible.outcome unclear

An outcome reads "unclear" where the recording does not state it plainly. The recogniser drops short words, and "the motion does not carry" is one missing word from its opposite.

Worth knowing

• 43:47
  The $60,000 approved last year for a market adjustment has not been spent. The assessor, Donna Hayes, now recommends a full revaluation contracted out in 2025 instead, estimated at $150,000 to $200,000, by which point 15 years will have passed since Durham's last full revaluation. The plan is to build the reserve to $120,000 this year and $180,000 by 2024.
• 33:11
  Durham received about $422,000 of ARPA money, roughly $210,000 in 2021 and $211,000 in 2022. About $118,000 has been committed and $51,000 spent. The money must be allocated by 2024 and spent by 2026, and cannot be combined with tax dollars raised for the same item or with federal grant funding.
• 49:46
  The stream crossing the town approved at $101,000 last year now needs about $50,000 more, because the town's portion has risen to $150,000 against a $150,000 grant. Two crossings had been planned; only one went ahead once prices rose.
• 1:16:38
  The fire chief is asking $50,000 for a diesel exhaust extraction system in the station garage, citing NFPA 1500 and stating that about 60% of firefighter deaths are cancer-related. He has applied for grant funding for it without success.

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