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Committee Report - Finance 4-6-10
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April 6, 2010 REPORT OF THE COMMITTEE ON FINANCEThe Committee on Finance convened on April 6, 2010, with Chairman Maryann Heuston presiding and Committee Members Aldermen William White, Bruce Desmond, John Connolly and Rebekah Gewirtz also present and voting. Also present were Alderman Robert Trane, Administrative Assistant Matt Dias, Director of Traffic and Parking Robert Bradley, DPW Commissioner Stan Koty, Finance Director Ed Bean, Executive Director of OSPCD Monica Lamboy, Project Manager Gerry Boyle, and Attorney Anne Thomas from OSPCD.189053 - Requesting an appropriation of $62,000 from the Capital Projects Stabilization Fund for emergency roof repairs at the High School:Mr. Koty discussed emergency repairs at the East Wing of Somerville High School and said that the lowest bid was chosen considering the 15 year warranty.189047 - Requesting approval to transfer $123,444 from the Traffic and Parking Meter Receipts Acct. to the Traffic and Parking Capital Outlay Parking Meter/Installation Acct., to fund the procurement of Automated Parking Meter Kiosks:Mr. Bradley informed the members that there are 15 kiosks involved and that the cost includes fabrication and delivery. Installation will be done by the DPW. 5 of the kiosks will be on Somerville Avenue and the remaining 10 will be placed in parking lots (5 lots, 2 in each lot). Mr. Bean stated that $526,000 was collected this year and the projection is for over $700,000. Mr. Bean told the members that parking meter receipts will be a key funding element next year in balancing the budget. Alderman White suggested bonding the items because it is a capital item and Mr. Bean advised that the kiosks should be expensed. 189050 - Requesting approval to transfer $20,000 from the Traffic and Parking Meter Receipts Acct. to the Traffic and Parking Repairs to Highway Acct., for thermoplastic line painting:Mr. Bradley told the members that this budget was $34,000 and is short. He explained that thermal plastic painting is more expensive but it lasts longer. There is $17,000 left in the account and Mr. Bradley would like to commence the line painting so that the process doesn?t fall behind.189048 - Requesting approval to transfer $44,000 in OSPCD, from its Planning Salaries Acct. ($30,000) and its ISD Salaries Acct. ($14,000) to its ISD Professional Services Acct., for an organizational study of the Inspectional Services Division.Ms. Lamboy explained that she has been working with ISD and the department needs to be able to handle volume and respond to customers in a timely manner. This study will give a detailed plan of action to bring the department into the 21st century. Chairman Heuston questioned why a study for a green infrastructure plan was lumped into the ISD study and Ms. Lamboy explained that they should not have been grouped together in the report and that the orders are split. Chairman Heuston questioned if this study could be done more economically as she is unsure if there will be a satisfactory return on the investment especially in light of the fact the study will look at a small department of only 18 staff. Alderman White concurred and requested to see a proposal or contract. Ms. Lamboy stated that she needs someone that has the technical expertise to deal with code issues. She stated that better customer service will result in more permits being applied for. Chairman Heuston questioned if the result of the study would be the termination of certain individuals since Ms. Lamboy indicated that another purpose of the study was to look at the needed experience, education and expertise of individuals working in the department and Ms. Lamboy responded by saying that the study would result in a more expeditious permitting process and added that there needs to be a more formal process to deal with health complaints. Ms. Lamboy stated that she would show the committee models of what other cities have used. Three bids have been received but there is yet to be a proposal. Alderman White questioned why the current management can?t implement proper procedure sand Ms. Lamboy stated that the inspectors are used to dealing with 2 and 3 family dwellings but are not ready to deal with high rise construction that will be coming to Somerville in the near future. 189052 - Requesting approval to use available funds of $5,226 in the OSPCD Transportation and Infrastructure Salaries Acct. to fund a Green Infrastructure Planner effective 4/1/10 at an annual salary of $45,468.Ms. Lamboy discussed the tree canopy, green roofs and CDBG funding and explained that OSPCD has an intern position that she would like to formalize into a permanent position. The total salary is $46,000, half of which will be paid by CDBG funds. 189045 - Requesting acceptance of the utility infrastructure improvements in Assembly Sq. completed by Federal Realty Investment Trust, including sanitary sewer, water, storm drainage, electric, and telephone:Ms. Lamboy discussed Federal Realty and the build-out of Assembly Square Drive and subsurface infrastructure. The city must accept the construction of the water/sewer storm systems. This items accepts the infrastructure and there is a 1 year warranty provided by FRIT. After the warranty period, ongoing costs would be the responsibility of the city. Alderman White stated that if FRIT is responsible for the infrastructure it should be responsible for the maintenance, as well. He stated that he doesn?t want to impose additional obligations on the city until he sees the initial obligations under the covenant. Alderman Heuston and Alderman White requested that Anne Thomas look at the Covenant to clarify where the responsibility lies after the warranties are up.189051 - Requesting approval to transfer $9,743 from the Salary Contingency Acct. to the Law Other Lump Sum Payments Acct. to fund accrued vacation and furlough time for the former City Solicitor:No discussion.189054 - Requesting approval to extend a contract with the Maguire Group Inc. for engineering services at the East Somerville Community School to 12/31/12:Mr. Boyle stated that renovating the existing building is the best option because the city wants to maintain the same student capacity. The schematic design phase will begin and the Maguire Group will report back to the city. Mr. Boyle discussed engaging Maguire immediately following the fire. This is the initial part of phase 2 of the services. It is an estimated $24,000,000 renovation project. The design work project is going to reimbursed by the MSBA. 189046 - Requesting approval to transfer $450,000 from the Receipts Reserved for Appropriation-Insurance Losses Acct. to the East Somerville School Renovations Acct., for renovation of the East Somerville Community School:No discussion.188920 - By Ald. Heuston, That this Board requests that the Administration appear before the Finance Committee to discuss outstanding unfinished business at the Argenziano School.Chairman Heuston stated she has been made aware of many problems with the roof at the Argenziano School. Mr. Boyle agreed that the roof has been a problem and he said that it has been difficult to pinpoint the problem because it leaks during some storms and doesn?t leak during other storms. He has hired a roof consultant who is being paid by the city, with the cost to be back-charged to J&J, who Mr. Boyle noted has been cooperative in trying to fix these roof problems. Some punctures were found in the roof and these are being addressed now. Mr. Boyle stated that the problem may be subcontractors subsequent to the installation of the roof who dropped nails and screws on the roof. Mr. Boyle told the members that the roof was inspected by the architect. Alderman White expressed his desire to make sure that future roof contacts have more strict inspection requirements. Chairman Heuston stated that a leaking roof is unacceptable and wants to know how to resolve the leaks. Mr. Boyle discussed the steps that have been taken and will be taken in the future to solve the problem. He also discussed infrared testing for potential mold issues. Chairman Heuston requested that an updated version of the closeout status, punch list, credit change orders, holdbacks, etc. be provided to the committee. The date of substantial completion was 8/27/07 and Mr. Boyle discussed holdback amounts due to unresolved issues. Chairman Heuston would like the holdback amounts revised to reflect the roof problems and she further asked to include the costs of the roof consultants to the back charges. 188877- Requesting approval to return $20,000 from the MaxPak Stabilization Fund to KSS Investment LLC.Ms. Thomas explained how the return of the $20,000 will be determined and discussed the marketing of certain phases of the project. Alderman Desmond said that it feels as though the rules are changing and that the current owners are trying to get rid of the project as quickly as possible. He feels that certain promises were made to the city and this could set a bad precedent. Alderman White stated that the demolition was a necessary part of this project and he would like to see the money given back to the city upon the sale of the 1st property. Alderman White also pointed out that the owners received a Brownfield grant. Alderman Heuston stated that the Committee was not in agreement with the proposed terms of the return of $20,000 from KSS Investment LLC back to the City and that until that was settled, the Committee could not approve the return of $20,000 from Max Pak Stabilization Fund to KSS Investment LLC The view of the Committee is that there will be ample profit upon sale of the first phase to have the money returned to the City at that time.The committee discussed matters before it and took action on the following 7 items: 189046: Communication from Mayor - Requesting approval to transfer $450,000 from the Receipts Reserved for Appropriation-Insurance Losses Acct. to the East Somerville School Renovations Acct., for renovation of the East Somerville Community School. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor 189047: Communication from Mayor - Requesting approval to transfer $123,444 from the Traffic and Parking Meter Receipts Acct. to the Traffic and Parking Capital Outlay Parking Meter/Installation Acct., to fund the procurement of Automated Parking Meter Kiosks. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor 189050: Communication from Mayor - Requesting approval to transfer $20,000 from the Traffic and Parking Meter Receipts Acct. to the Traffic and Parking Repairs to Highway Acct., for thermoplastic line painting. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor 189051: Communication from Mayor - Requesting approval to transfer $9,743 from the Salary Contingency Acct. to the Law Other Lump Sum Payments Acct. to fund accrued vacation and furlough time for the former City Solicitor. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor 189052: Communication from Mayor - Requesting approval to use available funds of $5,226 in the SPCD Transportation and Infrastructure Salaries Acct. to fund a Green Infrastructure Planner effective 4/1/10 at an annual salary of $45,468. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor 189053: Communication from Mayor - Requesting an appropriation of $62,000 from the Capital Projects Stabilization Fund for emergency roof repairs at the High School. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor 189054: Communication from Mayor - Requesting approval to extend a contract with the Maguire Group Inc. for engineering services at the East Somerville Community School to 12/31/12. RECOMMENDATION: Should be approved VOTE: Unanimous, 5 - 0 in favor