Tuesday, October 6, 2009

Live reporting - Finance Committee

Linda Huempfner
Pat Goldsmith
Craig Maire
Tina Powderly
Jim Roche
Phyllis Meserve
Jaun Rivera
Robert Texiera
Mark Cataldo
Rebecca Cameron
Brett Feldman

Action item
Bond authorization for $1 million for Franklin High School renovation process

This is the beginning phase of a long process to get the Project Manager for an initial design,
we will be back at least two times for additional money to continue the process

State reimbursement up to 31%
Town has to front the full amount for the State to do the reimbursement

estimating 3% but rates are currently 1%
Bond issue would keep us under the debt service plan develped previously

We are looking at a renovation and possible addition, not a new school.
1 - Project Manager
2 - Request for services for architect
3 - meet with the State to agree or modify the plans
4 - give and take on the schematic design
5 - with a complete schematic desgin, back before FINCOM to get authorization to hire the Project Manager and architect to complete the designs and come up with estimates
6 - return with final cost estimates

Will be some determination on what the State will pay versus what the Town will need to cover
For example, the curbing around the

Approx 10% of the total cost would be the PM and architect
How to cover will still need to be decided later (a year to 18 months)

By committing what we are doing now, what does that get us? How much more before we get the full estimate?
Round numbers, 10% of the total cost.

SBA will be managing and monitoring the process.
Yes, we want their money so we will play ball with them. If we wanted to do it on our own, we would be further along.

It is a fair and open process but they are being much more prudent about their commitments.
Let's assume the total comes out to $40 million. The SBA may say that they will exclude 5 million from what they will cover us at the 30-40% reimbursement. Franklin will need to determine if we really need the $5 million and if we will pay for it on our own.

Best case could break ground at the end of 2011.

The SBA has a timeline. Each section of each phase has a timeline. The State requires approval for each step.

We have a year once we start the OPM to get the schematic done. We would get the OPM until January.

We could use the money from the Four Corners, that's about 800,000 left in that account. But we need to front the full amount and then get the State reimbursement. Once we get the authorization of the bond, we may not need to execute the bond and use cash. But we need to do this now to be prepared for options.

Motion to approve Resolution 09-62
Passed 11-0

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