Warrant Article Title:
CAPITAL BUDGET/DPW YARD

Discussion:
The Town is requesting an appropriation of $8.9 million for the DPW Yard Project.  If approved, the total project cost will increase to $38,930,000.  At our Committee hearing, the Capital Planning Committee indicated that there are three primary drivers of the cost increase: $4.7 million is caused by construction industry cost inflation; $2.7 million is caused by a change in contracting method (Construction Manager at Risk and an increase in contingencies) which will work to contain future cost increases; and $1.5 million is caused by an increase in project scope, specifically moving the IT and Facilities Departments to the location, and the addition of concrete walls for the salt shed.  The IT and Facilities scope change represents a transfer of cost from the voter-approved exempt Arlington High School Project Budget to the non-exempt Capital Budget.

At our hearing, Finance Committee members expressed concern about the increase in project cost and the $400,000 in annual cuts that will happen in the Capital Budget to keep it in balance. Given these concerns, a future request for more funding could be met by opposition from the Finance Committee

Vote Language:

That the Town appropriates eight million, nine hundred thousand dollars ($8,900,000) to pay costs of remodeling, reconstructing, or making extraordinary repairs to the DPW Yard and associated buildings, including original equipment and landscaping, paving and other site improvements incidental or directly related to such remodeling, reconstruction or repair, and that to meet this appropriation, the Treasurer, with the approval of the Select Board, is authorized to borrow said amount under and pursuant to G.L. c. 44, §7(1) or any other enabling authority, and to issue bonds or notes of the Town therefor.  Any premium received upon the sale of any bonds or notes approved by this vote, less any such premium applied to the payment of the costs of issuance of such bonds or notes, may be applied to the payment of costs approved by this vote in accordance with M.G.L. c. 44, §20, thereby reducing the amount authorized to be borrowed to pay such costs by a like amount. 

 

Finance Committee Report

Capital Planning Committee Report

Watch the video presentation