Committee Report - Finance - 11-13-17 — File 204624

Finance Committee Page 1 of 5 Printed 11/21/2017 November 13, 2017 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Tony Lafuente Chair Present Maryann M. Heuston Vice Chair Absent Katjana Ballantyne Ward Seven Alderman Present Matthew McLaughlin Ward One Alderman Present William A. White Jr. Alderman At Large Present Robert J. McWatters Ward Three Alderman Present Mark Niedergang Ward Five Alderman Present Lance L. Davis Ward Six Alderman Absent Mary Jo Rossetti Alderman at Large Present Dennis M. Sullivan Alderman At Large Present John M. Connolly Alderman At Large Absent Others present: Rob King - Capital Projects, Rich Raiche - Engineering, Bruce Desmond - IT, Michael Glavin - OSPCD, George Proakis - OSPCD, Tom Galligani - OSPCD, Alan Inacio - OSPCD, Ed Bean - Finance, Candace Cooper - Personnel, Annie Connor - Legislative Liaison, Peter Forcellese - Legislative Clerk. The meeting took place in the Aldermanic Chamber and was called to order at 6:00 PM by Chairman Rossetti and adjourned at 7:25 PM. Approval of the October 25, 2017 Minutes RESULT: ACCEPTED 204520: Requesting acceptance of a $75,000 donation from Tufts University, with no match required, pursuant to its Partnership Agreement with the City. Mr. Bean told the committee that this is an annual donation from Tufts and represents the fourth of five payments. RESULT: APPROVED 204284: Requesting acceptance of a $3,750 grant with no new match required, from the

Finance Committee Page 2 of 5 Printed 11/21/2017 MA Office of Public Safety to the Police Department for pedestrian and bicycle safety enforcement. Ms. Connor told the committee that this is a recurring grant. Alderman Niedergang requested that an explanation be provided, detailing how the funds are used. RESULT: APPROVED 204283: Requesting acceptance of a $21,509 grant with no new match required, from the Urban Areas Security Initiative to the Police Department for the procurement of gunshot detection and location services. Ms. Connor told the committee that the funds are not for procurement, since the city already has the equipment. RESULT: APPROVED 204519: Requesting acceptance of a $186,976 grant with no new match required, from State 911 to the Police Department for State 911 Support and Incentive Grant. Mr. Connor stated that there is no match required from the city. RESULT: APPROVED 204179: Requesting approval to pay a prior year invoice totaling $3,024 using available funds in the Personnel Department Professional and Technical Services Account for Cambridge Health Alliance pre-employment screening. Ms. Cooper explained that the charges resulted from pre-employment screenings for summer hires. RESULT: APPROVED 204281: Requesting approval to pay 11 prior years invoices totaling $2,419.57 using available funds in the Information Technology Leased Photocopier Account to pay monthly lease costs for leased photocopiers. Mr. Desmond explained that this particular vendor is historically late in issuing invoices and that the requested funds will be used to pay 11 outstanding bills from the previous fiscal year. RESULT: APPROVED 204282: Requesting approval to pay a prior year invoice totaling $289.70 using available funds in the Information Technology Internet Maintenance Account for a monthly payment of the Traffic & Parking internet circuit. Mr. Desmond told members that this invoice is for the Comcast internet line used for processing tickets issued by the Traffic and Parking Department. RESULT: APPROVED

Finance Committee Page 3 of 5 Printed 11/21/2017 204501: Requesting approval to pay a prior year invoice totaling $977.05 using available funds in the Law Department's Legal Services Account for court reporting services. Nobody was present to speak on this item. RESULT: APPROVED 204500: Requesting approval to pay a prior year invoice totaling $1,267.17 using available funds in the Police Department Animal Control Professional and Technical Services Account for veterinary services. Nobody was present to speak on this item. RESULT: APPROVED 204499: Requesting approval to pay a prior year invoice totaling $4,000 using available funds in the Police Department Professional and Technical Services Account for Middle School Survey-Consultation. Nobody was present to speak on this item. RESULT: APPROVED 204498: Requesting approval to pay prior year invoices totaling $32,499.79 using available funds in various accounts in the Department of Public Works for services provided. Mr. Bean reported that all of the invoices were encumbered during the last fiscal year. Chairman Lafuente asked that a breakdown of the charges be provided. RESULT: APPROVED 204183: Requesting approval of a time-only contract extension for DesignLab Architects for the West Branch Library renovation. Mr. King explained that the 3-year cap has been reached and the extension will get the city through the next meeting and allow the architect to be paid. RESULT: APPROVED 204184: Requesting approval of a time-only contract extension for Design Technique Inc. for the West Branch Library renovation. Mr. King explained that the 3-year cap has been reached and the extension will get the city through the next meeting and allow the architect to be paid. RESULT: APPROVED 204497: Requesting an appropriation and authorization to borrow $2,000,000 in a bond to repair and improve the Buena Vista Garage.

Finance Committee Page 4 of 5 Printed 11/21/2017 Mr. King said that this amount is currently captured in CIP that was previously presented to the BOA. The facility was assessed in 2015 and several issues were found that needed attention. The requested funds will be used to pay for OPM, design and construction services. Alderman Rossetti asked why the city is investing $2 million in a facility that only generates $62,000/year in revenue, excluding the revenue derived from parking meters at the facility, and she asked for additional information. Alderman White explained that the city does not own the garage, but has some obligations for its upkeep. The vendor operating the garage has about 69 years remaining on a 99 year lease and city is required to pay for maintenance of the facility. Alderman Niedergang would also like additional info and he requested that a representative from the Traffic and Parking Department be present when this item again deliberated in the Finance Committee. RESULT: KEPT IN COMMITTEE 204438: Requesting an appropriation and authorization to borrow $63,000,000 in a bond for Somerville Avenue streetscape and utility improvements. See discussion of item 204517. RESULT: KEPT IN COMMITTEE 204326: Requesting approval to appropriate $112,770.34 from the USQ Revitalization Stabilization Fund for legal services. Mr. Inacio informed the committee that the city has already received these funds from the developer and that BOA approval is needed in order to appropriate the funds. Under the Modernization Act recently passed by the state legislature, BOA approval is no longer required for the city to accept developer funds that are going into a stabilization fund. Alderman White asked Mr. Bean to send a communication to the BOA explaining what funds need BOA approval for acceptance by the city. Alderman Rossetti’s motion that the Director of Finance provide the Board of Aldermen with quarterly reports for all stabilization funds, was approved. RESULT: APPROVED 204437: Requesting approval of the proposed Union Square District Improvement Financing Development District. See discussion of item 204517. RESULT: KEPT IN COMMITTEE 204517: Requesting approval of the proposed Union Square District Improvement Financing (DIF) Development Program. Mr. Glavin explained that requests for additional funds would be presented in a timely fashion at later dates and Mr. Raiche said that the only request being made now is for the construction funds of $63 million. Requests for about $3 million for design phases of other projects, currently in the Finance Committee, will be presented at a future date.

Finance Committee Page 5 of 5 Printed 11/21/2017 Alderman Niedergang pointed out that a public hearing is scheduled for November 28th on the Union Square DIF. He asked if there is a specific amount for the DIF and commented that he has heard amounts of $141.5 million, $148 million and $240.4 million. Mr. Raiche said that the correct amount is $141.5 million however, that amount may change over time since it is made up of estimates. The Engineering Department has a high level of confidence in their numbers. Alderman Ballantyne inquired about the status of the storm water project at Nunziato Field and Mr. Raiche said that public hearings were held, questions were raised and analysis has been done. Another public meeting will be scheduled to report out the findings. Once that process is done, a request for separate financing will be made. Mr. Raiche explained that the various projects are independent of each other and requests will be made for each at the appropriate time. Alderman McWatters stated that he was against the Nunziato project and he asked the Administration to hold neighborhood group meetings to discuss the project with residents. Alderman White commented that if the water/sewer projects are part of the DIF, then the BOA would need a sequence schedule. Mr. Glavin said that the DIF will provide captured funds to pay for some of these projects and that the DIF has nothing to do with the Nunziato storm water project. That project is core work needed to alleviate flooding problems in the city. Alderman White asked that the information be put on city’s website. Alderman Niedergang commented that the public needs to have background information and a brief explanation available on the website in advance of the public hearing on November 28th. Chairman Lafuente requested that the BOA be provided with the DIF’s end figure and explanation of how that number gets achieved. Alderman White asked what is ‘concrete’ on the projected captured increment sheet and how much is conjecture. He also asked what amount of tax dollars Partners Healthcare would be paying if it were on the city’s tax rolls. After a brief discussion it was estimated that they would be paying approximately $1.5 million in taxes at the commercial rate. Alderman White inquired about what is actually going to be built as part of the Union Square development project and Alderman Rossetti said she asked for a guarantee of development from US2 about a year ago and was told that a major company was said to be coming to Union Square, but nothing has been heard about it since. Alderman White suggested that representatives from US2 appear before the committee to explain what they're committing to build and what the build out would be worth. Alderman Rossetti’s motion that representatives from US2 appear before the Finance Committee to explain what they're committing to build in Union Square, when it will be built and what it will be worth, was approved. RESULT: KEPT IN COMMITTEE Handout: • Union Sq DIF Development Program Info (with 204517)