Committee Report - Finance - 9-15-10 — File 190145

September 15, 2010 Finance Committee Page 1 of 2 Printed 9/22/2010 REPORT OF THE FINANCE COMMITTEE Attendee Name Title Status Arrived Maryann M. Heuston Chair Present William A. White Jr. Vice Chair Present Bruce M. Desmond Alderman At Large Present John M Connolly Alderman At Large Absent Rebekah L. Gewirtz Ward Six Alderman Absent Sean T. O’Donovan Ward Five Alderman Present Joseph Curtatone Mayor Present Gerald Boyle Project Manager Present Omar Boukili Administrative Assistant Present Ed Bean Chief Financial Officer Present Doug Willardson Finance Present James Halloran Supt. of Recreation Present David Morrow Present 190078 - Requesting an appropriation of $1,940,788 from the Receipts Reserved for Appropriation-Insurance Losses Account to the East Somerville School Renovations Account, to begin the process of reconstructing the East Somerville Community School.: Mr. Boyle informed the members that the appropriation would be disbursed proportionately to begin the first stage of the project and also discussed the schematic design work, immediate demo and haz-mat remediation. Mr. Bean said that the loss was originally $12 million, but approximately $2.5 million has been spent thus far. The remaining $9.5 million will be spent in the upcoming construction. The committee discussed the reduction of the project cost in relation to reimbursement from the state, how the insurance proceeds are applied and the difference between pricing from a general contractor vs. pricing from individual sub-contractors. Construction is expected to be complete by Dec. 2012, however, it is possible that completion could be as early as June 2012 if the funds are available to start construction sooner. RESULT: APPROVED 190079 - Requesting the authorization of the Veteran’s Memorial Ice Rink Revolving Fund for Fiscal Year 2011.: Mayor Curtatone discussed a license granted by DCR for the city to maintain and control the rink. The members were apprised of the current condition of the facility and of the repairs that

Committee Meeting September 15, 2010 Finance Committee Page 2 of 2 Printed 9/22/2010 have been made. Operation of the pro shop and concession stand will be put out to bid and interviews will begin shortly for rink staffing. The initial seed money provided by the city will be paid back over time and Mr. Bean told the members that the city would begin to make money in about 5 years according. The mayor stated that public skating would be free, as mandated by the state, however ice time fees are non-negotiable, per DCR. Other sources of revenue may be available to the city through the scheduling various events at the rink and there must be a reasonable preference for local programs vs. outside entities. Alderman White requested a copy of the signed agreement between the city and DCR and also asked for the amount of funding that the state is providing to the rink project and upgrades. RESULT: APPROVED 190080 - Requesting an appropriation of $200,000 from the Capital Stabilization Fund Unallocated Balance Account to the Veteran’s Memorial Ice Rink Revolving Fund for start-up operations for the ice rink.: Discussed with #190079, above. RESULT: APPROVED 190081 - Requesting the acceptance of a $490,000 Transit Oriented Development Grant from Mass DOT for the MaxPak site.: Mayor Curtatone explained that this grant is for infrastructure work at the Max Pak site. The first phase of the project is for 15 units and the second phase is for a 47 unit building. Alderman O’Donovan spoke about his concern of co-mingling different pieces of the project because neighbors may have a problem. Alderman White requested the conditions of the grant and how it will be implemented for construction. Alderman Desmond’s motion that the Executive Director of the Office of Strategic Planning and Community Development provide the Committee on Finance with a current copy of the amended MaxPak covenant, was approved. RESULT: KEPT IN COMMITTEE Next: 12/31/2010 12:00 AM