HomeMy WebLinkAboutCapital Improvements 11/18/2010Capital Improvements Committee Minutes
November 18, 2010
Present: Charlene Lavin, Chair; Michael Trowbridge and Jean Miller, School Committee,
George Dentino, Board of Selectmen, Tommy Ratliff, Finance Committee, Alan Clapp, MBC....
William Ross, Town Manager
1. The meeting was called to order at 6:00 p.m.
November 9, 2010 Minutes
Motion: To approve (Trowbridge -Miller) Five in favor. One abstention. PASSES
The committee discussed the fact that text books and educational software are exempt from the
capital process, but should be included in the long-range capital plan.
3. Discussion of Draft Definition of "Capital"
The committee discussed amending the definition to include the "purchase of land or real
property" as a division of"Capital Improvements."
Motion: To amend the definition as follows:
A Capital Improvement Plan is a multi-year financial plan for the evaluation,
prioritization and funding of school and municipal projects that are necessary to
protect the town's infrastructure and preserve the town's buildings and grounds, as
well as a means of evaluating the town's equipment and vehicular needs. The capital
plan provides a basis for financial decision making and planning. It is a public
reporting mechanism on the expenditure of public funds, as well as a financial
management tool for school and municipal budgeting.
2. a. Capital Improvement — A non-recurring expenditure, or an expenditure for
physical improvements that increase the useful life of a capital asset or extends its
life or productivity. A Capital Improvement adds value to the asset and is not a
repair that retains status quo.
b. Traditionally, for the purposes of this plan, a Capital Improvement has a
useful life of five (5) years or more and a minimum value of $15,000.
Capital Improvements are further divided into: Public Buildings and Grounds,
Infrastructure, Equipment and Vehicles, Purchase of Land or Real Property.
A Capital Improvement is an investment in the community's future that adds to the
useful life, adds value and protects the town's investment in its infrastructure,
buildings and grounds, equipment and vehicles.
A Capital Improvement shall also include the construction of additions, new
permanent buildings, facilities or structural improvements, as well as equipment
acquisition and infrastructure extension/improvements. A capital improvement
process will allow for a comprehensive evaluation method for future expansion,
renovation, additions and new construction.
Maintenance is defined as those activities that serve to keep buildings, infrastructure,
equipment and vehicles in proper operating condition in a routine scheduled or
planned manner to prevent failure or disrepair.
A capital improvement, for example, would be the replacement of a building roof,
which adds to the useful life of the structure, protects the investment in the building
and adds value to the asset. Conversely, a roof repair would not be a capital
improvement as it maintains the status quo without adding longevity or value to the
asset.
For the purposes of this capital planning process, all projects that conform to the
above definition, regardless of funding sources, must be submitted to the Capital
Improvements Committee for review.
Funding sources shall include, but may not be limited to, the following: annual CIP
appropriation at Town Meeting, debt exclusion or override vote, capital
projects/acquisitions that are included in the operating budget, enterprise accounts,
retained earnings, revolving accounts, grants and/or gift accounts.
Further, it is the intent of this plan to assure the taxpayer that projects/acquisitions are
presented in their entirety, including multi-year and phased project approaches, and
that the provisions of the Massachusetts procurement laws are adhered to in full. The
intent is to prevent splitting projects as a way to avoid the procurement process.
It is the intent of this capital planning process to include all capital projects and
acquisitions in one document for the purposes of long-range fiscal planning and
capital asset management. Finally, it is the goal of this process to provide consistent
and coordinated review of capital projects, improvements and acquisitions in one
document for presentation to Mansfield's residents and Town Meeting voters.
(Trowbridge -Miller) All in favor. PASSES
4. Adjournment
Motion: To adjourn at 8:10 p.m. (Miller -Ratliff) All in favor. PASSES
Date of next meetings: December 16, 2010 at 6:00 p.m.
January 6, 2011 at 6:00 p.m.
January 20, 2011 at 6:00 p.m.
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signature of Chair Date of Approval