Finance Committee Report

Dear Fellow Voters:

The Finance Committee, at its June 13, 2000 meeting, voted 4 in favor, 0 opposed with 2 abstentions to recommend approval of the article to grant $1-million supplemental funding for the reconstruction of MacMillan Pier.

The low bid, $15.5-million, from AGM Marine, Inc. exceeded the budgeted amount for the project of $14.5-million, leaving a shortfall of $1-million in order to accept their bid. Rebidding the project was not a permissible option from the standpoint of the granting agencies or from the standpoint of the serious compromises to the Pier itself over its projected forty years of use. Approving the additional $1-million will allow the Board of Selectmen to accept the low bid, and in conjunction with the users of the Pier, the Building Committee, Harbor Committee and Finance Committee, continue to refine the project with any necessary change orders and start construction this fall.

The Finance Committee continues to view the reconstruction of MacMillan Pier as an essential economic engine for this community, and it has been incorporated and budgeted in our 10-year Fiscal Policy Plan. With the approval of the supplemental $1-million, in addition to the $2.8-million approved by voters at April's town meeting, the project continues to make tremendous financial sense. For every 24 cents the town is spending, the town is receiving 76 cents in state and federal grants--an opportunity which we have been told will not come again for this project.

The Finance Committee has recommended to the Board of Selectmen that the town cap its financial commitment for this project, in accordance with the 10-Year Fiscal Plan, at $2.8-million previously authorized by voters, and pass the $1-million supplemental borrowing cost ($70,000/year) onto the Pier Corporation which will have the capacity to absorb this added debt service based on the business plan developed for the Pier Corporation. If the Selectmen are not willing to pass $1-million onto the Pier Corporation, then the Selectmen must begin to identify alternatives and cutbacks in other areas of the 10-year Fiscal Policy Plan.

The Finance Committee strongly urges voters to support this article so that we can begin reconstruction of MacMillan Pier this fall.

Respectfully submitted,

The Provincetown Finance Committee