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HomeMy Public PortalAbout012714fyibackup FYI ITEMS (MAIL) JANUARY 27,2014 A. Letter from Bill Fraher, CPA to Cape Cod Municipal Health Group, re financial audit B. Copy of Cape Cod Municipal Health Group June 30, 2013 year-end financial audit C. Update from Victor Staley, Building Commissioner on 42 Skaket Way D. Copy of Memo from Planning Board to Division of Conservation Services, re; Brewster's Open Space Plan E. Copy of Stipulation and Agreement for Judgment, re; Board of Assessors v. Commissioner of Revenue Appellate Tax Board F. Copy of Town Counsel's review of Board of Health's proposed regulations restricting the sale & use of tobacco products & nicotine delivery products G. Copy of Town Counsel's review of Board of Health's animal regulations H. Copy of Town Counsel's review of Ambulance Lease I. Cape Light Compact's November 2013 Energy Efficiency Report J. Draft Schedule for solar project at capped landfill FYI—January 27, 2014 Page 1 of 1 y til Rill f•r:rLcr,( I'� BF L�I i �1 util�ik)�tn,l 1trekt 1.ul1 ??� I11,s[fln. MA 112118 41 11 -1-hr Steering Committee Cape Cad Municipal I lealth Group Data'Steering Committee Members. In planning and perlormin my audit of the financial Statements ol'the Cape Cod �Cunicipal I1watlth Group for the year ended rune 30, 2013, 1 considered its internal control structure in order to dvie n-nine my auditing procedures for llie purpose of'e.r•pressing an opinion on the Financial statements and m)L to provide at svrance on tho internal control structure, I lowever, during my audit. I noted certain matters involving the 'internal control slruciurc and other operational matters that 1 tun pre.wnting for your consideration. My consideration ofthe internal control structure was for the limited purpose described in the preceding paragraph and would not necessarily disclose all matters that «%ould be considered reporlatble t;onditions under standards established by the Aimricatn lnstilute of C'ertilied Public Accaerlttautts. In addition, because of inherent limitations in anv internal control structure. errors or irrcgulariiius may occur and not be detected by such control strw:twv. A def vionc_v in irrrc�r•rrcrl romrol exists when tht•design or operation oi'o control sloes not allots' manalgentent or employees, in the normal course of perforating lhcir assigned Functions. to Prevent or detect missiniomenrs on a timely basis. A molcrial t1-cukness is a deLiciency or combination (if deficiencies in internal control such that there is a reasonable passibility that a material miwstatclncnt of the Cape Cod Municipal 1•lealtlt 0%)tip's filtattt4ial statements %vill not be prevunte d or detceted and corrected on a timely basis. I dict not idQlltily any deficiencies in internal control ower Financial reporting that 1 consider to be material %Vcakncsse:s. Otho matters hivolving the internal control structure and other operatiwini matters are presented in the following report_ These matters were considered in deterinining the nature. timing and extent of the audit tests applied in my audit of tltt; financial statements, and this report does not aflecl my report on those financial statements dined January 13,2014. 1 have not considered the internal control su•ucture since the date of my report, This report is intended stalely for the use of the Steering Committee and Uroup management and is not intended should not be used by anvone other than these:spceit-W parties. Bill Frtaher, CTA Boston, Massachusetts .lilttuitry 13, 2014 CAPE COD MUNICIPAL HEALTH GROUP MANAGEMENT LETTER JUNE 30,2012 Section I-Control Deficiencies Under auditing standards, there are three categories of internal control deficiencies and other matters that can be identified during an audit. These three categories are material weaknesses, significant deficiencies and control deficiencies. Any items that are identified as material weaknesses or significant deficiencies require modification of the auditor's report on internal control and compliance (which is presented in the report on the financial statements). I-A.Material Weaknesses There were no material weaknesses noted during this year's audit. I-B.Significant Deficiencies I-B-1.Accounting and Financial Reporting Controls—Significant Deficiency As discussed in last year's management letter and consistent with how Massachusetts joint purchase groups typically operate,the Group has placed significant control over the accounting and financial reporting functions in the hands of the Group Treasurer. The Treasurer performs or supervises all functions and controls that initiate,record and process accounting transactions and financial reporting. These functions include posting cash transactions,controlling unused checks,processing cash receipts and cash disbursements,preparing financial reports and reconciling monthly bank statements. The Group has instituted several mitigating controls including detailed monthly review of group financial statements and reports; review of monthly changes in cash report documenting reconciling items; Steering Committee approval of group expenditures; mailing and monitoring of duplicate bank statements to a board member;as well as an on-going risk assessment process. Despite these mitigating controls,the potential internal control risks have not been reduced to an appropriate level. As a result,the combination of duties assigned to the Treasurer constitutes a significant deficiency. I understand the Group has considered these aspects of its internal control and currently feels there is an acceptable level of risk which would not warrant additional expenditures at this time. The Group will continue to monitor and evaluate these aspects of its internal control annually as part of its risk assessment program. Page 1 Y BF ' Bill F rahe><-, CPA CAPE COD MUNICIPAL HEALTH GROUP FINANCIAL STATEMENTS AND MANAGEMLM"S DISCUSSION AND ANALYSIS WITH REQUIRED SUPPLEMENTARY INFORMATION YEARS ENDO JUNE 30,2013 and 2012 WITH INDEPENDENTAUDITOR'S REPORTS CAPE COD MUNICIPAL HEALTH GROUP FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSIS WITH REQUIRED SUPPLEMENTARY INFORMATION Years Ended June 30,2013 and 2012 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORTS ON: Financial statements i Internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards MANAGEMENT'S DISCUSSION AND ANALYSIS v FINANCIAL STATEMENTS: Statement of net position I Statement of revenues,expenses,and changes in net position 2 Statement of cash flows 3 Notes to financial statements 4 Required supplementary information 10 1313 8E'�Eshi�t„#33ta trr! BF INDEPENDENT AUDITOR'S REPORT To the Steering;Committee Cape Cod Municipal Health Group Report on the Financial Statements I have audited the accompanying financial statements of the Cape Cod Municipal Health Group(the Group), Barnstable_ Massachusetts as of and for the years ended .lune 30,2013 and 2012. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statennents in accordance with accounting principles generally accepted in the United States of America,this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion ort these financial statements leased on Illy audits. I conducted my audits in accordance with auditing standards generally accepted in the United States of America and GovernineW Aucliting,.�tan(IOrds issued by the Comptroller General of the United States. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of a material rnisstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion ore the effectiveness of the Group's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness o1' accounting principles used and the reasonableness of significant accounting estimates made by nnanagement, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for nny audit opinion. Opinions In illy opinion, the financial stateruents referred to above present fairly, in all material respects,the respective financial position of the Cape Cod Municipal Health Group as Of June 30, 2013 and 2012, and the changes in financial position and cash flows for tine years then ended in conformity with accounting principles generally accepted in the United States of America. i Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis on pages v through vii and the ten-year claims development information on page 10 be presented to supplement the financial statements. Such information,although not a part of the financial statements, is required by the Government Auditing Standards Board,who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational,economic or historical context. I have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the financial statements and other knowledge obtained during the audit of the financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards I have also issued my report dated January 13,2014 on my consideration of the Group's internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations,contracts,grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Group's internal control over financial reporting and compliance. AeAao�_ Bill Fraher,CPA January 13,2014 ii Bill f.rnhe .{(r, E313 'sljv t B F4 1To+ton,.Nt t 021 IN' I rl:6€?-ti`)`+_? ? INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL,STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS To the Steering Committee Cape Cod Municipal Health Group I have audited. in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmew Amlilhtg,Siarulurtls issued by the Comptroller General of the United States, the financial statements of the Cape Cod Municipal I-Iealth Group (the Group), Barnstable. Massachusetts as of and for the years ended June 30,2013 and 2012and have issued my report thereon dated January 1.3,2014. Internal Control over Financial Reporting In planning and performing my audit of the financial statements, I considered the Group's internal control over financial reporting(internal control)to detennnine the audit procedures that arc appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. Accordingly, I do not express an opinion on the effectiveness of the Group's internal control A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions,to prevent,or detect and correct misstatements on a timely basis. A material weakness is a deficiency,or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the Group's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness. vet important enough to merit attention by those charges with governance. My consideration of internal control was for the limited purpose described in the first paragraph ofLhis section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during my audit I did not identifv any deficiencies in internal control that I consider to be material weaknesses. However,material weaknesses may exist that have not been identified. I consider the deficiency described in the following paragraph to be a significant deficiency in internal control over financial reporting. 'File Group's Treasurer perforins or supervises all functions and controls that initiate,record and process all of the Group's transactions and financial reporting. This lack of'segregation of duties is a combination of control deficiencies that i consider to be a significant deficiency. Asigmificant clefic'iency is a deficiency or combination of deficiencies in internal control such that is less severe than a material weakness,yet important enough to merit attention by those charged with governance, Fiews of Reshnnsrhle Of ftcicr/s; Tile Board intends to take this under advisement and to continue to monitor and evaluate financial reporting and internal controls on an ongoing basis and take corrective actions as necessary. iii Compliance and Other Matters As part of obtaining reasonable assurance about whether the Group's financial statements are free of material misstatement, I performed tests of the Group's compliance with certain provisions of laws,regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of my audit and,accordingly,I do not express such opinion. The results of my tests disclosed no instances of noncompliance or other matters that are required to be reported herein under Government Auditing Standards. I noted certain matters related to internal control over financial reporting and compliance and other matters that I reported to the Group in a separate letter dated January 13,2014. Purpose of this Report This purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the Group's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control and compliance. Accordingly,this communication is not suitable for any other purpose /,,;.w 79?&V-- Bill Fraher,CPA Boston, Massachusetts January 13,2014 iv CAPE COD MUNICIPAL HEALTH GROUP Management's Discussion&Analysis June 30,2013 The management of Cape Cod Municipal Health Group (the Group) offers readers of our financial statements the following narrative overview and analysis of our financial activities for the year ended June 30, 2013. Please read this discussion and analysis in conjunction with the Group's basic financial statements on the accompanying pages. Basic Financial Statements The basic financial statements are prepared using the accrual basis of accounting. Revenue is recorded when earned,and expenses are recorded when incurred. The basic financial statements include a statement of net position, a statement of revenues, expenses and changes in net position;a statement of cash flows and notes to the financial statements. The statement of net position presents information on the assets and liabilities of the Group,with the difference being reported as net position. The statement of revenues, expenses, and changes in net position reports the operating and non-operating revenues and expenses of the Group for the fiscal year. The net result of these activities combined with the beginning of the year net position reconciles to the net position at the end of the current fiscal year. The statement of cash flows reports the changes in cash for the year resulting from operating and investing activities. The net result of the changes in cash for the year, when added to the balance of cash at the beginning of the year,equals cash at the end of the year. The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the financial statements. The notes to the financial statements follow the basic financial statements described above. Financial Hiehlishts • Assets exceeded liabilities by $24,332,256 (net position) at the close of the fiscal year. This is up 16.73%from the prior year. Net position at June 30, 2013 represents 20.28% of fiscal year 2013 claims expense. At June 30, 2012 net position represented 14.8% of fiscal year 2012 claims expense. • For the year ended June 30, 2013, net position increased by $3,486,981 or 16.73% compared to($1,897,662)or a 8.32%decrease for fiscal year 2012. • The statement of cash flows identifies the sources and uses of cash activity for the fiscal year and displays a net decrease in cash of($2,154,413)for fiscal year 2013 compared to a$2,468,628 increase in cash for fiscal year 2012. v CAPE COD MUNICIPAL HEALTH GROUP Management's Discussion&Analysis June 30,2013 • The decrease in cash for 2013 is a result of a combination of better than expected claims experience, despite the utilization of a portion of Group fund balance to minimize increases in the FY 2013 plan rates,and the return of nearly$1.4 million of Retiree Drug Subsidy payments collected in prior years to the members. The increase in cash for 2012 is primarily a result of better than expected claims experience and timing of member payments at year-end. For fiscal year 2012, the Group's operating results resulted in an approximately $8.0 million utilization of fund balance. This utilization was better than anticipated as the Group utilized a portion of its fund balance to minimize increases in the FY 2013 plan rates. Actuarial assumptions are used in projecting annual claims costs for each health plan on a per member/per month basis and a rate, on a plan by plan basis, is set to fund the aggregate of the total projected claims and other Group costs. The Group has adopted a fund balance policy which provides for a target range of unrestricted net position of between 8 — 12% of claims for the Group to maintain for operating purposes. Additionally,during FY 2013 and 2012 the Group authorized the return of approximately $1.7 and $1.65 million, respectively of previously collected federal Medicare Part D employer subsidy to its employer members. Investment income on the Group's investment portfolio of$909,337, when applied to the operating income (loss) and less the return of Medicare Part D subsidies, results in a net increase of the Group's net position of approximately$3,486,981. Condensed Financia!Information A comparative summary of financial information is presented below: Increase/ 2013 2012 (Decrease) %Chanee Cash $ 23,288,399 $25,442,812 $ (2,154,413) (8.47) Investments 12,351,794 11,581,551 770,243 6.65 Other current assets 2.233.233 1.451.261 781.972 53.88 Total assets 37,873,426 38,475,624 (602,198) (1.57) Claims liabilities 11,911,427 17,367,706 (5,456,279) (31.42) Other current liabilities 1.629.743 262.643 1.376.100 520.52 Total liabilities 13.541.170 17.630.349 (4.089.179) (23.19) Unrestricted net position S24,332.25 $20.845.275 $ 3-486-981 16.73 Member assessments $ 132,368,674 $ 147,985,924 $(15,617,250) (10.55) Medicare part D&COBRA subsidy 1,476,004 1,610,056 (134,052) (8.33) Claims expense (120,438,328) (141,109,012) (20,670,684) (14.65) Claims administration expenses (6,555,744) (6,549,826) 5,918 .09 Other group expenses (2.900.499) (2.672.700) 227.799 8.52 Operating income(loss) 3,950,107 (735,558) 4,685,665 637.02 Distribution of Med.Pt.D to employers (1,372,463) (1,647,037) (274,574) (16.67) Investment income(loss) 909.337 484.933 424.404 87.52 Change in net position 1 3-496,981. S(1-897,662). $ 5.384.643 283.75 vi CAPE COD MUNICIPAL HEALTH GROUP Management's Discussion&Analysis June 30,2013 Economic Factors Affecting the Subseauent Year The Group is operating in an environment of escalating health care costs. Given this environment the Group is actively participating in ongoing wellness programs to promote healthier lifestyles and ultimately to reduce health claim costs. In addition, the Group has been evaluating its prescription drug benefit on an ongoing basis and has provided a discretionary opportunity to its members to purchase certain prescription drugs from pre-approved, foreign suppliers. The foreign purchasing option results in a net savings to the Group in reduced claims costs and to the individual member in the form of reduced co-pays. The Massachusetts Municipal Health Care Reform Law was enacted on July 1, 2011. The law provides municipal employers with an expedited collective bargaining process to negotiate plan design changes provided the plan design changes do not go beyond the plan design of the Group Insurance Commission's (GIC) most popular plan. The law also gives joint purchase groups the authority to approve such plan design changes and then requires each participating employer to follow the expedited bargaining process or other approved bargaining process. The CCMHG approved plan design changes for FY13 are similar to the plan design of the GIC benchmark plan. All CCMHG participating employers successfully bargained these changes which collectively will reduce the CCMHG FY13 expenses. Prior to June 30,2013,the Group's Board of Directors set the rate structure for fiscal year 2014 plan participation. The rate structure resulted in a blended premium rate increase of approximately 8%. The rates were set to fund the estimated cost of claims, plus other group expenses and the Group anticipated using approximately $10 million of the Groups unreserved fund balance to maintain compliance with its fund balance policy. Reauest for information This financial report is intended to provide an overview of the finances of the Group. Any questions concerning this report, or for additional information, please contact the Group's benefit administrator, Group Benefits Strategies at 800-229-8008, or Treasurer, Richard D. Bienvenue,CPA. vii CAPE COD MUNICIPAL HEALTH GROUP Statement of Net Position June 30,2013 and 2012 (Notes 1 and 2) 2013 2012 Total Total ASSETS Current Assets: Cash and cash equivalents(Note 3) $ 23,288,399 $ 25,442,812 Investments(Note 3) 12,351,794 11,581,551 Receivables: Member accounts 96,845 72,654 Reinsurance claims 1,005,268 328,901 Medicare part D receivable 541,238 627,607 Reserve for uncollectible accounts (10,000) (10,000) Total receivables 1,633,351 1,019,162 Prepaid expenses 158,422 15,399 Deposits with insurance carriers 441,460 416,700 Total assets $ 37,873,426 $ 38,475,624 LIABILITIES Current Liabilities: Accounts payable $ 5,400 $ 63,084 RDS due members 1,372,463 - Claims liabilities(Note 5) 11,911,427 17,367,706 Participants'advance contributions 251,880 199,559 Total liabilities 13,541,170 17,630,349 Net Position Unrestricted: Medical and dental programs 24,332,256 20,845,275 Total unrestricted/net position 24,332,256 20,845,275 Total liabilities and net position $ 37,873,426 $ 38,475,624 See the accompanying notes to the financial statements. 1 CAPE COD MUNICIPAL HEALTH GROUP Statement of Revenues,Expenses,and Changes in Net Position Years Ended June 30,2013 and 2012 (Notes 1 and 2) 2013 2012 Total Total Operating revenues: Participants'contributions $ 132,368,674 $ 147,985,924 Medicare part D refund 1,476,004 1,610,056 ARRA COBRA subsidy - - Total operating revenues 133,844,678 149,595,980 Operating expenses: Health claims incurred 120,438,328 141,109,012 Claims administration charges 6,555,744 6,549,826 Fixed premiums 456,641 374,352 Stop loss insurance premiums 1,223,703 1,097,282 Consulting services 796,409 794,148 Other administrative services 253,097 310,637 Wellness program 170,649 96,281 Total operating expenses 129,894,571 150,331,538 Operating income 3,950,107 (735,558) Nonoperating revenues(expenses): Investment income 909,337 484,933 Distributions to members (1,372,463) (1,647,037) Other income(expense) - - Total nonoperating revenues(expenses): (463,126) (1,162,104) Changes in Net position 3,486,981 (1,897,662) Net position,beginning of year 20,845,275 22,742,937 Net position,end of year $ 24,332,256 $ 20,845,275 See the accompanying notes to the financial statements. 2 i CAPE COD MUNICIPAL HEALTH GROUP Statement of Cash Flows Years Ended June 30,2013 and 2012 (Notes 1 and 2) 2013 2012 Cash flows from operating activities: Cash received from participants $ 132,396,804 $ 148,841,928 Other operating cash receipts-Medicare Part D&ARRA 1,562,373 1,982,450 Cash paid to insurance providers and other vendors (134,880,221) (146,707,429) RDS amounts paid to members and other (1,372,463) (1,647,037) Net cash provided(used)by operating activities (2,293,507) 2,469,912 Cash flows from investing activities: Purchases and sales of investments(net) (770,243) (486,217) Interest income on deposits 909,337 484,933 Net cash(used)by investing activities 139,094 (1,284) Net(decrease)in cash (2,154,413) 2,468,628 Cash,beginning of year 25,442,812 22,974,184 Cash,end of year $ 23,288,399 $ 25,442,812 Reconciliation of operating income to net cash provided by operating activities: Operating income(loss) $ 3,950,107 $ (735,558) RDS amounts paid to members and other (1,372,463) (1,647,037) Changes in operating assets and liabilities: Receivables (614,189) 1,535,793 Prepaids (143,023) (7,847) Deposits (24,760) (2,600) Accounts payable (57,684) 57,684 RDS due members 1,372,463 (189,568) Claims liabilities (5,456,279) 3,378,947 Other liabilities 52,321 80,098 Net cash provided by operating activities $ (2,293,507) $ 2,469,912 See the accompanying notes to the financial statements. 3 CAPE COD MUNICIPAL HEALTH GROUP Notes to Financial Statements June 30,2013 and 2012 Note 1. Description of Group Cape Cod Municipal Health Group (the Group), Barnstable, Massachusetts, is a Massachusetts Municipal Joint Health Insurance Purchase Group formed pursuant to Massachusetts General Laws,Chapter 32B, Section 12 under a certain joint purchase agreement which became effective in July 1987. The Group became operational in November 1987. As a governmental entity,the Group is not subject to the provisions of the Employee Retirement Income Security Act of 1974 nor is it subject to federal and state income taxes. The Group offers health benefits to all eligible employees and retirees of its fifty-three participating governmental units. Participating governmental units consist of those municipal groups that have signed a Joint Negotiation and Purchase of Health Coverage governmental agreement. At June 30, 2010, participants are the towns of Barnstable, Brewster, Chatham, Dennis, Eastham, Falmouth, Harwich, Mashpee, Orleans, Provincetown, Sandwich, Truro, Wellfleet, and Yarmouth; Bourne Recreation Authority; Barnstable Fire District, Centerville-Osterville-Marstons Mills Fire District, Cotuit Fire District, Hyannis Fire District, and West Barnstable Fire District; Bourne Water District, Buzzards Bay Water District, Dennis Water District, Mashpee Water District, North Sagamore Water District, and Sandwich Water District; Orleans/Brewster/Eastham Groundwater Protection District; Cape Cod Collaborative; Cape Cod Regional Technical High School, Dennis-Yarmouth Regional School District, The Lighthouse Charter School, Nauset Regional School District, Monomoy Regional School District; and Upper Cape Cod Vocational Technical High School; Veterans Services of Cape Cod;Barnstable County; and Cape Cod Regional Transit Authority. In addition, the Group entered into a Joint Negotiation Purchase of Health Coverage with the Dukes County Municipal Health Group which now consists of Dukes County Commissioners; the towns of Chilmark, Edgartown, Gosnold, Oak Bluffs, Tisbury, West Tisbury, and Aquinnah; Martha's Vineyard Refuse Disposal and Resource Recovery District; Martha's Vineyard Commission; Martha's Vineyard Land Bank Commission; Oak Bluffs Water District; Martha's Vineyard Regional School District; Up-Island Regional School District; Martha's Vineyard Charter School; and Martha's Vineyard Transit Authority. The number of subscribers in the self-funded medical plans was approximately 10,000 at June 30,2013 and 2012. Governmental units may apply for membership and be added to the Group, commencing on a date mutually agreed upon, provided that no less than two-thirds of the Board representatives present at a duly called meeting of the Board vote to accept such additional participants. Any participating governmental unit may withdraw participation at its discretion. A governmental unit that elects to terminate participation in the Group must notify the Cape Cod Municipal Health Group Board(the Board)of such intent to withdraw 90 days prior to the stated anniversary date of the basic health contracts and shall take effect on such anniversary date. There is no liability for premium or administrative expense following the effective date of termination of a participating governmental unit's coverage under a contract purchased through the Group except for the governmental unit's proportionate share of any deficit in the Cape Cod Municipal Health Group Trust(the Trust) as of its termination date, or of any premium expense or any subsequent expense for its covered individuals continued on the plan after termination. In the case of a certified surplus (uncommitted fund balance),a unit that withdraws from the Group on anniversary is entitled to receive a proportionate share of any increase in the uncommitted fund balance that occurred during the governmental unit's last year of 4 CAPE COD MUNICIPAL HEALTH GROUP Notes to Financial Statements June 30,2013 and 2012 Note 1. Description of Grout)(continued) participation in the Group. If the uncommitted fund balance did not increase during the unit's last year of participation the unit is not entitled to any share of the uncommitted fund balance. Contributions to the Group's trust fund from participating governmental units are on a monthly basis. The payment is calculated by the Board and is determined to be 100%of the cost of coverage of the Group as a whole (including, but not limited to, anticipated incurred claims, retention, risk, and group administration expenses)as established through underwriting and/or actuarial estimates. The Group's Board may deal with certified surpluses and deficits through the rate setting process and this is the preferred method. Alternatively, the Group may deal with certified surpluses and deficits by making direct distributions to members in the case of a certified surplus or may require direct payments from members in the case of a certified deficit. Health benefits plans for active employees and non-Medicare eligible retirees consist of a traditional medical indemnity plan, two Preferred Provider Organization (PPO) plans and two Exclusive Provider Organization (EPO) plans. All active employees are self funded with Blue Cross and Blue Shield of Massachusetts (BCBSMA) and Harvard Pilgrim Health Care (HPHC) as third party administrators. The Group offers six health plans for Medicare eligible retirees, which include two self-funded Medicare Supplement plans, one of which is administered by BCBSMA and one by HPHC, one fully insured Medicare Supplement with a Medicare Prescription Drug (PDP) plan provided by Tufts Health Plan, one HMO Medicare wrap plan fully insured by BCBSMA, and two fully insured Medicare Advantage HMO plans,one of which is from BCBSMA and one from Tufts Health Plan. Prior to July 1, 2012, the Group offered two benefit options for each EPO and PPO plan: the Legacy option and the Rate Saver option. On July 1,2012,the Group changed its plan designs following applicable law to do so. The plan design changes resulted in a single option for each EPO and each PPO. These options are similar in plan design to the Group Insurance Commission's "benchmark plan" and include additional member cost-sharing features. The Group has adopted a contributory dental insurance plan(self-funded)and a voluntary dental plan, which was premium based through June 30,2007 and changed to a self-funded basis effective July 1, 2007. These plans are administered by Delta Dental Plan of Massachusetts for a monthly administration fee,based on the number of subscribers. Effective July 1, 2009, the Group adopted a voluntary fully funded vision plan from EyeMed Vision Care. The vision plan is optional for employers Master Health Plus, Blue Care Elect Preferred PPO plan, Network Blue EPO plan, and Medex plan are on a claims-paid basis and are administered by Blue Cross and Blue Shield of Massachusetts for a monthly administration fee based on the number of individual, single parent/single child, and family plan subscribers for that particular month. The Harvard Pilgrim EPO plan, Harvard Pilgrim PPO plan, and Harvard Pilgrim Health Care Enhance Medicare plan are on a claims-paid basis and are administered by Harvard Pilgrim Health Care for a monthly administration fee based on the number of individual and family plan subscribers for that particular month. 5 CAPE COD MUNICIPAL HEALTH GROUP Notes to Financial Statements June 30,2013 and 2012 Note 1. Description of GroUD(continued) The Group has a specific excess medical and prescription drug claims reinsurance contract with an insurance carrier covering claims paid in excess of$500,000 and $300,000 per individual, to a lifetime maximum amount payable of$2,000,000, at June 30, 2013 and 2012, respectively. The Group does not reinsure its Medex and HPHC Medicare Enhance plans. The policy period covers claims incurred within 12 months and paid within 24 months. The Group employs the services of John R. Sharry, Incorporated, d/b/a Group Benefits Strategies (GBS), to provide certain management,consulting,and technical functions and to audit medical claims paid. The current agreement with GBS is for a three-year term ending June 30, 2014,and provides for an annual fee based on the number of subscribers. The agreement may be terminated by either party at any time with sixty(60)days prior,written notice. Note 2. Summary of Significant Accounting Policies Financial statements present net position at June 30, revenues,expenses, and changes in net position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America, which recognize revenues from contributions and earnings when eamed and expenditures when liabilities are incurred. Surplus and deficits are accounted for separately for the medical programs and the dental program. Accordingly,these funds are presented separately in the accompanying financial statements. Contributions to the plans from participating governmental units are determined annually for the next fiscal year based on current operating results and estimated program costs for that year. Participants are billed monthly. Participant advance contributions are recorded as liabilities until earned. Cash and Cash Eauivalents Generally, the Group is authorized to invest in the following investments: term deposits or certificates of deposit,trust companies, national banks, savings banks or banking companies, or obligations issued or unconditionally guaranteed by the United States Government or an agency thereof and having a maturity from date of purchase of one year or less with certain other limitations, or such securities as are legal for the investment of funds of savings banks under the bank's laws of the Commonwealth of Massachusetts based on a legal opinion received by the Group. Cash and cash equivalents consist of cash on hand; cash in checking, savings or money market accounts; repurchase agreements; other short-term investments with original maturities of three months or less; and the Commonwealth of Massachusetts Municipal Depository Trust (MMDT)which has legislative approval for municipal use. 6 CAPE COD MUNICIPAL HEALTH GROUP Notes to Financial Statements June 30,2013 and 2012 Note 2. Summary of Significant Accounting Policies(continued) Claims'Liabilities The Group's obligations include estimated health claims incurred but not reported at June 30. The Group uses the latest reported claims to record the Group's payable of reported claims and to estimate health claims incurred but not reported as of that date. Actual claims reported differ from claims estimated, but the size of the Group and stop-loss coverage minimizes the risk of a significant difference. Claims' liabilities are reviewed periodically using claims data adjusted for the Group's current experience. Adjustments to claims'liabilities are charged or credited to expense in the periods in which they are made. Reinsurance The Group does not include reinsured risks as liabilities unless it is probable that those risks will not be covered by the reinsurer. Amounts recoverable through reinsurers on paid claims are classified as receivable and as a reduction of claims expense. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results will differ from estimates. Note 3. Cash.cash equivalents and investments The Group maintains deposits in several authorized financial institutions. In the case of deposits, custodial credit risk is the risk that in the event of a bank failure, the Group's deposits may not be returned. The Group does not have a formal deposit policy for custodial credit risk. At June 30, 2013 and 2012 deposits totaled $23,298,076 and $25,559,590, respectively and had a carrying amount of$23,288,399 and $25,442,812, respectively. Of the deposit amounts at June 30, 2013 and 2012, $1,467,298 and $8,875,784, respectively, which includes $10,539 and $2,045,700, respectively on deposit with MMDT, was exposed to custodial credit risk at June 30, 2013 and 2012 because it was uninsured and uncollateralized. The difference between deposit amounts and carrying amounts generally represents outstanding checks and deposits in transit. The Group maintains two accounts for investments which hold the following at June 30,2013: Fair Market Fair Market Value %of Value %of Tvae June 30.2013 Total June 30.2012 Total Debt securities: US Government&agencies $4,214.383 34% $4,085.190 36% Equity securities 2,667,796 21% 2,458,994 21% Equity mutual funds 2,453,277 20% 2,333,937 20% Corporate bonds 1,064,639 9% 845,439 7% Fixed income mutual funds 1.951.699 16% 1.857991 16% $12,351794 1 t.581.551 7 CAPE COD MUNICIPAL HEALTH GROUP Notes to Financial Statements June 30,2013 and 2012 Note 3. Cash.cash eauivalents and investments(continued) Custodial credit risk for investments is the risk that, in the event of the failure of the counter party to a transaction,a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Group has an investment subcommittee that monitors this risk however the Group does not have a specific investment policy covering custodial credit risk. Investments in open-end mutual funds are not exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form. The investment account is insured by Securities Investor Protection Corporation(SIPC)up to$500,000 and is otherwise uninsured and uncollateralized. Interest rate risk is the risk that changes in market interest rates that will adversely affect the fair market value of an investment. Generally,the longer the maturity of an investment the greater the sensitivity of its fair market value to changes in market interest rates. The Group has an investment policy which limits the overall portfolio allocation of fixed income securities to 85% of the total portfolio, but does not otherwise limit the maturities of fixed income securities or further address interest rate risk. The approximate maturities of the Group's debt investments are disclosed in the following table as of June 30, 2013: Maturity(In Years) Fair Market Investment Tyne Value One or Less One to Two Three to Five Thereafter US Govt.and agency securities $4,214,383 $1,194,791 $ 155,086 $2,314,878 $549,628 Corporate Bonds 1,064,639 - 157,007 510,824 396,808 Fixed income mutual funds: Principal Pref Security Fund 321,045 321,045 - _ - Wells Fargo Int'l Bond 625,459 625,459 MFS High Yield Fund 322,410 322,410 Ridgeworth Seix High Inc. 330,319 330,319 _ TIAA-CREF Inst,Bond 352.466 352.466 _ Total %7-230-721 &3-146,490 $_3u�}9 S2.8= Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. Credit risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. Obligations of the U.S. Government and certain of its agencies are not considered to have credit risk and therefore no rating is disclosed in following table. Equity securities are not rated as to credit risk. The Group has an investment policy which limits the overall portfolio allocation but is not specific as to limit investment choices to certain ratings. The following table discloses the approximate amount of debt investments in each rating classification using Standard&Poor's rating classifications as of June 30,2013: S&P Ratinp as of Year End Investment Fair Market AA+ Type Value A to AA BB to B Not Rated US Govt,and agency securities $4,214,383 $4,214,383 $ - $ - $ - Corporate Bonds 1,064,639 - 1,064,639 - - Fixed income mutual funds: Principal Pref Security Fund 321,045 321,045 _ Wells Fargo Int'l Bond 625,459 625,459 MFS High Yield Fund 322,410 _ 322,410 _ Ridgeworth Seix High Inc. 330,319 _ _ 330,319 TIAA-CREF Inst.Bond 352.466 352.466 Total $5.230.721 s 4-214-383 $ 1.064.639 $1951.699 8 CAPE COD MUNICIPAL HEALTH GROUP Notes to Financial Statements June 30,2013 and 2012 Note 3. Cash,cash enuivalents and investments(continued) Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Group has an investment policy which prohibits any one issue (excluding US Government securities) from making up more than 5% of the portfolio. As of June 30, 2013, there are no securities exceeding this threshold. Note 4. Plan Denosits and Pavment Arran eE ments The Group pays Blue Cross&Blue Shield(BC/BS)and Harvard Pilgrim Health Care(HPHC)a level, monthly payment each month to cover the expected cost of claims for that month. The amount has been mutually agreed upon to represent approximately one month of projected claims for BC/BS and HPHC plans. There is a quarterly reconciliation and settle-up against actual claims payments made by BC/BS and HPHC on behalf of the Group. Quarterly settle-up payments/credits are generally made for the Is', 2nd,3`d, and 4d'fiscal year quarters in December,March,June,and September respectively. The Group pays BC/BS, HPHC monthly,and Delta Dental administrative fees for self-funded health plans based on the number of individual and family subscribers covered under each health plan for the month. Note S. Unnaid Claims The Group establishes a liability for both reported and unreported incurred events which includes estimates of both future payments of losses and related adjustment expenses, if any. The following represents changes in claims liabilities during the years ended June 30,2013 and 2012: 2013 2012 Unpaid claims and claims adjustment expenses—beginning of year $ 17,367,706 $ 13,988,759 Incurred claims and claims adjustment expenses: Provision for insured events of the current fiscal year 127,253,895 145,412,749 Increase(decrease)in provision for insured events of prior fiscal years (6.815.567) (4.303.737) 120,438,328 141,109,012 Payments: Claims and expenses,net,attributable to insured events—current year (115,340,752) (128,043,326) Claims and expenses,net,attributable to insured events—prior years (10.553.855) (9.686.739) (125.894.607) (137.730.065) Total unpaid claims and claim adjustment expenses—end of year $ 11.911.427 SS 17,367,706 9 CAPE COD MUNICIIPAL HEALTH GROUP Required Supplementary Information Ten-Year Claims Development Information The table below illustrates how the Group's earned revenues and investment income compare to related costs of loss and other expenses assumed by the Group as of the end of each of the last ten years. The rows in the table are defined as follows: (1)This line shows the total of each fiscal year's earned contribution revenues and investment revenues. (1-a)This line shows the amount of existing net assets used to fund each fiscal year's operations, in addition to earned revenues displayed in line I,above. (2)This line shows each fiscal year's other operating costs of the Group including overhead and claims expense not allocated to individual claims. (3) This line shows the Group's incurred claims and allocated claims adjustment expense(both paid and accrued)as originally reported at the end of the first year in which the event triggered coverage under the contract occurred (called policy year). (4) This section of rows shows how each policy year's incurred claims increased or decreased as of the end of successive years. This annual re-estimation results from new information received on known claims,reevaluation of existing information on known claims, as well as emergence of new claims not previously known. (6) This line compares the latest re-estimated incurred claims amount to the originally established (line 3) and shows whether this latest estimate of claims cost is greater or less than originally thought. As data for individual policy years mature, the correlation between original estimates and re-estimated amounts is commonly used to evaluate the accuracy of incurred claims currently recognized in less mature policy years. The columns of the table show data for successive policy years: 6/30/1013 6!30/2012 6/30/2011 6/302010 6/30/2009 6/30/2008 6/302007 6/30/2006 6/30/2005 6/3012004 Earned member assessments,refunds and investment revenues 134,754,015 150,080,913 141,270,154 137,921,701 134,055,363 110,975,423 109,321,764 100,387,750 90,400,730 82,818,727 1 a Net assets provided(used) bX current)ear operations 3.486,981 (1,897,662) (498,285) 5,014,000 2,720,689 (4,400,607) 1,046,834 3,623,385 3,438,337 2,975,754 12 Adminis"trve and operatinRexpenses 9,910,621 9,222,526 9,069,287 9,546,016 9,344,537 8,468,641 8,026,446 7,735,384 7,433,816 6,763,642 13 Estimated incurred c aims an expense, end of fiscal year 127,253,895 145,412,749 133,471,826 125,912,820 124,753,283 109,634,965 102,551,402 89,936,391 82,615,950 73,588,400 4 Paid(cumulative)as of: End of fiscal year 115,340,752 128,043,326 119,481,350 115,687,707 111,260.461 98,844,030 90,653,296 80,880,494 75,571,919 64,462,173 One year later 138,622,170 129,161,518 124,322,771 122,682,458 106,891,163 100,040,770 87,640,181 81,944,902 70,036,510 I Two years later 129,153,965 124,120,003 122,539,022 106,835,605 100,043,922 87,453,852 81,959,510 69,893,088 1 Three years later 124,128,330 122,748,908 106,795,002 100,017,640 87,442,275 81,996,340 69,894,398 1 Four years later 122,743,569 106,789,020 99,988,470 87,431,270 81,987,305 69,827,321 Five years later 106,768,518 99,992,393 87,393,769 81,985,421 69,827,596 Six years later 99,992.472 87,395,281 81,985,507 69,827,596 Seven years later 87,395,281 81,985,507 69,826,836 Eight years later 81,985,507 69,826,836 Nine Years later 69,826,836 5 Reestrmated incurred claims and expense End of fiscal year 127,253,895 145,412,749 133,471,826 125,912,820 124,753,283 109,634,965 102,551,402 89,936,391 79,528,577 73,079,330 One year later 138,622,170 129,161,518 124,322,771 122,682,458 106,891,163 100,040,770 87,640,181 81,944,902 70,036,510 Two years later 129,153,965 124,120,003 122,539,022 106,835,605 100,043,922 87,453,852 81,959,510 69,893,088 Three years later 124,128,330 122,748,9081 106,795,002 100,017,640 87,442,275 81,996,340 69,894,398 Four years later 122,743,569 1 106,789,020 99,988,470 87,431,2701 81,987,305 69,827,321 Five years later 1106,768,518 99,992,393 87,393,7691 81,985,421 1 69,827,596 Six years later 1 99,992,472 87,395,2811 81,985.507 69,827,596 Seven years later 1 87,395,281 1 81,985,5071 69,826,836 Eight years later 1 1 81,985,507 69,826,836 Nine years later 1 69,826.836 6 (Increase)decrease in estimated incurred 1 claims and expense from the end of the 1 1 original policy year 6,790,579 4,317,861 1,784,490 2,009,7141 2,866,447 2,558,930 2,541,1101 630,4431 3,761,564 10 t ",1�1�11111111I Board of Selectmen W Assistant Town Administrator O q w Qb �h BREWSTER BICENTENNUL G _ to 2198 Main Street Brewster, Massachusetts 02631-1898 #yR (508)a96-3701 Q '•�i,•!r/'���lrrJrrr,riluill�tl,���u```���•`�� FAX(508)896-8089 � To: Charlie and the Board of Selectmen From: Jillian Douglass Date: 1114/14 RE: 42 Skaket Way I spoke with Victor re: his letter of 1/2/14 on 42 Skaket Way. This was an odd situation where a ZB,A,variance was issued and then an extension (back in 2005)and then a building permit. But due to lack of activity, for years, the building permit has expired. Victor has identified this as a situation where the applicant Seems to be stringing this an just to protect a status, which probably should have expired. He was just keeping us informed as he suspects the applicant will be re-applying for a new building permit. The project may not be able to meet the current building code and the application will be assessed a new fee(substantially more than the original fee paid), which he may appeal to the Board, We may hear more about it, but Vies letters are simple FYI at the moment. �aewsr TOWN OF BRF WSTER OFrrcF of 04 , SM.". Op BLULDIN4❑RPAM'ML'NT _ 2198 MAIN STRLE I o vt BREWSTER,MA 02631 a " PHONE:(508)895-3701 EXT 1125 ° FAx:(508)896-8089 kwirniru W W W.TO WN.BREWS TER.MA.U3 Date' January 2, 2014 To: Board of Selectmen From; Victor E. Staley, Building Commissioner 'Y"r-r— cc: Charles Sumner, Town Administrator Susan Broderick, Administrative Supervisor Re: Building Permit#2007-222 to Construct a Single Family Dwelling at 42 Skaket Way, Identified on Assessors Old Map 10 Lot 22 (New Map 139-4) This project has gone through a number of false starts for varying reasons. The building permit application was submitted in April 2004 and the building permit was issued in April 2007 (after Board of Appeals Variance and subsequent extension), A foundation was introduced in July 2008 and no further construction has been performed since that time. The State Building Code 780 CMR considers a building permit as null and void if construction ceases for a period of 180 days or more. Thus this project will be required to submit for a new building permit and must comply with the current edition of the State Building Code. The Building Department Fee Schedule has also evolved since the original 2004 building permit application. The fee for Building Permit#2007-222 issued in April 2007 was $1,426.00. If the building does not change in size (3,720 square feet of living space) or scope then the fee for a new building permit will be $2,341.00. \\\`�aoawunuuunwu� T OwN QE BRE W STER OFFICE OF eaewsT"�,,, o+c v ° F BUILDING DEPARTMENT 2198 MAIN STREET BREWSTER,MA 02631 PHONE:(508)896-3701 EXT 1125 FAX:(508)896-8089 N� w�mpui wo" WWW.TOWN.BREWSTER.MA.US January 2, 2014 Mr. Paul Lucier 40 Skaket Way Brewster, MA 02631 Re: Reinstating Building Permit to Construct Single Family Dwelling at 42 Skaket Way, Identified on Assessors Old Map 10 Lot 22 (New Map 139 Lot 4) Dear Mr. Lucier: You have requested guidance with regard to the necessary steps that need to be taken to have Building Permit #2007-222 reinstated for construction of a single family dwelling. According to the information in the Building Department records the house and attached garage foundations were inspected in the summer of 2008. It is my understanding that no further construction work beyond the foundation was performed with regard to Building Permit#2007-222. Pursuant to State Building Code Section R105.5 if the work authorized by Building Permit #2007-222 was abandoned for a period of more than 180 days then said building permit becomes null and void which will require you to submit a new building permit application. This new application shall include the following information. 1. As built site plan indicating the existing foundations including garage. 2. Building plans to reflect 8t Edition of the State Building Code. 3. Energy conservation information pursuant to 2009 International Energy Conservation Code. 4. Updated construction supervisor's information. We also need to close out two (2) outstanding Building Permits #02-554 and #06-703 by confirming that the gas fireplace has obtained a final inspection. Since ely, Victor E. Stale Building Commissioner VS/mt FY -ti ,Y �N Town of Brewster F}Iruirrrng 13oard L. 2198 Maim Street Brewster, Massachusetts 02531-1598 (508)896-3101 ext. 1233 t�;° VA �r�lrmiu�iu brewplan@town.brewster.ma.us January 9,2014 Ms. Melissa Cryan Division of Conservation Services Executive Office of Energy and Environmental Affairs 100 Cambridge Street,9th F[ Boston, MA 02114-2150 RE, Draft Open Space Plan Update—2013 Dear Ms.Cryan: On behalf of the Brewster Planning Board, I would Ince to congratulate the Open Space Committee, the Recreation Commisslon and the Conservation Commission for their commitment to the completion of an Open Space Plan Update. I would like to thank Planning Board member Elizabeth Taylor for her dedication in working with the Horsley Witten Group on this important update. The Board voted on January 8, 2014 to endorse the Plan for stihml5slon to the State. The Plan demonstrates the Town's land steward values.The Plan provides boards and committees the necessary data for ongoing actions and for preservation and protection of the Town's open spaces.This update will assist the Planning Board (►s it moves ahead with its Local Comprehensive Plan. Thank you everyone for your hard work and commitment to the plan, Sincerely, William Hoag Chairman,Planking Board Cr:Open Space Committee,Conservation Commission, Recreation Committee, Board of Selectmen, Planning Board, Horsley Witten Group Letter In 5uppnrt Of Open Space-ner Update 2014 Flhal r'4 Nutter Sarah A.Turano-Flores Direct Line: (50S)710-54477 Fax: (508)771-8079 E-mail: sturano-flores@la notter.com January 6, 2014 0111544-00046 Via Electronic Afail& Overnight Delivery Andrew P. O'Meara, Esq. Massachusetts Department of Revenue Litigation Bureau 100 Cambridge Street, 7`t' Floor Boston, Massachusetts 02114 Re: Board of Assessors of the Town of Brewster v. Commissioner of Revenuc Appellate Tax Board locket No. 0321767 Dear Attorney O'Mcara; Enclosed herewith, please find the original Stipulation and Agreement for Judgment, which is intended for filing in the above-captioned matter. Kindly counter-sign where indicated and file with the Appellate Tax Board at your earliest convenience. If you would also be so kind as to send me a fully executed, as filed, copy For my records, I would greatly appreciate it. Thank you and please do not hesitate to contact me with any questions. Very truly yours, 1 Sarah A. Turana-Flores Enclosure cc: Keri Angus, Esq. (via electronic mail) Michael Clifford, Esq. (via electronic mail) David Sullivan, Esq. (via electronic mail) Charles Sumner, Town Administrator(1st Class Mail) David Tately, Deputy Assessor(I" Class Mail) Brewster Board of Selectmen(I't Class Mail) Brewster Board of Assessors(I" Glass Mail) NUTTER McCLENNEN & PISH LLP ATTORNEYS AT LAW 1 471 lyannough Road P.O. Bax 1630 Hyonnis, Massachusetts 02601-1630 508-790-5100 Fax- 508-771-8079 www.nutter.com COMMONWEALTH OF MASSACHUSETTS APPELLATE TAX BOARD BOARD OF ASSESSORS OF THE ) TOWN OF BREWSTER, ) Appellant, ) V. ) DOCKET NO. C321767 COMMISSIONER OF REVENUE, ) Appellee. STIPULATION AND AGREEMENT FOR JUDGMENT The parties in the above-referenced matter hereby agree and stipulate as follows: 1. Pursuant to G.L. c.58, §13, the fair cash value as of January 1, 2013 of the property owned by the Commonwealth and located in the Town of Brewster is $34,148,900.00. 2. It is agreed by and between the parties that upon the acceptance and approval by the Appellate Tax Board,the same shall become an Order of the Board. 3. It is further agreed by and between the parties that the Commissioner shall use such value set forth in the Order from the Board in her communication to the State Treasurer for the purposes of the FY2015 reimbursement in accordance with G.L. c.58, §17. The parties agree that such value for FY2016-2018 maybe adjusted upward or downward by the Commissioner according to the requirements of G.L. c.58, §§13 through 17C with respect to any land acquired or conveyed by the Commonwealth after January 1, 2013 and located in the Town of Brewster. 4. It is further agreed by and between the parties for purposes of the instant litigation only that the value specified in Paragraph 1 above was arrived at by determining that the property owned by the Commonwealth and located in the Town of Brewster included 52 prime lots. 5. It is further agreed by and between the parties that for purposes of any future determination pursuant to G.L. c.58, §13 of the fair cash value of property owned by the Commonwealth and located in the Town of Brewster, in addition to any other prime lots to which the Town shall be entitled by the application of the Commissioner's methodology in force at such future determination, the following four parcels, located on the cul-de-sac at the end of Weathervane Way, shall be treated as prime lots: Map 115, Parcel 1; Map 115, Parcel 2; Map 115, Parcel 3; and Map 115, Parcel 4. TOWN OF BREWSTER COMMISSIONER OF REVENUE By its attorney, By its attorney, >J� Sarah A. Turano-Flores (BBO#565114) Andrew P. O'Meara (BBO#600247) Town Counsel Commonwealth of Massachusetts Nutter McClennen & Fish LLP Department of Revenue—Litigation Bureau 1471 Iyannough Road P. O. Box 9565 Post Office Box 1630 100 Cambridge Street Hyannis, MA 02601 Boston, MA 02114-9565 (508) 790-5477 (617) 626-4002 2350203.1 Nutter Matthew Snell Direct Line: 517439-2617 Fax- 517-310-9517 E-mail: msnell&utter.com Sarah A.urano-Flores Direct Line: 517-439-5477 Fax: 617-314-9477 Email: sturanc@nutter.com January 6,2013 111544-33 VIA EMAIL AND FIRST CLASS MAIL Nancy Ellis Ice Health Director Town of Brewster 2198 Main Street Brewster, MA 02631 Re: Review of Brewster Regulations Restricting the Sale and Use of Tobacco Products & Nicotine Delivery Products - -- Dear Ms. Ice: We were asked to review proposed Regulations to govern the Sale and Use of Tobacco Products &Nicotine Delivery Products. From what I understand, it is intended that these Regulations shall replace the existing "Regulations Restricting the Sale and Use of Tobacco Products &Nicotine Delivery Products,"which were originally adopted on July 27, 2012. The proposed "Brewster Regulations Restricting the Sale and Use of Tobacco Products &Nicotine Delivery Products" (hereinafter, "Regulations") are intended to provide the Board of Health with the authority to regulate the sale and use of tobacco and nicotine delivery products within the Town of Brewster. Authoritv to Promuleate The "Authority" section of the Regulations states that the Board of Health seeks to regulate the sale and use of tobacco and nicotine delivery products pursuant to the authority granted to it by Massachusetts General Laws Chapter 111, Section 31. Chapter 111, §31 allows a local Board of Health to adopt regulations reasonably related to public health. With respect to the sale and use of tobacco products, extensive case law has firmly established that Chapter 111, §31 provides authority for a local Board of Health to adopt regulations governing the sale and use of tobacco and nicotine delivery products, including regulations which place age limits on the sale of tobacco regulations, such as the ones proposed here. See e.p-. American Lithuanian NUTTER McCLENNEiN & FISH LLP - ATTORNEYS AT LAW Seaport West 155 Seaport Boulevard Boston, Massachusetts 02210-2604 - 617-439-2000 Fax: 617,310-9000 wwmnutter.corn Nancy Ellis Ice 11hi January 6, 2013 Page 2 Naturalization Club v. Board of Health of Athol. 446 Mass. 310 (2006) (Board of Health has the authority to promulgate local antismoking regulation and is not preempted by statewide legislation); Tri-Nel Management, Inc. v. Board of Health of Barnstable. 433 Mass 217 (2001); Patton v. Marlborough, 415 Mass. 750 (751-52 (1993) (recognizing the ill effects of tobacco use when it involves minors and finding that regulation is a legitimate municipal health concern); Take Five Vending, Ltd. V. Provincetown, 415 Mass 741, 748-49 (1993) (upholding prohibition of sale of cigarettes from vending machines); RYO Cigar Association, Inc. v. Boston Public Health Commission, 79 Mass.App.Ct. 822 (2011) (ban of sale of cigar wraps allowed under local health commission's power). Additionally, and as a result of the existing case law, it is likely that Section 31 would also authorize the promulgation of regulations governing the sale and use of nicotine delivery products,provided they are similarly related to the protection of public health. I do note that Massachusetts General Laws Chapter 270, Section 6A limits a local Board of Health's authority as it relates to the sale of cigarette rolling papers. Section 6A states that: Whoever sells cigarette rolling papers to any person under the age of eighteen shall be punished by a fine of not less than twenty-five dollars for the first offense, not less than fifty dollars for the second offense and not less than one hundred dollars for a third or subsequent offense. Notwith,3twi Y the contrary, which is in effect on the effective date of this section, no city, town, department, board or other political subdivision or agency of the commonwealth may impose any requirements, restrictions or prohibitions pertaining to the sale of cigarette rolling papers, in addition to those in this section. Therefore, to the extent that any portion of the proposed Regulations seeks to limit the sale of cigarette rolling papers in a manner stricter than described in Section 6A, would likely be invalid. While is it is not clear whether the prohibition on commercial roll-your-own machines included in Section L of the Regulations includes regulation of cigarette rolling papers or if the change of age from 18 to 21 for tobacco sales includes the sale of cigarette rolling papers, regulation of these may be prohibited to the extent that the Regulations refer to cigarette rolling papers. Based on the foregoing,the Board of Health has authority to adopt regulations of the type proposed in the draft Regulations, with the exception that if"if commercial roll-your-own machines utilize cigarette rolling papers,then the regulations pertaining to those items may be unlawful. Nancy Ellis Ice 14ki January 6, 2013 Page 3 Su2i!ested Revisions to Proposed Draft Regulations D. Tobacco and Nicotine Delivery Product Sales to Minors Prohibited., In Section DA, the verification of age requirement should be changed to "Verification of age is required for any person who appears to be under the age of 27." E. Tobacco and Nicotine Delivery Product Sales Permit., In Section E.2.,the first sentence should be amended to state that the applicant will be provided with"the Brewster Regulations Restricting the Sale and Use of Tobacco Products & Nicotine Delivery Products." L. Commercial Roll-Your-Own Machines., This section should include that it does not regulate cigarette rolling papers. S. Effective Date. The effective date should be revised to the date accepted by the Board of Health. Other Revisions. On page 1, in the second whereas paragraph, "whereas" should be capitalized. This concludes my review of the proposed Brewster Regulations Restricting the Sale and Use of Tobacco Products &Nicotine Delivery Products. Please do not hesitate to contact me should you have any further questions. Thank you. Nancy Ellis Ice January 6, 2013 Page 4 Sincerely, LU� -44 . Sarah A. Turano-Flores Matthew Snell cc: Mary Chaffee, Chair, Board of Health Charles L. Sumner, Town Administrator Board of Health Board of Selectmen 2349347.1 rq Nutter Matthew Snell Direct Liffe. 617-439-2617 Fax: 617-310-96I7 E-mail: msnell@nutter.com Sarah A.Turguo-Flores Direct Line: 617-439-5477 Fate: 617-310-9477 Email: sturano@nutter.conl January 6, 2013 111544-33 VIA EMAIL AND FIRST CLASS MAIL Nancy Ellis Ice Health Director Town of Brewster 2198 Main Street Brewster,NIA 02631 Re: Review of Brewster Animal Replations Dear Ms. Ice: We were asked to review proposed Regulations to govern the keeping of animals. From what I understand, it is intended that these Regulations shall replace the existing"Animal Regulations,"which were originally adopted on February 12, 1987 and amended on November 17, 1992. The proposed `Brewster Animal Regulations"(hereinafter, "Regulations")are intended to provide the Board of Health with the authority to regulate the keeping of animals and livestock within the Town of Brewster- Authority to Promul The section of the Regulations entitled "Authority"states that the Board of Health seems to regulate the keeping of animals and livestock pursuant to the authority granted to it by Massachusetts General Laws Chapter 111, Section 31. Chapter 111, §31 allows a local Board of Health to adopt regulations reasonably related to public health. Section 31 would not ordinarily authorize the passage of regulations related to the health and well-being of the animals. However, where the regulations are proposed to govern the keepitag and maintenance of animals with the intended purpose being to protect the public health, such regulations would likely be lawful under Section 31. For example, regulations which regulate the storage and disposal of animal waste, or the storage of animals to prevent overcrowding and impacts to neighboring properly, are reasonably related to eliminating threats to public health and thus, would be NUTTER Mr-CL£NNEN & FhSH LLP - ATTORNEYS AT LAW Seaport.West 155 Seaport Boulevard - Boston, Massachusetts 022102644 • 617-439.2000 - Fax_ 617-310-9000 www_nutter.COM Nancy Ellis Ice January 6, 2013 Page 2 authorized by Section 31. Section 31 does not provide authority to a local Board of Health to regulate the general care of animals solely for the health and safety of the animals. A number of other statutes could also be utilized as a source to provide authority to a local Board of Health for the regulation of the keeping of animals and livestock. For example, there are statutes allowing Boards of Health to pass regulations to regulate nuisances and noisome or injurious odors including Massachusetts General Laws Chapter 111, Section 122 and Chapter 111, Section 143. Section 122 allows the Board of Health to "examine into all nuisances ... which may, in its opinion, be injurious to the public health ... and shall make regulations for the public health and safety relative thereto." Section 143 states that"[n]o trade or employment which may result in a nuisance or be harmful to the inhabitants, injurious to their estates, dangerous to the public health, or may be attended by noisome and injurious odors shall be established in a city or town except in such a location as may be assigned by the board of health." Section 143 specifically applies to piggeries. Massachusetts General Laws Chapter 111, Section 125A specifically limits a local Board of Health's authority regarding the regulation of nuisances as it relates to farm operations. Section 125A states that"the odor from the normal maintenance of livestock or the spreading of manure upon agricultural and horticultural or farming lands, or noise from livestock or farm equipment used in normal, generally acceptable farming procedures or from plowing or cultivation operations upon agricultural and horticultural or farming lands shall not be deemed to constitute a nuisance." Finally, Massachusetts General Laws Chapter 111, Section 155 provides a local Board of Health with the authority to license stables. Pursuant to Section 155, a local Board of Health may "make such regulations or orders as, in its judgment,the public health requires relative to drainage, ventilation, size and character of stalls, bedding, number of animals and storage and handling of manure in any stable in its city or town." Based on the foregoing, the Board of Health has authority to adopt regulations of the type proposed in the draft Regulations with the exception of the portions of the regulations which appear on their face to specifically seek to provide for the protection of animals and which could be construed to regulate acceptable farming operations excepted under Section 125A. Su2i!ested Revisions to Proposed Draft ReErulations Authoritv. I would suggest changing this section to be titled Authority and Purpose. The language "to provide for the care and well-being of the Town's animals" should be removed as the Board of Health does not have the authority to regulate the care of animals. I would suggest the following language: Nancy Ellis Ice 1161 January 6, 2013 Page 3 Under the authority granted to it pursuant to the provisions of Massachusetts General Laws, Chapter 111, Sections 31, 122, 143 and 155, the Board of Health, for the purpose of better protection of the public health and to prevent nuisances and noisome or injurious odors, has promulgated and voted to adopt the following regulations for the keeping of animals and livestock. This regulation supersedes the current Town of Brewster Animal Regulation. Section II. Definitions. Animal Shelter. This definition is very broad and could be construed to include many things, for example a dog house. If defined in that broad sense, then a dog house would require a permit and would be subject to the setbacks found in Section IV. The definition should be refined to exempt a dog house for the purpose of a family pet. We would suggest revising the language to define animal shelter as "Any building or structure where an animal is sheltered or maintained, or any portion of a building used for this purpose, except dog houses used to shelter two or fewer dogs." Feeding and Baiting. This term is defined in Section II; however it is not used in any other portion of the Regulations. I would suggest deleting this from the definitions. If it is the intent of the Board of Health to include regulations regarding the feeding of waterfowl, an additional section would be needed in the Regulations. I note that in reviewing other jurisdictions' regulations, the Town of Barnstable has thorough regulations regarding waterfowl and feeding and baiting. If the Board should decide to include such regulations, we would be happy to assist in the drafting of these provisions. Wild Animal. This term is defined in Section II; however it is not used in any other portion of the Regulations. I would suggest deleting this from the definitions. If it is the intent of the Board of Health to include regulations regarding the keeping of wild animals, a specific section should be drafted detailing the permit requirements, number, conditions for keeping such animals and the rationale to protect public health behind these requirements. If the Board should decide to include such regulations, we would be happy to assist in the drafting of these provisions. Section III. General. Section 3.2 requires that "no animal shelter shall be located less than two hundred (200) feet from the high water mark of any open waters flowing directly or ultimately into any source of potable water supply." As this requirement is more properly a setback, it should be included in Section IV. Setbacks from Animal Shelters. Nancy Ellis Ice It January 6, 2013 Page 4 Section IV. Setbacks for Animal Shelters. The first sentence of this section should reference animal shelters, including barns, coops, piggeries and stables, and manure piles for composting. The second sentence of this section should also reference that in order to obtain a permit and registration pursuant to Section VIII of the Regulations,the applicant must provide a site plan and the other information required in Section IV. We would suggest the second sentence to state that"In order to obtain a permit pursuant to Section VIII of these Regulations, the applicant must submit a site plan of the property showing the proposed location of the animal shelters and enclosure, including setbacks and grades, for.review and approval." In addition, the setbacks do not indicate the required setback for temporary storage of manure and animal waste pursuant to Section VII.7.1 of the Regulations. Section 7.1 allows for the temporary, not to exceed two weeks, storage of animal waste. This should be included in the table of setbacks. Section V. Construction. As a general note, the requirements of Section V. should be viewed as protections of the public health. Any requirement meant to protect the safety or health of the animals at issue would not be an authorized power for the Board of Health. In Section 5.l.d, what is the basis for the basic criteria for floors? It is unclear what requirement exists for the installation of an excellent or good floor or how an applicant is to choose which type should be installed for a particular use? The Regulations do not require that an applicant propose either type of flooring. I would suggest that the section be altered to provide guidance as to the type of flooring that would be acceptable for various types of structures and uses, rather than a statement saying this is what constitutes an excellent versus good floor. We can assist in drafting additional language once the Board has decided on what parameters it would like to use. In Section 5.3.a, the Regulations require that piggeries "shall be located in accordance with M.G.L. Ch. 111, § 143." However, Section 143 does not contain any provisions for the location of piggeries. Section 143 merely states that a local Board of Health has the authority to assign location for activities with a nuisance or noisome odor. This reference should be deleted. In Section 5.3b.3, I believe that the word "Reuse" should be "Refuse." Section 5.3.d details the requirements for feeding of garbage to pigs and the storage of such garbage. Massachusetts General Laws Chapter 129, Section 14B controls the feeding of garbage to swine. This Section requires a permit from the State Division of Animal Health. I would suggest that an additional requirement be included as 5.3.d.1 stating that "Feeding of and Nancy Ellis Ice January 6, 2013 Page 5 storage of garbage to swine shall be conducted in accordance with Massachusetts General Laws Chapter 129, Section 14B, 330 CMR 11.00 and any permit required for such operation by the Massachusetts Department of Food &Agriculture, Division of Animal Health." The existing Section 5.3.d.1 should be deleted as this is a requirement of the Division of Animal Health. Section 5.4 provides requirements for"open sheds." This term is not further defined and is extremely broad. Is this meant to include all sheds or just sheds used for the storage of animals. I would suggest that the section be amended to define open sheds as those used as animal shelters. Section VII. Drainaue and Waste Disposal., In Section 7.1, is it the Board of Health's position that no waste, including that to be stored temporarily onsite, can be stored outside unless it is in a compost pile? If so, the first sentence of the Section should be amended to state that"All animal waste shall be either composted on the premises or stored inside a structure temporarily, i.e. not to exceed two (2) weeks." You should be aware that to the extent that waste is generated as part of farm operations or farming as that term is defined in Massachusetts General Laws Chapter 111, Section 155, the requirements of Massachusetts General Laws Chapter 111, Section 125A likely prevent the Board from regulating such waste. Recall that Section 125A permits the "spreading of manure upon agricultural and horticultural or farming lands" and does not allow the Board of Health to regulate such spreading. Therefore, where an operation meets the definition of farming, animal waste could be spread on farm lands. While this exemption does not need to be specifically spelled out in the regulations, it will be important to keep it in mind so that the regulations—as applied—do not become problematic in the future. Section VIII. Permits and Registration. This Section should be entitled "Permits" as no registration is required in this draft. As I understand it, a permit would be issued by you, as Health Agent, for applications that meet the regulations, while those that do not could request a variance and have a hearing before the Board of Health. The Section requires that a permit be obtained for farm animals. This implies that animals not falling into the definition of farm animals, or those considered to be domestic or wild animals, defined under Section II, would not require a permit. I would suggest that language be included to allow for a permit for farm animals versus domestic or wild animals. Nancy Ellis Ice January 6, 2013 Page 6 The Section requires that prior approval or a permit is required to keep or maintain any farm animal in the Town of Brewster. The Section is moot as to the difference between an approval and a permit as well as the procedure for either. I would suggest that the approval language be removed and that only a permit be required. I would also suggest that language be added to the Section detailing the submittal requirements for a permit to keep and maintain farm animals. As we discussed in our telephone call, this should include that applicants would submit a Board of Health approved form, along with a site plan meeting the requirements of these regulations, to you for administrative review and issuance of a permit. The application materials should include among other things the requirement for site plan and layout described in Section IV, and the type of animals and compliance with the construction parameters detailed in Section V. The last sentence of the first paragraph, "The following permits shall be required" should be deleted. Section X. Variances. As the permit will be issued by you,this Section should be amended to state that, in the event a parry is denied a permit, the applicant may seek a variance of the regulations from the full Board of Health. In addition, the regulations are silent as to what standards the Board shall apply when considering a request for a variance. Does the Board intend for the applicant to use the same "variance" standard that is set forth in the Board's "Variance Regulation" or does that "Variance Regulation"pertain only to septic system applications? The "Variance Regulation" does not specifically state that it is applicable only to septic system applications, however, it's language certainly suggests it was intended to apply to septic system applications. The Board should decide whether it's existing "Variance Regulation" should apply to this set of regulations and, if so,then reference to the "Variance Regulation" should be made here. If the Board decides it would prefer to have a distinct variance standard for these animal regulations, then it should decide what standard to apply. We can assist in drafting that standard once the Board has decided on what parameters it would like to use. Section XI. Right to a Hearin. This Section allows for a party aggrieved by an order of the Board of Health to seek a hearing within seven days of the order. Use of the word "order" is confusing in this provision. Up until this point, the regulations do not discuss "orders" from the full board. Rather, they discuss a"permit" from the Health Agent. Consequently, it is not clear as to what an applicant is appealing to the full board. Presumably, this section is intended to provide an opportunity for a hearing when an application for a permit is denied by the Health Agent. If so, then this Section should be clarified to include the right to a hearing to the full board of health for parties aggrieved by approval or denial of a permit pursuant to these regulations. The Board should also Nancy Ellis Ice January 6, 2013 11hi Page 7 consider whether it wants the hearing to be a"public hearing"with notice to abutters and legal advertising. If so, those procedures should be outlined in these regulations. We can assist the Board in drafting such language, if it chooses to utilize such a procedure. This concludes my review of the proposed Brewster Animal Regulations. Please do not hesitate to contact me should you have any further questions. Thank you. Sincerely, Sarah A. Turano-Flores Matthew Snell cc: Mary Chaffee, Chair, Board of Health Charles L. Sumner, Town Administrator Board of Health Board of Selectmen 2349322.1 l r4 Nutter Matthew Snell Direct Line: (617)439-2617 Fax: (617)310-9617 E-mail: MSnell@nutter.com nutter.com January 7, 2014 111544-1 Charles Sumner Town Administrator Town of Brewster 2198 Main Street Brewster, MA 02631 Re: Review of Ambulance Lease Dear Charlie: As requested, we have reviewed the materials provided by the Town of Brewster for the acquisition of a new ambulance. We understand that the Town is purchasing a new ambulance with a five year lease/financing plan through Tax-Exempt Leasing Corp. (the "Lessor"). The Town provided the following materials for our review: 1) Master Lease Purchase Agreement and Exhibits A-H; 2) IRS Form 8038-G, Information for Tax-Exempt Governmental Obligations; 3) Invoice for the advance payment for the ambulance; 4) Internal Escrow Letter; and 5) a Word version of Exhibit D, the Opinion of Counsel Letter. Our review of each of these documents is set forth below. To the extent we advise that certain provisions be renegotiated or revised, we would be happy to reach out directly to whoever is negotiating for the Lessor, or provide you with the suggested language so you can reach out to the Lessor directly, much as you did with the golf equipment lease. Please let us know your preference in this regard. 1. Master Lease Purchase Azreement and Exhibits A-H. The Master Lease Purchase Agreement (the"Agreement")contemplates the five-year lease/purchase of a 2014 Lifeline Superliner Ambulance on a Ford F550 4X4 Chassis. The Town will mare five payments of$46,983.59,totaling $234,917.95, to fulfill the$225,000.00 principal payments for the ambulance. Several sections of the Agreement contain language that should be discussed further. First, Section 2.01 of the Lessee Warranties includes warranties in subsection (i) that the "Lessee has never non-appropriated funds under an agreement similar to this Agreement," and under subpart(h)that "Upon request by Lessor, Lessee will provide Lessor with current financial statements, reports, budgets or other relevant fiscal information." As to subsection (f), we would need to confirm that this is true before the Lease can be executed. NUTTER MCCLENNEN & FISH LLP - ATTORNEYS AT LAW Seaport West 155 Seaport Boulevard Boston, Massachusetts 02210-2604 • 617-439-2000 - Fax: 617-310-9000 www.nutter.com Charles Sumner January 7, 2014 Page 2 For subsection (h), we would suggest that this section be struck as the Town should not be required to show all financial records to the Lessor. If some assurance is needed for the loan, the Town could provide the necessary documentation, however, such a broad power to request financial records does not seem appropriate. Section 2.01(i)requires that the Town keep the ambulance free of any hazardous substances as defined in CERCLA. This should be amended to include an exception for any substances required for use of the ambulance, as we would suspect that there could be equipment considered hazardous that may be necessary for the operation of an ambulance. Section.5.01(b and d)requires the Town to include the Lessor as an additional insured. Does the Town normally add vendors as additional insured? As the Lessor is not the manufacturer of the equipment and is assigning the lease to Santander, it seems unnecessary to add it as an additional insured. Exhibit C to the Agreement requires the Town to prepare and execute a Payment Request and Partial Acceptance Certificate. This requires the Town to certify that they received the equipment in satisfactory condition and according to the Agreement and authorizes the disbursement of the escrowed funds to the Lessor by Santander. Obviously, the Town should wait to sign this Exhibit until such time as the equipment has been received in satisfactory condition. Prior to then, the Selectmen should decide which Town official should be responsible for inspecting the equipment and determining it is in satisfactory condition(presumably the Fire Chief). Once identified by the Selectmen, that Town official should be responsible for signing this Exhibit C when appropriate. Exhibit E is a Resolution requiring the Town to allow the lease. As the Lessee will be the Town of Brewster, the Board of Selectmen should vote at one of their meetings to adopt this Resolution, and authorize you to sign on behalf of the Selectmen. You will see where Exhibit E can be tailored to add in the names of the Board of Selectmen and your own name, where appropriate. If you need assistance in this regard, please let us know. Exhibit F is a Bank Qualified Certificate, requiring the Town to certify that it is a"Bank Qualified Issuer." A Bank Qualified Issuer is an issuer that issues less than ten million ($10,000,000) dollars of tax-exempt obligations during the calendar year. Assuming Brewster qualifies as such(and this should be confirmed), the Selectmen can authorize you to sign this form, as well. Exhibit G is an Agreement to Provide Insurance. You will need to fill out this information, confirming proper insurance coverage, before signing the Lease. Exhibit H is a Lessee Certificate that details the funding for the lease payments and confirms—through specifics that need to be added—that sufficient funds will be available through the term of the Lease. You will have to fill in these details prior to signing the Lease. Charles Sumner It January 7, 2014 Page 3 Exhibit I is a Notice of Assignment by Lessor, notifying the Town as Lessee that it will be immediately assigning all of its rights to receive payments under the Lease to Santander Bank of Melville,New York. You will need to sign, on behalf of the Town, in acknowledgement of this assignment and the Selectmen should vote to authorize you to do so. 2. IRS Form 8038-G, Information for Tax-Exemnt Governmental Obligations. This form is a standard IRS form and has been prepared by the Lessor. It appears to be in proper form and needs to be executed by the Town. 3. Invoice for the advance Davment for the ambulance. This is the invoice for the initial payment of$46,983.59. This reflect the amounts in the schedule of payments included at Exhibit B to the Agreement. This payment is due upon execution of the lease. 4. Internal Escrow Letter. The Internal Escrow Letter is for the holding of the monies to be paid for the ambulance. Santander will hold the funds until the time that the Town accepts the ambulance. Santander is entitled to any interest on the escrowed funds as part of its fee for handling the transaction. 5. Opinion of Counsel Letter. The Opinion of Counsel Letter is Exhibit D to the Agreement discussed in Section 1 above. The instructions on this form indicate that the letter should be put on counsel for the Town's letterhead and signed by counsel. Frankly, we do not see why such a letter is necessary. The Vote of the Town Meeting, authorizing the appropriation, the Vote of the Selectmen, adopting the Resolution, and all the other Certifications the Lessor is requiring the Town to sign in this instance more than amply demonstrate the Town's commitment and authority to enter into the lease. Any opinion letter signed by Town Counsel would contain additional assumptions and reservations that the Firm requires, thus diluting a lot of what the form opinion seeks to have confirmed. As such, we recommend advising the Lessee that the Opinion of Counsel is not necessary. If they insist, we could formulate an opinion letter that would satisfy the Firm, however, we presently do not have all the information to support this opinion. We would need copies of the Town Meeting Vote authorizing the appropriation of sufficient funds to cover the lease payments , as well as, copies of the Board of Selectmen Vote, adopting the resolution to enter into the Lease and granting you the authority to sign the lease documents on behalf of the Town. There should be no issue regarding the other aspects of the opinion. Charles Sumner January 7, 2014 Ij Page 4 As stated above,please let us know if you will be addresses these issues with the Lessor as was done with the recent aerifier equipment transaction, or if you would like us to reach out to the Lessor directly. Otherwise, should you have any questions, please do not hesitate to contact either Sarah or me. Thank you, Very truly yours, Matthew Snell Sarah A. Turano-Flores cc: Board of Selectmen - r Cape Liq com Cape Light Compact Tel: (508) 375.6644 • Fax: (508) 882.4136 www.capeIightcompact.orrg POST OFFICE BOX 429 * BARNSTABLE SUPERIOR COURT HOUSE • BARNSTABLE, MASSACHUSETTS 02630 January 10,2013 Mr. Charles Sumner Town Administrator 2198 Main Street Brewster,MA 02631 Dear Mr. Sumner, Attached for your information and dissemination to your Board of Selectmen/Town Council is the Cape Light Compact's monthly Energy Efficiency Report. The Deport reflects the program activity for all of Cape Cod&Martha's Vineyard and breaks out the detail on a town-by-town basis. Below is a summary of the activity in your town for the month of November,2013. To view each of your monthly reports, please,visit our website at wwwc_eli htcom_oact.orj_ and click on Reports. • 183 residents and/or businesses in Brewster participated in the program. * $11.5,217.32 in incentive dollars were distributed to the 183 participants, a 152,332 kWh were saved through implementation of these energy efficicncy measures. a Through November,2013 your town has spent 176.2% of its allocated annual budget. If you have any questions on the attached report,please contact me at (508)375-6636. Sincerely, Margaret T. Downe Assistant County Administrator Enclosure cc: Deane Keuch AQUINNAH BARNSTABLE-BARNSTABLE COUNTY+BOURNE - BREWSTER•CHATHAM•CHILMARK-DENNIS-DUKES COUNTY-f:A$YNAM-EDOARTOWN FALMOUTH HARWICH-MASHPEE-OAK BLUFFS■ORLEANS-PROYINCETOWN*SANDWICH-TI$BURV-TRURO-WELLFLEET-WEST TISBURY YARMOUTH Energy Efficiency Program Activity by Town 12/27/13 8:15 http://www.capelightcompact.org/TownReports.htm Pape 1 of 1 Town Name: Brewster Program Period: 2013 Current Dates: 11/01/13 - 11/30/13 Cumulative Dates: 01/01/13 - 11/30/13 Current Period i Cumulative for Reporting Period Annual Actual Unique Customer Annual Actual Unique Customer Actual% Program kWh Savings Expenditures Accounts kWh Savings Expenditures Accounts Budget of Budget Low-Income New Construction 0 0.00 0 0 0.00 0 0.00 0.0% Low-income Single-Family 3,625 12,056.94 8 47,892 73,989.60 35 59,743.44 123.8% Low-Income Multi-Family 43,252 22,362.90 98 43,252 22,362.90 98 0.00 0.0% LI Subtotal 46,877 34,419.84 106 91,144 96,352.50 133 59,743.44 LI %of Total 30.8% 29.9% 57.9% 13.0% 12.6% 20.5% 16.1% Residential New Construction 0 0.00 0 0 0.00 0 5,729.83 0.0% Residential Multi-Family Retrofit 4,196 1,795.67 4 23,745 12,025.45 18 0.00 0.0% Res Home Energy 24,559 59,051.36 48 239,919 569,898.71 271 216,908.85 262.7% Energy Star HVAC 3,770 3,100.00 4 38,040 36,550.00 77 0.00 0.0°% Energy Star Lighting 525 38.95 2 117,228 5,010.95 6 0.00 0.0% Energy Star Appliance 3,227 1,180.00 14 46,216 14,149.04 123 0.00 0.0% Res Subtotal 36,277 65,165.98 72 465,148 637,634.15 495 222,638.68 Res °/of Total 23.8% 56.6% 39.3% 66.4% 83.3% 76.3% 59.9% C&I New Construction 0 0.00 0 0 0.00 0 0.00 0.0% C&I Govt New Construction 0 0.00 0 0 0.00 0 0.00 0.0% C&I Large Retrofit 0 0.00 0 0 1,724.75 1 0.00 0.0% C&I Govt Large 25,802 5,640.00 2 25,802 5,640.00 2 0.00 0.0% C&I Small Retrofit 19,561 6,701.50 2 25,469 9,679.50 4 60,478.84 16.0% C&I Govt Small 0 0.00 0 2,985 1,150.88 1 28,638.29 4.0% C&I Products&Services 23,815 3,290.00 1 89,536 13,050.00 13 0.00 0.0% C&I Subtotal 69,178 15,631.50 5 143,792 31,245.13 21 89,117.13 C&I %of Total 45.4% 13.6% 2.7% 20.5% 4.1% 3.2% 24.0% Report Total 152,332 115,217.32 183 700,084 765,231.78 649 371,499.25 Budget Comparison 654,718.69 371,499.25 176.2% dwr_eas7_results_by_town<infosys>03/28/11 Costs only include Customer Incentives,Sales,Technical Assistance and Training."All information presented is preliminary and subject to change."`Not all program budgets are allocated by town. Brewster Landfill Project Schedule 01_13_2014 ------------ Task Name (Duration Start (Finish lry_-11 July 21 Februa_ry 1 A_ -- _._ 2/255/27 26 11 25 8/ 2L24 5/26 --- ----- -- --- -- -J--- --- - - --- = - - -i -� 1 ;Brewster Landfill PV Project(1.205 MW DC) 652 days Mon 5/20/13 Thu 12/10/15 2 Sign Agreement with Clean Focus 1 day Mon 5/20/13 Mon 5/20/13 3 Receive Limited NTP from CF 1 day Fri 7/5/13 Fri 7/5/13 l q Send Utility Payment For System Upgrades 1 day Fri 7/5/13 Fri 7/5/13 I ' 1 5 1 Receive Full NTP from Clean Focus 1 day Mon 12/2/13 Mon 12/2/13 6 Final System Design 22 days Mon 7/8/13 Tue 8/6/13 j 7 Structural Design 14 days Mon 7/8/13 Thu 7/25/13 I 8 —� Structural Design-Racking System/Ballasts 14 days Mon 7/8/13 Thu 7/25/13 I 9 Structural Design-Equipment Pads 14 days Mon 7/8/13 Thu 7/25/13 r 10 Electrical Design 14 days Mon 7/8/13 Thu 7/25/13 11 Electrical Design-PV System 14 days Mon 7/8/13 Thu 7/25/13 ` '(E,PE-DC 12 Submit 90%Design Package to CF 0 days Thu 7/25/13 Thu 7/25/13 �'T725 13 j Clean Focus Review of 90%Drawing Package 3 days Fri 7/26/13 Tue 7/30/13 14 Design Review Meeting 1 day Tue 7/30/13 Tue 7/30/13 15 Assemble 100%Design Package 2 days Wed 7/31/13 Thu 8/1/13 16 Submit 100%Design Package for Stamping 1 day Fri 8/2/13 Fri 8/2/13 17 1 Receive Final Stamped Design Package 2 days Mon 8/5/13 Tue 8/6/13 18 Permitting/Approvals 68 days Mon 5/20/13 Fri 8/23/13 19 Permits 13 days Wed 8/7/13 Fri 8/23/13 1 20 Prepare Building Permit Application 2 days Wed 8/7/13 Thu 8/8/13 `'NSE-JDN I Il Page 1 Brewster Landfill Project Schedule 01_13_2014 ID Task Name - - Duration Sta - Finish - - !ry 11 J_ul 21_ February 1 j A� - - - - ---- --- - -I-- - 2/25 5-_27__ 1 8-26 ! 1 25� Z 24 5 26-- -i 21 Submit Building Permit Application 0 days Thu 8/8/13 Thu 8/8/13 �8 — 1 J / -- I I 22 Town Review of Building Permit Application 10 days Fri 8/9/13 Thu 8/22/13 WSE-1DN i 23 Receive Building Permit 1 day Fri 8/23/13 Fri 8/23/13 �SE-JDN 24 Prepare Electrical Permit Application 2 days Wed Thu s/s/13 i NSE 25 Submit Electrical Permit Application 0 days Thu 8/8/13 Thu 8/8/13 A I 26 Town Review of Electrical Permit Application 10 days Fri 8/9/13 Thu 8/22/13 i I 27 Receive Electrical Permit 1 day Fri 8/23/13 Fri 8/23/13 i 28 MA DOER Statement of Qualifications 26 days Mon 5/20/13 Tue 6/25/13 29 Prepare SOQ Request 5 days Mon 5/20/13 Fri 5/24/13 WSE SW 30 Submit SOQ Request 0 days Fri 5/24/13 Fri 5/24/1352 31 DOER Review 21 days Tue 5/28/13 Tue 6/25/13 32 MA DOER Issues SOQ 0 days Tue 6/25/13 Tue 6/25/13 ® 5/25 33 Procure Equipment 138 days Tue 7/23/13 Tue 2/11/14 34 Modules 119 days Tue 7/23/13 Tue 1/14/14 35 Order Modules 5 days Tue 7/23/13 Mon 7/29/13 q CE 36 Module Order Lead Time 109 days Tue 7/30/13 Tue 1/7/14 37 Receive Modules 5 days Wed 1/8/14 Tue 1/14/14 0'ACE CONTRACTOR 38 Inverters 115 days Tue 7/23/13 Wed 1/8/14 39 Order Inverters 20 days Tue 7/23/13 Mon 8/19/13 ACE 40 Inverter Order Lead Time 94 days Tue 8/20/13 Tue 1/7/14 -------- --- ---------------- --- -- ------- -- -- - --- - -- - -- - Page 2 Brewster Landfill Project Schedule 01_13_2014 ID Task NameDuration Start !Finish iry 11 July 21 February 1 __ A -- - -- -- - -- -- -- -- -- -- --— ! - ------ -7/25 i_ 5/?7 8/26 /2A5 E 2/24 j 5/26 41 Receive Inverters 1 day Wed 1/8/14 Wed 1/8/14 C CONTRACTOR ! I ` i 42 ! Transformers 138 days Tue 7/23/13 Tue 2/11/14 I 43 Order Transformers 20 days Tue 7/23/13 Mon 8/19/13 ACE 44 Transformers Order Lead Time 116 days Tue 8/20/13 Fri 2/7/14 - 45 Receive Transformers 2 days Mon 2/10/14 Tue 2/11/14 ACE CONTRACTOR 46 Switchgear 138 days Tue 7/23/13 Tue 2/11/14 47 Order Switchgear 20 days Tue 7/23/13 Mon 8/19/13 I ACE qg Switchgear Order Lead Time 116 days Tue 8/20/13 Fri 2/7/14 I 49 Receive Switchgear 2 days Mon 2/10/14 Tue 2/11/14 a ACE CONTRACTOR 50 Racking Ballasts 129 days Tue 7/23/13 Wed 1/29/14 ..� 51 Order Ballasts 4 days Tue 7/23/13 Fri 7/26/13 AI;E 52 Ballasts Order Lead Time 115 days Mon 7/29/13 Tue 1/14/14 53 Receive Ballasts 10 days Wed 1/15/14 Wed 1/29/14 j ACE CONTRACTOR 54 j Data Acquisition System(DAS) 112 days Thu 8/22/13 Wed 2/5/14 i 55 ! Order DAS 5 days Thu 8/22/13 Wed 8/28/13 ACE 56 DAS Order Lead Time 105 days Thu 8/29/13 Mon 2/3/14 I i 57 Receive DAS 2 days Tue 2/4/14 Wed 2/5/14 ACE CONTRACTOR 58 Racking System 128 days Tue 7/23/13 Tue 1/28/14 i 59 JI Order Racking System 10 days Tue 7/23/13 Mon 8/5/13 ACE 60 Racking System Order Lead Time 113 days Tue 8/6/13 Tue 1/21/14 Page 3 Brewster Landfill Project Schedule 01_13_2014 ID Task Name Duration (Start Finish r 11 -� _ !July 21 �Februaryl A -- -- - _.___-- ____ _2/25 5/27 1 8_/26 11(25 2/24 5/26_____i 61 Receive Racking System 5 days - Wed 1/22/14 Tue 1/28/14 ACE CONTRACTOR 62 Construction 80 days Tue 12/24/13 Fri 4/18/14 63 Mobilization 2 days Tue 12/24/13 Thu 12/26/13 a l XF CONTRACTOR 64 Install Erosion&Settlement Control 2 days Fri 12/27/13 Mon 12/30/13 b ACE CONTRACTOR 65 PV Array Construction 64 days Fri 12/27/13 Mon 3/31/14 66 Site Survey/Layout 3 days Fri 12/27/13 Tue 12/31/13 GE CONTRACTOR 67 Pour Equipment Pads 10 days Thu 1/16/14 Thu 1/30/14 -_ XCE COFJTRACTOR 68 Area A(750 kW) 39 days Thu 1/2/14 Thu 2/27/14 69 Prep Ground for Ballasts 2 days Thu 1/2/14 Fri 1/3/14 ASE CONTRACTOR 70 Lay Ballasts 15 days Wed 1/15/14 Wed 2/5/14 ,CE CONTRACTOR 71 Racking System Installation 15 days Fri 1/24/14 Thu 2/13/14 ACE CONTRACTOR 72 Module Installation 12 days Fri 1/31/14 Tue 2/18/14 ACE CONTRACTOR 73 DC Wiring 14 days Tue 2/4/14 Mon 2/24/14 _ 74 Inverter Installation 1 day Fri 2/14/14 Fri 2/14/14 —DACE CNTRACTOR 75 Transformer/Switchgear Installation 1 day Fri 2/14/14 Fri 2/14/14 e *CE CONTRACTOR AC Wiring 6 days Thu 2/20/14 Thu 2/27/14 76 9 Y ACE CONTRACTOR 77- f: Install Equipment Rack 6 days Tue 2/4/14 Tue 2/11/14 Install&Wire DAS 6 days Wed 2/12/14 Thu 2/20/14 78 Y ACE CONTRACTOR 79 Area B(833 kW) 49 days Mon 1/6/14 Mon 3/17/14 80 Prep Ground for Ballasts 3 days Mon 1/6/14 Wed 1/8/14 7 � AC �NTIACTOR I II Page 4 Brewster Landfill Project Schedule 01_13_2014 ID Task Name Duration Start IFinish try-11 July 21 February 1_ A -- - -- -- _..._. ----- -- - — ----- ) ----- --- --2(25 -�'7- ' 8(26 11(25 2/'_4 ---X26--1 81 Lay Ballasts 16 days Thu 2%6/14 Fri 2/28/14 ACE CONTRACTOR 82 Racking System Installation 16 days Fri 2/14/14 Mon 3/10/14 ACI-'CONTRACTOR 83 Module Installation 13 days Wed 2/19/14 Fri 3/7/14 ACE CONTRACTOR gq DC Wiring 15 days Tue 2/25/14 Mon 3/17/14 85 Inverter Installation 1 day Tue 2/18/14 Tue 2/18/14 CE CONTRACTOR 86 Transformer/Switchgear Installation 1 day Tue 2/18/14 Tue 2/18/14 ACE CONTRACTOR -- 1 g7 AC Wiring 8 days Fri 2/28/14 Tue 3/11/14 AC=CONTRACTOR 88 Install Equipment Rack 7 days Wed 2/12/14 Fri 2/21/14 89 Install&Wire DAS 7 days Fri 2/21/14 Mon 3/3/14 ACE CONTRACTOR 90 Medium Voltage 26 days Mon 2/24/14 Mon 3/31/14 91 MV Trenching,Conduit and Wiring(Area A to Area B) 12 days Mon 2/24/14 Tue 3/11/14 j 92 MV Trenching Conduit and Wiring(Area B to Switch Ge 7 days Wed 3/12/14 Thu 3/20/14 j 93 MV Trenching Conduit and Wiring(Switch Gear to Utility 7 days Fri 3/21/14 Mon 3/31/14 94 Mechanical Completion 0 days Mon 3/31/14 Mon 3/31/14 +K3/31 95 Final Building Department Approval 3 days Tue 4/1/14 Thu 4/3/14 96 NSTAR Witness Testing 2 days Fri 4/4/14 Mon 4/7/14 97 NSTAR Provides Permission to Interconnect 1 day Tue 4/8/14 Tue 4/8/14 98 Plant Commissioning&Testing 3 days Wed 4/9/14 Fri 4/11/14 ACE CONTRACTC _ i I gg PV System Substantially Complete 0 days Fri 4/11/14 Fri 4/11/14 4/11 100 i Punch List Completion ...---- -- ----- - - ---5 days_ ------Mon 4/14/14...- Fri 4/18/14---- -I - - - - --- --- --- - --_ _-- - ---- - �- -- - -- --� ACE CONTRACT, Page 5 Brewster Landfill Project Schedule 01_13_2014 ID Task Name iDuration istart iFinish try 11 j July21_ February 1 A -- ----- --- ---I-- ---- - --- --- -- — 2/25 -I--5127 8/26 ! 1115- -' 2124 5/26 -i 101 Final Acceptance&Completion 0 days Fri 4/18/14 Fri 4/18/14 4/18 102 NSTAR Upgrades 140 days Mon 7/8/13 Wed 1/29/14 j 103 ! NSTAR Offsite Upgrades&Interconnection Work"" 140 days Mon 7/8/13 Wed 1/29/14 Page 6