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
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-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
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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!
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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
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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
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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
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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