TR-2016-57 AFD AMBULANCE LEASE 7ra4
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TR-2016-57
A RESOLUTION AUTHORIZING THE APPROPRIATION OF FUNDS TO FINANCE
THE LEASE TO PURCHASE AGREEMENT BY THE CITY OF AGAWAM FIRE
DEPARTMENT TO PURCHASE A 2016 CUSTOM RED TITAN AMBULANCE.
(SPONSERED BY MAYOR RICHARD A COHEN)
WHEREAS,The City of Agawam desires to enter into a purchasing contract that is subject to a
three year lease-purchase agreement at the discretion of the City's Treasurer, with Tax Exempt
Leasing Corporation,to purchase a 2016 Custom Ambulance from New England Fire Equipment
&Apparatus Corporation;and
WHEREAS,The City of Agawam's Treasurer has determined the annual payment with a
2.340%interest rate is the preferable way to finance the lease-purchase of the 2016 Custom
Ambulance at a cost of$79,030.93 per year for three years with an amount totaling$237,092.79;
and
WHEREAS,Pursuant to M.G.L. c. 44 §21 C The City of Agawam may,by a two-thirds vote of
the City Council,if recommended by the Mayor,enter into a lease-purchase financing agreement
to acquire equipment or improve a capital asset that may be financed by the issuance of debt
under this chapter or otherwise authorized by law, for a term up to the useful life of the property
to be procured as determined by the Mayor; and
WHEREAS, Pursuant to M.G.L. c.44 §21C any lease purchase finance agreement under this
section shall be considered a binding obligation of the City of Agawam as if it were a debt
authorization under this chapter,provided an appropriation available for the purpose has been
made in the first fiscal year in which the lease becomes effective; and
WHEREAS,Pursuant to M.G.L. c. 44 §21C the Mayor recommends The City of Agawam enter
into this lease-purchase financing agreement with Tax Exempt Leasing Corporation to purchase
the 2016 Custom Ambulance from New England Fire Equipment&Apparatus Corporation; and
WHEREAS, It is in the best interests of the City of Agawam to appropriate funds to enter into
the lease-purchase agreement to finance the 2016 Custom Ambulance;
NOW THEREFORE,BE IT RESOLVED BY THE AGAWAM CITY COUNCIL,that the
Agawam City Council hereby approves entering into the lease-purchase agreement with Tax
Exempt Leasing Corporation and appropriates $79,030.93 per year for this and the next two
fiscal years,from AFD Ambulance Account Number 22822-58500 for a total of$237,092.79 to
finance the lease-purchase of the 2016 Custom Ambulance.
oya Ice. -'1Ut
DATED THIS AY OF 016. 0J.,COW�r
&
PER ORDER OF THE AGAWAM CITY COUNCIL.
" ec,4�
JAMES . CIC , MY CO CIL PRESIDENT
APPROVED AS TO FORM AND LEGALITY
PATRICK TONEY,CITY SOLICITOR
MAYORAL ACTION
Received this O"O L day of Ui 6 from Council Clerk.
Signed by Council President this '' `'" day of016.
APPROVAL OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agaw Charter, as
ended, I h y approve the passage of the above legislation on this ���y of
r 2016.
-zg��� d::�� �—' —
Richard A. Cohen,Mayor
DISAPPROVAL OF LEGISLATION
By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as
amended, I hereby veto the passage of the above legislation on this day of
,2016 for the following reason(s):
Richard A. Cohen,Mayor
RETURN OF LEGISLATION TO COUNCIL CLERK
Returned to Council Clerk this a +I-` day of ,2016.
TR-2016-57
A RESOLUTION AUTHORIZING THE APPROPRIATION OF FUNDS TO FINANCE
THE LEASE TO PURCHASE AGREEMENT BY THE CITY OF AGAWAM FIRE
DEPARTMENT TO PURCHASE A 2016 CUSTOM RED TITAN AMBULANCE.
(SPONSERED BY MAYOR RICHARD A COHEN)
WHEREAS, The City of Agawam desires to enter into a purchasing contract that is subject to a
three year lease-purchase agreement at the discretion of the City's Treasurer, with Tax Exempt
Leasing Corporation, to purchase a 2016 Custom Ambulance from New England Fire Equipment
&Apparatus Corporation; and
WHEREAS, The City of Agawam's Treasurer has determined the annual payment with a
2.340% interest rate is the preferable way to finance the lease-purchase of the 2016 Custom
Ambulance at a cost of$79,030.93 per year for three years with an amount totaling $237,092.79;
and
WHEREAS, Pursuant to M.G.L. c. 44 §21 C The City of Agawam may, by a two-thirds vote of
the City Council, if recommended by the Mayor, enter into a lease-purchase financing agreement
to acquire equipment or improve a capital asset that may be financed by the issuance of debt
under this chapter or otherwise authorized by law, for a term up to the useful life of the property
to be procured as determined by the Mayor; and
WHEREAS, Pursuant to M.G.L. c. 44 §21 C any lease purchase finance agreement under this
section shall be considered a binding obligation of the City of Agawam as if it were a debt
authorization under this chapter, provided an appropriation available for the purpose has been
made in the first fiscal year in which the lease becomes effective; and
WHEREAS, Pursuant to M.G.L. c. 44 §21 C the Mayor recommends The City of Agawam enter
into this lease-purchase financing agreement with Tax Exempt Leasing Corporation to purchase
the 2016 Custom Ambulance from New England Fire Equipment & Apparatus Corporation; and
WHEREAS, It is in the best interests of the City of Agawam to appropriate funds to enter into
the lease-purchase agreement to finance the 2016 Custom Ambulance;
NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM CITY COUNCIL, that the
Agawam City Council hereby approves entering into the lease-purchase agreement with Tax
Exempt Leasing Corporation and appropriates $79,030.93 per year for this and the next two
fiscal years, from AFD Ambulance Account Number 22822-58500 for a total of$237,092.79 to
finance the lease-purchase of the 2016 Custom Ambulance.
DATED THIS DAY OF 12016.
PER ORDER OF THE AGAWAM CITY COUNCIL.
JAMES P. CICHETTI, CITY COUNCIL PRESIDENT,
APPROVED AS TO FORM AND LEGALITY
- 14q�j' '�-.
PATRICK TONEY, CITY SOLICITOR
Patrick Toney
From: Stephen Buoniconti
Sent: Monday, August 29, 2016 6:19 PM
To: Laurel Placzek
Cc: Patrick Toney
Subject: Re:Tax-Exempt Leasing Corp. (sample documents attached)
Laurel- I am away for a few days. I forwarded your email to pat.
Steve
Sent from my Whone
On Aug 29, 2016,at 2:52 PM, Laurel Placzek<LPlaczek@apawam.ma.us>wrote:
Hi Steve,
I am forwarded sample documents for your review.
Here are the terms:
Tax Exempt leasing Corp
Quarterly Semiannual Annual
Interest Rate 2.340% 2.340% 2.340%
Fees $ - $ - $ -
Payment
Amount $ 19,934.89 $ 39,750.52 $ 79,030.93
Total Cost $239,218.68 $238,503.12 $237,092.79
1 believe we will go with annual, in advance.
2W"d
Laurel A. Placzek, CPA
Treasurer-Collector
Town of Agawam
36 Main Street
Agawam, MA 01001-1801
413-786-0400 X 8712
fax: 413-726-2826
From: Curt Schroeder [mailto:curts(&taxexemptleasing.com]
Sent: Monday, August 29, 2016 12:45 PM
To: Laurel Placzek
Subject: Tax-Exempt Leasing Corp. (sample documents attached)
Laurel,
Attached are the Sample Documents as requested.
Kind Regards,
Curt Schroeder
Account Executive
Tax-Exempt Leasing Corp.
(P) 847-247-0771
(F) 847-247-0772
203 E. Park Avenue
Libertyville, IL 60048
For additional information on Tax-Exempt Leasing Corp.,
please visit www.taxexemptleasina.com.
Master Lease Sample SB.PDF>
2
MASTER LEASE PURCHASE AGREEMENT
Lessee Lessor
<Company> cLessor Name>
<Address 1> cAddress 2> cLessor Address 1>
<City>, <State><ZIP Code> cLessor City>, <Lessor State> cLessor Zip>
Dated as of<Commencement Date>
This Master Lease Purchase Agreement dated as of the date listed above is between Lessor and Lessee listed directly above.Lessor desires from time to
time to lease the Equipment described in Equipment Schedules (each a "Schedule")to be attached hereto to Lessee and Lessee desires to lease such
Equipment from Lessor subject to the terms and conditions of this Agreement,which are set forth below,and the applicable Schedule.
I. Definitions:
Section 1,01. Definitions.The following terms will have the meanings indicated below unless the context clearly requires otherwise:
"Agreement"means this Master Lease Purchase Agreement.
"Budget Year"means the Lessee's fiscal year.
'Commencement Date"is the date when Lessee's obligation to pay rent begins.
"Equipment"means the items of Equipment listed on Exhibit"A"to each Schedule and all replacements,restorations,modifications and improvements.
`Lease"means this Agreement and an individual Schedule hereto,which shall collectively constitute the terms and conditions applicable to the lease of the
Equipment subject thereto.
"Lessee"means the entity listed above as Lessee and which is leasing the Equipment from Lessor under the provisions of this Agreement and a Schedule.
'Lessor"means the entity originally listed above as Lessor or any of its assignees.
"Lease Term'means the Original Term and all Renewal Terms applicable to a Lease. r '
"Original Term"means the period from The Commencement Date until the end o1 the Budget year of Lessee.
"Renewal Term"means the annual term which begins at the end of the Original Term and which fs simultaneous with Lessee's Budget Year,
'Rental Payments" means the payments Lessee is required to make under thieAgreement as set forth on Exhibit "B'to each Schedule made subject
thereto.
'Schedule'means a schedule substantially in the form attached hereto and all exhibits Iherelo pursdani to which Lessor and Lessee agree to the lease of
the Equipment described therein and which together with the terms of the Agreement applicable thereto constitutes an individual Lease.
"State"means the slate in which Lessee is located.
it. Lessee Warranties
,l
Se tion� 2.01. With respscl to each Lease.Lessee renresgnts,warrants an,•ocovenants as follows for the benefit of Lessor its assignees:
(a) Lessee is the State or a political subdivision of the State within the in6aning of Section•103 of the Internal Revenue Code of 1986,as amended (the
'Code')or a constituted authority authorized to issue obligations on behalf of the Slate or political subdivision of the State within the meaning of the
treasury regulations promulgated under the Code.
(b) Lessee is authorized under the Constitution and laws'of the State'to enter into Ihis Agreement and each Schedule,and has used such authority to
properly execute and deliver this Agreement and each Sbhedule. Lessee has followed all proper procedures of its governing body in executing this
Agreement and each Schedule. The Officer of Lessee executing tfiis"Agreement and each Schedule has the authority to execute and deliver this
Agreement and such Schedule. This Agreement and each Schedule'constitute a legal, valid, binding and enforceable obligation of the Lessee in
accordance with their terms. `l -_ N.'7
(c) Lessee has complied with all statutory laws and regulations that may be applicable to the execution of this Agreement and each Schedule.
(d) Lessee shall use the Equipment only fo;,essenfal,,tradilionai government purposes.
(a) Should the Lessee cease to be an issuer.of tax exempt obligations or i1 the obligation of Lessee created under any Lease ceases to be a tax exempt
obligation for any reason,-,then Lessee s6iill be required-;orpay additional sums to the Lessor or its assignees so as to bring the after tax yield on any
Lease to the some level as'Ihe Lessor or its assignees would attain if the transaction continued to be tax-exempt.
(f) Lessee has never non'appropriated funds urader an agreement similar to this Agreement,
(g) Lessee will submit to the Secretary of the Treasury an information reporting statement as required by the Code with respect to each Lease.
(h) Upon request by Lessor,Lessee wili,provide Lessor with current financial statements,reports,budgets or other relevant fiscal information.
(i) Lessee shall retain the;EZiuipri.int tree-of any hazardous substances as defined in the Comprehensive Environmental Response, Compensation and
Liability Act,42 U.S.C.9661 e1.seq.as amended and supplemented.
(j) Lessee presently intends to continue each Lease for the Original Term and all Renewal Terms as set forth on Exhibit "B"to the Schedule relating
thereto. The official of Lessee responsible for budget preparation will include in the budget request for each Budget Year the Rental Payments to
become due in such Budget year,and will use all reasonable and lawful means available to secure the appropriation of money for such Budget Year
sufficient to pay the Rental Payments coming due therein. Lessee reasonably believes that moneys can and will lawfully be appropriated and made
available for this purpose.
Section 2.02. Escrow Agreement. In the event both Lessor and Lessee mutually agree to utilize an escrow account, then immediately following the
execution and delivery of any Schedule, Lessor and Lessee agree to execute and deliver and to cause an escrow agent to execute and deliver an escrow
agreement. Such Lease shall take effect only upon execution and delivery of the escrow agreement by the parties thereto. Lessor shall deposit or cause to
be deposited with the escrow agent for credit to an equipment acquisition fund the sum specified in such Schedule which shall be held, invested and
disbursed in accordance with the escrow agreement.
Iii. Acquisition of Equipment,Rental Payments and The Purchase Option Price
Section 3_01. Acquisition: Lessee shall advise Lessor of its desire to lease Equipment and a1 the desired lease terms. Upon agreement by Lessor and
Lessee as to the lease of such Equipment and such terms, Lessee shall be solely responsible for the ordering of the Equipment and the delivery and
installation thereof. Lessor shall furnish to Lessee a Schedule relating to such Equipment,which shall become effective upon the execution and delivery of
such Schedule, all documents contemplated hereby and thereby with respect to such Schedule, and the earlier of Lessee's written acceptance of such
Equipment or the deposit into escrow of moneys to pay for such Equipment as provided in Section 2.02. Nothing herein shall obligate Lessor to lease any
Equipment to Lessee until Lessor shall have concurred in writing to the lease of such Equipment.
Section 3.02. Rental Payment . lessee shall promptly pay Rental Payments under each Schedule,from any and all legally available funds, exclusively to
Lessor or its assignees, in lawful money of the United States of America, The Rental Payments shall be sent to the location specified by the Lessor or its
assignees.The Rental Payments shall constitute a current expense of the Lessee and shall not constitute an indebtedness of the Lessee. Lessor shall have
the option to charge interest at the highest lawful rate an any Rental Payment received later than the due date.The Rental Payments will be payable without
notice or demand.
Section 3.03. Rental Payments Unconditional. Except as provided under Section 4.01,THE OBLIGATIONS OF LESSEE TO MAKE RENTAL PAYMENTS
AND TO PERFORM AND OBSERVE THE OTHER COVENANTS CONTAINED IN THIS AGREEMENT SHALL BE ABSOLUTE AND UNCONDITIONAL IN
ALL EVENTS WITHOUT ABATEMENT,DIMINUTION,DEDUCTION,SET-OFF OR DEFENSE.
Section 3.04. Purchase Option Price.With respect to each Schedule, upon 30 days written notice, Lessee shall have the option to pay, in addition to any
Rental Payment due thereunder,the corresponding Purchase Option Price which is listed on the same line on Exhibit B to such Schedule.if Lessee chooses
this option and pays the Purchase Option Price to Lessor thentessor will transfer any and all of its rights,title and interest in the Equipment subject to such
Lease to Lessee.
Section 3.05. Lease Term.The Lease Term of each Lease shall be the Original Term and all Renewal Terms thereunder until all the Rental Payments due
thereunder are paid as set forth in the applicable Schedule except as provided under Section 4.01 and Section 9.01 below. If,after the end of the budgeting
process which occurs at the end of the Original Term or any Renewal Term, Lessee has not terminated a Lease pursuant to Section 4.01 hereof then the
Lease Term for such Lease shall be extended into the next Renewal Term and the Lessee shall be obligated to make the Rental Payments that come due
during such Renewal Term,
Section 3.06. Disclaimer of Warranties. LESSOR MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE
VALUE, DESIGN, CONDITION, MERCHANTABILITY,AND FITNESS FOR PARTICULAR PURPOSE OR ANY OTHER WARRANTY WITH RESPECT TO
THE EQUIPMENT.LESSOR SHALL NOT BE LIABLE FOR ANY INCIDENTAL, INDIRECT,SPECIAL OR CONSEQUENTIAL DAMAGE ARISING OUT OF
THE INSTALLATION,OPERATION,POSSESSION,STORAGE OR USE OF THE EQUIPMENT BY LESSEE,
IV. Non-Approprietlon
Section 4,01, Non-Aoproorialion. if insufficient funds are available in Lessee's budget for the next Budget Year to make the Rental Payments for the next
Renewal Term under any Lease,then Lessee shall have the option to non-appropriate the funds to pay the Rental Payments for the next Renewal Term with
respect to such Lease. Lack of a sufficient appropriation shall be evidenced by the passage of an ordinance at resolution by the governing body of Lessee
specifically prohibiting Lessee from performing its obligations under such Lease for a designated Budget Year and all subsequent Budget Years.It Lessee
chooses this option,then all obligations of the Lessee under such Lease regarding Rental Payments for all remaining Renewal Terms shall be terminated at
the end of the then currant Original Term or Renewal Term without penally or liability to the Lessee of any kind provided that if Lessee has not delivered
possession of the Equipment subject to such Lease to Lessor as provided herein and conveyed to'Lessor or released its interest in such Equipment by the
end of the Iasi Budget Year for which Rental Payments were paid, the termination shall nevertheless be efiedve but Lessee shall be responsible for the
payment of damages in an amount equal to the amount of the Rental Payments thereafter coming due.uAder Exhibit "B"to the Schedule for such Lease
which are attributable to the number of days after such Budget Year during which Lessee fails to lake such actions and for any other lass suffered by Lessor
as a result of Lessee's failure to take such actions as required. Lessee shall immediately notify the Lessor as soon as the decision to non-appropriate is
made. ff such non-appropriation occurs, then Lessee shall deliver the Equipment to Lessor or to a location designated by Lessor at Lessee's expense.
Lessee shall be liable for all damage to the Equipment other than normal wear and fear. II Lessee fails to deliver such Equipment to Lessor,then Lessor
may enter the premises where such Equipment is located and take possession of the Equiprtient and charge Lessee for costs incurred.
V. Insurance,Damage,Insufficiency of Proceeds;Lessee Negligence '
Section 5.01. Insurance. Lessee shall maintain both casualty insurance'and liability insurance at its own expense with respect to the Equipment. Lessee
shall be solely responsible for selecting the insurer(s) and for rhaking all'premiumlpayments and ensuring that all policies are continuously kept in effect
during the term of any Lease. Lessee shall provide Lessor with a Certificate of Insurance, which lists the Lessor and/or assigns as a loss payee and an
additional insured on the policies with respect to the Equipment.-
(a) Lessee shall insure the Equipment against any loss,or damage by fire and all other risks covered by the standard extended coverage
endorsement then in use in the State and any other Hiks reasonably required by Lessor in an amount at least equal to the then applicable
Purchase Option Price of the Equipment:Alternatively,Lessee may insure the Equipment under a blanket insurance policy or policies.
(b) The liability insurance shall insure Lessor from liability and property damage in any form and amount satisfactory to Lessor.
(c) Provided that,with Lessor's prior written consent,Lessee may self-insure against the risks described in (a)and (b)above. Lessee shall furnish
Lessor evidence of such self-insuranca coverage throughout each Lease Term. Lessee shall not materially modify or cancel such self-insurance
coverage without'first giving written notice thereof to'Lessor at lease 10 days in advance of such cancellation or modification.
(d) All insurance policies issued or affected by this Section shall be so written or endorsed such that the Lessor and its assignees are named
additional insured and loss payees and that all losses are payable to Lessee and Lessor or its assignees as their interests may appear. Each
policy issued or-affected;by-.ihis;Section-shall contain a provision that the insurance company shall not cancel or materially modify the policy
without first giving'thirfy'30 days advance notice to Lessor or its assignees.Lessee shall furnish to Lessor certificates evidencing such coverage
throughout each Lease Term.
Section 5.02,Damage to or Destruction of Equipment. Lessee assumes the risk of loss or damage to the Equipment.If the Equipment or any portion thereof
is lost,stolen, damaged, or destroyed by fire or other casualty, Lessee will immediately report all such losses to all possible insurers and take the proper
procedures to attain all insurance pioceeds. At the option of Lessor, Lessee shall either (1) apply the Net Proceeds to replace, repair or restore the
Equipment or (2)apply the Net Proceeds to the applicable Purchase Option Price. For purposes of this Section and Section 5.03,the term Net Proceeds
shall mean the amount of insurance proceeds collected from all applicable insurance policies after deducting all expenses incurred in the collection thereof.
Section 5.03.insufficiency of Net Proceeds. If there are no Net Proceeds for whatever reason or if the Net Proceeds are insufficient to pay in full the cost of
any replacement, repair, restoration, modification or improvement of the Equipment, then Lessee shall, at the option of Lessor, either complete such
replacement, repair, restoration, modification or improvement and pay any costs thereof in excess of the amount of the Net Proceeds or apply the Net
Proceeds to the Purchase Option Price and pay the deficiency,if any,to the Lessor.
Section 5.04.Lessee Negligence. Lessee assumes all risks and liabilities,whether or not covered by insurance,for loss or damage to the Equipment and
for injury to or death of any person or damage to any property whether such injury or death be with respect to agents or employees of Lessee or of third
parties, and whether such property damage be to Lessee's property or the property of others including, without limitation, liabilities for loss or damage
related to the release or threatened release of hazardous substances under the Comprehensive Environmental Response,Compensation and Liability Act,
the Resource Conservation and Recovery Act or similar or successor law or any state or local equivalent now existing or hereinafter enacted which in any
manner arise out of or are incident to any possession, use,operation,condition or storage of any Equipment by Lessee which is proximately caused by the
negligent conduct of Lessee,its officers,employees and agents. Lessee hereby assumes responsibility for and agrees to reimburse Lessor for all liabilities,
obligations, losses,damages, penalties,claims, actions,costs and expenses including reasonable attorneys'fees of whatsoever kind and nature,imposed
on,incurred by or asserted against Lessor that in any way relate to or arise out of a claim,suit or proceeding,based in whale or in part upon the negligent
conduct of Lessee,its officers,employees and agents,to the maximum extent permitted by law.
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VI. Title and Security Interest
Section 6.01.Title.Title to the Equipment shall vest in Lessee when Lessee acquires and accepts the Equipment.Title to the Equipment subject to a Lease
will automatically transfer to the Lessor in the event Lessee non-appropriates under Section 4.01 with respect to such Lease or in the event Lessee defaults
under Section.9.01 with respect to such Lease.In either of such events, Lessee shall execute and deliver to Lessor such documents as Lessor may request
to evidence the passage of legal title to the Equipment subject to such Lease to Lessor.
Section 6.02. Securit Inters t. To secure the payment of all Lessee's obligations under each Lease, Lessee hereby grants to Lessor a security interest
under the Uniform Commercial Code constituting a first lien on the Equipment described more fully on Exhibit 'A"to each Schedule.The security interest
established by this section includes not only all additions, attachments,repairs and replacements to the Equipment but also all proceeds therefrom. Lessee
agrees that Lessor or its assignee may execute such additional documents including financing statements,affidavits,notices, and similar instruments,for
and on behalf of Lessee which Lessor deems necessary or appropriate to protect Lessor's interest in the Equipment and in this Agreement and each Lease.
Lessee authorizes Lessor to record such documentation as necessary for Lessor to perfect its security interest.
VII. Assignment
Section 7.01-Assi nmen by Lessor.All of Lessor's rights,title and/or interest in and to each Lease may be assigned and reassigned in whole or in part to
one or more assignees or sub-assignees (including a registered owner for lease participation certificates) by Lessor at any time without the consent of
Lessee.No such assignment shall be effective as against Lessee until the assignor shall have filed with Lessee written notice of assignment identifying the
assignee. Lessee shall pay all Rental Payments due under each Lease to or at the direction of Lessor or the assignee named in the notice of assignment.
Lessee shall keep a complete and accurate record of all such assignments. ,.
Section 7.02.Assignment by Lessee.None of Lessee's right,title and interest under this Agreement,each Lease and in the Equipment may be assigned by
Lessee unless Lessor approves of such assignment in writing before such assignment occurs and only after Lessee first obtains an opinion from nationally
recognized counsel stating that such assignment will not jeopardize the tax-exempt status of the obligation.
Vill. Maintenance of Equipment
Section 8.01.Lessee shall keep the Equipment in good repair and working order. Lessor shall have no obligation to inspect,test,service,maintain,repair or
make improvements or additions to the Equipment under any circumstances.Lessee will be liable for all damage to the Equipment,other than normal wear
and fear, caused by Lessee, its employees or its agents. Lessee shall pay for and obtain all permits, licenses and taxes necessary for the installation,
operation, possession,storage or use of the Equipment. If the Equipment includes any titled vehicles, then Lessee is responsible for obtaining such titles
from the State and also for ensuring that Lessor is listed as first lien holder on all of the titles. Lessee shall not use the Equipment to haul, convey or
transport hazardous waste as defined in the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et. seq. Lessee shall not during the term of this
Agreement create, incur or assume any levies, liens or encumbrances of any kind with respect to the Equipment except those created by this Agreement.
The Equipment is and shall at all times be and remain personal property. Lessee shall allow Lessor to examine and inspect the Equipment at all reasonable
times.
IX. Default
Section 9.01.Events of Default defined.The following events shall constitute an'Event of Default'with respect to a Lease:
(a) Failure by Lessee to pay any Rental Payment listed on Exhibit'B"to the Schedule for fifteen 15 days after such payment is due according to the
Payment Date listed an Exhibit'B".
(b) Failure to pay any other payment required to be paid under this Agreement and the Schedule at the lime specified herein and therein and a
continuation of said failure for a period of fifteen 15 days afteT.written notice by!_essor that such payment must be made. If Lessee continues to
fail to pay any payment after such period,-then Lessor may, but will nbi be,obligated to,make such payments and charge Lessee for all costs
incurred plus interest at the highest lawful rate. t - IL
(c) Failure by Lessee to observe and perform any warranty, covenant,condition, promise or duly under this Agreement or the Schedule for a period
of thirty 30 days after written notice specifying such failure is given to Lessee by Lessor,unless Lessor agrees in writing to an extension of time.
Lessor will not unreasonably withhold its consent to an,wdension of time if corrective action is instituted by Lessee.Subsection(c)does not apply
to Rental Payments and other payments discussed above.
(d) Any statement,material omission;:i•bpresentation or warranty made by Lessee in or pursuant to this Agreement or the Schedule which proves to
be false,incorrect or misleading on the dais when made regardless of Lessee's intent and which materially adversely affects the rights or security
of Lessor under this Agreement or the applicaSle'Schedule.
(a) Any provision of this Agreement or the Schedule wl iEh ceases to be valid for whatever reason and the loss of such provision, would materially
adversely affect,the iighis or security of Lessor.
(1) Lessee admits,in writing its inability to pay its obligations.Lessee defaults on one or more of its other obligations. Lessee applies or consents to
the appointment at a receiver or a custodian to manage its affairs.Lessee makes a general assignment for the benefit of creditors.
Section 9.02. Remedies on Defauh..-Whenever any Event of Default exists with respect to any Lease, Lessor shall have the right 10 take one or any
combination of She following remedial slepi:
(a) With or without terminating the Lease,Lessor may declare all Rental Payments and other amounts payable by Lessee thereunder to the end of
the then current Budget Year to be immediately due and payable.
(b) With or without terminating the Lease,Lessor may require Lessee at Lessee's expense to redeliver any or all of the Equipment subject thereto to
Lessor to a location specified by Lessor.Such delivery shall take place with in 15 days after the event of default occurs. 11 Lessee tails to deliver
such Equipment,Lessor may enter the premises where such Equipment is located and take possession of such Equipment and charge Lessee for
cost incurred. Notwithstanding that Lessor has taken possession of such Equipment. Lessee shall still be obligated to pay the remaining Rental
Payments under the Lease due up until the end of the then current Original Term or Renewal Term. Lessee will be liable for any damage to such
Equipment caused by Lessee or its employees or agents.
(c) • Lessor may take whatever action at law or in equity that may appear necessary or desirable to enforce its rights.
Sec(ion 9.03. No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be
cumulative and shall be in addition to every other remedy given under the Lease now or hereafter existing at law or in equity. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or shall be construed to be a waiver thereof,
X. Miscellaneous
Section 10.01. Notices. All notices shall be sufficiently given and shall be deemed given when delivered or mailed by registered mail,postage prepaid,to
the parties at their respective places of business as first set forth herein or as the parties shall designate hereafter in writing.
Section 10.0g. Binding Effect. This Agreement and each Schedule shall inure to the benefit of and shall be binding upon Lessee and Lessor and their
respective successors and assigns.
Section 10.03. Severability. In the event any provision of this Agreement or any Lease shall be held invalid or unenforceable by any court of competent
jurisdiction,such holding shall not invalidate or render unenforceable any other provision hereof.
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Section 10.04. Amendments, Addenda. Chances or Modifications. This Agreement and each Lease may be amended, added to,changed or modified by
written agreement duly executed by lessor and Lessee.
Section 10.05, Execution in Counterparts.This Agreement and each Lease may be simultaneously executed in several counterparts,each of which shall be
an original and all of which shall constitute but one and the same instrument.
Section 10.06.Captions.The captions or headings in this Agreement do nol define,limit or describe the scope or intent of any provisions or sections of this
Agreement.
Section 10.07. Entire Writino. This Agreement and all Schedules executed hereunder constitute the entire writing between Lessor and Lessee. No waiver,
consent,modification or change of terms of this Agreement or any Lease shall bind either party unless in writing and signed by troth parties,and then such
waiver, consent, modification or change shall be effective only in the specific instance and for the specific purpose given. There are no understandings,
agreements, representations, conditions, or warranties, express or implied, which are not specified herein regarding this Agreement or any Lease or the
Equipment leased thereunder.Any terms and conditions of any purchase order or other documents submitted by Lessee in connection with this Agreement
which are in addition to or inconsistent with the terms and conditions of this Agreement or any Lease will not be binding on Lessor and will not apply to this
Agreement or any Lease.
Section 10.06 Jurisdiction and Venue. Lessee irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting in New York,over any
suit, action or proceeding arising out of or relating to this Agreement. Lessee irrevocably waives, to the fullest extent it may effectively do so under
applicable few, any objection it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and
any claim that the same has been brought in an inconvenient forum. Lessee hereby consents to any and all process which may be served in any such suit,
action or proceeding,(i)by mailing a copy thereof by registered and certified mail,postage prepaid,return receipt requested,to the Lessee's address shown
in this Agreement or as notified to the Lessor and(ii)by serving the same upon the Lessee in any other manner otherwise permitted by law,and agrees that
such service shall in every respect be deemed effective service upon Lessee.
Lessor and Lessee have caused this Agreement to be executed in their names by their duly authorized representatives listed below.
Lessee:cCompanp Lessor:<Lessor Name>
Signature Signature
Mark M. Zaslaysky, President _
Printed Name and Title Printed Name atid Title
i
4
n
Schedule No. <Equipment Sch Number>
EXHIBIT A
DESCRIPTION OF EQUIPMENT
RE: Master Lease Purchase Agreement dated as of<Commencement Date>, between <Lessor Name> (Lessor)
and <Company> (Lessee)
Below is a detailed description of all the items of Equipment including quantity,model number and serial number where applicable:
Quantity Serial Number Type,Make,Model
EQUIPMENT LOCATION Complete only it equipment will not be located at Lessee's address
Address City State
County
I1
<Equipment>
Lessee:<Company>
I L'
-'F
Signature '
Printed Name and Title
Date
A-]
Schedule No. <Equipment Sch Number?
EXHIBIT B
SCHEDULE OF PAYMENTS
Rate: <Rate>
(INSERT PAYMENT SCHEDULE)
Assumes that all rental payments and additional rentals due on and prior to that date have been paid.
Lessee:<Company>
Signature
Printed Name and Title '
Date
B-1
Schedule No. <Equipment Sch Numbers
EXHIBIT C
(NON ESCROW)
CERTIFICATE OF ACCEPTANCE
RE: Master Lease Purchase Agreement dated as of<Commencement Date, between <Lessor Names
JLessor) and <Company> (Lessee) and Schedule No. <Equipment Sch Numbers thereto.
I, the undersigned, hereby certify that I am a duly qualified representative of Lessee and that I have been given the
authority by the Governing Body of Lessee to sign this Certificate of Acceptance with respect to the above referenced
Master Lease Purchase Agreement and Schedule No. <Equipment Sch Number, (the "Lease"). I hereby certify that:
1. The Equipment described on Exhibit A has been delivered and installed in accordance with Lessee's
specifications and Lessee hereby requests and authorizes Lessor to disburse to the vendor the net proceeds of
the Lease by wire transfer or by check.
2. Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate
and hereby acknowledges that it accepts the Equipment for all purposes.
3. Rental Payments with respect to such Equipment are due and owing as set forth in Exhibit B to the Lease.
4. Lessee has obtained insurance coverage as required under the Lease.
5. Lessee is exempt from all personal property taxes and is also exempt from sales and/or use taxes with respect to
the Equipment and the Rental Payments.
6. No event or condition that constitutes or would constitute an Event of Default exists as of the date hereof.
Lessee.<Company>
-f
Signature
,f
Printed Name and Title
.1
C-1
Schedule No. <Equipment Sch Number>
EXHIBIT C
(ESCROW)
Re: Master Lease Purchase Agreement dated as of <Commencement Date, between <Lessor Names (Lessor)
and <Company> (Lessee) and Schedule No. <Equipment Sch Numbers thereto.
FINAL ACCEPTANCE CERTIFICATE
I, the undersigned, hereby certify that I am a duly qualified representative of Lessee and that I have been given the
authority by the Governing Body of Lessee to sign this Final Acceptance Certificate with respect to the above referenced
Master Lease Purchase Agreement and Schedule No. <Equipment Sch Number> (the"Lease"). I hereby certify that:
1. Ail Equipment described on Exhibit A has been delivered and installed in accordance with Lessee's specifications
and Lessee hereby requests and authorizes Lessor to disburse, or direct the escrow agent to disburse, to the
vendor the remaining net proceeds of the Lease by wire transfer or by check.
2. Lessee has conducted such inspection and/or testing of the Equipment as it deems necessary and appropriate
and hereby acknowledges that it accepts the Equipment for all purposes.
3. Rental Payments with respect to such Equipment are due and owing as set forth in Exhibit B to the Lease.
4. Lessee has obtained insurance coverage as required under the Lease.
5. Lessee is exempt from all personal property taxes and is also exempt from sales and/or use taxes with respect to
the Equipment and the Rental Payments.
6. No event or condition that constitutes or would constitute an Event of Default exists as of the date hereof.
Lessee:<Company>
Signature r
Printed Name and Title
Date — -
C-2
Schedule No. <Equipment Sch Number>
EXHIBIT C
Re: Master Lease Purchase Agreement dated as of <Commencement Date>, between <Lessor Name> (Lessor)
and <Company> (Lessee) and Schedule No. <Equipment Sch Number> thereto.
PAYMENT REQUEST AND PARTIAL ACCEPTANCE CERTIFICATE
I, the undersigned, hereby certify that I am a duly qualified representative of Lessee and that I have been given the
authority by the Governing Body of Lessee to sign this Certificate of Acceptance with respect to the above referenced
Master Lease Purchase Agreement and Schedule No. <Equipment Sch Number> (the"Lease"). I hereby certify that:
1. The Equipment described below (comprising part of the Equipment described on Lease Exhibit A) has been
delivered and installed in accordance with Lessee's specifications and Lessee hereby requests and authorizes
Lessor to disburse, or direct the escrow agent to disburse, to the vendor described below net proceeds of the
Lease in the amount specified by wire transfer or by check. Such amount has not formed the basis for a previous
request for payment. I • .
2. Lessee has conducted such inspection and/or testing of such Equipment as it deems necessary and appropriate
and hereby acknowledges that it accepts such Equipment for all purposes.
3. Rental Payments are due and owing as set forth in Exhibit B to the Lease.
4. Lessee has obtained insurance coverage as required under the Lease.
5. Lessee is exempt from afl personal property taxes and is also exempt from sales and/or use taxes with respect to
the Equipment and the Rental Payments.
6. No event or condition that constitutes or would constitute an Event of Default exists as of the date hereof.
Equipment Serial Number/Description Amount
Vendor Name and Address:
Lessee:<Company>
Signature
Printed Name and Title
Date
C-3
Schedule No. <Equipment Sch Number>
EXHIBIT D
OPINION OF COUNSEL
(Must be Re-typed onto attorneys letterhead)
<Commencement Date>
<Lessor Name>
<Lessor Address 1>
<Lessor City>, <Lessor State> <Lessor Zip>
Re: Master Lease Purchase Agreement dated as of<Commencement Date>, between<Lessor Name>
(Lessor) and <Company> (Lessee) and Schedule No. <Equipment Sch Number>thereto dated as of
<Equipment Schedule Date>.
Ladies and Gentlemen:
As legal counsel to Lessee, I have examined the foregoing Agreement and Schedule (the"Lease") and such other
opinions, documents and matters of law, as I have deemed necessary in connection with this Lease. Based on
the foregoing, I am of the following opinions:
1. Lessee is the State or a duly organized political subdivision of the State within the meaning of Section 103 the
Internal Revenue Code of 1986, as amended (the Code), or a constituted authority authorized to issue
obligations on behalf of the State of a -political subdivision thereof within the meaning of the treasury
regulations promulgated under the Code.
2. Lessee has the requisite power and authority to purchase the Equipment and to execute and deliver the
Lease and to perform its obligations under tiie Lease. The Lease and the other documents either attached
hereto or required herein have been duly authorized, approved and executed by and on behalf of Lessee,
and the Lease is a legal, valid and binding obligation of Lessee enforceable in accordance with its terms.
3. The authorization, approval and execution of the Lease and all other proceedings of Lessee relating to the
transactions contemplated thereby have been performed in accordance with all open meeting laws, public
bidding laws and all other applicable state and federal laws.
4. There is no proceeding pending or threatened in any court or before any governmental authority or arbitration
board or tribunal that, if adversely determined, would adversely affect the transactions contemplated by the
Lease'or the security interest of Lessor or its assigns, as the case may be, in the Equipment. Ali capitalized
terms herein shall have the'same meaning as in the foregoing Agreement.
5. The above opinion Iis for the sole benefit of the Lessor listed above and can only be relied upon by the Lessor
or any permitted assignee or sub assignee of Lessor under the Lease.
Signature of Legal Counsel
D-l
Schedule No. <Equipment Sch Number>
EXHIBIT E
LESSEE RESOLUTION
RE: Master Lease Purchase Agreement dated as of <Commencement Dates, between <Lessor Name>
(Lessor)and <Company> (Lessee)and Schedule No. <Equipment Sch Number>.
At a duly called meeting of the Governing Body of the Lessee (as defined in the Agreement) held on
the following resolution was introduced and adopted:
BE IT RESOLVED by the Governing Body of Lessee as follows:
1. Determination of Need. The Governing Body of Lessee has determined that a true and very real need exists
for the acquisition of the Equipment described on Exhibit A of Schedule No. <Equipment Sch Number> to the
Master Lease Purchase Agreement dated as of <Commencement Date>, between <Company> (Lessee) and
<Lessor Name> (Lessor).
2. Approval and Authorization. The Governing Body of Lessee. has determined that the Agreement and
Schedule, substantially in the form presented to this meeting, are in the best interests of the Lessee for the
acquisition of such Equipment, and the Governing Body hereby approves the entering into of the Agreement
and Schedule by the Lessee and hereby designates and authorizes the following person(s) to execute and
deliver the Agreement and Schedule on Lessee's behalf witli,such changes thereto as such person(s)
deem(s) appropriate, and any related documents, including any Escrow Agreement, necessary to the
consummation of the transaction contemplated by the Agreement and Schedule.
Authorized Individual(s).
(Printed or Typed Name and Title of individual(s)authorized to execute the Agreement)
In addition to the Authorized Individual(§) above, the Governing Body of Lessee further authorizes the
following individual to sign any Payment Request and Partial Acceptance Certificate form and/or Final
Acceptance Certificate:
Authorized Individual(s):
(Printed or'Typed Name and Title of individual(s) authorized to execute any Payment
Request and Partial Acceptance Certificate and/or Final Acceptance Certificate)
3. Adoption of Resolution. The signatures below from the designated individuals from the Governing Body of
the Lessee evidence the adoption by the Governing Body of this Resolution.
By:
(Signature of Secretary, Board Chairman or other member of the Governing Body, who is not listed as
"Authorized Individual"above)
Name: Title:
(Printed name of individual who signed directly above) (Title of individual who signed directly above)
Attested By:
(Signature of one additional person who can witness the passage of this Resolution)
Name: Title:
(Printed name of individual who signed directly above) (Title of individual who signed directly above)
E-1
Schedule No. <Equipment Sch Number>
EXHIBIT F
BANK QUALIFIED CERTIFICATE
RE: Master Lease Purchase Agreement dated as of <Commencement Dates, between <Lessor Name>
(Lessor)and <Company> (Lessee)and Schedule No.<Equipment Sch Number>.
Whereas, Lessee hereby represents that it is a "Bank Qualified" Issuer for the calendar year in which this
Agreement and Schedule are executed by matting the following designations with respect to Section 265 of the
Internal Revenue Code. (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).
Now,therefore, Lessee hereby designates this Agreement and Schedule as follows:
1. Designation as Qualified Tax-Exempt Obligation. Pursuant to Section 265(b)(3)(B)(ii) of the Internal
Revenue Code of 1986 as amended (the "Code"), the Lessee hereby specifically designates the Agreement
and this Schedule as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Code. In
compliance with Section 265(b)(3)(D) of the Code, the Lessee hereby represents that the Lessee will not
designate more than $10,000,000 of obligations issued by the Lessee in the calendar year during which the
Agreement is executed and delivered as such "qualified tax-exempt obligations".
2. Issuance Limitation. In compliance with the requirements of Section 265(b)(3)(C) of the Code, the Lessee
hereby represents that the Lessee (including all subordinate entities of the Lessee within the meaning of
Section 265(b)(3)(E) of the Code) reasonable anticipates not to issue in the calendar year during which the
Agreement and Supplement are executed and delivered,' obligations bearing interest exempt from federal
income taxation under Section 103 of the Code (other than "private activity bonds"as defined in Section 141
of the Code) in an amount greater than$10,000,000.
By.
(Signature of individual authorized to execute this Exhibit)
Name: Title:
(Printed name of individual who signed directly above) (Title of individual who signed directly above)
F-1
Schedule No. <Equipment Sch Number>
EXHIBIT G
AGREEMENT TO PROVIDE INSURANCE
Lessee: Lessor:
Name: <Company> Name: <Lessor Name>
Address: <Address 1> <Address 2> Address: <Lessor Address 1>
<City>, <Slate> <ZIP Code> <Lessor City>, <Lessor State> lessor Zip>
Phone: <Phone> Phone: <Lessor Phone>
Description of Equipment: <Equipment>
I understand that to provide protection from serious financial loss, should an accident or loss occur, my lease
contract requires the equipment to be continuously covered with insurance against the,risks of fire and theft, and
that failure to provide such insurance gives the Lessor the right to declare the entire unpaid balance immediately
due and payable. Accordingly, I have arranged for the required insurance through the insurance company shown
below and have requested my agent to note Lessor's interest in the equipment and<Lessor Name> and/or its
assigns as additional insured and loss payee. I have instructed our insurance company to fax proof of
coverage to<Lessor Fax Phone>, as soon as possible.
NAME OF AGENT t INSURANCE COMPANY
is
Name: Name,
Address: Policy#:
Phone: -1=
- r
Email:
Lessee:<Companyr>
Signature
Printed Name and Title
G-1
Schedule No. <Equipment Sch Number>
EXHIBIT H
LESSEE CERTIFICATE
RE: Master Lease Purchase Agreement dated as of<Commencement Date>, between
Lessor Name>(Lessor) and <Company> (Lessee)and Schedule No.<Equipment Sch
Number>thereto.
1, the undersigned, hereby certify that I am a duly qualified representative of Lessee and that I
have been given the authority by the Governing Body of Lessee to sign this Certificate of
Acceptance with respect to the above referenced Master Lease Purchase Agreement and
Schedule No. <Equipment Sch Number> (the"Lease"). I hereby certify that:
1. Lessee has appropriated and/or taken other lawful actions necessary to provide moneys
sufficient to pay all Rental Payments required to be paid under the Lease during the
current Budget Year of Lessee, and such moneys will be applied in payment of all Rental
Payments due and payable during such current Budget Year.
2. The governing body of Lessee has approved the authorization, execution and delivery of
the Lease on its behalf by the authorized representative of Lessee who signed the Lease.
3. During the term of the Lease, the Equipment will be used for essential governmental
functions. Such functions are:
4. The source of funds (fund Item in budget) for the Rental Payments that come due under
Exhibit B of this Lease is as follows:
F -
5. Lessee reasonably expects and anticipates that adequate funds will be available for all
future Rental Payments that will come due under Exhibit B because:
Lessee:<Company>
Signature
Printed Name and Title
H-i
FIRE DEPARTMENT Purchase
TOWN OF AGAWAM Order 16000839-00 FY 2016
800 MAIN ST
AGAWAM, MA The Above Purchase Order Number Must Appear
01001 On All Correspondence - Packing Sheets And
Bills Of Lading
Mail Invoices In Duplicate To
Above Address Page 1
Vendor Ship To
NE FIRE EQUIPMENT & APPARATUS CORP FIRE DEPARTMENT
10 STILLMAN RD TOWN OF AGAWAM
800 MAIN ST
NORTH HAVEN, CT AGAWAM, MA
06473 01001
Requisition
01601057
--Date------- Vendor- -Date----- -Ship -
lNumber
-
_----- --------- -------- ----- --------------
Ordered Required Via Terms Department
_- -- - - ----------------------- ------- _ _ --- -------_-__--_-
12/22/15 1118270 l !FIRE -�
LN- -Description / Account - Unit Qty Unit. Price Net Price
001 22822-58500 1. 00 231713 . 00000 231713 . 00
State Vendor #230294 HGAC group
purcahsing contract Total purchase price
subject to three year lease purchase
agreement at discretion of Treasurer
PO Expiration Date 06/30/2016 PO Total 231713 . 00
***** General Ledger Summary Section *****
Account Amount
22822-58500 231713 . 00
All purchases must comply with
Massachusetts Procurement Laws. This
form has been approved electronically
by authorized signatures . Tax Exempt #
046-001-065
- ..C �``�� ------------
ef Pr urement Of 'ice -
Kt If 160/057 FOA76b005 -F-a0 CT LICENSE A �s-
RETAIL PURCHASE ORDER
FOR MOTOR VEHICLE
Dale /;-/)•-7--f slocl No
Small AirReia e+c a- llespe mm >s-e rr.rr+T1 -_--
P.,,Cna,r': Home Bu S'ricss
/� _pmk Pnnr o _Sfl 73Y cic+ )
Adares5 S'cc. /l1r.. 3 Ile—! C.�iy /T �••. Sla(e /r7 A Z,V e:i 4..
)(NEJr 1 USED �•amy —
JDLMIi%STnATOF .2,1 �! sf`^ j'�' iypellrMs,•%�.C�Or ��f Tr,m
p
YE• aMFsl, ,YQCd„ 'C�
teen[ [' Def A}1•/L rL
NO D.U.B. S,S.Np. (ln 0 tt,ACA0 gI,I
••a•'{.I—'•.,SkPC.-Oi•;A.C,"'sTVe{TftQXD'•'ASPAP,--( lAr.Ooo THE MILEAGE AS SHOWNOerTtsEODOMETEN
Al.'i..•.'Irt l,:L 1 :•,f Of to:O&r Of I A, CI,LAP f WCa/T r DO T•,t 11 10aALAI.C�U
••.(;•�Ir.f ptstM a+..'OwIfDG!.T,(ur,'�{psrG"rl0 STAtf 1—TT„r..'{CAG{ THE MOTOR VEHICLE TO BE PURCHASED t5:
�•-•c r,..�.F•.-s owe;.. CASH PRICE AT SELLER'S PLACE OF OUBINESS-
'"^" ACCESSORIES AND EXTRA EOUIPMENT;
•.o
VON ETCH SEFMCE{OPTIONAL}
Altowance S
Balanced Owea f Net AAowarsce S 'J YES ,l NO fINITI
la vvtnm Owed -n le-
NO INSURANCE IS INCLUDED IN THIS ORDER
O1MER CHARGES.:I Ensar WY O"W$W Irteuranee ea eapows:
CREDIT INSURANCE AGREEMENT The parwa of Aar■nsg A Healpt IL Cisea
Lte Inwtawct•s vDAinGry area fa rags W for carat .
r Craart Life f .l Accttaent A Heattn S �l
Mt ins CC .s
My In5 [D NO is
Dwet's OcepsitN 4
e
Z)THIS MOTOR VEHICLE NOT GUARANTEED
R+
THIS vEHIf'LE IS SUBJECT TO A LIMITED WARRANTY OF
r-OR _MILES OR MONTHS wm CHEVER
OCCURS FIRST COPY GIvEN CLIENT
to THIS MOTOR VEHICLE IS GUARANTEED Fa if jr Days SAI=ICF �7/' T/
p• L - u..• rtt,leS wlucnevw Comes tLml The reader wa paY [DEALER CONVEYANCE FEE
1 fie of the Ixpor and I OD%of the pans for the covered systems Ij W=MM FU 6 NOT PAYARU TO THE STATE OF C004ECTI AM
A•!t'cR rerldetS the vehtCle mechanlcany pperattonal and Sound
dLsaig the watranry pef rid All wWk mast be done In rfataller'r SALES TAX
J THIS VEHICLE IS NOT GUARANTEED
'J"AS IS" THIS VEHICLE IS SOLD"AS IS".THIS MEANS
THAT YOU WILL LOSE YOUR IMPLIED WARRANTIES.YOU RE I TRANy till I LIEN
WILL HAVE TO PAY FOR ANY REPAIRS NEEDED AFTER
SALE.IF WE HAVE MADE ANY PROMISES TO YOU,THE LAW t TOTAL CASH PRICE DELIVERED
SAYS WE MUST KEEP THEM,EVEN IF WE SELL"AS IS".TO
PROTECT YOURSELF,ASK US(1) TO PUT ALL PROMISES 7 °=os'�
INTO WRITING AND(2)IF WE OFFER A WARRANTY ON THIS AODRIONAL DEPOSIT
VEHICLE. coeewara s*aatvrll raw DOWN NO REFUND OF DEPOSIT
,ncbtTHIS MOTOR VEHICLE BEING PURCHASED IS A PREVIOUS P'. � NET TRAOE ALLOW
RENTAL J LEASE VEHICLE❑TAXI(,]POLICE uDeaaCls
TRADE, fN]AUCTION U BUY Q OTHER CASH ON DELfVERY
hne) TOTAL DOWN PAYMENT
r 3 UNPAID BALANCE OF CASH PRICE(1.2)
i'.r.^•a•na�w rP.,roe rn tAr+P1r>or bnn for or Pr+a..C'irT a e,p rpva[1
lw** !s,s,rl Iti rraz tp n ova.nr cn 1rafy pnw�r Ina eomx*o of
Croon I'f�Ors
a
LIEN ACc+aerll A Heamn Ins
Payment Schedule, CI,►a0L1 Verwas SIN*lnleieM
will be to
+JYB[c(K PA,yF M[S .rUJ•rr Or 4sG•Pa•la[v: ll^i r"w•l+[rnS Ar[s Din
s TOTAL OTHER CHARGES
aa[Tl'• UNPAID BALANCE AMT FOR (3.e)
1� I
U rTsoWinl Inerrlsd aRa eymama Total Safe P,.Ce
qAT E ily aoea[h noLnl iT,, The arrlprn'of na[1:1 The arrlpLv I yoo w 10 ha.P W'^- T I•r:D1a'C:SS CI
Tn.c,SI C'.:u'C•e*l as i br31.-4 cost YM+ r.",K a tr.yn. 'G^ ar;e'TW navf mASP At,IhP nr
a•
"ra•', 'ale "No Donal aayn.ort(s As Strgcu.,c
APR 1
'a.a gear o"P lams And cor+aritons or.tr*haa.hwoo!anC agree 10 P14m as a W,,of th,s Doer(me same as It IT'";o,P r,,nu•n aDa.e m?sagna:.:re
Tie f:anl ana"-i nerw.Com,anae coo Amble aCyeborrbo,1 oneC11nq mrs o'Jer Ana nc oin*t ag•eememt n•t)naersra'%"'r nt any'ta:u'P C.,•ICPr-gin.}y,v�•c
a i+rr •Hale C'rn:e•e0 in:c: I rw0th aCirgwieagL rKMpr of a copy Dr INS pr6N and Ce•1'ry Irtal I am cl*v Aqf
TIfIS ORDER IS *40T INDI UPITIL SIGNED APED ACCEPTED EY DEALER
Pu•crase:s S.grwture
^,1"save raCe•vK'a Gppy OI fMs o+0ll — (tall•
� �'Ci•r:Yy N., �i..<_ ILlrl•/ /%.l.ra r.•�ly. .L�r.•_ •J 1.;J T� L: !- �/ [r/1?i, �i�.l..r P
ne; ♦ ! `�� ate. ee,cT,I.� le-,,'I •Z. �.
I `A t; L i E i ��C FIEb "F K F=L.E SE
951 interest payable related to such projects, the department of education shall recalculate the amount
952 of the state construction grant that is payable to such city, town or regional school district.
953 If the mayor or city manager in a city, the board of selectmen of a town or the prudential
954 committee of a district determines that the issuance of refunding bonds is reasonable and
955 necessary in order to maintain the tax-exempt status of outstanding bonds or notes of the city,
956 town or district, the official, board or committee may authorize refunding bonds for that purpose,
957 even if the present value of the principal and interest payments due on the refunding bonds
958 exceeds the present value of the principal and interest payments otherwise payable on the bonds
959 to be refunded.
960 SECTION 68. Said chapter 44, as so appearing, is hereby amended by inserting after
961 section 21 B the following section:-
962 Section 21 C. A city, town or district may by a two-thirds vote of its legislative body, if
963 recommended by its chief executive officer, authorize any department of the city, town or district
964 to enter into a lease purchase financing agreement to acquire equipment or improve a capital
965 asset that may be financed by the issuance of debt under this chapter or otherwise authorized by
966 law, for a term up to the useful life of the property to be procured as determined by its chief
967 executive officer. Any lease purchase financing agreement under this section shall be considered
968 a binding obligation of the city, town or district as if it were a debt authorization under this
969 chapter, provided an appropriation available for the purpose has been made in the first fiscal year
970 in which the lease becomes effective. Any city, town or district that follows the procedure in this
971 section with respect to entering into a lease purchase financing agreement for the procurement of
46 of 120
972 any personal property for the governmental entity, may refinance the purchase with the issuance
973 of refunding bonds under section 2]A to pay the balance of the lease obligation.
974 SECTION 69. Section 25 of said chapter 44 is hereby repealed.
975 SECTION 70. Section 31 of said chapter 44, as so appearing, is hereby amended by
976 inserting after the word "only", in line 10, the following words:- upon a declaration by the
977 governor of a state of emergency with respect to the disaster or.
978 SECTION 71. Said section 31 of said chapter 44, as so appearing, is hereby further
979 amended by striking out the third sentence and inserting in place thereof the following sentence:-
980 Payments of final judgments, awards or payments ordered or approved by a state or federal court
981 or adjudicatory agency may, upon certification by the city solicitor or town counsel that no
982 appeal can or will be taken and as required by municipal charter, ordinance or by-law, be made
983 from any available funds in the treasury, and the payments so made shall be reported by the
984 auditor or accountant or other officer having similar duties, or by the treasurer if there be no such
985 officer, to the assessors, who shall include the amount so reported in the aggregate appropriations
986 assessed in the determination of the next subsequent annual tax rate, unless the city or town has
987 otherwise made provision therefor.
988 SECTION 72. Said section 31 of said chapter 44, as so appearing, is hereby further
989 amended by inserting after the word "selectmen", in line 38, the following words:- , and the
990 district counsel in place of the city solicitor or town counsel.
991 SECTION 73. Section 31 D of said chapter 44, as so appearing, is hereby amended by
992 striking out, in lines 4 through 8, the words "town manager and the finance or advisory
993 committee in a town having a town manager, by the selectmen and the finance or advisory
47 of 120
An Act to Modernize Municipal Finance and Government
Section by Section Summary
Municipal Procurement 1 (1-3, 6-7, 9-12) —These sections amend the "horizontal"
construction procurement statute, c. 30, § 39M, to increase the dollar threshold for contracts
requiring less-than-full competitive bidding from $1 OK to $50K. They also make procurement
methods consistent with other construction and municipal procurement statutes by adding a
"middle tier" of contracts valued at between $10-50K, for which public entities may either give
public notification of the contract or use OSD statewide contracts or other"blanket" contracts to
solicit a minimum of three bids. Finally, these sections make conforming changes to dollar
thresholds for existing exemptions under c. 30, § 39M, and the municipal procurement statute, c.
30B.
Municipal Procurement 2 (4, 226)--These sections create exemptions from construction
bidding for contracts for the "installation, repair and maintenance of telecommunication and data
cabling and wiring; telecommunication, security, audiovisual and computer equipment; and
carpeting." These sections require that such contracts be procured through OSD statewide
contracts, but preserve the discretion of public entities to follow construction procurement rules,
if it is in the "best interest" of the project (e.g., if such work is part of a larger construction
project).
Exemptions from Uniform Procurement(5)—This section removes the existing exemption
from the municipal procurement statute, c. 3013, for contracts for bank services that are subject to
the maintenance of a compensating balance. The exemption for bank services subject to a
compensating balance is removed because municipalities are otherwise subject to c. 30B rules
for other types of banking services. This is also consistent with loosening state oversight of such
agreements, as described in sections 85-87.
Procurement Advertising (8, 229)—This section modifies the public advertising requirements
for contracts awarded under the competitive bidding provisions of c. 30B, the municipal
procurement statute, and c. 149, the "vertical" construction bidding statute, to permit advertising
on the COMMBUYS system, rather than through costly newspapers.
Retiree Health Cost Sharing(13)—This section repeals the requirement in c. 3213, § 9A%z that
a municipality be reimbursed in full, in the event a retired municipal employee or beneficiary
receives healthcare premium contributions under circumstances in which a portion of the
retiree's creditable service is attributable to service in another municipality. This legislation was
enacted in 2010 with municipal support, but has proven to be unworkable in practice.
OPEB Trust Fund (14, 239)—These sections permits governmental units—defined broadly to
include any political subdivision of the Commonwealth and housing authorities, redevelopment
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authorities, regional councils of government, regional school districts and educational
collaboratives—to establish an OPEB trust fund that complies with the legal requirements for
trusts and with GASB. This change is necessary to clarify current language, which only
authorizes a reserve/stabilization fund for retiree health insurance purposes. These sections also
make clear that any OPEB fund created prior to the effective date of this act will continue unless
the governmental unit re-accepts the provisions of this act.
County Borrowing Tech Correction (15)—This section permits counties to borrow money for
emergency purposes upon approval by the municipal finance oversight board, and not (as is
currently required) a board composed of the attorney general, the state treasurer and the director
of accounts (within DLS).
Supervision of County Government 1 (lb)—This section repeals provisions of the county
finance statute that require DLS to review the accounts of county treasurers and other offices
receiving money payable to the counties, prescribe accounting standards and provide technical
assistance, and submit annual reports on county accounts to the Governor and Legislature. DLS
does not perform these functions for any remaining county governments.
Supervision of County Government 2 (17) —This section repeals the provision of the county
finance statute that requires DLS to submit county employee classification and compensation
plans to county personnel boards, and to advise county commissioners and personnel boards on
employment matters. DLS does not perform these functions for any remaining county
governments.
Local Advertising 1 (18)—This section modifies the public notice requirement for town
warrants, which are required for every town meeting or election, to permit municipalities to post
notice in any manner prescribed or approved under the Open Meeting Law, rather than through
bylaw or attorney general approval as is currently required. The Open Meeting Law requires
meeting notices to be posted in a manner "conspicuously visible" at all hours, or in another
manner prescribed or approved by the attomey general (such as on the town's website).
Rental Revolving Fund (19)—This section allows cities and towns to create a revolving fund
for proceeds from rental of surplus non-school properties, and authorizes expenditures without
appropriation for upkeep of such properties. This is an expansion of current law, which
authorizes a revolving fund only for the rental of surplus school properties.
City Reserve Funds (20)—This section increases the amount that cities may appropriate, as a
reserve fund for extraordinary or unforeseen expenditures, from 3% to 5% of the tax levy for the
preceding fiscal year. The 5% level conforms to that currently authorized for towns and districts.
Stabilization Funds 1 (21) —This section amends current law, which allows municipalities to
create one or more stabilization funds, by permitting appropriations into the fund by majority
vote and permitting the municipality, without appropriation, to dedicate all or a portion of
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particular revenue streams to the fund. This section also eliminates the cap on the amount
reserved (10% of the prior year property tax levy), but retains the requirement to obtain a 2/3
vote to make appropriations from the fund.
Parking Local Acceptance (22-24)—These sections allow revenue generated from parking
meters to revert to the city or town's general fund, unless specifically accepted by the city or
town to be accounted for in a separate fund.
Local Advertising 2 (25-29, 36-39)—These sections amend the public notice requirements for
zoning by-laws or amendments, as well as associated public hearings notices. Current law
requires posting of a recently approved zoning by-law or proposed amendment in a town bulletin
or pamphlet in several locations in the town, or publication in costly newspapers; cities are
required to publish in newspapers. Public hearing notices must be published in newspapers and
posted at the city or town hall. These sections permit cities and towns to post all zoning-related
notices in any manner prescribed or approved under the Open Meeting Law.
Collection Liens Non-Resident(30, 184)—There is a common statutory scheme that lets
municipalities and districts, by local option, establish liens when customers of municipal utility
services—gas, electricity, steam, water and sewer—do not pay user charges when due. Lighting
plants, water departments and sewer departments often provide utility services to ratepayers
living in neighboring communities_ However, only lighting plants may impose liens for
customers located in those municipalities. This section extends that option to municipalities and
districts that provide water and sewer services to customers outside their borders.
Certification of Local Property Assessments (31-32, 243)—These sections decrease the
frequency with which DOR must certify that local property assessments reflect fair cash
valuation from every three years to every five years. The certification is a condition of
approving the municipality's property classifications for purposes of allocating responsibility for
the local tax levy. This change would take effect for the fiscal years starting on or after July 1,
2017,
Collections Taxpayer Good Standing (33-34)—These sections permit municipalities to deny
local licenses and permits to any taxpayer who has neglected or refused to pay local taxes and
who has not filed a good faith application for an abatement. Current law permits this collection
method, but only if the taxpayer has been delinquent for at least one year. This change is
intended to allow municipalities to mirror a "good standing" requirement for licensure under
their implementation by-law or ordinance.
Municipal Fines Lien Collection (35)—This section amends current law, which permits a
municipality to impose a lien on real property for unpaid local charges or fees, to permit a lien
for unpaid fines. Consistent with current law, such unpaid amounts may be certified to the local
assessors to be added to property taxes for collection. This section would have the effect of
adding this method of collection for fines that are unpaid by persons who own real estate.
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Water and Sewer Commissions (4041) —These sections make a technical correction to the
methods of local acceptance of statutory provisions creating local water and sewer commissions,
by referencing the methods of local acceptance in c. 4, § 4, and clarifying that a water and sewer
commission is an independent body politic. These sections also permit the commissions that
enter into agreements with municipalities to have liens added to city or town tax bills and
collected by the tax collector, rather than by the commissions.
District Improvement Financing (4247)—These sections amend the district improvement
financing statutes so that the "DIF" reserved for debt service and project costs equals the new
property tax revenue generated by new development and added to the community's levy limit as
new growth under Proposition 2'/2. They also clarify that the requirement to reserve tax
increment funds ends when monies are set aside to pay all debt service. The formula in the law
is based on models used in other states that do not have levy limitations or require tax rate
recalculation based on current values, i.e., where valuation increases generate additional
revenue. For this reason, the tax increment is very difficult for local assessors to calculate and
more importantly does not actually reflect the new property tax revenue generated by the project.
Fine Collection (48) —Revises municipal enforcement authority over violations of municipal
housing, sanitary and ice removal requirements, by allowing the municipality to impose a lien on
the related property, using the same procedures used for liens on real property for any unpaid
local charge or fee.
Combine Treasurer Collector (49, 50)—These sections would allow municipalities to combine
their treasurers and tax collectors into one appointed position without first obtaining a special
act.
Town Administrator Term (51)— Increases the allowable term for an executive secretary or
town administrator to serve, up to five years.
Appoint/Remove Finance Officers (52)— This section repeals three sections under which the
Department of Revenue (DOR) may appoint, approve the appointment of or remove local
finance officers (assessors,collectors, deputy collectors and treasurers)for non-performance.
The statutes date back to a different era and are outdated given changes in the governance and
operation of municipal finance offices. Responsibility and accountability for the performance of
these officials belongs with the local appointing authority or the voters. Also, DOR has no
record of exercising these functions in years, if ever.
Direct Deposit (53)—This section authorizes any city or town which accepts the section to
require the use of direct deposit to pay employees.
Approval Bills Warrants (54, 55)—AlIows multi-member boards, committee, commissions
heading departments, including boards of selectmen, to designate one of its members, to review
and approve bills or payment warrants, with a report provided at the next meeting. Currently, a
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board or committee heading a department may delegate authority to approve payrolls to a
member and a regional school committee may designate a subcommittee to approve bills and
payrolls with a report to the next meeting of full committee. Absent a charter or special act,
boards and committees must approve bills or payment warrants by majority vote at a meeting
subject to the Open Meeting Law.
Compensation District Assessor (56)— Removes the DOR Commissioner's role as mediator if
a dispute arises about the amount annually appropriated for the salaries and compensations of
assessors and tax collectors in tax levying districts.
Injured on Duty Fund (57)—Allows municipalities to create, appropriate money to and expend
from a special injury leave indemnity fund for payment of police officer and firefighter injury
leave compensation or medical bills, rather than charging them to current departmental
appropriations.
CEO Charter Initiate (58, 59)—Allows selectmen or mayors to initiate movement to optional
forms of municipal administration by a charter commission. This will provide flexibility in
initiating governance changes, all of which require a referendum as a charter change. Currently,
a citizens' petition process is the only avenue to initiate a charter commission.
Debt Purposes (60, 62-63, 172)—These sections modernize and simplify the current laws that
authorize cities, towns and districts to borrow by consolidating, updating and restructuring the
allowable borrowing purposes. Also allows borrowing for a court judgment for more than 1 year
if approved by the Municipal Finance Oversight Board.
Grant Anticipation Notes (61)—Broadens current law to allow municipalities to borrow in
advance of any state or federal grant—advance or reimbursable. This updates the statute to add
federal grants and reflect changes in state grant administration, as fewer advance grants that can
be spent without appropriation are being made.
Ten Year BANS (64)—Amends current law to allow 10 year bond anticipation notes (BANs)
with the same required principal paydown as current law, to provide treasurers greater flexibility
in structuring debt, particularly for smaller purchases or projects.
Refunding Bonds (65, 67)— Allows final payment (of the original debt schedule) to be made no
later than 6/30 of the fiscal year payment otherwise due, instead of annual anniversary of prior
payments. Also, amends current law to allow with a finding by the mayor/manager/select-board
that refunding is necessary for federal tax compliance purposes. This section also makes a
technical change to the refunding procedures and payment schedule — allowing first principal
payment of refunding bonds to be due no later than 6130 of the fiscal year the payment would
have otherwise been due, e.g., instead of 11/1 or 5/1. The payment still must be in the same
fiscal year and cannot be deferred to another fiscal year.
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Bond Premiums and Surplus Proceeds (66)—Amends current law by providing communities
with a choice regarding how to treat bond premiums (net of issuance costs). Communities will
be able to either apply it to the issuance, thereby reducing the amount needed to borrow, or place
it in a separate fund and appropriate it for a capital project. It also amends current law by
increasing the amount of surplus bond proceeds that can be applied to debt service from $1,000
to $50,000.
Lease Purchase (68)— Establishes a procedure governing the use of tax-exempt lease-purchase
financing agreements (TELPs) by municipal departments and allows borrowing to pay off a
TELP if it would result in interest savings.
Eliminate Debt Report (69)---Eliminates the requirement that the municipal treasurer notify the
director of accounts when a payment is made. This eliminates the need to notify of duplicative
information, as the annual year-end statement of indebtedness shows changes in debt levels over
the course of the year.
Emergency Spending (70)--Amends current law to provide for automatic approval of payment
for liabilities incurred as a result of emergencies and disasters, when the Governor declares a
state of emergency.
Court Judgments (71, 72)—Amends current law to allow payment without appropriation of
final court judgments and other final adjudicatory claims with municipal counsel certification.
Currently, such payments over $1 OK, require the approval of the director of accounts. Further,
amends the statute to reflect the current operating environment where obligations to make
immediate payments based on various legal claims now are just as likely to result from decisions
of administrative agencies rather than just court judgments.
Snow and lee Removal (73)—Eliminates prior approval for deficit spending for snow and ice
removal by the council/selectboard; and alternatively, requires only that the chief administrative
office of the municipality authorize deficit spending.
Year End Transfers (74, 75)—These sections eliminate the limits on types and amounts of
appropriation transfers that can be made by the selectmen with finance committee approval at
end of year. This would allow end-of-fiscal-year transfers from health insurance, debt service or
other unclassified/non-departmental line item appropriation and eliminate a cap of 3% on the
amount that may be transferred from any department (school and light department line items
remain exempt from this procedure). Eliminating the cap on transfers will provide for greater
flexibility in avoiding deficits and eliminate the need for additional town meetings by July 15 for
minor transfers.
Director Powers (76-81, I74, 205)—These sections make several updates to statutes governing
municipal audit and accounting systems to reflect the current focus of state oversight on
establishing uniform accounting and reporting standards, ensuring periodic audits and instituting
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best practices based on end of year reports, local management reviews and DLS reviews of
cities, towns and special purpose districts. These changes are made through repealing or
amending a number of statutes that have not been updated in years and still reflect the original
mission of the Bureau of Accounts to install accounting systems, conduct financial and forensic
audits and investigations of cities, towns and districts.
Insurance/ Restitution Funds (82)— This section amends the statute that requires all municipal
receipts to be deposited to the general fund and be appropriated. This current statute includes
several exceptions that allow certain receipts to be spent without appropriation for particular
purposes, including insurance and restitution proceeds. This section increases the amount that
may be spent without appropriation to restore or replace the damaged property from $20,000 to
$l 50,000 and updates the lost or damaged school book and materials restitution exception to
include electronic devices and equipment provided to students.
Grant Available Fund (83)—Makes all reimbursable grants from federal or state government
available for appropriation once approved by the granting agency. The proposed amendment
eliminates the need for the Director of Account's approval in future bond bills for G.L. c. 90
grant funds and broadens the immediate availability of other reimbursable grants for expenditure.
Departmental Revolving Fund (84, 85)—These sections amend the revolving funds statutes to
provide more flexibility by eliminating the departmental per fund and total fund caps, broadening
the types of departmental receipts which funds can be established, and allowing revolving funds
to be established by bylaw or ordinance. These sections also repeal the statute that governs
revolving funds for parks and recreation program fees, as this separate statute is not necessary
under our proposal to increase departmental flexibility over revolving funds.
Compensating Balance (86-88)—These sections remove DOR's role in prescribing types of
services and in receiving reports on municipal agreements with banking institutions for
"compensating balance" agreements. However, these sections still require that the treasurer or
collector of a municipality produce the report and submit to local officials and the inspector
general.
Refundable Consulting Fees (89)—Current law allows consultant fees imposed by certain
municipal permitting boards to pay the costs of their reviewing applications for permits or
licenses, including zoning special permits, subdivision control, comprehensive permits, board of
health permits, and conservation commission permits. The statute allows the board to spend the
fees for consulting services, and if monies remain after the board makes its determination, to
refund them to the applicant, without appropriation. This amendment would expand the use of
special funds to include consulting fees charged by any municipal officer(for example, building
inspector) or board with permitting authority where the imposition of fees for outside consultants
is established by its own rule-making authority(if any), statute, ordinance or by-law.
7
Performance Deposits (90)—This section adds a provision that would allow municipalities to
set up escrow accounts for refundable cash performance deposits and set standards for
administration, investment and expenditure upon default.
Special Events Fund /Mitigation & Permitting/ Betterment Reserve (91) —This section
amends or adds three special revenue funds, The first broadens the municipal celebration fund to
include any special event (anniversary celebrations). The second specifically reserves betterment
and special assessment revenue for appropriation for the payment of debt service on any bonds
issued to finance the improvements for which the betterments were assessed. The third allows
mitigation or other monies deriving from, or in connection with, an agreement or licensure or
permitting obligation to be reserved and spent for the purposes for which they were received.
Revenue Cash Investment (92)—Amends current law to permit investment in certificates of
deposit(CDs) for up to 3 years, an increase from the current no longer than 1 year requirement.
This change also addresses an ambiguity in the statute as to whether a I year limit applies to
these investments or solely to investments in United States treasury bonds. It would give
treasurers more flexibility in investing short-term for better rates.
Penalty Electronic Payments (93, 94)— These sections amend the process for appealing
penalties imposed on individuals who tender a check for local fees with insufficient funds,
requiring the individual to appeal at the local level, rather than with the DOR Commissioner. It
further amends the statute to cover electronic payments that are made with insufficient funds.
CPA Surcharge Exemptions (95)—This section sets a deadline for taxpayer applications for
exemptions from the statutory surcharge on real property under the Community Preservation
Act. The deadline is the same as that for other types of applications for local tax exemptions,
and provisions are also made for appeals to the Appellate Tax Board and confidentiality on the
same terms as those applicable to such other applications.
Elections 1 (96-98)—These sections require municipalities to hold voter registration sessions on
the last day of registration from 9 a.m. until at least 5 p.m., but no later than 8 p.m. (the official
deadline is 8 p.m.), and, for towns having less than 1,500 voters, from 2 to 5 p.m. This is a
change from current law, which requires sessions to last continuously from 9 a.m. to 8 p.m., and,
for town with less than 1,500 voters, from 2 to 4 p.m., and 7 to 8 p.m.
Elections 2 (99)—This section is taken from H. 587, which permits municipalities to use
"electronic poll books," in lieu of paper voting lists, at polling stations. The section requires poll
books to produce a receipt with a voter's name, address, date of birth, and voter identification
number, and requires the election worker at the check-out table to accept the receipt before
permitting the voter to deposit his or her ballot.
Elections 3 (100)—This section gives discretion to the presiding officer of each polling place to
determine the most expedient manner in which to conduct the "dual checkoff'procedure under
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c. 54, § 67, which requires voter names to be checked both when handing the voter a ballot and
after the individual has cast his or her vote.
Corporations Lest (101, 116)—These sections require that the Department of Revenue identify
those corporations that are classified as research and development corporations, so that cities and
towns can use that classification in their administration of property tax exemptions.
Approval of Forms (102, 109, 131-132, 154, 162)—These sections eliminate existing
requirements that the Department of Revenue print and distribute various forms, and approve
electronic formats, used in the assessment and collection of local taxes.
Collection Title Foreclosure (103, 155)—These sections eliminate an existing but apparently
never-exercised mechanism under which the Department of Revenue took over collection actions
on behalf of towns.
Affordable Housing Abatements (104-105, 139-140) —These sections amend the property tax
laws to allow local implementation of affordable housing abatement agreements in the same
manner as brownfield abatement agreements under G.L. c. 59, § 59A. The brownfeld abatement
agreement is an entirely local process with an implementation by-law or ordinance providing
transparency in allowable abatements within the statutory parameters. That process would be
appropriate for affordable housing abatements as well.
State-Owned Land Valuation (106-107, 249)—These sections eliminate the current procedure
under which the Department of Revenue values state-owned land every four years, replacing that
process with a statutory formula for determining the valuation every two years after the 2017
valuation required by current law. That valuation will be adjusted every two years by the
equalized valuation and the value of acquisitions and dispositions. The acquisitions and
dispositions will be based on a per acre value that will also be adjusted every two years by the
equalized valuation. These sections are proposed to take effect as of January 1, 2018, to govern
the state-owned valuation on January 1, 2019 for distributions made in fiscal year 2021.
Schedule A Compliance (108)—This section improves compliance for municipal reporting by
changing from October 1 to November 30 the annual deadline for cities and towns to submit the
prior year's annual financial report. This would also modify the law to provide the intended
consequence for non-compliance and withhold all future payments (regardless of fiscal year)
until such time as the Schedule A is submitted and accepted.
Supplemental Assessments (110-113, 244)—Current law provides for supplemental
assessments on new construction, and abatement of regular real estate for damage due to fire or
natural disaster, unless a community rejects this option. These sections change this assessment
by excluding the value of the land from the calculation of the 50%trigger for the supplemental
assessment. They also clarify the applicable tax rate, and establish a one-year time Iimit in
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which a property owner may apply to the assessors for abatement after a fire or other natural
disaster.
Right of First Refusal (114) —This section would give a municipality a right of first refusal if
property owned by a charitable organization or a church is being sold or developed for a non-
exempt purpose. The right of first refusal would be similar to a municipality's right when an
owner of forest, farm or recreational land which has received a tax benefit sells for or converts
that property for development. A tax-exempt organization would be required to give notice of
the proposed sale or development to the city or town, which would have 120 days to exercise its
right of first refusal. A city or town would be authorized to assign its rights to a nonprofit
conservation organization, the Commonwealth or any of its political subdivisions.-
Charitable Exemption Technical Correction (115) —This section corrects two references in
the charitable exemption for real property to local adoption of a "paragraph." The local adoption
should be of the "sentence."
Exemption Applications (117, 119, 121-122, 138, 242) —This section creates a single due date
for personal exemption applications regardless of billing system used. This section would make
April I the deadline for personal exemption applications in all communities, creating a uniform
and consistent deadline for taxpayers.
Commercial Fishing Exemption (118) -- This section increases from $10,000 to $50,000 the
value of the property tax exemption for boats, nets and gear used in commercial fishing,
consistent with changes made to the boat excise exemption under Sections 118, 166, 185 and 186
of the bill. It also increases eligibility for the exemption by eliminating the current requirement
that the exempt property be used "exclusively" in commercial fishing, requiring instead that at
least half of the taxpayer's income is from commercial fishing.
Residential Exemption (120, 242)— Increases from 20% to 35% the statutory limit on the
amount of a residential exemption that can be granted, if a municipality grants such an
exemption as one of its property tax classification options. Five of the thirteen municipalities
that have decided to grant such an exemption have asked for, and received approval for,
residential exemption amounts that are higher than the current statutory limit of 20%.
DOR's Authorization to Assess (123-125, 244)—These sections eliminate the requirement that
local assessors obtain the Department of Revenue's approval before assessing taxes on real
property to unknown owners or owners of present interests. The Department is unable to
conduct independent title or other analyses to verify these requests. Moreover, local assessors
determine record ownership for assessment purpose for millions of real estate parcels and there is
no regulatory purpose served in having them obtain the Department's approval about the party
assessed in these selected situations. The Department has the power to issue guidelines on
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assessment administration and can provide appropriate oversight and guidance on the statutory
standards and best practices.
Single Overlay (126-127, 143, 246)—This section would create a single overlay account and
remove anachronistic references to a repealed cap on cities. Currently, there is a separate
overlay reserve for cach fiscal year. A surplus in one year cannot be used to cover a deficit in
another year without the assessors declaring a surplus, the accounting officer transferring the
amount to an overlay surplus account and the legislative body appropriating from the surplus by
year end. This is cumbersome and inefficient.
Central Valuation (128-130) —These sections change the timelines for company reporting and
DOR certification to conform to the same schedule as pipeline companies, and to be able to
obtain the most current company regulatory reports. These sections also define a telephone
company for central valuation purposes to include only landline incumbent local exchange
carriers (ILECs) under the federal Telecommunications Act and allow DOR to share information
with local assessors so they can make an informed decision whether to appeal. Finally, these
sections provide for a more streamlined and expeditious appeal process by allowing one party to
file a notice of appeal in response to another parties' filing.
Interest on Collections (133-135, 245)—These sections standardize the accrual of interest on
delinquent property tax installments, addressing an inequity in the accrual of interest on overdue
installments between communities using semiannual and quarterly billing. Currently, under
semiannual systems, interest accrues from the date the tax bills are mailed, i.e., if the payment is
one day overdue, the taxpayer is charged 31 days interest. Under the quarterly system, interest
does not accrue until the due date. They also permit all communities to make small bills of$100
or less payable in one installment.
Mortgagee Abatements (136-137, 242) --These sections change the timeline for applying for an
abatement, in recognition of the widespread use of quarterly billing systems in cities and towns
of the Commonwealth. Currently, any holder of a mortgage (regardless of the property tax
payment system in use in the city or town) must apply for abatement between September 20 and
October 1. These sections change that requirement so that the application must be filed during
the last ten days of the abatement period, regardless of the city or town's billing system. They
also correct a reference to ensure that Section 59 of Chapter 59 of the General Laws applies to all
persons who may represent a person's estate. These changes are proposed to take effect for the
fiscal year starting on July 1, 2016.
Appeals (141-142) —These sections clarify that the failure to pay semiannual and quarterly
preliminary tax payments, as well as actual tax payments, is a bar to Appellate Tax Board appeal.
Taxpayers are obligated to pay preliminary taxes based on prior year actual under quarterly and
semiannual systems. Their failure to pay preliminary taxes subjects them to the same interest on
overdue amounts that accrues on overdue actual installment payments.
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Abatement on Low Value Lands (144, 146)—These sections repeal the Department of
Revenue's authority to authorize assessors to abate taxes on low value lands and under a local
option, let assessors abate these taxes when the collector determines the costs to collect are more
than the amount owed. Treasurers can also foreclose the tax title under the land of low value
procedure.
Apportionment Appeal (145)—This section extends from seven to thirty days the time period
within which a taxpayer may appeal an apportionment decision.
Mailing Tax Bills (147)—This section modernizes where tax bills are mailed in absence of
written direction by the taxpayer. Under current law, the tax bill only has to be sent to the
"town"where the person resides. This is anachronistic language. Bills should be mailed to the
taxpayer's address if known, or the property address, unless the taxpayer directs otherwise.
E-Billing Technical Correction (148) —This section corrects an internal cross-reference to the
electronic billing program.
Betterment Suspension (149) —Under current law, the Department is authorized to approve
assessors' suspension of betterments for persons receiving certain exemptions. There is no
institutional record of exercising this authority and if a request was received, it is not clear what
criteria are to be used to determine approval. This section will delete an obsolete provision that
pre-dates the enactment of local option G.L. c. 80, § 13B, which allows for betterment deferrals
for seniors.
Scholarship and Educational Funds (150-153)—These sections amend the authorization for
cities and towns to form such funds to clarify that each fund is separately accepted and to clarify
the distinct purposes for which such funds can be used.
Electronic Payment Penalties (156-157)—These sections amend the process for appealing
penalties imposed on individuals who tender a check for local taxes with insufficient funds,
requiring the individual to appeal at the local level, rather than with the DOR Commissioner. It
further amends the statute to cover electronic payments that are made with insufficient funds.
Covenant Extension (158)--Under current law, a city or town must apply to the Department of
Revenue to extend (for up to one year) the duration of the municipality's statutory exemption
from the terms of a covenant running with the land. There is no institutional record of receiving
any request to exercise these powers and DOR is not in position to do so. There is no regulatory
purpose served by a DOR role in the local tax title foreclosure process. This section strikes
references to post-foreclosure extensions of such exemptions.
Foreclosure of Abandoned Buildings (159-160)—These sections eliminate the need for the
involvement of the Department of Revenue in determining whether buildings are abandoned.
Currently, the Commissioner is required to "make an affidavit" confirming that the
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Commissioner agrees with the conclusions of local officials that the building is abandoned.
These sections eliminate references to the involvement of the Department of Revenue, and allow
the affidavits and writings of the local officials involved, including a recitation of efforts to
locate the property owner, to be recorded and to be treated as prima facie evidence that the
building is in fact abandoned.
Taxes in Litigation (161) —This section eliminates a purely ministerial requirement that the
Department of Revenue authorize and allow the transfer of taxes in litigation by an accounting
officer. By law, if the collector cannot perfect the tax lien due to bankruptcy or other litigation,
the lien securing collection continues when the tax collector records a statement of the legal
action. Providing a copy of the recorded statement to the accounting officer should be sufficient
for the transfer of those taxes from the collector's current books.
Prisoners of War Exemption from Motor Vehicle Excise (163)—This section re-organizes
and clarifies the paragraph granting a local option exemption from the motor vehicle excise to
prisoners of war or their surviving spouses.
Motor Vehicle Excise Collection (164-165)—These sections allow a tax collector to be able to
notify the Registry of Motor Vehicles of non-payment of the motor vehicle excise directly, after
notifying delinquent taxpayer of the intent to "mark" their license or registration for non-
payment. This would reduce fees imposed on taxpayers. These sections are intended to address
the Wright court decision, that a warrant to collect must be issued to a deputy collector for a
collector to mark.
Boat Excise (166, 185-186, 247)—These sections reform the administration and collection of the
excise on boats. They address the lack of data on documented boats by requiring boat owners to
supply statutorily-prescribed information to the Environmental Police and to obtain a decal.
They include a procedure to require payment of boat excise for non-commercial boat owners to
renew their registrations with the director of the division of law enforcement of the department
of fisheries, wildlife and environmental law enforcement, similar to the non-renewal procedure
when vehicle owners do not pay their motor vehicle excises. These proposals were developed
with the Environmental Police. These sections also allow boat owners an extra month within
which to file their return with the city or town where their vessel is habitually moored, or
otherwise principally situated. They also update the excise exemption for fishing boats and gears
to reflect changes in the fishing industry that no longer make it a full-time occupation and sole
source of income for most fishermen.
Jet Fuel Excise (167-I69, 248) —These sections implement changes to comply with a recent
change in FAA policy that requires use of state and local taxes on aviation fuel for airport
purposes. Under the amended policy, excises imposed after December 30, 1987 are subject to
federal revenue use restrictions, i.e., can be used for just aviation and airport purposes. If any
municipality accepted and imposed the excise after that date, the FAA requires a state action plan
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to amend any non-compliant laws. States have until the end of 2015 to come up with any
required action plan. All but 1 community that has adopted the excise is either grandfathered
from complying with the new policy or has adopted/can adopt an enterprise fund for its
municipal airport that will effectuate this policy. The sections also allow a community whose
airport is located in another community to receive and use the taxes for airport purposes.
Regional School District Debt (171)—Makes a technical change, inserting the word
"committee", to clarify that it is the regional district school committee that may require the
approval of any particular authorized issue of indebtedness by referendum.
Regional School District Transportation (173)— Clarifies that any funds to be reimbursed by
the Commonwealth for regional school district transportation are subject to appropriation.
Regional School District Stabilization Fund (175-176)— Under current law, a regional school
district can have a stabilization fund, not to exceed 5% of the total assessment upon member
communities. These amendments substitute the Commissioner of Elementary and Secondary
Education instead of the Director of Accounts to approve a higher level of stabilization fund
appropriation and expenditures from the fund for other than capital purposes.
Extended School Programs (177 -179)— Under current law, school committees may provide
pre-school and extended school services for certain children and establish a revolving fund for
payments made by parents and other monies received in connection with these programs. These
amendments would remove outdated restrictions on the students who may receive the services
and extend these sections to regional school committees.
Community School Program Fund (180)—Increases the current community school fund's
$3,000 expenditure limit for material and equipment purchases within a fiscal year, to $10,000.
School Revolving Fund (181) —Qualifies revenue received from enrichment and summer
programs authorized by the school committee, and parking fees as monies received in connection
with the "use of school property" for the purposes of the district's revolving fund.
Vocational School Revolving Fund (182)—Removes the $5,000 expenditure limit placed on
vocational schools' revolving funds, used for culinary arts or other related programs.
Betterment Installments (183)—This section amends current law to allow cities, towns, and
districts greater flexibility in setting interest rates that run on betterments or special assessments,
at any level up to 2%above the rate of borrowing the city, town, or district is paying. It also
makes interest accrual/due date run from the mailing of the bill (not the commitment to the tax
collector).
RMV E-Citations (187-203) —These sections make various changes to c. 90C, regarding motor
vehicle offenses, to implement the new "E-Citations"project jointly administered by EOPSS and
the RMV. The changes amend definitions and other references to paper citations to include
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electronically issued citations; give EOPSS authority to promulgate regulations to set standards
for e-citations and associated equipment requirements; and ensure that both paper and electronic
copies of citations are properly delivered by police departments to the RMV and district courts.
Veterans Service District(204)— Removes the current restriction that prevents two cities from
sharing a veterans' service director. This will provide for greater flexibility in providing for
effective and efficient operation of veteran services.
Municipal Debt/Urban Renewal (206-208)—This amendment repeals a duplicative
requirement regarding approval of debt issued by cities and towns to support housing and urban
renewal projects, as cities and towns are subject to an overall debt limit under G.L. c. 44, § 10,
which may be exceeded with approval of MFOB. In addition, the statute still refers to the
Emergency Finance Board (EFB) rather than the Municipal Finance Oversight Board (MFOB).
Liquor Licenses (209-20, 238, 240)—These sections permit municipalities, except Boston, to
set quotas for liquor licenses issued to facilities (such as restaurants) permitting on-premises
drinking (all such licenses to be non-transferable) and to managers of special outdoor events.
These sections do not change the statutory quota for facilities (such as liquor stores) not
permitting on-premises drinking, though other provisions permitting supplemental licenses
beyond the minimum quota and capping the total number of licenses issued to any person or
corporation will be repealed. Theses sections also make clear that the number of licenses
authorized under current law will continue, unless changed by a municipality pursuant to the
municipal plan permitted under these sections.
Demolition Liens (221)—This section extends the period of time in which a "demolition lien,"
imposed on a property for failure to demolish damaged or dilapidated buildings or structures,
may last. Specifically, this section permits a lien added to real estate tax property in the next
year to extend for the same period of time permitted for the tax lien. If the demolition lien is not
added to a tax until later, it expires on October 1 of the third year after filing of the lien (current
law specifies October 1 of the next year after filing).
Municipal Procurement 3 (222-25,227-28)—These sections amend the "vertical" construction
procurement statute, c. 149, § 44A, to increase the dollar threshold for contracts requiring less-
than-full competitive bidding from $25K to $50K. It also makes procurement methods
consistent with other construction and municipal procurement statutes by modifying the method
for"middle tier" contracts, valued at between $10-50K, to permit public entities to either give
public notification of the contract or use OSD statewide contracts or other"blanket" contracts to
solicit a minimum of three bids. These sections increase the dollar thresholds for contracts
requiring competitive bidding (from $100K to $150K for first tier) and for triggering the
requirement to submit "sub-bids" and "sub-trade" bids.
Unemployment Insurance (230-31)—These sections extend existing exemptions from
unemployment insurance benefits—which are applicable to school employees absent during
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sabbaticals and school vacations with a "reasonable assurance" of returning to work—to
employees who provide services to or on behalf of schools, but are paid by municipalities. These
sections also reduce the amount of unemployment insurance benefits to 65% for employees
receiving government pensions.
Double Poles (232)—This section allows cities and towns to enforce the statutory prohibition on
keeping double poles up after ninety days, after passing a local ordinance authorizing them to do
so. Penalties authorized to be imposed are limited to up to $1,000 per occurrence.
Registers of Probate (233)—Requires registrars of probate to provide assessors with copies of
petitions upon request. Assessors are charged with knowledge of records of registry of deeds
and probate regarding ownership of real estate, but only registrars of deeds are required to
provide them with information on transactions relating to title of real estate within their
municipality. This will allow assessors to access names of deceased so they can check against
their records and set up a mechanism to track and review later for disposition of property.
Small Claims Actions (234, 235)—Amends the jurisdiction of small claims court to hear all
cases to collect locally assessed personal property taxes regardless of amount. This would
provide tax collectors with the ability to make more effective use of lawsuits as a remedy to
collect delinquent property taxes where there is personal liability only, i.e., no lien such as for
personal property taxes.
Federal Public Work Borrowing (236, 237)—Eliminates the requirement that the Governor
approve local borrowing for federally funded public works projects and substitutes the municipal
finance oversight board
Civil Service Exemptions (241)—This section permits municipalities to exempt positions from
civil service rules by vote of the governing body or executive, rather than through special
legislation as is currently required to obtain an exemption from c. 31.
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