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Home My WebLink AboutBOND COUNSEL LETTER-LOURDES-MAY 2008 ATM Lourdes German 617.239.0157 lgerman @eapolaw.com May 5, 2008 Ms. Lyne Savage Town of North Andover Town Hall 120 Main Street North Andover, Massachusetts 01845 Dear Lyne: (North Andover Bonds) As requested, I suggest the following forms of votes for use at the upcoming town meeting: Vote—Article 8 Voted: that the vote of the Town passed under Article 11 of the of the May 13, 2002 annual town meeting is hereby amended to reduce the amount of the appropriation for Item 26 "Landscape Ph III", from $40,000 to $25,000 and to increase the amount of the appropriation for Item 27 " Building and Grounds Improvement", from $150,000 to $165,000; and that the vote passed under Article 11 is otherwise hereby confirmed as so passed. Vote—Article 14 Voted: to fund the Town Capital Improvement Program as printed under Article 14 of the warrant for the 2008 Annual Town Meeting under the heading "FY 2009 CIP Recommendations" with the following amendments: Amend Line #2, "Roadway (Unaccepted) Improvements" to read "Roadway (Unaccepted)Improvements (Autran Ave)"; Delete Line 2, "Roadway (Unaccepted) Improvements (Autran Ave)" in the amount of$495,000; Decrease Line 8, "Student Management Software" by the amount of$75,000 for a revised total of$75,000; Delete Line 10, "Relocation Main Street Fire Station" in the amount of$400,000; Amend Line 12, "System Re-Engineering" to read"Computer System Re- engineering"; and to appropriate $2,597,600 for the listed projects in the amounts as follows: FY09 CIP Recommendations Fund Town Managers Line# Protect Description Code Recommendations 1 Sidewalk Reconstruction B/N-G $ 50,000 3 Sidewalk Construction B/N-G $ 122,200 4 10 Wheel Dump Truck B/N-G $ 158,000 5 Tractor B/N-G $ 33,000 6 Tractor,Multi Purpose B/N-G $ 141,000 7 Network Connection Upgrade B/N-G $ 31,400 8 Student Management Software B/N-G $ 75,000 9 Fire Arms Replacement B/N-G $ 54,000 11 Electronic EMS Reporting System B/N-G $ 50,000 12 Computer System Re-engineering B/N-G $ 185,000 General Fund Total $ 899,600 13 Truck/Compressor R/A-W $ 38,000 14 Pick up Truck R/A-W $ 35,000 15 Water Main Rehab B/N-W $ 550,000 16 Foxwood Booster Pumping B/N-W $ 325,000 Water Enterprise Fund Total $ 948,000 17 East Side Trunk Sewer B/N-S $ 750,000 R/A-S $ - Sewer Enterprise Fund Total $ 750,000 *Fund Codes spelled out below Funding Recommendation Code Totals Raise and Appropriate-General Fund R&A-G $ - Raise and Appropriate-Water Enterprise R&A-W $ 73,000 Raise and Appropriate-Sewer Enterprise R&A-S $ - Bonds/Notes-General Fund B/N-G $ 899,600 Bonds/Notes-Water Enterprise B/N-W $ 875,000 Bonds/Notes-Sewer Enterprise B/N-S $ 750,000 Total All Capital Projects $ 2,597,600 that to meet this appropriation: (1) $73,000 shall be raised and appropriated from the Water Enterprise Fund, (2)the Treasurer with the approval of the Board of Selectmen is authorized to borrow $2,417,536.66 under Chapter 44 of the Massachusetts General Laws, (3) a portion of the appropriation for item 4 above in the amount of$17,848.80 shall be funded with $17,848.80 that shall be transferred from the following project in the 2 amount set forth below, said sum representing an amount raised and appropriated from the tax levy for the project that is not needed for the project: Amount Project Date/Article Number $17,848.80 Safety Vehicle 5/13/00 (Art. 14,item 14) and (4) a portion of the appropriation for item 4 above in the amount of$89,214.54 shall be funded with the transfers from the following projects in the amounts set forth below, said sums representing excess bond and note proceeds not needed for the completion of the respective project: Amount Project Date/Article Number Date of Bonds $37.10 Animal Control Van 5/10/04 (Art. 11,item 14) 6/15/05 $1,106.74 DPW Equipment 5/4/93 (Art.7,item 20) 9/1/98 $21.76 ADA Sidewalks 11/14/95 (Art. 5) 1/15/97 $277.00 Tractor 5/14/01 (Art. 8,item 10) 4/1/02 $8,719.64 Front End Loader 5/14/01 (Art. 8,item 10) 4/1/02 $10,685.35 Gang Mower 5/13/02 (Art. 11,item 15) 10/1/03 $75.12 Sweeper 5/13/02 (Art. 11,item 18) 10/1/03 $2,904.00 Dump Truck 5/12/03 (Art. 13,item 12) 7/1/05 $6,972.10 Roadways 5/12/03 (Art. 13,item 11) 7/1/05 $1,826.25 Dump Truck 5/12/03 (Art. 13,item 12) 7/1/05 $75.00 Skyworker 5/12/03 (Art. 13,item 13) 7/1/05 $565.00 Dump Truck 5/10/04 (Art. 11,item 2) 6/15/05 $565.00 Dump Truck 5/10/04 (Art. 11,item 3) 6/15/05 $405.00 1-Ton Pick Up 5/10/04 (Art. 11,item 4) 6/15/05 $476.55 2-Ton Pick Up 5/10/04 (Art. 11,item 5) 6/15/05 Amount Project Date/Article Number Date of Notes $1,670.88 Tractor 2007 6/5/06 (Art. 24,item 11) 6/19/07 $49,716.05 Front End Loader 6/5/06 (Art. 24,item 12) 6/19/07 $3,116.00 1-Ton Pick Up 2007 6/5/06 (Art. 24,item 10) 6/19/07. Vote—Article 19 Voted: that $5,803,783 is appropriated to acquire the former Merrimack Valley Federal Credit Union building and land located at 1475 Osgood Street by gift, purchase, eminent domain or otherwise and to renovate such building for use as a police station; that to meet this appropriation the Treasurer with the approval of the Board of Selectmen is authorized to borrow $4,763,000 under Chapter 44 of the General Laws or any other enabling authority; that to meet this appropriation $95,884.37 shall be transferred from the following projects in the amounts set forth below, said sums representing excess bond proceeds not needed for the completion of the respective projects or sums remaining after the respective projects have been abandoned as indicated below: 3 Amount Project Date/Article Number Date of Bonds $76,714.02 Cyr Rec. Building(Abandoned) 11/14/95 (Art. 5) 1/15/97 $10,000.00 Cyr Dog Pound(Abandoned) 11/14/95 (Art. 5) 1/15/97 $5,925.48 Water System(Completed) 5/2/89 (Art. 12,item 14) 1/15/97 $3,244.87 Water Hydraulic System 5/6/91 (Art. 12,item 21) 6/15/95; (Completed) that to meet this appropriation $41,611.09 shall be transferred from the following projects in the amounts set forth below, said sums representing amounts raised and appropriated from the tax levy for each project that are not needed for each respective project: Amount Project Date/Article Number $35,524.38 Town Farm Building 5/13/00 (Art. 14,item 13) $5,158.10 Town Garage Heating System 5/3/99 (Art. 8,item 21) $414.21 Master Plan 5/6/96 (Art. 5) $514.40 Transportation Planning Study 5/4/87 (Art. 44); that the vote of the Town taken pursuant to Article 22 —Appropriation of Funds— Town Owned Buildings into New Police Station taken at the Dissolved Annual Town Meeting for the Town of North Andover held on May 14, 15, 21 and June 4, 2007 is hereby amended to read as follows: "Voted that $903,288 is appropriated for the purpose of rehabilitating a Town owned building or acquiring and rehabilitating a non- town owned building into a New Police Station, and any costs incidental or related thereto; that to meet this appropriation $903,288 shall be transferred from the following projects in the amounts set forth below, said sums representing excess bond proceeds not needed for the completion of the respective project: Amount Project Date/Article Number Date of Bonds $60,000 Fire&Police Station Planning May 11, 1998(Article 34) Sept. 1, 1998 $265,262 Police Station Renovation May 14, 2001 (Article 8#7) April 1,2002 $578,026 New Police Station Design May 13, 2002(Article 11#12) July 1, 2005"; that the vote of the Town passed June 5, 2006 under Article 24 of the warrant for the 2006 Annual Town Meeting is hereby amended such that the purpose of the borrowing authorized pursuant to Item 5 of Article 24 is changed to the following: "Rehabilitating a Town owned building or acquiring and rehabilitating a non-town owned building into a New Police Station" and that such vote is otherwise confirmed as so passed; and that the Board of Selectmen is authorized to take any other action necessary to carry out this project. Vote—Article 22 Voted: that $4,000,000 is appropriated for the design, engineering, construction, furnishing and equipping of a new school facility to be located on town owned land on 4 Route 125/133 Chickering Road adjacent to Atkinson Elementary School and the North Andover Middle School; that to meet this appropriation the Treasurer with the approval of the Board of Selectmen is authorized to borrow $2,068,345 under G.L. c.44 of the General Laws or any other enabling authority and $1,331,655 shall be transferred from the following project, which is hereby abandoned, in the amount set forth below, said sums representing excess bond proceeds remaining in connection with the respective project: Amount Project Date/Article Number Date of Bonds $1,331,655 New Elementary School 5/13/02 (Art. 11,item 3) 10/1/03 that the Board of Selectmen is authorized to contract for and expend any federal or state aid available for the project, including a $600,000 Osgood Landing 40R Grant, and that the Board of Selectmen is authorized to take any other action necessary to carry out this project. Town Counsel should review the vote relating to Article 8 and the portion of the vote relating to Article 14 authorizing the $73,000 appropriation from the Water Enterprise Fund. I note with respect to vote relating to Article 19 that you should refer to our letter dated May 21, 2007 where we advised you about the state and federal tax law issues associated with the sale of the existing police station and the use of such funds for a new capital project. Additionally, the entire amount of the appropriation for the project must also be inserted in such vote. I understand that there is to be no Proposition 2'/2 exemption vote with respect to any of the borrowings. Please call me if there are any questions about the suggested proceedings. Yours truly, Lourdes German LG/sad cc: Joyce Bradshaw David Eisenthal BOS 111 12274291.2 5