HomeMy WebLinkAbout2004-03-22 Board of Selectmen Executive Minutes BOARD OF SELECTMEN EXECUTIVE MINUTES MARCH 22, 2004
EXECUTIVE SESSION: The Executive Session convened at 7:00 p.m.
ATTENDANCE: The following were present: Wendy D. Wakeman, Chairman; Rosemary
Smedile; James Xenakis; Donald Stewart; Mark J.T. Caggiano; Mark Rees, Town Manager;
Ray Santilli, Assistant Town Manager and Town Counsel Thomas Urbelis.
The Board of Selectmen was individually polled and each voted unanimously to move into
Executive Session. Vote approved 5-0.
To Comply with any Provision of Grants- Receiving Requirements and to Discuss Potential
Litigation Strategy.
Chief Stanley informed the Town Manager that the FBI is investigating Crest Associates grants
associated with NEMLEC. Chairman Wakeman reminded the Board members to make no
public comments regarding this item as this is both executive session material and an FBI
investigation.
North Andover had purchased two Emergency Service Units with a total cost of$175,980 in
April of 2003 through NEMLEC and Crest Associates. Through a conversation with Larry
McEntee, Vice President of Sales for Odyssey Automotive in Wharten, New Jersey, he was told
that Crest Associates billed a bogus invoice for$25,980 for additional equipment. Chief Stanley
then did some research and investigation of NEMLEC and North Andover STARS grant
/1 documents. He found the original invoice for$175,980 and a bogus invoice for$25,980 for
additional equipment. Chief Stanley said he did not order any additional equipment. This
invoice was not dated and not signed or initialed by the Chief and was apparently slipped in by
Crest Associates. At that point, Chief Stanley notified NEMLEC President to advise him of the
apparent bogus invoice. A meeting was set up to seek advice with former District Attorney
Kevin Burke. The Chief also contacted Assistant District Attorney Farley and faxed all
documents to him to cooperate with the FBI investigation. NEMLEC has also hired an attorney
to go through their records as of today.
The Town Manager recommended that the Board authorize a special fraud audit on these
grants.
Mark Caggiano made a MOTION, seconded by Rosemary Smedile, to authorize the Town
Manager to engage a special fraud audit for the Police Station of all Grants that were processed
through Crest Associates and advise the US District Attorney. Vote approved 5-0.
Great American Insurance Company.
Thomas Urbelis Town Counsel said that the Town received a Release and Settlement from
Great American Insurance Company in payment of$12,500 to the Town for damage to property
located at 33 Johnson Street.
Mark Caggiano made a MOTION, seconded by Rosemary Smedile, to authorize the Town
Manager to accept the settlement from Great American Insurance Company in payment of
/'� $12,500 to the Town for damage to property located at 33 Johnson Street. Vote approved 5-0.
^ ADJOURNMENT:
Donald Stewart made a MOTION, seconded by Rosemary Smedile, to move out of Executive
Session at 7:45 P.M. Vote approved 5-0.
Respectfully submitted,
Adele J. Johnson, Administrative Secretary