January 9, 2007
The regular meeting of the Board of Selectmen was held at 7:30 p.m. in the Sharon Town Offices, with Chair William A. Heitin and Selectmen Walter Joe Roach, Richard A. Powell and Town Administrator, Benjamin E. Puritz.
The meeting was called to order at 7:35 p.m.
Chair William A. Heitin recognized Boy Scout Troop 95 as being in attendance at the Board of Selectmen meeting. They are working on their merit badge in “Communications” and were here to observe the operation of Government at work.
Appoint Marshall Bradstreet as Recreation Director
Marshall Bradstreet of Watertown, MA will be the new Sharon Recreation Director. On January 16, 2007, Mr. Bradstreet will begin his employment for the Town of Sharon as Recreation Director. His starting salary will be $63,000, standard benefits of Town employers and employees and will include a Town vehicle for Town business only and not for personal use.
VOTED: (Roach/Powell) Voted unanimously to appoint Marshall Bradstreet as Recreation Director of Sharon with a starting salary will be $63,000, standard Town benefits and will include a Town vehicle for Town business only and not for personal use.
Minutes
VOTED: (Roach/Powell) Voted unanimously to approve the Regular Minutes of January 2, 2007 and Executive Session Minutes of December 19, 2006 and January 2, 2007.
Consultant Fees to be paid by Developer
In accordance with the provisions of General Laws, Chapter 44, section 53G, the rules of this Board, and the terms of the representations made to this Board by or on behalf of Intoccia, the
Board votes to engage the services of Gelerman and Buschmann, P.S., to act as the legal consultant to the Board with regard to Intoccia proposed development on property . The Board also votes in accordance with the provisions of General Laws, Chapter 44, section 53G, the rules of this Board, and the terms of the representations made to this Board by or on behalf of Intoccia to engage the services of a consultant to advise the Board on the fiscal and related impacts of the proposed project, the cost of such services to be paid by Intoccia. Said consultant shall be selected by the Board in its reasonable discretion. The Board determines that the initial sum of $15,000 should be placed with the Town Treasurer to be expended in accordance with the provisions of G.L. ch 44, section 53G.
VOTED: (Roach/Powell) Voted unanimously to engage the services of Gelerman and Buschmann, P.S., to act as the legal consultant to the Board with regard to Intoccia proposed development on property. The area bounded to the east by the Right of Way for Interstate Highway 95, to the north by south Walpole Street, to the west by Old Post Road, and to the south by South Main Street and/or the Right of Way for Interstate Highway 95. The Board also votes in accordance with the provisions of General Laws, Chapter 44, section 53G, the rules of this Board, and the terms of the representations made to this Board by or on behalf of Intoccia to engage the services of a consultant to advise the Board on the fiscal and related impacts of the proposed project, the cost of such services to be paid by
Intoccia. Said consultant shall be selected by the Board in its reasonable discretion. The Board determines that the initial sum of $15,000 should be placed with the Town Treasurer to be expended in accordance with the provisions of G.L. ch 44, section 53G.
Cancelling Board of Selectmen Meeting of January 23, 2007
VOTED: (Heitin/Roach) Voted unanimously to cancel the Board of Selectmen Meeting of January 23, 2007.
Investment Policy
Chair William Heitin reviewed the Town of Sharon Investment Policy and also with the Town Treasurer. The following is the “Investment Policy”:
Policy:
It is the policy of the Town of Sharon to invest public funds in a manner that will provide the highest risk rated return while meeting the daily cash flow demands of the Town and conforming to all Commonwealth of Massachusetts and Town By-laws governing the investment of public funds.
Scope:
This investment policy applies to all financial assets of the Town of Sharon. These funds are accounted for in the Town's "General Purpose Financial Statements and Supplementary Schedules" and include:
2.1 Funds:
2.1:1 General Fund
2.1.2 Special Revenue Funds
2.1.3 Capital Projects Funds
2.1.4 Enterprise Funds
2.1.5 Trust and Agency Funds
This policy is also applicable to any and all Funds established after the establishment of this policy. Unless otherwise restricted by State Statue or Town By-Law, all investments shall be commingled to reduce management and administration costs and ensure management and operating efficiencies. Separate investment accounting shall be performed for each respective Fund.
Prudence:
Investments shall be made with judgment and care under circumstances then prevailing which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of capital as well as the probable income to be derived.
3.1: The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's risk or market price fluctuation, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.
Objective:
The primary objectives, in priority order, of the Town of Sharon's investment activities shall be:
4.1 Protection: Protection of principal is the foremost objective of the investment program. Investments of the Town of Sharon shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To, attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio.
4.2 Liquidity: The Town of Sharon's investment portfolio will remain sufficiently liquid to enable the Town to meet all operating requirements that might be reasonably anticipated.
4.3 Return on investment: The Town of Sharon's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the Town's investment risk constraints and the cash flow characteristics of the portfolio.
Delegation of Authority:
Authority to manage the Town of Sharon's investment program is derived from the following: General Laws of the Commonwealth of Massachusetts Chapter 41, Sections 36 and 46, and Chapter 44, Sections 54 and 55. The Selectmen have overall primary responsibility and decision making capacity for the overall investment program. Daily management responsibility for the investment program is hereby delegated to the Town Treasurer, who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, collateral/depository agreements, and banking service agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No such person
may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Town Treasurer. The Town Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. Change in delegation of authority, as needed, will be made by the Board of Selectmen.
Ethics and Conflicts of Interest:
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Board of Selectmen any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose to the Board of Selectmen or Town Administrator any large personal financial/investment positions that could be related to the performance of the Town's portfolio. Employees and officers shall subordinate their personal investment transactions to those of the Town, particularly with regard to the time of purchases and sales.
Authorized Financial Dealers and Institutions:
The Town Treasurer will maintain a list of financial institutions authorized to provide investment services. In addition, a list will also be maintained of approved security broker/dealers selected by credit worthiness, who maintain an office in the Commonwealth of Massachusetts. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Net Capital Requirements for Broker and Dealers). No public deposit shall be made except in a qualified public depository as established by federal and state regulations.
All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Town Treasurer with the following: audited financial statements, proof of National Association of Security Dealers certification, or proof of federal/state registration. A periodic review of the financial condition and registrations of qualified bidders will be conducted by the Town Treasurer. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which the Town invests.
Authorized & Suitable Investments:
The Town of Sharon is empowered by statute to invest in the following types of securities both insured, by the FDIC or other government agency, and uninsured:
Demand deposit accounts
Time deposit accounts
Money market accounts
Certificates of deposit
Repurchase agreements
U.S. Treasury instruments
U.S. Governmental Agency securities
Collateralization:
The Town Treasurer shall require collateralization if market conditions or economic conditions warrant the protection of public funds be secured at the cost of return on investment. If an investment is deemed to require collateralization, the collateralization level will be not less than 102% of the market value of principal and accrued interest.
The Town chooses to limit collateral to the following:
Cash
U.S. Treasuries instruments
U.S. Governmental Agency securities
Collateral will always be held by an independent third party with whom the entity or the Town has a custodial agreement. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the entity and retained. The right of collateral substitution is granted only upon approval of the Town Treasurer.
Safekeeping and Custody:
All security transactions, including collateral for repurchase agreements, entered into by the Town of Sharon shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third party custodian designated by the Town Treasurer and evidenced by safekeeping receipts.
Diversification:
The Town of Sharon will diversify its investments by security type and institution. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the Town's total investment portfolio will be invested in a single security type or with a single financial institution.
Maximum Maturities:
To the extent possible, the Town of Sharon will attempt to -match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the Town will not directly invest in securities maturing more than one year from the date of purchase. However, the Town may collateralize its repurchase agreements using longer-dated investments not to exceed five years to maturity.
Internal Control:
The Town Treasurer shall establish internal controls with respect to policies and procedures. Both qualitative and quantitative assessments of investment practice with respect to safety, liquidity, and return on investment will be reported to the Board of Selectmen.
14.0 Performance Standards:
The investment portfolio will be designed to obtained a market average rate of return during budgetary and economic cycles, taking into account the 'Town of Sharon's investment risk constraints and cash flow needs.
14.1 Market Yield (Benchmark): The Town of Sharon's investment strategy is passive. Given this strategy, the basis used by the Town Treasurer to determine whether market yields are being achieved shall be the average three-month U.S. Treasury bill rate.
15.0 Reporting:
Annually the Town Treasurer is charged with the responsibility of including an Investment Report on investment activity and returns in the Town of Sharon's Financial Report. Reports will include a list of securities, over-all yield, market sector breakdown, and investment earnings.
16.0 Investment Policy Adoption:
The Town of Sharon's investment policy shall be adopted by resolution of the Town of Sharon Board of Selectmen. The Board of Selectmen will review all aspects of this policy on an as needed basis as part of the review of all Selectmen’s policies, but not less than every three years. Any modifications made thereto must be approved by the Board of Selectmen.
Delegation of Authority
The following individual(s) have the primary daily management authority to enter into the following agreements and/or perform the following activities for the Town of Sharon:
Repurchase Agreements: Town Treasurer
Collateral/Depository Agreements: Town Treasurer
Banking Service Agreements: Town Treasurer
Safekeeping Agreements: Town Treasurer
Purchase of U.S. Treasury Instruments: Town Treasurer
Purchase of U.S. Governmental Agency Securities: Town Treasurer
Creation of Demand Deposit Account: Town Treasurer
Wire Transfer Agreements: Town Treasurer
The following concerns were brought up by the Finance Committee: Separation of Funds; Funds received should be invested as soon as possible; How does this policy compare with other towns; Delegation of authority. Only Town Treasurer is listed; How is money invested; How do we leverage State statue/regulations to received more financial benefit; Financial Report and Review. Mr. Heitin stated that “the entire investment policy, in fact, is driven by state stature.” Heitin also commented that “this policy has not been changed since 1997 when it was put in place” and proceeded further that “What we do is monitor state statute to see if there are any changes or ability to tweak (the policy within the strict regulations of state),” The management and
direction of the policy is fully controlled by the Board of Selectmen. The Board has the authority to delegate its authority to others, such as the Town Treasurer.
VOTED: (Powell/Roach) Voted unanimously to adopt the Town of Sharon Investment Policy with an amendment stipulating not more than three years pass between two formal reviews of the policy.
Request permission to place markers and/or rock markers - Massapoag Yacht Club
The Board reviewed the annual request from the Massapoag Yacht Club for permission to place markers and/or rock markers on the Lake.
VOTED: (Powell/Roach) Voted unanimously to authorize the Massapoag Yacht Club to place
markers and/or rock markers on the lake, based on the State Uniform Markers Systems, as they have done in the past.
Banner Request
The Board reviewed a request for a banner from the Brotherhood of Temple Israel.
VOTED: (Powell/Roach) Voted unanimously to approve a banner for Brotherhood of Temple Israel for the dates January 29 to February 3, 2007.
New Business/Other Business
Selectman Roach reported on his conversation with Peter O’Cain, Assistant Engineer, re the traffic lights in front of the Town Hall specifically when in operation, the problem of vehicles blocking the Fire Department driveway obstructing passage of Fire Department vehicles.
The Engineering Department is requesting permission to put lights on flashing except during train rush hours until the problem is addressed
VOTED: (Heitin/Roach) Voted unanimously to give the Engineering Department permission to place the lights on flashing except during train rush hours until the problem is addressed.
Selectman Roach also brought up parking spots in front of the Wilber School. In the winter “No Parking”signs during snow emergency should be installed.
VOTED: (Heitin/Roach) Voted unanimously to have “No Parking”signs installed during snow emergency in front of the Wilber School.
Selectman Roach brought up that the Board received information packages regarding adverse biological effects from fluorides. It was the consensus of the Board that this should be forwarded to the Board of Health for their input and response to the Board of Selectmen
Executive Session
VOTED: (Heitin/Roach) Voted unanimously to enter into Executive Session to discuss real property acquisition, matters of pending litigation, collective bargaining, personnel matter, and at the conclusion thereof to adjourn for the evening.
The Board adjourned to Executive Session at 8:10 p.m.
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