Office of the TELEPHONE: (508) 841-8508 BOARD OF SELECTMEN FAX: (508) 842-0587 [email protected]
TOWN OF SHREWSBURY Board of Selectmen Meeting Board of Selectmen’s Meeting Room Richard D. Carney Municipal Office Building 100 Maple Avenue Shrewsbury, Massachusetts 01545-5398
Tuesday, December 11, 2018 - 7:00 PM MINUTES
Present: Mr. John Lebeaux, Chairman, Mr. Maurice DePalo, Vice Chairman, Ms. Moira Miller, Clerk, Mr. James Kane, Selectman, Ms. Beth Casavant, Selectman Also Present: Mr. Kevin Mizikar, Town Manager, Kristen Las, Assistant Town Manager Finance Committee Members in attendance: Patrick Pitney, Gene Buddenhagen, John Cygelnik, Judy Vedder, Hannah Kane Retirement Board Members in attendance: Alice Ferro, Thomas Kennedy, Mary Thompson
Mr. Lebeaux called the meeting to order at 7:00 pm.
Preliminaries: 1. Approve bills, payrolls and warrants On a motion by Ms. Miller, seconded by Mr. DePalo, the Board unanimously voted to approve Warrants 1941, 1944, 1946, 1943 and 1948 as presented.
2. Approve Minutes of November 27, 2018 On a motion by Mr. DePalo, seconded by Ms. Casavant, the Board unanimously voted to approve the minutes as written.
3. Announcements The Board held a moment of silence for Christopher Roy, Shrewsbury resident, and Worcester Firefighter who died in the line of duty in Worcester. Mr. Kane updated the Board on the acquisition of Glavin for the site of the new Beal School and that the Beal Committee awarded a contract to Fontaine Brothers as a general contractor. Mr. Lebeaux announced that this Saturday the Wreaths Across America will take place at Mountain View Cemetery from Noon to 1:00pm.
4. Town Manager’s Report Mr. Mizikar stated that the Town has entered into the budget process for the next fiscal year and has also been awarded a Community Compact grant award and Hazardous Materials Preparedness grant. Mr. Mizikar also addressed the water quality issues such as the chlorine odor at the tap.
Meetings/Hearings: 5. 7:03 PM – Meeting with Laurie Gaudet, Town Treasurer, to review and act to award and sign temporary Bond Anticipation Notes and associated financing documents for the Beal Early Elementary School Ms. Gaudet appeared before the Board. Mr. Mizikar briefed the Board on the Bond Anticipation Notes. Ms. Gaudet reviewed the figures. On a motion by Mr. Kane, seconded by Mr. DePalo, the Board unanimously voted to authorize the issuance of the Ban to TD Securities and voted the following:
Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 2 of 11
Voted: that we hereby determine, in accordance with G.L. c. 70B, that the amount of the cost of the school feasibility study project authorized by a vote of the Town passed on October 22, 2018 (Article 6) not being paid by the school facilities grant is at least $6,500,000 and we hereby approve of the issuance of notes and bonds in such amount under said G.L. c. 70B.
Further Voted: to approve the sale of a $6,500,000 3.00 percent General Obligation Bond Anticipation Notes (the “Notes”) of the Town dated December 19, 2018, and payable July 19, 2019, to TD Securities (USA) LLC at par and accrued interest, if any, plus a premium of $34,450.00.
Further Voted: that in connection with the marketing and sale of the Notes, the preparation and distribution of a Notice of Sale and Preliminary Official Statement dated November 29, 2018, and a final Official Statement dated December 6, 2018, each in such form as may be approved by the Town Treasurer, be and hereby are ratified, confirmed, approved and adopted.
Further Voted: that the Town Treasurer and the Board of Selectmen be, and hereby are, authorized to execute and deliver a significant events disclosure undertaking in compliance with SEC Rule 15c2-12 in such form as may be approved by bond counsel to the Town, which undertaking shall be incorporated by reference in the Notes for the benefit of the holders of the Notes from time to time.
Further Voted: that we authorize and direct the Town Treasurer to establish post issuance federal tax compliance procedures in such form as the Town Treasurer and bond counsel deem sufficient, or if such procedures are currently in place, to review and update said procedures, in order to monitor and maintain the tax-exempt status of the Notes.
Further Voted: that each member of the Board of Selectmen, the Town Clerk and the Town Treasurer be and hereby are, authorized to take any and all such actions, and execute and deliver such certificates, receipts or other documents as may be determined by them, or any of them, to be necessary or convenient to carry into effect the provisions of the foregoing votes.
6. 7:05 PM – Meeting with Delilah Tuccio, proposed manager of Iandoli Austins II, dba Austin Liquors, 20 Boston Turnpike Road, regarding a change of manager to their all alcohol package store license Ms. Tuccio appeared before the Board. On a motion by Mr. DePalo, seconded by Ms. Miller, the Board unanimously voted to approve the change of manager application.
7. 7:10 PM – Joint meeting with the Retirement Board and the Finance Committee, and Dan Sherman, Sherman Actuarial Services, to review the most recent Pension System Valuation Report and other Post- Employment Benefit (OPEB) Analyses Members of the Finance Committee, Retirement Board, and Daniel Sherman of Sherman Actuarial Services appeared before the Board. Mr. Sherman reviewed the 2018 Shrewsbury Retirement report. The Town is in position to reach its goal of the retirement system being fully funded prior to its internal deadline of FY2022. Members of the Finance Committee asked questions and discussed the report and the current market. Mr. Sherman then reviewed the 2018 Shrewsbury Other Post Employment Benefits report. The Town’s funding level as a percentage of its total annual salary expenses is very strong, 72%. The Board thanked those in attendance.
8. 7:15 PM – Meeting to discuss implementation and revision to certain fees for services: a. Department of Public Works: Jeffrey Howland, DPW Director and Andrew Truman, Senior Civil Engineer to discuss Stormwater, Trench, Street Opening and Driveway Permits Vincent Thai, Compliance Engineer, Andrew Truman, Senior Civil Engineer, and Jeffrey Howland, DPW Director appeared before the Board. Mr. Howland stated that there is several fees within the DPW that the Town does not Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 3 of 11
currently have. The Engineering department looked at similar town’s fee structure to establish proposed fees. The Board discussed street closings, and current driveways meeting ADA accessibility standards, accessing public ways in the safest manner and allow the Town to monitor erosion control. The Board expressed their approval and interest in moving forward on the street opening and driveway permits and discussed a general by-law governing the slopes and grades of driveways. Mr. Howland reviewed stormwater regulations. For any project disturbing over 5,000 square feet of land, the contractor is required to submit a stormwater and erosion control plan which also includes a waste control plan. Mr. Howland reviewed stormwater utility and the requirements to meet the NPEDS permit criteria. Mr. Howland expressed that in order to properly manage the Town’s obligations under the Federal Law two full time employees must be dedicated to these efforts. The Sewer Commissioners, who are charged with enforcing stormwater regulations, will hold public hearing on stormwater fees December 18, 2018. The Board expressed that they want to make a strong effort to inform residents of these changes.
b. Building Inspection: Wiring Fees
Mr. Mizikar stated that wiring fees will remain the same, however they will be transitioning from SELCO to the Town on January 1, 2019.
New Business: 9. Review and act on the 2019 License Renewals to include the following license types: Alcohol, Common Victualler, Entertainment (Sunday and Weekday), Bowling Alleys, Billiard Tables, Automatic Amusements, Auto Dealers, Livery, Auction, Auctioneer, Lord’s Day, and Seasonal Dancing (see attached list). Mr. Kane disclosed that his daughter is employed at Ski Ward prior to voting for license renewals. On a motion by Ms. Miller, seconded by Mr. Kane, the Board unanimously voted to approve all renewals and issue licenses contingent upon all payment and requested paperwork being received.
10. Review and act on the matter of the “One Free Bag” PAYT program and Christmas tree pickup On a motion by Mr. Kane, seconded by Ms. Casavant, the Board unanimously voted to approve one free 35 gallon bag for residents on December 26th-December 31st, and a single real Christmas tree per household, free of snow and ice, not frozen to the ground and clearly visible to the collection crew from December 26th to January 26th.
11. Review and act to set an early closing for the Municipal Office Building on Monday December 24, 2018 at noon On a motion by Mr. DePalo, seconded by Ms. Miller, the Board unanimously voted to close the municipal office building at noon on December 24, 2018.
12. Review and act on the road race request from Patricia McCaffrey, 617 Lexington Street, Waltham, for the 7th Annual Michael McCaffrey Hope Challenge to take place on Saturday March 30, 2019 beginning and ending at Sherwood Middle School On a motion by Ms. Miller, seconded by Mr. Kane, the Board unanimously voted to approve the request contingent on police approval.
13. Review and act on one (1) member appointment to the Zoning Board of Appeals for a two year term to expire on June 30, 2020, subject to the approval of the decision of the Attorney General in reference to Article 9 of the October 22, 2018 Special Town Meeting On a motion by Ms. Miller, seconded by Ms. Casavant, the Board unanimously voted to appoint Maribeth Lynch of 21 Westwood Road as a member of the ZBA for a two year term contingent effective upon receipt of the decision from the Attorney General relative to Article 9 of the October 22, 2018 Special Town Meeting. Maribeth currently served Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 4 of 11
as an associate member on the ZBA which will result in a vacancy for an associate member, to be filled at the next Board of Selectmen meeting on January 8, 2019.
14. Review and act to appoint Sarah Lividini, 76-2 South Quinsigamond Avenue, to the Shrewsbury Cultural Council for a three year term to expire on February 10, 2021 On a motion by Mr. DePalo, seconded by Mr. Kane, the Board unanimously voted to appoint Sarah Lividini to the Cultural Council for a three year term to expire on February 10, 2021. 15. Review and act to authorize the Town Manager to sign the PEG Access Programming and Services Agreement with Shrewsbury Media Connection Inc. Mr. Peter Collins, President, and Mr. Alden Harris, Treasurer, were in the audience and appeared before the Board. Mr. Collins stated that there are a few technical issues around this agreement that they want to bring to the Board’s attention. The original plan was to transfer SMC from SELCO to a private organization, and to have a management team made up of the existing general manager and another employee. In late October, the way it was structured for them to come over may not be beneficial for them and they may need to hire a new executive team. This transition will bring the agreement over the first of January which will not allow enough time to hire a new executive team. There is also a pending FCC ruling regarding whether cable companies have to provide funding for peg access. The SMC Advisory Board is focused on generating a viable revenue stream and are requesting some type of delay or consideration could be worked out to have a fair shot to make this process successful. Ms. Miller stated that with the signing of this agreement that the Manager would continue to find remedies for these situations. On a motion by Ms. Miller, seconded by Ms. Casavant, the Board unanimously voted to authorize the Town Manager to sign the agreement.
16. Review and act to authorize the Town Manager to sign a Host Community Agreement with Pharmacannis Massachusetts Inc., for a Medical and Recreational Retail Marijuana Dispensary and vote to issue a letter of non-opposition for Registered Medial Dispensary (RMD) Mr. Lebeaux serves on the statewide Cannabis Advisory Board and recused himself pursuant to M.G.L 268A. Mr. DePalo took over the remainder of the meeting. Mr. Mizikar stated that he has had successful negotiations with PharmaCann and they have been very favorable to work with. The proposed HCA will include the state allowed 3% community impact fee made on a quarterly basis in addition to excise tax and local taxes from this company and any successors, will use local employment, and the Town will conduct appropriate audits to ensure we are receiving the correct revenue. PharmaCann also agrees to provide immediate notification to the Police Department if there are any discrepancies as it results to operations and security, and the Town will continue to receive notifications throughout life of business as they change their on site manager. Pharmacann is looking to come to the market and be able to provide product to the market and look to be operating within 6 months. They also need to seek approval for a special permit and carry forth after to get State approval. If those requirements aren’t met, the Board will be able to terminate the agreement. The HCA is a five year agreement. On a motion by Mr. Kane, seconded by Ms. Miller, the Board unanimously voted to authorize the Town Manager to sign a Host Community Agreement with Pharmacannis Massachusetts Inc., for a Medical and Recreational Retail Marijuana Dispensary and vote to issue a letter of non-opposition for Registered Medial Dispensary (RMD).
Correspondence: The Board of Selectmen will review and possibly act on the following:
17. Letter, dated November 9, 2018, from Michael Sweeney, Massachusetts State Lottery Commission, re: Nicks Golden Pizza Keno Monitor- so noted 18. Email. dated November 21, 2018, from Preston Karp, 2 Medieval Road, re: Call to Action- The Fight To End Hunger Donation Bins- so noted 19. Email, dated November 26, 2018, from Leslie Kenney, 19 Heywood Street, re: Water Quality- so noted 20. Letter, dated December 1, 2018, from Barbara Bertelli, 28 Elm Street, re: Request to Install Truck Restriction Sign on Bailey Road and Route 9 - Send to Police and DPW – add to pending Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 5 of 11
21. Email, dated December 5, 2018, from Kevin Krasnecky, CMRPC, 1 Mercantile Street, Suite 530, Worcester, re: Public Meeting Notice- so noted 22. Email, dated December 5, 2018, from David Snowdon, Management Analyst, re: Solid Waste Hauling Contract Update- Mr. Mizikar- have issued notice of intent to award and will work through contract negotiations shortly 23. Memo, dated December 6, 2018, from Valerie Clemmey, Administrative Assistant, re: Licenses Not Renewed for 2019-so noted
2019 License Renewals On-Premise All Alcohol Licensee Name D/B/A Name Business Address AMF Bowling Centers, Inc. Bowlero Shrewsbury 405 Boston Turnpike 81 Clinton Pub, LLC Billy's Pub 81 Clinton Street Bauhinia, Inc. Bauhinia Restaurant 271 Grafton Street Ramandeep, Inc Bollywood Grill 97 Boston Turnpike BW-Shrewsbury Operations LLC Buffalo Wild Wings Grill & Bar 476 Boston Turnpike Burtons Grill of Shrewsbury, LLC Burtons Grill & Bar 193 Boston Turnpike Unit 4110 Chipotle Mexican Grill of Colorado LLC Chipotle Mexican Grill 97 Boston Turnpike Chumlee's Restaurant, Inc. Chumlee's Restaurant, Inc. 50 Boston Tpke. Baltas Corp Dean Park Grill & Pizza 745 Main Street Dinky's Restaurant Dinky's Restaurant 70 Clinton Street Ripal, Inc. G. Willickers Restaurant 896 Hartford Tpke. Half Moon Brothers LLC Half Moon Tavern 1 Pineland Ave Shrewsbury Wings, LLC Hooters Restaurant 291 Boston Turnpike KBB Enterprises, LLC Imperial Buffet 380 Maple Avenue Old Shrewsbury Restaurant Jimmy's Tavern & Grill 50 Boston Turnpike 3 Brothers Hospitality, Inc. Lakeside Bar & Grille 97 Boston Turnpike Legend's Lounge LLC Legend's 3 Tennis Drive Three Nguyen Worcester, Inc. Osaka 20 Boston Turnpike RJ Xavier, LLC Pho Sure 100 Boston Turnpike SAWA, Inc. SAWA Steakhouse & Sushi 551 Boston Turnpike Tavern in the Square Shrewsbury, LLC Tavern in the Square 193 Boston Turnpike Unit 6210 Willy's Steakhouse/Willy's Doright Steakhouse, Inc. Tuscan Trattoria 2 Grafton Street
Whole Foods Market Group, Inc, The Borgatti Bar at Whole Foods 193 Boston Turnpike, Unit 1100 On-Premise Beer & Wine Licensee Name D/B/A Name Business Address Shrewsbury Burritos, LLC Moe's Southwest Grill 61 Boston Turnpike Ski Ward, Inc. Ski Ward Ski Area 1000 Main Street 44 PHOUCHANHKEN CORPORATION Thai Place 50A Boston Turnpike Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 6 of 11
Off-Premise All Alcohol Licensee Name D/B/A Name Business Address Iandoli Austin's II Austin Liquors 20 Boston Tpke. Edgemere Discount Wine & Manjulaben S. Corporation Spirits 12-12A Hartford Tpke. Thomas A. Hickey, Inc. Hickey Town Liquors 40A Maple Ave. Price Chopper Operating Co. of MA Price Chopper #229 733 Boston Turnpike Veer Zala Inc. Star Liquor 507 Boston Turnpike Eastbrook Inc. Sperry's Super Liquors 299 Hartford Tpke. Massachusetts Fine Wine & Spirits, LLC Total Wine & More 87 Boston Turnpike Turnpike Discount Liquors, Inc. Turnpike Discount Liquors 166 Boston Turnpike Whole Foods Market Group, Inc, Whole Foods Market 193 Boston Turnpike, Unit 1100 Off-Premise Beer & Wine Licensee Name D/B/A Name Business Address 524 Rte 9, LLC Sunoco 7215 524 Boston Turnpike All Alcoholic Beverage Club License Licensee Name D/B/A Name Business Address Italian American Victory Club Italian American Victory Club 26 Dewey Rd. Adelphi, Inc. Knights of Columbus 206 South Quinsigamond Ave. Lit.Charitable Society - Maronis Lit.Charitable Society - Maronis Park Park 52 So. Quinsigamond Ave. Scandinavian Athletic Club Scandinavian Athletic Club 432R Lake Street Shrewsbury Sportsmen's Club, Inc. Shrewsbury Sportsman Club 304 Boylston Street Farmers Winery Pouring Permit Licensee Name D/B/A Name Business Address Broken Creek Vineyard, LLC Broken Creek Vineyard, LLC 614 South Street Common Victualler Licensee Name D/B/A Name Business Address AMF Bowling Centers, Inc. Bowlero Shrewsbury 405 Boston Turnpike 3 Brothers Hospitality, Inc. Lakeside Bar & Grille 97 Boston Turnpike 44 PHOUCHANHKEN CORPORATION Thai Place 50A Boston Turnpike 524 Rte 9, LLC Sunoco 7215 524 Boston Turnpike 81 Clinton Pub, LLC Billy's Pub 81 Clinton Street 91293 Nikita, Inc. Nick's Golden Pizza and More 271 Grafton St. Ag United Incorporated 7-Eleven #34425A 38 Maple Avenue B.GOOD LLC B.GOOD LLC 120 Boston Turnpike Baltas Corp Dean Park Grill & Pizza 745 Main Street Bauhinia, Inc. Bauhinia Restaurant 271 Grafton Street Bokhary Fast Food Kabob & Tondoor 1000 Boston Turnpike Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 7 of 11
Dunkin Donuts - 866 Hartford Bostonhill Donuts, LLC Turnpike 866 Hartford Turnpike Brody's Diner Brody's Diner 308 Hartford Tpke. Burgantino, Inc. Inter. House of Pancakes 70 Boston Tpke. Burtons Grill of Shrewsbury, LLC Burtons Grill & Bar 193 Boston Turnpike Unit 4110 BW-Shrewsbury Operations LLC Buffalo Wild Wings Grill & Bar 476 Boston Turnpike CAP Enterprises Inc. Regatta Whole Foods 6 Hartford Tpke. Chipotle Mexican Grill of Colorado LLC Chipotle Mexican Grill 97 Boston Turnpike Chumlee's Restaurant, Inc. Chumlee's Restaurant, Inc. 50 Boston Tpke. Colbea Season's Corner Market 604 Hartford Turnpike D.E Foods, LLC Kentucky Fried Chicken 21 So.Quinsigamond Ave. Dee's Place Dee's Place 1 Pineland Ave. Dinky's Restaurant Dinky's Restaurant 70 Clinton Street Willy's Steakhouse/Willy's Doright Steakhouse, Inc. Tuscan Trattoria 2 Grafton Street Dufficy Enterprises, Inc. Dominos Pizza 246 Boston Tpke. Dunkin Donuts (118 Boston Turnpike) Dunkin Donuts 118 Boston Tpke. Dunkin Donuts (271 Boston Turnpike) Dunkin Donuts 271 Boston Tpke. Dunkin Donuts (32-36 Maple Avenue) Dunkin Donuts 32-36 Maple Avenue Flynn's Truck Plaza Flynn's Truck Plaza 307 Hartford Turnpike Gerado's Italian Bakery Inc. Gerado's Bakery 87-97 Boston Turnpike Rd. Global Montello Corp Honey Farms #3817 98 Boston Tpke. Half Moon Brothers LLC Half Moon Tavern 1 Pineland Ave Hebert Confections Hebert Retail 575 Hartford Tpke. iCraze Yogert, Inc. iCraze Frozen Yogert 50 Boston Turnpike Jason and Jonir Inc. Pepperoni Express 344 Boston Turnpike JMC Subway Company Subway 373 Maple Avenue KBB Enterprises, LLC Imperial Buffet 380 Maple Avenue Legend's Lounge LLC Legend's 3 Tennis Drive Bean Counter Cake & Pastry Lombardi Bakery Service Shop 288 Boston Turnpike Lombardi Bakery Service Café Noir 307 Grafton Street, Suite 101 Macey's Café Inc. Macey's Café 274 South Street Mass Burgers Shrewsbury, LLC Five Guys Burgers & Fries 20F Boston Turnpike Mirch Group, LLC Chinese Mirch 88-120 Boston Turnpike, Suite J5 NAKA Enterprises LLC Shrewsbury Pizzaria 560 Main Street Northeast Foods, LLC Burger King - #3638 53 Boston Tpke. Nouria Energy Retail, Inc. Maple Ave. Shell 29 Maple Avenue Nouria Energy Retail, Inc. Shrewsbury Shell 271 Boston Tpke. Novangelo Corp Edgemere Diner 51 Hartford Turnpike Old Shrewsbury Restaurant Jimmy's Tavern & Grill 50 Boston Turnpike Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 8 of 11
Panera Bread Panera Bread 50 Boston Turnpike Papa Gino's, Inc. Papa Gino's 20 Boston Tpke. Poke Enterprises LLC Atlantic Poke 193 Boston Turnpike #4140 Price Chopper Operating Co. of MA Price Chopper #229 733 Boston Turnpike Qdoba Mexican Eats Store Qdoba Restaurant Corporation #1748 193 Boston Turnpike Ramandeep, Inc Bollywood Grill 97 Boston Turnpike Ripal, Inc. G. Willickers Restaurant 896 Hartford Tpke. RJ Xavier, LLC Pho Sure 100 Boston Turnpike RT Foods, Inc. Napoli Italian Deli & Catering 79 South Quinsigamond Avenue SAWA, Inc. SAWA Steakhouse & Sushi 551 Boston Turnpike Shrewsbury Burritos, LLC Moe's Southwest Grill 61 Boston Turnpike Dunkin Donuts - 307 Hartford Shrewsbury Donuts, Inc. #2 Tpk. 307 Hartford Tpke. Shrewsbury Gas & Market Shrewsbury Gas & Market 22 Maple Avenue Shrewsbury Wings, LLC Hooters Restaurant 291 Boston Turnpike Ski Ward, Inc. Ski Ward Ski Area 1000 Main Street Starbucks Starbucks 193 Boston Turnpike #2100 Sunset Beach Sunset Beach 64 Old Faith Road Stop & Shop Supermarket Super Stop & Shop Company #091 539 Boston Tpke. Tavern in the Square Shrewsbury, LLC Tavern in the Square 193 Boston Turnpike Unit 6210 Three Nguyen Worcester, Inc. Osaka 20 Boston Turnpike Udupi Udupi 378 Maple Ave Uptown Deli & Café Uptown Deli & Café 1000 Boston Tpke. Village Pizza Village Pizza 16 Maple Avenue Weepin' Willie's Weepin' Willie's 160 Boston Turnpike Whole Foods Market Whole Foods Market Group, Inc, The Borgatti Bar at Whole Foods 193 Boston Turnpike, Unit 1100 Yogi Darshan, Inc. Honey Dew Donuts 604 Hartford Turnpike Class 1 and Class 2 Auto Dealers Licensee Name D/B/A Name Business Address RK Enterprises Inc A-Tech Automotive 431-433 Boston Tpke. Auto Center Repair & Towing 47-49 Hartford Tpke. Auto Sport Inc. 294 Boston Turnpike MBRAN Inc Best Auto Body 753 Grafton Street Choice Auto Center LLC 429 Boston Tpke. Classic Motorcar Barry Ward 129 Hartford Tpke. Clinton Motorcars, LLC 171 Hartford Turnpike The Dumpster Divers, LLC 726 Grafton Street Ellis 152 Hartford Tpke. Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 9 of 11
Fiore's 882 Boston Tpke. Edward Flynn Flynns Truck Plaza LLC 307 Hartford Tpke. RJ Foley Inc Foley Motorsports 894 Boston Tpke. Jesco, Inc. 167 Memorial Drive Foco, Inc Le Limo Limo 224B Cherry Street Lovey's Towing and Recovery LLC 155-173 Hartford Turnpike MAG Auto Sales 787 Hartford Turnpike Mass Auto Repair Inc. Mass Auto Sales 56 Hartford Turnpike Nolli Auto Sales 356 Boston Turnpike Northland Industrial Truck Co. NITCO/Northland JCB 230 Cherry Street Patrick's Motor Mart Inc Patrick Subaru 247 Boston Turnpike Patrick's Motor Mart Inc Patrick Subaru 255 Boston Turnpke Rand's Towing Service Inc Rand's Automotive Center 185 Memorial Drive Interauto, Corp. 421 Boston Tpke. Salim F. Aoude Inc Sam's Mobile 285 Boston Turnpike SelecTrucks of America LLC SelecTrucks of New England 409A Hartford Turnpike Sentry West Lincoln/Sentry West Sentry West Inc Mazda 940 Boston Turnpike Metro West Motorcars, LLC 295 Hartford Tpke. Timeless Automotive 328 Grafton Street Top Cat Rentals LLC 537A Hartford Turnpike Tri State Truck Center, Inc. 411 Hartford Turnpike Turnpike Collission Center, Inc 307 Boston Tpke. Wade's Auto Enterprises Wade A Marston 6 Beckett Street MAG Retail Holdings-BMS, LLC BMW of Shrewsbury 770 Boston Turnpike Wagner Automotive Enterprise LLC Wagner Kia of Shrewsbury 730 Boston Turnpike MAG Retail Holdings-BMS, LLC Audi Shrewsbury 780 Boston Turnpike Wagner & Wagner Auto Sales, Inc. Mercedes Benz of Shrewsbury 760 Boston Turnpike Your Car Guy LLC 2 Tech Auto 152 Boston Turnpike Livery Licensee Name D/B/A Name Business Address AA Transportation Co., Inc. 605 Hartford Turnpike K-Limo 382 Boston Turnpike - Suite 104 Foco, Inc. Le Limo Limousine Service 224B Cherry Street Auction Licensee Name D/B/A Name Business Address JJ Kane Auctioneers 11 Fortune Blvd Auctioneer Licensee Name D/B/A Name Business Address JJ Kane Auctioneers 11 Fortune Blvd Automatic Amusements Licensee Name D/B/A Name Business Address Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 10 of 11
Jump Nation 810 Boston Turnpike 91293 Nikita Inc Nicks Golden Pizza and More 271 Grafton Street AMF Bowling Centers, Inc. Bowlero Shrewsbury 405 Boston Turnpike Shrewsbury Sportsmen's Club, Inc. Shrewsbury Sportsman Club 304 Boylston Street Bowling Alley Licensee Name D/B/A Name Business Address AMF Bowling Centers, Inc. Bowlero Shrewsbury 405 Boston Turnpike
Billiards Licensee Name D/B/A Name Business Address AMF Bowling Centers, Inc. Bowlero Shrewsbury 405 Boston Turnpike Ripal, Inc. G. Willickers Restaurant 896 Hartford Tpke. Weekly Entertainment Licensee Name D/B/A Name Business Address Bauhinia, Inc. Bauhinia Restaurant 271 Grafton Street Ripal, Inc. G. Willickers Restaurant 896 Hartford Tpke. Lit.Charitable Society - Maronis Lit.Charitable Society - Maronis Park Park 52 So. Quinsigamond Ave. Scandinavian Athletic Club Scandinavian Athletic Club 432R Lake Street Shrewsbury Sportsmen's Club, Inc. Shrewsbury Sportsman Club 304 Boylston Street SAWA, Inc. SAWA Steakhouse & Sushi 551 Boston Turnpike Tavern in the Square Shrewsbury, LLC Tavern in the Square 193 Boston Turnpike Unit 6210 Sunday Entertainment Licensee Name D/B/A Name Business Address Lit.Charitable Society - Maronis Lit.Charitable Society - Maronis Park Park 52 So. Quinsigamond Ave. Shrewsbury Sportsmen's Club, Inc. Shrewsbury Sportsman Club 304 Boylston Street Lord's Day Licensee Name D/B/A Name Business Address AMF Bowling Centers, Inc. Bowlero Shrewsbury 405 Boston Turnpike Seasonal Dancing Licensee Name D/B/A Name Business Address Scandinavian Athletic Club Scandinavian Athletic Club 432R Lake Street
On a motion by Mr. Kane, seconded by Ms. Casavant, the Board of Selectmen unanimously voted to adjourn at 9:07 pm.
Respectfully Submitted,
Valerie B. Clemmey Minutes Shrewsbury Board of Selectmen December 11, 2018 Page 11 of 11
Administrative Assistant to the Board of Selectmen
Referenced Materials Beal BAN Results 2018 Shrewsbury Retirement Valuation Report 2018 OPEB Report Memo dated December 7, 2018- Stormwater Permits Memo dated November 8, 2018- Highway Permits
Town of Shrewsbury, Massachusetts $6,500,000 General Obligation Bond Anticipation Notes Sale Date: 12/6/2018 Dated Date: 12/19/2018 Delivery Date: 12/19/2018 Due Date: 7/19/2019 Days Per Year: 360 Day Count: 210 Bank Qualified: Yes Rating: None
Coupon Net Prorata Prorata Reoffering Bidder Underwriter Principal Rate Premium Interest Interest NIC Premium Interest Award Yield
TD Securities ● $6,500,000 3.00% $34,450.00 $113,750.00 $79,300.00 2.0914% $34,450.00 $113,750.00 $6,500,000 Jefferies LLC ● $6,500,000 3.25% $38,547.00 $123,229.17 $84,682.17 2.2334% Oppenheimer & Co., Inc. ● $6,500,000 3.00% $28,867.00 $113,750.00 $84,883.00 2.2387% Eastern Bank ● $6,500,000 3.00% $26,845.00 $113,750.00 $86,905.00 2.2920% Hometown Bank $2,000,000 2.95% $4,083.33 $34,416.67 $30,333.34 2.6000% Century Bank $5,000,000 2.95% $10,000.00 $86,041.67 $76,041.67 2.6071%
Award Totals $34,450.00 $113,750.00 $6,500,000
Weighted Average Net Interest Cost: 2.0914%
Hilltop Securities Inc. FA-Mary Carney 508-797-3035 12/6/2018 208025_1 MUNICIPAL PURPOSE LOAN Town of Shrewsbury, Massachusetts $6,500,000 General Obligation Bond Anticipation Notes Sale Date: 12/6/2018 Dated Date: 12/19/2018 Delivery Date: 12/19/2018 Due Date: 7/19/2019 Bank Qualification: Yes
Bonds, Grants, Renewal New Total Original Vote Amount Previous and/or This This This Balance Issue Prorata Prorata Purpose Date(s) Reference Authorized Issues Paydowns Issue Issue Issue Unissued Date Interest Premium
Beal Elementary School 10/22/2018 Ch. 70B $92,810,000 $0 $0 $0 $6,500,000 $6,500,000 $86,310,000 12/19/2018 $113,750.00 $34,450.00 EXEMPT
Totals $92,810,000 $0 $0 $0 $6,500,000 $6,500,000 $86,310,000 $113,750.00 $34,450.00
Hilltop Securities Inc. FA-Mary Carney 508-797-3035 12/6/2018 208025_1
SHREWSBURY CONTRIBUTORY RETIREMENT SYSTEM
Actuarial Valuation Report January 1, 2018
Shrewsbury Retirement System
Shrewsbury 18
TABLE OF CONTENTS Page REPORT SUMMARY Highlights 1 Introduction 2 Actuarial Experience 3
ACTUARIAL COSTS AND LIABILITIES Normal Costs 4 Present Value of Actuarial Accrued Liabilities 5 Present Value of Future Benefits 6
FUNDED STATUS AND APPROPRIATIONS Market Value of Plan Assets 7 Actuarial Value of Assets 8 Unfunded Actuarial Accrued Liabilities 9 Appropriations 10 Appropriation Forecast 11
EXHIBITS 1 Age/Service Distribution with Salary 14 2 Retiree Distribution 15 3 Disabled Retiree Distribution 16 4 Cash Flow Forecast 17 5 Summary of Plan Provisions 18 6 Actuarial Methods and Assumptions 27 7 Glossary of Terms 32
CERTIFICATION 34
BREAKOUTS 35 Shrewsbury Retirement System Page 1
C:\Users\Dan Sherman\OneDrive - Sherman Actuarial Services, LLC\Recovered Data\Shrewsbury\Val18\[Shrew18_Val.xlsm]Actuarybreak
Report Summary:
Highlights January 1, 2017 January 1, 2018
Contributions Funding Schedule FY 2019 $6,293,197 $6,293,197 Funding Schedule FY 2020 6,303,092 5,445,268
Funded Ratios GAS No. 25 86.6% 92.4%
Participants Actives 472 468 Retirees and Beneficiaries 245 243 Inactives 149 138 Disabled 29 29 Total 895 878
Payroll Payroll of Active Members $24,460,547 $25,216,339 Average Payroll 51,823 53,881
Normal Cost Employer 410,839 398,196 Employee 2,139,645 2,221,147 Administrative Expenses 100,000 100,000 Total 2,650,484 2,719,343
Actuarial Accrued Liabilities Actives 56,998,111 59,415,096 Retirees, Beneficiaries, Disabilities and Inactives 68,652,368 69,988,563 Total 125,650,479 129,403,659
Actuarial Value of Assets 108,770,956 119,572,831
Unfunded Actuarial Accrued Liabilities $16,879,523 $9,830,828 Shrewsbury Retirement System Page 2
Shrewsbury 18
Introduction
This report presents the findings of an actuarial valuation as of January 1, 2018, of Shrewsbury Contributory Retirement System.
The actuarial valuation is based on:
Provisions Chapter 32 of the Massachusetts General Laws, "M.G.L", as of January 1, 2018.
Employee data provided by the Retirement Board Asset information reported to the Public Employee Retirement Administration Commission by the Shrewsbury Retirement System
Actuarial assumptions approved by the Retirement Board
The valuation and appropriation forecast are prepared in accordance with Chapter 32 of the M.G.L. as of January 1, 2018.
The valuation and forecast do not account for:
Any subsequent changes in the law Chapter 32 of the M.G.L., Section 3(8)(c) transfers between systems State-mandated benefits Cost-of-living increases granted to retired members between 1982 and 1997. The cost of these benefits has been assumed by the State under Proposition Two and One-Half.
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Actuarial Experience
In performing the actuarial valuation, various assumptions are made regarding such factors as mortality, retirement, disability, and withdrawal rates as well as both payroll, salary increases, and investment returns. A comparison of the current valuation and the prior valuation is made to determine how closely actual experience corresponded to anticipated occurrences. This analysis of the system provides insight into the overall quality of the actuarial assumptions and helps explain any change in the annual appropriation.
During the last year, based on the 2017 actuarial assumptions and plan provisions, the total unfunded actuarial accrued liability decreased by 41.8% to $9,830,828. The decrease is the result of net favorable actuarial experience during the preceding year, and an aggressive funding schedule. The sources of actuarial (gains) and losses are as follows:
Assets (2,172,166) Salary Increases (1,130,319) New Participants 543,187 Active - Retirements (1,270,977) Active - Terminations 549,783 Active - Mortality (46,079) Active - Disabilities (236,645) Inactive - Mortality and data adjustments 3,437,511 Other, including data changes, service purchases, etc. (247,240) Benefit Payments (981,286) Total (Gain) / Loss (1,554,231)
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Actuarial Costs and Liabilities:
Normal Costs
The normal cost is the sum of the individual normal costs determined for each member as if the assumptions underlying the cost determinations had been exactly realized. An individual normal cost represents that part of the cost of a member's future benefits which are assigned to the current year as if the costs are to remain level as a percentage of the member's pay. Benefits payable under all circumstances (i.e., retirement, death, disability, and terminations) are included in this calculation. Anticipated employee contributions to be made during the year are subtracted from the total normal cost to determine employer normal cost. The total normal cost is divided by total payroll to determine the normal cost as a percent of pay. The normal cost is shown in Table I.
Table I January 1, 2017 January 1, 2018 Superannuation $1,430,657 $1,463,943 Termination 805,660 834,958 Death 106,927 108,567 Disability 207,240 211,875
Administrative Expenses 100,000 100,000
Total Normal Cost 2,650,484 2,719,343 % of Pay 10.8% 10.8%
Employee Contributions 2,139,645 2,221,147 % of Pay 8.7% 8.8%
Employer Normal Cost $510,839 $498,196 % of Pay 2.1% 2.0% Shrewsbury Retirement System Page 5
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Present Value of Actuarial Accrued Liabilities
The actuarial accrued liabilities (AAL) represents today's value of all benefits based on the past service of the actives and inactives. The AAL can be compared to the assets to determine the funded status of the Plan. The value of these earned benefits is shown in Table II below.
Table II January 1, 2017 January 1, 2018 Actives Superannuations $54,913,651 $57,281,455 Termination (1,649,119) (1,752,048) Death 1,502,667 1,566,892 Disability 2,230,912 2,318,797
Retirees and Inactives Retirees and Beneficiaries 57,961,649 59,581,955 Terminated (Refund) 1,728,949 1,566,962 Disabled 8,961,770 8,839,646
Total $125,650,479 $129,403,659 Shrewsbury Retirement System Page 6
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Present Value of Future Benefits
The present value of future benefits represents today's value of all benefits earned by the inactive participants as well as all benefits earned and expected to be earned in the coming years by the active participants. The difference between the present value of future benefits and the present value of actuarial accrued liabilities is the value of benefits to be earned in the coming years. The value of the total expected benefits is shown in Table III.
Table III January 1, 2017 January 1, 2018 Actives Superannuation $65,027,819 $67,652,752 Termination 4,484,378 4,658,847 Death 2,233,279 2,323,295 Disability 3,739,349 3,864,642
Retirees and Inactives Retirees and Beneficiaries 57,961,649 59,581,955 Terminated (Refund) 1,728,949 1,566,962 Disabled 8,961,770 8,839,646
Total $144,137,193 $148,488,099 Shrewsbury Retirement System Page 7
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Funded Status and Appropriations:
Market Value of Plan Assets
The trust fund composition on a market value basis is shown in Table IV.
Table IV January 1, 2017 January 1, 2018 Cash equivalents $553,460 $940,840 Short term investments 0 0 Fixed income securities 11,111,239 4,934,607 Equities 32,431,556 30,885,047 International 4,390,918 6,108,568 Real Estate 5,434,043 12,072,749 Venture Capital 0 0 Other 52,838,610 70,209,225 Accounts receivable 25,198 25,198 Accounts payable 0 0 Accrued income 3 6 Total Market Value $106,785,027 $125,176,240 Total Actuarial Value $108,770,956 $119,572,831 Shrewsbury Retirement System Page 8 https://shermanactuary-my.sharepoint.com/personal/dan_shermanactuary_com/Documents/Recovered Data/Shrewsbury/Val18/[ShrewAssets18.xlsx]output
Actuarial Value of Assets
The actuarial value of assets is determined by projecting the market value of assets as of the beginning of the prior plan year with the assumed rate of return during that year (7.5%) and accounting for deposits and disbursements with interest at the assumed rate of return. An adjustment is then applied to recognize the difference between the actual investment return and expected return over a five year period. This preliminary actuarial value is not allowed to differ from the market value of assets by more than 10%. The calculation of the actuarial value of assets as of January 1, 2018 is presented in Table V.
Table V
January 1, 2018 (1) Market value at January 1, 2017 $106,785,027 (2) 2017 Contributions $9,164,730 (3) 2017 Payments ($8,709,601) (4) Net interest adjustment at 7.5% on (1), (2), and (3) to December 31, 2017 $8,025,944 (5) Expected market value on January 1, 2018 $115,266,100 (1) + (2) + (3) + (4)
(6) Actual market value on January 1, 2018 $125,176,240 (7) 2017 (Gain) / Loss ($9,910,140) (8) 80% of 2017 (Gain) / Loss ($7,928,112) (9) 2016 (Gain) / Loss ($697,188) (10) 60% of 2016 (Gain) / Loss ($418,313) (11) 2015 (Gain) / Loss $7,333,046 (12) 40% of 2015 (Gain) / Loss $2,933,218 (13) 2014 (Gain) / Loss ($951,011) (14) 20% of 2014 (Gain) / Loss ($190,202) (15) Actuarial value on January 1, 2018, (6) + (8) + (10) + (12) + (14) but not less than 90% nor greater than 110% of (6) $119,572,831
(16) Ratio of actuarial value to market value 95.52%
(17) Actuarial Value Return for 2016 8.39% (18) Actuarial Value Return for 2017 9.49% (19) Market Value Return for 2016 8.21% (20) Market Value Return for 2017 16.76% Shrewsbury Retirement System Page 9
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Unfunded Actuarial Accrued Liabilities
Under the Entry Age Normal Actuarial Cost Method, the Actuarial Accrued Liability represents what the accumulated assets would have been as of the valuation date if:
current plan provisions and assumptions had always been in effect,
experience conformed exactly to assumptions, and
the normal cost had been contributed each year since inception.
The actuarial value of the Fund's assets as of the end of the prior year are subtracted from the Actuarial Accrued Liability (AAL) to determine the Unfunded Actuarial Accrued Liability (UAAL) as of the valuation date. Over time, annual pension contributions will accumulate Plan assets equal to the AAL, and the UAAL will be eliminated. Thereafter, annual contributions equal to the normal cost will keep the Plan's assets and liabilities in balance. The UAAL is developed in Table VI.
Table VI January 1, 2017 January 1, 2018 Actuarial Accrued Liability $125,650,479 $129,403,659 Actuarial Assets 108,770,956 119,572,831 Unfunded Actuarial Accrued Liability $16,879,523 $9,830,828 Funded Status 86.6% 92.4% Shrewsbury Retirement System Page 10
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Appropriations
The pension appropriation for the upcoming fiscal years have been calculated in accordance with the requirements set forth in Section 22D of Chapter 32 of the Massachusetts General Laws. These amounts were calculated to comply with the June 30, 2030, full funding mandate for all accrued liabilities. The pension appropriation is the sum of the: Employer normal cost, Level amortization of the unfunded actuarial accrued liability by June 30, 2020 $ 9,830,828 over 2 years Interest adjustment for payments deposited at the various times in the year The pension appropriation is shown in Table VII.
Table VII January 1, 2017 January 1, 2018 Normal cost $510,839 $498,196 Amortization payment of the prior accrued liability 4,169,570 6,355,293 Amortization payment of current (gains)/losses 518,502 (1,262,214) Total cost $5,198,911 $5,591,275 % of Pay 21.3% 22.2% Fiscal 2019 cost $6,293,197 $6,293,197 Fiscal 2020 cost $6,303,092 $5,445,268 Shrewsbury Retirement System Page 11
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Appropriation Forecast
The following exhibit forecasts employer and employee contributions over the next 32 years under the adopted funding schedule.
Note that the forecast is based upon an "open group" method. This method assumes that sufficient employees will be hired each year to keep the number constant. The total payroll of the system is expected to increase 4.0% per year. The employee contribution rate is expected to increase to 10.5% by 2042 as members contributing base percentages 5%, 7%, and 8% are replaced by new members, whose base contribution is 9%. Payments are assumed to be made at the beginning of the year.
The employer total cost is expected to increase during the next 4 years until the unfunded liabilities are substantially paid off, at which time only the normal cost will remain. The total cost represents about 26% of payroll, decreasing to 23.8% by the time the unfunded liabilities are fully paid off, leaving only a normal cost of about 1% thereafter. The decrease in the cost as a percentage of payroll is a result of the increase in member deductions. Shrewsbury Retirement System Page 12
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Fiscal Employer Amortization Employer Employer Year Employee Normal Cost Payments Total Cost Total Cost Funded Ending Payroll* Contribution with Interest with Interest with Interest % of Payroll Ratio %** 2019 $25,216,339 $2,221,147 $524,382 $5,768,815 $6,293,197 25.0 92.7 2020 $26,224,993 $2,331,118 $523,122 $4,922,146 $5,445,268 20.8 96.5 2021 $27,273,992 $2,446,333 $520,921 $0 $520,921 1.9 100.0 2022 $28,364,952 $2,567,036 $517,708 $0 $517,708 1.8 100.0 2023 $29,499,550 $2,693,480 $513,404 $0 $513,404 1.7 100.0 2024 $30,679,532 $2,825,933 $507,928 $0 $507,928 1.7 100.0 2025 $31,906,713 $2,964,673 $501,192 $0 $501,192 1.6 100.0 2026 $33,182,982 $3,109,990 $493,104 $0 $493,104 1.5 100.0 2027 $34,510,301 $3,262,189 $483,568 $0 $483,568 1.4 100.0 2028 $35,890,713 $3,421,588 $472,480 $0 $472,480 1.3 100.0 2029 $37,326,342 $3,588,519 $459,730 $0 $459,730 1.2 100.0 2030 $38,819,395 $3,763,330 $445,205 $0 $445,205 1.1 100.0 2031 $40,372,171 $3,946,385 $428,783 $0 $428,783 1.1 100.0 2032 $41,987,058 $4,138,063 $410,334 $0 $410,334 1.0 100.0 2033 $43,666,540 $4,338,760 $389,723 $0 $389,723 0.9 100.0 2034 $45,413,202 $4,548,893 $366,807 $0 $366,807 0.8 100.0 2035 $47,229,730 $4,768,894 $341,434 $0 $341,434 0.7 100.0 2036 $49,118,919 $4,999,217 $313,445 $0 $313,445 0.6 100.0 2037 $51,083,676 $5,240,336 $282,670 $0 $282,670 0.6 100.0 2038 $53,127,023 $5,492,745 $248,931 $0 $248,931 0.5 100.0 2039 $55,252,104 $5,756,963 $212,041 $0 $212,041 0.4 100.0 2040 $57,462,188 $6,033,530 $171,802 $0 $171,802 0.3 100.0 2041 $59,760,676 $6,274,871 $178,674 $0 $178,674 0.3 100.0 2042 $62,151,103 $6,525,866 $185,821 $0 $185,821 0.3 100.0 2043 $64,637,147 $6,786,900 $193,253 $0 $193,253 0.3 100.0 2044 $67,222,633 $7,058,376 $200,983 $0 $200,983 0.3 100.0 2045 $69,911,538 $7,340,711 $209,023 $0 $209,023 0.3 100.0 2046 $72,707,999 $7,634,340 $217,384 $0 $217,384 0.3 100.0 2047 $75,616,319 $7,939,714 $226,079 $0 $226,079 0.3 100.0 2048 $78,640,972 $8,257,302 $235,122 $0 $235,122 0.3 100.0 2049 $81,786,611 $8,587,594 $244,527 $0 $244,527 0.3 100.0 2050 $85,058,076 $8,931,098 $254,308 $0 $254,308 0.3 100.0 * Calendar basis ** Beginning of Fiscal Year Shrewsbury Retirement System Page 13
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EXHIBITS
Shrewsbury Retirement System Page 14 https://shermanactuary-my.sharepoint.com/personal/dan_shermanactuary_com/Documents/Recovered Data/Shrewsbury/Val17/Report/[ACT1.xls]Actives
Exhibit 1 - Age/Service Distribution with Salary as of January 1, 2018
Attained Average Salary Age <5 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40+ Total
< 201000000001 39,904 0000000039,904
20-24 6000000006 36,802 0000000036,802
25-29 24 8100000033 44,824 55,221 50,182 00000047,507
30-34 19 22 500000046 51,185 58,351 59,094 00000055,472
35-39 14 9 20 20000045 50,686 70,387 67,349 85,885 0000063,597
40-44 11 6 7 10 2000036 50,805 69,332 57,325 61,851 77,582 000059,716
45-49 17 18 778400061 42,576 41,546 44,926 59,746 75,454 95,075 0 0 0 52,266
50-54 17 18 13 11 5 10 6 1 0 81 47,776 42,385 44,171 56,898 71,246 73,885 82,344 68,399 0 54,725
55-59 10 16 16 10 7453071 39,408 34,756 30,632 51,745 75,748 77,074 68,586 99,487 0 48,418
60-64 6 7 18 87831159 30,075 30,789 33,353 38,654 63,074 58,406 91,157 48,993 98,038 44,658
65-69 22161220218 26,058 58,233 69,587 34,107 61,417 38,556 51,693 0 110,185 50,283
70+12111140011 27,593 40,173 0 46,832 46,559 35,154 45,183 0 0 36,280
Total Employees 128 108 89 55 31 29 20 5 3 468 Average Salary 45,060 48,650 46,547 52,955 70,799 69,205 69,729 83,171 106,136 52,114 Shrewsbury Retirement System Page 15 https://shermanactuary-my.sharepoint.com/personal/dan_shermanactuary_com/Documents/Recovered Data/Shrewsbury/Val18/Report/[RET1.xls]Retirees
Exhibit 2 - Retiree Distribution as of January 1, 2018
Number of Employees Total Payments
Attained Age Female Male Total Female Male Total
< 20 1 0 1 20,078 0 20,078 20-24 0 0 0 0 0 0 25-29 0 0 0 0 0 0 30-34 0 0 0 0 0 0 35-39 0 0 0 0 0 0 40-44 0 0 0 0 0 0 45-49 1 0 1 25,512 0 25,512 50-54 2 0 2 13,163 0 13,163 55-59 4 8 12 50,570 333,063 383,634 60-64 11 20 31 143,696 788,275 931,971 65-69 28 32 60 528,534 1,449,122 1,977,656 70-74 16 28 44 306,279 1,213,497 1,519,776 75-79 14 7 21 305,184 185,323 490,507 80-84 14 7 21 248,044 179,897 427,941 85-89 18 15 33 255,269 324,452 579,721 90-94 6 5 11 60,376 65,672 126,048 95+ 4 2 6 28,244 8,410 36,653
Total 119 124 243 1,984,950 4,547,710 6,532,660
Average (Age/Payment) 74.76 72.62 73.66 16,680 36,675 26,883
Frequency Percent 49.0 51.0 100.0 30.4 69.6 100.0 Shrewsbury Retirement System Page 16 https://shermanactuary-my.sharepoint.com/personal/dan_shermanactuary_com/Documents/Recovered Data/Shrewsbury/Val18/Report/[DIS1.xls]Disabled
Exhibit 3 - Disabled Retiree Distribution as of January 1, 2018
Number of Employees Total Payments
Attained Age Female Male Total Female Male Total
< 20 0 0 0 0 0 0 20-24 0 0 0 0 0 0 25-29 0 0 0 0 0 0 30-34 0 0 0 0 0 0 35-39 0 1 1 0 56,063 56,063 40-44 1 0 1 23,445 0 23,445 45-49 0 1 1 0 40,413 40,413 50-54 0 2 2 0 75,222 75,222 55-59 1 1 2 12,123 32,166 44,289 60-64 1 5 6 11,439 207,261 218,700 65-69 0 3 3 0 105,243 105,243 70-74 0 6 6 0 168,968 168,968 75-79 0 3 3 0 100,658 100,658 80-84 0 3 3 0 79,139 79,139 85-89 0 0 0 0 0 0 90-94 0 1 1 0 25,189 25,189 95-99 0 0 0 0 0 0
Total 3 26 29 47,007 890,322 937,329
Average (Age/Payment) 54.14 68.21 66.75 15,669 34,243 32,322
Frequency Percent 10.3 89.7 100.0 5.0 95.0 100.0 Shrewsbury Retirement System Page 17
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EXHIBIT 4 - CASHFLOW FORECAST:
The following is a 30 year forecast of benefit payments net of state reimbursable COLA payments, Contribution Income and Investment Returns.
Plan Year Benefit Employee Employer Investment Net change in Ending Payments Contributions Contributions Returns plan assets 2018 $10,204,679 $2,221,147 $6,293,197 $8,399,318 $6,708,982 2019 8,976,886 2,331,118 5,445,268 9,326,757 8,126,257 2020 9,347,497 2,446,333 520,921 9,845,322 3,465,079 2021 9,713,270 2,567,036 517,708 10,096,067 3,467,541 2022 10,052,796 2,693,480 513,404 10,348,186 3,502,274 2023 10,426,301 2,825,933 507,928 10,601,889 3,509,450 2024 10,740,654 2,964,673 501,192 10,858,553 3,583,765 2025 11,088,885 3,109,990 493,104 11,119,799 3,634,008 2026 11,398,724 3,262,189 483,568 11,386,493 3,733,527 2027 11,711,279 3,421,588 472,480 11,660,832 3,843,621 2028 12,032,405 3,588,519 459,730 11,943,408 3,959,252 2029 12,362,337 3,763,330 445,205 12,234,639 4,080,837 2030 12,701,315 3,946,385 428,783 12,534,979 4,208,832 2031 13,049,588 4,138,063 410,334 12,844,915 4,343,725 2032 13,407,411 4,338,760 389,723 13,164,972 4,486,045 2033 13,775,045 4,548,893 366,807 13,495,714 4,636,369 2034 14,152,760 4,768,894 341,434 13,837,749 4,795,317 2035 14,540,832 4,999,217 313,445 14,191,731 4,963,561 2036 14,939,545 5,240,336 282,670 14,558,368 5,141,829 2037 15,349,191 5,492,745 248,931 14,938,422 5,330,907 2038 15,770,069 5,756,963 212,041 15,332,713 5,531,648 2039 16,202,488 6,033,530 171,802 15,742,127 5,744,970 2040 16,646,764 6,274,871 178,674 16,165,089 5,971,869 2041 17,103,223 6,525,866 185,821 16,604,957 6,213,422 2042 17,572,197 6,786,900 193,253 17,062,834 6,470,790 2043 18,054,031 7,058,376 200,983 17,539,905 6,745,233 2044 18,549,076 7,340,711 209,023 18,037,451 7,038,109 2045 19,057,697 7,634,340 217,384 18,556,860 7,350,887 2046 19,580,263 7,939,714 226,079 19,099,624 7,685,154 2047 20,164,782 8,257,302 235,122 19,665,605 7,993,248 Shrewsbury Retirement System Page 18
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EXHIBIT 5 – SUMMARY OF PLAN PROVISIONS:
This summary is prepared in accordance with Chapter 32 as of January 1, 2018, and does not take into account any subsequent changes.
1. Administration
Each of the 104 contributory retirement systems for public employees of the Commonwealth of Massachusetts are guided by the applicable provisions of Chapter 32 of the Massachusetts General Laws and other applicable statutes. Although these boards operate semi-independently, there is a uniform set of rules governing benefits, eligibility, contributions, financing, and accounting.
2. Participation
Participation is mandatory for all full-time employees whose employment commences prior to age 65. Eligibility with respect to part-time, professional, temporary, or intermittent employment is governed by the local board. Membership is optional for certain elected officials, State officials appointed by the Governor, and certain hospital interns.
There are four classes of membership as follows:
(i) Group 1: Most general employees in State and local government
(ii) Group 2: Certain specified hazardous duty positions
(iii) Group 3: State police officers and inspectors
(iv) Group 4: Local police officers, firefighters, and designated employees of the municipal light department.
For members in more than one group, participation will be proportional.
Chapter 176 of the Acts of 2011 created different plan provisions within these groups for those hired on or after April 2, 2012.
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3. Salary
Salary is defined as gross regular compensation. Salary does not include bonuses, overtime, severance pay, unused sick leave credit, or other similar compensation.
4. Member Contributions
Member contributions vary depending upon date hired as follows:
Member Date of Hire Contribution Rate Prior to 1975 5.0% of Salary 1975 to 1983 7.0% of Salary 1984 to 1996 8.0% of Salary 1996 and Later plus 9.0% of Salary 1979 and Later 2.0% of Salary in excess of $30,000
For Group 1 employees who become members on or after April 2, 2012, the Contribution Rate shall be 6% after the completion of 30 years of service.
5. Average Salary
Average salary is used to determine a participant's benefit. It is defined as the average salary during the three consecutive-year period that produces the highest average. (Alternatively, if a greater amount results, it is the average rate of salary earned during the period or periods, whether or not consecutive, that constitutes the last three years preceding retirement.). For employees who become members on or after April 2, 2012, the averaging period shall be five years.
6. Creditable Service
In general, creditable service is awarded during the period in which a member contributes to the retirement system.
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7. Service Retirement
a. Eligibility:
For an employee to be eligible for service retirement (also referred to as superannuation), one of the following conditions must be met:
(i) completion of 20 years of service, if hired before April 2, 2012
(ii) for an employee hired prior to January 1, 1978, attainment of age 55 as an active member
(iii) for an employee hired on or after January 1, 1978, attainment of age 55 as an active member and completion of ten years of service
(iv) for a Group 1 employee hired on or after April 2, 2012, attainment of age 60 and completion of ten years of service
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b. Benefit Amount:
The retirement allowance is determined as a product of the participant's Benefit Rate times Average Salary times Creditable Service, where Benefit Rate is determined from the following table for those hired prior to April 2, 2012:
Age at Percentage of Average Salary Retirement Group 1 Group 2 Group 4
65 or Over .025 .025 .025 64 .024 .025 .025 63 .023 .025 .025 62 .022 .025 .025 61 .021 .025 .025
60 .020 .025 .025 59 .019 .024 .025 58 .018 .023 .025 57 .017 .022 .025 56 .016 .021 .025
55 .015 .020 .025 54 .014 .014 .024 53 .013 .013 .023 52 .012 .012 .022 51 .011 .011 .021
50 .010 .010 .020 49 .009 .009 .019 48 .008 .008 .018 47 .007 .007 .017 46 .006 .006 .016
45 .005 .005 .015 44 .004 .004 .004 43 .003 .003 .003 42 .002 .002 .002 41 .001 .001 .001
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For those hired after April 1, 2012 who retire with less than 30 years of service, the following rates are applied:
Age at Percentage of Average Salary Retirement Group 1 Group 2 Group 4
67 or Over .0250 .0250 .0250 66 .0235 .0250 .0250 65 .0220 .0250 .0250 64 .0205 .0250 .0250 63 .0190 .0250 .0250
62 .0175 .0250 .0250 61 .0160 .0235 .0250 60 .0145 .0220 .0250 59 .0205 .0250 58 .0190 .0250
57 .0175 .0250 56 .0160 .0235 55 .0145 .0220 54 .0205 53 .0190
52 .0175 51 .0160 50 .0145
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For those hired after April 1, 2012 who retire with at least 30 years of service, the following rates are applied:
Age at Percentage of Average Salary Retirement Group 1 Group 2 Group 4
67 or Over .02500 .02500 .02500 66 .02375 .02500 .02500 65 .02250 .02500 .02500 64 .02125 .02500 .02500 63 .02000 .02500 .02500
62 .01875 .02500 .02500 61 .01750 .02375 .02500 60 .01625 .02250 .02500 59 .02125 .02500 58 .02000 .02500
57 .01875 .02500 56 .01750 .02375 55 .01625 .02250 54 .02125 53 .02000
52 .01875 51 .01750 50 .01625
8. Deferred Vested Retirement
a. Eligibility:
A participant who has completed ten or more years of creditable service is eligible for a deferred vested retirement benefit. If termination is involuntary, the participant is vested after six years.
b. Benefit Amount:
The participant's accrued benefit is payable commencing at age 55, or may be deferred until later at the employee's option.
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c. Refund of Contributions:
In lieu of the deferred pension benefit, a member may elect to receive a refund of their accumulated contributions with interest.
9. Accidental Disability
a. Eligibility:
Participants are eligible for an accidental disability benefit, regardless of service or age, if they become permanently and totally incapacitated for further duty as a result of personal injury sustained while in the performance of duties.
b. Benefit Amount:
The accidental disability amount is 72% of annual salary plus $450 per year for each child plus an additional annuity based upon accumulated Member Contributions with credited interest.
10. Ordinary Disability
a. Eligibility:
An ordinary disability occurs when a member becomes permanently and totally disabled due to sickness or injury that is not job related. In order to be eligible for an ordinary disability benefit, a member must have ten years of service (and be less than age 55 or age 60 if hired on or after April 2, 2012).
b. Benefit Amount:
The ordinary disability amount is equal to the accrued retirement benefit as if the member were age 55 (age 60 if hired on or after April 2, 2012). If the member was a veteran, the benefit is 50% of the member's final rate of Salary during the preceding 12 months, plus an annuity based upon accumulated Member Contributions plus credited interest. If the participant is over age 55 (age 60 if hired on or after April 2, 2012), he will receive not less than the superannuation allowance to which he is entitled.
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11. Survivor Benefits
a. Occupational Death:
The survivors of a member who dies due to an occupational injury will be entitled to a lump sum return of contributions plus a pension benefit equal to 72% of the participant's annual Salary.
b. Non-Occupational Death:
Upon the death of a member other than due to an occupational injury, the designated beneficiary will be entitled to a retirement benefit as if Option C had been elected with a minimum of $250 per month to the surviving spouse, plus $120 for the first child, plus $90 for each additional child. If no beneficiary is designated and if the employee worked two years, and is married at least one year, the spouse may elect benefits. If there is no designated beneficiary or surviving spouse, then member contributions are returned. If there are dependent children but no surviving spouse, they may elect minimum survivor benefits of $250 per month plus $120 for the first child and $90 for each additional child.
c. Refund of Contributions:
Upon the death of a member not entitled to survivor benefits, the beneficiary is entitled to a refund of all member contributions with interest.
12. Cost-of-Living Increases
In accordance with the adoption of Chapter 17 of the Acts of 1997, the granting of a cost-of- living adjustment will be determined by an annual vote by the Retirement Board. The amount of increase will be based upon the Consumer Price Index, limited to a maximum of 3.0%, beginning on July 1. All retirees, disabled retirees, and beneficiaries who have been receiving benefits payments for at least one year as of July 1 are eligible for the adjustment. The maximum amount of pension benefit subject to a COLA is $12,000. All COLAs granted to members after 1981 and prior to July 1, 1998 are deemed to be an obligation of the State and are not the liability of the Retirement System.
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13. Postretirement Death Benefits
Any benefits following the death of a member after retirement are based upon the form of benefit the participant elected at the time of retirement. There are three available forms as follows:
(i) Option A – Life annuity
(ii) Option B – Life annuity with death benefit equal to excess of member contributions plus credited interest to retirement over annuity benefit paid to member
(iii) Option C – Life annuity with 66-2/3% of benefit continued after death of member to designated joint annuitant
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EXHIBIT 6 – ACTUARIAL METHODS AND ASSUMPTIONS:
The actuarial cost method, factors, and assumptions used in determining cost estimates are presented below.
1. Member Data
The member data used in the determination of cost estimates consist of pertinent information with respect to the active, inactive, retired, and disabled members of the employer as supplied by the employer to the actuary.
2. Valuation Date
January 1, 2018.
3. Actuarial Cost Method
The costs of the Plan have been determined in accordance with the individual entry age normal actuarial cost method.
4. Rate of Investment Return
It is assumed that the assets of the fund will accumulate at a compound annual rate of 7.5% per annum.
5. Salary Scale
It is assumed that salaries including longevity will increase at a rate of 3.5% per year.
6. Cost-of-Living Increases
Cost-of-living increases have been assumed to be 3.0% of the lesser of the pension amount and $12,000 per year.
7. Value of Investments
Assets held by the fund are valued at market value as reported by the Public Employees' Retirement Administration Commission (PERAC). The actuarial value of assets is determined
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using a five-year smoothing of asset returns greater than or less than the assumed rate of return.
8. Annual Rate of Withdrawal Prior to Retirement
Based on an analysis of experience, the assumed annual rates of withdrawal may best be illustrated by the following rates at the following ages:
General Police and Fire Service Employees Employees 0 0.2080 0.1500 5 0.1020 0.1000 10 0.0650 0.0600 15 0.0417 0.0600 20 0.0400 0.0000 30 0.0000 0.0000
9. Annual Rate of Mortality
It is assumed that both pre-retirement mortality and beneficiary mortality is represented by the RP-2014 Blue Collar Mortality with Scale MP-2014, fully generational. Mortality for retired members for Group 1 and 2 is represented by the RP-2014 Blue Collar Mortality Table set forward five years for males and 3 years for females, fully generational. Mortality for retired members for Group 4 is represented by the RP-2014 Blue Collar Mortality Table set forward three years for males, and six years for females, fully generational. Mortality for disabled members for Group 1 and 2 is represented by the RP-2000 Mortality Table set forward six years. Mortality for disabled members for Group 4 is represented by the RP-2000 Mortality Table set forward two years. Generational adjusting is based on Scale MP-2014.
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10. Service Retirement
Based on an analysis of experience, the assumed annual retirement rates are illustrated at the following ages for those hired prior to April 2, 2012:
Male Female Male and Female General General Police and Fire Age Employees Employees Employees 50 0.0360 0.1019 0.0382 51 0.0405 0.0714 0.0351 52 0.0437 0.0562 0.0436 53 0.0366 0.0448 0.0527 54 0.0451 0.0488 0.0999 55 0.0477 0.0469 0.1110 56 0.0574 0.0518 0.1413 57 0.0632 0.0509 0.1292 58 0.0765 0.0552 0.1499 59 0.0917 0.0645 0.1679 60 0.1057 0.0774 0.1871 61 0.1224 0.1038 0.2073 62 0.1473 0.1168 0.2176 63 0.1777 0.1440 0.3338 64 0.2136 0.1708 0.5664 65 0.2615 0.1939 1.00000 66 0.2682 0.1959 1.00000 67 0.2500 0.2000 1.00000 68 0.2500 0.2000 1.00000 69 0.2500 0.2000 1.00000 70 to 76 0.2500 0.2500 1.00000 77 to 79 0.3500 0.2500 1.00000 80 1.0000 1.0000 1.00000
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Based on an analysis of experience, the assumed annual retirement rates are illustrated at the following ages for those hired on or after April 2, 2012:
Male Female Male and Female General General Police and Fire Age Employees Employees Employees 50 0.0000 0.0000 0.0191 51 0.0000 0.0000 0.0176 52 0.0000 0.0000 0.0436 53 0.0000 0.0000 0.0211 54 0.0000 0.0000 0.0266 55 0.0000 0.0000 0.0370 56 0.0000 0.0000 0.1060 57 0.0000 0.0000 0.1938 58 0.0000 0.0000 0.1499 59 0.0000 0.0000 0.1119 60 0.0477 0.0469 0.0936 61 0.0574 0.0518 0.1555 62 0.0632 0.0509 0.1741 63 0.0765 0.0552 0.2670 64 0.0917 0.0645 0.4720 65 0.1057 0.0774 0.2500 66 0.1224 0.1038 0.3000 67 0.1473 0.1168 1.0000 68 0.1777 0.1440 1.0000 69 0.2136 0.1708 1.0000 70 0.2615 0.1939 1.0000 70 to 76 0.2682 0.1959 1.0000 77 to 79 0.2500 0.2000 1.0000 80 0.2500 0.2000 1.0000
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12. Annual Rate of Disability Prior to Retirement
Based on an analysis of experience, the assumed annual rates of disability may best be illustrated by the following probabilities at the following ages:
Attained General Police and Fire Age Employees Employees 20 0.000100 0.000500
30 0.000152 0.000967
40 0.000663 0.002500
50 0.001271 0.007634
In addition, it is assumed for the general employees that 30% of all disabilities are ordinary (70% are service connected). For police and fire employees, 5% of all disabilities are assumed to be ordinary (95% are service connected).
13. Family Composition
It is assumed that 80% of all members will be survived by a spouse and that females (males) are three years younger (older) than members.
14. Administrative Expenses
The normal cost is increased by an amount equal to the anticipated administrative expenses for the upcoming fiscal year. The amount for fiscal year 2018 is $100,000 and is anticipated to increase at 4.0% per year.
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EXHIBIT 7 – GLOSSARY OF TERMS:
This glossary summarizes the technical terms contained in this report.
1. Actuarial Accrued Liability
That portion of the Actuarial Present Value of plan benefits that is not provided for by future employer Normal Costs or employee contributions.
2. Actuarial Assumptions Assumptions as to the occurrence of future events affecting the Retirement System such as:
Rates of investment returns Increases in a member's salary Inflation The probability of mortality, turnover, disablement Retirement at each age and other relevant items
3. Actuarial Cost Method
A procedure for allocating the Actuarial Present Value of pension plan benefits between Normal Cost and Actuarial Accrued Liability.
4. Actuarial Present Value
The single sum amount required at the valuation date that is required to provide for anticipated future events based upon the terms of the plan and the Actuarial Assumptions.
5. Forecast
A projection of future benefit payments or contribution requirements based upon the terms of the plan, the current asset amounts, the Actuarial Assumptions, and additional assumptions as to the replacement of terminating employees with new employees.
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6. Normal Cost
That portion of the Actuarial Present Value of future benefits that is assigned to the current year.
7. Unfunded Actuarial Accrued Liability
That portion of the Actuarial Accrued Liability that is not provided for by current actuarial value of assets.
8. Valuation Method
The method used to divide the cost of future benefits among the Actuarial Accrued Liability, the current year's Normal Costs, and future years' Normal Costs. The resulting current funding requirement is then determined as the current year's Normal Cost plus the payment necessary to amortize the Unfunded Actuarial Liability.
9. Vested Liability
That portion of the Actuarial Present Value of Accrued Benefits that a member would be entitled to if the member terminated employment with the employer as of the valuation date.
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CERTIFICATION:
This report fairly represents the actuarial position of the Shrewsbury Retirement System contributing as of January 1, 2018, in accordance with generally accepted actuarial principles applied consistently with the preceding valuation. In our opinion, the actuarial assumptions used to compute actuarial accrued liability and normal cost are reasonably related to plan experience and to reasonable expectations, and represents our best estimate of anticipated plan experience.
The funded status measure is appropriate for assessing the sufficiency of plan assets to cover the estimated cost of settling the plan’s benefit obligations. The funded status measure is appropriate for assessing the need for or the amount of future contributions. The funded status measure would be different if the measure reflected the market value of assets rather than the actuarial value of assets.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan’s funded status); and changes in plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of such future measurements.
The report was prepared under the supervision of Daniel Sherman, an Associate of the Society of Actuaries and a Member of the American Academy of Actuaries, who takes responsibility for the overall appropriateness of the analysis, assumptions and results. Daniel Sherman is deemed to meet the General Qualification Standard and the basic education and experience requirement in the pension area. Based on over thirty years of performing valuations of similar complexity, Mr. Sherman is qualified by experience. Daniel Sherman has met the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
Sherman Actuarial Services, LLC
______Daniel W. Sherman, ASA, MAAA
November, 2018
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BREAKOUTS
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C:\Users\Dan Sherman\OneDrive - Sherman Actuarial Services, LLC\Recovered Data\Shrewsbury\Val18\[Shrew18_Val.xlsm]Actuarybreak
Breakouts
School School Total Housing Light Cable Water Sewer Custodians All Others Employees Lunch
(1) Participants (a) Actives 468 8 36 29 12 4 21 171 169 18 (b) Inactives 138 0 1 9 1 0 3 17 102 5 (c) Retirees and Benefiaries 243 5 23 7 10 2 22 128 34 12 (d) Disabled Retirees 29 0 2 0 1 0 2 21 2 1 (e) Total 878 13 62 45 24 6 48 337 307 36 (2) Payroll of Active Participants $25,216,339 $467,429 $3,012,019 $2,075,292 $733,211 $186,708 $1,116,974 $11,189,343 $6,003,147 $432,215 (3) Normal Cost (a) Total Normal Cost 2,619,343 40,231 309,133 195,636 69,944 16,124 130,986 1,195,160 615,965 46,167 (b) Expected Employee Contributions 2,221,147 42,961 257,928 191,964 60,949 15,947 96,786 1,001,035 517,479 36,098 (c) Administrative Expenses 100,000 1,536 11,802 7,469 2,670 616 5,001 45,628 23,516 1,763 (d) Net Employer Normal Cost (a) - (b) + (c) 498,196 (1,194) 63,007 11,141 11,665 793 39,201 239,753 122,002 11,832 (4) Actuarial Accrued Liability 129,403,659 2,355,534 20,596,727 5,975,103 4,116,606 533,111 6,485,684 70,162,226 16,747,531 2,431,135 (5) Assets* 119,572,831 2,096,413 20,718,345 5,996,608 3,663,759 474,466 5,772,226 63,782,095 14,905,219 2,163,698 (6) Unfunded Actuarial Accrued Liability (4) - (5) 9,830,828 259,121 (121,618) (21,505) 452,847 58,645 713,458 6,380,131 1,842,312 267,437 (7) Amortizations* 5,093,079 134,243 (63,007) (11,141) 234,608 30,382 369,623 3,305,369 954,451 138,552 (8) Total Required Employer Contributions (3d) + (7) 5,591,275 133,049 0 (0) 246,273 31,175 408,823 3,545,124 1,076,453 150,383 (9) Fiscal 2020 Cost 5,445,268 129,575 0 0 239,842 30,361 398,148 3,452,549 1,048,343 146,456 (10) Fiscal 2021 Cost 520,921 12,396 0 0 22,944 2,904 38,089 330,288 100,290 14,011 (11) Fiscal 2022 Cost 517,708 12,320 0 0 22,802 2,886 37,854 328,250 99,671 13,925 (12) Fiscal 2023 Cost 513,404 12,218 0 0 22,612 2,862 37,539 325,521 98,842 13,809 (13) Fiscal 2024 Cost 507,928 12,088 0 0 22,371 2,831 37,139 322,050 97,788 13,662 (14) Fiscal 2025 Cost 501,192 11,928 0 0 22,074 2,793 36,646 317,778 96,491 13,481 (15) Fiscal 2026 Cost 493,104 11,736 0 0 21,718 2,748 36,055 312,649 94,934 13,263 (16) Fiscal 2027 Cost 483,568 11,509 0 0 21,298 2,695 35,358 306,604 93,098 13,007 (17) Fiscal 2028 Cost 472,480 11,245 0 0 20,810 2,633 34,547 299,575 90,963 12,709 (18) Percentage of Total Cost 100.0% 2.4% 0.0% 0.0% 4.4% 0.6% 7.3% 63.4% 19.3% 2.7% (19) Funded Ratio 92.40% 89.00% 100.59% 100.36% 89.00% 89.00% 89.00% 90.91% 89.00% 89.00%
* Allocation is based on the ratio of the Unfunded Actuarial Accrued Liability, adjusted for additional contributions.
JUNE 30, 2018 POST RETIREMENT BENEFITS ANALYSIS OF THE TOWN OF SHREWSBURY
November 2018
2018 Shrewsbury OPEB report.docx
TABLE OF CONTENTS
Section Item Page
SECTION I OVERVIEW ...... 1
SECTION II REQUIRED INFORMATION ...... 3
SECTION III MEMBERSHIP DATA AND DEPARTMENT RESULTS ...... 5
SECTION IV SCHEDULE OF EMPLOYER CONTRIBUTIONS ...... 6
SCHEDULE A ACTUARIAL ASSUMPTIONS AND METHODS ...... 15
SCHEDULE B SUMMARY OF PROGRAM PROVISIONS ...... 19
SCHEDULE C CONSIDERATION OF HEALTH CARE REFORM ...... 20
SCHEDULE D GLOSSARY OF TERMS ...... 21
Page 1
SECTION I - OVERVIEW
The Town of Shrewsbury has engaged Sherman Actuarial Services to prepare an actuarial valuation of their post-retirement benefits program as of June 30, 2018. This valuation was performed using employee census data, enrollment data, claims, premiums, participant contributions and plan provision information provided by personnel of the Town of Shrewsbury. SAS did not audit these data, although they were reviewed for reasonableness. The results of the valuation are dependent on the accuracy of the data.
The purposes of the valuation are to analyze the current funded position of the Town’s post-retirement benefits program and determine the level of contributions necessary to assure sound funding. Liabilities have been determined based on a 7.5% discount rate.
Section II provides a summary of the principal valuation results. Section IV provides a projection of funding amounts.
This report is based on the participant data as of June 30, 2018, the plan provisions and the health plans offered as of July 1, 2018.
While the actuary believes that the assumptions are reasonable for financial reporting purposes, it should be understood that there is a range of assumptions that could be deemed reasonable that would yield different results. Moreover, while the actuary considers the assumption set to be reasonable based on prior plan experience, it should be understood that future plan experience may differ considerably from what has been assumed.
The report was prepared under the supervision of Daniel Sherman, an Associate of the Society of Actuaries and a Member of the American Academy of Actuaries, who takes responsibility for the overall appropriateness of the analysis, assumptions and results. Daniel Sherman is deemed to meet the General Qualification Standard and the basic education and experience requirement in the pension Page 2
area. Based on over twenty years of performing FAS 106 valuations of similar complexity, Mr. Sherman is qualified by experience in retiree medical valuation. Daniel Sherman has met the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.
I am available to answer questions about this report.
Respectfully Submitted,
SHERMAN ACTUARIAL SERVICES, LLC
______Daniel Sherman, ASA, MAAA Date CEO
Town of Shrewsbury GASB 43 & 45 June 30, 2018
Page 3
SECTION II – REQUIRED INFORMATION
Town Light & Cable Full prefunding Full prefunding 7.5% 7.5%
a) Actuarial valuation date June 30, 2018 June 30, 2018
b) Actuarial Value of Assets $ 1,411,331 $ 2,475,567
c) Actuarial Accrued Liability Active participants $ 25,079,186 $ 1,989,155 Retired participants 23,816,902 1,762,065 Total AAL $ 48,896,088 $ 3,751,220
d) Unfunded Actuarial Liability "UAL" [ c - b ] $ 47,484,757 $ 1,275,653
e) Funded ratio [ b / c ] 2.9% 66.0%
f) Annual covered payroll $ 62,826,132 $ 5,612,510
g) UAL as percentage of covered payroll 75.6% 22.7%
h) Normal Cost for fiscal year 2018 $ 1,438,135 $ 77,002
i) Amortization of UAL for fiscal year 2018 * $ 2,989,074 $ 230,582
j) Interest to the middle of the fiscal year $ 0 $ 0
k) Annual Recommended Contribution "ARC" for fiscal year 2018 [ h + i + j ] $ 4,427,209 $ 307,584
l) Expected claims cost $ 2,425,198 $ 169,905
* 22-year amortization, increasing 4% per year for the Town 6-year amortization, increasing 4% per year for Light and Cable
Town of Shrewsbury GASB 43 & 45 June 30, 2018
Page 4
SECTION III - MEMBERSHIP DATA AND MEDICAL PREMIUM
Monthly Premiums effective June 30, 2018
Health benefits are available to employees and retirees through a number of plans.
Gross Cost Plan Premium Sharing
BCBS HIGH DED FAM M $2,166.00 60/40 HARV PILG HIGH DED FAM M 1,820.00 60/40 FALLON SEL HIGH DED FAM M 1,608.00 73/27 HPPPO IND M 2,612.00 50/50 HPPPO IND AD 1,205.54 50/50 HPBMK IND M 885.00 60/40 TFBMK IND M 945.00 60/40 FSBMK FAM B 864.46 73/27 FSBMK FAM M 1,873.00 73/27 FSBMK IND M 695.00 73/27 FDBMK FAM M 1,742.00 78/22 FDBMK IND M 647.00 78/22 FALLON SEN SUB MONTHLY 394.00 73/27 TUFTS MEDICARE PREFERRED SUB M 314.00 50/50 TUFTS MED PREF PRIME SUB M 385.00 50/50 HPENH SUB MONTHLY 370.00 50/50 BCMED SUB M 379.00 50/50 BCMB SUB M 351.00 60/40
Cost Sharing for surviving spouses is 50/50.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
Page 5
SECTION III - MEMBERSHIP DATA AND DEPARTMENT RESULTS
Number of Employees Public Buildings Sewer Water Electric CATV School All Others Total
Actives 22 5.0 11.0 33 29 681 166 947 Retired 4 2.0 13.0 35 11 422 187 674 Total 26 7.0 24.0 68 40 1,103 353 1,621
Accrued Liability @ 7.5% Active 496,075 127,127 462,731 1,176,443 812,712 19,049,609 4,943,644 27,068,341 Retired 104,452 62,296 343,944 1,223,288 538,777 15,884,448 7,421,762 25,578,967 Total 600,527 189,423 806,675 2,399,731 1,351,489 34,934,057 12,365,406 52,647,308
Assets 12,946 66,363 312,385 1,429,543 1,046,024 753,076 266,562 3,886,898 Unfunded Accrued Liability 587,581 123,060 494,290 970,188 305,465 34,180,981 12,098,844 48,760,410
Annual Recommended Contribution Normal Cost with interest 30,201 5,471 8,871 42,596 34,406 1,191,684 201,908 1,515,137 Amortization of UAL with interest 36,987 7,746 31,115 175,367 55,215 2,151,627 761,599 3,219,656 Total - FYE16 67,188 13,217 39,986 217,963 89,621 3,343,311 963,507 4,734,793
Expected Claims Costs 19,841 15,890 38,722 131,232 49,616 1,583,802 756,000 2,595,103
Page 6
SECTION IV – SCHEDULE OF EMPLOYER CONTRIBUTIONS
Amortization of the unfunded actuarial liability is to be based on a schedule that extends no longer than 30 years. The contribution towards the amortization of the unfunded actuarial liability may be made in level payments or in payments increasing at the same rate as salary increases.
In the amortization schedules shown on the following pages, the amortization of the unfunded accrued liability is increasing at 4.0% for 30 years. The normal cost is expected to increase at the same rate as the assumed ultimate health care trend rate. The contributions were computed assuming that the contribution is paid at the end of the fiscal year. Projected benefit payments/employer contributions reflect only the benefit for those individuals now employed or retired, not any future entrants. .
GASB stipulates that valuations must be performed at least biennially. The following projections are intended only to illustrate long-term implications of Full Prefunding.
Page 7
SECTION IV – SCHEDULE OF EMPLOYER CONTRIBUTIONS
TOWN – 7.5%
Fiscal Year Amortization Additional Ending In Normal Cost of UAL ARC Pay-as-You-Go Contribution 2018 1,423,793 2,946,164 4,369,957 2,359,644 2,010,313 2019 1,487,864 3,064,011 4,551,875 2,454,292 2,097,583 2020 1,554,818 3,186,571 4,741,389 2,580,439 2,160,950 2021 1,624,785 3,314,034 4,938,819 2,697,077 2,241,742 2022 1,697,900 3,446,595 5,144,495 2,900,500 2,243,995 2023 1,774,306 3,584,459 5,358,765 3,073,683 2,285,082 2024 1,854,150 3,727,837 5,581,987 3,181,264 2,400,723 2025 1,937,587 3,876,950 5,814,537 3,421,752 2,392,785 2026 2,024,778 4,032,028 6,056,806 3,675,328 2,381,478 2027 2,115,893 4,193,309 6,309,202 3,817,935 2,491,267 2028 2,211,108 4,361,041 6,572,149 4,076,866 2,495,283 2029 2,310,608 4,535,483 6,846,091 4,319,351 2,526,740 2030 2,414,585 4,716,902 7,131,487 4,465,514 2,665,973 2031 2,523,241 4,905,578 7,428,819 4,683,710 2,745,109 2032 2,636,787 5,101,801 7,738,588 4,957,765 2,780,823 2033 2,755,442 5,305,873 8,061,315 5,166,453 2,894,862 2034 2,879,437 5,518,108 8,397,545 5,375,900 3,021,645 2035 3,009,012 5,738,832 8,747,844 5,615,614 3,132,230 2036 3,144,418 5,968,385 9,112,803 5,845,713 3,267,090 2037 3,285,917 6,156,564 9,442,481 6,153,397 3,289,084 2038 3,433,783 - 3,433,783 6,459,363 - 2039 3,588,303 - 3,588,303 6,732,360 - 2040 3,749,777 - 3,749,777 7,097,373 - 2041 3,918,517 - 3,918,517 7,353,492 - 2042 4,094,850 - 4,094,850 7,384,513 - 2043 4,279,118 - 4,279,118 7,589,717 - 2044 4,471,678 - 4,471,678 7,823,220 - 2045 4,672,904 - 4,672,904 7,625,104 - 2046 4,883,185 - 4,883,185 7,735,893 - 2047 5,102,928 - 5,102,928 7,816,516 - 2048 5,332,560 - 5,332,560 7,895,499 - 2049 5,572,525 - 5,572,525 7,993,329 -
* The contributions were computed assuming that the contribution is paid at the end of the fiscal year.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
Page 8
SECTION VI – SCHEDULE OF EMPLOYER CONTRIBUTIONS
LIGHT – 7.5%
Fiscal Year Amortization Ending In Normal Cost of UAL ARC Pay-as-You-Go 2018 42,596 175,367 217,963 123,047 2019 44,513 182,382 226,895 131,231 2020 46,516 189,677 236,193 145,675 2021 48,609 197,264 245,873 150,134 2022 50,796 205,155 255,951 163,624 2023 53,082 213,361 266,443 176,378 2024 55,471 - 55,471 202,500 2025 57,967 - 57,967 215,288 2026 60,576 - 60,576 213,856 2027 63,302 - 63,302 232,750 2028 66,151 - 66,151 242,620 2029 69,128 - 69,128 227,515 2030 72,239 - 72,239 215,572 2031 75,490 - 75,490 227,938 2032 78,887 - 78,887 230,001 2033 82,437 - 82,437 222,355 2034 86,147 - 86,147 238,998 2035 90,024 - 90,024 239,379 2036 94,075 - 94,075 246,908 2037 98,308 - 98,308 261,885 2038 102,732 - 102,732 248,391 2039 107,355 - 107,355 245,421 2040 112,186 - 112,186 255,900 2041 117,234 - 117,234 249,331 2042 122,510 - 122,510 251,251 2043 128,023 - 128,023 253,140 2044 133,784 - 133,784 254,671 2045 139,804 - 139,804 266,488 2046 146,095 - 146,095 245,451 2047 152,669 - 152,669 240,537 2048 159,539 - 159,539 248,520 2049 166,718 - 166,718 234,290
* The contributions were computed assuming that the contribution is paid at the middle of the fiscal year.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
Page 9
SECTION VI – SCHEDULE OF EMPLOYER CONTRIBUTIONS
CABLE – 7.5%
Fiscal Year Amortization Ending In Normal Cost of UAL ARC Pay-as-You-Go 2018 34,406 55,215 89,621 39,034 2019 35,954 57,424 93,378 63,067 2020 37,572 59,721 97,293 75,892 2021 39,263 62,110 101,373 82,268 2022 41,030 64,594 105,624 84,353 2023 42,876 67,178 110,054 98,933 2024 44,805 - 44,805 104,640 2025 46,821 - 46,821 110,712 2026 48,928 - 48,928 91,844 2027 51,130 - 51,130 103,022 2028 53,431 - 53,431 116,608 2029 55,835 - 55,835 104,802 2030 58,348 - 58,348 119,770 2031 60,974 - 60,974 134,537 2032 63,718 - 63,718 131,479 2033 66,585 - 66,585 146,790 2034 69,581 - 69,581 162,948 2035 72,712 - 72,712 157,199 2036 75,984 - 75,984 155,055 2037 79,403 - 79,403 170,187 2038 82,976 - 82,976 154,243 2039 86,710 - 86,710 147,737 2040 90,612 - 90,612 155,234 2041 94,690 - 94,690 160,573 2042 98,951 - 98,951 174,765 2043 103,404 - 103,404 176,244 2044 108,057 - 108,057 187,958 2045 112,920 - 112,920 190,288 2046 118,001 - 118,001 207,892 2047 123,311 - 123,311 203,278 2048 128,860 - 128,860 199,808 2049 134,659 - 134,659 219,274
* The contributions were computed assuming that the contribution is paid at the middle of the fiscal year.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SECTION VI – SCHEDULE OF EMPLOYER CONTRIBUTIONS
SEWER – 7.5%
Fiscal Year Amortization Ending In Normal Cost of UAL ARC Pay-as-You-Go 2018 5,471 8,554 14,025 36,580 2019 5,717 8,896 14,613 6,902 2020 5,974 9,252 15,226 7,636 2021 6,243 9,622 15,865 8,877 2022 6,524 10,007 16,531 10,647 2023 6,818 10,407 17,225 13,090 2024 7,125 10,823 17,948 16,335 2025 7,446 11,256 18,702 20,232 2026 7,781 11,706 19,487 17,204 2027 8,131 12,174 20,305 20,762 2028 8,497 12,661 21,158 24,798 2029 8,879 13,167 22,046 22,037 2030 9,279 13,694 22,973 19,578 2031 9,697 14,242 23,939 24,088 2032 10,133 14,812 24,945 22,387 2033 10,589 15,404 25,993 17,146 2034 11,066 16,020 27,086 20,272 2035 11,564 16,661 28,225 15,481 2036 12,084 17,327 29,411 17,239 2037 12,628 18,020 30,648 18,210 2038 13,196 18,741 31,937 19,125 2039 13,790 19,491 33,281 19,977 2040 14,411 14,411 20,189 2041 15,059 15,059 20,870 2042 15,737 15,737 21,520 2043 16,445 16,445 22,172 2044 17,185 17,185 22,847 2045 17,958 17,958 23,622 2046 18,766 18,766 24,395 2047 19,610 19,610 24,763 2048 20,492 20,492 25,647 2049 21,414 21,414 24,862
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SECTION VI – SCHEDULE OF EMPLOYER CONTRIBUTIONS
WATER – 7.5%
Fiscal Year Amortization Ending In Normal Cost of UAL ARC Pay-as-You-Go 2018 8,871 34,356 43,227 33,009 2019 9,270 35,731 45,001 45,422 2020 9,687 37,160 46,847 50,832 2021 10,123 38,646 48,769 55,033 2022 10,579 40,192 50,771 59,245 2023 11,055 41,800 52,855 61,164 2024 11,552 43,472 55,024 70,694 2025 12,072 45,211 57,283 73,801 2026 12,615 47,019 59,634 76,995 2027 13,183 48,900 62,083 86,738 2028 13,776 50,856 64,632 80,988 2029 14,396 52,890 67,286 80,743 2030 15,044 55,006 70,050 87,216 2031 15,721 57,206 72,927 75,368 2032 16,428 59,494 75,922 71,424 2033 17,167 61,874 79,041 74,711 2034 17,940 64,349 82,289 67,674 2035 18,747 66,923 85,670 70,332 2036 19,591 69,600 89,191 71,790 2037 20,473 72,384 92,857 72,872 2038 21,394 75,279 96,673 73,793 2039 22,357 78,290 100,647 74,244 2040 23,363 23,363 75,081 2041 24,414 24,414 76,842 2042 25,513 25,513 79,890 2043 26,661 26,661 73,248 2044 27,861 27,861 72,773 2045 29,115 29,115 73,694 2046 30,425 30,425 62,697 2047 31,794 31,794 61,734 2048 33,225 33,225 60,386 2049 34,720 34,720 57,485
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE A - ACTUARIAL ASSUMPTIONS AND METHODS
TOWN OF SHREWSBURY, ALL GROUPS
Interest Funded: 7.50% per year, net of investment expenses
Actuarial Cost Method: Entry Age Normal and Assets at Market Value
Medical Care Inflation:
Year Inflation Rate 2018 & after 4.5%
Amortization period: 22-year and 6- year level percent of pay assuming 4.0% increasing, closed basis for full prefunding. The amortization period is a specific number of years that is counted from one date, declining to zero with the passage of time.
Participation: 75% of future retirees are assumed to participate in the retiree medical plan. 75% of current actives over age 50 with at least 10 years of service are expected to elect medical coverage starting at age 65. 95% of future retirees are expected to elect life insurance.
Medical Plan Costs: It is assumed that future retirees are Medicare eligible. Per capita costs were developed from the Town developed monthly costs.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE A - ACTUARIAL ASSUMPTIONS AND METHODS
TOWN OF SHREWSBURY, ALL GROUPS
Medical Plan Selection: Current retirees who are under age 65 are assumed to remain in their current medical plan until age 65. At age 65, they are assumed to switch to a blend of Medicare plans similar to the current blend of Medicare-eligible retirees.
Current retirees over age 65 remain in their current medical plan until death.
Post-65 payments for future retirees: Similar to the pre-65 payments, a weighted average is used, but only Medicare plans are considered because of the adoption of Section 18 of MGL Chapter 32B.
Spouse’s age: Husbands are assumed to be 3 years older than their wives.
Marital status: 65% of employees are assumed to have a covered spouse at retirement.
Age-based Morbidity: Per capita costs are adjusted to reflect expected cost increases related to age. The increase in the net incurred claims was assumed to be:
Age Annual Increase
49 and below 2.6% 50-54 3.2% 55-59 3.4% 60-64 3.7% 65-69 3.2% 70-74 2.4% 75-79 1.8% 80 and over 0.0%
Pre-Age 65 Retirees: Current retirees who are under age 65 are assumed to remain in their current medical plan until age 65. Current active employees who are assumed to retire prior to age 65 are valued with a weighted-average premium. This weighted-average premium is based on the medical plan coverage of current retirees under age 65. Age weighting is not used for teachers.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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Post-Age 65 Retirees: Current retirees over age 65 remain in their current medical plan until death for purposes of measuring their contributions. It is assumed that future retirees are Medicare eligible. It is furthermore assumed that all current retirees over 65 will participate in the Medicare Supplement plan in the same proportion as current retirees over 65. Per capita costs were developed from the monthly costs. Amounts to be received in the future for the Medicare Part D Retiree Drug Subsidy are not reflected in the valuation.
Termination Benefit: 75% of current active teachers and 75% of current active non- teachers over age 50 with at least 10 years of service are expected to elect medical coverage starting at age 65.
Medical Plan Costs: The estimated gross per capita incurred claim costs for 2018-19 at age 64 and 65 are $13,190 and $4,251, respectively. Medicare eligible employees’ per capita claims costs at age 65 is $3,411.
It is assumed that future retirees participate in the same manner as current retirees. Employee cost sharing is based on current rates. The cost sharing varies by medical plan. Future cost sharing is based on the weighted average of the current cost sharing of retirees and beneficiaries.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE A - ACTUARIAL ASSUMPTIONS AND METHODS NON-TEACHERS
The below tables represent values of the assumed annual rates of withdrawal, disability, death and service retirement: Groups 1 and 2
Service Retirement Years of Rates of Age Disability Male Female Male Post Female Post Service Withdrawal 2012 Hire 2012 Hire 25 0.0001 0 0.2800 30 0.0002 5 0.1020 35 0.0003 10 0.0650 40 0.0007 15 0.0417 45 0.0010 20 0.0400 50 0.0013 0.0360 0.1019 25 0.0400 55 0.0016 0.0477 0.0469 30+ 0.0000 60 0.0018 0.1057 0.0774 0.0477 0.0469 62 0.0019 0.1473 0.1168 0.0632 0.0509 65 0.0016 0.2615 0.1939 0.1057 0.0774 69 0.0014 0.2500 0.2000 0.2136 0.1708
Group 4
Service Retirements Years of Rates of Age Disability Pre 2012 Post 2012 Service Withdrawal 25 0.0005 0 - 1 0.150 30 0.0010 2 - 3 0.125 35 0.0020 4 - 5 0.100 40 0.0025 6 - 7 0.075 45 0.0040 .0443 8 - 9 0.050 50 0.0076 .0382 0.0191 10 - 19 0.060 55 0.0076 .1110 0.0370 20+ 0.000 60 0.0065 .1871 0.0936 62 0.0065 .2176 0.1741 65 0.0000 1.0000 0.2500
Mortality: It is assumed that both pre-retirement mortality and beneficiary mortality is represented by the RP-2014 Blue Collar Mortality with Scale MP-2015, fully generational. Mortality for retired members for Group 1 and 2 is represented by the RP-2014 Blue Collar Mortality Table set forward five years for males and 3 years for females, fully generational. Mortality for retired members for Group 4 is represented by the RP-2014 Blue Collar Mortality Table set forward three years for males, and six years for females, fully generational. Mortality for disabled members for Group 1 and 2 is represented by the RP-2000 Mortality Table set forward six years. Mortality for disabled members for Group 4 is represented by the RP-2000 Mortality Table set forward two years. Generational adjusting is based on Scale MP-2015.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE A - ACTUARIAL ASSUMPTIONS AND METHODS All Teachers
The below tables represent values of the assumed annual rates of withdrawal, disability, death and service retirement:
Retirement – Males
Not in Retirement Plus Retirement Plus Age Less than 20 20+ Less than 20 20 - 30 30+ 47 0.000 0.000 0.000 0.000 0.000 48 0.000 0.000 0.000 0.000 0.000 49 0.000 0.000 0.000 0.000 0.000 50 0.000 0.020 0.000 0.010 0.020 51 0.000 0.020 0.000 0.010 0.020 52 0.000 0.020 0.000 0.010 0.020 53 0.000 0.020 0.000 0.015 0.020 54 0.000 0.030 0.000 0.025 0.020 55 0.035 0.030 0.050 0.030 0.060 56 0.035 0.035 0.050 0.060 0.200 57 0.050 0.040 0.050 0.100 0.400 58 0.055 0.050 0.050 0.150 0.500 59 0.060 0.060 0.100 0.200 0.500 60 0.075 0.150 0.100 0.250 0.400 61 0.120 0.250 0.200 0.300 0.400 62 0.140 0.300 0.200 0.350 0.350 63 0.140 0.300 0.250 0.400 0.350 64 0.140 0.300 0.250 0.400 0.350 65 0.300 0.300 0.250 0.400 0.350 66 0.300 0.250 0.300 0.300 0.400 67 0.300 0.250 0.300 0.300 0.400 68 0.300 0.250 0.300 0.300 0.400 69 0.300 0.250 0.300 0.300 0.400 70+ 1.000 1.000 1.000 1.000 1.000
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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Retirement – Females
Not in Retirement Plus Retirement Plus Age Less than 20 20+ Less than 20 20 - 30 30+ 47 0.000 0.000 0.000 0.000 0.000 48 0.000 0.000 0.000 0.000 0.000 49 0.000 0.000 0.000 0.000 0.000 50 0.000 0.010 0.000 0.010 0.015 51 0.000 0.010 0.000 0.010 0.015 52 0.000 0.015 0.000 0.010 0.015 53 0.000 0.020 0.000 0.010 0.015 54 0.000 0.020 0.000 0.010 0.020 55 0.035 0.040 0.030 0.030 0.050 56 0.035 0.040 0.030 0.050 0.150 57 0.035 0.040 0.040 0.080 0.350 58 0.050 0.060 0.080 0.100 0.350 59 0.065 0.080 0.080 0.150 0.350 60 0.085 0.150 0.100 0.200 0.350 61 0.100 0.200 0.120 0.250 0.350 62 0.120 0.200 0.120 0.300 0.350 63 0.120 0.250 0.150 0.300 0.350 64 0.200 0.300 0.200 0.300 0.350 65 0.300 0.400 0.250 0.400 0.350 66 0.300 0.300 0.250 0.300 0.350 67 0.300 0.300 0.300 0.300 0.300 68 0.300 0.300 0.300 0.300 0.300 69 0.300 0.300 0.300 0.300 0.300 70+ 1.000 1.000 1.000 1.000 1.000
Disability
Age Disability
20 0.00004 30 0.00006 40 0.00010 50 0.00050 60 0.00070 60 0.00070
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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Withdrawal
Service 0 5 10+ Age Male Female Male Female Male Female 20 0.130 0.100 0.055 0.070 0.015 0.050 30 0.150 0.150 0.054 0.088 0.015 0.045 40 0.133 0.105 0.052 0.050 0.017 0.022 50 0.162 0.098 0.070 0.050 0.023 0.020
Mortality: It is assumed that mortality is represented by the RP-2014 White Collar Mortality with Scale MP-2017, fully generational. Generational adjusting is based on Scale MP-2017.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE B - SUMMARY OF PROGRAM PROVISIONS
Eligibility: Retirement: Age 55 with 10 years of service, or 20 years of service. Eligible for immediate commencement of Medical Insurance and Life Insurance benefits.
Termination: Age 50 with 10 years of service. Eligible for deferred commencement of Medical Insurance and Life Insurance benefits at age 65.
Disability: Under age 55 with 10 years of service. Eligible for immediate commencement of Medical Insurance and Life Insurance benefits.
Benefit Types: Medical Insurance: Medical and prescription drug benefits are provided to all eligible retirees through a variety of plans as summarized in Section III.
Life Insurance: The Town of Shrewsbury contributes $4.24 per month for retirees receiving life insurance.
Duration of Benefits: Lifetime.
Dependent Coverage: Spouse benefits are payable for the lifetime of the spouse.
MGL Chapter 32B, All Medicare-eligible retirees and spouses are required to transfer to Section 18A: a Medicare supplemental plan.
Retiree Contributions: Retirees pay a variable portion of their post-retirement medical costs. The percentage varies by plan. Cost sharing for widows is 50%.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE C – CONSIDERATION OF HEALTH CARE REFORM
Summary of Effects of Selected Provisions
Early Retiree Reinsurance Program – Effective 6/1/2010: Due to the short-term nature of the payments expected to be received under this program, there is no impact on long-term GASB 45 liabilities.
Removal of Lifetime Maximum: This does not apply since the current medical plans have no lifetime maximums.
Medicare Advantage Plans - Effective 1/1/2011: The law provides for reductions to the amounts that would be provided to Medicare Advantage plans starting in 2011. Although Shrewsbury has two Medicare Advantage plans, the impact was deemed immaterial.
Expansion of Child Coverage to Age 26: Since few retirees cover children on retiree health plans, this provision will likely have a relatively small effect on the gross benefit cost. We have not reflected the impact of this cost.
Medicare Part D Subsidy - Shrinking Medicare Prescription Drug “Donut Hole”- Starting 1/1/2011: RDS payments are not reflected as on ongoing offsetting item in GASB 45 valuations, and so no impact is reflected.
Excise Tax on High-Cost Employer Health Plans (aka Cadillac Tax) - Effective 1/1/2021: There is considerable uncertainty about how the tax would be applied, and considerable latitude in grouping of participants for tax purposes. We have estimated the impact and included it in the liabilities.
Other: We have not identified any other specific provision of health care reform that would be expected to have a significant impact on the measured obligation. As additional guidance on the legislation is issued, we will continue to monitor any potential impacts.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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SCHEDULE D - GLOSSARY OF TERMS
Actuarial accrued liability That portion, as determined by a particular Actuarial Cost Method, of the Actuarial Present Value of OPEB benefits and expenses which is not provided for by future Normal Costs and therefore is the value of benefits already earned.
Actuarial assumptions Assumptions as to the occurrence of future events affecting OPEB costs, such as: mortality, withdrawal, disablement and retirement; changes in compensation and Government provided OPEB benefits; rates of investment earnings and asset appreciation or depreciation; procedures used to determine the Actuarial Value of Assets; characteristics of future entrants for Open Group Actuarial Cost Methods; and other relevant items.
Actuarial cost method A procedure for determining the Actuarial Present Value of OPEB benefits and expenses and for developing an actuarially equivalent allocation of such value to time periods, usually in the form of a Normal Cost and an Actuarial Accrued Liability.
Actuarial experience gain or loss A measure of the difference between actual experience and that expected based upon a set of Actuarial Assumptions, during the period between two Actuarial Valuation dates, as determined in accordance with a particular Actuarial Cost Method.
Amortization (of unfunded actuarial accrued liability) That portion of the OPEB plan contribution which is designed to pay interest on and to amortize the Unfunded Actuarial Accrued Liability or the Unfunded Frozen Actuarial Accrued Liability.
Annual OPEB cost An accrual-basis measure of the periodic cost of an employer’s participation in a defined benefit OPEB plan.
Annual recommended contributions of the employer (ARC) The employer’s periodic expense to a defined benefit OPEB plan, calculated in accordance with the parameters. It is the value of the cash contributions for a funded plan and the value of the expense entry in the profit and loss section of the financial statements.
Closed amortization period (closed basis) A specific number of years that is counted from one date and, therefore, declines to zero with the passage of time. For example, if the amortization period initially is thirty years on a closed basis, twenty-nine years remain after the first year, twenty-eight years after the second year, and so forth. In contrast, an open amortization period (open basis) is one that begins again or is recalculated at each actuarial valuation date. Within a maximum number of years specified by law or policy (for example, thirty years), the period may increase, decrease, or remain stable.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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Covered payroll Annual compensation paid to active employees covered by an OPEB plan. If employees also are covered by a pension plan, the covered payroll should include all elements included in compensation on which contributions to the pension plan are based. For example, if pension contributions are calculated on base pay including overtime, covered payroll includes overtime compensation.
Defined benefit OPEB plan An OPEB plan having terms that specify the benefits to be provided at or after separation from employment. The benefits may be specified in dollars (for example, a flat dollar payment or an amount based on one or more factors such as age, years of service, and compensation), or as a type or level of coverage (for example, prescription drugs or a percentage of healthcare insurance premiums).
Funded ratio The actuarial value of assets expressed as a percentage of the actuarial accrued liability.
Funding policy The program for the amounts and timing of contributions to be made by plan members, employer(s), and other contributing entities (for example, state government contributions to a local government plan) to provide the benefits specified by an OPEB plan.
Healthcare cost trend rate The rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments.
Investment return assumption (discount rate) The rate used to adjust a series of future payments to reflect the time value of money.
Level dollar amortization method The amount to be amortized is divided into equal dollar amounts to be paid over a given number of years; part of each payment is interest and part is principal (similar to a mortgage payment on a building). Because payroll can be expected to increase as a result of inflation, level dollar payments generally represent a decreasing percentage of payroll; in dollars adjusted for inflation, the payments can be expected to decrease over time.
Level percentage of projected payroll amortization method Amortization payments are calculated so that they are a constant percentage of the projected payroll of active plan members over a given number of years. The dollar amount of the payments generally will increase over time as payroll increases due to inflation; in dollars adjusted for inflation, the payments can be expected to remain level.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
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Net OPEB obligation The cumulative difference since the effective date of this Statement between annual OPEB cost and the employer’s contributions to the plan, including the OPEB liability (asset) at transition, if any, and excluding (a) short-term differences and (b) unpaid contributions that have been converted to OPEB-related debt. It will be included as a balance sheet entry on the financial statements.
Normal cost That portion of the Actuarial Present Value of OPEB benefits and expenses which is allocated to a valuation year by the Actuarial Cost Method. It is the value of benefits to be accrued in the valuation year by active employees.
OPEB-related debt All long-term liabilities of an employer to an OPEB plan, the payment of which is not included in the annual required contributions of a sole or agent employer (ARC) or the actuarially determined required contributions of a cost-sharing employer. Payments generally are made in accordance with installment contracts that usually include interest. Examples include contractually deferred contributions and amounts assessed to an employer upon joining a multiple-employer plan.
Other postemployment benefits Postemployment benefits other than pension benefits. Other postemployment benefits (OPEB) include postemployment healthcare benefits, regardless of the type of plan that provides them, and all postemployment benefits provided separately from a pension plan, excluding benefits defined as termination offers and benefits.
Pay-as-you-go A method of financing a OPEB plan under which the contributions to the plan are generally made at about the same time and in about the same amount as benefit payments and expenses becoming due.
Required supplementary information (RSI) Schedules, statistical data, and other information that are an essential part of financial reporting and should be presented with, but are not part of, the basic financial statements of a governmental entity.
Town of Shrewsbury GASB 43 & 45 June 30, 2018
Memo Engineering Department
Date: December 7, 2018
To: Kevin J. Mizikar, Town Manager
From: Vincent H. Thai, E.I.T., Jr. Civil Engineer / Compliance Jeffrey W. Howland, P.E., Director of Public Works
Subject: Stormwater Management Rules & Regulations Proposed Stormwater Application Review & Inspection Fee
Attached is the Stormwater Application Review & Inspection Fee made as part of the Rate Model under Section 7 of the Stormwater Management Rules & Regulations.
The fees were generated based on our research of cities and towns with a stormwater management permit (can also be known as a land disturbance permit).
The Department of Public Works finds these fees to be reasonable based on what those cities and towns are charging their applicants. Stormwater Application Review & Inspection Fee
The Application Review Fee is based on the land area that will be disturbed by construction and post- construction activities. The application fee is:
1) For disturbances less than 40,000 square feet: a) $75 for disturbance equal to or greater than 5,000 square feet, but equal to or less than 10,000 square feet; b) Plus $25 per additional 10,000 square feet (or portion thereof) up to 40,000 square feet. 2) For disturbances greater than 40,000 square feet: a) $200 for disturbance greater than 40,000 square feet, but equal to or less than 1 acre; b) Plus $50 per additional acre (or portion thereof) up to 5 acres; c) Plus $50 per each additional 5 acres (or portion thereof). The Inspection Fee is based off the 7 inspections to be conducted by Town staff (or its designated agent) in accordance with Section 20b of the Stormwater Rules & Regulations at $50 per inspection for a total of $350.
The table below summarizes the Application Review & Inspection Fee based on the amount of land disturbed.
Amount of Land Review Fee Inspection Fee Total Disturbed 5,000 ≤ X ≤ 10,000 sqft $75 $350 $425 10,000 < X ≤ 20,000 sqft $100 $350 $450 20,000 < X ≤ 30,000 sqft $125 $350 $475 30,000 < X ≤ 40,000 sqft $150 $350 $500 40,000 sqft < X ≤ 1 acre $200 $350 $550 2 < X ≤ 3 acre $250 $350 $600 3 < X ≤ 4 acre $300 $350 $650 4 < X ≤ 5 acre $350 $350 $700 +$50 per each additional 5 acres (or portion thereof)
The applicant may file a waiver for a 50% reduction on the Review Fee if filed under Planning Board for Site Plan or Subdivision Review.
An additional fee may be charge to cover outside professional consultant review services for the project if the Department of Public Works (“DPW”) determines that such services are necessary due to the scope and complexity of the project. The consultant services may include, but are not limited to, review by engineers, hydrologists, attorneys, or other professionals for hydrologic and drainage analysis, stormwater quality analysis, site inspections, as-built plan review, and analysis of legal issues. The applicant will be provided an estimate of this additional fee as determined by the Department of Public Works. This fee must be paid to the Town prior to the start of the review process, unless the DPW approves other arrangements for the applicant to pay consultants directly when services are provided.
Grafton, MA If btwn 1,000 cuyd to 40,000 sqft, $100 up to 1000 cuyd $50 per 100 cuyd
Otherwise, $100 up to 1 acre + $50 per additional (or portion thereof) acre up to 5 acres + $50 per additional (or portion thereof of) 5 acres
Notes +$50 per waiver 50% off if filed under WPA or Grafton Wetlands Protection Bylaw Minimum Fee $100 Right to Hire Consultant + Charge North Reading, $500 Application Fee MA +$50 per Inspection Right to Hire Consultant + Charge Northampton, MA Residential Site (1 unit, 1-5 acres $700 disturbed) Residential Site (1 unit, >5 acres $1,100 disturbed) Minor Residential Subdivision (1 lot, $700 or $1 per lf of driveway or 1-5 acres) common driveway (greater of) Residential Subdivision or Other $2,000 or $2 per lf of driveway or Residential (e.g. Townhouse or common driveway (greater of) Retirement Development, >2 units in a common plan of development) Commercial Subdivision Commercial or Industrial Site $700 per acre disturbed (max $5000) Land Disturbance Only (no change in $100 per acre disturbed site use or buildings, e.g. reconstruction of parking lots, roads, and driveways; utility work; and lawn and landscaping work) *Includes Inspection Fees Westborough, If below 1 acre disturbed: MA Limited Review, $25 Limited Review (Commercial), $100
If above 1 acre disturbed: Single Family $100 Residential/Subdivision $500 Commercial $750 Weston, MA Residential (Single or Two-Family) Major Permit (incl. 6 inspections) $600 Minor Permit (incl. 4 inspections) $250
Non-Residential (Commercial, Institutional, Multi-Family, etc.) Major Permit (incl. 6 inspections) $800 Minor Permit (incl. 4 inspections) $350
+$75 per additional inspection Minor: Creation of IA btwn 750 sqft to 2,500 sqft (among other scenarios) Major: Creation of IA >2,500 sqft, or land disturbance greater than 5,000 sqft (among other scenarios)
Office of the TELEPHONE: (508) 841-8502 ENGINEERING DEPARTMENT FAX: (508) 841-8497 [email protected]
TOWN OF SHREWSBURY Richard D. Carney Municipal Office Building 100 Maple Avenue Shrewsbury, Massachusetts 01545-5398
November 8, 2018
Mr. John Lebeaux, Chair Shrewsbury Board of Selectmen, 100 Maple Avenue, Shrewsbury, MA 01545.
Re: Highway Permit Fee Change Request – Trench, Street Opening & Driveway Permits
Dear Mr. Lebeaux:
The Engineering Department has been reviewing the current permitting process for contractors requiring any work within the Towns right-of-way. More specifically, we have reviewed the driveway, street opening, and trench permits fee structure, and bond requirements. Currently, the Highway Department charges $25 for street opening and trench permits; there is no charge for driveway permits.
We have observed that a lot of contractors and homeowners are not aware of the driveway permit, thus have not applied for one. This does not allow the Highway Department to perform the necessary inspections and track the work.
The lack of permits and inspections has resulted in a number of issues in Town. These include public sidewalks crossing driveways being closed due to driveways not being completed promptly. We have had some contractors/utility companies close streets without notifying Highway or Engineering. Several trenches have had to be repaired by the Highway Department as they were not done correctly.
We are currently working on updating the forms and transferring them to Viewpoint so that we can effectively track them and coordinate inspections. This will allow the contractor to complete the forms online; should a contractor want to complete the forms manually, then we would charge a $15 administration fee (similar to the Building Department and SELCO does now). The fee will cover the time and expense of staff to enter the form.
Highway fee change request 11.08.18 Page 2 of 3
The long-term goal is to tie the forms to building permits, so that homeowner/developers are aware of these permits. This will allow the Highway Department to better track work in the public streets.
We have conducted a review of the surrounding towns and cities fee structure for similar permits; it appears that our fee and bond structures are significantly lower in comparison.
As part of updating the forms, we a looking to change the fee structures and bond requirements to be more in line with other municipalities. To this effect, we are seeking the permission of the Selectmen to require the following as part of these permits:
Old Fee New Fee Old Bond New Bond Requirement Requirement Trench Permit $25 $25 $5,000 1 $5,000 1 (Private Property) Street Opening Permit $5,000 1 $25 $150 $5,000 1 (Public ROW) $1,000 2 Trench Permit $5,000 1 $25 $0 3 $5,000 1 (Public ROW) $1,000 2 Driveway Permit $0 $50 $0 $1,000 2
1 Performance Bond (required for all contractors working in Town). 2 Cash Bond – refundable after the satisfactory completion of the work. 3 Trench Permit fee is included in Street Opening Permit as both are required.
In addition to the changes in fees and bonds shown above, we request that the following new fees be included as part of the Street Opening Permit conditions:
1. If a contractor calls for an inspection but is not ready when the inspector turns up, there will be an additional $100.00 for each re-inspection. 2. If a contractor commences work in the public way without pulling a permit, the fee will increase to $1,000.00.
We plan to introduce these new forms and fee structure next spring before the start of the construction season. We will be placing a message on the Town website ahead of this to make contractor and homeowners are aware of the upcoming changes,
We have enclosed copies of the updated applications forms for your information and review.
We look forward to discussing the proposed changes and answering any questions the Selectmen may have at your next scheduled meeting. In the meantime, if you have any questions, please feel free to reach out to me at (508) 841-8502 or [email protected].
Highway fee change request 11.08.18 Page 3 of 3
Sincerely,
Andy Truman, PE Senior Civil Engineer
CC: file Jeff Howland, PE – DPW Director Nick Repekta – Highway Division Manager
Encl. z:\_dpw forms_beginning 10-2018\bos fee request - 10-23-18.docx TOWN OF SHREWSBURY Richard D. Carney Municipal Office Building Permit Fee $50.00 100 Maple Avenue, Shrewsbury, MA 01545-5338
T: (508) 841-8513 E: [email protected] Fee Paid: Cash:
TOWN OF SHREWSBURY HIGHWAY DIVISION Check #:
DRIVEWAY PERMIT APPLICATION Received by:
ALL APPLICANTS MUST COMPLETE ITEMS 1 THROUGH 9
1. Dig Safe Number: Date: Valid thru:
2. Project Address Street number (or range) and Street Name
3. Owner 4. Start Date / Completion Date
5. Telephone / Email (Optional)
6. Contractor
7. Contractor Address
Telephone Email
8. Check appropriate description of work: Resurface Driveway New Driveway Construction
9. Description/Explanation:
TERMS AND CONDITIONS OF THE WORK: A. All work in Public Ways shall be done in such a manner to protect the Public from Liability or accident. The Contractor or Owner shall be responsible for all necessary barricades, signs and other Traffic Control devices. Work within the Public Way only to be performed between April 1 and December 1 in any calendar year. B. The Contractor or Owner shall be responsible for property disposal of all surplus materials. Surplus material may not be stored within the Public Way. C. The Contractor shall notify the Highway Division for an inspection 24 hours before completing work. D. Driveway grades at the applicant’s property line shall be a minimum of 8-inches and not more that 12-inches higher than the existing edge of the roadway pavement at the gutter line and width should not exceed 24-feet. The Town will not be responsible for problems created by the improper installation of driveways. E. If the driveway crosses a public sidewalk, grades adjacent to the crossing shall meet ADA/MAAB requirements. F. All work shall be completed in 180 days of issuance of the permit within the Public Way. G. No brick or stone pavers, granite cobbles, concrete or stamped concrete will be allowed, within the Public Way, without written approval from the Board of Selectmen. H. A $1,000.00 Cash Bond is required; the bond will be returned upon completion of the work.
I have read and understood the above terms and conditions: Date Signature of Applicant/Contractor
Inspected by: Date: Permit Approved by:
Approved Disapproved Date
Bond Received $ Bond Released $ Town of Shrewsbury Permit Number______100 Maple Avenue Date Issued______Shrewsbury, MA 01545 Expiration Date______Highway Department (permit is valid for 180 days from date of issue) 508-841-8513 Fees: Fax: 508-841-8497 Street Opening $150.00 [email protected] Trench Permit incl.
Check all that apply Application For o Permit to Open, Occupy, Use and obstruct a portion of a public way Town of Shrewsbury: General bylaws of the Town Article 12 (as amended) Pursuant to G.L.c.82A§ 1 and 520 CMR 14.00 et seq. (as amended) o Permit to open a trench in the public way Pursuant to G.L.c.82A§ 1 and 520 CMR 14.00 et seq. (as amended)
THIS PERMIT MUST BE FULLY COMPLETED PRIOR TO CONSIDERATION
Location(s) of Excavation: Street Address:
Name of Applicant: Phone: Cell:
Street Address:
City/Town State Zip
Name of Excavating Contractor: Phone: Cell:
Street Address: Emergency Contact:
City/Town State Zip Cell:
Name of Equipment Operator: Massachusetts Hoisting License #
Street Address: License Grade:
City/Town State Zip Expiration Date:
Name of Competent Person (As defined by 520 CMR 14.02):
Street Address: Phone: Cell:
City/Town State Zip
Name of Owner(s) of Property: Phone: Cell:
Street Address:
City/Town State Zip
Page 1 of 6 Description, location and purpose of proposed trench/opening Please describe the exact location of the proposed work and its purpose (include a description of what is (or is intended) to be laid in proposed trench (eg; pipes/cable lines etc.) Street address: ______
Description is as follows: Starting Point:______Finish Point:______
Size of Opening: Width:______Depth:______Length:______
For the purpose of:______
SPECIAL CONDITIONS:______Digsafe Number Date:______Proof of Workman's Compensation: Certificate of Insurance #: (Certificate of Insurance and a copy of the endorsement to their insurance policy with the Town of Shrewsbury named as additional insured.)
Name and Contact Information of Insurer: Policy Expiration Date: Cash Bond: Date:______Amount:$______(minimum $1,000) Security Bond Issued by: Date:______Amount:$______(minimum $5,000)
BY SIGNING THIS FORM, THE APPLICANT, OWNER, AND EXCAVATOR ALL ACKNOWLEDGE AND CERTIFY THAT THEY ARE FAMILIAR WITH, OR, BEFORE COMMENCEMENT OF THE WORK, WILL BECOME FAMILIAR WITH, ALL LAWS AND REGULATIONS APPLICABLE TO WORK PROPOSED, INCLUDING OSHA REGULATIONS, G.L. c. 82A, 520 CMR 14.00 et seq., AND ANY APPLICABLE MUNICIPAL ORDINANCES, BY-LAWS AND REGULATIONS AND THEY COVENANT AND AGREE THAT ALL WORK DONE UNDER THE PERMIT ISSUED FOR SUCH WORK WILL COMPLY THEREWITH IN ALL RESPECTS AND WITH THE CONDITIONS SET FORTH BELOW.
THE UNDERSIGNED APPLICANT, OWNER AND EXCAVATOR AGREE JOINTLY AND SEVERALLY TO REIMBURSE THE MUNICIPALITY FOR ANY AND ALL COSTS AND EXPENSES INCURRED BY THE MUNICIPALITY IN CONNECTION WITH THIS PERMIT AND THE WORK CONDUCTED THEREUNDER, INCLUDING BUT NOT LIMITED TO ENFORCING THE REQUIREMENTS OF STATE LAW AND CONDITIONS OF THIS PERMIT, INSPECTIONS MADE TO ASSURE COMPLIANCE THEREWITH, AND MEASURES TAKEN BY THE MUNICIPALITY TO PROTECT THE PUBLIC WHERE THE APPLICANT, OWNER OR EXCAVATOR HAS FAILED TO COMPLY THEREWITH INCLUDING POLICE DETAILS AND OTHER REMEDIAL MEASURES DEEMED NECESSARY BY THE MUNICIPALITY.
THE UNDERSIGNED APPLICANT, OWNER AND EXCAVATOR AGREE JOINTLY AND SEVERALLY TO DEFEND, INDEMNIFY, AND HOLD HARMLESS THE MUNICIPALITY AND ALL OF ITS AGENTS AND EMPLOYEES FROM ANY AND ALL LIABILITY, CAUSES OR ACTION, COSTS, AND EXPENSES RESULTING FROM OR ARISING OUT OF ANY INJURY, DEATH, LOSS, OR DAMAGE TO ANY PERSON OR PROPERTY DURING THE WORK CONDUCTED UNDER THIS PERMIT.
APPLICANT SIGNATURE
______DATE______
EXCAVATOR SIGNATURE (IF DIFFERENT)
______DATE______
OWNER'S SIGNATURE (IF DIFFERENT)
______DATE______
Page 2 of 6 For Town Use --- Do not write in this section
$150.00 Permit fee Received (yes)____(no)_____ PERMIT APPROVED BY:
PERMITTING AUTHORITY: TOWN OF SHREWSBURY
DATE: CONDITIONS OF APPROVAL:
TOWN CONDITIONS AND REQUIREMENTS
1 Permits to open the road or sidewalk must be obtained at least forty-eight (48) hours before commencing of opening or excavation unless the Highway Manager has determined that an emergency situation exists 2 Flow fill shall be required on all trenches unless waived by the Highway Manager or his/her delegates. 3 The Highway Department shall determine which roads are secondary and which roads are main roads. 4 All excavations commencing in the month of October must be permanently repaired by November 15th. 5 Once the Highway Department notifies a contractor that one of his trenches is in substantial need of repair, said contractor will have twenty four (24) hours to repair said trench. At the end of the said time the Highway Department will have the right to repair said trench and deduct the cost of repair from the contractor's bond. 6 The contractor shall give the Highway Department twenty-four (24) hours notice for inspections. If the work is not ready for inspection, an additional fee of $100.00 will be imposed for reinspection. 7 The contractor shall not close any public streets or ways without first seeking approval from the Board of Selectmen 8 The contractor shall not open any streets on Public holidays or Satudays without the approval of the Highway Manager. If permission is granted, the contractor will be responsible for paying the inspector. 9 The contractor shall refer to the Board of Selectmen's Policy Statement #24 regarding street openings in newly paved streets. 10 A penalty permit shall be issued to any contractor commencing work prior to obtaining a regular Street Opening Permit. The fee for this permit shall increase to $1,000.00.
Page 3 of 6 CONDITIONS AND REQUIREMENTS PURSUANT TO G.L.C.82A AND 520 CMR 14.00 et seq.(as amended)
By signing the application, the applicant understands and agrees to comply with the following: i. No trench may be excavated unless the requirements of sections 40 through 40D of chapter 82, and any accompanying regulations, have been met and this permit is invalid unless and until said requirements have been complied with by the excavator applying for the permit including, but not limited to, the establishment of a valid excavation number with the underground plant damage prevention system as said system is defined in section 76D of chapter 164 (DIG SAFE); ii.Trenches may pose a significant health and safety hazard. Pursuant to Section 1 of Chapter 82 of the General Laws, an excavator shall not leave any open trench unattended without first making every reasonable effort to eliminate any recognized safety hazard that may exist as a result of leaving said open trench unattended. Excavators should consult regulations promulgated by the Department of Public Safety in order to familiarize themselves with the recognized safety hazards associated with excavations and open trenches and the procedures required or recommended by said department in order to make every reasonable effort to eliminate said safety hazards which may include covering, barricading or otherwise protecting open trenches from accidental entry. iii.Persons engaging in any trenching operation shall familiarize themselves with the federal safety standards promulgated by the Occupational Safety and Health Administration on excavations; 29 CFR 1926.650 et.seq., entitled Subpart P "Excavations". iv. Excavators engaging in any trenching operation who utilize hoisting or other mechanical equipment subject to chapter 146 shall only employ individuals licensed to operate said equipment by the Department of Public Safety pursuant to said chapter and this permit must be presented to said licensed operator before any excavation is commenced. v. By applying for, accepting and signing this permit, the applicant hereby attests to the following: (1) that they have read and understands the regulations promulgated by the Department of Public Safety with regard to construction related excavations and trench safety; (2) that he has read and understands the federal safety standards promulgated by the Occupational Safety and Health Administration on excavations: 29 CMR 1926.650 et.seq., entitled Subpart P "Excavations" as well as any other excavation requirements established by this municipality; and (3) that he is aware of and has, with regard to the proposed trench excavation on private property or proposed excavation of a city or town public way that forms the basis of the permit application, complied with the requirements of sections 40-40D of chapter 82A. vi. This permit shall be posted in plain view on the site of the trench.
For additional information please visit the Department of Public Safety's website at www.mass.gov/dps
Summary of Excavation and Trench Safety Regulation (520 CMR 14.00 et seq.)
This summary was prepared by the Massachusetts Department of Public Safety pursuant to M.G.L.c.82A and does not include all requirements of the 520 CMR 14.00. To view the full regulation and M.G.L.c.82A, go to www.mass.gov/dps. Pursuant to M.G.L.c.82,§ 1, the Department of Public Safety, jointly with the Division of Occupational Safety, drafted regulations relative to trench safety. The regulation is codified in section 14.00 of title 520 of the Code of Massachusetts Regulations. The regulation requires all excavators to obtain a permit prior to the excavation of a trench made for a construction-related purpose on public or private land or rights-of-way. All municipalities must establish a local permitting authority for the purpose of issuing permits for trenches within their municipality. Trenches on land owned or controlled by a public (state) agency requires a permit to be issued by that public agency unless otherwise designated.
In addition to the permitting requirements mandated by statute, the trench safety regulations require that all excavators, whether public or private, take specific precautions to protect the general public and prevent unauthorized access to unattended trenches. Accordingly, unattended trenches must be covered, barricaded or backfilled.Covers must be road plates at least 3/4" thick or equivalent; barricades must be fences at least 6' high with no openings greater than 4" between vertical supports; backfilling must be sufficient to eliminate the trench. Alternatively, excavators may choose to attend trenches at all times, for instance by hiring a police detail, security guard or other attendant who will be present during times when the trench will be unattended by the excavator.
The regulations further provide that local permitting authorities, the Department of Public Safety, or the Division of Occupational Safety may order an immediate shutdown of a trench in the event of a death or serious injury; the failure to obtain a permit; or the failure to implement or effectively use adequate protections for the general public. The trench shall remain shutdown
Page 4 of 6 until re-inspected and authorized to re-open provided, however, that excavators shall have the right to appeal an immediate shutdown. Permitting authorities are further authorized to suspend or revoke a permit following a hearing. Excavators may also be subject to administrative fines issued by the Department of Public Safety for identified violations.
Summary of 1926 CFR Subpart P -OSHA Excavation Standard
This is a worker protection standard, and is designed to protect employees who are working inside a trench. This summary was prepared by the Massachusetts Division of Occupational Safety and not OSHA for informational purposes only and does not constitute an official interpretation by OSHA of their regulations, and may not include all aspects of the standard. For further information or a full copy of the standard go to www.osha.gov.
● Trench Definition per the OSHA standard: ~ An excavation made below the surface of the ground, narrow in relation to its length. ~ In general, the depth is greater than the width, but the width of the trench is not greater than fifteen feet. ● Protective Systems to prevent soil wall collapse are always required in trenches deeper than 5', and are also required in trenches less than 5' deep when the competent person determines that a hazard exists. Protection options include: ~ Shoring. Shoring must be used in accordance with the OSHA Excavation standard appendices, the equipment manufacturer's tabulated data, or designed by a registered professional engineer. ~ Shielding.(Trench Boxes). Trench boxes must be used in accordance with the equipment manufacturer's tabulated data, or a registered professional engineer. ~ Sloping or Benching. In Type C soils (what is most typically encountered) the excavation must extend horizontally 1 1/2 feet for every foot of trench depth on both sides, 1 foot for Type B soils, and 3/4 foot for Type A soils. ~ A registered professional engineer must design protective systems for all excavations greater than 20' in depth. ● Ladders must be used in trenches deeper than 4'. ~ Ladders must be inside the trench with workers at all times, and located within 25' of unobstructed lateral travel for every worker in the trench. ~ Ladders must extend 3' above the top of the trench so workers can safely get onto and off of the ladder. ● Inspections of every trench worksite are required: ~ Prior to the start of each shift, and again when there is a change in conditions such as a rainstorm. ~ Inspections must be conducted by the competent person (see below). ● Competent Person(s) is: ~ Capable (i.e., trained and knowledgeable) in identifying existing and predictable hazards in the trench, and other working conditions which may pose a hazard to workers, and ~ Authorized by management to take necessary corrective action to eliminate the hazards. Employees must be removed from hazardous areas until the hazard has been corrected. ● Underground Utilities must be: ~ Identified prior to opening the excavation (e.g., contact DIGSAFE). ~ Located by safe and acceptable means while excavating. ~ Protected, supported, or removed once exposed. ● Spoils must be kept back a minimum of 2' from the edge of the trench. ● Surface Encumbrances creating a hazard must be removed or supported to safeguard employees. Keep heavy equipment and heavy material as far back from the edge of the trench as possible. ● Stability of Adjacent Structures: ~ Where the stability of adjacent structures is endangered by creation of the trench, they must be underpinned, braced, or otherwise supported. ~ Sidewalks, pavements, etc. shall not be undermined unless a support system or other method of protection is provided. ● Protection from water accumulation hazards: ~ It is not allowable for employees to work in trenches with accumulated water. If water control such as pumping is used to prevent water accumulation, this must be monitored by the competent person. ~ If the trench interrupts natural drainage of surface water, ditches, dikes or other means must be used to prevent this water from entering the excavation. ● Additional Requirements: ~ For mobile equipment operated near the edge of a trench, a warning system such as barricades or stop logs must be used. ~ Employees are not permitted to work underneath loads. Operators may not remain in vehicles being loaded unless
Page 5 of 6 vehicles are equipped with adequate protection as per 1926.601 (b) (6). ~ Employees must wear high-visibility clothing in traffic work zones. ~ Air monitoring must be conducted in trenches deeper than 4' if the potential for a hazardous atmosphere exists. If a hazardous atmosphere is found to exist (e.g.,O2<19.5% or >23.5%, 20% LEL, specific chemical hazard), adequate protections shall be taken such as ventilation of the space. ~ Walkways are required where employees must cross over the trench. Walkways with guardrails must be provided for crossing over trenches > 6' deep. ~ Employees must be protected from loose rock or soil through protections such as scaling or protective barricades.
Page 6 of 6 Town of Shrewsbury Permit Number______100 Maple Avenue Date Issued______Shrewsbury, MA 01545 Expiration Date______Highway Department (permit is valid for 180 days from date of issue) 508-841-8513 Fees: Fax: 508-841-8497 Trench Permit $25.00 [email protected]
Application For Permit to open a trench on private property Pursuant to G.L.c.82A§ 1 and 520 CMR 14.00 et seq. (as amended)
THIS PERMIT MUST BE FULLY COMPLETED PRIOR TO CONSIDERATION Location(s) of Excavation: Street Address:
Name of Applicant: Phone: Cell:
Street Address:
City/Town State Zip
Name of Excavating Contractor: Phone: Cell:
Street Address:
City/Town State Zip
Name of Equipment Operator: Massachusetts Hoisting License #
Street Address: License Grade:
City/Town State Zip Expiration Date:
Name of Competent Person (As defined by 520 CMR 14.02):
Street Address: Phone: Cell:
City/Town State Zip Name of Owner(s) of Property: Phone: Cell:
Street Address:
City/Town State Zip
Other Contact
Page 1 of 5 Description, location and purpose of proposed trench Please describe the exact location of the proposed work and its purpose (include a description of what is (or is intended) to be laid in proposed trench (eg; soil testing/pipes/cable lines etc.)
Street address: ______
Description is as follows: Starting Point:______Finish Point:______
Size of Opening: Width:______Depth:______Length:______
For the purpose of:______
SPECIAL CONDITIONS:______
______Proof of Workman's Compensation: Certificate of Insurance #: (Certificate of Insurance and a copy of the endorsement to their insurance policy with the Town of Shrewsbury named as additional insured.)
Name and Contact Information of Insurer: Policy Expiration Date: Digsafe #: Date:______Number______Security Bond Issued by: Date:______Amount:$______(minimum $5,000) BY SIGNING THIS FORM, THE APPLICANT, OWNER, AND EXCAVATOR ALL ACKNOWLEDGE AND CERTIFY THAT THEY ARE FAMILIAR WITH, OR, BEFORE COMMENCEMENT OF THE WORK, WILL BECOME FAMILIAR WITH, ALL LAWS AND REGULATIONS APPLICABLE TO WORK PROPOSED, INCLUDING OSHA REGULATIONS, G.L. c. 82A, 520 CMR 14.00 et seq., AND ANY APPLICABLE MUNICIPAL ORDINANCES, BY-LAWS AND REGULATIONS AND THEY COVENANT AND AGREE THAT ALL WORK DONE UNDER THE PERMIT ISSUED FOR SUCH WORK WILL COMPLY THEREWITH IN ALL RESPECTS AND WITH THE CONDITIONS SET FORTH BELOW.
THE UNDERSIGNED OWNER AUTHORIZES THE APPLICANT TO APPLY FOR THE PERMIT AND THE EXCAVATOR TO UNDERTAKE SUCH WORK ON THE PROPERTY OF THE OWNER, AND ALSO, FOR THE DURATION OF CONSTRUCTION, AUTHORIZES PERSONS DULY APPOINTED BY THE MUNICIPALITY TO ENTER UPON THE PROPERTY TO MONITOR AND INSPECT THE WORK FOR CONFORMITY WITH THE CONDITIONS ATTACHED HERETO AND THE LAWS AND REGULATIONS GOVERNING SUCH WORK.
THE UNDERSIGNED APPLICANT, OWNER AND EXCAVATOR AGREE JOINTLY AND SEVERALLY TO REIMBURSE THE MUNICIPALITY FOR ANY AND ALL COSTS AND EXPENSES INCURRED BY THE MUNICIPALITY IN CONNECTION WITH THIS PERMIT AND THE WORK CONDUCTED THEREUNDER, INCLUDING BUT NOT LIMITED TO ENFORCING THE REQUIREMENTS OF STATE LAW AND CONDITIONS OF THIS PERMIT, INSPECTIONS MADE TO ASSURE COMPLIANCE THEREWITH, AND MEASURES TAKEN BY THE MUNICIPALITY TO PROTECT THE PUBLIC WHERE THE APPLICANT, OWNER OR EXCAVATOR HAS FAILED TO COMPLY THEREWITH INCLUDING POLICE DETAILS AND OTHER REMEDIAL MEASURES DEEMED NECESSARY BY THE MUNICIPALITY.
THE UNDERSIGNED APPLICANT, OWNER AND EXCAVATOR AGREE JOINTLY AND SEVERALLY TO DEFEND, INDEMNIFY, AND HOLD HARMLESS THE MUNICIPALITY AND ALL OF ITS AGENTS AND EMPLOYEES FROM ANY AND ALL LIABILITY, CAUSES OR ACTION, COSTS, AND EXPENSES RESULTING FROM OR ARISING OUT OF ANY INJURY, DEATH, LOSS, OR DAMAGE TO ANY PERSON OR PROPERTY DURING THE WORK CONDUCTED UNDER THIS PERMIT.
Page 2 of 5 APPLICANT SIGNATURE
______DATE______
EXCAVATOR SIGNATURE (IF DIFFERENT)
______DATE______
OWNER'S SIGNATURE (IF DIFFERENT)
______DATE______
For Town Use --- Do not write in this section
$______Permit fee Received (yes)____(no)_____ PERMIT APPROVED BY:
PERMITTING AUTHORITY: TOWN OF SHREWSBURY DATE: CONDITIONS OF APPROVAL
CONDITIONS AND REQUIREMENTS PURSUANT TO G.L.C.82A AND 520 CMR 14.00 et seq.(as amended)
By signing the application, the applicant understands and agrees to comply with the following: i. No trench may be excavated unless the requirements of sections 40 through 40D of chapter 82, and any accompanying regulations, have been met and this permit is invalid unless and until said requirements have been complied with by the excavator applying for the permit including, but not limited to, the establishment of a valid excavation number with the underground plant damage prevention system as said system is defined in section 76D of chapter 164 (DIG SAFE); ii.Trenches may pose a significant health and safety hazard. Pursuant to Section 1 of Chapter 82 of the General Laws, an excavator shall not leave any open trench unattended without first making every reasonable effort to eliminate any recognized safety hazard that may exist as a result of leaving said open trench unattended. Excavators should consult regulations promulgated by the Department of Public Safety in order to familiarize themselves with the recognized safety hazards associated with excavations and open trenches and the procedures required or recommended by said department in order to make every reasonable effort to eliminate said safety hazards which may include covering, barricading or otherwise protecting open trenches from accidental entry. iii.Persons engaging in any trenching operation shall familiarize themselves with the federal safety standards promulgated by the Occupational Safety and Health Administration on excavations; 29 CFR 1926.650 et.seq., entitled Subpart P "Excavations". iv. Excavators engaging in any trenching operation who utilize hoisting or other mechanical equipment subject to chapter 146 shall only employ individuals licensed to operate said equipment by the Department of Public Safety pursuant to said chapter and this permit must be presented to said licensed operator before any excavation is commenced. v. By applying for, accepting and signing this permit, the applicant hereby attests to the following: (1) that they have read and understands the regulations promulgated by the Department of Public Safety with regard to construction related excavations and trench safety; (2) that he has read and understands the federal safety standards promulgated by the Occupational Safety and Health Administration on excavations: 29 CMR 1926.650 et.seq., entitled Subpart P "Excavations" as well as any other excavation requirements established by this municipality; and (3) that he is aware of and has, with regard to the proposed trench excavation on private property or proposed excavation of a city or town public way that forms the basis of the permit application, complied with the requirements of sections 40-40D of chapter 82A. vi. This permit shall be posted in plain view on the site of the trench.
Page 3 of 5 For additional information please visit the Department of Public Safety's website at www.mass.gov/dps
Summary of Excavation and Trench Safety Regulation (520 CMR 14.00 et seq.)
This summary was prepared by the Massachusetts Department of Public Safety pursuant to M.G.L.c.82A and does not include all requirements of the 520 CMR 14.00. To view the full regulation and M.G.L.c.82A, go to www.mass.gov/dps. Pursuant to M.G.L.c.82,§ 1, the Department of Public Safety, jointly with the Division of Occupational Safety, drafted regulations relative to trench safety. The regulation is codified in section 14.00 of title 520 of the Code of Massachusetts Regulations. The regulation requires all excavators to obtain a permit prior to the excavation of a trench made for a construction-related purpose on public or private land or rights-of-way. All municipalities must establish a local permitting authority for the purpose of issuing permits for trenches within their municipality. Trenches on land owned or controlled by a public (state) agency requires a permit to be issued by that public agency unless otherwise designated.
In addition to the permitting requirements mandated by statute, the trench safety regulations require that all excavators, whether public or private, take specific precautions to protect the general public and prevent unauthorized access to unattended trenches. Accordingly, unattended trenches must be covered, barricaded or backfilled.Covers must be road plates at least 3/4" thick or equivalent; barricades must be fences at least 6' high with no openings greater than 4" between vertical supports; backfilling must be sufficient to eliminate the trench. Alternatively, excavators may choose to attend trenches at all times, for instance by hiring a police detail, security guard or other attendant who will be present during times when the trench will be unattended by the excavator.
The regulations further provide that local permitting authorities, the Department of Public Safety, or the Division of Occupational Safety may order an immediate shutdown of a trench in the event of a death or serious injury; the failure to obtain a permit; or the failure to implement or effectively use adequate protections for the general public. The trench shall remain shutdown until re-inspected and authorized to re-open provided, however, that excavators shall have the right to appeal an immediate shutdown. Permitting authorities are further authorized to suspend or revoke a permit following a hearing. Excavators may also be subject to administrative fines issued by the Department of Public Safety for identified violations.
Summary of 1926 CFR Subpart P -OSHA Excavation Standard
This is a worker protection standard, and is designed to protect employees who are working inside a trench. This summary was prepared by the Massachusetts Division of Occupational Safety and not OSHA for informational purposes only and does not constitute an official interpretation by OSHA of their regulations, and may not include all aspects of the standard. For further information or a full copy of the standard go to www.osha.gov.
● Trench Definition per the OSHA standard: ~ An excavation made below the surface of the ground, narrow in relation to its length. ~ In general, the depth is greater than the width, but the width of the trench is not greater than fifteen feet. ● Protective Systems to prevent soil wall collapse are always required in trenches deeper than 5', and are also required in trenches less than 5' deep when the competent person determines that a hazard exists. Protection options include: ~ Shoring. Shoring must be used in accordance with the OSHA Excavation standard appendices, the equipment manufacturer's tabulated data, or designed by a registered professional engineer. ~ Shielding.(Trench Boxes). Trench boxes must be used in accordance with the equipment manufacturer's tabulated data, or a registered professional engineer. ~ Sloping or Benching. In Type C soils (what is most typically encountered) the excavation must extend horizontally 1 1/2 feet for every foot of trench depth on both sides, 1 foot for Type B soils, and 3/4 foot for Type A soils. ~ A registered professional engineer must design protective systems for all excavations greater than 20' in depth. ● Ladders must be used in trenches deeper than 4'. ~ Ladders must be inside the trench with workers at all times, and located within 25' of unobstructed lateral travel for every worker in the trench. ~ Ladders must extend 3' above the top of the trench so workers can safely get onto and off of the ladder. ● Inspections of every trench worksite are required: ~ Prior to the start of each shift, and again when there is a change in conditions such as a rainstorm. ~ Inspections must be conducted by the competent person (see below). ● Competent Person(s) is:
Page 4 of 5 ~ Capable (i.e., trained and knowledgeable) in identifying existing and predictable hazards in the trench, and other working conditions which may pose a hazard to workers, and ~ Authorized by management to take necessary corrective action to eliminate the hazards. Employees must be removed from hazardous areas until the hazard has been corrected. ● Underground Utilities must be: ~ Identified prior to opening the excavation (e.g., contact DIGSAFE). ~ Located by safe and acceptable means while excavating. ~ Protected, supported, or removed once exposed. ● Spoils must be kept back a minimum of 2' from the edge of the trench. ● Surface Encumbrances creating a hazard must be removed or supported to safeguard employees. Keep heavy equipment and heavy material as far back from the edge of the trench as possible. ● Stability of Adjacent Structures: ~ Where the stability of adjacent structures is endangered by creation of the trench, they must be underpinned, braced, or otherwise supported. ~ Sidewalks, pavements, etc. shall not be undermined unless a support system or other method of protection is provided. ● Protection from water accumulation hazards: ~ It is not allowable for employees to work in trenches with accumulated water. If water control such as pumping is used to prevent water accumulation, this must be monitored by the competent person. ~ If the trench interrupts natural drainage of surface water, ditches, dikes or other means must be used to prevent this water from entering the excavation. ● Additional Requirements: ~ For mobile equipment operated near the edge of a trench, a warning system such as barricades or stop logs must be used. ~ Employees are not permitted to work underneath loads. Operators may not remain in vehicles being loaded unless vehicles are equipped with adequate protection as per 1926.601 (b) (6). ~ Employees must wear high-visibility clothing in traffic work zones. ~ Air monitoring must be conducted in trenches deeper than 4' if the potential for a hazardous atmosphere exists. If a hazardous atmosphere is found to exist (e.g.,O2<19.5% or >23.5%, 20% LEL, specific chemical hazard), adequate protections shall be taken such as ventilation of the space. ~ Walkways are required where employees must cross over the trench. Walkways with guardrails must be provided for crossing over trenches > 6' deep. ~ Employees must be protected from loose rock or soil through protections such as scaling or protective barricades.
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