Common use of IMA Clause in Contracts

IMA. In fact, for reasons outlined, an IMA will be necessary to bring this project to completion. My office has worked with our Select Board and Town Counsel to prepare proposed amendments to the prior IMA that was previously in effect between the communities, intended to reflect the current circumstances, and to secure those intermunicipal agreements that will be legally required for the project (once fully funded) to move forward. Our draft is in a late stage of review, and will be sent for your and Mayor ▇▇▇▇▇▇▇’▇ consideration in the near term. The major ingredients of the Town’s proposal will include: - That the Select Board and the City Council each formally authorize the work to take place within these public rights-of-way, in a form accepted by Bond Counsel; - Clarification of each municipality’s role with regard to project procurement, contracting, contract management, inspections, grants management, and record-keeping; - Commit each municipality to continued efforts to secure non-local grant funding, including agreement that the City seeks extension of its remaining 2018 MDOT Small Bridge funds, and that it applies for a new MDOT Small Bridge grant in 2024;5 - Apportion net (non-grant-funded) project costs 50/50 between the communities,6 with default provisions in the event of non-payment; and - If necessary or advisable for either community’s financing of the project, a 2/3 majority vote of the legislative body of the borrowing community to authorize debt for its share of project costs (or, alternatively, for the Council to grant the Town rights to issue debt for the portion of the project located in Newburyport, in a form accepted by Bond Counsel).7 Our discussions with Bond Counsel (▇▇▇▇▇ Lord) and our Financial Advisor (Hilltop Securities) suggest options to borrow, if doing so proves necessary or beneficial: the Town and City could each issue debt for its share of the project costs; or, subject the City providing it rights to do so, and Select Board approval and Town Meeting authorization, the Town could issue debt for full project costs, with an IMA providing for City reimbursement of its share of debt service over the 5 In a January 2024 meeting with MDOT, regarding the Town’s Small Bridge grant, MDOT officials expressed willingness to consider a new Small Bridge grant application from the City. The ▇▇▇ ▇▇▇▇▇ award is $500,000, and MDOT has previously confirmed that the project is eligible for a separate Small Bridge grant each fiscal year.