Warner Board of Selectmen

Meeting Minutes

Wednesday, October 28, 2009

 

Chairman Karrick opened the meeting at 2:05 p.m.

In Attendance:   Selectman David Karrick, Jr. – Chairman, Selectman David E. Hartman, Selectman Clyde Carson &

                        Town Administrator – Laura Buono

Absent:             None      

Others present: Varick Proper, Peter Newman, Peter Savlen, Mike Ayotte, Marianne Howlett, Melissa Briggs & Ron O’Keefe (LGC), Martha Bodnarik, Martha Mical  

1. Medical Benefits

Melissa Briggs a representative from Local Government Center Health Trust and Ron O’Keefe the risk management representative presented information to the Selectmen regarding various health benefit options and benefit changes that could decrease costs.  The rates for 2010 have increased by 15.4%.  Last year the town experienced a decrease in health benefit costs because Health Trust was able to offset an increase by applying money from the fund balance.  This year Health Trust is unable of offset any increases.  This increase in health benefits is due to claims utilization. The size of the pool that Warner is in consists of 2,200 employees including retirees in both towns and school districts.   

Ms. Briggs reviewed the options she provided.  One way to save on costs is to increase the prescription co-pay the other would be to change plans.  Local Government Center is creating another HMO option but the rates are not available at this time.   

Selectman Hartman asked what the difference is between HMO and point of service plans.  Ms. Briggs explained that the HMO plan does not allow you to self refer your care. The point of service plan, you don’t necessarily need a primary care physician referral.  

Selectman Carson asked about flexible spending.  Ms. Briggs explained that Local Government Center will administer the flexible spending.  She said there are two accounts, a health care reimbursement account and a dependant care reimbursement account.  The employee can have, on a pre-tax basis, deductions from their paycheck in equal installments that could be used for co-pays, dental services or any eligible expense.  The employer decides the amount, $500, $1,000 etc. This is an IRS governed program; the amount is set aside immediately keeping in mind the municipality is liable.  If the money is not used by the end of the plan there is a 2 ½ month grace period to incur an expense under the previous plan dollars.  There is also the debit card approach that carries an $18 fee which is passed on to the employee.  The administrative fee amount of $3.00 per participant is usually picked up by the municipality.   

Selectman Carson asked if the current plan has a maximum out of pocket expense.  Ms. Briggs said everything is covered 100% but if there is a deductable on services the maximum is either $250 or $750.   

The Selectmen will meet with the employees if there is a change in the policy.  It was also recommended that having a benefit refresher session would also be beneficial for the employees.   

Selectman Carson asked if a spreadsheet could be created showing current benefit costs as well as the cost for each option based on each employee’s plan (family, two person or single plan).  The next step is for the Selectmen to decide upon an option, deadline for their decision is mid November.  

2.  Transfer Station Budget - 2010

              Selectman Carson asked what the weekend schedule is.  Transfer Station Foreman, Varick Proper said 2 people are scheduled for Sundays and 2.5 people on Saturday.

              Commercial cardboard will no longer be processed at the facility.

              Fire Alarm was increased to $300.

              Martha Bodnarik, commented on the cost of uniforms.  She feels it is an unnecessary expense to provide and clean uniforms.  The Transfer Station allots money for uniforms but does not have them professionally cleaned.

              Mr. Proper would be comfortable reducing the tonnage by 200 tons.

              Recycling costs were increased based on history.

              Hazardous Material was increased to $6K.

              Total Transfer Station budget decreased by approximately 12%.  

Selectman Carson asked if there are programs available that will help increase the Town’s recycling efforts by either education or monitoring.  The goal is to reduce the tonnage.  Martha Bodnarik said at one time the High School had an Environmental Club; the members could help at the Transfer Station with recycling education. Chairman Karrick has a concern with safety issues and the students.  Selectman Hartman said Northeast Resource Recovery Association has recycling programs for the elementary schools.  The Selectmen also asked Mr. Proper to come up with some ideas to increase recycling and to return to the Board with those ideas.   Mr. Proper said proper signage and attendant visibility is a huge help.  Martha Mical feels it would be helpful to approach realtors, when a new resident purchases a home they do not know the Town mandates recycling.  

Selectman Carson would like the Town to look at an active composting program either for the homeowner or through the Town.  Selectman Carson is not sure if money should be added to the Transfer Station budget for educational purposes.  

3. Revolving Account – Police Detail

Selectman Carson asked if a revolving account will be developed for police detail.  The Town Administrator said the revolving account would need to be placed on the warrant.  The Town Administrator also added that there will be a reduction to the detail line because she has learned the Town of Warner has been paying officers from other towns for detail during the Fall Foliage Festival and then the Town of Warner has been reimbursed from FFF.  The out of town officers should be paid from the town that they work in and their towns would receive the reimbursement from FFF.  Selectman Hartman feels it is not beneficial to set up a revolving account for police detail.  The Town Administrator said the account would be a zero tax impact because it is being funded by expected revenues.   

Selectman Carson confirmed that the Town would need to create a warrant article for Safe Routes to School to cover the reimbursement.  The amount of the warrant article is approximately $90K; it has zero impact to the budget and is funded by the SRTS grant.  

Selectman Carson asked the Board if they want to consider a uniform allowance instead of a uniform budget line.  The Town Administrator explained within the cleaning contract with E&R there would be a cost to close that contract.  

4. Wage Scale

The Town Administrator said based on the current process the wage scales are due to be adjusted in 2010 using the State as a reference.  The question brought forward for the Selectmen to consider is, should the January 2009 5.5% wage scale increase that the State employees received be used for the 2010 adjustment.  The State budget year runs from July 1st to June 30th.     

It was agreed in 2008 through Department Head meetings and meetings with the Selectmen that the State wage scale concept would be used in Warner, as well as adjusting the scale when the State receives a cost of living increase.  Based on the adopted process 2010 is the first year the wage scales are set to be adjusted.  

Selectman Hartman feels the current system should be used, two year process that schedules step increases.  If there is a cost of living increase in 2010 then the wage scales can be adjusted.  Selectman Hartman also noted that there is no increase for Social Security.  The Town Administrator said it is the starting point that is in question.  

Martha Mical feels the Selectmen should be using the State’s previous budget year to the Selectmen’s current budget year because at least every other year the State won’t have contract negotiations to wait for when the Town is creating their budget.  

Martha Bodnarik feels the Town should not be governed by what the State does.   

Selectman Hartman feels it should be a blend, what the State has approved and what is reality.   

Currently there are two employees that are at the top of their pay scale, they would only receive a wage increase if the entire wage scale is adjusted.   

Selectman Hartman moved to not adjust the wage scale for the 2010 budget year, remaining the same as it is in 2009.  Chairman Karrick seconded the motion.  Selectman Hartman said he feels the current system is fair to the employees of the Town.  Selectman Carson feels the wage scale adjustment should be consistent with the cost of living instead of the State.  Selectman Carson also feels the Board should reserve the right to make an adjustment in extenuating circumstance but have something in place that allows the Board to keep the wage scales current.  Martha Bodnarik disagrees with a guaranteed wage increase every year.  Selectman Carson said the Board is not proposing a guaranteed wage increase.  He is saying at least have a starting point, and as a rule, tie the wage scale to the Social Security proposed increase which is zero for 2010 and use Social Security as the starting point for any future increases to the wage scale.  Selectman Hartman added the Board has the responsibility of prudent management of the town’s resources and he feels it is prudent this year to recommend a zero percent adjustment to the wage scale in 2010.  Chairman Karrick feels Selectman Carson’s suggestion is a more orderly process, a stepping off point.  The Town Administrator recommended voting on the motion, and then use Selectman Carson’s suggestion make the adjustment and then adopt the changes.  Chairman Karrick would like to see Selectman Hartman withdraw his motion.  Selectman Hartman withdrew his motion.   

Selectman Carson moved to propose, beginning in 2010, using the guidelines of the Social Security cost of living increases as a basis for adjusting Warner’s wage scale, and for future years using Social Security as a starting point for any discussions related to adjusting the wage scale reserving Selectmen’s discretion in the decision process.  Selectman Hartman seconded the motion; all were in favor, the motion passed.  

5. Motion to Adjourn

Selectman Carson moved to adjourn at 5:00 p.m.   Selectman Hartman seconded the motion; all were in favor, the motion passed.  

 

Board of Selectmen  

David Karrick, Jr. – Chairman
David E. Hartman
Clyde Carson

     

Respectfully submitted,

Mary Whalen

Recording secretary