Meeting opened at 8:00 a.m.

In attendance: Selectman David E. Hartman – Chairman, Selectman Wayne Eigabroadt and Selectman Richard A. Cook

Recorder of the minutes is Mary Whalen

Others present:  Laura Buono – Town Administrator, Employee Staff

1. COLA PROPOSAL

Laura has previously submitted wage increases for qualifying employees outside of the COLA. The 2007 budget has allocated $28,000 for the wage increase distribution. The COLA is in addition to that amount. These numbers shows COLA from 1-3% and the budget impact.

1% COLA $9,553.89 (1.97%) 1.5% COLA $14,330.84 (2.15%)

2% COLA $19,107.78 (2.33%) 2.5% COLA $23,884.73 (2.51%) 3.0% COLA $28,661.67 (2.69%)

The 2007 proposed operating budget amounts to a 1.62% increase over 2006. As of the January 9^th Selectmen’s meeting one Selectman was in favor, one opposed, one did not voice an opinion. The purpose of this meeting was to allow the employees to voice their opinion. Selectman Eigabroadt added that the COLA was previously decided by other Board members in order to make adjustments to the current wage scale based on the Federal cost of living increases to keep the wage scales from falling behind. This year it is being considered to skip a year on the COLA because of budget constraints, that being said the Selectmen would like to hear from the employees because of the effect it would have on the wage scales. The Selectmen feel that because the wage scale has been adjusted every year since it was implemented that the wage scale is comparable.

Allan Brown asked that if an employee does not receive a merit increase then basically the pay has fallen below the cost of living, that’s if a COLA is not applied. Selectman Eigabroadt explained that the Federal Government completes a study and generates a cost of living increase. The government has established a 3.3% COLA this year, typically the COLA from the employer never matches. Allan also asked what will be saved by not giving a COLA. Selectman read into the record the provided impact (as shown above).

Phil Rogers asked about step raises, nothing has been heard about that in a while. Selectman Eigabroadt explained that there are step increases proposed this year. Phil has not seen the actual wage scale. Laura will provide copies of the most recent wage scale.

Laura explained how she created the current proposed wage increases. One of the items discussed with the Department Heads was not to make the performance evaluations a big part of the wage increases because then the evaluations do not get used as a tool in relationship with goals. Laura has spoken with the Department Heads throughout the year on how the employees are performing; she then reviewed who last received a wage increase outside of a COLA. Laura then placed everyone on the step closest to their wages; some employees are at the top of their scale. The scales have also been adjusted by doing the comparison with the towns that Warner has chosen. If you are at the top of the scale there is no increase unless a COLA is approved, those who have not received an increase for a while, doing a good job, and the supervisors are pleased with them along with submitting their recommendations to Laura were adjusted. Two of the Selectmen met with Laura and have reviewed the proposed increases submitting no changes. Final approval is next to come. Selectman Cook confirmed that the wage scales are up to date and all employees fall within the current scales. Laura explained that the scale is current as of 2006.

Martha Mical added that during the budget process increases were applied due to escalating costs in fuel, oil etc. The employees also have those same cost increases and recommends that the COLA be considered by the Selectmen.

Allan Brown would rather receive a 1.5% rather than 0%.

Selectman Cook explained why he is not in favor of a COLA. Once you change the scale it changes forever, then it’s an annual cost. Currently the wage scale is proportionate to surrounding like towns and every employee is within their wage scale. Very few employees are at the low end of their wage scale, most are in the middle and beyond. By giving raises we are awarding merit based on the input from the supervisors. Therefore Selectman Cook feels the pay raises that are proposed are adequate and scales are also adequate not needing to do an adjustment this year.

Phil Rogers mentioned the changes in the health insurance; it seems to him things are going down hill.

Selectman Eigabroadt added that in the past the increase in insurance was used as part the argument in not giving a COLA. The cost of the insurance was considered a wage increase. Selectman Eigabroadt disagreed with it then and disagrees with it now. COLA is not a guarantee increase every year it was simply to keep the pay scales comparable. Selectman Cook added that Laura has adjusted the wage scale this year. Selectman Eigabroadt agreed but the adjustment is for 2006. Selectman Eigabroadt recommends the proposed wage increases and a 1.5% COLA increase this year and to review the wage scales next year or if there is no COLA this year, commit to readdress next year. Selectman Eigabroadt is in favor of a small COLA.

Pete Newman agrees with Martha’s statement, the cost of living is going up every year.

Laura explained that when adjusting the wage scale she referenced at least 40+ Towns including the ones used in the original study.

2. DECISION

Selectman Eigabroadt made the motion to offer a 1.5% COLA for the 2007 budget. Chairman Hartman seconded the motion. Selectman Cook opposed. Motion passed 2-1.

3. OVERTIME

It has been brought to Laura’s attention that in the past the highway department would be paid overtime on time that they get called in outside their normal work time. Policy is overtime is paid on time worked. If a day off is taken overtime would be applied after 48 hours even if they get called in on a weekend. In the past the highway department was getting overtime after 40 hours worked or not worked. When personnel changed the policy was followed. Allan Brown added that if researched it will show that the Highway Department always received overtime after 40 hours no matter if it was worked or not worked. The Selectmen asked Laura to research the past practice before a decision is made.

Motion to adjourn 8:40 a.m.

David E. Hartman – Chairman
Wayne Eigabroadt
Richard A. Cook