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HomeMy WebLinkAbout2014-12-09 Board of Selectmen Minutes - Executive Session Ooh F11 1. Town of Reading N � t Meeting Minutes O Bfg'fNCORpO��,VO Board - Committee - Commission - Council: Board of Selectmen Date: 2014-12-09 Time: 7:00 PM Building: Reading Town Hall Location: Selectmen Meeting Room Address: 16 Lowell Street Purpose: Collective Bargainning & Possible Litigation Attendees: Members - Present: Chair John Arena, Vice Chairman Marsie West, Secretary Daniel Ensminger, Selectmen John Halsey and Kevin Sexton. Members - Not Present: none Others Present: Town Manager Bob LeLacheur Minutes Respectfully Submitted By: Secretary Daniel Ensminger Topics of Discussion: EXECUTIVE SESSION Mr. Ensminger moved that the Board of Selectmen go into Executive Session to discuss strategy with respect to collective bargaining and to discuss strategy with respect to litigation and the Chair declares that an open meeting may have a detrimental effect on the negotiating position of the body, and not to reconvene in open session, seconded by Ms. West and approved by a roll call vote Halsey-yes; Ensminger-yes; Arena-yes; West-yes, Sexton-yes. The Town Manager described the Health Insurance RFP process, with the results as follows: MIIA +8.2%; Tufts +12.9%; Aetna +17.7%; Harvard Pilgrim +20.3%; MIIA alternate +5.5%. The latter was discarded during negotiations with the unions because the plan changes and high deductibles would have required a cost-splitting shift that would have exceeded the cost of the +8.2% bid for the Town. The GIC might save the Town between $0.4 and $1.2 million (including savings for RMLD & the Enterprise Funds) if their increase is +5% as generally expected. However they are funded by an additional $50 million of taxpayer's money in the current fiscal year, with projections of s significant deficit of an additional $100 million. Given the state's fiscal difficulty and a new governor, the unions and management were not willing to enter into a three-year deal with the GIC at an unknown plan design or real financial costs. The Town Manager praised the unions for their part in the collective bargaining sessions, which began in the summer of 2014, as well as consultant Pat Haraden of Longfellow Benefits. The RFP process and discussion was very thorough, and plan design changes were explored completely. The turmoil in the health care marketplace is difficult to navigate, and the Town Manager suggested the .Selectmen approve the MIIA +8.2% bid for the same health insurance plan, starting July 1, 2015 for one year. An additional year will be sought during the spring 2015 to lock in cost certainty. Page I 1 Board of Selectmen Minutes - December 9 2014 Executive Session - page 2 Mr. Ensminger moved that the >3oard of Selectmen approve the Health insurance Agreement as Proposed, seconded by Ms. West and approved by a roll call vote Halsey-yes; Ensminger-yes; Arena-yes; West-yes Sexton-yes A second item of a potential settlement of litigation arising from waste removal and disposal over twenty years ago was discussed. The Board had earlier agreed to place an Article on the January Special Town Meeting should settlement of this issue be recommended by Town Counsel. Mr. Sexton moved to adiourn at 1030 p.m., seconded by Mr. Halsey, and approved by a roll call vote Halsey-yes; Ensminger-yes; Arena-yes., West-yes Sexton-yes spectfull submit , Secretary Page i 2