The URL can be used to link to this page

Home My WebLink About1988-10-13 Finance Committee Minutes FINANCE COMMITTEE MEETING 1O.11S1'ES RESENT : CATRLFAMO - LATE: HASf:ELL MEETING CALLED TO ORDER AT 7140 ATTENDING THE MEETING WERE TONY FLETCHER, PUBLIC WORKS DIRECTOR: AND PETER HECHENBLEIKNER, TOWN MANAGER. MR FLETCHER GAVE THE BACKGROUND OF ARTICLE S. THIS ARTLCLE WOULD UPGRADE THE WATER. TREATMENT FACILITY. LISTED BELOW ARE THE IMPROVEMENT: WHICH ARE BEING REQUESTED. 1. NEW FIEREATOR $500,000 2. SCOURING SYSTEM 115,000 BRING NEW WELL ON LINE TO REPLACE OLDER WELL 40,000 4. VENTILATING SYSTEM FOR RADON CONTROL 31 ,000 5. CONVERT FROM SLAKED LIME TO HYDRATED LIME SYSTEM ALSO REMOVE DIFFUSERS, CLEAN PIPING.ADD MANIFOLD, PLACE BUNKERS AR7OUNO CHEMICAL STOREAGE 514, 000 4 34T 200, 000 THE AERATOR. IS NEEDED TO REMOVE MORE CARBON DIOXIDE FROM RAW WATER:. THE OLD AERATOR IS F40W INADE,!UATE. THE SCOURING SYSTEM WILL REDUCE THE NEED FOR LARGE AMOUNTS OF WATER TO BACK FLUSH THE FILTERS. IT NOW TAKES ABOUT 40%: OF THE WATER: PRODUCED TO FLUSH THE FILTERS. IT IS HOPED T7 REDUCE THE WATER RE,tIJIREO F13R. SRI-K.FLU.SH TO LESS THAN 10%: OF PRODUCTION. CONVERTING FROM SLAKED LIME TO HYDRATED LIME SHOULD SAVE ABOUT $85,000 PER YEAR: NET. SOME OF THE OTHER: WORK: IS REQ.IJIRED BY STATE MANDATES. EG : THE BUNKERS. THE FINCOM WILL RECOMMEND THAT $532,000 BE TAKEN! FROM THE WATER SURPLUS ACCOUNT AND THAT�4OO,000 BE BONDED TO FUND THE ABOVE PROJECT. IF THE SURPLUS ACCOUNT HAS GROWN! ENOUGH BY SPRING TOWN MEETING WE WILL THEN RE93MMEND RESCINDING THE BOND AUTHORIZATION AND TAKINIG THE 400,000 FROM THE SURPLUS A/C. IT IS HOPED THAT BY INCREASING THE NET AMOUNT OF WATER PR7ODUCED (.BY DECREASING THE AMOUNT USED IN FLUSHING FILTERS) THAT THE TOWN MAY AVOID THE NEED TO BUILD ADDITIONAL WATER STORAGE FACILITIES. THE TOWN MANAGER .THEN! PRESENTED ARTICLES 27 8: 28 WHIJCH IN EFFECT ALLOW THE SELECTMEN TO SELL 7,712 SIO. FT. OF LAND SHOWN ON ASSESSORS PLAT 131 AS APORTIOI.1 OF LOT 8. AN ABBJTER HAS ASKED TO PURCHASE THIS LAND IN ORDER: TO INCREASE HIS LOT ` ENOUGH TO ALLOW HIM TO EXPAND HIS HOME. THE ESTIMATED :SALES PRICE WILL BE $5,000 FINANCE COMMITTEE HAD SEVERAL QUESTIONS WHICH COULD NOT BE ANSWERED AT THIS TIME AND WILL BE RESEARCHED AND ANSWERS PROVIDED BY THE TOWN! MANAGER FOR 15117 MEETING. 1. HAS THE LAND BEEN OFFERED TO ANY OTHER ABBUTERS? ._. WHY $5.605? THIS IS LESS 'YHAN '11 .00 PER SQ. FT. AND SINCE IT WILL ENLARGE THE PURCHASERS LOT INTO R DOUBLE LOT THE PRICE DOES SEEM RATHER LOW. 3. HAVE THE SELECTMEN! TAKEN A POSITION ON THIS SALE. THE TOWN MANAGER THEE! PRESENTED ART. 24. THIS ARTICLE PETITIONS THE LEGISLATURE TO ALLOW READING TO REMOVE THE RETIREES FROM ITS PRIMARY HEALTH INS GROUP (BLUE CROSS/ BLUE SHIELO)AND FORM ITS OWN GROUP IN B,/C-8,'S, Fe, RZw<es'_ THE REASONING BEHIND THIS MOUE GOES APPROXOMATLY LIKE THIS. HOW PAY ATTENTION! AMC READ CAREFULLY. MASSACHUSETTS IS A PPRIMARY INSURANCE STATE WHICH MEANS THAT WHATEVER DOLLARS ARE CONTRIBUTED TO THE PREMIUM OF THE PRIMARY INS CO, (E.'C—B/S) MUST BE CONTRIBUTED TO THE ALTERNATIVE MED INSURANCE PLANS ( IN THIS CASE SAYSTATE HEALTHCARE, HARVARD COMMUNITY ET. AL ) AN EXAMPLE FOLLOWS EASED ON THE TOWN CONTRIBUTING 50%..OF THE PRIME CARRIER PREMIUM. - I k. ;, qve. p,.l rew� Yre.vwx =sTr� MONTH INS. CO. PREM. TOWN SHARE EMPLOYEE CONT. 3250. $.50. DAYST. 250. 251 . 40. HAR'V. 250. 250. 00. IF THE RETIREES CAN BE REMOVED FROM THE BLUE CROSS BLUE SHIELD PRIMARY GROUP THE PREMIUMS SHOULD GO DOWN FOR. THAT GROUP. THIS MEANS THAT THE AMOUNT CONTRIBUTED BY THE TOWN WOULD ALSO GO DOWN. THE RESULT IS TWO SAVINGS. 1. THE DECREASE IN! THE TOWNS 50% PORTION OF Br"C—B,,'S AND 'a. THE EMPLOYEE AS'S'UMING MORE OF THE COST OF THE ALTERNATIVE INSURANCE. EXAMPLE TO COMPARE WITH NUMBERS ABOVE. MONTH INS. OO. PREM. TOWN SHARE EMPLOYEE CONT. ---------- ______ ----------- ______________ E'C—B.'S $ 350. $175. $175. BAYST 290. 175. 115. HARV 350. 175. 7.5. THE ABOVE EXAMPLE WOULD REDUCE THE TOWNS EXPENSE BY 375.00 PER EMPLOYEE PER MONTH. HOWEVER THE RETIREES GROUP PREMIUMS WOULD THEN BECOME VERY HIGH. PROBABLV, IN THE EXAMPLE ABOVE, THE PREMIUM FOR THE NEW RETIREES B:'C—B.'S GROUP WOULD GO TO $1 , 060 PER MONTH. ARTIL,LE 24 STATES THAT THE RETIREES L40ULD ONLY HAVE TD PAY WHAT ACTIVE EMPLOYEES PRY TOWARD THEIR PRIMARY INSURANCE. HENCE THE RETIREE WOULD THEN PRY $175.00 RATHER THAN $250. THEY FLOW PRY, AND THE TOWN WOULD PAY $825. RATHER THAN THE $250. IT NOW PAYS OR AN INCREASE IN EXPENSE OF $575. PER. R.ETIF'.EE PER MONTH. SINCE THERE ARE APPROX. 125 RETIREES COMPARED TO 800 ACTIVE EMPLOYEES. SAVINGS PER ACTIVE EMPL. OF $75.00 X 800 = $60,000 MONTHLY ADOTL COST PER RETIREE 3575. X 125 = (71 ,585) " I OBVIOUSLY TOOK POOR NOTES AND WE SHOULD REQUEST ACCURATE FIGURES FROM PETER SINCE HE 'STATED THAT THE SAVINGS WOULD BE $12, 000 PER YEAR. AF40THER PROBABLE SAVINGS WOULD RESULT IF THOSE EMPLOYEES NOW PAYING NOTHING FOR INSURANCE FROM THE TOWN WERE TO FIND THAT THEY NOW HAD TO PAY $75. OR $115. PER MONTH. PETER ESTIMATES THAT ABRk1UT 100 SUCH EMPLOYEES ARE ALREADY COVERED UNDER THEIR SPOUSES MED INS PLANS AND TOOK: REAOINGSf HMO PLAINS SIMPLY BECAUSE THEY ARE FREE. IT IS ASSUMED THAT MOST OF THOSE PEOPLE WOULD THEN DROP THE READING MEDICAL INS. PLAN RESULTING IN A SAVINGS FOR THE TOWEL IT IS ALSO HOPED THAT MAKING THE HMO's MORE EXPF_NSI'VE WILL CAUSE A MIGRATION OF YOUNGER (HEALTHIER:? EMPLOYEES TO Br'C-B,'S WHICH SHOULD FURTHER REDUCE THE PREMIUM OF THAT PLAN (DUE TO BETTER EXPERIENCE RIATINGS) . QUESTIONS RAISED (BESIDES MY MISERABLE EXAMPLE ABOVE) WERE; 1. HOLD MUCH MORE IS THE R:ETIRIEE POPULATION GOING TO GROW (THEREBY INCREASING T014N EXPENSE?-LIZ GREENE 2. WILL l"FIE ADVISORY EMPLOYEES COMMITTEE ON THIS PLAN BE FAVORABLE WHEN 80:: OF THE EMPLOYEES ARE IN HMOS-MUCCI S. CAN THE TOWN REVERSE THESE ACTION£ IF THEY DO FJOT WORM: AS HOPED.- PORTER. 4. WHAT ELSE IS BEING DONE TO AMELIORATE RISING MEDICAL INSURANCE COSTS. - HASKELL 5. WHAT ARE THE CHANCES OF THE LEGISLATURE PASSING THE PETITION IF THE EMPLOYEES OPPOSE IT.- EVERYONE 6. WHAT IS THE SELECTMENS POSITION- ALLEN THE COMMITTEE WOULD LIKE TO SEE SOME HARD NUMBERS SO WE CAN MAKE AN INTELLIGENT DECISION. I APPRECIATE THAT THE TOWN MANAGER IS TRYING TO DO SOMETHING ABOUT INCREASING MEDICAL INSURANCE PREMIUMS, WITHIN THE CONSTRAINTS OF UNION CONTRACTS, STATE AND FEDERAL MANDATES, AND THE RISING COSTS OF ANY MEDICAL INS PLAN. BOB MUCCI VOLUNTEERED TO ACT AS A LIAISON WITH THE EMPLOYEES COMMITTEE WHEN THAT IS APPOINTED. NONE OF THE ABOVE ARTICLES WERE VOTED SINCE THERE WERE UNANSWERED QUESTIONS ABOUT ALL OF THEM. MEETING ADJOURNED 10: 15 SINCER:LEY, DON ALLEN 4w OTHER SIDE OF TOWN INDICATING THAT WHEN THE AMBULANCE ID AT THE WEST SIDE STATION RESPONSE TIME CAP4 BE AS MUCH AS 7 MINUTE'S. THE FINANCE COMMITTEE ASKED FOR COMF•ARATIVE COSTS OF RUNNING A B BAY STATION AND MAINTAINING THE WEST SIDE STATION / OPF'OSED TO OPEPATIFIG A S BAY STATION OFIL'� ALONG WITH BENEFITS OF SELLING OR F.'EUSING THE WEST SIDE STATION. FINCOM ASKED TO SEE HOW A .^_.INGLE STATION COULD ENABLE MANPOWER TO BE USED MORE EFFICIEFITLY. WE WANTED TO SEE STAFFING F•LAIJS lOVER:TIME SAVINGS IF AI.11e, BETTER MANAOMENT PF:OCEDURESi ETC. FINCOM ALSO A:SI::ED FOR. SEVERAL SMALLER ITEMS : Eu A RtEVIEW OF THE OVERALL TOWN SAFETY WITI-I ONE AND TWO STATION OPTIONS COMPARED ETC. THE FINANCE COMMITTEE DECIDED TO PUT OFF A RECOMMENDATION ON THIN ARTICLE UNTIL WE COULD BE FROVIDED WITH THE ADDITIONAL INFORMATION. THIS IS AN IMPORTAFIT DECISION AND FINCOM WILL NOT VOTE UNTIL WE PIAVE FILL THE FACTS A4'AILFIBLE AND WILL THEN! IONCFNTRATE ON THE FINAFIC IIiL DETAILS: T.F' IT CAN BE SHOWN! THAT THE TOWNS SAFETY IS BEING :!FiIHTAINED. RETICLE 4 WAS THEN PFESENTECI BY THE TOWN MANAGER.. THIS IS FOR UPGRADING THE WATER: TREATMENT FACILITY AND THE DETAILS HAVE BEEN COVERED E::TENSI'VELV IFI THE MINUTES OF FINCOM OCTOBER: SS, 1988 MEETIHO. THE SELECTMEN HAVE 'VOTED 4-0-0 IN FAVOR OF T-123: AF.TICLE. THE TOTAL, F,EuUESTED I:5 $1 . 200, 000. FIHAHOE Cppll9ITTEE 'VOTED TCI RECOMMEND AF'.TICLE 4 IN THE PogOIINT OF '71 ,: 00 . 000. TO BE FUNDED WITH XG50, 000 FROM THE WATER SUR.FLUS AHD S-SO, uuu FROM BORROWING BY H VOTE OF 8-0-0 FUTUF:E MEETINGS HAVE BEEIJ SF_T I•lOV AND HOV 7 . 19SS. CTCLER.I A- DON ALLEN (.5': CHAIRMAN) 06