Greenwich Representative Town Meeting Finance Committee Meeting Minutes October 15, 2018

Transcription

1 Greenwich Representative Town Meeting Finance Committee Meeting Minutes October 15, 2018 The Finance Committee met in the Lower Level Lounge at Town Hall at 7:30 on October 15, All twelve districts were present. # NAME POSITION PRESENT ABSENT 1 Daniel Quigley Delegate X 1 Jaysen Medhurst Alternate X 2 Kristine Lowe Delegate X 2 Michelle Klosson Alternate X 3 Adam Rothman Delegate X 3 OPEN Alternate X 4 Diego Sanchez Delegate X 4 OPEN Alternate X 5 Michael Basham Delegate X 5 Nancy Cooper Alternate X 6 Jackie Hammock Delegate X 6 Robert Cenci Alternate X 7 Henry Orphys Delegate X 7 Luke Szymczak Alternate X 8 Joshua Brown Delegate X 8 Lisa Seglem Alternate X 9 Stefan Greenberg Delegate X 9 Michael Brecia Alternate X 10 Robert Byrnes Delegate X 10 W. Brooks Harris Delegate X 11 Rebecca Steinfeld Delegate X 11 Jonathan Pierce Redmond Alternate X 12 Rob Perelli-Minetti Delegate X 12 Andrew winston Alternate X 12 Bob May Alternate X

2 The Chair, Rob Perelli-Minetti, (D12) called the meeting to order at 7:35 pm. There were 6 items referred to the Finance Committee in the Call. Item #18 To consider and act upon the following resolution, requested by the Superintendent of Schools, Board of Education. RESOLVED, that the sum of $1,905,000 be and the same is hereby appropriated from the RESERVED FOR CAPITAL & NON-RECURRING FUND to account Z , Project for costs associated with the remediation of Cos Cob flood damage. This item was presented to the committee by the Superintendent of Schools, Mr. Ralph Mayo; the District Chief Human Resource Officer, Mr. Robert Stacy, and the Board of Education Chairman, Mr. Peter Bernstein. Mr. Bernstein explained that that the flood at the Cos Cob elementary school was as the result of a faulty faucet in the art room which flooded the art room and the media center below it. The leak was detected when it reached the first floor where the motion detectors are located. Both the Fire Department of BOE was quick to respond, and all of the visible water damage has been cleaned up and the children have been relocated temporarily to the other schools in the town. The $1.9 million requested is an estimated total cost to repair the damages, however, there are concerns about possible damage behind the walls which can result in mold if the damage is not properly repaired. Similar faucets have been inspected and are being replaced to avoid any further incident of this nature. The full extent of the damage and the final cost of the repairs will only be known when the walls are opened and inspected. The BOE believes that the full cost of the incident will be covered by insurance less the deductible which is believed to be approximately $100,000, but the requested appropriation is necessary in the establishment of the Town s claim. The town s insurance agent is currently in contact with the insurance company. The committee has requested the name of the insurance company be provided. After the presentation, a brief discussion ensured. After the motion was duly made, and seconded to appropriate the funds as requested, the motion passed Item #5 To consider and act upon the following resolution, requested by the Superintendent of Schools and the Board of Education. RESOLVED, that the Representative Town Meeting of the Town of Greenwich hereby approve the agreement between the Board of Education and the Greenwich Organization of School Administrators, representing administrators, for the period of July 1, 2019, to June 30, 2022.

3 This item was presented to the committee by Ms. Jennifer Dayton of the BOE. Ms. Dayton explained that this labor contract with the Greenwich Organization of School Administrators (GOSA) covers ~55 school employees (~25 live in town) for the three-year period of July 1, 2019 to June 30, She explained that this contact was negotiated directly between the BOE Negotiations Committee with the union after mediation reached an impasse. The goal of the committee was to control the wage and benefit costs to ensure a competitive compensation package to attract and retain the best talent while and aligning the BOE with the town s labor strategies. The negotiations resulted in the following: The general wage increase will be 1.90% FY 19/20, 2.05% FY 20/21 and 2.05% FY21/22; The elementary school principals will have an additional $1,250 added to their salary for the first two years of the contact to be more competitive with the other towns in Connecticut; The stipend that is paid to administrators who achieve a doctoral was increased to bring it in-line with the other stipends in Fairfield County; The Healthcare contribution made by the employees will increase 1 ½% per year for three years, moving the total contribution to 13 ½%, 15% and 16 ½%; The vacation leave benefit has been eliminated for new administrators; Additionally, the contact added two new salary steps at 98% and 96% to allow the district to bring in new administrators at a competitive yet lower starting salary. The BOE agreed to an increase to the Tax-Sheltered Annuity Contribution from $4,085 to $4,750 for 12 month administrators, and from $2,699 to $3,127 for 11 month administrators. Labor Contracts Committee (LCC) Chair (and D8 Delegate to the Finance Committee) Josh Brown gave the LCC report. The LCC supported the approval of the GOSA contract 5-0-0, emphasizing the importance win items described by Ms. Dayton and Mr. Stacy and the importance of reaching a positive negotiated agreement without arbitration. After the motion was duly made, seconded, and passed Item #4 To consider and act upon the following resolution, requested by the First Selectman. RESOLVED, that the Representative Town Meeting, in exercising its authority pursuant to Connecticut General Statutes, Section 7-474(b), hereby approves the funds necessary to implement the terms of the Town-Silver Shield Association fouryear collective bargaining agreement covering the period July 1, 2017, through June 30, For FY 17/18 and FY 18/19; said funds have previously been appropriated in the respective adopted FY budgets and the Representative Town Meeting approves the funds necessary to implement the terms of the terms of the Town- Silver Shield Association collective bargaining agreement covering the period FY 19/20 and 20/21 subject to the budgetary process as prescribed in the Town Charter.

4 BE IT FURTHER RESOLVED that the Representative Town Meeting approves any terms such agreement which may be in conflict with the Town Charter, special act, ordinance, rule or regulation adopted by the municipal employer or its agents of the Town. This item was presented to the committee by Mr. Alfred Cava, the Director of Labor Relations for the Town of Greenwich. Mr. Cava explained that this labor contract with the Silver Shield Association covers ~145 Police Officers, Lieutenants, Sergeants, and Detectives for the period from July 1, 2017 through June 30, The parties held twelve bargaining sessions before reaching an impasse. The final negotiated contract was as the result of a mediation session. The negotiations resulted in the following: The general wage increase will be 2.25% effective July 1, 2017, 1.5% effective July 1, 2018, 1.95% effective July 1, 2019, and 2.05% effective July 1, 2020; Contract includes the interim agreement reached during negotiations in 2017 which resulted in a savings of approximately $920,089 FY17/18; Closed the defined benefit retirement plan to new hires effective January 1, 2019, new employees will receive a 7% contribution to a defined contribution retirement plan which will save the town ~$10,000 per year for each new officer in year 1; New employees in the defined contribution plan will also not be eligible for the existing 401k town match of $1,850. In exchange of the concession on the defined benefit plan item, the town agreed to: Add a long-term disability plan which will cover employees until the age of 65; Add a COLA provision until the age of 62 with a maximum of 3% increase per year to a total of 150% lifetime maximum cap; Not change the benefit formula in the defined benefit retirement plan for existing employees. To offset the cost of the COLA provision, the employees will increase their retirement contribution from 5% to 6% effective July 1, Mr. Cava explained that employees in the defined contribution plan do not receive social security which is why the retirement plan is important. The town will continue to pay 75% of the healthcare premiums. Josh Brown gave the LCC report. The LCC recommended approval of the Silver Shield contract 5-0 in view of the significant successes in achieving the Town s objectives in the contract. After a brief discussion, a motion was duly made to approve this item, seconded, and passed Item #6 To consider and act upon the following resolution, requested by the Nathaniel Witherell and approved by the Board of Estimate and Taxation.

5 WHEREAS, the Nathaniel Witherell received appropriations totaling $1,327,000 to renovate the public areas (including hallways, dining rooms, lounges / living rooms, and bathing / hygiene areas) in the four Tower long-term units, and; WHEREAS, the State of Connecticut s Department of Public Health (CTDPH) and the Greenwich Fire Marshall have statutory jurisdiction to approve projects involving public safety, and fire protection during renovations, and; WHEREAS, CTDPH delayed the start of renovations for 13 months subject to the completion of review of architectural plans for the planning of renovations the application for project approval was submitted by Nathaniel Witherell on January 19, 2017 and CTDPH approval was received on February 9, 2018, and; WHEREAS, after approving such plan, CTDPH completed an onsite progress inspection following the start of the renovation, and required substantial modifications to the previously approved plans to further enhance fire safety for residents, staff, visitors, and workers, and; WHEREAS, those modifications required end-of-each-day restoration of ceiling tiles that were removed to provide access to plumbing, and electrical infrastructure, thereby substantially slowing the progress of renovations, and; WHEREAS, the changes in the required phasing that slowed the completion of renovations on every nursing unit, added significant additional labor requirements; NOW THEREFORE BE IT RESOLVED, that the sum of $500,000 is hereby appropriated for the additional costs associated with completing renovations to the four nursing units at a total cost of $1,827,000. This appropriation is subject to BET approval at their meeting on Tuesday October 23, This item was presented to the committee by Mr. Allen Brown, the Executive Director of Nathaniel Witherell, and Mr. Larry Simon, the Chairman of the Nathaniel Witherell BOD. Mr. Simon explained that Nathaniel Witherell needs an additional $450,000 to complete the renovation of the last of the 4 floors used for long-term care which has 156 beds and was last renovated between 35 and 40 years ago. The cost over-runs of the project which was originally $1.3 million are as the result of the state requiring that the ceiling tiles are replaced each evening for fire safety which has resulted in higher labor costs. After the presentation, a discussion ensured regarding the continuous ask for additional money from Nathaniel Witherell over the years rather than cutting their expenses to cover the overages. Additionally, the committee was concerned that these costs over-runs were being brought to the RTM so late as the issue was known in June 2018.

6 Mr. Simon explained that Nathaniel Witherell will always operate at a loss for the town even though their occupancy rate is 88% versus 81% across the state and having the highest prices in the state. The issue is that it is expensive to operate a nursing and rehabilitation center and the model is moving away from a traditional nursing home to in-home care. Additionally, while Nathaniel Witherell has 40% of their residents are on Medicare (15%) and private pay (25%) which pay the full cost, however, 60% of the residents are on Medicaid which significantly underpays the full cost. They explained that ~70% of the residents moved there directly from their homes in Greenwich, while most of the remaining have ties to Greenwich. Some members of the committee questioned providing additional funding now rather than waiting until December 2018, as the BET has yet to review the item.. Mr. Simon admitted there would be no adverse consequences to a delay until the December RTM meeting, but suggested there would be no new information available between now and then. Several members of the committee felt that the RTM would need to fund this project in any event and that there would be no benefit to delay until December. When asked if it would increase costs to delay the project to the budget, Mr. Simson said he believed it would increase costs. Several members expressed concerns about increased costs if it were delayed until next year s budget. A motion was duly made, seconded to postpone the vote until December 2018 to allow the BET to take up the discussion on October 23 rd. The motion failed with a vote. (Districts 1, 3, 5, 7, 10, and 12 Yes, districts 2, 4, 6, 8, 9, 11 opposed). A second motion was duly made and seconded to amend the $500,000 appropriation to $450,000 which was in-line with the cost estimate presented to the committee by Mr. Simon and Mr. Brown. That motion passed by unanimous consent. The committee then proceeded to vote on Item #6, as so amended. That vote passed (Districts 1, 2, 4, 6, 8, 9, 11 yes, districts 3, 5, 7, 10, 12 opposed). The No votes were due to them feeling pressured that they had no choice due to brining this so late to the RTM after it was already a known issue during the summer, and others wanted to wait for the BET s decision on the issue. Item #15 To consider and act upon the following resolution, requested by the Director of Community Development and approved by the Board of Estimate and Taxation. RESOLVED, that the Representative Meeting does hereby approve and adopt a Substantial Amendment to the Town of Greenwich, CT CDBG Entitlement Program Annual One-Year Action Plan, Program Year 2018 (January 1, 2018 June 30, 2019) as on file in the Office of the Town Clerk; and that the Representative Town Meeting does hereby authorize the First Selectman to amend the Town of Greenwich, CT CDBG Entitlement Program 2018 Annual One-Year Action Plan, and to accept funds for the purpose of carrying out housing and community development programs; and

7 RESOLVED, that in approving and adopting said Substantial Amendment to the Town of Greenwich, CT CDBG Entitlement Program 2018 Annual One-Year Action Plan, the Representative Town Meeting finds and determines that by the following the plan, Community Development Block Grant program will be conducted and administered in compliance with Title 8 of the Connecticut General Statutes, Chapter 130, Part VI, Community Development and Title I of the Housing and Community Development Act of 1974, Public Law , as amended (42 U.S.C et eq.) of the Department of Housing and Urban Development Act, as amended (42 U.S.C 3531 et seq.) and FURTHER RESOLVED, tat the First Selectman, under the provision of Title 8 of the Connecticut General Statutes, Chapter 130 Part VI, Community Development and Title I of the Housing and Community Development Act of 1974, Public Law , as amended (42.U.S.C. sections 5301, et seq.) of the Department of Housing and Urban Development Act, as amended (42 U.S.C. section3531, et seq) be hereby authorized to accept grants for the purpose of carrying our an approved Community Development Block Grant program for the Town of Greenwich. This item was presented to the committee by Mr. Tyler Fairbairn, the Community Development / Grants Administrator for the town. He explained that due to the town receiving more than what was expected in entitlements, the town he is proposing an amendment to the CDBG 2018 Annual Action Plan to allocate the $329, of additional funds to previously unfunded rehabilitation / public facility projects. After the presentation a motion was duly made, seconded, and passed Item #16 To consider and act upon the following resolution, requested by twenty registered voters. RESOLVED, We the undersigned registered voters of the Town of Greenwich, hereby request the RTM consider and act upon the following resolution. Be it Resolved the RTM for a Special Committee of its members (including members from Land Use, Park and Rec, Finance, DPW, and Education Committees) for the purpose of reporting to the elected body of the RTM on the field remediation at Western Middle School, implementation of the 2018/2019 CIP Study of Field Improvements at Central Middle School, and lastly to present a sense of the meeting resolution consistent with Appendix A Powers and Functions of the RTM in regards to all public fields of the Town of Greenwich. This item was presented to the committee by Miriam Kreuzer, a resident of the Town of Greenwich. She explained that she is one of many citizens that are concerned with the lack of

8 quantity and quality of the sports fields across town. The citizens are proposing to form a committee to address this issue. While the committee agrees that this is an important issue and is supporting of upgrading and increasing the quantity of the fields in town, they felt that it was too early to bring this item forward because it lacks the specifics around how members would be selected to ensure the various broad interests of the community are represented. For this reason, a motion was made to ask the sponsors to withdraw this from the call which was then seconded and passed (Districts 2, 9 and 11 opposed) However, after the vote was passed, a committee member reminded the committee that it was already on the call and could not be removed in this manner. A motion was then duly made and seconded to postpone Item #16 indefinitely until the specifics could be defined and then brought back onto a call in the future. This motion passed (Districts 2 and 9 opposed). The No votes were due to the concern that postponing the forming of this committee would delay field renovations further. The Chair expressed the sense that the committee would prefer that the proponents withdraw the resolution until the various concerns expressed by members could be adequately addressed, rather than the Finance Committee having to bring the motion to postpone indefinitely to the RTM. Debt Policy Discussion: Following the discussion of the items on the call, the committee went on to discuss the Capital Budgeting process. A debt and financing policy working group has been formed with several members of the RTM Finance Committee to work on a proposal for a debt financing policy. They have been working with members of the BET, Town Comptroller s office and other experts in the field. They are also investigating how the RTM can be more proactive in the process rather than having the bonding resolution as the final item on the call during the May budget meeting, which often ends after 12:00 am. A draft proposal of the report is expected in November The meeting adjourned at 10:25 pm.