Finance Committee Meeting

Minutes – August 15, 2011

Town Hall, Lower Level Hearing Room, 7:30 P.M.

Members Present:  Arnold Cohen, Gordon Gladstone, Charles Goodman, Alexander

                               Korin, Ira Miller, Jacqueline Modiste (Hamilton)

                Absent:   William Brack, Brian Fitzgerald, Joel Lessard, Laura Nelson

1. Ira Miller filled in for Chairman Joel Lessard.  The agenda was a review of the town’s health insurance with the health insurance advisor, Peter Kenney of Cook & Company.  Ben Puritz and Bill Fowler were also present.

2. Peter Kenney gave his background information.  He had been in Sharon at least ten years.  This is the third year renewal rates have been held.  The town is self-insured.  The co-pays have been increased.  The schools went up two years ago.  On the school side came from 80/20 to 75/25.  On the town side a group still at 80/20 but a growing group going to 70/30 and new hires are 70/30.

3. There was much discussion on the claims, Trust Fund balance of $3M with possibility of reducing by $1M, stop-loss insurance cost, and Plan Design from Legislature.

4. There was a suggestion to show what the annual cost is.  The total premium is $17,000 or $18,000.

5. Peter Kenney reported that the new legislation gives Selectmen the ability to vote for a local option to begin a negotiation process with the union which would last 60 days to negotiate with a group of public employee committee.  If you don’t come to agreement with them, (1) mandated to go into GIC or (2) similar GIC plan.  Sharon would not go into GIC.  The Sharon plan would save money and GIC wouldn’t.

6. There was continued discussion on the costs for co-pays and deductibles on the different plans and rates to be in 8% to 12% range.

7. An analysis of the Plan Design would be made by Peter Kenney, and Ben Puritz stated he would forward this analysis of the Plan Design changes to the Finance Committee.  To be checked on in three weeks.

8. There was some discussion regarding increase in rates after holding the same for three years.

9. A MOTION was made by Gordon Gladstone and SECONDED by Arnold Cohen that the Finance Committee enter into Executive Session for the purpose of discussing the town’s collective bargaining strategy and then dissolve the meeting.

10. VOTED:  6-0-0.  For:  Cohen, Gladstone, Goodman, Korin, Miller, Modiste.

11. The regular session meeting adjourned at 8:55 p.m.