AVON TOWN COUNCIL
MEETING MINUTES
January 8, 2009
I. CALL TO ORDER
The meeting was called to order at 7:30 p.m. at the Avon Senior Center, 635 West Avon Road, by Chairman Carlson. Members present: Mrs. Samul, Messrs. Pena, Zacchio and Shea.
II. PUBLIC HEARING: none
III. MINUTES OF PRECEDING MEETINGS: November 24, 2008
December 4, 2008
On a motion made by Mr. Pena, seconded by Mr. Zacchio it was voted:
RESOLVED: That the Town Council accept the November 24, 2008 minutes as submitted,
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor.
On a motion made by Mr. Pena, seconded by Mr. Zacchio it was voted:
RESOLVED: That the Town Council accept the December 4, 2008 minutes as amended ---remove road lines and insert guard rails on page 7, last paragraph.
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor.
IV. COMMUNICATION FROM AUDIENCE – Items not on this Agenda
V. COMMUNICATION FROM COUNCIL
Mr. Zacchio reported having seen the Avon Police Department in action last Friday night for a medical emergency at the table right near him at a local restaurant. It was headed by Sgt. Casey and Ryan Dery and Jason Reid responded and they did an outstanding job. You hear a lot of stories about the Police Department doing a good job but they showed such compassion.
Mrs. Samul reported having the pleasure of lighting the Menorah on the Town Green. Florence Stahl stated her appreciation to the Council for the support. She reported Mr. Pena, Mr. Shea and the Assistant Town Manager, attended the Metro Hartford Alliance breakfast which was extremely interesting. One thing was floating the idea of increasing the gasoline tax by $.03, implementing tolls on the highways and putting the funds into a lock box for transportation improvements to help facilitate business. The next thing was upgrade of the railroad between New York, New Haven, Springfield, and Boston, not the Griffin line. In a side discussion, smart growth and regionalization were topics as well.
Chairman Carlson stated January 22, 2009 will be the date that we will be getting together with State Representatives in Granby.
A. Recognition of Retirement: Avon Volunteer Fire Department- Peter Delap, Assistant Fire
Chief
Chairman Carlson invited Mr. Peter Delap to join him in the front of the room to be presented with a proclamation. Mr. Delap is retiring as Assistant Fire Chief and on behalf of the Town Council the proclamation was read.
RESOLVED: That the Town Council on this 8th day of January, 2009 adopt this RESOLUTION in recognition of TEN FAITHFUL YEARS that PETER W. DELAP has rendered as the Assistant Chief in the Avon Volunteer Fire Department. The Council wishes to express, on behalf of the Town of Avon, its appreciation of his service.
WHEREAS: PETER joined the Avon Volunteer Fire Department on February 26, 1976 to be part of a group that is dedicated and are constantly giving of their time and efforts for the protection of its residents and businesses.
WHEREAS: PETER is a native of Avon and he knew Avon as a small rural town and he has seen it grow to a suburban town of 17,000 residents. This growth and the needs of the Fire Department have grown accordingly. He has a long list of service stripes and command positions that ultimately raised him to the rank of Assistant Chief. His years cover a wide spectrum of services including duties and responsibilities for which we honor him, especially his ten years as Assistant Chief. We also note that he has held rank positions such as: Lieutenant - Company 2, Captain - Company 2 and Deputy Chief.
WHEREAS: PETER is widely known for his dedication, he is extremely hard working and is always available to respond to fire calls. His fellow fire fighters characterize him as nice, friendly and always willing to help. He has a multitude of friends in the department as well as outside the department and anyone who knows him consider him a friend. In addition to all his fire fighting skills he is also known as an excellent cook and is recognized on Avon Day for his pulled pork.
BE IT THEREFORE RESOLVED: That this Resolution be our earnest expression of appreciation for your service as Assistant Chief. We are aware you are stepping down because of your desire to be less involved in the command of the Fire Department, but we are hearten by the fact you will continue to be a member of the Fire Department.
LET IT BE KNOWN: That this RESOLUTION be spread upon the minutes of the January 8th Town Council Meeting and that a copy of this. RESOLUTION be presented to PETER W. DELAP.
VI. OLD BUSINESS
07/08-38 Review Discussion and Approval: Police Officers' Meritorious Service Fund,
Requested change in By-Laws
The Town Manager reported this is a very minor change. Essentially it ended up in the By-Laws but it is really out of context with relation of the fund proceeds and the word Actuary ended up in there. The word needs to be removed.
On a motion made by Mr. Zacchio, seconded by Mrs. Samul it was voted:
RESOLVED: The Town Council approves the removal of the word Actuary in the Police Officers' Meritorious Service Fund By-Laws
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor.
08/09-04 FY 09/10 Budget: Town Council Budget Workshop Schedule: Recommended Date:
Saturday, February 28, 2009 at 8:00 a.m.
On a motion made by Mrs. Samul, seconded by Mr. Pena it was voted:
RESOLVED: That the Town Council approve the Budget Workshop Schedule for Saturday, February 28, 2009 at 8:00 a.m. in the Selectmen's Chambers
8:00 a.m. Budget Overview
8:30 a.m. Library
9:00 a.m. Fire Department
9:30 a.m. Break
9:45 a.m. Police Department
10:15 a.m. Public Works & Parks
10:45 a.m. General Government
11:15 a.m. Public Safety (except Fire and Police)
11:45 a.m. Health /Social Services
12:00 p.m. Lunch
12:30 p.m. Recreation
1:00 p.m. Conservation & Development
1:30 p.m. Engineering / Sewers
2:00 p.m. Break
2:30 p.m. Special Revenue funds / Capital Improvement Program
3:00 p.m. Adjustments, wrap-up -Adjourn
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor.
08/09-29 Approve Resolutions:
a. Replacement of Avon Middle School Roof
b. Renovations Additions and Improvements to Buildings #1 and 2
c. Sign Notice of Town Meeting
d. Set Poll Hours
The Assistant Town Manager reported the Council needs to take separate action on these resolutions. The two projects do need to be voted on separately since they will be two separate questions on the ballots. Chairman Carlson reported the Town Meeting will be on January 26, 2009 with the referendum on February 26, 2009 from 6:00 a.m. to 8:00 p.m. The Assistant Town Manager reported we also have to vote to set the poll hours since they are longer than what is required by State law.
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: that the Town Council recommends that the Town of Avon appropriate $2,845,000 for costs related to the replacement of the Avon Middle School roof and related improvements including but not limited to replacement of the rooftop HVAC units, installation of upgraded HVAC controls, installation of rooftop privacy screens, and related building improvements and appurtenances. The Town anticipates receiving grants in the estimated amount of approximately $330,580 from the State of Connecticut Department of Education to defray in part the appropriation for the project.
FURTHER RESOLVED, that the Town Council recommends that the Town of Avon issue bonds or notes and temporary notes in an amount not to exceed $2,845,000 to finance the appropriation, the amount of bonds or notes authorized to be issued to be reduced by the amount of grants, if any, received by the Town for the project.
FURTHER RESOLVED, that the foregoing proposal be considered by a Special Town Meeting to be held on Monday, January 26, 2009 at the Avon Senior Center, 635 West Avon Road in Avon, Connecticut, at 7:30 p.m. and that a referendum vote on the foregoing proposal be held at a reconvened town meeting on Thursday, February 26, 2009 between the hours of 6:00 a.m. and 8:00 p.m.
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
On a motion made by Mr. Shea, seconded by Mr. Zacchio, it was voted:
RESOLVED: that the Town Council recommends that the Town of Avon appropriate $875,000 for costs related to renovations, additions and improvements to Buildings ## 1 and 2 at the Avon Town Hall campus. The project is contemplated to include an approximately 800 square foot addition to Building #2 to accommodate an expansion of the Town Clerk’s vault, minor modifications to the office area outside of the existing vault, replacement of the entry way door and other minor repairs and upgrades, the refinishing of the roofs of Buildings ## 1 and 2, and related building improvements, site improvements and appurtenances.
FURTHER RESOLVED, that the Town Council recommends that the Town of Avon issue bonds or notes and temporary notes in an amount not to exceed $875,000 to finance the appropriation.
FURTHER RESOLVED, that the foregoing proposal be considered by a Special Town Meeting to be held on Monday, January 26, 2009 at the Avon Senior Center, 635 West Avon Road in Avon, Connecticut, at 7:30 p.m. and that a referendum vote on the foregoing proposal be held at a reconvened town meeting on Thursday, February 26, 2009 between the hours of 6:00 a.m. and 8:00 p.m.
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: The Town Council set the polls hours at the Avon Senior Center for February 26, 2009 from 6:00 a.m. to 8:00 p.m.
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
On a motion made by Mr. Shea, seconded by Mrs. Samul, it was voted:
RESOLVED: The Town Council authorize the Chairman to sign the call of the Town Meeting to be held on January 26, 2009 at the Avon Senior Center Community Room. (The call is attached and made part of these minutes).
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
08/09-30 Appointment: Collector of Revenue, Deborah Fioretti
The Town Manager stated the Council authorized the appointment of Deborah Fioretti as Collector of Revenue at the December meeting but she was unable to attend. Deborah has worked for a long time as the Deputy Collector of Revenue and is now the Collector of Revenue and knows she has her work cut out for her. Mrs. Fioretti was introduced to the Town Council.
08/09-37 Review and Discussion: Healthcare Provider Change
a. Waiver of Purchasing Policy
b. Approval of Two Year Contract with CIGNA
Chairman Carlson reported this items will be covered first by bringing everyone up to speed on an issue dealing with conflicts of interest, secondly the bidding process that was used will be explained, thirdly the Aon representative will explain who they are recommending and why such a recommendation was being made. The Council will ask questions then it will be opened up to the audience for comments.
Chairman Carlson stated when this was first put before the Council, we wanted to make sure that there were no conflicts of interest with the Council. Chairman Carlson reported having a concern with his past employment with CIGNA as an officer. Mr. Zacchio also had a concern. The plan that is being discussed this evening is the non-teacher plan. This is a health plan for the Town employees, not the Board of Education or the teachers. Mrs. Samul also reported a concern with her husband's former employment with CIGNA. Based upon a legal opinion from the Town Attorney it was decided that myself and Mrs. Samul have been cleared to participate in the discussion but Mr. Zacchio has not. He will recuse himself from the discussion. Mr. Shea reported on the advice of the Town's Attorney he has been
cleared for the discussion as well and for the record he is a licensed property casualty and life and health insurance agent in the State of Connecticut. Chairman Carlson reported after discussion the Council will vote. It is possible with only four members present to vote that a tie may occur and was advised that action should be taken up front. One course of action is to authorize the Town Manager to move ahead and make the decision.
On a motion made by Mr. Shea, seconded by Mr. Pena it was voted:
RESOLVED: That the Town Council authorize the Town Manager to make the final decision on the healthcare provider in the event a tie occurs within the Town Council.
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
Mr. William Vernile, Director of Human Resources, reported this process was initiated back in November of 2007 when we asked our consultants AON to market all of our healthcare programs, which would be: medical, dental, drug, life and long term disability. The results of the RFP provided an opportunity for the Town to reduce the healthcare costs. The carriers for dental, ltd and life insurance will stay the same but a change in medical will need to take place if we want to take advantage of the reduced costs. It became apparent in the spring of 2008 that CIGNA's proposal would provide benefits that they told us would be equal to or better than the current benefits that are being managed under our current plan. We had an informational meeting in May where we invited the labor groups from both the town side and board of
education side to listen to the proposals and ask questions. A second meeting was held in July, 2008 which was also attended by CIGNA and employee labor groups. The process progressed through the fall and summer months, both CIGNA and Anthem submitted revised bids and subsequently in October the Board of Education voted to change carriers from Anthem to CIGNA. Subsequently to that it was asked that both Anthem and CIGNA could bid one other time. They sent in revised bids and accordingly to Aon's analysis the savings in the first year would be around $91,000 and expected savings in the second year would be over $205,000. The reason of the first year being so much lower would be the run off of claims we would have to continue to pay to Anthem at the same time. A number of issues were raised on the Board's side also, concerning potential conflicts of interests. Also, questions about CIGNA's financial stability. The Town Attorney's office did a
legal opinion relative to conflicts of interest on the Board's side and determined there was no conflict. In addition what we did on the town's side was try to obtain a quote from Anthem to try and find out if the Town separated from the Board and we went fully insured what the cost would be. Those rates were 9% higher than the quotes we had already. Also, if we broke away from the Board it may have impacted CIGNA's bid in regards to the Board since it would have reduced the group size. CIGNA had agreed to hold their quote to a change over date of April 1, 2009. That still leaves three months to go through this process and we will have a dedicated team assigned to Avon to assist with the enrollment process and get everyone signed up and work on producing a plan and have everything in place for an April 1st transition.
An Aon Representative reported on some of the financial aspects. The Anthem final proposal would take affect on July 1, 2009. The account would move over to CIGNA on April 1, 2009 if this is approved, so we chose to analyze the first full twelve months. The final costs are composed of $764,095 for fixed administrative costs, these that are guaranteed costs for the full twelve month period. Claim costs of $6,747,545 for a total of $7,511,640. Chairman Carlson questioned if it would be reasonable to expect approximately 25% of those costs for the April 1, 2009 through June 30, 2009 period. The Aon representative reported it would be reasonable to expect if you took that number and 25% of that would go back into that. CIGNA's final proposal which was $696,858 for fixed administrative costs and paid claims of
$6,612,594 which is a savings of approximately $134,000, for a total cost of $7,309, 452 and estimated savings of $202,000 and as Mr. Vernile pointed out it would be upset in the first year by the run out of the first plan in administrative plan in the amount of approximately $110,000.
Mr. Shea questioned an elaboration of the estimated claim projections on either Anthem or CIGNA's? There are significant savings with the CIGNA number, and feels it would be appropriate to give at least some analysis as to the expectation in how the numbers were arrived at. The Aon Representative reported the first piece is guaranteed and we know the savings are going to be there, but from the claims side this is a soft number. What we do in the analysis is represent about 90% of the cost of the plan in the claims side. We have a confidential agreement with all the healthcare companies in America and it provides us with the discount data by a three digit zip code throughout the country. We take that information and load it into our software and we come up with relativities. Mr. Shea questioned when the zip code
matches are done how are we to know these zip codes match where our employees live. Is it based on where they work? The Aon representative reported the zip codes are based on where the employees live. The Director of Human Resources reported they supply this information to Aon for use. Mrs. Samul stated the difference is the Anthem number and the CIGNA number is your estimation and not something that Anthem or CIGNA actually calculated. The Aon representative reported that is correct although the data that we use is provided to us by those organizations.
Mr. Pena questioned the process and stated it was mentioned that people did not hear of meetings that were held during this process, how does this work. The Director of Human Resources stated you are referring to the Union Representatives. Generally these are communicated through email and there are copies of emails in the packet of communications that went back and forth. We have been pretty successful with that. One of our Union Presidents sometimes does not have direct contact with email so in that case we have asked someone in administration to hand delivery copies to them. If there are any questions we are available in person and also on the phone. Mr. Pena further questioned the notation that the Public Works and Police requested a copy of the summary program and were told they could not
receive it until a month before April. How does this work? The Director of Human Resources reported when there is a transition such as that, the insurance company is not going to have the summary program description prepared unless they know that they have the account. Normally that document is produced within 30 days after the program has started. In this case, CIGNA indicated to us that they would have it prepared by July. Mr. Pena questioned if that is normal for them to do. It was stated by the Aon representation that this is not normal. Usually it would be months after the effective date for the delivery of the preliminary description for the client to review and sign off on before it went to final print. Another question was presented by Mr. Pena, regarding separating the Town from the Board of Education it was reported the plan would be 9% higher. Did you speak to the unions about potentially increasing their co-pays to cover this cost?
The Director of Human Resources stated to do this we would have to open up contracts for negotiations and the other problem would be is keeping track of the additional shares they would have to pay. This would also affect the Board of Education since we would be breaking off from their group. The Aon representative reported the 9% increase would not go down by having individuals pay more for the co-pays.
Chairman Carlson questioned CIGNA's financial viability and challenges that they have. What would happen if they would not be able to provide a service? The Aon representative reported with the Town being self insured CIGNA does not have a financial obligation to the town; they have an obligation to pay the claims. CIGNA is still rated A for their ability to conduct business. Their investment rating, or bond rating, was down graded from an A to a B. Aon internally has their own security control that requires that we only work with A rated companies. Chairman Carlson questioned if there are any plan difference between Anthem and CIGNA, in terms of co-pays, coverage, or anything of that nature which could have lead to these cost savings from CIGNA. The Aon representative reported the CIGNA
representatives have guaranteed the Board of Education and Town in writing that the benefits are equal to what they currently have. Chairman Carlson further questioned how is Aon compensated for services? The Aon representative reported they are compensated by fees paid by the Town and Board of Education. It is a direct fee regardless of what carrier is chosen. Chairman Carlson questioned if the network match can be described and what is it. The Aon representative reported when we are engaged with the possibility of moving, we went back to the current vendor and asked for the latest twelve months of paid claims. We then take that and provide it to the vendor who provided the RFP and asked them to match up to your network. In this case there were some of the individuals' records where Anthem left out to much information for CIGNA to be able to compare the information to determine and if it would be in or out of network. Chairman Carlson
questioned how many claims were processed. The Aon representative reported professional side which would be doctors and labs there were 2,418 records and Anthem matches 96.7% and CIGNA matched 91.7% and on the institutional side there was 2,501 professional records and 2,242, (91.7% )matches on the CIGNA side. On the institution side there were 117 records from Anthem and 94% match and CIGNA side it was a 97.2% match. Chairman Carlson question how the other claims are paid. The Aon representative reported they could be paid out of network. The in network for CIGNA is actually higher.
Mr. Shea questioned the issues on Eastern Connecticut and the Hartford area. The Aon representative reported the situation in Eastern Connecticut was unfortunate. The providers and vendors negotiate on an on-going basis. We can not analysis that since every vendor negotiates with their providers on an on- going basis and we are not privy to those negotiations. Once they negotiate a contract they have it for 2-3 years and then they will renegotiate. We are not part of the process.
Mrs. Samul questioned if there is always going to be a run off processing charge for carriers if we chose to change carriers. The Aon representative reported that in his opinion, Anthem charges more than the other companies. Mrs. Samul reported she wanted to make sure we have done everything in our power to keep our employees informed and in the loop and further questioned if this has been done. The Director of Human Resources reported this has been done. They have been asked to participate, and attend meetings. There have been requests for information by unions and any information we have has been distributed to them.
Mr. Pena reported knowing this program is as good or better than the current but after receiving them did you go back to the Police and Public Works union and ask them to increase their co-pays rather than change providers. The Director of Human Resources reported this was not done. It would require re-opening up the contracts and this is not something we can do. In the contract it states we can change providers if the benefits are greater than or equal to what we currently have. So there is no need to negotiate. Mr. Pena further questioned the decision that came out in December when the letter regarding conflict of interest with the Board of Education came out. He will have to abide by the decision of the legal opinion had the decision had been early on. It seems to me that maybe the people involve already went
through the whole process and now all of a sudden it may have already been tinted. The Town Attorney agreed it would have been preferably if the issue had been identified and dealt with early on and if we had concluded that there was a conflict of interest well down the road then the Board of Education would have had a problem since Mrs. Roell had been involved. Because we had concluded that she never did have a conflict of interest then the process was not in any way harmed by her involvement, but do agree it would have been preferable if the issue would have been raised earlier. The only reason it was not raised earlier was after reviewing the Charter it was decided a conflict of interest did not exist which was the correct conclusion. Mr. Pena reported although there was no conflict of interest it may still have been good to reuse oneself to begin with. The Town Attorney reported there was not conflict of interest and the process was not tainted.
Mr. Joe Fields, a representative for the Avon Police Department union, reported having a background in insurance and a Ph.D. in insurance. He reported all the materials presented this evening have been reviewed and feels there will be no money saved by making this change. Whenever you set up disruption in a program you have individuals who have been disrupted and have to use there out of networks providers, which means you are paying fees, or you have to be in a situation where they have to go to a new provider. My significant other is a provider and for her to find out what is wrong with someone she is going to spend $5,000-$6,000 the first time they walk through the door. From the perspective of the disruptive, it costs more. He has seen many municipalities move to CIGNA through his firm. There is disruption with
the prescriptions, and dozens of changes have to be made to documents to create substantial equivalents in the process. The one thing that bothered me about this is CIGNA has said they are going to match equal to or better. That is almost word for word from what it is that AON said in the City of Hartford before six years of litigation we were involved in associated with what "equal to or better" meant and how it was put together. The city did not prevail in any of the actions because of the exact same statement that the carrier said that there was going to be a match. The Police Union and Dispatchers union is going to work with you. Generally if you are going to switch carriers there is a rule of thumb and the rule of thumb is because there are litigation costs involved and there are changes in the plan away from the standard plan to meet the "equal to or better than" requirement. Most people do not make a change unless there is a 3-4%
differential and you definitely make the change if the differential is 6-7%. At this point we are dealing with a very little differential with what costs are and are depending on an estimate of the claims check in order to generate the savings. When you are done the savings that are generated between these two carriers are not enough to make up for the additional costs associated first with the disruption, second with the jury rigging that has to be done as with any plan. Jury rigging is when they take the existing plan and make changes and modify the plan to meet and match the existing plan. The drug plan on the Board of Educations side has an internal maximum in it. In all of my previous dealings with CIGNA they were not able to match the internal maximums and therefore had made the plan better for the employees. The problem with that is the price differential between the two drug plans based upon Anthems number is about 14% of the drug plan
cost. Each carrier is very specific on what they carry. The amount of money that is going to be saved here is not going to make the switch worth it. The kind of money that you are talking about here is not going to cover the costs of doing this within the collective bargaining unit. Mr. Shea questioned if that comments is because of the litigation? Mr. Fields reported it is not only due to litigation. There are three issues; the "equal to or better than" jury rigging that is going to have to go on, the second issues has to do with disruption. For example, in all of the analysis that he has participated in making these switches, there is a very small diminishment for chiropractic services under CIGNA. CIGNA has been able to accommodate this by opening up the network to include those that were providing Anthem coverage in these locations. The problem with that is it costs one quarter of a plan cost to do it and as you
know when you fill all of these holes that are going to exist generally you want to have 4-6% savings in order for you to put yourself in a position where you can compare the two groups together and compete them off of each other. The Town of Avon is using a claims analysis to compare the two costs and that is not a good idea. Chairman Carlson questioned the Aon representative why that is not a good idea. The Aon representative reported Mr. Fields feels there is not enough of a differential to make the move. We presented the differential but we do not provide recommendations as to whether of not it is significant enough. Data is provided to our clients so they can then make an informed decision. We can answer questions but we do not decide for you. Mr. Fields stated he provides advice to his clients when dealing with this and will take the contract and go through it line by line and match it up and force people to attest to liability
and that is going to cost more money by the time we are done then what you are saving. Chairman Carlson questioned if that is a threat of litigation. Mr. Fields stated usually he does not get into those situations. It is a process of going through the documents and matching up where there are differences and fixing them. The union at this point is planning constructive dialogue. If this fails then litigation is the last resort. Mr. Shea questioned how the information was received on how Aon came up with the number they came up with. How would you come up with a different number? Mr. Fields reported the number they came up with is assuming you are in one plan verses the other plan. The problem with that analysis is that it does not take into account that relationships people have with their providers. When you switch a doctor there is more money spent to review and get familiar with your case.
Mr. Pena reported as a consultant, Aon, for the Town of Avon you provide data for the client to make up their mind and if they should make the wrong choice there is no issue with that. The Aon representative reported they do the analysis and provide the information. It is not up to us on what move to make. What may be an incentive for the Town of Avon may not be an incentive for another company. Our philosophy is we do not recommend members, we provide information and answer questions about vendors and how the analysis was reached. Any questions concerning the RFP process and decision to change vendors is the responsibility of the clients. Mr. Pena stated so you would let us fall off the cliff. If Aon knows something that we do not know. The Aon representative reported we only work with
insurance professionals and do not feel we are letting anyone fall off the cliff. If we had a vendor not performing in customer service that is the RFP process, we look at the financial aspects of the vendors.
A member of the dispatcher union reported not receiving the packets that was referred to this evening, so the communication was not there during the process.
Carol Reller reported her husband is retired from the Town after putting in 25 years, and how did you notify the retirees before the letter of October, 2008. The Director of Human Resources reported a letter did not go out to them. Ms. Reller reported there is a whole group of people that were notified about this after the fact.
Charles McDougall a retired Avon Police Officer reported and I do not collect insurance from the Town of Avon and currently works for the Board of Education, and I am here as a tax payer. He reported going to the BOE meeting and collecting the information that was handed out and appreciates the facts and figures. Aon back in 1995 settled a $105million lawsuit for jury rigging and pushing insurance agencies wrongly. Mr. Fields was hired back in 1999 and saved the Town of Avon a ton of money at the last negotiations. This information now is information that you have but the Board of Education did not have. This information should be turned back over to the Board of Education so that it can be reconsidered. This is a train wreck with the Board of Education as the conductor and the Town as the cabooses.
Linda Merlin reported hoping the town knows what a valuable resource the employees are. How is it right that the Board of Education can vote first and that now the town is bound to this? There decision came first and we are stuck with it. Chairman Carlson reported the Board of Education voted first since they have the bulk of the employees. We can not change their vote one way or the other. Ms. Merlin questioned if the information can be sent back to the Board of Education so that they can reconsider their vote.
Bud Usich reported does the Town Charter, not provide a provision that allows the Town Council to make the budgetary recommendations to the Board of Education. This is a valid claim that you can make to the Board of Education so you can ask for it to be reconsidered. Chairman Carlson reported the Board of Education presents a budget to the Town Council for review and we will then present the budget to Board of Finance with our recommendations.
Linda Merlin questioned whether the Town and BOE could work together to develop one conflict of interest statement?
Mr. Shea reported the Town Council as a group has never taken a stand on the conflict of interest. It was referred to the Town Attorney. In time, you will see one conflict of interest for everyone.
The Town Attorney reported appearance of conflict is important but the mere appearance of conflict does not create conflict. There should be disclosure if there is a close call. The Town and the Board of education do have different policies, but do not feel the Board policy is inadequate.
Mr. Shea complimented Aon on their hard work and effort and did a good job preparing the information for this evening. This process is never easy. Mr. Pena stated in one of the letters it is reported if this process was to go back out to bid there would be an expense of approximately $30,000, on a $7.5million contract.
A resident in Avon questioned how much Aon was paid for their analysis. The Director of Human Resources reported the process was under the retainer for the town and board of education which is $30,000 annually, but if we went out to bid again there would be an additional fee. Chairman Carlson reported the idea of remarketing makes no sense to him since we are still in the same situation. Mr. Shea questioned what it would cost to take another 30 days and take a look at this data. The Director of Human Resources replied we have gone back to them several times with extensions. If we continue to delay we may need to start all over since the prices will not hold. Mr. Shea questioned how we weigh the benefits of a person similar to Mr. Fields working with Aon on this issue. The Aon representative reported
what CIGNA has told us is the bid will become null and void within the 30 days and we would have to remarket again. We have never been asked at the last hour to re-bid. We would be happy to sit down and redo it with Dr. Fields but that is your call. Mr. Shea reported having the soft costs and the estimated claims number that you say is a certain number due to your analysis and another expert may say the number is different.
An Avon resident reported thinking it was interesting that the Aon consultant reported usually before the RFP meeting with the Union Representative and that did not happen in this case. Chairman Carlson reported there were mails sent back in April that invited the union representative to meet with the Aon consultants. An Avon resident further questioned the disruption rates and how current they are. Mr. Shea reported thinking they said September.
Mrs. Samul thanked the Aon consultants for their hard works and for the participation from the public regarding this issue. We are here today not to decide or debate anymore procedure or conflict of interest since those issues have been put to rest by the Council but instead we are here to determine how we are going to spend the taxpayer's money. The taxpayers have made it abundantly clear they want us to be prudent and treat their dollars with respect and that is what it is coming down to. Mr. Shea stated being sensitive to the Town and would like to think that all the boards act prudently and do what they feel is in the best interest of the entire town in order to control costs. We have been presented with some new information and there needs to be new analysis. This is not an easy decision and it has changed my mind through
the length of the meeting.
Mr. Pena thanked all the people who participated in this process and it is a long process. As far as healthcare is concerned it is a personal issue. People resist change and would rather stay with what they know. There has been confusion about the program and we need more information. At this point in time would not feel comfortable voting for the change in carrier.
Chairman Carlson reported we do need to find some savings in our budget and came to tonight's meeting seeing $200,000 to $300,000 in savings over a two year period. This is intriguing when the healthcare is very similar to what is being offered. The only concern is whether we are going to incur other expenses in some fashion. The concern is that it won't cost us 9% less but 9% more. If that is the case be ready for us to cut employees, cut programs because we need to cut somewhere. The Director of Human Resources reported working on this for well over a year and have been relaying on the data from Aon. It is not usual for people to have competing theories on how expenses will be incurred. We trust the numbers that were presented. We are not going to change things that much differently in
another month.
The Town Manager reported we have all been through this in the past. The environment is different and we will need to change. We can probably look at remarketing every 2-3 years depending on the insurance and you can anticipate being asked being part of it. It was specifically asked of Mr. Vernile to make sure the union presidents were involved in this process and the unions were aware and we got no participation. We can complain about lacks of communication but the bottom line is no one participated in it. Now we are here with Dr. Fields, who was involved in this process in 1999 and maybe even earlier, that maybe had something to add to the debate. If the unions were interested in participating they should have taken him up at that point in time. We are behind that. The Board of Education has
already voted, so that leaves us alone. This would be higher costs for the Town and for the individual employees. Everyone here is in an awkward position and we are going to have to go with a change. If we do go with a change we are going to have to deal with it and learn from it for next time.
The Town Attorney reported there are several procedural steps we need to take. First, as the Council has been advised, the Town's purchasing procedures require certain steps to be followed when purchasing something in excess of $10,000. As in the past, the Town has employed a consultant, Aon, which has its own purchasing procedures and has allowed the consultant to apply their purchasing procedures and their RFP process. Because of that it is necessary for the Council to waive the Town's purchasing procedures and accept that they will follow the Aon procedures and purchasing policy. It should be based upon the recommendation of the Town Manager and it should be a formal vote.
On a motion made by Chairman Carlson, seconded by Mr. Shea it was voted:
RESOLVED: That the Town Council, based upon the recommendation of the Town Manager, waive the Town's purchasing policy and procedures with respect to the selection of a new healthcare provider.
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
The Town Attorney further requested that the purchasing policy should be waived again that would otherwise require the Town Council to make the final decision on the change in carrier.
On a motion made by Mr. Shea, seconded by Mr. Pena it was voted:
RESOLVED: That the Town Council waive Section XI. G. 3 of the Town's purchasing policy and procedures to allow the Town Manager to make the final selection of a new healthcare carrier should a vote by the Council result in a tie.
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
On a motion made by Ms. Samul, seconded by Chairman Carlson, it was voted:
RESOLVED: That the Town Council award the Health Care Insurance bid to CIGNA based upon their apparent low bid.
Mrs. Samul and Messrs: Carlson voted in favor. Messrs: Pena and Shea voted against, resulting in a tie.
Based on a motion earlier this evening the Town Council authorized the Town Manager to make the final decision. The Town Manager's decision was to award the healthcare insurance bid to CIGNA.
08/09-41 Appointments: Avon Clean Energy Commission
Mr. Pena reported Mitch Kennedy was also interested in the appointment was did not get back with an answer. Chairman Carlson reported it will be revisited at the February meeting. The Town Manager reported this was approved at the last meeting but there is no money yet in the budget for it.
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoint Brett Eisenlohr to the Avon Clean Energy Commission for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
On a motion made by Mr. Shea, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoint Jamie DiPace to the Avon Clean Energy Commission for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoint Bernie Zahren to the Avon Clean Energy Commission for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoint Olivier Gressier to the Avon Clean Energy Commission for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
VII. NEW BUSINESS
08/09-43 Appointments: Youth Services Advisory Board (12/31/09)
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoints Lori Stanczyc to the Youth Services Advisory Board for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena and Shea voted in favor
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoints James Pappa to the Youth Services Advisory Board for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoints Andrew Ray to the Youth Services Advisory Board for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoints Lt. Ronald Welch to the Youth Services Advisory Board for a term to expire December 31, 2009
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
Chairman Carlson reported we will revisit the remainder of the appointments at the February meeting.
08/09-44 Resignation: Town of Avon Representative to Farmington Valley Health District
(12/31/09)
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council accepts with great regret the resignation of Alice Herrmann as the Town Council representative to the Farmington Valley Health District.
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
08/09-45 Appointment: Town of Avon Representative to Farmington Valley Health District,
(12/31/09)
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council table the appointment of the Town of Avon Representative to the Farmington Valley Health District
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
08/09-46 Request for Appointment: Avon Day 2009, UNICO
On a motion made by Mr. Zacchio, seconded by Mr. Pena, it was voted:
RESOLVED: That the Town Council appoints with great appreciation UNICO to be the 2009 Avon Day sponsor with Len Del Gallo Chair of the Committee
Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor
VIII. TOWN MANAGER’S REPORT/MISCELLANEOUS
Misc. A: Construction Update - The Assistant Town Manager reported the Roaring Brook school project is complete and anticipate having $100,000 left in the budget from this project due to the $40,000 contingency budget and the $56,000 rebate check we received today from CNG.
Misc. B: Purchasing Update - The Assistant Town Manager reported we have seen a significant decline in the cost of gas for the next calendar year. This price is $1.38 which we thought was a great price. The only question now is what will gas prices be for the next year.
Mr. Pena questioned the floor at the AHS renovations. The Assistant Town Manager reported the original existing floor now has a new floor and is complete. We do have a meeting next week because we do have some issues with the new floor. There is also some concern that portions of the floor feel soft.
Mr. Pena reported at the Board of Education meeting in December there was comments from Dr. Kisiel about the ceiling leaking in the new gym. The Assistant Town Manager reported there was a HVAC unit that may have been leaking but it was not the roof. Ms. Peg Roell reported there was mention of it and we are working with FIP to resolve the issues.
Mrs. Samul stated she would like to see if we could use the funds saved from installing the new RBS boiler and perhaps some grants money to have the controls installed on the new boiler. Perhaps there is a new green energy type of grant we can apply for. Let's see what we can do capitalize on that. She questioned if there were any smoke or odor problems with the new boiler. The Assistant Town Manager reported not that she is aware of. The additional funds you are referring to, she believes the Board of Education is anticipating on that money for their operating costs for this year.
Mrs. Samul questioned if flooring could be discussed for the Senior Center and not carpeting. If it is an area with heavy traffic would another type of flooring be better. The Assistant Town Manager reported not knowing exactly which area it is but it is heavily stained and the toilet partitions need to be replaced. It can be discussed with the Director of Public Works and Recreation to see which application would be the best. The Assistant Town Manager reported doing the toilet partitions first and then with what is left over we can discuss the flooring.
The Town Manager reported the AVFD is requesting the funds for a replacement command vehicle, but it would cost $40,000 out of surplus. We do not have the money, and they do not have the money. They were going to buy the radios. They are trying to take advantage of the pricing now of the SUV's with the lower costs. Chairman Carlson reported this is something we have done in the past but when we feel it is a high priority item. The town staff should do some research and see if it is really needed. Mr. Shea reported it should go through the normal budgeting process and not take it out of surplus. Mr. Zacchio reported the vehicle prices are not going to be changing that much within the next year. Run it through the budget process. Chairman Carlson reported it should also be looked at by the Avon Clean
Energy Commission to review different options.
The Town Manager reported there is a significant salt shortage going around and we have had to access mutual aid for the last ten days or so. Part of this goes around to the treated salt, we do not have a large enough salt shed for the storage, which will be included in the Capital Budget so we can buy more in bulk in the future so we do not have to go every storm. The bid for salt is through CRCOG and the Assistant Town Manager has been working with them on next year.
The Town Manager questioned whether the Council would like to do on a consolidated code of ethics or Policy 19 on conduct of Board of Education and the Town. This does not need to be discussed this evening but we should move on these things. Chairman Carlson recommended that the Town Manager and the Superintendent of Schools sit down and draft a consolidated one working with the Town Attorney and present it to the Board of Education and the Town Council.
IX. EXECUTIVE SESSION: Land/Negotiation :
On a motion made by Mr. Pena, seconded by Mr. Shea it was voted:
RESOLVED: That the Town Council go into Executive Session at 10:00 p.m. to discuss personnel issues. Mrs. Samul, Messrs Carlson, Zacchio, Pena and Shea voted in favor.
The Town Manager, the Clerk and the Director of Human Resources attended the session.
On a motion made by Mr. Pena, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Town Council come out of Executive Session at 10:10 p.m. Mrs. Samul, Messrs Carlson, Pena, Zacchio and Shea voted in favor.
X. ADJOURN
The meeting was adjourned at 10:10 p.m.
Attest:
Caroline B. LaMonica
Clerk
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