Employee Compensation Advisory Committee Meeting Minutes
Date: 1/18/13 at 2pm
Present: Gareth Backhaus, Muriel Lazzarini, Mickey Jervas, Maynard Forbes, Melissa Noe and Larry Klein
Absent: Daniel Moriarty
- The minutes from 1/11/13 were approved as amended.
- Medex & retirement followup: M. Noe provided everyone with a copy of Town Counsel’s response on Chapter 32B Section 18 of the MGL’s (full text can be found here: http://www.malegislature.gov/Laws/GeneralLaws/PartI/TitleIV/Chapter32B/Section18). He was asked to clarify this section to determine if the town has been correctly paying 50% of a retiree’s health insurance or if they are supposed to be paying 100% as the article wording implies. Town Counsel’s
initial read section 18 is that it doesn’t cost for the retiree to enroll in this program but it will cost the retiree 50% of the premium as was accepted at town meeting at the same time (MGL Chapter 32B Section 9A).~ Town Counsel states that:
a. If the town were proposing to pay 100% of the cost the verbiage of the article would’ve been different,
b. hat the town cannot unwittingly accept a plan that would cover 100% of a retirees premium if they did not fully understand through discussions and explanations at town meeting that by accepting this MGL they would be accepting to pay 100% for retirees from this point forward. There would have had to have been an in-depth discussion at town meeting clearly explaining that accepting this would mean that all future retirees’ health benefits would be paid 100% by the Town. Muriel is going to speak to the Town Clerk to see if there is an audio recording of the 2006 annual town meeting.
c. Town Counsel will provide more information and interpretation
- Some of the committee members did not agree with Town Counsel’s opinion on the matter and felt that Attorney Collin’s response regarding insurance and retirees from November of 2012 noted that when Section 18 is accepted it overrides Section 9A. Attorney Collin’s responses will be re-reviewed.
- Mickey inquired as to why an employee for the town who is married with no dependents is not allowed to have 2 single health insurance plans rather than a family plan (which is more expensive) if a retiree over 65 has Medex and their spouse under 65 stays on the HMO. An active employee 65 or older remains on the HMO policy until they retire. M. Noe was directed to call our insurance rep at MIIA to find out the answer.
- The committee reviewed and made their recommendations for the proposed salary ranges for the full time positions in the town. The committee reviewed the salaries of similar positions in the surrounding towns. It was noted that our salary ranges will be lower than surrounding towns as last year the employees, Select Board and Finance Committee all agreed to lower salaries and other benefits (like sick time buyouts, etc) than surrounding towns in exchange for better health benefits and town/employee split than surrounding towns offer. Discussions ensued on the types of salary increases (COLA and/or merit raises); the town has not given merit raises only COLA increases which have been 3% with the exception of 2 years ago when no increase was given. The town does not currently have an evaluation procedure to give
merit raises. The salary sub-committee will meet next week to discuss the proposed ranges discussed today and amend the chart to present to the full committee at the end of the month.
- It was noted/requested that the physical requirements should be addressed in the job description, if applicable.
- Memorandum’s of Understanding: M. Noe was asked at the previous meeting to see if Town Counsel had a sample template of a MoU from any of his other towns and if he’d be willing to sit in as counsel on any negotiations once MoU’s are put in place. Town Counsel was not in favor of MoU’s as his legal opinion is that it changes an employee from “at-will” to contractual and presents other legal issues if the compensation agreed upon in a multi-year MoU is not accepted at town meeting. The committee intends to put a disclaimer in the MoU’s that the figures are subject to town meeting appropriation. Town Counsel also stated that if he were to sit in as counsel on negotiations that the Select Board and Finance Committee would need to be aware that this is not calculated into his
current salary and that with these types of negotiations the hours involved can be incalculable. He did not have any samples to offer the Town. The committee felt that language could be put in the MoU to address termination. Larry felt that there is still a risk with terminating a contracted employee even with a termination clause. Since Town Counsel has admitted that collective bargaining/labor is not an area of law he practices the committee feels that outside counsel will be necessary and that the legal fees line item will need to be increased. Since the legal monies available for FY13 have been spent options available to pay for these services to institute MoU’s this year instead of next were discussed. Muriel will contact Attorney Collins to find out how much they would estimate this to cost and if they have any sample template of MoU’s. It was asked what their opinion would be on instituting MoU’s and it was noted
that they answered this in their 2nd response dated Nov. 28th.
- The Committee reviewed copies of the Town of Egremont and Town of Sheffield annual town meeting warrants, specifically the budget section which in both these towns is consolidated by departments rather than by each individual line item. At town meeting voters would vote on a department budget as a whole rather than each line item within a department’s budget; holds could still be made at town meeting but this would eliminate personal attacks on positions and hopefully shorten the length of the meeting as well. A suggestion was made to combine the BOH Clerk salary into the line item Inter-Departmental Secretary line item since the same person does the job; M. Noe will check with the Board of Health members 1st to make sure they do not have any issues with this. If this does happen the Select Board will
take care of explaining the appearance of a bump in salary as was done when the Animal Control Officer position/salary was combined into the Police Chief’s line item. Everyone will review this further and the committee will discuss this more at the next meeting.
- Employee Handbook; everyone had a chance to review the revised draft copy of the employee handbook and suggested changes/additions were discussed and will be added.
- The Committee discussed the option of recommending a two tiered system for town/employee contributions for health insurance (new hires and existing employees). Mickey felt it was a good idea and Maynard did not arguing that since the starting salaries are lower than surrounding towns our benefits are what will attract qualified applicants. This conversation was not finished as some committee members had to leave; discussion will continue at the next meeting on whether or not we want to make a recommendation to the Board for a two tiered system.
Submitted by:
Melissa Noe, Inter-Departmental Secretary
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