Town of Mount Desert
Board of Selectmen
Special Meeting Minutes
Wednesday September 29, 2010
A meeting of the Board of Selectmen was held this date in the Meeting Room, Town Hall, Northeast Harbor Maine.
Those present included: Chairman Tom Richardson; Selectmen Jean Bonville, Chuck Bucklin, and Marilyn Damon; Town Manager Durlin Lunt; CEO Kim Keene; Fire Chief Mike Bender; Harbormaster Shawn Murphy; Assessor Kyle Avila; Public Works Director Tony Smith (4:00 p.m.); Town Clerk/Recording Secretary Joelle Nolan; and members of the public. Selectman Rick Mooers was excused.
I Call to order at 3:30 PM
Chairman Richardson called the meeting to order at 3:30 p.m.
MOTION: Selectman Bonville moved, seconded by Selectman Bucklin, to take agenda item VII. A out of order. The vote was unanimous in favor, 4-0.
VII New Business
A Approve Malt, Spirituous and Vinous, Class I liquor license for Harbor View Corp d/b/a Main Sail Restaurant.
MOTION: Selectman Bucklin moved, seconded by Selectman Bonville, to approve the Malt, Spirituous and Vinous, Class I liquor license for Harbor View Corp d/b/a Main Sail Restaurant. The vote was unanimous in favor 4-0.
II Minutes
A None
III Appointments
A None
IV Consent Agenda and Communications CONSENT AGENDA (These items are considered to be routine, and therefore, will not be allotted Selectmen discussion time on the agenda. The items may be passed by the Selectmen in one blanket motion. Any Board member may remove an item from the “Consent” portion of the agenda for discussion or questions by requesting such action prior to consideration of that portion of the agenda.)
A None
V Selectmen’s Reports
VI Old Business
A Maine Municipal Employees Health Trust, Susan Smith, presentation regarding health insurance options/costs
Chairman Richardson welcomed Susan Smith, Field Service Representative for Maine Municipal Employees Health Trust (MMEHT). Chairman Richardson went on to clarify his position on a comment made by Selectman Mooers at the end of the last regular Board meeting in which Selectman Mooers suggested only newly hired employees be subject to any changes made in health insurance coverage; specifically, only employees hired from the point of change forward would be required to contribute to the cost, if that is the change. Chairman Richardson disagrees with that theory and said he believed any changes should encompass all employees.
Ms. Smith started her presentation by distributing claim statistics from 2008 and 2009, which showed our loss ratio at a healthy 62/69%, respectfully. Anything under 100% is good. Loss ratios could represent preventive measures; she sees this as a positive. The 6 -8% administrative costs we pay is included in premiums paid. MMEHT is a self-insured program; the pool shares the costs.
Spreadsheets showing the five medical plans offered and corresponding premiums were reviewed. More than one plan can be offered to employees. Some towns choose a core plan, then allow employees to purchase a better plan. Other towns offer a set amount (such as $1,000) to each employee to spend on selected plans.
Health Reimbursement Arrangement (HRA) plans are being used by some towns. Town Manager Lunt reported that Waldoboro’s (a town similar in size as Mount Desert) administrative costs for an HRA are $2,000-$3,000 dollars annually. Ms. Smith explained individual plans cannot be tweaked; however, choosing a plan with a higher deductible and covering the deductible with an HRA could realize a cost savings.
Various scenarios regarding plans and premiums were explored. For instance, the difference between a POS and PPO was explained: with a POS, employees must choose a primary care provider; the PPO is a managed care plan and employees do not choose a primary care provider. From the financial analysis worksheet, it was obvious that changing to a POS-B plan would save $90,000 annually. An HRA could be established with the savings. The PPO-2500 offers the greatest savings and the highest deductible. Retirees are eligible and would convert to any new plan chosen.
Ms. Smith clarified that it was up to the Town to decide what, if any, portion of the premiums were paid by employees. Selectman Bonville asked if many towns pay 100% of the health insurance premiums, and Ms. Smith replied only a few. Selectman Bonville also asked if employers will be required to cover part-time employees under the new federal regulations. Ms. Smith was unsure and suggested that might be answered at a discussion to be held at the MMA Convention in October.
Assessor Kyle Avila stated he understands the need for cost savings; however, cutting benefits and salaries could have a negative effect on moral, along with implications for employee retention and attracting new employees. The Board might consider boosting other benefits as a trade off. Chairman Richardson said he understands and has heard this argument before; however, it would be fiscally irresponsible to not research options. Town Manager Lunt said we want to avoid having employees think the Board is going after their benefits. We want both employees and tax payers to win by determining how we can maintain benefits and save money.
Ms. Smith introduced the subject of MMEHT’s Wellness Program which provides risk assessments, Lunch and Learn programs, smoking cessation plans, and many other healthy plans. Fire Chief Bender commented that although the Safety Committee has looked at the Wellness Program information, it is currently committed to the Leadership Program. It is too much to do both at once.
Board thanked Ms. Smith for her presentation and agreed it had much to consider.
VIII General Issues
A None
IX Committee Meeting Reports
A None
X Treasurer’s Warrants
A None
XI Executive Session
A None
XII Adjournment
MOTION: at 5:05 p.m. Selectman Bonville moved, seconded by Selectman Bucklin to adjourn the meeting. The vote was unanimous in favor, 4-0.
Respectfully submitted,
Jean E. Bonville
Secretary
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