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BOF 11/20/12 Minutes
REGULAR MEETING  MINUTES
NOVEMBER 20, 2012   7:00 P.M.
Old Saybrook Town Hall First Floor Conference Room
302 Main Street



CALL TO ORDER    Chairman LaMay called the meeting to order at 7:02 p.m.

 
BOF Attendant Members           Absent Members                  
David LaMay, Chairman                   Derrik Kennedy
Grant Westerson, V. Chairman            
Barry O’Nell
Tom Stevenson
Brad Thorpe
John O’Brien

In Attendance
Carl Fortuna, First Selectman
Barry Maynard, Tax Collector
Lisa Carver, Finance Director

Chairman LaMay led the Pledge of Allegiance.


Public Comment:    None

Approval of Minutes: 10/16/12 Joint Meeting with BOE:

Chairman LaMay asked for a motion on the minutes.

Motion:  To approve the joint meeting minutes with BOE of October 16, 2012 as presented.

Moved:  G. Westerson                         Second: B. O’Nell

Discussion:  None

Approved:  6-0-0

Pension and Benefits Board Report:
Mr. LaMay called upon Ms. Suzanne S. Taylor, Chair of this board.  Ms. Taylor introduced the members present including the board’s financial consultant from Merrill Lynch.  Ms. Taylor reported that her board had just learned that they had a fiduciary responsibility over the town employees’ “457 Supplemental Tax Free Savings Plan.”  Ms. Taylor noted that they have sub-committees: one is relative to reviewing potential investment managers and another is considering the administrative responsibilities of the Board in conjunction with the Charter Revision Commission.  Ms. Taylor noted that out of their budget of $25,200.00, $18K is allocated for the actuary.  $1,300 is allocated for education which allows board members to attend two state wide conferences a year as well as providing subscriptions to three important journals on Pensions and Investments and Other Retirement Benefit Issues, from the nationally recognized Employee Benefit and Retirement Institute in Washington, D.C.

She noted that the professional actuaries handle the administrative expenses, such as benefit calculations and they handle actuarial valuations that explain how we are progressing to fund what they calculate to be our future costs.  The Town’s is done annually; the Fire Department is done every other year as well as the Health Care or OPEB, (Other Post Employment Benefits.)

The actuary for the Pension and Benefits Board, pointed out that the board should consider reducing the expected 8% interest rate return recently used over time as well as reducing the personnel benefit rate of 5%.  It is the difference between the two that determines the rate of the annual required contribution.  They will continue to look at these factors by the end of December or early January.

At this time, Ms. Taylor introduced Tom Forma from Bank of America, Merrill Lynch to explain the management of our 16.5 million pension fund and the Health Care Trust of nearly a million dollars.

Mr. Forma reported on the funds current status and costs.  Mr. LaMay inquired of the pension managers.  Mr. Forma noted that there are 4:  Neuberger Berman; International INVESCO; (soon to be replaced); Eaton Vance Boston; and Alliance Bernstein Strategic Research Group.  The Health Care Reserve has 2 managers: Eaton Vance; and Lord Abbott.  Mr. Forma called the Board’s attention to the Executive Summary which included Valuation Results; 30 year US Treasury yields; Dow Jones Industrials Average and US Treasury Bond Yields.

It was noted that the pension funding level is now 6.25%.  Mr. Fortuna noted that the goal is to get to 6.5% and in the future 7-8%.  The BOS is working to address this.  Mr. LaMay asked what 6.25% equaled in dollars, to which Mr. Fortuna answered approximately $500K.

It was noted that the ICMA 457 Plan can be rolled over if an employee leaves.  

Ms. Taylor thanked the Board of Finance for having them, and noted that the next Pension Board meeting is January 29th, 2013 and invited the BOF to attend.   

Mr. LaMay thanked Ms. Taylor and her board.

Finance Director Report:
Ms. Carver reported on the following:
  • Spending time working on a more detailed budget; on contractual items; added space at bottom for notes;
  • Meeting with Department Heads;
  • Thanked Mr. Maynard for being very helpful with this process;
  • Dealing with issues re The Pavilion after Storm Sandy;  Claims process will be delayed; $2K deductible on contents; $2K deductible on the building;
  • Working with Chief Spera on FEMA submissions;
  • Have a general liability claim for non-flood issue at town beach;
Mr. Westerson inquired regarding replacing the fence at the Pavilion due to the liability; it was noted that there are Jersey Barriers there;
  • Annual meeting with CIRMA;  useful information was provided for WC Claims; very helpful with training as well;
  • Continue to look at ways to save money; looking at Connecticut Business Systems for printer management re ink, toner, maintenance; monitor copies/ supplies; will save $200/mo. on printers;
Mr. O’Brien inquired as to length of contract to which Ms. Carver replied 3 years; she noted that this is not locked in.  Mr. LaMay asked about the guaranteed response time.  Mr. Stevenson inquired regarding maintenance and supplies.  It was noted that the Board of Education is doing this as well.
  • Ms. Carver is working on spending time with WPCA and CRAD; noted that rates of sanitarians are not recovering their costs;
  • Cost of Employee Handbook is $4K; decided to do it in-house; intern helping with this;
  • Haven’t met re Fleet Financing due to Storm Sandy;
  • Ms. Carver completed her Government Accounting Class and is now certified;
  • Attended the CCM Annual Conference with Mr. Fortuna; learned good information including sharing equipment;
Mr. O’Brien inquired re contracts from departments.  He asked if these contacts were read.  The answer was no, unless there is an issue.  He asked if we were getting what we were paying for.  Mr. O’Nell suggested that the proposal/contract be attached to budget.  Mr. O’Brien suggested attaching a short synopsis of the contracts if any, for Ms. Carver to look at.  Mr. Fortuna noted that there will be more detail in the budget as they are now breaking out “contractual.”

Mr. Westerson noted that Deep River and Chester have been sharing equipment forever.  

Mr. LaMay thanked Ms. Carver.

Treasurer’s Report:     None

Selectman’s Report:
Mr. Fortuna reported on the following:
  • Mr. Fortuna noted that he reached out to Westbrook and Essex during Sandy;
  • CCM Conference: can buy street lights from CL&P; CCM has a contract with CL&P for street lights;
  • Mini Golf; Old Saybrook Rotary offered to donate money toward a hole;  BOS looking into alternate funds;
  • Mr. Fortuna noted that Chief Spera is a FEMA expert in verbiage and completing forms;
  • Procurement Card moving along;
  • Worse damage from Storm Sandy was Cornfield Point; bluffs and road endings are undercut;
  • Signed contract for police building; went to Planning and was approved;
  • Annual Town Meeting Monday, November 26th; Middle School Auditorium;
  • May table the School Building Committee until research is done on windows in the event there is a problem with toxic materials;
  • Continue to have meetings re upper North Main Street property with DOT re parking;
  • Bids on Ferry Dock opened today;
  • Dispatcher negotiations wrap up next week;
  • Insurance prescription card: Oct. 52 uses; 29 cards used;
Mr. O’Brien inquired about the lease for the current police building; tax abatement?
Mr. Fortuna noted that obviously the current landlord’s primary concern is the tenant moving out.  He will keep the board informed.

Mr. LaMay thanked Mr. Fortuna.

Liaison Reports:
Mr. O’Nell: Reported that he went to the Police Commission meeting.  The presentation by Sergeant Gardner was well done.  He commented that the meeting was not well attended by the public.

Mr. Stevenson: Spoke with Ms. Pendleton.  Ms. Pendleton noted that the Board of Ed has spent $30K in food preparation for Storm Sandy and water and electric has gone up due to Storm Sandy.  FEMA is covering this.  The school fields are being used excessively. They continue to have heating and cooling issues; Mr. Stevenson noted that congratulations were in order to Ms. Pendleton, BOE, and Chief Spera.  Mr. Westerson noted how impressed he was with the school and OSPD.

Mr. LaMay thanked everyone.
Comments from the Chair:  
Mr. LaMay noted that he was personally very appreciative of the Emergency Management Team, OSPD, School personnel, Public Works and Fire Department and felt that the town owed a great deal of gratitude to those who worked around the clock for many days.  
Mr. LaMay thanked everyone and asked for a motion to adjourn.
Please note that a recording of this meeting in its entirety is on disc.  You may request a copy from the Town Clerk.



Motion:  To adjourn at 8:48 p.m.

Moved: B. Thorpe                                Second: G. Westerson

Discussion: None

Approved:  6-0-0

Respectfully Submitted,
Gerri Lewis, Clerk