TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES
TOWN COUNCIL MONDAY, MAY 5, 2010
COUNCIL CHAMBERS TIME: 7:00 P.M.
1. Call Meeting to Order
Mayor Pelkey called the meeting to order at 7:05 p.m.
2. Roll Call
Members Present: Mayor John Pelkey
Deputy Mayor Edward Havens
Councillor Gary Bazzano
Councillor Janice Favreau
Councillor Kathryn Hale
Councillor Kevin McCann
Councillor Cary Prague (arrived at 7:15 p.m.)
Councillor Keith Yagaloff
Members Absent: Councillor Tom Delnicki
Also Present: Matthew Galligan, Town Manager
3. Public Participation
Mr. Tom Berstene, 95 Rimfield Drive came before the Town Council to state his concern with the budget process. He stated that he had been approached by a Council member who said that the Board of Education always play games and do not work with the Council. Mr. Berstene felt this to be an incorrect statement and feels the Town Council needs to present the Board of Education with goals and also have good communication.
Councillor Hale stated that she has been misquoted and never said that the Board of Education plays games. She said that in her experience having watched the process every year the Town Council gives the Board a number when the Town Council decides on the number. Councillor Hale then stated that she has always been a supporter of the educators and education in Town and the Town Council is working very hard on this budget.
4. Communications
None
5. Town Manager’s Report
Mr. Galligan informed the Town Council that he has handed out another sheet from Ovations. At the May 3, 2010 meeting Mr. Galligan did a presentation on HSA’s and a question came up because there was a reduction. There is a new formula which does not change the percentage, but the dollar amount may have changed slightly.
ITEM:
5. Town Manager’s Report (Continued)
Mr. Galligan explained further that the push for the HSA’s health plan coverage for teachers is because this coverage would result in a large savings in the budget.
Mayor Pelkey felt that this is something that should be reviewed further for the future.
6. Items for Discussion
- Board of Education Budget
Answering questions from the Council, Ms. Donna McKenty, Business Manager for the Board of Education explained that the reevaluation of the health insurance resulted in a reduction of $526,141 which is a 13.9% reduction. The Board of Education projection is based upon the current health insurance plan that is in place presently and not for the adoption of HSA coverage.
On the proposed positions of the Elementary Intervention Specialists, the budgeted amount of $269,201 does not include benefits. The benefits are not incorporated in with any new staff unless it is substantial. The Board of Education will be losing six Elementary Teachers in this budget. There were also no benefits included into the $60,000 for the position of Student Data Service Specialist.
Dr. Kozaczka explained that there are presently three part time Security Guards and this budget is not proposing to add positions, but to increase hours of the existing positions. The increase in hours would allow security coverage in the high school from approximately 7:00 a.m. to 4:00 p.m. or 5:00 p.m.
Councillor Yagaloff stated that the teacher’s salary does not include a 53rd week pay period because the schools get paid on a bi-weekly schedule.
Dr. Kozaczka informed the Council that the prefunds in this budget total $588,000.
Ms. McKenty explained that the total for the 3rd tier busing is up about $220,000. Dr. Kozaczka stated that there have not been any discussions with the teachers association to ensure that A/P classes with be available on the early schedule if the 3rd tier busing is provided. A/P classes are presently scheduled during the course of the day and the South Windsor Public School is required to provide transportation for regular courses.
Councillor Yagaloff questioned the Board of Education saying that since the Superintendent of Schools will be leaving in July has the Board of Education considered combining the Superintendent position with the Assistant Superintendent Personnel position and hiring a Senior Human Resource position. This would give the Board of Education a potential savings of approximately $125,000 to $130,000.
ITEM:
6. A. (Continued)
Chairperson Lisa Maneeley from the Board of Education explained that the two Assistant Superintendent positions do totally different jobs and those positions as well as the Business Manager is overseen by the Superintendent. The Superintendents last day is August 31, 2010 and the Board of Education will work hard to get some one in place.
Councillor Yagaloff stated that the Town is dealing with declining enrollment and economic pressures and combining positions could potentially save a lot of money.
Chairperson Maneeley stated that right now the Board of Education is going through and deciding how to handle hiring a new Superintendent and will keep that thought in mind.
Councillor Yagaloff then stated that he does not see any down side for employees to take the HSA benefits. It would be funded by the Town so the employees would not be paying for anything. Councillor Yagaloff questioned if anyone could see the disadvantage for any employee that would opt for the low deductible HSA versus the regular policy?
Dr. Kozaczka stated that he does not disagree with the premise that the HSA can save money for the Town and Board of Education. In contracts the Board of Education has the option for employees to take the HSA plan; however, Dr. Kozaczka said he does not think employees can be mandated to take an HSA plan.
Councillor Hale stated that the Town needs to find savings some where and this seems to be the best way that has been found to do so. Hope the teachers are willing to take technical concessions which will not hurt them financially. The Town Council is not asking anyone to give back real dollars, just asking them to switch coverage which will save jobs and programs.
Councillor Bazzano stated that one thing that the Town Council needs to remember is that the Town Council does not make decisions on the Board of Education’s budget. The Town Council gives the Board of Education a budget and then the Board of Education decides how the budget will be spent. Councillor Bazzano then stated that these savings are based on 100% participation by the participants.
Councillor McCann felt that the employees need to be more educated regarding the HSA’s from the Board of Educations Human Resource Department. Councillor McCann then stated that he feels students that pay to play sports should not have to do so. There are not charges to students who participate in the Choir or the Robotics team. There should be a harder look at parking fees that are charged to students because the Town is not required to provide parking spaces for students who drive to school and the Town already provides busing for students.
ITEM:
6. A. (Continued)
Answering questions from the Council, Dr. Kozaczka explained that Ovations has been to the school district on more than one occasion to explain to employees how an HSA plan operates. Students are charged at the High School for parking spaces on school property; however there are students that are parking on Ayers Road in the parking lot next to the baseball field. They park their to avoid parking fees.
Councillor McCann felt that is a policing issue for the Town. The Town needs to eliminate that or charge them for parking there. Mr. Galligan stated that he would like to see parking during school hours there eliminated. That would save the Town from maintaining it all winter and there would be no potential liability issues.
Answering further questions, Ms. McKenty explained that the amount for the pension contribution for next year is $91,750 which is being pre-funded substantially to meet the actuarial required contribution for 2010/2011. The retirement and separation figure of $547,000 is an estimate for retirement which is based upon a survey that the Personnel Department puts out to staff. Councillor McCann required that an estimate for what the actual number will be for the current year is forwarded to the Town Council.
Councillor McCann then questioned if the $200,000 budgeted to unemployment is a necessary amount? Ms. McKenty explained that there have been a lot of claims and the $200,000 will be almost fully expended.
Council members then discussed unemployment compensation and instances where South Windsor Board of Education would be responsible to pay.
Dr. Kozaczka explained to Council members that the Security positions that are proposed to receive additional hours will receive benefits due to the additional hours. The three employees that are on board were selected because of their qualifications.
Councillor Yagaloff said he would not support the proposed $804,000 increase to the Board of Education budget. Dr. Kozaczka stated that assuming employees are willing to go to an HSA plan, the soonest the plan could be implemented would be January 1, 2011 so that number would have to be cut in half. The $804,000 was a premise of a full year savings.
ITEM:
6. A. (Continued)
Ms. McKenty said she received an email from Ovations which stated that Anthem would allow employees to enter the HSA plan on 7/1, however it is not advisable allowing this because if an employee joins the plan on 7/1 they will be responsible for the whole deductible from 7/1 to 12/31 and then the deductible would refresh on 1/1. Anthem also recommends submitting the paperwork at least 60 days in advance before joining the HSA. So given these concerns and the necessity for employees to educate themselves with this plan it would not be in the best interest of the Board of Education to join this plan until January.
Council members discussed in length the HSA benefits and when it would be most prudent to sign employees up if the opportunity arises. The Council also discussed the transportation budget. Ms. McKenty stated that the Board of Education has created permanent savings through efficiencies and the purchasing of buses has been eliminated. This would reduce the overall transportation budget by $460,091.
7. Executive Session
At 8:46 p.m. Mayor Pelkey made a motion to go into Executive Session to discuss documents containing financial information provided in confidence and exempt from disclosure pursuant to C.G.S. § 1-200(6) and 1-210 (b)(5)(B) regarding The Connecticut Studios project. Deputy Mayor Havens second the motion; and it was approved, unanimously.
The following individuals went into Executive Session: Mayor Pelkey, Deputy Mayor Havens, Councillor Favreau, Councillor Hale, Councillor Yagaloff, Councillor Bazzano, Councillor Prague, Councillor McCann and Town Manager Matthew Galligan.
8. Adjournment
At 9:15 p.m. the Executive Session and Work Session adjourned.
Respectfully submitted,
Deborah W. Reid
Clerk of the Council
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