1979/03/19MINUTES
EXECUTIVE BOARD
March 19, 1979
The meeting was called to order by Mayor Orlando ?. Ragazzi at 7:00 p.m.
Deputy Mayor Robert A. Argazzi was present. Deputy Mayor Joseph P. Lanzoni
was absent.
Also present were: Salary Study Committee Members Clifford A. Landry, Jr.,
Morgan Seelye; Board of Finance Members Thomas W. Ward, Jr., Robert Dacey,
Blanche Delaney, Joseph Bernardi; Dominic Scerra, Treasurer for the Town of
Berlin; Judith Lindgren, Secretary to the Board of Finance; John Heenehan
representing the Courant; Edward E. Fishman and Sally Barlow from Pension
Investment Corporation.
Personell Study Committee. Mr. Landry reported that the latest information
on the grant is that it will probably be forthcoming in the next three
weeks. While awaiting the grant, the Committee has been discussing
compensating time and overtime. They have also reviewed the Salary Study
that'was completed last year. Mr. Landry reported that the Committee
is unable to address themselves to specific issues until they are in
receipt of the final report from CCM. Mr. Argazzi asked if the Committee
anticipates having a final report completed for inclusion in this year's
budget. Mr. Landry answered that for the current budget process, no, but
hopefully a set aside with this budget.
Mr. Clinton reported that the study will take approximately six weeks to
complete after the receipt of the grant. The information will not be
ready for the Annual Town Meeting in May. He reported that there is a
set aside by the Board of Finance for both the completion of the Union
negotiations and salaries. Mr. Argazzi stated that this is going to make
the whole budget difficult and we should go with the steps we have now
and wait until next year (for implementation). Mr. Clinton stated that
there is really nothing this year. The salary steps have been shot full
of holes. There are people in between steps and there has been discussion
that elected officials should not be included. Mr. Clinton stated that he
feels it would be better to go with a set aside and come in with something
more realistic for addressing the problems for next year. He stated that
he feels the results of the salary study can be implemented on the first
of July, 1979. He stated that if the numbers are too large, they will
have to be phased in over a two year period.
Mr. Landry stated that this problem is not a new problem. Currently
the town is addressing itself to two union negotiations. The contracts
are retroactive to July 1. He feels whether the dollars are small or
large it would be best to bring the salary schedule into focus. Mr.
Argazzi stated that he feels it would be a difficult job for the Board
of Finance to determine what to set aside. Mr. Clinton reported that
a lump sum has already been set aside and that he would be happy to discuss
this with Mr. Argazzi at a later time. Mr. Argazzi stated that in view of
the time schedule, due to no one's fault because of the grant, it would
make since to shoot for the next budget instead of this current budget.
~ Mr. Landry stated that the Committee will work in a timely fashion and
submit the figures as soon as they are completed, before July 1, 1979.
What the Executive Board does with the figures, they will have to decide.
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Mr. Heenehan asked if all the salaries in the budget will be blank at
the time of the Annual Town Meeting. Mr. Clinton replied yes, with
the exception of the Police. He commented that there were similar
circumstances with the Board of Education budget in the past.
Mr. Seelye asked about the setting up of a Code of Conduct for Elected
Officials. Mr. Landry stated that it would not be part of the overall
plan of the Committee. Mr. Seelye stated that it is the feeling of the
Committee that the Elected Officials should set up their own policies.
Mr. Argazzi stated that he feels the Finance Board and the Executive
Board should work out the policies for Elected Officials. Mayor Ragazzi
stated that it is up to the Executive Board to set the policies, but
that the Committee can come in with a recemmendation if they want to.
The Salary Study Committee then left the meeting.
On motion by Mr. Argazzi, seconded by Mayor Ragazzi, it was voted to
approve the minutes of March 12, 1979 as presented. MOTION CARRIED.
On motion by Mr. Argazzi, seconded by Mayor Ragazzi, it was voted to
approve the Budget Request of Chief Scalora in the amount of $500.00
to Account #1806, Education. MOTION CARRIED.
Mayor Ragazzi presented the schedule for Monday evening, April 2, 1979.
Scheduled are: Executive Board Meeting, 7:00 p.m. in the Mayor's
Office; Public Hearing on Federal Revenue Sharing Fund, 7:50 p.m. in the
Public Meeting Room; Town Meeting, 8:00 p.m. in the Public Meeting Room.
Mayor Ragazzi presented a letter from the Board of Finance, requesting
that the following resolution be presented at the Annual Town Meeting.:
To authorize the Executive Board to call a Town Meeting to appropriate a
sum not to exceed $180,000.00 through the issuance of bonds and notes for
the reconstruction of Norton Road. Mayor Ragazzi stated that before the
Executive Board goes ahead with this expenditure, along with the monies
for the Pasco Hill Bridge, he would like to put this off until the Tax
Rate is known for the 1979/1980 Fiscal Year and how this expenditure will
affect the Tax Rate. Mr. Argazzi was in agreement.
On motion by Mayor Ragazzi, seconded by Mr. Argazzi, it was voted to
appoint Judith M. Lindgren to the position of Senior Clerk in the Building
Department effective March 26, 1979. Mrs. Lindgren is replacing Florence
Murphy who is retiring in April. MOTION CA'RRIED.
Mayor Ragazzi reported that Mr. Bolles of the Housing Authority has in-
dicated that he is willing to continue serving, but feels a five year
term would be too long. On motion by Mr. Argazzi, seconded by Mayor
Ragazzi, it was voted to rescind the resignation of Mr. Bolles and to
reappoint him to a five year term on the Housing Authority. Term of
office to expire 5/51/84. MOTION CARRIED. Mayor Ragazzi is to write to
Mr. Bolles, explaining that' the Executive Board will fully understand if
he does not wish to complete this term.
C Mr. Fishman and Ms. Barlow, along with the Board of Finance members, · entered the meeting.
DISCUSSION - Mr. Clinton explained that the Town contracted with Mr. Fishman
to do a study on the Town's Pension Plan.
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Mr. Fishman presented a report on the Town of Berlin Pension Plan dated
March 1979 and prepared by Pension Investment Corporation. He requested
that everyone present read the report and then ask any questions they
might have.
Mr. Ward asked Mr. Fishman if they are recommending that the Town continue
the Pension Plan with Connecticut General. Mr. Fishman replied yes, that
the town could not get out of CG with all of its money. 5% of the total
portfolio could be lost along with the $400,000 reserve fund. Mr. Fishman
reported that he has written CG and asked if they would change the
contract, which they agreed to do. There would be no commission involved.
~r. Fishman stated that with a change of contract, the pension could
earn very close to 9% of its money. He stated that this Pension Plan has
to be negotiated with Connecticut General. They are in the business to
make money and you are in the business to hold down expenses. Mr. Dacey
asked where the town would draw its expertise from in negotiations. Mr.
Fishman replied that there are two or three actuarial firms, including
his own, that could handle this. He stated that the administration of the
Pension Plan should be someone other than the holder of the Pension Plan
so that you are certain that the best interest of the town would be looked
after.
Mr. Dacey asked Mr. Fishman if h~s firm was hired, how often they would
audit the plan and how much the Services would cost. Mr. Fishman replied
that the cost of administrating the plan should be no more than is presently
being charged by CG. He feels the charge would be approximately $8,000
per year. He also reported that[if the contract is revised to the contract
type that he is recommending, th~
The recommended contract would f:
would show the dollars spent on ~
spent. Mr. Ward asked how this ~
Mr. Fishman replied that those mt
a plan, CG would get some of the
have the option of investing the
earn a higher rate of return.
Mr. Scerra asked if the charges
over the investment of new funds
would reduce their fee to the co~
Mr. Fishman stated that his repo~
save a great deal of money, but
He stated that his firm would be
As far as administration is concE
counciling, letting those people
are getting it. The town would
auditing would be relatively easy.
· ee up the dollars. The fund statement
~dministration and how the monies were
rould affect the people already retired.
~nies would also be freed up. Under such
new monies to invest, and the town would
balance of the monies as they see fit,to
~ould be reduced by CG if the town takes
Mr. Fishman replied that hopefully they
Ltract charge of between $2,000 - $5,000..
't is not suggesting that the town will
:hat it will get a better accounting.
looking for the interest of the town.
Irned, there would be pre-retirement
know what they are getting and why they
Lave more input for the same cost.
Mr. Dacey asked if Mr. Fishman's firm would supply the employees with a
booklet to explain the benefits and something to keep them updated as to
what the current figures are. M~. Fishman stated that this could be
provided. The answers could be ~ade available on a once a year basis.
Discussion was held on the possibility of setting up a contract which
would guarantee the employees a ¢:ertain percentage of their annual salary
between the payment of Social Se¢:urity and Pension. This could be accomplished
by "grandfathering", where the c~.rrent employees would maintain the present
set up and new employees coming nto the plan after a set date would be
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3/19/79
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subject to a provision that would combine both benefits. This would
have to be negotiated with the unions. Mr. Fishman suggested that this
could be done by offering a little more for current employees. Mr.
Argazzi asked what the chances of success would be for having a grand-
father clause with anyone coming under the current plan. Mr. Fishman
stated that more and more municipalities are doing this and he feels
it could be negotiated. Mr. Ward stated that the contract would be signed
by current employees and feels they would not be worried about the future
employees. Mr. Ward asked if Mr. Fishman could advise the Mayor for
negotiating this. Mr. Fishman replied that his firm could help advise.
Mr. Dacey suggested that another plan could be incorporated where the
pension payment would be reduced by 50% of the employees Social Security
income. Mr. Ward asked how the Mayor would feel about trying to work out
a new pension plan. Mayor Ragazzi replied that he would like to consider
it and feels the grandfather clause could be a good one. He feels no
one will be hurt by it. He reported that there have been many problems
with the service of CG, and feels an outside service could be beneficial.
The salary of one position internally could be saved.
Mr. Fishman explained that by offering current employees a little more
in their Pension Plan, the cost of the plan would be slightly higher over
the next few years, but the percentage would then drop off as new employees
were hired. Mr. Ward replied that if it is going to cost the town a little
more now and the cost comes down in five years, the town might be better
off.
Mr. Ward stated that he would like to see something negotiated into the
present union contract. Mayor Ragazzi stated that it might be to late
for this contract as they are well into negotiations. Mr. Clinton stated
that he would like to have a study done to give the employees two or three
offers. Mayor Ragazzi stated that he.feels the town is not ready to
propose something like this at this time with nothing to back it up.
Mr. Fishman reported that when he takes over a plan, it takes approxi-
mately a year to complete the package.
Mr. Fishman and Ms. Barlow left the meeting at this time, as did the
Board of Finance members.
DISCUSSION
Mr. Argazzi asked the Mayor why the Board of Education hired an attorney.
Mayor Ragazzi stated that Mr. Vandrilla and Dr. Giondomenico requested a
charter change. Mayor Ragazzi could see no reason for a charter change
at this point. He stated that ,there is a right of petition, that even
in the legislature a bill can be repealed. The Town Meeting is the
legislative body of the town. He stated that he sees no reason for a
charter change at this time. Mr. Argazzi asked where the Board of
Education got the monies to hire an attorney. Mayor Ragazzi replied that
he does not know what funds they used. He reported that Atty. Jackaway
was quite upset because they did not consult with him. Mr. Argazzi stated
that Atty. Jackaway rendered an opinion stating that ne town meeting was
proper (of March 15,1979). The Board of Education hired an attorney
to say this was wrong, and paid the attorney from their funds. Mayor
Ragazzi reported that he went over the matter with Attorney Jackaway
again and both are in agreement that no charter change is necessary at
this time. Mr. Argazzi stated that he is in agreement.
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There being no further business to come before the Executive
Othe meeting adjourned at 9:57 p.m.
Board,
Respectfully submitted,
Kathleen Bourgoin
Secretary