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Special Meeting of the Bloomfield Township Council

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					                                                                                    Bloomfield, New Jersey 07003
                                                                        Special Regular Township Council Meeting
                                                                                                 October 31, 2005

                               Eighteenth (Special) Regular Meeting of the Bloomfield Township Council.
                               The meeting commenced at 5:13 P.M.
                               “ Notice of time, date, location and agenda of this meeting, to the extent then
               known was provided at least forty eight (48) hours prior to the commencement of this
               meeting in the following manner pursuant to the provisions of Chapter 231 of the Law of
               1975 (The Open Public Meetings Act).
                               1. By posting such notice on the bulletin board in the Municipal Building, and
                               2. By mailing such notice to the offices of the Independent Press, Star Ledger,
               Herald News and Bloomfield Life.
                               At this time, Mayor McCarthy led the audience in the Pledge of Allegiance.
                               Roll call showed Councilmembers present: Janice Maly, Ray Tamborini, Patricia
               Ritchings, Bernard Hamilton, Patricia Spychala, and Mayor Raymond J. McCarthy.
               Peggy O’Boyle Dunigan absent.
                               In attendance at the commencement of the meeting were the following: Louise M.
               Palagano, Municipal Clerk/Township Administrator, Steve Coppola, Acting Township
               Engineer and Vincent Pirone, Township Attorney.
                               At this time, Mayor McCarthy opened the oral portion of the meeting to the
               public.
                               Mike Ruggiero, Bloomfield PBA President-Local 32, stated that the provisions
               that were discussed with Mayor McCarthy last week prior to the Regular Council
               Meeting, he realizes that they did not discuss a couple of items that the PBA attorney
               found important to include in the agreement. He stated that the PBA would like to
               discuss these items a little further with Mayor McCarthy because it is his understanding
               that there is a problem being that they were not discussed. He stated that it would be a
               little further protection that the PBA feels they need. He stated that being that the Mayor
               and Council, and their brokers, feel that this plan is going to be just as good, or better,
               than the PBA does not see any problem with the amendments that were put forth to the
               Mayor and Council. He stated that if the PBA decides to go with the extra three
               amendments, which he knows the Mayor and Council and Township Administrator have
               a problem with, number two and number six. He stated that he also understands that
               there is a problem with number three, but number three covers what was already

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discussed at the meeting that was held in the afternoon with the Mayor and Council, the
unions, the Township Administrator, the Personnel Director, the PBA’s representatives
from the State Health Benefits Plan, Division of Pensions, and the Mayor and Council’s
representatives from the brokerage firm they had come in. He stated that the PBA knows
that all of these items are a matter of public record, that were discussed at the meeting,
and the Mayor and Council put on the record at the meeting at night for protection. He
then asked Mayor McCarthy if he is correct in saying that the PBA asked for protection.
       Mayor McCarthy said yes, that is correct.
       Mr. Ruggiero said that the PBA would like very shortly to have…the way our
attorney wrote the provisions up, incorporated, because the PBA feels that more or less,
that was what was discussed and agreed to.
       Mayor McCarthy stated that according to our labor attorney, who could not be
here this evening, the one thing as far as number three is concerned, his interpretation of
it, and he will defer back to the Town’s legal counsel, is that Mr. Ruggiero is asking the
town to pay both Horizon and State Health Benefits.
       Mr. Ruggiero said that is incorrect. He said the PBA would not ask the Town to
do that because it does not make sense. He stated that whatever we could do to correct
that, so it is not interpreted that way, as the PBA wants to look at this strongly, and get
the language. He stated that of course as the Mayor and Council knows, the PBA does
not agree with this change, but they are not going to challenge it at this point because the
Mayor and Council promised to give the PBA protection that they asked for, and as long
as they receive this protection, and it is carried forth, and the benefits are the same, then
there will be no reason to take it any further.
       Mayor McCarthy stated that this is exactly what we are doing. He stated that he
knows that Mr. Ruggiero has this side agreement which he had written up, and what we
are going to do is have Mr. Pirone meet with Mr. Ruggiero to correct those languages so
that it is exactly the way both Mr. Ruggiero, and the Mayor and Council want it to be.
He stated that he understands that Mr. Ruggiero did it in a rush, and then the Mayor and
Council received it, and only had one weekend to review it. He stated that there are some
things that are in there that the Mayor and Council may not agree to like number two, for
instance, so we will hammer this agreement out, so that…

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         At this time, Mr. Ruggiero interrupted and informed Mayor McCarthy that his
time was up, and asked if Mayor McCarthy could tell him how soon.
         Mr. Pirone answered, by the end of the week.
         Mr. Ruggiero stated that he will not be available because he will be on vacation.
         Mr. Pirone stated that the Council would like to come up with some kind of
arrangement whereby the PBA is comfortable, and the Town would take advantage of the
savings, so next week, at Mr. Ruggiero’s convenience…
         Mr. Ruggiero asked if they could also get together with the F.M.B.A. and the
P.B.A.
         Mr. Pirone asked Mr. Ruggiero to contact him on Monday, and they will set up a
convenient time for everyone. He stated that the spirit of the Council is to come up with
something that is compatible with everyone.
         Mr. Ruggierio thanked Mr. Pirone and the Mayor and Council.
         Gennaro Ilaria, President Bloomfield F.M.B.A.-Local 19, stated that he would
like to add one thing to what Mr. Ruggiero stated and that is that he wants the Mayor and
Council to agree on what the FMBA and the PBA have presented, rather than the FMBA
and the PBA agreeing on what the Mayor and Council has presented to them today, and
then hammer, that out.
         Mayor McCarthy said that is what we agreed to.
         Mr. Ilaria stated that today the FMBA received one page of the agreement, but it
was not the entire agreement.
         Ms. Palagano stated that the FMBA did not receive anything that was
attorney/client privilege, Mr. Ilaria, you were given…
         Mr. Ilaria said that he knows that, but that one resolution…
         Mr. Pirone stated that it was his attempt, and maybe it was a feeble attempt, to
incorporate those four items that were on Mr. Ilaria’s list. He stated that he and the
governing body met privately, and the Mayor and Council pointed out to him that he left
out a few items, so what we are going to do in the resolution is read those “Whereas”
clauses that incorporate the four items that were on Mr. Ilaria’s list. He stated that this
was more his fault than it was the Council’s.



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       Mr. Ilaria stated that so basically the Council is agreeing to what the FMBA gave
them, and we were going to hammer that out, is that correct?
       Mr. Pirone said yes.
       Mr. Ilaria said that is fine, thank you.
       John Sierchio, Bloomfield PBA, stated that he has one statement regarding the
Mayor and Council not agreeing with number two. He said that he thinks we have a
miscommunication as to what number two reads, and he spoke with the Personnel
Director today regarding the matter. He stated that the Mayor and Council have to
understand how the police feel, having families, the PBA does not want another smooth
talking broker from Oxford, or Aetna, coming in next year, saying that they could beat
Horizon’s rate, and then we will be doing the same thing next year. He stated that the
PBA is saying that they want a little stability with their health benefits. He stated that the
PBA is not trying to lock the Town into this company for five years. He said that he
spoke to the Personnel Director today, he explained to him what the PBA means, but he
does not know how the Mayor and Council took this clause, but that is what the PBA
means. He stated that the PBA wants to stay with Horizon.
       Mayor McCarthy stated that he understands what Mr. Sierchio is saying, and this
is a conversation that will transpire with the Council, so that we will…
       Mr. Pirone interjected and stated that he just read it also, and when he saw that the
PBA is looking for five years, it looks like the PBA was negotiating next year’s contract.
       At this time, Ms. Palagano stated that the way that she read it was that the PBA
wants to stay with Horizon for five years, but if two or three years from now, the costs
are exorbitant, and the Town wants to go back to the State Health Benefits Plan, the
Town would be stuck with Horizon.
       Mr. Sierchio stated that the State Health Benefits Plan is basically Horizon.
       Ms. Palagano stated that it is, and it is not, because the PBA would have the Town
locked in dealing directly with Horizon.
       Mr. Sierchio said that this was the miscommunication that we had.
       Mayor McCarthy said that this is what we all feared as a Council.
       Ms. Palagano said that the Town wants to provide the proper benefits. She stated
that the Town will stay with Horizon as long as we can, and as long as it works out, but

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unfortunately in two or three years. She then stated that maybe the Town needs to put
them both in, Horizon and Aetna, and say either/or, rather than just the one.
       Mr. Sierchio said that the PBA would love that, so if Horizon does not work out,
the Town could go back to NJ State Health Benefits.
       Ms. Palagano stated that this is one of the points that the Mayor and Council
could iron out.
       Lieutenant Kevin Perucki, Bloomfield Fire Department- Local 219, stated that
this has become a fast moving thing, because we are all working on deadlines. He stated
that he does not want the Council to feel in any way that the FMBA is trying to get
anything by anyone, or be slick, and we are hoping that this is not going to happen to
them. He stated that the Mayor and Council had asked the FMBA for a reply by
Monday, and they made sure the Mayor and Council had the reply for the weekend, so
they could review it. He stated that the FMBA wants to work this out, because he is also
a taxpayer in Bloomfield, and he would like to see the Township of Bloomfield save the
money. He stated that the FMBA has no problem sitting down with their attorney, and
discussing the matter with the Mayor and Council and Mr. Pirone, to iron this out.
       Mayor McCarthy stated that it is all about getting together and saving the Town
$600,000, and the Mayor and Council saying that they are not going to short change
anyone on the benefits.
       Mr. Perucki stated that if something should happen, it is important that their
families are protected, and that is all they are looking for, thank you.
       Councilwoman Spychala moved and Councilwoman Maly seconded the adoption
of the following resolution:
                      STATE OF NEW JERSEY
                 DEPARTMENT OF THE TREASURY
               DIVISION OF PENSIONS AND BENEFITS
          NEW JERSEY STATE HEALTH BENEFITS PROGRAM
           PO BOX 299 TRENTON, NEW JERSEY 08625-0299

       A RESOLUTION to terminate participation under the New Jersey State Health
Program (which includes Prescription Drug and/or Dental Plan coverage).
BE IT RESOLVED



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                                                         Bloomfield, New Jersey 07003
                                             Special Regular Township Council Meeting
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     1. The Township of Bloomfield in the county of Essex New Jersey, hereby
     resolves to terminate its participation in the program (including Prescription Drug
     and/or Dental Plan) thereby canceling coverage provided by the New Jersey State
     Health Benefits Program (N.J.S.A. 52:14-17.25 et seq.) for all its active and
     retired employees.

     2. We shall notify all active employees of the date of their termination of
     coverage under the program.

     3. We understand that the Division of Pensions and Benefits will notify retired
     employees of the cancellation of their coverage.

     4. We understand that all COBRA participants will be notified by the Division of
     Pensions and Benefits and advised to contact our office concerning a possible
     alternative health, prescription drug, and dental insurance program.

     5. We understand that this resolution shall take effect the first month following a
     60-day period beginning with the receipt of the resolution by the State Health
     Benefits Commission.

           I hereby certify that the foregoing is a true and correct
                  Copy of a resolution duly adopted by the

                     TOWNSHIP OF BLOOMFIELD

                      On the 31st day of October, 2005


                  _________________________________
                               Signature

                 ________ ____ Mayor_______________
                             Official Title

                   _____ _____Municipal Plaza_______
                             Street Address

                      Bloomfield,       NJ 07003______
                        City           State Zip Code

                        973                680-4077_______
                       Area Code            Telephone #

PLEASE COMPLETE AND COMPLY WITH THE FOLLOWING:



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                                                          Bloomfield, New Jersey 07003
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A. Employer New Jersey State Health Benefits Program Identification Number.
                                        0887-00

B. Type of Funding method with the new contract.

      1. Conventionally insured         X

      2. Minimum premium

      3. Administrative Service Only (ASO)

      4. Other (please list)


C. New Health Carrier             Horizon Blue Cross Blue Shield

D. New Prescription Drug Carrier                 Continuing with Benecard Services In.

 E.   New Dental Plan Carrier                    Continuing with Delta Dental

 F.   Reason for termination of the State Program                        Cost

G. In accordance with N.J.S.A. 18AL16-21 and 40A:10-25, you must file a copy of your
   new contract with the State Health Benefits commission. Please submit a copy of the
   new contract with this completed resolution

       Roll call vote showed the following: (Ms.) Maly, Messrs. Tamborini,
(Ms.) Ritchings, Hamilton, (Ms.) Spychala, and McCarthy voting "aye".
(Ms.) Dunigan absent.
       Councilman Hamilton moved and Councilwoman Spychala seconded the
adoption of the following resolution:
                           RESOLUTION – AGREEMENT

       WHEREAS, the Township of Bloomfield, Essex County, State of New Jersey
has solicited informal quotations in conjunction with the proposed selection of a medical
insurance provider.
       WHEREAS, the Township of Bloomfield reviewed the proposals and the
guarantee of benefits remaining the same as under the State Health Benefits Program; and
       WHEREAS, the Township of Bloomfield reviewed the proposals; and


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       WHEREAS, the Township of Bloomfield believes that the best proposal
submitted is from Horizon Blue Cross Blue Shield of New Jersey; and
       WHEREAS, the parties desire to follow the rules and provisions as currently in
place under Chapter 48 of the New Jersey Administrative Code; and
       WHEREAS, the parties desire to keep the same aggregate coverage levels for
employees as available under the State Health Benefit Plan; and
       WHEREAS, the parties desire to follow the State Health Benefits Plan premium
sharing contribution rules for local employers in the State Health Benefits Plan; and
       WHEREAS, the parties agree that if the State Health Benefits Plan changes any
of its provisions for local employees, then the Township of Bloomfield shall have the
ability to make the same changes in its agreement with Horizon Blue Cross Blue Shield
of New Jersey without the consent of the local unions.
       NOW, THEREFORE, BE IT RESOLVED this 31st day of October by the
Township of Bloomfield, Essex County, State of New Jersey follows:
       1. The Township of Bloomfield selects Horizon Blue Cross Blue Shield of New
       Jersey as its medical insurance provider effective January 1, 2006 in accordance
       with a proposal submitted by Horizon Blue Cross Blue Shield of New Jersey
       dated October 31, 2005.

       2. The Township of Bloomfield authorizes and directs the Mayor of the Township
       of Bloomfield to execute any and all necessary documents in order to implement
       the intent of this resolution.

       3. The Township of Bloomfield recognizes Business and Governmental Insurance
       Agency and Fairview Insurance Agency as Broker of Record for the Horizon Blue
       Cross Blue Shield of New Jersey medical plan.

       4. The Township of Bloomfield agrees to follow the rules and provisions as
       currently in place under Chapter 48 of the New Jersey Administrative Code and to
       maintain the same aggregate coverage levels of the New Jersey State Health
       Benefits Plan for employees of the New Jersey Patrolmen’s Benevolent
       Association Local No. 32 and New Jersey State Firemen’s Mutual Benevolent
       Association, Inc., Local 219 and Local 19 and the Bloomfield Retired Police and
       Fire Employees

       Roll call vote showed the following: (Ms.) Maly, Messrs. Tamborini,
(Ms.) Ritchings, Hamilton, (Ms.) Spychala, and McCarthy voting "aye".
(Ms.) Dunigan absent.

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        At this time, Mayor McCarthy stated that the PBA and the FMBA does not have
this in front of them, but Ms. Palagano will have the new resolution typed up, and we will
get it to them tomorrow. Discussion briefly ensued.
        At this time, Mr. Howarth stated that the prescription plan and the dental plan still
serves retirees.
        There being no further business on motion of Councilman Hamilton and seconded
by Councilwoman Spychala the meeting adjourned at 5:40 PM.




                                               ____________________________________
                                                      Louise M. Palagano
                                                      Municipal Clerk




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