Town Council - Ways & Means Committee

Braintree Town Council MEMBERS Joseph Reynolds, Chairman Committee of Ways & Means Julia Flaherty, Vice-Chairwoman One JFK Memorial Drive Elizabeth Maglio, Member Braintree, Massachusetts 02184 MINUTES Wednesday, November 9, 2022 A meeting of the Committee of Ways & Means was held Remote via Zoom, on Wednesday, November 9, 2022 at 7:00p.m. Councilor Reynolds was in the Chair. Clerk of the Council, Susan Cimino conducted the roll call. Present: Joseph Reynolds, Chairman Julia Flaherty, Vice-Chairwoman Elizabeth Maglio, Member Also Present: Nicole Taub, Chief of Staff/Town Solicitor Ed Spellman, Finance Director Dennis Gallagher, Retirement Director James Arsenault, DPW Director Lou Dutton, Waterworks Superintendent November 9, 2022 Ways & Means Committee 1 of 7 Approval of Minutes • April 26, 2022 MOTION: to approve the Minutes of April 26, 2022. Motion: by Councilor Flaherty to approve Minutes of April 26, 2022 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) • May 3, 2022 MOTION: to approve the Minutes of May 3, 2022. Motion: by Councilor Flaherty to approve Minutes of May 3, 2022 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) • May 4, 2022 MOTION: to approve the Minutes of May 4, 2022. Motion: by Councilor Flaherty to approve Minutes of May 4, 2022 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) Old Business • 052 22 Council President: Town Auditor Contract Discussion or take up any action relative thereto Chairman Reynolds stated in 2023 the contract for CLA expires (April 23, 2023). As a committee we are to discuss what we would like to do. We have the option to go out for an RFP for a new Town Auditor or renew the current Town Auditor and ask for a new contract proposal from CLA. It is helpful to discuss the course of action we would like to recommend to the full Council. Councilor Flaherty stated at some point we may want to go out for an RFP, I do not believe this is the time. I feel we should ask our current Town Auditor, CLA for a proposed new contract and enter into negotiations with them. Councilor Maglio stated I agree with the previous speaker. CLA is quite helpful. I feel we can skip that long RFP process. Chairman Reynolds stated I agree. CLA has a tremendous knowledge of Braintree and ARPA which is a valuable level of expertise that has served our community well. Chairman Reynolds asked for a Motion. Councilor Flaherty stated a Motion to request our current Town Auditor, CLA to submit a new proposed contract. Motion: by Councilor Flaherty Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) November 9, 2022 Ways & Means Committee 2 of 7 New Business • 22 057 Braintree Retirement Board: Increase in the Retirement benefit Cost of Living (COLA) base or take up any action relative thereto Pursuant to M. G. L. Ch 32 sec 103 (j), the Braintree Retirement Board is requesting an increase in the Retirement Benefit Cost of Living (COLA) Base from the current $12,000.00 base which was set in 1997 to $14,000.00. We request that the increase be staggered over two fiscal years. First increasing the base to $13,000.00 then to $14,000.00 respectfully. With our 1/1/2022 actuarial study having been completed, we feel the overall health and performance of our pension portfolio supports granting this increase. During this period our funded status has increased from 67.7% to 71.9%. Our plan assets have also increased from $225M in 2019 to $286M as of December 31, 2021. Although our loss experience did increase by $5.2M, this was mainly a result of new entrants into our system with past service and salary increases higher than expected. We did see our Unfunded Actuarial Liability (UAL) decrease from $104.7M to $102.5M. Other highlights to consider: • Of the 104 Retirement Systems in Massachusetts 12 systems remain at the $12,000.00 COLA base. • 8 of the last 10 years our investment returns have seen gains averaging 10% with 6 of the last 10 years averaging over 15%. • Over the last 10 years our portfolio has grown from $149M in assets to $286M in assets as of December 31, 2021. Our current funding schedule that has been adopted by the Retirement Board calls for a 7.38% increase in the appropriation over the next 10 years with the Unfunded Actuarial Liability (UAL) being paid off in FY2033. Dennis Gallagher stated he asks for this request on behalf of the Retirement Board to increase the Retirement COLA for our retirees. This has been a long time coming. The board has been approving a 3% increase on the $12,000 base. Which is about $360 a year for our retirees. That base has been in place since 1997 going from $9,000 to $12,000 that year. Over the past 10 years many systems have gotten off the $12,000 base increasing their base up to $18,000. Braintree is one of the few systems that is still at the $12,000 base. Chairman Reynolds stated one of my concerns was the economic situation we find ourselves in. This is cyclical in nature as trends have shown through the years. Does inflation have a play here. November 9, 2022 Ways & Means Committee 3 of 7 Director Gallagher stated no. Our portfolio is based mostly on market trends. The other factor is the membership of our system. When you retire and when you die. Also how many employees are actively contributing. Councilor Flaherty stated this is long overdue. The request is to space this over 2 years rather than all at once. Dennis Gallagher stated the memo dated November 8, 2022 gives the different scenarios. The Board voted to do the staggered one due to economic uncertainty. Councilor Maglio asked is there not a reason to just go to $14,000 and not stagger it. Dennis Gallagher stated in the spirit of cooperation with the mayor and his administration. The staggered terms was for the uncertainty of Braintree’s financial picture so we wanted to do it over 2 years and the agreement was to stagger it. There are some municipalities and systems that do jump amounts. The recommendation is to bring this forward to the full Council for further discussion on whether to approve this as staggered or discuss doing this all in one year. Chairman Reynolds asked for a Motion to be read. Councilor Flaherty read the following Motion for favorable recommendation to the full Council Order 22 057: MOTION: That, pursuant to MGL Ch 32, section 103(j), the Retirement Benefit Cost of Living Base be increased from $12,000 to $13,000 in Fiscal Year 24 and $14,000 in Fiscal Year 25. Motion: by Councilor Flaherty to approve Order 22 057 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) • 22 062 Mayor: Authorization to Accept and Appropriate Opioid Settlement Funds or take up any action relative thereto Nicole Taub explained as you may recall, in May of 2018, the Town of Braintree initiated the process to take legal action against opioid manufacturers and distributors to hold them accountable for their alleged role in driving the opioid epidemic. The lawsuit, filed in the United States District Court for the District of Massachusetts, includes allegations that the defendants falsely trivialized, mischaracterized and failed to disclose the known, serious risks of addiction while promoting the use of opioids in increasingly higher doses without disclosing their greater risks. Earlier this year, the Attorney General announced that municipalities that sign onto statewide opioid settlements with opioid distributors AmerisourceBergen, Cardinal Health and McKesson, opioid-maker Johnson & Johnson, and future statewide opioid settlements, would receive 40% of the abatement funds the state recovers, up from the 15% default allocation provided by the settlements. Thereafter, the November 9, 2022 Ways & Means Committee 4 of 7 settlement administrator for the Johnson & Johnson settlement established a portal for management of funds, including disbursement of payments to involved municipalities. According to the formula negotiated by the parties, the Town is eligible to receive a total of $197,087.21 as a result of the Johnson & Johnson settlement. To date, we have received the first two payments, totaling $66,764.21, with the balance to be paid in a lump sum anticipated later this year. Additional funding is anticipated as settlements with other distributors and manufacturers are finalized. Municipal abatement funds are subject to strict spending requirements and must be used to address the opioid crisis in a manner that reflects the input of residents of the municipalities, of people who have personal experience with the opioid crisis, of experts in treatment and prevention, and of staff and organizations that are carrying out the abatement work; addresses disparities in existing services and outcomes and improves equity and the health of individuals and communities disadvantaged by race, wealth, and stigma; addresses mental health conditions, substance use disorders, and other behavior health needs that occur together with opioid use disorder; and encourages innovation, fills gaps and fixes shortcomings of existing approaches; includes evidence-based, evidence-informed, and promising programs; and takes advantage of the flexibility that is allowed for these funds. To that end, under the direction of Lyn Frano, I have established an Opioid Settlement Task Force comprised of community stakeholders that will assist with the identification and implementation of appropriate strategies for expenditures from the funds received as a result of the settlements. Chairman Reynolds asked for a Motion to be read. Councilor Flaherty read the following Motion for favorable recommendation to the full Council Order 22 062: MOTION: That the Town vote to appropriate $197,087.21 from the Massachusetts State­ Subdivision for Statewide Opioid Settlement Funds to be expended in accordance with the policies set forth therein or take up any action relative thereto. Motion: by Councilor Flaherty to approve Order 22 062 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) November 9, 2022 Ways & Means Committee 5 of 7 • 22 063 Mayor: Bond Authorization for MWRA Inflow and Infiltration (I+I) Funds or take up any action relative thereto As you may recall, in February 2019, as part of the FY19 Enterprise Fund Capital Plan, the Town Council authorized borrowing to pay the costs of wastewater system rehabilitation projects, phases 11-13. This funding is necessary to perform inflow and infiltration repairs town wide to reduce inflow into the sewer system and, as a result, reducing the flow charged to the Town by the MWRA. Earlier this fall, based on recommendations from the MWRA Advisory Board, the MWRA Board of Directors approved an additional $100 million in community grants and interest free loans under the I & I Local Financial Assistance Program for FY23-30. These recommendations include funds to be distributed as 75% grants and 25% interest free loans, with loan repayment over 10 years, consistent with prior phase funding. The addition of this funding has increased the program budget to a total of $860.75 million, with funding distribution to continue through FY30. An overview of the program, including program guidelines and the financial assistance application and table of community funds allocated and distributed can be found on line at www.mwra.com/comsupport/communitysupportmain.html. To date, the Town has been allocated $14,419,000 through Phases 1-13 of the Program, with $10,379,000 distributed. In order to complete our application for the additional Phase 14 funding, the loan portion of the award requires a vote of the Town Council. All members agreed this to be very important for the town. Chairman Reynolds asked for a Motion to be read. Councilor Flaherty read the following Motion for favorable recommendation to the full Council Order 22 063: MOTION: That the Town of Braintree appropriates the sum of Two Million Thirty Thousand Dollars ($2,030,000) to pay costs of wastewater rehabilitation projects phase 14 and for the payment of all other costs incidental and related thereto and that to meet this appropriation, the Treasurer, with the approval of the Mayor, is authorized to borrow said amount under and pursuant to Chapter 44, Section 7(1) of the General Laws, or pursuant to any other enabling authority, and to issue bonds or notes of the Town therefor. Motion: by Councilor Flaherty to approve Order 22 063 Second: by Councilor Maglio Roll Call Vote: For (3–Flaherty, Maglio, Reynolds), Against (0), Absent (0), Abstain (0) November 9, 2022 Ways & Means Committee 6 of 7 It was unanimously voted to adjourn the meeting at 8:03p.m. Respectfully submitted, Susan M. Cimino Clerk of the Council Documents provided for Meeting • Minutes of April 26, 2022 • Minutes of May 3, 2022 • Minutes of May 4, 2022 • 052 22 Council President: Town Auditor Contract Discussion or take up any action relative thereto • 22 057 Braintree Retirement Board: Increase in the Retirement benefit Cost of Living (COLA) base or take up any action relative thereto • 22 062 Mayor: Authorization to Accept and Appropriate Opioid Settlement Funds or take up any action relative thereto • 22 063 Mayor: Bond Authorization for MWRA Inflow and Infiltration (I+I) Funds or take up any action relative thereto November 9, 2022 Ways & Means Committee 7 of 7