CLERMONT FIRE COMMISSIONERS AUGUST 18, 2008 The Clermont Fire Commissioners held their regular meeting on Monday, August 18, 2008 at 7:00 P.M. at the Town Hall. Those present were Chairman Ronald Rifenburgh, Commissioner Bauer, Commissioner Harned and Commissioner Larsen. Commissioner Seymour was absent. Also present were Assistant Chief Ronald Seymour, Treasurer Denise Fiore and Chief Laurence Saulpaugh, Anthony Hill and Donna Armestead from Penflex, Inc. Chairman Rifenburgh opened the meeting with a salute to the flag. Commissioner Harned asked representatives from Penflex to come to the meeting to explain the Length of Services Awards Program to the commissioners. Clermont started in the Length of Service Awards Plan in 2002. The election into the program was held October 15, 2002. NYS law requires that you hire an actuary to calculate the cost of the program. Actuarial evaluation is to tell us how much to contribute to the plan. The Administrative part of the plan is to administer to those who are eligible. ° Defined Benefit Program – actual benefit is defined at entitlement age of 65. Our plan is based on age, which is 65, and for each year of service - $20.00 per year up to 20 years of service. $400.00 per month is the maximum. Five years is the minimum and can keep earning after the age of 65 if active. If they reach 65 before reaching the five years of service credit, they become vested. The law allows the fire district to purchase five years of service back before start of program. Paying off prior service is part of the annual cost. It will decrease after prior year’s service is paid. The goal is to be 100% funded. The goal of annual evaluation is to keep cost level. Last year we budgeted $46,500. Next year budget $53,000 for LOSAP. Cost of amortization for prior years is $14,000. As long as there are still active members receiving benefits there will be a cost. When prior service is paid up, the cost will drop by $14,000.00. Total cost of program was $46,500. Fire District funds are held in trust. Commissioner Harned asked where the change occurred in the cost because they were told it would go down to $28,000 after the prior years were paid off. The roster hasn’t changed with the exception of a few deaths. Mr. Hill will have to check into this. The board has the option of looking for a different actuarial but the actuaries won’t change. There are eight members collecting right now. ° Death benefit is payable before age sixty-five when 50 points are earned, you earn $20.00 service award. If you die prior to age 65, beneficiary receives present day value. If you die after 65, guaranteed to be paid for 10 years. If they die before receiving 10 years credit the beneficiary has the option of receiving the monthly benefit for the remainder of the years or a lump sum payment. For 2009, we have to budget for administrative fees to Penflex, Inc. of about $3000.00. Roster list was reviewed and those that had no points in 2007 or are inactive were deleted from billing. We will receive a new invoice with these deletions taken into consideration. Once we are 100% funded our cost will be reduced. Once you have funded for those who are going to reach 65, your costs will drop significantly. Penflex, Inc. does not get a commission on our monies that we put in. RBC Dane Rauscher- Investment Management firm– Dave Rogers does the investing of our funds. Commissioner Harned will ask Mr. Rogers to come down and speak to us. Chairman Rifenburgh asked about ending the program. The response was that you hold an election and the public votes. The funds would be frozen and those eligible would be paid off. Mr. Hill believes you must be 100% funded in order to end the program. Also, the Office of the State Comptroller can take your plan over and distribute benefits, but you must be 100% funded. ° Point system – Changing the point system may require an election or be done by board resolution. There was discussion on changing points for holding office. Suggested the satisfactory completion of office to control points for officer who is holding office but not doing their job. In order to change the points earned per call, it could be argued that you are bringing it into compliance with comptroller’s opinion. Eliminating points for miscellaneous events and attending meetings would be a cost saving. The Commissioners thanked Mr. Hill and Ms. Armestead for attending. MOTION: A motion was made by Commissioner Larsen, seconded by Commissioner Bauer to accept the minutes of the July meeting. All in favor. So carried. Treasurers Report: July Invoices Paid $ 5907.96 Proposed August Invoices $ 2075.45 Paid August Invoices $ 2110.39 Money Market Checking Balance $151,242.56 Checking Balance $ 591.64 Money Market and Checking Total $151,834.20 Capital Reserve Fund $ 50,224.09 A motion was made by Commissioner Larsen, seconded by Commissioner Harned to approve the treasurer’s report. All in favor. So carried. COMMUNICATIONS: Letter was sent to Livingston Fire Commissioners requesting certificate of insurance. Received schedule for Elections and Budgets. Letter of intention to run for Commissioner must be submitted to the Secretary by November 19th. BUILDINGS AND GROUNDS: Commissioners Larsen and Seymour Commissioner Larsen got a price for a storage unit from Brads Barns and Gazebos – 12 x 24, fully treated, eight foot ceiling, insulated overhead door. $4,863.00 delivered to site. Chairman Rifenburgh checked with Alvarez and a 12 x 24 vinyl sided, seven-foot ceiling with two windows and overhead door would be $4689 delivered. The same design with duratech siding would be $4449. MOTION: A motion was made by Commissioner Harned, seconded by Commissioner Bauer to buy the building from Alvarez with the vinyl siding, two windows, overhead door for $4689 delivered. All in favor. So carried. MOTION: A motion was made by Commissioner Larsen, seconded by Commissioner Harned to use screen fill for base. All in favor. So carried. FIRE EQUIPMENT: Commissioners Seymour and Bauer No Report LOSAP: Commissioner Harned Presentation LAWS AND POLICIES Will discuss next month OLD BUSINESS ° Commissioner Larsen did not get in touch with Joan Buser regarding how taxes are figured for the fire district. He can also contact Suzette Booy at the County Real Property Tax office. ° The lost air bag, which was reported lost last month, has not been found yet. ° The copy machine approved at last month’s meeting has not been purchased. ° Inventory of equipment is being done. Assistant Chief Seymour reported that he loaned deck gun to City of Poughkeepsie. He also asked if anyone needs inch and three-quarter hose because he has some or can get some. NEW BUSINESS: Chairman Rifenburgh will make up a template for a purchase order system. He asked Commissioner Bauer to review his notes from the class that he took earlier this year on purchase orders. CHIEFS REPORT: ° There were no calls for the month of July. ° Hose and pump tests are in progress. ° MES – SCBA’s were tested. Batteries were changed. ° Germantown has spiral wraps that they were going to change out, so Chief will check with them. MOTION: A motion was made by Commissioner Harned, seconded by Commissioner Larsen to pay the invoices. All in favor. So carried. Chairman Rifenburgh asked if there was anything for the good of the district. With nothing further, a motion was made by Commissioner Harned to adjourn at 8:45 P.M., seconded by Commissioner Larsen. All in favor. So carried. Respectfully submitted, Mary Helen Shannon Fire District Secretary