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1998-07-13 SPECIAL TOWN BOARD MEETING JULY 13, 1998 7:00 P.M. BOARD MEMBERS PRESENT SUPERVISOR FRED CHAMPAGNE COUNCILMAN RICHARD MERRILL COUNCILMAN THEODORE TURNER COUNCILMAN DOUGLAS IRISH COUNCILMAN PLINEY TUCKER TOWN OFFICIALS Henry Hess, Controller GUESTS Mike Dier, Investment Advisor for Service Award Program Wendy West, Peneflex (assists the town administering program) Ed Holohan, Peneflex Richard Collin, Queensbury Central Vol. Fire Company Michael Nigro, resident Nick Nicholson, resident Dennis Brower, resident DISCUSSION - FIRE SERVICE AWARD PROGRAM Supervisor Champagne called meeting to order.... Councilman Tucker questioned Controller if he was happy with the program? Henry Hess, Controller noted, I haven't seen the financial score, the most recent but as far as the program itself goes, yes, I am. Supervisor Champagne gave background on the program which started in 1993 by referendum and passed by a sizable majority. At that time, there were some very restricted limitations on the investment options... the board in 1995 decided to open the gates on the investments.... first couple of years, by the time they paid off the bank and the investors plus Peneflex there wasn't an awful lot of money left, it was actually kind of holding it's own... our contribution of about four hundred dollars a year per man or woman really wasn't demonstrating any growth. GLENS FALLS NATIONAL Mr. Michael Dier submitted Investment Report dated July 13, 1998 and reviewed submittal with the board giving a detailed performance summary on the town's investment funds for the Volunteer Fire Service Award Program... (report on file in Town Clerk's Office) Mr. Ed Holohan explained the purpose of the program and how the program works. Councilman Merrill questioned the investment fee structure? Mr. Dier noted, it's less than one percent a year, one percent of the market value. The fee right now is seven tenths of one percent and that's on a schedule so that there's a break point at three hundred thousand so that as the portfolio grows the bank earns more money but it's at a much lower rate, I believe it's three tenths of one percent. When we get to a million dollars, then it goes down lower, I think it's two tenths of one percent. Councilman Irish questioned whether there's been a projection done of a point of where there's actually enough money that the town no longer has to contribute? Mr. Holohan noted, this is not that kind of a plan.... these are simply stated in pension plan vernacular account balance plan... if you're an active volunteer fire fighter, every year that you make the points, another four hundred dollars gets added to your account plus what ever share of the investment income the funder is allocated to your account. Councilman Irish questioned how the benefits are paid once the fireman retire? Mr. Holohan noted, they've been paid in a lump sum but down the road by Town Board Resolution, we can always add some other alternatives. Councilman Tucker questioned whether this affects the social security? Mr. Holohan noted, it does not affect social security but it is taxable income when they get their check, it's subject to Federal and State Income Tax. PENEFLEX Mr. Holohan introduced Peneflex giving brief description of their company and the service they provide... reviewed summary page with the board... referred to proposed change amending the amount from four hundred to four hundred and eighty dollars and that it would have to go to referendum for that change. Supervisor Champagne noted that he distributed a draft copy of the proposed referendum tonight.... it doesn't add to the amount of money but it does take a look at the local law, invalidates that so we're only dealing with the state statute.... noted the amount of money has not been discussed as of yet and would be discussed at a committee meeting. Mr. Holohan agreed that before any changes can be made the town has to scrap the local law and then strictly the governing statue is the general municipal law. Town Board held discussion regarding program.... will continue discussions further. OTHER DISCUSSIONS Town Board held discussion regarding proposed construction and demolition landfill and the permit process involved.... board agreed to meet with DEC to start process. Councilman Irish referred to the Cracker Barrel Rezoning issue and recommended bringing project back to the table for a vote.... board held discussion, agreed to hold for further discussions... Town Board held discussion regarding updating some assessment records in North Queensbury on the lake... discussion held regarding reva1... No further action taken. On motion, meeting was adjourned. RESPECTFULLY SUBMITTED, DARLEEN M. DOUGHER TOWN CLERK TOWN OF QUEENSBURY