HomeMy WebLinkAboutBoard of Selectmen Agenda November 9, 2011 Packet_201402061639203347
COMMONWEALTH OF MASSACHUSETTS
EXECUTIVE OFFICE OF ENVIRONMENTAL AFFAIRS
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Central Regional Office, 627 Main Street, Worcester, MA 01608
DEVAL L. PATRICK Governor
TIMOTHY P. MURRAY Lieutenant Governor
RICHARD K. SULLIVAN
Secretary
KENNETH L.KIMMELL
Commissioner
http://www.mass.gov/dep Phone (508) 792-7650 Fax (508) 792-7621 TDD # (508) 767-2788
Printed on Recycled Paper
PUBLIC MEETING –November 17, 2011
Massachusetts Estuaries Project
Madaket Harbor/Long Pond, Town of Nantucket, MA
Draft Total Maximum Daily Load (TMDL) For Total Nitrogen
Nantucket Watershed
The Massachusetts Department of Environmental Protection (MassDEP) announces the
availability for public comment of the Draft Total Maximum Daily Load (TMDL) for Total
Nitrogen for Madaket Harbor/Long Pond in Nantucket, Massachusetts. This draft TMDL
Report, (Report # 97-TMDL-5 Control # 283.0) is required by the EPA Federal Clean Water
Act section 303d. This TMDL and the Technical Report on which it is based has been prepared
as part of the Massachusetts Estuaries Project, a collaborative effort of the MassDEP, the
University of Massachusetts School for Marine Science and Technology, the Cape Cod
Commission, the U.S. Environmental Protection Agency, the Executive Office of Energy and
Environmental Affairs, as well as municipalities and watershed associations in southeastern
Massachusetts to identify and address nitrogen pollution in 70 estuaries in southeastern
Massachusetts.
A TMDL establishes the maximum amount of a pollutant that a water body can accept and still
meet water quality standards. The TMDL serves as the regulatory and technical basis for
developing integrated water resource management plans designed to restore the water quality of
impaired water bodies. Portions of the Madaket Harbor/Long Pond embayment system (Hither
Creek and Long Pond) are listed on the 2008 Massachusetts Integrated List of Waters (Category
5) as impaired for nutrients. Madaket Harbor and Long Pond are also listed as impaired for
pathogens. The Massachusetts Estuaries Project Technical Report provides data that also
demonstrate that Madaket Harbor/Long Pond is impaired because of nutrients, low dissolved
oxygen levels, elevated chlorophyll a levels, eelgrass loss and impaired benthic fauna habitat.
MassDEP has prepared the Draft TMDL report for controlling excess nutrients (nitrogen), the
primary cause of eutrophication, that can lead to: loss of eelgrass beds (which are critical
habitats for macro-invertebrates and fish), undesirable increases in macro algae (which are
much less beneficial than eelgrass), periodic extreme decreases in dissolved oxygen
concentrations that threaten aquatic life, reductions in the diversity of benthic animal
communities and periodic algae blooms. The primary “locally controllable” source of nitrogen
to Madaket Harbor/Long Pond is sanitary wastewater from septic systems. Other controllable
This information is available in alternate format. Call Donald M. Gomes, ADA Coordinator at 617-556-1057.
sources of nitrogen to this system include stormwater runoff, leaching lawn fertilizers and
leachate from the Town of Nantucket landfill. The goal is to achieve state water quality
standards for Class SA waters as defined in Massachusetts Surface Water Quality Standards,
314 CMR 4.00. The water quality standards of particular interest are for dissolved oxygen,
nutrients, aesthetics, excess plant biomass, and nuisance aquatic vegetation. Standards for Class
SA waters provide numerical and narrative criteria to meet designated uses, including the
support of habitat for fish and other aquatic wildlife.
A copy of this Draft TMDL and a further explanation of the TMDL Program are available on
MassDEP’s website at: http://www.mass.gov/dep/water/resources/tmdls.htm#islands.
The Massachusetts Estuaries Project Final Technical Report for Madaket Harbor/Long Pond on
which the TMDL was based, is available at http://www.oceanscience.net/estuaries/reports.htm.
The Massachusetts Department of Environmental Protection (MassDEP) will hold a public
meeting on Thursday, November 17 at 5:00 pm in the Nantucket Public Safety Facility, 4
Fairgrounds Way, Nantucket in the Community Room to discuss and respond to any public
comments on the report.
MassDEP will consider all comments and the Draft TMDL Report will be revised as appropriate
prior to submittal to EPA Region 1 for approval. All public comments, which should refer to
report number MA 97-TMDL-5, must be received in writing or in electronic format by 5:00
p.m. on Friday, December 16, 2011 and addressed to:
Massachusetts Department of Environmental Protection
Division of Watershed Management,
627 Main St., 2nd Floor
Worcester, MA, 01608
Attn: Christine Duerring
Christine.Duerring@state.ma.us
THE NANTUCKET ENERGY OFFICE: PROJECT & INITIATIVE UPDATESNantucket Board of SelectmenNovember 9, 2011Community Room; PSF
ENERGY FRAMEWORK: OVERVIEW FOR EVALUATION OF ENERGY MANAGEMENT SYSTEMSImported Fuels & Fuel ProductsElectricity, Heating Fuels, Transport FuelsDelivery Distribution• National Grid • Bulk delivery of products fuelUsers:• Town of Nantucket (≈65 meters)• Residents • Businesses• Institutions Applications• Space heat• Water heat• Appliances• Motors• Computers.• ElectronicsDemand• Cost• Convenience• Efficiency• Behavior & convenienceStrategies• Information• Incentives• InvestmentsPrograms• Publicize• Educate• Lead by Example• Promote• Sponsor• Invest
PROGRAMS & INITIATIVESElectricityHeating FuelsTransport FuelsTown of Nantucket• Assemble information on consumption • Get National Grid interval & invoice data • Have WPI students perform energy audits• Identify low-cost and capital measures • Support implementation • Assemble information on consumption• Test boiler efficiencies• Have WPI students perform energy audits• Identify low-cost and capital measures• Support implementation• Support and manage development, installation and adoption of E/V charging stationsResidents• Develop and publicize website• Develop and distribute literature• Encourage Mass Save audits• Develop/distribute case studies—specific to Nantucket• Get personal involvement of prominent Nantucket residents• Develop and publicize website• Develop and distribute literature• Encourage Mass Save audits• Develop/distribute case studies (specific to Nantucket)• Get personal involvement of prominent Nantucket residents• Public outreach campaign on EVCS technology and electric vehicles on NantucketBusinesses & Institutions• Work with energy and equipment distributors• Earth Day energy-fest (fair)• Coordinate with National Grid on: Data acquisition for planning & incentives • Fuel Oil: 23 storage tanks• Propane: 6 main accounts• Home heating, hot water, etc.
NANTUCKET ENERGY USENantucket Island-wide Electricity Supply (MW): September 2010 to August 2011
NANTUCKET ENERGY USE
NANTUCKET ENERGY USE
WEBSITE: 100+ VISITORS/WEEKwww.ackenergy.org
http://www.ackenergy.org/EnergyEfficiency.htmlWEBSITE: ENERGY EFFICIENCY & CONSERVATION
SOCIAL NETWORKING: FACEBOOK & TWITTER DAILY UPDATES
NATIONAL GRID: RESTORING RELATIONSHIP AND ESTABLISHING A PARTNERSHIPCompletedGoal Confirm availability of data on audits performed in Nantucket over time and share with the Town in an appropriate aggregated format Check into availability of literature on energy efficiency that Nantucket might distribute, including sample case studies .Secure a password for and access to interval data for large Town electricity consumers Provide interval data on Town-wide electricity consumption from an appropriate point on the distribution system Track status of DPU review of net metering issues in 11-10 Provide data that can be made available regarding historical and projected annual energy consumption and peak loads, and number of meters or average use per meter, on Nantucket, disaggregated by use type or rate class if possible. Describe the approach or algorithms used to make the projections. Interview a satisfied audit customer on Nantucket TV Opportunity to demonstrate innovative distribution management, storage or other technologies that Nantucket might host
1111For the latest developments on Town Energy Projects:Visit us on the web: www.ACKEnergy.orgContact: Lauren Sinatra, Energy Coordinator Lsinatra@Nantucket-MA.gov 508-325-537911TOWN OF NANTUCKET ENERGY OFFICE@ ACKENERGY
1Madaket Wind Turbine Project:Nantucket Board of SelectmenThursday, November 9, 2011Community Room; Public Safety Facility
222Community BenefitsWho benefits?The Town: Lower Electric Bills (Energy Savings) at the compost digester and at other municipal buildings, including: OIH, MRF, Town Hall, Fire Department, 4 Fairgrounds and 2 Fairgrounds. Eligibility for substantial state grants under “Green Communities Act.” Residents: Savings on energy costs can be allocated towards other tax payer needs and projects. Everyone: Defer the third electric from the mainland Generate electricity locally without fossil fuels or emissions= A sustainable energy future for Nantucket Who benefits?The Town: Lower Electric Bills (Energy Savings) at the compost digester and at other municipal buildings, including: OIH, MRF, Town Hall, Fire Department, 4 Fairgrounds and 2 Fairgrounds. Eligibility for substantial state grants under “Green Communities Act.”Residents: Savings on energy costs can be allocated towards other tax payer needs and projects.Everyone: Defer the third electric from the mainland Generate electricity locally without fossil fuels or emissions= A sustainable energy future for Nantucket
333Turbine Size: Scaled Down
444Turbine Location: Moved Further Away from Long Pond
555Capital Cost5
666Source of Funds6
777Revenues and Expenses (Full Net-Metering Scenario)7
Revenues and Expenses (Behind-the-Meter Only)
999Grants & Contracts Massachusetts Technology Collaborative completed a preliminary feasibility study of Nantucket‘s wind resource at thirteen proposed sites from 2005-2006 In June 2009, MA Technology Trust granted $47,000 to Black & Veatch for a feasibility study of a Nantucket community wind project In June 2010, MassCEC granted $165,000 to help fund a 100kw turbine at NHS In September 2010, BOS approved a $24,900 contract with Normandeux Associates for an Avian Impact Evaluation In Sept 2010, MassCEC granted $390,000for design and construction of a 1.5MW turbine at SWF. This was amended to a $345,400 grant for a 900kW turbine In Oct 2010, BOS approved a $243,000 contract with SED to provide services for design development, design refinement, regulatory approval, and construction oversight of the Madaket Turbine Project In Dec 2010, BOS approved a $58,700 contract with Atlantic Design Engineers to study the potential noise, flicker and visual impacts of the Wind Turbine. Summer 2011: BOS approves the contracts of Lauren Sinatra and George Aronson to act as the Nantucket Energy Office and to provide guidance and assistance to promoting the island’s energy projects. Massachusetts Technology Collaborative completed a preliminary feasibility study of Nantucket‘s wind resource at thirteen proposed sites from 2005-2006 In June 2009, MA Technology Trust granted $47,000 to Black & Veatch for a feasibility study of a Nantucket community wind project In June 2010, MassCEC granted $165,000 to help fund a 100kw turbine at NHS In September 2010, BOS approved a $24,900 contract with Normandeux Associates for an Avian Impact Evaluation In Sept 2010, MassCEC granted $390,000for design and construction of a 1.5MW turbine at SWF. This was amended to a $345,400 grant for a 900kW turbine In Oct 2010, BOS approved a $243,000 contract with SED to provide services for design development, design refinement, regulatory approval, and construction oversight of the Madaket Turbine Project In Dec 2010, BOS approved a $58,700 contract with Atlantic Design Engineers to study the potential noise, flicker and visual impacts of the Wind Turbine. Summer 2011: BOS approves the contracts of Lauren Sinatra and George Aronson to act as the Nantucket Energy Office and to provide guidance and assistance to promoting the island’s energy projects.
101010Time Line Monthly Public Forums (Oct. 2011-March-2012) Capital Program Committee (November 8, 2011) ZBA Hearing (November 10, 2011) Final Design Report (December 8, 2011) Finance Committee Hearings (TDB) RFP (Bid) Issuing: (December 2011-March 2012) Interconnection (National Grid) Net-Metering (Mass DPU) ATM Article (March 31, 2012) Construction Operation10
LICENSE AGREEMENT
THIS AGREEMENT is entered into this ____ day of ________________, 2011, by and
between the Town of Nantucket (the “Licensor”) and John H. Reilly, II and Jessie M.
Glidden, Trustees of 113 Main Street Realty Trust u/d/t dated August 29, 2011 and filed
for registration with the Nantucket County Registry District of the Land Court as
Document No. 134528 as noted on Certificate of Title No. 23977 (the “Licensee”), the
owners of certain property commonly known and numbered as 113 Main Street,
Nantucket, Nantucket County, Massachusetts (the “Property”).
WHEREAS, the former owner of the Property had renovated the existing building (the
“Building”) situated on the Property, including the steps located at the front of the
Building (collectively, the “Steps”); and
WHEREAS, the Steps encroaches upon the adjoining public sidewalk (“Licensor’s
Property”), as more particularly shown on the plan attached hereto and marked
Exhibit A; and
WHEREAS, the Licensee has asked the Board of Selectmen for permission to allow the
Steps to remain in its existing location upon and over the Licensor’s Property, as more
particularly shown on the plan attached hereto and marked Exhibit A; and
WHEREAS, Licensor has agreed, under certain conditions as more particularly set forth
herein, to allow the encroachment of the Steps upon the Licensor’s Property.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein
made, the parties hereto agree as follows:
1. Licensor hereby permits Licensee for an indefinite term the exclusive right to
maintain and repair the Steps on the Licensor’s Property in accordance with
the plan Licensee had submitted to the Building Inspector of the Town of
Nantucket which is attached hereto as Exhibit A.
2. Licensee agrees to indemnify and hold Licensor harmless from and against all
losses, costs, damages, causes of action, or liabilities whatsoever, including
but not limited to mechanic’s liens and reasonable attorney’s fees, in
connection with the maintenance and repair of the Steps. Licensee will be
solely responsible for any hazards created through Licensee’s conduct in
connection with this License.
3. This License to encroach upon the Licensor’s Property as described herein
shall be only for the limited purpose of maintaining and repairing the Steps in
accordance with the above-referenced plans. This License is terminable at the
will of the Licensor upon sixty (60) written notice to Licensee. During said
sixty (60) day period, if Licensor requests, Licensee, at Licensee’s sole cost,
will remove the portion of the Steps which encroach upon Licensor’s
Property, and return the Licensor’s Property to substantially the same
condition as the rest of the Licensor’s Property which is located adjacent to
the Property.
4. When the Steps are no longer required by Licensee, Licensee, at its sole cost,
shall remove the portion of the Steps which encroach upon Licensor’s
Property, and returned the Licensor’s Property to substantially the same
condition as is the rest of the Licensor’s Property located adjacent to the
Property as reflected in Exhibit B attached.
5. This License is personal and exclusive to the Licensee and is not intended to
run with the land. This License may be transferred or assigned only upon the
expressed written consent of the Licensor acting through its Board of
Selectmen.
6. This License represents the complete understanding and entire agreement
between the parties hereto. Any prior agreements or understandings, whether
written or oral, are hereby superseded and of no effect.
7. This License is to be interpreted under and construed in accordance with the
laws of the Commonwealth of Massachusetts. The parties agree that venue for
any dispute arising from this License will be the Nantucket District Court.
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
EXECUTED as an instrument under seal as of the date first above written.
TOWN OF NANTUCKET Owner of 113 Main Street
By its Board of Selectmen 113 Main Street Realty Trust
__________________________________ By:___________________________
Rick Atherton, Chairman John H. Reilly, II, Trustee
__________________________________ By:___________________________
Whitney Willauer Jessie M. Glidden, Trustee
__________________________________
Michael Kopko
__________________________________
Patricia Roggeveen
__________________________________
Bob DeCosta
436008/NANTRE/0001
From:Dan Drake
To:Erika Mooney
Cc:Libby Gibson; "John F. Dolan"
Subject:Interim Airport Manager
Date:Thursday, November 03, 2011 4:20:05 PM
Board of Selectmen
Town of Nantucket
The Airport Commission has made an offer to William McGrath to serve as Interim Airport Manage
until a permanent Airport Manager is hired. The period of the Letter of Engagement with Mr.
McGrath is for up to six months.
Mr. McGrath is the lessor of several hangar facilities at the airport under leases with varying terms.
Because of the conflicts which these leases represent,
Mr. McGrath’s ability to accept the position for more than 30 days is predicated on his being
designated as a “special municipal employee” by the Board of Selectmen and on
the Board of Selectmen approving a waiver of the conflict of interest issues.
The Airport Commission hereby requests that the Board of Selectmen, at its meeting on November
9, 2011, consider and approve the designation of Mr. McGrath as a “special municipal employee.”
If that designation is afforded to him, Mr. McGrath will start work on November 10, 2011 and will
then file with the Town Clerk the necessary Conflict of Interest Form. The Board of Selectmen will
then be asked, at its meeting on November 16, 2011 to consider and vote an exemption to Mr.
McGrath for the conflict of interest.
Separately, the Airport Commission will consider and vote on a conflict of interest exemption for
Mr. McGrath for his continuing financial relationship with Island Airlines. This exemption does not
require Board of Selectmen approval because that relationship is not with the Town.
The foregoing process has received the approval of Town Counsel.
Thank you for your consideration.
Daniel W. Drake
Chairman
Nantucket Memorial Airport Commission
14 Airport Road
Nantucket, MA 02554
Cell 508-221-0770
Office 508-325-7753
Sewer and Solid Waste Sewer and Solid Waste Enterprise FundsEnterprise Funds FY11 First Quarter ReportFY11 First Quarter Report July July -- September 2011September 2011Department of Public WorksDepartment of Public WorksNovember 9, 2011November 9, 2011
Discussion PointsDiscussion Points Solid Waste:Solid Waste: TonnageTonnage Revenue & ExpenseRevenue & Expense Cost CentersCost Centers Sewer:Sewer: FlowsFlows Revenue & ExpenseRevenue & Expense Sewer ConnectionsSewer Connections Privilege FeesPrivilege Fees
MSW TonnageMSW Tonnage MSW YTD tonnage is down 2.8% as compared MSW YTD tonnage is down 2.8% as compared to the 1to the 1stst quarter of last year.quarter of last year. 4,371.61 tons of MSW delivered YTD4,371.61 tons of MSW delivered YTD ( Sep. 30, 2011)( Sep. 30, 2011) July was the only month in the 1July was the only month in the 1stst quarter which quarter which did not show a decline in tonnage as compared did not show a decline in tonnage as compared to the 1sr quarter of the previous year. to the 1sr quarter of the previous year. MSW tonnage numbers are trending downward MSW tonnage numbers are trending downward from the previous year and are below the three from the previous year and are below the three year average.year average.
Solid Waste Enterprise FundSolid Waste Enterprise Fund MSW TonnageMSW TonnageMSW into the Composter:Tons per month‐2004006008001,0001,2001,4001,6001,8002,000123456789101112Tons per monthFY2008FY2009FY2010FY2011FY2012
C&D TonnageC&D Tonnage C&D Tonnage for July was up as compared to last year, C&D Tonnage for July was up as compared to last year, but August and September were down as compared to but August and September were down as compared to the same months of the previous year. the same months of the previous year. Total C&D tonnage in the 1Total C&D tonnage in the 1stst quarter is 0.4% more quarter is 0.4% more than for the same time period last year than for the same time period last year C&D tonnage numbers continue to reflect the volatility C&D tonnage numbers continue to reflect the volatility of the of construction industry. It is likely that of the of construction industry. It is likely that monthly C&D tonnage numbers will continue into the monthly C&D tonnage numbers will continue into the next quarter with deliveries balanced around 500 tons next quarter with deliveries balanced around 500 tons per monthper month
C&D TonnageC&D TonnageC&D Waste into the Transfer StationTons per month‐2004006008001,0001,200123456789101112Tons per monthFY2008FY2009FY2010FY2011FY2012
C&D RevenueC&D Revenue Revenues for July and August are up as Revenues for July and August are up as compared to the same months of last year. FY compared to the same months of last year. FY 2012 September revenue was slightly lower than 2012 September revenue was slightly lower than for those of the previous Septemberfor those of the previous September 1st Quarter 2012 C&D revenue is down 7.1% as 1st Quarter 2012 C&D revenue is down 7.1% as compared to the 1st quarter of 2011compared to the 1st quarter of 2011 YTD 2012 revenue for C&D=$432,131YTD 2012 revenue for C&D=$432,131 YTD 2011 revenue for C&D was $499,062YTD 2011 revenue for C&D was $499,062
Tip Fees from C&D DeliveriesDollars per month‐50,000100,000150,000200,000250,000300,000350,000400,000123456789101112Dollars per monthFY2008FY2009FY2010FY2011FY2012
Solid Waste Cost CentersJul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12MSWRevenues ($261,124) ($33,609) ($67,482)Expenses $239,370 $255,365 $255,577Deficit (surplus) ($21,755) $221,756 $188,095RecyclingRevenues $0 $0 $0Expenses $34,546 $33,684 $33,671Deficit (surplus) $34,546 $33,684 $33,671C&D waste managementRevenues ($169,764) ($121,134) ($141,234)Expenses $216,236 $161,735 $203,737Deficit (surplus) $46,472 $40,601 $62,503Hard to manage wasteRevenues ($34,180) ($37,753) ($34,383)Expenses $18,217 $21,224 $10,531Deficit (surplus) ($15,963) ($16,529) ($23,852)Landfill managementRevenues (None)$0 $0 $0Expenses $45,800 $45,800 $45,800Deficit (surplus) $45,800 $45,800 $45,800OverheadRevenues $0 $0 $0Expenses $35,551 $37,039 $87,004
Solid Waste Solid Waste Budget to First Quarter Actual OverviewBudget to First Quarter Actual OverviewFY2012 1st Quarter BudgetFY2012 1st Quarter ActualFY2012 1st Quarter VarianceOperational Revenue$ 707,500$ 798,608$ 91,108Operational Expense$ 2,077,896$ 1,780,887$ 297,099NET (LOSS) Before Transfers($ 1,370,396)($ 982,279)$ 388,117Transfer In:General Fund Subsidy$ 1,272,772$ 1,272,772$ 0NET TOTAL 1st QUARTER($ 97,624)$ 290,493$ 388,117
Solid Waste EnterpriseSolid Waste Enterprise Revenue (Sources)Revenue (Sources)SourceSourceFY2010 1FY2010 1stst Qtr Qtr ActualActualFY2011 1FY2011 1stst Qtr Qtr ActualActualFY2012 1FY2012 1stst Qtr Qtr BudgetBudgetFY2012 1FY2012 1stst Qtr Qtr ActualActualMSW / Landfill MSW / Landfill FeesFees$65,903$65,903$82,485$82,485$132,500$132,500$127,216$127,216C&D Waste C&D Waste ManagementManagement$425,287$425,287$413,973$413,973$575,000$575,000$671,392$671,392Hard to Manage Hard to Manage WasteWaste$97,064$97,064$85,071$85,071Included Included aboveaboveIncluded Included aboveaboveSW Liens SW Liens CollectedCollected00000000Interest on Interest on InvestmentsInvestments00000000Total Enterprise Total Enterprise Fund Revenue*Fund Revenue*$588,254$588,254$581,529$581,529$707,500$707,500$798,608$798,608*Bond Proceeds / Grants are not included as they are not recognized as revenue
Solid Waste EnterpriseSolid Waste Enterprise Expenditures (Uses)Expenditures (Uses)Uses Uses –– Cost Cost CenterCenterFY2010 1FY2010 1stst Qtr ActualQtr ActualFY2011 1FY2011 1stst Qtr Qtr ActualActualFY2012 1FY2012 1stst Qtr Qtr BudgetBudgetFY2012 1FY2012 1stst Qtr Qtr ActualActualMSW MSW CompostingComposting$770,671$770,671$661,876$661,876$ 819,758$ 819,758$ 750,312$ 750,312RecyclingRecycling$102,400$102,400$98,425$98,425$ 162,953$ 162,953$ 101,901$ 101,901C&D Waste C&D Waste ManagementManagement$594,598$594,598$160,037$160,037$ 781,727$ 781,727$ 581,707$ 581,707Hard to Hard to Manage WasteManage Waste$36,587$36,587$(29,291)$(29,291)$ 31,179$ 31,179$ 49,972$ 49,972Landfill Landfill ManagementManagement$137,400$137,400$137,400$137,400$ 163,272$ 163,272$ 137,400$ 137,400OverheadOverhead$109,889$109,889$35,100$35,100$ 119,007$ 119,007$ 159,595$ 159,595Total Enterprise Total Enterprise Fund ExpensesFund Expenses$1,700,477$1,700,477$1,063,547$1,063,547$2,077,896$2,077,896$1,780,887$1,780,887
Sewer Enterprise FundSewer Enterprise Fund YTD billable flow is down 8% as compared to the YTD billable flow is down 8% as compared to the same period last year.same period last year. YTD monthly billings are down 6% as compared to the YTD monthly billings are down 6% as compared to the same period last year.same period last year. Budget Summary: 25% through FY 2012Budget Summary: 25% through FY 2012 EnterpriseEnterprise BudgetBudget % Expended% Expended CollectionCollection $408,680$408,680 17.8%17.8% Surfside Surfside ** $5,312,907$5,312,907 46.6%46.6% ‘‘SconsetSconset $241,412$241,412 24.2%24.2%Note:Note: % expended includes $2,621,668 annual debt service % expended includes $2,621,668 annual debt service paymentspayments
Flow & Billing Comparative Flow & Billing Comparative SummarySummaryFY 2012/FY 2011Month of Consumption Current FY Last FY Difference Percent Current FY Last FY Difference PercentJuly 2011/2010 9,065,878 10,672,700 (1,606,822) ‐15.1% 700,592$ 796,098$ (95,506)$ ‐12.0%August 2011/2010 9,269,798 9,719,000 (449,202) ‐4.6% 775,043$ 799,355$ (24,311)$ ‐3.0%September 2011/2010 6,285,016 6,445,700 (160,684) ‐2.5% 533,770$ 542,366$ (8,596)$ ‐1.6%FY12 First Quarter Totals 24,620,691 26,837,400 (2,216,709) ‐8.3% 2,009,405$ 2,137,819$ (128,414)$ ‐6.0%This worksheet summarizes the sewer flows and billings for the first quarter of FY12 and compares them to the previous year's flow and billings.Each month represents the monthly flows (consumption) that were billed one month later. Thus the September 2011 consumption represent bills issued in October 2011 and are compared to the previous year.For FY 2012, flows are down by about 8% and billings are down about 6% over FY 2011 for the first three months.Consumption (flows) are down by 2.2 million CF and $128,000 over the first quarter of last fiscal year.This indicates a continued negative impact on sewer finances.Flow (CF) Billings
Sewer Sewer Budget to First Quarter Actual OverviewBudget to First Quarter Actual OverviewFY2012 1st Quarter BudgetFY2012 1st Quarter ActualFY2012 1st Quarter VarianceOperational Revenue$ 1,290,012$ 1,727,043$ 437,031Operational Expense$ 1,490,750$ 2,473,880$ 983,130NET (LOSS) Before Transfers($ 200,738)($ 746,837)($ 546,099)Transfer In:General Fund Subsidy$ 0$ 0$ 0NET TOTAL 1st QUARTER($ 200,738)($ 746,837)($ 546,099)
Sewer Enterprise Sewer Enterprise Revenue (Sources)Revenue (Sources)SourceSourceFY2010 1FY2010 1stst Qtr Qtr ActualActualFY2011 1FY2011 1stst Qtr Qtr ActualActualFY2012 1FY2012 1stst Qtr Qtr BudgetBudgetFY2012 1FY2012 1stst Qtr Qtr ActualActualSewer User FeesSewer User Fees$1,721,339$1,721,339$2,179,659$2,179,659$ 1,265,387$ 1,265,387$ 1,683,653$ 1,683,653Sewer Sewer Connection FeesConnection Fees$ 6,490$ 6,490$ 20,990$ 20,990$ 7,500$ 7,500$ 20,000$ 20,000Sewer Liens Sewer Liens CollectedCollected0000$ 0$ 0$ 2,845$ 2,845Privilege FeesPrivilege Fees00$ 326,802$ 326,802$ 16,500$ 16,500$ 18,955$ 18,955Interest on Interest on InvestmentsInvestments$ 624$ 62400$ 625$ 625$ 1,590$ 1,590Total Enterprise Total Enterprise Fund Revenue*Fund Revenue*$1,728,453$1,728,453$2,527,451$2,527,451$1,290,012$1,290,012$1,727,043$1,727,043*Bond Proceeds / Grants are not included as they are not recognized as revenue
Sewer Enterprise Sewer Enterprise Expenditures (Uses)Expenditures (Uses)Uses Uses –– Cost Cost CenterCenterFY2010 1FY2010 1stst Qtr ActualQtr ActualFY2011 1FY2011 1stst Qtr Qtr ActualActualFY2012 1FY2012 1stst Qtr Qtr BudgetBudgetFY2012 1FY2012 1stst Qtr Qtr ActualActualSurfsideSurfside$2,204,927$2,204,927$2,120,833$2,120,833$1,328,227$1,328,227$2,309,446$2,309,446SconsetSconset$54,259$54,259$47,355$47,355$ 60,353$ 60,353$ 57,485$ 57,485CollectionCollection$74,221$74,221$70,756$70,756$ 102,170$ 102,170$ 70,949$ 70,949MWPATMWPAT00000000Total Enterprise Total Enterprise Fund ExpensesFund Expenses$2,333,407$2,333,407$2,238,644$2,238,644$1,490,750$1,490,750$2,473,880$2,473,880
Sewer Enterprise Sewer Enterprise Debt ServiceDebt Service00.511.522.532007 2008 2009 2010 2011 20121st QuarterIn Millions($) FY2007, 1FY2007, 1stst Quarter Debt Service as a percentage of actual Quarter Debt Service as a percentage of actual expenditures was 59%expenditures was 59% Significant increase in debt service expense began in FY2009 witSignificant increase in debt service expense began in FY2009 with h the completion of the Surfside Wastewater Treatment Facility, Brthe completion of the Surfside Wastewater Treatment Facility, Brant ant Point Sewer, and Phase I SewerPoint Sewer, and Phase I SewerDebt Service77%Operating Expense23%FY2012 1st Quarter
Cost Containment MeasuresCost Containment Measures Sewer:Sewer: Review current NGrid electrical rates for applicability Review current NGrid electrical rates for applicability Solar Power Project Solar Power Project Maximize in house laboratory testingMaximize in house laboratory testing Solid WasteSolid Waste Review current NGrid electrical rates for applicabilityReview current NGrid electrical rates for applicability Alternative Energy wind projectAlternative Energy wind project Mining Operations to lower future capping & closing cost of unliMining Operations to lower future capping & closing cost of unlined ned cellcell Adjust Take It or Leave It Operating Hours during Adjust Take It or Leave It Operating Hours during ““OffOff--PeakPeak”” seasonseasonSewer & Solid Waste Enterprise Sewer & Solid Waste Enterprise Next StepsNext Steps
Advance Notice of Intent to Vote Pursuant to G.L. c. 32B, §§ 21‐23
Recipient Address List
Certified Mail, Return Receipt 11/3/11
Police
330
Keith Mansfield
39 Friendship Lane
Nantucket, MA 02554
330a (Acting)
Angus MacVicar
52 Vesper Lane
Nantucket, MA 02554
Laborers’
Marcus Silverstein
82A South Shore Lane
Nantucket, MA 02554
SEIU
Sheila Barrett
5 Daves Street
Nantucket, MA 02554
DPW
Nathaniel Ray
2 Greglen Ave.
P.O. Box 366
Nantucket, MA 02554
Wannacomet Water
Robert Earle
4C Folger Ave.
Nantucket, MA 02554
Airport
Bruce King
59 New Street
P.O. Box 438
Siasconset, MA 02564
Fire
Robert Bates
11 Brinda Lane
Nantucket, MA 02554
School
Educational Support Personnel
Teachers’
Teaching Assistants
(Co‐Presidents)
John McGuinness
60 South Shore Road
Nantucket, MA 02554
Alice Crowley
6R New Lane
Nantucket, MA 02554
Retired State, County and Municipal Employees 116 Association
11 Beacon Street
Suite 321,
Boston, MA 02108
CC:
MunicipalHealth@state.ma.us
Town Counsel
John F. Dolan, Esq.
jdolan@k-plaw.com
Print
Whereas, The deferred operation of this act would tend to defeat its purpose, which is immediately to authorize
municipalities to implement local health insurance changes, therefore it is hereby declared to be an emergency law,
necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same as
follows:
SECTION 1. Chapter 32B of the General Laws is hereby amended by striking out section 2, as appearing in the 2008 Official
Edition, and inserting in place thereof the following section:-
Section 2. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following
meanings:-
“Appropriate public authority”, as to a county, except Worcester county, the county commissioners; as to a city, the mayor;
as to a town, the selectmen; as to a district, the governing board of the district and for the purposes of this chapter if a
collective bargaining agreement is in place, as to a commonwealth charter school as defined by section 89 of chapter 71, the
board of trustees; and as to an education collaborative, as defined by section 4E of chapter 40, the board of directors.
“Commission”, the group insurance commission established by section 3 of chapter 32A.
“Dependent”, an employee’s spouse, an employee’s unmarried children under 19 years of age and any child 19 years of age
or over who is mentally or physically incapable of earning the child’s own living; provided, however, that any additional
premium which may be required shall be paid for the coverage of such child 19 years of age or over; provided further, that
“dependent” shall also include an unmarried child 19 years of age or over who is a full-time student in an educational or
vocational institution and whose program of education has not been substantially interrupted by full-time gainful employment,
excluding service in the armed forces; provided further, that any additional premium which may be required for the coverage
of such student shall be paid in full by the employee. The standards for such full-time instruction and the time required to
complete such a program of education shall be determined by the appropriate public authority.
“District”, any water, sewer, light, fire, veterans’ services or other improvement district or public unit created within 1 or more
political subdivisions of the commonwealth to provide public services or conveniences.
“Employee”, any person in the service of a governmental unit or whose services are divided between 2 or more
governmental units or between a governmental unit and the commonwealth, and who receives compensation for any such
service, whether such person is employed, appointed or elected by popular vote, and any employee of a free public library
maintained in a city or town to the support of which that city or town annually contributes not less than one-half of the cost;
provided, however, that the duties of such person require not less than 20 hours, regularly, in the service of the
governmental unit during the regular work week of permanent or temporary employment; provided further, that no seasonal
employee or emergency employees shall be included, except that persons elected by popular vote may be considered
eligible employees during the entire term for which they are elected regardless of the number of hours devoted to the service
of the governmental unit. A member of a call fire department or other volunteer emergency service agency serving a
municipality shall be considered an employee, if approved by vote of the municipal legislative body, and the municipality
shall charge such individual 100 per cent of the premium. If an employee’s services are divided between governmental units,
the employee shall, for the purposes of this chapter, be considered an employee of the governmental unit which pays more
than 50 per cent of the employee’s salary. But, if no one governmental units pays more than 50 per cent of that employee’s
salary, the governmental unit paying the largest share of the salary shall consider the employee as its own for membership
Acts 2011 CHAPTER 69 AN ACT RELATIVE TO MUNICIPAL HEALTH INSURANCEE. (see House, No.
3580) Approved by the Governor, July 12, 2011
Page 1 of 8Session Laws: CHAPTER 69 of the Acts of 2011
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purposes, and that governmental unit shall contribute 50 per cent of the cost of the premium. If the payment of an
employee’s salary is equally divided between governmental units, the governmental unit having the largest population shall
contribute 50 per cent of the cost of the premium. If an employee’s salary is divided in any manner between a governmental
unit and the commonwealth, the governmental unit shall contribute 50 per cent of the cost of the premium. An employee
eligible for coverage under this chapter shall not be eligible for coverage as an employee under chapter 32A. Teachers and
all other public school employees shall be deemed to be employees during the months of July and August under this
chapter; provided, however, that employee contributions for such health insurance for those 2 months are deducted from the
compensation paid for services rendered during the previous school year. A determination by the appropriate public authority
that a person is eligible for participation in the plan of insurance shall be final. Nothing in this paragraph shall apply to
Worcester county or its employees.
“Employer”, the governmental unit.
“Governmental unit”, any political subdivision of the commonwealth.
“Health care flexible spending account”, a federally-recognized tax-exempt health benefit program that allows an employee
to set aside a portion of earnings to pay for qualified expenses as established in an employer’s benefit plan.
“Health care organization”, an organization for the group practice of medicine, with or without hospital or other medical
institutional affiliations, which furnishes to the patient a specified or unlimited range of medical, surgical, dental, hospital and
other types of health care services.
“Health reimbursement arrangement”, a federally-recognized tax-exempt health benefit program funded solely by an
employer to reimburse subscribers for qualified medical expenses.
“Optional Medicare extension”, a program of hospital, surgical, medical, dental and other health insurance for such active
employees and their dependents and such retired employees and their dependents, except elderly governmental retirees
insured under section 11B, as are eligible or insured under the federal health insurance for the aged act, as may be
amended from time to time.
“Political subdivision”, any county, except Worcester county, city, town or district.
“Savings”, for the purposes of sections 21, 22 and 23, shall mean the difference between the total projected premium costs
for health insurance benefits provided by a political subdivision with changes made to health insurance benefits under
section 22 or 23 for the first 12 months after the implementation of such changes and the total projected premium costs for
health insurance benefits provided by that subdivision without such changes for the same 12 month period.
“Subscribers”, employees, retirees, surviving spouses and dependents of the political subdivision and may include
employees, retirees, surviving spouses and dependents of a district who previously received health insurance benefits
through the political subdivision.
SECTION 2. Section 12 of said chapter 32B is hereby amended by adding the following paragraph:-
The board of a trust or joint purchase group established by 2 or more governmental units may vote to implement changes to
co-payments, deductibles, tiered provider network copayments and other cost-sharing plan design features which do not
exceed those which an appropriate public authority may offer under section 22; provided, however, that each governmental
unit that is a member of a trust or group shall comply with the requirements set forth in section 21 before any such changes
may be applied to the health insurance coverage of such governmental unit’s subscribers. If such changes to the dollar
amounts for copayments, deductibles, tiered provider network copayments and other cost-sharing plan design features do
not exceed those permitted under section 22, such changes shall be approved in accordance with the provisions of section
21.
SECTION 3. Said chapter 32B is hereby further amended by adding the following 9 sections:-
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Section 21. (a) Any political subdivision electing to change health insurance benefits under sections 22 or 23 shall do so in
the following manner: in a county, except Worcester county, by a vote of the county commissioners; in a city having Plan D
or a Plan E charter, by majority vote of the city council and approval by the manager; in any other city, by majority vote of the
city council and approval by the mayor; in a town, by vote of the board of selectmen; in a regional school district, by vote of
the regional district school committee; and in all other districts, by vote of the registered voters of the district at a district
meeting. This section shall be binding on any political subdivision that implements changes to health insurance benefits
pursuant to section 22 or 23.
(b) Prior to implementing any changes authorized under sections 22 or 23, the appropriate public authority shall evaluate its
health insurance coverage and determine the savings that may be realized after the first 12 months of implementation of
plan design changes or upon transfer of its subscribers to the commission. The appropriate public authority shall then notify
its insurance advisory committee, or such committee’s regional or district equivalent, of the estimated savings and provide
any reports or other documentation with respect to the determination of estimated savings as requested by the insurance
advisory committee. After discussion with the insurance advisory committee as to the estimated savings, the appropriate
public authority shall give notice to each of its collective bargaining units to which the authority provides health insurance
benefits and a retiree representative, hereafter called the public employee committee, of its intention to enter into
negotiations to implement changes to health insurance benefits provided by the appropriate public authority. The retiree
representative shall be designated by the Retired State, County and Municipal Employees Association. A political
subdivision which has previously established a public employee committee under section 19 may implement changes to its
health insurance benefits pursuant to this section and sections 22 and 23.
Notice to the collective bargaining units and retirees shall be provided in the same manner as prescribed in section 19. The
notice shall detail the proposed changes, the appropriate public authority’s analysis and estimate of its anticipated savings
from such changes and a proposal to mitigate, moderate or cap the impact of these changes for subscribers, including
retirees, low-income subscribers and subscribers with high out-of-pocket health care costs, who would otherwise be
disproportionately affected.
(c) The appropriate public authority and the public employee committee shall have not more than 30 days from the point at
which the public employee committee receives the notice as provided in subsection (b) to negotiate all aspects of the
proposal. An agreement with the appropriate public authority shall be approved by a majority vote of the public employee
committee; provided, however, that the retiree representative shall have a 10 per cent vote. If after 30 days the appropriate
public authority and public employee committee are unable to enter into a written agreement to implement changes under
section 22 or 23, the matter shall be submitted to a municipal health insurance review panel. The panel shall be comprised
of 3 members, 1 of whom shall be appointed by the public employee committee, 1 of whom shall be appointed by the public
authority and 1 of whom shall be selected through the secretary of administration and finance who shall forward to the
appropriate public authority and the public employee committee a list of 3 impartial potential members, each of whom shall
have professional experience in dispute mediation and municipal finance or municipal health benefits, from which the
appropriate public authority and the public employee committee may jointly select the third member; provided, however, that
if the appropriate public authority and the public employee committee cannot agree within 3 business days upon which
person to select as the third member of the panel, the secretary of administration and finance shall select the final member
of the panel. Any fee or compensation provided to a member for service on the panel shall be shared equally between the
public employee committee and the appropriate public authority.
(d) The municipal health insurance review panel shall approve the appropriate public authority’s immediate implementation
of the proposed changes under section 22; provided, however, that any increases to plan design features have been made
in accordance with the provisions of section 22. The municipal health insurance review panel shall approve the appropriate
public authority’s immediate implementation of the proposed changes under section 23; provided, that the panel confirms
that the anticipated savings under those changes would be at least 5 per cent greater than the maximum possible savings
under section 22. If the panel does not approve implementation of changes made pursuant to section 22 or section 23, the
public authority may submit a new proposal to the public employee committee for consideration and confirmation under this
section.
(e) Within 10 days of receiving any proposed changes under sections 22 or 23, the municipal health insurance review panel
shall: (i) confirm the appropriate public authority’s estimated monetary savings due to the proposed changes under section
22 or 23 and ensure that the savings is substantiated by documentation provided by the appropriate public authority;
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provided, however, that if the panel determines the savings estimate to be unsubstantiated, the panel may require the public
authority to submit a new estimate or provide additional information to substantiate the estimate; (ii) review the proposal
submitted by the appropriate public authority to mitigate, moderate or cap the impact of these changes for subscribers,
including retirees, low-income subscribers and subscribers with high out-of-pocket health care costs, who would otherwise
be disproportionately affected; and (iii) concur with the appropriate public authority that the proposal is sufficient to mitigate,
moderate or cap the impact of these changes for subscribers, including retirees, low-income subscribers and subscribers
with high out-of-pocket health care costs, who would otherwise be disproportionately affected or revise the proposal
pursuant to subsection (f).
(f) The municipal health insurance review panel may determine the proposal to be insufficient and may require additional
savings to be shared with subscribers, particularly those who would be disproportionately affected by changes made
pursuant to sections 22 or 23, including retirees, low-income subscribers and subscribers with high out-of-pocket costs. In
evaluating the distribution of savings to retirees, the panel may consider any discrepancy between the percentage
contributed by retirees, surviving spouses and their dependents to plans offered by the public authority as compared to other
subscribers. In reaching a decision on the proposal under this subsection, the municipal health insurance review panel may
consider an alternative proposal, with supporting documentation, from the public employee committee to mitigate, moderate
or cap the impact of these changes for subscribers. The panel may require the appropriate public authority to distribute
additional savings to subscribers in the form of health reimbursement arrangements, wellness programs, health care trust
funds for emergency medical care or inpatient hospital care, out-of-pocket caps, Medicare Part B reimbursements or
reimbursements for other qualified medical expenses; provided, however that in no case shall the municipal health insurance
review panel designate more than 25 per cent of the estimated savings to subscribers. The municipal health insurance
review panel shall not require a municipality to implement a proposal to mitigate, moderate or cap the impact of changes
authorized under section 22 or 23 which has a total multi-year cost that exceeds 25 per cent of the estimated savings. All
obligations on behalf of the appropriate public authority related to the proposal shall expire after the initial amount of
estimated savings designated by the panel to be distributed to employees and retirees has been expended. The panel shall
not impose any change to contribution ratios.
(g) The decision of the municipal health insurance review panel shall be binding upon all parties.
(h) The secretary of administration and finance shall promulgate regulations establishing administrative procedures for the
negotiations with the public employee committee and the municipal health insurance review panel, and issue guidelines to
be utilized by the appropriate public authority and the municipal health insurance review panel in evaluating which
subscribers are disproportionately affected, subscriber income and subscriber out-of-pocket costs associated with health
insurance benefits.
Section 22. (a) Upon meeting the requirements of section 21, an appropriate public authority of a political subdivision which
has undertaken to provide health insurance coverage to its subscribers by acceptance of any other section of this chapter
may include, as part of the health plans that it offers to its subscribers not enrolled in a Medicare plan under section 18A,
copayments, deductibles, tiered provider network copayments and other cost-sharing plan design features that are no
greater in dollar amount than the copayments, deductibles, tiered provider network copayments and other cost-sharing plan
design features offered by the commission pursuant to section 4 or 4A of chapter 32A in a non-Medicare plan with the
largest subscriber enrollment; provided, however, that for subscribers enrolled in a Medicare plan pursuant to section 18A
the appropriate public authority may include, as part of the health plans that it offers to its subscribers, copayments,
deductibles, tiered provider network copayments and other cost-sharing plan design features that are no greater in dollar
amount than the copayments, deductibles, tiered provider network copayments and other cost-sharing plan design features
offered by the commission pursuant to section 4 or 4A of chapter 32A in a Medicare plan with the largest subscriber
enrollment. The appropriate public authority shall not include a plan design feature which seeks to achieve premium savings
by offering a health benefit plan with a reduced or selective network or providers unless the appropriate public authority also
offers a health benefit plan to all subscribers that does not contain a reduced or selective network of providers.
(b) An appropriate public authority may increase the dollar amounts for copayments, deductibles, tiered provider network
copayments and other cost-sharing plan design features; provided that, for subscribers enrolled in a non-Medicare plan,
such features do not exceed plan design features offered by the commission pursuant to section 4 or 4A of chapter 32A in a
non-Medicare plan with the largest subscriber enrollment and, for subscribers enrolled in a Medicare plan under section 18A,
such features do not exceed plan design features offered by the commission pursuant to section 4 or 4A of chapter 32A in a
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Medicare plan with the largest subscriber enrollment; provided, however, that the public authority need only satisfy the
requirements of subsection (a) of section 21 the first time changes are implemented pursuant to this section; and provided,
further that the public authority meet its obligations under subsections (b) to (h), inclusive, of section 21 each time an
increase to a plan design feature is proposed.
Nothing herein shall prohibit an appropriate public authority from including in its health plans higher copayments, deductibles
or tiered provider network copayments or other plan design features than those authorized by this section; provided,
however, such higher copayments, deductibles, tiered provider network copayments and other plan design features may be
included only after the governmental unit has satisfied any bargaining obligations pursuant to section 19 or chapter 150E.
(c) The decision to accept and implement this section shall not be subject to bargaining pursuant to chapter 150E or section
19. Nothing in this section shall preclude the implementation of plan design changes pursuant to this section in communities
that have adopted section 19 of this chapter or by the governing board of a joint purchasing group established pursuant to
section 12.
(d) Nothing in this section shall relieve an appropriate public authority from providing health insurance coverage to a
subscriber to whom it has an obligation to provide coverage under any other provision of this chapter.
(e) The first time a public authority implements plan design changes under this section or section 23, the public authority
shall not increase before July 1, 2014,the percentage contributed by retirees, surviving spouses and their dependents to
their health insurance premiums from the percentage that was approved by the public authority prior to and in effect on July
1, 2011; provided however, that if a public authority approved of an increase in said percentage contributed by retirees
before July 1, 2011, but to take effect on a date after July 1, 2011, said percentage increase may take effect upon the
approval of the secretary of administration and finance based on documented evidence satisfactory to the secretary that the
public authority approved the increase prior to July 1, 2011.
Section 23. (a) Upon meeting the requirements of section 21, an appropriate public authority which has undertaken to
provide health insurance coverage to its subscribers may elect to provide health insurance coverage to its subscribers by
transferring its subscribers to the commission and shall notify the commission of such transfer. The notice shall be provided
to the commission by the appropriate public authority on or before December 1 of each year and the transfer of subscribers
to the commission shall take effect on the following July 1. On the effective date of the transfer, the health insurance of all
subscribers, including elderly governmental retirees previously governed by section 10B of chapter 32A and retired
municipal teachers previously governed by section 12 of chapter 32A, shall be provided through the commission for all
purposes and governed under this section. As of the effective date and for the duration of this transfer, subscribers
transferred to the commission's health insurance coverage shall receive group health insurance benefits determined
exclusively by the commission and the coverage shall not be subject to collective bargaining, except for contribution ratios.
Subscribers transferred to the commission who are eligible or become eligible for Medicare coverage shall transfer to
Medicare coverage, as prescribed by the commission. In the event of transfer to Medicare, the political subdivision shall pay
any Medicare part B premium penalty assessed by the federal government on retirees, spouses and dependents as a result
of enrollment in Medicare part B at the time of transfer into the Medicare health benefits supplement plan. For each
subscriber's premium and the political subdivision's share of that premium, the subscriber and the political subdivision shall
furnish to the commission, in such form and content as the commission shall prescribe, all information the commission
deems necessary to maintain subscribers' and covered dependents' health insurance coverage. The appropriate public
authority of the political subdivision shall perform such administrative functions and process such information as the
commission deems necessary to maintain those subscribers' health insurance coverage including, but not limited to, family
and personnel status changes, and shall report all changes to the commission. In the event that a political subdivision
transfers subscribers to the commission under this section, subscribers may be withdrawn from commission coverage at 3
year intervals from the date of transfer of subscribers to the commission.
The appropriate public authority shall provide notice of any withdrawal by October 1 of the year prior to the effective date of
withdrawal. All withdrawals shall be effective on July 1 following the political subdivision's notice to the commission and the
political subdivision shall abide by all commission requirements for effectuating such withdrawal, including the notice
requirements in this subsection. In the event a political subdivision withdraws from commission coverage under this section,
such withdrawal shall be binding on all subscribers, including those subscribers who, prior to the transfer to the commission,
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received coverage from the commission under sections 10B and 12 of chapter 32A and, after withdrawal from the
commission, those subscribers who received coverage from the commission under said sections 10B and 12 of said chapter
32A shall not pay more than 25 per cent of the cost of their health insurance premiums. In the event of withdrawal from the
commission, the political subdivision and public employee unions shall return to governance of negotiations of health
insurance under chapter 150E and this chapter; provided, however, that the political subdivision may transfer coverage to
the commission again after complying with the requirements of subsections (b) to (h), inclusive, of section 21.
The commission shall issue rules and regulations consistent with this section related to the process by which subscribers
shall be transferred to the commission.
(b) To the extent authorized under chapter 32A, the commission shall provide group coverage of subscribers' health claims
incurred after transfer to the commission. The claim experience of those subscribers shall be maintained by the commission
in a single pool and combined with the claim experience of all covered state employees and retirees and their covered
dependents, including those subscribers who previously received coverage under sections 10B and 12 of chapter 32A.
(c) A political subdivision that self-insures its group health insurance plan under section 3A and has a deficit in its claims
trust fund at the time of transferring its subscribers to the commission and the deficit is attributable to a failure to accrue
claims which had been incurred but not paid may capitalize the deficit and amortize the amount over 10 fiscal years in 10
equal amounts or on a schedule providing for a more rapid amortization. Except as provided otherwise herein, subscribers
eligible for health insurance coverage pursuant to this section shall be subject to all of the terms, conditions, schedule of
benefits and health insurance carriers as employees and dependents as defined by section 2 and commission regulations.
The commission shall, exclusively and not subject to collective bargaining under chapter 150E, determine all matters relating
to subscribers' group health insurance rights, responsibilities, costs and payments and obligations excluding contribution
ratios, including, but not limited to, the manner and method of payment, schedule of benefits, eligibility requirements and
choice of health insurance carriers. The commission may issue rules and regulations consistent with this section and shall
provide public notice, and notice at the request of the interested parties, of any proposed rules and regulations and provide
an opportunity to review and an opportunity to comment on those proposed rules and regulations in writing and at a public
hearing; provided, however, that the commission shall not be subject to chapter 30A.
(d) The commission shall negotiate and purchase health insurance coverage for subscribers transferred under this section
and shall promulgate regulations, policies and procedures for coverage of the transferred subscribers. The schedule of
benefits available to transferred subscribers shall be determined by the commission pursuant to chapter 32A. The
commission shall offer those subscribers the same choice as to health insurance carriers and benefits as those provided to
state employees and retirees. The political subdivision's contribution to the cost of health insurance coverage for transferred
subscribers shall be as determined under this section, and shall not be subject to the provisions on contributions in said
chapter 32A. Any change to the premium contribution ratios shall become effective on July 1 of each year, with notice to the
commission of such change not later than January 15 of the same year.
(e) A political subdivision that transfers subscribers to the commission shall pay the commission for all costs of its
subscribers' coverage, including administrative expenses and the governmental unit's cost of subscribers' premium. The
commission shall determine on a periodic basis the amount of premium which the political subdivision shall pay to the
commission. If the political subdivision unit fails to pay all or a portion of these costs according to the timetable determined
by the commission, the commission may inform the state treasurer who shall issue a warrant in the manner provided by
section 20 of chapter 59 requiring the respective political subdivision to pay into the treasury of the commonwealth as
prescribed by the commission the amount of the premium and administrative expenses attributable to the political
subdivision. The state treasurer shall recoup any past due costs from the political subdivision's cherry sheet under section
20A of chapter 58 and transfer that money to the commission. If a governmental unit fails to pay to the commission the costs
of coverage for more than 90 days and the cherry sheet provides an inadequate source of payment, the commission may, at
its discretion, cancel the coverage of subscribers of the political subdivision. If the cancellation of coverage is for
nonpayment, the political subdivision shall provide all subscribers health insurance coverage under plans which are the
actuarial equivalent of plans offered by the commission in the preceding year until there is an agreement with the public
employee committee providing for replacement coverage.
The commission may charge the political subdivision an administrative fee, which shall not be more than 1 per cent of the
cost of total premiums for the political subdivision, to be determined by the commission which shall be considered as part of
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the cost of coverage to determine the contributions of the political subdivision and its employees to the cost of health
insurance coverage by the commission.
(f) If there is a withdrawal from the commission under this section, all retirees, their spouses and dependents insured or
eligible to be insured by the political subdivision, if enrolled in Medicare part A at no cost to the retiree, spouse or
dependents, shall be required to be insured by a Medicare extension plan offered by the political subdivision under section
11C or section 16. A retiree shall provide the political subdivision, in such form as the political subdivision shall prescribe,
such information as is necessary to transfer to a Medicare extension plan. If a retiree does not submit the information
required, the retiree shall no longer be eligible for the retiree’s existing health insurance coverage. The political subdivision
may from time to time request from a retiree, a retiree's spouse and dependents, proof certified by the federal government of
the retiree’s eligibility or ineligibility for Medicare part A and part B coverage. The political subdivision shall pay the Medicare
part B premium penalty assessed by the federal government on those retirees, spouses and dependents as a result of
enrollment in Medicare part B at the time of transfer into the Medicare health benefits supplement plan.
(g) The decision to implement this section shall not be subject to collective bargaining pursuant to chapter 150E or section
19.
(h) Nothing in this section shall relieve a political subdivision from providing health insurance coverage to a subscriber to
whom it has an obligation to provide coverage under any other provision of this chapter or change eligibility standards for
health insurance under the definition of “employee” in section 2.
Section 24. An appropriate public authority of a political subdivision which has undertaken to provide health insurance
coverage to its subscribers under this chapter may provide health care flexible spending accounts to allow certain
subscribers, as determined by the appropriate public authority, to set aside a portion of earnings to pay for qualified
expenses which may include, but shall not be limited to, out-of-pocket costs such as inpatient and outpatient copayments,
calendar year deductibles, office visit copayments and prescription drug copayments.
Section 25. Notwithstanding any general or special law or regulation to the contrary, the appropriate public authority of a
political subdivision which has undertaken to provide health insurance coverage to its subscribers under this chapter or
transfer its subscribers to the commission under this chapter may provide health reimbursement arrangements to reimburse
subscribers for qualified medical expenses which may include, but shall not be limited to, out-of-pocket costs such as
inpatient and outpatient copayments, calendar year deductibles, office visit copayments and prescription drug copayments.
Section 26. An appropriate public authority of a political subdivision which has undertaken to provide health insurance
coverage to its subscribers under this chapter shall conduct an enrollment audit not less than once every 2 years. The audit
shall be completed in order to ensure that members are appropriately eligible for coverage.
Section 27. An insurance carrier, third party purchasing group or administrator or the commission in the case of a
governmental unit, which has undertaken to provide health insurance coverage to its subscribers by acceptance of sections
19 or 23, shall, upon written request, provide the governmental unit or public employee committee with its historical claims
data within 45 days of such request; provided, that all personally identifying information within such claims shall be redacted
and released in a form and manner compliant with all applicable state and federal privacy statutes and regulations including,
but not limited to, the federal Health Insurance Portability and Accountability Act of 1996.
Section 28. Nothing in section 21, 22 or 23 shall be construed to prevent 2 or more governmental units under a joint
purchase or trust agreement from jointly negotiating and purchasing coverage as authorized in section 12.
Section 29. Each fiscal year, the commission shall prepare and place on its website a report delineating the dollar amount of
the copayments, deductibles, tiered provider network co-payments and other design features offered by the commission in
the non-Medicare plan with the largest subscriber enrollment and the dollar amount of the copayments, deductibles, tiered
provider network copayments and other design features offered by the commission in the Medicare extension plan with the
largest subscriber enrollment. The commission shall also provide information on its plans with the largest subscriber
enrollment upon request of any appropriate public authority or political subdivision.
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SECTION 4. Notwithstanding any general or special law to the contrary, an appropriate public authority that implements
changes to health insurance benefits pursuant to sections 22 and 23 of chapter 32B of the General Laws shall delay
implementation of such changes, as to those subscribers covered by a collective bargaining agreement or section 19
agreement that is in effect on the date of implementation of such changes, of any changes to the dollar amounts of
copayments, deductibles or other cost-sharing plan design features that are inconsistent with any dollar limits on
copayments, deductibles or other cost-sharing plan design features that are specifically included in the body of that collective
bargaining agreement or section 19 agreement, until the initial term stated in that collective bargaining agreement or section
19 agreement has ended.
SECTION 5. Nothing in this act shall be construed to alter, amend or affect chapter 36 of the acts of 1998, chapter 423 of the
acts of 2002, chapter 27 of the acts of 2003 or chapter 247 of the acts of 2004.
SECTION 6. Notwithstanding any general or special law to the contrary, the group insurance commission shall prescribe
procedures to permit a political subdivision to transfer all subscribers for whom it provides health insurance coverage to the
commission on or before January 1, 2012, if such political subdivision provides notice to the group insurance commission on
or before September 1, 2011, that it is transferring its subscribers to the group insurance commission under sections 19 or
23 of chapter 32B of the General Laws; provided further, the commission shall also prescribe procedures to permit a political
subdivision to transfer all subscribers for whom it provides health insurance coverage to the commission on or before April 1,
2012, if such political subdivision provides notice to the group insurance commission on or before December 1, 2011, that it
is transferring its subscribers to the group insurance commission under said sections 19 or 23 of said chapter 32B; provided
further, the commission shall also prescribe procedures to permit a political subdivision to transfer all subscribers for whom it
provides health insurance coverage to the commission on or before July 1, 2012, if such political subdivision provides notice
to the group insurance commission on or before March 1, 2012, that it is transferring its subscribers to the group insurance
commission under said sections 19 or 23 of said chapter 32B.
SECTION 7. Notwithstanding any general or special law to the contrary, unless otherwise agreed, a governmental unit
transferring its subscribers to the group insurance commission under section 23 of chapter 32B of the General Laws shall
use current contribution ratios in existence for each class of plan for each collective bargaining unit in order to transfer to the
commission. If a governmental unit was not offering both a preferred provider organization plan or an indemnity plan on the
date of transfer to the commission, the governmental unit’s initial contribution ratio toward the commission’s preferred
provider organization plans and indemnity plans shall be the ratio that the governmental unit was contributing toward its
preferred provider organization plan or indemnity plan for each collective bargaining unit on that date. Except as specifically
provided in this section, all contribution ratios shall remain subject to bargaining pursuant to chapter 32B of the General
Laws and chapter 150E of the General Laws.
Approved, July 12, 2011.
Page 8 of 8Session Laws: CHAPTER 69 of the Acts of 2011
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Notice of intention to vote on adoption of Sections 21-23.
Send notice to Collective Bargaining Unit (CBU) presidents and Retired State
County and Municipal Employees (RSCME), at least two days prior to vote by
body authorized to accept.
Vote to accept Sections 21-23 (no time limit).
Provide IAC with 52.03 NOTICE that includes proposed changes, estimated
savings from changes and mitigation proposal.
Send written Notice of Appropriate Public Authority’s (APA) decision to proceed to president of each CBU and RSCME within two days after meeting
with IAC or ten days after IAC’s receipt of notice, whichever occurs earlier.
If a Public Employee Committee (PEC) already exists, then each CBU and RSCME provides contact information for its designee to APA within 2 business
days of receipt of NOTICE.
If a PEC doesn’t exist, then each CBU and RSCME provides contact informa-
tion for its designee to APA within five business days of receipt of NOTICE.
Deliver 52.03 NOTICE to each PEC member within two business days of APA’s receipt of contact information.
Municipal Health Insurance Reform Legislation and Regulations Timeline
October 2011
This year’s Municipal Health Insurance Reform Legislation & Regulations present new
opportunities for municipalities to make health insurance changes. This chart outlines
the basic steps and timing you must follow to adhere to the current legislation and
regulations.
Getting Started
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2.
3.
4.
5.
1
Provide notice to Secretary of Administration & Finance (A & F) and each member of PEC of the start and end dates for thirty-day negotiation period and
contact information for APA’s designee to Review Panel within three business days after starting date of negotiation period.
PEC selects Review Panel designee and notifies Secretary of A & F and
APA of selection within three business days of receiving APA’s notice.
Secretary of A & F provides list of three candidates for Panel chair within
ten days of receipt of PEC’s designation.
APA and PEC must agree upon third member in three days and notify
Secretary of A & F of selection. (If no agreement, APA notifies Secretary.)
The Secretary of A & F makes an appointment of the third member no later than
the end of the thirty-day negotiation period.
Municipal Health Insurance Reform Legislation and Regulations Timeline
October 2011
Thirty-Day Negotiation Period
(This commences when every member of PEC has received 52.03 Notice.)
1.
2.
3.
4.
2
APA submits original proposal to Panel and PEC submits alternate mitigation proposal, plus any other information, within three business days
after end of thirty-day negotiation period.
Impartial third member fixes time, date and place for Panel to convene first meeting, within two business days after receipt of APA’s original proposal.
Currently, there is no time limit within which first meeting must be
scheduled by Panel.
Panel determines whether plan design changes exceed dollar amounts
for benchmark GIC plans. If not, must approve implementation of proposed
changes within ten days of convening Panel’s first meeting.
Panel shall confirm (or decline to confirm) APA’s estimated monetary
savings due to proposed § 22 or § 23 changes and review the mitigation
proposal(s) within ten calendar days of Panel’s receipt of proposed changes.
Municipal Health Insurance Reform Legislation and Regulations Timeline
October 2011
Panel Process (This commences if parties are unable to reach written agreement
within thirty-day negotiation period.)
1.
2.
3.
4.
3
APA must provide subscribers with at least sixty-days notice of any plan
design changes or transfer of subscribers to GIC prior to implementation.
Sixty-days notice period cannot begin until a written agreement is
signed or a Panel decision is issued.
Implementation of plan design changes must occur within ninety days
after a written agreement is signed or a Panel decision is issued unless APA and PEC mutually agree to defer implementation until the end of the health
insurance policy year.
Disclosure: Please refer to 801 CMR 52.00 Municipal Health Insurance
Regulations for additional details. These are interim, emergency regulations and subject to change.
Municipal Health Insurance Reform Legislation and Regulations Timeline
October 2011
Implementation
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4