Trustee, attorney spar over health insurance costs

MONROE-A heated debate over health insurance costs to the village for the Village Attorney and some board members sparked an angry exchange between Trustee John Karl and Village Attorney J. Bennett Farrell. Karl said he is concerned about the long-term costs of these benefits for Farrell and elected board members. Karl provided the board with a spread sheet that he said he and the Village Treasurer Marilyn Karlich prepared showing health insurance costs going forward. The analysis made the assumptions that a 9.3 percent increase in health insurance premiums per year up to age 65 and an 8 percent increase in premiums after age 65 would mean that the total cost to the village for insurance premiums over the next 15 years for three board members and Farrell would exceed $1,251,300. According to Karl's figures, health insurance costs over the next 15 years would total $352,427.96 for Trustee Thomas M. Remo; 361,054.99 for former board member Lindsay Earl; 352,249.75 for Farrell; and 185,664.92 for Mayor Joseph C. Mancuso. This analysis does not include any additional costs if future board members take advantage of this program during this period. Karl referenced revisions to the Village Employee Handbook that were added by board resolution in August 2003 to enable former board members to receive lifetime health insurance if they were 50 years or older upon leaving office. The previous handbook required a board member leaving office to have served eight or more years on the board and have reached the age of 55. Both versions provided for all board members to receive health insurance benefits while serving on the board. Currently, former board member Earl is benefiting from the extended health insurance and based upon age, all current board members will be eligible for the ongoing benefit upon leaving office. During the heated exchange, Farrell said he has worked for the village for 20 years and his employment agreement with the village included retirement. Since 1986 "every board offered this to me," he said. Responding directly to Karl, Farrell said: "You feel you can turn this back after one year in office. You don't have to worry about it from Harriman!" Karl is employed by the Village of Harriman where he is the public works superintendent and is covered by that municipality's benefits program. In a letter to the mayor, AMTEK Management Services Corp., a human resource consultant that assisted in the development of the employee handbook, recommended that a qualifier be added that specifies the retiring employee "must have applied for and been granted a bona-fide retirement benefit from the New York State Employees' Retirement System." Additionally, the minimum age at which NYS Retirements may be granted is age 55. A resolution to repeal the provisions in the handbook was defeated by a split vote. Trustees Karl and Steven Maneri voted for repeal, Trustee Jeffrey W. Peifer and the mayor voted against it. Trustee Remo was not at the meeting. Other business before the board: • The Kiryas Joel fire contract were tabled pending the settlement of concerns by the Monroe Fire Department. • A local law, Open Space Subdivisions and Cluster Housing, was passed. The goal of this law is "to enable and encourage flexibility of design and development of land in such a manner as to promote the most appropriate use of land." The new law grants power to the Planning Board to approve parcels in the Suburban Residential and Urban Residential Multi-Family Districts. The cluster housing permits development of one-family and/or townhouse dwellings.