Damariscotta Town Manager Matt Lutkus has developed a proposal for Damariscotta to operate its own public works department, independent of Newcastle and the interlocal agreement between the two towns.
According to the proposal, selectmen could take action to discontinue the agreement as early as Wednesday, July 15 and begin work to establish independent operations immediately, although the proposal identifies the start date for a stand-alone department as Nov. 2.
The proposal is the result of a lengthy discussion about the current interlocal agreement at the Damariscotta Board of Selectmen meeting July 1. The board approved a motion by Selectman Jim Cosgrove to develop a transition plan to a stand-alone public works department.
Lutkus submitted the proposal Friday, July 10. His recommendations include possible employment of a full-time foreman who will also carry out road commissioner duties, with other employees hired on a seasonal and as-needed basis.
Lutkus suggests that the town monitor and review the foreman position to determine the necessity of a full-time foreman going forward.
“It may be more cost-effective to contract for snowplowing and sidewalk snow removal at municipal facilities than to keep a full-time employee on the payroll through the winter,” Lutkus said in his proposal.
The foreman and town manager would approach other public entities about sharing equipment, and request bids from contractors for hourly rates for either emergency or scheduled services, including a laborer to assist the foreman, a backhoe and operator, a loader and operator, and a dump truck and operator. Lutkus estimates that about $5,000 would need to be allocated for these equipment agreements, along with $8,000 for engineering and project management services.
Under the current public works arrangement between Damariscotta and Newcastle, the towns split the salaries of public works employees, including $60,770 for a full-time superintendent, $38,480 for a foreman and laborer, and $24,000 for a seasonal worker.
With health insurance, overtime for the foreman, retirement benefits, and other expenses, the personnel cost for both towns is $158,521.
Lutkus’ proposal estimates savings for Damariscotta upon withdrawing from the interlocal agreement at approximately $46,915, while additional costs for a new plan would total $53,157.
Damariscotta owns most of the equipment shared by the towns, including a garage, a salt-and-sand shed, a truck, a tractor, a chipper, and a street paint gun, with the value of all equipment totaling over $350,000. Newcastle owns a backhoe and a loader, although both towns make lease-to-purchase payments on the loader. Damariscotta and Newcastle share ownership of a floating pump-out station and a trailer and other equipment for the pump-out station, totaling $40,100 in value.
The current interlocal agreement has been extended by both towns until Wednesday, July 15. Damariscotta residents voted to include the interlocal agreement in the town’s budget at the annual town meeting on June 10, rejecting an impromptu effort to de-fund and effectively end the agreement.
The Damariscotta Board of Selectmen will consider formal action at its meeting on Wednesday, July 15 at 7 p.m. at the Damariscotta town office, or at a special board meeting Monday, July 20.
