The Damariscotta and Newcastle Boards of Selectmen met Feb. 16 at the Damariscotta Municipal Building to discuss a cost-sharing proposal for joint public works operations.
Damariscotta selectmen voted 4-0 to authorize Damariscotta Town Manager Greg Zinser “to proceed with the budget process as if this agreement was in place,” according to Chairman Dick McLean’s motion.
The Newcastle Board didn’t take official action. Ultimately, the agreement must receive voter approval at each town’s annual town meeting in order to take effect.
Newcastle Town Administrator Ron Grenier and Zinser made brief presentations about the interlocal agreement prior to discussion.
The agreement “allows for modification” and allows either town to “exit” with a 30-day notice to the other, Grenier said.
Zinser described the agreement as a “a cost-sharing, cost-avoidance agreement” that allows each town to “maintain its independence.”
The proposal focuses on “manpower” and “operational” issues, rather than large, capital expenses, Zinser said.
The draft agreement would install Steve Reynolds, Newcastle’s half-time Superintendent of Roads, Buildings and Grounds and a per diem Damariscotta employee, in a full-time position as the towns’ Superintendent of Roads, Facilities and Grounds.
Jeff Strachan, Damariscotta’s full-time foreman, would fill a 32-hour position as the foreman of both towns. The towns would also hire a seasonal laborer.
The salaries for each position and Reynolds’ benefits total $118,903.24 or $59,451.62 per town under the terms of the agreement.
At present, Damariscotta salaries, exclusive of benefits and exclusive of Reynolds’ per diem services, total $40,457 for Strachan and an unfilled seasonal position. Newcastle pays Reynolds a part-time salary of $25,000.
“As a whole, I’m very much in favor of this,” Dick McLean, Chairman of the Damariscotta board, said. “I think it’s a grand idea.”
McLean, however, said he wasn’t “ready to put my signature on something that doesn’t address in some way” Newcastle’s use of roads equipment owned by Damariscotta.
“If I was sitting on your side of the table, I would have the same questions,” Newcastle Chairman Ellen McFarland told McLean.
Damariscotta owns a 2008 Ford F-350 Super Duty (bought for approximately $42,000), as well as a $15,000 chipper, a $3000 striping machine, a $3000 trailer and an $1800 lawn mower, Zinser said.
Damariscotta sets aside about $5000 a year to replace the truck, Zinser said Feb. 17. Zinser and Grenier are discussing an amendment to the interlocal agreement to split appropriations to this fund at $2500 per town, per year.
Damariscotta selectmen cut a similar reserve fund for the chipper out of the budget three years ago. “That’s something that we’re going to have to talk more about,” Zinser said.
Damariscotta will not, at this point, seek compensation for use of the “fairly inexpensive” striping machine, trailer and lawnmower, Zinser said.
The draft agreement provides for an even split of vehicle maintenance ($625 per town) and fuel costs ($2500).
Newcastle Selectman Pat Hudson spoke about the potential financial impact of the agreement. “In order to sell this to the community, we’re going to have to demonstrate some kind of schedule for cost savings,” she said.
Under the agreement, the public works staff would perform “janitorial services,” allowing Newcastle to save by opting out of a “small” contract for such services, Grenier said.
Last summer, Damariscotta employees “replaced three culverts, ditched and paved for $3500,” Zinser said, a project that would have cost the town approximately $9000 to contract to an outside crew.
Officials from both towns agreed that the proposal could help the towns save in the future as maintenance costs grow.
“It’s to prevent the balloon from getting bigger and bigger for each individual town,” Grenier said.
“Damariscotta’s costs regarding roads are going to go up, with you or without you,” McLean said. “There’s a chance that this can mitigate something like that.”
Grenier, Zinser and Reynolds agreed to address the equipment issue as well as typographical errors. Both towns will forward the proposal to their respective fiscal boards (the Damariscotta Budget Committee and the Newcastle Finance Committee) for review.
McLean thanked Grenier, Zinser and Reynolds, who collaborated on the draft agreement, for “really clear thinking in trying to help us move forward.”
The twin villages discussed a similar proposal in 2010, but didn’t reach an agreement, due in part to opposition from former Damariscotta Selectman Josh Pinkham and current Selectman Vicki Pinkham.
Vicki Pinkham was not present at the Feb. 16 meeting.
