Select Board Meeting Minutes 4/11/24

Select Board Minutes of the meeting of 4/11/24

Meeting Opened at: 2:00 pm

Select Board Members Present: Susan Cooper and Frank Abbott (acting as co-chairs)

Select Board Members Absent: Justin Makuc

Also present: Roger MacDonald (Town Administrator)

Also present remotely: Chris Brown (Harrington Heep)

Agenda: Consultation with Counsel and discussion of issues relating to Fire Company lease and Fire Department compensation.

• Susan asked Frank if the $50,000 currently in Fiscal Year (FY) 2025 budget for the Fire Company (FC) lease is meant to include money for capital projects.  Frank replied that based on the FC’s tax returns, building operations in 2022 were approximately $44,000, and he suggested the $50,000 to make sure basic operational costs were covered. 
• Susan asked Town Counsel Chris Brown to clarify correct procedure for the Town to properly comply with prevailing wage law regarding capital improvements at the Fire Company property.  Would it be acceptable if the Town approves capital improvement monies and holds those monies, dispersing to the FC upon their submission of bills or other accounting for the approved project(s)?  Chris said that the more control the town has over that project, the more questions might be asked.  Susan noted that providing the approved capital monies to the FC in advance of a project does have the advantage of making it clear that the town is not directing the project.  For example, if the capital monies were included in the rent.  How do we guarantee transparency and make sure we follow the law?  Chris replied that he and Frank have discussed several options with the FC:  breaking down the rental payments to include capital improvements, requiring them to commit to a schedule of projects, and having a complete and accurate accounting of how the monies were spent.  Susan raised the issue of insuring the pool of money was adequate for a project’s completion.  Chris replied that the FC needs to provide estimates, and you have to make best estimates based upon that.  Frank reiterated the need for solid estimates.  Frank asked if we do have the option of holding the monies until the work is done?  Chris replied that it is an option, but noted that Frank had indicated the FC might not have sufficient monies to complete the planned project.  Frank prefers the option of paying for work that has been done.  Chris noted that in municipal finance you usually do not pay in advance of service delivery.  Frank feels confident we can work out a process for payment with the existing capital funds.  Susan is less concerned about the existing monies than about how we allocate those monies going forward.  The Fire Chief seems to feel that the rental monies should include money for the capital projects.  Frank replied that the town has a consistent policy of voting on capital improvement projects and equipment for every department and project.  Susan agreed.  Susan asked Chris if other towns ever lease commercial buildings.  Chris replied that that is done, and rental rates might well include monies for capital improvements.  Roger added that Needham did occasionally lease commercial properties, although he does not think the Town was explicitly billed for any improvements.  Chris explained that the Fire Company would be directing and controlling the construction, not the Town, and therefore we minimize issues surrounding prevailing wage.  Frank reiterated that either the lease is just operating costs or it incorporates capital expenditures, and we vote on all other capital projects separately.  Roger noted that if we incorporate major capital monies into the lease, the rent jumps precipitously, but more importantly is not likely to go back down.  Frank noted that they are not a commercial operation.  Susan pointed out that they are not asking for a commercial rate per square foot.
• Frank raised the question of whether the FC was considering enlarging the building, particularly if we move toward a district.  Susan pointed out that even with a district, there might be little need except for possibly housing an ambulance, because with the logistical concerns from a large geographic area and the importance of response time, we would still need additional stations.
• Susan emphasized the importance of a shorter more reasonable lease, something perhaps three pages or less rather than fourteen pages.  Chris said that the copy he gave Frank was not the lease that would be presented, it was just a standard lease they had on hand to serve as an example.  Since he is a lawyer, he isn’t sure he can get it down to only three pages, but it will be shorter than 14 pages.  Chris left the meeting.
• Susan reiterated that from her conversations with Shawn, Shawn views the lease as incorporating capital monies.  Frank suggested that it is really important that we are all at the table at the same time so we can have clarity.  Susan responded that the SB needs to have a coherent plan, or even Plan A and Plan B, so when we sit down can have greater clarity.  Frank provided the summary of the recent proposals from both sides.  Susan reiterated that their numbers are high because it includes the capital monies.  Susan reminded everyone of the history of the division between the Select Board and the Fire Company.  Frank noted that that was a long time ago (he was in elementary school!), and we need to move forward.  Susan clarified our outlook that the Select Board understands why the Fire Company would prefer to have the capital monies in the lease, but that if the town is paying for the capital improvements, the taxpayer’s have a right to know what the projects are and vote on how their monies are spent.  Frank noted that it is important not to commit large amounts of capital monies years in advance.
• Roger suggested that the first year’s lease of $60,000 is likely to be acceptable for this year based on his conversations with the Fire Chief.  He agreed that the Fire Company would prefer to put the capital monies right into the lease.  Frank truly wants it to be a partnership, but there has to be transparency.  Frank thinks raising the lease line to $60,000 is acceptable, but thinks we do need solid financial numbers on operating costs going forward.  Susan pointed out that the Fire Company did highlight many of the other incidentals in their proposal, including fundraising and accounting.  Frank just wants to have transparency on accounting, and Susan said she wants our expectations clearly spelled out so everyone is clear.  Frank reiterated that we should not make a huge multiple year commitment to large capital costs.  Roger suggested that perhaps we should offer $60,000 for this year’s lease, with a list of prioritized capital projects for the existing $90,000 of capital monies already held.  Then we can meet again in the fall, and if the Select Board and Finance Committee are willing to go forward with a significant capital item we will be able to go forward to town meeting with a united front.  Frank noted that the committee always felt there should be a cover letter or memorandum of understanding about our commitment to the clear capital needs; but he would like to see the Company get the books in solid.  Susan agreed that $30,000 a year isn’t going to add up fast enough, and she would rather put a real number forward and just get it done.  We need to make sure we can get timely bids to get a realistic number on the warrant.  Susan suggested broader wording to make sure that monies can be used for the various projects. 
• Susan and Frank acknowledged the difficulty of frequent turnover in boards.
• Frank said he thinks it is important to begin conversations with Select Boards in other towns we might work with, to work things from both angles.  Susan noted that there are a lot of egos involved (Frank agreed), and trying to work out functional relationships in smaller ways is a way of testing the waters to see if it can work.  Frank likes the idea of working with Otis since they have already shown willingness in working with Becket, and Susan agreed.  Susan expressed concerns about working with Sandisfield right now regarding shared police services.  Susan agrees it would be good to have us all at the table for a meeting but is worried about timing.  Frank is okay with putting the $60,000 into the budget and working the details out.  Susan noted that the Fire Company is not going to love that the capital monies are not in there, but at the end of the day we have solid reasons for not proceeding that way.  We have fiduciary responsibility for how those monies are used.  Frank knows how hard they work and how dedicated they are.
• Susan explained that some of the numbers we gathered regarding calls answered are clearly incorrect and we need to get more accurate numbers.  Roger said that Shawn had dropped off some information that might be helpful.  Roger noted some difficulties with using the payroll system for this type of information, but he thinks the data Shawn provided is more accurate.  A discussion ensued about both improving reports through the payroll system and payroll system function.  Roger will be training further with Harpers and will report back on if and how the system can be further improved.
• Susan pointed out that at nearly 200 calls per year, that’s about 4 a week on average.  People are putting in a huge amount of effort.  The Fire Company is asking for us to recognize the extent of their contribution, and the question becomes how we do that.  Frank agreed that they are dedicated and passionate, but that we need better data so that we can make sound decisions.  If we are paying them to manage it, they we need a job description that makes it clear what the responsibilities are.  Susan floated several ideas.  If we are remunerating for lost work time for daytime calls, we should raise the call pay rate.  If they are answering 80 daytime calls at only 2 hours per call, that’s an entire work month of lost hours.  Alternatively, if it is the management that is creating a further burden, then we can craft job descriptions to support those roles.  Frank agreed that these are real burdens, but we may have to do things incrementally.  We are also voting on a $1,050,000 fire truck.  Roger said he spoke with Shawn about the same idea, that it may need to be incremental.  Meanwhile the Fire Chief is concerned about upcoming retirements.  There was general consensus that there can be a path forward.  Roger noted that the Chief is struggling with the ideas of a full time fire department, a fire district. combined Fire and EMS services, and a multitown cooperative department.  Frank reiterated that the Chief needs to accept help with this process.  Discussion ensued regarding how much money should go into the budget for stipends, and if they would be directed toward planning for the future of the Fire Department and joint services.  Delegation is going to be crucial.  We are going to need clear numbers comparing an independent paid service, a district and joint services with other towns.
• Meeting was adjourned at 3:31 pm.

Documents used at the meeting

1. None

Minutes drafted by: Susan Cooper

Minutes approved by: Select Board