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HomeMy WebLinkAbout2018-03-27 Board of Selectmen Minutes - Executive Session Town of Reading 0x Meeting Minutes °ps,ucor Board - Committee - Commission - Council: Board of Selectmen Date: 2018-03-27 Time: Building: Reading Town Hall Location: Conference Room Address: 16 Lowell Street Session: Executive Session Purpose: Version: Attendees: Members - Present: Chair John Arena, Vice Chair Barry Berman, Dan Ensminger, John Halsey, Andrew Friedmann Members - Not Present: Others Present: aa Town Manager Bob LeLacheur Minutes Respectfully Submitted By: 0<� Topics of Discussion: Collective Bargaining Review The details of this section are redacted until negotiations are completed. Health Insurance update The details of this section are redacted until negotiations are completed. Town Manager Contract The Town Manager reviewed a memo from the Town Accountant to himself and copied to the Chair and Vice Chair of the Selectmen.She cited the current Town Manager contract states there will be an annual increase on 8/1/17 to $82.00/hour from the previous $79.65/hour. She stated there were two conditions of the increase — a satisfactory performance evaluation and adequate appropriation. She noted that the Town Manager refused the increase and was still being compensated at$79.65/hour.She also noted that the contract had automatically extended by one year through July 31, 2019 because the Board did not give notice by February 1, 2018 to the contrary. That extension should receive an hourly rate of$84.46 in line with other non-union employees. The satisfactory evaluation was achieved last fall, and now in her judgement there is adequate appropriation with the line voted by Town Meeting for Administrative Services Wages in the current fiscal year. She received full backing from Town Counsel that neither the Town Manager nor the Board had any right to violate that contract as written. Page 1 The Town Manager explained that during the budget process one year ago he publicly described his desire to take no pay raise, given the financial condition of the Town. Given the ruling by the Town Accountant and Town Counsel, and the fact that the financial picture ahead of the Override vote was weak, he asked the Board to revise the contract and to allow him to accept the lower $79.65 rate through March 31,2018 and then a raise to$83.00 for the duration of the contract through July 1,2019. He explained that this would save the Town about $5,600 compared to the default situation of the contract. Selectman Halsey strongly objected to the Town Manager refusing the raise. He recalled the public discussion of refusing the raise and agreed he should have raised an objection then, thinking it was only a temporary deferral of pay. He reiterated his belief that compensation to the Town Manager was one of the few things the Board had direct control over, and that a clear message needed to be sent to all employees that the Board was fully supportive of both the Town Manager and of the staff. He described previous wrestling matches with the Town Manager when he was the Chair, where these same types of discussions were held. The Town Manager agreed with those recollections and how he had apologized to the Board for insisting on lower personal compensation in light of that explanation. Vice Chair Berman agreed with Halsey on all points. He cited this as another example of hiding the true cost of running the government. He noted the long hours the Town Manager works, well above and beyond the 40 hours/week of pay. He also objected to making any concession and asked the Board to honor the terms of the current contract. Chair Arena and Selectmen Ensminger noted that they had some opportunities to work with other communities, and to speak with other Selectmen. They both said that Reading was very fortunate to have the wisdom and dedication of the current Town Manager, and hoped that would be the case for many years to come. Berman agreed, asking when and how negotiations on a contract extension might happen? The Town Manager thought that no such discussion should happen until after the Override vote, and Selectman Friedmann agreed, as did the rest of the Board after some discussion. Halsey noted that compensation for the position was approaching and exceeding$200,000 annually in other communities, a level well above the pay in Reading. The Board agreed that under the direction of the Town Accountant that HR and Finance staff should conduct a survey of Peer Communities, both on pay, other benefits and copies of contracts. The current Town Administrator in Wakefield was cited as recently agreeing to two contracts for five years in total where his pay would rise above$200,000 annually. On a motion by Friedmann seconded by Halsey,the Board voted Berman-yes: Friedmann-yes:Arena- yes• Ensminger-yes: Halsey-yes to have the Town Accountant enforce the current contract as written, includine retroactive pay increase back to August 2017 The Board agreed that the Chair could sign anv interim documents as needed by the Town Accountant,as in oast practice. The Town Manager thanked the Board for their support and comments, and apologized that he thought his intentions for not accepting a raise had been made clearly in public. He stated that he never intended to imply any lack of support for himself or other Town employees from the Board. In fact, he simply viewed his own pay through the same financially conservative lens that he views every Town expense. He stated that he agreed with the legal points raised by the Town Accountant and backed by Town Counsel, and he would abide by the vote of the Board tonight. He further said that it would be a best practice, even though not legally required, to memorialize this discussion with a formal contract Page 1 2 amendment, and that Town Counsel asked the Board to vote on the amendment at their next full Board meeting in a public session. At that point the online contract would be amended for full public transparency. The Board agreed that a discussion about a contract extension should begin in the spring 2018 after Town Meeting and ideally conclude before the end of that summer. On a motion by Friedmann seconded by Halsey,the Board voted to adiourn Berman-yes: Friedmann- yes:Arena-yes; Ensminaer-yes: Halsey-yes. Page 1 3