Barre Town terminates Barre agreement
Ends cost-saving deal to share sewer Vactor
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By David Delcore TIMES ARGUS STAFF - Published: November 5, 2009
BARRE TOWN – Scratch a sewer Vactor off the short list of joint ventures involving Barre and Barre Town.
This week the town's selectboard unanimously agreed to terminate a near-12-year-old cost savings agreement that paved the way for the two neighboring municipalities to jointly purchase an expensive piece of machinery that is used to clear clogged sewer lines and clean out catch basins.
The agreement dates back to March 1998, but was amended in 2007 and again in 2008 based on the town's concerns the city wasn't paying its fair share of maintenance costs.
Although those concerns were largely addressed by the amendments, Town Manager Carl Rogers said lingering issues involving the predictable availability of the Vactor prompted the town to make an offer on a used piece of equipment that will soon be replaced in Montpelier.
According to Rogers, Montpelier has accepted the town's $55,00 0 offer for its nine-year-old Vactor, prompting his request for authorization to terminate the agreement with Barre.
Under the terms of the agreement, the town must give the city nine months notice and the city has the option to buy the Vactor that is jointly owned by both municipalities for a mutually agreed upon price.
Rogers said officials from the two communities will soon meet to discuss that price and if they can't reach an agreement an independent assessment will be sought.
City Manager John Craig said he received word of the town's intentions Wednesday morning and is prepared to follow the process for terminating what he described as a "good agreement" that saved both municipalities money. He said it was too soon to tell whether the city would exercise its option to buy the jointly owned Vactor, or simply allow it to be sold and split the proceeds with the town.
"We'll have to take a look at that," he said. "We have 270 days to figure it out."
Although Craig said he wasn't prepared to second-guess the selectboard's decision, he said it "seemed strange¡± given tough economic times that have forced communities to candidly discuss ways to reduce expenses by working together.
"In a day and age when municipalities are looking for ways to share costs this (decision) … seems counter productive," he said.
With Montpelier's new Vactor expected to arrive in February, Rogers said the used vehicle, which is slightly newer than the one the town currently shares with the city, will be transferred at that time.
Although the purchase was not budgeted, Rogers requested and received permission to solicit proposals for a lease-financing arrangement that would enable the town to defer the initial payment for one year.
Meanwhile, board members who approved a five-year gravel road plan, a five-year building plan and the first reading of an ordinance that would prohibit the depositing of snow on public sidewalks, were told that the cost of employee health insurance will climb 17 percent effective Jan. 1.
According to Rogers, the increase is reflected in recent quotes from Blue Cross Blue Shield of Vermont – the insurer specified in contracts negotiated with some of the town's four labor unions.
Rogers said at least two of those unions are "reluctant" to switch insurers at this time, effectively forcing the town to re-up with Blue Cross instead of shopping for potentially better price to provide heath care coverage for the town's employees.
Board members authorized Rogers to sign the necessary renewal documents with Blue Cross, while expressing concern about the increase and a desire to bargain harder on that issue when union contracts expire.
"It goes to show we need to get a little more rigid when we go to negotiations again," board member Marion Fish said. "We can't afford these kinds of increases."
david.delcore@timesargus.com
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