A bright idea on the horizon. At Bernstein Shur, our government experts stepped in—and helped bring it all together.
In recent years, it has become clear to growing numbers of people that Maine—like many other states in the country—is burdened with too many small school districts, governmental organizations, and other piecework entities that often date back a century or more and cost a great deal to run.
So it came as no surprise when a government study in Augusta, Maine's capital city, found that the city could save hundreds of thousands of dollars a year by merging the Augusta Water District and Augusta Sanitary District into the city government.
Complications—in spades
The real surprise, however, came when the sheer practical and political complexities of the task reared their heads. The two utilities served different, overlapping geographic regions around the city. They had two boards of directors, two management teams, and two groups of employees (who were members, in most cases, of different unions)—all trying to work with the city, the city council, and the affected surrounding municipalities. Who would own the utilities' assets? Who would pay for their liabilities? How would valued employees be affected?
The city of Augusta wisely simplified the problem at a stroke by dropping the requirement that the districts be merged into the government, urging instead that the districts consolidate into a single utility—in just 12 months!
Off and running
The two districts turned to attorneys at Bernstein Shur, who then called on the significant political and governmental expertise of colleague Kay Rand, managing director of the firm's affiliate Bernstein Shur Government Solutions (BSGS). Rand is a well-known fixture in Maine state government, having spent 12 years representing the Maine Municipal Association before the legislature and eight years as chief of staff to Governor Angus King.
Thanks to the good faith and civic-mindedness of the district's board members, Rand's team guided the boards and management in taking a fresh, practical-minded look at the challenges facing them—helping lower tensions and build renewed trust. They created a detailed strategic plan and timetable reflecting the true scope of the task and negotiated an agreement with the city that gave the districts until 2007 to execute the consolidation.
Specialized expertise
The team also made creative use of a little known and under-utilized state law to devise an interlocal agreement allowing the two boards to delegate their governance functions to a new joint board. They pored over the districts' charters to rebalance authority, streamline day-to-day decision-making, and combine the two management hierarchies.
In addition, the team called on Bernstein Shur attorney Linda McGill for her labor expertise and strong understanding of the processes and laws administered by the Maine Labor Board. Working in cooperation with the city's professional staff, they consolidated non-union personnel, re-organized union personnel into a new bargaining unit (a challenge for which there had previously been no settled legal method), negotiated new contracts, and created new job descriptions along with a common organizational chart, pay scale, and benefits package.
Not least, they deftly helped merge the cultures of the two former districts.
The power of teamwork
Meanwhile, Rand worked from the ground up to help build positive media exposure for the consolidation, laid the groundwork to make sure that the right political support was in place, and then shepherded the consolidated utilities' charter bill successfully through the state legislature.
A success story for Maine
There were last-minute dramas. But in the end, the bill faced referenda in Augusta and Hallowell and passed with flying colors. A victory for taxpayers, common sense, and cost savings. And possibly, in the years ahead, a model for similar consolidations across Maine and the United States.
Municipal and Regulatory Group
Labor and Employment Group