Winchendon board proposes $300,000 buyout for town manager

Winchendon board proposes $300,000 buyout for town manager
 By Paula J. Owen TELEGRAM & GAZETTE STAFF
WINCHENDON — Just five months after signing a renewal contract for Town Manager James M. Kreidler Jr., selectmen voted Monday to add a termination addendum to the contract that would end it May 1.

It will cost taxpayers nearly $300,000 to fund, if it passes at a special town meeting April 6.

Selectmen went into executive session Monday to complete Mr. Kreidler's mutually agreed-upon separation agreement. They had already met Wednesday in executive session for discussions on the matter.

When they reconvened Monday night in open session, they announced that the agreement had been reached and they scheduled a special town meeting for 7 p.m. April 6 at Murdock Middle High School for residents to vote on it. It is one of only two articles.

In a heated special town meeting Nov. 24, voters approved firing Mr. Kreidler, 290-135. Mr. Kreidler has held the position for 15 years.

The proposed termination agreement includes a joint statement by selectman and Mr. Kreidler: "The agreement recognizes the expressed will of the non-binding vote of Nov. 24, 2014, special town meeting regarding the town manager's continued service as well as the board's need to limit the town's liability for any decisions of future boards that cannot be supported by fact and therefore the town and Mr. Kreidler have collectively agreed that separation is in the best interest of all parties."

The agreement was reached with "guidance and advice" from the town's labor and employment lawyer, it says.

Under the agreement, Mr. Kreilder would resign on or before May 1. His contract runs through June 30, 2018.

The statement says selectmen have determined there is "no cause" for his termination and therefore, must offer him a buy-out to avoid a "protracted and costly" legal battle that could expose the town to a wrongful termination suit that could cost more than $2 million plus legal fees.

If it passes, Mr. Kreidler will receive a lump sum of $299,602 for 18 months' salary and benefits.

"This agreement will allow a new board to select a permanent town manager of its choosing without delay or legal exposure," it says.

Selectman Robert O'Keefe said he disagreed with the agreement.

"I'm not happy, but you wanted it done, so it's being done," he said.

Mr. O'Keefe was talking to a group of residents in the audience who have spearheaded recall efforts to oust selectmen with a goal of replacing them with candidates in favor of terminating the town manager.

The recall effort was initiated after the town discovered it was facing a $3.8 million deficit that required the passage of deficit legislation and cuts to the school and town budgets.

Danielle Hart is one of the co-leaders of the group "Stand Up for Toy Town," which is heading recall efforts to oust Selectman and board Chairman Fedor Berndt, whose term is not up until May 2016; and Vice Chairman Beth Hunt, whose term runs through May 2017. Ms. Hart said the "current board is to blame for any additional money needing to be paid to terminate his (Mr. Kreidler's) contract." Selectmen Keith Barrows' and Mr. O'Keefe's terms are up in May.

Ms. Hart said the group thinks there is just cause to terminate Mr. Kreidler's contract.

"There is a fiduciary duty to uphold," she said. "Mr. Kreidler failed in that responsibility — to the tune of millions of dollars … our current board should not have chosen to renew Mr. Kreidler's contract back in October … Residents want Mr. Kreidler out of his position, but they do not want to pay him for failing."

She said residents are looking forward to new leadership that will listen to residents' concerns.

"Residents are also looking forward to being able to contribute without fear of condescension and ridicule," she said. "And, they want leadership committed to working with the school system — not a constant head-to-head, secretive battle."

There are only four selectmen serving. A seat was left vacant when, in the midst of the announcement of the rising deficit, former Chairman C. Jackson Blair resigned. This happened just before the other four selectmen went into executive session and voted to renew Mr. Kreidler's contract, months before they were required to begin negotiations with him and despite the urging of some concerned residents for them to wait until more was known about what caused the deficit.

Mr. Berndt, Ms. Hunt and Mr. Blair had voted in favor of asking for Mr. Kreidler's resignation at a meeting just a few weeks prior, but later changed their votes. As part of his contract, a four-fifths vote is needed to terminate it.

At the time, school officials said they were concerned that the deficit legislation did not include any oversight and there was a lack of trust between the "current management team in town and the School Department" and alleged money was missing from their accounts.

Auditors told Winchendon officials a deficit in the insurance trust fund, a lack of communication, double accounting entries and inaccurate reports, and a crash in Munis — the town's financial software — which permanently damaged records, all contributed to the town's financial breakdown.

Contact Paula Owen at powen@telegram.com. Follow her on Twitter @PaulaOwenTG.