Subcommittee seeks standard pilot policy, sample contracts and DLS grant to pursue tax-exempt payments

Marshall Everett, chair of the Springfield City Council pilot revenue subcommittee, said the committee will press ahead with a plan to develop a citywide pilot strategy and pursue outside help to craft sample policies and a standard pilot contract.

Jayla Torley, a committee member who met with the Collins Center on behalf of the city, told the subcommittee the Center plans to produce a statement of work within about 30 days outlining seven objectives, including an inventory of existing pilots, a review of tax-exempt parcels with the assessor, a summary of other municipal pilot policies, and negotiation strategies. “In order for the city to be successful with the pursuit of pilot agreements, the city has to have an agreed upon pilot strategy,” Torley said.

The Collins Center, Torley said, also recommended a standard pilot contract the city could use to reduce reliance on informal “handshake” agreements. Torley summarized the legal rationale the consultants offered: a written contract, she said, would allow the city to pursue contract remedies if an agreement partner stopped contributing payments.

Torley said she had asked the Collins Center for sample policies and sample standardized contracts used elsewhere in Massachusetts, and that the Center has experience with two dozen pilot agreements across the state. She reported that the Collins Center expects to deliver a draft scope of work that the subcommittee can review and critique at its next meeting.

The subcommittee discussed funding for that work. Torley and other staff said they are preparing to apply for a Department of Local Services (DLS) grant (the application window was described as in August). Torley said she was told by the Collins Center that “the sweet spot for the award is about, you know, dollars 40,000.” Finance staff cautioned that some grants will not reimburse costs incurred before an award; Sequoia Malone of the grants team was asked to check the DLS application rules and report back about pre-award expenditures.

Members raised practical questions about process and timing. Several councilors said they would have preferred the Collins Center attend a full subcommittee meeting so members could ask questions directly. The committee agreed Torley will circulate the Collins Center notes and follow up to request sample policies and sample contracts; the solicitor and the mayor’s office will review the materials once received.

Separately, the subcommittee received an update on proposed state legislation related to hospital pilot agreements. Staff said a recent change to the bill would exclude “high payer” hospitals (those receiving a high share of Medicaid/Medicare and public-care reimbursements); staff cited percentages discussed in the meeting (comments referenced “over 60%” and “over 63%” as thresholds) and noted that Baystate and Mercy would fall into that category under current formulas. Staff said that exclusion would remove hospitals from eligibility under the pending legislation, although a hospital could still voluntarily enter a local “good neighbor” agreement with the city.

There were no formal votes recorded during the meeting. The subcommittee concluded it is in a holding pattern while staff obtain the Collins Center’s scope of work, sample policies and standardized contract language, the grants team checks eligibility rules, and administration consults the mayor and solicitor about next steps and potential budget options.

What’s next: Torley will email meeting notes and the Collins Center’s forthcoming scope of work to committee members, request sample policies and contracts from the Collins Center, and Sequoia Malone will check whether DLS allows reimbursement for costs incurred before a grant award. The subcommittee expects to review the Collins Center’s scope at its next meeting and to consult the solicitor on standard contract language.