WHEN THE STATE ENDED ITS SYSTEM OF COUNTY GOVERNMENT IN 1999
THE HAMPSHIRE COUNCIL OF GOVERNMENTS WAS FORMED AS A
CONSORTIUM OF MEMBER TOWNS WITHIN HAMPSHIRE COUNTY.
EARLIER THIS WEEK, THE COUNCIL ANNOUNCED ITS INTENTIONS TO
CEASE OPERATIONS, CITING A QUOTE “UNSUSTAINABLE FINANCIAL BURDE”"
AS ITS PRIMARY REASON FOR DOING SO.
THE COUNCIL'S TROUBLES ARE NOT RECENT WITH ONGOING ISSUES
PROMPTING THE WITHDRAWAL OF TWO MEMBER TOWNS, SOUTH HADLEY AND
BELCHERTOWN, OVER THE PAST TWO YEARS.
IT STILL HAS ONGOING FINANCIAL LIABILITIES, WHICH THE COUNCIL
HOPES TO RECONCILE BY SELLING THE OLD HAMPSHIRE COUNTY
COURTHOUSE IN NORTHAMPTON.
RAY HERSHEL SAT DOWN WITH HCG'S EXECUTIVE DIRECTOR TODD FORD
AND ITS CHAIRMAN RUS PEOTTER TO DISCUSS THE COUNCIL'S PLANS TO
DISSOLVE.
AND FULL DISCLOSURE: MR.
PEOTTER IS THE FORMER GENERAL MANAGER OF
THIS TELEVISION STATION.
>> WELL, I THINK MOST PEOPLE ARE AWARE WE MADE A PUBLIC
ANNOUNCEMENT OF OUR FINANCIAL SITUATION AND OUR PLAN TO
DISSOLVE WITH LEGISLATIVE HELP.
WE DID THAT ON WEDNESDAY AND WHAT WE'RE DOING IS CONTINUING
TO WORK WITH THE DELEGATION AND TO WORK WITH INTERESTED PARTIES
FOR THE HAMPSHIRE COURTHOUSE.
FOR INSTANCE, TODAY, WE HAD A TOUR FROM THE CHIEF JUSTICE AND
JOHN WILLIAMS FOR THE TRIAL COURT'S HEAD ADMINISTRATOR, THEY
TOOK A LOOK AT THE BUILDING AND THE SENATOR TALKED A LOT ABOUT
THE TIMELINE.
THE COUNCIL OF GOVERNMENTS WE FEEL HAS ENOUGH CASH TO MEET ITS
OBLIGATIONS UNTIL SOME TIME AFTER THE END OF JUNE BEGINNING
OF JULY, AND THEN WE'LL SEE WHAT HAPPENS NEXT.
>> MOST PEOPLE ARE WATCHING THE PROGRAM ARE WONDERING WHAT
HAPPENED WITH THE COUNCIL OF GOVERNMENTS?
BACK IN 1999 WHEN THE COUNTY SYSTEM OF GOVERNMENT WENT TO
BUNK, YOU HAD A LOT OF OPTIMISM FOR THE TRANSITION INTO THIS
FORM, THE COUNCIL OF GOVERNMENTS, BUT WHAT HAPPENED
ALONG THE WAY AND WHY ARE YOU IN THIS SITUATION YOU'RE IN TODAY?
>> WELL LET ME LET TODD TALK ABOUT THE STUFF IN THE MIDDLE IF
YOU DON'T MIND, I'LL TALK ABOUT THE BEGINNING AND END BECAUSE I
DIDN'T LIVE HERE THEN SO LEARNING ABOUT IT WAS KIND OF
FASCINATING TO ME.
WHEN COUNTY GOVERNMENT WAS ABOLISHED, ELECTIONS AND A FEW
THINGS WERE RATIFIED IN THE ELECTION OF '98, NOVEMBER OF
'98, THE COUNCILS -- DIFFERENT OPTIONS WERE CREATED IN
DIFFERENT PLACES.
HAMPSHIRE IS UNIQUE AND WHAT HAPPENED WAS I THINK WITH ALL
THE BEST OF INTENTIONS AND HOPES FOR THE FUTURE AS YOU JUST SAID
FOLKS CREATED A COUNCIL OF GOVERNMENTS THAT EVERY TOWN WAS
GOING TO BE A MEMBER OF.
THEY WERE GOING TO PAY AN ASSESSMENT OF ONE 10th OF A
MILL OF EVERY DOLLAR ON PROPERTY VALUATION AND THAT WAS A
SIGNIFICANT AMOUNT OF MONEY.
IT WAS GOING TO BE ALMOST $1 MILLION A YEAR AND GOT UP TO
$1.3 MILLION A YEAR.
YOU COULD RUN AN ORGANIZATION ON THAT.
UNFORTUNATELY, THERE WAS ALSO A LITTLE CLAUSE IN THE LEGISLATION
AND THE CHARTER THAT SAID THAT AFTER THREE YEARS, A CITY OR
TOWN COULD WITHDRAW.
AND THE BIG FOUR DID FOR REASONS THAT THEY HAD AND WERE PROBABLY
GOOD REASONS FOR THEM, BUT WHEN NORTHAMPTON AND WARE ALL PULLED
OUT THAT REALLY CUT THE REVENUES AND FROM THEN IT GOT TO BE
TOUGH.
>> JUST A MATTER OF TIME.
TODD, ANYTHING YOU WANT TO ADD IN TERMS OF -- TALK ABOUT THE
ENTITY ITSELF, THE PROGRAMS THAT WERE OFFERED THROUGH THE COUNCIL
OF GOVERNMENTS AND THE PROGRAMS THAT ARE STILL BEING OFFERED
TODAY AS WE SPEAK.
>> SURE.
ALSO THIS ISN'T NECESSARILY A SURPRISE.
THERE'S LETTERS DATING BACK FROM LITERALLY DAYS AFTER THE
FOUNDING OF THE ORGANIZATION LETTING THE STATE KNOW THAT IT
IS MOST LIKELY FINANCIALLY UNSUSTAINABLE WITHOUT THAT
ONGOING REVENUE STREAM OF THE MEMBERSHIP DUES.
SO THIS HAS REALLY BEEN GOING ON SINCE THE FOUNDING OF THE
ORGANIZATION.
AND IN BETWEEN THE ORGANIZATION CREATED BASICALLY FOR-PROFIT
MONEY-GENERATING SERVICES IN ORDER TO FILL IN THE GAP THAT
WAS LEFT WHEN THE ASSESSMENT WAS NO LONGER PAID.
AND SO THOSE REALLY CENTERED AROUND ENERGY, SO WE'RE THE
STATE'S ONLY NONPROFIT ENERGY SUPPLIER AND WE'RE SERVING
DOZENS OF COMMUNITIES AND BUSINESSES THROUGHOUT THE AREA.
WE ALSO GOT INVOLVED IN HELPING FOSTER THE LOCAL SOLAR
FACILITIES THROUGH THE SALE OF NET METERING CREDITS AND WE'VE
ALSO BEEN AT THE FOREFRONT OF HELPING WITH ALTERNATIVE HEATING
AND COOLING TECHNOLOGIES, AIR SOURCE, HEAT PUMPS, BIOFUEL
SYSTEMS, ETC. AND SO THOSE ARE REALLY THE PROFIT-GENERATING
ARMS OF THE ORGANIZATION.
AND THEN YOU HAVE THE COMMUNITY SUPPORT ARMS OF THE
ORGANIZATION, THE PROGRAM WHICH HELPS SET UP VOLUNTEERS OVER 55
WITH OVER 45 NONPROFITS IN THE AREA.
WE HAVE THE TOBACCO-FREE COMMUNITY PARTNERSHIP WHICH
WORKS WITH SCHOOLS TO HELP KIDS UNDERSTAND THE DANGERS OF
TOBACCO SMOKE.
WE HAVE A PURCHASING COOPERATIVE THAT HAS BETWEEN EIGHT AND $10
MILLION WORTH OF PURCHASING GOING THROUGH IT TO BRING BULK
SAVINGS TO SCHOOLS AND TOWNS THROUGHOUT THE AREA SO THOSE ARE
WHERE THE ORGANIZATION KIND OF FOUND ITS SUCCESS.
>> AND WHAT ABOUT -- IS THERE REQUIREMENTS AND HEALTH
INSURANCE FOR COUNTY EMPLOYEES INVOLVED IN THIS SITUATION AS
WELL?
>> AND SO THOSE FEES ARE REALLY THE OBLIGATIONS AND THE
FINANCIAL WEIGHT THAT IS BRINGING THE ORGANIZATION DOWN,
PAYING FOR THE OBLIGATION FOR THE 64 RETIREES THAT ONCE WORKED
FOR THE COUNTY HOSPITAL, PAYING FOR THE REQUIREMENT OBLIGATION
FOR THE SAME, THOSE COSTS ARE THE FINANCIAL ORGANIZATION.
>> MY NEXT QUESTION WOULD BE WHAT HAPPENS NEXT IN TERMS OF
THESE ENTITIES, THESE PROGRAMS, THESE COSTS THAT YOU MENTIONED?
WILL THEY BE SUSTAINABLE UNDER A DIFFERENT UMBRELLA?
WILL THEY CONTINUE IN TERMS OF SERVICE AND EMPLOYEES?
>> WELL, THE COSTS FOR THOSE RETIREMENT BENEFITS AND
HEALTHCARE BENEFITS FOR RETIREES, THAT'S WHAT WE'RE
TRYING.
THE REASON WE'RE LOOKING FOR A BUYER FOR THE COURTHOUSE, THE
REASON WE'RE TRYING TO MONETIZE SOME OF THESE ENERGY BUSINESSES
THAT WE'VE CREATED IS TO ACTUALLY CREATE A TRUST FUND
THAT WILL ACTUALLY FUND THOSE LIABILITIES FOR THEIR LIFETIME.
SO WE'RE TRYING TO DO -- THAT'S WHERE THE COSTS ARE GROWING.
FOR THE OTHER PROGRAMS THAT TODD JUST MENTIONED, THE RSVP
PROGRAM, TOBACCO-FREE, THOSE THINGS, WE'RE LOOKING FOR OTHER
AGENCIES WITHIN THE REGION TO TAKE ON THOSE PROGRAMS AND WE'RE
WORKING HARD THAT THEY WILL TAKE ON THE EMPLOYEES AS WELL SO THAT
WE CAN TAKE CARE OF THE PEOPLE WHO HAVE BEEN DOING THIS WORK.
>> WHEN YOU WEIGH THE BALANCE SHEET AND TALK ABOUT ASSETS AND
LIABILITIES CAN YOU GIVE US SOME NUMBERS AS TO WHAT THOSE FIGURES
INVOLVE?
>> SURE, THE LIABILITIES FOR THE RETIREMENT AND OPEB, WHICH IS
OTHER POST-EMPLOYMENT BENEFITS LARGELY HEALTHCARE, THE NUMBER
FOR THAT, THE PRESENT VALUE IF YOU HAD THIS MONEY IN THE BANK
YOU COULD PAY THESE BILLS FOREVER IS ONLY $4.7 MILLION.
WE BELIEVE IT'S GOING TO TAKE ANOTHER 800,000 OR SO TO WRAP UP
THE ORGANIZATION TO PAY OTHER OBLIGATIONS, PAY LEGAL FEES AND
THINGS LIKE THAT.
THE ORGANIZATION NEEDS TO MONETIZE ABOUT FIVE AND A HALF
MILLION DOLLARS.
AND WE BELIEVE WE HAVE MORE ASSETS THAN THAT WITH THE
COURTHOUSE.
>> AND LET'S TALK A LITTLE BIT ABOUT THE COURTHOUSE.
CERTAINLY, AN ICONIC STRUCTURE IN DOWNTOWN NORTHAMPTON.
WHAT WOULD YOU LIKE TO SEE HAPPEN WITH THAT?
WHAT WOULD BE THE BEST-CASE SCENARIO FOR THE COUNCIL OF
GOVERNMENTS WITH REGARD TO THAT COURTHOUSE, TO SELL IT TO THE
STATE, FOR EXAMPLE?
WHAT'S YOUR HOPE THERE?
>> I THINK AT THIS POINT THE BEST-CASE SCENARIO IS TO SELL IT
FOR THE STATE FOR CLOSE TO ITS VALUE IN ORDER TO SET UP THAT
TRUST FUND TO PAY FOR THOSE OBLIGATIONS.
AND THAT BUILDING IS ICONIC, NOT ONLY FOR NORTHAMPTON BUT FOR THE
REGION.
IT'S ONE OF THE ONLY OTHER OPEN SPACES IN THE CITY, VERY ACTIVE
LAWN THAT WE'VE MADE AVAILABLE TO THE COMMUNITY FOR A NUMBER OF
EVENTS AND SERVICES.
FOR ME, IT'S IMPORTANT THAT THAT FIELD REMAIN IN PUBLIC USE, THAT
IT BE RESTORED TO ITS FULL POTENTIAL AND THAT THE SPACE
AROUND IT CONTINUE TO BE OPEN TO THE COMMUNITY TO BE USED FOR
THOSE EVENTS LIKE THE CANCER CONNECTION CAMP, THE SUMMER
CONCERT SERIES.
>> IS THE STATE THE BEST OPTION FOR THAT BUILDING?
>> IN MY OPINION, YES.
>> THE BUILDING REALLY DOES NEED TO BE PUT TO PUBLIC USE.
IT'S A VERY OLD DEED, IT'S HAND WRITTEN FROM 1767.
IT BASICALLY STATES IF IT DOESN'T GO TO PUBLIC USE IT
PROBABLY WOULD GO BACK TO THE CITY AND SO THE IDEA OF TURNING
IT INTO CONDOS OR SOMETHING LIKE THAT ISN'T ON ANYBODY'S MIND.
THE STATE IS CERTAINLY THE BEST OPTION, AND I THINK D.A.
SULLIVAN DID A REALLY MASTERFUL JOB OF DESCRIBING AN IDEA OF
WHAT A USE BY THE TRIAL COURT AND JUVENILE COURT AND OTHER
SYSTEMS COULD BE TO MAKE IT A PUBLIC SPACE, A WELCOMING PUBLIC
SPACE RIGHT IN THE MIDDLE OF DOWNTOWN.
>> AND I KNOW YOU'VE BEEN IN CONTACT WITH YOUR LOCAL
LEGISLATIVE REPRESENTATIVES.
CAN YOU TALK ABOUT THE TIE-IN WITH THE LEGISLATURE AND/OR YOUR
LEGISLATORS IN TERMS OF GETTING THEIR HELP TO GET THE SITUATION
RESOLVED FROM YOUR STANDPOINT.
>> WE'VE -- AT THE END OF THE CALENDAR YEAR, RIGHT BEFORE THE
LEGISLATURE IS TURNED OVER, REPRESENTATIVE STEVE KULICH
FACILITATED A MEETING WITH THE LEGISLATORS TO KIND OF TALK WITH
THEM ABOUT WHAT'S GOING TO HAPPEN NEXT.
SINCE THEN, THE SENATOR'S OFFICE HAS BEEN THE POINT AND
COORDINATING WITH THE ENTIRE DELEGATION, INCLUDING THE MAJOR
ONES, DAN CAREY IN EAST HAMPTON AND NATALIE BLAY ON THE HOUSE
SIDE AND THE OTHER SENATORS, ADAM HEINZ AND EVEN THE ONES
THAT ONLY HAVE A PIECE AND SO THE WHOLE DELEGATION HAS BEEN
INVOLVED AND FRANKLY, THEY'VE BEEN VERY, VERY HELPFUL BECAUSE
ULTIMATELY, THIS WILL BE A LEGISLATIVE SOLUTION.
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