Coalition of NH Municipalities File Motion to Intervene on LGC Supreme Court Appeal

Towns of Durham, Northfield, Peterborough, and Salem NH

Coalition of Municipalities File Motion to Intervene with NH Supreme Court on Appeal of the Local Government Center, Inc. (LGC) CASE No. 2012-0729

Allege LGC Discriminatory Business Practices in Return of Ordered Surplus Funds

1/17/13

The Towns of Durham, Northfield, Peterborough, and Salem, NH, on behalf of a coalition of fourteen municipalities (Auburn, Bennington, Canaan, Durham, Greenfield, Henniker, Lyndeborough, Meredith, Northfield, Peterborough, Plainfield, Raymond, Salem and Temple), today have filed a motion to intervene in the Appeal of the Local Government Center, Inc. v. NH Bureau of Securities Regulation case presently before the NH Supreme Court. 

The action marks an unfortunate turn of events in which municipal taxpayer funds are now being diverted to litigate the very organization charged with representing the interests of towns and cities across NH, as well as the public agency charged with regulating it.

The Bureau of Securities Regulation (BSR) found wrongdoing in the management of the Local Government Center’s risk pools. It ordered millions of dollars held by the Local Government Center (LGC) to be returned to current members of the pools.

Durham Administrator Todd Selig states, “The BSR, however, did not distinguish among members. Some joined the risk pools early or late, some left early or late, and some joined, left, and later rejoined. By ordering the money returned to current members, it created windfalls for some, but inadequate recompense for others. That is, some members will receive an arbitrarily larger share than their contribution, and some an arbitrarily smaller share.”

To fix this, the four towns have petitioned the NH Supreme Court to allow them to intervene, and to address the hearings officer’s failure to fashion a remedy that will allow refunds in proportion to members’ contributions. Due to the dates they joined and left, these four – Durham, Northfield, Peterborough, and Salem – believe they represent all members whose share of the refund will be inadequate compared to the share of the money they contributed.

LGC Case Background & Details on Coalition of Communities' Petition to NH Supreme Court

In the Order dated August 16, 2012, State of NH hearings officer Donald Mitchell found that the Local Government Center (LGC) had engaged in actions or inactions that resulted in multiple violations of RSA 5-B. 

These statutory violations, which commenced in 2003 and continued through 2010, were attributable to, amongst other things, a failure by LGC to distribute to Trust members on an annual basis excess earnings and surplus, improper transfers of monies from the Health Care Trust and Property Liability Trust to the Workers Compensation Trust, and a transfer of the Health Care Trust’s and Property Liability Trust’s respective interests in real estate to the Local Government Center Real Estate Inc. without consideration.

Salem Town Manager Keith Hickey states, “In sum, the Order found that but for these illegal actions, there would have been additional excess earning and surplus that would be available to return to LCG members on an annual basis – members such as Durham, Northfield, Peterborough, and Salem.”

The Order: What The LGC Has To Pay Back

$33.2 million from HealthTrust

$17.1 million the Property-Liability pool siphoned from HealthTrust

$3.1 million from Property-Liability for communities that joined after June 14, 2010

Total: $53.4 million

As no agreement was presented to the hearings officer within 30 days of the Order as required, the LGC proposes to issue refunds to those who were members of its Health and Property Liability Trusts as of 8/16/12, the date of the Order. 

Durham, Northfield, Peterborough, and Salem contend that such a refund would not meet the standard articulated in the Order that refunds shall be “in proportion to each member’s contributions to that standing amount of earnings and surplus.” 

Durham Administrator Todd Selig states, “The return of tens of millions of dollars by the LGC to its members of the Health Trust and Property-Liability Trust programs is mandated by the hearing officer’s order to be in proportion to each member’s contributions.  Durham, Northfield, Peterborough, Salem and other political subdivisions contributed to the surplus with taxpayer funds.  Those funds should therefore be returned.  It is an issue of basic fairness and equity -- no more, no less.”

Durham, Peterborough, Salem and many other political subdivisions would have been able to recoup a refund had its operative date been June 14, 2010 – the date set by the Order if the BSR and LGC reached an agreement.

Northfield and many other political subdivisions who left the LGC prior to June 14, 2010 would have been able to recoup a refund had the remedy required a re-calculation of surplus on an annual basis, with the surplus distributed annually, based on annual membership rolls and the premiums paid by members and former members each year.

The NH Supreme Court has equity jurisdiction to fashion a refund remedy that is in proportion to each member’s contributions to that standing amount of earnings and surplus.

Durham, Northfield, Peterborough, and Salem and scores of other political subdivisions across NH contributed to the creation of the illegal LGC surplus, but per the terms of the Order and the position taken by the LGC, they are not eligible to participate in the distribution of surplus because they terminated their Trust membership prior to 8/16/12. 

Northfield Town Administrator Glenn Smith states, “The municipalities have requested the NH Supreme Court to determine an equitable approach to distributing the surplus generally requiring the LGC to calculate the amount of surplus that accrued each year from the year that the LGC first unlawfully retained excess surplus, and to allocate the surplus proportionally amongst the members of the Trusts by year.” 

“Such an annual, proportional remedy calculation could be applied and would be equitable,” states Town Manager Hickey.

Peterborough Town Administrator Pam Brenner states, “The information provided by the LGC in response to Durham, Peterborough, and Salem’s RSA 91-A request reveals that in any given year, the membership of the Trusts changed.  Awarding the refund based on the August 16, 2012 Order date does not capture accurately the amounts that Trust members contributed to the Trusts over the time that the surplus accrued.”

Selig states, “Public employees paid a significant portion of the health care premiums, and presumptively they will receive from their employers a corresponding portion of any health care surplus refund payment.  The existence of such public employee health care premium contributions underscores the importance of achieving an accurate and equitable distribution of any Trust surplus.  Only the NH Supreme Court can remedy the inherently inequitable situation at this juncture.”

Durham, Northfield, Peterborough, and Salem, as Intervenors, have requested of the NH Supreme Court that their Motion be granted, and that they be allowed to brief before the NH Supreme Court two issues:

1.  Whether the hearings officer erred in failing to fashion a remedy that will allow that refunds shall be in proportion to each member’s and former member’s contributions to that standing surplus amount and earnings?

2.  Whether the NH Supreme Court should exercise its equitable powers to fashion a remedy that the calculation and refund of any surplus shall be in proportion to each member’s or former member’s annual contribution to said illegal surplus, or such other equitable remedy as the Court shall see fit?

In December 2012, the towns of Auburn, Bennington, Canaan, Durham, Greenfield, Henniker, Lyndeborough, Meredith, Northfield, Peterborough, Plainfield, Raymond, Salem and Temple filed a formal complaint regarding LGC discriminatory business practices with the NH Bureau of Securities Regulation.

Subsequent to the filing with the BSR, the Bureau of Securities Regulation’s outside counsel, Andru Volinsky told Annmarie Timmins of the Concord Monitor, “The bureau will need to look at this…There is nothing in the law that says you have to be a member to get your surplus back.”

Town Administrator Pam Brenner states, “To date, the Towns have received no formal response from the BSR.”

The motion to intervene filed by Concord Appeals Attorney Joshua L. Gordon may be found on line at http://appealslawyer.net/do/briefs/Petition_to_Intervene_w_appx.pdf. 

Twelve Municipalities File Formal Complaint with NH Bureau of Securities Regulation Citing Discriminatory Local Government Center (LGC) Business Practices

Towns of Durham and Peterborough, NH

PRESS RELEASES

Twelve Municipalities File Formal Complaint with NH Bureau of Securities Regulation Citing

Discriminatory Local Government Center (LGC) Business Practices

12/10/12

Dissatisfaction with the New Hampshire Local Government Center’s proposal to “refund” more than $52 million in surplus funds that the NH Bureau of Securities Regulations hearings officer has ordered to be returned to NH municipalities and school districts has prompted a dozen municipalities to file a formal complaint with the NH Bureau of Securities Regulation.

The towns of Peterborough and Durham, along with ten other municipalities (Auburn, Bennington, Canaan, Greenfield, Henniker, Lyndeborough, Northfield, Plainfield, Raymond and Temple), have written a December 7, 2012 letter to Director Glennon of the NH Bureau of Securities pointing out that the LGC’s proposed refund through the issuance of future insurance premium “holidays” to current LGC members will not include those municipalities and school districts that contributed to the creation of the surplus funds, but that have recently left the LGC and taken their insurance business elsewhere.

Peterborough Town Administrator Pam Brenner and Durham Administrator Todd Selig state that the letter to the Bureau of Securities Regulation calls attention to the discriminatory effect of the LGC’s proposed refund that fails to return cash to the former LGC members.  Ms. Brenner and Mr. Selig indicate that there are at least 20 NH municipalities and school districts that are in the same position as Peterborough and Durham: they were members of the LGC when the illegal surpluses were allowed to accumulate, but the reimbursement of a pro rata share of the surplus funds to these former LGC members is not being proposed by the LGC.  This is patently unfair to local taxpayers from these communities whose annual insurance premiums to the LGC were utilized to amass significant illegal reserves by the organization, one of the largest public risk pools in the nation.

The New Hampshire Secretary of State’s Office, through the Bureau of Securities Regulation, argued LGC practices were illegal.  They contended that the LGC was amassing money by overcharging cities, towns, and school districts for health insurance and not returning enough surplus to member communities. Hearing officer Donald Mitchell agreed.  In August 2012, he ordered the LGC to return more than $52 million to communities. 

The Order: What The LGC Has To Pay Back

$33.2 million from HealthTrust

$17.1 million the Property-Liability pool siphoned from HealthTrust

$3.1 million from Property-Liability for communities that joined after June 14, 2010

Total: $53.4 million

Selig, Brenner, and the other municipalities find the notion that communities, and more specifically local taxpayers, cannot receive a refund in cash and that entities have to be a continuing customer of the LGC organization to participate in the surplus refund to be an incredible and outrageous position.  It is patently unfair to local taxpayers.

The municipalities have called upon Director Glennon and the Bureau to investigate this discriminatory refund proposal.  Ms. Brenner and Mr. Selig state that it is common sense that since the LGC had an obligation to perform an audit and an actuarial analysis of the insurance programs, and then refund any surplus funds on an annual basis, the refund of funds should be calculated on an annual basis and credited to the members of these insurance program on an annual basis.  The refund process must both be fair and transparent.  Municipalities, school districts, and their employees were contributors to these insurance programs on an annual basis.  The premiums were calculated on an annual basis, and the contributions to pay for the premiums were made on an annual basis.  Each year, the identity of those municipalities and school districts that were members of the insurance programs changed. 

These municipalities believe that after all of the problems with LGC programs that have been identified by the BSR, is it asking too much to have a plan to refund the surplus to the taxpayers of members communities, by year of participation, in cash?  Is it asking too much to get the refund right so that taxpayers of communities that contributed to the illegal LGC surplus receive their fair share of the ordered refund?

Peterborough, Durham, and the other affected communities await a prompt response from the Bureau of Securities Regulation and the LGC on this important fairness issue.

Durham Presidential Election Results - 11/6/12 | Durham Shatters Its Own Record for Same Day Registrations (over 3,000 registrations in 12 hrs)

A thank you is extended to Town Moderator Chris Regan, Town Clerk/Tax Collector Lorrie Pitt, Supervisor Chairperson Ann Shump, Supervisor Judy Aikens, Supervisor Roni Pekins, and to the many, many other faithful volunteer election workers and officials who pulled together to make today’s Presidential election in Durham success. In total, 7,387 ballots (unofficial) were cast over the course of the day today at the Oyster River High School.  In 2008, a total of approximately 8,000 ballots were cast.

Durham shattered its own record for registering voters on Election Day. In all, 3,024 people registered just before casting their ballots - about 1,300 more than registered on the same day of the presidential election in 2008. To put this in perspective, during the 12 hours the polls were open on Tuesday, Durham added more new voters to its rolls than most New Hampshire towns and cities (two thirds of them) already had pre-registered before the election.  

The poll in Durham is the largest single polling location in Strafford County.  

Unofficial Durham election results follow (does not include write-ins which are not anticipated to materially alter the results):

FOR PRESIDENT

Mitt Romney - 2208

Gary Johnson - 102

Virgin Goode - 5

Barack Obama - 5026

FOR GOVERNOR

Ovide Lamontagne - 1855

John Babiarz - 267

Maggie Hassan - 4784

FOR REPRESENTATIVE IN CONGRESS

Frank Guinta - 1950

Brendan Kelly - 335

Carol Shea-Porter - 4462

FOR EXECUTIVE COUNCIL

Michael Tierney - 1984

Colin Van Ostern - 4185

FOR STATE SENATOR

Peter Macdonald - 1812

Martha Fuller Clark - 4488

FOR STATE REPRESENTATIVE

(vote for not more than 5)

David Childs - 1985

James Ziegra - 1805

Janet Wall - 5427

Philip Ginsburg - 3986

Timothy Horrigan - 3868

Marjorie Smith - 4006

Judith Spang - 3704

FOR SHERIFF

Joseph DiGregorio - 2034

David Dubois - 3829

FOR COUNTY ATTORNEY

Thomas Velardi - 5696

FOR COUNTY TREASURER

Pamela Arnold - 4381

FOR REGISTER OF DEEDS

Lynn Williams - 1606

Kevin McEneaney - 1023

Dennis Vachon - 3148

FOR REGISTER OF PROBATE

Patty Cole - 4187

FOR COUNTY COMMISSIONERS

(vote for not more than 3)

Catherine Cheney - 1779

Mac Kittredge - 1608

Diane Wood - 1625

Leo Lessard - 3747

George Maglaras - 3589

Robert Watson - 3528

CONSTITUTIONAL AMENDMENT QUESTIONS: 1.  Income Tax Prohibited  Yes - 2888;   No – 3178 2.  Supreme Court Administration Yes - 2441; No – 3474 3.  Constitutional Convention Yes – 2266; No - 3723

Please have a good evening. Todd Todd I. Selig, Administrator Town of Durham, New Hampshire

Durham to Participate in Downeaster's Inaugural Run to Freeport/Brunswick Today

The first 250 riders on the Amtrak Downeaster’s inaugural trip from Boston to Freeport and Brunswick, ME will include Durham Town Manager Todd Selig, NH Transportation Commissioner Christopher Clement, Federal Railroad Administrator Joseph Szabo, Amtrak Vice President Joe McHugh, among others. Regular service to Freeport and Brunswick begins Friday.

The expansion to Freeport, home to L.L. Bean's flagship store and outlet shopping, and to Brunswick, home of Bowdoin College and Brunswick Landing, fulfills the original vision for the passenger rail service, which launched between Portland and Boston on Dec. 15, 2001.

Selig stated, "The Downeaster is coming off a record year with 528,292 passengers, and ridership is expected to grow by an additional 36,000 passengers with the expanded service."

The service will open up new tourism opportunities as well as transportation options for Bowdoin students and faculty and for businesses at Brunswick Landing, the former Brunswick Naval Air Station.

The Downeaster currently serves eight communities between Boston and Portland: Old Orchard Beach, Saco and Wells in Maine; Dover, Durham and Exeter in New Hampshire; and Haverhill and Woburn in Massachusetts.

The expansion was made possible through $38.3 million in Federal stimulus dollars, which was used to improve 30 miles of track and rehabilitate 36 crossings between Portland and Brunswick. The state of Maine also spent a half-million dollars to install train platforms in Freeport and Brunswick.

Selig states, “With more than 53,000 passengers annually from Durham and the University of New Hampshire alone, enhancing Amtrak Downeaster service is very consistent with Durham’s goals toward sustainability, reducing the community’s carbon footprint, and reducing unnecessary congestion on local and state roadways.” 

On September 21st, Administrator Selig met with Mr. William Hollister, Principal Officer of Government Affairs at Amtrak, as well as with Mr. Ray Lang, Chief of State Government Relations for Amtrak.  At thattime, Messrs Hollister and Lang were in the process of visiting with host station communities along the Amtrak Downeaster corridor to provide updates on rider statistics (Period FY 2011 10/1 – 9/30) for the service:

Station                                  Total Ridership

Portland                                208,979

Old Orchard Beach             14,533

Saco                                     47,920

Wells                                    52,728

Dover                                  59,091

Durham                               53,087

Exeter                                 90,968

Haverhill                               39,070

Woburn                                16,762

Boston-North                        456,198

Selig and NH Transportation Commissioner Christopher Clement, both of whom are Durham residents, boarded the southbound Downeaster train at 6:28 AM to travel to Boston for the kickoff run this morning.

Hurricane Sandy Emergency Information for Durham, Roadway Closures, Power Outage Areas - October 30, 2012 - 5:00 PM

Dear Members of the Community,

Please remember to exercise extreme caution around downed power lines.  Durham Public Works crews are not able to clear trees that are entangled in power lines.  Only the power company can safely undertake such work.  In addition, residents should NOT handle or try to cut down trees/branches that are entangled in power lines.  Please be safe and be patient.

The latest storm information follows …

Trees/lines are down and roads are closed at:

• Willey Road/Ffrost Drive - open to local traffic only
• Main Street - closed from Technology Drive to Route 155/5-corners.
• Durham Point Road is closed at #29, #32, #139, and #256.  We have made numerous calls to PSNH today and utility crews are there now trying to reopen Durham Point Rd.  We anticipate it being largely reopened later this evening leaving one roadway blockage remaining at #256 near Colony Cove Road.  This will ensure no one is stranded and emergency crews can access all areas of Durham Point Road.  

Three homes have had trees fall on them: one on Canney Road, one on Orchard Drive, and one on Madbury Road. 

Where is there power loss in Durham?

The following roadways have loss of power to some degree to our knowledge at this time:  Adams Point Road, Bartlet Road, Bay Road, Britton Lane, Colony Cove Road, Dame Road, Deer Meadow Road, Durham Point Road, Edendale Lane, Edgerly Garrison, Fogg Drive, Foxhill Road, Langley Road, Longmarsh Road, Mathes Cove Road, Meserve Road, Mill Road, N.Main Street, Pulaski Drive, Roysan Way, Spruce Wood Lane, Willey Road, and Worthen Road.

If there are other locations, these should be called in directly to PSNH (see call in number below).

Power to the Town’s Beech Hill water tank and emergency communications equipment has been restored.

Work is still being undertaken to address three-phase power problems at the Mast Way Elementary School in Lee.

There are a total of 3323 PSNH customers in Durham.  At present, 668 or 20% of households are without power.  

Where is PSNH? 

​ PSNH line, contractor, and tree trimming crews on Tuesday made progress throughout the state and will be bolstered by 75 line crews from Hydro-Québec. The Canadian team is expected to join PSNH and contractor crews, accelerating what has been projected to be a multi-day restoration effort.

The initial PSNH emphasis of the restoration has included focusing on ensuring roads are clear of downed lines, trees, and limbs, and restoring power to key public infrastructure like schools, shelters, and water treatment facilities. 

As of this morning, the NH Department of Transportation reported more than 230 roads across the state were either closed or blocked by downed limbs, trees, and power and communication lines.

At daybreak, crews began conducting detailed damage assessments of affected areas, providing essential information on downed lines and other trouble areas so that PSNH's area work centers throughout the state can quickly and effectively prioritize their mobilization.

Among the hardest hit areas are portions of the seacoast, the southern I-93 corridor, and several communities in the Monadnock Region.

Hurricane Sandy's impact has resulted in the fourth highest number of customers without power in PSNH's 86-year history, with the five largest storms all having occurred in the past four and half years.

Overall, Sandy has affected more than 8 million people from Maryland to Maine. 

Across NH, there are an estimated 109,000 PSNH customers still without power at this time.  

TRANSFER STATION & RECYCLING CENTER WILL BE OPEN ON WEDNESDAY

Durham’s Transfer Station and Recycling Center on Durham Point Road will be opened for a special day on Wednesday to accomodate residents who have brush, rubbish, or recycling for disposal.

FALL BRUSH CLEANUP SCHEDULED FOR NOVEMBER 5TH

A reminder to residents that if trees or branches fell in their yards over the course of the storm, these can be cut up and placed curbside for pickup as part of the annual Durham Fall Brush Cleanup.  The usual limitations of no more than 5 ft. long or 5” in diameter still apply.

PACKERS FALLS GRAVEL PIT TO OPEN TO ACCOMODATE LARGER STUMPS, TREES, DEBRIS FROM STORM

In an effort to anticiapte the needs of the community, Durham will open the Packers Falls Gravel Pit to allow residents to bring brush and larger items starting November 4th thru the 10th from 7:30 AM to 3:00 PM.  The Public Works Department will have someone there to monitor.

SHELTERING INFORMATION – UNH MAKES HAMEL REC. CNTR. AVAILABLE TO RESIDENTS

The UNH Hamel Recreation Center has been reopened and is available to Durham residents who need a place to shower until 7 PM.  The Hamel Recreation Center is located in the old Snively Arena connected to the Whittemore Center.  Park at the Town-owned Depot Road Parking Lot next to the train station.  For information about the facility, go to http://campusrec.unh.edu/index.cfm?id=9438ebd2-b06d-9bfd-fad67f6a461b9d8d .

GOVERNOR DECLARED STATE OF EMERGENCY FOR NH

Governor Lynch declared a State of Emergency as of 10 AM 10/29/12. 

7 DAY FORECAST FOR DURHAM FROM THE NATIONAL WEATHER SERVICE

(as of 5 PM, Tuesday)

Tonight: 
Showers. Patchy fog. Low around 53. Chance of precipitation is 90%. New precipitation amounts between a quarter and half of an inch possible.

Wednesday: A chance of showers. Cloudy, with a high near 64. Southeast wind 7 to 9 mph. Chance of precipitation is 50%. New precipitation amounts between a tenth and quarter of an inch possible.

Wednesday Night:
 Mostly cloudy, with a low around 43. South wind around 6 mph.

Thursday:
  A slight chance of showers after 3pm. Cloudy, with a high near 56. Southwest wind around 5 mph. Chance of precipitation is 20%.

Thursday Night:  
A chance of showers, mainly between 7pm and 4am. Cloudy, with a low around 41. Southwest wind 3 to 5 mph. Chance of precipitation is 30%. New precipitation amounts of less than a tenth of an inch possible. 

Friday:
Mostly cloudy, with a high near 55.

Friday Night:
Mostly cloudy, with a low around 37.

Saturday: 
Mostly sunny, with a high near 52.

Saturday Night:
Mostly clear, with a low around 35.

Sunday: 
Sunny, with a high near 51.

Sunday Night:
Mostly clear, with a low around 31.

Monday: 
Mostly sunny, with a high near 48.

HOW TO CALL PSNH OR THE NH ELECTRIC COOP

Call PSNH daily to report a power outage at 1-800-662-7764.  Do not assume PSNH knows you do not have power!  During these storm events, PSNH works to reenergize areas of town neighborhood by neighborhood but they do not always know individual service lines to homes are down.  If an individual service is down, but a neighborhood has been “restored”, PSNH will not know you still do not have power – unless you let them know.  So call PSNH and don’t be shy.

If you obtain power through the New Hampshire Electric Cooperative, please contact NHEC directly at 1-800-343-6432.

COMCAST CONTACT INFORMATION

If your are have power but your internet, phone, or television service provided by Comcast is not operational, please contact Comcast directly toll free at 1-888-633-4266.  If PSNH lines are down and intertwined with Comcast lines, Comcast must wait for PSNH to repair them before it can restore cable service. 

PORTABLE GENERATOR SAFETY INFORMATION

Safety tips for portable generators follow:

• Portable generators should be placed 10 feet from any structure, with the exhaust facing away from the building openings. Deadly exhaust fumes can enter the building through any opening resulting in severe injury or death to unsuspecting occupants.
• Never place portable generators on or near combustible surfaces such as decks, porches, or tool sheds. Heat generated by the motor, or improper refueling methods can start a fire.
• Never run portable generators inside any building, including basement areas and garages. Deadly levels of carbon monoxide can build up in minutes injuring occupants with little to no warning.
• Allow plenty of time to cool the generator before refueling. Gasoline vapors can easily ignite from hot surfaces causing a flash fire and severe injuries.
• Always store approved gasoline containers a safe distance from generators while in service.

BE SURE TO CHECK IN ON NEIGHBORS WHO MAY NEED ASSISTANCE

Please take the time to touch base with your neighbors and/or friends within the community, particularly those who may need assistance, to ensure they are alright if there is a power outage.   If you know of someone who the Police or Fire Department should check in on as part of a wellness check, please call 868-2324.

WHO TO CALL IF YOU NEED ASSISTANCE?

If you need assistance, do not hesitate to contact the Durham Police Department at 603-868-2324.  In an emergency situation, please call 911.

If residents know of others without power who would benefit from these emergency announcements, please pass them along.  Thank you for your assistance.