NORTHAMPTON — In a letter to local officials in 20 Hampshire County communities, six area legislators termed “very misleading” the Hampshire Council of Governments’ contention that cities and towns would be responsible for $4.67 million in liabilities should the organization go under.
In response, the author of the council’s April 13 letter to cities and towns that raised the issue of liability said Thursday he would resign from the organization’s strategic planning committee, and step down from the council June 30.
Russell Peotter, who chaired the committee that sent the letter, announced his resignation at Thursday night’s meeting of the HCG, and his intention to vacate his Chesterfield seat on the council.
“I take the responsibility for this,” Peotter said.
The council, however, chose not to accept his resignation from the committee.
Reps. Stephen Kulik, D-Worthington, John W. Scibak, D-South Hadley, and Solomon Goldstein-Rose, I-Amherst, were among the legislators who signed the May 16 communication, sent to Select Boards and mayors, that criticized the HCG for its April 13 letter. That letter implied that legislators agree that cities and towns share responsibility for the council’s liabilities.
“We believe that the HCG letter was very misleading with regard to discussions that HCG leadership has had with us and with other current and former members of the Hampshire County legislative delegation,” the legislators wrote.
The council’d letter stated that legacy costs from the Hampshire County Government, which was dissolved in 1999, would likely have to be picked up by cities and towns, whether they are council members or not. These costs include retirement expenses, health benefits and a workers’ compensation claim
Kulik said he, Scibak and former Sen. Stanley Rosenberg had conversations with leadership at HCG, formerly the Hampshire COG. But they said they were unaware, until they began hearing from local officials who had received HCG’s letter, that they were being credited for suggesting this approach to handling legacy liabilities.
“The reason we wanted to send it was to clarify the position of the legislators as referenced in the letter the COG sent to the communities,” Kulik said.
Kulik said it was important to set the record straight — that legislators have not taken any position on whether the legacy liabilities are the responsibility of Hampshire County communities.
Others legislators who signed the letter were Reps. Susannah Whipps, I-Athol, Todd Smola, R-Palmer and Thomas Petrolati, D-Ludlow.
The legislators’ letter calls out specifically a portion of the HCG letter that reads, “according to our analysis and discussions with the legislative delegation, in the absence of HCG, these costs would likely revert to the towns.”
“We want to assure you that this statement related to the legislative delegation is entirely false,” the legislators’ response reads. “At no time in any of our discussion with officials from the HCG did we indicate support for that position, and in fact we expressed skepticism when it was raised.”
Goldstein-Rose said he signed on to the letter to correct the mistaken impression, given to local leaders by HCG.
“Our delegation has not seen any evidence that convinces us HCG debts would be borne by the towns, although it’s a question that hasn’t been thoroughly settled,” Goldstein-Rose said.
According to the council’s figures, the liability for Amherst would be $1.17 million in total, or $77,525 a year. In Northampton, the liability would be $822,722 in total, or $55,095 a year. In the case of Easthampton those numbers are $463,859 and $31,063 respectively. Hadley, which voted last year to withdraw from the council, would be billed $154,908 and $10,374 respectively. And in Belchertown, which voted to withdraw from the council at its Town Meeting this month, the figures are $434,223 and $29,078 respectively.
The HCG letter says that the council has paid more than $1.5 million to cover the continuing liabilities since county government was eliminated. But future payments are increasingly in doubt.
“Looking forward, HCG is concerned that the annual unfunded liability may prove too much under the current paradigm,” the letter states.
Though critical of the original letter, the legislators do acknowledge HCG is in a challenging financial circumstance that is not sustainable, and that no financial assistance is expected from the state for annual operational shortfall or the long-term legacy liabilities.
In the statement Peotter read at Thursday’s meeting, he detailed the history of the strategic planning committee’s engagement with the legislative delegation, and detailed a number of proposals for relief that were floated by the legislators.
“Unfortunately, the answers to each of those questions were no,” Peotter said. “We did agree ‘a path forward’ would be difficult, and discussed what might happen if HCG could not survive as currently structured.”
Peotter said the letter drafted to the towns was based on those conversations, and was meant to convey the urgency of the matter and ask for the participation of the towns in finding a solution.
“Obviously, that effort has not had the desired effect,” he said.
Peotter said he apparently misheard or misinterpreted what he’d heard during his conversations with the legislators.
“For that I apologize,” he said. “My credibility and judgment are now understandably in question and that’s why I’m resigning as chair and withdrawing from the strategic planning committee.”
He also said he would inform the Chesterfield Select Board and town administrator of his intention to step down from HCG effective June 30.
Nevertheless, Peotter finished by returning to the issue of HCG’s finances, saying that the question of who said what is irrelevant to the problem at hand.
“HCG either needs financial relief or major restructuring,” he said. “The urgency of that need and a request for participation as we sought to address it, was all the letter to towns was meant to do.”
Seconds later, he made an even starker statement.
“No one is coming to the aid of HCG,” he said. “My advice, obviously for now of questionable value, is to radically restructure, even dissolve HCG but to do your best to preserve the excellent work that HCG does in sustainable energy, group purchasing, senior volunteer management and tobacco avoidance.”
Peotter was asked by council Chairman William Barnett if he wanted to talk over the issues he’d raised, but he declined.
“I think that’s all I need to say,” he said, noting that there had been eight months of discussion. “Apparently, whatever I heard, I heard wrong.”
Peotter was then applauded by councilors, before he exited the meeting.
Speaking after the meeting, Executive Director Todd Ford said Peotter’s resignation was a “deep blow” to the council and to the region.
“We have nothing but the deepest respect and admiration for Russ Peotter,” Ford said.
Scott Merzbach can be reached at smerzbach@gazettenet.com.Bera Dunau can be reached at bdunau@gazettenet.com.
