By GARRY RAYNO, InDepthNH.org
CONCORD — Several Executive Councilors wanted assurances $7 million in federal COVID relief funds for Crotched Mountain School will benefit New Hampshire students.
Similar concerns were expressed Friday by the Joint Legislative Fiscal Committee before they approved the same request from Education Commissioner Frank Edelblut.
The money would help Seven Hills New Hampshire pay for about $15 million in renovations to the campus it purchased after the Massachusetts-based company agreed to take over educational and developmentally disabled programs at the historic facility when the former owner announced he would close the school after the Department of Health and Human Services pulled the school’s license last November, meaning 50 to 60 families would have to send their children elsewhere in the country, Edelblut told the Executive Council meeting Wednesday.
Seven Hills has a license to serve 105 residential students but serves only 26 due to the facilities condition, he said, and a license for about the same number of day students as residential.
Edelblut urged the council to approve the request “to communicate to families that the state is committed to this process to move forward.”
District 2 Executive Councilor Cinde Warmington, D-Concord, said she was concerned that Seven Hills could accept the money and spend it how it wants and seeks assurances that will not happen.
Edelblut said he has had conversations with the owner about assurances the state’s investment will be used to service and benefit New Hampshire residents and not in a real estate deal, but noted that is not in writing as it would be in a future contract he would bring to the council.
Warmington suggested the council handle the request similar to one for Solutions Healthcare, where the money and the contract were approved at the same time with council’s concerns addressed.
She suggested the council have a non-meeting, meeting with Edelblut and share what the councilors would like to see in the contract.
Edelblut agreed to do that but said the facility operator is doing other work independent of these funds, and it would be helpful to move these funds forward as an indication the project has the state’s support.
Gov. Chris Sununu noted the stipulations in the contract could be how the funds would be used, a clawback provision to ensure they are used as intended, and assurances the citizens of New Hampshire will benefit from the state’s investment.
“I will not bring this contract to you in a form you will not be happy with,” Edelblut said.
District 3 Executive Councilor Janet Stevens, R-Rye, said the prior owner left many families in a very bad situation, but Seven Hills has not registered as a charitable trust with the Attorney General’s Office, and there is only so much information to be gathered from a federal tax form.
Attorney General John Formella said the company began operating in New Hampshire in November and has six months to register with his office and it is late, but many new companies are, but said Seven Hills is communicating with his office.
He said looking at the company as a whole, he has no concerns as the organization is extensive and well funded, and would be able to carry out its obligation under what is likely to be proposed.
“I am not worried about them being able to (live up to their obligations),” Formella said.
Stevens said her only concern is how long will the company guarantee the state’s priority for services, noting she is looking for structure.
Warmington suggested the council table the request to use the federal American Rescue Plan Act money until the council has a contract, but no one seconded her motion.
Edelblut said he would try to schedule the non-meeting with the council right away and Sununu suggested they meet prior to the next council meeting in Dover July 19.
Sununu said he is concerned about the 50 to 60 families who are scared to death their students are going to end up on the streets.
Warmington said her questions were “to make sure the facility is there for treatment for the kids of New Hampshire and not flipped and sold to someone.”
The council approved the request.
Electronic Tolling
On a 3-2 vote, the council approved increasing a contract with Kapsch TrafficCom USA, Inc. of Secaucus, NJ to finalize electronic tolling at the Bedford toll plaza, as well as operations and maintenance at that plaza and those in Hooksett, Hampton, Rochester and Dover.
The contract was increased by $5 million to $14.2 million but not without several councilors expressing their displeasure with removing toll attendants from the system.
District 5 Executive Councilor David Wheeler, R-Milford, said he opposes electronic tolling as it makes New Hampshire just like Massachusetts.
“It is not consumer friendly,” he said. “It may be good for the department and to hell with consumers and I’m voting no.”
District 1 Executive Councilor Joseph Kenney, R-Wakefield, echoed Wheeler’s concerns, noting he recently traveled in Maine and there was a person accepting cash at every toll plaza and he had an opportunity to speak to the attendant for directions or traffic conditions, or tourist destinations or where to find medical services.
“You don’t see that in New Hampshire. We continue to get away from consumer service,” Kenney said. “I grew up in New Hampshire and we had those Old Man of the Mountain coins we threw in the baskets. That connects to the state somehow. EZPass does not connect you to anything.”
Warmington defended electronic tolling, saying while it is nice to have a warm welcome, the electronic system improves traffic flow through the tolls so tourists get to their destinations faster.
She said she hopes the council continues to support the electronic tolling system.
Kenney said he is not opposed to electronic tolling, he just wants to see one lane reserved for an attendant who can take cash and provide information to someone.
Transportation Commissioner William Cass said the request was for the overall maintenance of the electronic tolling system, not to make any changes.
He said there are attendants at toll plazas in Hooksett, Hampton and Bedford, and that is not going to change.
The toll plazas on the Spaulding Turnpike in Dover and Rochester will on a trial basis, but noted the plazas on I-93 and I-95 will continue to have attendants.
New RFP
The council turned down a $10 million contract to develop a platform to allow nine state agencies to be a one-stop shop for businesses to access state services, tax obligations and regulatory information.
The Department of Business and Economic Affairs wanted to extend a $1 million contract it had with McKinsey & Company Inc. of Washington D.C. to develop a strategic plan to establish a business portal that would communicate across the nine state agencies for businesses looking to locate in New Hampshire or those already here, said business and economic affairs commissioner Taylor Caswell.
He said one-stop shopping for businesses has been a goal of state government for decades, but has never happened until now.
“It was a substantial undertaking to get to where we are with the nine agencies on a single portal,” Caswell said.
He also said using ARPA money requires a quick turnaround and the agency decided to contract with the company that developed the strategic plan to also construct the platform.
But all the councilors expressed concerns with the agency not going out to bid, and the cost of the contract.
Kenney said his concern is the cost of the contract for $10 million and wondered why it was not put to bid.
He said he had seen a lot of strategic plans in the military and $1 million was a lot of money for this plan as is the $10 million for the portal.
“It seems to me government has gotten very expensive lately,” he said.
Wheeler said the council was not given the whole picture when it approved the initial $1 million contract, that a $10 million contract was coming as a sole source and not put out to bid.
Caswell urged the council to see the project as a whole, noting it is exceedingly complex and not just Google search. He said the portal will serve businesses big or small, and will also help the state agencies as well as businesses.
Wheeler asked what similar contracts had costs in other states and Caswell said they ranged from $7 million to $15 million noting the contract at issue is to not exceed $10 million so it is very likely it all would not be spent, which drew laughs from the councilors.
Sununu asked if there would be time to go out to bid given the deadline on the use of the federal funds.
Caswell said his department would attempt that if the council does not want to go forward with the contract.
The councilors voted 5-0 against the contract and Caswell said they would seek bids.
New Forensic Hospital
The council approved a $42 million contract with PC Construction Company of South Burlington, Vt. for a new Secure Psychiatric Unit Forensic Hospital as an addition to New Hampshire Hospital in Concord.
The state will use ARPA funds for the project which is $4 million over estimates.
The 41,165 square-foot facility will house 24 men and women in two wings and replace the current Secure Psychiatric Unit on state prison grounds, which currently holds 22 people.
A new facility has been proposed for years, but was finally approved four years ago, but the funding and location were not finalized until last year.
Advocates for those housed in the current facility say a prison is not the proper setting for such a unit.
Garry Rayno may be reached at garry.rayno@yahoo.com.