By PAULA TRACY, InDepthNH.org

MANCHESTER - The Executive Council allocated $20 million to the YDC abuse settlement fund, extended a staffing contract for the Sununu Youth Services Center and rejected a $100 million conduit bond for a digital assets company, among other business Wednesday.

The Council also learned that Gov. Kelly Ayotte has chosen to allow the sale of the 145,400-acre Connecticut Lakes Headwaters tract in Coos County to proceed, rather than exercise a state option and purchase it for $67 million.

And the Council approved a number of contracts with snowmobiling and OHRV clubs to maintain the trails in good condition.

The meeting took place at the Manchester Historic Association Millyard Museum in Manchester, marking the first in a summer series of Road Shows by the governor and council across the state.

FRIDAY IS THE DAY FOR RAIL TRAIL DISPUTE TO GO TO COURT

Attorney General John Formella said the state will head to court Friday to remove jersey barriers blocking a one-mile section of the 59-mile Northern Rail trail in Andover by an upset abutter.

The 322-page filing in Merrimack County Superior Court to restore public access to the Northern Rail Trail will be reviewed by the court to decide if the abutter has legal grounds.

Formella said he hopes the issue could be resolved before summer ends but acknowledged it might take longer.

BERLIN SENIOR HOUSING GETS GRANT

A 33-year-old senior housing facility in Berlin will receive a grant to upgrade the HVAC system. The council approved, under the Community Development Block Grant program, $500,000 on behalf of Affordable Housing, Education and Development Inc. to support the Notre Dame HVAC System Improvements project at 411 School Street. Water damage affected the HVAC system and a filter has been installed but the units are now damaged and require repair. The funding comes entirely from federal sources.

This is a very unique request, said Executive Councilor Joe Kenney, R-Wakefield. It was unanimously supported.

REAL ESTATE FIRM HIRED TO SELL SUNUNU YOUTH SERVICES CENTER

The Council approved a contract with Cushman and Wakefield of New Hampshire to provide marketing, consulting and brokerage services to sell the SYSC campus at 1056 River Road over the next two years.

The state plans to relocate its youth facility to the campus of the former Hampstead Hospital. The commission rate is 4 percent of the contract sale price up to $25 million plus 2 percent of any portion exceeding $25 million and payable from the gross proceeds. The legislature debated directing the proceeds to the YDC settlement fund but ultimately placed those funds into the general fund.

$20 MILLION APPROVED FOR YDC SETTLEMENT FUND

The council approved $20 million for settlement payments to victims of the former Youth Development Center who suffered sexual and physical abuse, while the joint legislative fiscal committee also approved that amount, well below the $55 million requested by the new fund administrator.

Gerard Boyle, a retired judge who has assumed the role, said in the past two months on the job he has met with state officials, members of the legislative fiscal committee and contractors and has reviewed similar settlement funds nationally including the Catholic Church and the organization formerly known as the Boy Scouts.

He said he examined the funds, their average awards and is in the process of restructuring the YDC staff and office. Boyle said he has reduced staff and will not renew two contracts because the contractors are overpaid. Much of this will occur in the fall.

He said he will hire a deputy then to increase hearing availability for clients. Boyle said he reviewed four contracts and will recommend two for renewal in the fall.

I cannot justify the state spending $200 an hour or $100 an hour for travel time, he said for claim investigators. We need to watch the money that is being spent. Every dime is a dime not available to claimants in the future. We want to be good stewards of the state's money, he said.

Boyle noted hearings will resume in August with two a day and may increase. After going to the joint legislative fiscal committee and being turned down for his request for $55 million, he said they have indicated a willingness for him to return for additional funds in the fall.

That gives us $4 million to spend, in the next 12 months because of the administrative costs and settlements paid out are already committed. He said that is far too low, so he said he will be returning and asking for $35 million later.

Boyle is a retired judge from the Plymouth area who was a lawyer before his judicial appointment. He succeeds John Broderick, a retired Supreme Court chief justice.

The state changed the way the position is selected from the judicial branch to the executive branch. Councilor Janet Stevens, R-Rye, noted that $6.9 million has gone to a victim's law firm.

How are we going to rein in those fees, she asked.

Boyle said he is looking at finding inducements for attorneys to lower their fees which are now at a maximum of 33 percent of the settlement.

Councilor Karen Liot Hill, D-Lebanon, said if the state wants to use this as an alternative to going to court it has to be something that is used and capitalized.

What happens if the fund runs short? Will you have to cancel the hearings? she asked.

Boyle said: I cannot in good faith hold hearings, without money in the fund adding the legislature seems ready to pay into the fund.

Ayotte said she fully supports his request for the additional $35 million. She said she has been deeply troubled by the up front loans to victims from what she said were terms not favorable to the victims.

Boyle said there are 1,700 outstanding claimants, some of whom have taken out a payday loan anticipating payment based on the average settlement. He said those include extraordinarily high interest rates.

It has been an issue with the fund from the beginning, he said, and noted that some have taken the loans with the advice of the attorneys and some against the advice of their attorney.

I do not think that is my responsibility, he said.

Structured settlements are also an issue over the past several months, Boyle said.

The Attorney General's Office does need to be involved in that, he said.

AG'S REPORT ON SYSC/STAFFING CONTRACT

A tabled contract to provide staffing for the Sununu Youth Services Center in Manchester was unanimously approved Wednesday, one day after the Attorney General issued a report saying there is a serious shortage of staff at the Sununu Youth Services Center and systemic problems there that need to be addressed.

The governor said signing the contract with Amergis Healthcare Staffing Inc. of Columbia, Maryland, is a step in the process to stabilize and get the facility in a better position for the future where all staff and youths are safe.

And Ayotte said she is ready to go out to bid on a suggestion that all youth-facing staff wear body cameras. The Amergis contract received a sole source amendment to an existing contract with the state, increasing the price limitation by $1.3 million through June 30, 2027. This brings the contract to $6.5 million.

The Attorney General did not find the abuse alleged by the Office of the Child Advocate. It included recommendations for organizational reform, as well.

Executive Councilor Liot Hill, asked Commissioner of Health and Human Services Lori Weaver how many youth counselor positions are vacant?

She said the state has 46 full-time counselors now working and a vacancy rate including those on leave of 53 percent.

Weaver said a significant portion of the staff who are out on leave have injuries suffered in the line of work.

We just do not have enough staff, Weaver said. Forty six is not enough.

She said the level of staffing is dangerously low.

The state police are there to support staff but not provided direct care for the youths there who are incarcerated.

Councilor Stevens said the Attorney General's report also found a significant lack of training for the staff. She said the minimum experience for the staff is too low.

However, she said she would support the contract but with more oversight.

It is going to take the support of the legislature, to improve the situation, Stevens said and Weaver agreed.

PILLSBURY WANTS ENVIRONMENTAL REVIEW OF FIRE AT FORMER LACONIA STATE SCHOOL

Pillsbury Development, the potential buyer of the former Laconia State School has asked for an environmental assessment of the impact of a fire at the former Laconia State School in June before they finally purchase it.

Councilor Kenney said he wants to know what the impact may be to the sale.

I do not think it will materially impact the sale, said Charlie Arlinghaus, commissioner of the Department of Administrative Services. He said the state is going to have to spend about $300,000 to remediate the site.

We own the property, we have to take care of it, Arlinghaus said.

STATE ALLOWING DEAL WITH AURORA AND MANULIFE TO GO FORWARD ON PURCHASE OF 145,400 ACRE CONNECTICUT LAKES HEADWATERS TRACT

Adam Crepeau, acting commissioner of the state Department of Natural and Cultural Resources said that after extensive discussions with the governor and state agencies, and the buyer and seller, they are allowing the process of transferring the 145,400 acre Connecticut Lakes Headwaters tract in the state's far north country to go forward in September.

Aurora Sustainable, a carbon first company, was approached by Manulife Investment Management and agreed to sell for over $67 million, but the state had an option to buy and meet that price and a 45 day window to do so, which has now expired and is 47 days out from the signing of the purchase and sales agreement between the two companies.

He said the conservation easement, and a long-term stewardship plan for both logging and recreation protects the state and its desire to see it continue to be logged for jobs and tax revenue and allow for recreational use and habitat.

The tract was enrolled in a carbon capture program by its former owner which has about 90 years left to go. Carbon capture allows businesses to buy credits to keep trees growing instead of cutting them.

Crepeau said cost was a consideration and the fact that the legislature just passed a law which prohibits public entities from owning tracts of land enrolled in carbon capture programs, which would increase the price.

The state recently reached an agreement with Aurora to allow for cutting at least 30,000 cords of wood per year for the next five years and Ayotte said that is a requirement for not exercising the state easement which the buyer has agreed to abide by in writing.

Talking to the press after the meeting, Ayotte said she loves the property, and she will be watching closely. Crepeau said the matter is not entirely over and the state will oversee the matter going forward.

Kenney said he appreciated the governor's leadership on this issue noting at one point, the owners were not cutting enough timber and that was impacting local timber taxes as well as local loggers and mills.

We will count the logs ourselves, Ayotte said.

HAVERHILL, MASS. WASTEWATER UPDATE

Daily water monitoring was ordered at state beaches last week following a massive wastewater release into the Merrimack River in Haverhill, Mass., said Robert Scott, commissioner of the state Department of Environmental Services.

Fortunately, New Hampshire beaches have not been adversely impacted so far, he said. The state's swimming mapper is a place people can go to stay updated.

CONDUIT BOND FOR DIGITAL ASSET COMPANY FAILED

New Hampshire was on the verge of becoming one of the leading states for digital asset development, but the Executive Council voted 2-3 to approve a first of its kind, $100 million conduit bond for NH CleanSpark. Voting to oppose it were a majority of the five member council.