Selectmen, Town Manager Discuss LGC

On Monday night Salem selectmen discussed what a recent report from the N.H. Secretary of State on municipal insurance provider Local Government Center could mean for Salem.

One selectmen questioned whether Town Manager Keith Hickey's role on the LGC Board of Directors posed a conflict because of his job in Salem.

Hickey summarized the findings of the Bureau of Securities Regulations (which is overseen by the Secretary of State's office) in a recent 30-page report that suggests LGC return funds of around $100 million to employer groups.

He said the next step in the process is for LGC to appear before a hearing with the Secretary of State's office, and depending on the finding of that hearing, the state Supreme Court could be asked to make a ruling.

"I speak for the Local Government Center when I say the report from the Secretary of State's office is in many cases incomplete and inaccurate," Hickey said, adding LGC looks forward to presenting more information to the Secretary of State.

Selectmen Stephen Campbell, who asked the discussion be placed on the board agenda after reading the 30-page report, said the report revealed a possible savings for the town he felt should be considered as Hickey puts together his budget.

Campbell said membership in LGC costs the town $23,000 a year to have the "Cadillac" of memberships while other "nominal" options could cost considerably less.

Hickey said that effective July 1, Salem had shifted its property-liability insurance to a different carrier. After meeting with the five town unions last week, Hickey also said the town is planning to go out to bid for a new health insurance provider so long as the current schedule of benefits remains the same.

Hickey wasn's sure which provider the town has for worker's compensation. Those three benefits make up much of what LGC provides to municipal employers.

Campbell added he had a "slight concern" about Hickey's role on the LGC Board of Directors.

"I might be asking you to do something that isn't in the best interest of LGC but might be in the best interest of Salem," Campbell said. "I don't know he we get around that."

He also quoted directly from the report a section which indicated if professionals serving on the Board of Directors are "recompensed by salary and part of their duties include service on the LGC board, they are compensated in violation of a statute."

"I'm not a lawyer, but that is the case in Salem," Campbell said.

Hickey said members of the LGC board do not receive compensation for their participation outside of a mileage check.

Campbell said professionals like Hickey are going to the meetings during regular working hours and are therefore being compensated by municipalities for that service.

Selectmen Chair Beth Roth said that when Hickey was hired, which was before Campbell was elected in March, Hickey's association with LGC was viewed as a major advantage.

"We thought at the time it was a good business decision to have representation for the Town of Salem north of Manchester," Roth said. "We made it part of the condition of his hiring at the time that he maintain his position on the board."

Campbell said there is not a direct stipulation in Hickey's town contract that states he maintain his position on the LGC board.

"We need to let the Secretary of State do their job and let LGC do their job," Selectman Mike Lyons said. "Everybody needs to keep their house in order."