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The North Adams Finance Committee discussed on Monday the city's options in funding the self-insurance account.

North Adams Insurance Bill at $500K

By Tammy DanielsiBerkshires Staff
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Committee Chairman Michael Bloom, left, and member David Bond speak with Councilor Gailanne Cariddi and Administrative Officer Jay Green. Committee member Alan Marden was absent.
NORTH ADAMS, Mass. — The city will have to find $500,000 this fiscal year to fully fund its insurance accounts even as it braces for another round of state aid cuts in the coming year.

"I'm going to be making recommendations over the next few weeks that are going to be very difficult. ... But they need to made," Mayor Richard Alcombright told the Finance Committee on Monday.

Alcombright said he expected to have firmer budget numbers in a couple weeks. Budget woes and settlement talks with the public unions over the insurance issues could mean tapping into the city's more than $850,000 excess tax-levy capacity.

Bringing this year's insurance accounts up to snuff — both the Medical Insurance Trust and the Medex account — will mean dipping into the free cash count.

Several councilors had expressed concern over taking action based on a report that found the city had underfunded its self-insurance accounts for at least several years. Committee Chairman Michael Bloom called for a full audit going back further and moved to have the study referred to his committee last week.

Alcombright said state officials stated their satisfaction with the conclusions of the report by Scanlon & Associates during a conference call on Friday that included Robert G. Nunes, deputy commissioner of the Department of Revenue.


Mayor Richard Alcombright said the city could try to roll costs into next fiscal year with special legislation.
"Bob was supportive of Scanlon's report," he said. "He thought it was very credible and very well done."

The mayor said the conversation focused on the city's options. It can work on a settlement with the unions for past years but it will have to fully fund this year's account out of free cash or, if there's not enough, into the next fiscal year through special legislation. DOR would be supportive of that, he said.

The total is $500,000 — $400,000 for the insurance fund and another $100,000 for the Medex account. That line item was reduced from $525,000 last year to $400,000 this year. It, too, must be fully funded.

Committee member David Bond asked about the report's recommendations on reconciling head counts and what it meant. Councilor Gailanne Cariddi, who attended the meeting as did council President Ronald Boucher, said rumors had swirled about who was actually being covered by the city's insurance.

"We have gone through the listing on everything," said Business Manager Nancy Ziter. "Nobody is on that listing with Blue Cross Blue Shield that we cannot account for, either being an active employee, a retiree or a surviving spouse ... We can account for everything."


Business Manager Nancy Ziter explains how the city figures enrollment numbers.
The reconciliation has to do with cut-off dates and how Blue Cross Blue Shield counted enrollments, said Ziter. For example, parents forget to tell the city their children have been dropped because of age; Blue Cross doesn't count them but the city continues to. Blue Cross will do training with the city workers to ensure everyone's counting the same way, she said.

Alcombright said he has begun talks with unions about future insurance options but he didn't want to get into settlement talks until the committee was satisfied with the study. The settlement could take any number of forms, he said.

"The employees are looking for an admission that this happened, a fix going forward to know it's being done correctly and something for their pain and suffering over the years, in a sense," said the mayor. "I have no reason to not think they will be reasonable."
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North Adams Restaurant to Closing in Two Weeks

By Breanna SteeleiBerkshires Staff

NORTH ADAMS, Mass. — A downtown restaurant announced on Wednesday that it will be closing.

In a Facebook post, Door Prize stated its last day of service is Saturday, Nov. 14.

"We are not making this decision lightly and wish there was another way forward," read the post by owners Bryan "Swifty" Josephs and Jenny Klowden.

"We feel great pride for our successes and for a wonderful year of serving our community. Now on to the next adventure!"

They also thanked their staff and patrons who enjoyed their food 

The restaurant opened over a year ago in Hotel Downstreet after Josephs and Klowden previously had a residence at Massachusetts Museum of Contemporary Art, where they sold some of their signature dishes, as well as working in area restaurants, bringing their food to farmers markets and operating a catering business. 

The two named the restaurant after a John Prine song that they danced to at their wedding. Josephs described their fare as European comfort food, with one of their most popular dishes being pierogies. 

They also successfully renovated the covered porch outside the restaurant for dining, raising $7,000 through a Kickstarter

While their post did not allude as to why they are closing, iBerkshires has reached out for more answers. 

The 90-room hotel has reportedly been sold, with a closing expected by the end of the month. Owner Peregrine Group put the former Holiday Inn up for sale earlier this year after purchasing the property for $4.45 million in 2021. According to reports in The Berkshire Eagle, the cost of renovations to the 55-year-old property put a dent into revenues that limited the hotel's ability to cover obligations. 
 
It's not clear if this has anything to do with the restaurant, which operates as a separate entity.
 
"We are not looking for a public discourse on our business model or the closure," the Door Prize post states, inviting patrons to personally contact the Josephs or Klowden rather than comment on the posting. 

 

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