hot potato

Hot Potato

Not since redevelopment of Willimantic's downtown in the seventies have we seen such construction and re-construction the likes of which we have witnessed over the past year and a half. I'm not referring to the “major parcel” (Jillson Square), mind you, but Windham's schools. Steven Adamowski, the former superintendent of Hartford Public Schools, arrived in August 2011 — not with a shovel or backhoe — but with a mandate from the state board of education to fix 20 years of neglect and to lift our schools out of the education cellar.

Since his arrival, Adamowski has attempted to transform a failing school system into a competitive institution that will assure future student achievement, an acceptable graduation rate, and students’ ability to meet life challenges and workplace goals.

Recently Special Master Adamowski has focused attention on what appears to be an accounting/legal error committed by the school board in financing a $5.2 million dollar energy upgrade in 2007/2008 to all school buildings except Kramer (the Energy Performance Contract (EPC), i.e. “the Hot Potato”.) Adamowski claims and the state agrees that the capitol lease that the board of education committed to is illegal. He claims a school district is not supposed to pay for debt interest and principal out of its operating budget, It is the town's responsibility to cover these expenses.

On April 16, 2013 the board of finance voted to assume half of $506,000 principal and interest payment FY 2013-14 and assume the remaining yearly payments until the debt is paid off. This obligation was assigned to the town's general fund and will amount to several million dollars.

Dr Adomowski

This "Hot Potato" thing got me curious. Not how it developed but why? There has been accusations toward Dr. Adamowski's "illegal" tactics and of the town manager and the mayor's willingness to take on BOE liabilities behind the backs of the town council. I assumed that Adamowski was shedding an obligation from another poor decision of the board of education. I was wrong.

The energy performance contract has live up to its promises and then some:

Comparing 2007/08 to 2011/12 (energy use) 

• electricity (kw hours) down 39% 
• oil (gallons) down 35% 
• natural gas (btu's) down 11% 

Translated into dollar savings (2011 - 2012)

• electricity $21,152.00 
• oil          $257,924.00 
• nat gas   $261,185.00

Savings $540,261.00

While the EPC (Hot Potato) was carried out a smaller project was completed. Nine sets of solar panels were installed on the roofs of Windham's schools. The solar collectors contribute an annual savings of $14,400.00

In 2007, the school system entered into an Energy Performance Contract for $5.2 million dollars. The project was financed with a master equipment lease-purchase agreement which will mature in 2021.

This is a major energy improvement program conducted by CL&P. The board of education was guarantee that the savings from all types of energy costs would cover the monthly expense of the lease payment. And if the energies savings were lower then the lease payments CL&P would pay the difference as long as the system was used properly

Each of theses projects were vetted by the town, boe and bond attorneys. Each project has documentation between the boe and selectmen. The bond attorney has issued another letter recently confirming the processes used to set up these projects.

The BOE signed a Memorandum of Understanding that their attorney approved, agreeing to make the energy performance contract and lease payments with the savings from their utility bills.

The BOE paid its bill under the energy performance contract for several years, and that such payments were budgeted, were repeatedly approved by the BOE and the voters, were part of several BOE's reports to the state Dept. of Education, were audited by two different auditors, and nothing inappropriate was noted by any of these persons or entities.

Until, Steven Adamowski brought up a potential flaw in the EPC. A flaw not recognized by town attorneys, a bond attorney. auditors or the board of education.

The board of finance approved a 50-50 split with the boe where by the town government picks up approximately half of the $506,000.00 energy debt and deducts a like amount from the boe budget. Will this arrangement continue through the term of the agreement, ending in 2021? How will this arrangement effect the MBR? (minimum budget requirement) finally there is a possibility of a $1 million dollar tax liability exposure, precipitated by Adamowski's bookkeeping "maneuvers."


The school board should be commended for implementing a successful energy performance contract at no taxpayer expense. Our students will benefit from a better education covered by utility savings. At least that was the plan until Adamowski came along and opened a can of worms.