According to veteran reporter Jennifer Learn-Andes of the Times Leader the FBI seized records relating to the removal of properties for back taxes owed. In addition they requested the Luzerne County Commissioner meeting minutes from 2004 to 2007.
You can read Jennifer's story at this link. Let me speculate on the last request. Please keep in mind that the following are excerpts from the articles cited.
04/18/2002
County closer to making move on detention center
By Fred Ney , Citizens' Voice Staff Writer
Luzerne County Engineer James Brozena studied the issue and more than a year ago told the commissioners it would cost the county about $9 million to build its own 32-bed facility.
Makowski said the county would have to float another bond to fund the project and that means a $9 million facility would wind up costing $17 to 18 million after computing interest charges.
12/12/2002
County close to renting juvenile detention facilities
By Fred Ney , Citizens' Voice Staff Writer
Meanwhile, Makowski has been adamant that he wants to build a new county facility rather than repair the old one or lease from Pennsylvania Child Care, the firm that is building the Pittston Township facility.
02/07/2003
New juvenile facility ready for business
By Fred Ney , Citizens' Voice Staff Writer
Pennsylvania Child Care, a new multi-million dollar juvenile detention and residential treatment center, opened Thursday in Pittston Township amid expectations that the facility will forge working relationships with many Pennsylvania county court systems, especially Luzerne's.
The facility is reported to cost $7.4 million; however, Zappala indicated that figure was too low when he spoke of having "eight figures" invested in the property.
The county commissioners Wednesday passed several motions creating contracts with seven different juvenile detention facilities in the state, including Pennsylvania Child Care. Commissioner Makowski stressed that the county has decided to build its own juvenile detention facility.
He and minority Commissioner Steve Urban joined to pass a $25 million bond issue, part of which is earmarked for a new juvenile detention center.
County Engineer Jim Brozena said the project is being targeted for construction on an 88-acre county tract behind the county's Valley Crest Nursing Home in Plains Township.
Projections call for the facility to be completed 18 to 30 months from groundbreaking.
By me
Nine million dollar construction cost financed at 5% per year should cost the County $14,017,481.66 over 20 years, not $58.1 million.
Mortgage Information
Loan amount $9,000,000.00
Term 20 years
Interest rate 4.800%
Monthly payment $58,406.17
Total payments $14,017,481.66
Total interest $5,017,481.66
03/06/2003
County OKs design plans for new juvenile detention center
By Fred Ney , Citizens' Voice Staff Writer
The new Luzerne County Juvenile Detention Center moved another step closer to reality Wednesday when the county commissioners approved spending $446,500 for design services.
12/31/2004
County declares emergency, OKs pact with juvenile care center
By James Conmy , Citizens' Voice Staff Writer
Luzerne County Commissioners Greg Skrepenak and Todd Vonderheid declared a state-of-emergency Thursday to ratify four short-term contracts with service providers for a Pittston Township juvenile care center. The county will begin a 20-year, $58 million lease for the facility with Pennsylvania Child Care on Jan. 1. All contracts with service providers at the facility expire Dec. 31.
The most expensive deal was with Northwestern Human Services, which will oversee juveniles 24 hours a day, seven days a week. The firm will bill the county $193,000 monthly.
An emergency was declared to bypass normal advertising requirements for services, Vonderheid said.
Commissioner Stephen Urban did not support any of the contracts. He said declaring the emergency was unnecessary and proves Vonderheid and Skrepenak acted on the lease too quickly.
Other contracts approved were for food service, custodial and maintenance service, and health insurance. They were all for 120 days, except the custodial and maintenance contract, which is for 30 days.
Do you think Vonderheid is out of the woods on this one??? If there was an emergency why weren't the food service, custodial, and maintenance service contracts for 20 years??
07/16/2005
County officials say juvie center lease saving money
By James Conmy , Staff Writer CV
One of Luzerne County's biggest budget problems is more cost-effective thanks to the lease of a Pittston Township juvenile center, said Sam Diaz, county chief of budget and finance.
Total expenses at the facility through the first six months of 2005 are $2.1 million, or 42 percent of the year's anticipated $5 million budget, Diaz said.
On the revenue side, the county estimated receiving $5.2 million from the facility in 2005. With $2.2 million billed through June and a more aggressive marketing campaign in place, the projections are on target, Diaz said.
In fact, with other cost-cutting measures implemented by Judge Mark Ciavarella, the county has spent $1.8 million less on juvenile placements than it did through June 2004, Diaz said. The juvenile placement line item finished last year about $3 million over budget.
"It's not all doom and gloom here," Diaz said. "(The juvenile placement budget) is on track. It's exactly where I expect. It's definitely not losing money."
Sam Diaz just got done telling us how much Luzerne County was "saving" with juvenile placements.
11/18/2005
Audit criticizes county's handling of facility lease
By:James Conmy CV
Luzerne County officials' failure to understand state regulations and an inability to negotiate juvenile placement rates cost taxpayers hundreds of thousands of dollars, according to a draft audit conducted by the Pennsylvania Department of Public Welfare.
The draft audit is a component of a lawsuit against Luzerne County Controller Steve Flood and two state employees that was unsealed Wednesday by Pennsylvania Superior Court. The suit filed by Pennsylvania ChildCare, the owners of a Pittston Township juvenile care center, attempted to stop Flood from releasing the contents of the draft audit.
The draft audit details how Pennsylvania ChildCare overcharged the county by approximately $286,000 for juveniles transferred within the facility. It also outlines how the corporation made a $1.2 million profit in 2003, due largely to $1 million in daily rates to house juveniles "not reflective of a standard computation."
Most care facilities' daily rates are based on the cost of housing juveniles divided by the number of days they stay at the facility. Pennsylvania ChildCare's rates were based on state averages - not the formula, according to the draft audit.
"The county should use the rates, based on actual costs, as the basis for negotiating rates," the draft audit stated. "The county is in an excellent position to negotiate rates for without Luzerne County this detention/secure facility would have some difficulty filling the beds."
Luzerne County Commissioners have an opportunity to renegotiate the lease to lower the costs in accordance with the recommendations from the Department of Welfare Audit. It would be the prudent move according to their fiduciary duty and duties of loyalty and care. Instead look what they did.
01/06/2006
County expects subsidies will offset higher lease for juvenile center
By James Conmy , Staff Writer
The cost of Luzerne County's lease of a Pittston Township juvenile care center will increase by approximately $1.35 million in 2006, a new expense that does not alarm most county officials.
This year, the county will pay an additional $600,000, for an annual total of $2.9 million, to Pennsylvania ChildCare, the facility's owner. Mid Atlantic Youth Services will receive another $750,000, or $3.4 million annually, to manage and staff the facility.
Of the 60 beds at the facility, 44 were filled Thursday. Empty beds come at a cost, Urban said.
The Commissioners take the bond issue that was previously approved for a juvenile detention center and use it to fund a new county prison. Why is it cheaper to build a new county prison than lease one? How can the same Commissioners come to two different conclusions on basically the same issue? If the bond issue was for other purposes can they simply take that money for a different purpose?
As you can see the estimate for the new prison is $68 million. In an article that appeared in the Hazleton Standard Speaker on June 19, 2007 “Skrepenak: Weekend Lockdown at Luzerne County prison had 'snowball effect' I am particularly intrigued by the statement "County officials are considering a new prison that could cost $100 million and have more than 20 offers for a new prison site." In a little over a year the projected price has increased by $32 million or 47 percent. To me it points to a backroom effort hoping it will go unnoticed.
04/14/2006
County jail design will cost $2.5 million
BY JAMES CONMY STAFF WRITER
WILKES-BARRE Luzerne County officials are poised to spend more than $2.5 million to design a new prison even though construction on the jail may not begin for years.
The money to finance the new prison’s design will come from about $30 million in bond money the county borrowed for other projects, but has not expended to date, Skrepenak said.
Design costs are typically 5 percent to 7 percent of the estimated construction costs, Larry Bickford, a representative of Kimball and Associates, said during the work session. County officials negotiated a cost of about 4.25 percent of the estimated $68 million construction cost because of the uncertain construction date, said Sam Guesto, county manager.
Certain personnel in Luzerne County see an opening to move kids from this facility to Pa ChildCare. The daily rate at this facility was only $103.00 according to board member who is a friend of mine. The public outcry coupled with the fact that the investigation was blown up to be more than it was foiled this attempt.
10/26/2006
State investigates West Hazleton child care facility
BY ROBERT KALINOWSKI
STAFF WRITER
WEST HAZLETON A child care facility that houses Luzerne County Children and Youth clients is under investigation by the state Department of Welfare for allegations made by two residents that they were physically abused, officials said.
In response, the county has taken 12 residents from the facility’s custody, county spokeswoman Kathy Bozinski said.
Department of Public Welfare spokeswoman Stacey Ward disputes that, saying, “That recommendation was not made.”
03/04/2007
INVESTMENT OPPORTUNITY
By James Conmy , Staff Writer CV
The latest turmoil unfolded when Skrepenak and fellow Commissioner Todd Vonderheid authorized a $58 million deal to lease the new facility, vowing the 20-year deal would lower Luzerne County’s juvenile costs and bring in revenue by housing juveniles from other counties at the facility.
The Democratic majority commissioners approved the deal despite draft papers Flood presented from a state audit showing Powell and Zappala overbilled the county by $200,000 for juveniles housed at the facility. A lawsuit filed against the state by Powell and Zappala have so far prevented the audit from being completed.
Juvie draft audit withheld
Children and Youth chief won’t release it to county commissioners.
By Jennifer Learn-Andes jandes@timesleader.com
Luzerne County Reporter October 7, 2007
Luzerne County has received the state’s juvenile detention center draft audit, but county officials are confused about who gets to see it.
The state Department of Public Welfare e-mailed the audit to county Children and Youth director Frank Castano on Sept. 25.
County chief clerk/manager Sam Guesto said Castano has not forwarded a copy to county commissioners because the cover letter contained a warning, in bold print, that the information must be “safeguarded against unauthorized use.”
Guesto said he checked with the county solicitor’s office, which raised a concern that Castano could be held liable if the information was improperly released by other county officials.
That doesn’t sit well with minority Commissioner Stephen A. Urban. He said commissioners – not Castano – oversee the county and the Pittston Township facility. He sent Castano an e-mail Friday seeking a copy of documents sent by the state, but Castano has not replied.
“When these audits or any type of reports come to managers, they should ensure through e-mail or phone conversation that their bosses know about them and provide them with a copy,” Urban said.
State welfare spokeswoman Anne Bale said Monday afternoon that Castano is free to give copies to the county commissioners.
“There’s nothing stopping the county Children and Youth from giving it to county commissioners. They’re welcome to it,” Bale said.
But Guesto said he wants to see permission in writing because the state’s warning letter “brings up thoughts of litigation.” Better yet, he said the state should send a copy to each commissioner.
“I won’t expose any of my employees – absolutely not,” Guesto said
Audit of juvenile dentention center reveals costly arrangement
BY MICHAEL P. BUFFER
STAFF WRITER Citizen’s Voice
10/26/2007
Luzerne County will lose $2 million a year in state funding because the cost to rent a juvenile detention center — at least $2.9 million a year — is unreasonably excessive, according to an audit finding disclosed by County Commissioner Stephen A. Urban.
Last month, the state released copies of a draft audit to PA Child Care, owner of the 60-bed juvenile center in Pittston Township, and county Children and Youth director Frank Castano. Castano and County Manager Sam Guesto refused to give a copy to Urban, the Republican minority commissioner.
Urban said Thursday he got a copy this week directly from the state, and he accused Guesto and Commissioner Chairman Greg Skrepenak of trying suppress audit findings until after the Nov. 6 election.
“This should have been brought to the immediate attention of the full board of commissioners,” Urban said. “He doesn’t belong in office.”
Skrepenak, a Democrat, and Urban are both seeking another term. Skrepenak said the draft audit was being kept from county commissioners because PA Child Care threatened to file a lawsuit if information from the draft audit was given to the press.
On Wednesday, Skrepenak said Urban could not be trusted with a copy of the draft audit, and on Thursday, Skrepenak said Urban proved him right. He called Urban “a coward” for talking to the press about the audit and not talking to other county officials.
Guesto Eyes Meeting With Juvie Center: County Wants to Buy PA Child Care Facility or Renegotiate the Lease.
From: The Times Leader (Wilkes-Barre, Pa.) | Date: 10/31/2007
Oct. 31--Luzerne County Chief Clerk/Manager Sam Guesto said he is trying to set up a meeting with PA Child Care to discuss the possibility of buying its Pittston Township juvenile detention center or renegotiating the county's lease to use the facility.
"I'm very hopeful that it will take place this week," Guesto said.
Guesto said he is seeking the meeting based on "guidance" he received from another conference call meeting with the state on Tuesday.
"We're hoping that PA Child Care will be cooperative with the issues that the state has on the table for us to try to implement going forward," Guesto said.
County couldn’t validate savings at juvenile center
BY MICHAEL P. BUFFER
STAFF WRITER
01/12/2008
Luzerne County “was unable to validate” a claim that a 20-year lease to use a privately-owned juvenile detention facility in Pittston Township reduced juvenile placement costs, according to a state audit report released Friday.
In response to a draft audit assessment that the county would lose $2 million a year in reimbursable state funding, county commissioners two weeks ago voted to terminate the lease by Feb. 29. The lease with facility owner Pennsylvania Child Care LLC began in 2005, and the cost was in excess of $2.9 million a year.
That annual cost, the state concluded, “could have instead been used as debt service for the borrowing of enough funds to construct and furnish at least three detention facilities.” In 2003, county Commissioner Stephen A. Urban and then-Commissioner Tom Makowski voted to borrow roughly $9 million for a new county-owned juvenile facility.
But in 2004, Greg Skrepenak and Todd Vonderheid became Democratic majority commissioners, and they agreed to the 20-year lease on Nov. 17, 2004 — 14 days after state officials discussed audit objectives with the facility owner.
And the rest is history.
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