The Great Train Robbery- Part 2

Market Street Square- 1984

Continued from Part 1.

Back in 2005 this article appeared in the Jersy Central Lines. It starts off with an observation that should never have gone unnoticed.

The CNJ Station Wilkes Barre
6/4/2005

Luzerne County officials may be so passionate about Wilkes-Barre and Scranton being connected by passenger train service they are ready to wager millions of federal funding on its success.

The application will be approved at the June 17 meeting and forwarded for federal approval, Commissioner Stephen Urban said Friday. The amount the county will try to borrow has not been determined. County officials hope to use proceeds of the "Section 108" loan to acquire and restore the Market Street Square complex owned by Wilkes-Barre City businessman Thom Greco.

Elected officials have a fiduciary responsilibity to their constituents and it doesn't include treating county funds as if they are expendable at the Mohegun Sun. The next part begs the question, where was the advice from solicitor Joseph Blazozek?

A "Section 108" loan carries great risk. If the county is unable to make payments, the federal office could deduct funds from the county's annual $6 million Community Development Block Grant. Block grants fund local projects, like street paving and playground renovations, in the county's 72 boroughs and townships.

The most prophetic statement from that article came from former Luzerne County Commissioner Todd Vonderheid.

Todd Vonderheid said options and cost benefits of acquiring the complex are still under discussion. He added that it was premature to talk about a sale. "It's unfortunate that Commissioner Urban chooses to reveal the details of a deal that's still in the negotiation stages, and potentially jeopardize the success of that deal," Vonderheid said. "Greg (Skrepenak) and I are more concerned about improving the quality of life in Northeastern Pennsylvania than seeing our names in the newspaper." He could never have imagined the amount of times names were going to appear in the newspaper and Urban's would be the only one that would end up in a positive fashion.

David Janoski over at the Citizen's Voice chronicled in his article that Wilkes-Barre nightclub owner/restaurateur Thom Greco faces up to three years in prison for failing to provide information about illegal payments made to an elected official.

The name of the official and the nature of the payment were not released by prosecutors, but sources familiar with the investigation say federal agents have been probing Greco's possible role in providing televisions to a now-closed city sports bar owned by the father of former Luzerne County Commissioner Greg Skrepenak.

According to sources Greco was asked to purchase something of significant value, possibly televisions, that ended up at the sports bar. When Greco presented the bill for payment it is rumored that he was told the bill was on him and tied to the Redevelopment Authority purchase of Market Street Square.

Big Ugly's on Wilkes-Barre Boulevard, closed in February after the elder Skrepenak testified before the grand jury probing corruption in Luzerne County.

Skrepenak Sr., 67, owned Big Ugly's, a sports bar located at 165 N. Wilkes-Barre Blvd., Wilkes-Barre.

Big Ugly's was located on property owned by Michael and Arlene Pasonick.
In October, 2009 Pasonick was identifed as the businessman who paid a $1,400.00 bribe that ensared Gerald Bonner and William McGuire, both of whom served on the Luzerne County Housing Authority.

At the time Attorney Michael Butera had this to say about his client.

"Jerry Bonner did not commit any crime. I don't know how the government could prove that he did commit a crime," Butera said. "They are going to have to prove every single word of that indictment. Jerry Bonner was not corrupt and he didn't corruptly receive any award or bribe." Of course Gerald Bonner plead guilty in December, 2009.

The original post talked about a "band" of outlaws and trains. Although the trains weren't robbed in this story many were swept up like beached whales in the undertow from one property deal.

It is appropriate that former Wilkes Barre City Councilman described the deal for Market Street Square in this manner.

McCarthy said he questions the wisdom of the public purchase because the property has become “like a great beached whale” that attracts vandals. Evidently the "beached whale" attracted so much attention the feds decided to "inspect the beach for more casualties."

Vonderheid- Just A Couple Of Questions

Over at Gort42 the Gortmeister tears into Todd Vonderheid over his interview before the Luzerne County Government Study Commission.

When Vonderheid was asked the question about the lease concerning PA Child Care and whether he would do it again his response was "I'd sign that lease tomorrow, with only two alterations,"

He goes on further to say As for the two differences, the first change would have been to pre-negotiate the price, and the second would have been to tie the rent the county paid for the facility to the governmental reimbursement rate so there wouldn't have been a significant fluctuation, Vonderheid said.

Todd, I think you have some explaining to do. Let's take a look at the facts and see if your statements hold up.

1st issue: On the price pre-negotiation statement. Todd, you must have a significant lapse in memory.

"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 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.

Detention is 100-percent reimbursable by the federal government and costs vary from $160 to $288 per day.

PCC charges $268 per day.

Vonderheid tries to cover his tracks by asking for the results of the audit being conducted by the State Department of Public Welfare when he already voted for the lease. Once you enter a lease it is very difficult to break. Vonderheid justifies the lease cost based on prices paid for the last three years. Again, if they are doing it for the last three years where was the emergency?

Vonderheid states if the audit comes back and is unfavorable to PA ChildCare he will do what is right for the taxpayers. What were his actions when he found out about the results of the audit? Nothing.

"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.

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.

Vonderheid's letter to Estelle Richman, secretary of the Department of Public Welfare, asking to expedite an audit, which allegedly warns the lease is a bad deal for taxpayers, is too late, Urban said.

"He didn't do his due diligence on this," Urban said of Vonderheid. "His letter is nothing more than back tracking. He is asking questions that should have been asked before he signed the lease."

"The lease was based on rates approved for three straight years, by two different administrations," Vonderheid said.

So Todd, you were telling us that the rates were approved for three straight years but there was no pre-negotiating??? You're free to comment and explain that rationale.

2nd issue. Declaring an emergency. He admits in the last sentence above that the rates were approved for at least three years. What necessitated an emergency? Was the emergency declared to purposely bypass bidding requirements or contract requirements of public officials? Can someone explain to me how you declare a 20 year emergency, 20 years being the amount of time entered into by Luzerne County to lease PA Child Care?

Further, at the same meeting support services for the PA ChildCare facility are authorized for only 30 or 120 day periods. How can you have an emergency for the main facility but not the services that support it?

"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.

Greg Zappala claims he was unaware of Ciavarella's and Conahan's escapades. Greg, you are in finance. Let's ask you a question. Your father is a former judge. Your brother is a District Attorney. You own a business and watch a motion pass declaring an emergency when the county has been leasing your facility for three years and it doesn't catch your eye? I guess it's possible......

FBI Looking At Back Tax Sales and Luzerne County Commissioner Meeting Minutes 2004-2007

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.

Skrepenak- "I was as shocked as everyone else.."

From LuLac Political Letter November 8, 2007


Jennifer Learn-Andes reported in the Times Leader that Greg Skrepenak, Luzerne County Commissioner, stated he was as shocked as everyone else" to learn his father was testifying before a grand jury looking into corruption in Northeastern Pennsylvania. According to the younger Skrepenak he wants to know but won't ask. Maybe he should revisit some of his votes as Luzerne County Commissioner to jog his memory.

For one, he voted to scrap the plans for Luzerne County to build its own juvenile detention center facility when he voted for leasing beds at PA ChildCare in December, 20004. The county had already spent $446,000.00 on architectural design work to build its own facility.

Imagine if the majority commissioners including Todd Vonderheid had stayed the course of the previous commissioners, Makowski and Pizano. Would those children have suffered like they did in juvenile court? There would have been no deal to send juveniles to PA ChildCare. For that action alone Skrepenak should not seek re-election. Read my previous posts for more suspect votes on this issue.

He may not be charged but it is like an audit. Audits don't always find wrongdoing but they definitely find stupidity in the decision process. He is quoted in the Times Leader article as saying "The hardest part is that people will theorize and speculate,”.

Skrep, what I write is not speculation or theories but the facts as presented at the time in news articles and known votes.

You should have to answer for this statement in the Times Leader article.

The commissioner said he wants to make it clear that he has no financial or ownership connection to Big Ugly’s. The commissioner, a former NFL lineman, had wanted to open the establishment, but could not own a liquor license because of his position in county government.

“I’m very rarely there, and I pay for my meals and everything when I’m there,” he said.

If you are rarely there as a commissioner why do we need to pay you?

Ciavarella Donated To Skrepenak and Vonderheid in 2005

Recipient FRIENDS OF SKREPANAK & VONDERHELD
PLAINS, PA 18705
Date 11/5/2005
Amount$2,500.00
Description: DONATION
Filer/Payer: CIAVARELLA, MARK JUDGE RETENTION COM
Report: 2005 Cycle 6

Was it a reward? Sitting judges are not to donate to political campaigns according to the Judicial Cannon No. 7.


CANON 7: Judges should refrain from political activity inappropriate to their judicial office

(1) A judge or a candidate for election to judicial office should not:

(c) solicit funds for or pay an assessment or make a contribution to a political organization or candidate, attend political gatherings, or purchase tickets for political party dinners, or other functions, except as authorized in subsection A(2);

More On Juvenile Detention Center Issue Relevant to Subpoena of Luzerne County Commissioner Minutes

From James Convy Citizen's Voice 07/16/2005

County officials say juvie center lease saving money


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."

Minority Commissioner Stephen Urban did not back down from his belief the county should build or buy a facility. He was not disappointed juvenile placement numbers were down, but claimed the figures are inflated by high charges levied by the county.
"
We could have entered into a 20-year lease for $100 million if we hike up the rates enough to pay the bills," Urban said. "The lease of the facility for $58 million, when records in the county reflect the facility only cost $6.7 million to build, is excessive. We're passing that cost onto the federal government."

Note: He was referring to federal funding paying about 66 percent toward the cost of housing juveniles in the facility.

Skrepenak insists the per-day rates are not excessive. To defend his point, he referred to a facility in Berks County that charges $8 more per day for detention than Luzerne County's $290 per-day rate.

Note: Urban is exposing the scheme but no one is listening.

Juvenile Detention Center Or Is That Front And Center Stage?

Grep Skrepenak Sr. Times Leader Photo


Skrep's dad had his day before the grand jury. Is it related to a subpoena for Luzerne County Commissioner meeting minutes from 2004 to 2007?

A look at the Juvenile Detention Center issue.

New Luzerne County Commissioners, Greg Skrepenak and Todd Vonderheid took office on January 1, 2004. At the end of the year they suddenly decide there is an “emergency” when in fact they had been paying PA ChildCare on a per diem basis for almost two years. On what grounds can they claim an emergency when they already were contracting with PA ChildCare and other facilities throughout the state. They can’t claim there was a capacity issue because the bed census was not at 100% throughout the state or at PA ChildCare. One Commissioner admits bypassing the normal bidding process.

Citizens Voice article 12/31/2004

"An emergency was declared to bypass normal advertising requirements for services, Vonderheid said."

Another Commissioner points out that this lease was costing Luzerne County more money than need be.

Citizens Voice article 12/31/2004

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.

Urban continues to push for the county to construct a new facility. He said the cost to taxpayers would decrease by $90 per bed, per day.

"We're spending $4,000 a day more by leasing, rather than building," Urban said. "This was poor management on the part of the majority commissioners."

According to officials at the Committee of Seventy (215-447-3600 Ext. 104) in Philadelphia such a tactic is absurd and should not be tolerated.


Commissioner Vonderheid tries to cover his tracks by asking for the results of the audit being conducted by the State Department of Public Welfare when he already voted for the lease. Once you enter a lease it is very difficult to break. Vonderheid justifies the lease cost based on prices paid for the last three years. Again, if they are doing it for the last three years where was the emergency?

Citizens Voice article 12/31/2004

Vonderheid's letter to Estelle Richman, secretary of the Department of Public Welfare, asking to expedite an audit, which allegedly warns the lease is a bad deal for taxpayers, is too late, Urban said.

"He didn't do his due diligence on this," Urban said of Vonderheid. "His letter is nothing more than back tracking. He is asking questions that should have been asked before he signed the lease."

"The lease was based on rates approved for three straight years, by two different administrations," Vonderheid said.

Vonderheid states if the audit comes back and is unfavorable to PA ChildCare he will do what is right for the taxpayers. What were his actions when he found out about the results of the audit? Nothing.

Further, at the same meeting support services for the PA ChildCare facility are authorized for only 30 or 120 day periods. How can you have an emergency for the main facility but not the services that support it?

Citizens Voice article 12/31/2004

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.

It's just keeps getting better.

More Property Assessment Values vs. Sales Price

In an article that appeared in yesterday's Times Leader a property owned by Robert Mericle and his wife, Kim went on the market for $399,000.00. He successfully argued to the Luzerne County Assessment Appeals Board that the house was only worth $235,200.

Today another article appears in the Times Leader written by Jennifer Learn-Andes discussing a different property that seemed to receive the same treatment.

Former Luzerne County commissioner Todd Vonderheid’s property was in the sample group, with a sales price 56.7 percent higher than the assessment.

Vonderheid and his wife sold their century-old restored brick home on West River Street in Wilkes-Barre last month for $520,000.

The assessment: $331,900.

21st Century originally valued the property at $427,500.

Vonderheid said the appeal board granted the reduction because his appraiser valued the property around $331,900 based on the assessments of similar-sized homes in the same neighborhood, the “riverside historic” district.

The mantra of the reassessment was that property values were supposed to be uniform with others in the same neighborhood, Vonderheid said. He estimated school, county and city taxes on the property will increase from $4,500 to about $7,600 with the $331,900 assessment.

More interesting stuff.

Greg Skrepenak- You Should Resgin Immediately

An article in today's Standard Speaker should spark a call for Greg Skrepenak to immediately resign his seat as a Luzerne County Commissioner. "Luzerne officials consider confiscation of juvenile facility"

BY MICHAEL P. BUFFER
STAFF WRITER
Published: Tuesday, March 17, 2009 4:13 AM EDT
WILKES-BARRE — Luzerne County officials said Monday they are looking into possible actions — including confiscating ownership of the private facility that detains juveniles in Pittston Township — to recover losses associated with a kickback scheme to defraud taxpayers.

Here is the part in this article that makes the case for Skrepenak to resign.

The property in Pittston Township is worth almost $8.7 million, according to the county’s 2008 assessed value.

County commissioners in 2003 agreed to pay daily rates to send juveniles to the Pittston Township facility but still planned to build a new county facility. In 2004, Todd Vonderheid and Greg Skrepenak became Democratic majority commissioners, and they approved a 20-year lease that would have cost more than $60 million.

Let's revisit a couple of old stories about the history of this juvenile detention mess.

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.

An emergency was declared to bypass normal advertising requirements for services, Vonderheid said.

Why that statement alone doesn't have Skrepenak and Vonderheid in hot water with the AG or the Feds is somewhat mind boggling. The new Luzerne County Commissioners took office on January 1, 2004. At the end of the year they suddenly decide there is an “emergency” when in fact they had been paying PA ChildCare on a per diem basis for almost two years. On what grounds can they claim an emergency when they already were contracting with PA ChildCare and other facilities throughout the state.

Vonderheid justifies the lease cost based on prices paid for the last three years. Again, if they are doing it for the last three years where was the emergency? Other contracts approved at the same time 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.

Now to rewind the timemline tape a bit more.

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.

Contract was awarded to Strach Associates, Plains Township.
Luzerne County Engineer Jim Brozena asked the commissioners to approve the proposal.

Commissioner Steve Urban questioned whether Brozena sought competitive bids for the work.

Brozena said he was not required to seek bids because engineering and architectural design are professional services and do not require bidding under the County Code.

So the taxpayers of Luzerne County paid $446,000.00 for engineering and architectural design on a building that never was built. Oh but there is more.

09/26/2001
Makowski says county will build, not lease, juvenile detention center
By Fred Ney , Citizens' Voice Staff Writer

Putting an end to speculation that Luzerne County might soon lease a new juvenile detention center in Pittston Township, Luzerne County Commissioner Chairman Tom Makowski said Tuesday that the county would build its own facility.

"It was an option that we did consider," Makowski said regarding the Pennsylvania Child Care LLC 48-bed project in the Vogelbacher Industrial Park. "We've considered a lot of things," he added.

"However, we're convinced that the best way to go is to build our own facility and we'll do that," he asserted. Makowski hinted that a site has been selected for the project but he said to reveal that now would be "premature."

"We'll be making an announcement soon," he promised.

The current county juvenile detention center on North River Street, Wilkes-Barre, is more than 60 years old and in deplorable condition.

Engineers and architects have calculated that it would cost about $2.5 million to repair it while a new facility would cost between $4 and $5 million.

Let us assume that the cost of the new facility would approach the assessment on the current facility. Now round that number to $9 million to be generous. This figure is also corroborated by Commissioner Steve Urban.

01/06/2006
County expects subsidies will offset higher lease for juvenile center
By James Conmy , Staff Writer
Minority Commissioner Stephen Urban challenged the 20-year, $58.9 million lease with Pennsylvania ChildCare when Skrepenak and Commissioner Todd Vonderheid authorized it late in 2003. He believes the county can build its own center for about $9 million.

If you were to take the estimated $9 million price tag(02/07/2003
New juvenile facility ready for business By Fred Ney , Citizens' Voice Staff Writer
PA ChildCare:The facility is reported to cost $7.4 million for a new county facility) and plug that figure into a mortgage calculator you will get the following result:

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

It is hard to understand why Sam Diaz, as finance and budget director, did not speak about the disparity between county financing and the total amount of the lease. The county was spending over $44 million more than it would cost for it to finance and construct its own facility.

The $58.1 million lease gave Zapalla and Powell more borrowing capacity overall in the general financing market since it funds the debt service created by the construction of the facility on the part of their company.

You must also look at what it would have cost Luzerne County to build its own facility which was the original game plan. At a projected cost of $9 million and assuming an interest rate on funds to finance the project of 4.8% for twenty years (the length of the lease) the cost to the county would have been $14,017,481.66 not $58.1 million.

In fact the $58.1 million figure is not a definite one. It was the minimum that will be charged to Luzerne County by Pa ChildCare during the term of the lease. A 4.8% interest rate was quoted by one of the Commissioners.

Then the Commissioners had the audacity to raise the rate paid to PA ChildCare in the wake of an audit that said they were paying too much.

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.

The county had the opportunity to renegotiate the lease downward but they raised it upward.

Let us not forget what the County tried to do to the United Charities Home in West Hazleton. It was a blatant grab for those beds.

10/26/2006
State investigates West Hazleton child care facility
BY ROBERT KALINOWSKI
STAFF WRITER

“There was a recommendation (by the welfare agency) that, if possible, we systematically remove some of the children,” Kathy Bozinski said Wednesday.

Department of Public Welfare spokeswoman Stacey Ward disputes that, saying, “That recommendation was not made.”

It appears certain personnel in Luzerne County saw an opening to move kids from this facility to Pa ChildCare. The daily rate at United Charities 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. It is alleged that County officials contrived the need to move the kids to try to benefit PA ChildCare. The PA ChildCare facility was not at capacity. It needed to be to justify the lease. Only 44 beds of the 60 were occupied.

The Department of Welfare denies the created allegation made by county representatives. United Children’s Home was allowed an increase in the daily rate by the Department of Welfare to $110.00 per day. UCH has agreements with five counties to utilize its facility.

Audits find fraud but they do not find stupidity. When the public looks at all of this information collectively Skrep it is time to go.