NorCo Council May Investigate General Purpose Authority

As the governing body of Northampton County, Council has the express authority to conduct investigative hearings. It is very rare, and has only happened once since the Home Rule Charter went into effect in 1978. Council is poised to do so again with respect to the General Purpose Authority (GPA), which Executive Lamont McClure has called a "rogue" authority. Ron Heckman, who chairs the Finance Committee, said his he will start the process at his June meeting with invitations.

War is certainly brewing between Northampton County and its own creation, the General Purpose Authority (GPA). At their April 10 meeting, the GPA voted to hire Philadelphia law firm Conrad and O'Brien as "special counsel" for anticipated litigation against the County.

First established on May 6, 1999, pursuant to the Municipality Authorities Act, the GPA is a seven-person board appointed by the Executive and confirmed by County Council for staggered five-year terms. Though a creation of Northampton County government, it is considered an independent state agency.

Over the years, the GPA has operated under the radar. It traditionally acted as a conduit for both taxable and tax exempt bonds to help finance public and private projects, mostly with hospitals and universities. It also administers the NorCo Loan and Development Fund and the Community Investment Partnership Program Revolving Loan Fund.

The problems began in 2016, when the GPA became the lead agency in a public private partnership plan (P3) to refurbish or replace 33 county-owned bridges at a cost of $38 million, with the work being done by Kriger Construction. Kriger has completed repairs to one bridge thus far, with two more projected for completion by the end of June.

Prior to P3, the County's ability to repair or replace its 119 bridges was hampered by the Transportation Improvement Program, a statewide plan to improve infrastructure, broken down into 12-year and 4-year plans. The County would be lucky to see two bridges repaired over four years This is unsatisfactory because 99 of these bridges needed to be repaired or replaced. Twenty-two are rated "functionally obsolete." Twenty-seven are considered "structurally deficient." Three bridges were closed, and another 37 are weight-restricted.

Aware of the problem, former Executive John Stoffa floated bonds in 2009 and 2013 that would repair or replace 13 bridges. Former Executive John Brown embarked on a more ambitious P3 project that theoretically would make things easier for the County. Thirty-three bridges would be conveyed to the GPA, and the work would be done by Kriger Construction. All the County would have to do is write a check once milestones are reached.

Instead, it has been a headache.

The P3 was sold on the theory that it would create between 1,000-1,800 jobs. But where? According to the Administrative Code, 80% of them should be within a 10-mile radius of the Lehigh Valley. But John Lushis, a former Bethlehem Steel lawyer who now is the contentious solicitor at GPA, has said that the 80%-rule is unconstitutional 

Somewhere along the way, former Executive John Brown decided to use Lushis to research the applicability of P3 to the County jail. Lushis' bills for these services were passed through and approved by the GPA as "special legal services" and were ultimately paid by the County. As a result, his firm has billed and has been paid $813,000 for legal work over the past two years  These "special legal services" appear to run afoul of the Administrative Code

 The County was even billed to copyright agreements drawn up Lushis, with the designated owner as Lushis' law firm instead of the GPA or the county. GPA Chair Shawn Langen, has billed $11,950 for his own services last year  Lushis has submitted a bill this year for $34,000 for his response to three RTK requests (two from me, one from the Morning Call)

Most recently, the GPA canceled its May meeting, at which time the outside auditors financial statements were going to be reviewed. As a result, the County has been unable to release its own financial statements on May 1, as required by the Home Rule Charter.

Former Executive Brown failed to budget for the cost of easements that are needed for the bridgework. This made it necessary for current Executive Lamont McClure to look under the mattress and find the money. McClure noted that only eight of the 33 bridges selected for repair or replacement are actually "structurally deficient."

One of those eight bridges, the Meadows in Lower Saucon Township, was just closed. A recent inspection revealed it is too dangerous to drive. But the way the P3 is structured, the County is unable to do anything. The bridge is owned by the GPA, and was only slated for repairs.

Though the Home Rule Charter does  provide for investigatory hearings, it is probably something that should be done by a Committee of the Whole, as opposed to the Finance Committee. The Charter does provide for the issuance of subpoenas, but how far do they extend? According to the courts, only so far as they relate tp a proper legislative function. It is unclear to me whether subpoena powers extend beyond county employees. Also,since the GPA is an independent state agency, it is unclear whether its officials may be subpoenaed. For this reason, an ordinance is necessary to spell out the proper legislative function concerned.