NorCo Controller Blasts Law Firm, Former Exec, in Devastating Audit

John Lushis

Imagine you're elected Northampton County Executive, go to your office to begin your new job, and find nothing's there. That's what happened when Lamont McClure started as the County's top man. The shredders must have been working OT before he started. He was flying blind on top of a $450 million budget. But one of the first things to cross his desk was an outrageous legal bill from John Lushis of Allentown law firm Norris McLaughlin. Even more amazing, it was for a new jail at Gracedale. Former Executive John Brown had repeatedly denied this during the campaign. As McClure settled in, more and more of these bills crossed his desk. He would eventually learn that Brown had been using the county's General Purpose Authority (GPA) to do an end run around County Council. Now an audit from Controller Richard "Bucky" Szulborski confirms it, and also demonstrates that Lushis' law firm was overbilling.

John Briwn

Earlier this year, Council VP Ron Heckman convened a special hearing over GPA irregularities. Its former Chair, Shawn Langen, was condescending and dismissive. "I have about 12 more minutes before I have dinner for 10 people," he huffed at one point. Following that hearing, Ken Kraft introduced a tough resolution calling for the resignations of Lushis and Langen.

Thy both eventually stepped down. McClure has refused to pay Lushis any moremoney,and he rejectedbills that were also submitted by Langen.

Slowly, Lamont McClure has appointed new members, and the GPA is now a better and more responsive agency. In the meantime, the Controller was asked to audit GPA over the billing and how it is that Lushis was able to get away with charging so much money. That audit was released December 10. Lead auditor Anthony Sabino pretty much confirms that Lushis overbilled and that former Executive Brown was using Lushis as some sort of secret solicitor with no oversight from Council.

According to the audit, Lushis overbilled the county on the P3 bridge project to the tune of $55,069. Even worse, John Brown paid him $153,343.50 for work related to a new jail even though that work was never authorized by Council.

"[W]e , we believe NMM was acting as a Professional Service vendor of the County and that all restrictions included in Article XIII of the County’s Administrative Code (Procurement and Disposition of County Property) are applicable as to their retention for workrelated to the Jail Reconstruction Project. The only procedural difference was that invoices were addressed to the NCGPA but they were paid directly to NMM by the County."

The audit goes on to point out six violations of the county's procurement code. In addition, the GPA violated its own by-laws when hiring vendors.

You can read the audit in its entirety below.

NorCo Controller's Audit of GPA by BernieOHare on Scribd

Langen, Donahue Resign From GPA

It's getting difficult to keep up with the game of musical chairs being played at Northampton County's embattled General Purpose Authority (GPA). Since January, the GPA has lost Helene Whitaker (her term expired) as well as Neal Koplin, Peg Ferraro, J Michael Dowd and Executive Lamont McClure. He stepped down after just eight days. But the music appears to have stopped for the last time. Some time today, GPA Chair Shawn Langen finally resigned. Board member Shawn Donahue, who had been siding with Langen, also stepped down.

In a strongly worded resolution on June 21, Northampton County Council called for Langen's resignation.

I am delighted this has happened without litigation. But what makes me even more happy is that I no longer have to wake up at the crack of dawn to cover one of their meetings.

May God Have Mercy on the GPA

At their Aug 2 meeting, Northampton County Council voted unanimously to appoint Administrator Charles Dertinger to the County's beleaguered General Purpose Authority (GPA). He replaces  Executive Lamont McClure, who served for exactly eight days. McClure quipped that he now holds the record as the GPA  board member with the least amount of service.

McClure resigned in response to a complaint by GPA Chair Shawn Langen, who argued that a 1941 Pa. Supreme Court decision precludes the Executive from service. Rather than litigate the matter, McClure bowed out.

Langen will rue the day he objected to McClure. Despite the bow tie and "Good Day!" greeting, Dertinger is a proper bastard, precisely the kind of person an Executive wants to get down in the gutters and roll around. I speak from personal experience. I used to mix it up with Charles regularly.

How is he as an Administrator? Let me give you and example. A few months ago, he stepped out of the elevator with the County's Director of Public Works.I was minding my own business, sitting at a bench reserved for PFA Defendants and bloggers, when he suddenly turned and asked me,

"When is the last time you saw someone smoking in here?"

"How the Hell would I know? Do I look like Frank Flisser?"

(Flisser knows everything)

Dertinger then pointed to ashtrays that are built into the wall and asked why we have them. Then he pointed to fire extinguishers next to the elevator, encased in glass about 6" thick, and asked how anyone would be able to access them in the event of a fire.
He pays attention to things.

Little things that could save someone's life.

Might explain why he was a Project Manager at numerous big construction projects in NYC. Like Madison Square Garden.

On Tuesday, he and Council member Lori Vargo Heffner will join Frank Pintabone and Paul Anthony at the next GPA meeting.

Council member John Cusick said he is frustrated that the GPA's meetings are constantly being canceled, and asked McClure to start thinking about two other "zombie authorities" - The Higher Ed and Hospital Authorities. The GPA appears to have swallowed them. McClure said these authorities might have to be kept on life support if they have floated outstanding bonds, but he will end them as soon as he can. He has a good reason to do so. One of these authorities is sitting on $900,000 that could fill the county's coffers.

McClure Resigns From GPA, Appoints Dertinger as Replacement

Charles Dertinger

On July 19, Northampton County Council voted to confirm Executive Lamont McClure and Council member Lori Vargo Heffner to the county's embattled General Purpose Authority (GPA). Eight days later, on July 27, he has suddenly resigned. He has appointed Administrator Charles Dertinger to replace him.

McClure has already won the battle to control the GPA, which he has blasted as a "rogue" authority. Earlier this year, he was able to appoint two allies to the seven-member board. Then, right before County Council was poised to act, GPA Board members Peg Ferraro and J Michael Dowd also resigned. These resignations are what enabled McClure to appoint himself and Council member Lori Vargo Heffner to the GPA, giving him effective control.

On June 21, County Council adopted a strongly worded resolution calling for the resignations of both GPA Chair Shawn Langen and Norris, McLaughlin and Marcus (NMM), GPA's Solicitor.

NMM has since resigned. GPA Chair Shawn Langen refuses to step aside, but has instead challenged Executive McClure's right to participate on the GPA board, based on a 1941 Pa. Supreme Court decision.

Historically, the County Executive has chaired the GPA. In fact, GPA by-laws require at least one County Council member to serve on the Board.

Executive McClure explained that he'd rather resign than give Langen an opportunity to file a lawsuit and waste taxpayer resources.

Langen has also suggested that the GPA, and not County Council, should fill vacancies on its own Board. But Steve Hann, regional solicitor to the Pa. Municipal Authorities Association, has already told him that the prevailing view is that County Council, and not the GPA, makes these appointments.

GPA: McClure and Heffner In, Law Firm Out

Last night, Executive Lamont McClure edged a bit closer to reining in the county's General Purpose Authority (GPA), which he has blasted as a "rogue" agency. He's already been able to appoint two members of the seven-person board. County Council confirmed another two appointments during their meeting. This gives him effective control over four of he GPA's seven votes.

Lori Vargo Heffner was voted in unanimously as Peg Farraro's replacement after her resignation a few weeks ago. Under the GPA by-laws, at least one board member must be also be a County Council member

McClure appointed himself to replace J.Michael Dowd, who also resigned from the GPA a few weeks ago. Only John Cusick opposed McClure's appointment. His argument was that the GPA needed to be independent from the County. I understand that argument, but if that is so, why do the by-laws insist that at least one member be from County Council?

A few weeks ago, in a strongly worded resolution, Northampton County Council requested Norris, McLaughlin and Marcus, the law firm representing the GPA, to resign. That wish has been granted,effective 5 pm today.

McClure has refused to pay any of that law firm's invoices since becoming Executive in January.

GPA: McClure Appoints Himself, Lori Vargo Heffner

Late last month, General Purpose Authority Chair Shawn Langen was invited to appear before County Council to explain some of strange happenings in what Executive Lamont McClure has called a "rogue" authority. Langen had publicly complained that it would be a "dog and pony show." After suggesting to Council that they lacked his understanding of high finance, he refused to answer a Lori Vargo Heffner question, asking him to explain what he did for a living. It might make him late for a dinner party.

In the wake of that disastrous performance, both Peg Ferraro and Mike Dowd resigned from the GPA's seven member board.

McClure has appointed himself and Lori Vargo Heffner to replace them.

Council is set to confirm these appointments tonight.

Earlier this year, McClure appointed Paul Anthony and Frank Pintabone to the Board.

What this means is that the Executive will soon be in control of the GPA.

GPA Using Outside Firm To Act as Debt Collector For Private Pecuniary Benefit of Chair and Solicitor

Shawn Donahue and Shawn Langen

For years, Northampton County's General Purpose Authority (GPA) never heard from a member of the public Though a public agency, few knew it even existed. But all that has changed with former Executive John Brown's much-ballyhooed public-private-partnership (P3) under which 33 of the County's 119 bridges would be replaced. Yesterday's meeting lasted four hours. You see, it has been discovered that Brown was considering P3 for a new county jail. He and Solicitor John Lushis even intended to market P3 projects elsewhere. Unknown to most, GPA Chair Shawn Langen was actually billing the County to check the work of a third-party engineer who is already checking the contractor. Right-to-Know requests revealed that GPA Solicitor John Lushis had billed the County over $800,000 for two years of legal work that often had nothing to do with bridges.

When Executive Lamont McClure took office and learned what was happening, he immediately put a stop to any payments to Chairman Langen or Solicitor Lushis. He continued to honor the county agreement with Kriger Construction, the company hired to repair or replace these bridges. GPA responded by hiring an outside Philadelphia law firm hand-picked by Solicitor John Lushis. The GPA was told that a lawsuit by the County was imminent, and Conrad O'Brien was paid a $10,000 retainer. The firm just billed an additional $30,000 for 20 days of legal work, though no suit has been filed by the county.

Nevertheless, at the June 5 meeting, and at John Lushis' urging, Conrad O'Brien pressured the GPA to allow that firm to sue the County. The main reason offered was to recover the money ostensibly owed to Lushis and Langen. Fortunately, the Board agreed to wait a bit before going to court.

Basically, the GPA is funding a lawsuit that Langen or Lushis could bring themselves. If they want to sue over money they think they've earned, let them sue and use their own lawyers. I believe it is improper to use public funds to finance litigation by Lushis and Langen against the county.

McClure Labels GPA a "Rogue Authority," Calls Legal Bills an "Outrage"

Lamont McClure smiles when Peg Ferraro asks,
"Will you say, I do?"

Since January, I've been critical of the General Purpose Authority (GPA). This is a county agency originally established as a conduit for pass through loans by universities and hospitals. But when former Executive John Brown designated this authority to administer what really is a $38 million county bridge building project, the problems started.

It started the year with a Sunshine Act violation, ducking into executive session without bothering to explain why. Review of the minutes revealed that its Solicitor, John Lushis, was tapped by Brown to work on other P3 projects and provide "special legal services" without the knowledge of Council and in apparent violation of the County's own Administrative Code. The GPA also hired Brown's former publicity agent, Sahl Communications, to establish a web page and Facebook page that could have been created by a grade school student. It also voted to pay Chair Shawn Langen $200 per hour yo check the work being done by the third party engineer checking the bridge contractor.

I learned from Langen himself that the GPA and Lushis intended to market P3 projects to other municipalities.

In response to a Right-to-Know, I learned that Lushis' law firm, Norris, McLaughlin and Marcus, billed the County $3,390 for six copyrights that were identified as the property of that firm, and not Northampton County or the GPA. I learned that Langen had submitted a bill for $11,950 to check the work being done by the checker. Finally, and most significantly, I discovered that Norris, McLaughlin and Marcus had billed and received  $813,000 in 2016 and 2017. Brown buried the expenditure in the jail budget

At their April 10 meeting, the GPA refused to recognize Charles Dertinger, the County's second highest ranking official, when he approached them with information they had just finished complaining they had not received. They also voted to hire a Philadelphia law firm for litigation with the County without bothering to seek proposals from anyone. They may have already paid this firm a $10,000 retainer.

During this meeting, they also voted to approve five invoices submitted by Norris, McLaughlin and Marcus, including a bill for $34,000 to respond to three Right-to-Knows (Two from me, one from The Morning Call). At that time, I still did not have a complete response to my requests.

I have it now, and it is a joke. I intend to appeal.

What does Executive Lamont McClure make of all this?

He answered that question last night, in his report to Council. He called the GPA a "rogue authority" and said that the John Lushis bills are an "outrage." While saying he'd like to avoid litigation, he made clear that GPA's role in the P3 project needs to be lessened.

Here's what he said.

"I believe that I was not clear enough when I made my last statement on this issue. I want the P3 project, specifically the P3 project with the 33 bridges in it, to be successful. I want to complete it, and when I highlight the difficulties with it, I want no one to assume that we are anything but completely committed to finishing the project. That isn't to say that we don't want our laws followed, including our 80% rule [80% of all county-financed construction must be with local labor]. We do. That isn't to say we won't stand on our rights in the contract. We will. But we want this to succeed. We will make the milestone payments when it's appropriate under the contract. The construction company will have its cash flow.

***

"We will get this done, but that isn't to say there aren't problems. One of the big problems is we have a rogue authority right now in the General Purpose Authority. And they really are in the way of us getting this project done in a timely fashion. Frankly, some of the things they've done, including bill you - you're paying - 800, almost $1 million in legal fees over the last two years - you're paying that. That's an outrage. We have a bill from [GPA Chair] Langen for $11,000. He's the Chair of the General Purpose Authority. He submitted a bill under the services agreement for checking the work of the third party engineer. Well, as you might imagine, I haven't paid it. These are some challenges that we have going forward.

"Now Ms. Ferraro, you're on the GPA. You were at that last meeting. You saw a bill and I think you voted to approve it, which I think was disappointing. Thirty-four thousand dollars to do a Right-to-Know request  We do Right-to-Know requests all the time around here, and we don't spend $34,000 on them, I was also very disappointed that the GPA voted to use public money to sue this County or to hire a special counsel to do that. That's very, very unfortunate.

Peg Ferraro asked McClure to sit down with the GPA like he did with the Gaming Board.. He said he would, and would be at the next meeting himself.

NorCo Paid $3,390 For Lushis Firm Copyrights at GPA

Earlier this week, I told you that Northampton County's General Purpose Authority (GPA) Solicitor John Lushis is the attorney who represents Northampton County's General Purpose Authority (GPA) incredibly copyrighting six agreements he's prepared for the GPA. According to the U.S. Copyright office, These documents were all registered on 10/5/17 under the following copyright numbers: TX0008456750; TX0008456708; TX0008456702; TX0008456704; TX0008456707; and TX0008456700.

Lushis has made these documents the property of the law firm Norris, McLaughlin and Marcus.

I now have the bills that Lushis's firm submitted to the County in 2016 and 2017.

I'll be reporting on them this Monday, but thought you'd like to know that Norris, McLaughlin and Marcus.actually charged the county for the cost of registering these copyrights.

According to invoice #10797926, the county was billed $3,390 to file six copyright applications on 10/5/17.

A copyright application costs between $35-55 

Oh yeah, this story is copyrighted, so watch out! ©

GPA Continues to Stall RTK Seeking Lawyer Bills

Former NorCo Exec Bill Brackbill once likened government authorities to "runaway trains." They may start off in the right direction, but there is always a danger that they will go off track. That seems to be the case at the Northampton County General Purpose Authority (GPA). It started off the new year with a Sunshine Act violation. It paid an unknown sum (believed to be $60,000-70,000) to the very public relations firm that former Executive John Brown was using to promote himself, oblivious to the public outrage and lawsuits. Last year, without the knowledge or assent of NorCo Council, it voted to pay $200 per hour to Board Chair Shawn Langen so he could review engineering work done for a bridge project. Solicitor John Lushis may have been doing side work for Executive John Brown and passing the bills through the GPA. He wagged his finger in the  face of the County Administrator following a meeting last week. And now, Lushis is dragging his feet on a Right-to-Know request for information from GPA, including Lushis's bills.

I submitted two Right-to-Know requests in January, asking for the Lushis bills, the public relations bills, and all correspondence concerning the jail, especially at Gracedale  After playing some games about my requests, Lushis agreed to respond to me by February 15. That would be this week.

But late Friday, Lushis sent me an email telling me he wanted another extension until April 15 because there were 3,000 documents. This stall tactic is being used in the forlorn hope that I will lose interest. I won't.

I can understand a delay might be needed if the request is more burdensome than I originally thought it would be. But he needs to produce his legal bills. Now.

Below is my response to Lushis:

Mr. Lushis,

I have filed two Right-to-Know requests seeking information from the General Purpose Authority (GPA). In both, I made clear that I would agree to an extension, so long as it was to a date certain. You serve the GPA body as Solicitor and Right-to-Know Officer. You sought such an extension until February 15. This was not fine with me, but I kept my word and posed no objection.

On Friday, February 9, at the end of the day, you wrote to advise me you wanted yet another extension until April 15. This is because you suddenly discovered that over 3,000 documents need review.

I will agree in part to your request, although this is now a second date certain. I have no desire to unduly burden staff .

At this point, when you are ready to release these documents, have someone contact me so I can make an appointment to review them and determine how many copies are needed. Having done this before, I know that there is lots of duplication.

But I agree to no additional extension with respect to your legal invoices. They were approved at numerous meetings as a matter of public record. I have made no request that you disclose any legal advice you may have provided. I simply want and have a right to know how much the taxpayers paid you, and immediately. This is information at your fingertips. Your delay at this point smacks of bad faith.

Why are you hiding what the public pays you?

I expect you to produce your legal invoices on the agreed date of February 15, along with a record of all payments made to you.

Thank you.

Bernie O'Hare

NorCo GPA Board Members Need to Go

GPA Chair Langen poses with Glenn Geissinger,
just days before the election, and you paid for this
lousy picture.  

NorCo General Purpose Authority (GPA) Chair Shawn Langen insisted at Monday's meeting that he is completely apolitical. He made the same claim in a separate meeting with me. But the facts tell a different story. It prostituted itself to help former Executive John Brown in his bid for re-election.  Its Chairman began charging the County for work, something that has never happened before and was never disclosed to Northampton County Council. It has also lost sight of its role as nothing more than a conduit for loans. It instead began taking steps so it could market itself as the place for local governments to come if they want to do a P3 project. It would do nothing for the County. But it might help Solicitor John Lushis line his pockets.Its time to seek resignations from the entire board. Helene Whitaker, whose term already expired at the end of last year, has told current Executive Lamont McClure that she's done. Another board member, Neal Koplin, has resigned. That leaves the Board with five members who need to go.

Last year, the GPA hired Sahl Communications, the very same firm that Executive John Brown had hired at public expense to try and make himself look good. the result was two lawsuits. Despite what happened, GPA hired Sahl at Brown's request and paid this firm was paid between $60,000-70,000 in public funds in a thinkly veiled attempt to get himself re-elected.

Sahl created a completely web page for the GPA, even though one already exists as part of the county web page. Sahl also set up a Facebook page, loaded with pictures of John Brown. They are still there, even though he is no longer the Executive.

Sahl then promoted an October 27 groundbreaking ceremony  for work on the first of 33 bridges being repaired or replaced  Though careful to make sure that I was never informed, Morning Call reporter Tom Shortell was there. He is much nicer than I.

The reason I was kept in the dark is because the groundbreaking ceremony was planned just days before the election. It was obviously political. John Brown, Peg Ferraro and Glenn Geissinger were all seeking re-election, and were hoping to get some free publicity. The Facebook page includes pictures of them all, taken at public expense on election eve.

Shortell, to my knowledge, never ran that story. The Express Times no longer really exists. So the hoped for publicity never came.

A third grader could have done a better job of setting up the Facebook and web page. It was a complete waste of public money.

The five GPA board members who need to go are Mike Dowd, Peg Ferraro, Langen, Mark Schiavone and  Shawn Donahue.

Mike Dowd is a former NorCo Council president, but us the person who actually made the motion to violate the Sunshine Act and go into executive session in January without bothering to explain why. He knows better. Also, he chairs the Airport Authority. One of these shadow governments is enough.


Peg Ferraro was MIA last January, when the Board voted to pay Langen. She may have even been absent when the GPA voted to retain Sahl. She definitely was absent in January, when the Sunshine Act violation occurred. Even at the most recent meeting, she participated by phone from Florida. She clearly lacks the time for this responsibility. In addition, there is caselaw providing that an elected official should not be a part of a board that the elected official helps to appoint. Courts have found this to be contrary to public policy.

I have nothing against Schiavone or Donahue, and perhaps they should be re-appointed. but they should offer their resignations and let McClure decide.

Langen should never have agreed to permit Lushis to work for the GPA and simultaneously work for then Executive John Brown, as some sort of secret P3 Solicitor. This is an inherent conflict of interest. Langen should also have realized that he should never accept a dime without getting approval from NorCo Council, regardless what Lushis might tell him.

The person who really needs to go is board Solicitor John Lushis. He is there to sell P3 projects, not assist what is supposed to be a conduit agency for loans.

"Apolitical" GPA Tried to Re-elect Brown

I was the first person to ever exercise "courtesy of the floor" and address Northampton County's General Purpose Authority (GPA) at their monthly meeting yesterday. As I pointed out, that might be because they meet at 8:15 am. I was there to discuss their blatant Sunshine Act violation in January, when they ducked into executive session without bothering to say why, either before or after the back room meeting.  I received a less than warm reception. As I suspected, it's beginning to appear that this is becoming a runaway board.

Instead of existing to serve the best interests of Northampton county, the GPA has become a platform from which P3 deals are being marketed so that board solicitor John Lushis, yet another Norris McLaughlin Marcus lawyer, can line his pockets. Board Chair Shawn Langen is now billing the county for his services on P3 projects. The GPA spent between $60,000-70,000 to market not just P3, but former Executive John Brown, right before the election. Lushis is also telling them that they, and not NorCo Council, are the ones who must appoint a replacement for a GPA Board member who recently resigned. In the meantime, Lushis is dragging his feet on three Right-to-Know request that will answer how much money he has been paid.

During yesterday's meeting, Langen hypocritically made a point of stressing that the GPA is completely apolitical. Really? The GPA paid between $60,000-70,000 to Kim Plyler, Brown's ex propaganda machine,  so she could make a splash for the ribbon cutting on Brown's P3 project. This groundbreaking occurred on October 21, right before the election. Plyler made sure to include photos of Brown, Peg Ferraro, and Glenn Geissinger, all of whom were seeking re-election.

So much for apolitical.

Fortunately, Plyler is incompetent. The only publicity was on the GPA Facebook page. I saw nothing in either daily.

Langen stated yesterday that he is willing to donate his salary to charity. He has also told me that the way the P3 law is written, county employees are unable to review the work, and he appears to be qualified from his years of experience at Arcadia as a project manager.

I have no problem with Langen, who appears to be well-intentioned. But he should have realized that Brown was using him to promote his re-election, and spent public funds to do so.

I do have a problem with Lushis.

After the meeting, he approached Administrator Charles Dertinger and began wagging a finger in his face. Dertinger Not a good idea.