SCRANTON — A resolution to privatize the Lackawanna County Tax Claim Bureau by approving a contract with the acting bureau director’s 16-month-old company was stricken from the agenda shortly after Wednesday’s commissioners meeting started.
As such, commissioners did not vote on the contract.
The resolution — which was added to commissioners’ agenda late Tuesday afternoon after the original document was posted on the county website — called for the county to enter into a professional services contract with Scranton-based Municipal Capital Recovery LLC, a private company owned and managed by acting tax claim bureau Director Joseph Joyce.
Under the contract, MCR would operate the bureau for at least five years at no expense to the county. The company, which Joyce established in February 2017, would be compensated “on a contingency basis from the proceeds” of the delinquent property taxes it collected. It would also make money on a fee schedule established in the contract. The county has not solicited proposals from other companies, acting Chief of Staff Donald Frederickson said.
The item was removed from the agenda after county Treasurer Edward Karpovich raised concerns with the contract prior to Wednesday’s meeting.
“I need to know more details,” Karpovich said, noting things were moving “too fast.” “I have to know that it’s financially beneficial to Lackawanna County, and I don’t know that.”
Joyce, a partner in the Pittston-based law firm Joyce, Carmody & Moran, has worked as a solicitor for the bureau for more than a decade. He’s run the bureau as an independent contractor since January, after longtime Director Ron Koldjeski resigned. His hourly rate is $125, but the total amount he has earned in that role is unclear and the county did not provide that information Wednesday.
Reached after the meeting, Joyce didn’t provide a figure but said he “can’t imagine it’s very much.”
Joyce and/or his wife, Margaret, contributed $3,249 to Commissioner Patrick O’Malley’s campaigns from 2015 to 2017. Members of his family, his law partners, a law partner’s wife and political action committees related to the family or his law partners contributed another $32,732 during the same period.
Combined, the $35,981 total ranks as O’Malley’s top source of campaign contributions.
Of Joyce’s contributions to O’Malley, $1,416 went to the joint campaign committee O’Malley had with Commissioner Jerry Notarianni, all in 2015 when they ran for office as a ticket and before their acrimonious split in 2016. Notarianni received no contributions to his individual campaign committee from Joyce or his wife. Joyce also did not contribute to O’Malley’s joint committee with former Commissioner Jim Wansacz, O’Malley’s primary election running mate in 2015.
Of the contributions by the others, O’Malley’s individual committee got the bulk, $26,483. Another $7,548 was contributed to the O’Malley-Notarianni committee, all in 2015, and another $1,950 to O’Malley’s joint campaign committee with Wansacz, also all in 2015.
Notarianni’s solo committee received a total of $200 from two Joyce family members in 2016, but none from Joseph himself.
Joyce contributed $250 last year to Commissioner Laureen Cummings’ campaign committee while his law partners and a partner’s wife contributed a total of another $750 in 2016 and 2017.
Noting his decade-plus working as an attorney for the bureau, Joyce said he’s familiar with its operations and knows its staff. He acknowledged making political contributions, but said he couldn’t have known at the time that Koldjeski would resign.
“On the merits, I don’t think me submitting a proposal is way off base,” Joyce said, arguing that his company would make the bureau more efficient and increase delinquent tax collections. “I think I have the credentials. I think I have the experience.”
O’Malley said he was “too busy” to answer questions after a county prison board meeting Wednesday. He did not call The Times-Tribune to offer comment as he said he might do.
It’s unclear when the contract with Joyce’s company may come up for a vote, but Cummings said she will not support it. Privatizing the bureau will result in increased fees, the filing of liens and other actions that will hurt delinquent taxpayers, she said.
Notarianni said he will continue to study the proposal.
Contact the writer:
jhorvath@timesshamrock.com; 570-348-9141; @jhorvathTT on Twitter; bkrawczeniuk@timesshamrock.com; 570-348-9147;@BorysBlogTT
Commissioner accuses official of lying
Also Wednesday, Commissioner Jerry Notarianni publicly accused acting Chief of Staff Donald Frederickson of lying last week when he denied to The Times-Tribune that he had told Notarianni that former Chief of Staff Andy Wallace would resign June 20. Wallace resigned Friday.
“I am disappointed in your remarks to The Scranton Times,” Notarianni said to Frederickson. “You told them that you had not told me that. Starting off without telling the truth is not a good place to begin as a chief of staff.”
Frederickson fired back by accusing Notarianni of violating county policy by discussing the Wallace matter with the media, and said he exposed the county to potential liability.
“It’s been longstanding county policy not to discuss confidential personnel matters outside of the administration,” Frederickson said. “You were incorrect in doing that, commissioner.”
Commissioner Patrick O’Malley defended Frederickson, saying he was never under the impression Wallace would resign June 20. He also praised Frederickson’s experience and, along with Commissioner Laureen Cummings, thanked him for serving as acting chief of staff.
Commissioners have yet to determine whether they’ll advertise the chief of staff position before permanently filling the role, O’Malley said.
— JEFF HORVATH