Luzerne County Council calls special meeting over settlement funding

Luzerne County Council has scheduled a rare daytime special meeting Monday to figure out how the county will pay a $585,000 legal settlement council approved last year.

During Tuesday’s meeting, a council majority rejected a proposal to use reserve funds to cover the settlement.

Payment must be made because council had voted in September to pay $585,000 toward the $650,000 purchase of a residential property on Susquehanna Avenue in West Pittston owned by Richard and Kimberly Hazzouri to settle 2018 litigation filed by the couple.

This litigation argued West Pittston did not adhere to requirements in a flood buyout program funded by disaster recovery assistance channeled through the county after record 2011 Susquehanna River flooding, preventing the Hazzouris from participating in the program.

After acquisition, the county plans to sell the property hoping to recoup money spent on the settlement and return the property to the tax rolls.

When the reserve transfer came up Tuesday, Councilman Stephen J. Urban proposed to instead use savings from staff positions that had been budgeted but not filled. The county made “great strides” to build a reserve and should not tap it for litigation, he said.

Expressing support for that position, Councilman Brian Thornton asked the administration if it can first apply savings from vacancies before reducing the reserve.

The county currently has a $1.22 million reserve.

County Budget/Finance Division Head Brian Swetz told council analysis of available vacancy funds could not be completed on the spot. Swetz offered a compromise, saying the administration could calculate the vacancy amount and present it to council at its next meeting March 22 to swiftly replenish the reserve.

Council Chairwoman Kendra Radle asked if $585,000 can be obtained from vacancies.

Swetz estimated $200,000 to $300,000 could be identified but said research is necessary.

However, six council members rejected the reserve transfer: Urban, Gregory Wolovich Jr., Carl Bienias III, Kevin Lescavage, John Lombardo and LeeAnn McDermott.

Thornton abstained, saying he had served as West Pittston council head when the river flooded and for a period after. The remaining four supported the transfer: Tim McGinley, Chris Perry, Robert Schnee and Kendra Radle.

County First Assistant Solicitor Vito DeLuca promptly warned council the plaintiffs would likely file a motion to enforce the settlement agreement if the county does not earmark the funds and proceed with a sale closing scheduled for Tuesday, March 15.

In response, McDermott made a motion to reconsider the vote. That action failed in a 5-5 tie, with no votes from Wolovich, Bienias, Lescavage, Lombardo and Urban.

Seeking to avoid further legal ramifications, Radle, the council chairwoman, scheduled the special meeting at noon Monday

The county administration is working on identifying available funding from unfilled positions. It’s unclear if the administration will be able to come up with the full $585,000 from vacancies in departments that are under the manager’s control and covered by the general fund instead of outside revenue streams.

In addition to the $585,000 county contribution, the county’s insurance carrier is paying $50,000 toward the settlement, council’s resolution says. West Pittston’s insurance carrier is kicking in $15,000.

Monday’s special meeting is at the county courthouse on River Street in Wilkes-Barre, with instructions for remote attendance posted under council’s public meetings online link at luzernecounty.org.