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I-Team: Water Authority Officers Get Big Benefits

I-Team: Water Authority Officers Get Big Benefits - Wednesday, October 14, 2009 at 5:55PM EST

Reported by: Jeff Chirico
Wednesday, Oct 14, 2009 @ 05:55pm EDT
LANSFORD, CARBON COUNTY --Questions are swirling about whether those in charge of a water authority are benefiting from their positions. The officers of the Lansford-Coaldale Joint Water Authority are making tens of thousands of dollars in salaries and benefits. I-Team reporter Jeff Chirico is watching your money.

The water authority is governed by five officers who are also employees. As their own bosses, they give themselves health benefits, pensions and salaries. Some call it a conflict of interest. The authority oversees water service in Lansford, Carbon County and Coaldale, Schuylkill County.

It's not surprising in this economy that folks in Lansford and Coaldale are struggling to make ends meet. And yet those who live here are paying tens of thousands of dollars for these five guys -- the board officers of the Lansford -Coaldale Joint Water Authority. Tom Vadyak says “they're receiving compensation for things they're not entitled to." For three years Vadyak, a Lansford borough councilman, has been trying to blow the whistle on the officers. Four accept pensions. Three get full health benefits. "The municipal authority act clearly states that they're not entitled to health care, pension or excessive salaries."

He's right. But these guys say they are eligible--because they're also employees. That's right. They are their own bosses.

When asked if the officers are doing day to day work that warrants health benefits and pensions, attorney Jim Nanovic, the authority solicitor, says “A person earns their keep. If you don't think they earn their keep you as a person can object to it."

When we asked for time cards, we were told they don't keep them. Board chairman Toby Krajcirik says he deserves what he gets because he helps the maintenance crew. Krajcirik says “I was on the road with guys 3 nights last week working weekends. I work helping guys out."

According to payroll records-- the authority paid Krajcirik more than 18 thousand dollars plus family health benefits and pension. Vice-chairman Robert Demyanovich earned more than 10 thousand dollars plus family health benefits and a pension. Both have different fulltime jobs. It's far above what other local authority officers receive.

In Palmerton, officers get $600 a year. Hazleton --$1560 dollars Lehighton -- up to 4260 dollars. None get benefits.

According to records obtained by the I-Team, the five Lansford-Coaldale Water Authority officers accept more than $120 thousand a year in wages and benefits.

Tom Baldino, a Wilkes University political ethics professor, says "there's something wrong here. It may not be legally wrong but there is the appearance of impropriety that troubles me." Baldino says by law officers can serve as employees. But he questions whether doing so is fair to water customers. "Their fees could be considerably less if they weren't paying benefits and salaries of these members on authority."

Board members say they need to be employees to keep finances straight. Four years ago the office administrator plead guilty to embezzling money from the authority. An audit recommended the supervisor take a more hands-on approach. That is part of the reason, they say, they made themselves employees.

Krajcirik says "everybody is going above and beyond to create a smooth operation for this borough."

But Vadyak insists customers' water payments are getting flushed down the drain. "They made themselves employees. You can't go to work and vote yourself a raise. Neither could I."

The police chief for Lansford says he thinks there is criminal activity here. But the Carbon County District Attorney Gary Dobias disagrees. He says his office investigated this but found no criminal wrong doing.
 


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