Eskilson memo shows Crabb lied

On Sunday, April 12, 2014, the New Jersey Herald gave Freeholder Director Phil Crabb an entire page (over 1,800 words) in which to give his version of the events that led to the Sussex County Freeholder Board being convinced that the "Morris Model" solar program  was a good idea that deserved the County's support. 

Crabb wrote that on February 10, 2011, there was a "committee" formed of two Freeholders and "the county administrator, county chief financial officer and county budget director, along with Morris County counsels John Inglesino and Stephen Pearlman of the law firm Inglesino & Pearlman."  According to Crabb, this "committee" (Crabb's word for it) "met to discuss Sussex County's possible participation" in the "Morris Model" solar program.

There is no record of such a "committee" ever being created . 

The New Jersey Herald was well aware of this, as is Freeholder Director Crabb.  In a memo to the Freeholders from County Administrator John Eskilson, dated February 22, 2011, Eskilson wrote:

Bruce Scruton placed his usual Freeholder Agenda call earlier this afternoon. 

Eskilson then details, for the Freeholders (including Crabb) the information he provided the Herald's Scruton:

RESOLUTION J. Agreement with Morris County Improvement Authority to establish Sussex County solar energy initiative...  Capital Projects Committee and Budget Committee have discussed and are considering establishing pool of seed $ in 2011 Capital Budget. First step will be to conduct educational meetings for municipalities and school boards sometime in March.  Projects could conceivably be bid by late 3d quarter/early 4^th  quarter 2011.

That is right.  In the usual and customary way, there were two standing committees of the Freeholder Board that discussed this with the lawyers from Morris County and not, as Crabb wrote, a special "committee" composed of 7 people.  That is what they call, a lie. 

And it's a lie by someone who knew the truth but lied anyway.  That liar is Phil Crabb.

Freeholder Director Phil Crabb brags about how cozy he is with New Jersey Herald reporter Bruce Scruton.  They play cards together, according to Crabb.  So we have to ask, did this cozy relationship play a role in the Herald's failure to catch Crabb's lie?

After Eskilson's discussion with Scruton, on the morning of the vote by the Freeholder Board (February 23, 2011), the Herald published this story by Scruton:

NEWTON – Sussex County is signing an agreement with Morris County that will give local county municipalities and school boards access to the Morris County Improvement Authority’s buying power for solar projects.

Under the agreement, which the Board of Chosen Freeholders will vote on today, towns and schools can get a feasibility study of their facilities done for about $5,000 and by the end of the year could have a project ready for bid, according to Sussex County Administrator John Eskilson.

He said a series of seminars for municipalities and school officials will be held in Sussex County over the next few weeks. Localities interested in sending representatives can contact his office.

The freeholder meeting is scheduled for 5 p.m. today at the County Administrative Center, 1 Spring St.

The authority has already done 19 facilities in Morris County, which are producing 3.2 megawatts of power at a cost of about 10.6 cents per kilowatt hour.

The agreement will allow the Sussex County agencies to work directly with consultants, engineers and bond counsel already contracted to Morris County, Eskilson said.  

There are various state and federal programs which encourage development of solar energy production, such as energy production credits which, in some cases, can then be converted directly into cash.  

Scruton's report on the planned solar program was a less detailed version of Eskilson's spin.  It certainly lacked scrutiny.

As for who introduced John Inglesino and Stephen Pearlman to the Sussex County Freeholder Board, now that is another lie on the part of Freeholder Director Crabb.  This is what Crabb wrote in the Herald on Sunday, April 12, 2015:

In early 2011, the county freeholders were approached by the Morris County Improvement Authority to consider participating in the next rollout of its highly successful renewable energy program to local schools and government agencies.

The concept, called the “Morris Model,” was held up nationally as an example of how to produce renewable energy through public-private partnerships. It was the second project of its kind and the previous one was hailed as a success.

Actually, the guy who ran Phil Crabb's 2014 re-election effort was responsible for bringing the lawyers who were pitching the "Morris Model" into Sussex County.  Here is an email from that guy to County Administrator John Eskilson. Note the date.

----- Original Message -----
From: Rich Zeoli <rich@rzcimpact.com>
To: Eskilson, John
Sent: Thu Nov 04 07:38:47 2010
Subject: Re: Solar Leasing Agreement

I s/w with John Inglesino last night.  He also has some involvement in the solar realm now and closing on a project for Somerset County next week.  I think would be good to also meet with him.  He can come by Wed morning as well, around 9am if we want to do a one-two punch on this subject and reschedule whatever budget meeting we had at 9.  We could move that meeting to after the 10:30 solar meeting if that works.

It looks like Freeholder Director Crabb has some explaining to do.

Update on Tuesday, April 21, 2015 at 1:24PM by Sussex County Watchdog

The Big Question that the U.S. Attorney's Office will be asking...

How were John Inglesino and Stephen Pearlman brought into the mix and why did all the other companies in the "solar gold rush" go bye-bye and when it came down to it there was only ONE bidder?

Crabb ally who wanted to give Freeholders a raise now threatens newspaper for exposing solar scam

Ann Smulewicz, an ardent and often loud supporter of Freeholder Phil Crabb, is at it again. 

Speaking at the Freeholder's meeting on April 8th, Smulewicz suggested to the Freeholders that they take economic retribution against the New Jersey Herald by no longer posting public notices in the newspaper.  The reason for this outrageous suggestion:  The NJ Herald's coverage of the Freeholder Board's handling of the solar project that is costing Sussex taxpayers millions and of the bailout that will cost taxpayers more.

Smulewicz made her remarks in front of members of the press, including the NJ Herald, as Freeholders Crabb and Vohden smiled, and the county's chief bureaucrat John Eskilson joined them.  Who dumped that thought in her brain? 

So the attempt at covering up the solar scam continues.  Now threats are being made. 

And instead of following the example of Morris County and demanding the resignations of those responsible, Sussex County continues paying them and smiles as their political supporters threaten the members of the media who have exposed them.

At last year's June 27th meeting of the Sussex County Board of Freeholders Smulewicz told the Freeholders that they do not make enough money. 

According to the Alternative Press, Smulewicz said that the "freeholders deserve $100,000 a year."  That's more than four times what they are currently receiving from the taxpayers.  A Sussex County Freeholder currently receives $23,000 a year, with an additional $1,000 for the director.  Freeholder Crabb is the only Board member who receives benefits and a pension, so a salary increase could be especially beneficial to him.

The plan to increase the Freeholders salaries would make Sussex County's Freeholders the most expensive in New Jersey.  Smulewicz defended the idea, telling the Press:  "It's not a part-time job."  In fact, it is a part-time job.  No Freeholder works a 40 hour or even a 20 hour week.  All that is required is attendance at two meetings a month and an occasional additional meeting or two.

Oddly enough, while wanting part-time elected officials to be paid more, Smulewicz wants full-time elected officials to be paid less.  Smulewicz objected to paying the County Clerk and County Surrogate more than $107,000 a year, even though they work documented 40-hour weeks, plus attending meetings after hours.  

One thing is certain, Ann Smulewicz is an enormous fan of Freeholder Phil Crabb.  During this year's February 26th meeting of the Sussex County Board of Freeholders, Smulewicz spoke up and loudly proclaimed her support for Crabb, as the official minutes of the Board attest:  "Ann Smulewicz of Wantage came forward, she said she was pleased that Freeholder Crabb is running for his Freeholder seat again and will work to make sure that he retains the seat."

Should public meetings be turned into venues for campaign endorsement? 

Should Sussex County Freeholders get a $77,000 pay raise each?

Should paying the Sussex County Board of Freeholders go from costing county taxpayers $116,000 a year to $501,000 a year?  Freeholders serve 3-year terms, that's $348,000 vs. over $1.5 million!

Feel free to let us know what you think.

Crabb cover-up: 1800 words, Evaluation Report not mentioned

Giving unprecedented access to its pages, the New Jersey Herald permitted Freeholder Director Phil Crabb to pen an 1,800 word apology in today's edition that presents itself as an explanation of the solar mess, while it slyly attempts to blame Parker Space. 

So let's see, you have a lawyer, a bureaucrat, an accountant, a talk show host, a pharmaceutical salesman, and a union boss... and they want us to believe that the farmer did it.  Really?

Space was one of the Freeholders who voted for the concept in 2011.  He was an Assemblyman when the project went bad and required a taxpayer-funded bailout.  Space opposed the bailout and joined Freeholders Phoebus and Graham in asking the state Attorney General to initiate an investigation.  That investigation has begun.

As reported in the Herald, the Star-Ledger, the Advertiser, and Sparta Independent, the Express-Times and other media, a document called the Solar Proposal Evaluation Report  was  the sales document used to convince the Sussex County Freeholders that the solar plan was viable.   

Why then -- in his 1,800 word statement in the Herald -- didn't Freeholder Crabb mention the Solar Proposal Evaluation Report even once?

Because Crabb is trying to mislead the Herald's readers.  Because Crabb is attempting to protect the guilty.

Here is what really happened:

How it was sold to the Freeholders

In 2011, the Sussex County Board of Chosen Freeholder was composed of the following members:  Freeholder Director Rich Zeoli, Deputy Director Sue Zellman, and Freeholder members Phil Crabb, Rich Vohden, and Parker Space.  Vohden and Space were new to the  Board.  On November 14, 2011, the Freeholder Board voted unanimously to take the solar deal offered by SunLight  General.  How did it happen? 

Watchdog has uncovered the document used to sell the deal to the Freeholders, but first, let's look at the committee that was formed to sell the solar scheme.  It was called the Sussex County Evaluation Team and it was composed of the following people/organizations:

- John Eskilson Sussex County Administrator

- Dennis McConnell, Sussex County Attorney

- Bernard Re, Sussex County Treasurer

- Steve Pearlman, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Deb Verderame, a lawyer with Inglesino, Pearlman, Wyciskala & Taylor

- Gerry Genna, Birdsall Services Group

- Tom Brys, Birdsall Services Group

- Douglas Bacher, NW Financial Group

- Heather Litzebauer, NW Financial Group

- Steven Gabel, Gabel Associates

- Richard Preiss, Gabel Associates

- Cadence Bowden, Gabel Associates

This is the committee that recommended to the Freeholder Board that they agree to the solar scheme.  These are the promises they made to the Board: 

"The SunLight/MasTec team possesses high quality management, installation capabilities, and sound solar development experience.  In addition, the SunLight/MasTec proposal provides Sussex benefits in the following key areas:

- It provides substantial direct energy cost savings;

- It provides the Local Units the potential for additional savings through the sharing of revenues from the sale of Solar Renewable Energy Certificates (SRECs) and other environmental benefits;

- Due to SunLight/MasTec's proposed capital investment, which reduces the required size of the Authority bonds, it provides a strong level of protection for Sussex from financial risk;

- It provided additional financial protection for Sussex in the form of a debt service reserve fund; and,

- It includes a restoration security providing for additional Local Unit protection at the end of contract."

The entire process was open to public bid, but only one bidder showed up.  Another showed up late and was disqualified.  Some wanted to redo the bid, but that suggestion was brushed aside.  Only one bidder?

The Aftermath

While Sussex County continues to pay these lobbyists and consultants, neighboring Morris County has taken action. 

Lawyer Pearlman and his firm were asked to resign by Morris County and they complied.  Gabel Associates was also asked to resign and complied.  That is 5 of 12 members of the Sussex County Evaluation Team .

In 2013, Birdsall Services Group pleaded guilty to charges of public corruption  and was ordered to pay $1m in penalties, as well as $2.6 million to settle a civil forfeiture action brought by the attorney general’s office.  Individual cases against seven executives are pending. 

That makes 7 of the 12 members of the Sussex County Evaluation Team.

But while they have suffered sanctions from Morris County or from the New Jersey Attorney General, Sussex County Freeholder Director Phil Crabb continues to be more than happy to do business with these people.

Maybe Sussex County taxpayers should think about recalling some of these Freeholders who continue to do business with the people who ripped off Sussex County?

Watchdog is read by 11,000 residents in Sussex County, either by email or online.  Let us hear from you.  Tell us what you think we should do...

Do you want your tax dollars to continue to pay the Sussex County Evaluation Team members who have been fired by Morris County or who have pled guilty to actions brought by the New Jersey Attorney General?

Let us know:  info@sussexcountywatchdog.com

Minutes of Freeholder meetings not posted since Jan.2nd

County Administrator John Eskilson also holds the job of Clerk of the Freeholder Board.  It is an unusual arrangement, but one that will no doubt benefit him when he goes to collect his pension.  It certainly benefits him now, as it consolidates his choke hold over Sussex County. 

John Eskilson runs Sussex County like an elected County Executive, even though he is only an appointed County Administrator.  Of course, this is the political philosophy of two-time Freeholder Director Richard Vohden, who maintains that the elected Freeholder Board is only there to ratify the decisions of the county's unelected bureaucracy, led by Eskilson.  Yes, it is a very Central European theory of government, favoring a bureaucratic authoritarianism over representative democracy.     

It should come as no surprise then that public access to the Minutes of the Freeholder Board meetings has been less than open.  Eskilson is in charge, so the people who pay for his salary, perks, and benefits with their taxes don't get to know.  A lot has been happening since the Freeholders were sworn in on January 2nd, but if you wanted to read about it on the county website designed for that purpose you would be shat out of luck.  Because it isn't there.  See for yourself.

http://www.sussex.nj.us/Cit-e-Access/TownCouncil/?TID=7

Will Phil Crabb be the John Dean of the solar scandal?

Legendary Watergate reporter Carl Bernstein was in Sussex County this week and the timing couldn't have been better.  Sussex County residents are getting an inside look at how their government is run as a scandal unfolds involving a solar energy project sold by county bureaucrats as a sure thing, a failed corporation concocted by a group of Wall Street bankers, and a bailout that endangers more taxpayers money in a process gone bad.

And what Sussex taxpayers are finding out is that the county government they pay for isn't being run by the people they elected to run it. 

While elected Freeholders come and go, real power in the county is wielded by a couple professional bureaucrats who have occupied positions of power for decades.  County Attorney Dennis McConnell has held his position for over 25 years, while County Administrator John Eskilson joined the County in 2002 --coming from Hardyston Township, where he took over as administrator ten years earlier, when Wendy Molner was mayor.

Eskilson and McConnell are masters at always keeping control of three of the Freeholder Board's five votes.  They do so in a number of ways.  For instance, when Freeholder Rich Zeoli's wife needed a job, she was accommodated at the company where Eskilson's wife was Director of Business Development, ThorLabs.

The pair of bureaucrats prey on incoming freeholders whose minds are open to suggestion.  Often unsure of the job and insecure,  the bureaucrats school them on the ways of county government.  And so you get a Freeholder like Richard Vohden, who will tell you that he believes his role is to "ratify" whatever the county bureaucrats decide.  Seriously, he actually believes this.

The two bureaucrats operate like rogue managers at a corporation whose Board of Directors has become enfeebled and unable to exercise authority.  Every mistake -- from the AmeriPay scandal to the near theft of the county dump -- is brushed over lest the shareholders, the taxpayers, get up in arms.  "Don't look back, look forward" is what they say.

They control information and communications.  That was why Eskilson talked then Freeholder Director Vohden into giving him the job of Clerk of the Freeholder Board -- in addition to County Administrator.   A very unusual arrangement, but it leaves the Board with no independent staff.  It is like turning over your corporate governance committee to the CEO and it is why an official letter from county freeholders goes out to municipal governments without it even being discussed by the Board.

It is why county freeholders are forced to hire their own attorneys for honest representation and forced to use the state's Open Public Records Act to obtain basic information from the county that should be made available to them by the people who ostensibly work for them.  But if anything is clear, these two bureaucrats don't work for the elected representatives of the people, they work for themselves.  And they have made a pretty penny doing so.

Now Eskilson is in an open policy battle with some of the people he is supposed to work for, pushing his agenda and undermining the initiatives of his elected bosses.  He's even gone so far as to push his policy preferences with the political campaigns of candidates for freeholder.  None of this is very ethical, so far as his profession is concerned.  It undermines who they are, their status, and the protections generally afforded them. 

If Eskilson wants legitimate political power he has the opportunity to run for elected office.  That way the voters get to decide.  And if he wants to transform his office into that of an elected County Executive, he probably has the votes on the Freeholder Board to accomplish that, but again, the voters will have the final word and John Eskilson seems to want to avoid that.

Which brings us to Freeholder Director Phil Crabb.  Like John Dean, "the master manipulator of Watergate," Freeholder Crabb has played the role of chief explainer and apologist for the Sussex solar scandal.  Frequently incorrect in his facts, flip-flopping on tactics, always fudging what he "meant" to say.  First Crabb was for public disclosure in advance of voting on the settlement, then he was against it.  At various times he supported and then opposed reviews of what went wrong.  Then he was for public meetings to explain the solar settlement, and then he opposed them.  The word "flannel mouth" comes to mind.

Crabb's latest tactic is to make the claim to the media that (1) people don't care about the scandal; (2) there is a "backlash" against those who do care; and (3) that if you do care about a failed project and a bailout that is costing taxpayers $26 million it is all because of "politics". 

Crabb sounds remarkably like John Dean in the early days of Watergate.  That's because people like Crabb always forget that the public is busy trying to earn a living to feed the kids, keep a roof over their heads, and pay the property taxes screw-ups like Crabb stick them with.  But they aren't stupid, as Crabb seems to think.  They notice.  It takes time, genuine public outrage is usually a slow burn, but burn it does.  And when it does, watch out.

Anyway, Crabb doesn't have any data to back up his claims, he just pulls these things out of his butt.  It is the way of a man who has been very lucky in politics.  In the aftermath of Steve Oroho's hard-fought victory over Guy Gregg, Crabb was handed Gary Chiusano's Freeholder seat -- the seat Gary had to take from an incumbent.  Then he screwed up, didn't file his campaign finance reports for four years -- while he raised and spent money on stuff for someone -- and almost got asked to step down.  Rich Zeoli went to NJELEC and pleaded on his behalf and Crabb got caught up.  He was lucky in not being fined last year when he was up for re-election but those fines are coming. 

If not for the intervention of Steve Lonegan with a negative attack on opponent Dennis Mudrick, Crabb would have lost his 2011 re-election bid.  Last year, Crabb spent a lot of money against someone who didn't campaign at all, but still only won 60-40.  That was largely due to Crabb not having done a poll and not knowing that the issue he based his campaign on, the sale of the Homestead nursing home, isn't very popular with voters in Sussex County. 

Once again sans data, Crabb's  current performance is especially weak.  "All will be well..."