Freeholders up in arms

| 18 Mar 2015 | 02:01

By Nathan Mayberg
Sussex County Freeholder Gail Phoebus claims she was badgered in an illegal executive session by the county attorney and a fellow freeholder over her public objections to a non-disparagement clause of a multi-million dollar settlement agreement with the insolvent SunLight General Capital.

Another freeholder, George Graham, has called for Sussex County Counsel Dennis McConnell's resignation over his handling of the county's $27 million project with SunLight General Capital, in which the company has been unable to pay back bonds the county guaranteed.

Daniel Perez, the lawyer for Phoebus, sent a new letter to McConnell warning him not to further communicate with his client without speaking to him first in all matters regarding the non-disparagement clause.

In the letter, Perez also accuses McConnell of violating the New Jersey Rules of Professional Conduct by engaging Phoebus on the matter despite knowing she was represented by Perez on the issue.

McConnell did not return a message seeking comment.

Perez had attended the Board of Freeholder's meeting last week when he said Board of Freeholders Director Phil Crabb called for a closed door meeting due to "potential litigation."

Potential litigation is not a reason for executive sessions, according to the New Jersey Open Public Meetings Act. Pending or anticipated litigation are exceptions for closing the doors of a public meeting.

Perez said the sole purpose of the meeting was to badger his client over the non-disparagement clause, which violates the Open Public Meetings Act.

"None of that should have taken place in executive session," Perez said.

There is no potential litigation, he said.

He called the session an illegal meeting.

According to the letter written by Perez, Freeholder Richard Vohden pulled out a minirecorder during the executive session while he and McConnell directed words toward Phoebus about the non-disparagement clause.

In a previous letter, Perez had written to McConnell regarding the non-disparagement clause and called it "unconstitutional" and that it didn't supercede Phoebus' First Amendment rights.

Perez said McConnell has not responded to either of his letters.

Perez also is questioning why McConnell's law firm was paid for work on the litigation involving SunLight General.

According to county records, McConnell's law firm of McConnell, Lenard, Campbell was paid more than $8,000 for its work related to the project.

Perez has filed an Open Public Records Act request for the payment.

Sussex County Administrator John Eskilson said he is researching those records.

McConnell is a full-time county employee drawing a salary of $195,649.

His law partner Dennis Lenard, earns $88,358 from the county on litigation matters, according to county administrator John Eskilson.

Another law partner in the firm is the county's adjustor and is also paid for legal work.

Graham wrote a letter of his own to McConnell on Saturday stating he has "lost confidence in your abilities as counsel."

Graham wrote that McConnell is a "fine person and a distinguished gentleman that has made many positive contributions to Sussex County" but his management of the SunLight General Capital situation has "contributed to the loss of millions of county taxpayer dollars."

The Board of Freeholders voted last month to accept a multi-million dollar settlement over money owed to Power Partners Mastec by SunLight General. The county agreed to pay $12.3 million to the company, $6.5 million of which will be bonded. The county still owes an estimated $26 million to the Morris County Improvement Authority for bonds it guaranteed for SunLight General Capital.

Graham also has called for an independent third-party review of how the solar project was handled by senior county management and staff.

Messages left with Crabb and Vohden, who voted in favor of the original project and the settlement, were not returned.

Reporter Nathan Mayberg can be reached at comm.reporter@strausnews.com or by calling 845-469-9000 ext. 359.