Phoebus wants attorney out of project

| 01 Apr 2015 | 01:23

By Nathan Mayberg
Sussex County Freeholder Gail Phoebus says she has grave concerns over whether Sussex County Counsel Dennis McConnell can continue to serve as county counsel.

She has called for a new independent counsel to advise the county regarding its multi-million dollar settlement of litigation involving SunLight General Capital and Power Partners Mastec. She has called for McConnell to be separated from the project.

Messages left with McConnell at his Sussex County government office and his private law practice in Stanhope were not returned.

Phoebus addressed her concerns in a letter sent to McConnell last week, Phoebus accused him of failing the county in a host of ways in regards to the county's failed solar panel construction deal with SunLight General Capital.

The company has been unable to pay back an estimated $26 million in bonds the county guaranteed for the placement of solar panels on municipal buildings and schools.

"I have grave concerns about whether you can effectively serve as County Counsel," Pheobus wrote.

"The time has come to separate you from this project and replace you," Phoebus wrote.

Phoebus cited McConnell's failure to secure a performance bond from the SunLight General Capital for the solar panel project, which would have given the county insurance against the solar company's failure to complete the solar panel work. A performance bond was put up by Power Partners Mastec, the company contracted to install the solar panels, but no bond was put up by SunLight General Capital, who were responsible for paying off the $27.7 million bond issued by the Morris County Improvement Authority.

Phoebus also accused McConnell of not disclosing ties between the county's independent counsel and the former Birdsall Services Group, which the county utilized as its engineering firm when the freeholders signed off on the 2011 solar panel deal. The engineering firm was later entangled in a corruption scandal over violating New Jersey pay to play laws and has since gone bankrupt.

Phoebus has also previously questioned the basis for more than $8,000 McConnell billed to the county for work relating to SunLight General Capital. In the letter, she copies invoices from McConnell to the county for $8,568 worth of work relating to the project in 2011.

McConnell is a full-time employee of the county and earns a salary of $195,649. In addition, his law partners are also paid by the county for their legal. His law partner Robert Campbell is set to earn $71,331 this year for his counsel and as the county's adjuster. Dennis Lenard, another partner in the firm, will earn $88,357, according to information from county records.

Phoebus further alleged in her letter that SunLight General Capital used funds that were supposed to be used for the installation of solar panels in order to pay back its lease. SunLight General has denied it used any funds inappropriately.

Phoebus also took issue with Sussex County spending more than $6 million to settle lawsuits involving Power Partners Mastec, which sued SunLight General Capital, as well as the Morris County Improvement Authority, even though Sussex County was not a party to the suits.

The freeholders supporting the settlement and the county's special counsel in the case have said the settlement was necessary in order for the county to help recoup part of the money SunLight General was unable to pay, by gaining access to the company's tax credits and solar energy certificates. The county is also hopeful that the rest of the project will be completed by a new firm, Vanguard Energy Partners.

The letter by Phoebus follows a call last month by fellow Freeholder George Graham for McConnell to resign.


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