Aurora Should Be Removed as Manager of Citizens/Montevue

George Wenschhof

A day of reckoning is approaching on the Frederick County government contract of sale of the Citizens Care and Rehabilitation Center and Montevue Assisted Care facilities to  Aurora Health Management.

Local attorney Leslie Powell of Powell-Flynn LLC tells me “we have a consolidated hearing in court on two separate actions that we filed in the Circuit Court on January 16.  One an administrative challenge relating to the adoption of the resolution authorizing the sale and the second, a broader action which raises claims relating to the restrictive covenant, the conduct of the BOCC in interfering with the Board of Trustees' management of the facilities, failure to comply with procurement rules, and other actions arising from the attempted sale.”

You can read them here and here.

This hearing cannot come soon enough for those exasperated with the reckless manner Frederick County board of commissioner president Blaine Young has pursued his obsession with the privatization of government services since he won election in 2010.

It has been a tortuous three years beginning with the serious consideration given to the ill conceived Oliver Porter privatization report, followed by dramatic slashing of funding to nonprofits, the elimination of $2 million in county funding for Head Start, reducing the number of county employees during a period of deep recession and high unemployment, and now taxpayers are faced with the haphazard and irresponsible approach to the selling of the Citizens Care and Rehabilitation Center and Montevue Assisted Care facilities.

The recent city zoning board of appeals ruling reversed the planning commission decision on the subdivision of the property, finding that the application was incomplete and the planning commission had not considered the impact of the sale on the community. This requires the county to either file a judicial appeal or resubmit subdivision plans to the city.  The latter is the most likely choice the county will make, and either way, this will definitely delay the planned end of the year settlement.

This ruling followed the Maryland Board of Public Works decision to delay approval of the sale, pending the outcome of litigation. The Board of Public Works confirmed their decision in spite of theatrics by Blaine Young to proffer them a check for $200,000.  

On January 16^th, don’t be surprised if the Judge hearing the arguments finds additional missteps taken by the county in their rush to sell these facilities.

For one, state law prohibits entering into a contract of sale on a lot subject to subdivision and the zoning board of appeals decision is an example of why this law exists.

The manner the county dismissed the board of trustees, entered into a management agreement with the contract purchaser and whether they provided due public notice are just a few of the areas where the county will have to withstand judicial review.

Perhaps the most important issue, is the 1828 deed of the property when conveyed to the county states "for the use and Benefit of the Poor of Frederick County". The Deed provides that the property was conveyed to the Justices of the Levy Court and their successors in office "forever, for the Benefït of the Poor of said County, and to and for no other use, intent or purpose whatsoever.. .".

It would not be surprising the judicial review on the 16^th doesn’t find additional administrative errors that will certainly delay the sale even further.

If the Judge rules the deed covenants restrict the sale to a company such as Aurora Health Management, the county’s only option will be to appeal and hope for a more favorable decision.

Either way, the contract of sale will be delayed for a considerable time period, with the distinct possibility the sale will be declared invalid by an upper court.

What is extremely troublesome is the contract purchaser continues to manage the facilities and receive a $50,000 per month fee as the legal wrangling takes place.  There is no incentive for Aurora to operate the facilities in the best interest of the county government and taxpayers during what is likely to be a considerable delay.

There is nothing to stop them from writing off delinquent debt to the county during this period and “cleaning” the books for when they become the owners.

What needs to be done immediately, as the likely long legal process takes its course, is the reinstatement of the board of trustees, notice given to the contract purchaser as provided in the contract, they will no longer manage the facilities and a bid issued or interim manager hired for the management of the Citizens/Montevue facilities.

Stay tuned.

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Franchot: “Comptroller is My Dream Job”

George Wenschhof

It was an enjoyable one hour casual meeting with Maryland Comproller Peter Franchot (D) and his communications director Andrew Friedson.  Franchot was on his way to the Washington County Democratic picnic and took time to share some thoughts over a beer at Brewers Alley in historic downtown Frederick.

I asked what brought them to The City of Frederick and Friedson answered "Comptroller Franchot makes it a point to get out of Annapolis and travel all across the State of Maryland -- including frequent trips to Western Maryland -- to meet with the families and small businesses who are on the front lines of the Maryland economy and whose talent, ingenuity and sheer determination make the region, along with the entire state, such a great place to live, work and raise a family."

Recognizing, the Board of Public Works had received my column  published in The Frederick News Post, where I spoke in opposition to the Frederick county government proposed sale of the Citizens Care and Rehabilitation Center and Montevue Assisted Care facilities, I shared with him the thanks many in Frederick County have in their decision to table a vote on the sale.

We spoke briefly about the state Board of Public Works meeting the day before where Governor Martin O’Malley and Treaurer Nancy Kopp joined Franchot to table a vote on the sale of the Citizens Care and Rehabilitation Center and Montevue Assisted Care facilities.

Franchot shared with me he was impressed with the number of people from Frederick County who had attended the meeting to speak in opposition to the sale.  He added Frederick attorney Leslie Powell was also present to state she has active litigation against the sale. Franchot told me “for the board of public works to vote on contracts that are the subject of active litigation is something that has always concerned him.”

When I asked what he thought of Frederick County Commissioner Blaine Young's assertion that the county would go through with the sale regardless of BPW's decision, Franchot said "that would be unwise for him to do so."

When I followed up with a question asking him what did he mean by that, Andrew Friedson said "The Comptroller believes that proceeding with the sale while it remains the subject of active litigation would be highly premature and carry considerable risk. It would be far more prudent to allow the legal process to run its course before taking further action -- as the Board of Public Works did on Wednesday -- and he would encourage the Frederick County Board of Commissioners to do the same."

During, our conversation, I asked Franchot about his decision to run for re-election as Comptroller, when it was widely known he also considered running for Governor in the 2014 state election.

Franchot said "While the encouragement I received to run for governor was humbling, being Comptroller is the greatest thrill and most profound honor of my professional life. Some people go a lifetime and never find their dream job, but I already have mine. So I look forward to continuing to serve as an independent, fiscal watchdog for Maryland taxpayers and to help lead a candid conversation about the fiscal and economic challenges that still lie ahead."

Franchot spoke enthusiastically in regard to his proposal to start schools after Labor Day, saying, in part "Starting schools after Labor Day isn't just necessary because of the$7.7 million in state and local tax revenue it would create for the priorities we care about, or the $74.3 million in direct economic activity it would generate in the midst of a sluggish recovery. It would mean jobs and supplemental income for so many people who desperately need it in Maryland, bringing nearly $4 million in additional wages to a state that's near the bottom in the country in private sector wage growth. And beyond the money or economic impact, it's ultimately about Maryland families -- particularly the folks who save up a little bit every paycheck just so they can spend a week to get away once a year with their family."
 

With time running short and understanding he was due at a picnic, I thanked the Comptroller for stopping by to say hello.  As he was leaving, Franchot made a point to share he is also pleased with the success of “Shop Maryland Tax-Free Week” which recently ended.  The exemption of the six percent sales tax helps at a time when many working families are purchasing back to school items for their children.

The Maryland state and Frederick County elections will be held in 2014.

Stay tuned.

 

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Sale of Montevue/Citizens Delayed

George Wenschhof

On Wednesday, with a 3-0 vote, the Maryland state Board of Public Works voted to delay the sale by Frederick County government of the Citizens Care and Rehabilitation Center and Montevue Assisted Care facilities.

Maryland Comptroller communications director Andrew Friedson shared with me "Comptroller Franchot has consistently raised concerns with the Board of Public Works voting on contracts that are the subject of active litigation. In the interest of due process, he moved to table a vote on the sale of Citizens Care and Rehabilitation Center and was pleased to have the unanimous support of the governor and treasurer."

A sizable number of Frederick county citizens who opposed the sale attended the hearing.  Local activist Val Dale, who is one of many who have advocated against the sale of the facilities, posted on her “Stand Up Frederick” Facebook page “I am SO proud of the community we live in…today, the residents and staff of Citizens/Montevue can breathe a bit easier because WE WON the request to delay the sale of this treasured set of facilities that is part of our long storied history!”

Local attorney Leslie Powell, who is representing clients who have filed suit to stop the sale of the facilities, attended the board of public works meeting yesterday.  She sent me an email saying “the board of public works made a reasoned and wise decision.”  She added “we are very pleased.”

Interestingly, Republican Frederick Board of County Commissioners president Blaine Young went with a check for $200,000 to reimburse the state for a loan used, in part, for the construction of the brand new facilities. The loan repayment was not included in the original contract of sale.

An online poll by The Frederick News Post today currently shows 75% believe Frederick County should delay the sale of Citizens/Montevue.

Stay tuned.

 

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When Ideology Trumps Reasonable Representation, Bad Things Happen….

George Wenschhof

The proposed sale of the Citizens Care and Rehabilitation Center and Montevue Assisted Care facilities, illustrates the latest example of Frederick County government behaving badly.

Immediately following the 2010 election, new board of county commissioners’ president Blaine Young (R) proclaimed Frederick County “Open for Business”.

Joining Young as newly elected Republicans on the five member board were Kirby Delauter, Billy Shreve and Paul Smith, who I quickly dubbed with the moniker; “Blaine and Company”. The moniker resulting from their like ideology and the carte blanche votes Delauter, Shreve and Smith gave to Young on anything Young would propose.

Fueled by the “tea party” fervor, prevalent across the nation, that promoted less government and less spending, Blaine and Company wasted no time in promoting these ideals, a disturbing pattern of governing that clearly illustrates how following ideology often trumps reasonable representation.

The result, was whether it was the spending of $25,000 of taxpayers’ money for a poorly and hastily prepared privatization report, actions taken to reverse county property zoning, drastically reducing or eliminating funding for community nonprofits at a time when their services are most needed, an ill conceived $100 rebate to property owners, establishing a nonreversible 20 year county-developer agreement, to the latest effort to sell quickly, without due diligence, the Citizens/Montevue facilities, Blaine and Company are angering voters and invoking calls for change in next year’s election.

As more details emerge surrounding the proposed sale of the Citizens/Montevue facilities, voters are asking; “why”?

The rush to privatize has once again exceeded common sense, with board president Young denigrating along the way, those who question his move to sell these facilities.

Young defends the sale of the newly constructed facilities, pointing to deficit spending by the county to fund the facilities and poor management, citing in particular, the failure to properly collect account receivables from Medicaid and Medicare.

To make the $30 million contract offer work, Young has said the county would make up the difference in the $38 million owed by the county for the construction by throwing in $5.8 million in taxpayer funds from a county reserve fund and adding $1.9 million in account receivables.

One source close to the negotiations, who asked not to be named, informed me the account receivables Young is throwing in at $1.9 million are actually valued closer to $4.7 million. To sweeten the pot, the 7.5 acres the facilities sit on has been subdivided and thrown in the deal for free by Young. A local real estate Broker informed me the land would have a value of at least $3 million.

Interestingly, it was an action taken by the current board, following their election that added to the deficit funding the facilities have experienced.

It seems the previous licensed county administrator, upon returning from maternity leave was terminated and replaced, through a sole source (preferred vendor) process, with a private firm, who has since reportedly cycled through five managers.

The revolving door of managers only served to exacerbate, a difficult and cumbersome Medicare and Medicaid account/receivable system, adding to the deficit spending Blaine and Company are using as the reason to sell the facilities.

In addition to the many questions surrounding the financial aspects of the deal is perhaps, most important, the question; “Can the land and facilities be sold”?

Local historian and former mayor Paul Gordon in a column published in The Gazette writes, in part, “The unique 1828 Montevue deed is so detailed, it lists responsibilities and names, and furthermore binds their successors to “forever warrant” and “forever defend” the covenants.

It is “for the Benefit of the Poor of Frederick County and no other use, intent, purpose whatsoever forever.”

The Citizens/Monevue facilities board of trustees, seeking legal guidance, has written a detailed letter expressing their questions pertaining to the sale of the facilities. This was forwarded to the state attorney general office by Delegate Galen Clagett (D-district 3-a).

Further prickly questions include whether the state board of public works would have to approve the contract as there is a $250,000 state grant that needs to be reimbursed and whether donations that were received from the public would also need to be paid back.

Local attorney Leslie Powell, who is already appealing the subdivision of the property, informed me she has been retained by interested parties and intends to pursue legal recourse should the board of county commissioners ratify the contract.

Details surrounding the contract purchaser that add further doubt to ratifying the proposed contract offer were revealed in a recent article by Bethany Rodgers of The Frederick News Post entitled "Inspections detail deficiences at Aurora nursing homes".

Taking a sound approach to examining the privatization of some government services may be helpful. However, government is not, and will never be a business.

Government exists to help level the playing field, to serve as the referee, ensuring all are treated in an equal and fair manner. It should never be operated with a profit motive in mind, but rather to provide needed services for the benefit of all citizens. 

Time is needed to conduct further analysis, receive answers to many questions and to allow the board of trustees to hire a new experienced administrator to replace the poor management provided by the current sole source contractor. This would aid in improving the bottom line while also fulfilling the intent of the deed.

The rush to sell the brand new Citizens/Montevue homes by Blaine and Company demonstrates their continued reckless attempts to pursue a dubious privatization ideology, fraught with problems and the lack of sound judgment.

One more reason to vote for change in 2014.

 

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