New Haven Independent

Marshals’ Sweetheart Deals Targeted

by Melissa Bailey | December 8, 2008 8:44 AM | Permalink | Comments (17)

Taking a crack at reforming a political patronage system, the city has drafted a new bidding process that could drive down marshal fees.

The proposed new bidding process targets the hefty fees that taxpayers have to pay when a marshal slaps them with a city foreclosure suit or serves them a tax warrant. The matter will be discussed at a meeting Monday night of the Board of Aldermen’s Legislation Committee.

The draft Request for Proposals, created by East Rock Alderman Roland Lemar, Hill Alderman Jorge Perez and the city’s purchasing agent, Michael Fumiatti, addresses an issue that surfaced in the wake of the city’s towing scandal. After the Independent reported that a state marshal had waived towing the car of a politically connected reverend, the city was forced to change who oversees its aggressive towing practices. Public pressure mounted to take another look at the lucrative work that politically connected state marshals are performing for the city, including getting rich off of a foreclosure crisis.

In the wake of the marshal/towing scandal, Perez proposed a new law that would spread the marshal work out among more people, instead of being doled out to a select few political insiders. The proposal was discussed, but not voted on, at a hearing in July.

Crippling Fees

Lemar, Fumiatti and Perez formed a working group to look at reforming the process. They came up with an RFP process that addresses a related concern: Not which marshal gets the work, but how much they charge taxpayers for doing it.

While marshals were booted from overseeing towing work this year, they still work for the city serving tax warrants, foreclosure papers and letters of zoning and building code violations. After reforms to what was designed as a political patronage system, marshals are now certified by a state commission instead of being appointed by a high sheriff. They work as independent contractors.

State law defines maximum fees for each task a marshal must perform: for example, a dollar per page for making photocopies; 40 cents for a signature. Most marshals charge the maximum allowed by state law.

The total cost each marshal ends up charging can vary dramatically, however.

In 2007, four marshals did foreclosure work for the city. The marshals get hired through law firms that the city contracts with.

Some marshals charged way more than others, by a difference of $200 per writ, according to a study done by Fumiatti’s office.

The study found the following:

In 2007, marshals issued a total of 991 foreclosure writs, charging a total of $401,104. (The money comes from the scofflaw taxpayers, not the city.)

The bulk of the work was performed Susie Voigt, the Democratic Town Committee chair, and Peter Criscuolo (pictured at the top of this story), a fund-raiser for New Haven Mayor John DeStefano and chairman of the North Haven Democratic Town Committee. (Click here to read how much they made for their city-related work.)

Voigt served 415 writs totaling $144, 274.
Price per writ: $348. (She has since stopped doing city-related foreclosure work.)

Nick Baletto, a former DTC chair, served 155 writs totaling $70,930.
Price per writ: $458.

Criscuolo served 337 writs, totaling $185,740.
Price per writ: $551.

Andrew Esposito, a Democratic Council Member of North Branford, served 80 writs. His payments had not yet been totaled.

The figures are net income, not gross earnings.

Why did Criscuolo charge so much more? The writs he served had more tenants on average than the writs other marshals served. (He couldn’t be reached for comment for this article.)

Added up, these fees can prove crippling.

For example, when Criscuolo served foreclosure papers on a vacant property owned by New Haven State Rep. Bob Megna, the fees caused his debt to balloon from $1,700 to nearly $3,000. In a a complaint before the State Marshal Commission, Megna claimed Criscuolo had invented two tenants to serve papers to, in order to jack up the fees. The commission has not made a final ruling. Criscuolo has maintained that serving the nonexistent tenant was an honest mistake.

A Stab At Reform

Outraged by the first-hand experience, Megna is pursuing legislation to change the marshals’ fee structure.

Meanwhile, Lemar and Fumiatti are doing what they can locally to lessen the blow to residents who fall behind on payments.

Their draft RFP creates a competitive process that they hope would drive down marshals’ fees. The bidding process is based on one that’s used by the Housing Authority.

Under current rules, if a marshal wants to work for the city, he or she has to get hired by a law firm that does foreclosure work, or get on a list to serve tax warrants and letters for building code and zoning violations.

Under the proposed RFP, marshals would name their best price for a list of services, such as serving a tax warrant or making photocopies.

Of those who apply, up to six would be placed on a list to do city-related work. The hope is that one or more of them is willing to cut the city a deal.

“Competitive processes lower prices,” reasoned Lemar. He declined to say whether each marshal would have to match the lowest bid. After the top six bidders are chosen, they’d negotiate with the city on their fees, he said.

Lemar hoped the RFP would open the door for more marshals the chance to work for the city.

“There’s a lot of people out there who feel they can work for the city,” he said. He said he hoped to change the process so that marshals “don’t feel like they have to be ‘one of the chosen few’ to get this work.”

The end result would be, as Perez had originally suggested, a list of approved marshals that the city and its foreclosure attorneys would rotate through.

Lemar was quick to admit that the proposal falls far short of reforming an antiquated system of political patronage. Most marshals are political animals who were appointed to the position, and grandfathered into the system when it was reformed. Some new blood will come in soon, as the state is screening candidates to fill six vacancies in New Haven County, but demographics have been slow to change. Of New Haven county’s 56 marshals, only one is a woman. The number of blacks and Latinos can be counted on one hand.

Barring more wide-sweeping reform, Lemar and Perez said they hope their local efforts will make a small impact.

“I think this is going to be more fair,” said Perez.

Is he concerned that knocking prices down might have an impact on quality?

No, replied Perez. “How much quality, or talent does it take to serve a piece of paper?”

He said the RFP process would address his call for reform.

“It appears that we’re going to come up with the intent of the proposal, which is a rotating list,” he said.

The RFP process, which the city hopes to roll out soon, is an administrative procedure that requires no aldermanic approval. Perez’s marshal ordinance, which would create a more transparent hiring process and require city agencies to spread the work out evenly between marshals on the list, remains before the board.

The Legislation Committee will discuss both proposals at its meeting tonight at 7 p.m. in City Hall.

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Comments

Posted by: anon | December 8, 2008 10:27 AM

I've got fifty bucks that says that either the cop union, the firefighter union, the Board of Ed or the State Marshals take Lemar out of the picture before his next election bid. You can't make these kind of enemies in this town.

Posted by: jay | December 8, 2008 10:32 AM

Thank you Roland Lamar for actually looking out for the little people. We say that we care for the under-privileged, but when push comes to shove, we tend to stick it to them. Imagine being forced into foreclosure and knowing that the State Marshalls are getting rich on your hard luck. And what more unfortunate, they don't even hand their head in shame. The stand there hand in hand with the big guy.
Again, Roland, thanks for helping the citizens of this City.

Posted by: Adam | December 8, 2008 10:42 AM

Is it just me, or are Lemar and Perez unstoppable if they work together? Maybe Perez should run for Mayor and Lemar for City Clerk and they kick the Destefano/Smith team out?

Posted by: Nipe | December 8, 2008 11:48 AM

Adam,

You clearly do not know these individuals -Perez and Lemar would kill each other if they were running together and there is NO WAY that Lemar would concede the higher office if they decided to run as a ticket. Perez is an old-timer, politically astute and comfortable being an Alderman and exerting his power from the role he has. He doesn't need external validation. Lemar is an overeager idealist, brilliant but politically naive and unwilling to take advice from more seasoned and respected colleques. He'll run for congress one day and lose the New haven seat to a suburbanite.

Posted by: robn | December 8, 2008 12:11 PM

NIPE,

What you see as "naivete", East Rock sees as "principled. New Haven needs more alders like Alderman Lemar.

Posted by: James | December 8, 2008 1:33 PM

Adam, you seem to imply that the Clerk position is actually active and conducts some kind of business. While the clerk's office does process certain items, the clerk himself does very little and is paid handsomely for it. If you're looking for a position that is more like the Mayor's right hand, I'd think CAO would be more likely to fit your bill. Smith is just a political lackey who collects a paycheck and does very little else.

Either way, good for Lamar and Perez, whatever fate ultimately awaits them.

Posted by: Robert Megna | December 8, 2008 1:33 PM

With regard to foreclosures marshals can earn from delivering the paper writ either to the property owner or dropping it off at their place of abode. They can also earn by collecting the outstanding taxes and keep up to 15% of the outstanding taxes and the 18% interest. I will propose scaling that down as the tax warrant goes up in value. For instance if the outstanding tax warrant is 100k maybe the max commission should be something like 5%.

I think maybe the marshals interpret the law with regard to the Lis Pendan as an additional service while it is merely a 2 page attachment to the writ. The marshals normally charge for a second sevice even if it is one trip to the place of abode.

I was also thinking about proposing the marshal commission advertise to the public when a postion is open. Often people ask me how can they become a marshal. Seems like you have to know somebody. Maybe the marshal commission should notify the public when a spot is open. there are other items I am exploring also.

Posted by: Marshals suck | December 8, 2008 1:39 PM

Thank you Perez, Lemar and Fuminati!

Posted by: jawbone | December 8, 2008 1:47 PM

NIPE,
This country, over and above New Haven, needs more overeager idealists. The kind of cynicism expressed in your post is really getting tired. I am personally glad that someone around here is willing to at least try and take on a corrupt system that is doing no one except themselves any favors. A system that relies on opinions like yours in order to survive.

Posted by: Exiled Italian Shill | December 8, 2008 2:11 PM

Mr. Megna:

Once again allow me to point out that the General Assembly, Mr. Megna included, voted to set the Marshal rates. You didn't have a problem raising it then, what has changed? Because you got served?

Want to really do something for the people? Fix the attorney fees that foreclosure attorneys are allowed to charge. You think that marshal fees, which you voted to increase, are high? They are nothing compared to what the attorneys are making.

I don't care which Alderman brings out the bill it is a good thing. I don't care if Perez or Lemar get the credit this is a good thing. But lets be honest here. Put the foreclosure attorney contracts out to bid with lower fees, then you can bid out the marshal work, but not before. Lower attorney fees and lower marshal fees are what you will get.

In the end you might get criscolo that wins the bid or you might not. you might oust him forever or you might wind up owning him forever with this attempt.

As for who gets made marshals, Bob you know who does that. I believe that Marty Looneys guy Vinney Mauro sits on the commission and helps make those appointments.

Posted by: Robert Megna | December 9, 2008 11:46 AM

Mr Shill,

Think positive. What is happening here is the normal process of change or lawmaking. Seeing what appears to be unjust, having public debate at the assembly and making law, if the debate moves forward. I believe there is need in this instance. We will have debate and see where it goes from there. I am thankful this situation happened to me. It enlightened me to the potential need for change.

Posted by: Anon | December 9, 2008 12:31 PM

I would vote for Lemar if he ran for Mayor?
Who's with me?

Posted by: Disgruntled Democrat | December 9, 2008 2:07 PM

Mr. Megna,

If you want to affect the process of change in law-making, not only should you be looking at the fees charged by attorneys and marshalls but also at how UI has to bid for the electicity that they pass on to us. More of us pay for electricity than ever will be foreclosed.

It was the assembly that years ago that took away UI's right to produce electricity and now has a burdensome system that ensures we pay top dollar. Why do they have to accept the highest bid for natural gas as their baseline and then use a middle man to further jack up the price for us to get the power we need? This has nothing to do with the Section 107 increase from last year, but everything to do with government skewing the free market.

It smells of political corruption or ineptitude, and everyone blames UI when it is only operating under the system that you and your peers created. Change the system to competitive bidding, with no artificial thresholds such as the highest bid for natural gas, remove the unnecessary middle man and save all of us 25 - 40% off our electric bills.

Posted by: Zen | December 9, 2008 3:33 PM

Anon - We are all with you on that one! (at least us East Rock/Wooster Sq. types are) Problem is, I don't think he wants it and people tell me he is a DeStefano supporter. Someone should start a Draft Lemar website!

Posted by: Robert Megna | December 10, 2008 12:23 PM

Dicruntled Dem,

Yes the system is sort of an unregulated monopoly of sorts (deregulation). A bad economic model.

There is constantly put forth legislation to reduce windfalls. The bidding regulations are established on a regional level. I opposed deregulation at the time but was not in the assembly at the time. The utilities and power generators have a powerful presence in Hartford which I beleive is in part a reason why we seem to be in this place with the highest rates in the lower 48. I only wish the consumers had better representation at the table when deregulation was negotiated. Seems like consumers did not have a great presence. Call me sometime to talk more about it.

Posted by: Disgruntled Democrat | December 10, 2008 4:55 PM

Mr. Megna,

Thanks for the note. I would love to speak with you, possibly some time next week. How would the consumers get better representation on this matter. I think people reading these posts might be interested in having a say.

Posted by: bloggersareidiotsb | December 10, 2008 9:53 PM

the dribble posted on this cyber rag just amazes me. that somehow a deadbeat scofflaw state representative has turned the fact that he owed taxes to the city for long enough that forecloswure proceeding were beginning into a "let's reform the laws regarding state marshals" just blows my mind.

Marshals’ Sweetheart Deals Targeted

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