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County may privatize jail
By The Beaver County Times
Published: 06/23/2006

BEAVER, PA - A Massachusetts company could take over operation of the Beaver County Jail by October after county commissioners on Thursday declared negotiations with the officers at an impasse and unanimously approved privatizing the facility.

"This," said Commissioner Joe Spanik, "is the next step forward."

Commissioners had approved a contract with CiviGenics earlier this year, but its execution hinged on the results of contract arbitration with officers, who have been working without a contract since Jan. 1. Thursday's vote gave CiviGenics permission to begin hiring employees and making plans to assume control of the Hopewell Township jail.

Citing an estimated savings for the county of nearly $4.5 million over three years, commissioners Chairman Dan Donatella said the board could not allow the process to drag on indefinitely because with each passing day the county spends more money.

"I personally believe that this (vote) is absolutely justified," he said.

"You have to control the costs of government," said Commissioner Charlie Camp. "Privatization works, and it saves money."

County Solicitor Myron Sainovich said officials hope to have CiviGenics in place no later than Oct. 15.

According to financial estimates released by the commissioners, the county would save approximately $495,500 if CiviGenics took over the jail for the last three months of the year, and nearly $2 million in each of the next two years.

Sainovich, who represented the county on the three-member arbitration panel in April, said Butler County arbitrator Marc Winters, the agreed-to neutral party, gave his proposal in May, but the county rejected it. Sainovich said the union rejected the proposal as well, although no union representative would confirm that on Thursday.

Rick Adams, a representative for Service Employees International Union Local 668, argued for the officers in arbitration; he could not be reached at his Erie office. Sainovich would not release Winters' proposal because it was not a final decision. Winters did not return a telephone message left on Thursday.

But Sainovich said late Thursday afternoon that Winters was preparing a revised proposal that would be given to both sides for consideration. Tom Trkulja, the officers' chief union steward, said he was unaware of the commissioners' vote.

Trkulja referred additional questions to Dave Ramsey, the officers' SEIU business agent. Ramsey did not return a message left at his office. Peter Argeropulos, CiviGenics' chief operation officer, said company officials are expected to "sketch out what our plan will be" in meetings with county officials next week. "I don't see (the change) taking more than 120 days," Argeropulos said.

CiviGenics officials have said interested officers would be interviewed for jobs with their company once it was authorized to take over the facility.

Commissioners said this is the most significant cost-saving change in county government since they implemented an austerity plan three years ago.



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