Oceanside sanitation board slashes benefits after past scandal

Amid growing concern among residents over the benefits that the Oceanside Sanitation District No. 7 board has received for many years, its members unanimously voted to end dental and health plans for commissioners at a March 5 meeting.

“This is an issue that’s been reoccurring over the past couple of years, and many people from the public have raised concerns,” Co-chairman John Mannone said. “. . . It will encourage the end of unscrupulous behavior down the road, as well as save a lot of money.”

Mannone said past boards used the benefits as a “draw” to attract commissioners, and called them “excessive.” In addition to a $7,500 stipend to serve on the board, all five commissioners each received health and dental benefits of up to $33,000 per year, a total of $165,000. The decision will nix those benefits and save the district and taxpayers money.

“It eliminates the potential of a lot of shady stuff that has gone on,” Mannone said, “because a boss used to be able to control these commissioners by these benefits because everyone wanted them.”

Mannone referred to former sanitation director Charles Scarlata, who was the subject of a damaging audit in 2009, which revealed that in addition to his $146,000 annual salary, he received about $20,000 in compensation time, two $300,000 life insurance policies that were paid for by the sanitary district and post-retirement pay of $25,000 a year for 15 years. In addition to the auditor’s findings, Scarlata was also accused of nepotism after inheriting a supervisor’s role from his father, Michael.

The audit led to turnover on the board, years of controversy and, eventually, to the commissioners filing a lawsuit against both Scarlatas to recoup the money. Last March, the board announced a $300,000 settlement in its litigation against the former supervisors, who were accused of collecting more than $800,000 in illegal deferred retirement payments after audits were completed by the state and county comptrollers.

The elder Scarlata received $391,000 in deferred payments from 1998 to 2013, according to a report by State Comptroller Tom DiNapoli, while Charles received $421,353 in payments in 2012 and 2013, after he retired. DiNapoli said the more than $800,000 worth of deferred retirement payments violated New York finance law, which led to the lawsuit.

Mannone said the board has discussed losing the health and dental benefits for about three years, and that many residents have been concerned about it in the wake of the Scarlata scandal.

“It’s a really strange benefit,” he said. “We’re at a state right now with this reform where we need to basically bring us into the modern era and be accountable. It’s really an excessive benefit that’s always been suspect.”

Mannone noted that commissioners have other means of receiving benefits, including through their full-time jobs, from their spouses’ plans or, in the case of former district employees, through their pensions.

On June 18, Mannone and Ryan Hemsley are up for re-election to the board. Hemsley became a commissioner in January after Matthew Horowitz stepped down, noting that he was busy with his full-time job. Because he took over for Horowitz near the end of his term, Hemsley must run for sanitation commissioner just two months after being appointed. Mannone has been a commissioner since 2015.

As of press time, no one had filed a petition to run against the incumbents for a five-year term, but potential nominees have until a month before the election to submit an application, which is likely to happen after the past several elections have been contentious.

The department is also doing what it can to combat the coronavirus outbreak, Mannone said. A maintenance crew has been hired to disinfect sanitation headquarters and the cabins of trucks, and all drivers and supervisors have been asked to wear gloves at all times. Supervisors, he said, held a meeting with employees on March 12 to discuss the issue, and he was pleased with their response.

“The most impressive thing was their attitude,” Mannone said. “They’re like first responders. They’re like, ‘If it gets bad, we’re still coming. The garbage has got to get picked up.’”

Chairman Austin Graff said sanitation officials were taking it day by day when it comes to trash collection, and they remain in contact with the Town of Hempstead. “We are an essential function, and if we do not pick up garbage, there will be a different health issue,” he said. “We’re hoping that the community stays healthy. We’ll get through this together.”

Mannone added that employees have been told to stay home if they feel sick, and that supervisors will drive the trucks if needed. “We’re in pretty good shape,” he said. “We accept this challenge, and the department is taking this very seriously.”