MOUNT CARMEL - Borough council has requested Mount Carmel Borough Police Chief Todd Owens to launch a criminal investigation into the operations of the Lower Anthracite Transportation System (LATS), specifically the operations and management of the former subcontractor King Coal Tours and owner Robert Else III, the former transit coordinator Gerald Matzura and the former transit manager Joseph K. Bass.
A letter signed by all seven borough council members was read by President Tony Matulewicz Thursday night at the borough council meeting and was immediately presented to Owens.
"Recent information acquired from multiple sources regarding the operations of the LATS has led the Mount Carmel borough council to believe that reasonable suspicion exists that criminal activity may be afoot," Matulewicz read.
The records for the LATS system based on bills submitted by Kulpmont-based King Coal Tours to the borough have many discrepancies, including charges for fuel not used by LATS buses, for tires and fuel filters unable to fit on the vehicles and for what the borough calls excessive labor costs.
When borough officials originally questioned these discrepancies in July, King Coal management began lowering monthly bills from approximately $35,000 in July and August to $17,272 in January.
King Coal then effectively ended its contract with the borough, and council approved the Shamokin-based Catawese Coach Lines to finish out the fiscal year, which resulted in a price of $10,232 in February.
"I will absorb this letter and see what direction to go, and what agency would be the best fit to help with a case of this magnitude," Owens said following the meeting.
The "daunting task" may require forensics and computer experts, and assistance from the state or federal agencies, he said.
PennDOT provides LATS funding from federal and state sources, including the Lottery Senior Citizen Free Transit Fund, and requires reports on the operation. The borough, which is awarded grant money, enters into a contract with a bus service provider, and reimburses that company for its expenses in operating the system. LATS owns its fleet of four buses.
Councilmen Robert Barrett and Joseph Lapotsky made and seconded the motion to request the investigation, and it passed unanimously 7-0.
The council also unanimously accepted the recommendation of the evaluation committee comprised of council members Matulewicz, Lapotsky and Robert Shirmer, LATS Executive Director Megan Janolek and borough manager Edward Cuff III to tentatively award the new LATS contract to Catawese.
Matulewicz said Catawese, who scored the highest among the other bidders, was accepted for various reasons including having a headquarters in Northumberland County and operating the system with no problem since February.
Other submissions included Rabbittransit, part of the York County Transportation Authority, MV Transportation based in California and Virginia Regional Transit.
Matulewicz said the details of the three-year contract will be determined and the state must sign off on Catawese.