Northeast PA Business Journal - Jan. 2016 by CNG Newspaper Group

Business Journal NORTHEAST

$1.50

PENNSYLVANIA

THE REGION’S AWARD-WINNING SOURCE OF BUSINESS NEWS AND INFORMATION

JANUARY 2016 VOL. 31 NO. 01

wage growth to lift NE Pa. from ‘economic doldrums’

2016 Economic Forecast By Dave Gardner

NEPA may have a reputation as a closed tribal region, but a mix of national and global events may greatly influence the regional economy during 2016. Lynn Evans, president and CEO of Northeastern Financial Consultants, forecasts that national economic metrics will bleed into the regional economy. She forecasts that unemployment will be under five percent during 2016 and the national GDP will measure about 2.5 percent, or perhaps even a bit higher. Inflation will be measured at approximately 1.5 percent. Meanwhile, retail prices of fossil fuels for energy will be increasing from 10 percent to 15 percent above current rates. “Interest rates have been a subject of ongoing speculation, and I believe we will experience a minimum of three increases from the Fed during 2016,” says Evans. “During 2016 this Fed interest rate will wind up at around 1.5 percent.” According to Evans, the stock market will continue to move along with a slower expansion than the current rate of growth. She expects a six percent to eight percent overall return will be achieved during 2016, with periodic corrections between 10 percent and 20 percent. “The bond market will still struggle as increased interest rates from the Fed make the current supply of bonds unattractive,” says Evans. Regionally, she notes that housing prices have increased, but only with the higher valued homes, and this trend will continue. New housing starts are fewer than what historically has happened within a

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recovering economy at this stage, and this scenario is generating a very robust seller’s market. Evans also has concerns that issues in the Middle East could explode and cause a serious economic threat worldwide. The Greek economy and related Euro zone issues will continue to haunt the European markets. “China’s economic downturn might have an impact on us, but probably but not as much as many analysts fear,” adds Evans.

All About wAgEs

Exceptionally low mortgage rates will finally be ending but consumer spending will remain healthy and create a slight up-tick for the regional economy during 2016, forecasts Kurt Rankin, assistant vice president and economist with PNC Financial Services Group. He notes, with curiosity, that low gasoline prices have not provided a massive economic boost. Employment issues rank near the top of concerns for Rankin, and he has observed that the Allentown area is doing somewhat better with

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this metric than NEPA, which he says has some catch-up work to do. Some of these job gains are being achieved in relatively high-paying industries including manufacturing, transportation, and construction, but Rankin points out that wage growth is missing. “Overall manufacturing is not bouncing back and NEPA still has an excess labor supply, which is depressing wage growth,” says Rankin. “Healthy wage growth is the key to pushing NEPA economically forward, but we still have excess employment talent out there and this is not forcing

FOCUS ON DOWNTOWN WILKES-BARRE.................PAgE 06 DOWNTOWN RESURgENCE gOOD FOR ALL OF NE PA.

BUDgET NEWS............................ SEE COVER STORIES ON PAgES 11, 15, 16, 20.

wages up.” Rankin therefore emphasizes that wage growth is the “bottom line” for NEPA to break out of its economic doldrums. This growth would kindle consumer spending, stimulate business, and force hiring while forging an on-going trend of business expansion. The subject of energy prices is another matter. Even if Iran is able to once again sell its oil globally, resulting in a price battle with Saudi competitors, Rankin does see evidence that a big economic stimulus will occur. “Just how low does oil have to go to become a big economic stimulus?” questions Rankin. “Plus, oil prices must go back up.” He adds that the close proximity of the Marcellus Shale’s natural gas must bring industrial development to NEPA. However, vehicle conversion to natural gas will be delayed by the current dip in gasoline prices, but as America inevitably uses more natural gas an economic conversion will oc-

MEET DR. MICHAEL ROgERS AND APRIL ROgERS FROM COMPLETE HEALTH DENTISTRY OF NEPA.

Please see COVER STORY, Page 43

FIND US ONLINE AT BIZ570.COM

SMALL BUSINESS SPOTLIgHT.......................PAgE 23

DANCHACK

REILLY

CAMPBELL

FOCUS ON BANKINg AND FINANCE....................PAgE 05

No Media Covers the Nation’s #1 Newspaper Market like...

Market Fact: Scranton/ Wilkes-Barre DMA is the

Standard~Speaker

Newspaper Market in the United States

Times, Voice, Speaker & Republican Herald • Total Daily Readers 275,508 • Readers in Luzerne, Lackawanna & Schuylkill County 193,088 or 42.7% of Adults

48.0% of Adults Read A Daily Newspaper Yesterday in Northeast PA

Times, Voice, Speaker & Republican Herald • Total Sunday Readers 303,762 • Readers in Luzerne, Lackawanna & Schuylkill County 217,923 or 48.2% of Adults

39.0% of Adults Read A Daily Newspaper Yesterday in the United States

1 2 3 4 5

Scranton/WB DMA Pittsburgh DMA Honolulu DMA Buffalo DMA Hartford/New Haven DMA

Integrated Newspaper Audience (Read the daily, Sunday or Web past 7 days) • Total Times, Voice, Speaker & Republican Herald INA 423,752 • Readers in Luzerne, Lackawanna & Schuylkill County 302,000 or 66.8% of Adults

48.0% 44.8% 44.4% 44.1% 44.1%

*Total Luzerne, Lackawanna & Schuylkill County Adults 451,816

Source: Scarborough WB/Scr Release 2 2014

For Advertising Information In Scranton Call (570) 348-9100 ext. 5297 In Wilkes-Barre Call (570) 821-2037, In Hazleton Call (570) 501-3520 and in Pottsville Call (570) 628-6070.

Source: Scarborough Multi-Market Release 1 2014 & Wilkes-Barre/Scranton Release 2 2014

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JANUARY 2016

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NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 3 TS_CNG/ADVERTISING/AD_PAGES [ADB03] | 01/06/16

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Business Journal NoRtHeASt

PeNNSYlVANiA

Vol. 31, No. 01 • JANUARY 2016 149 PeNN AVeNUe ScRANtoN, PA 18503 www.biz570.com

on thE CovEr WAgE groWth to lift nE pA. froM ‘EConoMiC doldruMs’

The Northeast Pennsylvania Business Journal is a member of Times-Shamrock Publishing Division

Editor in ChiEf christine Fanning — ext. 5415 cfanning@timesshamrock.com Contributing rEportErs Dave Gardner, Kathy Ruff, Phil Yacuboski AdvErtising sAlEs ExECutivE Judy S. Gregg — ext. 5425 jgregg@timesshamrock.com

Ne Pa may have a reputation as closed, tribal region, but a mix of national and global events, may greatly influence the regional economy, during 2016.

Cng sAlEs MAnAgEr Alice manley — ext. 9285 Cng MAnAging Editor tom Graham — ext. 3492

A notE froM thE Editor Curiosity leads to career change

Seven years ago I made a career move. After 15 years working in publishing, with 10 of them at this publication, as managing editor, I decided I wanted to be a nurse. Actually, I had been curious about nursing and nurturing the ambition for awhile; but in 2009, at the height of the Great Recession, Times Shamrock helped me make my move. The company needed to whittle down its workforce and offered all its employees, with a certain amount of time served, a buyout. I took it and went off, on my merry way, to nursing school. Nursing school was the most daring and challenging venture of my life. It was difficult, time consuming and stretched me in ways I did not know was possible. When I graduated, daily work in one of our area’s hospitals, and then in personal care, became the most daring, challenging and mind and body-stretching thing I did every day. There are so many colorful words I can use to describe the five years I spent working in healthcare; but the words that come to me now, that I’m back in my first career, are: Patience,

insidE

FiND US oNliNe: WWW.BIZ570.com facebook.com/570 • twitter.com/biz570

with myself for not knowing everything or doing everything right in the beginning; Satisfaction; knowing that I helped someone on their way to recovery; Sadness, when realizing that a patient I had interacted with daily would not get better. I wasn’t planning on changing careers again, so soon, but former editor Liz Zygmunt’s departure, for a career in public relations, opened the door for my re-entry into my first “curiosity” : journalism and publishing. I’m still “nosy” about nursing. I should be, because after all, I will always be a nurse. The difference is now, as editor, I will bring my knowledge of health care to this fine business paper that Liz nurtured over 15 years. Please call or e-mail me with your questions, comments and the good news of your businesses.

Christine

570-348-9100 cfanning@ timesshamrock.com

ADVeRtiSeR iNDeX northeastern rehabilitation Assts.................. 18

focus on Wilkes-barre...............7

fidelity bank .......................................... 15

penteledata............................................ 19

focus on banking & investment ...8

fM Kirby Center....................................... 27

peoples security bank & trust Co. ................ 10

Cover stories ..........11, 15, 16, 20

ingargiola Wealth Mgmt. ............................. 9

pnC bank............................................... 44

MAiling AddrEss: NPbJ editorial Dept., 149 Penn Ave., Scranton, PA 18503

for the record ................. 29, 31

Kings College.......................................... 28

schaedler Yesco distribution....................... 26

EditoriAl E-MAil AddrEss: biz570@timesshamrock.com

Economy..................... 10-13, 16

lewith & freeman ..................................... 7

scranton Chamber of Commerce........................23

luzerne County Community College ............... 17

subway development of Eastern pa. .............. 42

Mericle CoMMercial real Estate ................... 3

Wilkes university family business Alliance ..... 27

AdvErtising/subsCriptions (570) 207-9001 or (877) 584-3561 Fax: (570) 207-3452 prEss rElEAsEs/storY suggEstions (570) 207-9001 or (877) 584-3561 Fax: (570) 207-3448

Economic development............ 39

NPBJ is protected under the federal copyright Act. Reproductions of any part by any means or facsimiles without the express written permission of the publisher are not permitted. Reprints of NPBJ articles are available. Northeast Pennsylvania Business Journal cannot be responsible for the return of unsolicited materials — manuscripts or photographs — with or without the inclusion of a stamped, self-addressed return envelope. Information in this publication is gathered from sources considered to be reliable, but the accuracy and completeness of the information cannot be guaranteed. No information expressed herein constitutes a solicitation for the purchase or sale of any securities. Northeast Pennsylvania Business Journal (ISSN 1078-5698) is published monthly except twice in the month of may by The Scranton Times from offices located at 149 Penn Ave., Scranton, PA. Periodicals postage paid at Scranton, PA. The Journal serves business owners, managers and professionals in a 10-county region. Subscriptions are available for $28 per year, $49 two years or $64 for three years. PoSTmASTER: Send address changes to Northeast Pennsylvania Business Journal, 149 Penn Avenue, Scranton, Pa.18503.

Education ....................... 14, 15 healthcare ..................18, 24, 25 heritage tourism.................... 39 Made in pa........................... 41 Management & leadership ....... 40 personnel ................... 30, 32-36 regional.............................. 26 small business spotlight .......... 23 state ............................. 27, 28

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JANUARY 2016

s u b s C r i p t i o n

banking Challenges ..................5

Community bank ...................................... 13

subsCribE to thE northEAst pEnnsYlvAniA businEss JournAl Payment enclosed 1 Year, 12 issues - $28 2 Years, 24 issues - $49

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Name_____________________________ Title/Position___________________ company_________________________________________________________ Business Type_____________________________________________________ Address___________________________________________________________ city____________________________ State __________ Zip______________ Telephone_________________________ FAX___________________________ Signature__________________________________________________________ For faster service, fax this card to (570) 207-3448 or call (570) 207-9001/877-584-3561 MAil to 149 Penn Ave., Scranton, PA 18503

Business Journal NoRtHeASt

PeNNSYlVANiA

The Region’s Award-Winning Source of Business News and Information

BANKING

Focus on Banking and Finance: Interest rate hike by fed signals improved economy Current low interest rates are a top challenge for the banking industry By Kathy Ruff

The first Federal interest rate hike since 2006 demonstrates the Federal Reserve Board’s confidence in an improved economy. Observers expect additional rate increases over the coming year in addition to December’s one-quarterpercent bump This activity represents a positive sign for the banking industry, hit hard with scrutiny and tightened regulations for its supposed contribution to the financial meltdown. With the economy’s improvement, what will the banking industry’s biggest challenges be in 2016? “The biggest challenge facing the financial service industry has been the low interest rate environment,” says Peter J. Danchak, regional president for the northeast region of PNC Bank, Scranton. “Even though you are booking new loans, the amount of money that you’re making is reduced thus making it hard to grow revenues. If the interest rates increase for the industry, that will improve the net interest margin which will allow the industry to become more profitable. It will also allow us to give our savers higher rates on deposit accounts.” Danchak sees the low interest rates since the 2007-2008 financial crisis, heightened regulatory scrutiny with the passage and implementation of the Dodd-Frank bill, the Durbin Amendment and related capital liquidity requirements as the primary challenges for the industry. “Looking forward, the regulatory environment is not going to change in the near future and collectively the industry has the responsibility to meet those requirements,” says Danchak. “As we look out into 2016, I think what we have to focus on are the timing of the Fed’s interest rate hikes, the global growth leading with China, the ongoing impact of low oil prices, the geopolitical and terrorism threats and wages and inflation expectations.” Danchak projects a 2.5 percent growth in the gross domestic product for 2016 and additional investment by business and in housing, which should spur more job creation. “I feel the banking industry has never

they want; they know what they can afford. This has put a lot of been stronger,” sand in the gears gets in the way of commerce. Those are the he says. “The kinds of things if you multiply that across the as far as being financial health able to get things several institutions and several industries, you of the banks as done,” Reilly a whole is very can see why regulation can be an issue and slow says. “Instead solid and I think down the growth rate in the economy, which in of going out and turn hampers job creation and reduces income that the industry trying to think of growth for the average citizen. “ is ready to help Danchak Campbell Reilly new and better businesses grow The Pennsylvania Bankers Associaways to serve the customer and getting new and expand in 2016.” tion (PBA), which represents 145 banks that do business, we have to find ways to compete. It Yet growth and low interest rates continues business in Pennsylvania, agrees. takes a lot of time and money to comply with to represent a challenge as the economy sus“As I have seen it for the past year and I see the regulations.” tains its sluggish recovery. this going forward for 2016, one of the greatest Reilly questions whether some of the new “When the interest rates are low, it’s a chalchallenges we face is the continued regulatory regulations put in place actually help consumers. burden that banks are facing coming out of the lenging situation for banks,” says Patrick H. “While the intent is certainly good – we want financial crisis and the Dodd-Frank Act,” says Reilly, president and CEO of Mauch Chunk Trust customers to have options on what they are Company, Jim Thorpe, Carbon County. “In a Duncan Campbell, PBA’s president and chief exdoing – I think most customers, if you interview ecutive officer, Harrisburg. “There is a package low-interest rate environment for a community bank like ours, probably 80 percent of your rev- them, they really wouldn’t see the benefit,” he of regulations I know that we’re supporting… says. “It becomes a paperwork exercise. When enue comes from the difference between what they want to borrow money, they know what you pay your depositors and what you earn on Please see FOCUS BANKING, Page 8 loans and investments.” With low interest rates, those margins decline while costs remain stable or increase. “The only way to deal with that is to try and grow, and it’s challenging to grow if the economy is not great,” says Reilly. “I don’t think anyone sees the economy being that robust and competition for loans is pretty strong, so it will be an interesting environment.” Reilly also sees demographics playing a role in the slow economic and industry growth. “You have an aging population, an aging workforce,” he says. “When you talk about the participation rate in the labor force and the fact that it’s the lowest it has been going back to the Dollars and Sense is must reading as we move into the 2016 tax season! ‘70s, is that because the economy is so crappy Financial information for the busy professional. Topics ranging from taxes and the jobs aren’t there or is it because people to insurance to investment choices to financial planning for college and other are leaving the workforce because they want to major expenses. retire? It’s probably a combination of both. If a customer is looking to retire, they are not lookThis focus will give you everything you need to know about your Dollars and Sense! ing to borrow money. They are looking to pay Publication Date: February 2016 • Advertising Deadline: January 15 off debt. Banks are usually about lending money For advertising information contact Judy Gregg 570-207-9001 extension 5425 and investing. If they don’t have a need to borjgregg@timesshamrock.com row, that’s an interesting little challenge.” Another interesting challenge focuses on complying with increased regulatory requirements created as a backlash of the financial crisis. “From what I have observed in our industry, The Region’s Award-Winning Source of Business News & Information • A Times-Shamrock Publication 149 Penn Avenue • Scranton, PA 18503 | 75 N. Washington Street • Wilkes-Barre, PA 18711 • 570-207-9001 • 877-584-3561 • Fax 570-207-3452 there has been a lot more regulation and that

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FOCUS ON WILKES-BARRE

Opinion: Downtown resurgence good for all of NE Pa. government, residents, and volunteers have worked hand-in-hand to advance a As I consider Downtown Wilkesstrategy grounded in the public’s shared Barre’s progress during the last few years, vision for Downtown. I find myself picturing something odd: After twelve years, the results speak for Christmas trees. themselves: almost $100 million in private Specifically, I’m recalling standing investment; 83 new housing units; an on downtown sidewalks during the past increase of 49 occupied storefronts over Newman month and spotting Christmas trees 2004’s figure; and a dramatically improved illuminated in the windows of loft apartcenter city that has become a regional dinments which did not exist a year ago – trees placed ing and entertainment destination. and decorated by people who have recently chosen to Downtown’s resurgence isn’t only good for live in Downtown Wilkes-Barre. Wilkes-Barre and the Wyoming Valley: it’s good for all Downtown’s quiet reemergence as a desirable of Northeastern Pennsylvania. place to live is a signature element of our center city’s Downtown Wilkes-Barre is a regional economic ongoing revitalization. As we look back on 2015, engine: a district representing only 7 percent of the the momentum of that revitalization is undeniable. city’s total land area, but holding 46 percent of all the Consider the following: jobs in the city and one of every 10 jobs in Luzerne • Today, new Downtown residents make their County. In fact, it’s the largest single employment homes in 38 new market-rate apartments that were not destination for both City and County residents – even present at the start of 2015; as 32 percent of downtown’s workers reside outside of • For the 11th consecutive year, Downtown enjoyed Luzerne County. a net gain in occupied storefronts; Downtown’s particular strengths include some • The Wilkes Enterprise Center opened on Public industries that are crucial to our region’s economic Square, housing nine new startup businesses and add- growth. For example, one-third of all of the informationing to the roster of resources in what’s fast becoming sector jobs in the Wilkes-Barre/Scranton metropolitan the region’s “Innovation District”; area are located in our center city. • eBay Enterprise Marketing Solutions, one of the anThat’s because knowledge-driven businesses rely chor businesses in that “Innovation District,” announced upon opportunities to collaborate and share ideas – that it’s moving its corporate headquarters to Downtown; and the process is fostered by Downtown’s walkability • Downtown’s institutional cornerstones, King’s and proximity to colleges, amenities, and millennialCollege and Wilkes University, continued making sub- friendly housing options. stantial new investments in their expanding campuses; Across the country, downtowns are becoming talent • Several new developments – a proposed hotel, a magnets, attracting knowledge workers and industries. downtown grocery, more lofts, a new entrepreneurship Today, that trend is occurring in Downtown Wilkes-Barre. lab– were announced and are on their way; and Consider the census statistics: In 2000, 25 percent • Wilkes-Barre’s submission to Frontier Commuof downtown residents aged 24 to 35 had at least a nications’ “America’s Best Communities” competition, bachelor’s degree, compared to 22 percent in Luzerne prepared by DCP, the Greater Wilkes-Barre Chamber, County. By 2010, 28 percent of the county’s 24-to-35and the City of Wilkes-Barre, was chosen as one of 50 year olds had a bachelor’s degree – but the figure in Quarter-Finalists from among 400 contestants. The downtown Wilkes-Barre had risen to 75 percent! entry, which is built upon our community-powered Now, our downtown revitalization efforts are plan for the next five years of downtown revitalization, moving to the next phase. The mayoral torch is being won $50,000; it now moves on to the ABC competipassed from Mayor Tom Leighton, whose efforts have tion’s next phase. been critical to the past 12 years of downtown revival, None of this progress would have been possible to our city’s new chief executive, Tony George. We also without partnership – a concept that’s crucial to effechave a new five-year downtown action plan, shaped by tive downtown revitalization. community opinion, and driven by six big goals for our Wilkes-Barre’s downtown revitalization goals Please see FOCUS, Page 7 have succeeded because businesses, institutions, By Larry Newman

In Our February issue… COVER THEME

The New Entrepreneurs

Entrepreneurs fashion enterprises that bring value to the economy. They hire people, pay taxes, create demand for services and products which help create more jobs and services. In the February issue we’ll uncover several of the coolest new businesses in NEPA. We’ll identify several young entrepreneurial sorts to keep your eye on. Why do they do it? We’ll talk to business experts, psychologists, and entrepreneurs themselves. What are the qualities that mark a young entrepreneur? We’ll ID business people who started out as young entrepreneurs and tell their stories. What would they tell their young selves now, if they could?

FEATURES

Retirement and Long Term Care: A special focus on elder care.

When facing the emotional challenge of caring for elderly family, it can very difficult to step back and make rational, informed decisions. Most family caretakers are not knowledgeable about diagnoses, symptoms and medications and are increasingly challenged to find answers and funding. What’s out there to help manage the care of elderly loved ones when their families have to work or are unavailable?

FOCUS

• Cardiac Care, Women and Heart Health

Women’s heart issues are different than men’s. What do women experience differently? What’s new in cardiac care. How should women conduct their lives in order to keep a healthy heart? And when should they start being conscientious about heart health? What if they are genetically inclined to heart disease; is it a death sentence or at least a promise of cardiac intervention? • Architects and Engineers: What are commercial clients demanding of A&E? The exciting new buzz is on urban density. What are the new trends in sustainability, minimizing environmental impact and energy consumption • Dollars and Sense: A Guide to Business and Personal Finance

ADVERTISING DEADLINE: JANUARY 15 For advertising information contact Judy Gregg 570-207-9001 ext 5425 jgregg@timesshamrock.com

UPCOMING EDITIONS

• March – NEPA’s Top 25 Women in Business • April – Spring Healthcare Update

The Region’s Award-Winning Source of Business News & Information • A Times-Shamrock Publication 149 Penn Avenue • Scranton, PA 18503 | 75 N. Washington Street • Wilkes-Barre, PA 18711 • 570-207-9001 • 877-584-3561 • Fax 570-207-3452

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JANUARY 2016

EDUCATION

FROM PAGE 6

center city’s future: • Downtown will be a safe, clean, and attractive place to live, work, shop, and visit. • Downtown will be the region’s college neighborhood. • Downtown will be the region’s “walk-to-everything” urban neighborhood of choice. • Downtown will be the region’s “Innovation District:” its hub for business, startup activity, and entrepreneurship. Downtown’s historic architecture, walkability, riverfront, and colleges will be the cornerstones of its enhanced visitor experience. Downtown will be a regional center of arts, culture, dining, and entertainment. Those are ambitious goals, but, as we begin 2016, we’re already well on our way. There’s still much to be done, but our efforts are gaining momentum – and the wind is at our backs. So, next year, expect to see even more Christmas trees illuminated in loft windows high above center city streets: signs of a brighter future for Downtown Wilkes-Barre and, by extension, for all of Northeastern Pennsylvania. Larry Newman is the Executive Director of the Diamond City Partnership, Wilkes-Barre’s downtown management organization, and the chairman of the Pennsylvania Downtown Center, the Commonwealth’s statewide alliance for downtown revitalization.

LARKSVILLE

Modern facility offers multiple uses. One story, 17000 sq. ft. bldg. 130 parking spaces, built in 2001. Serene surroundings consist of 15 acres.

MLS# 15-431 KATHLEEN 696-0870 OR GERI 696-0888

$1,595,000

Benefactor hears how gift aids students

A generous benefactor to Pennsylvania College of Technology’s automotive restoration program recently toured campus, hearing from many of the students it has helped through scholarships and other funding. Board members of the Hagerty Education Program at America’s Car Museum made their first visit to campus during the fall semester, touring College Avenue labs and getting a look at the students and facilities in which they’ve invested. “I wish everyone contributing to HEP – donors, collectors, vintage racers, shop owners, car clubs – could have been with us to see firsthand how their support has made a significant impact on Penn College,” said Diane Fitzgerald, national director. “Meeting this group of bright and engaging young restorers put all of us over the top! They were passionate, knowledgeable and appreciative. “The facilities are well-equipped, organized and inviting. None of the success enjoyed here could

HAZLE TWP.

Exceptional business opportunity to own & operate this turn key diner & sports bar. New business development near by. MLS# 15-569 ANITA 501-7583

$999,000

KINGSTON

Positive cash flow! Whether you are an owner/user or Investor this deserves a look! This 20,000SF tenant occupied building with 50 parking spaces. Ideal Wyoming Ave location! MLS# 14-2601 JUDY 714-9230 OR RHEA 696-6677

$875,000

happen without the dedicated faculty, led by Roy Klinger. Truly a fantastic and memorable day!” Klinger is a collision repair instructor in the college’s School of Transportation & Natural Resources Technologies. HEP (formerly known as The Collectors Foundation) has provided $20,000 in annual scholarship funds for automotive restoration technology students and $10,000 in “gap funding” for students’ living expenses while they serve their internships. Since 2005, it has awarded more than $2.75 million in scholarships and grants to dozens of automotive restoration educational institutions throughout the United States and Canada – including Penn College, which was provided with startup funds when the two-year major began in the Fall 2012 semester. Additional funds will be awarded in the Spring 2016 semester. “We are very grateful to the Hagerty Educa-

PLAINS

FANTASTIC OPPORTUNITY - 8000SF Restaurant with 2 anchor bars. Prime location. Turn-key. Lots of parking. MLS# 14-2755 TERRY E. 696-0843

$399,000

LUCRATIVE AND ESTABLISHED

franchise business opportunity for sale. One third of revenue is derived during November and December. This franchise model provides training for franchise partners as well as their team. Potential buyer must sign a non-disclosure agreement to obtain more information. Cash purchase. MARIBETH 696-0882

$399,000

KINGSTON

MLS# 15-2880 PAT S. 696-6670

$375,000

WEST HAZLETON

Turn key Bar/Restaurant located in West Hazleton offers a liquor license! Large room in back for parties and catering w/dance floor.2 apartments on 2nd floor (1 bedroom & 3 bedroom) for add’l income! Call agent for more information. MLS# 15-4934 LORI 501-7584 OR MARY BETH 501-7587

$325,000

PLAINS

Great business opportunity - Current use is a high-end salon - Impressive space - Completely remodeled with 12’ ceilings and beautiful woodwork - good for professional offices or retail.

MLS# 15-4722 TERRY 696-0871

$259,900

DALLAS

An artistic opportunity! This 2300SF (plus) Barn offers natural light, HWY exposure, 3 levels of possibilities. Ideal for retail, café, showroom, co-op and more! By appointment only.

MLS# 15-4218 JUDY R. 714-9230

$250,000

Create your own business opportunity in nearly 9000SF; formerly Pizza Mill; includes equipment, furniture & liquor license; additional warehouse space.

tion Program for their support of our students and the automotive restoration program,” said Debra M. Miller, vice president for institutional advancement at Penn College. “We were excited to host them on campus, so they could see and hear firsthand the results of their generosity.” The group’s morning began with a tour of the restoration laboratory and a review of projects involving the students helped by Hagerty funding. The guests then moved to the automated manufacturing and rapid protoype labs, which offer exciting 21st-century machining applications for the quality replication of authentic, hard-to-find parts needed to restore a vintage vehicle. For more information about automotive restoration technology, visit www.pct.edu/restore or call the School of Transportation & Natural Resources Technologies at 570-327-4516. For more about the college, visit www.pct.edu, email admissions@pct. edu or call toll-free 800-367-9222.

WEST PITTSTON

PRIME COMMERCIAL LOCATION! 6 bay garage service station with a large rear storage building. MLS# 15-2878 TINA 714-9277

KINGSTON

Great Market Street location! High visibility. Ideal for Professional Office or Retail Space. Main floor has 2900SF with gas heat & C/A. Additional storage space in basement. OSP & open area for large sign.

MLS# 15-3549 RHEA 696-6677

$174,500

$375,000

WILKES-BARRE

Former Drug Store in City Heights Shopping Center. 7,750SF. OSP for 30 cars. Also available for lease $7/SF. MLS# 14-3737 MATT 714-9229

$149,000

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FOCUS ON BANKING AND INVESTMENT

FROM PAGE 5

things like extending exam cycles for institutions, tailoring regulations for institutions based on their business models, providing a safe harbor for banks that hold their portfolios. Each of these pieces, which some seem to be more significant than others perhaps, they all play into the ability for our banks to serve their local communities, to serve their small businesses, to serve their customers.” Serving customers with secure technology represents another ongoing challenge for not only the banking industry but also many other businesses and industries. “We all recognize that the world of cyber security and data breach is a significant concern,” says Campbell. “The banking industry is regulated and has been regulated to ensure the security of their customers, to ensure that our customers are protected.” The association works to retain consumer confidence by supporting efforts to make expectations and response level equal to everyone who handles customer information. “We recognize breaches such as the Target breach and others, that not all members of the payment system are at the same level,” he says. “We think all members of that system have a responsibility for their customers. We want to make sure that all members, whether it’s the merchant, the bank, the payment provider, we are all at the same level of protection for our customers when it comes to data protection.” The association works to retain consumer confidence by supporting efforts to make expectations and response level equal to everyone who handles customer information. Technology also plays into the evolution of the industry in meeting ever-changing demands of a new generation of customers and employees – the Millennials. “They are now the largest population in the workforce,” says Campbell. “Not to stereotype, but there are certain things they expect out of their employers and out of their banks and their service providers. We are working on developing an emerging leaders program of our members to make sure leadership is going to continue to be a significant and critical factor in our ability to continue to grow as an industry and to be able to know how best to attract and serve this next generation.” The association works to educate its members and prospective employees that banking is not only for finance or accounting majors but also for IT, marketing and communications specialists.

Top Tax Issues To Consider for 2016

While organizing 2015 tax reportables, it isn’t too early to start planning smart tax savings in the year ahead. Use the following guide, which was excerpted from an article in Accounting Today (accounting today.com), for some mental stimulus on how the newest tax issues can affect personal paychecks as well as a business’ bottom line.

1. Changes in the Affordable Care Act (ACA) for individuals includes a mandate penalty increase to the higher of 2 percent of yearly household income or $325 person per year, 4. Increase in identity theft with a maximum penalty per family for those Under new policies announced by the IRS, using this method, of $975. In addition, federal poverty level guidelines, used to determine if the taxpayers may receive a letter when the service individual qualifies for subsidy, have increased. stops suspicious tax returns that have indications of involving identity theft but contain legitimate 2. ACA provisions’ impact on businesses taxpayer’s name and/or Social Security number. Applicable large employers who have on The IRS has agreed to reverse its policy and average of 50 or more full-time equivalent provide identity theft victims with copies of the employees in the prior calendar year must offer fraudulent tax return that has been filed under minimum essential coverage that is affordable their name by scammers, so they can take the to their full time employees (FTE) and their deproper steps to secure their personal information. pendents, or be subject to an employer shared 5. Supreme Court ruling on same-sex marriage responsibility payment. Transition relief for 2015 exists for applicable large employers (ALE) with All states must now recognize all married fewer than 100 FTEs in 2014, and only requires couples in the same way for state income tax employers to offer minimum essential coverage purposes, regardless of gender. This will impact the ability to file join income tax returns, the to 70 percent of full-time employees and their ability to transfer property to each other taxdependents in 2015. free, the ability to leave an estate to the spouse

without gift tax implications, and spousal treatment of inherited IRAs.

6. Trade legislation tax changes The Trade Preferences Extension Act of 2015 contains a number of tax provisions in addition to its trade measures. Taxpayers who exclude foreign earned income under Code Section 911 cannot claim the child tax credit; taxpayers must receive a payee statement (1098-T) before they can claim an American Opportunity, Hope, or Lifetime Learning Credit or take the deduction for qualified tuition and related expenses. This is effective for tax years beginning after the TPEA’s date of enactment. 7. Proposed salary threshold for overtime pay Under new rules proposed by the Obama administration, the Department of Labor would require most salaried workers earning less than $50,440 annually to be paid time and one-half their normal pay for time worked beyond 40 hours. This is slated to take effect, if passed, on Jan. 1, 2016. 8. New filing deadlines In observance of Emancipation Day (A holiday in Washington DC to mark the anniversary of the signing of the Compensated Emancipation Act by president Abraham Lincoln on April 16, 1862) taxpayers will have until April 18, 2016, to file their 2015 individual returns and make their first 2016 estimated tax payment.

Top Stories in Accounting in 2015 may explain why it got $290 million in extra funding to help with taxpayer service and to fight ID theft.

bert, as its CEO, and then in May, KPMG named Lynne Doughtie its CEO, making the top spots at the Big Four 50 percent female. We should note that that means ThE TERRIBlE TANGIBlE PROPERTy REGS the top spots in the C-suite now match the entry-level At the start of 2015, as businesses and their ad- gender split; at the partner level in firms of all sizes, visors went to apply the fairly recently codified tan- men still outnumber women to a significant degree. gible property repair regs, they quickly discovered TOUGh TIMES AT ThE IRS that they were terrible, tangled trap that no one was ThE SUPREME COURT wEIGhS IN 2015 introduced one of the most appalling prepared for. The IRS responded with some relief euphemisms of the recent past: the “courtesy Two June decisions made the Supreme Court for small businesses in February with Revenue Pro- a major force in the accounting sphere: in King disconnect,” where IRS operators would disconcedure 2015-20, but the rules remain on the books, v. Burwell, it upheld the Affordable Care Act, and nect callers who had waited on hold for two hours. and will need to be addressed eventually. Hamstrung by budget cuts, the IRS was able to in Obergefell v. Hodges, it struck down barriers deliver only the meagerest taxpayer service in what to same-sex marriage. Both will have enormous ThE GlASS CEIlING was already going to be a difficult season – and it implications for clients’ tax and financial lives. That cracking sound you heard was the glass ceilspent the rest of the year reminding Congress and anyone else who would listen how bad it was, which ing: In February, Deloitte named a woman, Cathy EngelPlease see 2015 ACCOUNTING, Page 42 Some of the biggest stories in accounting were chosen by “Accounting Today” editors, in December, as the profession’s top stories of the year. For more information, see accountingtoday.com/news/firmprofession/top-stories-in-accounting-in-2015.

8 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B08] | 01/06/16

3. New forms The Form 1095-B and Form 1095-C, which were optional for calendar year 2014, must be filed by any person that provides minimum essential coverage to an individual (1095-B) and by applicable large employers (Form 1095-C) who had on average at least 50 full-time equivalent employees during calendar year 2014 or small employers who are member of a controlled group that collectively had at least 50 FTEs and who offer an insured or self-insured plan or no group health plan at all.

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JANUARY 2016

MOneY

Millennials and Money: How younger consumers are managing their money The Federal Reserve Bank of Philadelphia conducted studies that show more high-earning millennials are using alternative financial services (AFS) along with traditional bank products. Consumers, ages 18 to 32 who earn $100,000 or more each year, are increasing their use of general purpose reloadable (GPR) prepaid cards while continuing to use debit cards and checking accounts for their finances, says the new research from the Federal Reserve Bank of Philadelphia. Sixty percent of high-income Millennials reported having a GPR card in 2014, compared to 49 percent in 2013, according to the “Millennials with Money: A New Look at Who Uses GPR Prepaid Cards,” report. Researchers Susan Herbst-Murphy from the Philadelphia Fed and Greg Weed from Phoenix

Marketing International released the report based on findings from the Phoenix Consumer Payments Monitor survey of more than 4,000 consumers on their age, income, geography, and use of financial products, including GPR cards. “Among the research findings included in the paper was the discovery of a ’power user’ group of young, banked, middle- to upper-income general purpose reloadable (GPR) prepaid cardholders who were challenging certain preconceptions of GPR prepaid cards as a product for low-income and unbanked consumers,” according to HerbstMurphy and Weed. Overall, 25 percent of households used GPR cards in 2013 and 2014 and overall ownership rates did not increase as much as they had between 2012 and 2013 (4 percent.) However, the researchers found that there was a jump from 49 percent of

Millennials with household incomes of $100,000 or more and GPR cards in 2013 to 60 percent with GPR cards in 2014.

are combined that notable year-over-year differences among segments emerge from the findings,” according to the report.

The researchers found that “two other population segments—Generation X with household incomes of $50,000 to $99,900 and those 68 and older—were the only other groups to own GPR cards in 2014 at proportionately higher rates than in 2013.”

In 2013 and 2014, 71 percent of consumers who owned GPR cards were younger than 49.

Researchers caution that looking at income alone relative to ownership of GPR cards does not reveal significant changes. “For example, 45 percent of Millennials owned GPR cards in both 2013 and 2014. Income by itself is likewise unremarkable: 28 percent of households with annual incomes under $25,000 owned GPR cards in both years. It is only when income and age

Louis Ingargiola

Millennials’ Banking and Budgeting Participants in the 2014 Consumer Payments Monitor Survey were asked where they use their GPR cards. “The most common usage was the physical point of sale, noted by 70 percent of respondents, with 69 percent using their GPR cards to shop online and 40 percent to pay bills. These statistics suggest that the majority of GPR cardholders use their cards much in the way that other payment methods are used. GPR cards are also used for purposes other than payments: 22 Please see MILLENNIALS, Page 38

Sean McAndrew

203 North Blakely Street

Caring for your future

Dunmore, Pennsylvania 18512 570.961.1161 | 800.440.1776 www.iwmg.us

Securities and advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a registered investment adviser. Fixed insurance products and services offered by Ingargiola Wealth Management Group.

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ECONOMY

Student housing model inspiration for Scranton entrepreneur By Phil Yacuboski

Properties Inc. and splits his time between Scranton and New York City.

The entrepreneurial bug bit Don Mammano Jr., 32, while he was still a student at the University of Scranton. And in just a short time, he’s built a multi-million dollar real estate business based in the heart of the city.

“From that first property, it’s just continued to grow,” he said, which now includes 12 buildings around the campus in addition to several other large projects throughout the city.

“The first week I was on campus, I was exploring the Hill Section,” he said after arriving in 2001, “and I noticed the demand for off-campus housing. It just made sense to me to want to do it, even while I was a freshman in college.” He bought his first property as a junior in college, doing many of the renovations himself and used his friends as renters.

His first large apartment complex included two buildings that houses dozens of apartments along the 300-block of Linden Street. At 317 Linden Street, he said, he renovated the entire building that includes 56 units. “They are fully rented and there’s even a waiting list,” said Mammano, which he said is a mix of college students and young professionals. “It’s nice to see some life breathed into that building.”

from The Commonwealth Medical College. However, the largest building he now owns is The Watres Armory, which he bought in January 2015 from the state for $150,000. Hunt Slonem, 63, a New York City-based artist is renting the entire space, which totals at a little more than 100,000 square feet on Adams Avenue. The building is on the National Register of Historic Places. Mammano said he intends to keep the historic look. “He’s going to use it as his private studio and gallery for his artwork and his antiques,” he said. “He will have people coming from all over the world to see his collection. It’s a big deal.” Mammano said Slonem chose the property because of its proximity to New York City.

“I love what I do,” he said. “I love taking an old, dilapidated building and turn it around to something beautiful, making it a rentable, viable building.”

He was able to get the property from the bank and turn it around. Mammano is also planning for additional retail space and is looking to have those tenants complement the residents. He said he’d like it to “benefit their lifestyle.”

Mammano, who grew up in Bergen County, New Jersey already had a solid foundation watching his family business in development and construction in New York City. He’s created DFM

“You have to take a risk,” he said. “I took the “It’s worked out very well for many of the students who want the downtown type of living and the risk when I was young and I made the decisions on my own. I went with my instincts and my gut transition from undergraduate school to graduate and gave it 120 percent every day.” school,” he said. It includes a number of students

He said over the years, he’s learned that while a lot of people talk about real estate investment and making money using the student housing model, few actually follow through.

Mammano Jr.

Edward J. Gilmartin joins Peoples Security Wealth Management Group SCRANTON, PA. (January 2016) Pictured L to R: Susan Sariti Insurance | Retirement Plan Services Coordinator; Bradley S. Grubb President | Wealth Management Group; Edward J. Gilmartin, MBA Managing Director | Retirement Plan Services | Accredited Investment Fiduciary®; Nick Ganz Operations Manager | Retirement Plan Services

Peoples Security Bank and Trust Company has acquired the asset management and retirement plan services assets of Edward J. Gilmartin/Gilmartin Associates, Scranton, PA. Bradley S. Grubb, President of Peoples Security Wealth Management Group, has announced that Edward J. Gilmartin will join the bank’s Wealth Management Group as Managing Director of Retirement Plan Services.

In his new role, Mr. Gilmartin will continue to focus on servicing existing qualified plan clients of the combined firms as well as expand these services to privately held businesses and corporations throughout Northeastern Pennsylvania. “With this collaboration with Peoples Security Bank, I now have the opportunity to offer a greater array of products and services from Estate planning through our Wealth

Management team as well as the lending and commercial services available through the bank,” says Mr. Gilmartin. The Gilmartin team will remain intact, as Nick Ganz, Operations Manager, Retirement Plan Services, and Susan Sariti, Insurance, Retirement Plan Services Coordinator both long time and valued employees with Gilmartin Associates, will join Ed in the Retirement Plan Services division.

Craig W. Best, President & CEO, Peoples Security Bank added, “We are excited to have Ed join the Wealth Management family at Peoples Security Bank. He will be a valuable addition to our staff and will help us to better serve the needs of our business customers in planning for their employees’ retirement.” Mr. Gilmartin founded Gilmartin Associates over twenty years ago to serve the retirement planning needs of business throughout

About Peoples Security Wealth Management Group,

a subsidiary of Peoples Security Bank & Trust Company, has been providing quality investment services to the residents and businesses in Pennsylvania for over seventy-five years. The Group is staffed with a local team of Financial Advisors with offices located at 150 North Washington Avenue in Scranton, PA. *Securities and advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Peoples Security Bank & Trust Company and Peoples Security Wealth Management Group are not registered broker/dealers and are not affiliated with LPL Financial. The investment products sold through LPL Financial are not insured Peoples Security Bank & Trust Company deposits and are not FDIC insured. These products are not obligations of Peoples Security Bank & Trust Company and are not endorsed, recommended or guaranteed by Peoples Security Bank & Trust Company or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

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JANUARY 2016

the northeastern Pennsylvania community. He attended the University of Scranton where he earned an MBA in Finance. He resides in Scranton, Pennsylvania with his wife, Celeste. Mr. Gilmartin and his team will relocate their offices to the third floor of the Bank’s Corporate Headquarters located at 150 North Washington Avenue, Scranton, Pennsyl-vania.

cover storY

By Dave Gardner

State budget debacle arises from entrenched economic beliefs

Trench warfare with both sides dug and supporting widely varying ideals appears to be the hallmark of Harrisburg’s 2015-2016 $30 billion budget debate. Throughout the capital city, widely varying concepts have been bantered about concerning the state’s fiscal management. Often, these principles are in direct opposition to each other, and have given rise to charges that Pennsylvania’s politicians are disconnected from the goals of the voters. The revenue side of Harrisburg’s balance sheet includes support for expansion of the state’s 6 percent sales tax, as well as applying it to more goods and services. One legislative group wants to privatize the state-operated liquor stores, while calls can also be heard for changes to the revenue mechanism that channels gambling revenues to homeowners for property tax relief. Another deeply divisive concept involves imposition of a severance tax directly upon production of natural gas from the vast Marcellus Shale geological formation. The current impact fee levied upon drilling generated more than $233 in revenues during 2014, but this was the smallest fee collected since the system began in 2012. On the expense side of Harrisburg’s ledger, dealing with a long-term budget deficit plus expanding costs for funding public school and state employee pensions are kindling debate. Major pension changes may also be ahead for new state employees, while hundreds of millions of dollars hangs in the legislative balance.

Parente

Barrr

being hampered by a sluggish recovery from the recession when compared to many other states,” says Cross. He explains that from 1945 to 1974 a post World War II economic bonanza existed, creating a nation awash in prosperity. However, this was a one-time historical event, the booming asset growth from that era has now firmly ended, and more historic conditions have resumed. “Our budget troubles are, to a large part, being caused by that economic bubble winding down,” says Cross. “Therefore, we must create public policy for the current economy. The temporary fixes we keep seeing over and over with government fiscal management are evidence of deep systemic problems.” Teri Ooms, executive director of The Institute for Public Policy & Economic Development, also charges that Harrisburg is suffering from systemic issues involving taxation and expenses, with harsh legislative alliances dug in by political party. This is creating a political system that is not evolving for the 21st century, and promotes ideology often based on the past. Ooms declares that pure partisan solutions cannot run a state’s government, and that virtually no legislators truly desire to address Harrisburg’s exDifficult trenDs pense side of the budget. She ranks public pension Gerald Cross, executive director of the Pennsylvafunding as a vital problem that must be conquered, nia Economy League’s central division office, explains and that local, state and the regional school boards that the state’s fiscal battles involve the maturation must also be at the bargaining table. of long-term trends and a need for changing finance “The state’s pension obligations are rising, the models. An aging population, changing demographrevenue system is antiquated, and any effective ics, and unpredictable market evolution all also are revisions will be complex,” warns Ooms. “We cannot complicating the debate. manage this mess with sound bites. The voters must According to Cross, bitter clashes are underway tell their elected officials to compromise and fix the about who is seen as able to pay for the state’s monetary state’s fiscal system.” needs, and who is not. Revisions to spending must also On the business front, Ooms charges that Pennbe addressed, with sustainability a big issue. sylvania is not a tax-friendly state. She claims the “We all need to acknowledge that the state’s fiscal current business tax structure chases away commerce, situation is not on an upward trajectory, and we are while select loopholes and exclusions reduce the rate

Baldino

Brouillette

Ghosh

Cross

Ooms

of taxation but do not seem to attract new business. She warns that infliction of a severance tax upon natural gas production must be coordinated with current payments to local governments from impact fees. She also fears that, with gas so plentiful and prices low, a severance tax might chase away the gas production business to other states. Ooms also has witnessed private liquor retail systems in other states, and points out that privatization of Pennsylvania’s state stores may lower product prices. However, she warns that any legislative decisions to sell off of the existing state stores should be preceded by a deep and accurate financial analysis. “Permitting, taxation, predicted levels of sales, and administrative costs all must be calculated within these proposals,” says Ooms.

out that the Tom Wolf campaign was very clear in his support for using tax revenues to raise educational spending through a natural gas severance tax. This was the centerpiece of his campaign. Yet, Pennsylvania’s voters also elected a Republican legislature with the opposite ideas, which they were very up front about. “Now, we have a lot of wreckage strewn about, including the proposed severance tax,” says Dr. Ghosh. “This is very hard for the Democrats to swallow.” He adds that the media, to a large degree, been very quiet about the pain inflicted by the budget impasse. The overall public isn’t saying much either, despite severe pain being inflicted upon school districts and non-profit agencies. “We should be wondering if this relative silence is DiviDeD government an indication of narcissism all through our society,” Matthew Brouillette, president and CEO of The asks Dr. Ghosh. Commonwealth Foundation for Public Policy AlternaThomas Baldino, Ph.D., professor of political scitives, points to the inevitably of divided government ence at Wilkes University, emphasizes that during the because the state’s voters elected a conservative campaign for governor Gov. Tom Corbett was seen as Republican assembly and a liberal governor who was reducer of educational revenues, and candidate Tom very clear he wanted tax increases. Wolf as a restorer. Each philosophy had dedicated “Add up these deep divisions and haggling over supporters and many voters became champions of a budget is guaranteed,” says Brouillette. “Both sides a reduction in property taxes, infliction of a severachieved overwhelming electoral victories, and now ance against gas recovery, and revision to sales and both sides are claiming a mandate.” income taxes. He urges Harrisburg to smooth these divisions by “Both sides are dug in, claiming a mandate from adopting private sector management principles, with the voters, and reluctant to give up ground,” says Dr. an emphasis on business applications. This tactic, acBaldino. “This is very similar to Washington, with cording to Brouillette, could reduce current and future pressure exerted by the extremists not to compromise. impasses that are inflicting unneeded pain within the A legislator who concedes ground could wind up losing social safety net. their next primary election to an extremist candidate.” “The human service vetoes we’ve had in the budDr. Baldino advocates that Pennsylvania’s entire get battle are particularly sad, and indicate an abuse of tax system must be addressed because of its interconpower,” says Brouillette. nected nature and creation of systemic issues. He Satyajit Ghosh, Ph.D., professor of economics and finance with The University of Scranton, points Please see BUDGET, Page 13

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ECONOMY

Millions paid to small businesses; depot exceeds Army’s goals

By Jacqueline Boucher, Tobyhanna Army Depot Modernization projects and mission support initiatives during fiscal year 2015 resulted in Tobyhanna Army Depot awarding contracts worth millions of dollars to small business vendors, exceeding the Army’s socioeconomic goals. (U.S. Army photo by Steve Grzezdzinski) Tobyhanna Army Depot awarded contracts worth millions of dollars to small business vendors, shattering the Army’s socioeconomic goals for fiscal year 2015. A number of modernization projects and mission support initiatives during the year set a brisk pace for purchase agents; however, the depot’s ace in the hole was an innovative approach to working with small business contractors. Contract specialists here developed and implemented Tobyhanna’s Produced each April and October. first Multiple Award Task Order Contract (MATOC), Healthcare Update focuses on the which streamlined how contractors were selected for latest technology and trends particular jobs. affecting the healthcare Industry. The depot paid more than $150 million to dozens In-depth stories report on healthcare of local, regional and national businesses for work news such as Managed Care, performed during the fiscal year. Money spent in the Legislative Issues, Hospitals and local area — Carbon, Lackawanna, Lehigh, Luzerne, Healthcare Professionals. Monroe, Northampton, Pike, Schuylkill, Susquehanna, Wayne and Wyoming counties — totaled more To advertise in this special supplement than $11 million. Of that amount, more than $2.5 contact Judy Gregg 570-207-9001 ext. 5425 million was distributed to small businesses. jgregg@timesshamrock.com The Army’s measurement for success is an organization’s ability to meet or exceed the established goals of contract dollars that should go to small business vendors. To qualify, vendors must meet conditions set forth in five categories: small business, The Region’s Award-Winning Source of Business News and Information service-disabled veteran-owned, woman-owned, A Times - Shamrock Publication HUBZone and small disadvantaged. 570-207-9001 • 877-584-3561 • Fax 570-207-3452 “Small business did very well this year,” said 149 Penn Avenue, Scranton, PA 18503 Small Business Specialist Dave Kern, explaining 75 North Washington Street, Wilkes-Barre PA 18711 that each socioeconomic category has a percent-

HEALTHCARE UPDATE

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JANUARY 2016

age of contract dollars that should be awarded to small business. “For instance, Tobyhanna achieved more than 46 percent in the small business category, well over this year’s 22.5 percent goal.” Kern works for the Army Contracting Command-Aberdeen Proving Ground, Tobyhanna Division and is a resident of Dupont. Equally impressive were the totals in the remaining four categories. In the small disadvantaged business category, Tobyhanna ended the year with 21.08 percent, well over the 5.5 percent goal; the HUBZone category realized 10.91 percent, which surpassed the 1.5 percent standard; woman-owned small business claimed 5 percent, exceeding the 2.5 percent objective; and the service-disabled veteran-owned small business category achieved 7.97 percent, besting the 2 percent target. Small business vendors are working on projects at several locations around the depot. For instance the $11 million post restaurant renovation was awarded via the MATOC to a HUBZone vendor. There’s also a standalone contract for $2.1 million awarded to a service-disabled veteran-owned small business vendor to modernize one building. Kern also noted the recent completion of a task order concerning work on the dust enclosures in another. “We have a lot of buildings on the depot that need to be modernized,” Kern said. “Other contracts are for vendors that support the mission by providing items such as electronics parts, circuit cards, wire for cable assemblies and transistors.” Please see DEPOT, Page 42

FROM PAGE 11

charges that both spending and revenue systems have become antiquated with no quick fixes, and that hard decisions must be made because bonds in state have been downgraded. “In the future we are going to need big tax increases for the state government to survive,” says Dr. Baldino. “Adoption of a progressive income tax system is also vital.”

Wounded dynamics?

Gene Barr, president and CEO with The Pennsylvania Chamber of Business and Industry, acknowledges that societal impacts from the budget battle have been occurring all through the state. He also questions if the bitter battle has created wounded dynamics in government between the governor and the legislature that cannot be repaired. “Relations throughout the state’s government have been damaged, and with three more years at stake a precedence of deep conflict has been established,’ says Barr. According to Barr, two different economic models, and supporters with deep beliefs in each, mark the budget battle. One side advocates that government tax and spend, while fixing society’s troubles with government programs. The other side believes government is always wrong, and that elected legislators cannot solve society’s ills with a tax and spend system. When complex problems such as pension fixes, liquor store privatization, and tax mechanism changes are added in, conflict becomes inevitable. “Our schools need fiscal stability, and only property taxes can create this stability,” argues Barr. “Conversion of school funding to a consumption tax would generate instability.” Barr adds that the current time is not a wise one for institution of a gas severance tax. Maintenance of the current impact fee plus addition of a five percent to six percent tax upon recovered gas could easily shake the industry to its core. William Parente, Ph.D., professor of political science with The University of Scranton, sums up Harrisburg’s trench warfare by declaring that many similarities exist with conditions in Washington. In both cases tension is resulting from a democratic chief executive opposing a republican legislature, leading Dr. Parente to question why the voters didn’t select one party, and one set of philosophies, to govern. “Perhaps some of the voters actually like gridlock,” says Dr. Parente.

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NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 13 TS_CNG/NPBJ/PAGES [B13] | 01/06/16

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EDUCATION

From ‘Silly little games’ to Fortune 1000

Farm Show Visitors to Get Hands-On Glimpse at ‘Degrees That Work’ Two years after it observed its own centennial, Pennsylvania College of Technology will help the Pennsylvania Farm Show celebrate its 100th anniversary in Harrisburg next month. Honoring tradition, Penn College will have a weeklong presence at the nation’s largest indoor agricultural exposition. Admissions Office representatives and a variety of knowledgeable faculty and staff will be available from Jan. 9-16 in the Farm Show Complex & Expo Center, 2300 N. Cameron St., where visitors can get acquainted with the college’s six academic schools throughout the popular event.

Brandon Bachman took a high school class that led him to a six figure starting salary immediately after he stepped off the graduation stage at East Stroudsburg University last month.

all while taking on a full course load. “With limited free time, I faced many challenges with succeeding in school,” he said. “I don’t want to go back to living that way.”

As he looks to his future with AsTech Consulting, an application security firm based in San Francisco that works with Fortune 1000 companies, Bachman laughs when he talks about what prompted him to get involved with computer security in the first place.

And this summer Bachman took his first step to put that life behind him. He contacted AsTech looking for an internship opportunity. Impressed with his interview, the company offered him an internship and kept him on part-time through the fall semester, eventually offering him a full-time job “Creating silly little games sparked my interest,” upon completion of his undergraduate degree. he said. “Programming soon became a second Bachman spent most of his days assisting language to me.” clients in securing their software. It’s not every day that students leave a class having created a game. Robert Luciano, who taught the AP Java class at Pocono Mountain East, urged his students to major in computer science. He spoke of job opportunities that would keep their pockets full. Bachman clung to the teacher’s every word and eventually decided that computer science might be the right move for him.

The best way to learn how to fix something is to know how to break it. That’s Bachman’s mindset as he spends hours of his day in front of the computer seeking either improve the security of his clients software or develop scripts that would ultimately simplify his or the client’s life.

“Computer programmers are some of the laziest people in the world,” he said. “We work He applied to ESU his senior year of high school in a profession where we develop shortcuts and and was accepted into the computer science and programs to make life easier.” computer security dual major program on the spot Bachman added that there are few things that a during an immediate decision day. computer cannot be programmed to do for its user. Bachman struggled to support himself finan“Every time I create code, all I am doing is comcially through his four years at the university. He municating to the computer — telling it what I want worked seven days a week to fund his education — it to do,” he said.

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As he goes further into his field, Bachman always finds himself going back to his high school classroom. He treats every challenge as a game because “nobody can just stare at code all day without having some fun with it.” But Bachman faces challenges every day in his chosen discipline. “The best part of the field is that it forces you to think outside of the box,” he said. “It pushes me to critically think of how to fix the problem in front of me.” As Bachman goes on to further his career in computer science he admits he has a second passion: astrophysics.

The Farm Show has always been an excellent opportunity for the college to interact with the community. Each year we are greeted by many alumni, students and friends of Penn College,” said Claire Z. Biggs, coordinator of admissions/ enrollment services. “We are thrilled to be able to share the incredible opportunities that await students on campus, and being able to watch folks interact with our activities makes for such a fun week.” The following is a summary of Penn College’s scheduled participation:

SaTurDay, Jan. 9

Students from the School of Business & Hospitality, along with Chef Paul E. Mach and “I can’t stop thinking about it,” he said. “I go Chef Michael J. Ditchfield, will demonstrate their home and all I do is watch videos on astrophysics.” culinary techniques live on the PA Preferred Bachman’s ultimate goal is to spend the first Culinary Connection stage. Ditchfield, an instrucyears of his career diving into computer science tor of hospitality management/culinary arts, and then chase his second passion once he feels will present at 10 a.m., and Mach, an assistant financially comfortable. He plans to head back professor of hospitality management/culinary to school and dreams to earn his master’s in arts, at 6 p.m. astrophysics. Throughout their three days at the Farm Why? Because he’s a pushover for things he Show, the students will assist other notable cannot understand. chefs as they prepare their onstage demonstra“I can’t wrap my mind around how astrophystions, including the Food Network’s Gina Neely, ics works,” he said. “The things I cannot underPBS’s Chef Walter Staib, 2006 Penn College stand are the things I want to know.” Please see DEGREES, Page 15

EDUCATION FROM PAGE 14

alumnus Lance Smith and Pennsylvania First Lady Frances Wolf.

Sunday, Jan. 10 Want to learn about the automotive industry? Faculty from the School of Transportation & Natural Resources Technologies will discuss fuelcell technology and demonstrate model fuel-cellpowered vehicles. Attendees interested in collision repair and automotive restoration can interact with faculty members and learn the art of pinstriping. Culinary students will return to the PA Preferred Culinary Connection stage to assist Mach at 11 a.m. and will compete in the Student Cooking Challenge there at 4 p.m.

Monday, Jan. 11 Many offerings in the School of Transportation & Natural Resources Technologies prepare students for opportunities in the great outdoors. Farm Show visitors can see a mock display of a hydroculture system and explore the types of crops grown in the school’s hydroponic lab. Representatives will discuss horticulture and forestry programs, as well as diesel, heavy construction equipment and on-site power generation majors. Culinary students and Ditchfield will provide more live demonstrations on the PA Preferred Culinary Connection stage at 5 p.m.

COVER STORY ThurSday, Jan. 14

Reality of School Funding ‘Perilous’

Representatives of three majors within the School of Health Sciences will involve their audience: occupational Therapy assistant Through simulations with low-vision goggles or trying to function with only one hand, visitors will have the opportunity to experience what it would be like to live with a sensory or physical disability. Learn how occupational therapy practitioners help people to adapt to those difficulties in order to perform activities that they need to do, want to do or are expected to do. Surgical Technology A hands-on workshop introduces the skills needed to perform in the operating room. Explore how laparoscopic surgery is performed using actual surgical instruments. Physician assistant With the aid of teaching stethoscopes and a simulated heart machine, visitors will be able to experience many different heart sounds including the differences in heart rates. Also, through a model, visitors will be able to view changes that occur in the eye with many disease processes. By using those interactive tools, they will be able to get a glimpse of the physical exam that physician assistants perform on their patients.

Consumption tax is unreliable but property tax system chokes disadvantaged owners and first-time home buyers By Dave Gardner

Deep philosophical divisions litter the budgetary debate about how to best serve the financial needs of Pennsylvania’s 500 school districts, 67 vocational and technical schools, and 170-plus charter schools.

Please see SCHOOL FUNDING, Page 17

Do you have business questions?

WedneSday, Jan. 13 Through the School of Sciences, Humanities & Visual Communications, Penn College offers an Introduction to Forensic Science class and laboratory where students learn the basics in fingerprinting, crime scene investigation and so much more! Visitors will have the opportunity to analyze their fingerprints and learn about forensic science and other courses and degrees at Penn College.

SaTurday, Jan. 16 The School of Industrial, Computing & Engineering Technologies returns to provide participants with an opportunity to watch demonstrations of a 3-D printer. Visitors will have a chance to examine various 3-D samples and observe the development of 3-D CAD models in parametric software. For more about Penn College, visit www.pct. edu, email admissions@pct.edu or call toll-free 800-367-9222.

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Friday, Jan. 15 Penn College’s School of Industrial, Computing & Engineering Technologies will provide visitors with an opportunity to learn the basics of circuitry while creating their own flashing LED card using electric paint.

The difficult realities of today’s school funding are carefully explained by Joann Hudak, Ed.D., assistant superintendent with the Wallenpaupack Area School District. This district has a $64 million annual budget, operates within an income-poor but land-rich environment, and deals with mandate after mandate passed by legislators without the needed revenues channeled to pay for these requirements. She notes that, years ago, school revenues were derived 50 percent from local sources and 50 percent from state and federal tills. Now, Wallenpaupack is funded 78 percent locally, two percent from federal sources, and 20 percent from Harrisburg.

Gov. Tom Wolf had made increased state funding for these schools a hallmark of his campaign. He then proposed educational spending of more than $6 billion in his first state budget, representing an increase of hun-

TueSday, Jan. 12 Do you like to design or build things? Have you ever thought about pursuing a constructionrelated career? Then stop by the Penn College booth to learn how its majors in the School of Construction & Design Technologies can lead to exciting opportunities in the construction industry. School representatives will help you build a wooden toolbox that could carry your tools for a promising future.

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COVER STORY

Economist: Raising sales tax may create market ‘distortions’ ‘Harrisburg must examine its taxation as a whole process and not just tinker with individual pieces of the revenue system” - Matthew Brouillette By Dave Gardner

services from taxation. This arena is guaranteed to become lively with debate, because many special interests who wish to avoid taxation are represented within Harrisburg. Dr. Ghosh also questions what level of a sales tax increase would be too hefty after specific exemptions are decided. Perhaps, a better plan would inflict a phased increase to the tax instead of a single jump.

Modifications to Pennsylvania’s six percent states sales tax system, which has evolved since “No matter how it is done, most of us are its inception in 1954, appear to represent an quite sure that raising the sales tax would tend easy way out of Harrisburg’s revenue dilemma. to inflict pain upon lower economic classes,” charges Dr. Ghosh. “Using a sales tax is a Proposals for a change range from a regressive tax structure.” one-percent increase in consumer consumption taxation to a complex and comprehensive WHOlE pROCESS overhaul of the entire tax system that many Harrisburg must examine its taxation as a legislators claim is long overdue. whole process, and not just tinker with individual pieces of the revenue system, preaches Satyajit Ghosh, Ph.D., professor of economMatthew Brouillette, president and CEO of The ics and finance at The University of Scranton, Commonwealth Foundation for Public Policy Alconfirms that simply lowering property taxes ternatives. His organization promotes the taxawhile raising the six percent sales tax to countion philosophy that people must pay directly for terbalance the revenue changes looks like a the government they use, such as for highway great idea to many people. However, Dr. Ghosh infrastructure through fuel taxes. promotes the concept that Harrisburg’s taxation should be looked at within an entire package of This type of taxation channels revenues revenue sources, because many variables and through a direct system, thereby joining use interconnections exist. and pay.

He believes that questions must be asked about raising the sales tax without inflicting adverse market reactions, called distortions, upon the business community. Taxation inevitably is reflected in the price of goods and services through consumer adjustments, or via reduced profitability for the applicable vendor.

“I have found no quality estimates of the distortions from different tax schemes, including a sales tax adjustment,” says Dr. Ghosh. “However it is clear that, without the severance tax upon natural gas production, the sales tax remains the primary revenue source for the state.”

The additional side of the sales tax debate involves product exemptions which will include or exclude specific categories of goods and

“This is how tax policy should work,” says Brouillette. “Therefore, a consumption tax is better to generate revenues than increases in property taxes.” What Brouillette scorns is taxation that channels revenues away from the needs of the payers. Therefore, raising taxes on one group to spend in another area is actually a hit-and-miss system that violates the pay-for-use philosophy. He charges that Pennsylvania now has the tenth highest state and local tax burden in United States. This reality makes a comprehensive overhaul of the complete taxation system necessary.

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“Pennsylvania’s taxpayers as a whole must therefore be considered overburdened, and the overall tax system unfair,” adds Brouillette.

tion brings in multitudes of customers from adjacent states, thereby creating jobs and other tax revenues.

Gerald Cross, executive director of the Pennsylvania Economy Leagues central division office, claims that the existing state sales tax has lost some of productivity because of a graying of Pennsylvania’s population. Therefore, the “real” rate of taxation is only five percent, thereby generating les purchasing power for Harrisburg with tax revenues.

“If we add a tax on clothes and shoes, the future of retail facilities such as The Crossings would be an unknown,” warns Barr. “Their business model would have to change.”

Cross also points out that sales taxes are functionally higher in the state’s two truly urban areas of Philadelphia and Pittsburgh because of added regional taxation. “When you ad these increased levels to another one percent sales tax increase, it truly creates an ‘ouch’ factor,” says Cross. Proposals that establish revised taxation exemptions to the state’s many goods and services are of particular interest to Gene Barr, president and CEO of The Pennsylvania Chamber of Business and Industry. He warns of the need for highly-specific definitions of taxable items versus those which are exempt, and acknowledges that some product categories, such as cigarettes, are easy to pick on. Other areas of commerce which could wind up being taxed include professional services, law, accounting, diapers, child care, and college meal plans. Barr voices concern about how taxation of these areas would affect the state’s economy with regressive impacts. “Broader taxation will undoubtedly create unhappy business interests, and strong debate is therefore inevitable,” says Barr. “Additional taxation can also create black markets for newly taxed products.” Barr notes that the sprawling Crossings Premium Outlets campus in Tannersville serves as a good example of a commercial site largely based on exemptions from a state sales tax. High-end clothing sold there without this taxa-

WHO SHOuld paY? Thomas Baldino, Ph.D., professor of political science at Wilkes University, boils down the sales tax debate to a question of whether Harrisburg will take dollars from least wealthy, or tax those with financial clout. He also warns that an expanded sales tax would be vigorously fought by special interests groups within their profession. “Lobbyists are no small hurdle,” says Dr. Baldino. When all economic factors are considered, Dr. Baldino believes that a state sales tax is regressive when applied across the board to consumer purchases. He also questions the morality of burdening the working poor with taxes upon their limited purchases. “We simply can’t fix the state’s budget problems by increasing taxation on the less affluent,” says Dr. Baldino. “Only taxation of those with money can close the gap.” William Parente, Ph.D., professor of political science at The University of Scranton, adds that propositions to increase the sales tax usually don’t take into account the reality that Philadelphia and Allegheny County already add one to two percentage points to the Harrisburg-inflicted rate. Therefore, market effects of a tax change will hit these areas harder, guaranteeing different spins on a state-wide increase proposal. “The one redeeming factor of a consumption tax is that you can control amount how much you are taxed by restraining your purchases,” says Dr. Parente.

FROM PAGE 15

“Property taxes are our number one revenue source, so our budget has not been affected by the budget fighting in Harrisburg as much for urban school districts that rely more heavily upon state funding,” explains Hudak. “What we all have in common is that health care cost increases for district personnel and pensions are hot budgetary problems.”

of The Commonwealth Foundation for Public Policy Alternatives, is a former teacher who agrees that school budgets must be able to attract and retain quality teachers. However, he argues that scant evidence exists in support of the idea that educational problems can be solved by spending alone.

Brouillette therefore charges that a rededicaShe explains that the state’s school districts tion must are required to have each annual budget aptake place proved by June 30. Yet, Harrisburg has no which such requirement, guaranteeing substantial would budgeting “agony” because districts musty make accurately forecast the state dollars they will academics receive. the absolute top Hudak also warns that a shift in school financing from property taxes to consumption- priority of schools. based taxation would be filled with economic peril. Consumption tax revenues are not steady He understands and predictable, and reliance on them for that this school operation would be plagued by swingphilosoing revenues and forecasts limited to year-tophy may anger ardent supporters of athletics year totals. or activities, but he emphatically declares that Add in the reality that 75 percent to 80 the public should not be paying for athletic percent of school budgets involve contracts for fields. salaries, benefits and services, and it becomes “Any debate about Pennsylvania’s school obvious that spending could only be reduced in limited areas. If revenues from a consumption financing must question how we can reprioritize spending,” charges Brouillette. “Across the tax dropped steeply, the schools would face state we are spending $3,000 more per student tough decisions. every year than the national average, with very Animated community debate without easy questionable returns.” answers would then unfold involving what proThe extended tentacles of Pennsylvania’s grams, activities, sports, or facilities to reduce. Complicating this situation would be the reality property tax system for school financing are detailed by Teri Ooms, executive director of that total non-athletic activities actually cost more than sports, with gate revenues, even for the Institute for Public Policy & Economic Development. She acknowledges that property football, remaining relatively small. taxes create solid and reliable revenues, but A discouraged Hudak therefore comments also says that the system is financially choking that she have never seen state and federal level older property owners, hurting those with low legislators this divided, and adhering to party incomes, discouraging first-time home buyers, line when difficult decisions must be made. and pushing up rents. She questions if priorities for many legislaAs this scenario accelerates, she repeattors simply involve how to stay in office, and edly hears from employers that public school expresses deep disappointment that the educagraduates are not being equipped with the tional community consistently is the target of soft skills necessary for career success. This political scorn. is joined by a lack of effective student choice “I see no remedy to this polarization with about careers, and an almost active discourbudgeting in Harrisburg,” says Hudak. “As a state agement for graduates to study at community we are not functioning, and I am not optimistic.” colleges, trade schools, and within tech certification programs.

Educator prioritiEs Matthew Brouillette, president and CEO

Ooms. “We also can’t allow parenting to be pushed off on the schools.”

ruled the state must spend for schools, this legal ruling has not occurred in Pennsylvania.”

Thomas Baldino, Ph.D., professor of political science at Wilkes University, also warns that revenue from consumption taxes, as opposed to property taxes, ebbs and flows as the overall economy evolves. He therefore questions the response of a school district if their revenues from consumption taxes dropped steeply for several years,

He also charges that modern school systems are being forced to deal with a great deal of emotional and social baggage being carried by multitudes of students. Schools now must feed many students up to three meals per day, provide suicide and broken home counseling, and cope with the expanding realities of learning disabilities.

“This scenario might result in play-topay for sports, school busses being parked, and groups of teachers being fired,” says Dr. Baldino. “The scenario would be complicated, because even though the courts in other states have firmly

“This all means school spending is very tough to cut at the same time the districts must deal with added responsibilities, halffilled buildings, and unfunded mandates galore,” says Dr. Baldino.

immEdiatE rEsults? Gerald Cross, executive director of The Pennsylvania Economy League’s central division office, emphasizes that it takes many years and multiple crops of students to measure the results of educational system changes. Therefore, America’s lust for immediate answers may interfere with the need for Please see SCHOOL FUNDING, Page 20

Classes start Jan. 19

“Activities and sports are still valuable within our public schools, but soft skill training and career awareness are badly lagging,” says

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d nnu 2n A

M u s c u l o s ke l e t a l S y m p o s i u m

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An Up to Date Review of Musculoskeletal Medicine for Primary Care Providers, Neuromuscular Specialists, & Allied Health Professionals

Architects & Engineers Focus National Engineers Week February 21-27 February is a time to recognize the achievements of Architects and Engineers. In Northeast Pennsylvania there's plenty to celebrate! This month the Business Journal will look at some of the most intriguing projects coming out of NEPA and how the art and science of building is flourishing in our region.

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HEALTHCARE

Symposium at TCMC to aid healthcare providers Medical community can earn healthcare credits while learning more about treating office-based patient complaints

them to get the credits they need and bring that care to their patients at a more local level.” Dr. Bednarz said the event is very ‘clinically based,’ meaning it focuses on many of the conditions that are treated in an office setting. “Because we are a smaller medical commuBy Phil Yacuboski nity, we open it up to other Doctors from around medical professionals,” he the region will gather in said. “Even non-doctors the spring for the second too. We’ve had attorneys, annual Musculoskeletal nurses and pharmacists Symposium at The Comand others who have monwealth Medical Colparticipated. Even stulege. It promises to allow dents. We are unique in new insight and informathat sense.” tion focusing on patients He said the course Dr. Lucian Bednarz and Dr. Cynthia who struggle with these will teach conditions that Oleski. Dr. Lucian Bednarz a partner of disorders and the doctors Northeastern Rehabilitation Associates are commonly seen by a who treat them. is sponsoring the Symposium with Dr. number of providers. “We decided to put Cynthia Oleski. “Last year, we this together last year to covered a lot of condiprovide local continutions that are related to lower back pain and ing education credits to local physicians as the spine,” he said. “This year, we’re going to well as non-physicians health specialists,” said cover neck pain and conditions that are treated Dr. Lucian Bednarz, a partner of Northeastern in the office-based setting including concusRehabilitation Associates, who is also sponsorsions and hip pain.” ing the event. The keynote speaker will be Dr. Wendy “Most of these people have to travel to largRoss, a pediatrician, of the Philadelphia area er cities and universities to get those credits, so who is a specialist in autism. this is a way to provide them with those credits “She was actually awarded the CNN Heroes locally. That’s what really started all of this.” award a few years ago for her work,” said Dr. He said he’s hoping to make it an annual Bednarz, “so we want to bring some of the event. Dr. Bednarz said even though there is a pediatricians and adolescent medical professmaller population in the medical community, sionals to this symposium. We hope to attract he wants to provide the same kind of care some of those other healthcare providers.” medically and academically that is typically He said the symposium also brings medical found in larger cities. relevance to our area, namely because of TCMC. “Patients won’t have to travel to New York “They’ve been very supportive of programs for their health care,” he said. “We can provide like this,” he said. “They are dedicated to acathat care right here at home. By providing demic medicine and medical research, which those learning activities here, it kind of reinI believe this area is ripe for because it will forces that push.” allow more state-of-the-art medical practices He said TCMC deserves a lot of credit for provided locally.” wanting to keep those patients here with the The symposium will be held at TCMC April highest possible care. 15th and 16th. For more information, call “There’s really no course outside of a two hour Northeastern Rehabilitation Associates at 570radius of our area to get some of the classes these 344-3788 or email tjohnson@nerehab.com. professionals need,” he said. “This enables to

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coVer storY

reform of property tax and pension funding a lengthy proposition In the meantime, taxpayers may be ‘in for a rough time’

may be trying to remove the water before the hole is plugged. “State pension reform must be a multi-step By Dave Gardner project,” says Brouillette. “We must first agree not to add any more employees to a defined benefit Attempts in Harrisburg to reform or replace format, and commit ourselves that only defined property taxes appear to be clashing head-on with contribution pensions will operate in the future. the realities of rising payments to finance pensions Only then can we effectively figure out the best way for the state’s civil servants, including its public to bail out the ‘water’ which has already leaked in.” school teachers. Brouillette charges that Harrisburg now needs Big bucks are at stake in any attempts to tinker an additional $600 million to $800 million per with state-level pensions. The immense scope of year if commitments to the teacher’s pension are these pensions is indicated by metrics within the to be fulfilled. School districts must pick a part of Public School Employees’ Retirement System (PSthis tab, and if local and county taxes are raised to ERS). fulfill these pension commitments, taxpayers are in As of June 30, 2014, this pension system listed for a rough time. total assets of $53.3 billion. The system serves “Harrisburg should also be looking at ways to 263,312 active members, 213,900 retired memreprioritize its various tax subsidies for business,” bers and beneficiaries, plus 132,564 vested and says Brouillette. “The overall situation must involve inactive members while paying an annual average chipping away at unfunded benefits for new state of $24,962 to annuitants, survivors, beneficiaries, employees, taxes being raised, and spending cuts and the disabled. being approved.” The system listed a funded status of approxiDebate about revision to property taxes must mately 62 percent, with an unfunded liability of accept that this funding system produces a con$35.1 billion. Total annual pension costs have sistently dependable source of revenue which is soared from less than $1 billion in 2010 to a vital for government to operate, explains Thomas projected $5.9 billion by fiscal 2016-2017. Baldino, Ph.D., professor of political science at The Pennsylvania Economy League has been Wilkes University. When this reality is added to the active in acquiring data applicable to reformfact that government cannot legally change its level ing state pensions. It recently stated that, “Real of commitment to existing pensions, it becomes reform, which would eliminate unfunded liabilities, obvious that institution of a 401(k)-style pension remove politics from pensions, and eliminate format for new state employees is mandatory. taxpayer obligations that extend in perpetuity, is He also urges the state’s legislators to remove long overdue.” existing collective bargaining systems for pension agreements. Dr. Baldino believes state-level negotiators are best positioned to settle pension Plug the leak? debates without bias. Matthew Brouillette, president and CEO with “Our state pension funding problems can be The Commonwealth Foundation for Public Policy traced back to the time of Governor Tom Ridge,” Alternatives, charges that funding for Pennsyladds Dr. Baldino. “If we fix pension financing now vania’s existing state pension system can be a worst case scenario won’t happen for the taxpaycompared to a hole drilled in a boat. The boat is ers. But, we must honestly calculate the long-term now sinking, creating pressing questions about implications of any decisions we make.” how to keep it afloat. Brouillette proposes that it is wise to first plug the hole before attempts are made to begin legal commItments bailing out the water. However, many legislators in Pennsylvania’s courts are consistently ruling Harrisburg are still debating these priorities, and that existing commitments to pension liabilities

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must be honored, notes Satyajit Ghosh, Ph.D., professor of economics and finance at The University of Scranton. Therefore, without hefty tax increases of some kind, including a severance tax on natural gas recovery which Harrisburg’s Republicans vigorously oppose, it may be impossible for the state to meet its pension commitments. “The severance tax is a major revenue source we are sitting on,” says Dr. Ghosh. “We should also be asking what services can be cut to rechannel existing revenues to these pensions.”

been too generous, but are backed by strong political support. This is especially true in Scranton, where supporting property tax rates are painful and any additional burdens placed upon the taxpayers would really sting. “Therefore, any real effort to raise the state sales tax while also decreasing property taxes would receive approve from many Scranton residents,” says Dr. Parente. He voices deep concern about Scranton’s property taxes within current finance models, and notes that many municipal governments and school Gene Barr, president and CEO of The Penndistricts are already borrowing to make ends sylvania Chamber of Business and Industry, meet. This is happening in a fiscal environment emphasizes this his organization opposes any atwhere tax increases “kill” commerce, encourage tempt to replace property tax revenues with a sales business organizations to leave an existing locatax increase, as proposed in Harrisburg. He says tion, and push businesses to head for a site with property tax issues are not being mentioned by his lower taxes, thereby setting off a chain reaction of members as a pressing issue, and that revisions economic depression. to the state’s personal income tax and corporate “Raising taxes any higher than they are is income tax, plus applicable exemptions, are bigger sure to amplify a very bad situation,” declares Dr. issues for business. Parente. “We are questioning if business will wind up FROM PAGE 17 subsidizing any property tax cuts,” says Barr. “If so, we obviously oppose this.” patient reality when fundamental changes Teri Ooms, executive director of The Institute are made to education. for Public Policy & Economic Development, warns that property taxes are the only way for governHe advances a “root” question which ment to generate predictable and stable revenues asks how much of total education funding each year, despite varying economic conditions. should be the responsibility of local and She also questions if Pennsylvania’s voters as a state governments. He understands the whole have elected legislators with appropriate argument about an over-reliance on property education and experience to deal with complex taxes, which also has been accompanied by pension issues, including management of these a shift from state funding to local sources. funds over the long term. Cross also points out that, a half-century Ooms therefore asks if financial management ago, small boroughs could greatly change education should be a requirement for elected their own school district operations, but this office. has given way to broad sweeping state and “Our elected representatives must see governfederal mandates that all districts must comply ment functions as business units, and solid ecowithout funding. This has been accompanied nomic principles should apply with strict attention by the continuance of fragmented government. to costs versus revenues,” charges Ooms. Additionally, Cross questions the true educational priorities with spending being displayed by many taxpayers across the state. PolItIcal suPPort William Parente, Ph.D., professor of political “A school sports mascot is often the science at The University of Scranton, declares hardest animal to kill,” quips Cross. that Pennsylvania’s civil-service pensions have

ENERGY

Caithness Energy LLC will supply electricity to NE Pa. Consumers

force can come together to benefit our region and A nearly $1 billion investment will support hundreds of jobs during two-year construction the Commonwealth.” phase; will produce enough electricity to supCaithness Energy, an independent power ply approximately 900,000 homes with clean producer with a long history of operation and power generated by domestic resources management of natural gas and renewable energy projects, has teamed up with Moxie Energy to Caithness Energy LLC recently joined with projbuild the state-of-the-art natural gas power plant ect developer, Moxie Energy LLC and state and local in Salem Township, Luzerne County. The power officials to break ground on the Caithness Moxie plant will produce more than 1,000 megawatts of Freedom Power Generation Plant, a nearly $1 billion electric power that will be used to supply consumnatural gas power generation plant that will support ers throughout the region. hundreds of construction jobs and generate enough The groundbreaking officially kicks off the 34 electric power to supply approximately 900,000 month construction phase which will support an homes locally and throughout the region. average of 250 jobs and as many as 600 jobs at its “I have worked very closely with the Caithness peak. The direct construction payroll is expected Energy and Moxie Energy teams and have apto be approximately $80 million; the indirect and preciated the open line of communication that they induced payroll, an estimate of the money spent on have maintained with both my office and the local outside goods and services, is expected to reach community,” said State Senator John Gordner. $120 million. “I have no doubt that Caithness Energy and the “Today marks the beginning of a transformateam they have assembled for this project will be tional project that will utilize Pennsylvania natural a strong partner in our community as they have in gas resources, existing energy infrastructure and other communities where their plants operate. This the skilled local workforce to build a state-of-the-art project is a model of how our natural resources, natural gas power plant that will support local jobs energy infrastructure, location and skilled workand stabilize regional power prices,” said Leslie

J. Gelber, president and chief operating officer, Caithness Energy. “The plant will use innovative technology to achieve industry leading standards in continued support of our commitment to environmental stewardship and to being a good neighbor in the communities where our plants operate.”

The Caithness Moxie Freedom Power Generation Plant will be built with leading technology, including highly efficient and clean GE HA gas turbines, to achieve the lowest possible air emissions and ultra-low noise during operations. With this site location, building enclosures, and other noisedampening measures, sound levels at the nearest residences to the plant’s property line will not be increased noticeably from existing levels. Importantly, the power generation plant intends to use a cooling system that does not depend on drawing large amounts of water from the Susquehanna River or groundwater resources. The dry-cooling technology used by the plant means that water usage is 99 percent less than a same size plant using traditional cooling technology. “We are excited to work with Caithness Energy to build a clean and efficient natural gas power generation plant that will supply electricity to thou-

sands of residents in Northeastern Pennsylvania and throughout the region,” said Aaron Samson, president and CEO, Moxie Energy. When construction is completed, the Caithness Moxie Freedom Generation Plant will be a highly efficient combined-cycle power plant. Combinedcycle power plants operate at higher efficiencies than traditional fossil-fueled plants by capturing much of the energy contained in the hot exhaust from the natural gas combustion turbines to generate additional electricity. Using that energy, which otherwise would be wasted up the stack as hot air, is a major benefit of the combined-cycle design. Caithness Energy representatives were joined by state officials, the Salem Township supervisors, and representatives from partnering companies for the project including Moxie Energy, Gemma Power Systems, Don E. Bower, Inc., Cabot Oil & Gas and South Jersey Resources. For more information on Caithness Energy LLC visit www.caithnessenergy.com. For more information about the Caithness Moxie Freedom plant visit moxieenergy.com/Freedom_Power_Generation_Plant.html

The Caithness Moxie Freedom Power Generation Plant, a nearly $1 billion natural gas power generation plant will support hundreds of construction jobs and generate enough electric power to supply approximately 900,000 homes locally and throughout the region when it is built in Salem Township, Luzerne County.

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REGIONAL BUSINESS

Northeast Pennsylvania Business Journal to Showcase Area’s Best and Brightest Women!

Celebrating Women Entrepreneurs Scranton, Susan G. Komen Race for the Cure, The Hard work sweetened University of Scranton and Happenings Magazine, with chocolate to name a few. One of her challenges is raising

The Northeast Pennsylvania Business Journal will honor our region’s Top 25 Women in Business in our March publication! Nominate a woman business owner, entrepreneur or senior level company official to be spotlighted! To nominate yourself or another individual, fill out the nomination form today and send it to our editor, Christine Fanning. Mail........................NPBJ, 149 Penn Avenue, Scranton, PA 18503 Fax................................................................................570-207-3448 Email..............................................cfanning@timesshamrock.com

Publication Date.................................March 2016 Nomination Deadline...........................January 25 Please provide the following information about the person being nominated:

Name of nominee ________________________________________ Organization ______________________________________________

Street Address ______________________________________________________ City / State / ZipCode ________________________________________________ Work Phone________________________________________________________ E-mail ____________________________________________________________

If you are not the nominee, please provide us with the following contact information: Name / Title________________________________________________________ Organization _______________________________________________________ Work Phone / Fax ___________________________________________________ E-mail ____________________________________________________________

Why do you feel this person should be nominated for NEPA’s Top Women In Business? Contact Judy Gregg for advertising information 570-207-9001 ext. 5425 • 877-584-3561 • jgregg@timesshamrock.com Advertising Deadline...........................................February 15

The Region’s Award-Winning Source of Business News and Information

Call 570-207-9001 • 877-584-3561 • Fax 570-207-3452 149 Penn Avenue, Scranton, PA 18503 75 North Washington Street, Wilkes-Barre, PA 18711

22 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B22] | 01/06/16

advertising dollars but, “What’s most important is how I get myself out there.” Marianelli Finnerty jokes that, to the JoAnn Marianelli Finnerty never onlooker it seems very easy to have imagined that she would end up in a your own business but says, “My busicareer in chocolates. She has enjoyed a ness has consumed me 150 percent.” career in healthcare and teaches laboraAs the sole owner of Bella Faccias, tory procedures and phlebotomy. she works around-the-clock to carry Years ago, however, while planning out all functions from administrative her daughter’s Sweet 16 party, she to public relations, to coming up with was seeking personalized printing on Finnerty unique product ideas. She says she is chocolates and discovered there were very fortunate to have help from her no providers in the area. At around the staff who she same time, she praises for their received an creativity and email regarding hard work. opportunities The Univerin personalized sity of Scranton chocolate manuSmall Business facturing. Development In 2007, Center has Marianelli Finnersupported her ty decided that it business from was her calling the beginning to open up her and provided own personalvaluable and ized chocolate honest one-on-one consulting to help her identify business in her home and Bella Faccias Personalbusiness techniques that work, from those that ized Chocolates & Gifts was born. don’t, she explains. The subsequent growth of her business allowed While Marianelli Finnerty’s business consumes her to open up a brick and mortar store in 2011. almost all of her time she truly believes that, Marianelli Finnerty comments that operating her “Family and friends are most important.” She loves business is not without challenges. Woman ento enjoy a home-cooked meal with her son and trepreneurship, especially in 2007, was frequently daughter, or walk her dog when she has spare time. frowned upon. Despite some resistance, Marianelli Bella Faccias provides personalized creations Finnerty continued to grow and differentiate her for all occasions including Christenings, weddings, business from others. anniversaries, birthdays, retirements, and corporate While there are several chocolate businesses events. Marianelli Finnerty notes, “We love to do in the area, Bella Faccias is unique because it ofcool and unique things.” JoAnn is grateful that her fers personalized printing directly onto chocolate, business has helped her connect with old friends, without the use of rice paper. Marianelli Finnerty and have fun throughout the years. notes that no other businesses in the area have Bella Faccias Personalized Chocolates & Gifts the proper system and machinery to print directly is located at 516 Lackawanna Ave in Scranton. Call onto chocolate. Additionally, she points out that (570) 343-8777, Email bellafaccias@gmail.com, her enterprise is a boutique offering personalor Visit bellafaccias.net and https://www.facebook. ized and monogrammed jewelry with on site and com/BellaFacciasChocolates Internet sales. By Larissa Hoffmann

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JANUARY 2016

Marianelli Finnerty says it is very important to Larissa Hoffmann is a University of Scranton Women’s reach out to the community and in terms of innovation she states, “It’s limitless what we do.” She Entrepreneurship Center intern, where she works under the supervision of Donna Simpson, consultant has worked with the Ronald McDonald House of manager. Larisssa is a senior accounting major.

SMALL BUSINESS SPOTLIGHT

The Small Business Spotlight is on: COMPLETE HEALTH DENTISTRY OF NEPA Honesdale, PA • (570) 253-5000 Member since 2008 According to their company promise, Honesdale-based Complete Health Dentistry of NEPA’s number one goal is to improve the lives of those they serve. By taking a more holistic approach to dentistry and committing to a practice-wide elimination of dental mercury, Dr. Michael Rogers hopes that every one of his patients understands how oral and bodily health go together. We recently spoke to Dr. Rogers and his wife and practice manager, April, about their business and their unique approach to oral health. Q. What makes your practice unique in the field of dentistry? Dr. Michael Rogers (MR): We are committed to making sure that our patients’ teeth and gums get the best care possible in our office but, for us, that’s just the beginning. We understand that your mouth is a window into the health of the rest of your body. By thinking about the whole person, we

can provide an early diagnosis of health problems and preventive care.

April Rogers (AR): Our practice is part of a unique non-profit group called Partners in Complete Health. That means we are doing everything in our power to ensure health and wellness for all. We offer everything from dental procedures to wellness counseling to help you achieve complete health for life.

Q. What types of services do you provide patients? (DR): We keep up with the latest in technology and cutting-edge procedures so our patients can have all of their dental work performed in our (DR): Your health needs are very specific to you. office. For instance, many patients have been We will help you achieve diagnosed with sleep lasting results through apnea but find they “We treat each patient with compassion, are unable to wear creating a safe and comfortable environment our customized treatment while communicating and educating clearly. plan. As we communicate the recommended C-Pap device. We offer Every patient will understand the mouth-body clearly and co-diagnose connection.” – Dr. Michael Rogers with you, we will decide custom-made special together what is best for sleep appliances for you. We will execute our plans with the highest quality those unable to wear the traditional C-Pap. This of care possible. fits in with the mouth-body connection that we advocate, as sleep apnea is so much more Q. What’s one thing you wish everyone knew that just snoring and keeping those around you awake. It turns out there are a frightening number about oral health? (DR): I wish people knew that inflammation of serious medical conditions directly related to and infection in our mouths have been linked to lack of sleep and lack of tissue oxygenation. Q. What’s it like being a patient in your office? major medical issues, such as heart attacks, stroke,

diabetes and cancer. Our patients appreciate our easy-to-understand explanations. We take the time to explain not just your options, but also how your oral and overall health are connected. We believe that education will help you maintain better complete health.

Q. What made you want to open your own practice in Northeastern Pennsylvania? (DR): My wife and my extended family are all from northeast Pennsylvania. We both feel this is a beautiful area that has given so much to us over the years that we would love to give back and help this area become one of the healthiest in the country. Q.How do you give back to the community you serve? We sponsor many area fundraisers and participate in health fairs. We also host 5Ks, do talks on complete health at the YMCA and even have a Relay for Life team. Our goal this year is to have one activity every month where we are out and about in the community. We plan to add a “Give Seniors a Smile Day” to the list in the future.

Dr. Michael Rogers, with April Rogers, his wife and practice manager, takes a holistic approach to dentistry.

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Music Therapy and COPD

HEALTHCARE

Music Therapy Increases Effectiveness of Pulmonary Rehabilitation for Breathless COPD Patients, Mount Sinai Study Finds

shifting away from strict traditional assessments that once focused primarily on diagnosis, morbidity and mortality rates,” said Joanne Loewy, DA, director of the Louis Armstrong Center for Music and Medicine at MSBI, where the study was conducted. “Instead, the care of the chronically ill is moving By Laura Werle, Mount Sinai Health System toward methods that aim to preserve and enhance quality of life of our patients and activities of daily Patients with chronic obstructive pulmoliving through identification of their nary Disease (COPD) and other culture, motivation, caregiver/home chronic respiratory disorders who trends and perceptions of daily wellreceived music therapy in conjuncness routines.” tion with standard rehabilitation “Music therapy has emerged saw an improvement in symptoms, as an essential component to an psychological well-being and quality integrated approach in the manageof life compared to patients receivment of chronic respiratory disease,” ing rehabilitation alone, according to said Jonathan Raskin, MD, co-author Patients with COPD a new study by researchers at The of the study and director of the Alice Louis Armstrong Center of Music and are often socially iso- Lawrence Center for Health and lated, unable to get Medicine at Mount Sinai Beth Israel Rehabilitation at MSBI. to medical services (MSBI). “The results of this study provide and underserved Study findings were published a comprehensive foundation for in rehabilitation last month in “Respiratory Medicine” programs, making the establishment of music therapy and suggest that music therapy may intervention as part of pulmonary effective treatment be an effective addition to traditional difficult. rehabilitation care.” treatment. The researchers who conducted COPD is the fourth leading cause the study work at the Louis Armstrong of death in the United States with symptoms inCenter for Music and Medicine at MSBI. In addicluding shortness of breath, wheezing, an ongoing tion to conducting research and providing health cough, frequent colds or flu, and chest tightness. services to New York City’s performing artists, the Patients with COPD are often socially isolated, center’s staff teaches and trains music therapists. unable to get to medical services and underserved The study’s lead author, Bernardo Canga, in rehabilitation programs, making effective treatMMT, was one such research fellow. Funding for ment difficult. the study was provided by Johnson & Johnson’s The 68 study participants were diagnosed with Society for the Arts In Healthcare and the Louis chronic disabling respiratory diseases, including Armstrong Education Foundation. Yamaha donated COPD. Over the course of six weeks, a randomized recorders for patient use in the study. group of these patients attended weekly music therapy sessions. Each session included live music, The Mount Sinai Health System is an integrated health visualizations, wind instrument playing and singing, system committed to providing distinguished care, conducting transformative research, and advancing biowhich incorporated breath control techniques. medical education. Structured around seven hospital Certified music therapists provided active campuses and a single medical school, the Health Sysmusic-psychotherapy. The music therapy sessions tem has an extensive ambulatory network and a range incorporated patients’ preferred music, which of inpatient and outpatient services—from communitybased facilities to tertiary and quaternary care. encouraged self-expression, increased engagement in therapeutic activities and an opportunity to cope For more information, visit www.mountsinai.org or find Mount Sinai on Facebook,Twitter and YouTube. with the challenges of a chronic disease. “The care of chronic illness is purposefully

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JANUARY 2016

Misericordia University and Geisinger collaborate on discounted tuition for undergraduate, graduate nurses

Misericordia University and Geisinger Health System have partnered to offer discounted tuition to Geisinger employees interested in growing their careers by enrolling in the undergraduate and graduate nursing programs beginning with the spring semester. The agreement allows Geisinger nurses who wish to earn a bachelor of science in nursing (BSN) degree to enroll in the RN to BSN program. BSN registered nurses also can work toward an advanced practice degree. Misericordia University is offering the master of science in nursing (MSN)family nurse practitioner, MSN to doctor of nurse practice (DNP), and BSN to DNP degrees. The program also includes the part-time accelerated evening BSN program. The discounted tuition ranges from 20 to 30 percent for eligible participants. “The Geisinger name is synonymous with quality patient care and innovative health care practices,’’ said Thomas J. Botzman, Ph.D., president of Misericordia University. “We are proud to partner with Geisinger and play a role in the system’s ongoing efforts to offer a highly trained and educated nursing staff for their patients.’’ “This valuable partnership with Misericordia University supports our nurses’ efforts to broaden their academic knowledge, to keep current with changes in their field and to increase their potential for growth within Geisinger,’’ said Maryann E. Cortese-Rubino, Geisinger northeast associate vice president for nursing services. “Nurses are on the front lines of health care, and this partnership helps our nurses to continue providing quality, compassionate care for our patients.’’ The discounts may be combined with other scholarships and awards. Geisinger continues to offer tuition reimbursement to all employees for work-related courses and degrees. Employees who satisfactorily complete the course can receive an annual reimbursement

up to $2,500. Misericordia University features the oldest nursing program in the area and graduates more students in the health sciences than any other college or university in Northeastern Pennsylvania. The University offers three undergraduate nursing programs: traditional, full-time nursing students; part-time accelerated evening program for adult students; and the RN to BSN Expressway Program. The undergraduate nursing programs are designed to meet the special educational and scheduling needs of adult and traditional students. They all lead to the bachelor of science in nursing (BSN) degree. The MSN nursing program is designed to meet the special needs of current BSN registered nurses who desire an advanced practice specialization as a family nurse practitioner. Misericordia also offers a post-master’s certificate as a family nurse practitioner for nurses who already have an advanced clinical master’s degree and who wish to change or expand their practice focus to primary care. Nurse practitioners are registered nurses with advanced education in health assessment, diagnosis and management of acute and chronic health conditions with expertise in health promotion and disease prevention. Graduate programming leads to the MSN and provides course work in a convenient part-time, one-day-a-week format. The university also offers an online doctor of nursing practice degree program in two formats to accommodate the needs of busy health care professionals and in response to a growing national need. For more information about the discounted tuition program at Misericordia University, please call (570) 674-6791 or log on to misericordia.edu/ geisinger. For additional information about the nursing program, please log on to misericordia. edu/nursing.

HEALTHCARE

pilot project tests improving patients’ health by addressing social needs The Department of Health and Human Services them connect with and/or navigate the appropriate (HHS) announced a new funding opportunity of up community-based services. For example, a patient who isn’t taking his to $157 million to test whether screening beneficiamedication because he or she lacks transportaries for health-related social needs and associated tion to the pharmacy would be referred to federal, referrals to and navigation of community-based state or local assistance programs. Some bridge services will improve quality and affordability in organizations will assist beneficiaries in applyMedicare and Medicaid. Many of these social ing for community-based services, such as the issues, such as housing instability, hunger, and Low Income interpersonal violence, affect inThe goal of the Accountable Health Commu- Home Energy dividuals’ health, nities Model is that beneficiaries struggling Program, which can provide yet they may not with unmet health-related social needs are much-needed be detected or aware of the community-based services assistance with addressed during available to them and receive assistance utility bills and altypical health low beneficiaries care-related accessing those services. to maintain their visits. Over time, these unmet needs may increase the risk of devel- medication supply rather than having to choose oping chronic conditions and reduce an individual’s between maintaining their health or paying their heating bill. ability to manage these conditions, resulting in “For decades, we’ve known that social needs increased health care utilization and costs. profoundly affect health, and this model will help us The five-year program, called the Accountable Health Communities Model, is the first Centers for understand which strategies work to help improve health and spend dollars more wisely,” said Dr. Medicare & Medicaid Services (CMS) Innovation Patrick Conway, CMS Deputy Administrator and Center model to focus on the health-related social Chief Medical Officer. needs of Medicare and Medicaid beneficiaries, “We will learn how health and health care including building alignment between clinical and improvements can be achieved through strong community-based services at the local level. The partnerships and linkages at the community level.” goal of this model is that beneficiaries struggling The Affordable Care Act provides tools, such with unmet health-related social needs are aware of the community-based services available to them as the Accountable Health Communities Model, to move our health care system toward one that and receive assistance accessing those services. rewards doctors based on the quality, not quantity “We recognize that keeping people healthy is about more than what happens inside a doctor’s of- of care they give patients. This effort is part of the administration’s broadfice, and that’s why, for the first time, we are testing whether screening patients for health-related social er strategy to improve the health care system by paying providers for what works, unlocking health needs and connecting them to local community care data, and finding new ways to coordinate and resources like housing and transportation to the integrate care to improve quality. doctor will ultimately improve their health and In January 2015, HHS announced the reduce the cost to taxpayers,” said HHS Secretary ambitious goal of tying 30 percent of Medicare Sylvia M. Burwell. payments to quality and value through alternative “The Accountable Health Communities model payment models by 2016 and 50 percent of payis yet another step towards building a health care system that results in healthier people and stronger ments by 2018. More than 4,600 payers, providers, employers, patients, states, consumer groups, communities and spends our health care dollars consumers and other partners have registered to more wisely.” participate in the Health Care Payment Learning Award recipients under this model, referred to and Action Network, which was launched to help as “bridge organizations,” will oversee the screenthe entire health care system reach these goals. ing of Medicare and Medicaid beneficiaries for social and behavioral issues, such as housing inModel description stability, food insecurity, utility needs, interpersonal Thanks to funding provided under the violence, and transportation limitations, and help

Affordable Care Act, the Accountable Health Communities Model will support up to 44 bridge organizations, which will deploy a common, comprehensive screening assessment for health-related social needs among all Medicare and Medicaid beneficiaries accessing care at participating clinical delivery sites. The model will test three scalable approaches to addressing health-related social needs and linking clinical and community services – community referral, community service navigation, and community service alignment. Bridge organizations will inventory local community agencies and provide referrals to those agencies as needed. They may also provide intensive community service navigation such as in-depth assessment, planning, and follow-up until needs are resolved or determined to be unresolvable for high-risk beneficiaries. The pilot allows participants to assess community services and encourage partner alignment to ensure these services are available and responsive to the needs of beneficiaries. This continuous quality improvement approach includes organizing

an advisory board and data sharing to inform a gap analysis and quality improvement plan. To measure the effectiveness of the model on impacting total cost of health care utilization and quality of care, the primary evaluation will focus on reduction in total health care costs, emergency department visits, and impatient hospital readmissions. Eligible applicants for the Accountable Health Communities model are community-based organizations, hospitals and health systems, institutions of higher education, local government entities, tribal organizations, and for-profit and not-for-profit local and national entities with the capacity to develop and maintain a referral network with clinical delivery sites and community service providers. Applications will be due in early 2016 and CMS anticipates announcing awards in the fall of 2016. To view a fact sheet on the Accountable Health Communities Model or for more information on the Accountable Health Communities Model, including the Funding Opportunity Announcement, please visit: https://innovation.cms.gov/initiatives/ahcm.

Upcoming Special Editions! • Cardiac Care

Publishing: February • Ad Deadline: January 15

• Architects & Engineers

Publishing: February • Ad Deadline: January 15

• Dollars and Sense

Publishing: February • Ad Deadline: January 15

• NEPA’s Top 25 Women in Business

Nomination Deadline: January 25 Publishing: March • Ad Deadline: February 15

• Spring Healthcare Update

Publishing: April • Ad Deadline: March 15

Contact Judy Gregg today for advertising information! 570-207-9001 ext. 5425 • jgregg@timesshamrock.com

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REGIONAL

Trucking Settlement Ranks Among Highest in State and Country

Wilkes-Barre 800 Mercer Avenue Kingston, PA 18704 570-763-0336

A $3.97 million settlement Munley Law obtained for the family of the victim in a trucking accident case is the second-highest settlement in Pennsylvania in 2015, and the 25th highest in the U.S., according to The National Law Journal. Handled by Daniel Munley and Marion Munley, the case stemmed from a January 2011 tractor trailer accident on I-80 in Columbia County.

The nearly $4 million settlement effectively holds PBM and Republic National Industries responsible for the negligence of the defendant, who was cited six separate times by the Pennsylvania state police in the aftermath of the accident for offenses that included exceeding hours of service and falsifying log books.

“This case was truly heartwrenching,” noted Munley Law partner Daniel Munley, whose pracThe accident claimed the life of Munley tice focuses on trucking and major the plaintiff’s husband, who collided transportation accidents. “While with the trailer of another truck no amount of money can bring whose driver had lost control on the snow-covered highway. The defendant in the ac- back our client’s husband or replace his role within cident was a driver for PBM, a Texas trucking com- his family, we hope this significant settlement can pany; the trailer the driver was hauling was leased to bring them a measure of security. PBM by Republic National Industries of Texas.

Kane is Able upgrades to LED lighting Kane is Able is projected to save more than 2 million kWh annually with the added benefit of eliminating the emission of 2.7 million pounds of greenhouse gases each year thanks to an LED lighting project executed by R World Energy Solutions. Third-party logistics provider Kane Is Able Inc. recently completed a 1.2 million square foot LED lighting upgrade in two distribution centers located in its Scranton business campus. The installation was provided by R World Energy Solutions (rworldenergy.com) based in King of Prussia. The project is a continuation of KANE’s mission of safety, quality and sustainability. John Hurst, KANE’s senior vice president of operations, commented, “R World understood what we needed in these large facilities. They provided a competitive proposal including financing, then delivered the project according to schedule with no disruption to our operations.” The upgraded LED fixtures provide much brighter light for improved working conditions, while enhancing the overall safety and efficiency of the distribution centers.

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Kane Is Able is a third-party logistics provider that helps manufacturers and their retail partners efficiently and effectively distribute goods throughout the United States. KANE’s value-added logistics services include retail consolidation, nationwide warehousing and distribution, contract packaging, and transportation solutions. R World Energy Solutions (RWES), located in King of Prussia, provides comprehensive Energy Management, Conservation, and Project Development services to commercial and industrial enterprises. The company delivers consulting, contracting, retro-commissioning, distributed energy, lighting, HVAC, water conservation and financing solutions and services. RWES utilizes the latest software tools, best-of-breed technologies, and forward-thinking services proven to reduce energy and water consumption, minimize carbon footprint, and increase our clients’ competitive position while delivering significant Returns on Investment. Values, partners, and customers are keys to R World’s success.

STATE DEP Sends Final Oil and Gas Rules to Environmental Quality Board The Pennsylvania Department of Environmental Protection (DEP) transmitted the final “Environmental Protection Performance Standards at Oil and Gas Well Sites” rulemaking (Chapters 78 and 78a) to the state Environmental Quality Board (EQB) for review today. This step brings the rules closer to enactment, and continues DEP’s commitment to modernizing and strengthening the environmental controls employed by both the conventional and unconventional industries to assure the protection of public health, safety, and the environment. DEP provided EQB with more than 2,800 pages of materials supporting the rulemaking, including the executive summary, the regulatory language, a fact sheet, the order, and regulatory analysis form. The package also includes the comment and response document, in which every one of the almost 28,000 comments were addressed by DEP. Taken together, the order, regulatory analysis form, and comment and response document provide the justification for the final-form rulemaking. “These regulatory changes are balanced, incremental and appropriate; protecting public health while enabling responsible drilling to proceed,” said DEP Secretary John Quigley. “These rules are a long time coming -- more than four years -- and were written with an unprecedented amount of public participation and transparency. We’ve worked hard to ensure that the health and safety of our citizens are protected, and the needs of industry are being met.” The amendments to the oil and gas regulations address surface activities at well sites, and center on five core areas. The amendments:

• Improve protection of water resources, • Add public resources considerations, • Protect public health and safety, • Address landowner concerns, and • Enhance transparency and improve data management. “It’s important to emphasize the role of the public and stakeholders in this process. Across a dozen public hearings, two public comment periods that attracted almost 28,000 comments, and 20 meetings with the Oil and Gas Technical Advisory Board and Conventional Oil and Gas Advisory Committee, this has been an exercise in transparency in rulemaking,” said Quigley. “These rules present a distinct, substantive separation of regulatory provisions applicable to conventional and unconventional wells. They will allow the oil and gas industries in Pennsylvania to continue to flourish, while adding additional common-sense environmental and public health safeguards,” he added. The rulemaking revisions are the first since 2001 to update surface impacts of drilling and production activity. The rulemaking package itself has been in development since 2011. The Environmental Quality Board will now review the final-form rulemaking package, and once adopted will be reviewed by the Independent Regulatory Review Commission. For more information, or to view the rulemaking, click here or visit dep.state.pa.us and click the “Oil and Gas Rulemaking” button.

Pa. residents and businesses urged to test for radon The Department of Environmental Protection (DEP) today urged all Pennsylvanians to test their homes for radon, a deadly radioactive gas that’s the leading cause of lung cancer in non-smokers in the United States. DEP also urged residents to take action to reduce radon levels in their homes if they are high. “Due to our geology, radon is found everywhere in Pennsylvania. For that reason, we urge residents to test their homes to protect themselves and their family’s health,” said DEP Secretary John Quigley. “Winter is the best time to test your home for radon because doors and windows are typically closed and tightly sealed, producing the most accurate results.” January is Radon Action Month, and a great time to test. The U.S. Environmental Protection Agency

sets the “action level” for radon at 4 picocuries per liter (pCi/L) of air. Residents with levels at or above that figure should take steps to lower them. Testing for radon is the only way to know if a home, school, workplace or other structure has elevated concentrations of radon. Test kits can be purchased at most hardware or home improvement stores at an average cost of $15 to $25 per test. If you are uncomfortable doing the testing yourself you can hire a state-certified radon tester, or if you are selling your home and want a radon test, it is best to hire a certified tester. The cost of a mitigation system typically ranges around $1,000.

AT THE HEART OF THE ARTS AND ENTERTAINMENT F.M. KIRBY CENTER FOR THE PERFORMING ARTS 2015-2016 SEASON

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music from THE WALL - ANIMALS SIDE OF THE MOON DARK THE & WISH YOU WERE HERE plus a show-stopping rendition of ECHOES, in its entirety, plus much much more...

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Lee Piatt, Esquire Wednesday, January 13th, 8:30-10:30am Contact Nimita Patel for more information 570-408-9853 or nimita.patel@wilkes.edu

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Please see RADON, Page 28

NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 27 TS_CNG/NPBJ/PAGES [B27] | 01/06/16

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STATE FROM PAGE 27

Pennsylvania law requires all radon service providers, such as radon testers, radon mitigators and radon laboratories to be certified by DEP. The list of Pennsylvania-certified radon service providers is updated monthly and available on DEP’s website. You can also obtain a hard copy of the directory or verify a company’s certification by calling 800-23RADON. In 2014, the highest radon level ever recorded in the U.S. was found in a home in Lehigh County. The concentration measured was 3,715 pCi/L, more than 900 times EPA’s action level of 4 pCi/L. DEP recommended the owners vacate their home until it could be remediated to safe levels. “Approximately 20,000 lung cancer deaths per year are attributable to radon exposure so the threat is very real,” said Secretary of Health Dr. Karen Murphy. “Radon exposure combined with smoking is a particularly lethal combination so we encourage everyone to take steps to reduce their risk.” If you are building a new home, DEP recommends installing a passive radon system during construction. If high radon levels are found when the home is completed, a fan can be readily installed. There are good reasons to install a radon system during construction:

• There is no reliable way to test the ground in advance for radon. • The average residential radon level in Pennsylvania is 7-8 picocuries per liter. • The cost of installing the radon system during construction should be less than installing one after the fact. • Building the radon system internally should keep aesthetics of the home intact. If radon is not addressed during construction, an outside radon system may be required if the radon test comes back greater than 4 picocuries per liter. For people buying or selling a home, Pennsylvania’s Real Estate Seller Disclosure Act requires sellers to disclose the results of any known radon testing. DEP’s website lists radon testing options for real estate transactions DEP, in cooperation with Commonwealth Media Services, has produced a public service announcement about the importance of radon testing. The PSA is currently airing on Pennsylvania, television and radio stations during January. The PSA is available on DEP’s YouTube Channel. For more information about radon testing and radon resistant construction, visit DEP’s website at dep.pa.gov/radon.

Join us for Winter Open House! Saturday, January 23 from 8:30 am to 2:30 pm

Register online at kings.edu/winter or call 1-888-KINGS PA 28 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B28] | 01/06/16

18:12 | GRAHAMTOM

JANUARY 2016

PIDA approves low interest loans for small businesses in Pa. counties

Department of Community and Economic Development Secretary Dennis Davin today announced that new state investments through the Pennsylvania Industrial Development Authority (PIDA) program will support the continued growth of Pennsylvania small businesses that are projected to create 165 new jobs and retain 152 jobs, supporting private sector growth. Over the last month, PIDA approved more than $7 million in low-interest loans for eight projects in six counties that will generate more than $22.5 million in total investments. “The loans approved over the last month will provide support to several agricultural businesses across the commonwealth,” said Davin. “Our investment in this key industry will spur further growth and advancement.” This month marks the first PIDA board meeting in 2016. In 2015, PIDA approved $55.1 million in lowinterest loans that resulted in $126 million in private investment and supported 2,650 created and retained jobs. PIDA is an independent authority staffed and regu-

lated through the Department of Community and Economic Development. The Authority provides capital for building acquisition, construction and renovation work, machinery and equipment loans along with working capital line of credit loans, primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania. PIDA is continuing to offer extremely competitive interest rates due to recent market changes. Qualified applicants are eligible to select either a reset rate of 2.75 percent for the first seven years or a fixed rate of 3.75 percent for real estate financing, 3.75 percent fixed rate for equipment loans, 3.75 percent fixed rate loans for a 12-month period for working capital and accounts receivable lines of credit, and 2.00 percent fixed rate for pollution prevention and energy efficient loans. Rates will be in effect for loan applications received through March 31, 2016. For more information about the Pennsylvania Industrial Development Authority, visit newpa.com.

DEP Assesses civil penalties against company for storage tank violations in Philadelphia The Department of Environmental Protection (“DEP”) assessed two civil penalties totaling $745,000 against Kinder Morgan Liquids Terminals Inc. for multiple violations at two facilities in Philadelphia. Through two separate Consent Assessments of Civil Penalty, Kinder Morgan has agreed to resolve civil penalty liability for violations of the Storage Tank and Spill Prevention Act at both the Kinder Morgan Liquids Terminal on N. Delaware Ave. and Kinder Morgan Point Breeze Terminal on Passyunk Ave. The first penalty, in the amount of $570,000, addresses violations relating to a release of approximately 8,000 gallons of fuel grade ethanol from an aboveground storage tank at the Liquids Terminal, which reached soil and groundwater through a failed containment structure. Kinder Morgan neglected to investigate a suspected release as quickly as the law requires and was untimely with the notification of the release to downstream water users. DEP is working with Kinder Morgan on improving its procedures for responding to a release and on ensuring the adequacy of all of its containment structures. Kinder Morgan is in the process of cleaning this site. The second penalty, in the amount of $175,000, addresses violations relating to stormwater accumulation in emergency release containment structures

throughout the Point Breeze Terminal. Emergency containment structures are designed to prevent contamination from entering the environment, which in this case includes surrounding exceptional value wetlands and the Delaware River, in the event of a catastrophic release from a large aboveground storage tank. When those structures are filled with stormwater, they cannot serve that function and can contribute to corrosion of the tanks that they hold. Because Kinder Morgan never notified DEP of the problem, DEP could not offer assistance in resolving the violation in a timely manner. “Whether it be a product release or the failure to follow regulatory requirements, we take our mission to provide for the health and safety of our citizens very seriously,” said DEP Secretary John Quigley. “Economic opportunities must be pursued responsibly, safeguarding public health and the environment. We expect that this penalty will result in strengthened safeguards across the board.” Money from the civil penalty goes to the Commonwealth of Pennsylvania Storage Tank Fund, which is administered by the Department for use in programs designed to ensure proper monitoring, operation, and remediation of releases from aboveground and underground tanks that contain a variety of regulated petroleum and chemical substances.

FOR THE RECORD DEEDs Columbia County

Katt Real Estate llC. Property Location: Berwick. Seller: John Sabatino. Price: $119,670. Stout Realty llC. Property Location: Pine Township. Seller: Estate of Cora R. Earnest. Price: $26,000. GP investors llC. Property Location: Bloomsburg. Seller: N.D. LLC. Price: $30,000.

laCKawanna County

Kaja Holdings 2 llC. Property Location: Carbondale. Seller: OCWEN Loan Servicing LLC. Price: $12,386. Carbondale area School District. Property Location: Carbondale. Seller: Our Lady of Mt. Carmel Congregation. Price: $200,000. amana Capital management llC. Seller: USA HUD. Property Location: Scranton. Price: 15,000 Greenfield twp. Property Location: Greenfield Twp. Seller: Lake View Estates. Price: $1. mb Development inc. Property Location: Jermyn Borough. Seller: Raymond Development Co. Inc. Price: $28,000. Roaring brook twp. Property Location: Roaring Brook Twp. Seller: Landview Properties LLC. Price: $1. Scott twp. Property Location: Scott Twp. Seller: Scranton Lackawanna Industrial Bldg. Co. Price: $45,000. uKRaPPRoP 2 llC. Property Location: Scranton. Seller: Fannie Mae. Amount: $13,000. Quincy ave. Offices Inc. Property Location: Scranton .Seller: RS Buckman Enterprises Inc. Price: 1,150,000. uSa HuD. Property Location. Scranton. Seller: US Bank Trust National Assoc. Price: $1. uSa HuD. Property Location: Scranton. Seller: Bank of America. Price: $1. Five Hundred thirty Six llC. Property Location: Scranton. Seller: CCCG Realty LLC. Price:110,000. CR Properties 2015 llC. Property Location: Scranton. Seller: OCWEN Loan Servicing LLC. Price: $7,050. uKRaPPRoP 2 llC. Property Location: Scranton. Seller: Fannie Mae.Price: $55,000. Gravel Pond townhouses inc. Property Location: S. Ab Twp. Seller: Gravel LLC. Price: $25,000. 54 Plus Realty Corp. Property Location: Scranton. Seller: Pride Holdings LLC. Price: $1,800,000. Parise bros. LLC. Property Location: Two Parcels, Scranton Carbondale Hwy. Seller: Sunburst Corp. of Blakely. Price: $220,000. mb Development inc. Property Location: Vandling Borough. Seller: Raymond Development Co. Inc. Price: 28,000. Cicilioni Properties inc. Property Location: Vandling Borough. Seller: Goldman Sachs Mortgage Co. Price: $38,500. KmRb Properties llC. Property Location: Vandling. Seller: Fannie Mae. Seller: Price: $30,000.

luzERnE County

norfolk Southern Railway Co. Property Locations: Avoca Borough; Conyngham Twp. (four parcels); Dupont Borough; Duryea Borough; Edwardsville Borough; (two parcels); Hanover Twp (two parcels); Jenkins Twp; Kingston Borough (three parcels); Laflin Borough; Nantickoke City (four parcels); Nescopeck Borough (three parcels); Nescopeck Twp. (three parcels); Pittston Twp.; Newport Twp.; Plains Twp. (two parcels); and Wilkes-Barre City (12 parcels); and Yatesville Borough. Seller: Delaware and Hudson Railway Co. Price: $26,206,267. Pam management inc. Property Location: Hazle Twp. Seller: Nelly Holdings Inc. Price: $800,000. bipin Ketan Properties llC. Property Location: 2 parcels, Duryea Borough. Seller: Allen Owen Properties LLC. Price: $755,000.

itoH Denki uSa inc. Property Location: Two parcels, Hanover Twp. Seller: Mericle 2 Great Valley LLC. Price: $1,821,650. First KtH llC. Property Location: West Hazleton Borough. Seller: Joseph C. Bambera Trustee, St. Francis Assissi Church of West Hazleton. Price: $250,000. Pennsylvania CVS Pharmacy llC. Property Location: Two parcels, Hazle Twp. Seller: NERS Properties LLC. Price: $550,000. Pennsylvania CVS Pharmacy llC. Property Location: Hazle Twp. Seller: Mountain View Real Estate. Price: $738,147. meadowbrook Realty llC. Property Location: Kingston Borough. Seller: Mani Etemad and Susan Khosnood 2001 Revocable Living Trust. Price: $725,000. Harvey Propco llC. Property Location: Forty Fort Borough. Harvey Industries Inc. Price: $736,078. 309-2 Highland Park llC. Property Location: WilkesBarre Twp. Seller: Luzerne County Industrial Development Authority and Greater Wilkes-Barre Development Corp. .Price: $400,000. millennium Holdings iV llC. Property Location: Plains Twp. Seller: MEMCO Realty Co. Price: $3,300,000.

monRoE County

nab Real Estate limited liability Co. Property location: Hamilton Township. Seller: JAM Real Estate Group LP, JAM Organic LLC (gen. partner). Price: $900,000. blue Ridge Hook & ladder Fire Co. No. 1. Property location: Hamilton Township. Seller: Pauline and Randy Kresge, Connie McConnell (atty.). Price: $40,000. wine Press Estates llC. Property location: Pocono Township. Seller: Bernadette Pirone, Marvin and Joan Mills (partners). Price: $825,000. Prosell llC. Property location: Chestnuthill Township. Seller: Secretary of Veterans Affairs. Price: $90,000. PiP Holdings. Property location: Paradise Township. Seller: Bank of New York Mellon. Price: $136,510. talukdar Global Group inc. Property location: Tunkhannock Township. Seller: John Virella. Price: $355,000. Jbb associates llC. Property location: Middle Smithfield Township. Seller: Freddie Mac. Price: $142,000. 58ot llC. Property location: Tobyhanna Township. Seller: Jadwica Lewis Est., Walter Lewis (Exr.) Price: $325,000. uS Paradise management llC. Property location: Mt. Pocono. Seller: Pocono Cab Mountain Taxi 611 Realty Corp. Price: $170,000. be a man buy land llC. Property location: Coolbaugh Township. Seller: Fannie Mae. Price: $3,255. Kadees Dry Cleaning llC. Property location: Coolbaugh Township. Seller: Fannie Mae. Price: $27,500. 434 King Street llC. Property location: East Stroudsburg. Seller: Irving Sommer Est. Price: $300,500. CHaV llC. Property location: Ross Township. Seller: Saylorsburg DG LLC. Price: $1,495,000. mountain laurel Grove llC. Property location: Tunkhannock Township. Seller: Deutche Bank National Trust Co. Price: $40,800. Pocono Commercial Real Estate llC. Property location: Stroudsburg. Seller: JARF Enterprises LLC. Price: $175,000. manhasset llC. Property location: Jackson Township. Seller: Jo Ann Thomas Living Trust. Price: $130,000. KPC Ventures llC. Property location: East Stroudsburg. Seller: Graydon and Debra Propst. Price: $39,000. 33 mill Creek llC. Property location: Stroud Township. Seller: Achterman Living Trust, Jeanne and Leo Achterman Jr. (trus.). Price: $275,000. Keystone Services Group llC. Property location: Coolbaugh Township. Seller: Wells Fargo Bank NA. Price:

$87,516. Sixth Street Partners inc. Property location: Pocono Township. Seller: First National Bank of Pennsylvania. Price: $135,000.

PiKE County

VP Diamond Homes. Property Location: Hemlock Farms. Seller: Pike County Tax Claim Bureau. Price: $6208.05. Route 739 llC. Property Location: Pike County. Seller: Dingman Plaza LP. Price: $398.250 Dingman Plaza Road association. Property Location: Pike County. Seller: Dingman Plaza LP. Price: $1. Vliestra masonry inc. Property Location: Gold Key Estates. Seller: MM Homes Land. Price: 16,520. melvin Properties inc. Property Location: The Falls at Saw Creek. Seller: JMJS Rentals. Price: $40,000. mountain Shadow Enterprises llC. Property Location: Pike County. Seller: US Bank National Association (trustee). Price: $182,400. milford Development inc. Property Location: Pike County. Seller: Bayview Loan Servicing LLC. Price: $215,000. moon Valley Falls Homeowners association. Property Location: Pike Couty. Seller: Moon Valley Falls. Price: $1. Stonecrest acquisitions llC. Property Location: Pike County. Seller: Federal Home Loan Mortgage Corp. Price. $106,050. Paupack Property management llC. Property Location: White Sand Springs. Seller: BUL Price: $3,000 Kaja Holdings 2 llC. Property Location: Sagamore Estates. Seller: Federal Home Loan Mortgage Corp. Price: 20,110. Secretary of Housing and urban Development. Property Location: Milford. Seller: Met Life Bank. Price: $1.

wyominG County

wyoming County tax Claim bureau trustee. Property Location: North Branch Twp. Seller: Green Newland LLC. Price: $64,649.50 wyoming County tax Claim bureau trustee. Property. Location: Exeter Twp. Seller: 404-422 Coolbaugh Mountain LP. Price: $93,593. mountain Stone llC, langdon Group llC. Property Location: Tunkhannock Twp. Seller: Secretary Of Housing and Urban Development. Price: $57,200. Deutsche bank national trust Co. Trustee, Wyoming County Tax Claim Bureau Trustee. Property Location Falls Twp. Seller: New Century Home Equity Loan Trust. Price $1,359.95. Commonwealth of Pa., Dept. of Transportation. Property Location: Factoryville Borough. Seller: Anthony P. Litwin III and Paula D. Litwin. Grantee: Price: $1. alice D. Brinton. Property Location: Windham Twp. Seller: Milliron Farm. Price: $1. James a. Milliron. Property Location: Windham Twp. Seller: Milliron Farm. Price: $1. Ralph R. Milliron Jr., Gloria J. Milliron. Property Location: Windham Twp. Seller: Milliron Farm. Price: $1.

MORTgagEs Columbia County

tru Properties llC. Property Location: Scott Township. Lender: First Keystone Community Bank. Amount: $500,000. Great bend Holdings inc. Property Location: Mifflin Township. Lender: Peoples Security Bank and Trust Company. Amount: $2,500,000.

Katt Real Estate llC. Property Location: Berwick. Lender: First Keystone Community Bank. Amount: $190,000. Gordner Enterprises llC. Property Location: Bloomsburg. Lender: Jersey Shore State Bank. Amount: $175,000. nEPa Homes llC. Property Location: Bloomsburg. Lender: JSJ Wealth LLC. Amount: $150,000.

laCKawanna County

Swinka Realty investments llC. Property Location: Carbondale. Lender: Valor Federal Credit Union. Amount: 80,000. Right way Realty llC. Property Location: Carbondale. Lender: Wayne Bank. .Amount: $37,500. aqua Pennsylvania inc. Four Property Locations: Glenburn Twp., North Abington Twp., South Abington Twp. and Covington Twp. Lender: Bank of New York Mellon Trust Co. Amount: 65,000,000. asia uS Realty llC. Property Location: Dickson City. Lender: Fidelity Deposit and Discount Bank. Amount: $200,000. b&D Realty inc. Property Location: Dickson City. Lender: Valor Federal Credit Union. Amount: 46,000. Amount: $46,000. StS taylor Properties llC. Property Location: Moosic Borough. Lender: Community Bank. Amount: $950,000. 904 South main Street llC. Property Location: Old Forge Borough. Lender: Fidelity Dep & Disc Bank. Amount: $450,000. marjer inc. Property Location: Olyphant. Lender: Valor Federal Credit Union. Amount: $320,000 Pa Hempstead Road assoc. LP. Property Location: Olyphant. Lender: Mid Penn Bank. Amount: $2,000,000 Elmhurst-Roaring brook Volunteer Fire Co. Property Location: Elmhurst. Lender: Peoples Security Bank & Trust Co. Amount: $360,000. times Partner llC. Property Location: Scott Twp. Lender: M&T. Property Location: Amount: 25,000,000. llPS Realty lP. Property Location: Scranton. Lender: First National Bank of Pa. Property Location: Amount: $640,000. 134 n. Main Ave. LLC. Property Location: Scranton. Lender: First National Bank of Pa. Amount: $20,000. Swinka Realty investments llC. Property Location: Scranton. Lender: Valor Federal Credit Union. Amount: $320,000. Edwards Property Solutions llC. Peoperty Location: Scranton. Lender: Wayne Bank Amount: $236,000. Kenmarq llC. Property Location: Scranton. Lender: Peoples Security Bank & Trust Co. Amount: $140,000. 236 Penn Partnership. Property Location: Scranton. Lender: Peoples Security Bank & Trust Co. Amount: $200,000. Quincy avenue offices inc. Property Location: Scranton. Lender: Community Bank. Amount: $920,000. Surf associates. Property Location: Scranton. Lender: Peoples Security Bank & Trust Co. Amount: $200,000. DJm nnn iii llC. Property Location: Scranton. Lender: Wells Fargo Bank. Amount: $40,000,000. 215 Vine Realty llC. Property Location: Scranton. Lender: Community Bank. Amount: $1,484,000. 225 Vine Realty llC. Property Location: 2 parcels. Scranton. Lender: Community Bank. $1,792,000. RJ Properties uSa llC. Property Location: Scranton. Lender: Landmark Community Bank. Amount: 220,000. aqua Pennsylvania inc. Property Location: S. Abington Twp. Lender: Bank of New York Mellon Trust Please see RECORD, Page 31

NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 29 TS_CNG/NPBJ/PAGES [B29] | 01/06/16

18:34 | GRAHAMTOM

PERSONNEL FILE

Pancholy

Bost

Betts

ALLIED SERVICES INTEGRATED HEALTH SYSTEM Allied Services Integrated Health System announced that Dipti Pancholy, M.D., FACP, is the medical director of the new Allied Services Hospice. Dr. Pancholy brings 20 years experience as a board certified internist to her new role at Allied Services, where she has been a consulting physician for many years. A Fellow of the American College of Physicians, Dr. Pancholy completed her medical education at the State University of New York School of Medicine at Stony Brook. Following her residency at Thomas Jefferson Hospital in Philadelphia in 1996, Dr. Pancholy began caring for patients in Northeastern Pennsylvania. In both her practice and mentorship, Dr. Pancholy advocates for a multidimensional and multidisciplinary approach that incorporates the body, mind and environment into patient care. Dr. Pancholy currently holds the position of Assistant Professor in the Department of Medicine at The Commonwealth Medical College. She also serves as Chairperson for Internal Medicine Curriculum, Care Transitions and Consultative Medicine Specialist at the Wright Center for Graduate Medical Education. While in medical school, Dr. Pancholy received the American Medical Women’s Award for superior academic performance. She later received a mentorship award from the American Medical

Jeziorski

Kersteen

Association and was name in the 2014 Top 25 Women in Business in Northeastern Pennsylvania by the National Association of Women Business Owners. Dr. Pancholy serves on the Board of Directors of the Scranton Chamber of Commerce. Ann Bost, R.N. is the clinical director of Allied Services Hospice. Bost brings more than 25 years of nursing and management experience, including more than 15 years of hospice care, to her role at Allied Services She joins Allied after serving as assistant hospice supervisor at Traditional Home Health and Hospice in Dunmore. David R. Betts, M. Div Is the spiritual and bereavement counselor for Allied Services Hospice. Betts graduated from Catholic University of America with a masters of divinity in 1998. He also earned a masters in public administration and a masters of social work from Marywood University in 2015. Prior to joining Allied Services, Betts served patients and families at Hospice of the Sacred Heart, the Veterans Affairs hospital and the Diocese of Scranton. Dawn Jeziorski, LSW is the medical social worker and coordinator of volunteers for Allied Services Hospice. A graduate of Marywood University, Dawn earned a Masters in Social Work. She joins Allied with more than 14 years experience in hospice, most recently working as a medical social worker for Asera Care Hospice, Clarks Summit. Michelle Kersteen, R.N. is a new member of

Seated left to right, first row: Ann Bost, R.N., clinical director; Bernice Tully, executive director; and Dawn Jeziorski, LSW, medical social worker/coordinator of volunteers; Second row, left to right: Michelle Kersteen, R.N.; Dipti Pancholy, M.D., FACP, medical director; David Betts, M.Div, LSW, spiritual and bereavement counselor; Lorraine Castellino, R.N.; and Karen Welcome, R.N.

30 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B30] | 01/06/16

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JANUARY 2016

Welcome

Castellino

the team at Allied Services Hospice. An R.N. case manager at Asera Care Hospice prior to joining Allied, Michelle has 30 years of nursing experience including five years specializing in hospice care. Karen Welcome, R.N. is a new member of the team at Allied Services Hospice. Karen brings more than 35 years of nursing experience to her new role. Prior to joining Allied, she served hospice patients at Commonwealth Hospice. Lorraine Castellino, R.N. is a new member of the team at Allied Services Hospice. Prior to joining Allied, Lorraine served hospice patients at VNA of Lackawanna County, Compassionate Care Hospice and VNA of Luzerne County. BARRY ISETT & ASSOCIATES

Hazell

Landis

Barry Isett & Associates (BIA), a multidiscipline engineering firm with offices in Hazleton and Forty Fort, has hired two new additions to the mechanical, electrical, and plumbing (MEP) department. Steven Landis has more than 25 years experience as an electrical designer and draftsman. Before joining BIA, Landis was an electrical systems designer and project manager for Liberty Engineering Inc. Throughout his career, he worked a variety of projects including healthcare, retail, and warehouse facilities. As an electrical designer, Landis’ expertise aided in the construction of a 120,000 square-foot, four-story addition to St. Luke’s Hospital in Allentown. Landis is a graduate of Lehigh Carbon Community College and plans to pursue certification as a leadership in energy & environmental design (LEED) professional. Daniel Hazell, PE, of Philadelphia, is a mechanical engineer who earned his bachelor of science degree in mechanical engineering from Lehigh University. After receiving his master’s from Lehigh,

Hazell set the foundation of his career as a HVAC product engineer before working as a mechanical engineer. He broadened his experience designing HVAC systems, overseeing mechanical teams, energy modeling, and more. He has managed projects through bidding, construction and closeout and has coordinated with other disciplines, architects, and contractors to work toward project completion. A registered professional engineer, Hazell is also a member of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE). BIA’s services include: municipal engineering; code services; civil, structural, forensic, mechanical, electrical and plumbing engineering; landscape design; construction inspection; survey services; environmental services; and construction services. The company has other Pennsylvania offices in Allentown and Phoenixville as well as a branch in Phillipsburg, NJ. BIA is a privately held firm owned jointly by Mr. Isett, a consortium of about 35 shareholder-associates, and an Employee Stock Ownership Plan. The company website is www. barryisett.com. CATHOLIC SOCIAL SERVICES Mary Theresa Vautrinot was named diocesan secretary for Catholic Human Services and executive director of Catholic Social Services, effective Jan. 4, 2016. Vautrinot succeeds Monsignor Joseph P. Kelly, who is retiring from the position after 10 years in that role. Vautrinot brings to Catholic Social Services a decade of CEO/COO level leadership experience in Catholic hospitals, with Catholic Health East and Maxis Health System in Carbondale and Holy Family Memorial in Wisconsin, and was at the vice president level at Pennsylvania Hospital/University of Pennsylvania Health System and Easton Hospital. Catholic Social Services programs provide services to tens of thousands of clients in Northeastern Pennsylvania on an annual basis, including services to struggling individuals, children, and families; shelters for the homeless and food for the hungry; adoption and foster care; affordable housing; help for homeless veterans, resettlement services for refugees from strife-ridden regions of the world, and treatment for those battling the travesties of addiction. Monsignor Kelly will continue his work with St. Francis of Assisi Soup Kitchen in Scranton, which, although often associated with Catholic Social Services, is technically an independent organization. Please see PERSONNEL FILE, Page 32

FOR THE RECORD FROM PAGE 29 Co. Amount: $65,000,000. TJ Grzenda LLC. Property Location: West Abington Twp. Lender: Peoples Security Bank & Trust Co. Amount: $40,000. Gravel Pond Townhouses Inc. Property Location: South Abington Twp. Lender: Fidelity Dep & Disc Bank. Amount: $1,500,000. Pride Holdings LLC. Property Location: Taylor Borough. Lender: Bryn Mawr Trust Co. Amount: $500,000 JB Realty LLC. Property Location: West Abington Twp. Lender: Fidelity Dep. & Disc Bank. Amount: $250,000. TJ Grzenda LLC. Property Location: West Abington Twp. Lender: Peoples Security Bank & Trust Co. Amount: $40,000. Palumbo Family Trust. Property Location: West Abington Twp. Lender: Synergy One Lending Inc. Amount: $300,000. Parise Bros. LLC. Property Location: Scranton Carbondale Hwy. Lender: First National Bank of Pa. Amount: $200,000.

LuzeRne CounTy

Douthat Ventures. Lender: First Keystone Community Bank. Property Location: Lemon Twp. Amount: $50,000. Mahalaxmi Realty. Lender: Landmark Community Bank. Property Location: Pittston Twp. Amount: $550,000. 1 Great Valley LLC. Lender: Manufacturers & Traders Trust Co. Property Location: Hanover Twp. Amount: $13,000.000. LHBH Investments LLC. Realty. Lender: Luzerne Bank. Property Location: Two parcels in Luzerne Borough. Amount: $412,000. Citi Tower LLC. Realty. Lender: Honesdale National Bank. Property Location: Two parcels in Wilkes Barre City. Amount: $4,115,000. Deer Run Realty. Lender: Peoples Security Bank & Trust Co. Property Location: Lehman Twp. Amount: $400,000. Cradle Real estate LLC. Lender: PNC Bank. Property Location: Hazle Twp. Amount: $580,000. Keystone Garden estates. Lender: SF IV Bridge II LP. Property Location: Larksville Borough. Amount: $2,800,000. Lakewood Development Co. Inc. Lender: Fairway Consumer Discount Co. Property Locations: Two in Dallas Twp. and One in Kingston Twp. Amount: $294,700. Swinka Realty Investments LLC. Lender: Valor Federal Credit Union. Property Location: Nanticoke City. Amount: $320,000. PAM Management Inc.. Lender: Penn Security Bank & Trust Co. Property Location: Hazle Twp. Amount: $619,000. Aggies Four Inc. Lender: First National Community Bank. Property Location: Jenkins Twp. Amount: $600,000. Bipin Ketan Properties LLC. Lender: Wayne Bank. Property Location: Two propeties in Duryea Borough. Amount: $604,000. Huntsville LP and Glen Lyon Realty Inc. Lender: Jersey Shore State Bank. Property Location: Wilkes-Barre Twp. Amount: $4,000,000. First KTH LLC. Lender: Mid Penn Bank. Property Location: West Hazleton Borough. Amount: 219,000. Greater Hazleton Community Area new Development organization Inc.. Lender: Mid Penn Bank. Property Location: Hazle Twp. Amount: $4,800,000. JTSG Real estate Co. LLC. Lender: First National Community Bank. Property Location: Two parcels, Wright Twp. Amount: $320,000 and $330,000.

Mundy Street Square LP and Mundy Street Development Corp. Lender: First National Community Bank. Property Location: Wilkes-Barre Twp. Amount: $999,000. Laurels LLC. Lender: First National Bank of Pa. Property Location: Butler Twp. Amount: $1,250,000. Harvey Propco LLC. Lender: Ladder Capital Finance LLC. Property Location: Forty Fort Borough. Amount: $600,000. Aggies Four Inc. Lender: First National Community Bank. Property Location: Jenkins Twp. Amount: $600,000. 309-2 Highland Park LLC. Lender: CNB Bank. Property Location: Two parcels, Wilkes-Barre Twp. Amount: $800,000 and $400,000. elestan Realty Co. Lender: First National Bank of Pa.. Property Location: Nine parcels, seven of nine, Hazleton City and two, Hazle Twp. Amount: $747,000. Moxie Freedom LLC. Lender: MUFG Union Bank. Property Location: Seven parcels, Salem Twp. Amount: $591,691,757.

MonRoe CounTy

nAB Real estate Limited Liability Co. Property location: Hamilton Township. Lender: First Keystone Community Bank. Amount: $720,000. LA Investments LLC. Property location: Stroud Township. Lender: Fidelity Deposit and Discount Bank. Amount: $56,250. LTS Homes LLC. Property location: Smithfield Township. Lender: First National Community Bank. Amount: $180,300. Mr. Fair offer LLC. Property location: Coolbaugh Township. Lender: American IRA F/B/O Brad Ransome Traditional IRA. Amount: $75,000. Wine Press estates LLC. Property location: Pocono Township. Lender: Wayne Bank. Amount: $660,000. Wine Press Estates LLC. Property location: Pocono Township. Lender: Bernadette Pirone, Marvin and Joan Mills. Amount: $40,000. negozi enterprises LLC. Property location: East Stroudsburg. Lender: Highlands State Bank. Amount: $1,700,000. Lexbec Land Group LLC. Property location: Hamilton Township. Lender: First Northern Bank and Trust Co. Amount: $35,000. nibor Partners LP, Lehigh nibor (gen. partner). Property location: Stroud Township. Lender: National Penn Bank. Amount: $747,000. uS Paradise Management LLC. Property location: Mt. Pocono. Lender: Robert Heller. Amount: $150,000. TACM Properties LLC. Property location: Chestnuthill Township. Lender: Wayne Bank. Amount: $15,000. Good as New Ventures LLC. Property location: East Stroudsburg. Lender: Meridian Bank. Amount: $1,620,000. Southern Specialty Properties LLC. Property location: Tobyhanna Township. Lender: RCN Capital LLC. Amount: $62,842. CHAV LLC. Property location: Ross Township. Lender: American Fidelity Assurance Co. Amount: $1,075,000. Pocono Commercial Real estate LLC. Property location: Stroudsburg. Lender: First National Bank of Pennsylvania. Amount: $140,000. 431 north Courtland Realty LLC. Property location: East Stroudsburg. Lender: School Bus by Superior Inc. Amount: $128,029. Mt Tom Road Properties LLC. Property location: Smithfield Township. Lender: ESSA Bank & Trust. Amount: $70,000. Sunset Hill Range Ltd. Partnership, Bonifacic LLC (gen. partner). Property location: Pocono Township.

Lender: M&T Bank. Amount: $200,000. Finesse LLC. Property location: Stroudsburg. Lender: PNC Bank NA. Amount: $100,000. LTS Homes LLC. Property location: Smithfield Township. Lender: Wayne Bank. Amount: $199,400.

PIKe CounTy

Mountain Shadow enterprises LLC. Property Location: Milford Borough. Lender: PNC Bank. Amount: $120,000. Tanglwood Lakes Community Corp. Property Location: Palmyra Twp. Lender: Dime Bank.Amount: $300,000. Cole Properties LP. Property Location: Matamoras Borough. Lender: Dime Bank. Amount: $ 100,000. Milford West Development LLC. Property Location: Dingman Twp. Lender: Wayne Bank. Amount: $277,500. Slate Stone Hunting Club. Property Location: Westfall Twp. Lender: Wayne Bank. Amount: $20,000.

WyoMInG CounTy

Mountain Stone LLC; Langdon Group LLC. Lender: Peoples Security Bank and Trust Co. Property Location: Lemon Twp. Amount: $50,000. Chief exploration and Development LLC. Lender: Wilmington Trust National Association. Property Location: Nicholson Township; Washington Township, Lemon Township, Meshoppen Township and Braintrim Township. Amount: $400,000,00. Tenant Services of Pennsylvania LLC. Lender: Mid Penn Bank. Property Location: Clinton Twp.. Amount $345,000.

STOCKS

This report on insider trading activity has been prepared for informational purposes only by James Blazejewski, CFP, Senior Vice President-Investment Officer, Wells Fargo Advisors LLC, 672 North River St., Suite 300, Plains, PA 18705. It is based on information generally available to the public from sources believed to be reliable. No representation is made that the information is accurate or complete and it does not constitute a recommendation to buy or sell any particular security. Current information contained in this report is not indicative of future activity. Wells Fargo Advisors LLC, member NYSE & SIPC. Source of data: Thomson Financial

InSIDeR TRADInG ACTIVITy on SToCKS oF LoCAL InTeReST FoR JAnuARy

(AWK – 57.75) AMeRICAn WATeR WoRKS Co. InC. Walter Lynch, officer of American Water Works, exercised options for 10,000 shares on November 20 at $25.78 per share (2,703 shares exercised 1.1 years prior to the expiration date and 7,297 shares exercised 2.1 years prior to the expiration date) for a total cost of $257,772 and on the same date sold those shares at $57.50 per share for total proceeds of $575,000. Lynch controls 72,882 shares directly. Over the last six months, insiders of American Water Works acquired 4,100 shares and disposed of 35,263 shares. (FDBC – 34.27) FIDeLITy D&D BAnCoRP InC. Brian Cali, director of Fidelity D&D Bancorp Inc., exercised options for 1,000 shares on November 30 at $28.90 per share (exercised 2.1 years prior to the expiration date) at a total cost of $28,900. Cali controls 192,123 shares indirectly. Over the last six months, insiders of Fidelity D&D Bancorp acquired 1,546 shares. (HSC – 9.71) HARSCo CoRP. Scott Gerson, vice president of Harsco Corp., sold

3,950 shares on December 3 at $9.87 per share for total proceeds of $38,987. Gerson controls 12,469 shares directly. Over the last six months, insiders of Harsco Corp. acquired 57,000 shares. (MTB – 125.61) M&T BAnK CoRP. Richard Gold, vice president of M&T Bank Corp., exercised options for 6,000 shares on December 1 at $108.93 per share (exercised 1.6 months prior to the expiration date) for a total cost of $653,580 and on the same date sold those shares at $126.45 per share for total proceeds of $758,700. Gold exercised options for 918 shares on November 23 at $108.93 per share (exercised 1.8 months prior to the expiration date) at a total cost of $99,998 and on the same date sold those shares at $125.50 per share for total proceeds of $115,207. Gold controls 40,395 shares directly and 17 shares indirectly. Darren King, president of M&T Bank Corp., exercised options for 8,869 shares on December 1 at $108.93 per share (exercised 1.6 months prior to the expiration date) for a total cost of $966,100 and on the same date sold those shares at $126.33 per share for total proceeds of $1,120,417. King controls 17,566 shares directly and 1,911 shares indirectly. Over the last six months, insiders of M&T Bank Corp. disposed of 33,094 shares

(nBTB – 29.87) nBT BAnCoRP InC. Martin Dietrich, CEO of NBT Bancorp, exercised options for 42,641 shares on November 23 at $22.02 per share (12,641 shares exercised 2.1 years prior to the expiration date and 30,000 shares exercised six years prior to the expiration date) for a total cost of $938,679 and on the same date surrendered 37,565 shares back to NBT Bancorp at $30.17 per share for total proceeds of $1,133,336. Dietrich controls 192,503 shares directly and 30,433 shares indirectly. Timothy Delaney, director of NBT Bancorp, exercised options for 1,667 shares on November 20 at $22.27 per share (167 shares exercised 2.8 months prior to the expiration date; 500 shares exercised 5.4 months prior to the expiration date; 500 shares exercised 1.4 years prior to the expiration date and 500 shares exercised 2.4 years prior to the expiration date) for a total cost of $37,126 and on the same date sold those shares at $29.88 per share for total proceeds of $49,810. Delaney controls 51,713 shares directly and 271 shares indirectly. David Raven, vice president of NBT Bancorp, exercised options for 7,701 shares on November 19 at $20.36 per share (exercised 2.2 years prior to the expiration date) for a total cost of $156,805 and on the same date sold those shares at $29.80 per share for total proceeds of $229,490. Raven controls 35,048 shares directly and 28,444 shares indirectly. Over the last six months, insiders of NBT Bancorp acquired 2,350 shares and disposed of 112,818 shares. (PG – 77.54) PRoCTeR & GAMBLe Co. Alan Lafley, chairman of the board of Procter & Gamble Co., in accordance with a prearranged trading plan (10b5-1) exercised options for 92,500 shares on December 1 at $60.50 per share (exercised 2.9 months prior to the expiration date) for a total cost of $5,596,250 and on the same date sold those shares at $76 per share for total proceeds of $7,030,000. Lafley controls 572,378 shares directly and 273,273 shares indirectly. Over the last six months, insiders of Procter & Gamble Co. disposed of 283,838 shares. Prices as of close of business on December 4, 2015

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personnel file FROM PAGE 30

fidelity deposit and disCount bank

Commonwealth health

MacDonald-Sweet

Beggin

Taylor

Cheryl MacDonald-Sweet, has been named director of the trauma service line at Commonwealth Health Wilkes-Barre General Hospital. MacDonaldSweet has been an emergency room and trauma nurse at CMC and also served as a critical care nurse educator and injury prevention/outreach coordinator. She also worked as a trauma program manager at other local hospitals. She serves as a forensic nurse for the Lackawanna County Children’s Advocacy Center and is the director of the paramedic program at Lackawanna College. Angie Taylor, a registered nurse at Commonwealth Health Tyler Memorial Hospital, has obtained board certification in emergency nursing. Taylor is a recent graduate of Penn State University with a bachelor of science degree in nursing. She has been employed by Tyler Memorial for 10 years, having started in 2005 as a nurse extern. She is a certified emergency medical technician and a member of Mehoopany and Factoryville emergency squads and has also completed the Emergency Nursing Association Pediatric Course and Trauma Nursing Core Course.

Mullaney

Marie Beggin was promoted to vice president and senior Risk officer, Fidelity Deposit and Discount Bank. As senior risk officer, she manages the commercial credit and loan administration function of the bank, including documentation and reporting functions; the compliance function; and collect and monitor information for the bank’s risk management platform. Beggin joined Fidelity Bank in 2010 as a credit analyst and in 2011 was promoted to vice president, Credit & Loan Administration manager where she distinguished herself with excellent leadership, guiding the consumer and commercial credit functions to their present success. Prior to joining the Fidelity team, Beggin gained banking experience as a Credit Department manager and commercial lender. Sharon A. Mullaney has joined Fidelity Bank as vice president and Business Services manager. Mullaney leads a team of professionals focused on delivering quality, thoughtful solutions to help corporate clients maximize cash flow and improve operating efficiency. Business Services includes cash management and merchant services for businesses and workplace banking services for their employees. She comes to Fidelity Bank with more

(Fidelity Bank story below) At the check presentation: L to R: Donna Gizenski, Vice President and Business Banking Relationship Manager, Fidelity Bank; Michael J. Pacyna, Jr., Executive Vice President & Chief Business Officer, Fidelity Bank; Daniel Santaniello, President and CEO, Fidelity Bank; Bob Stanley, Immediate Past President, LCCC Foundation; Judy Aita, President, LCCC Foundation; Thomas P. Leary, President, LCCC; Sandra Nicholas, Executive Director, LCCC Foundation, Inc.

than 34 years of banking experience. Fidelity Bank has 11 branches located throughout Lackawanna and Luzerne Counties and offers full-service Trust & Investment departments, a mortgage center, and an array of personal and business banking products and services. Visit www.bankatfidelity.com or call 1-800-388-4380. fidelity bank and luzerne County Community College foundation Fidelity Bank’s President And CEO, Daniel J. Santaniello presented the Luzerne County Community College Foundation with a $10,000 donation in support of the Foundation’s Annual Scholarship Dinner. This annual event raises funds to assist Luzerne County Community College students with financial need and scholarship opportunities.

dental lifestyle magazine spotlights area businesses

Each year, Incisal Edge, the leading lifestyle magazine for dental professionals, offers an opportunity for national recognition in outstanding practice design. The magazine’s team canvasses doctors, architects, designers, and students for nominations across five categories, then turns it all over to the blue-ribbon panel of judges. This year’s competition ran from February 25 through September 25. New for 2016 is an entry point designed for ease of use, where previous year’s winners provide motivation, and detailed instructions offer helpful tips. See IEDesignContest.com. Award-winning dental practices for 2016 include: Design of the Future, Discovery Dentistry, WilkesBarre and Amanda Thomas; New Construction Practice, South Davis Pediatric Dentistry, Bountiful, Utah and Dr. Jason Horgesheimer; Repurposed Commonwealth Health’s Regional Hospital of Scranton held its annual Employee Recognition Celebration Dinner at the Radisson Lackawanna StaPractice, Blanc Dental Studio, Philadelphia and Dr. tion. The evening honored employees of Regional Hospital, Home Health of NEPA, and Great Valley Cardiology with five to 45 years of service. Those Christopher Roxas tied with Van Timmeren Family honored for 40 and 45 years are from left: Elaine Walker, Gloria Schmitt, Donna Martucci, Ann Palko and Richard Rafalko. Employees with 35 years of service are seated from left: Joanne Valenches, Dorothy Schield, Joseph Pusateri, Rose Murphy and Karen Williams. Standing: Michele Uhranowsky, Lor- Dentistry, Wyoming, Mich, and Dr. Scott Van Timmeren; Specialty Practice, Little Smiles Pediatric raine Staple, Judy Sanloski, John Petrini, Mark Lucas, Christine Kohanski, Linda Jennings, Sandra Hill, Karen Calpin and William Schoellig.

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JANUARY 2016

personnel File these funds. In partnership with Shickshinny Forward and the Northeastern Pennsylvania Alliance, the Luzerne Foundation received a grant from the USDA / Rural Development Office to make these funds available through a revolving loan program. Loans are available from $5,000-$15,000. The current interest rate is fixed at one quarter of one percent for the loan term. The loan term ranges from two to five years. Businesses must have 50 or less employees with annual revenues less than $1,000,000. Loan priority will be given to qualified businesses that have experienced flood related damage. Loan proceeds must be used for purchase of machinery and equipment (new or used) as well as associated delivery and installation costs, working capital, construction, renovation, and acquisition of real property. Refinancing of existing debt is also an eligible cost. King’s College For more information and a loan application, conMatthew Kozicki, M.D., has been appointed tact NEPA Alliance staff members, Dave Nat or Paul medical director in the Physician Assistant (PA) Macknosky at 570-655-5581 or 866-758-1929. Studies Program at King’s The NEPA Alliance, a regional community and College. He is primarily economic development agency, serves the seven responsible for the didactic and clinical curriculum to en- counties of Northeastern Pennsylvania including sure the quality education of Carbon, Lackawanna, Luzerne, Monroe, Pike, King’s students as competent Schuylkill and Wayne. NEPA Alliance services include Business Financing, Government Contractdependent practitioners. He will assist faculty in teaching ing Assistance, International Trade Assistance, Koziciki Non Profit Assistance, Transportation Planning, courses or seminars and Research and Information, and Local Government precepting students on clinical rotations, provide Services. For more information about NEPA Alliacademic counseling, recruit preceptors and ance visit nepa-alliance.org or call 866-758-1929. clinical sites and serve as an advocate for the PA “This institution is an equal opportunity provider profession within the medical community. and employer. A member of the American Academy of Family Physicians, Dr. Kozicki received his bachelor’s nrCi degree from the University of Scranton and his medical degree from St. Matthew’s University, Grand Cayman. He completed his family medicine residency at Wilkes-Barre Family Medicine Residency Program, Kingston. He currently is a preceptor for students at The Commonwealth Medical College and the King’s College Physician Assistant Program. He works side by side with several physician assistants at his primary office Beer Maloney location in Blakeslee. Jackie Brozena, chair of the board of directors of the Northeast Regional Cancer Institute, announced The luzerne FoundaTion expands the appointments of Ronald R. Beer, MHA, FACHE geographiC area For iTs Business and gerald V. maloney, d.o., FaCp to the board FinanCe program The Luzerne Foundation announces an important of directors. Ronald R. Beer, MHA, FACHE, is the chief change in the eligible geographic area of its administrative officer for Geisinger Wyoming business finance program. Effective immediately eligible businesses in zip code 18655 can apply for Valley Medical Center (GWV) and its Geisinger

Dentistry and Costa Family and Cosmetic Dentistry, Ashburn, Va, and Dr. Shane Costa. The competition’s juried panel includes professionals from the dental and architectural worlds including Adam M. Wise, LEED AP Designer at Bohlin Cywinski Jackson, which is headquartered in Wilkes-Barre. Incisal Edge magazine is published by Benco Dental. It celebrates dentists’ achievements both inside the operatory and during their hard-earned downtime. For additional information regarding the magazine, visit cms-web.benco.com/incisaledge/. Benco Dental, headquartered in Northeastern Pennsylvania, is the largest privately-owned dental distributor in the United States, offering a full array of supplies, equipment and services to dentists across the nation. Founded in 1930 by Benjamin Cohen, the company has remained family-owned.

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The Region’s Award-Winning Source of Business News and Information 570-348-9190 • 877-584-3561 • Fax 570-207-3452 149 Penn Avenue, Scranton, PA 18503 75 North Washington Street, Wilkes-Barre, PA 18711 stoffey@timesshamrock.com NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 33

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Personnel File South Wilkes-Barre campus (GSWB). Beer joined Geisinger in 2013 as vice president of operations at GWV with system responsibilities for the emergency medicine service line. In April of 2014, Ron was promoted to chief administrative officer, GWV. Prior to joining Geisinger, Ron spent four years as the chief executive officer of Berwick Hospital Center and Berwick Retirement Village. Beer is a graduate of Emporia State University, Emporia, KS, where he earned a Bachelor of Science degree in Biology. He earned a Master of Health Care Administration from Trinity University, San Antonio, TX. Ron is a Fellow of the American College of Healthcare Executives and is active in various professional and civic organizations. Gerald Maloney, D.O., FACP currently serves as chief medical officer for Geisinger Wyoming Valley Medical Center (GWV) and its Geisinger South Wilkes-Barre campus (GSWB). Board certified in internal medicine and a palliative medicine, Dr. Maloney has a long history of caring for patients and their families in northeastern Pennsylvania. He earned a bachelor of science in pharmacy at Duquesne University, Pittsburgh, and a master of science in human services administration from Misericordia University. He earned his doctor of osteopathic medicine from the Philadelphia College of Osteopathic Medicine. Dr. Maloney is a fellow of the American College of Physicians and a diplomate of the American Board of Internal Medicine

Penn College business Team 1

Penn College business Team 2

Maryland; Haley J. Johnson, an accounting student from Selinsgrove; and Amanda N. Woolf, a business administration: management concentration student from Lititz, tied for 67th worldwide with an overall game-to-date score of 108.5 during the week Oct. 26-Nov. 1, when 4,980 teams were competing. Through the Business Strategy Game, students manage every functional area of their virtual business. “They make all decisions in areas such as Penn College Teams PlaCe in global ToP production, plant capacity, worker compensation and training, shipping and inventory, pricing and 100 in business simulaTion marketing, celebrities and endorsements, corporate Competing against thousands of teams worldsocial responsibility, and finance,” explained Chip wide, two Pennsylvania College of Technology D. Baumgardner, associate professor of business groups were ranked in the Global Top 100 during administration/management, who instructed the the fall semester as they “played” the Business Business Policy and Strategy course, a capstone Strategy Game. class for Penn College business students. “StuThe Business Strategy Game is an international dents develop a specific strategy to compete, which business simulation competition used not only in undergraduate capstone classes, but also in gradu- is in line with our strategic management course.” The challenge is to craft and execute a competitive ate classes and as a corporate-level training tool. strategy that results in a respected brand image, Students in Penn College’s Business Policy and keeps the company in contention for global market Strategy course were tasked with running a virtual athletic footwear company. Participating teams from leadership and produces good financial performance. To learn more about business majors at Penn Colacross the globe were ranked each week in four categories: overall game-to-date score, earnings per lege, call 570-327-4505 or visit pct.edu/bh. share, return on average equity and stock price. Penn College In the week Oct. 12-18, the Penn College team of Jessica Weigand, a senior marketing student at Jessie M. Chronister, a technology management Pennsylvania College of Technology was selected student from Annville; John A. “Jack” Kumor, a as an intern for a fan site that technology manageis known as the world’s No. 1 ment student from “Harry Potter” website. As a Jenkintown; Stacy A. social media intern for MugMilheim, a business gleNet, Jessica R. Wiegand, a administration: manstudent in business adminisagement concentration tration: marketing concentrastudent from Watsontion, joins a social media town; and Tammy S. Weigand staff of 19. She’s works on Ryder, a technology MuggleNet’s Facebook page, creating content, management student monitoring comments, interacting with fans and, from Hughesville, she says, “spreading the magic of ‘Harry Potter.’” tied at 49th among 4,578 teams in overall MuggleNet’s page on Facebook touts more than 330,000 likes, giving Wiegand’s work a worldwide game-to-date score audience as she learns what it takes to create and with 108.5 out of a manage social media campaigns that go viral. A 16maximum 110. year fan of the “Harry Potter” series, Wiegand, of The team of busiTrout Run, was ecstatic to learn she had earned one ness administration: of MuggleNet’s coveted internship spots. “When banking and finance concentration students submitting applications, we were warned upfront that MuggleNet received hundreds of applications Eric K. Anderson, for its internships,” Wiegand said. “So when I of Williamsport, and received the email congratulating me that I had George A. Gadbois, made the cut and my first Skype meeting was to be from Rockville, with certifications in Internal medicine, as well as hospice and palliative medicine. The Northeast Regional Cancer Institute is a nonprofit community-based agency serving seven counties in northeast Pennsylvania with offices located in Scranton and Wilkes-Barre. Focusing on surveillance, community and patient services, and hospital and practice support services, the Cancer Institute invests 100% of its resources locally.

34 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B34] | 01/06/16

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JANUARY 2016

later that week, I was in complete shock. I mean for a ‘Harry Potter’ fan, this email from MuggleNet was the equivalent of receiving your acceptance letter from Hogwarts.” Wiegand, who plans to pursue a digital marketing career that focuses on social media for business, feels well prepared for the three-month internship. PiCkeTT ConsTruCTion inC.

Pickett Construction Inc. held its annual golf tournament and donated $10,000 to Saint Jude’s Children’s Hospital. From left are: Levi Bonnice; Joe Solano; James Solano; representative from St. Jude’s Children’s Hospital, Kim Gill; Dee Solano and Jason Solano. TCmC Dr. Edith Mitchell, a member of the Board of Trustees of The Commonwealth Medical College (TCMC) and a renowned medical oncologist and president of the National Medical Association, was named one of the most influential African Americans in the country by EBONY magazine. She is among the individuals Mitchell honored in the 2015 EBONY Power 100 List, which the magazine compiles annually to celebrate inspiring African-Americans. “I am elated to be chosen by EBONY Magazine and to celebrate the collective achievements of our community,” said Mitchell, who is also the director of the Center to Eliminate Cancer Disparities and associate director for diversity at the Sidney Kimmel Cancer Center at Thomas Jefferson University in Philadelphia. She joined other luminaries in the African-American community at a December 2 gala at the Beverly Hilton in Los Angeles. The event will culminate with a special recognition of the 70th anniversary of EBONY magazine, which was founded

personnel file

Kanyock

Zygmut

founded in 1945. Being named to the EBONY Power 100 List is a distinguished achievement. This year, other names on the list include NBA player and literacy advocate Russell Westbrook; Coca-Cola CFO Kathy Waller; Apple Vice President of Environment, Policy and Social Initiatives Lisa Jackson; hair-care entrepreneur Miko Branch and Boeing chief information officer Ted Colbert. Jane Kanyock was appointed director of corporate and foundation relations at TCMC. Kanyock earned a bachelor’s degree in business administration and an MBA with an emphasis on marketing and finance from Wilkes University. She has more than 20 years’ experience in development, most recently as director of development for the Pocono Health Foundation, East Stroudsburg, where she finalized the capital campaign for the Dale and Frances Hughes Cancer Center at Pocono Medical Center. She has also served as director of donor relations and stewardship for Geisinger Health System Foundation; director of institutional advancement for Penn State Wilkes-Barre; and vice president of development for the Greater Hazleton Health Alliance. In her role as director of corporate and foundation relations for TCMC, Ms. Kanyock will build partnerships with corporations, corporate foundations and private foundations and oversee sponsorship and campaign goals. She is a certified fundraising executive (CFRE) and a member of the Association of Healthcare Philanthropy and its Standards Task Force. Elizabeth Zygmunt was appointed director of media and public relations at TCMC. Zygmunt earned a bachelor’s degree in communications and media studies from The University of Scranton. She has more than 15 years experience in print media, most recently as editor of the Northeast Pennsylvania Business Journal, Scranton, where she was responsible for writing, editing and curating content for a monthly business publication and other niche publications. She has also served as a regular columnist for various print media. In her role as director of media and public relations for TCMC, Zygmunt will be responsible for increasing the visibility of TCMC with local, regional and national media. She will oversee internal and external communications to ensure consistent and professional messaging.

(Tobyhanna story from right) From left, Steven Downer, chief of the Cryptographic Systems Division; Eric Meager and Michael Higgins, Tobyhanna Army Depot supply technicians; Electronics Worker Doreen Scott; Supply Technician Lucinda Williams; and Christopher Ward, chief of National Maintenance Point.

(Conference story from right) From left: Ralph N. Pacinelli, D.Ed., conference planning member; conference co-chair Rebecca Spirito Dalgin, Ph.D., associate professor of counseling and human services; Gary Olsen, vice president for development; Donald R. Boomgaarden, Ph.D., provost and senior vice president for academic affairs; Edward Leahy, honorary conference chair; Lori A. Bruch, associate professor and chair of the Department of Counseling and Human Services; and Debra Pellegrino, Ph.D., dean of the Panuska College of Professional Studies.

toastmasters international Stephanie Minkoff achieved the Distinguished Toastmaster award from Toastmasters International. Minkoff joined Electric City Toastmasters in February, 2013. She has presented more than 40 speeches, and served as a club officer, as well as a district officer. In addition to completing the high performance leadership project, she was instrumental in sponsoring two new Toastmasters clubs. Minkoff has been employed as a corporate trainer and manager of learning and organizational development at Sodexo, a multinational food service and facilities management corporation. She has more than 20 years experience as a human resources professional, a food services director, and a registered dietician.

tobyhanna army depot Supply technicians Michael Higgins, Lucinda Williams and Eric Meager; and Electronics worker Doreen Scott received certificates of appreciation for meritorious service and outstanding support to the Communications Security Logistics Activity (CSLA), Fort Huachuca, Arizona, during fiscal year 2015. CSLA officials Steven Downer, chief of the Cryptographic Systems Division, and Christopher Ward, chief of National Maintenance Point, presented the awards. Tobyhanna Army Depot technicians are responsible for ensuring warfighter readiness of Army Communication Security (COMSEC) assets. CSLA is Tobyhanna’s primary Army COMSEC customer. Ward noted that Army COMSEC is as strong as ever because of the hard work performed by depot personnel. “We don’t just see ourselves as customers. We value this relationship as partners generating and sustaining Army COMSEC readiness,” Downer said. Tobyhanna Army Depot is a recognized leader in providing world-class logistics support for command, control, communications, computers, intelligence, surveillance and reconnaissance systems across the Department of Defense. About 3,100 personnel are employed at Tobyhanna, which is located in the Pocono Mountains of northeastern Pennsylvania.

university hosts 14th annual northeastern u.s. ConferenCe on disability The University of Scranton’s 14th annual Northeastern U.S. Conference on disABILITY focused on hiring and keeping employees with disabilities. Hosted recently on campus by the University’s Panuska College of Professional Studies with the support of the Edward R. Leahy Jr. Endowment, the conference included presentations by national experts, policy makers, employers and motivational speakers. This year’s conference sponsors were Prudential Retirement, Allied Integrated Health System and the Society for Human Resource Management. students and faCulty meet with henry george leCturer susan athey, ph.d. Susan Athey, Ph.D., the Economics of Technology Professor at the Stanford Graduate School of Business, discussed “The Internet and the News Media” at The University of Scranton’s Henry George Lecture in November on campus. Pictured with University of Scranton faculty members are, seated from left: Iordanis Petsas, Ph.D., associate professor and chair of the Department of Economics and Finance; Edward M. Scahill, Ph.D., associate professor, economics and finance; Dr. Athey; and Susan Trussler, Ph.D., associate professor,

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personnel File

Adams

Castrogivanni

Dixon

French

from the University of Scranton. He will serve with the class of directors whose terms expire at the 2017 Annual Meeting. Adams will serve on the trust committee and as a rotating member of the directors’ loan committee of Wayne Bank. Joseph Castrogiovanni has joined the bank as commercial loan officer. Joe is based in the Adams Avenue community office in Scranton and will be working with businesses across the region. Castrogiovanni is a graduate of Bloomsburg University with an MBA in finance from Marywood University. Kayla Dixon was awarded the Presidential Award for Excellence, which is presented to Wayne Bank Wayne Bank Joseph W. Adams was appointed to the board of employees who show exceptional levels of dedicadirectors of Wayne Bank. He is currently serving as tion and service in their positions. Dixon began her career with Wayne Bank in January 2012 as a teller superintendent of schools for the Western Wayne in the Waymart Community Office, and was proSchool District located in Hamlin, South Canaan and Waymart. The district has 2,000 students, four moted to head teller the following year. In August 2014, Dixon joined the Retail Lending department schools and a $40 million budget. His previous experience includes an executive management posi- and works as a consumer loan representative at the tion at a local financial institution, a financial advisor main office in Honesdale. Ryan French was promoted to senior vice presiwith Morgan Stanley and business manager of the dent. French joined Wayne Bank in August of 2009 Wallenpaupack School District in Hawley. Adams as assistant vice president and director of human received his undergraduate and graduate degrees

economics and finance. Standing: Janice Mecadon, administrative assistant, Department of Economics and Finance; John Ruddy, faculty specialist, economics and finance; Jinghan Cai, Ph.D., assistant professor, economics and finance; Jahan Tabatabie, adjunct faculty, economics and finance; Ioannis N. Kallianiotis, Ph.D., professor, economics and finance; Christos Pargianas, Ph.D., assistant professor, economics and finance; and Aram Balagyozyan, Ph.D., assistant professor, economics and finance.

(Athey story from above) Dr. Athey met with University of Scranton Kania School of Management students and faculty prior to presenting the Henry George Lecture on campus. Seated from left: Aram Balagyozyan, Ph.D., assistant professor, economics and finance; James Jencarelli, a senior from Stroudsburg; Dr. Athey; and John Clark, a senior from Scranton. Standing: Daniel Clark, a senior from Scranton; Ryan Yetman, a senior from Middletown, New Jersey; Joseph Balzamo, a senior from Brooklyn, New York; Edward M. Scahill, Ph.D., associate professor, economics and finance; Anthony Campanella, a senior from Essex Fells, New Jersey; Christos Pargianas, Ph.D., assistant professor, economics and finance; and Janice Mecadon, administrative assistant, Department of Economics and Finance.

36 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B36] | 01/06/16

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JANUARY 2016

Miller

Taylor

resources. He has 15 years of human resources experience and has earned a bachelor’s degree in Human Resources Management from King’s College. Nancy Hart was promoted to senior vice president. Hart joined the Bank in 1979 as a member of the Bookkeeping Department. Over the course of her career with Wayne Bank she has held positions in the loan department, as a branch manager and a finance manager in the accounting department. In 1997 Nancy was promoted to controller and assistant secretary. Hart earned an associate degree through the American Institute of Banking. Nancy has also completed a two-year graduate school of Banking and Financial Management and has completed the three-year PBA School of Banking. Amanda Miller was promoted to Commercial Loan Documentation Officer. Miller started her career with Wayne Bank in 2002 as a floating teller in the Main Street office. She was previously a commercial loan documentation specialist, and over the course of her career she has held several titles in the loan operations department. Miller earned a bachelor of science degree in accounting from Mansfield University. Bonnie Taylor was promoted to assistant trust officer. Taylor is a recent Presidential Award of Excellence winner. She started her career at Wayne Bank in 2012 as a wealth management specialist and currently holds the title of wealth management associate. She also earned paralegal certification from Penn State University. Wayne Bank is a subsidiary of Norwood Financial Corp., Member FDIC, and is located in Honesdale, Pennsylvania. The Bank has 15 Community Offices in Wayne, Lackawanna, Pike and Monroe Counties with Commercial Lenders easily accessible within each of those counties. The stock trades on the NASDAQ Global Market under the symbol— NWFL.

Wayne MeMorial CoMMunity HealtH Centers (WMCHC) announces that certified family nurse practitioner Ise Kannebecker is seeing patients at the Northern Wayne Family Health Center, Lake Como. Kannebecker treats newborn to geriatric patients for primary care needs. She also offers

gynecological services utilizing a holistic approach. Kannebecker earned a master of science degree in nursing from the University of Scranton’s family nurse practitioner program. Additionally, she holds two undergraduate Kannebecker degrees, a bachelor of science in nursing from East Stroudsburg University and a bachelor of arts in music from Smith College. Her healthcare career spans 15 years. As a certified music practitioner, she was employed by Geisinger Community Medical Center in Scranton to play therapeutic harp music at the bedside of patients in the ICU and hospice units. Additionally, she volunteered her services in music therapy at Wayne Woodlands Manor, Waymart for more than five years. Wayne MeMorial Hospital Wayne Memorial Hospital Nursing Department staffer Wendy Garbolino was crowned the hospital’s Employee of the Year 2015. Garbolino was chosen from among the 12 Employees of the Month (EOM) of the year and elected by the EOMs of the year before. Wendy was July’s EOM. The other EOMs were, from January to December: Kristin Montauredes, Lab; Heather Holmes-Komar, New Beginnings; Colby Bothun, Dietary; Melissa Robbins, Lab; John Brinkers, Facility Services; Sue Umnik, Lab; Rebecca Lubeski, HR; Don Bishop, Security; Danielle Davis, RN, Performance Improvement; Charlene Whitmore, RN, Hospice; and Simone Hessling, Lab.

Wendy Garbolino, center, accepts her Wayne Memorial Hospital Employee of the Year (EOY) 2015 award, which included a monetary sum and a permanent place on the EOY wall in the hospital, with CEO David Hoff and Human Resources Director Liz McDonald.

STATE

Gun violence is a public health problem The following is a guest opinion from Scott Shapiro M.D., president of the Pennsylvania Medical Society and a practicing cardiologist at Abington Medical Specialists in Montgomery County. He writes on the issue of gun violence in response to President Obama’s recent announcement on gun violence. Through a highly publicized announcement, President Barack Obama using his presidential powers plans to tighten control and enforcement of firearms in the United States in response to growing concerns about gun violence and gun safety. Measures within the president’s initiative include background checks, expanded registration, additional examiners, and increased funding for enforcement and technology, as

Intermodal Center open for business

Effective Wednesday, January 6, Martz Trailways, Greyhound and Fullington Motor Coach services depart from the new Intermodal Center directly across the street from its previous location on Lackawanna Avenue. Important note: Only buses can access the terminal from Steamtown Mall entrance. For Martz parking and customer drop off, turn on to Bridge Street and continue to the left to enter the parking lot behind the intermodal station. For information, call 570-342-0166 to speak with an agent. Scranton ticketing hours are from 6:30 a.m. to 6:30 p.m., seven days a week and the lobby is open until 9 p.m. daily. Martz Curbside Express Service makes traveling to New York City as convenient as possible for just $25 on Wednesdays or $30 on Saturdays.

well as $500 million for mental health initiatives. President Obama anticipates that these measures will keep firearms from falling into the wrong hands. The issue of gun safety is a topic that has pressed Pennsylvania physicians into deep debate which ultimately resulted in the Pennsylvania Medical Society adopting related sensible gun safety policy in 2013. This policy focuses on gun safety as a public health problem worthy of increased research on how to best prevent gun violence and promote gun safety. Consider this … if public health campaigns can positively impact smoking-related deaths and car accident injuries, why can’t the same work to reduce injuries and deaths due to guns? Gun violence is a crime and every effort

Martz NYC Curbside Express For As Low As $25! Martz offers pick up points at Misericordia University, Wilkes University, Kings College and the Wyoming Valley Mall for its Wilkes-Barre schedule and Greenridge Plaza, Marywood University and University of Scranton for the Scranton schedule. The bus then drops passengers off and picks up at passenger choice of Madison Ave between 46th and 47th streets or Port Authority Gate 31 for Wilkes-Barre and Gate 25 for Scranton. Below you will find some suggested things to do and take advantage of this time of year! Two for One Broadway Week! Brooklyn Indoor Flea Market Winter Jam in Central Park

should be made to help our law enforcement professionals. However, the epidemic of gun violence is much deeper, and ignoring the public health side of this issue is a mistake. A more comprehensive look at gun safety is needed.

children, adolescents, people with dementia, people with mental illnesses including substance use disorders who are at risk of harming themselves or others, and people who abuse children or partners.”

For example, guns are involved in a large percentage of suicides in our country. When a suicide occurs, often friends and family ask themselves what they could have done to prevent it.

In other words, gun safety is a public health problem.

The answer may be simple … understand the signs of suicide and the ways to safely store guns and keep them out of the hands of individuals who will misuse them. Physicians and other public health experts will tell you that there’s a risk of keeping guns in the home “particularly in the presence of

Let’s not forget the public health side of this national problem. Pennsylvania physicians encourage President Obama to continue to support and expand public health campaigns that address the important aspects of gun safety nationwide. The Pennsylvania Medical Society was founded in 1848. To learn more about PAMED, visit its web site at pamedsoc.org or follow on Twitter @PAMEDSociety.

Healthcare focu us on...

CARDIAC CARE The Business Journal will observe American Heart Month by bringging you the latest prevention, detection and trreatment techniques available in NEPA. Heart disease iss the No.1 cause of death in the United Sttates. Learn how to protect yourself and safeguard your most precious muscle. We’ll also exploore the special cardiac needs of women as the nation “G Goes Red” for Women this month!

Publication Date: February 2016 Advertising Deadline: January 15 For advertisinng information contact Judy Gregg 570-207-9001 extension 5425

jgregg@timesshamrock.com

Cruise Manhattan New York City Restaurant Week For more information, log on to express.martztrailways.com/

The Region’s Award-Winningg Source of Business News and Information ATimes-Shamrock Publication

149 Penn Avenue - Scranton, PA 18503 | 75 N. Washington Street - Wilkes-Barre, PA 18711 | 570-207-9001 • 877-584-3561 • Fax 570-207-3452

NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 37 TS_CNG/NPBJ/PAGES [B37] | 01/06/16

18:34 | GRAHAMTOM

FROM PAGE 9

nials earning $100,000 or more use both alternative financial services and GPR cards. “Millennials with lower incomes use [alternative financial services] at lower rates than their higher-income generational peers but at appreciably higher rates than consumers of the Baby Boom and older generations. The two generations that comprise adults from the ages of 18 through 48 (Millennial and Generation X,) use AFS at above average rates across all income groups. Consumers ages 49 and older (Baby Boomers and older) use AFS at rates that are below the overall average,” according to the report.

percent use them to conduct electronic transfers to/from another person, and 18 percent use their GPR cards to keep money in reserve for later use,” according to the report. The report and survey results present the question of whether Millennials are using GPR cards as a banking product or budgeting tool. A majority of GPR cardholders surveyed in 2013 and 2014 also had checking accounts, debit cards and credit or charge cards. The researchers also identify “hybrid” consumers of financial services who combine traditional banking services with new, alternative options for spending and managing their money.

Consumers with a bank account will use AFS if they are more convenient, faster or cheaper even when banking services are available. The researchers conclude that Millennials use many options when it comes to their banking needs and budgeting. “The openness of new and alternative financial services among young adults does not appear to be associated with rejection or more traditional bank products,” according to the report. “Rather, young adults seem to be combining the traditional and the new, the mainstream and the alternative.”

Of the more than 4,000 respondents in the Consumer Payments Monitor survey, 927 people reported using alternative financial services when asked, “In the past year, have you (or anyone in your household) used a non-bank company or service to make financial transactions or obtain loans? Examples include: check-cashing and money order services, paying bills, send/receive money electronically, payday loans, pawnshops, rent-to-own services or tax refund anticipation loans.”

This article is excerpted from ACA International, acainternational.org/ Jan. 5, 2016.

The findings indicate that 60 percent of Millen-

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AUGUST 2014 VOL. 29 NO. 9

Mall at Steamtown now owned by mortgage lender By Phil Yacuboski

The Mall at Steamtown is now owned by its mortgage lender. In mid-July, the mall went up for sheriff’s sale and the only person to bid was Scranton businessman, Bob Bolus who planned to turn the mall into a casino. His bid was rejected because it was contingent upon him obtaining a casino license. The mall’s mortgage holder took possession of the property for taxes and costs when no

Al Boscov, middle, with his attorney, Scott Esterbrook, left and nephew Jim Boscov at the sheriff’s sale of the Mall at Steamtown last month. Times-Tribune ﬁle photo

potential bidders bit at the minimum asking price of $37.3 million. Steamtown Mall Partners did not bid. Department store owner Al Boscov is the principal of the Steamtown Mall Partners, along with his nephew Jim and Atty. Scott Esterbrook. They did not enter a bid at the sheriff’s sale, but Boscov said he will now renew negotiations with LNR Partners, the real estate company that represents the unidentiﬁed

Place Your Advertising Message Here! Please see Mall on page 10

ol scho ! k to e t bac ed my lif n e w g I chan and it

RESERVE

hran

ALSO INSIDE: Annual Adult Education Guide

Inspiring stories of real-life adult learners demonstrate education’s power to transform lives ................... ..................................................... 29

Back-to-School and Holiday Retail Forecast In a word: Guarded

NOW!

....................................................... 9

State Budget Deal Still no pension

reform. Governor says lawmakers ‘failed’ the people of Pennsylvania ... ..................................................... 12

Stafursky Paving Company Inc. based in Archald paves along State Route Road Lathrop Township, Susquehanna County. Above and right, Times-Tribune ﬁle photos

2004 in

Microbac lab manager Christine Pechacek tests water samples in the company’s Scranton facility.

From testing water to paving roads, local vendors now a vital part of the natural-gas supply chain By Dave Gardner

A varied line-up of area businesses, while ﬂying under the public’s radar, are tapping the wells of proﬁtability in the Marcellus Shale. Microbac Laboratories, which can trace its origins to the late 1960s in the Pittsburgh area, is an American-owned testing service that is obtaining business with the Marcellus gas industry. The company’s duties include

water testing for homeowners, business, and governmental regulatory agencies. In 2008, the company began to work in the Marcellus region after making connections with several engineers and consultants This opening later evolved into speciﬁc water testing as DEP and EPA demands grew for monitoring contaminants and carcinogens. In time, the company was doing business with gas producers

Cabot Oil & Gas and Chesapeake Energy. Cherie Gudz, Microbac’s senior vice president, notes that the extensive water testing in the Marcellus region is building long-term data trends about water conditions. New well pre-drilling sweeps of groundwater are now common to detect pre-existing contamination. Please see Gas vendors page 17

East Mountain Makeover The

renovation and re-branding of the East Mountain Inn ............................. ......................................................59

Appeals Court Rules on Act 13

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Rights of local municipalities are afﬁrmed..........................................45

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For Advertising Information Contact:

Judy Gregg 570-207-9001 ext. 5425 jgregg@timesshamrock.com

38 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B38] | 01/06/16

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JANUARY 2016

BANKING

NBT BANK upgrading ATMs, services, products to technological demands As consumer behavior continues to evolve, technology is constantly changing to keep pace. One way that NBT is using technology to enhance its services for consumers is by upgrading more of its ATM network to accept check and cash deposits quickly and easily without a deposit slip. Currently, 12 of NBT Bank’s 36 ATMs in Northeast Pennsylvania offer this service and more are set to be upgraded in 2016. In addition, this year NBT began offering customers the ability to connect their NBT Bank Debit Card to Apple Pay to make in-store or in-app purchases using their Apple device. NBT is also converting its debit cards to EMV chip cards for enhanced security. NBT Bank has launched several other new forms of payment services to meet the growing expectations of its customers, such as accountto-account transfers between an NBT account and accounts held with other financial institutions. The bank has plans to continue introducing additional card and payment options during the coming year to further personalize the customer experience, increase security and increase payment options and convenience. David Raven leads NBT Bank’s efforts in Northeastern Pennsylvania. He and regional commercial banking manager Tom Ciak; territory manager Ron Bryer and the entire team of professional bankers are deeply connected and committed to the local communities they serve. NBT and its employees support many local organizations in Northeast Pennsylvania with monetary donations, in-kind donations and volunteer hours. “Our commitment to local communities can be found in all aspects of our communities’ daily functions such as child services, economic development, health and human services, education and arts and culture,” says Elizabeth Nagy. marketing and communications manager. “The bank’s endeavor to give back to our communities is not only a reflection on NBT’s corporate values, but also of the interests and supportive nature of our employees.” Earlier this year, NBT Bank donated its former Susquehanna office, located at 1302 Main Street, to Trehab, a Montrose-based community action agency. The agency serves residents of Susquehanna, Wyoming, Bradford, Wayne, Sullivan, and Tioga Counties as both a service provider and an

advocate for the poor, unemployed and underemployed, the elderly and other at-risk groups. NBT Bank has conducted more than 400 Strive presentations this year in school districts and community groups across our footprint, raising the total number of presentations to close to 800 since the program began in 2012. Strive is an education program that helps kids, teens and young adults establish a positive relationship with money early in life and navigate personal finance as their financial needs mature. Locally, NBT has supported the growth of financial education for students including those in the Valley View School District, Dunmore High School, the North Pocono School District, Stroudsburg Area High School, Future Business Leaders of America, as well as Leadership Lackawanna’s Tomorrow’s Leaders Today program. NBT Bank has taken a leadership role in helping local economies grow by becoming one of the U.S. Small Business Administration’s preferred lenders across its entire six-state footprint. This enables NBT to process, close and service most SBA guaranteed loans without prior SBA review, resulting in faster service to local small business owners in need of capital. And this past year, NBT received a similar designation as a Preferred Lender from the USDA Farm Service Agency’s Farm Loan Program, granting the same authority with loans for the many farms and other agricultural businesses NBT serves in our more rural communities. In October, the bank acquired Third Party Administrators Inc. (TPA, Inc.), a Bedford, New Hampshire–based retirement-plan services company that provides administrative services for 401(k), profit sharing, and defined-benefit plans for more than 700 businesses. The acquisition complements NBT’s retirement-plan services currently offered by our Wealth Management Division and the 401(k) recordkeeping services offered by our sister company, EPIC Advisors, Inc. EPIC Advisors, a Rochester–based 401(k) recordkeeping firm, is a subsidiary of NBT Bancorp, the parent company of NBT Bank. In 2016, NBT will continue to work with local business leaders and owners providing financing and business banking options that will help local economies grow and prosper. Working together, the community can rely on NBT’s knowledge, service and value to deliver a business banking relationship that exceeds expectations.

ECONOMIC DEVELOPMENT

HERITAGE TOURISM

Public Banking and the Economy

LHVA Past and Future

that example may not be applied everywhere, it is looked upon as one way to utilize a public bank. He Banks have been the mainstay of economic pointed out that a public bank could partner with development across this region for decades. They community banks and safeguard against the risky and have been givers, providers of loans, and of bank speculative practice of some Wall Street banks. Smertz officials as members of industrial development notes that Michigan, Massachusetts and Arizona are boards. Banks contribute to the overall framework looking into the role of public banks in their states. by which the region has made the greatest ecoHe further notes that public banks are more nomic comeback in the history of the United States. commonplace in other nations such as Brazil, India Banks continue to be in the forefront of regional and China. The comeback of Germany is credited, leadership while fostering new and exciting activiin part, to a public banking system. ties that are designed to ensure how and in what The North Dakota experience is based manner the region can accommodate upon a combination of energy production growth and development in coming and public banking, with a key factor being years. availability of credit, and the partnering of The banking industry, as in public the bank with scores of community bank banking, could be put to further use institutions across that State. as an answer to the fiscal distress of Smertz suggests that there be an analysis municipalities and counties across the at the legislative level of public banking and region. that it be bi partisan in nature and examine According to Public Banking Institute Grossman all areas of the State for the advantages and (publicbankinginstitute.org) public any potential disadvantages where public banking can banking is operated in the public interest, through be applied in situations that are identified as a fiscal institutions owned by the people through their representative governments. Public banks can exist crisis situation. He further notes a role for the Independent at all levels, from local to state to national or even international. Any governmental body which can meet Community Bankers Association and the American local banking requirements may, theoretically, create Bankers Association. He believes that unmet infrastructure needs can be better viewed through the such a financial institution. Public banking is distinguished from private banking telescope of a public banking role, combined with the traditional role of private banks. He believes that in that its mandate begins with the public’s interest. Privately-owned banks, by contrast, have shareholders states such as Vermont, Hawaii, Illinois, Louisiana, Maine, Maryland, Oregon, Virginia, Washington, who generally seek short-term profits as their highest and others have recommended that a study be priority. Public banks are able to reduce taxes within their jurisdictions, because their profits are returned to done that examines a role for public banks. Organizations that can partner with a public the general fund of the public entity. The costs of public bank are chambers of commerce, industrial and projects undertaken by governmental bodies are also economic development agencies, all of the various greatly reduced, because public banks do not need to banking organizations, downtown organizacharge interest to themselves. tions, and many other- urban and rural entities. Mike Krauss of the Pennsylvania Project and The Center for Rural Pennsylvania may be a ready Public Banking Institute has given talks to audimade entity to study this system and what can be ences in this region on the battle for public banks, and is active in such communities as Philadelphia, done to help financially distressed communities and counties as well as school districts. Whether Pittsburgh, Reading, and other places where it is or not public banking is a tool for use in this state, thought that a public bank may be helpful. it should be a part of the study process that takes a Additionally, a regional resident, Michael Smertz, attending Northeastern University, and under the guid- look at new initiatives for the benefit of community ance of former Massachusetts Governor and presiden- life for this and future generations. tial candidate Michael Dukakis had the opportunity to prepare a special report on the topic of public banking. Howard Grossman is the former executive director of EDCNP, now NEPA Alliance, He operates HUG AssociSmertz pointed out that public banking has existed ates in Dallas. Email him at GrossmanHJ@aol.com for more than 100 years in North Dakota, and while By Howard J. Grossman. AICP

Jermyn, and the first distance learning enterprise at InThe Lackawanna Heritage Valley will be 25 years old ternational Correspondence School. The Lackawanna in 2016. Named the first Pennsylvania State Heritage River Heritage Trail is a physical manifestation of Land, Area in 1991 and a National Heritage Area in 2001, the People and Industry, traversing the natural environLackawanna Heritage Valley is now in its second genment through urban and rural areas to connect 30 eration, both by age and by maturity. As we prepare to communities along the Lackawanna River where great commemorate our achievements, it is a time to reflect industries once thrived. The cultures of tens of thousands of immigrants on who we are and what we represent. who settled here nourish us in many ways, from the The Lackawanna Heritage Valley strives to stay delicious food offered at ethnic festivals, to the annual relevant and creative. In 2015, we introduced and heritage events such as the Race of the Saints in Jesexpanded several new projects, such as the free Bike sup (St. Ubaldo), and the St. Patrick’s Day Share program, the Nay Aug Avenue Parade in Scranton, to the creative talents Natural Play Area and Family Fun Days on of area natives who have distinguished the trail. Each of these programs relates in themselves in the worlds of art, music, some way to the themes of Land, People sports, business and politics. Both in the and Industry. Historically, the land offered past and in the present, accomplished vast reserves of anthracite coal that providpeople with roots in our local communities ed the natural resource for early entrepreemerge in virtually every field of endeavor. neurs to create industries that would attract In its work to tell our story, the people from many parts of Europe to Gelb Lackawanna Heritage Valley developed a come here for jobs in the mines, railroads unique partnership with WVIA, our local PBS channel, and factories. The region became a patchwork quilt producing films such as “The Extraordinary Journey” of towns established by immigrants who carried their documentary series, including “The Journey of the treasured customs and traditions to their new land. Eastern Europeans,” which includes “Paesani” and Typically, they settled in places that reminded them “The Irish: Two Countries, One Heart,” as well as of their native countries, and they built their houses “Stories from the Mines,” “Ubaldo,” and “Legacy: The in the styles and with the methods they had learned in the places where they were born. They came with Story of the Lackawanna Heritage Valley.” little or nothing, and most of them never accumulated Above all, the greatest characteristic of our region is a substantial wealth from their hard work in America, strong sense of community. People from diverse backbut they dedicated themselves and their skills to create grounds preserved their own strong identities, but they beautiful houses of worship, built with pride and loving also cared for and about their neighbors, regardless of hands. Their remarkable workmanship amazes us still, their differences. As we move forward in the New Year, and the Lackawanna Heritage Valley works to preserve with political storms raging and inflammatory rhetoric and converse this irreplaceable legacy. all around, the story of the Lackawanna Heritage Valley The Lackawanna River Heritage Trail has become the stands as a reminder that ours is an immigrant story. trademark project of the Lackawanna Heritage Valley. Our communities were built by people from faraway It is a reuse, repurposing and reclaiming of the abanplaces who were strangers to each other. doned rail lines that ran through the region. Not only At the Lackawanna Heritage Valley, we celebrate the were the rails themselves produced at the Scranton past, but we live in the present. In 2016, we are fortuIron Furnaces, but also those same rail lines carried nate to have more diversity in the Lackawanna Heritage cars filled with anthracite coal to the major cities of the Valley, with people coming not only from Europe, but east and north to Buffalo where barges transported it also from continents near and far, including South across the Great Lakes to fuel the Midwest. Anthracite America, Asia and India. If we allow history to repeat coal truly powered the nation. itself, we will embrace our new neighbors, learning The marriage of the coal and railroad industries, from their customs, ideas and talents to enrich our along with the textile factories, made Scranton a great lives and to strengthen our future heritage. commercial and industrial center, where the populaStay tuned for more plans for the Lackawanna tion exploded and many significant “firsts” occurred. Heritage Valley in 2016! The region introduced the first operational Electric Natalie Gelb is executive director of the Lackawanna Trolley system in Scranton, the invention of First Aid in Heritage Valley Authority. Email her at natalie@lhva.org By Natalie Gelb

NORTHEAST PENNSYLVANIA BUSINESS JOURNAL JANUARY 2016 39 TS_CNG/NPBJ/PAGES [B39] | 01/06/16

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MANAGEMENT & LEADERSHIP

Vision: Linking the Personal and Professional

Over the next several months, I will attempt to By Biagio Sciacca give you a modified approach to personal strategic This is the first of four concepts surrounding planning. The benefits of this process are manifold, personal strategic planning. but if I may capture a few of them: I lost a great deal of billable compensation over the It will make the individual a better strategic planyears by refusing certain jobs that I thought were not ner at work. correctly defined by the prospect and were, in my The results can assist you in adding humble opinion, destined to fail. To give direction to your personal life. you an example, one prospective client that The process can act as kind of a I went to see wanted assistance creating purging agent. Perhaps cleansing the a vision for the organization. When I gathparticipant of fatal errors in thought ered the executives together, presumably and, consequently behavior. the people who would be developing the Over the next three months, I will vision with my nurturing and succor; they develop each of the following concepts were a much stressed-out bunch. We Sciacca revolving around personal strategic started by conducting a Corporate Cultural planning in detail: Analysis to see if I could spot some holes in the way 1. Strategy the organization thought and behaved. To my surprise 2. Tactics it was the top level of the organization that caused the 3. Behavior majority of the issues in the company. I suggested to Please keep in mind that this a free form exercise. the CEO that before we create a vision for the company There is no correct or incorrect way of plotting out that I work with the executives in putting together a your life. (Actually, there probably is an incorrect personal vision statement. They refused saying that it was unnecessary and that all they wanted was a busi- way of doing personal strategic planning – the way ness vision statement. I refused to engage the process I have been doing it for 20 years. Just kidding!) My goal behind sharing this information is motibecause I was worried about the process failing. I walked away from a nice-sized billable project because vation, not form! Go through the process however you see fit, but, please, just try the process. If you I sensed a level of disengagement. find yourself getting frustrated, angry, or generally That situation taught me something: How can you perform in an adequate business manner, if you refuse disconnected it may mean that you are trying too hard. The process of plotting out your life should to engage the same process on a personal basis? be exciting, fun and motivational. So, make it fun. After that incident I incorporated a personal visioning workshop with all my vision creation clients and, since Do it with your spouse or your life mate. Teach your children how the process works after you’ve it was part of the package, no one complained. noodled around with it. And, if you are a manager, I think we should do the same with strategic see if your employees are interested in trying out planning. Many of us are very skilled at strategic the process. planning (SP) when we lock ourselves away in a If this process gets you moving, then it has suchotel conference room for three days to develop ceeded. If this process got you thinking differently, the roadmap for our company for the next several then it has succeeded! years, but how many of us do that in our personal So, why not start now? Why not jot down the lives? Not many, I bet. four parts of personal strategic planning. Then But, if you really think about it, if SP works so think about what each part means and how they well with businesses, why would it not work just can create a cohesiveness. as well in our personal life? I am not suggesting And, good luck in your journey! that you go through the process and then tell your See you next month. spouse that, “According to the Marginal Efficiency Biagio “Bill” Sciacca is CEO of Intelligent Motivation Inc., a of Capital Schedule that we developed in our last training and consulting firm, and is the author of “GoalsBook: personal SP session, we cannot buy a new stove Embracing Personal Responsibility in an Age of Entitlement.” He for at least five months!” But what is wrong with planning career moves? Vacations? Places to live? is also a full-time instructor of economics and business administration at Penn Stae University. He can be reached at 570-430Degrees to achieve? 9303 or, email him at bill@intelligentmotivationinc.com.

40 NORTHEAST PENNSYLVANIA BUSINESS JOURNAL TS_CNG/NPBJ/PAGES [B40] | 01/06/16

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JANUARY 2016

It’s Risky not to Perform Risk Management

case and preliminary requirements. By Larry Puleo At this point there should be no commitments made The objectives of project risk management are to increase the probability of positive events and decrease as to when the project can be completed. If senior the probability and impact of events that could have an leaders are throwing out a completion date this must be identified as a risk. adverse effect to the project. The team is now ready to develop detailed requireThe risk management process begins with developments to match the deliverables of the business case, ment of a risk management plan. The plan should preliminary requirements and scope. Concurrent with address: requirements definition is development of • What is the probability and impact of an initial detailed project plan that outlines each identified risk should it occur? the tasks that need to be completed to • What budget dollars need to be estabsuccessfully deliver the project’s requirelished for risk management? • How frequently will we discuss, and ments. Requirements definition and project report updates for managing project risks? planning will identify additional risks. As the • How will risks be tracked, monitored plan is created, tasks, roles, responsibiliand closed? ties and skill sets that will be needed for Puleo Basically the risk management plan the project will be identified. Risk analysis discusses the overall strategy and goals on how risks of the plan and requirements will provide information will be addressed in the project. The plan should be associated with the magnitude of effort and the time reviewed during each status meeting to see if it is still commitment of resources needed to support the projvalid and if new risks have surfaced. ect. This information will impact the project schedule and and answer when the project will be done. Once in place, a risk response plan is prepared. It Poor requirements definition leads to changes during includes assignment of an owner to prepare mitigation plans for each risk. It addresses the risks by priority, with the project life cycle that impact costs and schedule. contingency plans developed for risks that have a high Requirements introduced at later stages may require probability of occurring. It inserts resources and activities re-design, new development and additional testing all into the project plan budget and schedule as needed. of which will impact cost and schedule. Detailed planning will identify resource risks related to availability During the initial wave of planning, the vision of the of resources to do the work and time commitment organization is reviewed to establish the value of the required of resources to complete assignments in project to the organization. This is established in the business case which could relate return on investment, a timely manner. If the risks associated with poor requirements definition and poor planning are not project justification, competitive advantage, increased addressed it will be difficult to develop a dependency revenue or other rationale for doing the project. Every network to illustrate the flow of the work and the project should have this business case. It is a huge elapsed time necessary to complete the work. These risk, if a project does not have a business case. If a business case cannot be established the project should deficiencies if not addressed will impact the budget and be canceled immediately. cause cost overruns. Once the business case is established, the wants and Detailed planning will also include development of a needs of the stakeholders must be documented. This transition plan that transfers the activities performed by leads to a preliminary list of requirements. First, the the project team to the operation. The project manager project manager should identify all the stakeholders. is not only concerned with the development and With the business case and preliminary requirements implementation of a result but also must look at the gathered, the project manager should facilitate a meet- implications of operation and maintenance of whatever ing to challenge this information for any potential risks. was developed. With this concern comes another area For example is the business case achievable? Has a for risk identification and analysis. The whole issue of target completion date been communicated without how something will be operated and maintained is a detailed planning or knowledge of resource availability? new area for the ‘strategic’ project manager and a new Are the requirements too broad? Do requirements fail arena for risk. Larry Puleo a certified project manager (PMP) is president to align with strategy? of MLP Consultants LLC which helps companies execute their The project scope should be developed and then strategies. Contact him at lpuleo@mlpconsultants.com or visit challenged for potential risks that can be determined mlpconsultants.com by matching the in scope deliverables to the business

Each month, we recognize one of the region’s top manufacturers with the aid of NEPIRC, the Northeastern Pennsylvania Industrial Resource Center. Since 1988, NEPIRC has been working with manufacturers to improve their productivity, profitability, competitiveness and long-term viability through consultative services.

Clarks Summit manufacturer growing its die casting business

Having worked in New York as an equities trader for 15 years, John Kane was already very familiar with risk when he quit his Wall Street job to return home to Lackawanna County and purchase a small manufacturing company in Clarks Summit.

It’s only been about nine months since Kane and his wife, Leah, who at one time had a career in New York developing strategies for Fortune 500 companies, purchased Elecast, an aluminum and zinc casting company. Sitting at a conference table in their office, Kane described his new career in manufacturing as challenging but exciting. He has learned much about the die casting industry in the short period of time he and his wife have owned the company. “I have tried my hand at pretty much all of the jobs here but I think I make some of the employees laugh and they probably think I should stick to the front office,” he said.

company has customers throughout the northeast, but also has some clients as far away as Texas. Kane said he believes some of Elecast’s future growth will be through the reshoring of manufacturing back to the United States from abroad. “Years ago, many companies moved their manufacturing to China because it was less expensive. Today, companies are looking to return manufacturing to the United States because it’s easier and more convenient to work with domestic companies. They also have a lot of concerns about lead times, intellectual property and the supply chain,” he said.

Even though Kane had no experience with the die casting industry, he has a strong business background. He graduated from West Point Military Academy and served in logistics in the Army for five years. He then earned an MBA from the College of William and Mary before taking the job in New York.

John Kane shows some of the aluminum parts Elecast manufactures for its clients.

His wife graduated from Lafayette College with a degree in economics and business and is using her experience at the New York advertising agencies to market Elecast’s services.

John Kane holds a bar of aluminum that will be melted to Elecast was founded in 1988 make the die-cast parts. and had two owners before the Kane’s purchased it. The last owner had owned and operated the company for more than 15 years and wanted to retire, Kane said. “We did our due diligence for more than a year before we made an offer for the company. Elecast had some clients that have been around for many years so we felt comfortable that we could take over and then work to expand our client base slowly.

While the couple has experience that helps them on the financial and marketing sides, they sought out manufacturing assistance and have been working with the Northeastern Pennsylvania Industrial Resource Center. The Kanes have participated in NEPIRC’s Consortium for Process Excellence and Innovation events, a membership group that meets up to six times a year for events including focused company tours, special workshops and topic and focus group discussions. “NEPIRC has been an amazing resource for us. They provide a lot of services for small manufacturers and I’m sure we will be working with them a lot more in the future,” Kane said.

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Just nine months after purchasing Elecast, the couple are already starting to see growth in their business and expect to grow by at least 20 percent in 2016. “We wanted to first make sure that our client base was satisfied and that they knew that the transfer to new ownership would be seamless. The employees are the same and the customers were very happy with Elecast’s products and timely delivery,” Kane said. Elecast die casts parts for customers in various industries including furniture and medical component manufacturers. “We can make parts for any business that needs them,” he said. The

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Learning how to Learn The state CPA societies in Ohio, Indiana and Maryland and the American Institute of CPAs continued to champion new methods of learning, with the first “nano-learning” being approved in Ohio in March, and the AICPA and the National Association of State Boards of Accountancy proposing revised CPE standards in June to add more “blended” and nano-learning. Competency-based learning – where you have to prove that you actually learned something – is the next big frontier.

tax-reLated id theft Some tax preparers reported that as many as 1 in 4 of their clients were the victim of tax-related ID theft last tax season, and in June the IRS reported that its Get Transcript function had been hacked, putting the data of over 200,000 taxpayers at risk. The IRS, tax software companies, payroll processes and other stakeholders came together on a number of initiatives they hope will make things more secure in 2016.

Pursuing vaLue, in the cLoud and eLsewhere Accountants and firms of all sizes ranged ever-

more broadly in pursuit of new value to offer clients, beyond the profession’s traditional tax, audit and accounting services. While much of this involved the cloud – with plenty of accountants leveraging anywhere, anytime access to real-time data as a way to collaborate intensively with clients – plenty of it was simply about paying close attention to clients’ needs to identify non-commoditized needs.

FROM PAGE 12

Kern mentioned one success story about a company representative from Troy, MI, who happened to be in the right place at the right time to secure a $60,000 contract. Purchase agents had an open requirement for wire and cable during the representative’s first visit to the depot. The MATOC was created to help personnel carry out a large number of modernization projects approved and funded during the fiscal year. It was ifrs resurgent established as a small business set aside — a In a variety of forums, SEC Chair Mary Jo set-aside restricts, or reserves, contracts exclusively White and Chief Accountant James Schnurr for small business participation. The demographics refused to let International Financial Reporting for the MATOC vendors meet the criteria for the five Standards fade away. No major moves yet, but the socioeconomic groups, Kern explained. Furthermore, standards remain on the table, and the SEC continfour contractors on the list are local businesses. ues to stress the worldwide desire for a “single set “We awarded one big umbrella contract that let of high-quality accounting standards.” Europe and us solicit vendors, then generate a pool of qualified the IASB wholeheartedly agree. contractors,” Kern said. “Now instead of processing each project one at a time, members of the pool the staff crunch compete for upcoming construction requirements.” As with last year, the lack of staff remains one Like any small city, contract specialists also manof the top stories in accounting. Despite public age service contracts for jobs such as landscaping, firms having hired the largest number of college soil and water sampling, and janitorial services. graduates ever, they’re still struggling to fill spots. Federal acquisition regulations dictate purchase More important, the CPA profession as a whole is agents search for vendors using sources within the having trouble drawing in new exam candidates, government before going to the open market. which bodes in for both its near-term hiring pros“If we find what we’re looking for at a mandatory pects and its long-term viability.

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JANUARY 2016

PLEASE CONTACT Abbie Muto muto_a@sdepa.com Cheryl Green green_c@sdepa.com (610) 366-8120 • www.sdepa.com

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location we’re required to source requests through that organization,” Kern said, naming GSA (General Services Administration), UNICOR (Federal Prison Industries), SourceAmerica and Industries for the Blind as examples. It’s important for businesses to understand how they can support Tobyhanna’s mission, according to Kern, adding that the depot looks for vendors to provide products and services to support the mission — anything from construction and test equipment to hard-to-find parts for production. Earlier this year Tobyhanna hosted or participated in events to help educate small business owners on the needs of the installation. Industry Day was an opportunity for industry partners to tour the facility and attend briefings. In addition, small business gained new insight on partnering with federal and state governments during a contracting symposium held on one of the local college campuses. Both events drew hundreds of attendees and businesses nationwide. Each occasion was described as “eye opening” by many people who attended. The president of one company was impressed by the body of knowledge presented during Industry Day. At the end of the two days he said he felt more energized about pursuing requirements within their scope of expertise. “Tobyhanna does a very good job of rotating vendors and giving everyone a chance to work with us,” Kern said. “The success of the small business program can be attributed to the hard work of the entire contracting team.” Tobyhanna Army Depot is a recognized leader in providing world-class logistics support for C4ISR systems across the Department of Defense. Tobyhanna’s Corporate Philosophy, dedicated work force and electronics expertise ensure the depot is the Joint C4ISR provider of choice for all branches of the Armed Forces and industry partners. Tobyhanna’s unparalleled capabilities include fullspectrum logistics support for sustainment, overhaul and repair, fabrication and manufacturing, engineering design and development, systems integration, post production software support, technology insertion, modification, foreign military sales and global field support to our Joint Warfighters. About 3,100 personnel are employed at Tobyhanna, which is located in the Pocono Mountains of northeastern Pennsylvania. Tobyhanna Army Depot is part of the U.S. Army Communications-Electronics Command. Headquartered at Aberdeen Proving Ground, Maryland, the command’s mission is to research, develop, acquire, field and sustain communications, command, control computer, intelligence, electronic warfare and sensors capabilities for the Armed Forces.

FROM PAGE 1

cur as gas prices decouple from the costs for oil. “Infrastructure expansion such as pipelines and eventual exports of natural gas are the real keys to production and pricing for that industry,” says Rankin. “These factors are bound to benefit the region.”

Modest growth

Jim Cummings, vice president of marketing with Mericle Commercial Real Estate Services, forecasts gradual improvement without spikes for the NEPA economy during 2016. He believes the region will continue to attract e-commerce and bulk industrial businesses, with cyber retail gaining strength against its brick-and-mortar competitors. “Opportunities are expanding for e-commerce fulfillment centers, and the new buzz words are consumption zones where warehousing centers can be set up close to cyber customers,” explains Cummings. “Speedy just-in-time deliveries are now in demand.” He notes that labor availability is cited as another factor behind decisions about where to house e-commerce fulfillment centers, with demand for both semi-skilled and unskilled labor resulting as warehousing technology evolves. Within NEPA, both Amazon and American Eagle have set up regional fulfillment centers. “During the recession NEPA had no labor problems, but now this is reversing and labor shortages may be ahead,” says Cummings. “Labor could be scarce before the associated buildings here are filled.” Cummings also expects regional health care to continue its expansion. The commercial sector, as a whole, is now the region’s number one employer in NEPA, and providers are occupying office spaces and administrative offices within locations once considered unsatisfactory. “Nine recent tenants at Center Point (Pittston Township) are now related to health care,” says Cummings. He adds that during the second half of 2015 a regional manufacturing “bump” appeared to be taking place, and Cummings believes this growth in industrial activity will continue during 2016. Laborrelated situations within China and Africa will create unknowns, but Mericle is more encouraged than discouraged at the prospects for NEPA industry. “Pricing and availability for natural gas is stable in NEPA, and that’s a draw for industry,” says Cummings.

Labor MoveMent

On the employment front, a mixed forecast for job prosperity is being issued by Larry Puleo, president of MLP Consultants. He has observed that some workers appear to be finally leaving existing jobs, thereby creating new opportunities

for job seekers. “Budgets for new projects, especially those with tech investment to improve productivity, are also finally opening up,” says Puleo. “Training and investment are increasing as cash flow improves. All of these had been ebbing.” Consolidation and mergers will also continue

percent placement rate, such as within the diesel and drafting fields,” says Tomaszewski. “Welding is also very hot.” Equipment continues to be vital within any techbased educational curriculum, but the real story for 2016 involves how employers are demanding that tech graduates function as well-rounded trouble-

ral gas business, and its profitability, will continue to be proven wrong during 2016 predicts George Stark, director of external affairs with Cabot Oil & Gas Corporation. He expects methane gas extracted from the Marcellus Shale to continue its “lag” to market because of an absence of transmission pipelines, but believes permitting and construction for this infrastructure will ramp up during 2017 and create the needed transport system. “Until pipelines catch up to production capacity, we’re going to see usage of this energy resource hampered,” says Stark. “Don’t forget, it takes huge investment for intra-state pipelines to be built.” Global instability with crude oil prices will remain a factor to be considered during 2016, although Stark emphasizes that this volatility cannot be firmly forecasted. The Middle East producers seem to be committed to keeping the oil spigot on, and no evidence exists this will cease. He adds that the Marcellus Shale’s supply of invaluable wet gas, including propane, butane, and ethane, faces an uphill battle with distribution that mirrors the situation with dry gas.

“We need close-by refining facilities, or pipego to frbatlanta.org to survey the wage growth tracker, an interactive chart of monthly curlines to the gulf coast, for the Marcellus wet gas rent data, compiled by the Federal reserve bank of atlanta, center for human capital studies, extraction to really boom,” says Stark. to compute wage growth. the statistics arise from the monthly current Population survey (cPs), administered by the U.s. census bureau for the bureau of Labor statistics. On a more generalized level, Stark also points to comments from Fed chairperson Janet Yellin that the 2016 economy will be assisted by consumer shooters who can produce quickly after being during 2016 as the surviving business units clean confidence which is more upbeat than its 2015 hired, and can be promoted. These new hires must counterpart. house, tighten payrolls, trim redundant personbe problem-solvers that are approachable by the nel and replace people with technology. These customer being served. changes, according to Puleo, are fueling demand “Total real private domestic final purchases, Johnson is reacting to these employer for project people, even though an excess of apwhich includes household spending, business demands by inserting soft skills training within all plicants still exists for each new job opening. fixed investment, and residential investment, and of the school’s educational programs. Customer “I’ve been noticing a lot of hiring from outside currently represents about 85 percent of aggregate of organizations, and this can be a sign the existing interaction has become a part of student grading, spending, has increased at an annual rate of employee base is not being promoted,” says Puleo. and speech is taught to every student for soft skill three percent this year, significantly faster than real enhancement. “Overall, the supply-and demand curve still favors GDP,” comments Yellin. In a related development, Johnson is kicking the employers.” Rick Marquardt, founding dean with the School off a new course entitled advanced manufacturing of Petroleum and Natural Gas at Lackawanna Colengineering technology. This curriculum includes lege, agrees that transmission capacity must catch booMing tech jobs machining, automation, robotics, and technologiup with production for the economic power from Any realistic forecast for formal education cal integration, and marks the future for careers in the Marcellus Shale to be maximized. He also notes during 2016 should take into account booming modern manufacturing that seeks to compete with that coal to gas conversion for electrical production demand for tech school graduates as trade employAsian competitors. is ongoing, as soft coal use drops and natural gas ment continues to boom. Janine Tomaszewski, “The ongoing female presence in male-domiuse accelerates. director of college relations with Johnson College, nated fields is also increasing,” says Tomaszewski. “The aggressive prices for crude oil are now notes that her school is achieving a student delaying the inevitable switchover of gasoline to placement rate of 90 percent within three years for natural gas for transportation use,’ says Marquardt. graduates in their field, and a 70 percent placement PiPeLine exPansion “Eventually, most diesel and gasoline vehicles will rate for all graduates. Doomsday forecasts about the fate of the natu- use natural gas as fuel.” “Some of our graduates are achieving a 100

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