Kelly Suspended for Fee Attempt

By JOE ZELNIK Donald M. Kelly, executive director of the county's Economic Development Commission, has been suspended for .three months without pay for trying to get local investors in the new Container Decorating Co. to pay a consulting fee to a friend who advised him on the firm’s financial makeup.

The fee would have been nine percent of their stock, valued at $22,500. The investors, who have 52 percent control of the company with their Cape Equity Tartnership, never went through with Kelly's proposal. His suspension came in a 3-1 vote by the Board of Freeholders at 6:30 p.m. Friday after a four-hour hearing with the prin cipals. The motion to suspend Kelly came

from Gerald M. Thornton, who heads economic development, and was seconded by Ralph W Evans. Also voting in favor was James Kilpatrick William E Sturm Jr. was not present. THE • , NO” VOTE came from Freeholder Director Anthony T Catanoso who wanted Kelly fired "I don't feel the fellow belongs in the job,'' he said "My feeling is he shm/ld be dismissed because 1

Triend’ Was No Friend to Kelly

It was the word “friend" that helped get Don Kelly in trouble. First, Lois Goodpaster. 30, financial services officer of the New Holland, Pa., Farmers’ National Bank, has been a friend of Kelly, 52, for over a year Second, the original six investors Kelly recruited for Cape Equity Partnership — An Analysis were all his friends, he said. But one of them. Charles Guhr, eventually objected to a fee for Mrs. Goodpaster. Finally, and possibly most damaging, Mrs. Goodpaster picked the name "M.B. Friend Co." as the business name under

^ M B. FRIEND apparently does not legally exist It is not registered/as a com pany or corporation in Pennsylvania, ac cording to that state's Corporation Bureau, and has not filed in the Lancaster County Pa , prothonotary’s office under a fictitious name "We kinda felt "M B Friend" was "My Best Friend." said Freeholder Ralph W Evans. "Who's my best friend 9 Me 9 " "She picked the name." said Kelly, relfernng to Friend "It's very common in Lancaster County " A check of the phone directory for New Holland found no “Friends" and a check of < Page 37 Please >

think he's up to his neck. " The suspension will cost Kelly about $7,797 His job pays $31,190 a year He declined comment on the Freeholders' action. Thornton, who will act as director in Kelly's absence'Mid he expects him to return to work Sepfc 1 Kelly, instrumental in aranging for Container Decorating to locate at the Airport Industrial Park, had suggested to Cape Equity last December that it pay consultant I>ois Goodpaster of New Holland. Pa . nine percent of its stock Its members were to put a total of $250,000 into the business LOUIS < . DWYER. Cape Equity's at torney member, whom Kelly called "my attorney,' had put that proposal into the partnership's original draft agreement It called for "compensation and payment in lieu of a finder's fee." according to Kelly, and appeared to be acceptable until March when the partners reneged Charles Guhr of Wildwood, Crest ob (Page 37 Please* News—^ Digest' hTs,:

Holiday Marred SWAINTON The Memorial Day weekend was marred by two fatal traffic accidents and a number of serious in juries, the state police reported Monday Eddie Nelson. 33, of North Cape May was killed Saturday, his wife and two sons hospitalized when hi* car careened off Seashore Road in l/<*wer Township and struck a utility pole James G McCann. 24, of Passaic County was killer! Saturday night when his car veered off the Garden Slate Parkway near the Rio Grande exit and crashed into a tree Coast Guard sman Thomas S Southand of Georgia was hospitalized Saturday afternoon when his car struck the rear of another vehicle on Route J09, l^ower Township.

‘Fair Settlement’ Projected County Contract Cost: $1.04M

Cape May County's new two-year con tract with 639 employes will cost $1.94 million It covers those represented by Local 1983, International Brotherhood of Painters and Allied Trades. AFL-CIO, and runs through Dec. 31, 1984 Union members approved the contract by a 268-40 vote last week. Freeholders okayed it unanimously. "We feel it’s a fair settlement," said Freeholder William E. Sturm Jr, director of Revenue and Finance "It’s in the ballpark of what we projected. " THE CONTRACT provides these wage hikes: In 1983 a 5 percent increase, retroactive to Jan. 1 and an increment equal to 3.3 per cent on.Oct. 1. The latter amounts to an 0.82 percent increase since it is paid during the last quarter In 1984, a 5 percent increase on Jan 1

and an increment equal to 2.8 percent on July 1. The latter amounts to a 1.4 percent increase since it is paid only during the last half of the year. Employes receive two boosts in benefits Uniform allowances for nursing and institutional employes were hiked from $100 to $110 this year and to $120 next year That affects 135 people. Sturm said Employes also won a health benefit modification, lowering their major medical deductible from $2,000 to $100 STURM SAID this will cost an additional $2.52 por employe, but it will be offset by reductions in prescription plan premiums which do not affect the coverage Cumberland County attorney Lawrence Pepper Jr. who represented the county in negotiations, said that his credibility in citing "adverse financial and budgetary conditions confronting the county" during

contract negotitions had been "adversely affected by the 7 percent increase given to non-union employes during negotiations " He called the employes' acceptance of a 5.82 percent gain in 1983 "a substantial compromise by the union." HE ALSO POINTED OUT that, although modifications in fringe benefits were not costly to the county, "the increased cost of maintaining already negotiated health care benefits is an ongoing serious problem " The county had reported in February that costs of employe insurance would climb this year from $536,000 to $1 4 million. The cost of the monthly benefit package would go from $96 32 to $116 53 a person, Sturm said. Fringe benefits include Blue Cross-Blue Shield, major medical, dental, vision care, • Page 16 Please*

f Long Haul Cornin' STONE HARBOR - Private and emergency vehicle drivers will have to use Ocean Drive through Avalon and Middle Township for their trips to and from the borough this offseason and next while the Great Channel Bridge is being overhauled The 50 year-old span, which links Stone Harbor to the Mainland at Court House, is in shoddy shape; pilings are rotting and only half of the drawbridge can be opened The bridge is scheduled for repairs and will be closed from Oct. 15 to April 15 in both 1983 and 1984 The state Historic Preservation Office considers the span historic because it 'Page 37 Please* Set Primary Election Tues. Most of Cape May County’s 48,000 eligi ble voters are rock-ribbed Republicans, but both major parties will select their candidates for municipal, county and state offices during the June 7 primary Polls will be open from 7 a m. to 8 p.m. Incumbent GOP Freeholders Ralph W Evans of Stone Harbor and William E Sturm Jr of Rio (Grande are running unop^ posed for reelection in the Republican primary They'll face independent Republican William Wilscy in the fall general election Wilsey 's bid for a county seat might open the door for the Democrats in November Democratic Party Chairman James R lannone, a Sea Isle City businessman.’ and Georgette Bond-Shirley, former Upper Township treasurer, stand unopposed for the two freeholder seats in their party primary lannone ran against Republican Freeholder James Kilpatrick last. November Only the Democrats have a primary contest for the state Senate seat currently held by unopposed GOP incUmbent James R Hurley of Millville. Vinelanders Peter L. Amico and Christopher H Riley are vying for their party’s nod Incumbents GOP Assemblymen Guy F (Page 37 Please*

MEMORIAL DAY — Cape May County's war dead were honored in a ceremony at the county Veterans Cemetery In Crest Haven Sunday. Joseph Koury, national deputy service officer of the Veterans of World War 1. spoke. Mrs. Myrtle

* - - - ' Dor(» Ward Hevener of the county Veterans Bureau laid a wreath. Freeholder Gerald M. Thornton was master of cermonles. The U.S. Coast Guard Training Center band performed.