Attorneys grilled on sewer fee collections

City Attorneys Russell Liskov, left, and Christopher Meyer deliver a presentation on how the Water Pollution Control Authority collects unpaid sewer bills to the Bridgeport City Council at City Hall in Bridgeport, Conn. on Monday, January 29, 2018. less City Attorneys Russell Liskov, left, and Christopher Meyer deliver a presentation on how the Water Pollution Control Authority collects unpaid sewer bills to the Bridgeport City Council at City Hall in ... more Photo: Brian A. Pounds / Hearst Connecticut Media Photo: Brian A. Pounds / Hearst Connecticut Media Image 1 of / 5 Caption Close Attorneys grilled on sewer fee collections 1 / 5 Back to Gallery

BRIDGEPORT — Attorney Juda Epstein, who helps the city collect delinquent sewer use bills — and sometimes forecloses on homeowners who cannot pay up — claimed he is not the heartless monster critics portray him to be.

“I have tremendous empathy for every single person who’s in foreclosure,” Epstein told the City Council’s Ordinance Committee Monday. “My job is to not take anyone’s home. It’s to make them prioritize this debt and pay the bill.”

Epstein’s firm over the years has done a lot of business with City Hall and Bridgeport’s Water Pollution Control Authority. And that has made him a target for a City Council that is investigating what it feels is an overly punitive sewer use bill collection process that needs to be reformed.

“We can’t have people not pay," City Attorney R. Christopher Meyer told the Ordinance Committee. ”If we do it raises the (sewer) rates for everybody."

Meyer, Epstein and others involved in pursuing late payments voluntarily testified Monday after the committee last week sought — twice — to get Meyer to issue subpoenas to force them to appear. He had refused, arguing the subpoenas were an unnecessary and abusive step.

But Epstein Monday did refuse to take questions specifically from Councilwoman Eneida Martinez, a committee co-chairman. Martinez, at the Ordinance Committee’s December meeting, alleged that Epstein and Russell Liskov, another attorney involved in sewer fee cases, were conspiring together.

”Both men are Jews and buddies and they go to the same synagogue and they are buying up these (foreclosed) properties,” Martinez was quoted in the meeting minutes as saying.

“I’m uncomfortable in answering your questions because of the anti-Semitic remarks you have made, as well as ... you fabricated my relationship with Attorney Liskov,” Epstein told Martinez.

Epstein did not mention that for the past four years, he has been trying to foreclose on her East End condominium in an unrelated action because she allegedly owes thousands of dollars in management fees and operating expenses.

Martinez in an interview over the weekend said that the private court battle was not a conflict of interest or a reason to recuse herself from the important work of probing the WPCA and Meyer’s office.

But on Monday afternoon, she did issue a statement: ”I bear no animosity toward anyone based on his or her race, ethnicity or religious tradition. As a person of faith, and a minority woman, I respect all religious traditions and detest bigotry in any form.”

Liskov in an interview before Monday’s meeting said he, through a pair of limited liability corporations, owns several properties, but only one in Bridgeport — his mother's former home. He said Epstein is not a partner in those LLCs. And Liskov said he has never obtained any of the homes foreclosed upon because of unpaid sewer use fees.

”Never. Never ever thought about it,” said Liskov, who worked for the City Attorney’s office for years and, after retiring, is still helping collect delinquent WPCA sewer use fees, now as an outside counsel.

Liskov and Meyer at Monday’s meeting went through the multiple steps that the city and WPCA take to get homeowners to pay their debts - steps triggered by accounts that owe $500 and have not made a payment for four months. Four warning letters are mailed out, with interest accruing at 1.5 percent per month up to an 18 percent maximum.

The city turns to Epstein, whose offices are in Bridgeport, or another attorney, Edward Marcus of Branford, for legal action once bills reach $2,000. At that point, homeowners face legal action and foreclosure but can still work out payment plans.

”The last thing we want is the debts to become large when people do come in danger of losing their home," Meyer said.

Epstein emphasized that he gives people who break a payment plan multiple chances to resume payments before heading to court.

One of the allegations against Epstein that the Ordinance Committee is looking into is that he charges unfairly high fees.

Epstein is not paid directly by the city and has no contract. He instead earns his money from the homeowners he is pursuing, billing them as part of payment plans or, ultimately, having a judge approve his fees if a case heads to court.

Critics allege Epstein’s tactic is to ask for more money than he has earned before a matter gets to court, and fearful property owners pay him.

Martinez, before Epstein refused to answer her questions, asked him if he or his firm improperly demand thousands of dollars.

”We don't," Epstein said. “I don’t know what you’re talking about.” He said he charges homeowners $250 for an initial demand letter, $400 to $500 to draft a payment plan and a minimal amount to monitor that plan.

Still, Meyer and his staff told the Ordinance Committee Monday one reform they are considering is setting up a fee structure and caps for Epstein and other attorneys who handle WPCA collections for the city.

Councilman Peter Spain said the collections work should be put out to bid because he assumes Epstein must be earning more than the $25,000 minimum that triggers Bridgeport’s bidding requirements.

Before Monday’s meeting adjourned, the Ordinance Committee requested five year's worth of documentation related to WPCA collections, including demand letters mailed out by Epstein.

Epstein had left at that point. But asked on his way out if he was open to reforms to the WPCA collection process, Epstein said: “I’m definitely open to changes."