The Jersey City Independent "

All photos: Steve Gold

Although the first City Council meeting of 2010 was relatively short — about two hours — and relatively poorly attended — no more than 40 were in the audience at any one time — it was a doozy. The council considered eight first-read ordinances, six second reads and 41 resolutions, including the highly anticipated draft municipal budget. All council members were present.

City Budget Introduced

More than six months after the start of the city’s fiscal year in July 2009, city business administrator Brian O’Reilly and the budget subcommittee of the council presented a draft municipal budget for introduction on Wednesday. The draft document was introduced by a vote of 8-1, with Ward E councilman Steven Fulop casting the lone no vote.

The appropriations included in the draft budget come in just north of $500 million, an increase from last year’s final tally of about $475.7 million.

This year’s tax levy is estimated to be $190 million, O’Reilly told the council. That figure is up $40 million from the 2009 levy, an increase of more than 25 percent. O’Reilly estimated that this could result in a tax hike of approximately $800 per $100,000 of assessed property value. Citing the tax increase, Fulop cast the only nay on the resolution authorizing the estimated tax bill for the first quarter of 2010.

The budget is still a “work in progress,” Ward A councilman Michael Sottolano told the council. As a member of the budget subcommittee, he said he hoped to “pare off another five to six million” before presenting a final draft. After the meeting, Sottolano told JCI that the committee’s goal is to have a final budget draft “within a month.”

The budget was walked on to the council agenda at the eleventh hour, following the city’s receipt of a $14 million special municipal aid package from the state Local Finance Board. The city needed to formally accept the package before Gov.-elect Chris Christie takes office, as he has vocally criticized and would likely revoke the funding if he could. The resolution to accept the aid package passed 8-0-1, with Fulop abstaining.

The city must “learn to live within [its] means,” and stop relying on “one-shot revenue fixes,” he said. In a statement released on Thursday, Fulop said he has “fought hard against indiscriminate developer tax abatement giveaways, irresponsible bonding and rampant political patronage knowing that this day would come if we did not get in front of the problem.”

Another first-read ordinance to be voted on Wednesday was also a late item related to the budget that was not discussed at the caucus. It authorized the city to approve an increase over last year’s final appropriations in excess of 2.5 percent; the measure passed unanimously.

Fulop has been beating the drum on timeliness of the city budget for years, and this year was no exception. When he asked O’Reilly why the draft budget was presented so late in the fiscal year, the business administrator responded that the administration had been awaiting a decision on the special municipal aid package, as well as state legislation that would have allowed the city to again defer part of its payments to the state pension fund — legislation that stalled in Trenton earlier this month.

As he cast his vote in favor of the resolution, Ward D councilman Bill Gaughan, who is also a member of the budget subcommittee, singled out Sottolano’s “effort” in preparing the document and characterized the process as an “outstanding dialogue” between the council and city officials.

Ward F councilwoman Viola Richardson characterized her aye vote on the budget as “reluctant,” but said of the state aid package, “if the Governor’s giving us 14 million dollars, I’m taking it!”

Fulop’s Fireworks

At Monday’s caucus meeting, Ward E councilman Steven Fulop asked the council to introduce a first-read ordinance that would have created a tax repayment program for certain qualified taxpayers in arrears on their payments. The proposal faced some stiff opposition from Fulop’s colleagues on Monday, and Wednesday evening the council voted against introduction by a vote of 2-7.

Primary among the reasons given by council members for voting against Fulop’s plan was the city’s tax collection rate. Ward B councilman David Donnelly recalled the late 1980s and early 1990s, when the city’s collection rate hovered around 70 percent and the administration was forced to tie money up in a reserve account to make up for the collection shortfall.

“Considering our financial circumstances we can’t afford to even take the chance of going back there,” he said as he voted against introduction. Donnelly and other council members argued that the current tax collection rate of 99 percent could be negatively impacted by delinquent taxpayers choosing to take advantage of the repayment plan.

“Other taxpayers would ultimately have to pick up the burden” created by those who owe, Sottolano argued. A staffer in the tax collector’s office reached on Thursday couldn’t immediately verify the exact tax collection rate, but confirmed that it is close to 99 percent.

At Monday’s caucus, Sottolano presented data from the tax collector’s office that he said showed that the terms of repayment at tax sale auctions were most often more lenient than those the city could realistically agree to. In the event a tax sale occurs, a third party bids on an interest rate to pay the back taxes on a property, and the delinquent property owner pays the third party at the rate specified by the auction. In the example Sottolano gave of a July 2009 tax sale, 1193 of 1533 liens auctioned — nearly 78 percent — were auctioned off at a 0 percent interest repayment rate.

A resolution authorizing an accelerated tax sale, a measure used successfully every year since 1997 to recoup a large portion of the city’s delinquent tax payments, was passed by the council 8-0-1, with Fulop abstaining.

Also at the caucus, Donnelly argued against the proposal on the grounds that it could have “unintended consequences” in the form of delinquent taxpayers potentially seeking to exploit friendships with council members in order to get a break on repayment.

The second council member who supported the ordinance was Ward F councilwoman Viola Richardson, who agreed with Fulop at the caucus that the city “need[s] to do something” to aid struggling property owners. Although she said Wednesday that she wasn’t sure Fulop’s proposal was “exactly where we need to go,” she cast an aye — “at least for introduction.”

Fulop made heated remarks as he cast his vote in favor of the proposal, repeating his claim that the plan presented “no downside for the city” and once again calling the other council members hypocritical in light of their support for a plan to defer half of the city’s payments to the state pension fund.

But these barbs were mild compared to the fiery diatribe Fulop directed at Donnelly during the final vote of the evening.

Although Donnelly noted when voting to introduce the budget that his aye should not be interpreted as a “rubber stamp” on the final document, Fulop openly disagreed. Fulop stated that an aye vote on the budget, which was put on the agenda “three minutes before the start of the council meeting,” was just that.

Visibly angry, Fulop also said that Donnelly’s no vote on his tax plan demonstrated “some audacity.”

“There’s not one piece of legislation you’ve sponsored … you’ve done nothing for four months,” he said to his council colleague. Fulop and Donnelly — neighbors on the council dais — exchanged fierce words in quiet tones as the last votes were recorded.

Food Truck Fix Still in Limbo

Jesse Dardar of the Louisiana Spice Truck and Natalia Caicedo of Lucinda Burritos + Tacos addressed the council to ask for an update on a revised food truck ordinance, which has been hanging in the council air for nearly a year. A subcommittee of the council was formed in late October, but has not yet met.

Ward E councilman Steven Fulop, who is on the subcommittee, told city attorney Bill Matsikoudis that there has been no progress because of “a lack of clarity” on the number of potentially illegal food vendor licenses issued by retired health officer Joseph Castagna, who is currently under investigation. Matsikoudis told Fulop that he “believe[s] there has been some type of determination” made about the number of illegal licenses, and said he would get an update.

Meanwhile, Caicedo asked whom she and other food truck owners should contact for updates on the Castagna investigation; she was instructed to keep in touch with Mayor’s Aide Kevin Lyons.

First Reads

Other than Fulop’s tax repayment plan, all first-read ordinances were introduced unanimously by the council with no comment.

• Ord. 10-001 accepts the dedication to the city of a parcel of land just west of the Athena Condominium tower on Washington Street; as part of their development approval, the property owners agreed to construct a public park on this land. Photos of the park site can be seen at New York’s Sixth.
• Ord. 10-002 makes some long-awaited changes to parking policies. JCI reported the full details of this ordinance on Monday.
• Ord. 10-004 adopts a second set of amendments to New Jersey City University’s West Campus Redevelopment Plan. University president Carlos Hernández was present at the caucus to thank the council for their support; the amendments adopted by the ordinance would increase right-of-way dimensions, add bicycle lanes and infrastructure for bike parking and define standards for a new Performing Arts Center, among other changes. Hernández told the council that the university “anticipate[s] the first phase of [the project] … to begin in April.”
• Ord. 10-005 vacates a paper street extending east from the intersection of Dudley and Greene Streets in Paulus Hook. Bob Cotter, director of the city’s Planning Department, explained to the council on Monday that the property comprising this street would be turned over to the state as part of the Governor’s Walkway project. Residents at 1 Greene Street have objected to the project in the past, citing construction plans that would partially block their waterfront views, but none addressed the issue at Wednesday’s meeting. A representative of the building’s condominium association did not return a phone call requesting comment on the ordinance.
• Ord. 10-006 requires owners of residential buildings with five or more units located in a restricted parking zone to disclose to prospective buyers and tenants that they may not be eligible for a parking permit in their zone.
• Ord. 10-007 defines and sets design and approval guidelines for art murals throughout the city; among other restrictions, murals would be specifically prohibited from displaying advertising content, illegal activity or “electric, electronic, or lighted elements.” This ordinance also sets guidelines for the numerical rounding of zoning standard calculations for development applications and clarifies certain language in the Land Development Ordinance to bring it into line with the city’s General Development Application.

Odds & Ends

All of the second-read ordinances passed into law without comment from the council. You can read more about these ordinances here.

In addition to the four resolutions related to the draft budget, 37 other resolutions were passed by the council and one was withdrawn.

• Even though the a budget draft was introduced at this council meeting, as we noted above it still has to be finalized. So once again the council voted to approve emergency temporary appropriations in lieu of a formal budget, bringing the total for the fiscal year to more than $372 million.
• A nearly $88,000 contract to expand the services of the Hudson Regional Health Commission (HRHC) was withdrawn in an effort to pressure the agency to improve its response the Reliable Wood Products processing plant on Caven Point Road. HRHC is under contract to respond to certain types of health and safety complaints; but Richardson said at the Monday caucus she had a “problem renewing this contract” in light of what some think is a poor record of responding to complaints about the foul smells and oily airborne residue coming from Reliable’s plant. Residents of the Lafayette section appeared at an October council meeting to ask for the council’s help; at the time, they reminded the council that this issue has been ongoing for more than two years. We’ll have to wait and see if this tactic leads to better enforcement of the plant.
• As we reported earlier this week, the council authorized an agreement with soft drink company Red Bull to promote and support the Red Bull Air Race, which is coming to Jersey City in June.
• The city will enter into a collective bargaining agreement with the Public Employees union Local 246 for its new contract. The contract, which was approved by the union by a vote of 190 to 130, calls for a $1,000 flat raise per year for the members; the members have also agreed to give up their open health care plan in exchange for two one-time $1,000 payments — saving the city $350,000 to $400,000 annually. The union represents non-supervisory white-collar workers and is led by Chuck Carol, who addressed the council back in October to decry furlough plans.
• The council voted to accept a number of grants at this weeks meeting: from the federal Department of Energy for the Energy Efficiency and Conservation Block Grant Formula Program; from the county Open Space Trust Fund for the Pershing Field Historic Arch Preservation; nearly $2 million from the state Office of Homeland Security and Preparedness for the Urban Areas Security Initiative; and $20,000 from the state Department of Law and Public Safety to the Office of Emergency Management.
• The city passed along more than $240,000 grant money from the county Department of Health and Human Services to a number of organizations for various administrative and educational preventive substance abuse programs.
• The license agreement with the Jersey City Redevelopment Authority governing its use and access of the Powerhouse, which is owned by the city, was amended. The new terms of the license agreement provide for remediation, stabilization and repair of the historic structure.
• All seven bids to replace curbs and sidewalks at various locations in the city were rejected, because the lowest bid received exceeded the project’s budgeted amount by more than 36 percent.
• A property at 110 Cambridge Ave. that is nearly $10,000 behind on tax payments will go to a tax sale, with bids as low as $1,000 being accepted.
• The tax appeal process successfully brought Liberty National Golf Course more than $650,000 in refunds and credits; it had appealed the assessments on various properties it owns.
• Habitat for Humanity of Hudson County was awarded $10,000 from the Affordable Housing Trust Fund for the construction of two single-family homes at 476-478 Ocean Avenue.
• The council authorized an application for grant funds from the state Department of Transportation for Phase 3 of the Newark Avenue Streetscape Project.
• Did you know that Jersey City owns property in Fairfield? Well, it does, and as part of a state-mandated investigation to see the extent of PCB pollution in the area, the city granted a temporary license agreement with GZA GeoEnvironmental for the purpose of installing test borings on the city’s water aqueduct property there.
• Ethel Pesin, a former music teacher, the widow of former city councilman Morris Pesin and the mother of Friends of Liberty State Park leader Sam Pesin, was honored by the council on the occasion of her 95th birthday.

What Are We Buying?

The council approved the following purchases on Wednesday:

• A total of $2.1 million to Delta Dental for two one-year contracts for open and closed dental insurance plans for city employees. $525,000 of this sum will come from the 2010 temporary budget, with the balance to be paid upon approval of a final city budget for the current fiscal year.
• Nearly $1.8 million to Reliastar Life Insurance for a one-year contract to provide stop gap insurance for city employees and retirees. $446,000 of this sum will come from the 2010 temporary budget.
• Over $473,000 to J.A. Alexander for improvements to the Columbia Park Playground.
• Over $283,000 to Liberty Humane Society for a one-year contract to provide animal shelter management services for the city. Ward D councilman Bill Gaughan noted at the caucus that Liberty Humane Society “recognize[s]” that the city could not afford to grant their request for a $500,000 contract.
• A total of up to $150,000 to attorney John Curley for representation in condemnation matters relating to the acquisition of properties at: 13-15 and 20 East Linden Avenue, where the Department of Public Works and the Incinerator Authority are to be relocated; and the PJP Landfill site, the location of the proposed Marion Greenway Park.
• Up to $75,000 to law firm Scarinci & Hollenbeck for representation in various civil rights cases against police officers and supervisors.
• A total of more than $62,000 to Statewide Sanitation Services, Chuk’s Professional Cleaning and Maverick Building Services for month-to-month contract extensions for janitorial services for the Department of Public Works. The awarding of full one-year contracts has been delayed because of “the amount of time it has taken to do the background checks of the [vendors'] employees.”
• A bit over $56,000 to Solomon Owusu for pediatric consulting services in connection with various health programs administered by the Department of Health and Human Services.
• Nearly $41,000 to Transystems Corporation to identify eligible historic buildings or other resources within the Powerhouse Arts District and nominate them to the municipal, state and national Registers of Historic Places.
• Up to $30,000 to law firm McManimon & Scotland for bond counsel services in connection with the acquisition of various properties by the city.
• Up to $18,000 to attorney Ronald Gutwirth for representation in a federal case against five police officers.
• Up to $14,000 to law firm Miller & Galdieri for representation in a federal discrimination case against various members of the administration.
• Up to $10,000 to attorney George Taite for representation in municipal cases against four police officers.
• Additional funds totaling nearly $9,000 to Assetworks Appraisal to amend an existing contract for the provision of appraisal and valuation for the city’s fixed assets.
• A bit over $6,000 to the Township of North Bergen for the provision of services of the Township’s Health Officer on Jersey City’s furlough days.

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