The Jersey City Independent"

All photos: Steve Gold

Although this Wednesday’s council meeting was not as packed as the last two were, a relatively large crowd of about 200 were present in council chambers for at least part of the five-hour proceeding as the council considered nine first-read ordinances, 13 second reads and 27 resolutions.

And even though most of the legislation on Wednesday’s agenda was not directly related to the budget, that was the very thing most of those who addressed the council were focused on. Many more community members than usual approached the podium to speak to the council on a number of controversial second read ordinances, quite a few of them more than once. All council members were present to vote on the ordinances, although Ward E councilman Steven Fulop arrived late; At-Large councilwoman Willie Flood left during the public hearing portion of the meeting and did not cast votes on any resolutions.

Agency Benefits Limited

Last month, after Fulop proposed a set of ordinances to eliminate health benefits for appointed board members of the Jersey City Incinerator Authority (JCIA) and the Municipal Utilities Authority (MUA) — both of which failed to pass introduction at the Feb. 24 meeting — Mayor Healy put forward another pair of ordinances that would cut the benefits without eliminating them. Both of these ordinances were adopted on their second reading on Wednesday; the JCIA ordinance passed 6-0-3 and the MUA one passed 5-0-4. Ward D councilman Bill Gaughan abstained on the MUA vote because his daughter Eileen Gaughan is the chair of that board; Flood, whose husband Phil Flood chairs the JCIA board, abstained on both.

Ward F councilwoman Viola Richardson, who voted in favor of Fulop’s failed ordinances two weeks ago and initially voted no on the new ordinances, was moved to change her vote to an abstention after Ward A councilman Mike Sottolano — who also voted to introduce Fulop’s ordinances — characterized a nay as a vote to keep the benefits. Stating that the “intent of [her] vote” was to eliminate benefits entirely, Richardson said she was “confused” and asked city attorney Bill Matsikoudis for clarification.

Matsikoudis reminded Richardson that the Law Department has been unable to find a legal basis for the benefits, since they were not provided for in the ordinances that created the agencies. State statute does permit municipalities to provide compensation to these boards, including health benefits, but Matsikoudis contends that any such compensation must be granted by municipal ordinance.

He noted that if Healy’s ordinances were to fail on Wednesday, the city could pursue legal action to prohibit the JCIA and MUA from granting benefits to their members, echoing a point he laid out in a Feb. 18 memo sent to the council. “If the City Council takes no action by not passing either ordinance,” it reads, “it is my opinion that we will have to ask the JCIA and MUA to discontinue granting health benefits.”

But because Mayor Healy’s ordinances passed into law, the granting of compensation is now codified by ordinance and legally permissible.

Fulop himself, who arrived just after the vote was taken on these two ordinances, also abstained from the vote after a brief sidebar conversation with Sottolano.

The new laws stipulate that as of June 1 the board members must pay 20 percent of their premium costs, which under the old system were covered entirely by the agencies. They also limit the benefits to just the board member, as opposed to their family members.

“While the original ordinances, by cutting all benefits, would save the two agencies a combined total of $287,569,” Healy said in a February letter, “the compromise ordinances would still result in a significant savings for the agencies, in the amount of $155,294.” Healy justified his opposition to the complete elimination of benefits in another letter, writing “I do not believe it is wise to eliminate the health benefits for JCIA and MUA board members, as it has been provided for decades.”

Many of the council members echoed the mayor as they voted in favor of the ordinance, calling attention to the fact that these benefits have been in effect since at least the 1970s. However, the 12 residents who addressed the council during the public hearing on the two ordinances were not convinced.

“If this is something that’s been going on for a long time, this is something that we want [to] change,” Kevin Maguire said, playing off the Healy team’s 2009 campaign slogan of “Change You Can See.”

Downtown resident Yvonne Balcer, in one of her many appearances at the podium on Wednesday evening, suggested that the board members should be willing to serve without compensation.

“If a person wants to serve the city,” she said, “it doesn’t mean we the public have to pay for it.”

Paul Bellan-Boyer echoed Balcer’s comments in a concise statement to the council: “There are qualified people who want to sit on these boards who are capable of serving and will do so without compensation, so to even think of extending this kind of outrageous benefit at this time is ridiculous.”

When good-government activist and 2009 Ward C council candidate Norrice Raymaker asked “what [the board members'] duties and responsibilities are and how many hours they are required to put in,” she did not receive an immediate answer from the council or the city officials present. After a moment or two of silence, Richardson raised her eyebrows indignantly and said, “no one knows.”

Ward F resident Teresa Patterson asked the same question in a different way, taking direct aim at Flood.

“Ms. Willie Flood, doesn’t your husband sit on [the JCIA] board, could you possibly know how many hours he works?,” she asked.

“Mr. Flood is not present to answer your question,” the councilwoman answered. But Patterson was not satisfied and came back with a bitter rejoinder.

“Maybe I should ask you on a Sunday afternoon when you’re on Clerk Street with a city vehicle,” she spat out. “We are the taxpayers, we have a right to ask these questions.”

For her part, Flood denied that she uses her city car on Sundays.

Elections Not Moving

Early this year, a state law was passed that permits the 86 cities and towns like Jersey City, which were formerly required to hold nonpartisan municipal elections in May, to combine those elections with the more well-known general elections in November. Hailed by some as a way to increase voter turnout in less-attended elections, the bill was not without controversy. The administration initially alluded to “some concerns” about the possibility of combining Jersey City’s elections, and a presentation by city clerk Robert Byrne at Monday’s caucus meeting made those concerns explicit.

Ward E councilman Steven Fulop came to the Feb. 8 caucus meeting with an ordinance that sought to put the question to the voters in the form of a referendum, as well as an ordinance that would have asked the voters whether to eliminate the city’s runoff election, which is triggered if no candidate receives at least 50 percent of the vote in a municipal election. Fulop agreed to hold both ordinances until Byrne, who was not present at the Feb. 8 caucus, had an opportunity to review and comment on them. Snow canceled the subsequent city council meeting and the public budget hearing dominated the one after that, but Byrne finally got his chance to speak on the ordinance at Monday’s caucus.

Byrne is not an advocate of consolidating the elections, primarily because of available ballot space. He pointed out Monday two factors that limit Jersey City’s ballot real estate: the fact that our municipal election cycle is on the same schedule as New Jersey’s gubernatorial cycle; and the large number of candidates that regularly stand for municipal elections.

Because Jersey City’s voting machines have a limited number of rows and columns, and because a 10-point font size is required by law, he said it would be easy to conceive of a ballot where all candidates and public questions simply would not fit, creating the necessity to split the ballot between two voting machines. He showed the council a fictional ballot he drew up to demonstrate what it might look like; he characterized it as “confusing” and also pointed out that the font size was smaller than permitted by law.

“I would not be proud of this ballot,” Byrne said.

County superintendent of elections Marie Borace and county clerk Barbara Netchert, who were also present at Monday’s caucus, agreed. The consolidated ballot “would confuse the average voter,” said Borace.

Byrne cited a figure of $1.6 million to double the city’s voting machine count — accounting for 200 machines at $8,000 a pop, but leaving out additional storage and maintenance costs. This number far outstrips the $350,000 he estimated as the cost of holding a municipal election and runoff. It also exceeds the $1.5 million cost savings Fulop has cited in past weeks as a reason to make the switch.

“I think the legislation was small-town intended,” Byrne told the council.

Byrne also spoke against the idea of eliminating the runoff election, pointing once again to Jersey City’s often crowded fields of municipal candidates. He reminded the council that in 1992, a special election for Gerry McCann’s unexpired mayoral term — which did not require a runoff — resulted in a win for Bret Schundler with only 17 percent of the vote. “I think the runoff provision is so that the mayor and council members start their term with at least half of the electorate plus one behind them.”

Fulop was not deterred by Byrne’s presentation. “There is significantly higher turnout in November than in May,” he argued, calling the clerk’s comments “scare tactics” and urging his colleagues to “ask the public what they prefer” via the referendum. “That’s democracy,” he said.

The public will not get an opportunity to vote on these questions in the near future, however; the council defeated both items 7-2, with Fulop and Ward B councilman David Donnelly voting in favor. Donnelly voted for introduction despite saying he is “not comfortable” with the ordinances.

Tramz Tabled

An ordinance that has been in the council hopper since December that would grant the Tramz Hotel Group an $8 million loan under the federal Department of Housing and Urban Development (HUD)’s Section 108 Loan Guarantee program was tabled Wednesday.

Tramz is seeking the loan in order to perform environmental remediation on a site at the southern end of Marin Boulevard, where they intend to build a 310-room Hilton hotel. The project has already received $21 million in conventional bank financing, and in October, the project received a $1.9 million grant from the federal Brownfields Economic Development Initiative, but Tramz says it still needs the $8 million in 108 funds to make the project a reality.

A 108 loan permits municipalities to assume the role of guarantor on loans to private developers. If a Section 108 loan is not repaid, the guaranteeing municipality could lose portions of its Community Development Block Grant (CDBG) funds.

Back in December, Ward E councilman Steven Fulop and Ward D councilman Bill Gaughan expressed grave doubts about the creditworthiness of the project and had the ordinance withdrawn. Since that time, Tramz has agreed to set aside $1.25 million in a dedicated reserve fund to provide additional security on the loan; under the previous arrangement, $1 million of the $8 million loan would have been used to establish this security reserve.

While most of the council was satisfied by the additional security posted, Fulop and Ward B councilman David Donnelly were not convinced, voting against introduction at the last meeting. In addition to doubts about the project’s creditworthiness, Fulop also said he thinks a Jan. 5 appraisal of the hotel site, which valued the property at over $50 million, “is not credible.”

The property is as yet undeveloped and in need of environmental remediation, leading Fulop to believe that the appraised value is inflated. Fulop has previously noted that the adjacent Flintkote property, which was sold with an attached approval for a tax-abated condominium building, sold “at height of market” for $25 million, half the appraised value of the Tramz site.

The council requested a second appraisal, which was due to be complete before Wednesday’s meeting, but wasn’t. The council chose to table the ordinance after the public hearing pending the new appraisal, but not before several of the evening’s repeat speakers expressed their concerns.

Local blogger and corruption watchdog Douglas Carlucci echoed the ethical concerns raised by Fulop during the debate over the ordinance’s first reading, pointing to several campaign donations that JCI found Tramz CEO Tarrunumn Murad had made to 2009 municipal campaigns.

“It’s a matter of record that the CEO of this hotel company donated $5,100″ to the election campaigns of the mayor and his council slate, he said. “Given what some of the members of this council have been accused of, it’s entirely irresponsible to loan this money.”

Liquor Law Change Stirs Up Controversy

More than ten residents and local business owners stepped forward on Wednesday to address the council on a second read ordinance that increases the permitted density of liquor stores in redevelopment zones. Where previously two liquor distribution licenses were required to be separated by a distance of 750 feet, the new law permits a distribution license being transferred into a redevelopment zone to be as close as 520 feet to another establishment holding a license.

A few of the speakers spoke positively of the ordinance, including David Popkin. Popkin identified himself as a “fairly new owner” of a bar and liquor retail concern — Popkin is the new owner of Downtown’s Bar Majestic — and said he “welcome[s] the density in the new ordinance … the bar can be raised for everybody.” However, other retailers were not as pleased.

Ava Thorin, whose husband Walter Sidoroff owns Sidoroff’s Liquors at the corner of 8th Street and Jersey Avenue, urged the council not to adopt the ordinance. She put the number of Downtown liquor stores at 15, including “the largest liquor store in the state,” saying there is reason not to increase the permitted density. Thorin also called the ordinance “developer-driven,” the first reference to a developer that remained nameless throughout the discussion on the ordinance.

Thorin and others, such as Neil Stolz of Central Avenue Liquors, who mentioned an “influential developer” as he addressed the council, appeared to be referring to Exeter Properties, a real estate development firm that has had a hand in much of Downtown’s new construction, including most recently the Hamilton Square development just east of Hamilton Park. Exeter intends to rent space to a boutique wine shop in that development; doing so would put the shop within 750 feet of Sidoroff’s Liquors, as well as the Liquor House store on Erie and 7th Streets.

Although the veiled references to Exeter were seemingly clear to many in the room, at least one person wanted to make them explicit. Norrice Raymaker asked the council directly to identify the developer other speakers had referred to, but no council member did.

“How did the ordinance come about?” she asked as she continued her prodding.

Ward E councilman Steven Fulop informed her that the change was motivated by work on a particular development.

“When developments move forward, sometimes ordinances [are identified] that seem to be antiquated,” he said. “It was brought to light based on a project that showed that this was inconsistent with [density in] other municipalities.”

Fulop was quick to add, though, that this fact should not lead to accusations of favoritism: “I don’t think it’s fair to say that this is to benefit one particular developer.”

The law was adopted by a vote of 7-1-1, with Richardson voting nay because, as she has previously stated, she is concerned about the potential for additional liquor stores in her ward. Council President Peter Brennan, who owns a bar, abstained from the vote.

Fulop Re-introduces Four Bills, Gets Legislative Rebuke from Council Prez

After several ordinances introduced by the Downtown councilman were defeated at the previous council meeting, Fulop vowed to get them on “every council agenda for the next three years.” Those three years started Wednesday, with the bills — which would would set policies and procedures for city-owned cable station JC1TV, fix a city seal to the sides of all city-owned cars and eliminate health benefits for board members of the JCIA and MUA — all up for introduction again. They were all defeated, although the votes lined up somewhat differently than last time.

The vote on the JC1TV bill was 3-6, with Fulop joined in voting for the bill once more by Richardson and for the first time by Ward C councilwoman Nidia Rivera Lopez. Lopez said she changed her mind about the ordinance after hearing from some constituents who “were really upset” by her previous nay vote.

The bill on the cars was sent packing 1-8, with Fulop losing his support from Flood, who voted for the ordinance the last go-round.

The bills on JCIA and MUA benefits also lost support; while they kept their ayes from Richardson, Ward A councilman Mike Sottolano and At-Large councilman Mariano Vega* changed their previous ayes to nays for this vote. Flood and Ward D councilman Bill Gaughan once again abstained from voting on the ordinances that pertained to boards chaired by their respective family members.

Meanwhile, another ordinance motivated by Fulop’s bills was introduced by a 7-1-1 vote. Proposed by Council President Peter Brennan, the ordinance would prohibit the council from considering any defeated first read ordinance for six months after its failure to pass.

At Monday’s caucus, Fulop called the bill “a direct attack” on his failed ordinances and characterized it as “embarrassing” to Brennan. All council members voted in favor of the bill with the exceptions of Fulop, who voted against it and Richardson, who abstained.

“I do think we need to have some time limit,” she said, “[but] six months is too long.”

Office-Building Abatement Barely Passes

A second-read ordinance approving a five-year tax abatement for a six-story, 75,000 square foot office building being constructed on a formerly empty lot at the Jersey City Medical Center campus was passed 5-4. The ordinance was introduced on its first reading by a 6-3 vote, with Donnelly, Lopez and Richardson voting against it; Fulop added his nay to the mix on Wednesday.

The abatement calls for the developer to pay no taxes on the property in 2010, 39 percent of taxes due in 2011, 59 percent in 2012, 79 percent in 2013 and 80 percent in 2014. Under the agreement, the property would fully come on the tax rolls in 2015. The project, which has an estimated total cost of $19.4 million, is expected to create 100-plus construction jobs, as well as about 100 permanent full-time jobs once the office building is filled with tenants.

“This is not a low-income project,” Lopez said as she cast her vote against the abatement, criticizing the notion that it would pay no taxes in its first year.

Richardson echoed Lopez’s comments, albeit a bit more succinctly.

“This project needs a tax abatement like a hole in the head,” she said as she voted against it.

But Sottolano and Gaughan, who both voted in favor of the abatement, justified their vote by pointing to the employment created by the project and the fact that it would put a new ratable on the tax rolls in the long run.

Bond Issue to Pay for Property Tax Appeals

The city was authorized by a second read ordinance to issue nearly $8 million in bonds to fund emergency temporary appropriations to pay tax appeals made by property owners in the city. This is a routine practice that was called out by bond ratings agency Moody’s in a December report as a black mark on the city’s bond rating. The ordinance passed by the same vote with which it was introduced: 8-1 with Fulop voting no.

“It’s actually cheaper to bond it and pay it over five years than [to add] it into the current fund,” city CFO Donna Mauer said in response to questions from residents about the fiscal prudence of such a move. She quoted a figure of $40 per $150,000 of assessed property value as the extra taxes property owners can expect to pay as a result of the bond issue, compared to over $100 per $150,000 if the money was to be raised within the municipal budget.

Council Jobs Not Becoming Full-Time … At Least Not Yet

Two first-read ordinances proposed by Ward F councilwoman Viola Richardson that would make the City Council seat a full-time position and raise the position’s salary were withdrawn for revision. Most of the council members seemed open to the concept of the law and discussion of the proposed ordinance at Monday’s caucus mostly centered around issues of implementation, such as whether to prohibit council members from holding other jobs, prescribing specific work hours and the like.

Ward E councilman Steven Fulop has said in the past that he is open to a discussion of whether to make city council positions full time, but he did not appear enthusiastic about Richardson’s ordinances at the caucus. Fulop cited the city budgetary climate and “the sentiment today [regarding] salary increases” as reasons not to address the issue. The items will be revisited at a later date not yet set.

Shared Services Agreements Rescinded

The council rescinded two resolutions passed in February that authorized shared services agreements between the city and the MUA and the city public library, respectively. The agreements became the subject of controversy after it was revealed in the press that they were intended to permit the city and those agencies to contract with two recently retired city employees, Roger Grego and Kathy Dealy. Grego, a former assistant business administrator, and Dealy, former chief of administrative services, retired last month; many senior city employees are speeding up their retirement plans as the state legislature prepares to consider a bill that would cap municipal retirement payouts at $15,000. Grego and Dealy retired with payouts together totaling over $370,000.

Budget Watch

As administration officials and the City Council continue to work on fine-tuning the Fiscal Year 2010 budget, the council once again had to pass a resolution approving emergency temporary appropriations to keep the city running. As usual, Fulop voted against the resolution, which brings the Fiscal Year 2010 spending up over $450 million, nearly 89 percent of the total proposed budget. The 2010 fiscal year ends June 30.

Other First Reads

In addition to the contentious first-read ordinances discussed above, the council considered a number of other bills proposed for introduction.

• Ords. 10-036 and 10-037, both introduced unanimously, provide developers with incentives in the form of density bonuses. The first amends the Tidewater Basin Redevelopment Plan in Paulus Hook to provide density bonuses in exchange for use of specified “green building” practices, such as rooftop solar panel arrays and the elimination of through-wall heat pumps on the first and second floors. The second amends the Marion Works Residential/Office Overlay Zone District (“Marion Works Overlay”) to provide developers of new construction in the district, most notably Canco Lofts owner Coalco, with density bonuses in exchange for a commitment to build a new public park. Coalco has agreed to build a park in what is now a parking lot at Dey Street and Senate Place.
• Ord. 10-043, which was withdrawn before the meeting, would have placed the council in direct control of city-owned vehicles assigned to certain city employees, including the clerk, department directors and the council itself.

Odds & Ends

• A second-read ordinance to retroactively approve the May 1973 sale of an affordable-housing development on Newark Avenue between Kennedy Boulevard and Summit Avenue was tabled because of concerns raised by assistant city attorney Joanne Monahan. The 1973 sale was processed without the required “approval of the governing body” and the council must retroactively approve it in order to allow the property owner to maintain the 48-year tax abatement on the property that was granted in Feb. 1971. City clerk Robert Byrne informed the council that Monahan “had some issues with language” in the ordinance that she believes would restrict the developer’s ability to sell the property in the future; the ordinance will be revised and revisited at a later date.
• Aside from the second read ordinances discussed above, all the rest were adopted by a unanimous vote; you can read more about these ordinances here.
• A resolution opposing the construction of a heliport in Kearny on the grounds that “the health, welfare and quality of life of Jersey City citizens would be significantly affected by frequent exposure to aircraft noise” passed 5-2-1, with Gaughan and Vega* voting against and Fulop abstaining. Donnelly spoke against the heliport at Monday’s caucus, saying he “could count the tiles on [his] patio” from a helicopter flying below 500 feet and he was concerned for the welfare of residents underneath the proposed helicopter flight paths. But Vega* does not oppose it, saying it “would be good for the region.” Gaughan said he voted against the measure because he was satisfied after speaking with elected officials in Kearny that there was no cause for concern.
• Lopez abstained from voting on a resolution appointing her to the Planning Board, and the measure passed 7-0-1.
• The council also considered 22 other resolutions, all of which passed unanimously with little comment.
• The city will spend up to $62,000 in total for month-to-month contract extensions with Statewide Sanitation Services, Chuk’s Professional Cleaning and Maverick Building Services for janitorial services for the Department of Public Works. These contracts were also extended on a month-to-month basis back in January at a cost of over $62,000. But the contracts are not likely to be renewed, as the city — at Ward F councilwoman Viola Richardson’s behest — is looking at ways to provide these services in-house by rehiring recently laid-off seasonal workers for less than half of what the cleaning services would charge. Department of Public Works director Rodney Hadley has said that a mere $176,000 would cover the 22 seasonal employees with benefits; even accounting for the costs of the month-to-month extensions, this is a significant savings on the proposed contracts with the cleaning services, which total more than $520,000.
• The city will submit an application for a $477,000 grant from the North Jersey Transportation Planning Authority and the state Department of Transportation’s Local Safety Program. Funds from this grant would be used for the “construction of quick-fix safety improvements” on some local roadways.
• The city was authorized to discharge a mortgage agreement worth nearly $459,000 between the city and the Urban League of Hudson County, owner of property at 723 Grand Street. Urban League intended to develop affordable housing at the site, but decided instead to sell the property to another developer, Starting Points of Hudson County.
• A license agreement between the city and the Jersey City Community Housing Corporation (JCCHC) was authorized, allowing JCCHC to access property at 90 Virginia Avenue. In January, the council authorized the conveyance of the property from the city to JCCHC; that will be completed once financing is in place for JCCHC’s affordable housing project at the site. In the meantime, the developer is permitted by this license agreement to enter the property.
• The city was authorized to sell three properties it no longer needs for public use: a 3.5-acre vacant lot on Tonnele Avenue and two adjacent vacant lots at 120 and 122 Monticello Avenue. The minimum bids the city will accept for the three properties total $740,000.
• The council passed a resolution applauding the honorees of this year’s St. Patrick’s Day Parade, including the late police officer Marc DiNardo, who was fatally injured last summer in a bust gone wrong and Ward D councilman Bill Gaughan, who will serve as this year’s grand marshal for the parade. Another resolution congratulated Ed Hazelett on being chosen “Irishman of the Year” by the Friendly Sons of St. Patrick.
• Jersey City resident Willie Mae Cobbs, a founding member of Ocean Avenue Baptist Church, was honored on the occasion of her 100th birthday, which was March 2.

What Are We Buying?

The council approved the following purchases on Wednesday:

• Up to $250,000 to Airbrake & Equipment of Hillside for heavy equipment parts for the Division of Automotive Maintenance. $15,000 of this sum will come from the 2010 temporary budget, with the remainder to be paid when the budget for the current fiscal year is finally approved.
• $236,000 to the federal Environmental Protection Agency (EPA) for hazardous waste removal services at an area between Grand and Aetna Streets, more affectionately known as “Turnpike Dump Site #5.” The EPA initially charged the city more than $1 million, but has since agreed to accept 20 percent of the costs.
• $144,535 to Mutualink of Wallingford, Conn. for the provision and installation of surveillance cameras throughout the city.
• $143,495 to Motorola of Montvale for radio equipment for the Office of Emergency Management.
• More than $111,000 to Dimension Data of Happauge, N.Y. for a new telephone system for city buildings.
• Over $60,000 to Hatch-Mott MacDonald of Millburn for engineering services in connection with the Martin Luther King Drive Intersection Improvement project.
• More than $52,000 to Access Control Technologies of Clifton to renew a contract for security maintenance for the Division of Buildings and Street Maintenance. $10,000 of this sum will come from the 2010 temporary budget, with the remainder to be paid when the budget for the current fiscal year is finally approved.
• A bit over $47,000 to Slade Elevators of Mountainside to renew a contract for elevator maintenance at various city-owned buildings.
• Almost $33,000 to Lawman Supply of Egg Harbor City for police ammunition.

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