4/10/19 Council Meeting

By: Katherine Massopust

PERTH AMBOY – The 4/10/19 Council Meeting began with a presentation from Lissette Lebron who was representing P.A.R.T.N.E.R. and from Julie Marte from AARP stated the grant is to help beautify the Gateway Neighborhood. “We received a $500,000 Beautification Grant,” stated Lebron. The grant is from AARP of NJ – Livable Communities and GNC through P.A.R.T.N.E.R.  A mural entitled: “Growing Together: In a livable community, people of all ages can make their city a lifelong home,” will be painted in the Alexander Jankowski Center, Olive Street.

Lebron stressed that the mural will depict the wisdom of the older generation to the younger generation. Artist Luis Caraballo (Louie Blaka) of East Coast Creatives, LLC who was an Art Teacher in Perth Amboy for five years will paint the mural. Lebron displayed what the mural will look like.

During the first public comments on agenda items only, Resident Ken Balut came up to speak first. He first spoke about raising the salaries for police officers whom he views are underpaid. He then stated his sentiments about the YMCA, “The Mayor made the Budget. The YMCA is being subsidized $20,000 a month. The Board of Education pays them money.” Balut then complained that the Mayor has a Public Relations Officer. He then stated, “What about all the illegal housing? The Mayor’s Aid? That’s $150,000 right there. She (Diaz) spend City money to support Kushner. If she fought for $4 million, she supports that garbage down there. There’s where the money’s going. The Mayor is blaming everything except the Council. She just hired someone for the Parking Utility for $35,000. That’s more than the cops get. The Mayor couldn’t put 5% in the budget for the police officers. She’s incompetent.”

Resident Stanley Sierakowski spoke next, “You have several options with the Budget. You could raise the taxes, cut the budget, or you go to the State. I disagree on one thing with Balut. The Mayor knows exactly what she is doing. Put the responsibility where it really belongs – the Mayor. Get a tax expert to pursue where the dollars are. Go to the State so the Mayor comes and answers questions. She wants to walk away.”

Former B.A. Greg Fehrenbach stated, “I’ve went over that many years. There was a tax placed on that property and it was not paid. When the City was in meetings with the County to build a park.”

Council President Bill Petrick stated that taxes on that property were zeroed out when the County took it over.

Resident Alan Silber came up to speak next. “I remember last year when you were doing this. Someone got a $15,000 raise in one year (in the courts). You are elected officials. You’re doing this blind. People who are not elected are hiding things from you. If you can’t negotiate a contract, there’s something wrong.”

Greg Fehrenbach stated, “The only salaries set for the 2019 year are the dispatchers. All other salaries are under a collective bargaining agreement. For 50 non-union employees there is a salary ordinance. We have not provided the Council with 2019 salaries. We have provided in 2018, and what have been made that year. I have provided the Council with an estimate of what their salaries will be. There are several different ways (the salaries are determined). All are identified such as Clerk I. In non-union, 18 out of 80 negotiations by union authorities. The ordinance expired in 2017. The ordinance was adopted by the Council and signed by you as Council President don’t have the year. The 2.25% increase on the 2017 salary. During 2018, there were longevity. The negotiations are under different rule and the 2017 salary multiple of 2.25% or 2.5% are based on the prior year.

Petrick asked, “Is there a horizontal move between directors?”

Fehrenbach answered, “They have to move into a salary range that pertains to a director position.”

Resident Sharon Hubberman came up next to speak on the 2019 Budget. “In terms of going 20% – you don’t have 20%. The max should be 10%. The salary guide in the Budget – this Budget has an in-depth study of the salary guide. You (the Council) can do whatever you want with a salary guide. Why should one person move to another? We prefer to give to the Police Department, Fire Department, and Department of Public Works. As far as the Collective Bargaining Agreement, it’s irresponsible, especially in some actions, you could hire before the order expires. Group insurance is not necessary.”

Greg Fehrenbach then stated, “Ms. Hubberman is correct. The City is on a self-insured plan. We can hire an agent to go over that. The City had partnered with an advisor for the past three years – Benecard Insurance Administrator. We believe one of the errors made with prior consultants we periodically include a clause. What we have witnessed are significant increase in high utilization. Employees who have used benefits over $25,000. We have to reduce these issues set by the prior consulting broker. The salary guide has some interpretation – some employee’s longevity, other’s certification. Some other responsibilities receive additional certification or education. For example, the City receives money from FEMA each year to receive emergency management. 7 out of 8 contracts the City had expired on 12/31/18. The City has tried to be aggressive with negotiations. Billing from Cigna – Benecard arranged, we have to keep as low as possible. The bill comes in and the bill is processed. It then is submitted to the State, and the City has to pay that bill.”

Resident Dorothy Carty-Daniel came up next. “Does anyone know the process to approve the Budget from the time to approve it? I’ve been on Housing Authority and the Board of Education. I’ve dealt with budgets. You find out what you need, and it goes back. I’m concerned with people who save our lives. Our police and fire personnel help little ladies going across the streets. They rescue people out of homes. They’re not held on a level I feel they should be. I talk to police outside of town. Everyone I talk to state their police salary is more. I’ve just came back from D.C. meeting with Pallone and Menendez. We should be ashamed to know our first responders are the lowest paid in the County. As you drive your car, I’d like to ask our won to be paid. Thank you.” Daniel continued, “What’s happening here is wrong for so many reasons. They don’t meet up. That makes me feel sad. Pay my guys.”

Council President Petrick answered, “Have you explained all of this to Mayor Diaz?”

Daniel answered, “Yes.”

Greg Fehrenbach then added, “The City begins its Budget around September or October. In the middle of December, the departments must put it together. The Mayor is required to deliver to the Council a budget by the end of February. There were internal meetings with some of the Council taking place. The Budget is not made until around March 20. Adoption is not later than the end of April. This gives the Council the opportunity to amend the Budget by the end of August.”

Union Representative Daniel Gonzalez came up to speak. He stated the Union is aware of the problem with the Police Department. He stated young police officers are not knowing their future. “They go to the academy and after two years, they’re out. We have officers working two part-time jobs. It’s becoming a safety issue of Perth Amboy. Police officers are leaving by the numbers. We’re used as a stepping stone. You have to make decisions. For approximately 52,000 residents, there are 431 residents per police officer. The guide is 314 per 1000 residents. There are budget cuts – that’s the reality. The police got body cameras. Things are getting worse. We have to keep ourselves safe to keep our residents safe. We have Active Shooter training. Everything is done out of the County.”

Petrick then added, “We’re paying to train and then they leave.”

Former Councilman Fernando Gonzalez came up. “What are we doing in this Administration? We are subsidizing $25,000 to the YMCA for that monstrosity of a building. We gave 4 blocks of land which is still sitting there (the old police, fire, and first aid squad on High Street). That land has to be sold. Many spots in this town are owned by the City. You are coming to the City of Perth Amboy and not spending the money with out investing any time. I’ve discussed how much money is one little piece of land on Hall Avenue. On Pearl Place, which is owned by the City, I called and told them to please cut the grass. It’s horrific – the police station sitting there. You have to sell it – not wait for Kushner. If we sold that land, we would not be where we are now. We can’t put anymore burden on the taxpayers. You need to maintain your commitment to the City of Perth Amboy. Anyone who has been in power in the City as long as the Mayor has should know that.”

Greg Fehrenbach explained some of these issues, “The money from the PILOT is being used by the City. Mr. Balut and Mr. Gonzalez brought out the YMCA. I had agreed with the need for the YMCA to proceed on that to be resolved with the City Council it’s an ongoing issue. They are not even paying to offset their utility costs. This was an agreement by former Mayor Vas. They need to sit down with the YMCA Board for an agreement.”

Law Director Peter King stated they will litigate with the YMCA.

Brian Furry, Union Representative for the PBA Local #13 came up to speak. “Make sure you can attract and retain police officers in Perth Amboy. The proposal you are talking, you are not going to do that. It’s 2019 – not 2017 or 2018. Things are different. In Trenton, the balance of power is where it needs to be.”

Former Council President Lisa Nanton came up to speak next. “Mr. Blunda (former Law Director) had negotiated a deal with the YMCA that we all could agree on. He was fired before a fair resolution was found. He was fired by the Mayor to hire her friend.”

Nanton continued, “There are 49 households who left Perth Amboy. On Monday, the number is 52 left. Every civilization collapsed because of the dissolving of the middle class. If you keep raising taxes, the middle class will no longer be here. No one will be here to pay the taxes. There’s room to negotiate. If you (the Council) pass this Budget, it becomes your budget. There’s still room to cut. Cut luxury fluff in that Budget. Don’t pay for mismanagement.”

Resident Vince Mackeil spoke next. “There seems to be a loss of FIOS/Comcast. Their contract with the City looks like $20,000. The Parking Utility had excess of $150,000. There are a lot of spaces that are not metered. You have to increase capital pay.”

Greg Fehrenbach answered, “FIOS/Comcast bases the number of people and businesses on their monthly bill. People using those services are dwindling off. This is nationwide, not just here. The community service agreement is coming up with Hackensack Meridian.”

Mackeil stated, “Increase the taxes of Buckeye. The way they are using the City – and how can they only pay $150,000.”

Resident Joshue Nunez came up next. “Considering so many people in the City – I’m 17 and I hear a lot about the YMCA. I don’t know much about the agreement between the Y and the City. I know every single day when I go to work, I see kids lined up to go into the Y. I go to the Y to play basketball in the evening. A lot of kids do. I don’t know why the YMCA is receiving so much flack. Keep us in mind.”

Councilman Helmin Caba spoke, “Last year at this time it was similar. Less than 10 people attended that meeting. We do have one of the highest paid taxes in the County. We get a lot of heat for questioning certain items – the Administration and the Council. I don’t see myself raising taxes. I do not see anyone from the Police Department, Fire Department or the Department of Public Works being layed off. The Mayor knew this was coming this year. What should have been done before – the Mayor should have let go certain people. For example Bryan Walensky. He had a made up title. I ran with the Mayor and he was my campaign manager. Ethically, it’s the wrong thing to do. The Mayor denied it on Monday. It’s one example of many why we’re in this predicament. I’m against 5% like she wants to use surplus money. Cuts were done in every office but the Mayor’s office.”

Fehrenbach corrected Caba, “There was approximately a 50% reduction in that department (the Mayor’s Office). There was a vehicle and part of it was originally assigned to the tax assessor. Now, it’s utilized by anyone in City Hall. It’s a pooled vehicle not assigned to anyone in public office.”

Caba continued, “Last time there were essentially two Mayor’s Aides. After the Mayor lost the election last November because her three candidates lost, and she promised he (Walensky) would have a job.”

Ferhenbach corrected Caba again, “Your speculation is incorrect.”

Petrick then added, “He (Walensky) was roaming the halls of City Hall for 8 months. He shared the desk with the Law Director. When I questioned him, he was working on the new website.”

Fehrenbach then stated, “The public should know there are 2 parts of the government we are dealing with: the administrative/executive and the legislative/council. In my opinion, these are two bodies. Civil Service will not have to do this. When you all agree, it never long-term – at some part where we find commonality.”

Petrick then added, “We’re going to the old days of Joe Vas when we didn’t dare raise the taxes like in 2020 in an election year.”

Fehrenbach then answered, “I didn’t say that. You will have no choice but to have taxes raised in 2020.”

Councilwoman Milady Tejeda spoke up, “I know now how the Council is presented with the material in the Budget. We were not given an opportunity to discuss this in the proper way. I feel for everybody. Not taking care of the Budget is not being responsible. I know I was present for the meeting when we reduced the tax increase from 5.3% to 2.5%. The community is not even able to handle 2.5%. I’m not sure what we are going  to do or where to balance.”

Councilman Caba then said, “We cannot raise the taxes. People can’t afford it.”

Tejeda said, “We spend time on training people, then they leave to go somewhere with better pay.”

Councilman Joel Pabon then stated, “We’re going back a number of meetings and 4 out of 5 of us said take it back – no police – no 19 layoffs. I’d love for us to take care of you. At this point, I don’t see any layoffs. If we went to 2.5%. We have control to change some of things we can do here. The Budget starts the day the old one is paid. We are where we’re at now. I was part of that group to bring it down to 2.5%.”

Council President Petrick said, “I agree with Mr. Pabon and also Mr. Caba and Ms. Tejeda. I see dead weight, people who don’t mean a lot, and a lot of money being spent on people these people  who are weighing us down. It’s the Mayor who needs to change it. I see dead weight in the Budget.”

Councilman Helmin Caba said, “If we use the surplus money, can the tax increase be reduced to 1%?”

Petrick then added, “On and on, she (Diaz) has employed people who have no business being here.”

Fehrenbach said, “There’s some percentage issues. $600,000 for the Police Department; $400,000 for the Fire Department. In terms regarding the surplus. If it went down 1%, it would be approximately $750,000 or at 1.5% approximately $1,000,000. The surplus at the end of 2018 is $5,200,000. If you use the surplus, you are not going to have appropriations in reserve left (in case of an emergency). In two years, you will run out of surplus. My advice. You don’t want to use this. You make the bed you lie in.” Fehrenbach then answered what would happen in case of an emergency, “The effect of the emergency appropriations is double the amount. It depends on what kind of emergency. The borrowing is from the following year.”

Councilman Fernando Irizarry said, “I’m looking at the salary of people in the administration. I don’t think it’s appropriate to refer to people as dead weight. Some people are doing a fantastic job.”

Bill Petrick then added, “Some people don’t deserve the money they get. Wilda Diaz is calling the shots. They advise and counsel to her.”

Councilwoman Milady Tejeda then stated, ‘What will happen with layoffs? We have to use the land we have (to reduce taxes an develop).”

Fehrenbach said, “We along with the auditors have drawn up with corrections provided he (the auditor) will be able to formulate a budget amendment we recommend. We need to know what the Council’s position is.”

Council President Petrick asked that someone make a motion to table the budget to send it back to the Administration so they could make further cuts to bring it down to a 1% tax increase. This is to be done by making cuts on in the Administration cost in the budget. After further cutting the budget, if it is not down to 1%, then the surplus money may have to be used. The Council will not accept a greater tax increase than 1%.

Joel Pabon and Fernando Irizarry voted “no” while Milady Tejeda, Helmin Caba, and Bill Petrick voted “yes.” Motion passes.

A representative from King High Garage came up to speak about Ordinance No. 2 – An ordinance to amend an ordinance entitled “wreckers” (Ordinance No. 621-92 as amended ) adopted August 4, 1992, also known as Chapter 425 et seq of the code of the City of Perth Amboy.

“You don’t have an ordinance. These charges have to be itemized for consumer affairs. 

Scott Flowers came up. “You can’t choose prices.”

Council President Petrick explained that the Council relies on experts. 

Flowers then said, “The rates haven’t been increased since 1992. I’m the one they call. Your ordinance is $50 below the average tow. It’s illegal. Don’t force my hand. I’m here to help.”

Former Councilman Fernando Gonzalez came up to the podium, “Mr. King (Law Director) has got to get this done. They are a lot of work we did. Table it and let’s meet. I’ll be willing to meet with one of you again. Mr. King is insisting we pass it. What changes can we make if we come back to make a change.”

Petrick then said, “If we table this, we don’t have a tower’s list. We use the old one.”

Deputy Chief Larry Cattano came up to answer questions, “This was discussed as we have with numbers. A lot of changes were not authorized in this meeting.”

Councilman Pabon said, “The process is way too much for our local residents. Everybody says it’s okay.”

Petrick then added, “We’re a poor community. If they don’t want to tow for the price schedule, then don’t tow here.”

Resident Sharon Hubberman came up next. “I just pulled the ordinance for Old Bridge. We accommodate and utilize. We owe it to the community and taxpayers.”

Resident Dorothy Daniel came up next, “Make sure in the statute states who will do the towing on weekends. Often, they won’t answer the phone on weekends. A woman (I knew) couldn’t get hold (of the tower) during a weekend. Make sure they work on Sunday.”

A man came up to the podium stating, “I do believe we are having to get to some of the numbers. Fees were removed. You have town rates. You should pass an ordinance and we should get a raise. We’ve been working since 1992 without a raise.”

During the public portion, former Councilman Ken Balut came up to speak, “If it was up to me, I would take the key to the YMCA and run it myself. City Employees have been working on her campaign. This is what Joe (Vas) did. It’s disgusting what goes on. She’s giving jobs to everything she felt like. Party aides get more money than police officers. Where is she (Diaz)? Why did she support Kushner? Did you know the YMCA donated money to her campaign?”

Resident Stanley Sierakowski came up next, “The website has not been updated. My question has not been answered. What legal recourse of a LLC comes to approximately $2.2 million? Wilda Diaz went down – it’s everything to do with Mr. Kushner for parking for his 600-unit building. He’s short on 100 parking spaces. That 4 acres is for parking. What’s the free market dollar of the property? The property was at $6 million. The PILOT for Target. You now have $2 million.”

Law Director Peter King answered, “That has been answered numerous times. When you take a proxy for taxes, you can’t anymore.”

Resident Sharon Hubberman came up. “The Budget – we all want to hold the line on the Budget. There’s a lot of areas that can be cut. $3 million to $4.5 million of surplus. Once you dip into the surplus, you put yourself in a certain state. It is always important to have a surplus.”

Resident Alan Silber came up next, “There’s no reason to put down 2019 salary. You want 2018 salary to see what people are making. I’m not great with getting out of the surplus. You can’t fall into a trap. Our taxes are huge. We’re not paying the schools. Look at people hired in City Hall. You don’t know how many people are being hired. It’s an amazing thing, especially when you have an absentee Mayor. She went to Puerto Rico and made a speech in San Juan.”

Business Administrator Frederick Carr stated, “She is a full-time employee and has vacation time.”

Bill Petrick stated, “She went on two trips to Puerto Rico.”

A tower from King High Garage came up to speak. “The reason we need language in it (Ordinance No. 2) is so we can’t get sued. It is why we have to itemize. I want to handle this and do the right thing.”

Council Comments:

Helmin Caba went first. “I understand we have to make different decisions. One of many concerns are property taxes are going to be very difficult to do. Taxes go up – rent goes up. In Perth Amboy, rent is very high. That is what we have here – illegal housing. She (Diaz) created this mess. It’s up to her to clean it up. Use surplus money to do what’s necessary for this City. We try to question the Administration – we’re the bad guys. I do anticipate the Mayor’s vetoing our vote. Now it pressures Wilda Diaz. She has the last word after all our ordinances. The website should have been done years ago.”

Fernando Irizarry had no comments.

Joel Pabon said, “I know what I said. I need to be responsible. I stand by that.”

Milady Tejeda said, “I’m happy about the options that we gave the Administration. It’s her responsibility to make that difficult decision.”

The meeting was adjourned at 10:41 p.m. All Council Members were present.