6/20/22 Caucus

By: Carolyn Maxwell

PERTH AMBOY – Luis Perez Jimenez – Director of Operations at the USA-PA (Utility Service Associates Perth Amboy) Middlesex Water Company) came up to answer questions from Council President Bill Petrick regarding the Supplemental Debt Statement. Water/Wastewater Distribution Shop Construction for $89,534,501.52.Perez explained, “Originally the supplemental money was only supposed to be $4.5 million. $2.4 million extra was added because none of the bids received were under $6 million. A building had to be knocked down for the new WaWa location. The numbers were too high to renovate the old building. The walls were falling apart as well as the electrical system.”

He then answered Petrick’s questions regarding the Runyan Wells. “Sometimes we have to use blended water. Some of our wells are having iron deposits accumulating. We closed out those wells to use divers to clean out the pumps using water with high pressure. We may have to buy a little more water from Middlesex Water Company. Middlesex Water uses ozone and chlorine to sanitize their water. We can look into using ozone as well but it will cost more money. The DEP sent us instructions on stopping the use of fluoride, but we have to get final approval from them.”

Councilman Joel Pabon spoke up and remembered, “In the past, Middlesex Water Company would come to the meetings and give us a report and we need to have them come here to answer our questions as well as questions from the public. You (Perez-Jimenez) are the only person that comes here to speak about the water.”

Perez-Jimenez then explained, “They used to come here when we did an annual report which we no longer do, because now I give a monthly water report.”

Pabon continued, “Middlesex Water needs to come here in person since they are the experts and the professionals. I believe in October of 2021 residents were sent letters about water concerns, but no updates were sent afterwards.”

Jimenez responded, “I sent out 36 letters regarding lead problems affecting only those residents in specific areas. Every time I test a specific water site, I have to send letters out to the EPA.”

Business Administrator Michael Greene answered Council President Petrick when he questioned the lead in our water service lines. Greene explained, “In Newark, that city had to take out a loan to address that problem.”

Jimenez said, “The city can do an assessment or take out a loan also to address the lead bins issue.”

Council President Bill Petrick asked if there can be grants that can be taken out to address the lead bins.

Councilman Pabon spoke up again. He again asked that Middlesex Water come here in person to let them know why they are the best company to service the city of Perth Amboy.

Petrick then asked, “What would be the cause of the black water in my water filters?”

Perez-Jimenez explained, “It might be iron or magnesium deposits.”

Greene spoke up next, “We applied for additional grants which would include money for water treatment facilities. It is a part of the infrastructure money from the Build Back Better Funds.”

Luis Perez Jimenez then stated, “There are $179 million needed for capital improvement projects.”

Councilman B.J. Torres spoke up and suggested, “Instead of bonding for a new building, let’s use the Build Back Better Funds.”

Luis Perez Jimenez then explained, “There is a timeframe to get this land for this building. The land owners spent money already and the city has spent $400,000 for initial findings.”

Law Director William Opel said, “A certain portion of land is being sectioned off: Block 95 Lot1 for the city. The sale of the property is above market value.”

Councilman Torres suggested, “We should wait on this project because the prices are too inflated.”

Petrick had concerns, “That new building will be smaller than the existing building.”

Jimenez responded, “It is the same size as the old building and will have room for a pistol range.”

Councilwoman Rose Morales asked if they could table Ordinance No. 1 (First Reading) – Entitled, “Public Entertainment,” “Because I don’t agree with it. There was no one to second the motion, so it stayed on the agenda.” Morales also asked to table Ordinance No. 2 (First Reading) – To dissolve the Perth Amboy Redevelopment Agency and designating the city council as the redevelopment entity for the City of Perth Amboy. “Three people voted “No” to table so it stayed on the agenda.”

Petrick explained, “There is not much land left to develop, so the council should decide on land use. We would be more transparent. “

City Engineer Jeff Rauch spoke via Zoom on Ordinance No. 3 (First Reading) entitled, “Flood Damage Prevention.” “This is new FEMA Guidelines requiring flood insurance requirements.” He stated, This is for those property owners who make substantial improvements to the properties or to those who suffered damage to their property in flood zones which give them more detailed guidelines on construction and requirements. Market values would be considered. Areas affected would be the Waterfront including Sadowski, Front Street, Harbortown all the way to Buckeye.”

Councilman Pabon asked, “Would the residents affected get notifications (regarding the new requirements)?”

Rauch explained, “The damage had to be more than 50% of the value of the property and those property owners would have to meet the new FEMA Elevation Standards when applying for a new variance. We used the 2010 FEMA Flood Map and the city has to adopt this ordinance for the affected residents to get this flood insurance.”

Another City Engineer Ernest Feist spoke up via Zoom, “Homeowners get a yearly notification from their insurance companies regarding flood insurance for their property.”

Council President Bill Petrick then spoke about Ordinance No. 5 (First Reading) – A Bond Ordinance appropriating $2,400,000 for the construction of the Smith Street Shop Distribution Building for the Water Utility for the City of Perth Amboy. “We; need to use the American Rescue fund for this cost.”

Greene explained, “We haven’t received notification of when the additional funds will be coming in. There are no codified plans for the second $8.5 million coming in.”

CFO Jill Goldy spoke via Zoom, “This money we are appropriating will not be issued until next February. We don’t know what the market conditions will be at that time. Every time we go out to bid, prices are going up. “

There was a brief discussion on Ordinance No. 6 – An Ordinance to establish the Honorary Naming of Linden Street as Peru Boulevard.

Council President Bill Petrick wanted to know if they met their requirements. 

Opel reassured him that they have.

Greene gave a quick overview on some of the amendments regarding R-310 – for the CY:2022 budget. “There is 29,000 for additional salary for another person in the Clerk’s Office and $8,000 for the fireworks, compensation, and other grants.”

Goldy made one more comment regarding Ordinance No. 5 regarding the Smith Street Building. “Fuel costs have gone up as well as vendor cost and interest rates.”

B.J. Torres spoke up, “I’m sure the fuel prices will be going down.”

They continued talking about R-310.

Pabon spoke up next, “There seems to be more people working on the second floor of city hall. It went from 3 people working in the Mayor’s Office to 7.”

Greene responded, “We are trying to correct things that were done incorrectly in the past, especially when it comes to shared services with the schools.”

Petrick responded, “The additional cost in the mayor’s office should be looked at.”

Greene responded, “Home Depot money is included in the amendments.”

Petrick continued, “CFO Goldy requested another person for her department who will make more money than a tax assessor.”

Torres had a question regarding R-313-6/22 – Consenting to the 2022-2023 Renewal of certain plenary retail consumption, distribution, and club licenses effective July 1, 2022. There is no separation between business/residential calls. 

Police Chief Larry Cattano responded in person, “I can get all that information to you at Wednesday’s meeting.”

The next person to come up was Dan Henry from the Royal Lion’s Group to talk about R-315 – A 1-year contract to Berkshire Hathaway for Stop Loss Insurance. “This insurance is self-funding and it will cover $155,000 per member. We are matching the current contract. We sent a bid out to 36 vendors and 9 responded.”

Jeff Rauch talked about improvements for certain streets which included Market Street from Madison Avenue to Goodwin Street and Madison to Second Street. This will include a signage, crosswalk, and curve improvements along with signal improvements and improvements to the crosswalks on Market by Elm Street.”

Greene then explained R-324 – An agreement with the Perth Amboy Soccer Club for the Organization and Operation in the amount not to exceed $6,000.

“This will help defray their cost. They have about 250 participants.”

Dianne Roman spoke via Zoom regarding R-327-6/22 – An agreement between the Jewish Renaissance Foundation and the City for the administration of 2022 Emerging Leaders Summer Institute. 

She explained, “This is an employment services that has a food and security program. The city and JRF will each pay the participant for 3 weeks. Participants are obligated to be a part of this program for 1 year. School Counselors will identify the students who can benefit from this program. Those students will have to have the dedication to participate and commit. Right now, they have 11 scholars scheduled to participate and they will meet in one of the high school classrooms.”

Councilman B.J. Torres was concerned the JRF had moved one of their main facilities out of the city. 

Roman explained, “The JRF still has facilities within our city such as the Family Success Center (located in the Otlowski complex on Convery Boulevard).”

City Engineer Jeffery Rauch explained, “The JRF Medical Facility opened up in Carteret and has nothing to do with R-327.”

Tashi Vazquez from the OECD (Office of Economic and Community Development) spoke via Zoom and added, “The JRF has many services for our community.”

Greene made a comment about R-328-6/22 – In support of Robust Investment for Affordable Homes in the Build Back Better Act to House New Jersey.

“The League of Municipalities is requesting for us to back them up in support of this resolution.” Greene also told the council that Matthew Nieves passed the exam, so he can be appointed the Director of Public Works (R-330). Greene also explained for R-331-6/22 – A change order to a contract with National Fuel Oil to cover the unanticipated increase in diesel fuel through June 30, 2022, in the amount not to exceed $74,000.

He explained, “New garbage trucks are being held up because of supply chain problems.”

Councilman B.J. Torres wanted to make a statement about naming honorary streets. “I know in the past, they had to be named for people who have been deceased for at least 15 years and they had to be of significance to the city.”

Councilwoman Rose Morales requested, “E-Port Phase 2 PILOT should be added to the agenda.”

Council President Bill Petrick had another question regarding amendments to the budget, “I see that there are requests to add a nurse practitioner. We can recommend that people can go to the Jewish Renaissance Medical Center.” Petrick continued, “Some of these new warehouses bring in their own people or hire temporary employees and are very strict. Duke Realty has not performed well for the city. They want us to give them a PILOT before they can deliver on their promises. It is the same people who keep dropping the ball.”

Former Law Director William Northgrave, who was present at the meeting came up to speak, “I can’t speak to a contract that we did not negotiate in the past. Duke Realty, from what I saw has lived up to the contract. They are bringing development and jobs into the city. I’ve only had good dealings with Duke presently.”

Petrick stated, “I think a 20-year contract is too long, and it should be 15 years tops for a PILOT.”

Northgrave disagreed, “A lot of communities do 30-year PILOTS such as Woodbridge, Carteret, and Edison.”

Petrick continued, “We are underrating our city because of our location (major roads, highways, and transportation).”

Councilman B.J. Torres spoke up, “We need our own health department, and I am against having any more warehouses. We need an independent entity to look out for the health of our children and residents (and the impact of having warehouses). On May 14^th I took my 15-year-old to a medical facility on Route 35 to get a shot. They at first refused to do that until other calls were made. I spent 20 years helping the working poor, and I see how their health has been affected.”

Councilwoman Milady Tejeda commented, “At the League of Municipalities, I talk to other people from other cities who have their own health department and the high cost, but it is worth the cost for our residents.”

B.J. Torres spoke again, “We need factual information on cannabis, and not just about Covid. The financing of health issues also comes into place. We need the Bloustein School of Planning and Public Policy (from Rutgers University) to come to speak to us (about these issues).

Councilman Joel Pabon spoke next, “We need to look at shared services. I don’t know how much the county can give us, but we need to test the waters. Rudyk Park has received a lot of money from Harbortown.”

Torres suggested, “We need to look at our businesses to supply information to the neighborhood (about health services, etc.)”

Pabon followed up, “We need to look at other municipalities that have their own health department.”

Petrick then added, “We need separate entities to check our health, water, and environmental issues.”

Torres said, “We need to hire someone qualified whose license will be on the line.”

Tejeda added, “We need something that will help and grow with the city.”

Torres then explained, “The warehouse will be built with or without a PILOT.”

Petrick said, “I agree with you.”

Public Portion (in person first):

The first person to speak was Vince Mackiel. He referenced R-326 – A contract for the cleaning and redevelopment of the Radial Collector Well Laterals Project to Reynolds Construction of New Jersey LLC in the amount not to exceed $627,400.

“Does the city have backup generators? We need more water for the community. I want to thank the city for applying for safe street grants. The county, New Jersey, and city should repair the bridge on Market Street, or the city should have PARA condemn the bridge. PARA said that the train station is a private entity, Regarding the Buckeye Project, will the city ask the state about the biofuels? Buckeye and Chevron have caused a lot of pollution. How much water will be used for this Biofuel Project?”

The meeting was opened up to Zoom Participants.

Resident Sharon Hubberman spoke first about the bonding funds needed for the new Water Department Building. “That money should go to water quality infrastructure. She then read a letter from July 21, 2021, from the Water Company which talked about lead pipes. They were supposed to have a follow up letter in March 2022. The administration is not following up on the council’s inquiries regarding our water quality. This is unacceptable. The American Rescue Funds was to help our community to address water and other health issues.”

Petrick responded, “We need an assessment on those lead pipes.”

Luis Perez-Jimenez responded, “We don’t own the service line, but we have information on the service line that we replaced. We have standby generators, but not for Runyon. I have applied for loans, and the city can only apply for so much money. We get 25 gallons of water from rainy wells and we have to take preventive measures.”

The next person to speak was Mr. Agha Abbas, who owns the property at 515 Smith Street. “I bought that property in 2005, and I heard that my building will be demolished. I have not raised my tenants’ rents for a long time. I have a contract plan with Viridian and I’ve had my taxes doubled. I’m having trouble collecting rent from the tenants. I blame PARA for this. I don’t have Section 8 Tenants. Have PARA move this project forward.”

Pabon responded, “I feel for this man. The owner of the gas station/car wash was also told there were plans for their property. It looks like those plans have also fallen through. We have to give these people some kind of relief.”

Councilwoman Milady Tejeda spoke up, “We need to know more about how fire inspections are conducted and if property owners will be charged for these inspections. The owner of a 3-family house called and asked what kinds of preparations will be needed for the inspection of his house.”

Fire Chief Ed Mullen came up, “With 3-family units and up, there has to be annual inspections and they have to be registered by the state. It’s on the website and YouTube. The cost of the inspection will be based on the square footage and depending on the size of the property, it may take half a day to do an inspection. We have to go with the updated state criteria.”

Councilman Joel Pabon spoke next, “We need to put a cap on certain kinds of businesses. So far, we have 22 barbershops, 38 beauty salons, and 15 nail salons for a total of 75. Plus, we have several Five and Ten, and Dollar Stores. We need a cap on these businesses, and just grandfather the existing ones.”

Law Director William Opel said, “I’ll see if we can do an ordinance.”

The council went into closed session at 8:48 p.m. with no further action to be taken. All council members were present.