3/8/21 Caucus 

By: Carolyn Maxwell

PERTH AMBOY – The meeting took place at the council chambers and via teleconferencing on Zoom. It started at 5:39 p.m. after Council President Bill Petrick showed up (All council members were present).

The first order of business involved a discussion on bids received on the public safety complex gate improvements. There was only one bidder: Giacorp Contracting, Inc. for $186,920.50. 

Business Administrator Remsen told the council that the DPW Supervisor Danny Cleaver will get you more information regarding this project.

Fire Chief Ed Mullen came forward to give a more detailed explanation. “This is a project that was supposed to start in 2017 due to major traffic issues. We went in with the county to secure bonds. The bonds were supposed to be for $1.5 million, but less than $1 million was used. There was not enough money that was needed to place a bid for the services needed. This is for a traffic light, because a lot of non-emergency vehicles go across the property (which involves a Rte. 440 connector on Augustine Place) which causes a traffic back up. We are concerned about children going across the property when fire engines are going out on calls. This is a very involved project. After hours, swipe cards are used to gain access. For those who need handicap parking, they will have to be buzzed in. In the past, gates were not needed because the property was vacant until the school was built. This bidder said the original price is good for the next 30 days. A lot of electrical work is involved.”

Councilman Joel Pabon spoke up, “We are always put in the corner with only one bidder. The price is high, and I think we should rebid for this project.”

Mullen continued, “The bids are only good for a certain amount of time.”

Council President Petrick suggested, “We should see who did the gates for the Home Depot warehouse.”

Mullen then stated, “I don’t think the price will go up much more.”

Pabon stated, “It should not go up at all.”

Councilwoman Milady Tejeda stated, “I agree that we need more bidders for this project, but it is also a safety issue.”

Business Administrator Remsen spoke up, “The price of the bid is good. In the beginning we believed the infrastructure was good, but it wasn’t, and we can and will rebid.”

Mullen ended the discussion by stating, “As long as we are up and running by September 2, 2021.”

CFO/Comptroller Jill Goldy participated via Zoom to give the following reports: 1) Standard and Poor’s Bond Rating Report; 2) City of Perth Amboy Financial Trend Analysis. 

Goldy stated that the bond rating was from two weeks ago. “The city was given an A+ rating and a stable outlook. We did pretty well inspite of the economic suffering effects of Covid. I started doing a financial trend analysis a few years ago. There was an evaluation increase in 2020 with the $10 million net debt up. There were deficits in 2 utilities: parking and water. Based on our population, the Net Debt Capita, every resident will owe $2,000. Our fund analysis between years 2019 to 2020 showed a slight decrease. Our miscellaneous expenses show a $380,000 shortfall. We could not replenish the money borrowed which went towards having less of a tax increase. The cash balance operation increased. The interest rates are low. More people paid their taxes and utilities online. There’s the $100,000 in uncollected taxes. The principal debt for the water was $80 million. We paid $11.9 million. We cannot shut off residents’ water until the moratorium on unpaid water bills is lifted (via Governor Murphy’s order) in June. Those with unpaid water bills will have to pay them, plus the penalties.”

Pabon then questioned if notices should be sent to those people so they know they will eventually have to pay these bills. 

Goldy responded, “We can investigate if we can alert people. It was a very tough year, and we did our best to mitigate the shortfall. The Parking Utility had a shortfall even though they were up in revenue.  In regard to the Harborside Utility, they generally get more revenue than anticipated. They have a very healthy fund balance and run very well. The city surplus stands at $10,352,000. The Water Utility was predicted to have $22 million, but they were short $500,000 or about 2%. The Parking Utility was $90,000 short in parking fees which is 10% of their budget. The property taxes were just over 100% collected because of tax appeals. We’ll have challenges for 2021 because of uncollected funds in 2020. UCC and the Fire Departments have a surplus, but that surplus money can only be spent in those departments. Our pension bills went up.” 

Goldy then spoke about Ordinance No. 1 – An ordinance to exceed the municipal budget appropriation limit and establish a cap bank. 

“There is a flat percentage that has to be banked and there is no limit on debt services. If we have to exceed the cap, we can use money from the previous year. We can bank money for future years. This number is calculated on paper.”

Ordinance No. 3 – An ordinance authorizing the acquisition of property for public use located on the corner of Amboy Avenue and Inslee Street, commonly known as 984 Amboy Avenue by exercise by the power of eminent domain. 

Fire Chief Mullen explained, “We are waiting to close on this property and need money. The building is falling down, and there is penalty on that property and eminent domain is needed to acquire it.”

Councilman Joel Pabon, who has a relative who lives near that property stated, “There are just walls and it’s a hangout and it’s very dangerous. With strong winds we’ve been having, I’m surprised the building is still standing. Code Enforcement or someone needs to knock it down.”

Mullen explained, “We can’t knock the building down until we own it. Lawyer William Opel, who was filling in for Law Director William Northgrave,  worked on getting us this property.”

Pabon questioned, “What is our liability if someone gets injured (because the building is unstable)?”

Interim Business Administrator Remsen suggested, “Maybe we can shore up the property.”

Council President Petrick spoke up, “The City Engineer has to declare the property as a hazard and has to give a notice to the owner first.”

Mullen said, “Both buildings on that corner are already labeled unsafe.”

Petrick then wondered, “We have to see if we may have to knock it down.”

City Engineer Ernest Feist spoke up via Zoom, “We’ll look at the property (for safety issues). This will give us leverage to move forward to a demolition.”

Mullen ended the conversation, “We will get quotes for both properties on Amboy Avenue.”

Interim B.A. Remsen then spoke about R-143-3/21 – Introduction of CY: 2021 Budget.

“We made this budget as tight as we can make it without layoffs, and it is based on revenues we will get. Department Heads will be making presentations. We didn’t fill all vacancies and we cannot break some contracts. People in different departments are cross trained.”

Council President Bill Petrick then asked, “Did anyone reach out to Congressman Pallone for help?”

Remsen responded, “We don’t know if we will get anything from the federal package.”

Mayor Helmin Caba came up to speak regarding this resolution, “The budget was presented to me on Day 1, and it would have been a large tax increase. I want to thank CFO Jill Goldy, B.A. Remsen, and the Department Heads for their work. We have trimmed the budget and have met with the county, state, and federal officials. There is a 1.7% tax increase over last year. I think there will be an amendment which will be great news for the entire city.”

Councilman Joel Pabon made a statement about R-144-3/21 – Authorizing emergency temporary appropriations to extend the CY: 2021 temporary budget in the amount of $243,000. Pabon suggested the council table this resolution.

Remsen then talked about R-145-3/21 – Adopting the information, technology, cyber policy for the city revised as of February 19, 2021.

“There is no deadline on this. You don’t have a cyber security policy and we need to have one in place. You can pull this resolution so everyone can have a good look at it.”

Pabon stated he didn’t have time to go over the backup material. 

Councilwoman Tejeda spoke up, “This resolution has everything a policy needs.”

Petrick then asked if we could have a presentation on the cyber policy by Perth Amboy IT Tech John Alleman.

Petrick then asked if there was anyone available to talk about R-149-3/21 – Authorizing initial review and approval of an application submitted by the Peruvian Civic Committee for the placement of a monument of INCA Garcilso DeLa Vega at the international park. 

Dalila Silva, Member of the INCA Garcilaso De La Vega Committee and Vice President of Solidaridad Peru Organization came up to the podium. “Peru is celebrating their 200-year Anniversary of Independence. This will be the only event of this kind. We would like to have it placed by our flag at the international park.”

Petrick responded, “It will have to go through the proper channels (Different Boards) before it comes back to us for a final decision to vote on it.”

Councilwoman Tejeda spoke up, “It is important for our future generations to know what other cultures were here.

Councilman Joel Pabon asked for an explanation for R-152-3/21 – Amending Resolution R-302-8/30 – Authorizing non-fair and open contract with Ecolsciences, Inc. as licensed site remediation professionals to conduct additional site investigation at the former municipal complex, 366 High Street, in an amount not to exceed $30,818.

B.A. Remsen replied, “We have to do this.”

Petrick then added, “It’s for the tanks.”

Tashi Vazquez from the Office of Economic and Community Development (OECD) came up and said, “We already did the tanks. Now, it’s for other contaminants based on the last investigation.”

City Clerk Victoria Kupsch spoke up, “We can get the last reports to the council on the remediation.”

Fire Chief Ed Mullen came up to speak about R-154-3/21 – A contract with Skylands Area Fire Equipment and Training LLC for firefighter turnout gear in an amount not to exceed $77,500.

“It’s a 5-year capital plan. It is to purchase 17-18 sets of turnout gear each year (boots, jackets, pants, suspenders, bailout harnesses). We are using the same company.”

B.A. Remsen then added, “This is catch-up gear. We are using the new washer and dryer for cleaning some of the gear.”

Mullen then spoke about R-155-3/21 – Unencumbering the Inter-Local service contract with the County of Middlesex for installation of a traffic control signal at the intersection of New Brunswick Avenue and Ogden Place in the amount of $150,000.

Mullen explained that the cost was reduced from the original resolution.

DPW Director Frank Hoffman joined via Zoom to explain R-156-3/21 – Awarding a 2-year contract to Cintas Corporation for uniform rental, purchasing and cleaning service for the Department of Public Works in accordance with Omni Partners commencing February 28, 2022 and terminating February 28, 2024 in a total amount not to exceed $77,900.

Hoffman stated, “If we sign up early, we can lock in the price.”

B.A. Remsen gave a brief explanation of R-157 and R-158. Involving the release of performance bonds to Duke Realty for certain lots and blocks on Riverview Drive. “Our engineers certified that their (Duke Realty) obligations were met.

Councilman Pabon questioned R-165-3/21 – Authorizing the payment to Peter J. King for legal services rendered in 2020 beyond the regular duties of the Director of Law in an amount not to exceed $128,873.14.

Pabon asked, “I see King’s breakdown, but some of these items are from 1½ years ago, and we can’t fight it, now.”

City Clerk Victoria Kupsch stated, “There were similar resolutions sent by King in the past (requesting payment for services rendered) which the council removed and now they are coming back (on the agenda).

B.A. Remsen then added, “I had a friend who would submit all of his bills at the end of the year. King (the prior Law Director) identified each case he worked on with the backup material. Bills should be submitted quarterly.”

Council President Petrick spoke up, “In the past, King would submit bills, but they were not itemized. We submitted the bills by King for work he did in the B.I.D. which we gave to the B.I.D.”

Public Portion: 

Resident and former councilman Ken Balut came up first, “The Mayor is the Police Director and we should know more details about the two suspended police officers and also about the tape (showing alleged ballot tampering). What’s going on with the Kushner properties, the YMCA contract, and problems with the first-time homebuyer programs. Grants in housing are given to city employees. You need to know about all your legal bills. Police reports on sexual harassment cases are not presented. There was one sexual harassment case settled for $150,000. I’m sure the lawyer from Northgrave’s law firm can go over some of these contracts. I heard that PARTNER was involved in the Johnstone Street House Contract.”

Resident and former councilman Fernando Irizarry came up next. He wanted to get an answer to Ordinance No. 2 – Handicapped parking spaces. He also had a question regarding R-156. “On the back material it says: Prince County School’s letterhead?” 

City Clerk Victoria Kupsch answered his question regarding handicapped parking permits, “There are over 700 permits (in Perth Amboy).”

Irizarry then mentioned that there are only 180 days before the council can put an ordinance on banning the sale of marijuana. “Time is running out.”

Council President Petrick then told Irizarry, “The reason the backup material for the resolutions has Prince County School letterhead on it is because this is a sample of what they want done in Perth Amboy.”

Irizarry said he felt more comfortable if it actually had Perth Amboy on it.

Irizarry continued to talk about the marijuana issue, “Our prior Law Director was supposed to prepare an ordinance regarding the sale of marijuana in the city and if you do nothing, you have to wait another 5 years to do anything about it.”

Petrick responded, “I sent information (about the marijuana issue) to the former Law Director Peter King, but we had to wait for the state to take action first. Now, Law Director William Northgrave will look at it. I know it is important for us not to have marijuana businesses open up by schools and religious organizations.”

Lawyer William Opel spoke up, “You would have a two-part ordinance. The city code and a zoning policy discussion. The Law Director and the Business Administrator would have to be involved. It would have to be opened up for public hearing.”

Councilman Joel Pabon then weighed in on the discussion, “Ocean Grove is a Christian town, and they don’t want anything to do with marijuana. Time is passing and we need to start acting on this.”

Remsen spoke up again to the council, “What would be your policy and intent. People are calling the city asking about selling marijuana. 50% of people in the city voted for recreational marijuana.”

Irizarry finished off his statement, “People voted to have it legalized, but not in their city.”

Petrick then stated, “A lot of people want it decriminalized.”

Resident Junior Iglesia came up next, “I am coming here as a concerned taxpayer. The average Perth Amboy homeowner pays $7,800 a year in property taxes. If we continue, it will take away the American Dream. If I own a home or I am renting it, we can’t operate the government with property tax increases. The majority of the city’s revenue is from property taxes and we can’t continue to increase it. 64% of homes are being rented and renters will bear the cost. A stimulus bill was just passed. Ask yourselves if the council can advocate for us. If not, then who will? We were told that the city has an A+ rating (by Standard and Poors).”

Council President Petrick responded, “As a landlord, you pass your cost to your renters unless you want to absorb the cost. You ran with the last mayor who wanted to raise taxes to 5%. One of our former B.A.’s Greg Fehrenbach was able to uplift our credit rating by managing our funds better. We kept the tax rate down for 3 consecutive years.”

Councilwoman Milady Tejeda spoke up, “Having an A+ rating does not mean we are in a strong position, because we are economically weak.”

Mayor Helmin Caba came up to the mic, “I agree the taxes are high. This goes back to the Vas administration who put us in bad debt. The tax increase was alarming, and we (the council) trimmed it to a 1.7% increase, but we have great news coming and I will be sitting down with each of you.”

Councilman Joel Pabon then spoke up to address the last resident’s concerns. “That speaker is asking us to take a look at the budget. Every resident has a right to plead with us to make no tax increase.”

Resident Stanley Sierakowski came up next and talked about the production of marijuana. “There will be workers with no benefits. They are going to have cheap labor and the product will be shipped outside of the city.” He then again questioned, “Why did Anchor Marine which purchased the Duane Marine property not pay taxes for 25 years? They owe the city close to $5 million. Nancy Martin from the Tax Department has the names and addresses of the owners. She had a fiduciary responsibility to inform the council of Anchor Marine not paying taxes. I am a very assertive person. Put money in escrow. Legally, that property is worth $6 million, and you may be able to get millions of dollars back.”

Resident Iris Rodriguez spoke next and was concerned, “People are able to talk for 10 minutes straight. You give them 3 minutes, and when they ask for an additional 2 minutes, you give it to them. You might as well let them go back to 5 minutes and that’s it. You should also see how marijuana legalization laws can help us out.”

Tashi Vazquez from the OECD (Office of Economic and Community Development) came up next to address the taxes and how it also can be a burden on renters. “Landlords can only increase rent by no more than 5%. Look on the city’s website about the control on rent increases. Renters have a voice.”

Resident Vince Mackiel came up next. He inquired if there are any updates on the bridge on Market Street near Elm Street. “There has been no work on that bridge for 3 years, and an update is needed. A lot of businesses, residents, and pedestrians are near and access this bridge. I’ve sent correspondence to the Mayor, the DOT (Department of Transportation) and other departments.”

Business Administrator Remsen told Mackiel that he would get more information to him.

Mackiel concluded, “The minutes for speakers should be returned to 5 minutes and ShopRite is signing people up for the Covid vaccines.”

The meeting was open to those on Zoom.

Resident Lisa Nanton was first to speak, “Today is International Women’s Day. I want to honor the two women on the council and this council is very diverse. It’s important to practice tolerance and patience. I am happy to report that during the public portion, all the women who spoke did so for 3 minutes or under.”

Nancy Martin from the Tax Collector’s Office spoke via Zoom, “I want to let everyone know that the water notices were sent out today and people can make partial payments. Regarding the Anchor Marine Property, after so many years, the property would go into foreclosure for not paying taxes.”

Council Comments:

Councilwoman Rose Morales and Councilman Joel Pabon had no comments.

Councilwoman Milady Tejeda wanted to thank all who spoke tonight and wished all a good evening.

Councilman B.J. Torres stated there are $500,000 tobacco deaths a year and none from cannabis. 

Council President Bill Petrick asked, “Were there any liens on Kushner’s property or any action taken? We need to be more aggressive, and if they don’t respond, we need to put a lien on all their property.”

Business Administrator Remsen responded, “Law Director William Northgrave is talking to representatives from Kushner’s properties.”

Joel Rosa who works in the mayor’s office came up to the mic regarding 500 High St. “Code Enforcement has spoken to the owner.”

Petrick replied, “That property is an eyesore, and it is next to the county park.”

Rosa then responded, “It is supposed to be renovated into luxury apartments.”

Code Enforcement Director Irving Lozada joined the discussion via Zoom. “In a few days, he and all necessary department heads will have a Zoom meeting with the owner of 500 High St.”

Petrick concluded the meeting by telling all to stay safe. “I’ll see you on Wednesday.”

The meeting adjourned 8:17 p.m. All council members were present.