January 14 Town Council meeting

The council majority declined to second a motion to introduce my proposed ordinance governing insurance procurement at the January 14, 2014, meeting, the first time in years that any proposed ordinance on the agenda has failed to continue to consideration by the council and public. Earlier in the meeting a council majority also declined to second the introduction of a resolution to investigate procurement of police weapons and ammunition.

In addition, council approved proposals to fund $132,000 in successful property tax appeals and potentially borrow an additional $1 million for future refunds, pay for $268,000 in environmental remediation at town-owned locations, fund the budget for the Downtown West Orange Alliance, review the 2012 independent audit, and complete year-end financial housekeeping to close out the 2013 budget and spending.

The meeting agendas and related materials are here. Video of the meeting – downloadable and indexed to quickly find selected issues – is here.

My proposed ordinance was designed to increase competition and transparency in purchasing the town’s insurance coverage and related consulting/brokerage services. It was based on model legislation developed by Citizens Campaign, a not-profit focused on improving New Jersey government, and adopted by dozens of municipalities and school districts around the state to significant savings.

In 2011-13, West Orange indirectly paid its insurance consultant/broker nearly $1.1 million in commissions. Citizens Campaign said in a 2012 news release that its ordinance has saved government entities more than $22 million -- including $10.6 million for Camden over two years and $5 million in one year for the city of Perth Amboy and its school district. Fairview Insurance of Verona, which has been our town’s broker since before the turn of the century, reduced its fee for health insurance coverage for Hoboken by a third – saving that city $120,000 -- after this ordinance was adopted, according to a letter from the mayor to the council there. The state comptroller was quoted in The Star-Ledger last year saying municipalities and schools would save an estimated $200 million statewide by adopting the model ordinance.

I made the motion to introduce the proposal. Before the motion had an opportunity for a second, Business Administrator Jack Sayers interrupted to state the administration’s opposition to the legislation. A lengthy discussion, consisting primarily of Mr. Sayers’ assertions in opposition and my explanations of the legislation and its potential benefits, ensued. Assistant Town Attorney Ken Kayser, Council President Susan McCartney and Councilman Victor Cirilo also interjected their thoughts and opinions, and  the discussion became heated at times. At one point, Mr. Sayers said he had first reviewed the proposal that morning – which I found amazing since I had submitted the legislation in November. The 24-minute video excerpt is here.

Ultimately, none of the four council members responded to the clerk’s request for a second – preventing the proposal from being introduced on “first reading,” which would have allowed council members and the public time to research and consider the issue before a second “reading” and vote at the January 28 council meeting. This failure to second a motion for an ordinance has not happened since I joined the council in November 2010 – and probably for more than two years further that I can recall from a close following of the council meetings. 

In other business, council approved funding another $132,169 successful property tax appeals, continuing a trend from last year. In addition, the council approved the administration request to potentially borrow $1 million to fund future tax appeals – on top of receiving council approval to borrow $3.35 million in 2013 for tax appeals. The town paid out more than $3.5 million last year.

Another contentious issue was the administration’s request for council approval for a two-step research project to investigate the vendors and market for police firearms and ammunition to update the specifications and standards for procurement. Areas of study included “smart gun” technology, the capability of vendors to have efficient buyback campaigns to minimize second-hand sales in the private market, vendors that equip all their firearms with trigger locks and vendor commitment to “minimizing the ‘arms race’ between law enforcement and civilians.”

The resolution was submitted to the administration by West Orange resident Rabbi Elliott Tepperman of Bnai Keshet Synagogue in Montclair. He and West Orange resident and firearms instructor Alexander Roubian engaged in a spirited debate during Public Comment and later when the council considered the resolution. I had asked the administration questions about the issue; the police department’s answers indicated:

- It had no current standards and specifications for firearms, contrary to statements in the resolution.

- It knew of no other participants in the study, also contradicting the resolution.

- It planned its next purchase of firearms in 5-7 years.

When the resolution came to a vote, Council President McCartney’s motion to approve did not receive a second. It’s highly unusual for resolutions to not receive a second, although several of my motions from the floor have not received seconds.

Council approved two proposals to hire engineering firms for environmental remediation at five town properties, including one to Matrix New World of Florham Park for three locations:

- Fire station, 415 Valley Road.

- First Aid Squad, 25 Mount Pleasant Place.

- Dogwood Pump Station, 794 Northfield Avenue.

The firm was the highest of the three lowest proposals at $41,140 ($670 and $340 more than the lower proposals), but the administration said New World’s bid was “more inclusive and provided additional services” than the two other bidders.

Council also approved the administration’s request to award T&M Associates of Middletown $226,850 – the lowest of three proposals -- for work at:

- The former public works garage, 6-8 Lindsley Avenue.

- Fire station, 280 Pleasant Valley Way.

Much of this work has lingered since late 2012, when the administration withdrew a proposed resolution that would have provided an apparent no-bid contract to Birdsall Services Group for $316,270 http://bit.ly/Kg9CT8. The firm and several of its employees were indicted for an alleged long-running and wide-ranging scheme to evade political-contribution laws to gain more public business in New Jersey. The company entered bankruptcy liquidation, and its assets were sold.

Council also considered and approved the 2014 proposed budget of the Downtown West Orange Alliance, which manages the town’s special improvement district to promote properties and businesses along Main Street and Valley Road. The budget requires the town to fund $60,809 of the $220,000 budget.

- The alliance is budgeting $105,000 from property owners in the special improvement district.

- Executive Director Megan Brill reported the alliance reduced its 2014 budget $20,000 from 2013. A review of budget statements shows the alliance eliminating $28,300 of its surplus (also called fund balance in the budget) from last year to the 2014 budget – indicating that without this accounting entry the 2014 budget actually increased by $8,300, all else being equal. Ms. Brill said the alliance had not spent all of its budget in recent years -- documents indicate the alliance spent only $173,514, or 72%, of its $240,000 budget last year -- leading to the budget reduction this year. I suggested if this persists that the alliance consider reducing its revenue requests from property owners and the town.

- The budget includes $15,000 for West Orange Historian Joe Fagan, who will host a new public access television show to promote economic development and business retention. When I asked about traditional economic development efforts such as marketing to real estate brokers and new tenants, the answer was that other areas, especially relations with and services to existing merchants, required improvement first. The alliance has developed a new logo and a program to upgrade windows of vacant storefronts – 41 of 252, or 16%, are empty, according to the alliance – that include blow-ups of historical photographs and enhanced “for rent” signs.

- The alliance is also promoting the Shop West Orange card, which directs vendor discounts to property taxes or cash rebates.

- The alliance spent $5,000 last year and budgeted an additional $5,000 for legal fees this year for litigation related to a complaint from an unsuccessful candidate for the alliance executive director opening last year. Alliance officials declined to discuss the matter.

- The alliance used less than $8,000 of its $20,000 2013 budget for a part-time maintenance worker. Ms. Brill said the alliance planned to make more use of the worker and maintenance resources this year.

- The alliance reduced its spending on 2013 holiday decorations from $15,000 to $7,500, moving the balance to other priority areas.  

Other agenda items approved by the council include:

- Renewal of shared services contracts to provide Essex Fells and North Caldwell with animal control services.

- Renewal of a three-year contract to provide health officer services to Essex Fells.

- Authorization of a temporary 2014 budget.

- Cancellation of 2013 budget appropriations to maximize the surplus from unspent funds as well as transfers among budget accounts to match with spending changes from those projected in the budget.

- Certification of the annual 2012 audit and review of the auditor’s findings that require corrective action. Chief Financial Officer John Gross said he expects one of the flagged items, a outstanding grant first noted in 2007, to be settled this year. Mr. Gross said the town had missed the audit filing deadline last year because of delays related to upgrading technology. He said the delay carried no negative regulatory impact and is unlikely to be repeated this year.

A resolution regarding the boarding and padlocking the former Select-O Flash building on Central Avenue as abandoned and unsafe, with the costs forming a lien against the property, was withdrawn by the administration because it didn’t yet have an accurate cost of its action.

If you’d like to contact the council with your thoughts on any of these issues, please send an e-mail to council@westorange.org or call 973.325.4155 to leave a message.

I’m a West Orange Township councilman since 2010, reachable at jkrakoviak@westorange.org. I'm a business communications consultant in my spare time.