City Council

COUNCIL CONFERENCE MEETING MINUTES MARCH 10, 2009 CITY HALL – 5:00 PM A Conference Meeting of the City Council of the City of Trenton, New Jersey, was held on the above date at 5:05 p.m. in the Council Conference Room, City Hall. The meeting was called to order by Council President Paul M. Pintella. Council President announced that adequate public notice had been provided to the public specifying the time and place for this meeting in accordance with the Open Public Meeting Act. FY 2008-2009 annual notice was mailed to the Times and the Trentonian Newspapers, posted on the first floor bulletin board in City Hall, and filed in the City Clerk’s Office on June 19, 2008 by Resolution No. 08-341. The agenda for this meeting was mailed, posted and filed on March 6, 2009. ROLL CALL: PRESENT: Messrs. Bethea, Coston, Ms. Lartigue, Messrs. Melone, Segura, Ms. Staton (arrived at 5:10 pm), Mr. Pintella – 7. PRESENTATION: 1. UPDATE ON WATER SALE – PETITION Appearance: Honorable Mayor Doug Palmer Mr. Edward McManimon Honorable Mayor Palmer read the following prepared statement: Tonight I come before you to move forward from where we are today with the petition process. If the petition to undo the outside water sale is not withdrawn, we are looking at a $20 million hole in our budget -and we will have no choice at this late date but to implement an extraordinary tax increase, regardless of what happens with the referendum. As I said last week, the issue is timing. There is not enough time now to do anything to fix this problem except to withdraw the petition. As you know, despite several discussions with Michael McGrath, the petition has not been withdrawn by at least four of the five petitioners. I believe it is important that we proceed with the process of establishing an approved budget. The deficit created by the petition requires us to put the $20 million we had anticipated from the water sale proceed back in the budget. In other words, we have no choice but to fill the $20 million gap that the petition has created. And we have no choice but to begin this process now. City Council Conference: Minutes March 10, 2009 1  The longer we wait, the worse the situation gets, because unless the process is started now, our tax bills will not go out in time. Then, without an approved budget and without tax bills on time, we will be unable to hold the tax sale, the proceeds of which are already in our budget. This will add another $11 million to our deficit. As you know, the sale of the outlying pipes of our water utility was planned years ago, long before the current national and state budget crises hit us. All misunderstandings aside, the plan for our water deal was always to hold on to our precious water rights, our filtration plant and reservoir, and the entire distribution system inside the city. Our plan has been to sell only the suburban pipes and tanks, which are so costly to maintain and repair. We are just about to finalize the sale with township and state approvals, enabling us to sell water in bulk to the same suburban customers we have today -but we will only have to send one bill. We will retire debt, focus maintenance and repair efforts in the City, and use proceeds from the sale to address our structural deficit. That was the plan. As you all know, 48 percent of our property owners "subsidize" the 52 percent of the property in Trenton that is tax exempt. We would have no deficit if we received our fair share of revenues from the 2.5 square miles of State property in Trenton. As you also know, we have long-term strategies to increase revenues by more than $30 million annually by developing the surface parking lots we own downtown, the Department of Corrections and Psychiatric Hospital properties in the West Ward, and other key mixed-use projects. The worldwide economic crisis, along with our increasing costs in pensions and benefits, this year combined with severe cuts in what was already inadequate state aid. These are the forces that created the $28 million hole in our budget. In this environment, I have done everything fiscally responsible and personally difficult that I could do, including layoffs and putting together this water sale that would provide the much-needed revenue to our City to keep us from having to add this burden to our already overburdened taxpayers. By making the budget cuts I have been discussing with you for more than a year, I proposed a balanced budget with a 9-cent tax increase in this most difficult year. However, tonight we have a different reality: Because the petition to block the water sale was not withdrawn, we must move forward to ensure that the deficit that the petition is pushing to $20 million does not explode to $31 million. As Mayor, I have no choice but to ask you to move the process forward tonight by supporting an amendment to the budget tonight, necessitated by this petition. Let me restate the timeline -and why we have no choice. If the petition is not withdrawn, the longer we wait, the worse it gets. City Council Conference: Minutes March 10, 2009 2  Whether or not the petition is determined to be valid -or even if it is eventually rejected in a referendum -there simply is not enough time to avoid a budget catastrophe, because our fiscal year ends June 30th• As I said before, even if the petition does end up with enough legitimate signatures, a special election, which I believe we would win, still would not leave enough time to approve the water deal by the date we must have an approved budget. Because of the petition, compared to the 9 cents tax increase I have proposed, the tax increase without the water deal jumps to $1.09. But it can get worse. If we wait, we will dig Trenton taxpayers $11 million deeper into the hole. The resulting total deficit of $31 million would all have to come from our property taxpayers -and it would all be payable in May. If Council does not amend the budget to increase the tax rate, then the State will have to set our tax rate for us. The problem with that, once again, is timing. The Department of Community Affairs has informed us that, while they would strike our tax rate, it would require a legal process that will take weeks. Once again, because we would not have time for a tax sale, we would be right back to that $1.64 increase -the worst-case scenario. To protect Trenton taxpayers as much as we can, I am asking City Council to pass a resolution to amend the budget so that we can begin the process of approving a balanced budget. Further delay will only add to the burden of our taxpayers. So, we did not choose this outcome. In fact, I believe we did everything we could do to avoid it. But the petitioners have taken the matter to this level and tonight, there is no other option. I have instructed my staff to try and talk reason and rationale with the petitioners -and they have. I pledge to continue to do that myself. So far, those efforts have not yielded results. In this case, the problem is that the result is a losing proposition for everyone. The petitioners need to ask themselves ... If they do not win the referendum, what have they won? They will only have added to a horrible economic crisis, made worse the burden of our taxpayers, and taken away the only option that our City could have to meet its financial obligation. Honorable Mayor Palmer also stated that no one wanted this City in this position. This was not about Doug Palmer, Mayor of Trenton this is about what will happen to the residents of Trenton. He asked people to speak with the petitioners and let them know their personal pain because of this petition. City Council Conference: Minutes March 10, 2009 3  He has agreed privately and now publicly to work out with City Council, Administration and the Committee on what the City will do going forward in the next three (3) to five (5) years. Honorable Mayor Palmer made the following two statements: • We are not selling the Trenton Water Works, we are selling our out side water pipes • Even if the Water Infrastructure is not sold we will still have a structural deficit Councilwoman Lartigue stated that residents in the West Ward simply do not understand what is going on with the water sale. Good factual information needs to go out. Mr. Edward McManimon gave Council a time line for the referendum: • Signatures certified on March 17, 2009 • The Petitioners have ten (10) days to withdraw the petition and/or correct deficiencies • An election can’t be held until forty (40) days after the ten (10) days • May 8, 2009 would be the earliest date to have an election • City Clerk has twenty (20) days to review new signatures • The Petitioners have ten (10) days to withdraw the revised petition - 40 days after that is when you can have an election • An election can not be held until sometime in June, 2009 Regardless of the outcome there will still be a $20 million deficit in the budget. Council made a decision to sell the water infrastructure in December, 2007. Mr. McManimon said that the Mayor’s plan was to use this money for a period of four or five years expecting to receive the same amount of money from the State of New Jersey the City had been receiving. Council President Pintella – Gave a brief summary of the situation – He stated that the original proposal for the budget was a 9 cents increase which included the sale of the outside water infrastructure. The new amendment to the budget is an increase of a $1.00 which would make the total increase a $1.09. That would make up the $20 million from the sale of the outside water infrastructure. Council President Pintella also asked when the tax bills would be sent out. Honorable Mayor Palmer stated that the City had to send the tax bills out by April 20, 2009 in order to have the Tax Sale to cover the $11 million gap. Mr. McManimon stated that he was asked to look into other options to help solve this problem. It was his opinion that there is no other way to satisfy the problem. City Council Conference: Minutes March 10, 2009 4  Council President Pintella asked Acting City Clerk, Mrs. Juanita M. Joyner to clarify the misunderstanding regarding the petition information being leaked out. Mrs. Joyner read a letter she sent to City Council informing them of the petition and the certifying process. She stated that copies of the petition had not been given to any member of City Council. She also stated that the petition will be certified by March 17, 2009. The petition is a public document and is available for review in the City Clerk’s Office under the OPRA Law. Honorable Mayor Palmer asked if a person could remove their name from the petition if they wish to. Mr. Joseph Alacqua, Special Counsel stated that once the petition had been submitted names could not be removed. Mr. Gonzalez stated that City Council had to adopt the City Budget in order for the tax bills to be mail by April 20, 2009. Council has to complete all of their budget amendments by March 19, 2009 and advertise them and hold a public hearing by March 26, 2009 in order to approve the budget by April 9, 2009. Honorable Mayor Palmer commended City Council for the way they handled the water sale situation. Councilwoman Lartigue stated that she did not want to sell the water infrastructure. She knows she has no choice but she does not want to sell. PRESENTATION: 2. SDH Associates Power Point Presentation: Appearance: Mr. Samuel Hart, Managing Partner Mr. Tim Lee, Micro Technology Services Mr. Samuel Hart, Managing Partner with SDH Associates Training and Consulting Company provides training on school violence and gang problems. Mr. Hart thanked City Council for giving him the opportunity to come before them and make a presentation on the Panic Button system. Mr. Hart distributed a pack of information that included the following: • Biography of the Founder • School Violence Statistics • Grant Funding Information • Names of clients already using system • Micro Technology Services, Inc brochure City Council Conference: Minutes March 10, 2009 5  Mr. Tim Lee, Micro Technology Services, Dallas, Texas, gave a fifteen minute presentation on aspects of the system. • uses existing network of company • duress button for life threatening situations • ways to set up the system • emergency notification • weather updates • setup by level of emergency • system cost A detailed discussion was followed by a question and answer period. Council recessed at 6:58 pm and reconvened in open session at 7:05 pm. EXECUTIVE SESSION: (Council went into Executive Session at 7:08 pm) Adoption of the following resolution to go into Executive Session was moved by Councilwoman Lartigue, Seconded by Councilwoman Staton and carried by vote of Council. Ayes: Messrs. Bethea, Coston, Ms. Lartigue, Messrs. Melone and Segura, Ms. Staton and Mr. Pintella - 7 RESOLUTION AUTHORIZING EXECUTIVE SESSION OF THE CITY COUNCIL TO PERMIT DISCUSSION OF PENDING LITIGATION WHEREAS, the City Council deems it necessary and essential to conduct a discussion concerning litigation, specifically the case of Virginia Council v. City of Trenton, Docket No. CSVLT 00878-2008S; and WHEREAS, the public disclosure of such discussion will be contrary to the interest of the City of Trenton and will not permit the fullest view of said matters; now therefore be it RESOLVED by the City Council of the City of Trenton that a discussion be held on March 10, 2009 at or about 5:00 p.m. in the Council Conference Rood at which session the public will be excluded pending the discussion of said matters only. The public shall be informed of the determination of the City Council with respect to the final disposition of said pending proceedings, which final disposition shall be memorialized appropriately and adopted at a public meeting as soon as practicable. Council reconvened in open session at 7:18 p.m. All members were present. City Council Conference: Minutes March 10, 2009 6 EXECUTIVE SESSION: (Council went into Executive Session at 7:22 pm) Adoption of the following resolution to go into Executive Session was moved by Councilman Pintella, Seconded by Councilwoman Staton and carried by vote of Council. Ayes: Messrs. Bethea, Coston, Ms. Lartigue, Messrs. Melone and Segura, Ms. Staton and Mr. Pintella - 7 RESOLUTION TO GO INTO EXECUTIVE SESSION BE IT RESOLVED, that pursuant to N.J.S.A. 10:4-12 et seq. the public is hereby excluded from the following discussions; involving the employment, appointment, termination of employment, terms and conditions of employment, evaluation of the performance of, promotion or disciplining of any specific prospective public officer or employee or current public officer or employee employed or appointed by the public body, unless all the individual employees or appointees whose rights could be adversely request in writing that such matter or matters be discussed at a public meeting. BE IT FURTHER RESOLVED, that the contents of these discussions will be disclosed to the public when deemed no longer confidential. Council reconvened in open session at 7:47 pm. Workshop Discussion on the Role, Responsibility and authority of the following: City Council City Council President City Clerk Aide to Council Councilwoman Lartigue asked Mr. Joseph Alacqua, Special Counsel to give a summary on the above subject. Mr. Lartigue also asked to have further discussion on the subject in the near future. Council President Pintella asked if anyone wished to speak to the subject of the City Budget. Bea Perry, 26 Sylvester Avenue - Spoke on the budget and asked for clarification on items. No one else appeared to speak nor were protests filed with the City Clerk. City Council Conference: Minutes March 10, 2009 7 PRESENTATION: 3. Court Procedures: Appearance: Judge Sancinito Judge Sancinito was invited by the City Clerk on behalf of City Council to appear before them. Judge Sancinito made a presentation and distributed information on the Trenton Municipal Court operations that included the following: • Structure of the New Jersey Courts • Case management • Complaints filed on various crimes • Backlog information • Collection of funds and how it is used A detailed discussion was followed by a question and answer period. PUBLIC COMMENTS: Dion Clark, 323 Walnut Avenue – Spoke about the kids that threw a poodle in the yard with a pit bull; wanted to know if the parents of the children were being investigated. Wendy Dean, 859 E. State Street - Read a written statement; unhappy about Judge Sancinito’s presentation. CIVIC MATTERS: Councilman Coston – Distributed drafts of two resolutions for discussion and approval by City Council. A detailed discussion by City Council followed. ADOPTION OF RESOLUTION Motion was made by Councilman Coston, seconded by Councilman Melone, to adopt the following resolutions by vote of City Council: Ayes: Messrs. Bethea, Coston, Ms. Lartigue, Mr. Melone, Ms. Staton and Mr. Pintella - 6 Absent: Mr. Segura - 1 1. RESOLUTION NO. 09-101 - RESOLUTION IN SUPPORT OF UTILIZING THE PROCEEDS FROM THE TRENTON WATER WORKS SALE TO NEW JERSEY AMERICAN WATER TOWARDS TRENTON WATER WORKS BONDS (Sponsored by Mr. Coston) City Council Conference: Minutes March 10, 2009 8  3. RESOLUTION NO. 09-102 - RESOLUTION IN SUPPORT OF MAINTAINING OWNERSHIP OF THE TRENTON WATER WORKS’ TRENTON INFRASTRUCTURE (Sponsored by Mr. Coston) The meeting adjourned at 9:48 p.m. Respectfully submitted ___________________________ __________________________ PAUL M. PINTELLA JUANITA M. JOYNER CITY COUNCIL PRESIDENT ACTING CITY CLERK City Council Conference: Minutes March 10, 2009 9