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Home My Public Portal About1997/09/03 A Special Meeting was held by the Mayor and Council of the Borough of Carteret on Wednesday, September 3, 1997, 6:00 P.M., Municipal Court/Police Facility, 230 Roosevelt Avenue, Carteret, New Jersey. Upon individual roll call, the following were noted present: Mayor Peter 1. Sica Councilmember Bialowarczuk " " F ailace " " Fazekas " " Feingold " " Gutowski Noted absent was Councilman DuPont. Also noted present was Patrick DeBlasio and Borough Attorney Craig Coughlin. Mailed to The Home News & Tribune, The Star Ledger, and posted on the bulletin board on August 29, 1997 The purpose of this meeting was to discuss the Middlesex County Improvement Authority 1997 Capital Equipment Lease Program, the acquisition of a Fire Truck and any other business that may come before the Council. Formal action may be taken. Mr. DeBlasio gave everyone a copy of a letter that was provided rrom Wellington Firm, which they had all received a copy of already. He also prepared a potential debt service schedule of what their debt would be like if they go into this program. He said that what the Middlesex County Improvement Authority does is they collate a whole bunch of debts rrom all the towns and ......(inaudible)....what they do is they combine all the debts and they go out and do all the bonding, and they pass the cost on to the towns by percentage of the debt that they borrow, so in other words, ifwe're going to go out for a $500,000.00 fire truck issue, and they have $10,000,000.00 of total debt, they'll pass along the cost to the town on a percentage of $500,000.00 divided by ten million. He said that the purpose of them doing this is on the rate of Triple A, the bonds are guaranteed by the County itself and instead of all of the individual towns going out and getting bonding attorneys and incurring all the debts, they just hire one bonding attorney and basically based on their past history they claim to have better rates, lower interest rates for a town to borrow. He said that it's been in existence for quite a few years and they've never really used them before because in the past they've fully funded their debts, they used the money out of their capital account, and he understands that the fire truck is going to run about $650,000.00. He said that what they are looking to do is possibly borrow $50Ó,000.00 rrom the MCIA and either funding the balance themselves, $150,000.00 out of their 1. SEl'TØffiER 3, 1997 SPECIAL MEETING Septenber 3, 1997 ROLL CALL STATEMENl' OF MEETING NOTICE PURPOSE OF MEETING DISCUSSIOO SEPTEMBER 3, 1997 SPECIAL MEETING -Continued Capital Improvement Fund or possibly getting it out of the UEZ funds. He said that it's really a lease purchase agreement, the lease payments will be over ten year period which is the life of the truck. He said that they are really not sure if the principal and interest payments will start in 1998 or start of 1999, it depends on when they go out and do the bonding, but basically they told him that it would start in 1999. He said that he was told that the bottom market runs about four and a half percent right now, and that is why he gave them a print out, amortization schedule of four and a half and five percent to get an idea of what the debt service will be if they do go this course, this route. He said that if anyone has any questions that he can read out some numbers for them just to let them know where they stand in their Capital Fund. He said that right now in their Capital Improvement Fund they have about $200,00000, and they have a fund balance in their Capital fund of $600,000.00 which also can be spent, and they also have funds available in their Sewer Account which can't be spent for this fire truck. He said that this is one alternative verses the Borough of Carteret going out and bonding. The Mayor asked what was the interest the last time on the bond..... Mr. DeBlasio said that the last time they had an issue in 1995 which was about five and a half percent. He said that the issue in 1995 was for 3.6 million dollars. Councilman Failace said that he thinks that is where the difference is, on a smaller issue it's probably a higher rate. Mr. DeBlasio said that a smaller issue is not really worth it for Carteret for bonding. He said that what a lot of accounts do is they take this small issue and you can take one year notes and whatever the market bares or calls for, you can pay of these one year notes as they go along and then eventually your going to have to bond it or pay this off in five years because then in six years you have to go into permanent financing. He said that this is another option and this maybe less expensive. He said that they have never tried this. He said that the person from Wellington who's on this letterhead is more than willing to come in and speak to the Council. The Mayor said that this is only for ten years and they can theoretically bond it for twenty years if they really wanted to. Mr. DeBlasio said that they can bond it for twenty years. The Mayor said that they know that the fire truck will be good for twenty years because the one they have is twenty-three years old. Mr. DeBlasio said that through the Middlesex County Improvement Authority they have certain life on certain equipment, and they poll that this calls for ten years only. The Mayor said that the payment is going to be a lot steeper. Mr. DeBlasio said they can do a combination of things, too. He said that they can go in for a less debt if they want to, they don't have to go in for a full 2. $500,000.00 and use some of their own money. He said that they only came up with the $500,000.00 because they thought that this would be a good number to start with. He said that it also says that if they get funds rrom the UEZ .... (inaudible).... suppose they get a quarter million through UEZ or any other source, the balance of this money, the $500,000.00, if they use only $250,000.00 through the Middlesex County Improvement Authority, then all of $250,000.00 will be left in there account and it would be banked, and they can use all that money' to buy ten year equipment or they can use that money to payoff the debt service because more than likely it's not going to come out to be exactly $500,000.00, it may come out to be $480,000.00. Councilman Failace asked if it's going to be $500,000.00 whether they need the full $500,000.00 or not. Mr. DeBlasio said that was correct. CouncilmaÍl Failace said that they have the option of paying down the debt or picking up some other ten year equipment. He asked whether or not it can be more than ten year equipment. Mr. DeBlasio said that he wasn't sure. Council President Gutowski spoke but was inaudible. Mr. DeBlasio responded to what Council President Gutowski was asking but was inaudible. . Borough Attorney Craig Coughlin asked if they can bundle a bunch of projects buy bonding.....(inaudible) Mr. DeBlasio said yes, that at this point and time they solicited towns for quotes back in January, February and March of this year, so right now they are ready to bond. He said that at this point and time he doesn't think that they have the ability to add additional equipment into this $500,000.00 issue, but ifthey want to do that they can do that next year. Borough Attorney Coughlin asked if they could do that through the MCIA. He also asked if they wanted to do it independently could they do ........(inaudible)...... bonding down the road Mr. DeBlasio said yes. The Mayor said that they could theoretically take out a one year note, a bonding anticipation note for $500,000.00..... Mr. DeBlasio spoke but was inaudible. The Mayor suggested that they call in Cheryl and have a talk with her and see what their experiences and their interest rates are because it doesn't explain it in the letter, and what part of, he's sure that a portion of whatever the bonding attorneys get our portion is going to get paid..... 3. SEl'TØffiER 3, 1997 SPECIAL MEETING -continued SEPTEMBER 3, 1997 SPECIAL MEETING -continued Mr. DeBlasio spoke but was inaudible. The Mayor said that is what they want to see because you can get bonding attorneys that work cheap and YON can get bonding attorneys that work expensive, and they want to know what percentage, if they go out and float a ten million dollar bond and the bonding attorney is charging $100,00000 to float this bond, then their expense is ten thousand. He said that ifthey turned around and got this bond on an anticipation note, then their expense may only be two or three thousand, so if they do that for one year and they have an auxiliary fund come in, per say Bellmead purchasing their property, then it may be prudent for them to say, well wait a minute, lets take a bond on an anticipation note pay the $4,000.00 for our bonding attorney rather than $10,000.00 for their bonding attorney and when this thing happens, do it and only pay interest for one year because interest on a half million dollars, another half of percent it's not a lot of money. He said that they have to have this lady in here so that she can explain to them how and what they charge for bonding. He said that then they have to take into consideration what bonding people they are using and get a comparative price, what the interest rates are and whether they think they can get an anticipation note. He said that anticipation notes are fairly cheap. Mr DeBlasio said that an anticipation note is less expensive than a full bond. The Mayor said that he thinks that if they get her in here they can take a look at it. He said that even if they save a $1,000.00 doing it this way, then they'll do it this way and if they save a $1,000.00 doing it their way then they'll do it their way because a $1,000.00 is a $1,000.00, a dollar is a dollar and it's prudent on their part to save that dollar if it's at all possible. He told Mr. DeBlasio to set up a meeting with this lady and they'll take it rrom there. Mr DeBlasio suggested that they go through with the first reading which is scheduled for tomorrow....... if they miss this first reading then there is a chance that they won't get into this program if it turns out to be ......... The Mayor said that he didn't have a problem with the first reading. Councilman Failace told them to get it ready..... The Mayor said that they can always back out. Mr. DeBlasio asked the Mayor if the meeting should be schedule in the evening. The Mayor said yes and that it needs to be scheduled between the first and second meeting so that they can make a determination. He told Mr. DeBlasio that in the interim he wants him to contact other bonding firms and see what it would cost them for a bond anticipation note of a half million, what they feel the interest rate will come in at, and make some calls to the banks they deal with and ask them what they're going to give us a bond anticipation for. 4. Councilman Failace asked the Mayor what about the local banks they deal with. The Mayor told him that was what he just asked Mr. DeBlasio to do. Councilman Failace said that he thought he meant outside banks. The Mayor said that if they could get it cheaper out side then they would do that too. The Clerk asked if there was any other business to discuss before meeting is adjourned. Council President Gutowski asked the Mayor if Sunday at 3:00 P.M. at the Recreational Center is okay. The Mayor said it was okay. Council President Gutowski said that Ronna rrom the library called him today in regards to Ethnic Day. He said that she told him that she was going to need help transporting things to the park that day. He said that evidently they have supplied people that...... The Mayor said that they do have guys in the park that day. Council President Gutowski said that William Kolibas has told him that he doesn't have enough help in the park that day. The Mayor said that they will have to try and get it there some other way. He said that they either have to bring someone else in or the Library Board will have to hire someone to do it. He said that t!Ie Library Board has plenty of money and that they did this last year because they had extra men and ifthis year they don't then they can't do it. Council President Gutowski asked why was there a building permit issued for the tower. He said that they are ready to start construction this Thursday, and it hasn't even come before the Zoning Board. The Mayor said that he didn't give it to them. Council President Gutowski said that he didn't say that, but did he have any idea who did. The Mayor said that he's sure that they can put in the foundation at their own risk, and if the town didn't give the approval then they lost the foundation. Council President Gutowski asked if a permit could be issued without Zoning Board approval. Attorney Craig CougWin said he would look at it. He asked if they had circled it or were they doing it at their own peril. 5. SEPTEMBER 3, 1997 SPECIAL MEETING -continued SEPTEMBER 3, 1997 SPECIAL MEETING -continued Council President Gutowski said that they were ready to put the tower and everything up, they're ready to go. The Mayor said that they are doing it at their own risk. He said that he's sure that their attorney has advised them so. Council President Gutowski said that they didn't understand how they got it either. Their attorney said..... there was no approval, but they got the permit and they're going to build it, but they don't know why. Borough Attorney Craig CougWin said that there was one other thing. He said that Bob Hedesh received a package rrom Bellmead today.... Bob Hedesh said that it was a concept agreement, project concept plan for the project Bellmead .....(inaudible)...was delivered to him today. The Mayor said yes that it's the Turnpike. Bob Hedesh said you have thirty (30) days to react to it. He said that he called and asked why it was delivered to him because ....(inaudible).... the Mayor got one in the mail too..... The Mayor said yes, but he didn't have time to go and see it. Bob Hedesh spoke but was inaudible The Mayor began to review the plan. ADJOURNED There being no further business or discussion, upon MMS&C, by Councilmembers Gutowski and Feingold and unanimous affirmative vote of the five (5) Councilmembers present, the meeting adjourned at approximately 6:25 P.M Respectfully submitted, ~LÆ~'~/""~Y KÁTHLEEN M BAIiNE'P,~iCMG-, Municipal Clerk KMB/ht --------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------- 6. A Special Meeting was held by the Mayor and Council of the Borough of Carteret on September 3, 1997, 6:30 P.M., Municipal Court, Police Facility, 230 Roosevelt Avenue, Carteret, New Jersey. The following were noted present: Mayor Peter 1. Sica Councilmember Bialowarczuk " Failace " Fazekas " Feingold " Gutowski Noted absent was Councilmember John DuPont. Also noted present was Borough Attorney Craig Coughlin and Robert Hedesh Esq. Mailed to The Home News & Tribune, The Star Ledger and posted on the bulletin board on August 29, 1997. Disciplinary Hearing and Grievances. A Closed Session may be held. Formal action mayor may not be taken. Mayor Sica: We have the first one..........Mr. Kolibas against Mr. Surick. Are either gentlemen here? Mr. Surick are you ready tonight? Mr Kolibas? William Kolibas Jr.: No Mayor. Paul is on vacation so at this time he would ask for a postponement until Paul gets back. Mayor Sica: Paul is the union representative? William Kolibas Jr.: Yes Mayor Sica: I don't think you have much choice. Attorney CougWin: He thinks under the Administrative Code he has a right to representation.........Is this the first adjournment, Thursday? William Kolibas Jr.: It is the second. 1 SEPfEMBæ 3, 1997 SPEX;lAL MEEIT.NG September 3, 1997 PRESENT SfATEMENl' OF MEEIT.NG OOITœ P\JRl'OSE OF WE MEEIT.NG DISOJSSlOO SEJ7fEMBER 3, 1997 DISOJSSlOO <.nmNUFD Councilmember Failace: It is the second request. We gave him..... Attorney Coughlin: We gave him a request for an adjournment. He thinks if you do grant it you may want to make sure that the next notice has gone.. ... ...... there is other issues that probably need to be addressed.........I know Mr. Kolibas has counsel with regards to criminal matters that are pending...... we don't need to address those right now, but if we are going to adjourn it for the purpose of having representation present I think you need to address two (2) questions first....... .make sure there is notice with sufficient time and instruct him that if Mr. Mercatanti can't be there he needs to send someone else to represent him. You got a representation, we don't have to give endless number of chances to Mr. Mercatanti to be available and secondly I think you need to then address the question, the charges that relate, out of the same circumstance with regard to Mr. Surick and whether you want to hear those tonight. Because those other charges were against Mr. Surick, but they are unrelated. Mayor Sica: Well, I think in the interest of fairness, you can't hear either one. If you are not going to hear one you are not going to hear the other. Attorney Coughlin: I would agree, but I just think it is a question that you have to address. Mayor Sica: I think it goes hand in hand and if you granted postponement until Mr. Mercatanti could get here then we also have to adjourn the other set of charges. Councilmember Failace: Are we saymg that this IS the last adjournment basically. Mayor Sica: Put it down. We sent Mr. Mercatanti a next date and tell him there can be no adjournment. He thinks (inaudible) the union (inaudible). Mr. Hedesh. Attorney Hedesh: Bob Hedesh. I represent Mr. Kolibas in the relationship to the criminal matter alone and not before this board as we all know It is my position that by conducting this hearing Mr. Kolibas obviously cannot testify in any way because he has Fifth Amendment Rights to reserve under the criminal matter. My advice would be to him under his criminal matter to not make any statements and obviously not testify in any way before this body because the tape could be subpoenaed. Tape would be in Closed Session certainly would be discoverable within the criminal matter. To pursue it they talked about me doing it and pursuant to the fact that Mr Kolibas would then have to retain a (inaudible) counsel to go in and file an order of statements preceeding , pending the criminal matter. I'm saying I'm asking that, so that additonal counsel fees are not incurred with a third attorney. (Inaudible) because Mr. Mckenzie obviously can't move before Superior Court because he is not a licensed attorney, that the matter be stated in regards to the criminal matter because they are arising rrom the same set of circumstances. 2 ....,....' SEPI»lBæ 3, 1997 Attorney Hedesh continued: They are arising rrom the same set of facts, they are arising involving the same witnesses until the criminal matter is resolved then the matter can be heard. DISOJSSlOO Continued Councilmember Failace: What is the date? Attorney Hedesh: It is going to be the tenth of July. There is a significant question and that is another matter that needs to be addressed because, there is a significant question regarding to some Discovery that is outstanding in this matter, but...... Attorney Coughlin: So it is not likely they'll go forward. Attorney Hedesh: It may not go forward on that day. Mayor Sica: Then we have to (inaudible). Attorney Hedesh: Obviously all.. ...1 can't speak for Mr. Kolibas in regard to this matter but there would certainly be my advice in which raised in this time period which restricts us . My advice to him in this crimial matter would be not to.. Mayor Sica: I am going to entertain a motion rrom the Council to adjourn this until such time which the criminal proceedings is completed. At that point in time then a notice to Mr. Mercatanti that the date is set, we will set the date at that time and it cannot be adjourned any further. Councilmember Fazekas: If we could. .....is there criminal charges pending with regard to Mr. Surick. Bob Feeney: Mr Surick tonight, the Disciplinary Hearing has nothing to do with the case that your postponing because his labor guy is not here. Attorney Coughlin: I thought there were two (2) sets of charges against Mr. Surick. One unrelated, one related. Bob Feeney: In the notice we got that was issued, the initial notice of Discipline has nothing to do with the case (inaudible). Attorney Coughlin: We are not adjourning that one. Bob Feeney: No, well there was something that somebody said they wanted to postpone all of them. Mayor Sica: No, we didn't say both of them. We wanted to postpone this pending the outcome of the other one. Bob Feeney: Yea, because Paul is not here right? Mayor Sica: Right. 3 ~lPll'l"lBER 3, 1997 DIsaJSSlOO Contimed Motion made and second Council Polled Motion made to go into Closed Session Motion Second Council Polled Bob Feeney: What he said is definitely true that nothing is (inaudible). Mayor Sica: I made a motion. Municipal Clerk: Second. Councilmembers Gutowski and Failace: Second. Mayor Sica: Poll. Municipal Cerk: Bialowarczuk, yes, Failace, yes, Fazekas, yes, Feingold, yes, (There was static on the transcriber and if there was anyone else polled, it was not audible). Mayor Sica: The second one was a Disciplinary Notice against Mr. Surick. Attorney Coughlin: Yes. Mayor Sica Signed by myself, I will excuse myself from any votes but he will conduct the meeting. I signed this because it was my understanding that Ms. Bialowarczuk wanted to sign it and she was advised by the Borough Attorney that he should sign the charge. I so did Are you ready to proceed with the next one Ted? Ted Surick: Yes. Mayor Sica: Do you want Closed Session or Open Session. Ted Surick: Closed Session. Mayor Sica: Everybody out. Mun:cipal Clerk: Motion to go into Closed. Councilmember Gutowski: Motion to go into Closed. Councilmember Failace: Second. Municipal Clerk: Bialowarczuk, yes, Failace, yes, Fazekas, yes, Feingold, yes, Gutowski, yes. Attorney Coughlin: Is Councilwoman Bialowarczuk leaving? Mayor Sica: She is going to have to leave too. Councilmember Bialowarczuk: I have to leave? Mayor Sica: Yes. Attorney Coughlin: You are a witness aren't you? Mayor Sica: We got to call you in to discuss this with you. 4 SEPfEMBæ 3. 1997 Attorney Coughlin: Are you a witness? DIsaJSSlOO Councilmember Bialowarczuk: You are the Borough Attorney. I am a witness, right? Attorney CougWin: To my knowledge you don't have a direct......you have second hand information with regard to the dessemination of the documents. Right. Councilmember Bialowarczuk: (Inaudible) came to my house to tell me he saw them. Attorney Coughlin: Maybe you would rather hear rrom him personal and who has been noticed to be here, correct? Mayor Sica: Well. then she is not going to be a witness. Attorney Coughlin But it seems to me to participate in the vote would call into question the impartiality, of.... Councilmember Bialowarczuk: (Inaudible). Attorney Coughlin: Okay, that was my initial question. Councilmember Bialowarczuk: I am not planning to vote, no, I know I can't. Mayor Sica: She has the right to ask questions but she can't vote. Attorney Coughlin: I think it would be better if she didn't ask any questions as well. I think that, that could taint the process. That was my question to the Mayor, it is not whether you are staying in the room but rather when you had to participate in the judication of the matter. Councilmember Bialowarczuk: I didn't think I could in this case. Attorney Coughlin I think you are right, I don't think you should. RESOLUTION #97-268 was introduced by the Mayor and adopted by the affirmative vote of the Council members present to go into Closed Session. AOOPl'ED At approximately 6:50 p.m., a Closed Session was held. AIlJOORNED 10 CLOSID SESSlOO At approximately 8:54 p.rn., upon MMS&C, by Councilmembers Failace and Gutowski and unanimous affirmative vote of the four (4) Councilmembers present, this meeting was opened to the public. OPEN SESSlOO 5 SEJ7fEMBER 3, 1997 ADJOORNED At approximately 8:55 p.m., a motion to close the meeting was made by Councilmember Gutowski and second by Councilmember Failace, so after no further discussion this meeting was adjourned. Respectfully submitted, ~~~ - A THLEEN M. BARNEY Municipal Clerk KMB/lr -------------------------------------------------------------------------- ------------------------------------------------------------~------------ ------------------------------------------------------------------------ -------------------------------------------------------------------------- ---------------------------------------------------------------------------- -.. 6