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Home My Public Portal About08-05-08a The Agenda Meeting of the Mayor and Council of the Borough of Calieret preceding the Regular Meeting, May 22, 2008, was held on Thursday, May 8, 2008, 6:00 P.M., Municipal Building, 61 Cooke Avenue, Carteret, New Jersey. PRESENT The following were noted present: Councilmembers Vincent Bellino " Iris Co Ion " Jorge Diaz " Susan Naples " Joseph Sitarz Noted absent was Mayor Daniel J. Reiman and Councilman Randy Krum. Also noted present was Borough Attorney Robert J. Bergen, Esq. STATEMENT OF MEETING NOTICE: The 2008 Ammal Notice was mailed to The Home News Tribune, The Star Ledger and posted on the bulletin board on December 31, 2007. The amended Annual Notice was posted on the bulletin board on February 25, 2008 and published February 26, 2008. SILENT PRAYER and PLEDGE OF ALLEGIANCE. MINUTES FOR APPROVAL: April 3, 10, 17 & 24,2008 ~ny 8, 2C08 Agen:Ja Meeting Noted Present Noted Absent ~yor Re:inan an:! COllrdlmm Knm Also mtEd present Borougp Attomy R. Bergen StatEl1Hlt of t1ceting t\'otice Silent Prayer! Ple::lge of AllegiEn:;e Minutes for Awroval ~y 8, 2(X)8. ~ - l Ortiimn:es - First Reading Ord:inan:e #08-21 Providing for IrrpIDVEl1Hlts for Borougp of Orrteret Appropriating $25J, ffiJ fran tbe Capital IrrpIDVEl1Hlt furl & $350,ffiJ fran Reserve for IrrprovEl1Hlt for 2(X)8 RoEd IrrprovEl1Hlts & other Various Capital IrrpIDVEl1Hlts of tbe Borougp for Cost Therefor Ordirnnce #08-03 Gurranty Ord:inan:e SECUring tbe Orrteret REdeveloprent Agerr::y Revenue furrls Series 2ro7 Aggregate i\mJunt rot to exceed $7,ffiJ,ffiJ & Isst.ring furrls an:! t\'otes of Borougp to fimrr::e Part or all of tbe cost tbereof Upon MMS&C, by Councilmembers Bellino and Diaz and unanimous affirmative vote of the five (5) members present, the minutes of April 3, 10, 17 & 24, 2008 were approved as transcribed and engrossed by the Clerk. ORDINANCES: First Reading ORDINANCE #08-2lwas introduced and adopted on first Reading and the Clerk authorized and directed to advertise same for Public Hearing to be held May 22, 2008, upon MMS&C, by Councilmember Naples and Colon. Upon individual roll call vote, Councilmembers Bellino, Colon, Diaz, Naples and Sitarz voted in the affirmative for the adoption. Councilmember Krum was noted absent. ORDINANCE #08-21 "AN ORDINANCE PROVIDING FOR IMPROVEMENTS FOR THE BOROUGH OF CARTERET, COUNTY OF MIDDLESEX, NEW JERSEY, APPROPRIATING $250,000 FROM THE CAPITAL IMPROVEMENT FUND AND $350,000 FROM THE RESERVE FOR SEWER IMPROVEMENTS FOR 2008 ROAD IMPROVEMENTS AND OTHER VARIOUS CAPITAL IMPROVEMENTS OF THE BOROUGH FOR THE COST THEREFOR" The Clerk stated that Ordinance #08-03 was introduced and passed upon First Reading at a Regular Meeting of the Borough Council of the Borough of Carteret held on January 24, 2008. It was duly published in The Home News & Tribune on February 7 and April 19, 2008 with notice that it will be considered for final passage after Public Hearing to be held on May 8,2008 at approximately 6:00 P.M. The Ordinance was posted on the bulletin board and copies were made available to the general public and according to law, she read the Ordinance by title. 2 Upon MMS&C, by Councilmembers Diaz and Naples and unanimous affirmative vote of the five (5) members present, the Council President declared the Public Hearing to be open: Louis Mangieri, 47 Pinho Avenue asked about Ordinance #08-03. He asked ifthis was the Kaplan project from Roosevelt Avenue. Council President Sitarz said yes. Mr. Mangieri asked why we are loaning him seven million dollars to complete the project. Council President Sitarz said he would have the attorney address him. Attorney Bergen explained that it is not to complete the project. There's about a little over three and a half million dollars in public improvements that are to be done as part of the project, the stornl sewers and all of the other items that are public improvements within the public right-of-way. This is also a funding mechanism and a little bit in addition to that. Obviously, that projects not only seven million dollars. It's probably forty or fifty million dollars. This is a small guaranty on a portion of it. What the Borough guaranty is, is allows the money to be borrowed at a lower interest rate and in the end the savings come back to the Borough because all of the payment in lieu of taxes, or the taxes, or the tax payments to be made on the property are going to far exceed any debt. So by lowering the interest rate the Borough ends up keeping more of the money that ultimately gets paid back to it. Mr. Mangieri said that is if they sell all the buildings. What's the guaranty? Attorney Bergen noted that there's only a small pmi of the project that needs to be completed to cover the seven million dollars so there's no question that, that will be done. If not, the Borough gets all the land back and can sell it to somebody else. In addition to that, before the Borough guaranty kicks in, Kaplan is guaranteeing the money also. 3 ~i8, 2(X)8 Public Hearing Ofen: Discussion ~y 8, 2(X)8 Everybody in their banks would have to fail before the Borough would have to put in any money. Mr. Mangieri said for seven million dollars.. .(inaudible). If it falls apart, we're going to ..(inaudible)..for seven million dollars. It says we will pay all or part. Attorney Bergen stated that if it falls apati, the Borough will own everything that's down there. Mr. Mangieri asked what good is that. He questioned when the Borough went into the building business. The Attorney said it's not guaranteeing that project. Three and a half million of the seven million is going for paying off the public improvements that you had to install, the sewer lines, water lines, the stuff that you'd have to provide anyway. Councilmember Sitarz said electric also. Discussion Mr. Mangieri spoke but was inaudible. Attorney Bergen said ultimately it is just a guaranty. Mr. Mangieri said they are talking about seven million dollars and we don't have the money now. Attorney Bergen said that the banks, the private lenders who have already loaned much more that this amount on the project already, they're going to come back and payoff your guaranty or payoff whatever you're threatened to lose, then they lose their whole project and they're never going to let you take the land away. It's just too valuable. The land itself is well in excess of seven million dollars. Mr. Mangieri stated that in Section 8 of the ordinance it says that "the Borough is fully, inevocably and unconditionally liable for the payment, when due, of the principal of, redemption premium, if any, and interest on this Bond, and if necessary the Borough shall levy ad 4 ~ny 8,2C08 valorem taxes upon all the taxable propeliy within the Borough without limitation". He said we're going to be stuck with it. Attorney Bergen said if he goes back to some of the other paragraphs it says that we have a security interest on the land itself. There is a special assessment against the individual land itself for the bonds. In the end, this project, over the lifetime of the bonds, will probably generate about thirty million dollars in extra money to the Borough. Mr. Mangieli said he never knew that Redevelopment was in the business of bonding. He said he never heard of that. He spoke more but was inaudible. Attorney Bergen said you're not guaranteeing the construction of the residential units. There being no further comments or objections to the Ordinance, the Council President declared the Public Hearing to be closed upon MMS&C, by Councilmembers Diaz and Naples and unanimous affirmative vote ofthe five (5) members present. Upon MMS&C, by Councilmembers Diaz and Colon Ordinance #08-03 '''GUARANTY ORDINANCE OF THE BOROUGH OF CARTERET SECURING THE CARTERET REDEELOPMENT AGENCY'S 'REVENUE BONDS (LOWER ROOSEVELT AVENUE REDEVELOPMENT PROJECT), SERIES 2007"IN AN AGGREGATE AMOUNT NOT TO EXCEED $7,000,000 PURSUANT TO N.J.S.A.40A:12A-67f AND APPROPRIATING $700,000 THEREFOR AND AUTHORIZING THE ISSUANCE OF $7000,000 BONDS OR NOTES OF THE BOROUGH TO FINANCE PART OR ALL OF THE COST THEREOF" 5 Discussion Continued Public Hearing Closed ~y 8, 2C08 Fimlly adopted Resolutions Clerk 's t\'ote was finally adopted. Upon individual roll call vote, Councilmembers Bellino, Colon, Diaz, Naples and Sitarz voted in the affirmative for the adoption. Councilmember Krum was noted absent. Approved and Adopted: Mav 8. 2008 Introduced: Januarv 24.2008 Advertised as adopted on First Reading with Notice Of Public Hearing: Februarv 7 & April 19. 2008 Hearing Held:_ Mav 8. 2008 Approved by: Mavor Daniel J. Reiman Advertised as finally Adopted: Mav 13 & 16.2008. RESOLUTIONS L Directing the Issuance of V arious Raffle Licenses. 2. Designating Various Bus Stops-Washington Avenue. 3. Endorsing FY 2008 Safe Routes to Schools Category Grant Application. 4. AuthOlizing Issuance to Taxicab Owner's License to Thomas LipnickifNortheast Livery Service for 2008-2009. 5. Authorizing Issuance of Taxicab Driver's License to Thomas Lipnicki 2008-2009. 6. Amendment to the 2008 Temporary Budget. 7. Designating Redeveloper & Authorizing Execution of an Agreement for the Redevelopment of a Portion of West Carteret Minue Street Retail Redevelopment Area. 8. Approving Change Order #1 for Cornell Estates Project, Re: Star ofthe Sea. Council President Sitarz asked the Council to approve resolutions #1 through #8 tonight. ..Clerk's Note- Resolution #1, Raffle License, could not be adopted tonight but will be put on for the next meeting. 6 COMMENTS Councilmember Bellino asked about Resolution #8 for the Cornell Estates Project. Attorney Bergen explained that over by Blair Road, this is the drainage project that runs between that residential development across to Blair Road over to Woodbridge. CONSENT AGENDA Upon MMS&C, by Councilmembers Diaz and Naples, the following resolutions were adopted. Upon individual roll call vote, Councilmembers Bellino, Colon, Diaz, Naples and Sitarz voted in the affirmative. Councilmember Krum was noted absent. RESOLUTION #08-116 "DESIGNATING VARIOUS BUS STOPS W AilHINGfON AVENUE" RESOLUTION #08-117 "ENDORCING FY 2008 SAFE ROUTES TO SCHOOLS CATEGORY GRANT APPLICATION" RESOLUTION #08-118 "AUTHORIZING THE ISSUANCE OF A TAXICAB OWNER'S LICENSE TO THOMAS LIPNICKIINORTHEAST LIVERY SERVICE, FOR THE 2008-2009 LICENSE TERM" RESOLUTION #08-119 "AUTHORIZIG THE ISSUANCE OF A NEW TAXICAB DRIVER'S LICENSE FOR THE 2008-2009 LICENSE TERM" RESOLUTION #08-120 ~y 8, 2008 Consent Agen:Ja Resolution #08-116 "Desigmting Various Bus Stops \vashington Ave Resolution #08-117 Endorcing FY 2008 Safe Routes to Schools Category Gum Application Resolution #08-118 Issuance of a Taxicab CMt'ff's license to T. lipIi.cki/North- east livery Service 2008/2009 Resolution #08-119 Issuance of NEW Taxicab Driver's license 2(X)8-2009 Ten 7 ~y 8, 2(X)8 Resolution #08-120 flIrm:hEnt to 2(X)8 Taq;orary Bu:lget Resolution #08-121 Borougp of Orrteret Desigmting a P.alevelq:er & Authorizing ExECUtion of an AgreffiEIlt for the of a Portion of l<1est Orrteret Mime St. Retial Redeveloprent Area Resolution #08-122 Awroving Glange Order #1 Cornell Estates Irrprove- rrent Pro jet Adopted Payrrent of Bills ReJXlrts "AUTHORIZING AMENDMENT TO THE 2008 TEMPORARY BUDGET" RESOLUTION #08-121 "RESOLUTION OF THE BOROUGH OF CARTERET, IN THE COUNTY OF MIDDLESEX, NEW JERSEY DESIGNATING A REDEVELOPER AND AUTHORIZING EXECUTION OF AN AGREEMENT FOR THE REDEVELOPMENT OF A PORTION OF THE WEST CARTERET MINUE STREET RETAIL REDEVELOPMENT AREA" RESOLUTION #08-122 "APPROVING CHANGE ORDER #1 CORNELL ESTATES IMPROVEMENT PROJECT" were adopted. Upon individual roll call vote Councilmembers Bellino, Colon, Diaz, Naples and Sitarz voted in the affirmative. Councilmember Krum was noted absent. PAYMENT OF BILLS List of bills properly audited and signed. REPORTS: 1. Clerk's Office - April 2008 2. Inspection of Buildings - April 2008. Upon MMS&C, by Councilmembers Diaz and Naples and unanimous affirnlative vote of the five (5) members present, all Reports were ordered to be received and placed on file. 8 BUSINESS TO BE ADDED: Councilmembers Bellino, Colon, Diaz and Naples did not have any business to add at this time. Council President Sitarz asked the clerk if she had received a letter from Mr. Melnick concerning handicapped parking. The Clerk said she did not see the letter. Mr. Melnick said he sent a letter to the Mayor and Council requesting that his handicapped parking space be designated as 'resident only'. Other people park there and leave their car there for four (4) or five (5) days. He called Trenton on this and they said the sign has to say 'resident only' or have his address on it. Councilmember Diaz asked if that parking space was specifically for him. Mr. Melnick said yes, that he applied for it years ago. Attorney Bergen said he would have to look at the statute to see ifthey could do that. Councilmember Naples said she believes that it has to be assessed by Mr. DuPont. Councilmember Diaz said that they will get the information and they will double-check with the Borough Engineer. Attorney Bergen said that he saw the letter and he thinks it is being reviewed by the Engineering Department. Mr. Melnick noted that in Perth Amboy they have it. 9 fuy 8, 2008 Busiress to 1:e Added Fe: HarrlicaJ:I:Ed PArking Discussion Contirurl Public Portion ~y 8, 2C08 Councilmember Naples said she believes that there was an issue across from Columbus School. Attorney Bergen asked if he had a driveway and perhaps if he doesn't, it may be permissible. Mr. Melnick said he has a driveway but his wife comes down the front. Attorney Bergen said that if they have it in Perth Amboy, it may be that they have no other place to park. Council President Sitarz said that they will have the Engineering Depmiment look at it and get in contact with Captain McFadden and take it from there. He told him to give it a week or two. Councilmember Bellino said there is a resident handicapped parking with the permit number on it. They do have it in Perth Amboy because he parked in one and was called at a football game to remove his car. Council President Sitarz again stated that they will have the Engineering Department look at it and get back to him. PUBLIC PORTION Sam Goddess stated that he is the Chairman of the Memorial Day Parade and he wants to make sure that all of his bills will be paid on a timely basis. Council President said that Judy Leshko was talking to a couple of organizations today that said they need the money in order to come out. Councilmember Bellino told Mr. Goddess to call him tomon'ow to let him know what bills they are and he will follow up on it. 10 PUBLIC PORTION CLOSED Upon MMS&C, by Councilmembers Diaz and Naples and unanimous affirmative vote of the five (5) members present, the public portion of vthis meeting was closed. ADJOURNED There being no further business or discussion, upon MMS&C, by Councilmembers Diaz and Naples and unanimous affirmative vote of the five (5) members present, the meeting adjourned at approximately 6:15 P.M. Respectfully submitted, ~7 f tZe ;; '1 THLEEN M. B Municipal Clerk KMB/am 11 ~y 8, 2008 fublic Portion ClosEd AdjournEd