At Wednesday night’s City Council meeting, Councilman Michael Lenz announced that city may be able to recoup $1 million in allegedly stolen parking meter money, rather than waiting for anyone held accountable to reimburse the city.
Former Parking Utility head John Corea was indicted a week ago in connection with the missing coins, accused of allegedly stealing more than $1 million and then splitting the take with a contractor.
According to Lenz, the city had a “fidelity bond,” or insurance for employee theft. Lenz said the city is required to keep such insurance on certain positions within the city, for instance, the tax collector. He said the city also has a “blanket fidelity bond” for general coverage and the city may be able to utilize the bond to recoup the missing money while law enforcement and judicial processes continue. He said the insurance claim is capped at $1 million. If the city receives reimbursement from the accused, that reimbursement will go to the repay the insurance company.
The council scheduled a special meeting for Dec. 30.
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Bringing the budget
Lenz, who chairs the council Finance Committee, also announced that the city budget will not be ready for a public hearing on Jan. 6, a date that had been targeted by city Finance Director Nick Trasente. Trasente was ill and was not at the meeting.
Lenz said the budget hearing that is scheduled to begin on that date may be moved to another date, or the hearing could still be opened and carried to a later date.
Lenz said the council may meet with city directors to review each of their portions of the proposed $89 million budget on Saturday, Jan. 23.
He said the council intends to pass one amendment to the budget after the hearings are over and the public has had a chance to review the document. The final budget, which covers spending from July 1, 2009 to June 30, 2010, should be ready to be adopted by the council in February.
Who is suing us?
Also at the meeting, Councilman Ravi Bhalla criticized outgoing Corporation Counsel Steven Kleinman for failing to produce a list of ongoing city litigation.
Bhalla has asked several times for the list, and said last week that any city attorney – “unless he’s committing some form of negligence” – should have the list ready to be distributed.
“I’m banging my head against a wall,” Bhalla said.
He gave Kleinman seven days from Wednesday to produce the document.
Kleinman said he is waiting for updates from the city’s Joint Insurance Trust Fund, which handles some claims against the city.
Special meeting for Maxwell Park
The city is has been hesitating to take title to the promised park at Maxwell Place.
A lawyer for Toll Brothers, who own Maxwell Place and promised to donate the park upon completion, pleaded with the council to schedule a special meeting so that the property can change hands before the end of the year.
Toll’s attorney said his client will face a significant “tax consequence” if the property isn’t given to the city by the end of the year.
City attorneys are holding up the exchange because the “financing is inappropriate,” according to new city attorney Michael Kates.
The council scheduled a special meeting for Wednesday, Dec. 30.
Energy saved
Mayor Dawn Zimmer said last week that the city will soon enter into a program to reduce city energy costs by a quarter of a million dollars each year.
Hoboken is one of first municipalities in the state to complete an energy audit, and now they may reap the rewards of being ahead of the curve, Zimmer said.
Local energy provider PSE&G, through federal stimulus money, is partnering with cities to lower energy costs and Hoboken is at the front of the line.
The utilities company pays for the upgrades. The city will only be responsible for 20 percent of the upgrade costs over the 24 months following implementation.
Environmental Services Director John Pope, who championed the partnership, said at the City Council meeting last week that the immediate savings in City Hall amount to $650 per month indefinitely, while payment for the upgrades amounts to $405 per month for 24 months.
Timothy J. Carroll may be reached at tcarroll@hudsonreporter.com.