The City of Bayonne could find itself in court over the awarding of its tax lien contract after the council voted on Jan. 21. to approve the contract with the bidder.
Two firms vying for the contract to collect unpaid property taxes came within $1 of each other, but the council chose to award the contract to Plymouth Park Tax Services, Inc. over the objections of a bidder who offered a better price.
An attorney for McManimon & Scotland, the legal firm hired to evaluate bids for the city, said the second bidder had failed to provide critical information with the bid that included financial arrangements for paying the city.
The city contracts with a firm each year to pursue taxes that are not paid on time. This benefits the city in the fact that it has to reserve less in the following year’s municipal budget to cover unpaid taxes – a requirement under state law. It also provides the city with a portion of the original taxes that were uncollected by municipal deadlines.
Chief Finance Officer Terrance Malloy said the city could reduce costs in next year’s budget by millions through the sale.
The unanimous vote by the council, however, puts the city at risk of a lawsuit since the other bidder could contest the action.
Councilman Gary LaPelusa offered the losing firm consolation, saying the firm is free to bid next year, and he hopes that the firm will not put the city through the expense of a legal challenge.