Team Giattino condemns Hoboken to HORRIBLE SUEZ contract


Anyone who wondered how the Reform split on the City Council would play out in the weeks before the November election got an eyeful last night.

SH*TSHOW SUMMARY
If you didn't tune in to last night's election-time sh*tshow, here's what you missed:

(1) A political alliance was born.  

The love-fest between Mike DeFusco, Ruben Ramos, Mike Russo and Team Giattino was palpable; they exchanged everything but bodily fluids while taking turns flogging Mayor Zimmer. 

(2) Zimmer pre-empted the Council sh*tshow, blasting particular Council members in a short speech which bruised some tender egos.  No waaahmbulance was available, so Council members each took turns berating the Mayor for her inexcusable honesty.

(3) Council President Giattino would not permit SUEZ to give a short ("10 minute") presentation about the SUEZ Memorandum of Understanding (the subject of the resolution being voted on) because "the meeting was expected to "go late."

Why did Giattino deny the public from learning about the contract being voted on?  Was she afraid the public would like it?
  
(4) Giattino pulled the SUEZ resolution, with its $40M benefits package to Hoboken: $31M in infrastructure investment +  $8.3M liability. Just like that. Woosh.
  • Giattino failed to address the growing liability to taxpayers stuck in the existing SUEZ contract which continues to mount taxpayer debt.  Every day. 
  • Like the bad old days,  Giattino, DeFusco, Fisher, Mello, Ramos, Russo and Cunningham blamed Zimmer, pointed fingers, then denied the resolution while offering NOTHING:  no solutions, no direction, no ideas. They kicked the can down the road while trapping Hoboken in a miserable contract. 
(5) Grandstanders Ramos and DeFusco promised an "investigation" into the SUEZ mounting debt, which they should have flagged since their wards have had the most major water main breaks since 2015. 

(6) Did I mention wounded Council egos took turns berating the Mayor?  Yeah, I did. Peter Cunningham compared Zimmer to Mayor Roberts.   




COUNCIL IGNORANCE ABOUT SUEZ CONTRACT AND MOUNTING TAXPAYER DEBT 
Well, it was amusing to watch the indignation of Council members fuming about "hidden" taxpayer debt and blaming the mayor when in fact, they should have known the City was in the red.

Were they asleep during the dozens of water main breaks that Hoboken has suffered in the past years?

Didn't they know the existing SUEZ contract caps maintenance and repairs at $350,000/year?

How did they figure the repair of all the costly water main breaks in their own wards were getting paid?


$350,000/year.

It costs 10% of that to renovate a kitchen.  

The Council members who feigned surprise that this debt existed were asleep at the wheel. Their own wards have flooded with increasing frequency from water mains breaks, sometimes displacing tenants, sometimes swallowing a car, always inconveniencing their constituents. ANd yet...

Ward council members never questioned why they didn't see a single SUEZ bill for approval.  

Take a look at a partial list of  water main breaks Hoboken has suffered since the 2015 municipal election.

HOBOKEN WATER MAIN BREAKS

 RUBEN RAMOs' WARD


MIKE RUSSO's WARD


Did these Council Members really need the mayor to tell them the  cost of all of these water main breaks would put Hoboken in the red?

The Mayor's solution was a renegotiated contract, presented for a vote last night.

Team Giattino, Mello and the Dark Side Council said "NO."


Their "NO" dooms the City to keep bleeding cash until 2024 when the contract expires. Thanks for nothing.

Let's recap:
  1.  Hoboken pays SUEZ $350K/year for maintenance and repair. 
  2.  SUEZ has never billed for additional work above the $350K/year cap.
  3. Hoboken continues to accrue debt everyday because repairs continue and we are locked into a contract with a $350K cap.
  4. Hoboken debt to SUEZ is estimated to grow to $17M by the 2024 contract expiration.  
  5. Giattino, et.al rejected the renegotiated SUEZ contract that would have increased SUEZ cap to $1.8M/year (average). 
  6. Giattino, et. al. rejected the renegotiated SUEZ contract that would have wiped out Hoboken's current $8.35M debt. 
Hey, every Hoboken residentshould be open to a better deal, if there is one. 

The problem is that last night's shitshow was an election-time spectacle, and not a single grandstander proposed a 'Plan B.'    

The irony is, those crowing about "$8.35M in red ink" don't seem to understand that this debt grows every day we are stuck in this lousy SUEZ contract that Giattino & Friends doomed us to, offering no better direction. 

These are Mayor Zimmer's remarks. 

REMARKS FROM MAYOR ZIMMER TO CITY COUNCIL REGARDING PROPOSED SUEZ AGREEMENT

"Council Members,

I am here to urge you to put politics aside and give honest and fair consideration to the proposed renegotiated contract with Suez Water.

As you have learned since we first introduced the proposed agreement nearly 2 months ago on July 11th, the agreement includes over $31 million in capital investment and repairs for the City of Hoboken. It also includes $10 million in debt forgiveness and future savings for bulk water costs. This represents a total of over $40 million in net economic benefit for the City and its taxpayers.

This agreement would put Hoboken on a strong track to annually fund much needed water main upgrades. It would forgive debt for water and maintenance agreed to under the existing extremely unfair agreement. It would create a fairer system by making additional future costs for water and maintenance the responsibility of water ratepayers based on water usage, such as car washes, laundromats, and commercial operations, rather than leaving a substantial portion of the burden paid on taxpayers as the current agreement requires.

I think it is great that the Council has asked a lot of questions and taken time to seriously review the proposed agreement. Had such a review taken place back in 2001 when the City entered into the disastrous amendment which is the cause of the urgency we face today, perhaps we would have had a better result.

Councilman Ramos voted for that amendment. He rubber stamped an agreement that actually reduced Suez's maintenance obligation from $550,000 per year to $350,000 per year for 23 years and created the enormous bulk water liability for the City that everyone is so concerned about. I want to repeat that because it is truly baffling – he voted to reduce Suez’s maintenance obligation by $200,000 per year. Far from benefitting the City, that agreement actually cost the City of Hoboken over $17.6 million dollars. This includes agreeing to new water terms that are estimated to cost $1.3 million annually starting in 2014 and it reduced Suez’s maintenance obligation by $200,000 starting in 2001 and going until 2024, costing the City $17.6 million (water: $1.3x10=$13 + $200,000x 23=$4.6 million).

And what did we get in exchange for this enormous $17.6 million cost? We got a mere single $2.6 million payment that Mayor Russo, with the support of Councilman Ramos, used to plug a budget hole. This funding was not even used to invest in the water main system. Councilman Ramos was recently quoted by Hudson County View saying "we still have a number of years left on this deal so we have no real urgency to move this forward right now." I strongly disagree. It is time to stop the bleeding caused by this disastrous decision.

I’ve heard a lot of misstatements from members of the Council since this proposed agreement was announced. I think it’s important that however you decide to vote, the public should know the facts.

Councilman Mello told Hudson County View that the contract put in front of us doesn't seem to be any better in any facet than the existing contract other than it is going to put more money into maintenance, which the Councilman claims will be on the backs of taxpayers. The Council has repeatedly been provided with information making clear that this is not true - there is a $40 million benefit to the City and its taxpayers.

Councilwoman Fisher, supported by Councilman Cunningham and Council President Giattino, have made references to unspecified unanswered concerns while demanding that we hold numerous additional meetings out of the public eye, while at the same time claiming to champion transparency.

This proposed agreement was provided to the Council almost two months ago. We have held two subcommittee meetings. Including this meeting, it will have been discussed at two City Council meetings, and the City has twice provided written answers to the questions asked by Council members. We have made those questions and answers public so residents can fully understand the issue. The demand that we engage in an endless process behind closed doors is simply a transparent attempt to avoid taking a vote on a critical issue because there's an election coming up and the politics are complicated.

As you all know, this issue is critical to the people that we represent. I urge you to put the politics aside and to do the job that we were all elected to do which is to act in the best interests of the City that we have each taken an oath to serve.

This includes having an honest discussion about the merits of this agreement without political grandstanding, and then taking a vote. I hope everyone will support this. But if you do not, then please say clearly what you would support so that the City can move forward. For example, if you believe that the $40 million benefit to the City is insufficient and we should instead settle for nothing less than $60 million, please say so. If you believe that the City should simply terminate the contract and bid it out, then say so.

Simply saying “I have concerns" or "this agreement isn't good enough", or that "Mayor Zimmer is a lame duck who should no longer be permitted to do her job as mayor" is not fair to the public that we serve and does not provide the information needed to consider next steps.

Suez now has a very important 10-minute presentation on leak detection and smart water technology that I hope you will allow them to present today.

Comments

  1. So Jen Giattino cancelled a presentation on our ailing water system because she didn't want to chance having to stay late? Perhaps she had better things to do.

    This is not the type of thing you want to say when interviewing for a job let alone running to be the executive of a City.

    ReplyDelete
    Replies
    1. I think it's extremely odd that Suez was going to give a presentation to the council on this. They have an oppositional relationship to the city, not a fiduciary one.

      Very strange.

      Delete
    2. Offtherails, "this" (the resolution before the Council) was a Memorandum of Understanding for a renegotiated contract with SUEZ, and the presentation was for new leak detection technology SUEZ would provide for Hoboken.

      Your comment was "extremely odd" and "oppositional" to coherence. I suspect you are "very strange."

      Delete
    3. Seeing as Suez is trying to enter into a contract with the city, the CC has to sign off on it, I'd find it odd if Suez didn't want to present their proposal to the CC and the city as a whole. What is truly odd is how Suez was not allowed to make this presentation. Eh - but that is gutter politics for you. Forget the facts, it is all about winning with that crowd and damn the consequences.

      Delete
  2. I'm confused. The council could either vote to allow the city to wipe out the current debt due, and increase the Suez portion to future cost of repairs thereby reducing the city's future portion of cost of repairs, OR the council could allow the current contract to continue as is - and incur more and more debt as mains continue to break. AND THEY VOTED FOR THE SECOND OPTION? What am I missing?

    ReplyDelete
  3. before last night, i hadn't seen any valid reason to vote for giattino. now i have a concrete reason to NOT vote for her. shame.

    ReplyDelete
  4. Basically they didn't want the public to know how badly these idiots just screwed over Hoboken with their "no" vote.

    BTW, Jen, if you don't have the time to do your job on CC and are worried about staying late, how about you pull out of the mayoral race b/c that job is 10x harder and takes a heck of a lot more time to do. Or do you plan on being Hoboken's very on DeBlasio and shirking your job responsibilities to go take naps and workout at the gym during office hours?

    ReplyDelete
  5. and kudos to mayor zimmer for standing up and speaking truth. well said.

    ReplyDelete
  6. Delayed Debt Dawn is the new Dumb Dumb Dawn or Deposition Dawn. Remember the lottery tickets? She was always corrupt. We just pretended to disagree with Lane because they used to make me feel important, and my friend Mr. Horsey needed Delayed Debt Dumb Dumb Deposition Lady Puppet Mayor and Stab the Shadow to help him out at his trial. Now they don't stroke my ego the way Nonpartisan Partisan Jen and Supersmart Republicrat Chair Tiffie do, and as for Mr. Horsey's need for Dumb Dawn's testimony, well, he "ate that meal," as they say. If he does have any other trials in the pipeline, he's got five "Watergate" stories a day to prove he can handle it on his own!

    ReplyDelete
  7. A few quick thoughts for Councilwoman Giattino.

    Have a look at that knife settling into the small of Mayor Zimmer's back. At the appointed time that same knife is going into your back in more or less the same spot. And the hands on the handle now will be the same hands then. You just got an object lesson in what their kinship is worth, so don't kid yourself. Most of them don't have much else to do anyway and still won't when they start getting bored with you.

    As her friends and in particularly her enemies know, Zimmer has been bringing it in the arena for 10 incredibly long years. From a 2-7 council that you never saw, through Cammarano, through Occhipinti's VBMs, through Mason, through Sandy, through Guadagno and Christie, through 411, through the circus brought by a modest reorg of the HPD, through being saddled with George Destefano - mail opener to the stars, through the Pat Ricciardi scandal and the incredible workplace hostility it implied, through the hospital sale, through the SLAPP suit where she stood up for some of the very people who are pissing on her now, through all the backdoor attempts to buy this city by developers and private citizens and the HCDO, 1000 cancers waiting to burst into bloom together with the daily craven attempts to break this woman's spirit - right up til today.

    And what did it buy her? A benefit of the doubt? A last effort to put differences aside and do the people's work? Not even close.

    A horde of limp-dicked internet warriors saying don't let the door hit you in the ass and people who should but don't know better sputtering something about Watergate and Dave Roberts.

    Allow yourself to be honest for a moment - if only with yourself. If Zimmer were still running for mayor, you'd all have sorted this out and come up something like 6-3 in favor of the taxpayer instead of 7-1 in favor of self-promotion and gridlock.

    Either way, when the dust settles after you've all had your fun and besmirched Zimmer's reputation to your collective satisfaction, and you all have enough blood in your mouths... you're going to pass that Suez deal or something damn close to it, and you fucking know it. When that moment comes, do what Beth did with the hospital. Get Suez to agree to throw in a few meaningless trinkets so your little stunt doesn't look so much like exactly what it is.

    I used to think that when Zimmer was done they ought to name some stretch of road after her in recognition of the extraordinary obstacles faced down and outlasted. But I've changed my mind on that. Anyone who can get this far while dragging this lot of capricious, self-involved wind merchants with her deserves two streets.

    ReplyDelete
    Replies
    1. Well, that's, just, like, your opinion, man.

      Also, we have clever names like numbersmuncher, so go suck an egg.

      Delete
    2. I have a horrifying thought. Imagine if Fisher had been one of 5 "reformers" on the City Council back when the hospital was being sold.

      Does anybody doubt that she would have tried to kill the deal because her wondrous math skills told her it just wasn't good enough than the awesome deal Fisher could have negotiated?

      And like they are doing now, people like Cunningham and Giattino would nod along like brainless lemmings as she spouted her brilliant "analysis."



      Delete
    3. Just imagine if one of those brainless lemmings became mayor. She'd either let the city fall apart b/c she doesn't like to work late or let Fisher run things.

      Delete
    4. I wonder why the long time leader of the real reform movement ML chose Jen as the candidate rather than Tiffanie?

      Is it because Jen is more pliable and easier to control? If so I wonder how he feels about Tiffanie seizing control over his proposed figurehead?

      Delete
    5. I'm sure the shadow (ML) is thrilled to have had his asset compromised.

      Delete

Post a Comment