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9.A.7.

SPONSORED BY:
SECONDED BY:

CITY OF HOBOKEN
RESOLUTION NO.:

RESOLUTION TO TERMINATE EXISTING PROFESSIONAL


SERVICES CONTRACTS FOR LEGAL SERVICES WITH LITE
DEPALMA GREENBERG AND PROHIBIT FUTURE
CONTRACTS DUE TO CONTRIBUTIONS MADE TO MAYOR
BHALLA FOR MAYOR THAT ARE IN BREACH OF THE CITY
OF HOBOKEN'S PUBLIC CONTRACTING REFORM LAWS

WHEREAS, according to the State of New Jersey Election Law


Enforcement Commission (“ELEC”), the first legislation in New Jersey enacted
to address mounting concerns over the financial influence on elections and
public contracts was in 1964 when Governor Richard Hughes enacted New
Jersey’s first lobbying law which required any lobbyist making $500 or more in
three months or spends that much to influence legislation to register with the
Secretary of State;

WHEREAS, legislation and oversight of campaign reporting was


expanded in 1973 when the “New Jersey Campaign Contributions and
Expenditures Reporting Act” (the “Act”, N.J.S.A Chapter 19) was enacted
establishing N.J. Election Law Enforcement Commission; the Act was further
amended and expanded through 2015 including the 2004 Pay-to-Play
Contracting Reform (N.J.S.A 19:44A-20.3-20.27);

WHEREAS, on July 30th, 2004, the City of Hoboken also pursued


legislation to minimize financial influence on elections and public contracts and
adopted the Competitive Negotiation Ordinance DR-154 (Chapter 20:A Article I)
which stated as its purpose that “the paramount public interest is served by
requiring that the City award all contracts or agreements to outside consultants
for the provision of professional services on the basis of competitive negotiation”;

WHEREAS, on November 2nd, 2004 at the General Election, voters of the


City of Hoboken adopted overwhelmingly by a referendum vote (9,573 voted in
support and only 1,099 opposed) the Public Contracting Reform ordinance
(Chapter 20:A Article II) which, in accordance with its stated purpose establishes
policies “that will avoid the perception of improper influence in public contracting
and local elections.”

WHEREAS, the Public Contracting Reform laws included limitations on


entering into contracts with any business who made contributions reportable
under the Act within the immediately preceding calendar year and/or limitations

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9.A.7.3

on business entities making any contributions reportable under the Act after
having entered into a contract with the City;

WHEREAS, on March 2, 2011, the Public Contracting Reform was


further amended via Ordinance Z-89 to clarify the “current language of
Chapters 20A [and 20C] … to help maintain compliance, put contributors on
proper notice of the regulations regarding their contributions and enable proper
enforcement of the Chapters”; these broadly included more restrictive definitions
(e.g. including broadening the definition of who is subject to the regulation from
“business entities” to “entities”).

WHEREAS, at the City Council meeting on May 2, 2018, certain City


Council members asserted that the contributions as reported on the 1st Quarter
ELEC reports by Ravi Bhalla [for Mayor] made by a Victor Afanador, Member of
Lite DePalma Greenberg, are in breach of Hoboken's Public Contracting Reform
laws and asked Corporation Counsel to investigate and provide an official
opinion on the subject;

WHEREAS, Lite DePalma Greenberg was awarded, and the City Council
approved, three “Professional Services Contracts” as defined by N.J.S.A. 40A:11-
1 et seq on February 7th 2018 (CC14 Rent Leveling Board for $15,000 and CC16
Rent Control Litigation for $45,000) and as amended on March 15th 2018 (CC5
2017 Rent Control Litigation for $4,027.11);

WHEREAS, as one of only six senior Members of Lite DePalma


Greenberg, it Victor Afanador is considered an entity “whose contributions are
regulated by this article” under 20:A-12C(2) and/or 20:A-12C(3);

WHEREAS, the reported contributions made by Victor Afanador,


Member of Lite DePalma Greenberg, that were disclosed on the 1 St Quarter
ELEC report filed by Ravi Bhalla [for Mayor] - $300 made on March 29th 2018 as
“amount received this period” and $600 “aggregate amount” - are done so in
accordance with N.J.S.A. 19:44A-8(d) which effectively requires disclosure of any
contribution, that when combined with other “contributions relating to the same
election” exceed $300;

WHEREAS, it is noted that Ravi Bhalla announced he was running for


Mayor on June 19th, 2017 so therefore, it can be construed that the $300 of the
“aggregate amount” that was not “amount received this period” would have been
received on or after June 19th, 2017.

WHEREAS, the contributions by Victor Afanador, Member of Lite


DePalma Greenberg, that are being investigated were made on March 29 th 2018,
shortly after contracts were awarded to Lite DePalma Greenberg thus in breach
of 20:A-12(B) of Article III of Hoboken's Public Contracting Reform which says
“No entity… who … enters into any contract … with the City of Hoboken …
shall knowingly … make any contribution to … any person serving in an elective

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9.A.7.3

municipal office in Hoboken … between the time of first communication


between that business entity or vendor and the municipality regarding
a specific agreement for professional services or extraordinary
unspecifiable services and … the termination of the contract or
agreement.”;

WHEREAS, in accordance with 20:A-12(D) of Hoboken's Public


Contracting Reform laws $600 of reportable contributions exceeds the
threshold of “a maximum of $300 each for any purpose to any candidate
or candidate committee for elective municipal office in Hoboken or any
holder of elective municipal office in Hoboken”;

WHEREAS, the City Council believes that contributions made by Victor


Afanador, Member of Lite DePalma Greenberg, to Ravi Bhalla [for Mayor] are a
material breach under its contracts with the City of Hoboken in accordance with
20A-17(1) of Hoboken’s Public Contracting Reform;

WHEREAS, as of this writing, the Corporation Counsel has not provided


any response to the inquiry made by certain City Council members concerning
contributions described herein nor information that would potentially lead the
City Council to come to a different conclusion; and

WHEREAS, the City Council recognizes that immediate termination of the


contracts with Lite DePalma Greenberg with no replacement entity to provide the
services being rendered would be a disruption to existing litigation and
functionality of Hoboken’s Rent Control Board;

NOW, THEREFORE, BE IT RESOLVED, that Hoboken City Council


calls for the Administration to submit for City Council approval no later than
June 20th a replacement law firm to provide the professional services currently
being rendered by Lite DePalma Greenberg and upon such approval, to
terminate all of the existing contracts between Lite DePalma Greenberg and the
City of Hoboken and in accordance with 20A-17(B) of Hoboken’s Public Contract
Reform laws, disqualify Lite DePalma Greenberg from “eligibility for future
contracts with the City of Hoboken… for a period of four calendar years from the
date of the violation”.

Meeting Date: May 16, 2018

APPROVED: APPROVED AS TO FORM:

STEPHEN D. MARKS BRIAN ALOIA, ESQ.


BUSINESS ADMINISTRATOR CORPORATION COUNSEL

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9.A.7.3

 Vote Record - CC - Resolution


Yes/Aye No/Nay Abstain Absent
James Doyle    
Mike DeFusco    
Tiffanie Fisher    

 Adopted Michael Russo    


 Denied Ruben Ramos    
Peter Cunningham    
Jennifer Giattino    
Vanessa Falco    
Emily Jabbour    

Packet Pg. 206


9.A.7.4

SPONSORED BY:
SECONDED BY:

CITY OF HOBOKEN
RESOLUTION NO.:

RESOLUTION TO TERMINATE EXISTING PROFESSIONAL


SERVICES CONTRACTS FOR ENGINEERING SERVICES
WITH BOSWELL ENGINEERING AND PROHIBIT FUTURE
CONTRACTS DUE TO CONTRIBUTIONS MADE TO MAYOR
BHALLA FOR MAYOR THAT ARE IN BREACH WITH THE
CITY OF HOBOKEN'S PUBLIC CONTRACTING REFORM
LAWS

WHEREAS, according to the State of New Jersey Election Law


Enforcement Commission (“ELEC”), the first legislation in New Jersey enacted
to address mounting concerns over the financial influence on elections and
public contracts was in 1964 when Governor Richard Hughes enacted New
Jersey’s first lobbying law which required any lobbyist making $500 or more in
three months or spends that much to influence legislation to register with the
Secretary of State;

WHEREAS, legislation and oversight of campaign reporting was


expanded in 1973 when the “New Jersey Campaign Contributions and
Expenditures Reporting Act” (the “Act”, N.J.S.A Chapter 19) was enacted
establishing NJ ELEC; the Act was further amended and expanded through
2015 including the 2004 Pay-to-Play Contracting Reform (N.J.S.A 19:44A-20.3-
20.27);

WHEREAS, on July 30th, 2004, the City of Hoboken also pursued


legislation to minimize financial influence on elections and public contracts and
adopted the Competitive Negotiation Ordinance DR-154 (Chapter 20:A Article I)
which stated as its purpose that “the paramount public interest is served by
requiring that the City award all contracts or agreements to outside consultants
for the provision of professional services on the basis of competitive negotiation”;

WHEREAS, on November 2nd, 2004, at the General Election, voters of the


City of Hoboken adopted overwhelmingly by a referendum vote (9,573 voted in
support and only 1,099 opposed) the Public Contracting Reform ordinance
(Chapter 20:A Article II) which, in accordance with its stated purpose establishes
policies “that will avoid the perception of improper influence in public contracting
and local elections.”

WHEREAS, the Public Contracting Reform laws included limitations on


entering into contracts with any business who made contributions reportable
under the Act within the immediately preceding calendar year and/or limitations

Packet Pg. 207


9.A.7.4

on business entities making any contributions reportable under the Act after
having entered into a contract with the City;

WHEREAS, on March 2, 2011, the Public Contracting Reform was


further amended via Ordinance Z-89 to clarify the “current language of
Chapters 20A [and 20C] … to help maintain compliance, put contributors on
proper notice of the regulations regarding their contributions and enable proper
enforcement of the Chapters”; these broadly included more restrictive definitions
(e.g. including broadening the definition from “business entities” to “entities”);

WHEREAS, at the City Council meeting on May 2, 2018, certain City


Council members asserted that the contributions as reported on the 1st Quarter
ELEC reports by Ravi Bhalla [for Mayor] made by Boswell Engineering are in
breach of Hoboken's Public Contracting Reform laws and asked Corporation
Counsel to investigate and provide an official opinion on the subject;

WHEREAS, Boswell McClave Engineering (aka Boswell Engineering)


was awarded, and the City Council approved, three “Professional Services
Contracts” as defined by N.J.S.A. 40A:11-1 et seq on February 21st 2018 (E2 for
$7,500), March 15th 2018 (A5 for $17,500) and on April 4th 2018 as amended and
increased (A2 by $10,000 to $27,500);

WHEREAS, Boswell Engineering is considered an entity “whose


contributions are regulated by this article” under 20:A-12C(2);

WHEREAS, the contributions made by Boswell Engineering, that were


disclosed on the 1St Quarter ELEC report filed by Ravi Bhalla [for Mayor] - $300
made on March 1st as “amount received this period” and $600 list as “aggregate
amount”- were done so in accordance with the N.J.S.A. 19:44A-8(d) which
effectively requires disclosure of any contribution, that when combined with
other “contributions relating to the same election” exceed $300;

WHEREAS, it is noted that Ravi Bhalla announced he was running for


Mayor on June 19th, 2017 so therefore, it can be construed that the $300 of the
“aggregate amount” that was not “amount received this period” would have been
received on or after June 19th, 2017.

WHEREAS, the March 15th and April 4th contracts that were signed with
Boswell Engineering were just after the timing of the reportable contributions
that are being investigated and therefore Boswell Engineering are in breach of
20:A-12(A) of Hoboken’s Public Contracting Reform code which states “…the
City of Hoboken … shall not enter into any agreement or otherwise contract to
procure "professional services" as such term is defined at N.J.S.A. 40A:11-2(6)…
from any entity… if such entity has solicited for or made any "contribution"
reportable by the recipient under the New Jersey Campaign Contributions and
Expenditures Reporting Act, P.L. 1973, c. 83 (N.J.S.A. 19:44A-1 et seq.)… to …
any person serving in an elective municipal office in Hoboken…in excess of the

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9.A.7.4

thresholds specified… within one calendar year immediately preceding


the date of the contract or agreement.”

WHEREAS, “one calendar year immediately preceding” is imprecise and


includes terms which contradict each other and are inconsistent with the intent
of the paragraph (“calendar” “year” “immediately” “preceding”), the language in
N.J.S.A. 19:44A 20.3 seq. that repeatedly cites “preceding one-year period” when
referencing Public Contract Reform is a more rational interpretation and
consistent with the typical timing of related events and restrictive nature of the
entirety of Hoboken’s Public Contracts Reform code;

WHEREAS, the contributions by Boswell Engineering, that are being


investigated were made on March 1st 2018, shortly after one of the contracts that
was awarded to Boswell thus also in breach of 20:A-12(B) of Hoboken's Public
Contracting Reform which says “No entity… who … enters into any contract …
with the City of Hoboken … shall … make any contribution to … any person
serving in an elective municipal office in Hoboken … between the time of first
communication between that business entity or vendor and the
municipality regarding a specific agreement for professional services
or extraordinary unspecifiable services and … the termination of the
contract or agreement.”;

WHEREAS, in accordance with 20:A-12(D) of Hoboken's Public


Contracting Reform laws $600 of reportable contributions exceeds the
threshold of “a maximum of $300 each for any purpose to any candidate
or candidate committee for elective municipal office in Hoboken or any
holder of elective municipal office in Hoboken”;

WHEREAS, the City Council believes that contributions made by Boswell


Engineering to Ravi Bhalla [for Mayor] are a material breach of under its
contracts with the City of Hoboken in accordance with 20A-17(1) of Hoboken’s
Public Contracting Reform;

WHEREAS, as of this writing, the Corporation Counsel has not provided


any response to the inquiry made by certain City Council members concerning
contributions described herein nor information that would potentially lead the
City Council to come to a different conclusion; and

WHEREAS, the City Council recognizes that immediate termination of the


contracts with Boswell Engineering with no replacement entity to provide the
services being rendered would be a disruption to existing projects, including
efforts relating to the acquisition of the former Union Dry Dock site.

NOW, THEREFORE, BE IT RESOLVED, that Hoboken City Council


calls for the Administration to submit for City Council approval no later than
June 20th a replacement law firm to provide the professional services currently
be rendered by Boswell Engineering and upon such approval, to terminate all of

Packet Pg. 209


9.A.7.4

the existing contracts between Boswell Engineering and the City of Hoboken
and in accordance with 20A-17(B) of Hoboken’s Public Contract Reform laws,
disqualify Boswell Engineering from “eligibility for future contracts with the
City of Hoboken… for a period of four calendar years from the date of the
violation”.

Meeting Date: May 16, 2018

APPROVED: APPROVED AS TO FORM:

STEPHEN D. MARKS BRIAN ALOIA, ESQ.


BUSINESS ADMINISTRATOR CORPORATION COUNSEL

 Vote Record - CC - Resolution


Yes/Aye No/Nay Abstain Absent
James Doyle    
Mike DeFusco    
Tiffanie Fisher    

 Adopted Michael Russo    


 Denied Ruben Ramos    
Peter Cunningham    
Jennifer Giattino    
Vanessa Falco    
Emily Jabbour    

Packet Pg. 210

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