Funds can be recovered in insurance claim, officials say
By Amy Batista, Special Writer
HIGHTSTOWN — The Borough Council has allocated $100,000 for professionals to evaluate Borough Hall’s condition.
The Borough Council approved a resolution Aug. 5 authorizing a special emergency appropriation of $100,000 for expenses incurred in connection with the flood damage at Borough Hall caused by Hurricane Irene.
”These funds are chargeable against the insurance claim and recovered in the future,” said Police Director James LeTellier, who is serving as the borough’s interim administrator.
The council voted 5-1 to approve the resolution. Councilwoman Susan Bluth voted against the measure.
Ms. Bluth questioned how this resolution was any different from the bond ordinance for $4 million that residents recently petitioned against, and the council withdrew.
She said, “In my opinion, this is circumventing the bond ordinance that was rescinded for the same purpose.”
She also questioned the need for the emergency resolution almost two years after Hurricane Irene.
”Last, but not least, I spoke with the Division of Local Government Services, to whom I believe this resolution (has) to be submitted, and I was informed that two years after the fact is not an emergency,” Councilwoman Bluth said. “Just because bond counsel said it does not mean that it is gospel. This is now almost two years after the hurricane. I was laughed at when I said there’s on the table an emergency resolution. This is not an emergency.”
Councilwoman Gail Doran said, “We have legal advice from our bond counsel that I will give greater weight to.”
Councilwoman Lynne Woods asked for a “legal opinion” from Borough Attorney Frederick Raffetto.
According to Mr. Raffetto, the resolution was drafted based on a legal opinion by bond counsel Edward J. McManimon.
”I am going to defer to bond counsel on this and leave that to your discretion because you were part of that session,” Mr. Raffetto added. “Bond counsel represented that this was something available . . . to Borough Council to fund the expense associated with this.”
Councilman Rob Thibault said he is “comfortable” with this resolution.
”I have thought long and hard about this,” Councilman Thibault said. “Is this subverting the petition? No, because, frankly, we can’t do anything. We couldn’t negotiate with the insurance company for a settlement to move someplace else without this information.”
According to Councilman Thibault, the insurance company is going to “pay the least amount they can.”
Lexington Insurance estimated the borough would receive $1.9 million to rebuild or refurbish the Borough Hall.
”We have to do this no matter what,” Councilman Thibault said. “To delay this just keeps pushing off any kind of future discussions. We need to do this to settle with the insurance company.”
Council President Larry Quattrone said, “The only reason I am going to vote yes to this is because it is a $100,000 instead of $4 million.”
With the funding in place, Mr. LeTellier recommended the mayor and council consider Eli Goldstein’s proposals for the Borough Hall project so it could “move forward and get this project going as far as seeing what needs to be done.”
Mr. Goldstein has proposed two scenarios for Borough Hall. The first would be to create a 10,000-square-foot building of which 5,000 square feet would be a renovated portion of the existing Borough Hall and 5,000 square feet would be a new freestanding police building.
The second scenario would be to create a new 10,000-square-foot structure, combining Borough Hall and the Police Department.
According to Mr. Raffetto, there are two phases of the project the borough has to start. Phase 1 would cost $29,000. Phase II would cost $16,000 for a grand total of $45,000, he said.
The first phases involves generating a computer model of the existing municipal building, assessing its condition, preparing a rehabilitation code analysis, developing initial design concepts, developing a preliminary design and construction schedule and presenting design concepts to the council.
The second phase includes assisting the borough in negotiations with its insurer and developing preliminary design and construction budgets.
The council then passed a resolution authorizing Goldstein and Partnership to complete both phases for $45,000. The council voted 5-1 to approve the resolution. Councilwoman Bluth voted against it.
She said, “How can you hire the first person who walks in?”