The Town of Guttenberg is suing the Township of North Bergen in an effort to halt a $38 million lease deal with the township’s municipal utilities authority (MUA) that both municipalities utilize.
Photo via Google Maps.
By John Heinis/Hudson County View
The four-count lawsuit, filed in Hudson County Superior Court one week ago, alleges that the ordinance adopted by the North Bergen Board of Commissioners on August 12th is “arbitrary and capricious” and also violates a 1989 service agreement with the NBMUA.
“The Ordinance violates Guttenberg’s right … to consent to the construction or acquisition of any facilities or equipment constituting a part of the ‘Sewerage System’ utilized for the provision of service to Guttenberg because the Ordinance authorizes entry into and execution of the Lease Agreement enable NBMUA to acquire the North Bergen sewer system,” writes Guttenberg counsel in the matter John Stone, a partner at DeCoitiis Doyle.
He also contends that Guttenberg has not consented, nor were they even consulted, on the lease agreement, which could increase rates for Guttenberg residents without providing any additional benefits – all in breach of the 37-year-old agreement.
Through the suit, Stone writes that attorneys for Guttenberg were not given relevant documents or information related to the proposal between the township and the MUA.
Further, the ordinance needs to state that Guttenberg residents will not be on the hook for any costs of the NBMUA’s debt service for the issue of the bonds, nor for the costs of any bonds to acquire a portion of the local sewer system from the township, the suit says.
Overall, the court filing alleges violation of the 1989 agreement and breach of the NBMUA’s “duty of good faith and fair dealing,” while also seeking a declaratory judgement.
As a result, Guttenberg is seeking the related local legislation to be voided, and if they cannot be voided, assurances that Guttenberg residents will not have to pay for debt service, as well as compensatory and consequential damages – along with any other relief the court deems just and equitable.
“North Bergen’s sewer system management consolidation plan is a critical step towards making the community more affordable for residents. The plan will save North Bergen taxpayers millions of dollars in reduced maintenance costs and will have no financial or service impact on Guttenberg residents, which makes the arguments in this lawsuit completely invalid,” said North Bergen spokesman Nick Bond.
“Mayor Sacco and the Board of Commissioners are committed to taking this bold step to lower costs for North Bergen taxpayers, and they are confident the case will be dismissed once Guttenberg and the court realize there is no impact on Guttenberg.”
Guttenberg Mayor Wayne Zitt said Tuesday that this could’ve been resolved in short order under different circumstances.
“They could’ve avoided all of this by giving us some documentation in the beginning. We’re a part of this system and they should’ve made us aware of this. North Bergen’s lack of communication led us to this lawsuit,” he told HCV.
In July, when the situation turned into an impromptu proxy war between Sacco and Assemblyman Larry Wainstein (D-33), Township counsel Tom Kobin said the proposal would be cost effective and a big benefit for local taxpayers for decades to come.
As of now, Wainstein is expected to run for North Bergen mayor a fourth time in May of next year with the backing of state Senator (D-33)/Union City Mayor Brian Stack and the Hudson County Democratic Organization (HCDO).
Additionally, Parks and Public Property Hugo Cabrera is currently viewed as the most likely mayoral candidate to succeed Sacco.
