Aberdeen’s Land Grab

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(Note: I have overstated my case regarding the dollar land deals. Most of them involved concessions necessary to win approvals for variance requests.)

Remember Councilwoman Gumbs’ special land deal? She received $3,500 for a piece of property that, according to the land survey, was wider than her lot. A relative of hers got $1,500 for a strip half a yard wide. The purchases were part of Aberdeen Township’s road improvement program, overseen by CME Associates. Meanwhile, what about those people who weren’t her neighbors? Since 2005, all property owners who lost land to the road improvement program were each given one dollar. That’s right. Those unlucky enough to not live near Ms. Gumbs only got a buck. Except for one person who took the township to court.

The following table lists the properties near Ms. Gumbs, how much land they lost, and how much they were compensated.

Block/Lot	Length	Depth	Sq. Feet	Cost	Cost/Sq. Ft.
161/6	40	1.25	50	$210.00	$4.20
161/7	100	1.25	125	$500.00	$4.00
173/1	197.92	1	197.92	$700.00	$3.54
173/3	60	1	60	$300.00	$5.00
173/4	60	1	60	$700.00	$11.67
173/5	60	1	60	$300.00	$5.00
173/6	75	1	75	$300.00	$4.00
173/7			296.33	$1,150.00	$3.88
173/8	123.13	5.75	708	$3,500.00	$4.94
173/10,11	61.38	5.75	352.94	$2,150.00	$6.09
173/13			35	$250.00	$7.14
174/13			39.82	$160.00	$4.02
174/15	60	1.5	90	$1,500.00	$16.67
174/16	40	1.5	60	$250.00	$4.17
174/17	40	1.5	60	$250.00	$4.17
174/18	100	1.5	150	$765.00	$5.10
174/19	100	1.5	150	$700.00	$4.67
174/20			261.65	$1,110.00	$4.24

This table shows all non-commercial properties that lost land to the road improvement program since 2005 and how much they were compensated.

Block/Lot	Sq. Feet	Cost
174-20.1	1290	$1
367-3	625	$1
206-1.03	1127	$1
253-5.02	247.5	$1
309-7	265	$2000
314-25	2298	$1
176-7	2737	$1
273-8.02	250	$1
180-14.01	998	$1
180-13.01	250	$1
347-33	250	$1
224-5.01	275	$1
256-13	500	$1

The township justified the difference by purchasing the land in the first case but only requesting easements in the second case. From what I hear, landowners were instructed by the township engineer, CME Associates, that they were not entitled to fair value compensation because they retained possession of their properties.

I could argue that New Jersey law recognizes public right-of-way easements as the equivalent of taking “any interest in land” and fall under the eminent domain statutes but that’s unnecessary; landowners are protected under the 5th Amendment of the US Constitution – “nor shall private property be taken for public use, without just compensation”.

Using someone’s property for a public road is the very definition of taking private property for public use. The idea that an easement to build a public road does not involve “taking” private property has no legal basis whatsoever. Property involves a “Bundle of Rights” including the “right of exclusion”. The landowner has lost his right of exclusion, has lost an interest in his property, and has a constitutional right to “just compensation”.

On January 24th, Bernardine Golembeski challenged the township’s attempt to confiscate 265 square feet and was awarded $2,000 compensation by the court. The township was represented by former township attorney, Norman Kauff, who retained Aberdeen’s public defender, Marc Schram, to appear in court on his behalf. (Mayor Sobel’s claim that Mr. Kauff only works “of counsel” for the municipal attorney appears inaccurate.)

I don’t know which legal eagle concocted this cockamamie scheme but here’s another legal principal the township may want to consider – theft by fraud. If any vendor, working on the township’s behalf, secured property, or any interest in property, through a fraudulent misrepresentation of the facts, then that vendor and the township are in legal jeopardy. If this legal ploy was proposed by an attorney, he should be disbarred. Considering the millions of dollars we shower upon CME Associates in no-bid contracts, it’s grotesque to imagine we would cheat landowners out of a couple thousand dollars. >>> Read more!

Budgeting CME Associates Style

Six weeks ago, we discussed how Aberdeen Township appeared hell-bent on spending as much as they could before the next election cycle (see “Aberdeen Township Goes for Broke”). Among the flurry of expenditures was $237,071.25 in no-bid contracts to the township engineer and the council's largest patron, CME Associates. Our town council has chosen to begin August by rewarding CME Associates with another $625,006 in no-bid contracts. Everybody knows these no-bid contracts enable monstrous overcharges. The only question is “How much?”

For one example, let’s review the Aberdeen (Strathmore) Pump Station. On April 14, 2004, CME submitted two proposals for rehabilitating the pump station at a total cost of $249,500. Eight months later, “[b]ased on the latest data, and based on anticipated material cost increases (i.e. steel and concrete)”, CME raised the combined cost to $320,000. During those eight months, the prices of steel and concrete increased about 15% and 8% respectively. Let’s assume that material costs accounted for 30% of the original estimate. A 15% price increase in materials would have been under $12,000. Yet, CME raised their prices by $70,500.

But the story doesn’t end there. In the revised proposals, CME listed their combined engineering fees as $30,000. Nearly two years later, they raised their fees by 125% to $67,750. To justify the exorbitant increase, the cited the following:

• Cost to separate the proposal into two bids
• Cost to oversee a utility pole’s relocation

Never mind the proposals were always separated into two bids, that relocating the pole was part of the original project, or that the extra billings were bogus any way you looked at it, Aberdeen Township approved the additional charges.

Another example is the grant application for Fireman’s Field (Oakshades Park). Grant applications nearly always exaggerate the costs to cover any possible exigencies but look at CME’s forecasts. Lighting - $241,500 ($210,000 plus 15% contingency costs) and $78,681.33 for engineering and administrative costs (read “CME fees”). The actual cost for the lighting was nearly half that amount at $127,429 and the engineering component for the lighting was zero. CME Associates did not get one penny towards the field lighting despite their budget claims.

(So far, by my count, CME Associates lost over $150,000 during Stuart Brown’s tenure once you count the lighting at Fireman’s Field, cost reductions for the tax map revision, and the Aberdeen Recreation Master Plan. Makes you wonder why Brown got fired.)

To be fair, CME Associates is generally considered a competent firm but, as recent blog comments have noted, the road work on Gerard Avenue has demonstrated an astounding level of negligence. We know from prior experience that CME has trouble conducting a land survey but how did they miss the giant parcel of county land adjacent to the field (Block 169 Lot 9)? The lot isn’t listed on Aberdeen’s tax rolls and has never belonged to Aberdeen Tonwship. Hence, the work stoppage on Gerard Avenue – the township never received permission to work on county land. The cruel irony is that, not only had CME already reviewed the tax map for the Fireman’s Field project, CME was the company responsible for updating the tax map prior to the property revaluations.

From January 1st, 2005 through March 25th, 2008, CME received $3,692,445.72 from the township. (The total vendor payment sheet is 105 pages so I only uploaded the first and last pages.) Between no-bid contracts, a cozy relationship with the town council, and massively inflated billings, CME Associates is quite fortunate to never have to compete for any township work. Pumping money into the Aberdeen Democratic Party’s coffers is sufficient qualification. >>> Read more!

Aberdeen Township Goes for Broke

Is Aberdeen Township’s all-Democrat council sensing the end is near? How else to explain the sudden rush to break the bank? In the past month alone, the township has awarded $237,071.25 in no-bid contracts to CME Associates and approved another $957,383 in “emergency” appropriations. All this on top of the township’s largest tax increase in history coupled with its largest asset drawdown in history. Question is - will they leave anything for the rest of us when they’re gone?

First, a quick recap of the budget mess. Shortly after winning the election on a platform of “fiscal responsibility”, the township raised taxes by a jaw-dropping 12%. Before considering any “emergency” appropriations, this year’s $15.3 million budget is an 8.8% increase over last year’s $14.1 million budget (Sheet 11). Include emergency appropriations, and the township will be spending $16.3 million, a breathtaking 15% increase over last year’s $14.2 million (Sheet 3a).

Take another look at that number. Assuming there are no further “emergency” appropriations, we’ll be spending 15% more than last year. At that rate of increase, the municipal budget would double every five years.

As for the state mandatory 4% CAPs, the township found a nifty way around that. Under New Jersey State law, “the governing body may, by resolution adopted by a 2/3 vote of the full membership thereof, make emergency temporary appropriations for any purposes for which appropriations may lawfully be made.” (40A:4-20) So, by a supermajority vote, the township can make any “emergency” appropriations and these appropriations are not restricted by state CAPs. Furthermore, an emergency is whatever the township calls an emergency. Meanwhile, the difference between a simple majority and a 2/3 supermajority on the town council is just one vote.

Then there’s the recent bonanza for CME Associates, “coincidentally” the largest donor to the Aberdeen Democratic Executive Committee - $237,071.25 in no-bid contracts. Let’s be clear – it is a complete abrogation of fiduciary duty to not seek lower bids from competent parties when reasonable to do so. $13,081.25 for an “Aberdeen Recreation Master Plan”. $14,250 for engineering services on the former “Ernst Zobel Company Site”. $127,990 for the “Stabilization of an unnamed tributary of Mohingson Brook”. $63,000 for “ADA Accessible Sea Wall Park Improvements”. $18,750 for the “Preliminary Assessment & Limited Site Investigation for Sea Wall Pedestrian Access Project”.

Once again, take another gander at these proposals. CME presented a proposal for an Aberdeen Recreation Master Plan on November 12th, 2007. All the other proposals are within the past two months. In other words, this proposal was rejected by prior management (i.e. Stuart Brown) and then reconsidered and approved after his departure.

The Ernst Zobel Company Site is a piece of land that has been slated for the transit village project. But there is no development on the transit village project. What could the township possibly be doing that couldn’t wait for a developer to do on his dime?

None of the other three projects require any intimate knowledge of the township and could certainly be done for less through competitive bidding. I wonder why they need to be done at all amidst skyrocketing taxes.

The level of reckless spending is unusual even by our council’s spendthrift standards. Is this a last gasp to solicit even more campaign contributions or has the council chosen to go out with a bang? Whatever the case, this council sure does enjoy spending other people’s money. >>> Read more!

It Pays to Play for CME Associates

On October 10th, 2007, the New Jersey Election Law Enforcement Commission released its Pay-to-Play online database. The state defines Pay-to-Play as “[c]ontributions by for-profit business entities that have or are seeking New Jersey government contracts.” Of the 1775 political contributors who filed, Aberdeen Township’s engineer, CME Associates, is #3 on the list.

Government contracts are normally awarded to the lowest qualified bid. The major exception is in the area of professional services, which are deemed too complex to simply award to the lowest bidder (you don’t pick doctors and lawyers based upon who’s cheapest). Aberdeen adheres to the “Fair and Open” process which allows anyone, no matter how much money they’ve given to the officeholders, to bid for business, as long as the process is open to public review.

In 2006, the only year available in the online database, the three largest participants in Pay-to-Play were engineering firms. CME Associates was the third largest – they contributed $404,899 and won $19.9 million in government contracts. Law firms were the second largest group to engage in Pay-to-Play. Kudos to Norman Kauff whose firm, DeCotiis, FitzPatrick, Cole & Wisler, was number one in government contracts ($12 million) but only third in political contributions ($190,486). It’s no surprise that municipalities that hire Kauff also prefer to do business with CME Associates.

Despite the large figures, these numbers grossly underestimate the true level of contributions and government contracts. For example, they don’t count the $50,000 CME Associates donated to the Democratic Legislative Leadership Committee in 2006. Nor do they include the hundreds of thousands of dollars CME Associates collects in “fees” directly from the local residents and businesses in Aberdeen Township each year.

Over the past decade, CME Associates has donated more than $60,000 to the Aberdeen Democratic Executive Committee, not including any monies that may have been “wheeled” through the Monmouth County Democratic Party or given “off the books”. During that same period, CME Associates has been paid back two hundred-fold.

I recently received a copy of all vendor payments to CME Associates from January 7th, 2005, to March 18th, 2008. During that time, the township made 2,597 payments to CME Associates, totaling $3,692,445.72. Much of that money comes directly from the township, such as the $229,595 paid on January 12th, 2008, for road improvements, but most payments come from the locals.

The game works as follows – the township continually expands the range of permits that require review by an engineer. The homeowner/business owner is then required to place funds in escrow to cover any future expenses. CME Associates will drain the escrow account of all funds before they certify the property. The system becomes a scam as residents and local businesses are forced to pay for unwarranted services to a company that is the governing body’s single largest contributor.

If unnecessary and inflated payments to CME Associates were added to the tax levy, Aberdeen Township would have the highest tax rate in Monmouth County, compared to the number three position it now holds.

For less than $8,000 a year in political contributions, CME Associates gets to take over a million dollars a year from the township. Looks like Mayor Sobel has pimped out the township for “professional services” in a no-bid contract. >>> Read more!