The Hoboken City Council reviewed a payment plan with Hudson Regional Health, who operate the Hoboken University Hospital, to collect on the $183,005.50 they owe the city for parking at the Midtown Garage at yesterday’s caucus
By Daniel Ulloa/Hudson County View
The resolution, sponsored by 2nd Ward Councilwoman Tiffanie Fisher, seeking to put HRH on a payment plan so that the city can collect what their due as they state down a $17 million dollar municipal deficit.
3rd Ward Councilman Mike Russo asked for a brief explanation of what was being proposed.
“This is authorizing … a payment plan with HRH. Hospital employees, a certain number of them receive discount parking to park in midtown garage,” replied Hoboken Transportation and Parking Director Ryan Sharp.
“Historically, the hospital has subsidized daily parking for customers of the hospital through validations, and they pay the city back for the amount they subsidize themselves … making the city whole.”
Sharp continued that HRH has not been living up to their end of the agreement since September and the city has sought to get them on a payment plan as a result.
HRH’s own financial woes are well documented in light of them closing Heights University Hospital in Jersey City on Saturday evening, as HCV first reported.
“It involves $30,000 upfront and $15,000 per month, along with monthly fees …This puts them in breach of that contract, correct?” Russo continued.
“Correct,” Sharp said.
“I would highly recommend that we issue to them the revoking of that contract immediately and then go into negotiations for a brand-new contract with that repayment of all the back fees and increase to the parking spaces per individual,” Russo said.
He argued that they’re only paying about $50 a month, to which Sharp said it’s more like $82.
5th Ward Councilman Phil Cohen, the council vice president and an attorney by trade, said that they should go into closed session if they were going to discuss the possibility of litigation.
“If we’re trying to break a contract, then yes, I would absolutely suggest we go into closed session,” Corporation Counsel Arlene Perez noted, to which Cohen said he thought that’s what Russo was suggesting.
“… We’re agreeing to allow the breach to not exist anymore or cure the break. What Mike is suggesting is a different path to not give them that,” Fisher explained.
Russo said he was comfortable going to closed discussion to discuss before Fisher asked if the full amount HRH owes the city for parking is around $2.2 million.
Business Administrator Jennifer Gonzalez said approximately $1.2 million in parking debts were erased when HRH acquired CarePoint Health’s three hospitals via bankruptcy in April.
Nonetheless, Fisher expressed that she was under the impression HRH owed the Mile Square City money for water and parking fees, as well as property taxes.
“That’s $2.2 million effectively of cash that we didn’t receive,” she argued, noting that it has negatively impacted their budget surplus.
“Correct. That is why we are pursuing all those other amounts, as well on a separate path from parking,” Gonzalez stated.
Fisher later said that HRH should not be let off the hook when they owe the city millions.
“That’s $3.4 million if you add those three. When we think about our surplus of $10 million, it actually would have been $13 million all things else being equal … if the hospital paid the city,” she explained.
“Are you going to budget for them to pay us this year?” Fisher asked.
Gonzalez said the goal is for the city to be paid what their owed, which is roughly “$1.4 million in taxes, $800,000 in water, and $600,000 in sewer in a lien sale,” according to Gonzalez.
That prompted Fisher to ask how they do a lien sale, though Gonzalez didn’t get a chance to answer as other council members interjected.
“We have massive problems right now with our residents that need parking. There’s also some stuff on the table with the raising of fees for parking,” stated 1st Ward Councilman Paul Presinzano.
“Is there any urgency-urgency to have this on this council agenda? Or can we discuss this internally?” Council President Ruben Ramos asked.
Gonzalez responded that the resolution could be pushed to the next meeting in two weeks.
“I honestly think we need counsel on this … There’s so much on the line with the hospital that it’s probably worth having a closed session,” Fisher declared.
Ramos then asked if they could do a closed session on Wednesday, to which Deputy Clerk Jerry Lore said they could not since the meeting has already been advertised.
As a result, Ramos suggested they could remove this resolution from the agenda and go into closed session at the end of the meeting.
Gonzalez said outside counsel has largely dealt with HRH and would prefer to have this matter discussed at the beginning of Wednesday’s meeting.
“We should at least notify the public,” Fisher added.
“We’re notifying them right now! … Half hour and we’ll take it from there … They owe us quite a bit of money,” Ramos said. Tuesday morning, the online agenda listed the resolution as being carried.
The Hoboken City Council will convene for a regular public session on Wednesday at City Hall, 94 Washington St., at 7 p.m., and will stream live on their YouTube page.
Apparently, Vijay, the former chief of staff to Bhalla is the mouthpiece for the hospital. I always knew that guy was a scumbag, now he’s proving it to the world.
Expect a real-estate deal…