Hudson County View

Hoboken to vote on $85k settlement for vendor who got 2-year deal from ex-director

The Hoboken City Council will vote on an $85,000 settlement for a vendor who allegedly received a two-year deal from a former director who is accused of doing so without approval from the administration or city council.

Former Hoboken Health and Human Services Director Leo Pellegrini. Screenshot via Facebook Live.

By John Heinis/Hudson County View

” … GovPilot was a vendor that the Department of Health & Human Services was utilizing for an online Dog Registration platform (there was also some discussion of expanding to include other licensing services),” a memo from Hoboken Assistant Corporation Counsel Alyssa Wells obtained by HCV says.

“Former Director Pellegrini signed a five (5) year agreement for these services on or about February 22, 2021, and based upon that agreement, GovPilot performed services for approximately two (2) years, until the services were shut off due to non- payment on or about December 2022.”

The memo continues that Pellegrini did not receive approval before entering into the five-year deal and the invoices could not be processed by the purchasing department since they do not offer purchase orders without issuing proof of resolution.

GovPilot sued the city last month claiming they’re owed $266,640 in unpaid invoices, as only HCV reported, and the aforementioned memo says the settlement is for $85,000 since it would cover the first two years of the contract ($79,992) “plus an additional amount.”

“In consideration for this settlement, GovPilot has agreed to allow the City to continue utilizing the service for the remainder of 2023 and to export its data. The contract will be considered cancelled, however, so that the City will not remain responsible for any fees beyond December 31, 2023.”

A copy of the resolution on Wednesday’s agenda indicates that the council will be considering a settlement with GovPilot, though does not list any material details at this time.

An inquiry seeking comment was forwarded to Wells, who reiterated that the city does not discuss litigation or personnel matters.

Leo Pellegrini, who was the head of the health and human services department for 14 years, resigned abruptly on May 3rd with no explanation or comment from the city, though former Mayor Dawn Zimmer – who hired him – praised him for his service.

At the council meeting that evening, a $20,000 emergency contract with Lowenstein Sandler LLP, the law firm that employs the first New Jersey Comptroller Matthew Boxer, to investigate the circumstances of Pellegrini’s departure.

As the city searches for a new director, Pellegrini’s former responsibilities have been divvied up among three people.

Health Officer Nancy Tarantino is serving as the head of the Division of Health, Supervisor of Senior Citizen Activities Tom Foley is the head of Senior Services, and Cultural Affairs Administrator Geri Fallo is running the Division of Cultural Affairs.

The Hoboken City Council will convene on Wednesday at 7 p.m., with the meeting streaming live on the city’s Facebook and YouTube pages.

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