Thursday, December 12, 2013

The Record: Related-party deallings often involve owner of branch site

Related-party dealings often involve owner of branch site

Sunday December 8, 2013, 10:05 AM

The Record

 
 
A review of the annual proxy statements filed by North Jersey banks this year with the Securities and Exchange Commission show at least five bank branches are wholly or partially owned by directors. None of these deals has raised any public concern from regulators.
Valley National Bank said in its latest filing, for example, that it paid $417,490 in rent last year to Anjo Realty, the landlord for a Totowa branch and offices, which is owned by one of its board members, Robert C. Soldoveri. He owns 25 percent of Anjo, and his father owns 26 percent, according to the filing.
Valley said in its disclosure that the terms "were no less favorable to the bank than could have been obtained from an unaffiliated third party." The rent Valley paid to Anjo increased 6.5 percent from the previous year. The bank and Soldoveri did not respond to requests for comment.
Valley also disclosed that it paid $190,000 in 2012 — the same amount paid in 2011 — to rent a branch in Westbury, N.Y., from Westbury Plaza Associates, controlled by the estate of a board member’s father-in-law.
Lakeland Bank, based in Oak Ridge, leases a branch in Little Falls from Fletcher Holdings, which last year received $153,031 from the bank in "rent and related expenses." Director Stephen R. Tilton Sr. is the chairman and CEO of Fletcher Holdings. That amount was about the same that the bank paid Fletcher Holdings in 2010 and 2011, according to disclosure filings, but 15 percent higher than the $136,000 paid in 2008.
"Typically, our leases are fixed for five years and then bump up," said Thomas Shara, chief executive of Lakeland Bank.
Englewood Cliffs-based ConnectOne Bancorp disclosed in the prospectus for its $48 million initial public offering earlier this year some more complicated branch lease deals involving bank insiders.
Seven of the bank’s nine board members, either directly or indirectly, are landlords of the bank’s Hackensack and Cresskill branches.
Participants include Michael Kempner, founder and CEO of East Rutherford-based public relations firm MWW; Frank Sorrentino III, the bank’s chairman and chief executive; Director Frank Huttle III, who is the mayor of Englewood; and Director Joseph Parisi Jr., mayor of Englewood Cliffs, among others.
According to the prospectus, Sorrentino, Parisi, Huttle and Kempner each own 11.1 percent of the limited liability company that acts as landlord of the two branches, while the other three directors involved have smaller stakes.
All three of the bank’s audit committee members and all but two of the board members own portions of the limited liability company, raising the question of how the bank could put together a quorum of non-conflicted directors to approve the deal, as is customary, according to a review of a number of bank policies.
Bank officials declined to answer questions about the lease arrangement, and board members have declined to comment about their deals with the bank. Speaking generally, Sorrentino said the bank’s related-party transactions have been reviewed by regulators as well as the bank’s auditors.
The rents paid by ConnectOne for the Cresskill and Hackensack branches were approved by the state banking regulator in June 2006 and December 2006 as "fair market rent," the state Department of Banking and Insurance said.
In an emailed statement the company said, "ConnectOne always has been and always will be transparent in its business transactions and is fully compliant with all federal and state statutes."
According to the bank’s prospectus, automatic rent increases of at least 2.5 percent a year are written into the agreements. So since 2006, the rent has risen as of the end of last year by 16.9 percent, to $184,509 for the Cresskill branch, and by 29.7 percent, to $192,017 for the Hackensack office.
ConnectOne’s prospectus assured would-be investors that the rents received by the board members, in light of each directors’ "overall net worth and cash," were not large enough to affect their independent judgment as overseers.
**********************************************************************************
 ConnectOne Bank in Cresskill, top, and Lakeland Bank in Little Falls, below, are owned wholly or in part by members of the banks' boards of directors or their relatives.
PHOTOS BY DON SMITH / STAFF PHOTOGRAPHER
ConnectOne Bank in Cresskill, top, and Lakeland Bank in Little Falls, below, are owned wholly or in part by members of the banks' boards of directors or their relatives.



One of the more common related-party transactions disclosed by publicly traded banks are deals in which a board member or relative owns all or part of a bank branch office.
Regulators who review these deals require that any rent or lease payments to a related party be in line with what the bank would pay a company with which it has no insider relationship.

The Record: Regulators are close to tightening standards for links between community banks and the firms they hire

Regulators are close to tightening standards for links between community banks and the firms they hire

The Record

When Oak Ridge-based Lakeland Bank needed heating and air conditioning services, it tapped a company run by Mark J. Fredericks, who is on the bank’s board of directors.
For a portion of its legal work, Wayne-based Valley National Bank turned to the lawyer Graham O. Jones, a board member, who received $310,681 last year for debt collection work and bank-customer loan closings.
And when ConnectOne Bancorp, based in Englewood Cliffs, went public last year, it benefited from the advertising and marketing expertise of the public relations firm MWW, which was paid $525,800 for its services. Michael Kempner, founder and chief executive of East Rutherford-based MWW, is a co-founder and board member of the bank.
These so-called related-party transactions, which have been reviewed by regulators, illustrate how board membership, especially in small banks, often is accompanied by business relationships.
Bankers say these deals are often good for the bank and its shareholders. Directors who provide professional services or who rent real estate to the banks they serve sometimes charge less than they would charge another customer or tenant. And they are often large shareholders, with a vested interest in the bank’s success.
But the deals also raise real or perceived issues of insiders using their positions to help themselves. The deals must be disclosed to regulators — ranging from the Securities and Exchange Commission and the Federal Deposit Insurance Corp. on the federal level to the state Department of Banking and Insurance — who are on the lookout for conflicts of interest, fraud and lax corporate governance that could put shareholders’ investments or depositors’ funds at risk. The regulators want assurance that fees paid to a company owned in whole or part by a board member are in line with what the bank would pay a company with which it has no insider relationship. In other words, no sweetheart deals.
And these transactions will get even closer scrutiny under new standards proposed by the Public Company Accounting Oversight Board, an industry watchdog, that are scheduled to take effect a week from today, subject to approval of the SEC.
"The regulators take a very close look at this," said Bert Ely, a banking consultant in Alexandria, Va. "This is often a factor in bank problems and failures because insiders take too much money out of the bank," he said.
"The agencies are very consumer-oriented right now, and they are taking a very jaundiced view of these transactions," said Donald J. Musso, president and chief executive of FinPro, a consulting firm in Somerset County.
Industry experts say the scrutiny has intensified since the financial collapse and regulatory reforms, which have made banker-regulator relations more contentious.
The SEC requires publicly traded companies to disclose related-party transactions that exceed $120,000 in a given year. Related parties are defined as directors and executive officers and their immediate family members, including in-laws and stepchildren. They also include shareholders who own 5 percent or more of a company and their family members. Privately held banks must disclose insider deals to regulatory examiners, who are trained to treat them as potential signs of abuse or fraud.
Ely points to the case of Vernon Hill, former chairman of Cherry Hill-based Commerce Bancorp, who was investigated over millions of dollars in bank payments made each year to companies that Hill family members controlled, including one owned by his wife that provided design work and furnishings for bank branches. The investigation led to his ouster in 2008, around the same time Commerce agreed to be bought by TD Bank.
More locally, Mariner’s Bank, based in Edgewater, was ordered by state and federal regulators in early 2012 to tighten its controls on loans to insiders and other insider relationships that were not described in detail publicly. The privately held bank continues to operate under increased oversight.
Thomas Shara, chief executive of Lakeland Bancorp, parent of Lakeland Bank, noted that in addition to the Fredericks heating oil deal, in which Fredericks was the winning bidder, Lakeland leases a branch in Little Falls from Fletcher Holdings, which received $153,031 in rent last year from the bank. Board member Stephen R. Tilton Sr. is the chairman and chief executive of Fletcher Holdings.
"Steve Tilton and Mark Fredericks are two of our largest individual shareholders, and they have a vested interest on both sides, and they are going to do what’s right for the bank," Shara said. "As long as the transactions are arm’s length and fully disclosed, I don’t think there is anything wrong with them."
Shara was the only banker who agreed to be interviewed for this article. Others did not respond, declined to comment or responded with general statements.
MWW’s Kempner, who is also deputy national finance chairman for the Democratic National Committee and a major fundraiser for President Obama, said in an emailed response to The Record’s questions about the public relations work his firm does for ConnectOne that "MWW is proud of the work that it has done on behalf of ConnectOne — the marketing and communications program has been a material part of the bank’s success." The bank raised about $48 million in a February initial public offering by selling more than 1.8 million shares that have increased in value by more than a third.
The New York Stock Exchange and Nasdaq require that a majority of a company’s board members be "independent" overseers. Nasdaq, on which ConnectOne trades, says directors cannot be considered independent if they engage in related-party transactions greater than either $200,000 or 5 percent of the annual sales of the director’s company.
ConnectOne said in a regulatory filing that the board had determined the fees the bank pays to Kempner’s firm do not affect Kempner’s status as an independent director, in part because the sum is a small portion, less than 1 percent, of MWW’s total revenue.
At an investor conference in Manhattan in the summer, ConnectOne Chairman and CEO Frank Sorrentino III also declined to discuss the related-party transactions.
"It’s all been disclosed to our regulators," he said. "It has been vetted by our regulatory agencies, our auditors, by everyone. So we have complete transparency about what we do and what we will do in the future," he said.
Valley National Bancorp, one of the largest New Jersey-based commercial banks with one of the largest boards, also has disclosed a number of related-party transactions.
The lender said in a 2013 filing with regulators that it paid $90,000 in 2012 consulting fees to MG Advisors, owned by Michael Guilfoile, spouse of a director, Mary Guilfoile.
Valley also disclosed that the son-in-law of longtime Chairman and CEO Gerald Lipkin has received more than $650,000 in bank-owned life insurance commissions since 2001 because he introduced a broker to the bank who sold the policies. Over the life of the policies the son-in-law, Robert Keith Sauertig, a financial adviser at Park Avenue Securities, will receive nearly $1 million in commissions, the bank said in a filing with regulators.
Sauertig noted in a phone interview that the bank has disclosed the relationship in its filings with the SEC every year since 2001. "The bank does not pay me, the third party insurance broker pays me," he said.
The company said in the filing that the commission arrangement is typical for the life insurance industry, and that Lipkin was not involved in the negotiations.
Publicly traded banks and other public companies may soon face tougher audits of these types of related party transactions.
If the SEC approves the new standards, independent auditors will have to evaluate more closely how well such deals are disclosed and accounted for in financial reports of all public companies. The new standards would require auditors to go to greater lengths to understand financial relationships with insiders that might increase risk of financial reporting misstatements. This includes performing additional inquiries to verify that such transactions are conducted at arm’s length. The new standards would be effective for audits of fiscal years beginning on or after Dec. 15.
Industry experts say smaller companies, including many publicly traded community banks, tend to have greater numbers of related-party transactions and are likely to be among the companies most affected by stronger audits — which could result in the unwinding of some long-standing business relationships.
So-called emerging-growth companies, including ConnectOne Bancorp, which are allowed to raise capital under relaxed regulatory requirements, may be exempt from the new standards. The 2012 Jumpstart Our Business Startups Act says that any rules adopted by the Public Company Accounting Oversight Board after April 5, 2012, do not apply to the audits of emerging-growth companies, unless the SEC "determines that the application of such additional requirements is necessary or appropriate in the public interest, after considering the protection of investors and whether the action will promote efficiency, competition and capital formation." The oversight board is reviewing public comments on the matter.
Herb Snyder, chairman of the accounting, finance and information systems department at North Dakota State University in Fargo, who has written on the subject, said audits may become more expensive for companies that have a lot of related-party transactions, but "the costs are consistent with the need to deal with the increased risk of [financial] misstatements."
Musso, the Somerset County consultant, said that in light of increased government scrutiny, a growing number of community bankers, fearing costly enforcement actions, are avoiding any deals likely to draw criticism from consumer advocates or attention from regulators.
"People are using an abundance of caution," he said. "They are afraid of being in a conflicted position."

Wednesday, January 30, 2013

If the Northern Valley Press or Suburbanite isn't delivered

The Northern Valley Press and the Suburbanite are available free in newspaper boxes located at the southwest corner of Palisade Avenue and Summit Avenue, near the bus shelter. 

The January 28, 2013 edition of the Northern Valley Press had a front page article on the emergency sirens. 

Saturday, January 19, 2013

Letter to the Suburbanite editor: Professionals reappointed 'triple dipping' reader says


Letters: Northern Valley, Jan. 17

Thursday, January 17, 2013

Northern Valley Suburbanite

Professionals reappointed 'triple dipping' reader says

To the Editor:

Englewood Cliffs' Democratic-controlled Council began a new year by reappointing three professionals who participated in the Democrats' vicious, win at all costs campaign and authorizing triple dipping for two employees. Unfortunately, taxpayer funded rewards for their supporters and intimidation of political opponents are business as usual with Englewood Cliffs' Democrats.

The three professionals who participated in the "Mayor's Newsletter" likely contributed to the destruction of democracy in Englewood Cliffs. Who will be willing to run against the Democrats if the price is vicious, unsubstantiated personal attacks and retaliation against their family? The borough attorney, tax appeal attorney and borough auditor indisputably benefit from uncontested elections. When Republicans controlled the Englewood Cliffs' Council, these three professionals were not reappointed. However, uncontested elections certainly aren't in the best interest of Englewood Cliffs.

The council also appointed Caterina Scancarella Planning Board secretary and Paul Duffy recreation director. Ms. Scancarella already works full time as Englewood Cliffs' Building Department assistant and part time as Englewood Cliffs' COAH Trust Fund Report preparer. The council did not say what hour Ms. Scancarella will work as Planning Board secretary . Will it be the same hours that she is working as Building Department assistant and COAH Trust Fund Report preparer? The council should rescind Ms. Scancarella's appointment as Planning Board secretary and hire someone else for that position. The borough recently advertised for someone to assist Ms. Scancarella with the Building Department's work. Adding another employee to the borough's payroll so that Ms. Scancarella can triple dip is irresponsible, particularly at a time when the mayor is claiming that Englewood Cliffs has a "major budget deficit."

Likewise, Paul Duffy already works full time as Englewood Cliffs' property tax clerk and part time as Englewood Cliffs' soccer coordinator. During what hours will Mr. Duffy be working as recreation director? Will it be the same hours he is working in the property tax office? Will he be receiving recreation related calls at the property tax office? Triple dipping by employees – in this case concurrently holding a full-time government job and two part-time government jobs – is not in Englewood Cliffs' best interests.

Now that election season is over and character assassination no longer benefits them, Englewood Cliffs' Democrats say they want to "play nice," "put…differences aside," and end political bickering. Expecting Englewood Cliffs' Republicans to remain silent in the interests of community harmony after attacking them from the dais throughout 2012 and running a campaign centered on vicious personal attacks is a textbook example of hypocrisy. The mayor and the Democratic members of Englewood Cliffs Council need to begin leading by example instead of asking residents to do as they say, not as they do.

Lauren J. Eastwood


 

The Suburbanite: Lawsuit filed over installing fire sirens in Englewood Cliffs


Lawsuit filed over installing fire sirens in Englewood Cliffs

Thursday January 10, 2013, 11:00 AM


STAFF WRITER

ENGLEWOOD CLIFFS - After the borough council voted to lift the stop-work order on the replacement of fire sirens in the borough, Gerard Misk, a vocal opponent of the replacement, retaliated by filing a lawsuit against the installation, saying it violates the state's Noise Control Law and that the process to replace them was "tainted."

The re-installment locations are between Bayview Avenue and 9W and between Johnson Avenue and Sanford Drive.

Misk, who lives near the siren on Johnson Avenue, filed the suit Dec. 24, which claims the "tainted bid process" invalidates the borough's contract with Tactical Communications of Connecticut, which allegedly failed to provide necessary documents with its bid. The suit also said the borough improperly paid Tactical the full amount of $63,861, even though 15 percent, or about $10,000, should have been withheld until the sirens were installed and tested.

The suit also claims the new sirens on Johnson Avenue and Bayview Avenue would violate the state's Noise Control Act because they're within 250 feet of a playground and school. The old sirens, installed at least 40 years ago, were grandfathered in.

The borough hired fire siren expert Larry Robertson of Teaneck to advise the borough on the best locations for the sirens. He recommended the sirens stay where they are and said any other locations would shortchange the borough. Misk's lawsuit claims Robertson was never told he could consider rights-of-way along the road as potential sites.

Several other residents have come forward questioning the need for the sirens, saying they favored better technology and the fire department carries pagers, but Fire Chief George Drimones said they aren't as reliable as the sirens.

Many other residents approve of the decision to reinstall them and noted that residents weren't completely informed during recent Hurricane Sandy and could've used the sirens in that instance.

"We are replacing a system where it was that will also have a voice capability...we have gone four months without a full signal and we are suffering," resident Steven Rubinsky said.

In addition to alerting the department to a fire emergency, the new sirens would have a public address system that could broadcast messages in emergencies.

During the Dec. 12 meeting when the stop-work order was lifted Mayor Joseph Parisi said the sirens would improve the quality of life in the borough, especially during storms that might mirror Hurricane Sandy.

"We need to move forward and we could have used the siren during the storm," Parisi said. "In addition to that, we have a volunteer fire department that makes less than 400 calls a year and it will not be going off constantly."

 

The Record: Englewood Cliffs resident sues to stop new fire sirens


Englewood Cliffs resident sues to stop new fire sirens

Monday, December 31, 2012 Last updated: Monday December 31, 2012, 5:12 PM


STAFF WRITER

ENGLEWOOD CLIFFS – A homeowner is suing to stop the borough from installing three new fire sirens, saying it violates the state’s Noise Control Law and that the process to replace them was “tainted.”

Gerard Misk, who lives near the siren on Johnson Avenue, filed the suit Dec. 24, less than two weeks after the Borough Council lifted a stop-work order allowing a contractor to finish installing the sirens.

Only one of the sirens, near Borough Hall, has been installed. The other sirens to be replaced are on Bayview Avenue and in Witte Field near Misk’s home.

Borough officials stopped the project after learning from Misk that crews were replacing the siren pole across from his Samford Avenue house. An investigation revealed that the bid for the project, awarded to Tactical Communications of Connecticut, was never advertised and that Police Chief Michael Cioffi signed the agreement, even though he doesn’t have the authority to sign municipal contracts.

Cioffi has declined to comment on the matter, but borough officials have said Cioffi apparently signed the contract at the direction of Susan Spohn, the borough administrator at the time, who died earlier this year.

Borough Attorney E. Carter Corriston told town officials the borough could not legally rescind the vendor's agreement because the vendor submitted it after legally receiving bid specifications. He also said the council had accepted the bid through a legally binding resolution.

But Misk’s lawsuit claims the “tainted bid process” invalidates the borough’s contract with Tactical, which allegedly failed to provide necessary documents with their bid. It also claims the borough improperly paid Tactical the full amount of $63,861, even though 15 percent, or about $10,000, should have been withheld until the sirens were installed and tested.

The suit also claims the new sirens on Johnson Avenue and Bayview Avenue would violate the state’s Noise Control Act because they’re within 250 feet of a playground and school. The old sirens, installed at least 40 years ago, were grandfathered in.

Misk, a New York City attorney and a member of the Englewood Cliffs Board of Education, said in the suit that the borough ignored provisions in an April 2011 resolution authorizing the new sirens be placed in non-residential areas.

The borough hired a consultant, Larry Robertson of Teaneck, to advise the borough on the best locations for the sirens. He recommended the sirens stay where they are. Misk’s lawsuit claims Robertson was never told he could consider rights-of-way along the road as potential sites.

The sirens, located in the northern, central and southern part of town, have alerted volunteer firefighters to report for duty. Some residents have questioned the need for sirens, saying they’ve been surpassed by better technology. The department's 38 volunteers all have pagers, but Fire Chief George Drimones said they aren't as reliable as the sirens.

Mayor Joseph Parisi did not want to comment on pending litigation, but pointed out other residents, including some of Misk’s neighbors, have had no problems with the sirens. Parisi said the new sirens would have a public address system that could broadcast messages in emergencies.

“We have every right to protect the town,” he said.

 

Letter to the Suburbanite editor: Red light cameras are an insult to citizens


Letters: Northern Valley, Oct. 11

Thursday, October 11, 2012

Northern Valley Suburbanite

Red light cameras are an insult to citizens

To the Editor:

I have been a citizen, taxpayer and biker for over 50 years in Englewood, Tenafly and Cresskill, and have used the 9W/Sylvan Avenue intersection, probably more than 5,000 times. Fortunately, I have never encountered that plethora of automobile accidents that the mayor of that town now uses as "his" excuse for installing photo technology to keep the streets of Englewood Cliffs, safe.

If the statistics quoted in your newspaper are correct, that "67,000 vehicles enter and leave that intersection every day," with 360 days, that would be 24+ million cars each year. At the rate of 40 accidents/year, that is .000002 accidents per vehicle traveling through this intersection, easily making this the safest intersection on the planet!

Statistics aside, the town recently underwent a six-month upgrade of the intersection, which probably cost many thousands of dollars. If the politicians were so concerned with the safety problems, they could have installed better lighting, wider shoulders and maybe even a traffic light which would have instructed drivers in the art of proper turning "right on red."

If there was such a dire need to slow down or even stop those aggressive drivers causing all those accidents, then simply adjust the traffic lights, and install a $10 sign….no turn on red. Unfortunately, that would not have helped offset a community budget sorely in need of financial management. If only one percent of the drivers who encounter this intersection daily, fail to stop (based on a light influenced by two lanes of traffic movement), the town benefits by more than $23,000/day or $8 million/year, without ever needing the trained eye of a police officer….now that's efficiency, and the company in Arizona who makes the cameras, gets as much of the "booty" as the town.

I think it is insulting to the citizens of Englewood Cliffs and to the great corporate population of workers, who also pay taxes in this town. For this town's political leaders to hide behind the pretext of "safety" as the measuring stick for such greed, it only shows the limitations of their public management skills.

Ironically, there is sign on that corner, upgraded many times, but which says that this is the "Billion Dollar Mile" for the value of all the corporations on the road. Now the politicians have given the sign a new meaning….the billions of dollars they steal from those corporations and their own citizens, in the name of safety!

….and yes, I am a contributor to this bounty!

Bob Hesse

 

The Record: Englewood Cliffs stops work on fire sirens to review contract legality


Englewood Cliffs stops work on fire sirens to review contract legality

Monday October 8, 2012, 6:23 PM


STAFF WRITER

ENGLEWOOD CLIFFS – Borough officials have halted work on a $63,000 upgrade of its three fire sirens while they try to determine if the contract, which was signed by the police chief, is legal.

The project, which Council President Joseph Favaro called “one screwed-up mess,” will be discussed at a public work session at 7 p.m. Tuesday in the council chambers in the police department, 10 Kahn Terrace.

The problems with the siren upgrade came to light this summer when Gerald Misk, who lives near the siren on Johnson Avenue and wanted the borough to relocate it, complained that crews were replacing, rather than removing, the siren pole across from his house.

“We were all shocked to find out” work had begun, Councilwoman Carrol McMorrow said Monday.

Technical Communications of Connecticut was the sole bidder on the project, and the council had awarded it the contract. But as far as anyone on the council could recall, no contract had ever been signed.

Mayor Joseph Parisi was particularly surprised because he has to sign all city contracts.

“I was left in the dark,” Parisi said.

Borough officials issued a stop-work order soon after receiving Misk’s complaint, and began investigating the contract. What they’ve been able to determine, according to Parisi and Favaro, is Police Chief Michael Cioffi signed the contract — even though he doesn’t have that authority ­— apparently at the direction of Susan Spohn, the borough administrator who died in March.

The contract, they said, seemed to have been written by the company, which has already been paid in full for the work. They also discovered the request for bids was never advertised and that the company learned about the request for bids from someone in Borough Hall. Favaro and Parisi didn’t know who tipped off the company.

“This never should’ve happened,” said Favaro, who served for years as the borough administrator and clerk. “Somehow, this company got a copy of the bid specs from someone.”

Former Borough Attorney Douglas Doyle could not be reached for comment Monday. Cioffi declined to comment on the situation on Monday, saying the matter is in the council’s hands.

Parisi said he didn’t ask why the contract hadn’t been brought to him sooner, saying he thought the administration was handling the details.

“I’m a part-time mayor; I have to rely on the professionals,” he said.

Borough Attorney E. Carter Corriston Sr. is looking into whether the project has to be rebid and if the city can ask for a refund. Favaro said that even if the process was improper and the borough decides to scrap the project, Englewood Cliffs may not be able to get its money back.

“We can’t hold the vendor liable because he did nothing wrong,” Favaro said.

The stop-work order has left Englewood Cliffs with just one working fire siren, near borough hall, to alert volunteer firefighters to report to duty. The two other sirens are on Bayview Avenue near the senior citizens center and in Woody Field off Johnson Avenue. All three were installed at least 40 years ago, Favaro said.

The department’s 38 volunteers now must rely on pagers, which Fire Chief George Drimones said aren’t as reliable as the sirens.

“Not everyone carries their pagers during the day,” he said. “”But they hear the siren and they come to the fire house.”

A consultant, Larry Robertson of Teaneck, has been hired for about $300 to advise the borough on the best locations for the sirens. His report, which Favaro said recommends the sirens stay where they are, will be discussed at Tuesday’s meeting.

Drimones said the new sirens would be higher in the air and softer than the old sirens. Residents had complained the sirens were too loud and could damage children’s hearing because they were near a playground and school.

Drimones also said the new sirens also could act as a public address system, allowing the borough to alert residents to tornados and other emergencies.

But Misk, the resident whose complaint brought the contract irregularities to the council’s attention, said the borough should look at whether it needs the sirens anymore.

“With all the modern technology, you just don’t need it,” he said.

 

The Suburbanite: Red light cameras getting people for failing to make complete stop in Englewood Cliffs


Red light cameras getting people for failing to make complete stop in Englewood Cliffs

Thursday, September 27, 2012


STAFF WRITER

ENGLEWOOD CLIFFS — Red light cameras installed at the intersection of Palisade and Sylvan avenues continue to be a hot topic in Englewood Cliffs, with residents and even council members receiving tickets for not coming to a complete stop.

Police Chief Michael Cioffi stressed to residents and officials at the mayor and council meeting on Sept. 12 to come to a complete stop before turning on red, as many people have been performing rolling stops and receiving tickets.

"We looked a long time ago into the red light program to hopefully lessen accidents and lessen the injury and property damage that occurs with accidents," Cioffi said.

He said the borough did a 30-day trial and gave warnings that the test was occurring. As of May, the cameras became active and the police started to issue summonses to violators.

In June, the state Department of Transportation halted the use of all but 22 cameras in the state after determining that the yellow lights might not be giving drivers enough time to pass through the intersections.

After the DOT conducted speed surveys and ensured all cameras were in compliance with the law they restored the use of the cameras.

"Everything was proper, the engineer did their testing and we were cleared," Cioffi said.

He added the traffic department is behind on summons.

"We have 90 days to issue the summons; we are a bit backed up. The traffic office is reviewing the violations and if there is a violation they issue the tickets," Cioffi said.

The fine for running a red light at this intersection is $85. Of this amount, the state gets $11.50, The Red Flex Group, which the borough hired in March 2011, will get $38.50 and the borough gets $35.

The borough sent a letter to residents and businesses about the cameras, and put up signs and warnings in the newspapers about the cameras, Cioffi said.

"We put messages at each intersection to try to make people cautious and to be aware, and we might be putting them back out there again. We don't want to give out tickets to everyone," Cioffi said.

A survey from the DOT reported that approximately 66,976 vehicles enter the intersection everyday and there are 35-40 motor vehicle accidents at this location annually.

Cioffi said the accidents have slowed down a bit since the cameras were installed, but added it would take some time to see the real effects. He added the borough is looking into adding the cameras at Bayview Avenue to see if they might be useful, but he said they need the statistics to back this up.

One resident at the mayor and council meeting said sometimes when he does come to a full stop, the camera will still take a photo if he didn't stop directly on the line.

He also asked how much money the borough has made so far. Mayor Joseph Parisi said a lot of money has been made, but did not give a precise figure.

Another issue with the fines was that residents and non-residents cannot currently pay with a credit card.

Cioffi confirmed that the judge is requesting a credit card machine and added violators have been paying online and people can also come in and pay with checks.

"A lot of checks have been coming in," Cioffi said.