January 9, 2009  

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Private firm to run arena

(by Erica Zarra - September 11, 2008)

After weeks of intense discussion, the majority of Township Council members voted to hire United Skates of America Inc. to manage the Montclair Clary Anderson Arena for $349,500 in the 2008-2009 season.

"We have spent a lot of time on this," Deputy Mayor Roger Terry told the populated Council Chambers this past Tuesday night. "There are a lot of other issues that will come forward even more severe than this."

First Ward Councilman Rich Murnick said, "We have to save the arena, and if we don’t go the route of hiring a private company, then it will close."

The ice arena on Chestnut Street lost an estimated $200,000 during the 2007-2008 season. But the move to contract with an outside company emerged during budgetary discussions this past spring.

The former members of the Township Council vetted eliminating the municipality’s usual $82,000 support of the arena and decided an outside vendor should operate the facility. The measure, in addition to many other cuts, was intended to keep the municipal budget within the New Jersey-mandated 3 1/2 percent cap.

After receiving public protests, the council put $40,000 for the arena back into Montclair’s 2008 financial plan, but that was not enough money to operate the arena for the entire upcoming season.

"What this is really about is trying to eliminate expenses under this cap," said 3rd Ward Councilman Nick Lewis, calling United Skates of America "a caretaker" of the arena for a year.

According to a municipal document, United Skates of America’s responsibilities include the potential to "operate a snack bar, pro shop, vending machines, and sell merchandise" in the arena, "with income and expenses the sole responsibility of the vendor for the 2008-2009 season."

This will not prohibit schools and municipal teams’ booster clubs from also selling products in the facility.

Each month, United Skates of America must turn over to Montclair all fees collected.

The company is also required "to hire and manage all staff necessary to manage and operate the arena." The municipality will assign a fulltime administrative employee with arena operations experience to work with United Skates of America during the 2008-2009 season, according to the document.

The company will conduct routine facility and equipment maintenance, while the municipality will handle major repairs.

Among Montclair’s responsibilities delineated in its contract with the company are "property and liability insurance for the facility, it being understood that the vendor will also have its own liability insurance covering its responsibilities at the arena." Both entities will name the other as additionally insured on its policies, as per the document.

Municipal employees or officials will have access to United Skates of America’s "books and records as may be reasonably necessary to verify the accuracy of all financial information related to fulfillment of the terms to this agreement and to audit same."

Montclair also has the ability to terminate the contract "upon written notice to the vendor prior to June 30, 2009."

Prior to the vote, about a dozen residents gave testimony for and against contracting with an outside company.

Several citizens voiced concern that United Skates of America would not have a positive impact on taxes or that such outsourcing would not lessen the municipality’s financial concerns for the facility. They feared a vendor would compromise the arena’s homey feel and welcoming atmosphere.

Some residents, such as Pegi Adam, testified the facility "requires professional management."

"It’s a valuable asset to the people of Montclair," Adam said. "It should be efficient and cost-effective, neither of which it is currently."

A few residents questioned the relationship between Bill Irving, an employee of United Skates of America, and Township Attorney Alan Trembulak. Irving is a former manager of the Clary Anderson Arena and Trembulak’s wife’s son-in-law.

Trembulak said he had no involvement in the bidding process, has never seen any of the proposals, and has only reviewed certain information in his capacity as the township attorney. Township Manager Joseph Hartnett emphasized that Trembulak did not attend meetings with a committee created to review proposals that included Hartnett, Wood and Recreation and Cultural Affairs Director Pat Brechka.

During the council meeting, Trembulak quoted the state ethics law and said he has not acted remotely improper.

"My relationship with Bill Irving does not trigger a conflict of interest," Trembulak said. "… I have not participated in this process in any way."

Councilwomen Renée Baskerville and Kathryn Weller opposed the contract.

Weller called the agreement’s financial benefits "murky and minimal," while Baskerville opposed the "odious manner in which the contract unfolded."

Baskerville called for increased transparency in future discussions and said that Hartnett had previously told her nobody on staff had any relations to anyone involved with United Skates of America. Hartnett responded that Baskerville had asked specifically if he was related to anyone in the company, not if anyone on the staff was. Baskerville then disagreed.

Still, Hartnett has maintained, United Skates of America will benefit the arena.

"We expect a cleaner facility and better service and operations," Hartnett stated yesterday to The Times.

Second Ward Councilman Cary Africk concurred.

"I see this as an opportunity to better the services to skaters," Africk said. "I do not necessarily see this as a money-making scheme. There is a tremendous upside in services and financial benefits to the town."

The Ohio-based United Skates of America was selected among three bidders. According to Hartnett, the company has municipal partnerships with Newark, Camden, Woodbridge, West Orange, Chicago, Baltimore, and Cleveland.


 

 

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