NEWARK, NJ - What exactly does it mean when city council supports a special event like a festival or parade through a resolution?

The answer is so confusing even the Newark City Council doesn't know for sure, although they continue to vote to co-sponsor events.

The nod of support from the council could mean the city is waiving costs and fees that could impact the public safety budget. It could also give certain organizations an unfair advantage by the city not charging for certain expenses.

Sign Up for Newark Newsletter Our newsletter delivers the local news that you can trust. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. You have successfully signed up for the TAPinto Newark Newsletter.

The question over city sponsorship is one that has been around for some time. It most recently arose in August, after the council approved a resolution supporting a Dominican parade. The resolution stated that by the council co-sponsoring the event, the city waived event fees and costs for the organizer.

After the vote on Aug. 28, council members raised several questions about what they had just unanimously approved.

Would the organization putting on the event still have to pay fees, costs and insurance requirements now that the council was “co-sponsoring” the event? And what is the difference between fees and costs anyway?

It’s an expensive question too. North Ward Councilman Anibal Ramos said many of these special events eat away at the public safety department's overtime budget to a tune of over $1.7 million.

“It limits their ability to do some of the things we need them to do in the neighborhoods to better protect our residents because they're providing coverage for these events and they don't get any of that money back,” Ramos said at the Aug. 28 meeting.





Moreover, East Ward Councilman Augusto Amador wanted to know why some organizations pay all fees, costs and insurance requirements, when others are getting certain expenses waived simply because they’re supported by the city.

“If an organization is getting away without paying anything based on the fact that we're sponsoring that festival or that parade, that's not fair to the other organizations,” Amador said. “That's not fair.”

Business Administrator Eric Pennington tried to bring clarity to the situation at the Aug. 28 meeting, but would later bring in his executive assistant on Sept. 25 for further explanation.

SERIOUS BUSINESS FOR PARADES AND FESTIVALS

The money associated with parades and festivals has been an issue in Newark for years.

A 2007 memo written by the city chief of staff explained that the city spent in the neighborhood of $3 million to 7 million to support special events. Many of the costs associated with each event were not even documented, so the city could really track all the costs, the memo said.

Ten years ago, Amador sponsored amendments to an ordinance that laid out specific rules about who pays what for special events in the city.

According to the 2008 ordinance, "costs" associated with an event are any above-base services, including police officers, sanitation services, inspectors or electricians. Fees, while not explicitly defined in the ordinance, generally referred to permit expenses.

Under the rules, an event organizer would be responsible for a minimum of 20 percent of the projected costs for a special event. The costs for the organizer would increase over the next five years by increments of 10 percent annually, while the city would absorb the remainder of the costs for police officers or sanitation services -- but only for nonprofits.

Amador claimed there were some event organizers that owe money to the city, but keep getting permits for events. He demanded a list of how much money the city is owed for special events.

IT’S STILL AN ISSUE IN NEWARK

Melvin Waldrop, who handles special events coordination in the Office of the Business Administrator, spoke to city council on Sept. 25 to hopefully bring more clarity to the situation.

The money associated with special events is still difficult to keep track of. Waldrop explained there is no budget for special events. Instead, resources are drawn up from other departments.

"There's never been a budget for special events,” Waldrop explained when Council President Mildred Crump inquired about his program’s budget. “And again, I think it would be nice to a have a budget for special events. It would create...transparency and I think it would also help with the fiscal management in terms of these expenditures. Because again, as a part of the budget process you'd be making a decision in advance."

Waldrop didn’t provide council members - specifically Amador - with a list of which organizations may still owe money to the city. He said that practice began towards the end of former Mayor Cory Booker’s administration and continues since “certain centers of power within the city” get involved.

“We tried to continue that and in some instances, cases are made to certain centers of power within the city, whether it's city council or this administration,” Waldrop said. “Fees may be negotiated downward...but at least it's been my experience that whatever those fees are negotiated down to that gets - y'know - paid.”

He also contested Amdador’s characterization of special treatment among organizations that get a co-sponsoring resolution from the city. Essentially, a resolution from the council would supersede any rules laid out in the ordinance that governs how much each organization has to pay to put on an event.

Waldrop’s hands are tied once city council approves such a resolution.

“There's resolution after resolution after resolution after resolution passed waiving fees for events, fees and costs,” Melvin explained “The city is co-sponsoring this. Therefore, the fees and the costs are to be waived.”

“No” Amador interjected.

“Well, it may be,” Waldrop responded. “But that's what came before the council and that's what I'm dealing with when it gets to my desk.”

MOVING FORWARD

Crump, the council president, told Waldrop that she would follow up with him at his office. Still, a number of questions went unanswered from other council members.

South Ward Councilman John Sharpe James was concerned that co-sponsoring an event "would open a can of worms" for the city in terms of liabilities and lawsuits. Councilman at-Large Carlos Gonzalez raised a similar concern at the Aug. 28 meeting.

Amador remained adamant that no one should expect the city to bear the costs of an event since an ordinance already exists that lays out what organizers have to pay . (Amador did, however, make a motion for a voice vote at the Aug. 28 meeting the for the city to approve co-sponsoring a Brazilian parade after he saw that the Dominican parade got its fees and costs waived.)

City Corporation Counsel Kenyatta Stewart said there’s obviously some clarity that is needed as to what it means when the city co-sponsors an event.

“That clarity is all we needed, and in the next two weeks we should be able to tighten this situation up,” Stewart said Sept. 25.

Find TAPinto Newark on Facebook and Twitter. Download the TAPinto mobile app for Android or iOS.