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Insurance Switcheroo: Housecleaning Continues in Wildwood Government

Government | Fri, 03/12/2010 - 12:00 pm | Updated 19 weeks 5 days ago | Read 3542 | Commented 12 | Emailed 6
Tags: insurance, jif, Wildwood

By Joe Hart

WILDWOOD — In this ever-changing city, it’s in with the new and out with the old, again.

At its March 10 meeting, Wildwood Commission appointed the NIA Group, an insurance and financial services company located at 510 Bank St., Cape May, as the city’s new risk management consultant.

That post coordinates the city’s insurance needs with the Atlantic County Municipal Joint Insurance Fund (JIF), which covers the 16 municipalities in this county along with about 30 others in South Jersey.

Larry Cohen, NIA Group regional executive, said the company was “thrilled that the City of Wildwood has chosen us and we’re excited to help the city achieve its insurance and risk management goals.” David Von Savage, Cape May County Republican leader, and his associate Charles Pessagno are also employees of the local NIA Group office.

The replacement of J. Byrne Insurance, Wildwood’s longtime risk management consultant, was the latest in a series of housecleaning moves instituted since commissioners Al Brannen and Edward Harshaw were successful in a December recall election over former commissioners Bill Davenport and Mayor Ernie Troiano.

Brannen and Harshaw joined Gary DeMarzo on the governing body and named him mayor. The three promised “change” while campaigning and have delivered by dismantling and reorganizing Wildwood’s government over the past three months.

In that time, the following are some of the commissioners’ changes:

• New city solicitor, Dan Gallagher, of Atlantic City, replaced Mark Karavan.
• New accounting firm, Schwartz & Company, of Mays Landing, replaced Ford, Scott & Associates.
• New engineering firm, Adams, Rehmann & Hagan, of Hammonton, replaced Marc DeBlasio, of Remington & Vernick.
• New head of the Public Works Department Chuck Clunn replaced Kevin Verity.
• Hired interim city manager Richard Deaney, of Jersey Professional Management, of Cranford. The city previously had no manager.
• Combined planning and zoning boards.
• Issued 41 layoff notices to city employees, 18 of which were in public works.
• Negotiating with three city unions for furloughs and givebacks.
• Working on outsourcing trash and recycling collection.
• Dissolving the recreation, environmental and historical commissions and replacing them with one redevelopment commission.

At the meeting, Harshaw also noted that the city was in the process of decommissioning 38 public works vehicles and hoping to receive approximately $50,000 for them at auction.

“We’re trying to do things more efficiently,” Harshaw said.

Davenport told the Herald he was disappointed the city was losing all these local professionals.

“I think they (commissioners) should put out detailed press releases when they make these moves with specific dollar amounts so the public can see why it’s being done,” Davenport said.

Regarding the risk management appointment, Chris D’Amico, city resident and a captain in the Wildwood Fire Department, asked the commissioners why they would “take the post away from a local family-owned business that operates in Wildwood, pays taxes in Wildwood and employs people from Wildwood; and then give it to a company from Cape May?”

He said the commissioners had promised to support local business during the campaign.

“We ran on a platform of change and I think everything we’ve done so far in our eyes has been successful,” DeMarzo said. “We’re going to continue to change.”

DeMarzo also said they received professional services proposals from NIA and J. Byrne with a substantial difference in the fee schedules from the two companies, which will result in cost savings for the city.

D’Amico said he would check with the city at the end of the contract to make sure there was actually a “substantial” cost savings. D’Amico told the Herald he thought the appointment was “political.”

“Obviously we’re very disappointed,” said Tom Byrne, of J. Byrne Insurance. “I don’t understand the rationale behind moving this professional contract to Cape May.”

When the resolution awarding the contract to NIA Group was read, DeMarzo and Harshaw voted for the change, Brannen voted against it.

Brannen’s comments to the Herald echoed the concerns expressed by D’Amico.

“J. Byrne is located in Wildwood and has Wildwood employees. The Byrne family has been a good neighbor,” he said, noting that he would rather have kept the hometown insurance company.

Harshaw told the Herald that his decision was based completely on the savings.

“J. Byrne is a very good company that’s done wonderful things for our community, but we were tasked by taxpayers to reduce local purpose tax and NIA’s proposal came in lower,” Harshaw said. “Both companies are equally good, but we must cut where we can.”

In his three years on commission and many years as a city employee, Davenport had seen the Byrne agency provide excellent professional service, offer many jobs, and show remarkable generosity to the city, he said.

Byrne told the Herald that his business is one of the largest year-round employers in the area offering jobs health benefits and a pension to local people. Byrne employees are a boost to the local economy, he said.

“My employees frequent establishments in the city,” Byrne said. “They grocery shop after work; they eat in local restaurants at lunch.”

He said the move has already had repercussions.

“The action taken by Mayor DeMarzo and Commissioner Harshaw has already forced me to lay off one Wildwood resident and more layoffs are possible,” Byrne said.

He noted that he and his family have made substantial donations in support of several city projects including the new recreation center at Maxwell Field and the former Surfside Restaurant rehab into the Doo Wop Experience building and concert center at Fox Park, as well as tens of thousands to local schools.

“Why move this to Cape May?” he asked. “It makes no sense to me. There must be something else behind it. I guess we’ll have to see.”

Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com

Print | Email Updated 19 weeks 5 days ago

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Comments (12)

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Sun, 03/14/2010 - 12:08pm - Posted by: kenzo

I am not mr.vessels. I do not even know who he is. I am a ww taxpayer who has voiced my concerns to both t/d in the past and currently to dem/har/bren. All I want is my taxes not to up and for the government to start cleaning up the town.

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Sun, 03/14/2010 - 7:03am - Posted by: Beach-luva

I have one question: If all of these companys were so great, and had OUR intrests ahead of the bill schedule(Byrne,R/V,Marcus Karavan), and many others, how did the city end up with the tax-rate?

Listening to everyone on here, if it wasn't administration, or its parteners, then what happened? Things have been bad, but a 79% increase? That was unacceptable!

At the end of the day, it was OUR fault as homeowners to not be involved BEFORE the those tax bills hit our maiboxes. We showed accountability for our mistakes, and signed a re-call.

And DeBozo, please prove there were no other bids put out, as you suggest in your post! Look at your post to Mr.Vessels, I mean your calling that guy out. I thought EMT/Firemen worked hard, and we needed more of them? If that's the case, how is Jerry's job "nice and cushy"? Mr. 1:33am, again....I guess if the job is so "nice and cushy", maybe EMT/Fire needs to take a deeper cut. I will make sure I turn this over to the mayor, because it sounds like you know Jerry, and if his job is so "nice and cushy", maybe we need to see if 1 can do the job of 2 there.

See DeBozo, if we all work together, I think we can solve this; and, your insight into how the EMT/Fire is overstaffed, will help us get there. Thanks for your efforts brother, and your support toward the cause:)

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Sun, 03/14/2010 - 6:23am - Posted by: sea4me

@ BSDebozo
Quote “The wild wheels of politics continue no matter who is in charge.” Is this an admission that Ernie dealt out jobs and contracts because of connections and not because of content? hmmm

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Sun, 03/14/2010 - 2:33am - Posted by: BSDebozo

Nah good try jack in the box. Has nothing to do with free market, because I'm not so sure that the prices were all that different, seeing they didn't release the actual figures, and probably won't. They haven't shopped around for enything else, no bids were put out for any of the other huge purchases they made.

If you thought it was all about politics with the last group, it has gotten a whole lot worse.

Demarzo is a pawn for David Von Savage, republican chair, who has promised Demarzo a job if he replaced the Byrne Agency with his insurance agency. Well we will soon see where VonSavage was able to get this kook a job.

Brannen isn't any better. He is apparently going to promote his wife's boss, Bill Cooper to Deputy Chief of the Police Department. The wild wheels of politics continue no matter who is in charge.

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Sat, 03/13/2010 - 8:55pm - Posted by: jackinbox1970

Wait a minute. Let me get this right. Byrne Agency was part of the long-standing City of Wildwood click. Been that way for years. Another competitor comes in and beats their pricing fair and square and something's wrong? Am I reading this right? The Byrne Agency - City of Wildwood Club has driving up spending and property taxes. Mayor DeMarso is blowing up the Club. Hey, $50k here and $50k there and eventually it's really money! Let's hear it for the free market in Wildwood!

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Sat, 03/13/2010 - 1:30pm - Posted by: BSDebozo

All about the tax rate Mr. Vessels? Is that it? Well sooner or later he will get rid of your nice cushy job as an EMT / Fireman. Will you only care about the tax rate then Jerry?

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Sat, 03/13/2010 - 1:21pm - Posted by: kenzo

as long as my taxes don't increase this year, I will give them a chance to do almost whatever they want. Its all about the tax rate.

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Sat, 03/13/2010 - 7:55am - Posted by: thebank

To All Concerned
If the Mayor and Commissioners found the NIA Insurance Group to have equal coverage at cost savings to the City of Wildwood and it's Citizens, isn't this what we asked for. And why not publish the difference in the Rates and show US the Savings. There are rumours that the NIA Group is looking to relocate to the City of Wildwood.

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Fri, 03/12/2010 - 7:16pm - Posted by: lookielu

Well voters of Wildwood you got what you wanted. A mayor who would sell you to the highest bidder just to benefit himself. If he is hired by Cape May County in any form, I believe that an investigation should be started to see if a back room deal was made (obviously it was, half of Cape May County knew about the insurance change before it happened). Herald reporters maybe you should dig a little deeper to see what other backroom deals have been made and let the public be aware of them.

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Fri, 03/12/2010 - 6:38pm - Posted by: THEshadow

The only thing I see here is that a lot of local people are losing their jobs and DeMidget is bringing in out of town companies and out off town people to replace local residents. These replacements have no vested interest in Wildwood and care only about $$$$$$$!!!!!!!!! To replace the Byrne Agency, a family owned business that has given to and supported the Wildwoods....is a slap in the face of any decent Wildwood residents. When DeMidget pops up with a County or State Job, and he will, I hope the AG's Office ipens up an investigation!

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Fri, 03/12/2010 - 1:36pm - Posted by: BSDebozo

This wouldn't have anything to do with VonSavage promising Demarzo a job with his insurance company would it? Or how bout a the county job VonSavage promised Demarzo from the freeloaders? Now VonSavage is in bed with Wildwood, well we sure are in trouble now. Run as fast as you can people. Transparecy in government? Nope sorry, political favors for friends!!

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Fri, 03/12/2010 - 1:33pm - Posted by: Vote_Brannen_Harshaw

A NEW BROOM SWEEPS CLEAN

This Mayor and Commissioners are keeping their promises.

Now Dorknport wants to comment, he slept for 25 years as a fireman and slept for 2 years as a commissioner and now he wants to comment?

Well Rip Van Dorknpork go back to sleep, the Feds will wake you up when its time to go to jail....



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