College balks at switching firms
BY NATHAN MAYBERG
NEWTON — The Sussex County Community College Board of Trustees balked at switching law firms and hiring the law services of Vito Gagliardi and his firm of Porzio, Bromberg and Newman at a rate of $375 an hour on Tuesday.
A divided committee of the board had recommended hiring the firm following a request for proposals that five law firms responded to.
The firm's rate would have been nearly double the current rate of $195 an hour paid to the college's current firm of Schenk Price Smith and King.
The firm's proposed retainer fee of $78,000, would have been $18,000 more than the college's current firm is paid.
Frank Nocella, vice president of finance and operations for the college, negotiated the proposed contract with the firm.
College trustee Daniel Perez opposed the contract, suggesting the proposed rate would have made them the highest paid attorneys for a community college in the state's history for an hourly basis.
“That's the kind of history I don't think we can afford to make,” he said.
The proposed rate would have been twice the average rate for attorneys doing municipal work in Sussex County.
“Heaven forbid if we need to avail ourselves of that hourly fee,” Perez said.
Perez said the going rate for municipal attorneys in Sussex County was between $160 to $170 an hour. Neighboring community colleges paid their attorneys similar rates, according to data compiled by The Advertiser News.
By a vote of 8-2, the board voted against hiring the firm.
Board trustee Edward Leppert questioned the rationale for choosing a firm which had the highest price and a pretty substantial fee increase.
Rachel Geraci, a board member who supported the hiring, said the firm was chosen due to previous conflicts the college's current law firm had in the past. The board hired two attorneys to review a construction project bid for its student center building last year over conflicts between board members and the law firm.
“There was a lot of conflicts,” she said. She said the conflicts cost the college between $15,000 and $20,000 to hire outside counsel.
On Tuesday, Perez said the college should keep its current law firm, which he said had a “sterling” reputation.
The board voted to keep the firm on as labor attorneys. The board also voted to hire two firms as special counsel, William Maderer, of the Saiber Law Firm, at a rate of $250 an hour, and Douglas Steinhardt, of the firm Florio Perucci Steinhardt and Fader, at a rate of $220 an hour.
Perez argued against naming two firms as special counsel, saying it was unclear how each would be chosen in the event the college needed to use them.
It would be up to the college's administration which one to choose.
Board vice chairman Jerry Scanlan, who presided over the meeting in place of Lorraine Parker who is returning next month, said he chose to vote against the hiring of Porzo, Bromberg and Newman due to the price.
He said they are welcome to submit a new proposal at a lower price.
A new meeting of the committee will take place to choose a new law firm, or stick with the current lawyers.
Geraci and board trustee Rosalie Lamonte were the two trustees voting in favor of the higher priced firm.
The $375 rate would be for litigation that involves the firms principals. A $300-an-hour rate would apply if the litigation involves the firm's counsel and $210 an hour for associates.
Voting against the hiring were trustees Bernard Andrews, Maryanne Fox, Leppert, Tyler Morgus, Perez, Scanlan, Michael Spekhardt and Kathleen Yaskovic.
Perez and Spekhardt voted against the retainment of Saiber with Geraci abstaining.
Morgus is the most recently appointed member of the board, having been chosen by Governor Chris Christie.