Critics say the galas give businesses questionable access to local officials
People enjoy a party put on by Wilentz, Goldman & Spitzer at Caesar's Palace in Atlantic City during the 2003 League of Municipalities Convention.ATLANTIC CITY — While the talk of the League of Municipalities convention that ended Thursday was how towns could tighten their belts, some companies opened their wallets wide, throwing lavish parties to court their business.
Telecommunications corporations, engineering firms, waste disposal companies, accountants and banks took advantage of having thousands of municipal, county and state officials in one place this week, drawing them into hotel ballrooms with entertainment, booze and finger food.
Verizon, which last year had about $150 million worth of public contracts in New Jersey, gave a major party on Tuesday night, packing a Bally’s hotel ballroom with hundreds of guests who dined on cheese and pasta, enjoyed an open bar and listened to a jazz pianist and saxophone player.
"It’s reasonable to throw a party. We sponsor this event ... so we are able to make relationships and position ourselves with municipal employees," said Verizon New Jersey President Dennis Bone, noting that increased competition has cut into his company’s business with the public sector. "Just the communications that I’ve had tonight with mayors, legislators, freeholders and municipal folks have been very valuable."
But critics say the parties give businesses questionable access to local officials.
"It’s another form of spreading influence and tribute," said Bill Schluter, a former state senator and ethics champion. "They ingratiate themselves with the local officials."
Schluter noted that deals and bribe-passing that prompted arrests in years past took place during league conventions — not at the parties, but in hotel rooms and private dinners.
Many of the companies throwing parties are major campaign donors. Verizon’s political action committee made $133,500 in contributions last year, mainly to lawmakers.
Ferraioli, Wielkotz, Cerullo & Cuva, an accounting firm that held a party Wednesday, had $4.7 million in public contracts and made about $63,000 in campaign contributions last year.
At the party, a chef prepared hot bananas foster over ice cream. The firm, which includes a large municipal government division, hosts the reception as an opportunity to meet with current and potential clients, partner Chuck Ferraioli said. They do not do business in the southern part of the state, doesn’t turn any attendees away, he said.
"It’s not pay to play because I don’t know 50 percent of the people here," Ferraioli said. "They’re probably from South Jersey."
Gary Smalley, regional manager for Republic Services of New Jersey, was selling garbage collection services, but the party he threw certainly wasn’t trashy. The buffet, anchored by a live pianist, offered hand carved beef and turkey, pasta, shrimp and plates of cheeses. Mayors and council members sipped cocktails and wine from an open bar as they mingled between projectors displaying the company summary of Republic, one of the nation’s largest private garbage collector.s
"It’s an opportunity to make people aware of our company," Smalley said as he greeted guests at the door. "We think we can save them money."
Sitting down with a drink at a small table at the Republic reception, Union Township Deputy Mayor William F. Bischoff said social gatherings at the convention are an important place for officials to compare notes and share ideas, and saw nothing wrong with dinner and drinks paid for by a company vying for public contracts.
"I’m not buyable," said Bischoff.
By Matt Friedman and Ginger Gibson/Statehouse Bureau