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--- Document: 26-138 Resolution Approving an Agreement with Affordable Cartage LLC.pdf (239 KB) Document ---
BOROUGHOF RIVER EDGE
RESOLUTION #26-138
RESOLUTION APPROVING AN AGREEMENT WITH AFFORDABLE CARTAGE LLC
FOR THE RELEASE OF ESCROWED FUNDS FOR SOLID WASTE COLLECTION
AND DISPOSAL SERVICES IN CONSIDERATION OF RECEIPT OF AN
INDEMNIFICATION FROM AFFORDABLE CARTAGE LLC
WHEREAS the Borough of New Milford and the Borough of River Edge entered into a Joint
Purchasing Agreement for the public bidding of solid waste collection and disposal
services; and
WHEREAS, as a result of the foregoing process each municipality entered into a contract
with the lowest responsible bidder, Joseph Smenkowski, Inc., for a five-year contract; and
WHEREAS with each municipality’s consent, Joseph Smenkowski, Inc. assigned its rights
and obligations under said contracts to Affordable Cartage LLC on or about October 2024;
and
WHEREAS a dispute has arisen between Joseph Smenkowski, Inc. and Affordable Cartage
LLC; and
WHEREAS On March 4, 2025, a Verified Complaint was filed on behalf of Affordable
Cartage, LLC against Thomas Giordano, The Estate of Gary E. Giordano (Diana Gasparano,
Gary M. Giordano and Lisa Jett as Co-Administrators) and Joseph Smentkowski, Inc.,
trading as Galaxy Carting, bearing docket number BER-L-00045-25 ("the litigation"); and
WHEREAS Joseph Smenkowski, Inc. served upon both the Borough of New Milford and the
Borough of River Edge a Notice of Garnishment and Demand for Payment of Receivables
pursuant to UCC §9-404, 9-406 and 9-607, together with a Secured/Guaranteed Promissory
Note, UCC-1 Financing Statement, copy of Assignment of Contract and copy of a Notice of
Default and Notice of Acceleration of Payments by Joseph Smenkowski Inc. to Affordable
Cartage LLC; and
WHEREAS both the Borough of New Milford and the Borough of River Edge served upon
Affordable Cartage LLC a notice of receipt of the above-referenced Notice of Garnishment
and Demand for Payment of Receivables and a notice that future payments due under the
aforesaid contracts will be paid to Joseph Smenkowski Inc. pursuant thereto unless
Affordable Cartage LLC sought judicial relief from the aforesaid garnishment; and
WHEREAS Affordable Cartage LLC responded that Affordable Cartage LLC disputes the
existence of a valid UCC Financial Agreement and that there is a lawsuit between the
parties presently pending in the Chancery Division; and
WHEREAS as a result of said dispute both Joseph Smenkowski Inc and Affordable Cartage
were advised that the Borough of New Milford and the Borough of River Edge will hold the
payments due under the contracts for solid waste collection and disposal in escrow
pending a resolution between the parties or a court order directing where and to whom the
payments are to be made; and
WHEREAS The Borough of River Edge and the Borough of New Milford have withheld the
payment of fees owed to Affordable Cartage, LLC pursuant to their respective contracts for
solid waste collection and disposal, during the pendency of the litigation; and
WHEREAS as of the date of this Agreement and pursuant to the above-mentioned
contract, the Borough of New Milford owes Affordable Cartage, LLC, approximately
$308,656.29, which has been maintained in escrow during the pendency of the litigation;
and
WHEREAS as of the date of this Agreement and pursuant to the above-mentioned
contract, the Borough of River Edge to date owes Affordable Cartage, LLC $312, 397.82,
which has been maintained in escrow during the pendency of the litigation; and
WHEREAS Affordable Cartage, LLC agrees that the amount owing for each respective
contract is as identified above and seeks release all monies owed pursuant to the
Contracts, as identified above, by Friday, May 15, 2026; and
WHEREAS, Affordable Cartage, LLC has agreed to indemnify and hold harmless the
Boroughs of New Milford and River Edge from any and all claims, actions, costs, expenses
or liabilities imposed upon, incurred, or asserted against the Borough of New Milford and/or
the Borough of River Edge as a result of the release of the payments identified herein
during the litigation or for any other reason
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough of River
Edge, Bergen County, New Jersey that the Mayor is hereby authorized and directed to
execute, and the Borough Clerk to attest, an Agreement by and between the Borough of
River Edge, the Borough of New Milford and Affordable Cartage LLC to release the escrowed
funds being held by the Borough of River Edge to Affordable Cartage LLC in consideration
for Affordable Cartage LLC indemnifying and holding harmless the Borough of River Edge
from any and all claims, actions, costs, expenses or liabilities imposed upon, incurred, or
asserted against the Borough of River Edge as a result of the release of the payments
identified herein during the litigation or for any other reason which shall continue until
such time as the statute of limitations with respect to any claims or actions that could be
brought against the Borough of River Edge, in any jurisdiction, for release of such amounts
has expired. A copy of such Agreement is on file in the office of the Borough Clerk and is
available for public inspection.
April 23, 2026
Motion
Second
Yes
No
Abstain
Absent
Montisano-Koen
Kinsella
Malellari
Glass
Dhariwal
Feffer
Mayor Papaleo
I hereby certify that this resolution, consisting of 3 page(s), was adopted at a meeting
of the Mayor and Council of the Borough of River Edge, held on this 23rd day of April,
2026.
________________________________
Anne Dodd, Borough Clerk