Middletown council tables RWK Enterprises contract after legal review and debate

The Middletown Common Council on June 26 heard public concerns and a legal opinion on a two‑year contract with RWK Enterprises LLC before voting to table the matter.

John Malargo, a member of the city retirement board, opened public comment and alleged the contract and its terms created the appearance that a former city employee continued to function like a city worker while collecting pension benefits. "He garnered a 72,000, I believe, a year contract plus collecting his pension," Malargo said, adding that "about $750,000" should remain in the pension fund and asking the council to seek reimbursement.

Council members then untableed Resolution 4A and asked City Attorney Bridal Smith to respond to points raised in attorney Mednick's report. Smith told the council the statute Mednick cited had been superseded and that the current law defines a broker as someone who sells or exchanges real estate; he said leasing activity is no longer covered by that broker definition. "We reached out to the director of the Department of Consumer Protection's leasing services division ... and confirmed that there is no licensure or registration requirement for leasing agents under the new law," Smith said.

Members discussed whether the council should adopt a future ordinance limiting post‑employment contracts between recent retirees and the city — a policy change Smith and others said should be taken up separately from the current contract. Smith and council members described an ongoing effort to redraft the purchasing ordinance; the city purchasing supervisor prepared proposed redlines that were shared with counsel and are expected to return to the council in draft form next month.

Economic and Community Development Director Christine Marks said her office developed the scope of work for the request for proposals and that purchasing prepared the advertisement and handled bid intake. Marks said the contract covers multiple city properties beyond the Keating Building, including 80 Harbor Drive and 131 River Road, which she said is occupied by a tenant (Reboot Eco). She agreed to circulate related documents to the council on request.

Council members divided on whether to approve the contract immediately. One council member argued the award followed the city's RFP process, was the lowest of two bidders and that funds had been budgeted across fiscal years. Councilwoman Blackwell moved to table the contract, and the council adopted the motion in a roll‑call vote, 7–1, with one councilor recorded as voting nay. No final contract approval or amendment occurred at the meeting.

The item remains tabled; council members said they will continue work on the purchasing ordinance and may return with draft language for a prospective revolving‑door or post‑employment contracting ordinance.