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Pension board member alleges illegal no-bid city contracts, urges cooling-off rule
Summary
John Millardo, a members of the city's retirees' pension plan, told the Middletown Common Council a no-bid contract first awarded in 2021 improperly avoided public bidding, estimated taxpayer and pension losses, and urged a five-year cooling-off period to bar retirees from contracting with the city.
John Millardo, who identified himself as a member of the City of Middletown retirees' pension plan, told the Jan. 9 special meeting that a contract awarded in August 2021 to an LLC formed just before the retiree's retirement was “an illegal contract.” He said the arrangement should have been publicly bid because it exceeded the city’s $2,000 threshold and accused city offices of failing to explain how the award occurred.
Millardo provided ballpark figures, saying the vendor received roughly $250,000 on that contract and that the retirement plan “has lost $413,000 to date” if the retiree should have been treated as an employee whose pension payments would have been paused. He urged the council to require reimbursement and proposed amending the municipal retirement plan to include a five-year cooling-off period to prevent retirees from immediately contracting with the city, mirroring a longer state practice but tailored to Middletown. “There shall be a 5 year cooling off period to inhibit use of influence and contracts with one's former employer,” he said.
The chair asked Millardo to provide written materials; council staff requested a copy for the record so members and legal staff could review his claims. The council did not take action during the meeting; Millardo said further investigation and potential ordinance language would need to come back to the council for consideration.
