USA Management is pulling out of its contract effective July 31
TRENTON -- The vendor hired to run Trenton's four pools this summer is pulling out of its contract, calling the city too much of a "high risk."
A principal with USA Management informed city officials of the company's decision during a conference call Thursday.
"They don't feel good about doing business with the city and continuing to put the business at risk," spokeswoman Elle Anderson said. "They felt it was too much of a risk."
The last day of the contract will be July 31.
The Georgia-based company was awarded the $185,188 contract last month, but tensions came to a head this week over late payments.
A payroll payment of $41,790 was due July 8. The city was granted a week's extension as it transitioned into a new fiscal year, but multiple calls followed when the city had still failed to make a payment.
It was only after the lifeguards walked off the job Wednesday afternoon and USA Management threatened to keep the pools closed until a payment was made that the city wired over money: $20,895 at 3:02 p.m. Wednesday and another $20,895 at 9:36 a.m. Thursday.
USA Management was able to pay the lifeguards July 11 only after borrowing money from other accounts.
"There wasn't money in the city account in order for them to complete payroll," Anderson said. "They had to put funds into that account to complete it."
Had the city not paid USA Management this week, there would have again been insufficient funds to cover the July 25 payroll, she said.
City spokesman Michael Walker said the administration will be recommending to City Council Thursday night that USA Management's contract with the city be terminated.
"We believe that USA Management has grossly underbid the contract, which prevents the company from managing the pool program per the requirements in the scope of services detailed in the bid, including meeting the lifeguard-to-swimmer ratios and proposing to charge residents for swimming instructions, which is contrary to the bid's scope of services," he said. "We will not compromise the safety of residents who are using our city pools and we will not burden them with additional costs to enjoy them."
The only other bidder was the YMCA of Trenton, which operated the city's pools the two previous summers. It was not immediately clear what the city's plans were for securing another vendor.
Cristina Rojas may be reached at crojas@njadvancemedia.com. Follow her on Twitter @CristinaRojasTT. Find NJ.com on Facebook.
