Sunday, November 3, 2013

What’s Good for Saddle River Should Be Good for Lodi...on closing a Pay-to-Play loophole


Background:

Pay-to-Play is the basis for government corruption, high taxes, and poor services.  It is the vehicle to keep bad incumbents in office.
Pay-to-Play reform is a discussion that seems to be taking place everywhere right now EXCEPT Lodi.  The Record made Pay-to-Play reform a main reason for its endorsement of Bergen County Freeholder Maura Denicola this week.

October 8, 2013:

At the Lodi Council Executive Meeting, the “CFO” Charles Cuccia answered “No” to #5 and then added, “Most town don’t”.  He then provided the comment on the questionnaire, “The Borough complies with State statues”.

The State doesn’t have a real pay-to-play ordinance.  Even the state comptroller did a report showing how the “fair and open” loophole makes the state statue meaningless.  Therefore, government entities need to pass their own ordinances to address the matter. 

Double Standard:

Charles Cuccia is the FULL TIME BOROUGH ADMINISTRATOR of Saddle River.  He had a great opportunity to present Saddle River’s pay-to-play ordinance at the October 8th meeting as an example to at least address the "fair and open" loophole.  He chose not to.
I guess Lodi has a dictatorship under Tony Luna and any positive ideas from other towns are forbidden.

Here is Saddle River’s ordinance addressing pay-to-play.  It does NOT eliminate pay-to-play abuse altogether, but it does eliminate the “fair and open” loophole.  If this ordinance were on the books for Lodi in 2011, many of Lodi’s professional service providers would have been prohibited from receiving their No-Bid Contracts.

Chapter 55: POLITICAL CONTRIBUTIONS

[HISTORY: Adopted by the Mayor and Council of the Borough of Saddle River 11-13-2006 by Ord.

No. 06-801-C. Editor's Note: This ordinance was originally adopted as Ch. 66 but was renumbered to maintain the organization of the Code. Amendments noted where applicable.]

§ 55-1. Prohibition on awarding public contracts to certain contributors.

A. Any other provision of law to the contrary notwithstanding, the municipality or any of its purchasing agents or agencies or those of its independent authorities, as the case may be, shall not enter into an agreement or otherwise contract to procure professional, banking, or any other consulting services, including those awarded pursuant to a "fair and open" process, from any professional business entity if that entity has solicited or made any contribution of money or pledge of a contribution, including in-kind contributions, to any Saddle River municipal candidate or holder of the public office having ultimate responsibility for the award of the contract, or campaign committee supporting such candidate or officeholder, or to any Saddle River party committee, or independent organizations or to any political action committee (PAC) that regularly engages in the support of Saddle River municipal elections and/or municipal parties or independent organizations in excess of the thresholds specified in Subsection D within one calendar year immediately preceding the date of the contract or agreement.

B. No professional business entity which enters into negotiations for or agrees to any contract or agreement with the municipality or any department or agency thereof or of its independent authorities for the rendition of professional, banking or any other consulting services, including those awarded pursuant to a "fair and open" process, shall solicit or make any contribution of money or pledge of a contribution, including in-kind contributions, to any Saddle River municipal candidate or holder of the public office having ultimate responsibility for the award of the contract, or campaign committee supporting such candidate or officeholder, or to any Saddle River party committee, or to any political action committee (PAC) that regularly engages in the support of Saddle River municipal elections and/or municipal parties or independent organizations between the time of first communications between that business entity and the Borough regarding a specific professional services agreement and the later of the termination of negotiations or the completion of the contract or agreement.

C. For purposes of this chapter, a "professional business entity" seeking a public contract means an individual, including the individual's spouse, if any, firm; corporation; professional corporation; partnership; organization; or association. The definition of a business entity includes all principals who own 10% or more of the equity in the corporation or business trust, partners, and officers in the aggregate employed by the entity as well as any subsidiaries directly controlled by the business entity.

D. Any individual meeting the definition of "professional business entity" under this section may annually contribute a maximum of $300 each for any purpose to any candidate for Mayor or governing body, and/or $300 to the Saddle River party, and/or $500 to a PAC referenced in this chapter, without violating Subsection A of this section. However, any group of individuals meeting the definition of "professional business entity" under this section, including such principals, partners, and officers of the entity in the aggregate, may not annually contribute for any purpose in excess of $2,500 to all Saddle River candidates and officeholders with ultimate responsibility for the award of the contract and all Saddle River political parties or independent organizations and PACs referenced in this chapter combined, without violating Subsection A of this section.

E. For purposes of this section, the office that is considered to have ultimate responsibility for the award of the contract shall be:

(1) The Saddle River Council of the Borough of Saddle River, if the contract requires specific approval from the Council.

(2) The Mayor of the Borough of Saddle River, where the contract requires execution by the Mayor, when a public officer who is responsible for the award of a contract is appointed by the Mayor.

§ 55-2. Contributions made prior to effective date.

No contribution of money or any other thing of value, including in-kind contributions, made by a professional business entity to any municipal candidate for Mayor or Council or municipal or PAC referenced in this chapter shall be deemed a violation of this chapter, nor shall an agreement for property, goods, or services, of any kind whatsoever, be disqualified thereby, if that contribution was made by the professional business entity prior to the effective date of this chapter.

§ 55-3. Contribution statement by professional business entity.

A. Prior to awarding any contract or agreement to procure services, including banking with any professional business entity, the Borough or any of its purchasing agents or agencies, as the case may be, shall receive a sworn statement from the professional business entity made under penalty of perjury that the bidder or offeror has not made a contribution in violation of § 55-1 of this chapter.

B. The professional business entity shall have a continuing duty to report any violations of this chapter that may occur during the negotiation or duration of a contract. The certification required under this section shall be made prior to entry into the contract or agreement with the Borough and shall be in addition to any other certifications that may be required by any other provision of law.

§ 55-4. Return of excess contributions.

A professional business entity contributing to a Borough candidate or officeholder or municipal or independent organizations or PAC referenced in this chapter may cure a violation of § 55-1 of this chapter, if, within 30 days after the date on which the applicable ELEC Report is published, the professional business entity shall notify the Borough in writing and seek and receive reimbursement of a contribution from the Borough candidate, municipal or political party, independent organizations or PAC referenced in this chapter. Proof of said return must be provided to the Borough Clerk prior to the execution of the proposed contract.

§ 55-5. Violations and penalties.

A. It shall be a breach of the terms of the Saddle River professional service agreement for a business entity to:

(1) Make or solicit a contribution in violation of this chapter;

(2) Knowingly conceal or misrepresent a contribution given or received;

(3) Make or solicit contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution;

(4) Make or solicit any contribution on the condition or with the agreement that it will be contributed to a campaign committee of any candidate or holder of the public office of the Borough of Saddle River;

(5) Fund contributions made by third parties, including consultants, attorneys, family members, and employees;

(6) Engage in any exchange of contributions to circumvent the intent of this chapter; or

(7) Directly or indirectly, through or by any other person or means, do any act which would subject that entity to the restrictions of this chapter.

B. Furthermore, any professional business entity that violates Subsection A(2) through (7) shall be disqualified from eligibility for Saddle River contracts for the term of the contract so authorized.

§ 55-6. Severability; repealer; applicability of state statutes.

A. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held to be unconstitutional, invalid, or unenforceable by a court of competent jurisdiction, such decision shall not affect the remaining portions of this chapter.

B. Any ordinance inconsistent with the terms of this chapter is hereby repealed to the extent of such inconsistency.

C. Any matters not specifically covered by the provisions of this chapter shall be directed by the appropriate New Jersey state statute covering public contracting N.J.S.A. 40A:11 et al., and political contribution disclosures N.J.S.A. 19:44A et al.