Ethics Reform for Jersey City

[Sonia]

Received the following email from Councilman Fulop today, concerning the need for ethics reform in Jersey City. It's notable that I was speaking earlier with someone, from my own generation, who was born in Jersey City, and told me about corruption in this town during the 60s & 70s, when downtown was a series of railroad tracks, and before the days of Sam Lefrak. Back then, I'm told, corruption was so blatant, investors from NYC, looking across to this side of the river were hesitant to come over and build, despite the obvious proximity to Manhattan, and Jersey City's promising future. It took courage to start building here, and an awesome amount of money. Corruption today is more subtle, but still a way of conducting business for some. It's clearly time to bring about some change in how Jersey City government does business.

Here is Steve's email:


I am taking a second to update you on the two referendums that I mentioned in my last e-mail. These will have a significant impact on Jersey City regarding dual jobs and prohibiting pay-to-play.
I would like you to understand that while "double- dipping" is permissible by state statue, the ordinances governing the actual salary and pensions are in fact, established by the City. Therefore, we have the ability to change this.

Regarding the the second referendum, pay-to play reform, once passed, it will place Jersey City in 1st place for the highest standards in the state, as they relate to the impact of political contributions on city services.

We are gaining tremendous momentum on both initiatives, but we can always use your help. You can make a difference in your City.

Sincerely,

Steven Fulop

[Humanoid]

Just a little observation: on their website, betterjc.com, Jersey City is represented by a photo of Exchange Place. Including Newport into the picture would be very easy and yet, it is missing.

[Sonia]

Humanoid,

You're correct, they don't include Newport. I'm presuming that's an oversight and will email Steve Fulop tomorrow.

Also, let me point out, it's not that we are supporting betterjc.com, or for that matter, Steve's candidacy, we are merely backing ethics reform for Jersey City, and the referendum. We'll decide how to handle this, after I hear back from Steve.

[Sonia]

I realize it's a long read, but here is a copy of the proposed ordinances, which would go to referendum, if not passed by the city council:

Contractor Pay To Play
INITIATIVE PETITION

We the undersigned registered voters of Jersey City, New Jersey, petition that the City of Jersey City adopt the following ordinance:

CONTRACTOR PAY-TO-PLAY REFORM ORDINANCE

Preamble

WHEREAS, large political contributions from those seeking or performing contracts with a municipality, raise reasonable concerns on the part of taxpayers and residents as to their trust in government and its business practices;

WHEREAS, pursuant to N.J.S.A. 40:48-2, a municipality is authorized to adopt such ordinances, regulations, rules and by-laws as necessary and proper for good government, as well as the public health, safety and welfare; and

WHEREAS, pursuant to P.L.2005, c.271 (codified at N.J.S.A. 40A:11-51) a municipality is authorized to adopt by ordinance, measures limiting the awarding of public contracts to business entities that have made political contributions, and limiting the contributions that the recipient of such a contract can make during the term of a contract; and

WHEREAS, in the interest of good government, the people and the government of the City of Jersey City desire to establish a policy that will avoid the perception of improper influence in public contracting and local elections;

NOW, THEREFORE, BE IT RESOLVED, it shall be the policy of the City of Jersey City to create such a regulation which states that a business entity which makes political contributions to municipal candidates and municipal and county political parties in excess of certain thresholds shall be limited in its ability to receive public contracts from the City of Jersey City; and

BE IT ORDAINED by the City of Jersey City, in the County of Hudson, and State of New Jersey, as follows:

SECTION 1 PROHIBITION ON AWARDING PUBLIC CONTRACTS TO CERTAIN CONTRIBUTORS

(a)To the extent that it is not inconsistent with state or federal law, the City of Jersey City and any of its departments, instrumentalities or purchasing agents shall not enter into any agreement or otherwise contract to procure "professional services" as such term is defined at N.J.S.A. 40A:11-2(6) and used at N.J.S.A. 40A:11-5(1)(a)(i) and/or banking, insurance or other consulting service (hereinafter "professional services"), nor "extraordinary unspecified services" as such term is defined at N.J.S.A. 40A:11-2(7) and used at N.J.S.A. 40A:11-5(1)(a)(ii) and/or media, public relations, lobbying, parking garage management or other consulting and/or management service (hereinafter "extraordinary unspecified services") from any business entity if such business entity has solicited or made any "contribution" (as such term is defined at N.J.A.C. 19:25-1.7, which definition includes loans, pledges and in-kind contributions) (hereinafter "contribution"), to (i) a candidate, candidate committee or joint candidates committee of any candidate for elective municipal office in Jersey City or a holder of public office having ultimate responsibility for the award of a contract, or (ii) to any Jersey City or Hudson County political committee or political party committee, or (iii) to any continuing political committee or political action committee that regularly engages in the support of Jersey City municipal or Hudson County elections and/or Jersey City municipal or Hudson County candidates, candidate committees, joint candidate committees, political committees, political parties, political party committees, (hereinafter "PAC"), in excess of the thresholds specified in subsection (d) within one calendar year immediately preceding the date of the contract or agreement.

(b)No business entity who submits a proposal for, enters into negotiations for, or agrees to any contract or agreement with the City of Jersey City or any of its departments or instrumentalities, for the rendition of "professional services" or "extraordinary unspecified services" shall knowingly solicit or make any contribution, to (i) a candidate, candidate committee or joint candidates committee of any candidate for elective municipal office in Jersey City, or a holder of public office having ultimate responsibility for the award of a contract, or (ii) to any Jersey City or Hudson County political committee or political party committee, or (iii) any "PAC" between the time of first communication between that business entity and the municipality regarding a specific agreement for "professional services" or "extraordinary unspecified services", and the later of the termination of negotiations or rejection of any proposal, or the completion of the performance or specified time period of that contract or agreement.

(c)For purposes of this Ordinance, a business entity whose contributions are regulated by this ordinance means: (i) an individual including the individual's spouse, and any child/children; (ii) a firm; corporation; professional corporation; partnership; limited liability company; organization; association; and any other manner and kind of business entity; (iii) any person who owns 10% or more of the equity or ownership or income interests in a person or entity as defined in sections (i) and (ii) above and their spouses and child/children; (iv) all partners or officers of such an entity, in the aggregate, and their spouses and child/children; and (v) all persons who are an "affiliate" of a person as defined in sections (i) and (ii) above, as such term is used in 11 U.S.C. 101(2).

(d)The monetary thresholds of this Ordinance are: (i) a maximum of $300 each for any purpose to any candidate or candidate committee for mayor or governing body, or $500 to any joint candidates committee for mayor or governing body, or $300 to a political committee or political party committee of the City of Jersey City; (ii) $500 to a Hudson County political committee or political party committee; (iii) $500 to any "PAC". However, any group of persons meeting the definition provided in section (c) above of business entity may not annually contribute for any purpose in excess of $2,500 to all City of Jersey City candidates, candidate committees, joint candidate committees, and holders of public office having ultimate responsibility for the award of a contract, and all City of Jersey City or Hudson County political committees and political party committees, and all "PAC"s, 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 (i) the City of Jersey City Mayor or Governing body, if the contract requires approval or appropriation from the Mayor or Governing body, or (ii) the Mayor of the City of Jersey City, if the contract requires approval of the Mayor, or if a public officer who is responsible for the award of a contract is appointed by the Mayor.

SECTION 2 CONTRIBUTIONS MADE PRIOR TO THE EFFECTIVE DATE

No contribution or solicitation of contributions made prior to the effective date of this Ordinance shall be deemed to give rise to a violation of this Ordinance.

SECTION 3 - CONTRIBUTION STATEMENT BY PROFESSIONAL BUSINESS ENTITY

(a)Prior to awarding any contract or agreement to procure "professional services" or "extraordinary unspecified services" from any business entity, the City of Jersey City or its purchasing agents and departments, as the case may be, shall receive a sworn statement from the intended recipient of said contract that he/she/it has not made a contribution in violation of Section 1 of this Ordinance. The City of Jersey City, its purchasing agents and departments shall be responsible for informing the City Council that the aforementioned sworn statement has been received and that the business entity is not in violation of this ordinance, prior to awarding the contract or agreement.

(b)The recipient of said contract or agreement shall have a continuing duty to report any violations of this Ordinance that may occur during the negotiation, proposal process or the completion of the performance or specified time period of that contract or agreement. The certification required under this subsection shall be made prior to entry into the contract or agreement with the City of Jersey City, or prior to the provision of services or goods, as the case may be, and shall be in addition to any other certifications that may be required by any other provision of law.

SECTION 4 RETURN OF EXCESS CONTRIBUTIONS

A recipient of a contract for "professional services" or "extraordinary unspecified services" may cure a violation of Section 1 of this Ordinance, if, within 30 days after the date on which the applicable ELEC report is published, the contract recipient notifies the municipality in writing and seeks and receives reimbursement of the contribution from the recipient of such excess contribution.

SECTION 5 EXEMPTIONS

The contribution limitations prior to entering into a contract in Section 1(a) do not apply to contracts which (i) are awarded to the lowest responsible bidder after public advertising for bids and bidding therefor within the meaning of N.J.S.A. 40A:11-4, or (ii) are awarded in the case of emergency under N.J.S.A. 40A:11-6. There is no exemption for contracts awarded pursuant to a "Fair and Open Process" under N.J.S.A. 19:44A-20 et seq.

SECTION 6 PENALTY

(a)It shall be a material breach of the terms of a City of Jersey City agreement or contract for "professional services" or "extraordinary unspecified services" when a recipient of such agreement or contract has: (i) made or solicited a contribution in violation of this Ordinance; (ii) knowingly concealed or misrepresented a contribution given or received; (iii) made or solicited contributions through intermediaries for the purpose of concealing or misrepresenting the source of the contribution; (iv) made or solicited any contribution on the condition or with the agreement that it will be re-contributed to a candidate, candidate committee or joint candidates committee of any candidate for elective municipal office in Jersey City, or a holder of public office having ultimate responsibility for the award of a contract, or any Jersey City or Hudson County political committee or political party committee, or any "PAC"; (v) engaged or employed a lobbyist or consultant with the intent or understanding that such lobbyist or consultant would make or solicit any contribution, which if made or solicited by the professional business entity itself, would subject that entity to the restrictions of this Ordinance; (vi) funded contributions made by third parties, including consultants, attorneys, family members, and employees; (vii) engaged in any exchange of contributions to circumvent the intent of this Ordinance; or (viii) directly or indirectly, through or by any other person or means, done any act which if done directly would subject that entity to the restrictions of this Ordinance.

(b) Furthermore, any business entity that violates Section 6 (a) ii-viii shall be disqualified from eligibility for future City of Jersey City contracts for a period of four (4) calendar years from the date of the violation.

SECTION 7 CITIZENS PRIVATE RIGHT OF ACTION

Notwithstanding any other common right of law, any Jersey City citizen or citizens group shall have the right to sue any or all entities in violation of this ordinance, including the business entity awarded a contract or agreement to provide "professional services" or "extraordinary unspecified services", the candidate or committee as specified in subsection 1(a) above, and/or the City Jersey City, in order to compel those entities to comply with this ordinance.

SECTION 8 SEVERABILITY

If any provision of this Ordinance, or the application of any such provision to any person or circumstances, shall be held invalid, the remainder of this Ordinance to the extent it can be given effect, or the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected thereby, and to this extent the provisions of this Ordinance are severable. The drafters of this Ordinance, the persons signing the petition in support of this Ordinance, and the persons who cast votes in favor of the Ordinance, declare that they would have supported the Ordinance and each section, subsection, sentence, clause, phrase, or provision or application thereof, irrespective of the fact that any one or more other sections, subsections, sentences, clauses, phrases, or provisions or applications thereof may be held invalid.

SECTION 9 REPEALER

All ordinances or parts of ordinances which are inconsistent with any provisions of this Ordinance are hereby repealed as to the extent of such inconsistencies.

SECTION 10 EFFECTIVE DATE

This Ordinance shall become effective twenty (20) days following the final adoption thereof by the Municipal Council of the City of Jersey City and shall be published as required by law.


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Restriction on Dual Salaries and Pensions for Elected Officials in Jersey City
INITIATIVE PETITION

To the Municipal Clerk and the Council of the City of Jersey City, New Jersey:

We, the undersigned, registered voters of the City of Jersey City, hereby petition for the amending of the “Municipal Employment Salary Ordinance”, consisting of one (1) page, which is annexed hereto and made a part hereof, under the power of initiative granted to voters of the City of Jersey City by N.J.S.A. 40:69A-184. If the same is not passed by the City Council within the time prescribed by N.J.S.A. 40:69A-184 et seq., and in accordance with that same N.J.S.A. 40:69A-184 et seq., the undersigned voters require that the same be submitted to the electorate for a vote at the next general election in accordance with N.J.S.A. 40:69A-184 et seq., with the question to be put to the voters in this manner:

The Municipal Employment Salary Ordinance, duly submitted to be amended by initiative petition to the City of Jersey City, which includes amending the salary on elected members of the municipal council of Jersey City so that if municipal council members are already receiving a publicly funded salary equal or greater than the city council salary, they are not entitled to another salary paid by the city of Jersey City

ORDINANCE AMENDING CHAPTER 17 (MUNICIPAL EMPLOYMENT SALARY)

ORDINANCE AMENDING CHAPTER 17 (MUNICIPAL EMPLOYMENT) ARTICLE 1X. (SCHEDULES) SCHEDULE B (UNCLASSIFIED POSITIONS FOR CITY EMPLOYEES) OF THE JERSEY CITY CODE.

THE MUNICIPAL COUNCIL OF THE CITY OF JERSEY CITY DOES ORDAIN:

ARTICLE 1X. SCHEDULES

A. The following amendment to the chapter 17 (Municipal Employment) Article 1X

(Schedules) Schedule B (Unclassified Positions for City Employees) of the Jersey City Code be and it is hereby adopted:

Title Maximum

Council Members (8) 22,500*

Council President 24,500*

*These salaries shall become effective commencing July 1, 1993. Commencing January 1, 1994, the salary of Council members and the Council President shall be increased annually by an amount equal to the lowest annual increase payable under any collective bargaining agreement then in effect with any collective bargaining unit. If a Council Member or Council President receives any additional salary or salaries from any other public entity of the State of New Jersey, the salary he or she receives from the City of Jersey City shall be reduced up to the full amount of the additional salary, up to a maximum of the current salary for Council Members and for the Council President based on raises from the lowest annual increase from the base of 22,500 for council members or 24,500 for the council president, or whatever amount shall equal $1.00 in total compensation.

B. All ordinances and parts of ordinances inconsistent herewith are here by repealed.

C. This ordinance shall be a part of the Jersey City Code as though codified and fully set forth therein. The City shall have this ordinance codified and incorporated in the official copies of the Jersey City Code.

[Minnie]

Humanoid,

Also, let me point out, it's not that we are supporting betterjc.com, or for that matter, Steve's candidacy, we are merely backing ethics reform for Jersey City, and the referendum. We'll decide how to handle this, after I hear back from Steve.



It's got to start somewhere. When is the meeting?

[HPiranha]

The ethics point though is a little silly. What politician would claim to be against ethics? What private citizen is going to tell you they don't think ethics are important? It's like saying you are for better education for the children and better healthcare for the elderly.

[Sonia]

It's my understanding that the 2,000 or so signatures needed to put the referendums on the ballot have already been collected, but the objective is to gather 20,000 signatures to impress the PTBs. The majority of the city council members also have jobs with the county or city where their salaries exceed the pittance they get paid to sit on the council. The "double dipping" ordinance would mean they would have to give-up their council compensation, and essentially serve without pay. Personally, I think the referendums will go to an election, and pass; and, then be subject to legal ch*****ges. However, the point is you have to start somewhere, and out of this some form of ethics reform should emerge.

BTW, the two ordinances fail to address corruption in terms of personal payoffs and favors. Jersey City needs legislation requiring disclosure of personal financial information, including personal bank accounts, brokerage accounts etc. As it stands right now, although it's illegal and probably criminal, it's easy to hide cash assets, and transfers.