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Comments:
: : 18. Such inherent conflicts of interest are not limited to tax abatement issues. By way 
: :        of further example, the City of Jersey City participates with the Hudson County Incinerator 
: :        Authority and the Hudson County Improvement Authority. Such participation generates income 
: :        to the County of Hudson from the City of Jersey City. For instance, the City of Jersey could 
: :        save approximately $1,000,000.00 per year if it dealt directly with garbage disposal providers, 
: :        instead of participating through joint County/municipal departments. To a certain extent, the 
: :        City of Jersey City subsidizes County trash disposal, as the City is the largest municipality in the
: :        County representing 45% of the entire County. It would be in the City's interest to directly 
: :        dispose of its own trash, but this would result in lost revenues to the County and more expense
: : for the County in handling trash disposal for its other, smaller municipalities. The Jersey City 
: :        Municipal Council would have to vote and approve any withdrawal from the County trash 
: :        disposal programs. Decisions relating to the nature and extent of the City's involvement, 
: :        including financial decisions involving monies that flow from the municipal to County level, 
: :        should not be decided by one person who holds an office at the municipal level and an office at 
: :        the County level.
: :           19. The two positions are patently incompatible without further factual consideration. 
: :        However, if the Court is to consider the unique facts of this case, it will be further demonstrated.
: :        As noted above, the office of Chief of Staff to the County Executive is an extremely powerful 
: :        County position. It is commonly known in Hudson County that its Chief of Staff has significant 
: :        powers, often acting in a de facto capacity on behalf of the County Executive. In this specific 
: :        case, it is well known and generally accepted that if William Gaughan, in his capacity as Chief of 
: :        Staff to the Hudson County Executive, wants a person hired or fired, that person will be hired or 
: :        fired.
: :           20. There are presently at least three councilmen that have significant County level 
: :        jobs. It is known that at least one other councilperson has close family members who have 
: :        County level jobs. The President of the Council was just recommended by the defendant for a 
: :        high level County position. For all such councilmen, the continuation of such jobs can be greatly
: :        influenced, either positively or negatively, by the office of the Chief of Staff.
: :           21. As part of his statutory/regulatory duties, the Chief of Staff is required to 
: :        interview and recommend appointees to the County Executive. (Exhibit A Section 3.7.1(c)). In 
: :        November of 2003, he was required to make recommendations to the County Executive for 
: : appointments to various positions at the County departments and commissions. This included 
: :         making job recommendations for fellow members of the Council.
: :             22. Councilman Mariano Vega holds a job as the Director of Hudson County Public 
: :         Resources Department. The salary for that job is approximately $90,000.00.
: :             23. Councilman Junior Maldonado has a job at the Hudson County Improvement 
: :         Authority. That job has a salary of approximately $80,000.00 per year.
: :             24. Councilman Peter Brennan has a $65,000.00 job in the Hudson County 
: :         Maintenance Department.
: :             25. Councilwoman Donnelly's daughter-in-law is employed by Hudson County.
: :             26. In January of 2004, the defendant just recommended Council President Smith to 
: :         the job as Hudson County Under-Sheriff. Council President Smith has no known law 
: :         enforcement experience.
: :             27. As the result of the position of power Councilman Gaughan now holds as Chief of 
: :         Staff to the Hudson County Executive, he has created additional incompatibility, as there is now 
: :         the appearance that the defendant may be able to exercise influence over fellow 
: :         councilmen/councilwomen, as he is their actual or de facto, "boss" at their principal places of 
: :         employment.
: :             28. Such a position of power within the City Council is harmful to the citizens of 
: :         Jersey City. Citizens should expect that their elected representatives can freely debate and vote
: :         upon issues, without the fear of influence or retribution from another councilmember. One 
: :         councilmember should not be permitted to promote his own political or personal agenda as a 
: :         result of leis holding a superior office.
: : 29. Unless the Court corrects the incompatible situation highlighted above, the Court 
: :        will never know whether or not the votes of the councilmen are being made freely and openly or 
: :        as the result of such influence.
: :           30. Such issues and questions already have arisen and exist. By way of example, 
: :        reference is made to Ordinance No. 03-123. This was a refunding bond ordinance that would 
: :        have authorized a refunding and reorganization of the City's debt. It was designed to take 
: :        advantage of the historically low interest rates and permit refinancing of some $335 million of 
: :        past debt. It would have saved the City some $20,000,000.00 per year and likely prevented the 
: :        City from having to raise taxes to otherwise satisfy financial shortfalls. The first reading of the
: :        Ordinance was on September 8, 2003. The defendant was absent from that reading, along with 
: :        Councilman Vega, and the Ordinance was unanimously approved 7-0. It was then set for a final 
: :        reading for final approval.
: :           31. The second reading of the Ordinance occurred on December 3, 2003. The 
: :        defendant was present. The Ordinance was defeated 3-6. The defendant voted against the 
: :        Ordinance. The five other councilmen/councilwonren who voted to defeat this measure were all 
: :        those named herein who had County jobs or ties to County jobs. (Brennan, Donnelly, 
: :        Maldonado, Vega and Smith all voted "Nay", Exhibit C.)
: :            32. The City of Jersey City faces irreparable harm unless this situation is immediately 
: :        addressed and corrected. There are major issues that face the Jersey City Municipal Council on a 
: :        regular basis that have tremendous effect on the citizens of the municipality. The 
: :        aforementioned Ordinance No. 03-123 is a prime example. The City would have saved 
: :        $20 million this year had the Ordinance passed. As a result of the Ordinance not passing, the 
: :        City has essentially lost the benefit of $10 million of debt savings and is faced with financial
: : crisis that may require a cut-back of City services and/or a tax increase. There is no way to 
: :        measure the harm that may occur to individual citizens if the City is forced to reduce services.
: :            33. The City will have one final chance to restructure its debt prior to the time 
: :        upcoming bonds are due in June of 2004. Assuming an Ordinance can be passed permitting debt 
: :        restructuring with favorable interest rates, then the City will need at least 30 days to market the 
: :        plan to various financial vendors. The Ordinance itself requires two separate readings at two 
: :        meetings. If the debt restructuring is not passed, the City's credit rating will suffer, likely being
: :        reduced to "junk bond" status. This would cause irreparable harm on the City for years into the 
: :        future.
: :            34. The citizens of the City of Jersey City deserve a municipal council that functions 
: :        freely, where one member cannot potentially or actually influence the others due to his superior 
: :        office.


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