ORDINANCE NUMBER 808-19 BOROUGH OF LODI

Bergen County, New Jersey

AN ORDINANCE OF THE BOROUGH OF LODI, IN THE COUNTY OF BERGEN AND STATE OF NEW JERSEY ESTABLISHING REGULATIONS AND RESTRICTIONS APPLICABLE TO INDIVIDUALS AND ENTITIES CONTRACTING WITH THE BOROUGH OF LODI AND REGULATING AND RESTRICTING THE PRACTICE KNOWN AS "PAY TO PLAY".

WHEREAS, individual and business entities engaged in the service of a recognized profession licensed by the State of New Jersey are exempt from the public bidding requirements of the New Jersey Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.); and WHEREAS, it has become common practice throughout the State of New Jersey for such individuals and business entities seeking appointment to professional service and other public contracts exempt from New Jersey's public bidding requirements to make substantial contributions to the election campaigns of local government elected officials who are ultimately responsible for awarding professional service contracts or other contracts or agreements which are not subject to the competitive bidding requirements of applicable New Jersey Law; and WHEREAS, substantial local political contributions from professionals receiving discretionary contracts from the elected officials who receive such contributions raise reasonable concerns on the part of taxpayers as to their trust in the process of local government, if not the quality or cost of the services so received; and WHEREAS, pursuant to P.L. 2005, c. 271, a municipality is authorized to adopt by ordinance measures limiting the awarding of public contracts to individuals and/or business entities engaged in the provision of professional services that have made political contributions; moreover, the legislation aforesaid provides that a municipality may adopt restrictions limiting the contributions that the holders of a contract can make during the term of the contract; and WHEREAS, pursuant to N.J.S.A. 40:48-2, municipalities have the right and authority to establish and promulgate rules, regulations and procedures for contracting with individuals and business entities providing professional services; and

NOW, THEREFORE, BE IT ORDAINED that the Mayor and Council of the Borough of Lodi, in the County of Bergen, State of New Jersey, that the practice and policy of the Borough of Lodi shall be and is hereby established through the promulgation of the following rules and regulations, set forth in the sections contained below, to set maximum amounts that individuals and business entities providing or

seeking to provide professional services may contribute to political campaigns of elected officials beyond which such individuals and/or business entities shall be deemed to be ineligible to engage in a non-bid, professional service contract(s). Section 1: Prohibition Contributors on Awarding Public Contracts to Certain

a. Any other provision of law to the contrary notwithstanding, the governing body of the Borough of Lodi or any its Departments, agencies, boards or committees, as the case may be, shall not enter into an agreement or otherwise contract to procure professional, banking, auditing, insurance coverage or any consulting services, other than those awarded in accordance with a "fair and open" procurement 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 candidate seeking election to the Borough Councilor holder of public office responsible for the award of any professional, banking, auditing, insurance coverage or any other consulting contract, or campaign committee supporting such candidate or office holder, or to any Borough of Lodi political party or committee, or to any political action committee (PAC) that regularly engages in the support of Borough of Lodi municipal elections and/or Borough of Lodi political parties or committees or tickets in excess of the thresholds specified in subsection (d) of this Ordinance within four (4) calendar years immediately preceding the date of the contract or agreement. b. No professional business entity providing professional service of the nature described in subsection (a) hereof which enters into negotiations for, or agrees to, any contract or agreement with the Borough of Lodi, or any its Departments, agencies, boards or committees, as the case may be, for the provision of professional, banking, auditing, insurance coverage or any consulting services, other than those awarded in accordance with a "fair and open" procurement process, shall solicit or make any contribution of money, or pledge of a contribution, including in-kind contributions, to a Borough of Lodi municipal candidate or holder of public office responsible for the award of any professional, banking, auditing, insurance coverage or any other consulting contract, or campaign committee supporting such candidate or office holder, or to any Borough of Lodi political party or committee, or to any political action committee (PAC) that regularly engages in the support of Borough of Lodi municipal elections and/or Borough of Lodi political parties or committees or tickets in excess of the thresholds specified in Section 1, Subsection (d) of this Ordinance between the time of the first communications between that individual or business entity and a representative of the Borough regarding a specific professional service agreement and the later of the termination of negotiations or the completion of the contract of agreement.

c. For purposes of this Ordinance, "professional business entity" as referred to herein shall include an individual engaged in the service of providing professional services of the nature described in subsection (a) hereof, including the individual or principal of such business entity's spouse or child or children living in the same home of

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such individual or principal. As used herein, a "principal" of a business entity is a person who owns 10% or more of the equity in the business, regarding of the corporate form thereof, as well as any and all subsidiaries directly owned or controlled by the business entity. d. Any individual meeting the definition of "professional business entity" as contained in subsection ( c) of this Ordinance may contribute a maximum for each four (4) year election cycle of $2,500.00 per candidate for any purpose to any candidate or candidates for Borough Council, or $2,500.00 to a Borough of Lodi political party or committee or ticket, or $2,500.00 for each four (4) year election cycle to any PAC as referenced in this Ordinance, without having violated the prohibitions set forth in subsection (a) of this Ordinance. However, any group of individuals meeting the definition of "professional business entity" as contained in subsection ( c) of this Ordinance, including such principals, partners and officers of the entity, may not contribute for any purpose in excess of $2,500.00 to any individual Borough of Lodi candidate for municipal office and/or office holder with ultimate responsibility for the award of a professional service contract, or to any political parties, committees, PACs and/or tickets in the Borough of Lodi supporting candidate(s) for municipal office in the Borough of Lodi for each four (4) year election cycle without having violated the prohibitions set forth in subsection (a) of this Ordinance. e. For purposes of this Ordinance, the office(s) that are considered to have ultimate responsibility for the award of a professional service contract shall be Mayor and Council of the Borough of Lodi. Section 2: Anti-Circumvention Provision

It shall be a breach of the terms of the Borough's professional service agreement and a violation ofthe terms of this Ordinance for a professional business entity to: (i) make or solicit a contribution as prohibited hereby; (ii) knowingly conceal or misrepresent a contribution given or received; (iii) make or solicit contributions through intermediaries for the purpose of concealing or misrepresenting the source of such contribution; (iv) 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 a public office of the Borough of Lodi; (v) engage or employ a lobbyist or consultant with the intent or understanding that such lobbyist or consultant would make or solicit any contribution which ifmade or solicited by the business entity itself would subject that entity to the restrictions and prohibitions of this Ordinance; (vi) fund any contribution made by a third party or parties, including any consultants, lobbyists, attorneys, family members or employees; (vii) engage 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, do any act which would subject that entity to the restrictions and prohibitions of this Ordinance.

Section 3: Contributions

Made Prior to the 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, committee, PAC, committee or ticket as referred to in this Ordinance shall be deemed to constitute a violation of this section, 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 Ordinance. Section 4: Contribution Statement by Professional Business Entity

a. Prior to awarding any contract or agreement to procure services, including banking or insurance coverage or consulting services, with any professional business entity, the Borough shall receive a sworn statement from the professional business entity made under penalty of perjury that the professional business entity has not violated any of the provisions of this Ordinance, which sworn statement shall be made and offered and on file with the Borough Clerk of the Borough of Lodi prior to the commencement of the term of such contract. b. The professional business entity shall have a continuing duty to report any violations of this Ordinance that may occur during the negotiation or duration of a contract in which such professional business entity is so engaged with the Borough of Lodi. Section 5: Return of Excess Contributions A professional business entity of Borough candidate or office holder or municipal political party, committee or ticket of PAC referenced in this Ordinance may cure a violation of Section 1 hereof, if within 3 a days after receipt of a prohibited contribution, the professional business entity notifies the Borough Council in writing of such violation and seeks and receives reimbursement of the violating contribution. Section 6: Penalty Any professional business entity which violates any of the provisions of this Ordinance shall be disqualified from eligibility for future contracts or appointments with or by the Borough of Lodi for a period of five (5) years from the date of the violation. Section 7: Severability and Effectiveness Should any section, subsection, clause, sentence term or provision of this Ordinance be adjudged by a Court of competent jurisdiction to be unconstitutional, invalid or unenforceable, such adverse determination shall not affect the remaining portions of this Ordinance. Further, any ordinance of the Borough of Lodi inconsistent with the terms of this Ordinance is hereby repealed to the extent of such inconsistency.

Section 8: Effective Date This Ordinance shall become effective immediately upon passage and publication in accordance with the requirements of law.

Introduced this 19th day of February, 2008 ATTEST:

The form and legal substance of the within Ordinance have been reviewed and approved by the Borough Attorney.

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MAR 1 7 2008
AYE NAY ABSTAINED M.N. SCHRIEKS B.T. MASOPUST T.DeSOMMA P. FIDUCCIA MAYORVISCANA
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