Camden City Council lifts limit on use of taxpayer money to cover city officials’ legal fees

Two months after former Camden Mayor Dana L. Redd was indicted on state corruption charges, as was influential Democrat George E. Norcross III, city lawmakers voted to lift a cap on the amount of taxpayer money that can be spent on the legal defense of current and former officials.

The City Council adopted on Tuesday regulation that would authorize “reasonable attorney fees” for current and former public officials in certain circumstances. This is a change from existing lawthat sets the maximum amount of money that can be allocated under the city’s “cost recovery schedule.” A 2002 law set the rate at $125 an hour, officials said.

The ordinance does not specify what would constitute “reasonable” fees. It does say, however, that any disputes on the matter between the city and a current or former public official would be referred to a “neutral mediator” who would make a recommendation.

As lawmakers discussed the matter, council attorney Howard McCoach acknowledged that the statute does not place a limit on the total amount of money that can be returned. “There is no limit,” he said, adding that it is consistent with state law.

Lawmakers have not said what prompted the bill, and Redd’s case was not mentioned until a resident brought it up. Redd’s attorney, Henry Klingeman, declined to comment when asked if his client plans to seek reimbursement from the city.

“We’re just making a minor change,” said Councilmember Arthur Barclay, who introduced the measure. “It’s nothing new.” He declined to discuss the legislation when approached by a reporter after the meeting.

Council member Christopher Collins, who abstained, asked if the city had ever paid for a current or former official’s legal defense when it was not required by law.

“I’m not sure,” council chairman Angel Fuentes said. McCoach replied, “I’m guessing and I’d say yes.”

The ordinance passed 4-0. A member of the public later challenged the decision, citing the city’s long-standing financial problems.

It will now head to Mayor Victor Carstarphen’s desk. If the mayor signs the bill, it will be subject to approval by the state’s community affairs commissioner, who oversees Camden’s finances.City Budget for 2024 of $214 million provides $131 million in state aid.

Extortion case

Tuesday’s vote came after a state grand jury indicted Redd in June for participating in a criminal enterprise led by Norcross, who used his influence with government entities — as well as threats of economic and reputational damage — to obtain Camden waterfront real estate, property rights and the tax breaks that go with them.

Norcross, Redd and four other co-defendants have pleaded not guilty. Their lawyers have said the allegations are baseless. Redd, 56, served as mayor from 2010 to 2018 and previously served as a City Council member and state senator.

The indictment, handed down by a grand jury in Trenton, alleges that Redd helped Norcross and his allies — referred to by prosecutors as the “Norcross Enterprise” — in 2014 force the nonprofit Cooper’s Ferry Partnership to sell the rights to an office convoluted known as L3 for less than it was worth.

According to the indictment, after extorting the nonprofit, Norcross Enterprise tried to remove Cooper’s Ferry’s CEO from his position by threatening to damage his reputation and cause economic harm — in part to benefit Redd, whose term as mayor was coming to an end.

CEO Anthony Perno agreed to resign. He was replaced by Kris Kolluri, who resigned from his position as CEO of the Rowan University/Rutgers-Camden board. Redd was then appointed to Kolluri’s former position.

Around the same time, the state legislature passed a law that “made this path financially lucrative” for Redd, according to the indictment.

A 2007 law excluded newly elected officials from the pension system, placing them instead in a different retirement plan. So when Redd left the Senate to become mayor in 2010, her pension was frozen. Under the fresh law signed by Gov. Chris Christie, Redd was “one of a handful of individuals permitted to return to the previous pension system,” the indictment says.

“This in itself significantly increased the amount she would ultimately earn from her pension,” the indictment reads, adding that the amount increased even more when she took a position on the university’s board, a position in state government, was paid $275,000 per year.

Redd’s attorney, Klingeman, said the former mayor “wants to fight these false accusations to restore her good name.”

Legal defense

During Tuesday’s meeting of the City Council, the issue was raised Article II of Chapter 44 of the Municipal Codewhich entitles current and former employees to provide legal assistance “in the event of proceedings initiated against them due to any acts or omissions arising from the performance of their employment duties or public functions.”

While the city is sometimes required to provide a legal defense, the rules passed Tuesday were confined to employees “who are not expressly entitled under New Jersey law” to have the costs of their defense covered by the city.

Like the current ordinance, the fresh ordinance would allow a city attorney to decline to defend a case if he or she establishes, among other things, that “the act or omission was occasioned by actual fraud, willful misconduct, or actual malice.”

The fresh rules state that if a current or former employee pleads guilty or is found guilty of any criminal charges, the city attorney “may decline to continue defending the case and may seek reimbursement of attorney fees and costs.”

Vince Basara, a city spokesman, said the fresh ordinance reflects state law, which also allows for “reasonable” fees. the law says that public officials People accused of official-related crimes may be able to receive attorney fees if the charges are dismissed or the case is decided in their favor.

No current or former Camden employees are seeking attorney fees “at this time,” Basara said.

This article has been updated to clarify the circumstances under which the New Jersey Legislature passed legislation affecting Dana Redd’s pension.