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More Scandals to Hit Holmdel

  • Kin Gee
  • Jan 27, 2020
  • 5 min read

Editorial note – Please share and cross post this to family, friends and neighbors. If you wish to receive this as an email directly, please send an email to betterholmdel@yahoo.com.]


Jan. 27, 2020 – As part of my New Year thoughts in both 2019 and 2020, I wrote that the Washington Post added a new slogan beneath its masthead that “Democracy Dies in Darkness”. This was not intended to be prescient but events in 2019 proved that to be the case. This may also be the case in 2020 based on the agenda released for the Tuesday Township Committee meeting as well as other information that has now come to light.


Allegations of Ethics Law Violation by Critelli


In 2019, we saw the attempt to divert public funds for an artificial turf at the Swim Club resulting in unauthorized engineering expenses of $58,000 and the censure of former Mayor Eric Hinds. In addition, there was the investigation of ethics law violations by former Township Administrator Donna Viero and Human Resources Director Denise Callery. In the shadow was also the allegations of conflict of interest by Committeeman Tom Critelli regarding the direct or indirect financial interest in a property that was included as part of Holmdel’s affordable housing plan.


Some of you may remember that at the end of the investigation of the ethics law violations by Viero and Callery, outside counsel Sean Kean had informed the Township Committee that, in the course of the investigation, new information came to light and that he felt obliged to bring this to the attention of the Township Committee. Among other items, the new allegations included the allowing of unauthorized reimbursement from the Federal Emergency Management Agency (FEMA) funds. At the time, there was quite a bit of “noise” in opposition to increasing legal fees for the independent investigation and that this was further proof of a witch hunt. See also articles in the StarLedger/NJ.com and Patch/Holmdel regarding the independent investigation:




Six months later, all this came home to roost. Now, in a bombshell laid out in a 3-page letter from the Office of the County Prosecutor, Monmouth County. The letter detailed that in 2011, prior to becoming a member of the Holmdel Township Committee, Critelli filed a claim for damages, asserting that the damage was from flooding due to a backup of a sewer and that the Township was responsible for the damage. (See the 2011 article in the Patch https://patch.com/new-jersey/holmdel-hazlet/township-authorizes-140k-more-for-road-repairs-followf7d8b07409)


In a negotiated settlement with the Township insurance carrier, this claim was settled in 2012 and a release from any further liability was signed by Critelli. However, despite this release, the letter went on to say that there was continued negotiation involving then-Mayor Pat Impreveduto and Committeeman Eric Hinds to pay Critelli an additional $10,000. The letter alleges that this was achieved when, after Critelli was sworn in as Township Committeeman in January 2013, a purchase order of $9,872.50 was approved in February 2013 to be paid to Danitom Development, a business co-owned by Critelli. The record showed that Critelli, Hinds, Joe Ponisi and Mayor Impreveduto all voted “ayes” to the resolution for the bills payable (absent from the vote was Greg Buontempo).


The letter indicated that the Prosecutor Office could not find sufficient proof for a criminal prosecution but requests that Holmdel Township refer charges of ethics law violation to the Local Finance Board (also known as the Ethics Board) since Critelli did not recuse himself for the vote (a violation of ethics law) and that Critelli’s claim that he was unaware that he was voting on a check to his own company was disingenuous in light of the paperwork that he filled out on the same day of the Township Committee meeting in order to receive the check.


The letter went on to say that “any discussions regarding payments to settle lawsuits should be discussed with the full committee as well as the township attorney, not settled behind the scenes without a full discussion among the committee.” (Emphasis added.)


See link below for the full agenda and pp. 73-76 for the letter and resolution:



NJ Natural Gas Regulator Station


After it was denied twice by the Holmdel Zoning Board for an industrial gas regulator station, NJ Natural Gas filed an appeal with the NJ Board of Public Utilities seeking to override the decision by the Holmdel Zoning Board. The BPU assigned the case to the Office and Administrative Law (“OAL”) and is now a legal proceeding before Administrative Law Judge (“ALJ”) Elia Pelios. Holmdel Township, by statute, is automatically a party to the legal proceeding.


In the December 2019 meeting, a settlement agreement appeared on the Township Committee agenda that would have allowed NJNG to build the regulator station despite the fact that there was vocal public opposition against this and the two denials by the Holmdel Zoning Board. Residents, alarmed by the proposed settlement agreement, made it known of their continued opposition and the Township Committee voted no to the proposed settlement agreement.


Now, in a letter brief dated January 15, 2020 filed by NJNG’s outside counsel, we learned that Holmdel’s outside counsel waived its right to any pre-filed testimony in the case back in April 2019. Normally, outside counsel follows instruction and direction from their client (in this case, Holmdel Township). It has been the practice of the Township Committee not to discuss nor disclose any information regarding an active litigation. Nevertheless, it was very surprising to learn that the Township decided it was not going to present any pre-filed testimony back in April 2019.


It’s not clear whether it was the goal the Township Committee under the guidance of the then-Mayor Hinds to really oppose the case or not. However, it’s typically not easy to win a case if you don’t file testimony and present cogent arguments. Knowing what we know now, the surprising appearance of the December 2019 proposed settlement agreement may not be surprising if the Township Committee had not planned to seriously oppose the case all along.


Unless it is sealed, once a filing has been made in court, it is a matter of public record. At a minimal, the other parties to the legal proceedings are served with the filings and are aware of the content. It makes sense not to disclose legal strategy or legal advice to the public and to alert the other side. However, it continues to be surprising that the Township Committee continues to take the position that it doesn’t provide the information to the public even after legal filings are made. In this specific case, it can be argued that the public interest was not served. Certainly, it was very relevant for residents to know back in April 2019 that the Township had not planned to submit testimony against NJNG’s petition.


A public hearing for the NJNG case has been scheduled on Feb. 13th, 6 PM, at the Senior/Community Center. At the last Township Committee meeting, Mayor Greg Buontempo had encouraged all residents to attend the public hearing and to make comments.


Public comment is important and the BPU value public input to all their cases. However, at the same time, it is important to note that ALJ Pelois can only base his decision on the evidence, testimonies, cross examinations, rebuttals, arguments, etc. in the legal proceeding. This does NOT include public comments made during the public hearing. The public does not have legal standing to make arguments before the judge in this case unless it was granted status as an intervenor. Right now, the Township and the NJ Division of Rate Counsel, by statute, are the only intervenors in the NJNG case.


There are signs that the new Township Committee is taking steps to operate in a more transparent manner. Residents hope that this will apply to information for litigation filings; especially once the filings have been made and are in the “public domain”.


It is only January but 2020 has already shown signs to be an interesting year.

 
 
 

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