April 12, Expending $49,700 Of Public Funds On Issue 3

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1 April 12, 2017 Mark V. Guidetti City Law Director 9691 Valley View Road Macedonia, Ohio Expending $49,700 Of Public Funds On Issue 3 Dear Mr. Guidetti: For the following reasons I respectfully ask that you forward all evidence regarding Mayor Migliorini s $49,700 expenditure for the passage of Issue 3 to the Ohio Auditor s Office and Ohio State Treasurer in order for the State to determine whether the Mayor lawfully expended public funds. At the March 23, 2017 Council meeting Mayor Joseph Migliorini disclosed that he spent $49,700 of the taxpayer s money on Issue 3; another attempt to pass an income tax levy that has previously been rejected by Macedonia residents on two separate occasions. The Mayor accepted full responsibility for the expenditure of these funds and said it was for public education. Migliorini said, It s incumbent upon this Mayor and Administration to educate the general public about the issues. Although the Mayor s intent behind expending the monies is debatable, what is not in dispute is that it is illegal for Mayor Migliorini to use public funds to support the passage of Issue 3. Given the Mayor s public stance on the matter, lack of neutrality on information being released, and altogether failure to address opposing views, it is doubtful anyone would see the Mayor s campaign as anything other than propaganda intended to pass Issue 3. Further, Ohio law and the Macedonia Charter prohibit the spending of the public s money except in pursuance of an appropriation made by the City s Council. In this instance, it is undisputed City Council did not debate or pass an ordinance that authorized Mayor Migliorini to spend almost $50,000 for the passage of Issue 3. When the Mayor committed these funds in early March 2017, the City of Macedonia was operating under a temporary three month appropriation passed during December This temporary budget did not appropriate $49,700 or authorize the Mayor to educate or market Issue 3 to Macedonia residents.

2 Mark V. Guidetti Mayor Expending Public Funds April 12, 2017 Page 2 of 2 When Macedonia s City Council passed its final 2017 budget on March 23, 2017 after almost three months of discussions, the budget did not appropriate funds to educate or promote passage of the Issue 3 levy. In summary, there is no evidence that the expenditure was part of Macedonia s 2017 annual budget. Still, Mayor Migliorini took it upon himself to spend the money without authority and in violation of state law. In my opinion, Ohio law requires the Clerk of Council to report the Mayor s actions on this matter to the Ohio s Auditor Office and to the Treasurer of State so that an investigation of these expenditures can take place. Accordingly, I request that as the City s Law Director, you take the initiative and forward the materials. Respectfully submitted, /s/ Jorge Luis Pla Jorge Luis Pla Macedonia Resident cc: Via Only to: Mayor Joseph Migliorini jmigliorini@macedonia.oh.us Clerk of Council Josephine Arceci jarceci@macedonia.oh.us Kevin M. Bilkie kbilkie@macedonia.oh.us David Engle dengle@macedonia.oh.us Sylvia Hanneken shanneken@macedonia.oh.us Nick Molnar nmolnar@macedonia.oh.us Janet Tulleyy jtulley@macedonia.oh.us

3 April 17, 2017 VIA ONLY: Jorge Pla, Esq. RaslanPla & Company, LLC 1701 E. 12th Street, Suite 3GW Cleveland, Ohio RE: Your Correspondence to City of Macedonia re Expenditures Dear Mr. Pla, I am in receipt of your correspondence dated April 12, 2017 in which you make an allegation that there has somehow been an improper expenditure of public funds. To support your position, you say that it is doubtful anyone would see the Mayor s campaign as anything other than propaganda intended to pass Issue 3, particularly in light of the Mayor s public stance, according to you. Notably, you cite no authority in support of your allegation, likely because none exists. Regardless, allow me to provide the following for your information so that you may retract your baseless allegations. First, municipalities are permitted to expend public funds to provide information to taxpayers regarding a levy on which they will vote at an upcoming election. This is part of the purpose of the total expenditure. Second, the expenditure is also for the purpose of gathering information from residents regarding their needs and wants, and to continue providing information to residents throughout the year. Third, public officials do not lose their 1 st Amendment right to free speech by virtue of their taking public office. As such, while certain municipalities may be prohibited from expending public funds to support or oppose a levy, public officials remain free to speak publicly in support of or opposition to a levy. Certainly, the Mayor, the members of Council, as well as members of the administration have publicly spoken both in support of and against Issue 3. Such public statements are proper, and attempting to bootstrap an allegation of improper expenditure of public funds via such statements is simply improper and ignores (and would be in contradiction to) rights guaranteed by the United States and Ohio Constitutions. You also make an allegation that funds were not appropriated in pursuance of an appropriation by City Council. However, the City does not operate on a line item budget. Moreover, the funds were appropriately accounted for via the temporary and subsequently the

4 annual appropriation measure out of funds allocated to the administration/finance, the expenditure of which are, generally, within the administration s discretion. You make reference to the $50,000 competitive bidding threshold in your letter which, as I m sure you realize, this expenditure is below and therefore no legislation approving competitive bidding for the contract was necessary. I should also note that it is interesting, to say the least, that you are now apparently concerned about the expenditure of City funds despite the lawsuit in which you sought over $1,000, from the defendants, which included the City, and then recently appeared at a Council meeting at which you spoke about how much the Farnhurst lawsuit cost the City, such that the City didn t actually win the lawsuit, but rather your clients (despite the fact that, as outlined in my prior correspondence to you, the plaintiffs claims evaluated by the Court were determined to be baseless). You can surely see the discrepancy in now attacking a proper expenditure of funds to provide information to residents of the City, while previously demanding the City pay out on baseless claims levied against it. I hope the foregoing has been of assistance. Very truly yours, Mark V. Guidetti Director of Law, City of Macedonia cc: Mayor Migliorini (via ) All Members of Council (via ) 2 J:\2017\Macedonia\Correspondence\MVG.Pla.Fund.Expend.docx

5 April 19, 2017 Mark V. Guidetti Law Director, City of Macedonia 9691 Valley View Road Macedonia, Ohio Expending $49,700 Of Public Funds On Issue 3 Dear Mr. Guidetti: Thank you for your quick response. It is greatly appreciated. Sincerely, I am surprised that you are unaware of any authority, which holds a municipality is not allowed to expend public funds to support or oppose the passage of a proposed income tax/levy. However, I am happy to bring some of the relevant sections of the Ohio Revised Code to your attention. R.C. 9.03(C) in part states, no governing body of a political subdivision shall use public funds to (e) support or oppose the... passage of a levy or bond issue. R.C. 9.03(C)(2) expressly prohibits the use of public funds to compensate city employees for time spent on any activity to influence the outcome of an election, which includes supporting or opposing the passage of a levy. R.C. 9.03(C)(1)(e) has been interpreted by the Ohio Attorney General to preclude a municipality from using its website to support or oppose the passage of an income tax increase/levy. In the instant matter, the Mayor s expenditure of $49,700 on an advertising campaign to promote the passage of Issue 3; the Mayor s use of City service department workers to put up signs throughout Macedonia that advocate for the passage of Issue 3; and the City posting, on its website, that it is critical to pass Issue 3 are, in my opinion, in violation of R.C. 9.03, which sets clear parameters for the expenditure of public funds. Next, I am not taking issue with Mayor Migliorini s constitutionally protected First Amendment Rights. I fully support the Mayor s right to advocate for or against a particular issue on his own time and without expending City resources. Also, I shall never personally criticize the Mayor or any City employee for taking a position on a matter that is contrary to mine. I am simply taking issue with Mayor Migliorini expending public resources (e.g., time at City Council meetings, spending $49,700 on an advertising campaign, using City

6 Mark V. Guidetti, Director of Law, City of Macedonia Mayor s Expenditure of $49,700 in Public Funds In Support Of Issue 3 April 19, 2017 Page 2 of 4 employees to put up signs throughout town, posting on the City website) to advocate for the passage of Issue 3. Next, as you know or should know R.C (B) incorporates R.C , R.C , and R.C in support of the premise that money shall not be drawn from the treasury of city except in pursuance of appropriations made by the legislative authority. Here, my review of the minutes of City Council meetings for the past six months does not show Macedonia City Council passed any ordinance that would allow Mayor Migliorini to expend $49,700 from public funds in support of the passage of Issue 3. If I am mistaken, kindly bring to my attention the Council appropriation, which allocated $49,700 the from the Administrative/Finance budget for the passage of Issue 3. Next, the comments in your letter concerning the Farnhurst matter are not relevant to the issues raised in my letter concerning the Mayor s illegal expenditure of public funds. However, be assured that since you have once again, mischaracterized the events surrounding the Farnhurst litigation in your letter, I will address those falsehoods with a detailed response via a separate letter. From the Macedonia taxpayer perspective, the relevant point is that my Farnhurst clients agreed to settle the entire matter in December 2013, in consideration of the City of Macedonia paying them $60,000 for foregoing the building of a home on a lot the City had properly divided, and the release of a building permit for the construction of a single family home on the remaining lot. Joseph Diemert and Joseph Migliorini declined to settle the matter at that time with minimal cost to Macedonia taxpayers. Instead, they decided to pursue a strategy that caused the expenditure of approximately $300,000 of public funds in defending a private property dispute for Mr. Migliorini. This strategy resulted in a final settlement that in my opinion, still exposes the City to liability, did not resolve critical issues, and did not result in the recovery of any of the legal costs engendered.

7 Mark V. Guidetti, Director of Law, City of Macedonia Mayor s Expenditure of $49,700 in Public Funds In Support Of Issue 3 April 19, 2017 Page 3 of 4 In closing, you are entitled to characterize the Farnhurst, LLC lawsuit as a baseless claim. However, that right does not detract from your professional responsibilities owed to the City of Macedonia and its residents. Simply put, in my opinion, your duty is to gather and forward information regarding the Mayor s expenditure to the State Auditor and Treasurer. Regardless, kindly please gather the materials requested in the attached public records request so that if you decline to take the appropriate measures, I can do so on behalf of our Macedonia taxpayers. I remain, Very truly yours, /s/ Jorge Luis Pla Jorge Luis Pla Resident, City of Macedonia cc: Mayor Joseph Migliorini (via ) All Members of City Council

8 Mark V. Guidetti, Director of Law, City of Macedonia Mayor s Expenditure of $49,700 in Public Funds In Support Of Issue 3 April 19, 2017 Page 4 of 4 PUBLIC RECORDS REQUEST 1. A copy of meeting minutes of City Council or City Council s authorized agent(s) regarding expending public funds for Issue 3; and 2. A copy of the appropriation bill passed by City Council that authorized Mayor Migliorini to expend $49,700 in public funds for Issue 3; and 3. A copy of the purchase order(s) issued by the City of Macedonia to an individual, vendor, contractor, and/or company performing work or preparing materials for Issue 3; and 4. A copy of receipts the City of Macedonia received from an individual, vendor, contractor, and/or company that performed work or prepared materials for Issue 3; and 5. A copy of the contract(s) entered into by and between the City of Macedonia and an individual, vendor, contractor, and/or company regarding performing work or preparing materials for Issue 3; and 6. A copy of all drafts negotiated by the City on behalf of an individual, vendor, contractor, and/or company who performed work for the City of Macedonia on Issue 3; and 7. A list of all City employees and the amount of time they spent putting up signs around the City for Issue 3; and 8. An example of each product produced by an individual, vendor, contractor, and/or company for Issue 3.