JOANN MONDSINI VS. LOCAL FINANCE BOARD (NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRS) (CONSOLIDATED)

CourtNew Jersey Superior Court Appellate Division
DecidedMarch 5, 2019
DocketA-4482-16T4/A-4504-16T4
StatusPublished

This text of JOANN MONDSINI VS. LOCAL FINANCE BOARD (NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRS) (CONSOLIDATED) (JOANN MONDSINI VS. LOCAL FINANCE BOARD (NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRS) (CONSOLIDATED)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JOANN MONDSINI VS. LOCAL FINANCE BOARD (NEW JERSEY DEPARTMENT OF COMMUNITY AFFAIRS) (CONSOLIDATED), (N.J. Ct. App. 2019).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NOS. A-4482-16T4 A-4504-16T4

JOANN MONDSINI,

Petitioner-Appellant, APPROVED FOR PUBLICATION

March 5, 2019 v. APPELLATE DIVISION LOCAL FINANCE BOARD,

Respondent-Respondent. ____________________________

ROCKAWAY VALLEY REGIONAL SEWERAGE AUTHORITY,

Intervenor-Appellant. _____________________________

Argued December 17, 2018 – Decided March 5, 2019

Before Judges Messano, Gooden Brown and Rose.

On appeal from the New Jersey Department of Community Affairs, Local Finance Board, Complaint #13-038.

Richard A. Gantner argued the cause for appellant (Cleary Giacobbe Alfieri Jacobs, LLC, attorneys; Richard A. Gantner, on the briefs).

Stephen E. Trimboli argued the cause for intervenor- appellant (Trimboli & Prusinowski, LLC, attorneys; Stephen E. Trimboli, of counsel and on the briefs; Lauren W. Kavanagh, on the briefs).

Dominic L. Giova, Deputy Attorney General, argued the cause for respondent (Gurbir S. Grewal, Attorney General, attorney; Melissa Dutton Schaffer, Assistant Attorney General, of counsel; Melanie R. Walter, Deputy Attorney General, on the brief).

The opinion of the court was delivered by

MESSANO, P.J.A.D.

JoAnn Mondsini became the Executive Director of the Rockaway Valley

Regional Sewerage Authority (the Authority) in September 2012. Within

weeks, Mondsini faced a natural disaster of epic proportions, Super Storm

Sandy, which struck New Jersey on October 29, causing catastrophic damage

to homes, businesses and the State's infrastructure. The Authority lost

electrical power during the storm and maintained operations by using diesel

generators. If the generators failed, millions of gallons of untreated sewage

would discharge into the Rockaway River. The situation grew critical as the

Authority anticipated it would run out of diesel fuel by November 2.

Certain Authority employees were essential to keep the generators

operating. Because of a statewide gasoline shortage, these employees were

unable to fuel their personal vehicles to drive to and from work. Mondsini

authorized several employees to fuel their personal vehicles from an Authority

gasoline pump. She contacted the Regional Operations Intelligence Center, a

A-4482-16T4 2 statewide emergency management consortium, and advised of the critical

situation the Authority faced.

Bruce MacNeal was a member of the Authority's Board of

Commissioners and served as board secretary. As such, he was an employee

of the Authority and was authorized to sign the Authority's checks. On

November 2, MacNeal, who often came to the Authority to sign checks and

otherwise keep abreast of its activities, arrived and offered his assistance to

Mondsini. She had MacNeal sign two checks in anticipation of a diesel oil

delivery later that day. She also asked if he could "commandeer a gas station "

in Boonton, where MacNeal lived, to supply gas to the Authority's essential

personnel, and obtain food from restaurants that might be open to feed

Authority personnel on site.

While discussing the gasoline shortage, MacNeal said he needed to find

gasoline himself. Mondsini authorized MacNeal to fuel his personal vehicle

from the Authority's pump. Unbeknownst to Mondsini, MacNeal fueled two

personal vehicles with the Authority's gasoline. Mondsini advised the Board

of her actions regarding the crisis at its next meeting on Thursday, November

8.

An unknown informant complained to law enforcement authorities about

Authority employees using agency gasoline for personal use during the storm.

A-4482-16T4 3 The report was referred to the Local Finance Board (LFB). After

investigation, the LFB found Mondsini violated N.J.S.A. 40A:9-22.5(c)

(subsection (c)), a provision of the Local Government Ethics Law (LGEL),

N.J.S.A. 40A:9-22.1 to -22.25, which provides: "No local government officer

or employee shall use or attempt to use his official position to secure

unwarranted privileges or advantages for himself or others." The LFB

assessed a $100 fine against Mondsini, which it simultaneously waived. 1

Mondsini appealed, and the matter was transferred to the Office of

Administrative Law as a contested case. The Authority intervened in support

of Mondsini. After denying the LFB's motion for summary decision, the

Administrative Law Judge (ALJ) conducted a hearing and rendered an initial

decision.

Among other things, the ALJ found Mondsini to be a credible witness

and concluded she had not violated the LGEL. 2 He reasoned that a violation of

subsection (c) "requires a showing of intent." The ALJ also rejected the LFB's

contention that Mondsini secured an "unwarranted" privilege for MacNeal

because he was not an "essential employee" and obtained gasoline that was

unavailable to the public. Finding Mondsini's "sole intent was to keep the

1 The LFB also filed a violation against MacNeal and fined him $200. 2 Our summary of the facts is based on the ALJ's findings of fact.

A-4482-16T4 4 plant up and running" during the crisis, the ALJ concluded she "acted

prudently. To permit the LFB to use hindsight to say this was a violation of

the [LGEL] would have local government officials afraid to perform their

jobs."

In its final agency decision, the LFB accepted the ALJ's findings of fact,

with only one modification, i.e., the ALJ's assessment that the testimony of the

LFB's investigator was less than credible. The LFB, however, rejected the

ALJ's legal conclusions, asserting subsection (c) does not "require[] a showing

of intent." In addition, the LFB rejected the ALJ's suggestion that the LGEL

includes a "crisis exception." The LFB reinstated the violation and penalty,

but once again waived its enforcement.

We consolidated the appeals filed by Mondsini (A-4482-16), and the

Authority, which intervened before the LFB (A-4504-16), to issue a single

opinion. Mondsini argues subsection (c) requires proof of "specific intent" to

violate its provisions, and she never acted to "secure unwarranted privileges or

advantages" for MacNeal. The Authority reiterates these arguments and

further contends that the LFB erred by concluding MacNeal was not an

essential employee of the Authority, duly authorized under the Sewerage

Authorities Law, N.J.S.A. 40:14A-1 to -45, to perform certain functions. It

A-4482-16T4 5 also argues the LFB lacked jurisdiction in this matter pursuant to N.J.S.A.

40:14A-35.

I.

We begin by noting "[j]udicial review of agency determinations is

limited." Allstars Auto Grp., Inc. v. N.J. Motor Vehicle Comm'n, 234 N.J.

150, 157 (2018) (citing Russo v. Bd. of Trs., Police and Firemen's Ret. Sys.,

206 N.J. 14, 27 (2011)). "An administrative agency's final quasi-judicial

decision will be sustained unless there is a clear showing that it is arbitrary,

capricious, or unreasonable, or that it lacks fair support in the record." In re

Herrmann, 192 N.J. 19, 27-28 (2007) (citing Campbell v. Dep't of Civil Serv.,

39 N.J. 556, 562 (1963)). "A reviewing court 'must be mindful of, and

deferential to, the agency's expertise and superior knowledge of a particular

field.'" Allstars Auto Grp., 234 N.J. at 158 (quoting Circus Liquors, Inc. v.

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