Montclair, NJ – It looks like Montclair has a very big problem at the top.
Chief Financial Officer Padmaja Rao has filed a complaint against the Township of Montclair and Township Manager Timothy Stafford, alleging that the defendants took retaliatory actions against her for engaging in whistle-blowing activity. Rao alleges that the retaliatory actions and harassment included reducing her work responsibilities, and harassing her through aggressive, threatening conduct to prevent her from carrying out her statutory job duties.
The complaint details several instances where Rao says she experienced retaliation and harassment after raising concerns about practices the township engaged in that she deemed as either financially improper or questionable. These include paying its council members’ health insurance although the councilors did not work the documented 35 hours a week to render them eligible under The New Jersey State Health Benefits Program (SHBP). According to the complaint, several Montclair elected officials continue to receive health benefits from the SHBP, or opt-out waiver payments, without appearing to meet the legal eligibility requirements for those benefits.
Rao also alleges Montclair engaged the O’Toole Scrivo law firm, for the purpose of conducting an investigation into a claim of racial discrimination in the preparation and administration of the 2021 Montclair Fire Department promotional exam, but did not do so through a fair and open procurement process, as generally required under New Jersey Local Public Contracts Law. According to the complaint, the Township did not pass a resolution for the contract, did not request or obtain a certification of funds for the contract from the CFO, and the contract did not include a maximum dollar amount.
Rao claims she experienced harassment and retaliation after attempts to follow up on other financial matters, including a 2018 investigation conducted by the Montclair Fire Department of 10 firefighters submitting fraudulent timecards. Rao recalls stating her purpose for requesting a meeting to get Stafford’s perspective on what happened, how he came to know about it and what was done about it.
The complaint alleges that “Stafford began screaming at Rao stating he had done all that was required of him by sending a report of the matter to the Essex County Prosecutors Office. Rao asked him to stop screaming and tried to explain her concerns about the lack of controls surrounding the Fire Department’s time and attendance system, which appeared to have resulted in an employee being paid for time he did not work and receiving pension benefits without properly accruing sufficient time to retire with such benefits. Stafford continued to scream and made derogatory comments about how the whole meeting was disgusting and how Rao was deposing him.”
Rao’s complaint alleges an abusive pattern of conduct by Stafford to Rao, with verbal abuse and bullying, as well as to other female department heads.
The complaint states that Rao became fearful of Stafford’s alleged “progressively hostile behavior.” The complaint also states that Rao has “suffered and continues to suffer from severe emotional distress, humiliation, embarrassment, anguish, physical and bodily injuries, personal hardship, career and social disruption, psychological and emotional harm, economic losses and other damages.”
“There is a lot that I’m learning for the first time in reading Ms. Rao’s complaint as the timeline spans two administrations,” said Councilor at Large Peter Yacobellis. “But at first read, I’ll say this — I believe her and I’m angry. As I said in my town hall last week, at a very high level there is a problem in Montclair. I know that most of my colleagues feel this way. But unfortunately the Mayor hasn’t been willing to make a change in leadership and equally unfortunate — not enough of my colleagues have been willing to go against the mayor. Some of us have gone as far as to line up qualified interim managers to step in immediately, if we did make a change — wanting to ensure continuity of operations for the Township.”
Yacobellis says that when he learned that Ms. Rao was asked to no longer participate in Township Finance Committee meetings a few weeks ago, it felt like retaliation for some of the things she rightfully spoke up about, including the recent disregard for her professional analysis in the Glen Ridge fire contract process.
Yacobellis states that on several occasions, including after the most recent Council Meeting, the Mayor has approached me and my colleagues to discuss building a file of examples that could be used to pursue disciplinary action against Ms. Rao.
“I will also say that this isn’t the first time I’ve heard from a former or current female employee, directly or indirectly, about the Town Hall workplace culture for women. The difference here and why I can say something now, is because one of those women, Ms. Rao, was willing to talk about it publicly (in her suit). I have heard about the kinds of outbursts Ms. Rao describes by Mr. Stafford, from other female employees too,” says Yacobellis. “One former female employee last year described the workplace environment at Town Hall to me as ‘Trumpian.’ I want to encourage all Montclair Township employees to make sure they know their rights and to speak up. They should talk to Human Resources or the Law Department if they don’t. I also want to encourage any former employees to come forward, too.”
“Setting aside my own fears of being retaliated against, today I’m calling on my colleagues to join me in taking the preliminary steps to remove Mr. Stafford as Township Manager,” adds Yacobellis.”While I believe in innocence until proven guilty, these complaints line up with some of my own experiences and the experiences shared by others including ones mentioned above. They are just more fodder to a narrative that is already well baked in my mind and I know in the minds of several of my colleagues — that Mr. Stafford isn’t the right fit for Montclair.”
Regarding the issue of health insurance provided to Montclair councilors, Yacobellis relays his own experience:
“This summer I learned from our law department that the state health insurance that the Township offered me and my colleagues likely shouldn’t have been offered. This was in contrast with the previous Township attorney’s guidance. To help inform how to move forward, several of us sought further guidance from professional external labor counsel. On September 28th, I received guidance back from said labor counsel that in their view, Council Members shouldn’t be receiving healthcare through the public state plan. In that guidance, counsel also advised that we should come off of that plan “as soon as practicable”. As I am under regular weekly treatment for health issues and my primary employment is Township Council, I’m looking for an affordable way to continue my care, with insurance.”
“It is highly inappropriate for any member of the township council to comment on township personnel matters,” said Mayor Sean Spiller. “Therefore, without addressing specifics, as a matter of values and law, any allegation of workplace harassment must be treated seriously, as it has no place in our community. Any reporting of such, whether direct or indirect, would trigger a full investigation, which I absolutely support.”
“While I am unable to comment on active litigation, I will say that I am troubled and saddened by the allegations of harassment by a leader among township staff,” said Councilor Lori Price Abrams. “Such claims deserve a proper adjudication, and I fully support the complaints to be taken up through appropriate channels.”
First Ward Councilor and Deputy Mayor Bill Hurlock had this to say about the complaint.
“Obviously, I take these allegations very seriously. Because there is active litigation, it would be inappropriate for me as deputy mayor, a councilor and an attorney to comment any further.”
Hurlock added that since he first joined the council he had been informed he was entitled to health benefits.
“Recently, I was informed otherwise and as a result, as of September 30, I no longer subscribe to township health benefit plan.”
Councilor at Large Bob Russo, who engaged in a angry exchange with the town manager at this meeting, had this to say about Stafford.
“I see Peter is now calling for the Manager’s removal. Where were all the comments that night of the Glen Ridge Fire contract vote, when I said the situation was ‘out of control’ and we needed a change, particularly in the form of government! The manager clashed with me as well at the last public meeting,” said Russo. “I’ve been waiting for an apology myself before I participate in meetings with so much conflict with management and among staff. There is need for more respect for and among our elected officials.”
“Certainly, as a woman, and as a councilwoman, I am very troubled, personally and professionally, to have read the lawsuit allegations that have been filed. Having just received it last evening, I have read it several times and am still processing it. But at this time, I would also like to extend my apologies to the residents of Montclair, this is an awful situation for us all,” said Councilor Robin Schlager. “Since this is an open active lawsuit regarding personnel matters, I cannot speak further other than to say that any allegations of this magnitude, must be fully investigated and that I will participate and comply to the fullest extent, when appropriate. We have an obligation to the residents and families in our township to make sure the town runs as best as it can on a daily basis. It is my hope that we will be able to resolve this lawsuit in a timely matter, as we still have a lot of work to do.”
“There is so much to this unfortunate situation,” said Councilor David Cummings. “I will share my thoughts at the appropriate time. It is troubling on so many surfaces that I’m embarrassed how this has all transpired.”
Recall vote anyone? I’m quite serious.
For this women, setting aside her oath, her integrity and her honesty is not an option.
Is it an option for Montclair residents?
Reading the text of the actual lawsuit left me speechless. Everyone needs to read it.
As I am still processing it, I have little to say except express my concern for Ms. Rao. I do not know her personally, but it is clear from interacting with her in her job, and watching her work, she is highly professional and very committed.
I am sorry she has been caught in this mix of misogyny. Removing the Chief Financial Officer of your town from the Finance Committee because “she is difficult to work with” is so blatant and damaging.
Filing this lawsuit was very brave and obviously not something she did lightly. We need more than an investigation. We need real change.
Watching this all shake out is quite concerning. This is a orchestrated, one sided attack on our local government offices. First off, no one should feel threatened ever, especially in workplace environment. I have complete faith in the courts to fully investigate these allegations, although it sounds like you all have already decided the outcome.
After watching the last council meeting and seeing Councilman Russo speaking about Italian politics, Mussolini and prescription drug prices, completely off topic of the agenda, it shows some of our elected officials are out of touch with day to day operations. Councilman Yacobellis comparing the GR Fire contract to a dead beat child who doesn’t contribute to the household? Who says this, that mindset is alarming to what his true thoughts are or a personal agenda of structurally changing our town to a Strong MAYOR something he often brings up at his town meetings. As well as comparing everything to America Express.
At least this is in the public forum and not a Secret Facebook page.
I strongly recommend we get all the information since we were not witness to any of these interactions….
Recall the Mayor. Now.
A nice cover deflection effort Jenn M. Attack Peter Yacobellis and process of how the information was revealed, rather than deal with the underlying issues. Sorry. No sale. Those of us who have worked closely with the government, either as volunteer board members and/or political insiders have known all about the deflections, head in the sand, cover ups for issues and discombobulation that’s going on under this Spiller Council. Now it’s been outed publicly.
Letting Tim Stafford run wild with no policy direction — both managerially and behaviorally as well, even with hostility-misogyny as is alleged — is not surprising at all. This administration and some on the Council also continue to act in a dictatorial manner when they don’t get their way. They do not really believe in open debate and deliberation as the best path to solutions.
Now, the chickens have come home to roost. So bye bye…..Manager Stafford and Town Attorney Paul Burr. Politically finished here and likely to bow out from the next Council race should be Mayor Spiller, Bill Hurlock, David Cummings, Lori Price Abrams and Robin Schlager. Unless they don’t get it.
@ Jenn M
Yes we were.
I can thread the needle re: Councillor Russo’s comments about Mussolini: Fascism is reasserting all over the world, and Tim Stafford worked at Trump org. I applaud our community for taking steps to address egregious mismanagement of our township. I hope every woman in the community reads the lawsuit.
Martin, Peter Yacobellis needs to go unless we are using a different standard.
I strongly suggest you reread all of Peter Yacobellis’ comments as though they were attributed to Mayor Spiller – and apply a similar bias.
You can’t pick and chose a time that is convenient to pursue hostile workplace claims. At least, that was true in the State of New York.
I loved Councilor Hurlock’s quote that he takes charges leveled against him, as a member of the governing body, seriously. As a Councilor and as an attorney…and ensuring everybody in these difficult times knows he holds the ceremonial title of Deputy Mayor. Or does the title mean he shares more responsibility than a regular Councilor?
Why would Yacobellis let this happen for so long when he knew this conduct was ongoing for years as he commented.
This is not about the actions of one. However if you all feel Yacobellis is the only hope for Montclair we are in for uncharted territory. Will all the benefits be paid back by all those who received them as well as reimbursement for all services they were granted? This will never end and I’m starting to believe that’s what you all are hoping for.
Martin observation shows if you don’t get what you want you speak out uncontrollably during a council meetings as if only your opinion matters. And since you are a political insider please share your personal experience with us all.
And let’s call it what it is. As if nothing happened like this when Russo was in charge. I find it quite amusing that you only support the ones who fit your agenda and personal agendas.
I’m sure we all have some skeletons in our closets.
Jenn M. How do you know who I actually support? My real constants are key land use and preservation issues with good government process that encourages open debate and deliberation. So that all the facts and information come out and the best solutions arise. That’s the exact opposite of an authoritarian, illogical and cover-it-up mindset many on the Council today advocate. When things don’t hold up to their their grab-it-out-of-your-ass to cover-up non-actions, or diffuse opposing data and conflicting fact narratives.
Bob Russo will have to defend his record like anyone else who decides to run for office in 2024.
Jenn M, you raise a good question about Yacobellis. But I think it’s important to remember that when there are accusations of harassment, third parties like Yacobellis can’t really do anything unless the victims are willing to go public. It seems like what has happened now is one of the women Yacobellis references in his innuendo has come forward and that allowed him to speak up. But I don’t know for sure. I think we should be careful to jump to conclusions.
I am withholding judgment on Peter for the moment (not a big fan of political messiahs) but quite frankly everyone else has to go.
Jenn M great points! This isn’t the first time Yacobellis has shown the entire town what an opportunist he is. Any chance he gets the camera he jumps to look like the good guy! Ha!
Let’s not forget he worked for Cuomo and adored him, until OOPS – not popular any more.
I’ve actually never seen a bigger joke and these people are eating it up.
I seem to have put this observation/comment in the wrong thread
I have no way of knowing whether the conduct directed towards her that the plaintiff describes in her unsworn complaint is accurate and no way of knowing whether she was the victim of discrimination because of her sex or complaints she made about wrongdoing she witnessed. Figuring out what is true and what is not is what the courts are for. But the complaint makes very specific accusations about what appear to be violations of laws concerning health insurance for elected officials and a covering up of misdeeds in the Fire Department. These accusations are particularly troublesome coming on the heels of the inexplicable Glen Ridge fire contract bid that ended with the weaponization of the fire department against our residents and then a vote to approve an indefensible contract based on questionable legal advice. The statute regarding who is qualified for health insurance or cash payments in lieu of insurance doesn’t seem that complicated. We do not have full time councilors under our form of government and most of our council members and certainly the Mayor seem to have other employment. They do need to explain themselves. If they took $5000 in cash or insurance benefits in violation of the law that would appear to disqualify them for office. Residents are entitled to an explanation from each of the councilors, not a discussion in executive session about a personnel matter.
pardonmyfrench – this seems personal and a little bit vitriolic — almost like you’re his political opponent or working for one of them. I don’t see how you can call him out and not Spiller or Russo for being opportunists at every turn. It seems to me that in addition to maybe some grandstanding here, Yacobellis is also taking on a risk of being sued by the Manager. I’ll be watching this guy, but my first sense was courage, not opportunism.
Why are we talking about Peter Yacobellis? Focus, people!
Mussolini, Fascism, Trump???? Really? That’s who and what’s to blame? There isn’t enough popcorn for the clown show this town is becoming. Can’t wait to see what happens next. Let’s see how well the town does with 187 million borrowed bucks to spend.
Jean O I just call them as I see them. If he KNEW this was happening as he said in one of the articles, why does he say it after this comes out? Very similar to what happened with Cuomo. I like to observe patterns in peoples behavior.
Also – this has been going on a long time I would presume about the benefits. What took the CFO 7 years?
Some of us look at the whole picture.
Flipside- not too many people are talking about that 187 million. I’ve watched how the district spends money- and has anyone seen the interest rates? People will be up in arms in a few years when there taxes are $5000 more than they are now.
“ What took the CFO 7 years?”
Wow. This statement is a real keeper.
If this nonsense about the council derails the referendum and causes us to lose $58 million in state aid, it will be a damn shame. The BOE and township are completely different entities and our buildings need the $. Let’s be smart and not short-sighted.
Wow. Welcome to Montclair. Was “Cheaper by the Dozen” really set here? True, the 21st century is more complex, but how foolish of me to read about sexual harassment, tainted contracts, government malfeasance, municipal bond larceny, cover-ups, shouting in the township chambers, financial ineptitude, devious accounting practices, and so much more and somehow not recognize the veiled hand of Donald Trump at work.
Does this blog have a sarcasm font? Apparently not.
And here we go! Right on schedule. The shift to circling the wagons around ‘What is this going to cost and can we contain the collateral damage?’
OK, here are some tangential things that may happen as a result of this blow-up:
First, Lackawanna Plaza redevelopment is now on the shelf. Second, the Glen Ridge contract – along with our other item-local agreements – will now receive an ‘active’ review from a newly energized State of NJ DCA. Third, the MFD shouldn’t hold their breath on getting a healthy budget increase next Spring and we’ll ramp up our legal expense budget by at least 6 figures. Fourth, many of our discretionary State & Local grant requests will reviewed under this cloud. Fifth, the County legal departments may also decide to revisit the need to investigate in a more serious way.
Yeah, I expect we will lose focus. There are two issues here. First, the lawsuit and all that it entails. Second, is the concurrent performance of this Council in regards to their part in the charges alleged and the disturbing pattern of governance overall.
I believe Montclair residents can walk and chew gum and should address both matters concurrently.
RE: What took the CFO 7 years?
Please stop with the victim blaming and read the lawsuit. The retaliation began LESS THAN A MONTH AGO on 9/26/2022 when Rao was removed from the finance committee after approximately two years of verbal abuse/bully behaviors in response to Rao performing her professional duties (compliance/due diligence).
flipside,
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Tidegirl: There’s a lot of stuff in the case. Something that caught my eye.
Rao was removed from Finance committee on September 26th.
The ‘CFO Report’ for the Glen Ridge Fire Department (which was basically a spreadsheet with a few different numbers divided by a few different percentages, then multiplied at different percentages each year) entered the public discourse the week before. If Peter asked for it, and he didn’t have the authority to instruct the CFO to do so (I don’t know what individuals on the council versus the council by vote), that could piss off both the Finance Committee, as well as the rest of the council, and would probably warrant a reprimand.
In 2022, I doubt someone would actually relieve someone of their duties just for “found her difficult to work with.” (that doesn’t even make sense grammatically if being given directly to Rao). But hey, maybe I’m more woke than most.
Maybe I’m seeing things that aren’t there, but at least some part of the case could be without merit (although many other things don’t look above board).
I am still intrigued at the timing of this plus Peter saying he wants to go to more compensation for the Council, already lining up replacement managers, etc.
Flipside, my contribution above was in fact a stab at sarcasm; I have the sinking feeling that the majority of readers actually do see the hand of Trump. Just the other day at Kings, a customer grumbled that Trump was the one who cancelled the plastic bags. Can you believe it?
And it seems to me that a class-action is another potential exposure.
My comment to an InsiderNJ story (https://www.insidernj.com/protecting-our-democracy-announces-formation/) from yesterday:
This story is disturbing, if not nauseating.
1. The union dues of hardworking, underpaid teachers are underwriting Spiller’s gubernatorial ambitions? How does the rank and file put up with this??
2. Does anyone understand what a dysfunctional, misogynistic hellhole Montclair has become under Spiller’s watch? (https://www.insidernj.com/press-release/montclair-council-member-peter-yacobellis-calls-for-the-removal-of-township-manager-timothy-stafford/) Does “our Democracy” include women? “I’ll do for New Jersey what I’ve done for Montclair?” The best thing we can do to “Protect Our Democracy” is to ensure that Spiller doesn’t’ get his hands on it. God save us if he does!
Not to worry, pat.gottlieb. I just received my copy of Montclair Local and noticed two full-color ads paid for by the “Election Fund of Sean M. Spiller,” one congratulating Montclair citizens for heeding his warnings to conserve water, or else, and a half-pager declaring, “Our democracy and our personal freedoms are on the ballot this year.” Oh boy. When the mayor of a small town with a corrupt government reminds us that things Could Be Worse, my first instinct is to write a check ASAP to the “Election Fund of Sean M. Spiller,” thereby doing my part for our democracy and your personal freedoms. You’re welcome. MMoose.
Frank- not only what took her 7 years? But why was PY silent if he claims to have known that this was happening to others??
I have got questions. As will the investigators.
I don’t typically read the comments and don’t have a lot of tolerance for fake names. But I’m also pretty available and responsive. So if folks have questions, just ask me: pyacobellis@montclairnjusa.org
“pardonmyfrench” – I didn’t say anything because I would never reveal the name of a woman making a complaint, without her permission. Silence publicly doesn’t mean I wasn’t aiding in other ways.
pardonmyfrench,
My response to your ‘Why 7 yrs?’ comments was 100% sarcasm.
.
You are not responsive to those you don’t agree with Mr Yacobellis. You proved that long ago. People are figuring it out though.
Truth always comes out. Here’s a question though.
How long were council folks getting the benefits/ $5000 check for not taking the benefits? When did it become illegal and will ya’ll be paying it back? Can we see the time cards?