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(This is an expanded version of a previously posted story.)

A second special Atherton City Council meeting to discuss “alleged improper official conduct and allegations that council member (Charles) Marsala is not a resident of the town” is set for Wednesday, April 7, at 6 p.m. in the council chambers, 94 Ashfield Road in Atherton.

A meeting on the topic was convened Friday afternoon, March 26, but was canceled for lack of a quorum. Only Mayor Kathy McKeithen and Councilman Jim Dobbie showed up, and those two council members held an informal meeting to hear from residents who showed up.

Mr. Marsala has been harshly criticized for asking resident Jon Buckheit, who is suing the town, for a $500,000 loan in August of last year. He also has been accused of no longer living in Atherton, although council members are legally required to live in the towns they serve.

Mr. Marsala is renting out his Emilie Avenue home to a Stanford Hospital patient and her family, and said the family needs to remain in the house at least through part of April. He said he has been living with friends in town.

Mr. Marsala said he didn’t know Mr. Buckheit was planning to sue the town when he asked him to help him secure a loan, although Mr. Buckheit had filed a legal claim against the town on April 9 2009. Filing a claim against a public agency is the legally required first step before filing a lawsuit.

In an interview with The Almanac, Mr. Marsala said the claim didn’t come before the council until mid-July, and the council voted unanimously to reject it. Because it was on the consent calendar, there was no discussion of it, and “I considered it closed,” he said.

According to City Council agendas from 2009, the council met in closed sessions to discuss legal actions filed by Mr. Buckheit against the town on April 15, May 20, June 17, and July 15.

Mr. Buckheit filed a lawsuit against the town in federal court on Oct. 20, alleging police misconduct during a domestic dispute at his house in 2008 that resulted in his arrest. He was never charged with a crime, and recently won a court declaration of factual innocence in the matter.

Town attorney Wynne Furth, in an analysis of questions surrounding Mr. Marsala’s loan request and residency prepared for the April 7 special meeting, said that Mr. Marsala asked Mr. Buckheit for financial assistance in August 2009. “The recession had led banks to change their lending practices and Mr. Marsala’s usual sources of commercial lending were unavailable,” she wrote. “The proposed loan was a four-year loan secured by Mr. Marsala’s house at an interest rate of 8 percent.”

In a Sept. 23 e-mail, “Mr. Buckheit informed Mr. Marsala that he could not assist him with a loan or arranging a loan,” Ms. Furth wrote.

In her analysis, Ms. Furth detailed two laws that govern conflict of interest on the part of public officials: the Political Reform Act and Government Code Section 1090. The laws deal primarily with whether the official has a financial interest.

“Based on the information that Council Member Marsala has provided, he did not violate any conflict of interest rules because he had no financial interest in any of the decisions in which he participated,” she wrote.

Mr. Marsala has stated “that he will recuse himself from future discussions concerning Mr. Buckheit’s lawsuits,” she wrote. “We believe this is a sound position. Because council members are elected to make decisions, recusal is not something to be done lightly. However, the principle of avoiding both actual and apparent conflicts of interest takes precedence.”

The analysis is an expanded version of a summary Ms. Furth presented at the special March 26 meeting that was canceled for lack of a quorum. It is a summary of a thicker document provided to council members, marked “confidential.”

Mayor Kathy McKeithen said she’d like to see the more detailed review made available to the public. “It’s very important to the town,” she said. “I think the public has a right to know what is in that document. It was prepared at taxpayer expense, and I don’t see any reason why it should remain confidential.”

Ms. McKeithen has been a regular critic of Mr. Marsala for years, and led the charge to schedule the special meetings to meet what she characterized as the public’s demand for the council to address the questions surrounding Mr. Marsala.

Another critic, former Atherton finance director John Johns, said he intends to call for Mr. Marsala’s resignation at the April 7 meeting.

Mr. Johns, fired from his job in October 2007, sued the town for wrongful termination and is on the verge of signing a settlement agreement that would award him $225,000 and other concessions.

During the town’s investigation of Mr. Johns, Councilman Marsala made a number of public statements alleging wrongdoing on the part of Mr. Johns.

Go to Analysis to read the staff report.

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27 Comments

  1. Here we go again! Lots of claims and venom to appear below, I suspect, but little in the way of facts.

    Shall we withhold the invective until after the hearing?

  2. One undisputed fact is that Council Member Marsala asked a private citizen, John Buckheit, for a $500,000 loan. Mr. Buckheit is not a bank and doesn’t lend money for a living.

    I fail to understand why a citizen wouldn’t be offended by this.

  3. “Mr. Buckheit is not a bank and doesn’t lend money for a living. I fail to understand why a citizen wouldn’t be offended by this.”

    Because every citizen in local hamlets such as Atherton, Hillsborough and Woodside has to use a bank for a loan?

    And they NEVER lend to anyone because they are not a licensed institution?

  4. All of you MUST be kidding.
    The entire population of the gilded villages which the ALMANAC serves is filled with people who do business the old fashioned BOSS TWEED way…
    Just how dumb do you think readers are?
    I have two properties in the County and have been told where to find money if I wanted to avoid banks..Give me a break.
    This ain’t Utopia and angels certainly do fear to tread in this little plot of worldly corruption.

  5. R. GORDON

    You brief comment is spot on. The only difference between between Atherton and Marsala in 2010 and Boss Tweed and New York in the mid 1800’s is that Marsala is a republican whereas New York was run by a democrtic machine.

    One must wonder how much of the $1.6 million in Road Impact Fees to be refunded to the developer friends of Marsala will find is way into Marsala’s own pockets.

    Perhaps the Council’s failure to act with haste in refunding the road impact fees is what contributed to Marsala’s cash flow problems.

  6. “One must wonder how much of the $1.6 million in Road Impact Fees to be refunded to the developer friends of Marsala will find is way into Marsala’s own pockets.”

    Wow.

    Keep throwing “mud” on the wall and see what sticks?

    How about a fact or two instead of “one wonders” (code for “what can I say to smear him”.)

    Seriously: Let’s present a case if any, or all of them are crooked, but just anonymous internet smearing?

    That’s the best ya got?

  7. Willy

    You are upset over the allegations raised against Marsala. These are serious allegations. As such if you are a friend or an ally of Marsala you have good reason to be upset.

    The question posed by the poster going by music to my ears is, in my view, a legitimate one. I do not see this post as a smear as you claim. I do not see this as mudslinging. No accusation has been made against Marsala.

    Marsala has championed the repeal of the road impact fee. Marsala has experienced financial difficulty as of late. Marsala has exercised poor judgment and a lack of restraint in seeking a loan from one who was involved in litigation with the Town at the time of his request (his mandamus) and another more serious lawsuit (on civil rights violations).

    Marsala is also a public figure. He is held to a higher standard of conduct in view of the power that has been vested in him. As such he is to a higher level of scrutiny.

  8. “One must wonder how much of the $1.6 million in Road Impact Fees to be refunded to the developer friends of Marsala will find is way into Marsala’s own pockets.”

    And the best you have to defend that mud is the unrelated loan request?

    Because the following: “Marsala has championed the repeal of the road impact fee. Marsala has experienced financial difficulty as of late…” is REALLY weak!

    The first part may be fact, the latter is your claim (seeking a loan is not always a sign of distress, otherwise who would loan anything to anyone, if all in distress?) And even if true, how do those claims, tho music to you ears, substantiate that wild smear?

    Agree that elected officials and such should be held to a high standard. But to what standard should we hold anonymous internet smears, unsubstantiated by fact?

  9. Willy is angry. Willy seems to be blinded by his anger.

    The statement of Marsala being in financial distress came from Wynne Furth’s report.

    Marsala could not get a loan for his business because banks weren’t lending back in 2009. It is online, just go to http://www.ci.atherton.ca.us, look under council minutes/agendas. Go to the staff report link for April 7th.

  10. Angry? Hah, hardly. You’re just trying another spurious mud-flinging, and you seem to uses different names each time. Most curious.

    But thanks for being concerned about me. 😉

    So I will ask again, let’s see what smoke you will create this time to avoid answering.

    How is “financial distress” a fact that substantiates your claim of “Road Impact Fees to be refunded to the developer friends of Marsala will find is way into Marsala’s own pockets.”??

    Crooks can only be crooks if they’re in distress? All people in distress are crooks? Is that how it works in that fear-ridden mind of yours?

    Dang, you must suspect a lot of folks of wrong doing in this economy!!!

  11. Willy –

    You have a knack for conveniently changing the subject. No one said an individual can’t lend to another individual. That’s not the point at all (and I suspect you know that).

    The issue is that Marsala SOLICITED the loan from a private individual. That is a fact that is not even in dispute. In this case, a person in power (Marsala), who happens to be an elected official, hit up a private citizen for 500 large. This is a bit more than asking someone to meet you at Starbucks and allowing them to get the tab.

    If you are truly not offended by an elected official soliciting money from a private citizen in the midst of serious dispute with his governing body, then I’ll assume you wouldn’t be offended if a judge asks you for loan before he decides your case.

  12. Now you are back to the name “Pogo”?

    Since you are now back to the loan, I assume we are done with the SLANDER you had earlier about kickbacks from:
    “…in Road Impact Fees to be refunded to the developer friends of Marsala will find is way into Marsala’s own pockets.” ???

    You need to re-read the thread, I don’t think I addressed the loan issue until it was coupled in as some sort of “proof” about the kickback slander.

    But glad you concede the issue about flinging mud. 😉

    re: the loan? I don’t know. I personally don’t think it’s worth discussing until you posters get more facts. Then: Is it illegal? Does it violate Atherton’s established ethics policy? If so, arrest him. If not, since you detest him, run against him.

    Mr Marsala vs Mr Pogo “the Pogo, of many internet names”

    re: “If you are truly not offended by an elected official…” – well, yes, from what I read especially here on these threads, there is much offensive in their town hall. It doesn’t appear that Mr Marsala is alone, just that he has a special “fan club.”

  13. Oh, and the judge you mentioned? I’ll take the jury, thank you.

    I have greater faith in 12 folks in the jury box than, say, anonymous internet postings….

  14. I’ve only posted as POGO. Perhaps you are posting under other pseudonyms, I have no need to. My posts on this issue have been consistent from the day this story broke.

    I have no idea what you’re talking about regarding me conceding “flinging mud” (I’ve never commented on that subject). But once again, Willy, you change the subject – albeit sans deft.

    Solicitation of a bribe by a public official is actually against several laws including California Penal Code 518 and 519. Just look it up, Willy. You apparently have a computer. Does the name Duke Cunningham ring any bells for you?

    And I’m still waiting for your answer about a judge hitting you up for a loan before rendering his verdict on you. It’s a pretty much what happened to Mr. Buckheit (and Mr. Buckheit didn’t get to change the subject as you have).

  15. Insane! Marsala asked someone for a loan and now he is accused of stealing road impact fees from the Town? Wow. Next thing you’ll say he stole your car, slept with your wife, and kidnaped your baby. Crazy.

  16. Pogo:

    If it’s against the law why hasn’t someone arrested him from the town, the county or the state AG? A Dem AG should be pretty interested in a Republican case of alleged malfeasance.

    Although if memory serves, the Dukester was brought in by a US attorney.

    I thought My Buckheit was in front of a judge (and got his factual innocence,) wasn’t he? How has the town council replaced, or acted as judge?

    Again, frankly, I was only commenting on how the loan was used as “evidence” of the road impact slander. But keep coming back to this, since you refuse to read the thread as it relates to the (likely) slander about the road fee.

    I conflated (related?) you with the other three anonymous postings on the road impact fee because you followed in their tracks and along the same lines. If you didn’t post under other names, which obviously I have no way of knowing, mea culpa.

    But AGAIN, my issue with is with “…in Road Impact Fees to be refunded to the developer friends of Marsala will find is way into Marsala’s own pockets.” And that poster raised the issue of the loan.

  17. Two points:

    1) The only proven and relevant issue is that it is clearly improper for a person in elected office to be soliciting funds from any of his constituents. If he need funds and solicited from someone outside the town, no one would be raising these issues. The possibility of influence peddling is so obvious as to be absurd.

    2) People in denial use two primary techniques to maintain their rational denial systems. First, they attack the person who threatens their system of rational denial thought; Second, they change the subject.

    Sorry, too many years of dealing with narcissists, and my having one of those learning curve things.

    JAT

  18. JAT –

    You took the words right out of my mouth. This controversy has nothing to do with road impact fees, slander or any other issue, no matter how hard others may change the subject.

    It has everything to do with an elected official soliciting money – in this case A LOT of money – from someone with active and quite serious business with his town. I see it as nothing less than a blatant shakedown.

    If Athertonians wish to ignore it, they have the government they deserve.

    Willy – again, a not-so-subtle change of subject. I’m still waiting for your answer whether or not you’d be offended if a judge asked your for a loan before rendering his verdict for/against you. If you’d give this question as much thought as you have trying to avoid it, perhaps you’d understand how Mr. Buckheit felt when he was solicited.

    And, as for Mr. Marsala not being arrested, he hasn’t been arrested… YET. Just because Atherton’s town attorney (who works at the pleasure of the majority of the Town Counsel) doesn’t think there’s anything wrong (but conveniently ignores the “solicitation” issue in her decision), doesn’t mean that the San Mateo County District Attorney or criminal grand jury hasn’t noticed.

    Finally, I do not know Mr. Marsala or any of the other players in this local drama. I do know that I am troubled by an elected official soliciting money from a litigant with their town. I am, however, more troubled when others seem to think this is no big deal.

  19. Jon Buckheit made a point that seemed to go unnoticed during his presentation.

    It was inconceivable that Wynn Furth, who reports to the City Council could do a proper investigation of this conflict of interest charge leveled against Marsala.

    Another speaker also pointed out that Wynne Furth did not even do an investigation. By her own admission Wynne Furth did an analysis based upon stipulated facts. In other words she took what Marsala had to say at face value, without question.

    Wynne Furth did not examine whether any federal laws related to conflict of interest, such as racketeering or public corruption.

    Wynne Furth was understandably nervous, clutching her own breasts during her presentation and testily tossing aside during pointed questioning by McKeithen.

    Wynne Furth has good reason to be nervous she will be out on the street soon, having been tossed out of town in disgrace once her role in this conspiracy is unmasked.

  20. Geez guys, at least we agree now that the post with the slander from “member of the Jury” was bull.

    And you recognize that his using the loan request as “evidence” was spurious, or unrelated.

    The loan request: How was the meeting last night? Pitchforks and torches? Or reasoned questions and answers?

    I’ll await the Almanac report this afternoon, since I got my (sorry butt) dragged into this.

    😉

  21. In response to Willy’s post. I was at last night’s council meeting.

    Conflict of interest charges, including allegations that his vote on road impact fee refunds was purchased by special interests continue to hang over his head like the sword of Damacles.

  22. “Conflict of interest charges, including allegations that his vote on road impact fee refunds was purchased by special interests continue to hang over his head like the sword of Damacles.”

    You say.

    But who has the evidence, as opposed to anonymous internet posting?

    What has the town attorney said?

  23. Willy missed last night’s meeting.

    He seems to be out of touch.

    I tried to look him up on the phone book but couldn’t find his number.

    It would be nice if someone could give him a call to update him on Marsala’s connection with developers and the conflict of interest in the $1.6 million road impact fee refund.

  24. “…on Marsala’s connection with developers and the conflict of interest…”

    What connection?

    Please, please, please spit it out. You all have allegations, mention connections, implied kickbacks and more relating to the road impact fee, specifically above and from post:
    “music to my ears, a resident of another community, on Apr 7, 2010 at 8:07 am”

    And yet every time I ask, you lovely folks go back and rant about the loan request.

    And I’m the one that changes the subject? Eh, Pogo?

    So again, I will conclude with all the mudslinging about the road impact fee is just that; baseless, anonymous internet smearing.

    Unless you have something, which lord knows you haven’t shared thus far.

    “It would be nice if someone could give him a call …”

    “not in service” please feel free to enlighten me on your allegations of “connections” here on this forum. Or I shall conclude that it is YOU who is “not in service” to truth or our community.

  25. Willy, I was there. I saw the pitch forks… the same ones that have been brought to Atherton town meetings for years. They are mostly held by 40+ year residents who are proud to announce thier status. They feel entitled to be the authority on everything in town, and if you are under 70, hey, put a lid on it.

    What stuck me the most, is the mayor’s unveiled hatred of Marsala. In a flurry of accusations, she even stated that we can’t be sure Marsala is paying market rent for his new place, and that maybe his rental is a form of bribary. I guess if he is standing outside a building, how do we know he’s not planning on breaking in, or setting it on fire?

    The other issue that people are failing to focus on is the fact the police department is corrupt. Hello? At least one officer has admitted in court that a police report was falsified. Shouldn’t we all be nervous about calling the police now? Where is the town outrage? If we should be angry with the council, it should be over their 4-1 vote against the citizen’s police oversight comittee and their unwillingness to clean house at police headquarters.

  26. Geez, “answering machine” (yet another pseudonym for the guy on the road impact fee witch-hunt,) all you can come up with after I ask for some evidence is a quote from a movie in the 70’s?

    State your evidence. Let’s get it on. If what you say has any merit, this guy is toast, and should be arrested.

    “follow the money”, okay, if it’s that easy, I’ll use another movie quote: “show me the money”

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