Gaithersburg logs four campaign spending complaints

City has no reporting requirements for political action committees

Largely at issue is the spending of the political action committee One Gaithersburg, a coalition of several labor unions and immigrant groups, on behalf of three candidates — Carlos Solis, Ahmed Ali and Ryan Spiegel.

This year’s election marks the first time a PAC that has not previously been involved in city business has played a role in a Gaithersburg election, Felton said.

Under city law, a group can spend up to $500 on behalf of a single candidate. With four groups under the umbrella of One Gaithersburg supporting three candidates, the PAC can spend $6,000.

Three complaints against One Gaithersburg have been filed citing a lack of reporting by the PAC or its member groups. But Gaithersburg has no reporting requirements for political action committees, Felton said.

Essentially, PAC spending operates on an honor system in Gaithersburg.

‘‘That’s one of the problems with our code,” Felton said. ‘‘While there’s a limitation on what the organizations can spend, there are no reporting requirements.”

Maryland election law does not regulate municipal elections, except in Baltimore City.

One Gaithersburg is a coalition including the Service Employees International Union Local 500, the Montgomery County Government Employees Organization, the Coalition of Asian-Pacific Americans and Progressive Maryland, as well as individual and business members.

Financial disclosure forms filed by the candidates on Thursday do not indicate any funds received from One Gaithersburg.

The complainants — Olde Towne residents Michael Stumborg and Edward Richley and Kentlands resident Richard Arkin — allege the PAC is spending more than the $500 per candidate allowed. They also allege that candidates endorsed by the group have not listed the PAC’s contributions on their own financial disclosure forms.

A complaint has also been filed by Olde Towne resident David Savage against the Campaign for Ryan Spiegel, concluding that the candidate’s likely costs for brochures and mailings would logically have to exceed what he disclosed in his latest financial reporting.

"If anyone has a complaint with One Gaithersburg, they should address it with the organization," said Jason Waskey, Spiegel's volunteer campaign manager Monday. "Ryan has completely followed all the City of Gaithersburg's campaign finance laws."

The complaint's allegations that Spiegel has mailed to 25,000 people "just has no basis," Waskey said.

City code defines a political action committee as ‘‘any combination of two or more persons formed in any manner, which has a principal purpose to assist in the promotion of the success or defeat of any candidate or proposition submitted to a vote of any election.” It also imposes $1,000 sanctions on any individual or group that exceeds a $500 contribution limit per candidate.

The city has asked One Gaithersburg to respond to the allegations made in the complaints, Felton said.

Group representatives said they would respond by noon Friday, but as of Monday afternoon had not submitted financial disclosure forms, according to Felton.

‘‘I can tell you that we are following the letter of the law,” SEIU Local 500’s Political Director Jaclyn Richter said Monday afternoon.

And as for the candidates not reporting the in-kind donations of One Gaithersburg groups, she said SEIU Local 500 has not yet disclosed its spending to the candidates, so they would not yet be required by law to report the funds.

There is also some question as to the legitimacy of having a PAC participate in a municipal election.

State law states that ‘‘a campaign finance entity established under Maryland law may not be used to support a municipal candidate.”

Some, like Game Preserve Road resident Daniel Reeder who is supporting the Drzyzgula and Ashman campaigns and has been a campaign manager in past City Council elections, interpret the statute to mean that PACs may not participate in municipal elections, except in the City of Baltimore.

The state law advises contacting the municipality for applicable reporting and registration requirements, and in Gaithersburg, there are none.

Still, some in the city believe something just doesn’t seem right with the situation.

‘‘We may find at the end of the day that these candidates obeyed the letter of the law, but they have clearly, clearly violated the spirit of the law,” Olde Towne Neighborhood Watch leader Michael Stumborg said Sunday. ‘‘At the end of the day, any candidate is allowed to bring in outside money, but there needs to be some transparency so that people know it is happening.”

Stumborg and his wife Lauren and 10 friends blanketed the city this weekend with notices asking residents to vote only for candidates not affiliated with One Gaithersburg.

And also over the weekend, city staff removed roughly 100 signs — endorsing the three One Gaithersburg candidates — illegally placed along roadways, Felton said.

Some were removed by city staff only to reappear the next day, he said.