Gerber said Guzzo acted outside her authority, resulting in Powell bringing allegations of breach of contract against Liberty.

Powell said actions that Guzzo took to help some of its residents with an initiative petition breached a cooperative economic development agreement (CEDA) between Powell and Liberty Township.

Guzzo wrote and signed, as a Liberty trustee, a June press release announcing the initiative and the reactivation of a political action group called Citizens Action Protecting Greater Powell (CAPP). She also donated $420 of her own money to pay for an attorney, who advised the group on the initiative petition.

In a report to trustees last week, Gerber detailed his concern for the amount of the township's legal fees.

"Legal fees are the major concern of the fiscal office," said Gerber's report, which was handed out at the Oct. 6 meeting. "Going forward, legal fees to defend the zoning code and the character of the community and unnecessary legal fees caused by individuals acting outside their authority cause concern."

"The fiscal office believes expenses caused by individuals acting outside their authority should be recovered from those individuals," the report said.

ThisWeek later asked Gerber if he would go on the record as to which individual was "acting outside their authority." He said, "Peggy Guzzo."

"The whole CEDA thing is caused by her sending out press releases and the like, acting as a trustee," he said. "She put Peggy Guzzo trustee on (the press release). That's acting outside her authority and I think that's causing us unnecessary legal fees."

In July, Liberty trustees Curt Sybert and Robert Mann criticized Guzzo for her actions, saying they would damage the already strained relationship between Powell and the township.

Guzzo, who did not attend the Oct. 6 meeting, said she doesn't think the allegations are legitimate, or that the amount of the legal fees relating to the allegations could be $5,642, as Gerber states.

Gerber, who took office in January after winning the seat in November 2007, told trustees, "Other than the general fund (from which legal fees are paid), all our funds are in good shape, there's very little uncertainty in our funds. The only uncertainty is associated with legal costs in the general fund."

His report said that from January through September 2008, the township has paid $339,458 net after insurance in zoning legal fees. The 2008 budget projects almost $800,000 in zoning legal fees. Some of those fees are for standard legal services the zoning department uses and for legal representation at meetings involving zoning issues, Gerber told ThisWeek.

The majority of the funds are for legal fees brought about by challenges to zoning decisions, he said. Those challenges include state and federal court cases involving Wedgewood Limited Partnership developers and Liberty in what is referred to as the Walmart case; Liberty's appeal of a zoning certificate that Powell approved for a Target store, a case that's in Delaware County Common Pleas Court; and a breach of the CEDA allegation slated for mediation.

Guzzo said allegations that the CEDA was breached aren't legitimate and don't require mediation.

"There's no mediation warranted here," Guzzo said, adding that as a township trustee, her constituency comprises residents in the township and within the city of Powell. "I'm going to serve my constituents whether they live in Powell or Liberty."

She questioned Gerber's claim that legal fees in the dispute have totaled $5,642, "because we have only had a couple of executive sessions where only a part of those discussions were with that issue."

She also said the township should be using the services of Delaware County Prosecutor Dave Yost's office to handle all legal fees, except the Target and Walmart issues.

"Also, instead of having two law firms representing us in the Target case and two in the Walmart case, we should have one," she said.

Gerber said he will pursue reimbursement from Guzzo.

"I've made it clear to her that on the CEDA issue that she's liable for that and will do what I can to make sure she does pay for it," he said.

bbutcher@thisweeknews.com