HomeMy WebLinkAbout1993 Board of Ethics Minutes -All DRAFT
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, JUNE 29, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:15 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan by Vice-Chairperson Cook.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson {arrived at 5:35 P.M.}
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Alvan Knot, City Attorney
A QUORUM WAS PRESENT
OTHERS PRESENT:
Brian Jeffries, 3229 Moores River Drive, Lansing
Tony Benavides, 3337 S. Catherine Street, Lansing
SECRETARY'S REPORT:
Approval of Minutes:
Secretary Slade reported that minutes for the meetings of March 30, 1993,
April 13, 1993 and April 27, 1993 are available for approval.
Member Rhodes wanted it noted for the record on the minutes of March 30,
1993, page 4 that she did not vote in support of the motion directing the City
Clerk to erase the tapes of the meeting.
Member Rhodes asked that the minutes of the April 27, 1993 meeting be
corrected to show her as present since she did arrive at the meeting at 5:25
P.M. and stayed until the conclusion of the meeting.
With these corrections, a motion was made by Member Rhodes to approve the
minutes of the meetings of March 30, 1993, April 13, 1993 and April 27,
1993.
1
VOTE: 3/0, Member Knot not voting and Chairperson Mertz not present
Correspondence Received since Last Meeting:
-Memo from Stuart Dunnings regarding issues pending in lawsuit
-Copy of letter to Shirley Sliker from Councilmember Benavides
-Request for opinion received from Jack A. Nelson
-Request for opinion from Councilmembers Lilly and Beal
-Sparrow Hospital Expansion Request for Opinion
Disclosures Filed since Last Meeting:
None
Inquiries and Complaints Rec'd. since Last Meeting:
None
Next Special Meeting Date:
Next meeting date was set for a special meeting on July 20, 1993 at 5:00
P.M. to deal with the Proposed Rules of Procedure and pending issues (other
than early retirement) before the board. Next regular meeting set for July 27,
1993 at 5:00 P.M. Both meetings will be held in the 10th floor Council
Committee Room.
CITY ATTORNEY'S REPORT:
City Attorney Knot stated that he had not received any disclosures other than
the Sparrow Hospital request before the board this evening.
City Attorney Knot stated that he has received information from the Attorney
General's Office that, according to the Open Meetings Act, when a board
recesses it cannot go back into session unless the meeting has been reposted
18 hours prior to the meeting being reconvened. Chairperson Mertz asked that
a copy of the Attorney General's information be provided to him.
CHAIR'S REPORT:
None
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OLD BUSINESS:
Revised Ethics Ordinance, Draft 1
City Attorney Knot reported that he does not have this ready to present to the
board.
Revised Rules of Procedure, Draft 2
Members present stated that they felt a special meeting should be scheduled
to review the proposed rules of procedure since they are quite lengthy. It was
agreed that a special meeting would be scheduled for July 20, 1993, at 5:00
P.M. to review draft 2.
Leeman Request for Investigation #1
Member Rhodes submitted her draft of an opinion regarding the Leeman request
for investigation # 1 .
Motion by City Attorney Knot to approve this opinion.
VOTE: 4/0
City Attorney Knot asked that the record show that the board compliments
Member Rhodes on the good job she did on this opinion.
Secretary Slade was directed to assign opinion #16 to this opinion, place it into
final format, and route to all board members for signature.
Leeman Request for Investigation #2
Secretary Slade reported that she still has not received all of the information
requested from the Purchasing Manager, Amy Magistro, regarding this
investigation. She will contact Ms. Magistro to obtain the missing information.
Leeman Request for Investigation #3
Secretary Slade was directed to invite Councilmember Canady to the 7/27/93
board meeting to answer questions regarding this investigation. She was asked
to attach a copy of Mr. Leeman's letter to her letter to Councilmember Canady.
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Knechtel Opinion
The board will review a draft opinion from Member Rhodes regarding this
matter at the special meeting scheduled for July 20, 1993.
Andrews Request for Investigation
No action taken
Disclosure, Melvin McWilliams
No action taken
Disclosure, Susan Wager
No action taken
Disclosure, Alfreda Schmidt
No action taken
NEW BUSINESS:
Reauest for Opinion from Jack A. Nelson
No action taken
Request for Opinion from Councilmembers Lilly and Beal
No action taken
Request for Opinion Sparrow Hospital Expansion
Councilmember Benavides was present to answer questions from board
members regarding this request. It was agreed to place this item on the agenda
for the July 1, 1993, meeting so that Councilmember Benavides can receive a
decision from the board prior to the July 6, 1993, city council meeting.
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Motion by Member Rhodes to adjourn the meeting:
VOTE: 4/0
Meeting adjourned at 7:45 P.M.
Respectfully submitted,
MARILYNN SLADE
Secretary
Date Approved:
5
MINUTES OF THE
CITY OF LANSING BOARD OF ETHICS
WEDNESDAY, DECEMBER 23, 1992
This meeting reconvened and was called to order at 8 : 50 a.m. at the
City Council Conference Room, loth Floor, City Hall, Lansing,
Michigan.
BOARD MEMBERS PRESENT:
John Mertz
Donald Cook
Al Knot
Jane Rhodes
James Blair
OTHERS PRESENT:
Harold Leeman Jr.
Lloyd Teets
Kenneth Vaughan
Sue Podleski, Recording Secretary
Mr. Blair wanted it noted on the record his objection to
this meeting being held in that there was no notice posted in the
City Clerk' s office for this meeting and that it does not follow
the 18 hour notice rule. Mr. Mertz stated that yesterday' s meeting
was duly chaired and was duly called to order. Mr. Mertz
acknowledged this objection.
Mr. Knot indicated that this does not mean that legal
requirements have been satisfied and would like to take a look into
it.
Mr. Mertz formally requested a written opinion from the
City Attorney concerning the procedure of this meeting being held.
Mr. Knot wanted it noted on the record that no official
action be taken at this meeting.
Mr. Cook inquired if James Blair should even be in
attendance at this meeting as a member. Mr. Mertz responded that
there are a number of issues that do not pertain to Mr. Blair that
need to be addressed.
- 1 -
SECRETARY' S REPORT:
Correspondence Received and Sent Since Last Meeting:
None
Disclosures of Financial Conflicts Filed Since Last
Meeting:
Donald P. Knechtel II (to be placed on next agenda)
Inquiries and Complaints Received Since Last Meeting:
Letter from Nicki Wilcox dated December 3, 1992
Next Meeting Date:
January 25 , 1993 at 5 : 00 p.m.
CITY ATTORNEY' S REPORT:
Disclosures of Non Financial Conflicts Filed Since Last
Meeting:
None
Current Legal Developments of Interest:
None
OLD BUSINESS (CLOSED SESSION) :
None
OLD BUSINESS (OPEN SESSION) :
Motion was made by Donald Cook to table old business
until next month' s meeting; support by Al Knot; passed 4 - 0 .
Following motion, Mr. Mertz indicated that he wanted the
minutes from the last meeting to review what action was decided
pertaining to all the information that was provided by a
councilmember as a response to the Board of Ethic ' s inquiry of a
possible conflict of interest. It was Mr. Mertz ' s understanding
that the City was not involved and that there was no conflict.
Harold Leeman addressed the members and refreshed their
memories as to his December 17 , 1991 letter that pertained to the
suspension of Council rules when an appointment of Mr. Reyes was
made to the Cable Advisory Board. Mr. Mertz indicated that a copy
of the packet from the councilmember responding to this issue would
be provided by the City Clerk to Mr. Mertz and he could address the
Board at the next meeting if he still felt there was a problem.
2 _
NEW BUSINESS (OPEN SESSION) :
Early Retirement Resolution
A discussion ensued as to whether this meeting was being
properly held under the Open Meetings Act. Mr. Mertz stated his
belief to be that when a meeting is called and there is a lack of
a quorum you could recess until a quorum could be obtained. Mr.
Knot replied that if there is a lack of a quorum, the only legal
motion that could be made is a motion of adjournment . Mr. Blair
agreed with Mr. Knot and further indicated that he believes that
the meeting is to be re-posted and new notice given. Mr. Mertz
stated that he believes the meeting should continue on and if rules
are found to the contrary, then this meeting can be ratified. Don
Cook and Jane Rhodes supported that the meeting should go ahead.
Mr. Knot supported that the meeting should go ahead but not to vote
on anything.
Mr. Teets inquired if it wasn' t unethical for Mr. Blair
and Mr. Knot to participate in this meeting.
Mr. Mertz addressed Mr. Blair by stating that the charter
clearly indicates that "If any issue before the Board involves any
member of the Board, the City Council shall appoint an additional
member or members to sit for the purpose of that determination in
place of the member or members involved. " Mr. Mertz requested from
Council President Crawford that someone be appointed to sit in for
Mr. Blair. He further stated to Mr. Blair that it is important
that Mr. Blair not participate in this portion of the meeting.
Mr. Blair requested that this agenda item be split into
two separate items . He feels that he should be able to participate
in the complaint against the Mayor.
Mr. Mertz stated that he disagreed.
Motion was made by Mr. Knot to excuse the City Clerk from
participating in this portion of the meeting' s agenda item
concerning two elected officials taking the early retirement;
support by Jane Rhodes; passed 4 - 0 (with James Blair abstaining) .
Mr. Mertz stated that concerning the letters received
from Charles Street Jr. and Nicki Wilcox concerning the two elected
officials taking the early retirement, that he would request from
the City Clerk' s office a copy of the minutes from the April 13,
1992 Council meeting, Resolution 201 and a videotape of the
April 13, 1992 Council meeting.
3 -
Mr. Knot asked that this matter be tabled because of the
lawsuit pending before Judge Stell with a December 30, 1992 hearing
at 3 : 30 p.m. on the very issues before this Board. Mr. Mertz
stated that the court hearing does not involve this Board. Miss
Rhodes indicated that regardless of whether the judge rules or not,
we owe it to the citizens and the two officials that we need to
know what really happened. She further stated that the Board needs
to provide and find out what is going on.
Mr. Knot further asked that the members wait to address
this matter until the new board member is appointed. Mr. Mertz
replied that right now they just want to find out what procedures
were followed, where did it come from, who was involved in the
governmental process, and get a list of people who benefitted from
this early retirement. Mr. Knot reminded Mr. Mertz that there were
only the two elected officials involved in this issue and to stay
on that track.
Mr. Mertz and Miss Rhodes determined that they needed the
following information: 1) Minutes from City Council meeting of
April 13 , 1992; 2 ) videotape of April 13, 1992 City Council
meeting; 3 ) list of procedures followed; and, 4 ) list of
individuals who took advantage of the early retirement .
Mr. Leeman interjected and advised the members that there
is an ad hoc committee of early retirement and that at the last
committee meeting a "scorecard" was requested and that the members
could probably get a copy of that.
Mr. Knot stressed for the record that the members are to
keep in mind only the two elected officials involved and that if
the members want to go through a list and verify that the mayor and
clerk are on it, then that ' s okay.
Mr. Mertz asked if there was a list of people who
participated in the decision process, where this .list would come
from, who drafted a resolution and how can the Board find this out.
Mr. Knot replied that he believed this was done in closed session
meetings . Mr. Mertz then indicated that he wanted a time
stream/paper trail of these events . Mr. Knot stated that the two
elected officials would not have participated in these closed
session meetings and that Fran Knot keeps the minutes of closed
meetings .
Mr. Cook inquired as to what the early out plan is -- has
internal audit ever looked at it. Mr. Mertz indicated that he
wants someone to come in and explain the plan to the members and
that he wanted Mr. Knot to find someone to be at the next meeting.
Mr. Knot ' s reply to this request was that there would be no problem
if a request was sent to him requiring him to act on behalf of the
Board and not as an individual Board member. Mr. Knot further
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stated that he needs the authorization that the request is being
made from the Board. Mr. Knot moved that requests for information
and the like should come from the Board and that the chairperson
should make these requests ; support by Donald Cook; passed 4 - 0
(with Mr. Blair abstaining) .
A further motion was made by Mr. Knot that the
chairperson be authorized to act as spokesperson to the media on
behalf of the Board; support by Donald Cook; passed 4 - 0 (with Mr.
Blair abstaining) .
A motion was made by Miss Rhodes that the City Attorney
prepare a written opinion of the legality of the procedure that was
followed for this meeting; support by Donald Cook; passed 5 - 0 .
BOARD ROUNDTABLE/ANNOUNCEMENTS/ADJOURNMENT
Mr. Knot moved that the chairperson be authorized to rule
a public participant out of order if the chairperson feels that the
public participant is getting out of order or time limit exceeds a
reasonable time period; support by Jane Rhodes; passed 5 - 0 .
Harold Leeman indicated that he would like a public sign
in sheet. He further indicated that a tape of City Council
meetings or audiotape of meetings should be made available and then
wished everyone a happy new year.
Lloyd Teets addressed the members concerning the
March 24, 1992 response he received from Mr. Mertz regarding his
complaint against Joseph Pandy. He advised the members that he did
not like the letter and felt that it was a poor job. He presented
Mr. Mertz with an envelope and twenty-nine cent stamp.
Kenneth Vaughan requested that each member of City
Council be asked why they felt it proper to vote "yes" on
Resolution 201 . Mr. Vaughan stated that he believes each
Councilmember should be polled.
Miss Rhodes moved for adjournment; support by Mr. Knot;
passed 5 - 0 . The meeting was adjourned at 10 :25 a.m.
- 5 -
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, DECEMBER 29, 1992 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:16 P.M. in the City Council Conference
Room, loth Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
BOARD MEMBERS ABSENT:
Jane Rhodes, Public Member
Al Knot, City Attorney
James Blair, City Clerk
A QUORUM WAS NOT PRESENT
OTHERS PRESENT:
Marilynn Slade, Deputy City Clerk [Recording Secretary]
Ellen Beal, Ward 1 Councilmember
Harold Leeman, Member of the Public
Bernie Mussim, Member of the Public
Lloyd Teets, Member of the Public
Russell F. Smith, Member of the Public
Walter M. Jones, Member of the Public
James P. Evans, Attorney
Gregory McClelland, Attorney
Howard L. Jones, representing Citizens for a Better Lansing
Betty L. Kost, representing Citizens for a Better Lansing
Margery Gilcrest-Hesse, Member of the Public
Mary Margaret Woll, representing Eastside Neighborhood Assn.
Leon A. Hilton, representing UAW
Vivian Bloom, Member of the Public
Others were present who did not sign in
Chairperson Mertz announced that, after discussion with Mr. Cook, it was
apparent that there was not a quorum of the board present. A motion was made
by Don Cook that the meeting be adjourned due to the lack of a quorum and be
rescheduled for January 5, 1993, at 5:00 P.M. CARRIED 2-0.
Meeting adjourned at 5:17 P.M.
Subsequent to this motion, a motion was made by Mr. Cook that the meeting
reconvene for the sole purpose of taking comments from the public. CARRIED
2-0.
PUBLIC COMMENTS
Harold Leeman addressed the Board and asked if the Board would wait until 5:30
P.M. to see in Miss Rhodes might be present by then so the meeting could be
reconvened.
Leon Hilton requested that the Board ask City Council to place into escrow any
bonus retirement monies due to Terry McKane, James Blair, Stephen Duarte and
Jan Lazar until such time as pending litigation is completed.
Howard Jones asked Chairperson Mertz to explain to members of the public
present what powers the Board of Ethics possess.
Lloyd Teets stated that he was not familiar with the two letters received by the
Board on the issue of the early retirement plan so he is filing his own letter
regarding this issue. Mr. Teets requested the Board to look into the retirement
program and to look into whether the procedures used in implementing this
program were proper.
Greg McClelland stated that he was from the firm of Dickinson Wright Moon
Vandusen & Freeman and that this firm has been retained, pending Council
approval, to represent the City in the UAW v Lansing. He stated that he is
anticipating that this suit and the suit filed by Ken Vaughn will be combined. He
stated that the individuals who have sued the city [UAW; Ken Vaughn] are, in
essence, asking for the Board to conduct litigation on behalf of them. In his mind
this is a misuse of the powers of the Board. These people sued the city, let them
use litigation and not the Board to pursue their cause. He stated that City Attorney
Al Knot is required by City Charter to be a member of the Board of Ethics and
cannot be removed by the Board. He stated that he felt Chairperson Mertz had a
conflict of interest as his wife is employed by the UAW. He stated that
Chairperson Mertz should disqualify himself.
Margery Gilcrest-j__use asked
Wright are representin who the attorneys from the firm of Dick'The point is that these people i Will taxpayersof LansingDickinson
therepresenting be Paying for these attorneys?
y [attorneys] should not be here at all g people who are leaving the city and
Harold Leeman stated he felt the attorneys from
a cheap shot by brin in y m Dickinson Wright were making
g g up the comments about Chairperson Mertz havin
conflict of interest due to his wife being employedby the UAW, g a
Dorothy Jones stated that it is her taxes that are
paying for these attorneys.
Howard Jones stated that itseems to him that citizens have had to dig into their
own pockets to get the City
supposed to do and now theyAttorney and the City Clerk to do what the
should with respect to creating an ear are llnretiore pay to get the city to do what the e
Y retirement plan, Y
Meeting readjourned at 5:50 P.M.
Respectfully submitted,
nG�
MARIL SLADE
Recording Secretary
Date Approved:
CITY OF LANSING
BOARD OF ETHICS
CHAIR' S REPORT
January 26 , 1993
RE: Wilcox Request for Investigation
Background
After the former mayor and city clerk retired, I received
several telephone calls from concerned citizens about the ethics of
the decision. I do not recall ever speaking to the person who
filed the initial request for investigation, however. I received
a copy of that request at my home on December 5 , 1992 . On December
9 , I received a second copy from Fran Knot, then our recording
secretary. I confirmed to her that the item should appear as New
Business on the agenda for our regular December meeting. I next
discussed the procedure for handling the matter, in separate
telephone conversations, with all other members of the Board,
except the City Clerk.
Actions Taken Prior To 12/22/92
On December 9 , 1992 , I wrote a letter to Mr. Crawford
requesting appointment of a special member to the Board to sit for
any determination involving the request for investigation relating
to the former City Clerk. Pursuant to Rule 12 , whether to
consider the request, would appear on the agenda of our December 22
regular meeting. Charter Section 5-502 . 5 provides:
"If any issue before the Board involves any member of the
Board, the City Council shall appoint an additional
member or members to sit for the purpose of that
determination in place of the member or members
involved. "
In Board Opinion No. 7, we said that we used the usual
dictionary meaning of ' involved' . . . . " whether a. member was "the
focus of the investigation. . . . " was the test. The request for
investigation naming a Board member "involved" that member. The
language of the Charter being mandatory, I believed that it was
appropriate, therefore, to bring the matter to Mr. Crawford' s
attention, as he was then City Council President. A copy of the
letter was sent to all Board members at the time.
The City Council took no action on the request prior to our
regular December meeting, and subsequently canceled the Special
Meeting at which the issue was to be considered, due to lack of
quorum. Our special meeting on December 29 , 1992 was also canceled
due to lack of a quorum. So, on January 4 , 1993 , the City Clerk
retired, the Deputy Clerk succeeded to the post by Charter, and the
1
issue became moot. Marilyn Slade is now the City Clerk by
appointment of the Council, fully resolving the vacancy. She has
also resumed all the functions of Recording Secretary. Welcome
Marilyn!
On December 15, 1992 , I requested the former City Clerk supply
the public members of the Board with copies of the Code of
Ordinances, as required by the Charter. He advised the Board at
our December meeting that the request was forwarded to the City
Attorney for his opinion as to whether the City Clerk should comply
with it. I do not yet have a response to report to you on this
issue.
The 12/22/92 Meeting Was Properly Recessed
Due to being tied up in a nonrelated professional matter, I
was unable to attend the December meeting at its regularly
scheduled time. I attempted to call the City Attorney and tell
him, but was told he was unavailable and would not be attending the
meeting. I then called the meeting place and spoke to Vice-Chair,
Don Cook. Don advised that he and Jane Rhodes were present, but
there were insufficient members to proceed without me. Upon the
advice of a City Council staffer, Don advised me that they could
recess the meeting until the next day to allow me to attend and
make a quorum. This was agreed upon and the meeting was,
accordingly, recessed until the following morning at 8 : 30 a.m.
All members were present when the meeting was reconvened the
next morning. The City Clerk objected to the holding of the
meeting, on the grounds that our meetings cannot be recessed under
the Open Meetings Act without reposting notice 18 hours before the
new meeting time. The City Attorney was unable to tell the Board
whether this was a correct interpretation of the law without
research, and advised the Board to take no action at the meeting as
a consequence. The public members disagreed, and upon a ruling of
the Chair (and, if memory serves, a vote being taken) , the Board
elected to proceed with its agenda. The City Attorney was also
directed to prepare a written legal opinion on the issue for review
by the Board at its next meeting.
While waiting for the City Attorney' s opinion, I have reviewed
the Open Meetings Act myself, and have located statutory and case
law authority which I believe indicates that:
1. Advisory boards, such as the Board. of Ethics, are not
subject to the Act at all.
2 . However, the Open Meetings Act allows local charters and
ordinances to require stricter standards than are found under the
Act. Thus , City Charter Section 5-105 . 4 provides that city board
rules must " . . .require that public notice of all meetings shall be
given in the manner provided by statute for meetings of public
2
bodies . " Ours do. Additionally, Section 5-105 . 6 provides that all
city board meetings be " . . .open to the public to the same extent as
meetings of the City Council. " Ours are. Therefore, the fact that
Charter Section 2-3-203 provides that " . . . In the absence of a
quorum, any number less than a quorum may recess any meeting or
hearing to a later time. . . . " means that the recess was proper. The
Open Meetings Act and case law interpretation allow such a recess,
without reporting, if the meeting is reconvened within 36 hours of
its originally scheduled time, and the change is announced publicly
at the meeting that is recessed. This is what happened on December
22, 1992.
I conclude, therefore, that all actions taken at the recessed
meeting on December 23, 1992 were proper. No ratification at this
meeting is required.. I consider the issue closed.
Summary of Actions Taken At December Meeting And Follow-up
The Board recused the (now retired) City Clerk from
participation in any decision relating to the Early Retirement
Resolution. After discussion, the Board decided to conduct a
preliminary investigation to familiarize itself with the process
involved in the passage of Resolution 201, including:
1. To obtain copies of the resolution and the minutes of all
meetings at which it was considered;
2. To obtain recordings of any of the meetings at which it
was considered, where available;
3 . To obtain a list of individuals who were eligible to take
early retirement under the resolution;
4 . To arrange an appearance from someone in City government
to explain the retirement system, and how the plan affected it.
I was delegated the responsibility for making inquiry on behalf of
the Board to the appropriate sources of the information requested.
Copies of the letters by which. I did so on January 13 , 1993 have
been sent to all Board members .
The City Clerk has advised that she has the material requested.
from her and materials from the Finance Department ready for
distribution to the Board. A reply has not been received from the
Personnel Department. Additionally, I have recently learned that
the City Council, rather than the City Clerk has custody of records
relating to Committee of the whole meetings , so a request will be
made to the Council for those records . Given the amount of time
this matter is requiring, I will try to delegate some of the
follow-up work to insure all material is available by our February
regular meeting. In the interim, I propose we postphone further
3
consideration of the matter until our February meeting.
Independent Special Counsel
I received a telephone call from the former City Clerk on or
about December 10 , 1992 , in which I perceived that he threatened a
lawsuit, against Board members personally, if any rule respecting
the Board of Ethics was violated during the course of any
investigation of the matter with respect to him. Following this ,
I repeatedly attempted to contact the City Attorney until our
December meeting. It was my intent to determine the scope of
representation his office would undertake, in the event litigation
involving the Board. was commenced. However, none of my telephone
calls were taken or returned..
Immediately following the December 23, 1992 regular meeting,
I was contacted by both of the other public members , who expressed
their concern over the impartiality of the City Attorney. It
appeared that he was prepared to defend positions adverse to any
investigation, that he would not be forthcoming with legal advise
to facilitate action by the Board contrary to his position, and
that he would not readily assist the Board in seeking the
information it desired in conducting the preliminary investigation.
It also seemed that he perceived that his duty to the City required
or permitted him to limit his role as legal advisor to the Board.
Additionally, the City Attorney urged the Board to take no
action in December because there were two lawsuits over the early
retirement resolution then pending in the Circuit Court. He
contended that any fact finding by the Board would harm the City' s
position in the lawsuits and/or would involve issues raised in the
lawsuits . He also initiated the spurious allegation that I had a
conflict in sitting on the Board in this matter, because my wife
was in the class of Plaintiffs the UAW lawsuit proposed to
represent.
What the City Attorney did not disclose, however, was that at
the time, he was a named Defendant in one of the lawsuits (he was
subsequently dismissed as a party, but remains as a possible
witness ) . The withholding of such relevant information is also
inconsistent with the duty of a legal advisor. I believe that
civil lawsuits brought by private parties do not substitute for the
performance by the Board of its duties and. responsibilities under
the Charter, and absent a court order to do so, should not limit
what this Board does.
Based on concerns raised by these issues , I contacted the
State Bar of Michigan to request an opinion as to whether a
professional conflict existed between the City Attorney' s role in
support of the resolution and his service on the Board as a member
and as legal advisor. I received information from that source that
led me to believe that, in this instance such a conflict existed.
4
I further onfirmed this fact by conversations with several other
lawyers, some of them also city attorneys .
After we were unable to hold a special meeting, attorneys
retained by the City Attorney repeated his claim that my wife' s UAW
membership creates a conflict of interest for me in this matter.
Following the meeting, I received a letter from Council Member
Canady in which he repeated the allegation. A telephone
conversation with him indicated that he fully supported the City
Attorney' s position. I was then invited to a Committee of The
Whole meeting by Council President Canady to discuss the issue.
Based on these events, Mr. Tom Downs agreed to assist me in
maintaining the Board' s and my independence from Council
interrference. His letter agreeing to such representation was
mailed to all other Board members as well. He also supplied me
with a written legal opinion in which he stated his professional
opinion that I had no conflict on the basis of the facts alleged by
the City Attorney and Council President, but that the City Attorney
did.. This letter was also sent to all Board members . Based on his
opinion, I intend to continue functioning as Chair in this matter.
Additionally, Mr. Downs represented me before the City Council
at two meetings at which they considered a resolution authorizing
and directing their special counsel to sue the Board and its
members to determine if any of them had conflicts of interest in
this matter. In doing so, he got the Council to agree that the
Board should continue doing business while these issues were being
determined in court. The City Attorney supported passage of the
resolution by the Council. A copy of the resolution passed by the
Council has been sent to all Board members .
The Council then authorized payment for their own attorneys
but did not provide legal counsel for the Board they directed their
attorneys to sue.
Following this action, I wrote to Council President Canady
requesting clarification of the resolution as to the right of the
Board to retain its own lawyer to represent the Board in the legal
proceedings anticipated by the resolution.
I also wrote to the City Attorney, citing the above
circumstances, and requesting him to recuse himself from
participation in this matter. I have not received a reply
directly, but public statements made by the City Attorney at
Council meetings indicate he doubts the authority of the Board or
the Council to recuse him. This matter has been further
complicated by the recent filing of a request for investigation of
the City Attorney ' s role in the passage of the early retirement
resolution.
Based on the Council action, an informal poll of Board
5
members, and the advice of Mr. Downs, I authorized him to seek to
intervene in the pending lawsuits , on my behalf , to see if the
issues raised could be resolved prior to our January regular
meeting. Copies of all pleadings filed have been previously sent
to all Board members. I refer you to Mr. Down for specifics.
Since that action, Mr. Downs has again met with the Council
Committee of The Whole and has received the informal advise that
the Council will look favorably at a request for special counsel if
one is made by the Board. It is, therefore, my recommendation that
the Board retain Mr. Downs as its special counsel for this matter,
and request approval of this action by the City Council. I
understand the Council has informally agreed to pay reasonable fees
for such representation, upon the presentation of itemized bills
from Mr. Downs .
Information received from Judge Stell' s legal assistant
indicates that the City' s attorneys are seeking dismissal of
consideration of any ethics issues by the Circuit Court. The
hearing on that motion is set for February 18 , 1993 . If we are
made a party to the lawsuit, our attorney would represent the
Board' s interests in the decision of that motion. This should
clarify, therefore, the role the court will play, if any in our
deliberations . Hopefully, this clarification will occur before our
next regular meeting in February.
Recommendations for Action
Based on the above, I make the following recommendations for
action by the Board:
1 . To ratify the actions of the Chair taken on behalf of the
Board since our last meeting.
2 . To retain Tom Downs as special counsel for the Board. of
Ethics in this matter.
Respec ly Submitted,
`Lt
J N F. MERTZ
Ch
6
RESOLUTION
RESOLVED, The Board of Ethics retains Tom Downs to represent the
Lansing Board of Ethics as Proposed Intervening Plaintiff in the
case of Vaughan, et al. v City of Lansing and Lansing City Council
Docket No. 92-73552-CZ and UAW v City of Lansing and Lansing City
Council Docket No. 92-73590-CZ and hereby ratifies the filing of
pleadings already filed in this case, subject to the approval of
the City Council.
BE IT FURTHER RESOLVED, the Lansing Board of Ethics requests the
Lansing City Council to approve retaining Tom Downs in the
aforesaid matter.
LANSING BOARD OF ETHICS
I certify the above resolution is a true copy of the action taken
by the Lansing Board of Ethics at the regular meeting on January
26 , 1993 .
-N�tQ
Marilynn Sladle, Board Secretary
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, JANUARY 26, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:10 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Member Knot, City Attorney
Marilynn Slade, City Clerk
BOARD MEMBERS ABSENT:
None
A QUORUM WAS PRESENT
OTHERS PRESENT:. Deborah Miner, [Recording Secretary]
Ellen Beal, Ward 1 Councilmember
Charles Ford, Ward 4 Councilmember
Richard Lilly, Councilmember at Large
Suzanne Wood, Lansing State Journal
Harold Leeman
Lloyd Teets
Howard Jones ,
Leon Hilton ;
Thomas Downs
A j t7
Richard Collins �.
Gary Andrews
Kenneth Vaughan '
Steve Hudson
Bernie Meissner
Lynne Metzmaker
Debbie Heefner cz�
Paul M. Scott
Clyde Smith
G. Garner
Paget Maynard
Shawn Withers
APPROVAL OF AGENDA:
The agenda was amended to remove the Leeman Request for Investigation and
reschedule it for the February 23, 1993 meeting under Old Business. The amended
agenda was approved by all members of the Board.
1
SECRETARY'S REPORT
AQproval of Minutes:
Motion by Member Knot to amend the minutes of the December 22, 1992
Ethics Board meeting to reflect that Member Rhodes' motion was to recess the
meeting, not to adjourn it. Carried 5-0.
Motion by Member Knot to amend the minutes of the December 23, 1992
Ethics Board meeting to reflect that the motion by Member Rhodes, requesting a
written opinion from City Attorney Knot, passed by a 4-0 margin, not by a 5-0
margin. Carried 5-0.
CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING:
1 . Letter from Robert Foltz of 1701 Mary Ave. regarding Early Retirement
Plan
2. Letter from Mr. & Mrs. Francis Brokaw of 2309 Tulane Dr. regarding
Early Retirement Plan
3. Letter from William Nakfoor of 3400 Tecumseh River Rd. regarding the
Early Retirement Plan
4. Letter from Pete Nelson of P.O. Box 16333 regarding Early Retirement
Plan
5. Letter from Gary Andrews of 560 Brookland Blvd. requesting
investigation of Councilmember Brockwell
6. Letter from Bernie Meissner of 635 LaSalle Blvd., requesting removal of
Member Knot from Ethics Board and investigation by the Board
DISCLOSURES OF FINANCIAL CONFLICTS FILED SINCE LAST MEETING:
None
NEXT MEETING DATE:
February 23, 1993, 5:00 P.M.
INQUIRIES AND COMPLAINTS RECEIVED SINCE LAST MEETING:
None
CHAIR'S REPORT:
Chairperson Mertz reviewed the Chair's Report and asked that it be placed in
2
the minutes of the meeting.
Member Knot said that it was his understanding that the City Council refused
to review Mr. Mertz's request for legal counsel until the Board as a whole made the
request.
Mr. Downs stated that he went to Court this morning to get a copy of {the
early retirement lawsuit} pleadings. The Court's file goes through January 21, 1993
only. The first hearing is set for February 18, 1993, for a summary disposition to
eliminate ethics allegations. From the viewpoint of the Ethics Board, he thinks they
should be represented because a motion may be made there relative to the disposition
of ethical issues.
Chairperson Mertz requested that the Board pass a resolution retaining Mr.
Downs to represent them and that they send this resolution to City Council.
A discussion ensued on this topic.
Councilmember Ford said that none of the three Councilmembers present
tonight voted for this resolution. Council wants the Board to continue to do their job
until a decision from Judge Stell.
Member Knot stated that the worst case scenario is for Knot, Mertz, and the
Board to all have separate attorneys representing their interests.
Chairperson Mertz said he does not think that he has any interests in this
matter that are different from the Board.
Member Knot asked Mr. Downs "will it be your position that you represent the
Board of Ethics, not individual members?"
Mr. Downs answered "yes". He will be representing and defending the Board
for the City. Outside legal counsel has said that someone has a conflict and should
recuse themselves. It is up to the Court to make the decision as to whether there is
a conflict.
Motion by Member Knot to accept the report of the Chair. Carried 5-0
Motion by Member Knot to ratify actions taken by the Board on December 22,
and December 23, 1992. Carried 5-0
Motion by Member Knot that the resolution be amended to state "that the
Board of Ethics be authorized to retain Mr. Downs as their representative, subject to
the approval of City Council." Carried 4-1; Member Rhodes opposed.
Motion by Member Knot that the resolution be adopted as amended. Carried
4-1; Member Rhodes opposed. The resolution, as adopted, follows these minutes.
3
CITY ATTORNEY'S REPORT:
No Disclosures of Nonfinancial Conflict Filed
No Current Legal Developments of Interest
OLD BUSINESS (Open Session):
Revised Ethics Ordinance
Deferred until the February 23, 1993 meeting.
Revised Rules of Procedure
Deferred until the February 23, 1993 meeting.
Leeman Request for Investigation
Deferred until the February 23, 1993 meeting.
Knechtel Disclosure
Mr. Knechtel is affiliated with various companies that propose to do business
with the City of Lansing. However, he does not identify specifics. Chairperson Mertz
will correspond with Mr. Knechtel explaining that he needs to file the specifics of his
disclosures and the interests he has in these contracts. Member Cook reminded the
Board that Opinion #13 was written on Mr. Knechtel.
Motion by Member Cook that Chairperson Mertz write to Mr. Knechtel and
advise him that the Board must have more details on his disclosure and that he must
inform them of his specific involvement in contracts. Carried 5-0.
Wilcox Request for Investigation
Chairperson Mertz indicated that the Board has just received the information
on this request. He suggested that the matter be deferred until the February 23
meeting.
Motion by Member Knot to postpone the Wilcox Request for Investigation until
the next meeting on February 23, 1993, in order to review all the information. Carried
5-0.
NEW BUSINESS:
Meissner Request for Investigation
Chairperson Mertz recommended that they defer their recommendation on this
matter for further review.
4
Member Knot requested that he be recused from voting on this matter.
Motion by Member Rhodes to defer the Meissner Request for Investigation until
next month's meeting. Carried 4-0, Member Knot abstained.
Andrews Request for Investigation
Chairperson Mertz opened discussion regarding Mr. Andrews communication.
There are video tapes of the Council meetings and, possibly, audio tapes of the
Committee of the Whole Meeting. He recommends that this matter be deferred until
the February 23, 1993 meeting and that they correspond with Mr. Andrews indicating
a response time.
Gary Andrews of 560 Brookland Blvd. stated that the January 7, 1993, minutes
of the Committee of the Whole meeting do not reflect the experience that he was
subjected to. He asked that they request copies of the tapes so that they can
understand the nature of his complaint.
Chairperson Mertz stated that the Board must write to City Council and request
copies of these materials before they can conduct an investigation.
Motion by Member Cook to request a copy of these tapes, extracted down to
just the exchanges between Gary Andrews and Councilmember Brockwell, for review
on February 23, 1993. Carried 5-0.
Non-Union, Exempt Employees Tie Bar with Teamsters
Member Knot asked the Board to consider this issue, in order to be able to give
guidance to the City Council and the Mayor as to who can participate in discussions
on the issue of the tie bar. He will write a letter requesting that the Board consider
taking this issue up. He will recuse himself from this issue.
Councilmember Beal said guidance is only needed with regards to eliminating
the tie bar for present employees. They can get rid of the tie bar for future
employees; Council can just eliminate it without asking anyone's advice.
Howard Jones asked "to what extent is the Board committed to expediting the
matters that impinge on the investigation of the Early Retirement? Do they see any
future schedule of completion of the investigation, and when their decision may be
rendered?"
Chairperson Mertz answered that in the past these types of investigations have
taken months. The Board will move as fast as they can.
Harold Leeman asked if the Board of Ethics had requested the minutes of the
executive session on the Early Retirement Plan, and if not, will they be asking for
them?
5
Chairperson Mertz responded that the City Clerk's Office does not have these
minutes as of now. The Board will make a request to the Council Staff.
Member Knot said that his recommendation is that these minutes be released
publicly.
Member Rhodes stated that at the December 23,1993, meeting the Board
passed a motion authorizing Chairperson Mertz to represent the Board to the media.
They ratified this action today and it will stay in effect.
Member Knot requested that Mr. Downs provide the Board with a copy of the
amended pleadings. This will require that the pleadings be amended, and he would
like a copy of them.
PUBLIC COMMENT
Lloyd Teets said that at the December 23, 1992, Ethics Board meeting he was
the first to suggest that a conflict of interest exists on the part of Member Knot.
BOARD ROUNDTABLE/ANNOUNCEMENTS/ADJOURNMENT:
None
Meeting Adjourned at 6:50 P.M.
Respectfully submitted,
MARILYNN SLADE, .��%l'�'1�..
Secretary
Date Approved: 3
6
CITY OF LANSING
BOARD OF ETHICS
CHAIR' S REPORT
Sunday, February 21 , 1993 (6: 37pm)
TO: MEMBERS OF BOARD OF ETHICS
RE: THE BOARDS REQUEST FOR SPECIAL COUNSEL
1. Following the January 26, 1993 meeting of the Board, I
sent a copy of our resolution icon requesting approval to retain Tom
Dawns to the Council for action. It was referred to the Ways &
Means Committee and to the Committee of the Whyte. I was invited
to appear before the Committee of the Whale to discuss the.
resolution.ion. I understand that every member was also individually
invited to attend.
.2. In order for all members to attend, we would have to call
a special meeting for the same time. Therefore, I attempted to
i
personally contact every member to see if they approved of this.
Al Knot agreed that we would have to past the meeting before a
quorum could be present and Board business discussed. He did not
wish t�� call a meeting, but had to attend as City Attorney, . anyway.
Marilyn Slade advised that due to a conflict in her meeting
schedule, she could not attend, but she was receiving pressure from
Council President Canady to attend, nonetheless. Don Cook�k advised
that he had received telephone calls from a council staff person
insisting upon personal delivery of the invitation. He also said
he did not wish to take cuff work for a meeting over this issue. He
felt that I could and should attend as spokesperson for the Beard.
Jane Rhodes did not return my telephone calls.
3. Fused on, the Beard poll , I wrote back to Council
President Canady that while I would attend as spokesperson for the
Board, the Board would not convene a special meeting for that same
time.
4. I attended the February 4, 1993 meeting of the Council
Committee of the Whale on behalf of the Board. Father than
directly discussing approval of our request , the Council decided
that rescinding their own resolution ion would make the issue mist Cat
least from their point of view? . From the discussion it was clear
that a majority ity would nor vote to pay Mr . Dawns fc, services
rendered to that point , because they felt his services had not been
necessary. We disagree on that point .
5. The Council also asked whether special counsel would be
needed if Council rescinded their direction to sue. I told them
that I felt that there would still be a need for special counsel ,
1
and that I felt a majority of the Beard felt the same. I painted
out that this affair was much larger and more complex than previous
matters handled by the Beard. The Council then asked Al to speak
can the paint , and he said that he did not see the need for special
counsel in the future, if the composition of the Board did not
change. The Council thereupon informally decided only to rescind
their action and not to act directly can our request .
G. Follpwing this meeting, I again polled the Beard (again
not being able to get a response from Jane Rhodes) .. A majority of
the Board felt that we should continue with our efforts tci
intervene in the lawsuit and to get court approval of special
counsel . Based can this, I authorized Mr . Dawns to make a public
statement to the effect that a majority of the Board still felt we
needed an attorney and to intervene in the lawsuit to assist the
Board' s anticipated investigation.
7. When the Council met the following Monday, it rescinded
its resolution of 1/11/93, but did not specifically respond to the
Beard' s request for approval to hire Tom Downs.
8. In the meantime, the question about who are proper voting
members of the Board was raised by members.
9. Our amended pleadings, therefore, raised three issues:
( 1 ) Whether the Board should be allowed to intervene in
the lawsuit regarding ethical matters;
(2) Whether the Board has a right to i special counsel in
this matter ; and
(3) Whether all five members or only the public ones are
allowed to vote can Beard business.
A hearing on this matter was scheduled for Thursday, February 18,
1993.
10. At the hearing, the Court ruled that the Board' s motion
to intervene had not addressed issues that were already a part of
the lawsuit , but only questions as to internal Board matters. EThe40
Court thought the existing parties were adequately addressing the ,
ethical issues involved in the lawsui (a matter upon which I
disagree) . The Court also said that the Charter required prior
Council approval before we could hire special counsel and seek
intervention. Therefore, the Court denied our motion to intervene.
11 . Because we could not intervene in the lawsuit , the Court
could not rule on the question of who should be voting members of
the Board of Ethics. I think the issue is clear , but under present
circumstances, the Beard may want a formal legal opinion on the
point , before proceeding further on any matters. Although I am an
attorney, I do not believe that I should give formal legal advice
to i the board. However , as an attorney, I am also obligated not to
participate in actions authorized by voting procedures that I now
believe violate the law. Therefore, the issue must be resolved
before any further actions are taken can any matters.
12. Legal advice to the beard is normally the province of the
City Attorney. However , here the City Attorney would seem to have
an interest irr the outcome of the question and so, I believe,
should not issue an opinion .on it (under applicable professional
ethics rules as I understand them) . Tom Dawns could give us the
necessary advice, but the Council has not authorized us to retain
him yet . Thus, at this time, our only option is to proceed without
legal advice.
13. Members of the board are already under intense pressure
from involved governmental officials over the Wil-=!,?%/Meissner
requests. Additionally, we have other matters of equal importance
to these why� raised them. Although the Board cannot continue to
operate as it has in the past , action to correct the illegal voting
procedures will probably serve as an excuse to embroil the beard in
further controversy. It will likely be overlooked by the critics
that responsibility for the situation lies with the City Attorney
who failed to notice and to properly interpret plain language Of
the Charter in the first place. All this would have been avoided
if he had.
14. I would think the board would be more confident
proceeding with independent legal advice than without it . For
example, we must decide what changes are required to bring our
rules of procedure in compliance with the Charter ban on city
officials voting on board matters. Can we do this without legal
advice' We must also decide how to legally conduct business in the
interim, until the mandatary rule changes necessitated by discovery
of our illegal procedure became effective. Can we do this without
legal advice-' If Al does not agree that the government officials
should not vote, as the affidavit he gave the City' s lawyers in
opposition to our motion to i intervene indicates, can we safely rely
can his advice as t�� how t�� change the rules to reflect the position
he publicly opposed':'
15. In the event , I believe the choice of attorney should be
left to the public members of the Board, to avoid any political
taint arising from selection by the City Council or the City
Attorney. Continuing inuing pressure on individual members aver the
Wilco;/Meissner requests almost guarantees such taint otherwise.
16. Therefore, I recommend we renew our request for approval
to i retain special counsel to i provide advice as to what to do to
resolve the matter t�� everyone' s satisfaction.
3
J
17. Copies of the correspondence on this issue are enclosed.
Copies of the pleadings filed can our behalf were sent direct to
Beard members by Mr . Dawns.
RECOMMENDATIONS FOR ACTION
A) That the Beard ratify the actions taken by the Chair as
reported;
B) That the Beard, if., necessary, consider whether the City
Attorney can meet our need for legal advice in matters now before
the Beard;
C) That based on that finding, we decide whether to renew
our request to the Council for approval to retain Tom Dawns as
special counsel to the Beard in these matters.
Respectfully Submitted ,
JOHN F. MERTZ
Chair
4
ADDENDUM A
PROPOSED BOARD OF ETHIi_S RESOLUTION
WHEREAS, the Board of Ethics has legal issues before it which
require legal advice t�� resolve; and
WHEREAS, the City Attorney is unable to serve in the capacity
of legal advisor to the Board of Ethics in resolving these issues;
Now Therefore -Be It
RESOLVED, the Lansing Beard of Ethics requests the Lansing
City Council to approve retaining attorney Tom Downs to serve as
special legal counsel to the Board of Ethics in matters now before
the Board in which the City Attorney cannot serve in that capacity;
and Be It Further
RESOLVED, the Lansing Beard of Ethics requests the Lansing
City Council to approve payment of a reasonable fee to Mr . Dawns
for his services.
THE LANS I NG BOARD OF ETHICS
I certify the above resolution is a true copy of the action taken
by the Lansing Board of Ethics at its regular meeting on February
23, 1993.
Marilyn Slade, Board Secretary
C
J
CITY OF LANSINS
BOARD OF ETHICS
CHAIR' S REPORT
Sunday, February 21 , 1993 C10: 34pmi
TO: MEMBERS OF BOARD OF ETHICS
RE: ISSUES WHICH MUST BE RESOLVED BY THE BOARD
In my opinion, the fallowing issues must be addressed and decided
as soon as we resolve the issue of who gets t�� decide them:
a. Are we going to investigate the Wilcox/Meissner matters
or not? If so, what are we waiting for? If not , what are our
reasons far not doing sci':' There certainly seems to be
sufficient public record evidence to demand it . But if so,
are we going to investigate just the latest resolution or what
appears to possibly be a scheme with roots as possibly far
back as 1985?
b. To what extent should we coordinate our actions to i the
timetable of the pending lawsuit? Some of the ethical issues
that may be decided in that suit may effect our findings as
well . However , the only way to stay abreast of events in the
suit is to visit the Court Clerk and read the court file
periodically. Even then, our information�n may be incomplete'..
Who will be responsible for keeping track' ' Should we only
delay our final opinions is ins and/or recommendations ins or all of forts
in this regard? What about the persons and issues not
involved in the lawsuit? The lawsuit does not involve issues
relating to decisions made before April 13, 1992. Any
investigation by the Beard likely will .
C . If we are going to investigate the matter , how are we
going to deal with the legal issues that will undoubtedly
arise without the assistance of outside legal counsel (since
such an investigation will likely include looking at the role
the present City Attorney played) ?
d. The requests for investigation we have do not name some
persons the public record indicate also participated in the
decisions before and including April 13, 1992, and who had
conflicts of interest they did not disclose when they did so.
Nor do the present requests adequately frame the issues we
will want these investigated to respond to. Should we file
complaints with specific charges ourselves, so that all
persons being investigated have adequate notice of what we
believe they did illegally? , Are there any legal issues raised
by doing this (we have no rule authorizing such a move, for
1
example. Dees it matter ) '?
E. Some of the persons likely to be named in any
investigation are currently involved in government and have
participated in the pressure being put on Board members over
the Wilcox/Meissner matters. How long are they entitled to
continue to hide behind the fact we have toot yet opened an
investigation and identified them as subjects ��f
investigation? Are we required by the Charter and our rules
to attempt to keep their names secret? Should they be allowed
to continue to lobby our members in any event?
f. Under an exception in the Open Meetings Act , I believe we
may be able to legally close portions of our meetings to
consider complaints and charges brought against current
government officers and employees (providing they request it
f irst ) . But should- we do so in any event? What about the
public ' s right t�� knew here': Does the exception also apply tc,
farmer officers and employees'? Dees this include the fact
finding process as well as our discussions about what to dr_.
about these matters? How do we resolve the legal questions if
the City Attorney is unable to answer them because he is one
of the persons under investigation'?
g. Our rules (and the Charter ) seem to mandate keeping the
identity of the person involved in the opinion secret when we
consider advisory opinions. However , does that apply to
situations involving prospective conduct only, rather than to
situations involving the consideration of charges that past
conduct violated the law, or bath? If t�� bath, how shall we
maintain the secrecy, if we can' t close our meetings? What
ether procedures should we follow to protect the rights of
these involved, without preventing ourselves from going
forward expeditiously'' How do we implement such procedures if
our rules don' t already contain them-'
h. What is our obligation to i move things forward t�� ensure
that the public will have time to digest our findings before
they have to decide on elections involving candidates that may
have participated in wrongdoing that is not now known to i the
public'' Do we have a duty to reveal or to conceal the
information we have? Don' t we have an obligation to act as
fast as possible to help the public and the Council decide
what to do about the problems created by their past actions on
retirement matters?
i. For the first time, members are insisting ��n the right to
give their personal opinions on Beard business, even if that
differs from the position they took at a meeting. Do we need
to make it clear that their statements are mDt the official
view of the Board? Of what use is a spokesperson, if everyone
else ��n the Board intends to i comment on Beard matters anyway'?
2
Doesn' t this only create unnecessary questions about what the
Beard' s position really is'?
j . What authority shall be granted to the Chair to speak: and
act as spokesperson upon decisions of the Beard or ��n behalf
of the Board between meetings? How often must we meet in
order to take effective response to actions of third parties
occurring between our regular meetings? How d�� we propose to
delegate authority t�� get results between meetings in order to
get our Job dome in any kind of reasonable time frame-' Who is
going to do this work?__
k. How shall decisions of the Board be made between regular
meetings or when there is insufficient time to call a special
meeting? Up to now, I have attempted to poll the Board for
such decisions,ins, seeking a consensus. Some members have been
impassible to contact at critical times, perhaps not
coincidentally. Shall we schedule weekly special meetings
instead of using telephone polls? Some ether procedure
1 . Our rules have no provision for handling investigations,
such as this one (our rules provide for only how to handle
advisory opinions, not complaints or requests for
investigation)? How do we implement such a procedure at this
t i me?
M. Is this scandal beyond our scope? Should we seek to turn
our investigation over to a law enforcement official , such as
the county prosecutor' or seek a grand jury? i=an we handle
-this matter ourselves, if we have no attorney and limited
ether resources available to us' If we choose to recommend
prosecution, of what good�d will that do i if the person we
recommend it to is also involved in the violations':'
n. The public record, when compared to� the dates ��f our
previous opinions, indicates that the Council routinely
ignores our opinions. The City Attorney maintains that he is
under no obligation to either call violations to their
attention, nor to report them to the Board. Under those
circumstances, isn' t any investigation only a complete waste
of time? Dees our responsibility end with any opinion we may
issue (if any)? Do we have any responsibility to follow up to
i
see corrective action is actually taken''
o. Do we wish to be assisted by an attorney in our
deliberations or not? If soy, shall it be Tom Downs? If not
him, who volunteers to try and find another attorney to help
us under current conditions? Should we use one from the City
Att or ney' s approved list , even if they cost more e and knew less
about the issues than Mr . Dawns does? Who should decide who
should serve as special counsel if we need one, the Board, the
City Attorney, or City Council?
3
Many of these issues apply to all matters before the Board.
These are probably only some of the questions we face at this time.
Our meetings over the next few months will last a long time if we
don' t reach some consensus scIc'n on these matters, so that we :an
start to ta[%e action on the problems that the requests for
investigation have brought t�� light .
Respectfully Submitted,
JOHN F. MERTZ
Chair
4
CITY OF LANSING
BOARD OF ETHICS
CHAIR' S REPORT
NOTES DETAILING DATES ACTIONS TAKEN
AND -PERSONS PARTICIPATING AND BENEFITING FROM
THE EARLY RETIREMENT RESOLUTION PASSED 4/11/92 -
Tuesday, January 26 ,- 1993
February 22, 1993 (2: 50am?
NOTES DETAILING DATES ACTIONS TAKEN
AND PERSONS PARTICIPATING AND BENEFITING FROM
THE EARLY RETIREMENT RESOLUTION PASSED 4/11/92
* * * A NOTE ON THE WEIGHT OF THE EVIDENCE * * *
I BELIEVE THAT ALL OF THE FACTS CITED HEREIN ARE INCLUDED IN
PUBLIC: RECORD DOCUMENTS. PUBLIC: RECORDS ARE ADMISSIBLE IN COURT IF
THE RECORD IS AUTHENTICATED OR IDENTIFIED BY EVIDENCE FROM THE
PUBLIC OFFICE WHERE THE DOCUMENT IS KEPT ( I . E. , THAT IT IS WHAT IT
PURPORTS TO BE) . THE WEIGHT TO GIVE SUCH EVIDENCE, HOWEVER, IS UP
.THE-- FINDER - OF FACT. THIS MEANS THAT OTHER EVIDENCE MIGHT BE
'.PRODUCED. THAT WOULD LEAD TO OTHER C CONCLUS IONS THAN THOSE WOULD SEEM
TO FOLLOW FROM EXAMINING THE PUBLIC: RECORD ONLY. WHETHER SUCH
EVIDENCE EXIST IN THIS INSTANCE IS ANOTHER MATTER.
THIS TIMETABLE SHOULD HELP YOU:
(1 ? r .TO SEE HOW WHETHER, OVER TIME, CHANGES WERE MADE TO THE
" RETIREMENT SYSTEM TO BENEFIT TOP OFFICIALS WHILE THESE
EFFECTS WERE DISGUISED FROM PUBLIC KNOWLEDGE;
(2) oTO DETERMINE, BY COMPARING THE LAWS THAT APPLY TO
=.::AMENDING ORDINANCES AND TO DISCLOSING AND HANDLING
CONFLICTS OF INTEREST TO THESE FACTS, IF THE ACTIONS
TAKEN EVADED OR DEVIATED FROM THOSE LAWS, AND TO
DETERMINE (TO SOME EXTENT) WHO PARTICIPATED IN AND
BENEFITED FROM THE ACTIONS;
(3) TO COMPARE THE A!:TIONS TAKEN ON RETIREMENT BENEFITS WITH
THE DATES OF MAJOR INVESTIGATIONS AND OPINIONS OF THE
BOARD TO SEE HOW OUR OPINIONS HAVE BEEN IMPLEMENTED, AND
SEE I F. C:LA I MS BY THE PARTICIPANTS OF IGNORANCE OF THE
LAWS WOULD BE CREDIBLE;
(4) TO DETERMINE IF THE THE EARLY RETIREMENT RESOLUTION
ALLOWED TOP CITY OFFICIALS TO PERSONALLY BENEFIT FOM
1
I
WHAT THE PUBLIC RECORD SHOWS HAPPENED
TO THE RETIREMENT ORDINANCE
BETWEEN 19B4 AND 1993
DATE ACTION TAKEN-PERSONS PARTICIPATING & BENEFITING-COMMENTS
2/6/84 In request to an inquiry from the City Council , the Beard
of Ethics issued Opinion 2, can whether a Councilmember
may-vote on matters in which a conflict of interest
question has been raised as to that member , and if so,
sunder what circumstances. The Board said that "no member
may vote on any question upon which that member has a
conflict of interest or a financial interest ether than
as a citizen of the City. " per Charter Section 3-205. 2.
Later can in the opinion we also quoted Charter Section�n 5-
505.3 that provides "Except as provided by law, no
elective officer , appointee or employee of the City may
participate in, vote upon or act upon any matter if a
conflict exists. " Al Knot participated in this opinion
which was circulated to all Councilmembers.
1/ 14/85 Approximately 11 months later (According W newspaper
accounts) , Council passed Personnel Rules that "tie-bar "
benefits for executive and exempt employees (elected and
appointed may have been included around 1'- to
whatever gains the Teamsters get from cc d 1ect ive
bargaining with the City. This makes the Teamsters the
unofficial bargaining agent of nonunion city officials,
some of whose duties include(d) negotiating and approving
labor agreements at the lowest cost to the City.
I bel ieve tie-barred raises may violate Charter Sections
75205.2 and 5-505. 3, because votes to i approve supposedly
"arms length'_' labor agreements disguise increases , to
"' " benefits for the council and management personnel_ hc
�participate and vote on the matters, particularly when
they don' t disclose their conflicting interests to the
public as was repeatedly the case here. There is no way,
under such circumstances t�� determine if any Teamster
labor agreement since 1985 was bargained for in good
faith and in the best interests of the public , rather
than for the private benefit of the negotiators ors and
others (whose raises in compensation and benefits
depended on the Teamsters getting them first ) .
The Charter provision that allows either the compensation
or the procedure for determining compensation of elected
officials to be altered by ordinance ('Section 2=104) ,
must be read in harmony with Sections 3-205. 2 and 5-
505.3, . which would seem to require something like an
` election to "intervene as to each elected official before
2
- '"°- Tan: increase became effective as to him or her . The
K failure to do so might make the action of questionable
validity under state law, at least as it applies to
elected officials. An increase may also be questionable
as to employees who violate the law against conflicts by
participating in the process without disclosing their
conflicts.
6/24/85 Council , including: Adado, Belen, Benavides, Blair ,
Creamer , Lindemann, Schmidt ?; Worthington passed
Ordinance 702 which amended the retirement ordinance to
%allow executive and exempt employees with 8 years service
ter, mare (Budget Director Jan Lazar & City Attorney Steve
Sawyer were the only affected employees with only 8 years
service credit) to begin drawing their pensions
!-immediately upon termination of employment . At the time,
the ordinance provided that no pension money could be
collected until age 58, unless you had 25 years of
service. Lazar was quoted in The State Journal as saying
that Duarte would get $398, 000. 00 from current age 38
until estimated age 75 under the plan, whereas he would
only get $194, 000. 00 under the old plan, an increase of
$ 04, 000. 00
6/24/85 The public rationale for the plan was that it protected
employees that were being changed over t�� contracts as
"'at-w i 1 1 " employees. However , only Duarte and Lazar met
this criteria, as all ethers had already signed such
agreements. When the plan was challenged with a
referendum of fort , City Attorney Sawyer (Al Knot was then
chief assistant ) ruled the referendum petitions were
invalid, on the basis that the petitions ( filed 29 days
after an ordinance became effective) were too, late,
because they had to be filed within 30 days of the date
of passage, i . e. before ordinance became of feet ive. City
Attorney Sawyer reportedly also gave his legal opinion
(possibly in writing) that even if the ordinance was
repealed, employees could sue to get benefits under
ordinance because it had became effective and the state
constitution prohibited diminishing the benefit or
impairing a contract right . Sawyer stands to benefit
from the action, if confirmed. Nate:' Judge Stel 1 has
recently ruled that compensation is not a contract
' between employees and the City. Also, the common law
would seem to i negate such an agreement if against public
policy, and case law seems to indicate at-will employers
can alter the terms of their employment contracts without
the consent of at-will employees.
6/24/85 The plan would have benefited roughly 25 department and
division heads under the executive pay plan, plus
internal auditors, plus council staff . The group
3
J
benefited included: S. Sawyer , City Attorney who helped
draft the ordinance changes and fought against repeal and
the referendum; S. Duarte, Controller ; J. Lazar , Budget
Director ; and ethers from Personnel and Labor Relations
who participated in formulation and presentation of plan
and who would also have had conflicts. The plan
reportedly originated iginated in the Finance Department :with
Duarte & Lazar ? , but news accounts indicate the idea
originated from Mayer McKane. (Source: State Journal ) .
This plan did not apply to councilmembers, the mayor , or
the city clerk. There were no disclosures filed by any
city government employee who stood to benefit from the
plan and who participated in its formulation and
presentation.
9/5/85 Council ' s Committee of the Whale received an oral opinion
from the Dickinson, Wright law firm (currently defending
the City in court ) that procedural defects resulting from
a difference in the date of the public hearing appearing
in the public record from that actually set make the
ordinance invalid. The law firm issued a supplemental
written opinion on 9/ 16/85 confirming irming the oral opinion.
Council then repealed Ordinance 702, and passed an
T'^entirely new retirement ordinance. (Source: State Journal
A Dickinson, Wright 9/16 opinion:) . Copies of the meeting
minutes from 9/9/B5 along with copies of the retirement
ordinance passed should be requested and compared with
the ordinance it replaced to determine exactly what
changes were made and who benefited by them. Again no
disclosures are filed by anyone who participated in the
passage of the ordinance, even though its passage
immediately benefited some who participated.
4/ 18/88 Council including Adado, Belen, Benavides, Creamer ,
Lindemann, Schmidt & Worthington passed Resolution 196 -
the 1st early retirement resolution. Ostensibly, the
plan was negotiated to i effect a reduction in the
workforce and in General Fund expenditures for Teamster
employees but it was also offered to executive and exempt
employees whose jabs were not being eliminated. The
similarity between the language of this resolution and
Resolution 201 passed in 4/92 is striking, as is the
method by which the early retirement offer was made - by
resolution rather than by amendment to the ordinance.
The legal authority for amending an ordinance by
resolution is still undisclosed.
The plan established a new eligibility formula of age and
service credits totalling "65" ( in place of the old
requirement that you had to be 58 with 8 years service or
50 with 25 years service) for vested employees during a
limited window period. The plan also guaranteed regular
4
pension and health benefits would be same as regular age
& service retirees got . Pension benefits were based can
a 2. 5% multiplier , whereas the pension ordinance
multiplier was 2. 0%. Pension costs of the plan were to
be financed from the retirement system contingency fund.
Presumably health care costs continued to be .funded from
the General Fund. ! Sometime later the retirement
o .dinance was reportedly... amended to make the 2.5%
,,, multiplier apply . .. to all future pensions as well .
(Hoyever , my copy c.f the Cod of Ordinances does not
reflect this. ) We should determine if the multiplier was
raised, and if so; how and when this was done.
The claimed benefit to the city was that union members
hired after 5/1/88 would have to help pay increases in
health care insurance which exceeded 5% per year over
1988 rates. However , this did not apply to executive and
exempt new hires. The City also got to i eliminate the
positions of those union members who retired. This also
did not apply to executive and exempt positions.
The resolution ion amended the ordinance without seeming to
follow the procedure normally required for such a move.
It certainly appears that the Teamsters were used to also
get something for executive and exempt employees, they
wouldn' t have gotten otherwise. There does not appear to
i
have been any relationship between the rationale given to
the public for this action and giving the benefit to
executive and exempt employees.
DOTE: I believe this transaction should be reviewed in
greater, detail through examination of the public records
and minutes ��f the secret meetings held on the subject at
the time, if still available, due to the similarities to
the 1992 early retirement plan.
10/21/88 The Board issued Opinion 5 in which it said that members
of government are absolutely prohibited from voluntary
participation in any situation which involves an actual
and substantial conflict of interest . Copies of this
opinion were supplied to the mayor and all
councilmembers. An educational seminar for department
heads was also held. Al Knot participated in this
opinion.
10/31/88 The Board issued Opinion 6 in which it said that
Councilmembers may not allow ethers over wham they have
influence and control to engage them in situations
involving_ an actual conflict of interest . Again, copies
of the opinion were sent to Mayor McKane and all
councilmembers. Al Knot also participated in this
opinion.
5
12/22/89 Attorney Donald Reisig issued a legal opinion tc- the
Council , confirming the accuracy of Opinions 5 and G.
3/90 S. Duarte In J. Lazar inserted language can page 52 of
Mayer McKane' s proposed 1991 budget that declares it is
a priority to lower the age & service requirements for
"existing exempt , appointed, executive and elected City
employees to collect pension benefits - to effect a
permanent early retirement provision. However , after
Finance Department employee Donna Collins & ethers start
an employee petition drive and lobby influential
councilmembers, the language is removed. (Source: Donna
Collins, farmer auditor ; Page 52 of 1991 budget
proposal ) .
9/17/90 Council, passed Ordinance 823 which permanently lowers age
and service requirements for elected, executive and
,exempt employees, now referred to as "covered positions"
and allows them to i draw retirement benefits as soon as
they qualify, regardless of age. The public is told the
changes are a cast containment measure to limit pension
benefits for new employees. The public is not told that
the changes greatly benefit existing upperlevel employees
and elected officials. The ordinance is given immediate
effect . No disclosures are filed by any City officials,
even though all Councilmembers benefit from the changes.
Others who benefit are the City Attorney, and S, Duarte
and J. Lazar , the latter who are responsible for the
changes being thought up. (Source: Council minutes and
text of changes)
10/9/90 The Beard issues Opinion 11 in which it says that
Councilmembers must file an affidavit cif disclosure
before taking any action on an item even if they have
only an apparent but not an actual conflict of interest .
10/20/90 The Teamsters are offered a retirement package containing
a "permanent early retirement option which has already
been enacted for nonunion employees, per letter from
Personnel Director Karen Jackson dated 11/20/90.
1/22/91 Council , including Belen, Benavides, Brock:well , i=anady,
Crawford, Ford, Lindemann & Schmidt passed and again qave
immediate effect to changes to Ordinance Sections 292. 01 ,
'292. 14 and 292. 311 , claiming they were merely adding
Teamster supervisory and nonsupervis�wry employees and
Distr ict Court employees (exc . .judges) to i the def in it ion
ID f "covered positions" and offering a one time
opportunity for covered employees tc, switch from what the
old defined benefit plan to i the new defined contribution
-rplanj as well as excluding all new employees hired after
0_10129/90 from the old plan t10/1/90 for executives and
6
exempts) . The plan also allowed existing employees to
i
cash themselves c,ut of the retirement system. The
Council had already added elected officials, and
executive and exempt employees to definition, but had
initially (excluded District 11DUrt employees from the
definition. Ordinance Section 292. 01 (t ) . This time,
Section 292. 01 (t ) is amended to include elected
officials, exempt and appointed employees, and executive
management plan employees. (new catagory = appointed
empl,pyees = who does this include?) .
Ordinance Section -'29'2. 14 (c) is amended to allow elected
officials, exempt or appointed employees, or executive
management plan employees ( formerly merely employees) to
i
terminate membership in the cold retirement plan by 4/1/91
(Teamster & District Court t Employees were given to
4/29/91 ) . Quare: Why was this feature passed and who
took advantage of this':'
NOTE: These events tool: place less thane years after the
57ma.jor scandal set off by councilmember Lindemann' s
attempt to profit on a city land sale, and the rest of
the council ' s refusal to even reprimand him for it . SIX
OF THE E I13HT PRESENT i_OUNC:I LMEMBERS PLUS THE CURRENT
MAYOR VOTED FOR THIS ORDINANCE TO TAKE EFFECT IMMEDIATELY
AS TO THEMSELVES. Also involved and benefitting from
this action were members of the Finance Department (and
possibly Personnel and Labor Relations staff, AND THE
PRESENT CITY ATTORNEY.
1/92 Mayer McKane proposes reducing white cellar employees by
means of another early retirement plan. The plan is
developed by Duarte (and ethers?) with consul at ion with
the city' s actuary in February 1992. (2/20/92 letter ) .
NOTE: the letter refers to plan B, What is Flan A?
From the list entitled "Employees Presently Eligible For
Retirement " :
4 are elected officials, 3 of wham
participated in passing the resolution, 2 of
wham tool:: advantage of it, 1 of whom did so to
promote his political protege to the Mayor ' s
.job to give him an advantage in the upcoming
" election as well as for the money, the ether
did it just for the money.
From the list entitled "Employees Eligible For Retirement
After Additional 5 Year ' s Service Credit " :
3 employees, at least 2 of wham solicited the
rationale for the plan from the actuary,
7
developed the plan, and presented and defended
it throughout the process, including the
Committee of the Whale meetings and the
Council meeting of 4/ 13/92, and then took the
benefits themselves; and 02 ethers whci were
present at the Committee of the Whale
'"r meetings, but whose . exact role is unknown
'-' because the minutes are challenged by a
"majority of the councilmembers present at them
as being inaccurate; possibly ethers, when a
list of all who participated is known.
From the list of these who took early retirement :
2 elected officials
7 executive management plan employees
9 exempt employees
63 Teamsters, nonsuper v i scar y employees
48 Teamsters, supervisory employees
TOTAL: 144 employees
NOTE: City officials are unable to state which positions
are actually being eliminated, but pleadings in the
lawsuit claim that only 60 positions will be eliminated,
none cif them elected, appointed, exempt or executive
positions. It is hard to imagine how including these
Officials in the early retirement plan benefited the
City, since paying two salaries fco the highest paid
Positions will make it that much harder to save any money
from the plan. Including them also greatly increases the
number of positions that provide services to the public
that must be eliminated to pay for the plan. (Cost
savings from reductions is the publicly stated way the
retirements are being paid far ) . Additionally, it
appears that all casts ether than the pensions
themselves, will continue to be funded from the General
Fund. (Sources: Finance Dept . submissions and alleged
minutes of Committee of the Whale meetings ��f 3/29/92 and
4/9/92. )
3/16/92 (Per Council minutes) Benavides introduces ordinance to
prefund post retirement health care casts 14 public
hearing is set for 3/30/92. All councilmembers vote in
favor .
3/30/9 (Per Council minutes) Public hearing held, no real detail
explained to or requested by public .
4/13/92 (Per Council minutes &< videotape) Early Retirement
Resolution 201 passed by Council including 2 members on
list as eligible to receive benefits and 2 members who
got promotions as a result of Mayor
McKane taking
8
advantage of the benefit they voted him. Councilmembers
decidely hostile to being asked for details of the plan ,
and tel l thee-publ is it is none of their business. Duarte
evasive when quest ioned `ab�gut the possib i 1 ity of del aying
the part applicable to the _lass of employees he belonged
to. The city Attorney is seen using language in
responding to questions that conceals the fact from the
public_ that the plan also applies to elected officials
and ethers such as Duarte. When the section�n that
benefits Duarte is in peril of being severed, City
Attorney gives his legal opinion that it cannot be
severed because of the tie-bar , and that the "ether
nonunion employees" as he calls them could sue to get the
benefit anyway because of the tie-bar (shades of Steve
Sawyer ' s 19B5 opinion) . There was definite misleading
information given as to the effect of delaying passage to
study it further . The effect of all this was to change
votes and to i ensure passage of the resolution i��n at that
time, and this was done, again with immediate effect as
to the elected officials.
9/24/92 City Attorney gives legal opinion to Councilmember Beal
that plan includes elected officials and could be
rescinded as t�� them, but cannot as to ether employees,
but he does not distribute it to any other
councilmembers. He later claims that such opinions are
for the requesting councilmember only. This policy
appears to be the opposite of what I believe is his
actual professional duty to i the City (which is his
client , not the council or any specific officer ) , which
duty would forbid private opinions to any councilmember
and require disclosure of any requested opinions to all
councilmembers. Unfortunately, Beal does not disclose
the opinion to anyone either . Nothing is done until the
mayor quits early, along with the ciy clerk.
The opinion is interesting in its own right . It is
clearly slanted to discourage any attempt to rescind the
ordinance as to i employees ether than elected officials.
I believe an independent legal review of the opinion
would discredit it . (Source: City Attorney opinion of
NOTE: It keeps on getting more interesting after that .
Council President Canady' s present law firm, farmer law
firm and relatives' law firms get selected for city legal
work, without him disclosing this fact to the public .
The City Attorney, although over his budget by hundreds
of thousands of dollars, hires two of the most expensive
law firms in the state tc i defend the city against a
citizen lawsuit brought to block the resolution without
any lawyer representing them (although they later get
'3
cane? . The firms are hired without prier council
approval , and have not yet to this date ever met with the
Council to discuss the merits of the case or the strategy
to be followed . Citizens who question the wisdom and
propriety of the resolution are attacked, demeaned in
public , and crude attempts are made to discredit them.
Little or no credible attempt , however , is made to
.justify the actions taken .
1/26/93 The-City Attorney declares to the Board of Ethics that he
was not involved in passage of the early retirement
resolution.
10
0
CITY OF LANSING
BOARD OF ETHICS
CHAIR ' S REPORT
NOTES ON 'THE ETHICAL STANDARDS
—THAT APPLY TO OFFICERS AND EMPLOYEES
OF THE CITY
Tuesday, January 26 , 1993 '
i
Monday, February 22, 1993 (4: 18am)
NOTES ON THE ETHICAL STANDARDS
THAT APPLY TO OFFICERS AND EMPLOYEES
OF THE CITY
I
COMMON LAW ETHICAL STANDARDS
(From D. Reisig Opinion of 12/22/88)
Michigan' s C:onstituti6b specifically preserves the farce and
effect of the "common law" (not repugnant to the constitution
itself) that was in existence at the time the Constitution became
effective, until it expires by its own limitations, or is changed,
amended or repealed. Michigan Constitution of 1963, Article III ,
Section 7. However , statutes will not be extended by implication
to abrogate established rules of common law. Silver v Intl Paper
Co, 35 Mich App 469 ( 1971 ) .
The common law with respect to public service was stated by
the Michigan Supreme Court in 1863 in People v Township Beard of
Overyssel , 11 Mich 222, 225:
" . . . CA311 publ is officials are agents, and their of filial
powers are fiduciary. They are trusted with public
functions for the good of the public ; to protect ,
advance and promote its interests, and not their own, and
the Yeater necessity exists than in private life for
removing_ from them every inducement to abuse the trust
reposed in them. . . . "
" . . . CF7idelity in the agent is what is aimed at, and as
a means of securing it , the law will not permit the agent
to place himself in a situation in which he may be
tempted by his can private interests to i disregard that of
his principal . . . . "
The Court of Appeals has also held that a person who undertakes to
act as agent for another may not pervert his powers to his own
personal ends and purposes without the consent of the principal
after a full disclosure of the details of the transaction.
Vander Wall v Midk:iff, 166 Mich App 668 ( 1988) .
Municipal officials who are personally or financially
interested in transactions may not vote or otherwise participate in
the procedure to approve these transactions. Wilson, et al v
Township Beard of Burr Oak, 87 Mich 240 C1891 ) ; Smith v Hubbell ,
142 Mich 637 ( 1906) ; Woodward v City of Wakefield, 236 Mich 417
( 1926) ; Stockwell v Township Beard of White Lake, 22 Mich 341
( 1871 ) .
1
Relying on F' att v Mayer and. Council of Parough
Middlesex County, 9 NJ 548, 89 A2d 1 ( 19E2) in whit_ - f Dunel 1 en in
-h the New Jersey
Supreme Court struck down an ordinance adapted with the vote of two
councilmen who were employed by a corporation benefitting from its
Passage, the Attorney general has opined that a cauncilmember who
votes in such a matter makes the otherwise valid action voidable.
DAG 5864 C3/17/81 i ; DAG 5404 ( 12/14/78) ; DAG 591E V E/8/81 i ; DAG
E27E (3/1/85) .
In 1988, special counsel Don Reisig told the City Council that
"Even without any specific state statute, or city charter
or ordinance provision, there is an inherent fiduciary
duty of fidelity to the public interest can the part of a
public official or employee upon the assumption of public
office or employment . This inherent fiduciary duty and
obligation supersedes any other fiduciary obligations the
Official or employee may owe as an agent or employee of
anyone else, as well as any personal self-interest . "
The above paragraphs are the drawn from the research done by
attorney Reisig, and are paraphrases of material he wrote in an
opinion he prepared for the City Council . I edited this from a
longer passage. The City Clerk can supply anyone lacking one with
a copy of the entire brief.
Mr . Reisig also contended that while city officials and
employees are not required to po ice the conduct of ether officials
and employees per se, nonetheless, when confronted with a situation
involving a conflict or unethical conduct, an official or employee
has a DUTY to confront the issue directly by calling the matter to '
the attention of the offending City official and to the body upon
which he or she sits. Protection from retaliation for such action
is provided by MCL 15. 342(b) , the "Whistleblower ' s Act " . See Reisig
opinion, pp. 38-39.
II
CHARTER ANDORDINANCE ETHIiAL STANDARDS
The relevant Charter standards of conduct have been in effect
since 1975. Violations of the Charter standards is a misdemeanor .
The Ethics Ordinance was passed in 1583. Violation Of the
ordinance is also a misdemeanor . Advisory Opinion No. 2 issued by
the Board of Ethics on 2/E/84, first addressed voting by council
members with conflicts and the necessity of prompt and complete
disclosure. Members with clear conflicts were advised of their
ineligibility to vote at all ;. members with potential conflicts
only, or where the conflict was not clear , could have the council
decide the issue. All members were reminded of their duty to
disclose any conflir_-ts, or ,potential conflicts.
The Board of Ethics has issued S relevant opinions since,
Numbers 5 and 6 in October 1988, and 11 in 1'90— Opinion 5 did. not
announce any new rules, rather it purported to explain the existing
ones, all in one place. It was intended to provide general
guidelines for most circumstances involving a financial conflict of
interest . Opinion 6 said that City officials could not allow these
over whom they have influence cir control to embroil them in
conflicts of interest . Opinion No. 11 required an Affidavit of
Disclosure to be filed even when there is no actual conflict of
interest , but--there is an appearance that one may exist .
III
SPECIFIC STANDARDS OF CONDUCT WHICH APPLY
(From Opinion No. 5)
A. Standards of Conduct : Contracts with the City. When
there is a conflict ict of interest relative to i a public contract
involving an officer or employee of the City, state law supersedes
the Charter and Ordinance and is the sale law as to standards of
conduct and procedures for disclosure. See MCL 15. 321 et seq. ,
entitled, "Contracts Of Public Servants With Public Entities" .
As a general rule, state law prohibits a full time officer or
employee from having direct or indirect business dealings with the
City (although the Charter does not ) . Volunteer and part time
officers and employees may, if state law is complied with, have
business dealings with the City. Violation of this statute is a
misdemeanor .
B. Standards of Conduct : All ether conflicts. In all ether
situations involving a financial conflict of interest , the Charter
sets forth City policy in Subsection 5-501 . 1 , entitled, "Standards
Of Conduct " :
"The people of this City recognize that the continuation
of the proper operation of the City requires that public
officers and employees be independent , impartial and
responsible t�� the people; that decisions ins and policy be
made in the proper channels of government structure;
that members -,f the public have access to information
upon which decisions ins affecting their City are made; that
public office and employment not be used for personal
gain; that the integrity and operation of government be
subject to� scrutiny of the public ; and that acts c�r
actions not compatible with the best interests cif the
City be defined and prohibited . "
Section 290. 01 of the Cade of Ordinances further states that :
"The City hereby declares that elected public office and
public employment is a public trust and any effort to
3
realize personal gain through official conduct is a
violation of that trust . It is the finding of Council
that the people of the City want legislation to ensure
that conflicts of interest of officers and employees are
eliminated to the ful lest extent possible and that
violations of rules of ethical conduct are investigated
and punished, where appropriate. "
Sections 3-205. 2 and 5-505. 3 of the Charter prohibit elective
officers, appointees or employees of the City from participating
in, voting upon, or acting upon any matter if a conflict exists.
Ordinance Section 290. 04 contains specific prohibitions in certain
situations. Ordinance Section 290. 05(a) contains the general
definition of a financial conflict situation:
"N�� officer or employee shall make or participate in
making a decision�n in his or her capacity as an of f icer or
employee knowing that the decision will provide such
of f icer or employee, a member of the of f icer ' s or
employee' s immediate family, or a business with which the
officer or employee is associated, a financial benefit of
more than a deminimus nature which is distinguishable
from the benefits to the person as a member of the publ is
or as a member of a bread segment of the public . "
In Opinion No. 5, the Beard read these provisions together to
mean that officers and employees were absolutely prohibited from
voluntarily involving themselves in transactions that gave rise to
actual substantial financial conflicts of interest between their
private interests and their public duties.
IV
PROHIBITED FINANCIAL_ CONFLICTS OF INTEREST
(From Opinion No. 5)
A. Conflicts which are substantial and avoidable are
prohibited . Financial conflicts of interest which arise without
any action by an officer or employee are called " involuntary" .
" Involuntary" means that the officer or employee had no control or
opportunity to control the conflict situation. Involuntary
conflicts are generally "unavoidable" (although not always so) .
Knowing involvement In a transaction that gives rise to a conflict
is "voluntary" and "avoidable" . Some "avoidable" financial
conflicts, however , are allowed by state law, and may not be
prohibited by local rule. Additionally, "avoidable" financial
conflicts that are actually "de minimus" , while not not encouraged,
are also not prohibited. In Opinion No. 5, the Beard stated that
" . . . EA]voidable conflicts of interest , that involve
substantial financial conflicts, cause lasses of public
confidence in governmental integrity unnecessarily, are
4
against the public interest , and are prohibited by the
City Charter . "
B. Why substantial financial c onflil is are absolutely
prohibited. An "actual and substantial " financial conflict of
interest arises when an officer or employee, their family, or an
associated business, will benefit , in more than a "de minimus" way,
(other than as a member of the general public , or as a member of a
bread segment of the general public ) from an action or decision�n the
!officer or employee is in a position to influence. It does not
matter whether the conflict is apparent to ethers or not . We said:
"The wards "public trust " mean that an officer or
employee holds their position solely for the benefit of
the public as a whole. Officers and employees have
absolutely no right of any kind to profit from their
office, except from the compensation paid for performing
arming
their public duties. Senior members of government are
privy to all sorts of valuable and confidential
information, and works supervise the various P _rk:s of
government . The public has a right to know that
confidential information is not being sold by officers
and employees for private profit to the highest bidder ;
to know that public officers are not getting better
treatment than the public at large; and to know that
their government officials are not getting rich at the
public expense. ''
"However , whether an officer or employee with an
actual and substantial conflict ��f interest c_an ever
completely insulate themselves from the decision making
process of which they are a normal part , is arguable.
Whether they actually do so when they have such a
conflict of interest can never be definitely determined.
The problem becomes more acute the higher in government
an officer and employee is, especially when a conflict
involves someone with oversight responsibilities. There
is a public lass of confidence in government each time a
new substantial financial conflict of interest at the
upper levels of government nment is revealed. ''
"An of f icer or employee with a substantial f inanc ial
conflict of interest is required by City Charter and
Ordinance to abstain from direct or indirect
participation in any way in the governmental decision
making process concerning the matter in which there is a
conflict . The officer or employee may not pursue his or
her personal interests in the matter either , except as
permitted by . . . COrdinance Sections 290. 04 and
290. 053 . . . . "
"However , some of the duties of officers and
5
employees are mandated by Charter or ordinance (such as
voting in the case of Counc ilmembers) . No officer or
employee has the right to voluntarily disqualify
themselves from performing their mandatary public duties
so that they can instead privately profit . On the
contrary, disqualification is an obligation imposed to
insure the integrity of City government . The public is
not served by elected and appointed officials who can
neglect their duties so that they can personally profit . "
"In the opinion of the Board, therefore, any officer
or employee who voluntarily participates in an avoidable
substantial financial conflict of interest situation that
makes it impossible for the officer or employee to
perform his or her mandated duties (except as allowed by
state law) violates the public trust, and may be
committing nonfeasance in the process. "
Therefore, no officer or employee may voluntarily participate in a
situation that gives rise to an actual and substantial financial
conflict of interest which disables them from performing their
mandatary duties (except as allowed by state law) .
V
COMPENSATION OF ELECTED OFFICIALS
Charter Section 10. 104. 1 provides that the i;:ity shall , by
ordinance, determine the compensation or the procedure for
determining the compensation of all officers and employees of the
City. On its surface, this would seem to prohibit compensation
actions taken by resolution.
ion.
Section 2-104. 2 continues the elected officers compensation
commission previously created by ordinance, but provides that the
ordinance should be amended to provide a procedure for calling the
commission together at a time to be determined by the City Council .
The elected officers compensation commission still exists, but I
understand deals only with salary issues. Their records might be
helpful .
Section 2-104. 3 provides that the City may, by ordinance, at
any time alter the procedure for determining compensation of any
officers or employees. Since the multiplier rate as well as ether
retirement benefits are set out in an ordinance, it would appear
these benefits can only be amended by ordinance. Charter Section
301 . 1 (c ) .
These provisions must be read in con.junct is in with Charter
Section 3-205. 2 which prohibits counc ilmembers from voting on any
question upon which that member has a conflict of interest or a
financial interest ether than as a citizen of the City. "
E
Additionally, Charter Section 5-505. 3 bars (except as provided by
law) elective officers, appointees or employees of the City from
"participating in, voting ing upon or acting upon any matter if a
confl ict exists. ''
Article 11 , Section 3 of the state constitution provides that
"Neither the legislature nor any political subdivision of
this state shall grant or authorize extra compensation to
any public officer , agent or contractor after the service
has been rendered or the contract entered into. ''
The retirement ordinance contains a provision that prohibits giving
credit for more than a year of service for each year of service.
Ordinance Section 292. 24. The early retirement resolution,
however , gives 5 years additional service credit to those who take
advantage of it . I do not know by what authority Section 292. 24,
or any ether ordinance prevision, could be modified by a mere
resolution ( including the multiplier provision, Ordinance Section
292. 21 ) .
VI
DISCLOSURE OF FINANi:IAL i:ONFLICTS OF INTEREST
A. When disclosure must occur . Section 5-505. 1 of the City
Charter requires that an officer or employee who may derive any
income or benefits either directly or indirectly in addition to
official remuneration as a result of Council action or a contract
with the City shall file an affidavit with the City Clerk setting
forth the details at least 10 days prier to any action. Notice of
such filings shall be included in the Council agenda. Although
this provision does not apply to conflicts involving official
remuneration, the Beard has ruled that this procedure applies to
all financial conflicts of interest whatever the source.
Disclosures of all ether conflicts go to the City Attorney. Section
5-505 .
The Beard has repeatedly held that bath the Charter and
Conflict of Interest Ordinance require prompt disclosure of
complete and specific details in order to satisfy the requirement
of a full disclosure.
The intent of these requirements is to provide the public as
well as the Council (and ether affected officials) advance notice
of any conflicts before they take any action on the matter . This
is why disclosure of a conflict must occur at the first moment the
official is in conflict . Where an officer or employee serves on a
governing body responsible for approval of the matter in which
there is a conflict , the disclosure must be simultaneously filed
with the governing body (the Council President , in the case of
Councilmembers) and be included in the public record of the
7
proceedings of that body.
Last minute disclosures, except in an unusual circumstances,
do not comply with the Charter . However , in the event the issue
unavoidably arises for the first time at a particular meeting, oral
disclosure of the nature of the conflict and the reasons for
excusal or nonexcusal from voting should d always appear in the
record of the meeting . An Affidavit of Disclosure must then be
filed as soon as practible after the meeting.
The Charter requires an Affidavit of Disclosure be filed
whether a member votes on the matter or not. Also, being excused
from voting does not absolve any prior actions on the same matter
which were in conflict.
If an officer or employee has a confl itt of interest , whether
or not he or she has filed an Affidavit of Disclosure, he or she
may not officially or unofficially participate in the discussion or
consideration of the item in conflict in any way, shape, or farm,
either directly or indirectly, in person or by representation,
either in furtherance of his or her public responsibilities or his
or her private interests, at any stage of the consideration of the
matter with a conflict , except in compliance with Ordinances 290. 04
and 290. 05.
VII
THE ROLE OF THE BOARD OF ETHICS
The Beard of Ethics appears to be an advisory board (to both
the executive and legislative branches of city government )
established by the City Charter . Charter Article 5, Chapter 1 ,
Sections 5-101 , 102, 5-103, 5-105, 5-10S, 5-10S.
The Charter establishes the membership of the Beard as
including the City Attorney, the City Clerk and three public
members appointed by the City Council . Article 5, Chapter 5,
Section 5-502. 1 . However, only the three public members appear to
be eligible to be voting members of the Hoard, because Charter
Section 5-104 says "No person holding another City office or
activity employed by the City shall be eligible to be a voting
member can any beard. "
The Charter states the purpose of the Beard is to provide an
orderly procedure for consideration and review of issues which
arise concerning the standards of conduct required of public
officers and employees. Charter 5-501 . 2
In performing this function, the Beard renders advisory
opinions as to the meaning and application of those charter
provisions and ether laws which establish standards of conduct for
public officers and employees. Charter 5-503. 1
8
The Beard also investigates complaints of violations of the
standards of conduct , and may recommend prosecution of violations
by the City Attorney, in appropriate cases if it finds probable
cause to believe a violation of these standards has occurred .
Ordinance 290. 03(a) .
The Beard also recommends to the City Council standards of
conduct for officers and employees, and changes in the procedures
related to the administration and enforcement of those standards of
conduct .
Finally, the Beard reviews any documents required to be filed
under ordinances establishing_ standards of conduct . Charter 5-
The Ethics Ordinance provides that , "All governmental bodies
shal 1 assist the Beard of Ethics and the City AttorneyI s of f ice in
investigating any complaints regarding passible violations of this
chapter and in prosecuting any violations of this chapter . "
Ordinance Sec . 290. 06.
VIII
THE BOARD MEMBER CONFLICT OF INTEREST CONTROVERSY
Charter Section 5-502. 5 provides:
"If any issue before the Board involves any member of the
Beard, the City Council shall appoint an additional
member or members to i sit for the purpose of that
determination in place ��f the member or members
involved. "
Board members must recuse themseves from participating in a
Beard matter under the same rules that apply to i all ether officers
and employees. They have a charter imposed duty to i do so when any
issue involves a clear conflict of interest for them. In the event
the conflict is unclear , then the remainder of the Beard, not the
City Council , is the appropriate body to resolve the question.
In Beard Opinion No. 7, we said that the Beard " . . , used the
usual dictionary meaning of ' involved' . . . . . . and whether a member ' s
conduct was "the focus of the investigation. . . . " as the determining
tests. Of course, " involved" can have a broader meaning than that .
In Opinion 7 we also said that :
"The Beard of Ethics is the only body in City government
that is empowered to render advisory opinions with
respect to the meaning and interpretation of these
provisions of the Charter and ether laws establishing
standards of conduct for officers and employees of the
City of Lansing. The Board' s advisory opinions are only
issued by a quorum of the Board at a duly noticed iced public
meeting. ''
NOTE: It should be noted that the City Council is empowered to
decide conflict of interest questions as to its own members which
arise at one of its meetings. Charter Section 3-205. %wever , It
can be argued the intent of the prevision is not to avoid referral
of ethics questions to the Beard, but only to provide an alternate
procedure in such an instance where referral would unduly delay
public_ business.
The Beard has based every one of its prier opinions can a
careful and thorough Hugh fact-finding process, which substantially
corroborated the factual assumptions upon which the opinion was
based. Additionally, the Beard has always relied can legal advice
when construing the meaning and application of these charter and
rather local provisions establishing standards of conduct for
officers and employees, and upon the latest case law
interpretations when construing state laws which establish such
standards of conduct . Every effort is expended to render complete
and accurate opinions, upon which the affected parties can rely
with confidence.
1��
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, DULY 139 1993 - 5:00 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:00 P.M. in the Ninth Floor Conference Room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Stuart Dunnings, Jr. Special Member
BOARD MEMBERS ABSENT:. None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Karen Brewington, City of Lansing Personnel Director
Susan G. Wager, City of Lansing Deputy Personnel Dir.
Margaret Herp, [no address given]
Vivian Bloom [227 S. Eighth]
Karen Stangry, WLNS - TV 6
Amy Jordan, WKAR - Channel 23
Walter Jones [215 Rumsey]
Rita Deason [2936 Quincey Ln.]
Mary Rozzen [14552 Bartlett]
Russell Smith [403 Rosadell]
Grace & L. Keith Chism [2740 Morningside]
Donna & Dick Collins [225 Moores River Dr.]
Gordon & Beth Osborn [2500 Boston Blvd.]
K. J. Langschwager [1328 Prospect]
NEXT SPECIAL MEETING DATE:
Tuesday, July 20, 1993 7:00 P.M.
Monday, August 2, 1993 8:00 A.M.
APPROVAL OF AGF'"DA
Member Rhodes suggested that the agenda be adjusted to move Public Comment
up to follow approval of the Agenda. It was the consensus of the members present that
the agenda be adjusted.
PUBLIC COMMENT
There were no public comments
APPROVAL OF MINUTES
Motion by Public Member Cook to approve the minutes of Special Meetings of the
Board held on June 8, and July 1, 1993 as submitted. Motion Carried 510
SECRETARY'S REPORT
City Clerk Slade reported receiving notice that Mr. Sonnanstine, Mr. Putney, and
Councilmember Beal would not be available to attend tonight's meeting.
CHAIR'S REPORT
The Chair did not make a report
OLD BUSINESS:
Early Retirement Investi-ation
The Board Interviewed Susan Wager, Deputy Director of Personnel for the City
of Lansing regarding the Early Retirement plan. This interview is taped and the tapes
will be kept on file in the City Clerk's Office.
Motion by Special Member Dunnings to adjourn. Motion carried 510. Meeting
adjourned 8:50 P.M.
Respectfully submitted,
DEBORAH K. MINER
Recording Secretary J-U
Date Approved: " Ci
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
THURSDAY, JULY 1, 1993 - 5:00 P.M.
NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:10 P.M. in the 9th Floor Conference Room, City
Hall, Lansing, Michigan by Vice-Chairperson Cook.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson {arrived at 5:15 P.M.}
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Stuart Dunnings, Special Member [voting only on early retirement issues]
Alvan Knot, City Attorney [voting only on other issues before the Board]
A QUORUM WAS PRESENT
OTHERS PRESENT:
Karen Brewington, City of Lansing Personnel Director
Russell Smith, 403 Rosadell
Cherryl Valleau, 226 W. Eighth
Gary Miles, Lansing State Journal
Margaret Herp, 906 Stanley Street
Colin Delaney, 1314 W. Shiawassee ; =
Tom Frazier, 9th floor, City Hall
Lloyd Teets, 116 E. Elm Street
Jim Crawford, Mayor
Alvan P. Knot, City Attorney
a.:
Howard Jones, 426 W. Barnes cn'o
Jackie Porter, City of Lansing Finance Department
Dick Collins, 225 Moores River Drive
NEXT SPECIAL MEETING DATE:
July 13th, 1993; 7:00 P.M. for a Special Meeting regarding Early Retirement
July 20th, 1993; 7:00 P.M. for a Special Meeting on other Board matters
1
APPROVAL OF AGENDA:
Member Dunnings suggested that we adjust the agenda to take public comments first,
followed by early retirement interviews and finish with the request for opinion
regarding the Sparrow Hospital expansion. Members present concurred with this
change.
PUBLIC COMMENT:
Mayor Jim Crawford stated that he was incensed to see on the front page of the
State Journal that he was being investigated by the Board. He assumes that he
would be notified if he was being investigated and he has received no notification.
It is poor timing to begin such an investigation 4 weeks before an election. The
Mayor asked members of the Board to replace the Chairperson of the Board as he has
a political agenda.
Lloyd Teets of 116 E. Elm Street stated that he was one of the citizens who asked
the Ethics Board to investigate the early retirement plan. He stated that the delays
in this investigation have not been caused by the Board but by the Mayor and
members of City Council.
OLD BUSINESS:
The Board interviewed Karen Brewington, Personnel Director of the City of Lansing,
and Alvan Knot, City Attorney, regarding the early retirement plan. These interviews
were taped and the tapes will be kept on file in the City Clerk's Office.
The Board directed Secretary Slade to invite Alan Sonnanstine and Richard Putney to
attend the next special meeting for interviews relative to the early retirement
investigation. Secretary Slade was directed to send letters to Susan Wager and Ellen
Beal in the event that either Mr. Sonnanstine or Mr. Putney are unable to attend.
The early retirement portion of the agenda concluded at 7:45 P.M. and Member
Dunnings left the meeting. The next special meeting to be held regarding early
retirement is scheduled for July 13, 1993, at 7:00 P.M.
NEW BUSINESS:
Chairperson Mertz stated that he had received an Affidavit of Disclosure of Conflict
of Interest from Council President Mark Canady regarding voting on matters involving
Sparrow Hospital. He also received a request for an opinion from Councilmember
Lucile Belen asking for the Board to rule as to whether she would be in conflict by
voting on the matters involving Sparrow Hospital.
2
It was agreed that the Board would send a letter to Council President Canady stating
the Board's understanding that he should prohibit himself from voting on the Sparrow
issue based upon State Bar rule C-241 and to attach a copy of this rule to his letter.
It was agreed that the Board would send a letter to Councilmember Belen stated that,
based upon information provided in her letter, the Board does not see that she has any
conflict of interest that would prevent her from voting on any issues involving
Sparrow Hospital.
Motion by Member Rhodes that the Board is directing Secretary Slade to send these
letters to Councilmember Belen and Council President Canady regarding their
disclosures.
VOTE: 5/0
Chairperson Mertz then distributed a draft of opinion #17 for review by Board
members.
Member Knot suggested that the wording "as long as either existing relationship
continues" be added to the last line of the opinion paragraph.
Motion by Chairperson Mertz to approve opinion # 17 as amended; that the City Clerk
will make the opinion available for signatures in the morning and will notify members
of same; that, upon signing by all members, the opinion will be delivered to the
affected Councilmember; and, upon delivery to the Councilmember, it will be available
to the public at large and that the Chairperson will notify the affected Councilmember
as a courtesy tonight.
VOTE: 5/0
The next special meeting of the Board to deal with matters other than the early
retirement investigation was set for July 20, 1993, at 7:00 P.M.
Motion by Vice Chairperson Cook to adjourn.
VOTE: 5/0
Meeting adjourned 8:35 P.M.
Respectfully submitted,
MARILYNN SLADE
Secretary
Date Approved: '�3
3
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, JUNE 8, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 4:55 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Stuart Dunnings, Jr. Special Member
Alvan Knot, City Attorney
A QUORUM WAS PRESENT
OTHERS PRESENT: c
Deborah K. Miner, Recording Secretary
NEXT SPECIAL MEETING DATE:
July 1, 1993; 5:00 P.M.
OLD BUSINESS: N
Rules of Procedure
Chairperson Mertz asked that Board members review Draft 2 of the rules of
procedure before the June 22, 1993, regular Board meeting.
Early Retirement Investigation
Al Knot, City Attorney, asked that he not be sent copies of correspondence or
agendas that pertain to the Early Retirement issue. These materials should be sent
to Mr. Dunnings, the specially appointed representative replacing Mr. Knot for the
investigation of the Early Retirement Incentive Plan. He stated his assumption that
his absence at meetings which pertain to Early Retirement would be excused. He
requested that these comments be put on the record.
1
Following this discussion, it was the consensus of the Board that an attempt
would be made to keep the investigation of the Early Retirement issue to special
meetings and all other issues before the Board to regular meetings.
The Board discussed the names of individuals who might be involved in the
investigation of the Early Retirement, some of the issues involved, and options that
the Board may wish to exercise. They identified the following four people as being
of interest to them the course of this investigation and agreed to invite them to a
special meeting to be held July 1 , 1993 at 5:00 P.M.: Richard Putney, Former Labor
Relations Director for the City of Lansing; Susan Wager, Deputy Director of Personnel
for the City of Lansing; Ellen Beal, First Ward Councilmember for the City of Lansing;
and James Blair, Former City Clerk of the City of Lansing. City Clerk Slade agreed to
write letters inviting these individuals to appear. It was agreed that these people
would be asked to respond within 7 days as to whether or not they could attend.
City Attorney Al Knot is to be invited to attend if any of the above people cannot
appear.
Member Rhodes asked to go on the record that she does not approve of
Councilmembers making statements about what happened in a Board of Ethics
meeting before the minutes of that meeting have been made available to the Board
members.
Motion by Special Member Dunnings that the tapes of the meetings of the
Board of Ethics will not be available for copying, or inspection, until 8 days after the
meeting, at the same time written minutes of the meeting are made available, and that
the copying of the tapes will be supervised by the Secretary of the Board.
Motion carried 5/0.
Motion by Special Member Dunnings to adjourn.
Motion carried 5/0. Meeting adjourned 7:00 P.M.
Respectfully submitted,
DEBORAH K. MINER
Recording Secretary
Date Approved: - (`3 -Cl 3
2
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, APRIL 27, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:07 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Marilynn Slade, City Clerk
Stuart Dunnings, Special Member
Jane Rhodes, Public Member (arrived 5:25 P.M.)
BOARD MEMBERS ABSENT:
Alvan Knot, City Attorney
A QUORUM WAS PRESENT
OTHERS PRESENT: '
Deborah Miner, [Recording Secretary]
c
Paul Scott
Debbie Heefner
Gary Andrews
Lloyd Teets
Lisa Farrell, TV-6 News
APPROVAL OF AGENDA: co
The agenda was amended to remove the following items:
-Under Committee of the Whole, Opinion 17
-Under Old Business, Amendments to the Rules of Procedure, Draft 1
-Under Old Business, Leeman Investigation #1 (Opinion 17)
-Under Old Business, Revised Ethics Ordinance, Draft 1
The agenda was approved as amended.
1
SECRETARY'S REPORT:
APPROVAL OF MINUTES:
Approval of the minutes for March 30, and April 13, 1993 was deferred until
the next meeting, scheduled for May 25, 1993.
CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING:
-Resolution from the City Council appointing Stuart Dunnings as a Special
Member to the Board of Ethics
-Resolution from the City Council returning the proposed Rules of Procedure for
the Board of Ethics unadopted
-Letter from Andrew Abood regarding the voting status of the City Clerk and
the City Attorney on the Board of Ethics
-Response received from Council President Canady regarding the Andrews
request
DISCLOSURES OF FINANCIAL CONFLICTS FILED SINCE LAST MEETING:
Affidavit of Disclosure from Councilmember Alfreda Schmidt
NEXT MEETING DATE:
May 25, 1993
INQUIRIES AND COMPLAINTS RECEIVED SINCE LAST MEETING:
None
CITY ATTORNEY'S REPORT:
The City Attorney was not present to make a report.
SPECIAL COUNSEL'S REPORT:
Ethical/Legal Issues Involved in Early Retirement Lawsuit
Member Dunnings stated that he will attempt to get information and/or copies
of the pleadings in the Early Retirement Lawsuit from both the Defendants and
Plaintiffs in this case.
2
CHAIR'S REPORT
Welcome to Soecial Member
Chairperson Mertz welcomed Mr. Dunnings to the Board and lauded his
expertise.
Term of Office
Chairperson Mertz said that he has received documentation from the City Clerk
regarding his term appointments and has also conducted his own research. He has
been appointed to three 4 year terms. His current term will expire June 30, 1994.
He suggested that Board members Don Cook and Jane Rhodes may want to do similar
research regarding their terms of office on the Board.
Correspondence Regarding Recording Secretary
Chairperson Mertz stated that he had received an inquiry from Councilmember
Brockwell regarding the status of Fran Knot as Recording Secretary for the Board.
Member Dunnings suggested that Chairperson Mertz write a letter to Councilmember
Brockwell stating the Board's intent to have the City Clerk determine who will serve
as Recording Secretary for this Board and thanking Mrs. Knot for her assistance to the
Board in the past.
Early Retirement Correspondence Received
Letter from Steve Harry, President of Concerned Citizens to Save Lansing,
regarding the Early Retirement Program.
Two letters from former Mayor Gerald Graves regarding the Early Retirement
Program.
Voting Membership/Proposed Rules Revisited
It was the consensus of the Board that they would continue to use the old rules
of procedure at the present time. .
Determining the Procedure for the Early Retirement Matter
Chairperson Mertz distributed a copy of the 10/11/88 Minutes of the Board to
all members present. He suggested that Members review the process defined in these
minutes for possible application to the Early Retirement Matter before the next
meeting.
3
PUBLIC COMMENT
Lloyd Teets stated that he agrees with Mr. Dunnings completely; the Board
needs a declatory judgement to determine who is and who is not a voting member.
He feel that the Charter provides Boards with a certain amount of independence and
that Council may object to, but cannot reject, the rules of procedure proposed by this
Board.
Gary Andrews said that he attended some of the Charter hearings and the
Ethics Board was designed to abolish cronyism and collusion in the use of City
contracts. He said that the Committee of the Whole has approved a revised set of
minutes for the meeting in which his disagreement with Councilmember Brockwell
took place. They have removed some of the names of the people who attended that
meeting from the minutes. The minutes of that meeting should reflect what actually
took place. He is worried that the Board's investigative process is being obstructed
in this instance. These meetings are always taped. He does not believe that there
is no tape of this meeting. He has been told that orders were issued to destroy the
tape.
Motion by Member Cook to move to the Committee of The Whole. Motion
Carried by 4/0 vote, Member Dunnings not participating.
COMMITTEE OF THE WHOLE
Opinion #15, Klco Disclosure
The City Clerk will have this opinion typed and available for approval and
signatures on an individual basis.
Opinion #16, Knechtel Disclosure
Deferred to the next meeting.
Wilcox\Meissner Investigation
It was agreed that all Board members will put together a list of issues and of
individuals possibly involved in this investigation for review at the next meeting. It
was agreed that this list should be based upon complaints received from the public
regarding this matter.
Motion by Member Cook to rise from the Committee of the Whole and return
to Old Business. Motion carried 4/0, Member Dunnings not participating.
4
OLD BUSINESS (Open Session):
Revised Ethics Ordinance Draft 1
Removed from the agenda
Amendments to Rules of Procedure Draft 1
Removed from the agenda
Leeman Investigation #1
Deferred to- the next meeting. Member Rhodes distributed a draft copy of
Opinion # 17 for review by Members before the next meeting.
Klco Disclosure (Opinion #15)
Motion by Member Cook to approve draft #2 of opinion #15 subject to it's
amendment to final form. Motion Carried 4/0, Member Dunnings not participating.
Knechtel Disclosure (Opinion #16)
Deferred to the next meeting.
Wilcox/Meissner Request for Investigation
Deferred to the next meeting.
Andrews Reauest for Investigation
Deferred to the next meeting.
Leeman Request for Investigation #2
Deferred to the next meeting.
Leeman Re guest for Investigation #3
Deferred to the next meeting.
Correspondence to Council Re: Observance of Council Rule 14
Deferred to the next meeting. Member Rhodes will bring a draft to this
meeting.
5
NEW BUSINESS:
Recusal of City Clerk in Wilcox/Meissner Matters
Motion by Member Rhodes "should the City Clerk be recused from participating
in the early retirement investigation currently before the Board of Ethics". Motion
defeated by the following vote 0 Yeas/4 Nays, Member Slade abstaining.
Lilly Disclosure
Moved to Old Business
Derby Disclosure
Moved to Old Business
McWilliams Disclosure
The City Clerk will write to Mr. McWilliams and invite him to attend the next
meeting on May 25, 1993.
Wager Disclosure
The City Clerk will write to Ms. Wager and invite her to attend the next meeting
on May 25, 1993
Response to Brockwell Correspondence
Chairperson Mertz will write a letter responding to Councilmember Brockwell's
inquiry and thanking Mrs. Knot for her past help.
BOARD ROUNDTABLE/ANNOUNCEMENTS/ADJOURNMENT:
Motion by Special Member Dunnings to adjourn. Motion carried 5/0. Meeting
adjourned at 8:22 P.M.
Respectfully submitted,
yy� %
DEBORAH MINER
Recording Secretary
Date Approved: 6/29/93
6
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, APRIL 13, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:03 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz; Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
BOARD MEMBERS ABSENT:
Al Knot, City Attorney
A QUORUM WAS PRESENT G�y c3
OTHERS PRESENT: ,, .�
Gary Andrews [560 Brookland Blvd.]
Harold Leeman [529 N. Francis] �y
Paul Scott [412 W. Kilborn] >:
Suzanne Wood [Lansing State Journal]
APPROVAL OF AGENDA:
Chairperson Mertz announced that, without objection, we would proceed with
the Agenda.
SECRETARY'S REPORT:
CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING:
Received:
-Letter from Todd Derby relative to Elected Officers Compensation Commission
-Letter from Gerald W. Graves, 1623 S. Genesee Dr., relative the early
retirement plan and use of city community promotion accounts
-Letter from Marilynn Slade regarding recusal from participation in the early
retirement investigation
1
Sent:
-Letter to Amy Magistro, Purchasing Supervisor, requesting information for
Leeman Investigation # 2
-Letter to Mark Canady requesting written response relative to Gary Andrews
Investigation
-Letter to Board from Secretary Slade relative to affidavits of disclosure on file
relative to Leeman Investigations # 2 and # 3
DISCLOSURES OF FINANCIAL CONFLICTS FILED SINCE LAST MEETING:
Disclosure received from Melvin McWilliams
Disclosure received from Susan Wager
INQUIRIES AND COMPLAINTS RECEIVED SINCE LAST MEETING:
None
NEXT MEETING DATE: April 27, 1993
CHAIR'S REPORT:
The Chair's Report was reviewed. Chairperson Mertz read a memo received
from Terese Horn of City Council Staff regarding taping of the Board meetings.
Motion by Member Cook to tape all meetings that are held in this Committee
Room.
CARRIED 3-0
Secretary Slade was directed to properly label the tapes and store them with
the minutes and other records of the meeting.
Chairperson Mertz reported that he has submitted a letter to the City Clerk
requesting that she investigate and report back on when his term of office on the
Ethics Board expires. Council appointed him to a four year term and the Charter
states that the Board members have a three year term. He advised other Board
members to also check on their term dates.
Chairperson Mertz reported that he had planned to submit some revisions to the
rules of the procedure but since the Board has not received anything back from City
Council regarding the interim rules, he feels the Board should wait to see what action
Council takes.
Motion by Member Rhodes to postpone consideration of rules changes until the
2
April 27, 1993 meeting.
CARRIED 3-0
OLD BUSINESS (Open Session):
Board members reviewed the first draft of Opinion #15. Several suggestions
for change were made to this Opinion and it was agreed that a new draft will be
brought back to the April 27, 1993 meeting.
Board members reviewed the first draft of Opinion #16. Several suggestions
for change were also made to this Opinion and a new draft will be brought back to the
April 27, 1993 meeting
It was suggested that Board members review Chapter 206 of the Code of
Ordinances regarding purchasing before the next meeting.
A discussion was held on Leeman Requests for Investigation # 2 and # 3.
Chairperson Mertz stated he will try to locate a co
PY of State Bar Cl 21
which would aid in the Leeman Investigation # 3. Secretary Slade wOas pinion directed to
provide a copy of the February 1, 1993 City Council minutes to Board members for
the Leeman Investigation # 3.
Member Rhodes stated that she would be sending a letter to City Council
reminding them of Rule # 19 and the requirements of that rule before the April 27,
1993 meeting.
PUBLIC COMMENT
Harold Leeman inquired when an opinion will be done on his request for
Investigation # 1. Chairperson Mertz responded that a draft will be available for the
April 27, 1993 meeting.
Gary Andrews raised a question regarding Councilmembers who are under
investigation voting to place Stuart Dunnings on the Ethics Board. Chairperson Mertz
responded that the Board has not named anyone except the City Attorney thus far.
Gary Andrews then detailed what he feels has been harrassment by the hired city
attorneys in their attempts to depose him with regards to the early retirement suit.
BOARD ROUNDTABLE/ANNOUNCEMENTS/ADJOURNMENT:
Motion by Member Rhodes to adjourn the meeting.
CARRIED 3-0
3
Meeting adjourned at 6:38 P.M.
Respectfully submitted,
'&Ck '
MARILYNN SLADE,
Secretary
Date Approved: 6/29/93
4
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, MARCH 30, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:03 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz; Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
BOARD MEMBERS ABSENT:
Al Knot, City Attorney {Arrived at 6:08 P.M. and left at approx. 8:00 P.M.}
A QUORUM WAS PRESENT
OTHERS PRESENT:
Gary Andrews [560 Brookland Blvd.]
Harold Leeman [529 N. Francis]
Bernie Meissner [635 LaSalle BI.]
Paul M. Scott [412 W. Kilborn]
Suzanne Wood [Lansing State Journal]
Greg Klso [293 Foxview, Mason]
Chris Payette [of Payette & Associates]
Don Knechtel [12613 Universal Drive, Taylor]
APPROVAL OF AGENDA:
Motion by Member Cook to approve the agenda.
CARRIED 3-0
SECRETARY'S REPORT:
Member Slade announced that we have the minutes of January 26, 1993 and
February 23, 1993 to approve.
1
Chairperson Mertz stated that the January 26, 1993 minutes need to be
amended to correct the date on the first page heading to be January 26, 1993 and
not January 26, 1992.
Motion by Member Cook to approve the January 26, 1993 minutes as
amended.
CARRIED 3-0
Motion by Member Cook to approve the February 23, 1993 minutes.
CARRIED 3-0
CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING:
Member Slade provided the Board with copies of the following correspondence
received since last meeting:
-Memo from Councilmember Rick Lilly dated 3/16/93
-Memo from Francesca Knot attaching a copy of letter from Todd Derby dated
3/25/93
DISCLOSURES OF FINANCIAL CONFLICTS FILED SINCE LAST MEETING:
There were no new disclosures received.
INQUIRIES AND COMPLAINTS RECEIVED SINCE LAST MEETING:
None
NEXT MEETING DATE: April 13, 1993 for a special meeting and April 27, 1993 for
the next regular Ethics Board meeting
CITY ATTORNEY'S REPORT:
Member Knot was not present at this time so no report was given.
CHAIR'S REPORT:
The Chair's Report was reviewed and will be attached to the meeting minutes.
Chairperson Mertz reported that Member Slade will be ordering copies of
Mason's Manual of Legislative Procedure for all of the Board members.
2
Chairperson Mertz reported that he will draft some revisions to the Rules of
Procedure for the Board; in the interim the Board will be governed by the Rules
submitted to City Council on 3/19/93 when approved by Council.
PUBLIC COMMENT
Councilmember Lilly stated that, as a member of Council and independent of
anyone else, he would like to apologize to the Board for what happened yesterday
{3/29/93 Committee of the Whole Meeting). He stated that he feels the Rules of
Procedure should be revised to more clearly define them and supports the proposed
effort in this regard.
Gary Andrews reviewed his complaint filed with the Board on 1/20/93. He
requested the Board to again ask City Council for the items requested as a result of
the 2/23/93 Ethics Board meeting.
Harold Leeman apologized for his anger at the 2/23/93 meeting and stated he
was pleased that the Board will be reviewing his Request for Investigation # 1 this
evening.
OLD BUSINESS (Open Session):
At this point, Member Knot came into the meeting.
Member Knot reported that he did not have a Revised Ethics Ordinance to
present as he had further corrections he would like to make and that he hopes to have
this Revised Ordinance ready to bring to the next Board meeting.
A discussion was held regarding the Leeman Request for Investigation # 1 .
Member Knot stated that he felt there was a possible issue of a breach of contract
with Cristo Rey in that the contract forbids political activity but that this is a legal
issue and not an ethical one as defined by the Charter.
Member Rhodes agreed to prepare a draft copy of an opinion regarding the
Leeman Request for Investigation # 1 .
A discussion was held regarding the Andrews Request for Investigation. Board
Secretary Slade was instructed to write a follow-up letter to City Council requesting
a written response to the Board request of 2/24/93 for information pertaining to the
Andrews investigation. Secretary Slade was asked to add a request for copies of the
attendance sign-in log for the January 7, 1993 Committee of the Whole meeting to
this request. If possible, the Board would like to receive this written response from
City Council before the next Board meeting.
3
A discussion was held on the Knechtel Disclosure. Don Knechtel was present
and responded to questions from the Board regarding his disclosure. Motion by
Member Cook that Mr. Knechtel's disclosure to the Board was not sufficient.
CARRIED 3-0
Member Rhodes agreed to draft an opinion regarding the Knechtel Disclosure.
A discussion was held on the Klco Disclosure. Gregory Klso was present and
responded to questions from the Board regarding his disclosure. Member Cook agreed
to draft an opinion regarding the Klco disclosure.
During the discussion with Mr. Klco, it was discovered that Council staff was
taping the Board meeting at the direction of Council President Canady. At this point,
Member Knot left the meeting. Chairperson Mertz stated that he wants it included in
the record that he instructed Francesca Knot not to continue taping of the meeting.
It is his opinion that the official use of the taping system for this meeting room is for
the exclusive use of the Board while meeting and tapes may be made on the system
only at the direction of the Board. He further stated that any such tapes would be in
the same category as stenographic notes or other records of the meeting under the
Open Meetings Act and that this information must be kept with the official records
of the Board which are held by the City Clerk. He asked for the Board to support him
in this opinion.
Motion by Member Cook that the Board determines not to make an audio
recording of this meeting, that any tape made on the official taping system was done
without the knowledge or consent of the Board.
CARRIED 2-0, Member Rhodes not voting
{Minutes corrected per Member Rhodes to reflect that she did not vote in
support of this motion; vote shown was 3-0 prior to this correction}
Motion by Member Cook that the Board will determine at the beginning of each
Board meeting whether or not they want that meeting to be officially tape recorded.
CARRIED 3-0
Discussion was held on the disposition of the tapes and whether they.would be placed
in a locked file or erased with a magnet.
At this point, the Board returned to the discussion of the Klco Disclosure and
completed their questioning.
A discussion was held on Leeman Requests for Investigation # 2 and # 3.
Motion by Member Rhodes that Secretary Slade research the Ethics Board files to
4
report back to the Board whether or not any affidavits had been submitted to the
Board relative to the issued raised in the Leeman Request for Investigation # 2 and #
3.
CARRIED 3-0
A discussion was held on the Board desire to be proactive with regards to the
requirements for Ethics Board disclosures. Member Rhodes agreed to prepare a letter
to Councilmembers regarding the requirements for disclosure under rule 14.
A discussion was held on the wording of a resolution requested by City Council
regarding a replacement for the City Attorney for the early retirement investigation.
Motion by Member Rhodes to adopt the following resolution:
BOARD OF ETHICS RESOLUTION
WHEREAS the Board of Ethics has voted unanimously to open an investigation
into issues raised by Bernie Meissner in his letter to the Board dated January 20,
1993; and
WHEREAS the City Attorney is the subject of this investigation;
RESOLVED pursuant to City Charter provision 5-502.5, the Lansing Board of
Ethics requests the Lansing City Council to appoint an additional member to sit on the
Board for the purpose of this investigation; and
BE IT FURTHER RESOLVED that the Lansing Board of Ethics requests the
Lansing City Council to appoint as the special member an attorney who does not have
any other business or is otherwise employed by the city.
By Member Rhodes:
To adopt this resolution
AYES: Members Cook, Mertz, Rhodes
NAYS: None
Secretary Slade was instructed to submit a certified copy of this resolution to
City Council requesting their consideration at their April 1, 1993, Committee of the
Whole meeting.
NEW BUSINESS:
A discussion was held on the need for the Board to meet twice monthly at least
for the next month to clear up old items. It was agreed that the Board will schedule
5
a special meeting for April 13, 1993, at 5:00 P.M. in the City Council 10th Floor
Committee Room. The purpose of this special meeting will be to deal with Old
Business Agenda Items 4-7 and the proposed amendments to the Rules of Procedure.
Old Business Agenda Items 4-7 include: Knechtel Disclosure, Klco Disclosure, Leeman
Request for Investigation # 2, and Leeman Request for Investigation # 3.
BOARD ROUNDTABLE/ANNOUNCEMENTS/ADJOURNMENT:
Motion by Member Rhodes to adjourn the meeting.
Meeting adjourned at 8:50 P.M.
Respectfully submitted,
1
—fllll�
MARILYNN SLADE,
Secretary
Date Approved: June 29, 1993
6
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, FEBRUARY 23, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:05 P.M. in the City Council Conference Room,
10th Floor, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Al Knot, City Attorney
Marilynn Slade, City Clerk
MT1
BOARD MEMBERS ABSENT:
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah Miner, [Recording Secretary] °O
Gary Andrews [560 Brookland Blvd.]
Lloyd Teets [116 E. Elm]
Richard Collins [225 W. Moores River Dr.]
Harold Leeman [529 N. Francis]
Bernie Meissner [635 LaSalle BI.]
APPROVAL OF AGENDA:
Member Rhodes moved to delete the Chair's Report from the Agenda as
members had not had adequate time to study the contents of these reports; supported
by Member Slade.
After much discussion on this issue, Chairperson Mertz stated that he believes
Member Rhodes motion to remove his report is out of order; and unless the voting
members vote to overrule, the agenda will stand approved.
Member Knot objected, for the record.
APPROVAL OF MINUTES:
Member Slade announced that we have the minutes of January 26, 1993 to
1
approve.
Chairperson Mertz said he had some changes to the minutes:
On page 4, third paragraph, 4th line, last word "from the view point of the
Ethics Board he thinks they should be represented at this meeting." This should say
"from the view point of the Ethics Board, he thinks they should be represented at this
hearing."
Next page, three lines up from the bottom. "Chairperson Mertz said that he
does not think there are any interests in this matter that are any different from the
interests of the Board." This should accurately state "Chairperson Mertz says that he
does not think he has any interests in this matter that are different from the interests
of the Board. That is what he meant. And for the record I want it noted that is what
I meant."
Another correction Chairperson Mertz would make is to include a copy of the
Chair's Report and also a copy of the actual resolution adopted by the Board in the
minutes of January 26, 1993.
Under the page that says New Business: Meissner request for investigation.
The last line states "Motion by Member Rhodes to defer the Meissner request for
investigation until next month's meeting. Carried 4-1, Al Knot Abstaining." This
motion was carried 4/0.
Motion by Member Cook, supported by Member Rhodes, that the minutes of
January 26, 1993, be tabled and that Member Slade make any corrections to the
minutes indicated by the tape and submit a corrected copy. If a review indicates
changes should not be made, she should report back to them what the tape actually
said and they will take further action on this item at the next meeting.
Member Slade asked to go on record that she will not be voting until such time
as she receives a written legal opinion on this matter. That is why she will not vote
on this item. Motion carried 3/0 as neither the City Clerk nor the City Attorney were
allowed to vote on this issue.
CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING:
Letters from Harold Leeman were labeled requests #2 & #3 and all members
were given copies of these items.
DISCLOSURES OF FINANCIAL CONFLICTS FILED SINCE LAST MEETING:
There was a disclosure received from Gregory Klso; all members have received copies
of this disclosure.
2
NEXT MEETING DATE: March 23, 1993
Chairperson Mertz stated that he would not be available on this night.
Motion by Member Cook to change the date of the next meeting to March 30,
1993, at 5:00 P.M., supported by Member Rhodes. Motion Carried 3/0.
INQUIRIES AND COMPLAINTS RECEIVED SINCE LAST MEETING:
None
CITY ATTORNEY'S REPORT:
Member Knot said that he could not make a report until the legal status of his
position on this Board is clarified. Member Knot said that there is no request that he
serve as the attorney for the Ethics Board, and until it is clarified on his voting status,
he cannot be the attorney.
Chairperson Mertz said there is no question Member Knot is still a member of the
Board. He stated that the language is pretty clear; the City Attorney is a member of
the Board, but he is not a voting member.
CHAIR'S REPORT:
Request for Special Counsel
Chairperson Mertz reviewed the "Request for Special Counsel" portion of the
Chair's Report.
Voting Membership Controversy
Chairperson Mertz reviewed the "Voting Membership Controversy" portion of
the Chair's Report.
Motion by Member Rhodes that, pursuant to Charter Section 5-104 Ineligibility
for Boards, which states "No person holding another City Office or Activity Employed
by the City shall be eligible to be a voting member on any Board"; the City Clerk and
the City Attorney be considered not to be voting members of the Board of Ethics.
Supported by Member Cook. Adopted 3/0 by the Public Members of the Board of
Ethics.
Issues Which Must be Considered By the Board
Chairperson Mertz reviewed the "Issues Which Must be Considered by the
Board" portion of the Chair's Report.
3
Member Rhodes asked if this portion will become part of the record.
Chairperson Mertz said that it will be part of the minutes.
Draft Rules of Procedure
Chairperson Mertz reviewed the "Drafts Rules of Procedure" portion of the
Chair's Report. These are his suggestion as to what needs to be changed in the Rules
of Procedure:
Paragraph 1 ; add the word Public to the last line so that it reads "the public
members of the Board of Ethics."
Motion by Member Cook to change this so that it reads "two public members
of the Board of Ethics." Motion carried 3/0 by the Public Members of the Board
of Ethics.
Paragraph 6; add the words remaining public before board, and members after
board, so that it reads "majority of the remaining public Board members may
be removed from the Board of Ethics. Such removal may be affected by a
majority vote of the remaining public Board members of the Board of Ethics plus
the concurrence of a majority of the members of the Lansing City Council in
such removal."
Paragraph 7.1; add the word public after the words "majority of the" and
before the word "members" to read "majority of the public members".
Paragraph 7.4; language added is based on 5-106.6 Advisory Board Functions
to read "The Secretary of the Board of Ethics shall be the City Clerk and shall
be responsible for preparing and keeping the minutes and records of the Board
and for such other administrative support as may be needed from time to time."
Member Knot asked to go on record as saying that, with the new City Clerk,
they will resolve some of the problems they have had in the past with staffing of
administrative support on this Board.
Paragraph 7.5; Chairperson Mertz added this language to clarify that "the City
Attorney shall serve as legal advisory to the Board of Ethics."
Paragraph 9; the words "as non voting members" and "as voting members"
was added to read; "Membership of the Board of Ethics shall consist of the City
Attorney and City Clerk of the City of Lansing as non voting members and three
public members as voting members who shall be appointed by the Lansing City
Council as provided by the Lansing City Charter".
Chairperson Mertz said the Board must make a decision as to what constitutes
4
a quorum.
Member Knot said that, based on their adopted position that only the public
members may vote on the Board, the size of the quorum must be based on the voting
membership of the Board and should be two voting members.
Paragraph 10; "a quorum of the Board of Ethics, for the purpose of conducting
the business, shall be two public members of the Board."
Paragraph 11; delete 'the word three and add the language "two public
members" to read; "Any action of the Board of Ethics shall require the
concurrence of two public members of the Board at a properly convened
meeting of the Board.
Paragraph 12.6; add the language "two public members" to read "No advisory
opinion shall be rendered by the Board of Ethics unless the substance and final
text of said opinion is concurred in by at least two public members of the Board
of Ethics.
A discussion ensued on whether or not decisions of the Board need to be by
unanimous vote as has historically been done.
Motion by Member Rhodes that the paragraph 12.6 should remain "at least
three members of the Board of Ethics." Supported by Member Cook. Motion carried
by a vote of 2/1 of the public members of the Board of Ethics.
Paragraph 12.7; add the language "two public members" to read: Preliminary
drafts and research memorandums prepared in connection with any request for
an advisory opinion shall not constitute the view or position of the Board of
Ethics of the City of Lansing nor shall such memorandum or draft opinions be
released to or made available for inspection by the public unless such inspection
or release is approved by two public members of the Board of Ethics".
Motion by Member Rhodes to leave the language in paragraph 12.7 as it
currently is; requiring approval of three public members. Motion carried by a 3/0 vote
of the public members of the Board of Ethics.
Paragraph 13; language will state that "All points of procedure not specifically
covered in this document shall be determined by reference to Roberts Rules of
Order."
Motion by Member Rhodes to approve the proposed rules of procedure as
amended. Motion carried by 3/0 vote of the public members of the Board of Ethics.
PUBLIC COMMENT
5
Lloyd Teets announced that he is running for City Clerk. He appreciates the
fact that this Board has reviewed the Charter and decided that the City Attorney and
the City Clerk should not be voting members of this Board.
Harold Leeman asked for discussion regarding the actions taken on his request
for investigation under Old Business #3.
Chairperson Mertz responded that he hopes to see this resolved today. He
asked the other members of the Board if they felt that the Board should ask Council
for a legal opinion on this issue.
Harold Leeman objected to the amount of time used to deal with these issues
tonight. He has been waiting since December of 1991 for some action on his request
for investigation regarding Tony Benavides.
OLD BUSINESS (Open Session):
Motion by Member Cook "to direct the City Attorney to furnish the Board of
Ethics with a revised draft of the Ethics Ordinance for their review." Supported by
Member Rhodes. Motion carried 3/0 by the Public Members of the Board of Ethics.
Leeman Request for Investigation
Motion by Member Rhodes to defer the Leeman request for investigation until
next month. Supported by Member Cook. Motion carried by 3/0 of the public
members of the Board of Ethics.
Knechtel Disclosure
Member Slade was directed to write a letter to Mr. Knechtel asking him for
more information about specific contracts that he is involved in.
Andrews Request for Investigation
Gary Andrews reviewed the situation covered by his January 20, 1993, letter
to the Board.
Motion by Member Rhodes that in response to concerns regarding an incident
that happened at the Committee of the Whole meeting on January 7, 1993, the Board
of Ethics request certain pieces of information; an audio tape of the meeting, Tina
Gallante's shorthand notes, and a video tape of the January 11, 1993 Council
meeting including only the segments regarding Mr. Andrews. Motion carried 3/0 of
the public members of the Board of Ethics.
Chairperson Mertz said the Board will try to have this material before the next
meeting.
6
Meissner and Wilcox Requests for Investigation
Lengthy discussion was held regarding whether or not the issues raised by
Meissner and Wilcox should be pursued in an open investigation by the Board.
Motion by Member Cook; supported by Member Rhodes that the Board open
an investigation into issues raised by Meissner and Wilcox. Motion carried by 3/0 of
the public members of the Board.
NEW BUSINESS:
Chairperson Mertz asked to move to New Business and add the Leeman
requests for investigation. The one involving a city contract will be labeled #2, the
one involving a recusal vote will be labeled #3 and they will be so designated under
new business.
Member Slade was asked to call Gregory Klso and request that he attend the
next Board meeting to explain his Affidavit of Disclosure.
BOARD ROUNDTABLE/ANNOUNCEMENTS/ADJOURNMENT:
Motion by Member Cook; supported by Member Rhodes to adjourn the meeting.
Meeting adjourned at 9:10 P.M.
Respectfully submitted,
C�
MARILYNN SLADE,
Secretary
Date Approved: 3 —30 z 9 3
7
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
THURSDAY, 9/2/93, 7:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 7:00 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Member
BOARD MEMBERS ABSENT: None
cv
A QUORUM WAS PRESENT -
r,,
OTHERS PRESENT:
Amy Jordan (WITL) f"
Mary Rogozinski (14552 Boichot Road)
Mary Massoglia (2911 Cooley Drive) Nv I
Tim Lewis (500 S. Pine, #1015) c�
Russell Smith (403 Rosadell)
Vivian Bloom (227 S. Eighth)
Lloyd Teets (116 E. Elm)
Kathy Hoffman (Lansing State Journal)
SPECIAL MEETING DATES:
September 8, 1993 7:00 p.m. (9th FI. Conference Room)
September 16, 1993 7:00 p.m.
September 23, 1993 7:00 p.m.
APPROVAL OF AGENDA:
Member Rhodes requested that a discussion of executive sessions be included
on the agenda. Agenda approved with this addition by members present.
1
SECRETARY'S REPORT;
Approval of Minutes - Motion by Member Cook to approve minutes of the
August 17, 1993 meeting with the following correction:
In the last paragraph of page 2, to add the word "apparently" in the sentence
"Chairman Mertz responded that they are {apparently) covered under the phrase
"other non-union personnel.""
VOTE: 5/0
Motion by Member Cook to approve minutes of the August 24, 1993 meeting
with changes as follows:
On page 2, Secretary's Report, second paragraph, correct the spelling of
Douglas Rubly to Douglas Rubley.
On page 2, Chair's Report, to change the sentence to read "Chairman Mertz
distributed copies of an article that appeared in the Lansing State Journal in May of
1991 regarding the payment of overtime to upper level city employees."
On page 2, second paragraph from bottom, add an "s" to the word interview
in the sentence "These interview{s) are taped and the tapes will be kept on file in the
City Clerk's Office."
VOTE: 3/0; Members Dunnings and Slade were not present at the 8/24/93
meeting and abstained from the vote for approval
Motion by Member Dunnings to approve the minutes of the August 31, 1993
meeting as submitted.
VOTE: 5/0
Motion by Member Dunnings that future minutes of the Board should only
reflect that a member of the public has made a comment without reflecting on the
content of that comment.
VOTE: 5/0
Correspondence Received - City Clerk Slade reported that she has not received
or sent any correspondence.
2
CHAIR'S REPORT:
Chairperson Mertz stated that he appreciated Member Dunnings submitting a
draft regarding the early retirement opinion. Chairperson Mertz also stated that he has
reviewed additional case law and other information and Secretary Slade made copies
of this information for all Board members.
OLD BUSINESS:
Executive Session
Board members held a discussion on whether or not the Board could go into
executive session for discussion of the advisory opinion to be issued by the Board
regarding the early retirement investigation.
Motion by Chairperson Mertz that the Board authorize Member Dunnings to
contact the City Attorney and request a written opinion regarding whether or not the
Board can meet in executive session and under what criteria.
VOTE: 5/0
Early Retirement Investigation
Board members discussed in brief what constitutes conflict of interest in the
case of elected officials and whether or not it must always be based upon a
contractual situation.
PUBLIC COMMENTS:
The following individuals made comments:
Tim Lewis
Lloyd Teets
Vivian Bloom
There being no further business, meeting adjourned at 8:00 P.M.
Respectfully submitted,
-Ynl
MARILYNN SLADE
City Clerk/Secretary
Date Approved: September 16, 1993
3
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, 8/31/93, 7:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 7:00 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Member
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
to
OTHERS PRESENT: Ga
C.0
Margaret Herp (906 Stanley Street) =
Julia Martins (1005 N. Jenison)
could not read name (14552 Boichot Road) :
K. J. Langschwager (1328 Prospect)
Donna Collins (225 Moores River Drive) --.�
Dick Collins (225 Moores River Drive) w
Amy Dahlman (WLNS TV-6)
Mary Massoglia (2911 Cooley Drive)
Russell Smith (403 Rosadell)
Fred Johnson (2576 W. Mt. Hope)
Rita Deason (2936 Quincy)
Vivian Bloom (227 S. Eighth)
SPECIAL MEETING DATES:
September 2, 1993 7:00 p.m.
September 8, 1993 7:00 p.m. (9th Fl. Conference Room)
September 16, 1993 7:00 p.m.
September 23, 1993 7:00 p.m.
1
APPROVAL OF AGENDA:
Agenda approved as submitted by members present.
SECRETARY'S REPORT;
Approval of Minutes - Motion by Member Cook to approve minutes of the
August 10, 1993 meeting as submitted.
VOTE: 5/0
Motion by Member Rhodes to approve minutes of the August 12, 1993 meeting
with changes as follows:
Page 3, paragraph 3 remove word "covered" in the sentence "The Board began
listing points to be covered in the opinion to be issued by the Board." and replace with
the word "considered". Member Rhodes also wished it to be noted for the record at
the end of this same paragraph that Chairperson Mertz made some changes to this
listing from what was discussed and that the Chairperson states on 8/31/93 that the
changes were made for clarity.
VOTE: 5/0
Correspondence Received - City Clerk Slade reported that she has not received
or sent any correspondence.
CHAIR'S REPORT:
Chairperson Mertz stated that he hoped Members Dunnings and Slade had
reviewed the audio tape from the 8/24/93 meeting. Member Dunnings stated that he
had not been notified to pick up this tape. Member Slade said that she would have
her staff call and notify Member Dunnings when the tape is available.
Chairperson Mertz announced that he received a telephone call from a David
Dunckel who had information to present to the Board and is present to do so tonight.
Chairperson Mertz asked if Board members could meet on September 8, 1993,
at 7:00 p.m. to interview Richard Putney. Members agreed to set a special meeting
for September 8th for this purpose.
2
OLD BUSINESS:
Early Retirement Investigation:
The Board interviewed David Dunckel. The audio tape of this interview has
been placed on file in the City Clerk's Office.
PUBLIC COMMENTS:
Ellen Beal stated that she was misquoted with regards to her interview before
the Board. She further stated that if the early retirement incentive program had been
handled as an ordinance, instead of a resolution, the public would have been able to
scrutinize the plan and the resulting problems may have been avoided.
Don Bryan stated that he was alarmed when he heard the actuary last week
state that the general fund would be required to expend an additional $500,000
annually to cover the early retirement program.
Steve Harry stated that the actuary also said that the city does have some
pensions that exceed the maximum allowed by IRS. He stated that it would seem
that there would have to be some special authority granted to pay pensions from the
city general fund.
Paul Scott stated that Councilmembers may be forced to vote on compensation
for the position of Councilmember but, for two Councilmembers who voted on the
early retirement plan, they were voting of a specific plan that would benefit only
them.
There being no further business, meeting adjourned at 8:30 P.M.
Respectfully submitted,
MARILYNN SLADE
City Clerk/Secretary
Date Approved: 9/2/93
3
CORRECTED MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, AUGUST 24 1993 - 7:00 P.M.
CITY COUNCIL CHAMBERS, LANSING CITY HALL
The meeting was called to order at 7:00 P.M. in the City Council Chambers, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
BOARD MEMBERS ABSENT:
r „
Marilynn Slade, City Clerk, Excused f
Stuart Dunnings, Special Member, Excused
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary `J='
Russell Smith [403 Rosadell]
K.J. Longschwager [1328 Prospect]
Rita Deason [2936 Quincy Ln.]
Winifred May [1125 Moores River Dr.]
Margaret Herp [906 Stanley St.]
Charles Gerber 601 N. Cedar
Lisa Zlikowski, WKAR E. Lansing
Amy Jordan, WITL Radio Station
William Bernstein [420 Baker]
Gerald W. Graves [1623 S. Genesee Dr.]
Mary Rogozinski [14552 Bartlett]
Vivian Bloom [227 S. Eighth]
Phyllis Hebert [900 Long Blvd.]
Mary Massoglia [2911 Cooley]
Tim Lewis [500 S. Pine]
Gary Andrews [560 Brookland Blvd.]
Ronald Kruger [1841 Beal Ave.]
SPECIAL MEETINu DATES:
August 31, 1993 7:00 P.M.
Sept. 02, 1993 7:00 P.M.
Sept. 16, 1993 7:00 P.M.
Sept. 23, 1993 7:00 P.M.
APPROVAL OF AGENDA
Chairman Mertz requested that the approval of minutes be deferred to the
Tuesday, August 31, 1993 meeting.
Motion by Public Member Rhodes to approve the agenda with the above
change noted. Motion carried 3/0.
SECRETARY'S REPORT:
Approval of Minutes: At the request of Chairman Mertz and the consensus
of the Board the approval of Minutes was deferred to the August 31, 1993
meeting.
Correspondence Received and sent since last meeting: Copies of
correspondence sent to Douglas Rubley, Interim Finance Director and Council
President Canady along with copies of correspondence received from Steve.Harry,
Terry McKane, Douglas Rubley, were distributed to board members.
CHAIR'S REPORT:
Chairman Mertz distributed copies of an article that appeared in the Lansing
State Journal in May of 1991 regarding the payment of overtime to upper level city
employees.
OLD BUSINESS:
Early Retirement Investigation Interviews: The Board interviewed Alan
Sonnanstine, Representative of the Actuarial firm for the City of Lansing and
Mayor James Crawford of the City of Lansing regarding the Early Retirement
Program. These interviews are taped and the tapes will be kept on file in the City
Clerk's Office.
PUBLIC COMMENT
Gary Andrews asked about the status of the complaint he brought before the
Board. Chairman Mertz stated that a reply from the Board is forthcoming, as soon
as they are able to hold a regular meeting, in which the reply can be approved by
the entire Board.
ADJOURNMENT
Motion by Public Member Rhodes to adjourn. Motion carried 3/0 meeting
adjourned at 8:55 P.M.
Respectfully submitted,
r r,
DEBORAH K. MINER
Recording Secretary
Date Approved: - -
CORRECTED MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, AUGUST 17 1993 - 7:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 7:00 P.M. in the Tenth Floor Conference
Room, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk t
Stuart Dunnings, Special Member
BOARD MEMBERS ABSENT: None -
A QUORUM WAS PRESENT
OTHERS PRESENT:
Ci_,
Deborah K. Miner, Recording Secretary
Russell Smith [403 Rosadell]
Mary Rogozinski [14552 Boichot Rd]
K.J. Longschwager [1328 Prospect]
Rita Deason [2936 Quincy Ln.]
Gisgie Davila, Lansing State Journal
Mary Ann Prince [2116 Ferrol St.]
Gladys Prince [2116 Ferrol St.]
Mary Massoglia [2911 Cooley Dr.]
Ann Rogozinski [13160 Hitching Post]
Brian Wadsworth
Margaret Herp [906 Stanley]
Charles Ford, Lansing City Councilmember
Vivian Bloom [227 S. Eighth St.]
Steve Harry [5125 Tecumseh River]
Lloyd Teets [116 E. Elm]
SPECIAL MEETING DATES:
August 24, 1993 7:00 P.M.
August 31, 1993 7:00 P.M.
Sept. 02, 1993 , :00 P.M. (Closed Meeting)
Sept. 16, 1993 7:00 P.M. (Closed Meeting)
Sept. 23, 1993 7:00 P.M. (Closed Meeting)
APPROVAL OF AGENDA
Chairman Mertz requested that the approval of minutes of the August 10,
and August 12, 1993 meetings be deferred to Tuesday, August 24, 1993 and that
the agenda be approved as modified. It was the consensus of the Board that the
agenda be approved with the above change noted.
SECRETARY'S REPORT:
Approval of Minutes: Motion by Member Cook to approve the minutes of
July 13, 1993. Motion carried 510. At the request of Chairman Mertz the Minutes
of the August 10, and August 12, 1993 Board of Ethics meetings was deferred to
the August 24, 1993 meeting.
Correspondence Received and sent since last meeting• Secretary Slade
distributed copies of Certified Letters sent to former Finance Director, Steve
Duarte, former Budget Director, Jan Lazar, and former Mayor, Terry McKane,
requesting that they appear before the Board to answer questions regarding the
Early Retirement Plan.
CHAIR'S REPORT
The Chair did not make a report
OLD BUSINESS:
Early Retirement Investigation Interviews• The Board interviewed City
Councilmembers Charles Ford and Mark Canady regarding the Early Retirement
program. These interview are taped and the tapes will be kept on file in the City
Clerk's Office.
PUBLIC COMMENT
Steve Harry asked if the Board would be interviewing Alan Sonnanstine next
Tuesday. He asked if the Board was aware that the Early Retirement Plan may
be in violation of IRS rules. Chairman Mertz told Mr. Harry that, if he had
specific questions for Mr. Sonnanstine, he (Mertz) would ask them. Mr. Harry
offered to give copies of his correspondence with the IRS to the Board. He
(Harry) asked how elected officials could receive pension benefits, if they are not
specifically mentioned in the resolution. Chairman Mertz responded that they are
apparently covered under the phrase "other non-union personnel."
K.J. Lonschwag.,r asked if pension and health bei..;fits are paid out of the
General Fund. Chairman Mertz responded affirmatively.
Lloyd Teets said he was pleased that the Board got an admission that the
Mayor's Office sent someone to the December Ethics Board meeting to stop the
investigation of the Early Retirement Plan.
Vivian Bloom asked how City Employees achieved $90,000 salary levels.
Chairman Mertz answered that it is because of bargaining done with the Teamsters
to whom they are tie barred.
Motion by Special Member Dunnings to adjourn. Motion carried 510
meeting adjourned at 8:40 P.M.
Respectfully submitted,
DEBORAH K. MINER
Recording Secretary
Date Approved: C''
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
THURSDAY, 8112/93, 7:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 7:00 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson,
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Member
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Dixie Gilmore, Recording Secretary -�-
could not read name -�
Brian (could not read last name) N 1;
Russell Smith (403 Rosadell) i--
Faith Johnson (State Journal)
Walter M. Jones (215 Rumsey)
Jim Buchanan (Channel 6)
Vivian Bloom (227 S. Eighth)
Lloyd Teets (116 E. Elm)
K. J. Longschwager (1328 Prospect)
Harold Leeman (529 N. Francis)
SPECIAL MEETING DATES:
August 17, 1993 7:00 p.m.
August 24, 1993 7:00 p.m.
August 31, 1993 7:00 p.m.
September 2, 1993 7:00 p.m. (closed meeting)
September 16, 1993 7:00 p.m. (closed meeting)
September 23, 1993 7:00 p.m. (closed meeting)
1
APPROVAL OF AGENDA:
Agenda approved as submitted by members present.
SECRETARY'S REPORT;
Approval of Minutes - In reference to minutes of August 2, 1993, Member
Rhodes noted she was marked absent although she had indicated during the
July 20, 1993 meeting that she would be away on that date. She requested
that the record show she was excused for the August 2, 1993 meeting.
Don Cook moved for approval of the minutes as presented for the July 20,
1993, special meeting. VOTE 5/0
John Mertz moved for approval of the minutes as presented for August 2,
1993, special meeting with the correction that Member Rhodes was excused.
VOTE 4/0, Member Rhodes not voting
City Clerk Slade stated she would bring the minutes of the July 13, 1993
meeting for approval to the August 17th meeting.
Correspondence Received - City Clerk Slade reported that she received a
response from Interim Director of Finance Doug Rubley in which information
was provided regarding the alternate retirement system from 1990, as well as
copies of Plan A and Plan B of the early retirement system provided by the
actuarial firm. She also distributed copies of information provided by Mr.
Russell Smith.
Changes to Meeting Schedules - On Tuesday, August 17th, Councilmember
Ford will testify before the board, followed by Council President Canady. On
Tuesday,August 24th, Alan Sonnanstein of the actuarial firm that reviewed the
early-out plan will testify, followed by Mayor Crawford. Former Mayor Terry
McKane will testify before the board of Tuesday, August 31, 1993. The City
Clerk reported that there has been no response to the Board's request to appear
by Steve Duarte, Jan Lazar or James Blair.
Members Dunnings and Slade indicated they would not be present for the
August 24th meeting and Member Rhodes indicated there may be a possible
conflict for her as well. In spite of these conflicts, the board decided to
conduct the interviews scheduled even if a quorum is not present as long as the
meeting is taped and specific questions are asked. Member Dunnings provided
Chairperson Mertz with some questions that he would like to be asked of Alan
Sonnanstine.
2
CHAIR'S REPORT:
Chairperson Mertz said that, as Member Dunnings stated in the last meeting,
another letter should be sent to Steve Duarte and Jan Lazar asking them to
again appear before the Board, otherwise the Board would reach it's own
conclusions based on the information available.
Member Dunnings dictated the contents of a letter to be sent to Steve Duarte
and Jan Lazar. Motion by Member Dunnings to direct the City Clerk to send
these letters. VOTE 5/0
OLD BUSINESS:
Early Retirement Investigation• The Board reviewed documentation that they
had received and missing items were given to City Clerk Slade for copying to
all Board members. Chairperson Mertz stated the board should take the
opportunity of the meeting to clarify where they are going and what they are
going to do with what they have. The Board began listing points to be
considered in the opinion to be issued by the Board. Points agreed upon thus
far are:
{Member Rhodes wished it to be noted for the record that Chairperson Mertz made
some changes to this listing from what was discussed and that the Chairperson states
on 8/31/93 that the changes were made for clarity}
A. CITY ATTORNEY
1. What is the ethical responsibility of the City Attorney to make his
legal opinions public?
2. What is the ethical responsibility of the City Attorney to raise
conflict of interest issues that are, or should be apparent to him?
3. May the City Attorney ethically render legal opinions to a single
councilmember without also distributing the opinion to the rest of
the City Council?
4. Should all resolutions and ordinances be first reviewed and
approved as to form and content by the City Attorney before
introduction for consideration and passage?
3
B. COUNCIL PROTOCOL
5. Can the City Council ethically pass by resolution what the City
Charter requires to be passed by ordinance?
6. Is it ethical for a councilmember to keep confidential an official
legal opinion of the City Attorney, not privileged from disclosure
under the Freedom of Information Act?
C. CLOSED SESSIONS
7. Is it ethical to close a session of a City Council meeting to discuss
a matter for which neither the Open Meetings Act nor the
Freedom of Information Act allows a closed session?
8. Is it ethical to approve minutes of closed sessions without first
specifically reviewing them for accuracy and then filing them with
the City Clerk as required by the Open Meetings Act?
9. Should all handouts and projection materials reviewed at closed
sessions be included with the minutes of the meetings that are
placed on file?
D. INDIVIDUAL CONFLICTS
10. Is it ethical for a councilmember to vote upon a measure from
which they might receive more than a de minimis benefit without
disclosing the interest, even if the councilmember intends to not
take the benefit?
11. Is it ethical for City officials and/or employees to refuse or fail to
file documents and minutes with the City Clerk as required by
law?
12. Is it ethical for a City official or employee to take advantage of a
benefit that is more than de minimus if a conflict of interest
exists?
13. Is it ethical for a City employee to propose action by the
administration or the City Council without disclosing the
employee's interest when the employee will receive more than a
de minimus benefit from the action?
14. What are the consequences for violation of the provisions of the
4
City Charter and the Ethics Ordinance
15. Is a "tie-bar" between wages and benefits afforded employees
covered by a collective bargaining agreement and the employees
that negotiate the agreement and/or the officials that approve the
agreement ethical?
The Board agreed that these points would be summarized into four categories:
1. Council Protocol
2. Individual Conflicts
3. City Attorney
4. Closed Meetings
City Clerk Slade was directed to write a letter to former Mayor Terry McKane
requesting release of attorney-client privilege so that City Attorney Knot can
provide the Board copies of memos regarding the early retirement plan.
PUBLIC COMMENTS:
Harold Leeman of 529 N. Francis stated that he hopes that the Board will
include in their opinion the statement that Councilmembers should take into
consideration statements made by the public at Council meetings.
Lloyd Teets of 116 E. Elm stated that in review of the April 13, 1992 tape of
Council Proceedings, the Board should be aware that certain people seemed to
have inside information regarding the early retirement matter, while the general
public was in ignorance.
K. J. Longschwager of 1328 Prospect asked who did the legal work on early
retirement and who set the multiplier at 2.75 rather than 2.5 and by whose
authority this was done.
There being no further business, meeting adjourned at 8:50 P.M.
Respectfully submitted,
�t (�
MARILYNN SLADE
City Clerk/Secretary
Date Approved: 8/31/93
5
CITY OF LANSING
BOARD OF ErgICS
ISSUES INVOLVED IN EARLY RETIREMENT INVESTIGATI•N
A. CITY ATTORNEY
1• What is the ethical responsibility of the City to make his legal opinions public?
y Attorney
2• What is the ethical responsibility
to raise conflict of interest issues that are or should be to
to him?
to
3• May the City Attorney ethically render legal opinions
a single councilmember without also distributing
rest of the CityP nions to
Council? g the opinion to the
4• Should all resolutions and ordinances be first r
and approved as to form and content b
introduction for consideration and Y the Cit reviewed
passage? Y Attorney before
B. COUNCIL PROCEDURES
5• Can the City Council ethically Pass b
Passed b Y resolution what
the City Charter requires to be
y ordinance?
6• Is it ethical for a councilmember to keep
Official legal opinion of the City confidential an
disclosure under the Freedom of Information Act?ney, not privileged from
C. CLOSED SESSIONS
7• Is it ethical
to
meeting to discuss a a close a session of a Cit
nor the Freedom ofeetin
matter for which neither the p Y Council
Information Act allows a closed ession? gs Act
8• Is it ethical to without first specificallyapprove minutes of
filing them with reviewing them for accuracy sessions
Act? the City Clerk as required b Y and then
y the Open Meetings
9• Should all handouts and
projection
closed sessions be included with he minutes of the is reviewed at
meetings that
are placed on file?
1
D. INDIVIDUAL CONFLICTS
- 10. Is it ethical for a councilmember to vote upon
from which they might receive more than a
without disclosingde minimus benefit
to not take the the interest, even if the councilmember intends
benefit?
11. Is it ethical for City refuse or fail to file documents and minutes with the c mP1 ees to
required by law?
Y Clerk as
12. Is it ethical for a Cit
advantage of a benefit that is more than de m nimusy Official or p if a conflict
loyee to take
of interest exists?
13. Is it ethical for a City the administration or the Cit employee to propose action by
employee' s interest when the employee will
llCouncil wreceive more than disclosingithout minimus benefit from the action? the
an a de
14. What are the consequences for violation o
of the City Charter and the Ethics Ordinance? f the provisions
15. Is a "tie-bar" between wages
employees covered band benefits afforded
employees that nego iate collective
e bargaining agreement and the
agreem nt and/or the officials that
approve the agreement ethical?
2
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, AUGUST 10 1993 - 7:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 7:00 P.M. in the Tenth Floor Conference
Room, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Stuart Dunnings, Special Member {
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Harold Leeman [529 N. Fairview]
Russell Smith [403 Rosadell]
Mary Rogozinski [14552 Boichot Rd]
K.J. Longschwager [1328 Prospect]
Rita Deason [2936 Quincy Ln.]
Gisgie Davila, Lansing State Journal
Dick Collins [225 Moores River Dr.]
SPECIAL MEETING DATES:
August 12, 1993 7:00 P.M.
August 17, 1993 7:00 P.M.
August 24, 1993 7:00 P.M.
August 31, 1993 7:00 P.M.
Sept. 02, 1993 7:00 P.M. (Closed Meeting)
Sept. 16, 1993 7:00 P.M. (Closed Meeting)
Sept. 23, 1993 7:00 P.M. (Closed Meeting)
APPROVAL OF AGENDA
Chairman Mel requested that the approval of i utes be deferred to the
Thursday, August 12, 1993 meeting, that the interviews of Councilmembers Belen
and Benavides be moved up to take place following approval of the agenda, and
that the agenda be approved as modified. It was the consensus of the Board that
the agenda be approved with the above changes noted.
OLD BUSINESS:
Early Retirement Investigation Interviews: The Board interviewed City
Councilmembers Lucile Belen and Tony Benavides regarding the Early Retirement
program. These interview are taped and the tapes will be kept on file in the City
Clerk's Office.
SECRETARY'S REPORT:
Approval of Minutes: At the request of Chairman Mertz and the consensus
of the Board the approval of the Minutes of the July 13, and August 2, 1993 Board
of Ethics meetings was deferred to the August 12, 1993 meeting.
Correspondence Received and sent since last meeting• Secretary Slade
distributed copies of the certified letter she sent to Ms. Jan Lazar requesting that
she attend a meeting of the Board.
PUBLIC COMMENT
Lloyd Teets stated that he would like someone on the Board to ask
Councilmember Belen for the exact amount of money she removed from the
retirement system two years ago. He does not want this information kept under
the rug.
Rita Deason asked the Board if they have any recourse to use against
someone who refuses to allow the Board to interview them regarding this issue.
Is there any way the board can force someone to appear and participate in an
interview?
Walter Jones asked if Councilmember Belen changed her health insurance
benefits at the same time that she withdrew her investments from the retirement
fund and whether or not the payment of health care benefits and retirement benefits
could be separated.
Russell Smith stated that the records from the actuary do not indicate that
Jan Lazar was paid $20,000 in overtime as previously stated in this meeting.
Harold Leeman asked for an investigation of Jan Lazar's contract and the
payment of overtime for which she may not have been eligible.
Kathy Longscl ger asked for an explanation of' difference between "at-
will" employees and "contract" employees.
CHAIR'S REPORT
The Chair did not make a report
ADJOURNMENT
Motion by Special Member Dunnings to adjourn. Motion carried 510
meeting adjourned at 8:50 P.M.
Respectfully submitted,
DEBORAH K. MINER
Recording Secretary
Date Approved: 8/31/93
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
MONDAY, AUGUST 2, 1993 - 9:00 A.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 9:00 A.M. in the Tenth Floor Conference
Room, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Marilynn Slade, City Clerk
Stuart Dunnings, Special Member
BOARD MEMBERS ABSENT: Jane Rhodes, Public Member [Absence
Excused]
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Harold Leeman
Debbie Heefner
Brian Walworth c`'
CIO
Vivian Bloom
Mary Rorozinski
Jo Dee Ott
Mark Bjorland, WLNS TV
Ellen Beal, Councilmember 1st Ward NO
Rita Deason cz,
Tim Lewis
Margaret Herp
Russell D. Wolfe
Fred Johnson
Alexander Bolt
SPECIAL MEETING DATES:
CLOSED MEETINGS:
August 12, 1993 7:00 P.M. Sept. 02, 1993 7:00 P.M.
August 17, 1993 7:00 P.M. Sept. 16, 1993 7:00 P.M.
August 24, 1993 7:00 P.M. Sept. 23, 1993 7:00 P.M.
August 31, 1993 7:00 P.M.
APPROVAL OF AGENDA
Chairman Mertz requested that the agenda be approved with the modification
that item #1 under Old Business be moved up to be held directly following
approval of the agenda. It was the consensus of the Board that the agenda be
approved with the above changes noted.
OLD BUSINESS:
Early Retirement Investigation Interviews: - The Board interviewed City
Councilmembers Robert Brockwell and Ellen Beal regarding the Early Retirement
program. These interviews are taped and the tapes will be kept on file in the City
Clerk's Office.
SECRETARY'S REPORT:
The Secretary did not give a report
CHAIR'S REPORT:
The Chair did not give a report
PUBLIC COMMENT:
Harold Leeman asked that the Board make sure that Special Member
Dunnings reviews the tape of the April 13, 1992 City Council meeting in which
the Early Retirement Resolution was passed.
Vivian Bloom asked how many people the city employed. Councilmember
Beal stated around 1,200 people. Mrs. Bloom noted that 10% of city employees
took early retirement and stated that if we could get along without 10% of our
employees we should not have hired them in the first place. We could have saved
money on salaries and spent it on fixing things in the city. Why is our city being
run this way, she asked.
Debbie Heefner asked Chairman Mertz if he will clarify, with City Council,
their expectations of the Board of Ethics. Chairman Mertz stated that he has done
all he can by giving the president the opportunity to meet with the Board.
However, he does hope to see changes in the Ethics Ordinance that will require
training of City Officers and employees in the matter of ethics. Ms. Heefner said
that she feels that, if one Councilmember receives an opinion from the City
Attorney, they should all get it.
Tim Lewis asked if the Ethics Board opinion, when it is issued, could be taken to
court to initiate proceedings to stop the early retirement program. Chairman Mertz
answered negatively. Mr. Lewis stated that the public wants something to be done
about this, but, they appear to be stuck with it.
ADJOURNED 11:20 A.M.
Respectfully submitted,
DEBORAH K. MINER
Recording Secretary
Date Approved: 8/12/93
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING ---
TUESDAY, JULY 27; 1993 = 5:00 PttEM- . i
TENTH FLOOR CONFERENCE ROOM, LANSIN 6TY HALL
The meeting was called to order at 5:00 P.M. in the Tenth Floor Conference
Room, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Alvan Knot, City Attorney
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Harold Leeman
SPECIAL MEETING DATES:
August 2, 1993 9:00 A.M.
August 10, 1993 7:00 P.M.
August 12, 1993 7:00 P.M.
August 17, 1993 7:00 P.M.
August 24, 1993 7:00 P.M.
August 31, 1993 7:00 P.M.
Sept. 02, 1993 7:00 P.M. (Closed Meeting)
Sept. 16, 1993 7:00 P.M. (Closed Meeting)
Sept. 23, 1993 7:00 P.M. (Closed Meeting)
APPROVAL OF AGENDA
Chairman Mertz requested that the agenda be approved with the addition of
the Sparrow Hospital Issue under old Business, the deletion of Item #3 under Old
Business; Leeman Request for Investigation, and that Item #5 under Old Business
"Leeman Request for Investigation #3" be moved up to follow approval of the
agenda. It was the consensus of the Board that the ageiiva be approved with the
above changes noted.
Leeman Request for Investigation #3: This investigation is the result of a
request from Harold Leeman of 529 N. Francis, asking that Council President
Canady be investigated because he recused himself from voting on an issue without
disclosing the reason for his recusal. Mr. Leeman claimed that President Canady
recused himself because his Law Firm represented the individuals involved in the
issue.
The Board interviewed City Council President, Mark Canady regarding Mr.
Leeman's statements. This interview is taped and the tapes will be kept on file in
the City Clerk's Office.
Member Knot asked to go on the record as saying "The only way to make
City Government ethical is through education. No matter who is here on this
Board, this will not happen unless we as a Board take the first step, and
aggressively attempt the education of Officers and Employees of the City."
Motion by Member Rhodes to direct Member Knot to draft a friendly letter
to City Council and send a copy to Mr. Leeman requesting that Councilmembers
state, for the record their reasons for recusal, that their explanation be entered into
the minutes of the meeting, and that they otherwise comply with Rule #14.
Additionally; that Member Slade subtly remind councilmembers at City Council
meetings to state for the record the reasons that they are recusing themselves.
Motion carried 510.
Chairman Mertz stated that sometime within the next month he will redesign
the form for disclosure of conflict of interest so that it is considerably shorter and
easier to use.
SECRETARY'S REPORT:
Approval of Minutes: Chairman Mertz requested that the Minutes of the
June 28, 1993 meeting be changed to reflect that he did not participate in the
formulation of Opinion #16 on Leeman request #1. He stated that he would like
the Opinion itself to contain the statement that he did not participate on it.
Member Rhodes requested that the record state that at the June 29, 1993
meeting, her motion regarding the disposition of the tapes of that meeting did not
contain the language "erase the tapes".
Motion by Chairman Mertz that the Minutes of the June 28, 1993 meeting
be approved with the above changes noted. Motion carried 510.
Correspondence Received: Report from the Purchasing Supervisor in
response to a request for information from the Board regarding Leeman request for
investigation #2.
Next Regular Meeting Date: August 24, 1993, however, this meeting will
be divided between regular business and the early retirement issue.
CITY ATTORNEY'S REPORT:
The City Attorney did not make a report.
CHAIR'S REPORT:
The Chair did not make a report, however, he requested that all members
review the materials they receive regarding the Early Retirement issue as soon as
they recieve them to help facilitate the schedule for this investigation.
OLD BUSINESS:
Revised Ethics Ordinance, Draft 1: Chairman Mertz requested that the City
Attorney provide a draft of the revised ordinance in August so that the Board can
begin discussion of it at the September regular meeting. He would like to be able
to give the new Council the Board's recommendation by December.
Revised Rules of Procedure. Draft 2 (Mertz): Deferred to the September
Regular meeting.
Leeman Request for Investigation #2: Member Rhodes volunteered to write
a letter to the Purchasing Supervisor stating that they must cease and desist with
regard to this contract and that they must institute a sealed bid process for the
contract.
Knechtel Opinion: It was the consensus of the Board that the following
corrections be made to Opinion #18: Page #1 in the first paragraph; "The Board
of Ethics has received an `Affidavit of Disclosure' from a Lansing Police Officer
who is a full-time employee with the City and is an officer, employee,
representative, or agent with several firms, who desire to do business with the City
of Lansing." Page #2 in the last paragraph; "Although MCLA 15.324 provides
for a statutory exception to MCLA 15.322, the Board determined that the Officer's
affidavit of disclosure and supporting testimony presented insufficient information
upon which an opinion could be issued. Therefore, the Board advises the officer
that he cannot do business, nor solicit business, with the City of Lansing until he
files a disclosure containing a complete and detailed statement of his intent to do
business with the City of Lansing, the relationship he has with the firms he
proposes to do business with; and that he must follow the blind bidding process.
The Board further auvises that the officer seek lega, advice concerning his
potential conflict of interest in this matter.
Andrew Request for Investigation: Chairman Mertz volunteered to write a
letter to Mr. Andrews informing him that his complaint is not of an ethical nature,
and not under the jurisdiction of this Board. He requested that Board members
review his letter prior to the next regular meeting and contact him in advance with
any suggestions for modification so that it can be signed and mailed that night.
Disclosure, Melvin McWilliams & Disclosure, Susan Wager: Chairman
Mertz requested a memo from the City Attorney outlining the manner in which
these negotiations are taking place, i.e. that Mr. McWilliams and Ms. Wager are
not negotiating for the same level in which they themselves are employed. It was
the consensus of the Board that the City Attorney memo this to the Board,
allowing the Board to write letters to Mr. McWilliams and Ms. Wager informing
them that they may proceed with their negotiations.
Disclosure, Alfreda Schmidt: Motion by Member Rhodes to receive Mrs.
Schmidt's disclosure and place it on file. Motion carried 510.
Request for Opinion from Jack A. Nelson: Motion by Chairman Mertz to
adopt Opinion #19 with the following modifications: Page #1, paragraph #2 of the
opinion "However the Board notes that this rule would not prohibit the inspectors
from conducting training seminars organized by a certified educational institution,
such as Lansing Community College, which are open to the public and for which
the inspectors are paid by the institution, even though attendance include persons
whose work or materials are subject to inspection by the inspectors and the
attendees pay a fee to the institution to attend the seminars providing that no City
of Lansing resources are used, no coursework is done during the inspectors hours
as a City of Lansing employee and that they have no appearance of speaking as a
City of Lansing Building Inspector i.e the use of a City of Lansing car would be
prohibited." Page #2, last paragraph "The answers to questions 1 and 2 assume
that the inspector receives the proper authorization for the outside employment of
the type proposed from the appropriate city official and per Chapter 290, Section
290.04(d) of the Codified Ordinances of the City of Lansing does not represent
any comments made in the course of teaching the seminar as beingthe he opinion of
the City of Lansing, or to assume compliance with City policies." City Attorney
Knot suggested that the Board make a recommendation that the City Council
consider an ordinance, similar to the purchasing ordinance, to prohibit this activity
in the Building Department.
Motion by Chairman Mertz to approve Opinion #19 with changes noted.
Motion carried 510.
Request for Opimon from Councilmembers Lilly & ,3eal: Deferred pending
completion of item #13 under Old Business.
Sparrow Hospital: Discussion was held regarding the Sparrow Hospital
issue. Chairman Mertz stated, for the record, that he is extremely upset about the
way Councilmember Benavides chose to deal with the Opinion issued by this
Board. Member Rhodes asked to go on record as stating that the comments made
by Chairman Mertz were his personal opinion. Chairman Mertz asked to go on
record that he does not believe that this Board has any rule, or that any ordinance
exists that requires a written complaint from a citizen, non-member of the Board,
in order to initiate an investigation. Member Rhodes said, for the record, this is
an issue that we need to review in the future under a cooler environment. Member
Knot said, for the record, he wants to do this the right way even if other people
did not.
PUBLIC COMMENT
Harold Leeman requested an amendment to Opinion #16 to require that all
appointments recommended by the Mayor be sent to the appropriate committee for
review prior to being approved by City Council.
ADJOURNMENT
Motion by Member Rhodes to adjourn. Motion carried 510. The board
adjourned at 10:30 P.M.
M&in:
R
Recording Secretary
Date Approved: October 26, 1993
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, JULY 20, 1993 - 5:00 P.M.
TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was. called to order at 5:00 P.M. in the Tenth Floor Conference
Room, City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Stuart Dunnings, Jr. Special Member
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Debbie L. Heefner [719 Community St.]
Mary Ann Prince [2116 Ferrol St.]
Gladys B. Prince [no address given]
Ken Vaughan [114 Garden St.]
Russell Greear [3801 Walton]
Tim Lewis [500 S. Pine]
Rita Deason [2936 Quincey Ln.]
Mary Rogozinski [14552 Boichot]
K.J. Langschwager [1328 Prospect]
Russell Smith [403 Rosadell]
Mary Massoglia [2911 Cooley Dr.]
Lloyd Teets [116 E. Elm St.]
Margaret Herp [906 Stanley]
Vivian Bloom [227 S. Eighth]
D.J. Bryhan [1510 W. Mt. Hope]
G.L. Osborn [2500 Boston Blv.]
Fred Johnson [P.O. Box 626]
Alfreda Schmidt [1414 Lindbergh Dr.]
SPECIAL MEETI? ' DATES:
August 2, 1993 9:00 A.M.
August 10, 1993 7:00 P.M.
August 12, 1993 7:00 P.M.
August 17, 1993 7:00 P.M.
August 24, 1993 7:00 P.M.
August 31, 1993 7:00 P.M.
Sept. 02, 1993 7:00 P.M. (Closed Meeting)
Sept. 16, 1993 7:00 P.M. (Closed Meeting)
Sept. 23, 1993 7:00 P.M. (Closed Meeting)
APPROVAL OF AGENDA
Chairman Mertz suggested that the agenda be adjusted to allow for the
interview of Councilmember Schmidt prior to other business. It was the consensus
of the members present that the agenda be adjusted.
OLD BUSINESS:
Early Retirement Investigation
Member Dunnings stated his concern over not receiving notice that the
Board was to Interview Councilmember Schmidt at this meeting. He requested
that he be consulted regarding the schedule of interviews for future meetings.
The Board Interviewed Alfreda Schmidt, City Councilmember, Ward 2 of
the City of Lansing, regarding the Early Retirement plan. This interview is taped
and the tapes will be kept on file in the City Clerk's Office.
The Board identified the following names to be interviewed for the purpose
of the Early Retirement Investigation: Steve Duarte, Richard Putney, Terry
McKane, Jan Lazar, James Blair, Tony Benavides, James Crawford, Ellen Beal,
Lucile Belen, Robert Brockwell, Charles Ford, Mark Canady, Alfreda Schmidt,
Allen Sonnanstine.
Member Rhodes requested a phone call informing her of the guests
scheduled for interviews prior to the next meeting.
PUBLIC COMMENT
Harold Leeman related two occurrences, in which he overheard remarks
made by Councilmember Schmidt, regarding the early retirement issue. He
offered to sign an affidavit regarding the content of these remarks and said that the
Board could quote him.
S'ECRETARY'S RF 7RT
City Clerk Slade reported receiving notice that Mr. Sonnanstine cannot
appear in front of the Board prior to August 24, 1993, Mr. Putney is currently
involved in litigation with the City and cannot appear before the Board until this
matter is cleared up, and Councilmember Beal is not available to attend tonight's
meeting.
CHAIR'S REPORT
The Chair did not make a report
ADJOURNMENT
The Board adjourned at 8:45 by consensus of all members present.
Respectfully submitted,
r
DEBORAH K. MINER
Recording Secretary
1
Date Approved: `> J I
1 29-93POA : 35 i;CV
MINUTES
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, OCTOBER 26 1993 - 7:00 P.M.
LOTH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 5:10 P.M. in the City Council Chambers, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk
Al Knot, City Attorney
BOARD MEMBERS ABSENT:
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Steve Harry [3125 Tecumseh River]
Mary Massoglia [2911 Cooley]
Ann Rogozinski [13160 Hitching Post]
Tim Lewis [500 S. Pine]
Ken Vaughan [114 Garden St.]
Lloyd Teets [116 E. Elm St.]
Gary Andrews [560 Brookland Blvd.]
Gisgie Davila, Lansing State Journal
Jim Prister [1215 E. Michigan Ave.]
Vivian Bloom [227 S. Eighth St.]
Paul Scott [412 W. Kilborn]
Alexander Bolt [1230 Reo Rd.]
1
NEXT MEETING DATE:
November 23, 1993
APPROVAL OF AGENDA:
The Agenda was approved as submitted.
SPECIAL CEREMONY:
Steve Harry thanked the Board for the Opinion #20 regarding the Early
Retirement plan and said that their group is very pleased with the work the Ethics
Board has done. He read a resolution adopted by Concerned Citizens To Save
Lansing and distributed framed, signed copies of the resolution to Members Mertz,
Cook, Rhodes, and Slade. He has an additional copy for Mr. Dunnings.
SECRETARY'S REPORT:
Approval of Minutes: Member Rhodes requested that the minutes of this
meeting reflect the fact that the September Ethics Board meetings were not held
in closed session.
Motion by Member Rhodes to approve the minutes of the July 27, 1993
Ethics Board Meeting as written.
Motion Carried 5/0.
Correspondence Received and Sent Since Last Meeting: Letter received from
Jan Lazar requesting copies of the Nine Complaint Letters received regarding the
Early Retirement Incentive Plan. Letter Sent to Councilmember Benavides
regarding Complaint Regarding Sparrow Hospital Expansion Vote. Letter sent to
John Ruge/Jennie Grau regarding Paul Scott complaint.
CITY ATTORNEY'S REPORT:
Disclosures of Nonfinancial Conflicts Filed: Affidavit of Disclosure
Received from John P. Ruge. Affidavit of Disclosure Received from Rick Lilly.
2
Affidavit of Disclosure Received from Mark Canady. Affidavits of Disclosure (2)
received from Donald Knechtel. Member Cook noted that Mr. Knechtel's latest
disclosure was dated November 20, and should be dated October 20th.
CHAIR'S REPORT:
Chairman Mertz stated that City Council has designated the Ingham County
Prosecutor to serve as Special Prosecutor in an investigation into retirement
benefits paid through the Early Retirement Incentive plan. The Board must now
proceed to step two and determine if they should recommend prosecution of
individuals. He will keep the Board advised as to the scheduling of any special
meetings with the Prosecutor. City Council also retained George Brookover to
investigate other aspects of the opinion. Paul Scott has agreed to procure a copy
from Darryle Burgess of the video tape of the September 30th Ethics Board
meeting, in which Opinion #20 was released. Chairman Mertz requested that the
City Clerk obtain copies of two opinions released by the City Attorney; one with
respect to a F.O.I.A. request made in 1988, and one numbered 93-11, given to
Councilmember Rick Lilly.
OLD BUSINESS:
Revised Ethics Ordinance, Draft 1 (Knot): Not available at this time.
Revised rules of Procedure, Draft 2 (Mertz): Deferred to next month.
Leeman request for Investigation #2 - Letter to Purchasing Supervisor:
Deferred to the November meeting.
Nelson Opinion #19: The final draft, containing the changes made in the
July meeting, was distributed by Chairman Mertz. He explained minor changes
made to make the language more comprehensible. Member Rhodes requested the
use of the words "his/her" rather than the word "their" in paragraph #2 on page
one. Member Knot requested that the phrase "Building Inspection Department"
be changed to "Building Safety Division" and the addition of the word "may" to
the second sentence of the introduction so that it reads; "The Contractor Groups
may include individuals and business who", etc.
Motion by Member Knot to adopt Opinion #19 as amended.
3
Motion carried by a roll call vote as follows:
YEAS: Members Mertz, Cook, Rhodes, Knot, Slade
NAYS: None
The City Clerk will make the corrections and have the opinion available for
signatures tomorrow morning at 9:00 A.M.
Knechtel Opinion #18: Member Knot requested that information given to
the Board, regarding the use of city vehicles and sales calls being made while Mr.
Knechtel was dressed in Lansing Police Department uniform, be transmitted to the
Chief of Police. Chairman Mertz agreed to contact the Internal Affairs
Department of the Lansing Police Department and the Department of Management
and Budget, Office of Purchasing of the State of Michigan with regard to this
information.
Andrews Request for Investigation-Letter to Mr. Andrews: Chairman Mertz
has not written the letter authorized by the Board informing him of the Board's
decision that this matter does not involve an ethical situation and that they decline
to take further action with regard to his complaint. Mr. Andrews protested the
decision of the Board regarding his complaint.
Disclosure, Melvin McWilliams: The City Attorney will memo the Board
outlining the procedures used in these negotiations with respect to both the
McWilliams and Wager disclosures.
Disclosure, Susan Wager: See McWilliams disclosure.
Request for Opinion from Jack A. Nelson: See Nelson Opinion #19.
Request for Opinion from Councilmembers Lilly and Beal: It was the
feeling of the Board that they should revisit Opinion #2 and issue an additional
opinion on this matter. Chairman Mertz requested an Advisory Memorandum
from City Attorney Knot regarding the legal issues involved in conflicts of interest
and employment status with regard to participation in other community groups.
Motion by Member Cook that the Board issue an Advisory Opinion with
4
respect to the inquiry from Councilmembers Lilly and Beal.
Motion carried 510.
Benavides: Sparrow Hospital Expansion:
Motion by Member Rhodes that the Board investigate the issue
concerning Councilmember Benavides, as requested by the Leeman and Bolt
letters of complaint, to determine whether, or not, probable cause exists to
believe that a violation of the Code of Ordinances, pursuant to Chapter
290.03(a), occurred.
Motion carried 510.
City Clerk Slade was directed to write the following letters:
(1) . To the Bishop of the Lansing Diocese asking if Councilmember
Benavides had the authority to sever the relationship between Cristo Rey and
Sparrow Hospital, and other related questions.
(2) To Karen Winkler-Swanson, President of the Sparrow Hospital
Foundation to ascertain whether, or not, Councilmember Benavides has a
continuing relationship, of any sort, with the Foundation.
(3) To Joseph Damore, President of Sparrow Hospital, to ascertain whether,
or not, there is a continuing relationship, of any sort, between Cristo Rey and
Sparrow Hospital. This letter should ask Mr. Damore to detail what ties
previously existed and how they were severed. The Board must determine that all
of the existing ties were severed and get clarification as to what `terminated' means
in reference to this situation.
(4) To Councilmember Benavides affording him the opportunity to answer
these same questions.
Chairman Mertz directed the City Clerk to procure a copy of the video tape
of the July 6, 1993 Council Meeting.
Motion by Member Rhodes to authorize the City Clerk to mail these
letters after review by Chairman Mertz.
Motion carried 510.
NEW BUSINESS
5
Disclosure. John P. Ruge: (See Complaint received from Paul Scott)
Disclosure, Rick Lilly: Tabled for one month. City Clerk Slade was
directed to write a letter to Councilmember Lilly expressing the Board's
appreciation to him for filing this disclosure.
Disclosure, Mark Canady: Received and placed on file. City Clerk Slade
was directed to write a letter to Councilmember Canady expressing the Board's
appreciation to him for filing this disclosure.
Disclosures, Donald Knechtel Q):
Complaint received from Paul Scott:
Motion by City Attorney Knot that the Board Issue an Advisory Opinion
as to whether, or not, the disclosure filed by Mr. Ruge, together with his
abstention on votes relating to the Lansing Neighborhood Council, satisfies the
law.
Motion carried 510.
The Board directed the City Clerk to write a letter to Sid Worthington,
Interim Director of the Department of Planning and Neighborhood Development
requesting the appearance of Eleanor Love and Emil Winnicker at the next Board
of Ethics meeting. This issue was scheduled for placement on the November 23,
1993 Board of Ethics Agenda. City Attorney Knot agreed to check into the
existence of case law regarding this situation.
PUBLIC COMMENT
Paul Scott addressed the Board regarding Councilmember Benavides's vote
on the Sparrow Hospital issue.
ADJOURNMENT
Motion by City Attorney_Knot to adjourn.
6
Motion carried 5/0 meeting adjourned at 7:40 P.M.
Respectfully submitted, "
DEBORAH K. MINER
Recording Secretary
Date Approved: . 12/28/93
7
12-29-93PO4 : 35 RCVD
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
THURSDAY, 9/30/93, 6:00 P.M.
10TH FLOOR COUNCIL CHAMBERS, LANSING CITY HALL
The meeting was called to order at 6:08 p.m. in the 10th floor council chambers, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Public Member
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
K. J. Langschwager (1328 Prospect)
Tim Makinnen, Lansing State Journal
Harold Leeman, Jr. [529 N. Francis]
Russell Smith (403 Rosadell)
Ann Rogozinski (13160 Hitching Post)
Mary Rogozinski (14552 Boichot Road)
Steve Harry (3125 Tecumseh River)
Bernie Meissner (635 LaSalle Blvd.)
Ken Vaughan (114 Garden)
Sandra Shafley (918 McKim)
APPROVAL OF AGENDA:
Agenda approved as submitted
SECRETARY'S REPORT;
None
1
CHAIR'S REPORT:
Chairperson Mertz stated that each board member will be given five minutes to
make comments regarding Opinion #20 prior to the taking of a vote on this opinion.
OLD BUSINESS:
Early Retirement Investigation
Board members Stuart Dunnings, Jr.; Marilynn Slade, Jane Rhodes, Don Cook
and John Mertz all made comments regarding the board's investigation into the early
retirement incentive plan and Opinion #20.
Roll call vote on Opinion #20:
YEAS: Don Cook, John Mertz, Jane Rhodes, Marilynn Slade
NAYS: Stuart Dunnings, Jr.
Opinion #20 was adopted by the board.
PUBLIC COMMENTS:
The following individuals made comments:
K. J. Langschwager
Ken Vaughan
Harold Leeman
Lloyd Teets
Mary Haney
There being no further business, meeting adjourned at 6:50 P.M.
Respectfully submitted, ^^
Q-�
MARILYNN SLA E
City Clerk/Secretary
Date Approved: 12/28/93
2
iL-29-93PO4 : 35 RCVL
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, 9/28/93, 6:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 6:08 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Public Member
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Russell Terry, 121 E. Mt. Hope
Marijo Vollman, TV-10
Tim Makinnen, Lansing State Journal
Harold Leeman, Jr. [529 N. Francis]
Russell Smith (403 Rosadell)
Fred Johnson (2572 W. Mt. Hope)
Tim Lewis (500 S. Pine #1015)
Mary Massoglia (2911 Cooley)
Ann Rogozinski (13160 Hitching Post)
Mary Rogozinski (14552 Boichot Road)
Amy Jordan (WITL)
Alexander Bolt (1230 Reo Road)
Jo Dee Ott (1230 Reo Road)
Steve Harry (3125 Tecumseh River)
Vivian Bloom (227 S. Eighth)
Paul M. Scott (412 W. Kilborn)
APPROVAL OF AGENDA:
Agenda approved as submitted
1
SECRETARY'S REPORT;
Approval of Minutes - Motion by Member Cook to approve minutes of the
September 23, 1993 meeting.
VOTE: 4/0; Member Dunnings abstaining
Correspondence Received - Secretary Slade reported that former Mayor Terry
McKane had submitted a letter to the board; copies have been given to all board
members.
CHAIR'S REPORT:
Chairperson Mertz stated that board members now have a copy of draft opinion
#6M. Board recessed to review this draft.
OLD BUSINESS:
Early Retirement Investigation
Board called back from recess at 6:43 P.M. The board discussed in detail draft
opinion #6M.
PUBLIC COMMENTS:
None
There being no further business, meeting adjourned at 1:00 A.M.
Respectfully submitted,
MARILYNN SLADE
City Clerk/Secretary
Date Approved: 12/28/93
2
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
THURSDAY, 9/23/93, 6:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 6:18 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member �=
Marilynn Slade, City Clerk, Secretary ='
BOARD MEMBERS ABSENT: Stuart Dunnings, Jr. (Excused)
A QUORUM WAS PRESENT
OTHERS PRESENT:
N
C.r"l
Harold Leeman, Jr. [529 N. Francis]
Russell Smith (403 Rosadell)
Lloyd Teets (116 E. Elm St.)
K. J. Langschwager (1328 Prospect)
Others were present but sign-in sheet was missing
SPECIAL MEETING DATES:
September 28, 1993 6:00 p.m.
September 30, 1993 6:00 p.m.
APPROVAL OF AGENDA:
Agenda approved as submitted
SECRETARY'S REPORT;
Approval of Minutes - Motion by Member Rhodes to approve minutes of the
September 21, 1993 meeting.
VOTE: 4/0; Member Dunnings absent
1
Correspondence Received - None
CHAIR'S REPORT:
Chairperson Mertz stated that board members should all have received a revised
draft opinion from Stuart Dunnings and from himself (his labeled Draft 4M). Motion
by Secretary Slade that the board work from draft 4M submitted by Chairperson
Mertz:
VOTE: 4/0; Member Dunnings absent
OLD BUSINESS:
Early Retirement Investigation
A discussion was held regarding distribution of the board opinion. It was
agreed that copies of the opinion will be distributed first to the citizens who filed
complaints and then to councilmembers;the current mayor; city attorney; department
heads (where applicable); and to the former mayor and clerk.
The remainder of the evening was spent with board members working on the
opinion.
PUBLIC COMMENTS:
The following individuals made comments:
K. J. Langschwager
Lloyd Teets
Russell Smith
Harold Leeman
The board then discussed items to be considered as part of the board opinion.
There being no further business, meeting adjourned at 11:15 P.M.
Respectfully submitted,
MARILYNN S AL DE
City Clerk/Secretary
Date Approved: Sept. 28, 1993
2
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, 9/21/93, 6:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 6:08 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Member [Arrived at 6:35 P.M.]
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Harold Leeman, Jr. [529 N. Francis] ,
Sandra Shafley [918 McKim] _
Lisa Zbikowski [WKAR FM 901
Amy Jordan [WITL News]
Russell Smith (403 Rosadell) f
Colin Keclawy (1314 W. Shiawassee) co
Lloyd Teets (116 E. Elm St.)
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SPECIAL MEETING DATES:
September 23, 1993 6:00 p.m.
APPROVAL OF AGENDA:
Chairperson Mertz made the following additions to the Agenda:
1. Early Retirement Investigation
(a)-Interview of Cleophus Boyd, Executive Assistant, Mayor's Office
(b)-General Discussion
1
SECRETARY'S REPORT;
Approval of Minutes - Motion by Member Cook to approve minutes of the
September 16, 1993 meeting.
VOTE: 4/0; Member Dunnings absent at time of vote
Correspondence Received - City Clerk Slade reported that she had received a
letter from Jo Flaherty stating that she would not be in attendance at this meeting.
Copies of this letter were distributed to all board members.
CHAIR'S REPORT:
Chairperson Mertz stated that board members should all have received a revised
draft opinion from Stuart Dunnings and from himself (his labeled Draft 3M).
OLD BUSINESS:
Early Retirement Investigation
Board members interviewed Cleophus Boyd, Executive Assistant to the Mayor.
This interview was placed on audio tape and these tapes are on file in the City Clerk's
Office.
PUBLIC COMMENTS:
The following individuals made comments:
Lloyd Teets
Paul Scott
Harold Leeman
The board then discussed items to be considered as part of the board opinion.
There being no further business, meeting adjourned at 9:30 P.M.
Respectfully submitted,
e �
MARILYNN SLADE`1
City Clerk/Secretary
Date Approved: Sept. 23, 1993
2
MINUTES
LANSING BOARD OF ETHICS
SPECIAL MEETING
THURSDAY, 9/16/93, 7:00 P.M.
10TH FLOOR CONFERENCE ROOM, LANSING CITY HALL
The meeting was called to order at 7:08 p.m. in the 10th floor conference room, City
Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Jane Rhodes, Public Member
Marilynn Slade, City Clerk, Secretary
Stuart Dunnings, Jr., Special Member
BOARD MEMBERS ABSENT: None
A QUORUM WAS PRESENT
OTHERS PRESENT:
Margaret Herp (906 Stanley St.)
Donna M. Collins (225 Moores River Dr)
Dick Collins (225 Moores River Dr)
Dennis Sykes
Mary Massoglia (2911 Cooley Dr)
Mary Rogozinski (14552 Boichot Rd)
Ann Rogozinski (13160 Hitching Post)
Russell Smith (403 Rosadell)
Harold Leeman, Jr. (529 N. Francis)
Walter M. Jones (215 Rumsey)
Donald Bryhan (1510 W. Mt. Hope)
B. Volpe (6641 Bellows Ct., West Bloomfield)
K. J. Langschwager (1328 Prospect)
Colin Keclawy (1314 W. Shiawassee)
Steve Harry (1325 Tecumseh River)
Rita Deason (2936 Quincy Lane)
Lloyd Teets (116 E. Elm St.)
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�1 771
SPECIAL MEETING DATES:
September 21, 1993 6:00 p.m.
September 23, 1993 7:00 p.m.
APPROVAL OF AGENDA:
Chairperson Mertz made the following additions to the Agenda:
-Interview of Richard Putney, former Labor Relations Director
-Audio Tape of a WKAR Interview with former Mayor McKane
-Video Tape of the 4/13/92 City Council Meeting Review
SECRETARY'S REPORT;
Approval of Minutes - Motion by Member Cook to approve minutes of the
September 2, 1993 meeting.
VOTE: 5/0
Correspondence Received - City Clerk Slade reported that she had received
letters from Jan Lazar and Steve Duarte; copies were made available to board
members. The Chairperson also made available a detailed breakdown of pension
benefits received that were compiled by Russell Smith. Member Dunnings stated that
he had distributed a copy of an opinion from the City Attorney to all board members.
Member Dunnings also made available a letter dated July 8, 1993, received from
Karen Brewington. The Secretary will make copies of this letter for all board
members.
CHAIR'S REPORT:
Chairperson Mertz stated that he appreciated Member Dunnings submitting a
draft regarding the early retirement opinion. Chairperson Mertz submitted his draft of
an opinion and asked that all board members review these opinions and get back with
him as soon as possible with any comments on these opinions.
OLD BUSINESS:
Early Retirement Investigation
Board members interviewed Richard Putney. This interview was placed on
audio tape and these tapes are on file in the City Clerk's Office.
2
Following this interview, the board decided to invite Cleophus Boyd and Jo
Flaherty, both staff members of the Mayor's Office, for brief interviews at the
beginning of the September 21st meeting. Secretary Slade was instructed to contact
these individuals.
PUBLIC COMMENTS:
The following individuals made comments:
Lloyd Teets
Donna Collins
Harold Leeman
The board held a discussion regarding completion of the board opinion. Included in
this discussion was whether or not the board would rely on testimony received since
this testimony was not taken under oath. Member Rhodes wished to state for the
record that she had a problem with the testimony of David Dunckel on August 31 st.
She stated that she received a phone message from Chairperson Mertz on August
23rd that Mr. Dunckel had something important he wanted to present to the board.
Mr. Dunckel stated on the 31 st that he became upset when he read the report in the
newspaper of Mayor Crawford's testimony to the Board on August 24th and decided
to bring it to the attention of the board.
There being no further business, meeting adjourned at 10:15 P.M.
Respectfully submitted,
MARILYNN SLADE
City Clerk/Secretary
Date Approved: September 21, 1993
3
12-29-93PO4 : 34 R
MINUTES
LANSING CITY BOARD OF ETHICS
SPECIAL MEETING
TUESDAY, DECEMBER 14 1993 - 7:00 P.M.
CITY COUNCIL CHAMBERS, LANSING CITY HALL
The meeting was called to order at 5:00 P.M. in the loth Floor Conference Room,
City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Marilynn Slade, City Clerk
BOARD MEMBERS ABSENT:
Jane Rhodes, Excused
Al Knot, City Attorney, Excused subject to explanation
A QUORUM WAS PRESENT
OTHERS PRESENT:
Deborah K. Miner, Recording Secretary
Lloyd Teets [116 E. Elm St.]
Harold Leeman [529 N. Francis]
Paul M. Scott [412 W. Kilborn]
NEXT REGULAR MEETING DATE:
December 28, 1993 5:00 P.M.
APPROVAL OF AGENDA
It was the consensus of the Board that the agenda be approved with changes
noted.
SECRETARY'S REPORT:
Approval of Minutes: Approval of the minutes of the September 30, 1993
and October 26, 1993 meetings was deferred to the Regular Meeting scheduled for
December 28, 1993.
Approval of Ethics Board Calendar for 1994: Deferred to the Regular
Meeting scheduled for December 28, 1993.
Correspondence Received and sent since last meeting: Letter from Jennifer
M. Grau, Lansing Neighborhood Council Director; deferred until the January 1994
meeting.
Response from Lucile Belen regarding the Leeman/Shunk Complaint;
Motion By Member Cook that the Secretary write a letter to Mr. Leeman and Mr.
Shunk explaining that the Board declines to answer their complaint and stating that
it does not reflect on the merit of the complaint itself.
MOTION CARRIED 3/0
Letter from Donald Cook to Gary Andrews; regarding his complaint about
Councilmember Robert Brockwell was written and sent.
Response from Joseph Damore, Sparrow Health System to questions asked
by the Board; deferred to the January 1994 meeting.
Response from Bishop Kenneth Povish, Diocese of Lansing; deferred to the
January 1994 meeting.
Complaint filed against Sue Eby/Jim McCue by Gay Powers; referred to the
Supervisor of the Building Safety Department.
Complaint filed against Sue Eby by Ann Rogozinski; deferred to the January
1994 meeting.
Complaint filed against Mark Canady by Paul Scott; Motion by Member
Cook "That this complaint be referred to the City Attorney with a request for
response".
MOTION CARRIED 3/0
Complaint Filed against Joan Sheldon by Paul Scott; City Clerk Slade was
directed to request an affidavit of disclosure from Ms. Sheldon.
Complaint filed against Sue Eby by Frank Cremins; deferred to the January
1994 meeting.
Complaint filed against Ellen Beal by Kim Bowyer; Motion by Member
Cook "That this complaint be referred to the City Attorney".
MOTION CARRIED 310
CITY ATTORNEY'S REPORT:
The Board Directed the City Clerk to write a letter to Stephanie Whitbeck
inviting her to the next meeting, December 28, 1993.
CHAIR'S REPORT:
The Chair did not make a report
OLD BUSINESS:
1. Revised Ethics Ordinance; deferred to the January 1994 meeting
2. Revised Rules of Procedure; deferred to the January 1994 meeting
3. Leeman Request for Investigation #2; City Clerk Slade will write the
letter that Member Rhodes was directed to write
4. Knechtel Opinion; Opinion #18 deferred to the January 1994 meeting
5. Andrews Request for investigation; completed
6. Disclosure, Melvin McWilliams; deferred to the January 1994
meeting
7. Disclosure, Susan Wager; deferred to the January 1994 meeting
8. Request for Opinion from Councilmembers Lilly and Beal; deferred
to the January 1994 meeting
9. Benavides: Sparrow Hospital Expansion; deferred to the January 1994
meting
10. Ruge Opinion; deferred to the January 1994 meeting
11. Disclosure, Rick Lilly; Placed on the agenda for the December 28,
1993 meeting
PUBLIC COMMENT
Harold Leeman protested the decision of the Board regarding his complaint
about Lucile Belen.
Paul Scott said he filed his complaint on Joan Sheldon because of her vote
on the Zoning Appeals Board. He stated that she even voted on whether, or not,
she would be recused from the issue. The Assistant City Attorney was present at
this vote and did not instruct her not to vote on her recusal.
ADJOURNMENT
Motion by Member Cook to adjourn. Motion carried 3/0 meeting adjourned
at 6:25 P.M.
Respectfully submitted,
DEBORAH K. MINER
Recording Secretary
Date Approved: 12/28/93
MINUTES n:_2«_ 5 : 3 2 N'c V
LANSING CITY BOARD OF ETHICS
REGULAR MEETING
TUESDAY, DECEMBER 28 1993 - 5:00 P.M.
CITY COUNCIL CHAMBERS, LANSING CITY .HALL
The meeting was called to order at 5:00 P.M. in the loth Floor Conference Room,
City Hall, Lansing, Michigan.
BOARD MEMBERS PRESENT:
John Mertz, Chairperson
Don Cook, Vice-Chairperson
Marilynn Slade, City Clerk
Jane Rhodes, Member
BOARD MEMBERS ABSENT:
Al Knot, City Attorney, not excused
A QUORUM WAS PRESENT
OTHERS PRESENT:
Stephanie Whitbeck [620 W. Ionia]
Harold Leeman [529 N. Francis]
Paul M. Scott [412 W. Kilborn]
NEXT REGULAR MEETING DATE:
January 25, 1994; 5:00 P.M.
APPROVAL OF AGENDA
It was the consensus of the Board that the agenda be approved.
SECRETARY'S REPORT:
Approval of Minutes: Motion by Vice Chairperson Cook to approve the
minutes of the 9/28/93 meeting. VOTE: 4/0
Motion by Vice Chairperson Cook to approve the minutes of the 9/30/93 meeting.
VOTE: 4/0
1
Motion by Vice Ch-' -*person Cook to approve the 'nutes of the 10/26/93
meeting. VOTE: 4/0
Motion by Vice Chairperson Cook to approve the minutes of the 12/14/93
meeting. VOTE: 3/0, Member Rhodes abstaining as she was absent from the
meeting.
Approval of Ethics Board Calendar for 1994: Motion by Vice Chairperson
Cook to approve the regular meeting schedule for 1994. VOTE: 4/0
Correspondence Received and sent since last meetings Letters received from
Councilmember Tony Benavides, Council President Mark Canady and City
Attorney Al Knot were received and distributed to members. Chairperson Mertz
wanted it noted for the record that City Attorney Knot's Memo refers to a "John
Rhodes" and that it should refer to "John Mertz".
CITY ATTORNEY'S REPORT:
None
CHAIR'S REPORT:
The Chair did not make a report
OLD BUSINESS:
Motion by Member Rhodes to direct Secretary Slade to write a letter to
Councilmember Rick Lilly requesting a copy of the Department of Transportation
policy that requires him to recuse himself from voting on issues relating to the
Department. VOTE: 4/0
Stephanie Whitbeck was present to respond to members questions regarding
her Affidavit of Disclosure submitted on 11/3/93. Ms. Whitbeck stated that she
did not participate in any discussion or in the vote of the Historic District
Commission, of which she is a member, relative to the approval for the use of
Historic District Commission funds in the acquisition of 403 Sycamore by a buyer.
Ms. Whitbeck received a commission from the sale of this property as a sales
representative of Kellogg Realty. Ms. Whitbeck stated that she did not complete
any of the forms submitted by the potential buyer or any of the applications.
Based upon testimony received, Board members felt that Ms. Whitbeck did the
proper thing by submitting her Affidavit of Disclosure and recusing herself from
the vote on this matter. The Board, by consensus, agreed to receive Ms.
Whitbeck's Affidavit of Disclosure and place it on file with no further action
required.
2
NEW BUSINESS:
Board members held a brief discussion relative to the terms of office of the
public members. It was agreed that Chairperson Mertz would meet with the new
administration to discuss this issue as well as possible educational measures that
could be implemented to inform city employees and board members of the
provisions of the Ethics code.
PUBLIC COMMENT:
The following members of the public made comments:
Harold Leeman
Paul Scott
ADJOURNMENT
There being no further items on the agenda, the Board adjourned at 5:55
P.M.
Respectfully submitted,
a
MARILYNN SLADE
Board Secretary r�
Date Approved: 2/22/94
3