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Home My WebLink About1997 Ethics Minutes -ALL in r m o• H w 0 �t m sD 5m a Zo m :K m w W R RH w Ln(D N w N �w O 0 V)>4 4 > P. 'ti H PI m GG(ImGwbwm0) r H O R'0 a r 7'C H H CY 7 r m x N( m r:GW m v ' aC) (DD CDb'R�o-j ODH m ~ r H r r r m o �ko w��%0rN� a N ~ r.i o'i%o%o- E ID o Io r a r ko 7 F rh C7 ko 13 J R io � m r� CT7 R m H o � M y N m 0 O (D N w a 0 a o '< 0 0 • M e ur: 2: GI I MINUTES LANSING CITY BOARD OF ETHICS L, , ,S1ING CITY CLERK REGULAR MEETING JANUARY 14. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER.AT::5'.;3:O P:Mj:,T.N;THE::NI;NTH FLOOR CONFERENCE ROOM, CITY .......:..:...:::........::::.::.....:.............:..:.........:..:.... ALL LANSING,, MICHIGAN. .............................................. BOARD MEMBERS P.RESENT; ::::DA`VIIDLEHMANN;;;;CHAIf2MAN DR . 00 ALD KURPER, VICE CHAIRMAN:': .. DR, GEORGIA 1L : JOHNSON,, PUBLIC MEMBER ... . .. `'DAVID KIMBALL+'PUBLIC MEMBER' jCOHN: ME}ZTZ,. PUBLIC MEMBER IEXCIJSEP. . .: ROBERT:NOLE; PUBLIC MEMBER .. ELLEN N `SULLIVAN,.'PUBLIC. MEMBER ABSENT. ,; JOAN TREZIS.E, PUBLIC MEMBER 1EXGjUSEDl A QUORUM WAS::PRESENT : .. OTHERS PRESENT; ::.. DEBORAH K. MINER, RECORDING SECRETARY WENQALL HALL, ASSIST : CITY.ATTORNEY APPROVAL:OF AGENDA; .:: . . M0710N BY PUE;LIC MEMBER KIMBALL TO:'APPROVE THE AGENDA AS SUBMI tTEC? : MOTION CARRIED.7/Q SECRETARY'S REPORT:.. 1996MOTIONAPPROVAL BYVICE-CHAIRMAN KUIPER TO CORREC:w HE.MINUTES BY NOTING.THAT HIS.ABSENCE FROMj.THAT:NIEETIN;G WAS EXCUSED, AND TO APPROVE.71HE MINUTES QF DECEMBER I`O,` 1996 AS AMENDED. MOTION CARRIED 1/0 CORRESPONDENCE::RECEIVED AND SENT.SINCE LAST MEETING: NONE NEXT REGULAR MEETING DATE: rLBRIJARY 1 1 , 1997. CITY ATTORNEY'S REPORT: JANET & MERRY LAZAR V CITY OF LANSING BOARD OF ETHICS, ET.AL., COPIES OF THE OPINION & ORDER OF NUDGE COLLETTE WERE DISTRIBUTED TO BOARD MEMBERS. IT WAS NOTED THAT FUTURE CORRESPONDENCE OF THIS TYPE SHOULD BE DISTRIBUTED WITHOUT COVER LETTERS 1 ATTACHED. MR. HALL REPORTED THAT THE ETHICS BOARD HAS BEEN CLEARED IN THIS MATTER. ISSUES REMAIN PENDING FOR INTERNAL AUDITOR KOESSEL, FORMER BOARD CHAIRMAN MERTZ, AND SPECIAL ASSISTANT CITY ATTORNEY DOWNS. CHAIR'S REPORT: THE CHAIR DID NOT GIVE A REPORT. OLD BUSINESS: REVISED DRAFT OF THE CITY OF LANSING ETHICS MANUAL; MOTION BY VICE-CHAIR KUIPER THAT THIS MATTER BE TABLED INDEFINITELY. MOTION CARRIED 7/0 NEW BUSINESS ADJOURNMENT MOTION BY PUBLIC MEMBER JOHNSON TO ADJOURN. MOTION CARRIED 7/0 MEETING ADJOURNED AT 6:40 P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: 2 Y r...I !r fy i {i i, i fi.l'1 i J• L�. MINUTES Uil',ISINO "ITY CLERK LANSING CITY BOARD OF ETHICS REGULAR MEETING TUESDAY, 2/1 1/97. S:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED To ORDER„AT;;5.3Q,',P M:;:::fW::THE;NI:NTH FLOOR CONFERENCE ROOM, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PA SENT DAVID LEHMANN; CHAIRMAN,....:.::.';' . ... DR .DONALD KUP:PEFt, \/ICE CHAIRMAN DR, ,GEORGIA L.'. JOHNSON, PLJBLIC,'.MEMB:ER :ROBERT NOLE PUBLIC :MEMBER .:' 4LEN N LI SULVAN, PUBLIC' MEMBER ...., . :::JbANTREZJSE. PUBLIC; MEMBER::::: sw ABSENT:.;; DAVID KIMBALL, PUBLIC MEMBER �EXCUSEp) JOHN MERTLj, PUBLIC MEMBER A QUORUM WAS!PRESENT ,... OTHERS PRESENT;:.:, .... MARILYNN S;LADE, (CITY CLERK,;:;SECRETARY;I DAVID WIENER, EXE A CUTIVE Ss:ISTANT TO M:AYOR,NOLUSTER . . JIM SMIERTKA CITY ATTORNEY WENDELL HALL, ASSISTANT CITY ATTORNEY APPROVAL OF AGENDA :. MOTION BY.:PUBLIC;MEMBER TREZISE TQ APPROVE THE AGENDA AS SUBMITTED.. MOTION CARRIED 6/O ... . SEC RETARVOS:REPORT: ... APPROVAL OF MINUTES OF: JANUARY :.LA 1 997 ,! MoTioN BY VICE-CHAIRMAN KUIPER TO APPROVE TH.E..MINUTES. OF.THE.JAUA 1 4, 1 997 MEETING AS SUBMITTED. .__......... ......... N RY ........ _.._........... __.........._._..... ........__ _................. .............. .... _............... _......._.......... MOTION CARRIED7[O.s :::::::: :. CORRESPONDENCERECEIVED AND SENT SINCE_LAST MEETING: NONE NEXT REGULAR MEETING DATE: MARCH 1 1 , 1997. CITY ATTORNEY'S REPORT: JIM SMIERTKA REPORTED THAT THE LAZAR LAWSUIT IS PRETTY MUCH FINALIZED WITH THE EXCEPTION OF ISSUES RELATING TO GREG KOESSEL AND JOHN MERTZ. HE FEELS THESE WILL ALSO BE DISMISSED. THE CITY ATTORNEY ALSO UPDATED BOARD MEMBERS ON THE STATUS OF LITIGATION RELATIVE TO FORMER MAYOR MCKANE AND CITY CLERK BLAIR. FORMER MAYOR MCKANE STILL HAS AN APPEAL PENDING AND HE IS ALSO SEEKING A SEPARATE 1 ACTION BASED ON CONTRACT LAW. HE EXPECTS THAT ALL LITIGATION RELATIVE TO FORMER MAYOR MCKANE WILL BE RESOLVED BY THE END OF 1997. FORMER CITY CLERK BLAIR HAS NO PENDING LITIGATION AT THIS POINT AND HAS REIMBURSED THE CITY FOR THE COSTS THAT WERE BILLED TO HIM. FORMER FINANCE DIRECTOR DUARTE HAS AN APPEAL PENDING AND NOTHING IS EXPECTED TO HAPPEN ON THIS APPEAL DURING 1997. THE CITY ATTORNEY ALSO REVIEWED FOR BOARD MEMBERS THE OPINIONS THAT WERE ISSUED BY ETHICS BOARD INDEPENDENT PROSECUTORS WTH REGARDS TO ALVAN KNOT, TONY BENAVIDES, ALFREDA SCHMIDT, TERRY MCKANE, STEPHEN DUARTE, JANET LAZAR, AND Jim BLAIR. THE EARLY RETIREMENT ISSUE WAS THOROUGHLY REVIEWED BY THE INGHAM COUNTY PROSECUTOR, THE STATE POLICE, THE STATE ATTORNEY GENERAL, THE CITY ATTORNEY AND ETHICS BOARD INDEPENDENT PROSECUTORS. MR. SMIERTKA FEELS THERE IS NOTHING FURTHER THAT CAN BE DONE WITH THIS MATTER. CHAIR'S REPORT: THE CHAIR DID NOT GIVE A REPORT. OLD BUSINESS: REVISED DRAFT OF THE CITY OF LANSING ETHICS MANUAL; BOARD MEMBERS REVIEWED THE REVISIONS TO THIS MANUAL. THEY SUGGESTED THAT THE MANUAL BE MODIFIED TO ADD A DISCLAIMER STATEMENT THAT EXAMPLES PROVIDED ARE NOT INCLUSIVE. THEY ALSO ASKED THAT THE DATE OF PUBLICATION OF THE MANUAL BE ADDED AS WELL AS INFORMATION ON THE STRUCTURE OF THE BOARD. THE BOARD SECRETARY AGREED TO MAKE THE SUGGESTED CHANGES AND RETURN A NEW DRAFT TO BOARD MEMBERS WITHIN THE COMING WEEK. BOARD MEMBERS ASKED THE SECRETARY TO INVITE PERSONNEL DIRECTOR SHARON BOMMARITO TO THE MARCH MEETING SO THEY CAN BEGIN DISCUSSION OF TRAINING OF ALL CITY EMPLOYEES ON THIS NEW MANUAL. NEW BUSINESS DAVID WIENER WAS PRESENT TO ANSWER ANY QUESTIONS FROM THE BOARD RELATIVE TO EARLY RETIREMENT. HE ALSO DISCUSSED THE NEW ETHICS MANUAL AND THE TRAINING THAT WOULD BE REQUIRED. MOTION OF EXCUSED ABSENCE MOTION BY PUBLIC MEMBER TREZISE TO EXCUSE MEMBER KIMBALL FROM TONIGHT'S MEETING. MOTION CARRIED 6/0 ADJOURNMENT THERE BEING NO FURTHER BUSINESS, THIS MEETING OF THE BOARD OF ETHICS ADJOURNED AT 6:50 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE CITY CLERK/SECRETARY DATE APPROVED: MARCH 1 1 , 1997 2 APR MINUTES e BOARD OF ETHICS L�ihIJI(dv CITY CLERK REGULAR MEETING MARCH 1 1 , 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5 ..' P M:;-:!N THE:NINTH:'.FLOOR CONFERENCE ROOM, CITY HALL, LANSING, MICHIGAN, BOARD MEMBERS_:PRESENT:' DAVID.LEHMANN CHAIRMAN: pR DONALD KUI'PER, VICE`GHAIR:MAN DR. 'GEORGIA::L JOHNSON- -PUBLIC MEMBER DAVId:KIMBALL, PUBLIC MEMBER:: RgBERT NOL E, PUBLIC MEMBER.:. ELLEN N .SULLIVAN, PUBLIC :MEMBER . JOHN MERTZ, PUBLIC MEMBER.tEXCUSED7 MOAN TREZISE,. PUBLIC MEMBER:CEXCUSED) , A QUORum::WAS PRESENT.. OTHERS PRESENT. JIM SMIERTiCA, -CITY ATTORNEY - . DEBORAH K. ;MINER, RECORDING SEC ::: :RE'f WEN DALL HALL,.ASSIST CITY AT oRNEY DAVID.WIENER, EXECUTIVE ASSISTANT.Tb MAYOR,HOLLISTER SHARON 'BOMMARITO, PERSONNEL DIRECTOR: APPROVAL'OV:AGEN'bA: MOTION BY`:PUHLIC: MEMBER:KUIPER TO'APPROVE THE-AGENDA WITH :. THE ADDITIC$N OF:A::MEMO FROM CITY ATTORNEY SMIERTKA.OFFERING CLARIFi CAT I:ON OF THE PROCESS FOR FILING..STATEMENTS..OF,:FINANCIAL:INTEREST::: ...-. MOTION CARRIED:.5/4 ' ... . SECRETARY'S:REP.ORT. - ..... ..._, APPR0VAL OF MINUTES`. OF: FEB..RUARY;,:I 1 1997. MOTION:,:BY PUBLIC MEMBER KIMBALL TO CORRECT THE MINUTES BYNOTING:THAT MEMBER TREZISE WAS PRESENT (AND THEREFOR NOT EXCUSED) AT THAT MEETING ANDTO AP..P..... R,OU,E: THE MINUTES OF' FEBRUARY I I 1997 As .. AMENDED. MOTION CARRIED 6/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I STATEMENTS OF FINANCIAL INTEREST RECEIVED FROM: SANDY ALLEN, KAREN SCHMIDT, TONY BENAVIDES, JEROME G. BOLES, II, DIXIE L. GILMORE, TERESE A. HORN, HOWARD 1 ETHICS BOARD MARCH 1 1 , 1 997 L. JONES, HAROLD J. LEEMAN, JR., RICHARD J. LILLY, GREG K. MARTIN, RICHARD E. REICKEL, MARILYNN SLADE, JAMES SMIERTKA, DENNIS J. SYKES, DAVID TwERINA; RECEIVED AND PLACED ON FILE 2. LETTER FROM CITY CLERK TO ETHICS BOARD MEMBERS SUBMITTING DRAFT COPIES OF CORRECTED ETHICS MANUAL; RECEIVED AND PLACED ON :FILE:;; - ............ .. ........... ................:................ EMO'. ;FRC.....C1fY ATTORNEY SMIERTKA;;CLARTFYING;;;THE: ;PROCESS FOR FILING .... STATEMENTS OF FINANCIAL IN T TERES RECEIVED AND:.PLACED ON FILE':` .. NEXT.REGLJLAR�:'MEETING: DATE:. A0kit:6 1 99.7. .. CITY ATTORNEV'S REPORT: "THE CITY ATTORNEY DID NOT GIVE A-REPORT. CHAIR'S.REPORT: .THE"'CHAIR DID NOT G.IVE A REPORT. .. OLD'BUSINESS:, REVISED DRAFT OF THE CY IT OF LANSING ETHICS MANUAL, 5ti4RON BOMMARITO, :PERSONNEL SERVICES DIRECTOR; DISTRIBUTED A PROPOSAL:REGARDING THE'hRAINING ... :.....::::..:.:........................ .... ..::: ................................................... ................. OF EMPLOYEES;REgUIRED B... NEW ETHICS ORDINANCE. SHE;REVIE1±VEp;'A'LIST;OF"EM.PLOYEES .. WHO WOULD:BESLJBJECT TO THE REQUIREMENTS'OF THE::ORDINANCE (INCLUDING EMPLOYEES OF .....Lb':.. .. ... E... 4ARp OF:::YVATER k. LIGHT, THE :POLICE :DEPARTMENT, THE:' FIR E'.:LQLPARTMENT :AND ALL ....... REMAINING ..;.EPARTMENTS OF:CITY ,G.OVE.RNNIENT .;HER:::PROPOSAL;SUGGESTS THi4T:THE::BOARD .. PARTICIPATE :IN.'A SUMMARY TRAINING BULLETIN .T BE USED:BY DEPARTMENT SUP..ERVISOF2S WHEN THEY TRAIN THEtR STAFF MEMBERS ADDITIONALf-Y, HER REC:OMMENDATLOMS..INGI:UDE T.HEI;BOARDS PARTICIPATION.:IN.:A.:TRAINI;NG VIDEO THAT WOULD.'BE FILMED'BY CHANNEL 2B FOR VIEWING BY ALL CITY EMPLb.YEE5 ANb WHIG.H COULD:E E MADE AVAILABLE.IN BOOKSTORES :THE VIDEO.WOULD BE BUILT INTO'THE TRAINING..PROCESS FOR: NEWGY:HIRED:EMPLO.Y..EES MRS. DUMARITCS:INDICATED THATfiHE:: .&s NNEL SERVICES DEPARTMENT IS.HAPPY TO WORK ...... . WITH THE BOARD TO'.DEVELOP Q TRAINING PROGRAM. MOTION BY PUBLIC:MEMBER- JoHNSON TO FORM AN AD HOC COMMITTEE ON EDUCATION AND .. _ ............... TRAINING, AND TO APPOINT MEMBERS ROBERT .. ,DAVI.D KIMBALL AND"GEORGIA JOHNSON TO THE COMMITTEE. MOTION CARRIED 6/0 CHAIRMAN LEHMANN EXPRESSED HIS COMMENDATIONS, ON BEHALF OF THE BOARD, TO MRS. BOMARITO FOR THE EXCELLENT, COMPREHENSIVE PROPOSAL SHE DEVELOPED. THE BOARD REVIEWED THE DRAFT OF THE PROPOSED ETHICS MANUAL AND MADE 2 ETHICS BOARD MARCH 1 1 , 1997 CORRECTIONS TO THE FORM AND CONTENT. MOTION BY PUBLIC MEMBER SULLIVAN TO APPROVE THE CORRECTIONS TO THE ETHICS MANUAL AND REPORT THE MANUAL OUT FOR DISTRIBUTION. MOTION CARRIED 6/0 NEW BUSINESS MOTION BY VICE-CHAIR KUIPER THAT THE CITY CLERK BE DIRECTED TO REVIEW THE STATEMENTS OF FINANCIAL INTEREST THAT ARE SUBMITTED TO THE BOARD PURSUANT TO SECTION 290.08 OF THE ETHICS ORDINANCE, AND THAT STATEMENT FORMS THAT ARE BLANK, OR CONTAIN NO INFORMATION OTHER THAN THE NAME OF THE INDIVIDUAL, BE NOTED AS RECEIVED ON THE UPCOMING AGENDA, BUT NOT TRANSMITTED TO BOARD MEMBERS. MOTION CARRIED 6/0 ADJOURNMENT MOTION BY PUBLIC MEMBER JOHNSON TO ADJOURN. MOTION CARRIED 6/0 MEETING ADJOURNED AT 7:22 P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: APRIL 6, 1997 3 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING APRIL 6. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER.AT 5:3.0 P.K IN THE' NINTH FLOOR CONFERENCE ROOM, CITY ................................ .. .................................... ... HALL, LANSING, MICHIGAN. ..::: BOARD MEMBERS PRESENT:.. DAvlb::LEHMANN, CHAIRMAN DR : DONALD KUI.PER, VICE CHAIRMAN; aa DR. GEORGIA L!_ �JOHNSONVi , Pl3BLIC;:MEMBER .. ROBERT NOLE, :PUBLIC 'MEMBER .. -;; ELLEN N, SULLIVAN, PUBLIC MEMBER ... . JOAN TREZISE. PUBLIC MEMBER ABSENT ;:.; ..; DAVID KIMBALL, PUBLIC MEMBER,...EXC USED... ... JOHN MERTZ .... A QUORUM WAS: PRESENT .... ...... OTHERS :PRESENT: ::... MARILYNN SLADE, SECRETARY:To BOARD ... ..- .. APP.ROVAL OF.AGENDA- MOTION BY CHAIRPERSON::LEHMANN::TO APPROVE THE AGENDA AS AMENDED TO ;ADD ":DEVELOPMENT OF TRAINING' PROGRAM" UNDER OLD BUSINESS. ... ............. ........ ........._......._ MOTION :CARRIED 6/b SECRETARY'S_REPORT. APPROVAL OF MINUTES OF MARCH 1 '1 , 1 997: =MOTION BY R. NOLE'TO APPROVE THE MINUTES OF MARCH I I:' 1997 AS SUBMITTED. MOTION CARRIED..6/O CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: ................... ..... .............. ......................................... ................. E AFFIDAVITS OF DISCLOSURE:FILEQ:BY G.. BRIAN SHIELDS, JULIE K. GARDNER, HENRY HERNANDEZ, AND JAMES E_B.ENNETT _ ......... .. - MOTION BY E. SULLIVAN THAT THESE EMPLOYEES, AS FILERS, BE INVITED TO THE MAY BOARD MEETING TO ANSWER QUESTIONS CONCERNING THEIR AFFIDAVITS. FURTHER, TO INVITE THEIR SUPERVISORS TO ATTEND TO ANSWER QUESTIONS REGARDING THESE AFFIDAVITS AND PERSONNEL MANAGER SHARON BOMMARITO TO ANSWER QUESTIONS REGARDING THE CITY'S PERSONNEL POLICIES. MOTION CARRIED 6/0 1 ❑� STATEMENTS OF FINANCIAL INTEREST FILED BY DAVID C. HOLLISTER, KELLIE L.WILLSON, DAVID M. WIENER AND SHARON BOMMARITO MOTION BY VICE CHAIR KUIPER THAT DAVID C. HOLLISTER'S STATEMENT BE RECEIVED AND PLACED ON FILE. MOTION CARRIED 6/0 MOTION BY JOAN TRF71SE THAT KELLIE L. WILLSON'S STATEMENT BE RECEIVED AND PLACED ON FILE. MOTION CARRIED 6/0 THERE WERE NO FINANCIAL INTERESTS DISCLOSED ON DAVID M. WIENER AND SHARON BOMMARITO'S STATEMENTS SO NO BOARD ACTION WAS NECESSARY. NEXT REGULAR MEETING DATE: MAY 1 3, 1997 CITY ATTORNEY'S REPORT: NONE CHAIR'S REPORT: NONE OLD BUSINESS: A DISCUSSION WAS HELD CONCERNING DEVELOPMENT OF THE TRAINING PROGRAM. THE AD HOC COMMITTEE ON EDUCATION AND TRAINING WILL MEET ON FRIDAY, APRIL 1 1 , 1 997 AND G. JOHNSON ASKED IF BOARD MEMBERS HAD ANY SPECIFIC THINGS THEY WOULD LIKE HER TO COVER AT THIS MEETING. NEW BUSINESS ADJOURNMENT MOTION BY E. SULLIVAN TO ADJOURN. MEETING ADJOURNED AT 6:45 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE, �7 RECORDING SECRETARY DATE APPROVED: MAY 1 3, 1 997 2 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING MAY 13. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD KUIPER, VICE-CHAIRMAN DR. GEORGIA L. JOHNSON, PUBLIC MEMBER JOHN MERTZ, PUBLIC MEMBER [EXCUSED] ROBERT NOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER ABSENT: DAVID LEHMANN, CHAIRMAN [EXCUSED] DAVID KIMBALL, PUBLIC MEMBER [EXCUSED] A QUORUM WAS PRESENT MOTION BY PUBLIC MEMBER JOHNSON TO EXCUSE CHAIR LEHMANN AND PUBLIC MEMBER KIMBALL FROM TONIGHT'S PROCEEDINGS. MOTION CARRIED 5/0 OTHERS PRESENT: JIM SMIERTKA, CITY ATTORNEY WENDALL HALL, ASSISTANT CITY ATTORNEY DEBORAH MINER, RECORDING SECRETARY APPROVAL OF AGENDA: MOTION BY PUBLIC MEMBER HOLE TO APPROVE THE AGENDA, AS AMENDED, BY MOVING THE CITY ATTORNEYS REPORT UP TO THE FIRST ITEM OF BUSINESS FOLLOWING THE APPROVAL OF THE AGENDA, AND BY ADDING AN AMENDED STATEMENT OF FINANCIAL INTEREST FILED BY DAVID WIENER, EXECUTIVE ASSISTANT TO MAYOR HOLLISTER.. MOTION CARRIED 5/0 CITY ATTORNEY'S REPORT: MR. SMIERTKA REPORTED ON AN ISSUE RAISED REGARDING INDIVIDUALS REQUIRED TO FILE STATEMENTS OF FINANCIAL DISCLOSURES BY MAY I ST OF EACH YEAR. HIS INVOLVEMENT IN THE DETERMINATION OF WHO WOULD/WOULD NOT BE REQUIRED TO FILE WAS MINIMAL, HOWEVER, HE DID RECEIVE ONE INQUIRY FROM CITY COUNCIL REGARDING FILING REQUIREMENTS FOR THEIR SENIOR LEGISLATIVE ASSISTANT. THERE ARE TWO LETTERS IN TONIGHT'S PACKET CONCERNING THIS ISSUE. HE WROTE TO COUNCIL INDICATING THAT IT WAS HIS INTERPRETATION THAT THIS EMPLOYEE IS NOT REQUIRED TO FILE, BECAUSE THEY ARE NOT IN A POLICY MAKING POSITION. THE DEFINITION OF "OFFICER" UNDER THE TERMS OF THE CHARTER IS; ELECTED OFFICIALS, APPOINTED MEMBERS OF CITY BOARDS AND COMMISSIONS, THEIR EXECUTIVE STAFF MEMBERS, AND, HEADS OF DEPARTMENTS AND DIVISIONS. WHAT IS NECESSARY IS THE FORMULATION 1 OF A DEFINITION OF "EXECUTIVE STAFF11, AND DETERMINATION OF WHO THIS DEFINITION WOULD INCLUDE. CERTAINLYTHE INTERNAL AUDITOR AND THE PRINCIPAL LEGISLATIVE ASSISTANT WOULD BE REQUIRED TO FILE. THE PRINCIPAL LEGISLATIVE ASSISTANT AND THE INTERNAL AUDITOR ARE HIRED AND APPOINTED BY CITY COUNCIL, THE ASSISTANT INTERNAL AUDITOR IS HIRED BY THE INTERNAL AUDITOR. THE SENIOR LEGISLATIVE ASSISTANT IS NOT IN A POLICY MAKING POSITION, AND THEREFORE, WOULD APPEAR NOT TO BE SUBJECTTO THE FILING REQUIREMENTS. HE HAS, HOWEVER, INDICATED IN HIS CORRESPONDENCE WITH CITY COUNCIL THAT IT IS WITHIN THE SCOPE OF THE BOARD OF ETHICS TO MAKE THEIR OWN INTERPRETATION AND REACH AN INDEPENDENT DECISION. WHAT IS AT ISSUE; IS THE FILING OF THE SENIOR LEGISLATIVE ASSISTANT AND THE ASSISTANT INTERNAL AUDITOR. IT WAS THE CONSENSUS OF THE BOARD THAT THE DETERMINING FACTOR IN THIS SITUATION IS THE QUESTION OF THE DIRECTNESS OF THE RELATIONSHIP BETWEEN THE REPORTING INDIVIDUAL AND THE 11OFFICER". THE SENIOR LEGISLATIVE ASSISTANT REPORTS DIRECTLY TO CITY COUNCIL, AND THERE IS NO OTHER REPORTING INDIVIDUAL BETWEEN THEM. MOTION BY PUBLIC MEMBER JOHNSON THAT THE CITY CLERK BE DIRECTED TO WRITE A LETTER TO ALL ELECTED AND APPOINTED OFFICIALS, AS WELL AS MEMBERS OF THEIR EXECUTIVE STAFF, INFORMING THEM THAT THEY ARE REPORTING INDIVIDUALS UNDER THE TERMS OF THE ETHICS ORDINANCE AND THATTHEY MUST FILE STATEMENTS OF FINANCIAL INTEREST NO LATER THAN JUNE 1 5, 1997. MOTION CARRIED 5/0 SECRETARY'S REPORT: APPROVAL OF MINUTES OF: APRIL 8, 1 997; MOTION BY PUBLIC MEMBER SULLIVAN TO AMEND THE MINUTES OF APRIL 8, 1 997 UNDER "OLD BUSINESS" BY REFERRING TO THE "AD HOC COMMITTEE ON EDUCATION AND TRAINING" BY NAME, RATHER THAN AS THE COMMITTEE", AND TO APPROVE THE MINUTES AS AMENDED. MOTION CARRIED 5/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I . LETTER OF RESIGNATION FROM PUBLIC MEMBER JOAN TREZISE, EFFECTIVE APRIL 29, 1 997; RECEIVED, AND PLACED ON FILE. THE CITY CLERK WAS REQUESTED TO WRITE A LETTER TO THE APPOINTING OFFICIAL, NOTIFYING THEM OF THE RESIGNATION OF PUBLIC MEMBER TRESIZE, REMINDING THE MAYOR AND CITY COUNCIL THAT THERE ARE THREE POSITIONS CURRENTLY VACANT ON THIS BOARD, AND TO INCLUDE INFORMATION RELATIVE TO WHICH POSITIONS ARE VACANT, WHETHER THEY ARE COUNCIL OR MAYORAL APPOINTMENTS, THE DATES AND TERMS EXPIRED, AND IN THE CASE OF PUBLIC MEMBER SULLIVAN, THAT SHE IS WILLING TO ACCEPT A REAPPOINTMENT. 2. MEMORANDUM FROM CITY ATTORNEY, JAMES D. SMIERTKA, REGARDING AN EXEMPTION FROM THE REQUIREMENT FOR FILING OF A STATEMENT OF FINANCIAL INTERESTS FOR THE CITY COUNCIL SENIOR LEGISLATIVE ASSISTANT; RECEIVED AND PLACED ON FILE (SEE ACTION TAKEN UNDER CITY ATTORNEYS 2 REPORT). 3. MEMORANDUM FROM ARNOLD C. YERXA, PRINCIPAL AUDITOR REGARDING HIS EXEMPTION FROM THE REQUIREMENT FOR FILING OF A STATEMENT OF FINANCIAL INTEREST; RECEIVED AND PLACED ON FILE (SEE ACTION TAKEN UNDER CITY ATTORNEY'S REPORT). 4. COPIES OF LETTERS FROM MARILYNN SLADE TO THE FOLLOWING CITY OF LANSING EMPLOYEES REQUESTING THEIR ATTENDANCE AT THE MAY 1 3, 1 997 BOARD MEETING: -SHARON BOMMARITO, PERSONNEL DIRECTOR, -EMIL WINNICKER, DEVELOPMENT DIRECTOR -HENRY HERNANDEZ, CHIEF CODE COMPLIANCE OFFICER -JULIE K. GARDNER, HOUSING REHAB AGENT -JAMES E. BENNETT, ASSISTANT PLAN ANALYST -G. BRIAN SHIELDS, MECHANICAL INSPECTOR DEFERRED TO THE JUNE 1 O, 1 997 BOARD MEETING. 5. STATEMENTS OF FINANCIAL INTEREST RECEIVED FROM: ARTHER J. WALKER, DIRECTOR OF THE HUMAN RESOURCES AND COMMUNITY SERVICES DEPARTMENT; GREG KOESSEL, INTERNAL AUDITOR; MARY E. SOVA, CORPORATE SECRETARY TO THE BOARD OF WATER & LIGHT; ROBERT W. SWANSON, DIRECTOR OF THE FINANCE DEPARTMENT; DELPHINE C. ROGERS, MAYOR HOLLISTER'S ADMINISTRATIVE ASSISTANT; KECIA COATS, MAYOR HOLLISTER'S ADMINISTRATIVE SECRETARY; ROBERT E. JOHNSON, SPECIAL ASSISTANTTO THE MAYOR; ELLEN M. BEAL, COUNCILMEMBER AT-LARGE; DOUGLAS RUBLEY, DEPUTY DIRECTOR OF THE FINANCE DEPARTMENT (ATTACHED); LINDA M. SANCHEZ, SPECIAL ASSISTANT TO THE MAYOR (ATTACHED); JILL E. RHODE, TREASURER (ATTACHED); PAUL NOVAK, COUNCILMEMBER WARD 4 (ATTACHED); JOAN E. BAUER, COUNCILMEMBER AT-LARGE (ATTACHED); LIZA ESTLUND OLSON, MAYOR HOLLISTER'S CHIEF OF STAFF (ATTACHED); JOSEPH DANDY, JR., DIRECTOR OF THE BOARD OF WATER & LIGHT (ATTACHED) MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE ON FILE THE STATEMENTS OF FINANCIAL INTEREST FILED BY ART WALKER, GREGORY KOESSEL, MARY SOYA, ROBERT SWANSON, DELPHINE ROGERS, KECIA COATS AND ROBERT E. JOHNSON, WHICH SHOW NO FINANCIAL INTEREST INFORMATION MOTION CARRIED 5/0 THE CITY CLERK WAS REQUESTED TO PROVIDE THE BOARD WITH COPIES OF THE STATEMENT OF FINANCIAL INTEREST FILED BY COUNCIL PRESIDENT BEAL. MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE ON FILE THE STATEMENTS OF FINANCIAL INTEREST FILED BY DOUGLAS RUBLEY. MOTION CARRIED 5/0 MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPTAND PLACE ON FILE THE STATEMENTS OF FINANCIAL 3 INTEREST FILED BY LINDA SANCHEZ. MOTION CARRIED 5/0 MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE AND ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY JILL RHODE. MOTION CARRIED 5/0 MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY COUNCILMEMBER NOVAK. MOTION CARRIED 5/0 MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY COUNCILMEMBER BAUER. MOTION CARRIED 5/0 MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY LIZA ESTLUND OLSON. MOTION CARRIED 5/0 MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT AND PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY JOSEPH PANDY. MOTION DEFEATED 1/4 THE CITY CLERK WAS REQUESTED TO SUPPLY THE BOARD WITH COPIES OF OTHER FINANCIAL DISCLOSURES FILED BY MR. PANDY. THE CITY CLERK WAS REQUESTED TO SUPPLY COPIES OF THE CONTRACT BETWEEN THE CITY OF LANSING AND THE ECONOMIC CRISIS CENTER, AS WELL AS A COPY OF ANY RESPONSE FROM CITY ATTORNEY SMIERTKA TO THE MEMO OF INQUIRY FROM MR. WIENER. 6. AFFIDAVIT OF DISCLOSURE FILED BY ELLEN BEAL, COUNCILMEMBER AT-LARGE; MOTION BY PUBLIC MEMBER HOLE THAT THE CITY CLERK BE DIRECTED TO WRITE TO COUNCIL PRESIDENT BEAL, AND HER HUSBAND, PETER BOSCHEFF, INVITING THEM TO ATTEND THE JUNE 1 O, 1 997 BOARD MEETING, OR THE NEXT CLOSEST MEETING FOR WHICH THEY ARE AVAILABLE, TO ANSWER QUESTIONS THAT THE BOARD MAY HAVE WITH REGARD TO THE AFFIDAVIT OF DISCLOSURE SHE HAS FILED". MOTON CARRIED 5/0 NEXT REGULAR MEETING DATE: JUNE 1 O, 1997 4 CHAIR'S REPORT: THE CHAIR DID NOT GIVE A REPORT. OLD BUSINESS: I . AD HOC COMMITTEE ON EDUCATION AND TRAINING; DEVELOPMENT OF ETHICS VIDEO; NEW BUSINESS ADJOURNMENT MOTION BY PUBLIC MEMBER MERTZ TO ADJOURN. MOTION CARRIED 5/0 MEETING ADJOURNED AT 8:05 P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: 5 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING JUNE 10. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DAVID LEHMANN, CHAIRMAN DR. GEORGIA L. JOHNSON, PUBLIC MEMBER DAVID KIMBALL, PUBLIC MEMBER (ARRIVED 5:45) ROBERT NOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER ABSENT: DR. DONALD KUIPER, VICE-CHAIRMAN [EXCUSED] JOHN MERTZ, PUBLIC MEMBER [EXCUSED] A QUORUM WAS PRESENT OTHERS PRESENT: DEBORAH K. MINER, RECORDING SECRETARY WENDALL HALL, ASSISTANT CITY ATTORNEY G. BRIAN SHIELDS, MECHANICAL INSPECTOR JULIE K. GARDNER, HOUSING REHAB AGENT JAMES E. BENNETT, ASSISTANT PLAN ANALYST JACK NELSON, BUILDING SAFETY MANAGER DENNIS LYSAKOWSKI, HOUSING SERVICES COORDINATOR APPROVAL OF AGENDA: MOTION BY PUBLIC MEMBER JOHNSON TO AMEND THE AGENDA BY ADDING A LETTER FROM COUNCIL PRESIDENT, ELLEN BEAL REGARDING THE EMPLOYMENT OF HER HUSBAND, PETER BOSCHEFF UNDER NEW BUSINESS, AND BY ADDING THE STATEMENTS OF FINANCIAL INTEREST FILED BY DAVID WIENER AND JOSEPH PANDY, JR. UNDER OLD BUSINESS, AND TO APPROVE THE AGENDA AS AMENDED. MOTION CARRIED 4/0 CITY ATTORNEWS REPORT: THE CITY ATTORNEY DID NOT GIVE A REPORT. SECRETARY'S REPORT: APPROVAL OF MINUTES OF: MAY 1 3, 1 997. MOTION BY PUBLIC MEMBER HOLE TO CORRECT THE MINUTES OF MAY 13TH, TO REMOVE THE "EXCUSED" NOTATION AFTER PUBLIC MEMBER MERTZ' NAME AND TO APPROVE THE MINUTES AS CORRECTED. MOTION CARRIED 4/0 1 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I . STATEMENTS OF FINANCIAL INTEREST FILED BY: TINA GALLANTE, ADMINISTRATIVE SECRETARY TO CITY COUNCIL; ARNOLD C. YERXA, ASSISTANT INTERNAL AUDITOR; FRANCESCA E. KNOT, SENIOR LEGISLATIVE ASSISTANT; DEFERRED TO NEXT MEETING. 2. LETTER FROM CITY CLERK SLADE INVITING COUNCIL PRESIDENT BEAL AND HER HUSBAND, PETER BOSCHEFF TO ATTEND AN UPCOMING BOARD OF ETHICS MEETING; RECEIVED AND PLACED ON FILE 3. LETTERS FROM CITY CLERK SLADE REQUESTING APPOINTMENTS TO THE BOARD OF ETHICS TO COUNCILMEMBER PAUL NOVAK AND LISA ESTLUND OLSON, MAYOR HOLLISTER'S CHIEF OF STAFF; RECEIVED AND PLACED ON FILE 4. LETTER FROM CITY CLERK SLADE TO CITY COUNCIL EXECUTIVE STAFF MEMBERS REGARDING THE FILING OF STATEMENTS OF FINANCIAL INTEREST; RECEIVED AND PLACED ON FILE NEXT REGULAR MEETING DATE: AUGUST 12, 1997 CHAIR'S REPORT: OLD BUSINESS: I . AD HOC COMMITTEE ON EDUCATION AND TRAINING; DEVELOPMENT OF ETHICS VIDEO: MR. NOLE REPORTED ON BEHALF OF THE COMMITTEE. THEY HAVE A DRAFT COPY OF THE SCRIPT FOR THE VIDEO. THE COMPANY INVOLVED IN PUTTING THE VIDEO TOGETHER IS THE PUBLIC RELATIONS FIRM FOR THE CITY, KOLT & SERKAIAN. THEY HAVE A GOOD HANDLE ON WHAT THE BOARD WANTS THE VIDEO TO COMMUNICATE. IT SHOULD BE COMPLETED SOMETIME IN JULY AND HAVE A LONG SHELF LIFE. MRS. BOMMARITO IS BEING VERY ACCOMMODATING AND HAS PLACED THE RESOURCES OF HER ENTIRE DEPARTMENT AT THEIR DISPOSAL. RECEIVED AND PLACED ON FILE 2. STATEMENTS OF FINANCIAL INTEREST FILED BY: DAVID WIENER, EXECUTIVE ASSISTANT TO MAYOR HOLLISTER; JOSEPH PANDY, JR. GENERAL MANAGER OF THE BOARD OF WATER & LIGHT DEFERRED TO THE JULY MEETING 3. AFFIDAVIT OF DISCLOSURE FILED BY ELLEN BEAL WITH REGARD TO THE EMPLOYMENT OF HER HUSBAND, PETER BOSCHEFF BY PRACTICOM. THE BOARD REQUESTED THAT THE CITY ATTORNEY SUPPLY THEM WITH THE FOLLOWING INFORMATION TO HELP CLARIFY THIS SITUATION: I ) A LEGAL OPINION AS TO THE RETROACTIVE ISSUE OF THE BOARD'S ABILITY TO ACT ON THIS CONTRACT. 2) CLARIFICATION OF THE SOLE SOURCE CONTRACT WITH PRACTICOM AND WHEN IT WAS ISSUED. 3) 2 OBJECTIVE DESCRIPTIONS OF THE HISTORY OF THE PROJECT, SPECIFICALLY RELATED TO THE DUAL PLATFORM NATURE OF THEIR WORK WITH CITY COUNCIL, AND THE ISSUE OF ONE COMPUTER SYSTEM FOR CITY COUNCIL AND ANOTHER COMPUTER SYSTEM FOR THE REMAINDER OF THE CITY. INCLUDING, THE DATE OF MR. BOSCHEFF'S EMPLOYMENT WITH PRACTICOM (DATE OF HIRE AND DATE OF TERMINATION). MR. HALL MADE A STATEMENT REGARDING HIS INVOLVEMENT WITH THE CITY COUNCIL IN THE MATTER OF THE DISMISSAL OF THEIR PRINCIPAL LEGISLATIVE ASSISTANT. BECAUSE HE MUST BE CAREFUL THAT HE DOES NOT DISCLOSE ANY PRIVILEGED INFORMATION, THIS PROJECT COULD BE REASSIGNED TO ANOTHER ATTORNEY IN THE LAW DEPARTMENT, TO PROTECT THE CITY'S INTERESTS IN THE MATTER OF THE DISMISSAL. REFERRED TO THE CITY ATTORNEY NEW BUSINESS I . INTERVIEW OF THE FOLLOWING EMPLOYEES RELATIVE TO AFFIDAVITS OF DISCLOSURE FILED BY THEM: - G. BRIAN SHIELDS, MECHANICAL INSPECTOR, BUILDING SAFETY DIVISION OF PND. CHAIRMAN LEHMANN THANKED MR. SHIELDS FOR FILING HIS AFFIDAVIT OF DISCLOSURE. THE BOARD SOLICITED THE FOLLOWING INFORMATION FROM MR. SHIELDS AND JACK NELSON, BUILDING SAFETY MANAGER: MR. SHIELDS HAS SEVERED HIS CONTACTS WITH SHIELDS AND SONS. AT THE TIME HE FILED HIS AFFIDAVIT, HE WAS A PART-TIME INSPECTOR FOR THE CITY WORKING APPROXIMATELY 20 HOURS PER WEEK. SINCE THAT TIME HE HAS ACCEPTED FULL TIME EMPLOYMENT WITH THE CITY AND RESIGNED HIS DEALINGS WITH SHIELDS & SONS. HIS PARTNERSHIP HAS BEEN DISSOLVED AND ALL OF HIS STOCK HAS BEEN LIQUIDATED. THIS IS A FAMILY OWNED BUSINESS THAT IS OPERATED BY HIS BROTHER. THE BUILDING SAFETY DIVISION HAS AN ESTABLISHED ADMINISTRATIVE POLICY THAT IS SUCH THAT HE WOULD NEVER BE ALLOWED TO INSPECTANY WORK THAT HIS BROTHERS COMPANY HAS PERFORMED. THESE INSPECTIONS WOULD BE SHIFTED TO ONE OF THE THREE OTHER INSPECTORS. THE SUPERVISOR ASSIGNS INSPECTIONS TO INSPECTORS AND IS AWARE OF MR. SHIELDS FORMER INVOLVEMENT WITH SHIELDS AND SONS. THE NAME OF THE COMPANY IS ON THE APPLICATION FOR THE PERMIT AND THE COMPUTER SYSTEM LISTS NOT ONLY THE NAME OF THE COMPANY AND IT'S OWNERS, BUT ALL LICENSED INDIVIDUALS WITHIN THE BUSINESS. THESE ARE MECHANISMS BUILT INTO THE SYSTEM TO PROTECT THE CITY. MR. SHIELDS INDICATED THAT HE WOULD BE WILLING TO FILE AN AMENDED DISCLOSURE INDICATING HIS NEW STATUS WITH SHIELDS & SONS. MOTION BY PUBLIC MEMBER SULLIVAN TO ACCEPT THE AFFIDAVIT OF DISCLOSURE FILED BY MR. SHIELDS, ALONG WITH HIS EXPLANATION OF THE CHANGE IN HIS CIRCUMSTANCES, NOTE THAT HE IS NO LONGER EMPLOYED BY SHIELDS & SONS, AND PLACE IT ON FILE WITH THE NOTATION AND NO FURTHER ACTION NECESSARY. MOTION CARRIED 5/0 - JAMES BENNETT, ASSISTANT PLAN ANALYST WITH THE BUILDING SAFETY DIVISION OF PND (MR. BENNETT HAS FILED TWO DISCLOSURES; ONE WITH RESPECT TO A CONSTRUCTION FIRM THAT HE OWNS AND OPERATES THAT CONTRACTS FOR BUSINESS WITHIN THE CITY OF LANSING, AND ONE WITH RESPECT TO A RESIDENTIAL RENTAL PROPERTY) THE BOARD SOLICITED THE FOLLOWING INFORMATION FROM 3 MR. BENNETT AND JACK NELSON, BUILDING SAFETY MANAGER: MR. BENNETT's RESPONSIBILITIES WITH BUILDING SAFETY INVOLVE HIS ANALYSIS OF COMMERCIAL BLUEPRINTS. HE WOULD ANALYZE THE PRINTS AND COMPOSE A LETTER STATING WHAT PORTIONS OF THE PARTICULAR PROJECT ARE IN COMPLIANCE (OR OUT OF COMPLIANCE)WITH THE STATE OF MICHIGAN BUILDING CODE AND THE CITY OF LANSING BUILDING CODE AND BARRIER FREE CODE. HE REVIEWS ONLY COMMERCIAL BLUEPRINTS AND DOES NOT REVIEW RESIDENTIAL PLANS. THIS IS PART OF HIS JOB DESCRIPTION. HE IS REGISTERED THROUGH THE STATE OF MICHIGAN DEPARTMENT OF LABOR FOR THE REVIEW OF COMMERCIAL AND INDUSTRIAL PROJECTS. HIS CONSTRUCTION COMPANY IS INVOLVED IN CONTRACTING OF SMALL RESIDENTIAL JOBS, LIKE ROOFS, STACKS AND VINYL SIDING, WHICH ARE INSPECTED BY THE CHIEF BUILDING INSPECTOR. SINCE HIS EMPLOYMENT WITH THE CITY OF LANSING, HE HAS INTENTIONALLY NOT TAKEN ANY JOBS WITHIN THE CITY OF LANSING, BUT IF HE WERE TO DO SO, THE RESIDENTIAL BUILDING INSPECTORS WOULD BE RESPONSIBLE FOR INSPECTING HIS WORK. HE IS AN "ON-SITE INSPECTOR OF PLANS AND DRAWINGS", NOT IN THE FIELD DOING ACTUAL INSPECTIONS. HIS SECOND DISCLOSURE CONCERNS A RENTAL PROPERTY THAT HE OWNS. HIS DEPARTMENT DOES NOT HAVE INSPECTION RESPONSIBILITY OVER THIS KIND OF PROPERTY. MOTION BY CHAIRMAN LEHMANN TO ACCEPT THE AFFIDAVITS OF DISCLOSURE FILED BY MR. BENNETT AND PLACE THEM ON FILE WITH NO FURTHER ACTION NECESSARY. MOTION CARRIED 5/0 - HENRY HERNANDEZ, CHIEF CODE COMPLIANCE OFFICER FOR THE BUILDING SAFETY DIVISION OF PND WAS ILL AND UNABLE TO ATTEND THE MEETING, HOWEVER, HE ARRANGED FOR JACK NELSON, BUILDING SAFETY MANAGER TO ATTEND AND EXPLAIN HIS AFFIDAVIT. THE BOARD SOLICITED THE FOLLOWING INFORMATION FROM MR. NELSON: MR. HERNANDEZ OWNS A RENTAL PROPERTY. HIS OFFICE IS RESPONSIBLE FOR THE RENTAL PROPERTY REGISTRATION PROGRAM. MR. HERNANDEZ PURCHASED THIS PROPERTY FOR THE PURPOSE OF RENTING IT TO HIS DAUGHTER AND SON-IN-LAW. MR. HERNANDEZ' MORTGAGE PAYMENT ON THE PROPERTY IS $450 PER MONTH. HE RECEIVES $250 PER MONTH IN RENT FROM HIS DAUGHTER. THIS IS HIS ATTEMPT TO ASSIST HIS DAUGHTER AD MAKE SURE THAT SHE HAS A PLACE TO RESIDE. IT IS HIS INTENTION TO SELL THE HOUSE TO HER WHEN SHE IS FINANCIALLY STABLE. NORMAL PROCEDURE IN THE BUILDING SAFETY DIVISION IS THAT WHEN A PROPERTY OWNER RENTS TO A RELATIVE, THEY ARE NOT REQUIRED TO REGISTER THE PROPERTY THROUGH THE RENTAL PROPERTY REGISTRATION PROGRAM. MR. HERNANDEZ FILED THIS DISCLOSURE TO MAKE SURE THAT THERE WAS NO APPEARANCE OF IMPROPRIETY. HE HAS APPLIED A HIGHER STANDARD TO HIMSELF THAN HE WOULD TO THE PUBLIC. THE CITY UNDERSTANDS THAT PEOPLE ARE NOT DERIVING INCOME FROM THIS KIND OF PROPERTY AND THAT IT IS NOT A TRUE RENTAL. MR. HERNANDEZ PURCHASED THIS HOUSE IN MAY OF 1 996 AND THE ONLY OCCUPANTS HAVE BEEN HIS DAUGHTER AND SON-IN-LAW. MOTION BY PUBLIC MEMBER HOLE TO ACCEPT MR. HERNANDEZ' AFFIDAVIT OF DISCLOSURE AND PLACE IT ON FILE WITH NO FURTHER ACTION NECESSARY MOTION CARRIED 5/0 - JULIE K. GARDNER, HOUSING REHAB AGENT WITH THE DEVELOPMENT DIVISION OF THE PND. THE BOARD SOLICITED THE FOLLOWING INFORMATION FROM MS. GARDNER AND DENNIS LYSAKOWSKI, HOUSING SERVICES COORDINATOR, ATTENDING ON BEHALF OF EMIL WINNICKER, DEVELOPMENT DIVISION MANAGER: AS A HOUSING REHAB AGENT SHE IS RESPONSIBLE FOR QUALIFYING INTERESTED 4 PERSONS FOR CITY OF LANSING LOW-INCOME HOUSING REHABILITATION GRANT MONIES FROM THE FEDERAL GOVERNMENT. SHE PERFORMS THE QUALIFICATIONS THROUGH INCOME VERIFICATION AND FACILITATES THE CLOSING AND THE LIENS AND ENSURES THAT THE INDIVIDUAL IS THE HOME OWNER OF RECORD. THESE INDIVIDUALS ARE THEN RECOMMENDED TO THE INSPECTORS FOR THE REHABILITATION. THESE PROPERTIES ARE PROCESSED AND SENT THROUGH ON A COMMITTEE REPORT BASIS TO MR. LYSAKOWSKI AND MR. WINNICKER FOR APPROVAL. THE APPLICANTS APPLY TO THE DEPARTMENT FOR THE LOANS. WHICH ARE NOT ADVERTISED BY THE DEPARTMENT. THIS A WORD OF MOUTH PROCESS THAT MOST PEOPLE FIND OUT ABOUT THROUGH THEIR NEIGHBORS AND THROUGH DEVELOPMENT OFFICE PRESENTATIONS TO NEIGHBORHOOD ASSOCIATIONS AND TO THE LANSING HOUSING FAIR. THEY TARGET SPECIFIC NEIGHBORHOODS THROUGHOUT THE CITY. THEY HAVE INFORMATIONAL FLIERS AVAILABLE. THERE IS A REQUIREMENT THAT THE APPLICANT BE CURRENT ON THEIR MORTGAGE PAYMENTS AND A LONG WAITING LIST FOR THESE TYPES OF REDEVELOPMENT FUNDS. UNDER THE CURRENT SYSTEM, THE APPLICANT CONTACTS A DEVELOPMENT DIVISION SECRETARY, WHO SCREENS THEM AND PLACES THEM ON A ONE YEAR WAITING LIST. FOLLOWING THIS INITIAL SCREENING THE APPLICATIONS ARE THEN PROCESSED BY MS. GARDNER, THEY HAVE TO RESIDE ON THE SUBJECT PROPERTY, AND THE AMOUNT OF THE REHAB MONIES CANNOT EXCEED 85% OF THE VALUE OF THE HOUSE. THESE ARE LOW INTEREST LOANS THAT DO NOT HAVE TO BE PAID BACK UNTIL THE BORROWER EXITS THE PROPERTY. THE HOME PROGRAM IS A 1 O YEAR FORGIVABLE PROGRAM. THEY ALSO HAVE A DOWN PAYMENT ASSISTANT PROGRAM WHEREIN THE APPLICANT WOULD HAVE TO RESIDE ON THE PROPERTY FOR 5 YEARS IN ORDER FOR THE LOAN TO BE FORGIVABLE. MS. GARDNER DOES NOT PROCESS THE DOWN PAYMENT ASSISTANT APPLICATIONS, THEY ARE PROCESSED THROUGH THE HOUSING RESOURCE CENTER. SHE REVIEWS THE APPLICATIONS AND SECURES MONIES FOR HRC TO TAKE TO THE CLOSINGS. THERE ARE INTERNAL PROCEDURES IN PLACE WITHIN THE DEPARTMENTTHAT PRECLUDE HER FROM BEING AN AGENT AND HAVING ANY SIGNIFICANT INVOLVEMENT WITH A CLIENT. MOTION BY PUBLIC MEMBER KIMBALL TO ACCEPT THE AFFIDAVIT OF DISCLOSURE FILED BY MS. GARDNER AND PLACE IT ON FILE WITH NO FURTHER ACTION BEING NECESSARY, WITH THE NOTATION THAT SPECIFIC OPERATING PROCEDURES HAVE BEEN PUT IN PLACE TO AVOID CONFLICT OF INTEREST SITUATIONS. MOTION CARRIED 5/0 ADJOURNMENT MOTION BY PUBLIC MEMBER KIMBALL TO ADJOURN. MOTION CARRIED 5/0 MEETING ADJOURNED AT TIME P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: 5 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING JULY 6. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT..5'4.O::P: M; 1N::THE:..NINTH FLOOR CONFERENCE ROOM, CITY ............................................................ ..................................................................... .......................................................................... HALL, LANSING, MICHIGAN. __....... ................... .................................... BOARD MEMBERS PRESiENT;[ DAY:ID LEHMAN.N; CHAIRMAN ::.. KUI;PER;;;;VLC::E`CH AI..... ............. ......::.:.:................ .............................. DR :.GEORGIA::U �JOHNSON' 'PU.BLIG::MENIBER . ..... .... ............ ................... R..OB.ERT N.OLEPU.B.L'ICMEMBE:R .:iil 'iiiiiiEl::. ; ABSENT:;; ;;;;;;;;;;;;;;;;;, DAVID;;KIMBALL, PUBLIC'M;EMBER;::E:xC;USED:::::::::::::. `' '.ELLEN SULLIVAN,:PUBLIC!MEMBER, :EXCUSED A QUORQM WAS PRESENT::::::::".. ....................... .. OTHERS*PRESENT:::: MARILYNN SLADE, SECRETARY TO BOARD ..::: :. .................. ................................ -__;;: JIM SMIE.RTKA;;;CITY ATTORNEY _.. ........... ... ::::::::::::::::::::.. WENDEL:HALL ASSISTANT CITY AT.bkkEY ;:;::...' ................. ........... WAYNE CARLSG?N: PRESIDENT; PRAC........ EEEEE ; HEATHER M;ORr-AN : LANS1.NG'STATE;_JOURN'AL:::::: : .... ...... ...... ............................................................................ ........................................................... MorrOM Bl' D . NT .... , .........................O............................................................................:.. ULY,HMN T 5O Y ........... ..........9 . _ . .... _..... .MOTIOIJ :CARRIEb4 ... :. ...... ........ ...... ....... ..... .. .... MOTION BYROBIEIE71 NOLE THAT DAVID:KIMBALL BE`ELECTE.D VICE CHAIRPERSON FCOR:THE YEAR JULY, ... ....... _.............................. ....................... ..... ... ......................... 1 99 _ _ 7 THRQlJG.H: 1UNE�::::I::9.9$:<::::: ::::::::: . ............::::::::::::::::::::::::::::::::::::::::::::::::::::::: MOTION CARRI:ER..4/O APPROVAL OF 4GENDAw. MOTION BY CHAIRPERSON KUIPER TOIAPPROVE THE AGENDA AS AMENDED TO ADD A REPORT FROM ................................................................................................... ............................................................................................... .......................................................................................... WENDEL HALL ON ELLEN BEAL's AFFIDAvITOFUISCLC>SaJ2E ......................................................... ................................................ ...................................... ..................... MOTION CARRIED 4/0 SECRETARY'S REPORT: APPROVAL OF MINUTES OF JUNE 10, 1 997: MOTION BY R. NOLE TO APPROVE THE MINUTES OF JUNE 10, 1997 WITH THE CORRECTION THAT THE DATE OF THE MEETING NEEDS TO BE ADDED. 1 MOTION CARRIED 4/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: NO CORRESPONDENCE WAS RECEIVED OR SENT NEXT REGULAR MEETING DATE: AUGUST 1 2, 1997 CITY ATTORNEY'S REPORT: ................. CITY ATTORNEY SMIERTKA REPORTED_;..::.REGARDING:EARLY;:RETIREMENT, THAT HE HAS NOT HEARD ......:..:........:..:........:..:::.::..::.....................:.:....:.. ............................................................................... ANYTHING ABOUT THE MCKANE:APP.EALS HE HAS HEARD THAT:JIM:.BLAIR MAY ALSO BE FILING AN ............................ .................................................................................................... APPEAL MOTION. REGARDING COMP.LAINT i 9:970 l ON TONIGHT S AG:ENDi4,: CIT'Y.ATFORNEYSMIERTKA REPORTED . ._... ... .......... .........0: ............. ..............._........... ....... .......... ..... ....... .......... ............. ............................. THAT THIS COMPLAINT ALLEGES..�VIOLATIONS BY:THE D..:MAYOR AN .I IIfrISEtF:; HE:;;is PRESENT THIS .::.. ............... ...................... .................... EVENING TO .DISCUSS;:THIS::COMPLAINT[:IN THE CAPACITY OF RESPONDENT::NO.T AS CITY ATTORNEY. IF IT IS THE:BOA:RD'S WI:SH'TO (NVESTIGATE'THIS COMPLAINT, :THE CITY ATTORNEY.':S OFFICE WOULD ........... _.. _.... .... .........._.... _...... BE UNABLE TO.:DO SQ:::::: HE BOARD COULD HIRE OUTSIDE COUNSEL, WITH THE'.APPROVAL OF .... .:.. ........ .... ......... COUNCIL.-.:THE CITY ATTORNEY ALSO REPORTED.THAT:HE.FELT THIS COMPLAINT VIOLATED.THE ETHICS _............ ................... _ _ .... ....................... ORDINANCE.REQUIREMENT THAT.COMPLAINTS BE HELD CONFIDENTIAL FOR 0 pA�S:, I URTHER, THE .... ..... ....... ............... COMPLAINT::FAIiLED:TO.JNCL.UbE ANY SPECIFIC ALLEGATION AGAINST EITHER.:THE MAYOR::O:R THE CITY ... ...................... ..__..... ......... ..... ... A DISCUSSION FOLLOWED IN WHICH THE BOARD.EXPRESSED THEIR CONCERNS.OVERT'H:E.CONTINUING .............. PROBLEM;:bF::E7HIC5 :BOARD COMPLAINTS BEING RELLEASED T€O THE .OTHERS;.::THUS __. ...... _................. .....I.......................... ............ .................. _.. ....... ...B _ .. _ .. .._._. DAMAGINGA::PE.:RSON,S REPUTATION BEFORE:THE :BOARD::EVEN::RECEIVES THE;;CONI;RLALNl;:':....... .......... ........ .................................... .... ........... ............................................A ............ ............ _.._....................................__....._.. ........................ ................. .............. .............. MOTION BY:;R, OLE THAT CHAIRPERSON K.uIPER:S.END A;;LETTER TO'THE CONIPLAIN4NT.E3CPRESSING ..:...........:.............:....:............::............ .......................................................... THE :OARD;;S: DISMAY::::7HAT:::THE THfCS::: RDI:N?NCE::::.PROVISION::::FOR::::bONFIDENTIALITY WAS ........ .... .... ......................... ........................................... ..................... SUBVERTED:, THAT THE:COMPL:AI,NT PROCESS. .N.WAS FOLLOWED, THAT IT APPEARS IS TH COMPLAINT _.................. ........ _..._..... _._.............................................................. IS NOT WITHIN THE UUR SDICTl'ON OF THE BOARD OF:,ETHICS,;;AND THAT IT;IS THE:;BOARD:.',S:POLICY ......_.. ...... ......... ......... ...... TO NOT:4CC:EPT.iANY:COMP,LP:INT WHICHIV.10LAT.ESTHE..PROCESS. IF.THH COMPLAIINANT:WISHES TO .... ................. . ...... ........ ...... ........ ..... .. .... ................................................ _........................ ....... _ ...... ........ ...... ........ ..... .. ... REFILE THE COMPLAINT, FOLLOW THE COMPLAINT;PROC.ESS-OUTLINED IN SECTION 80 '0.3 OF THE .............................. _.. ... .. .. _........................._ ... .. .. . ... ...::: :::::::: ::::: . .... ........_.................................... ETHICS ORDINANCE AND: PROVIDE DETAILS,,,REGARDI.NG...TH.E ALLEGATIONS,,.:.THE;;:BOARD WOULD ...................... .: ......... ....:...: RECONSIDER THIS'COM.PLAINT!:: MOTION CARRIED 470 .._ ASSISTANT CITY ATTORNEY WENpEL::HALL THEN.PRESENTED THE BOARD WITH A CHRONOLOGY RELATED _.........:..:...... .....::::.:I................ ................................. TO THE PRACTICOM/CITY IPUR.:COUivG:IL CO1vTEUPGRADE AND THE PETER BOSHEFF CONSULTING CONTRACT THAT WAS REQUESTED A.T THE;.JaJ...... TINE::::..... ................................................................................................... ............................................................................................... ...................................................................................... ................................................................................. ............................................................................ ...................................................................... ............................................................... ......................................................... MR. HALL REPORTED THAT THE BOARD CAN REI"ROACTIVELY TAKE ACTION IN THIS MATTER BY ISSUING AN OPINION EVEN THOUGH A FORMAL COMPLAINT WAS NOT RECEIVED BY THE BOARD BECAUSE COUNCILMEMBER BEAL DID FILE AN AFFIDAVIT OF DISCLOSURE WITH THE BOARD. IN A REVIEW OF THE CHRONOLOGY, MR. HALL REPORTED THAT PETER BOSHEFF, IN A MEMO TO COUNCILMEMBER JONES DATED DECEMBER 13, 1995, SUBMITTED A PROPOSAL FOR COMPUTERIZATION OF THE CITY COUNCIL. IN THIS MEMO, HE RECOMMENDED PRACTICOM AS THE SOURCE FOR THIS COMPUTERIZATION AND ARRANGED FOR A COUNCIL BRIEFING OF THE PROPOSAL WITH PRACTICOM. 2 PRACTICOM BEGAN WORKING WITH THE CITY COUNCIL IN DECEMBER OF 1 995. IN JULY OF 1996, THE ACCOUNT REPRESENTATIVE FROM PRACTICOM, KEN BLACK, PRESENTED COUNCIL WITH A QUOTATION FOR DESIGN OF A COMPUTER NETWORK USING HIS NEW COMPANY, EUBULUS. IN JULY, 1 996, COUNCIL ENTERED INTO A SOLE SOURCE PROCUREMENT CONTRACT WITH EUBULUS. IN SEPTEMBER OF 1996, PRACTICOM IS BACK IN THE PICTURE RECEIVING PURCHASE ORDERS FROM THE CITY COUNCIL FOR COMPUTER CONSULTING AND HARDWARE. FROM DECEMBER, 1 995 TO THE PRESENT A TOTAL OF APPROXIMATELY $25,000 IN PURCHASE ORDERS WERE GIVEN TO EUBULUS AND $ 1 2,08 1 . 1 4 TO PRACTICOM. PETER BOSHEFF BEGAN WORKING FOR PRACTICOM ON MARCH 1 6, 1997 AND CONTINUED IN THEIR EMPLOY AS A CONSULTANT UNTIL MAY 2, 1997. HE WAS PAID $500 PER WEEK TO HELP MARKET ................................... A SOFTWARE PACKAGE WHICH PRACTICOM :HA.D'RECENTLY::ACQUIRED. HE WAS PAID A TOTAL OF $3,000 WHILE EMPLOYED BY THEM: - . .............................................. BEFORE PETER BOSHEFF BEGAN WORK WITH::.PRACTfCOM, ELLEN B'EAL OBTAINED A MEMORANDUM .. .... FROM CITY ATTORNEY SMIERTKA S7A.TING.THAT IT:DID NOTAPPEAR,.iT.H..T.HE FACTS PRESENTED TO .... ......... ............. .............................. ................ .............. ........... ......._ _... _..... ......... .........._. ...................._........ HIM, THAT THERE;WAS ANY CONFLICT;CREATED BY HER HUSBAND, P;EfE:R;BOSHEFF, WORKING FOR _.......... ....:..........:. :.......... ......... ..:..... .... a...a... ._...... ........... ........ ... .:.........._......: _........... ................ ............ ........ ........ _..... ........... ......__._ ................. .F PRACTICOM, THE CITY:ATTORNEY: SU.GGESTED.:THAT SHE REFRAIN FROM:VOT[NG :.ON ANY ISSUE REGARDING PRACTICOM: AND THAT:SHE FILE AN .AFFIDAVIT OF DISCLOSURE WITH:THE BOARD OF ............ ................. ........ .... ........I'll ...................._ _._.............. ............... .... ...... ... _...... ....................._.. ETHICS. .::: : -. CITY ATTORNEY SMIERTKA ADVISED BOARD MEMBERS;THAT COUNCILMEMBER SEA4:IOhD HIM:SHE WAS ........ .. _.:. .... __... ........ .. .......................... ........... WILLING:TO!!CO:ME BEFORE THE BOARD TO ANSWER'ANY OF THEIR QUESTIONS:IF.THEY.::SO DESIRE. .. _..........__ ......_......... ...................... .................. _ _....... _.._. BOARq MEMBERS THEN-ASKED:QUESTIONS OF.WAY: It LSON, PRESIDENT OF:PRACT#COM;;;WH:O WAS .... .... ...._..... __ :. ......... ......... ....... _............. _.... .......... .............. PRESENT AT:THE MEETING ..:::THEY ASKED IF:PR?.GTICOM'::HAD A CONTRACT.W:ITli.THE'C1TY COUNCIL; ..... .... . ........_.......... __.._............................... ......._ ... HE RESPONDED ' N.O,:ORDERS WERE DONE THROUGH USE OF P.:URCHASE ORDERS��:: .THEY ASKED IF _.........._.._ _...... ...__ ................_ ...................... .. .... .................. ......... _................_............. ._._. _.. ..... . ..... _ _ _............. .. ........ BIDS:WERE:SUBMITTED TO OTHER VENDORS FOR WORK DONE BY.PRACTI;COM 'BEFORE THE::PURCHASE : .. . . ORDERS'..WERE ISSUED. MR. .CARLSON RESPONDED THAT 11E DID: NOT..KNOW; SOMETIMES HE _.. _. __ _ _ _. ..... ... .. ........._............. _.... _....................... ................................................................._........... _....... _ __...._......................... ...............................____.........._................._....... RECEIVED::$ID.REQUESTS;A .D:;SOMETIMES HE SUB.M..ITTED X' RITTEN:REPO RT:DETAILING THE:WORK TO _.. ........ ............. _................__............................._ _....... ....._.._................. .............................................. BE BE DONE:.AND THE ASSQCIATE_D:,COSTS. MR CARLSON::wAS ASKED:}F AN AD WAS PLACED IN THE _............................ ............................... _....... .... .... ........_............... _............... ..................... _................._.......... ....._......................... _.................................._........... ..................._...................................... PAPER OR::OTHER:CONSULTANTS CONSIDERED. BEFORE THEY.:HIiRED PETER BOSHEFFi MR.:CARLSON ......................................................... .... ............................ ............_ _...:.........................._........_.:.......... ................ .... _................................................ ...................................... ..... ......... __.,........................._.................... WEREREPLIED °;NkF ............ LOOKINGFOR.AT;THE TIME AND HIS'.RATE WAS LESS THAN THAT WE WOULD HAVE TO PAY OTHER ... ... ................................................ ........................... ........ .......................................................... CONSULTANTS, :SINCI^.WE:ARE A SMALL COMPANY THE COST.WAS A'FACTOR M.R.: CARLSON WAS ASKED HOW;T:HE;;FACT:TH;kt::;ETER OSHEFF.WAS.:AVAI;L;ABLE:AS::A CONS ULTAN .. T INAS;;BROUGHT TO HIS ... ....... .: ............ ................................................................... ATTENTION.:::HE RESPONDED THAT HI5:WIFE,: CAROLYN; WAS A FRIEND.OF MR. `BOSHEFF'S AND SHE ..... ... ...................................................................................... KEPT ASKING HIM..(MR, CARLSON) TO'HIRE HIM, MR 'CARLSON;WAS.ASKED:WHY THE:RELATIONSHIP ...........................:...........:.................:..............................................:_......_ .............................................. BETWEEN RACTICOM AND R. BOSHEFF WAS'TERMINATED AND HE REPLIED THAT:THE ENGAGEMENT ...................... ............................................... WAS COMPLETED MR: .CARLSO.N WAS ASKED IF HE HIRED M:R ::.BOSHEFFBECAUSE OF HIS ................................... ........ ... .......................................... RELATIONSHIP WITH:T,HE::CITY::gR::CITY COUNCIL.OR:::BECAUSE OF ANY PROMISES MADE TO HIM AND _..:..:....:......... ..................:......... _........................ ............. HE REPLIED 'ENO". MRi::CA:RLSONWASASJ(ED:::IFiTHE::V:OLUME OF BUSINESS THAT PRACTICOM DOES ......................................................................... WITH THE CITY COUNCIL HAS: IN.CI3.EAS:ED::SI:N.CE:TH.Ei..WRIN.G. OF MR..$OSHEFF, HE REPLIED "NO, .................................................................................................:. ............................................................................................... IN FACT IT HAS DECLINED. MR..C4RLS6TF:STATED•THAT.HE::HAS RECENTLY RESPONDED TO BID ..................................................0......::'H..... ............................................................... ......................................................... REQUESTS FROM CITY COUNCIL FOR SERVICES FN THE' RANGE OF $60-$70,000 BUT HAS NOT HEARD BACK FROM THEM WHETHER OR NOT HE RECEIVED THE BID OR IF IT WAS ISSUED TO ANOTHER VENDOR. BOARD MEMBERS REQUESTED SECRETARY SLADE TO ASK FOR THE FOLLOWING INFORMATION FROM Amy MAGISTRO, PURCHASING SUPERVISOR FOR THE CITY: I/ DID THE CITY GIVE ANY OTHER MONEY TO PRACTICOM (OR ANY OTHER COMPANY) FOR THE CITY COUNCIL COMPUTERIZATION PROJECT BETWEEN MARCH 1 6, 1 997 AND 3 MAY 2, 1 997 BEYOND THE $ 1 2,06 1 . 1 4 REPORTED BY MR. CARLSON? 2/ WHAT DID THE CITY IN WHOLE SPEND FOR COMPUTER HARDWARE AND CONSULTING SERVICES DURING THIS SAME PERIOD OF TIME? (FOR ALL DEPARTMENTS) 3/ TO PROVIDE THE BOARD WITH A COPY OF THE SOLE SOURCE PROCUREMENT AUTHORIZATION WITH PRACTICOM THAT ENABLED THEM TO WORK WITH CITY COUNCIL FROM SEPTEMBER OF 1 996 TO THE PRESENT OR INFORMATION ON THE METHOD USED TO SELECT PRACTICOM TO DO THIS WORK. 4/ TO REPORT WHETHER OR NOT PETER BOSHEFF RECEIVED ANY PURCHASE ORDERS OR REMUNERATION FROM THE CITY DURING THE PERIOD FROM DECEMBER, 1 995 TO MARCH OF 1997. CHAIR'S REPORT: NONE OLD BUSINESS: SECRETARY SLADE REPORTED THAT THE EDUCATION &TRAINING COMMITTEE NEEDS TO SET A TIME THE WEEK OF JULY 2 1 ST WHEN BOARD MEMBERS COULD BE PRESENT TO BE PART OF THE VIDEO BEING MADE FOR TRAINING. BOARD MEMBERS PROVIDED SECRETARY SLADE WITH TIMES THEY COULD NOT MEET DURING THAT WEEK. IT IS HOPED THAT THE VIDEO MAY BE COMPLETED IN JULY SO THAT TRAINING CAN BEGIN SHORTLY THEREAFTER. THE BOARD ASKED TO CARRY OVER THE REVIEW OF THE STATEMENTS OF FINANCIAL INTEREST OF DAVID WIENER AND JOSEPH DANDY UNTIL THE AUGUST MEETING AS THEY DID NOT HAVE THE INFORMATION IN THE PACKET. NEW BUSINESS MOTION BY D. LEHMANN TO RECEIVE AND PLACE ON FILE THE STATEMENTS OF FINANCIAL INTEREST FILED BY TINA GALLANTE, ARNOLD YERXA AND FRANCESCA KNOT. MOTION CARRIED 4/0 ADJOURNMENT MEETING ADJOURNED AT 7:25 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE, RECORDING SECRETARY DATE APPROVED: 4 �'-±I,`,I'�') 11 _- t 1 , ii /- zi-A >,J cl i CLC i( V '�I! '.. MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING AUGUST 26. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORrr-DER AT 5 3Q Pr.M< IN THE NINTH FLOOR CONFERENCE ROOM, CITY HALL, LANSING, MICHIGAN, BOARD MEMBERS P.RESENT 'DONALD H KUIPER,:M D: , CHA.I,RMAN - . DAVID KIMBALL, VICE CHAIF2 . rr I. CALVIN::C AND Err RSON, PHD, PUBLIC MEMBER;:: GEORGIA L JOHNSON, M. D;; P0BUIt:MItMSt .- .. .:, .... :' ROBERT NOLE, PUB. LIC MEMBER '^ EL. N. S.ULLIVAN, PUBLIC MEMBER ABSENT D. LEHMANN, ;P..UBLIC MEMBER... . A QUORUM WASI;PRESENT ; .. OTHERS>PRESENT; WENDEL HALL; DEPUTY CITY ATTORNEY.;; DEBORAH, MINER, RECORDING SECRETARY .............. BURT BURLESON APPROVAL OF AGENDA MOTION BY:;:VICE-CHAIRMAN KIMBALL.TO APP.ROyE..THE AGENDA, AS SUBMITTED 3:.:. .:::..... .. MOTION CARRIED 5/O . '' > ;: .. .,...: . . ....::.:............ CITY ATTORNEY'S REPORT: .. " .: :: .. ... THE CITYA)TORNEY DID NOT::GIVE_A REPORT.: SECRETARY'S REPORT APPROVAL OF MINUTES OF DULY 6, 1997; MOTION BY VICE-CHAIRMAN KIMBALL TO CORRECT THE MINUTES OF JULY, 6, I.:J97-To REFLECT THAT..THE APPROPRIA11 TE TITLE FOR MR. HALL IS .;. II DEPUTY CITY ATTORNEY NOT;; ASSISTANT ;CITY ATTORNEY, ,;AND TO.'APPROVE THE MINUTES AS ... ......... ... .. ......... ..... ...................::::::............................................._._.................... __ __ __ CORRECTED. MOTION CARRIED 6/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I . AFFIDAVIT OF DISCLOSURE FILED BY: JOEL MAATMAN, LPD OFFICER. 1 MOTION BY PUBLIC MEMBER JOHNSON, TO INVITE OFFICER MAATMAN, AND HIS WIFE, IF SHE IS AGREEABLE, TO ATTEND THE NEXT MEETING OF THE BOARD OF ETHICS TO EXPLAIN THE NATURE OF THE PROJECTS THAT THEY WILL BE WORKING WITH. MOTION CARRIED 6/0 2. LETTER FROM CITY CLERK TO ANTONIA MAGISTRO, PURCHASING SUPERVISOR REQUESTING INFORMATION REGARDING CITY OF LANSING COMPUTER SERVICES CONTRACTS. (SEE THE MOTION FOLLOWING COMMUNICATION #3) 3. LETTER FROM ANTONIA MAGISTRO, PURCHASING SUPERVISOR SUBMITTING RESPONSES TO INQUIRIES. MOTION BY PUBLIC MEMBER NOLE TO RESPOND TO COUNCILMEMBER BEAL, THAT IN THE BEST INTERESTS OF THE CITY, AND OF HERSELF, ANY FUTURE EMPLOYMENT CONTRACTS INVOLVING PETER BOSCHEFF AND THE CITY OF LANSING, DIRECT OR INDIRECT, SHOULD BE CLEARED THROUGH THE BOARD OF ETHICS VIA THE FILING OF AN AFFIDAVIT OF DISCLOSURE, PRIOR TO THE ACCEPTANCE OF EMPLOYMENT MOTION BY VICE-CHAIR KIMBALL TO AMEND THE MOTION BY MEMBER NOLE, AND THAT THE MINUTES REFLECT THAT THE CHAIRPERSON BE REQUESTED TO DRAFT A LETTER TO COUNCILMEMBER BEAL THAT CONVEYS THE BOARDS SENSE THAT THE BOARD IS RECEIVING HER AFFIDAVIT OF DISCLOSURE AND PLACING IT ON FILE BUT IS CONCERNED THAT THE FILING OF HER DISCLOSURE IN THIS INSTANCE WAS RETROSPECTIVE WHILE EXISTING POLICY REQUIRES DISCLOSURES TO BE PROSPECTIVE. AND THAT THE BOARD IS TROUBLED BY THE FACT THAT THE EVENTS, AS THEY ARE ABLE TO RECONSTRUCT THEM, GIVE AN IMPRESSION OF A POTENTIAL IF NOT ACTUAL, CONFLICT OF INTEREST. CHAIRPERSON KUIPER RULED, AND THE BOARD SUPPORTED HIS RULING, THAT ONLY BOARD MEMBERS MAY BE INVOLVED IN DEBATE OF ISSUES BEFORE THE BOARD. THE PUBLIC MAY COMMENT ONLY DURING THEIR ALLOCATED TIME ON THE AGENDA. MOTION CARRIED 6/0 4. LETTER FROM CHAIRMAN KUIPER TO W. G. BURLESON REGARDING COMPLAINT # 1 997-0 1 . RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION REQUIRED. S. LETTER FROM SPECIAL ASSISTANT CITY ATTORNEY, JAMES S. O'LEARY RE: JANET & JERRY LAzAR V CITY OF LANSING. IT WAS NOTED THAT THIS COMMUNICATION MARKS THE CLOSURE OF THIS ISSUE AND SHALL BE RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION REQUIRED. 6. UPDATED MEMBERSHIP ROSTER; BOARD OF ETHICS (SHOWING ADDITION OF APPOINTEE, CALVIN ANDERSON). RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION REQUIRED. CHAIRMAN KUIPER WELCOMED MR. ANDERSON TO MEMBERSHIP ON THE BOARD OF ETHICS. MR. ANDERSON EXPRESSED HIS PLEASURE TO BE SELECTED TO SERVE ON THE BOARD. NEXT REGULAR MEETING DATE: SEPTEMBER 9, 1997 2 CHAIR'S REPORT: CHAIRMAN KUIPER THANKED THE CITY CLERK AND THE ADMINISTRATION FOR GIVING TICKETS TO THE BOARD FOR THE AUGUST 19, 1 997 LUGNUTS GAME. THE BOARD MEMBERS WHO ATTENDED REALLY ENJOYED THEMSELVES. HE REQUESTED THAT THE CITY CLERK CONVEY THE BOARDS APPRECIATION TO MAYOR HOLLISTER FOR THE USE OF THE CITY'S SUITE. HE REPORTED THAT MAYOR HOLLISTER EXPRESSED HIS APPRECIATION TO THE BOARD FOR THE WORK THEY HAVE DONE ON BEHALF OF THE CITY. OLD BUSINESS: I . AD HOC COMMITTEE ON EDUCATION AND TRAINING; DEVELOPMENT OF ETHICS VIDEO. VICE CHAIR KIMBALL REPORTED THAT THE COMMITTEE VIEWED THE VIDEO LAST THURSDAY, AUGUST 2 1 , 1997 AND MADE SUGGESTIONS FOR FURTHER EDITING. THEY HAD HOPED TO BE ABLE TO PRESENT THE VIDEO FOR THE BOARD TO PREVIEW AT TONIGHT'S MEETING. KAREN SCHMIDT HAS BEEN ON VACATION, AND THE CHANGES HAVE NOT BEEN INCORPORATED INTO THE VIDEO, AS YET. PUBLIC MEMBER HOLE NOTED THAT THE VIDEO WAS VERY WELL DONE, AND THAT THE BOARD WOULD BE IMPRESSED WITH THE OVERALL QUALITY. IT 15 VERY BRIEF AND TO THE POINT AND IT MOVED WELL. THIS IS A REALLY NICE JOB, THERE WERE SOME PROBLEMS WITH LIGHTING AND SOUND IN THE PORTION OF THE VIDEO THAT WAS SHOT IN MAYOR HOLLISTER'S CONFERENCE ROOM. MRS. BOMMARITO WILL ATTEMPT TO SCHEDULE A RE-SHOOT FOR THAT SEQUENCE WHEN THE MAYOR AND SOME OF THE BOARD MEMBERS CAN BE PRESENT. SHE WILL PUT OUT A CALL, AND WHOMEVER 15 AVAILABLE CAN BE PRESENT FOR THE RE-TAPING. THIS IS A HIGH PRIORITY FOR HER, BECAUSE SHE NEEDS THE VIDEO TO BEGIN TRAINING. 2. STATEMENTS OF FINANCIAL INTEREST FILED BY: DAVID WIENER, JOSEPH DANDY, JR. - BOTH STATEMENTS WERE HELD FOR THE NEXT BOARD MEETING FOR REVIEW. MOTION CARRIED 6/0 NEW BUSINESS I . AFFIDAVIT OF DISCLOSURE FILED BY JOEL MAATMAN, LPD; THE CITY CLERK WAS DIRECTED TO INVITE MR. MAATMAN TO ATTEND THE NEXT MEETING OF THE BOARD OF ETHICS. PUBLIC COMMENT WILLIAM (BURT) BURLESON SUGGESTED THAT THE BOARD REVIEW THEIR RULES OF PROCEDURE TO MAKE PROVISIONS FOR PUBLIC COMMENT DURING THE BUSINESS PORTION OF THEIR MEETINGS. HE FEELS THAT THESE COMMENTS CAN BE QUITE VALUABLE TO THE BOARD IN THE DELIBERATIVE PROCESS. ADDITIONALLY, THE PUBLIC HAS EVERY RIGHT TO PARTICIPATE IN THE DECISION MAKING PROCESS. HE PROTESTED THE FACT THAT COMMENTS WERE ALLOWED BY SUPPORT STAFF EARLIER IN THE MEETING, BUT NOT BY MEMBERS OF THE PUBLIC. HE PROTESTED THE FACT THAT THE CITY CLERK IS ALLOWED TO DESIGNATE A REPRESENTATIVE TO FULFILL HER DUTY TO THE BOARD. LIKEWISE, HE FEELS THAT THE CITY ATTORNEY SHOULD SERVE AS THE ADVISOR TO THE BOARD, NOT THE CITY ATTORNEYS DESIGNEE. THE BOARD NEEDS TO FOLLOW IT'S OWN ORDINANCE IN THIS REGARD. HE DOES NOT BELIEVE THAT THE BOARD HAS ANY AUTHORITY TO INQUIRE INTO THE 3 BEAL/BOSCHEFF SITUATION. THIS WAS NOT SUBMITTED TO THEM IN THE FORM OF A COMPLAINT, AND THAT MEANS THAT THE BOARD DID NOT COMPORT WITH THE TERMS OF THEIR OWN ORDINANCE. PUBLIC MEMBER NOLE NOTED THAT THIS ISSUE WAS BROUGHT TO THE BOARDS ATTENTION THROUGH AN AFFIDAVIT OF DISCLOSURE FILED BY COUNCILMEMBER BEAL. THE BOARD WAS CONFUSED BY THE AFFIDAVIT OF DISCLOSURE AND INVITED COUNCILMEMBER BEAL TO APPEAR BEFORE THEM TO CLEAR UP THE CONFUSION. MR. BURLESON INSISTED THAT THE BOARD HAS MISHANDLED THIS SITUATION, AS WELL AS THE COMPLAINT THAT HE FILED. HE FILED AN APPROPRIATE COMPLAINT UNDER "WHISTLE BLOWER" PROVISIONS. THE PARTIES TO THIS COMPLAINT ARE THE BOARDS OWN ADVISOR AND MAYOR HOLLISTER. THIS IS A CONFLICT OF INTEREST SITUATION FOR THE BOARD. THE BOARD HAS THE RIGHT TO HIRE OUTSIDE LEGAL COUNSEL. THEY SHOULD HAVE RECEIVED HIS COMPLAINT, DETERMINED IF THERE WAS A CONFLICT, AND REFERRED IT TO AN OUTSIDE ATTORNEY FOR ANALYSIS. DID THEY RECEIVE A WRITTEN ANALYSIS FROM THE CITY ATTORNEY? THE BOARD JUMPED TO THE CONCLUSION THAT HE VIOLATED THE CONFIDENTIALITY PROVISIONS OF THE ORDINANCE. HE HAS THE RIGHT, UNDER THE FIRST AMENDMENT, TO GO TO THE MEDIA. WHO GAVE THE BOARD LEGAL ADVICE TO TAKE THE STEPS THAT THEY DID? CHAIRMAN KUIPER SAID THAT MR. BURLESON DID NOT MAKE HIS COMPLAINT CLEAR. IT WAS NOT CLEAR WHAT VIOLATIONS THE COMPLAINT INVOLVED. MR. BURLESON STATED THAT HIS COMPLAINT CITED THE SECTION THAT HE FELT THE CITY ATTORNEY VIOLATED. HE STATED THAT HE TOOK UMBRAGE TO THE TONE OF THE LETTER THAT THE BOARD SENT TO HIM. THIS LETTER REACHED CONCLUSIONS WITHOUT THE BENEFIT OF AN INVESTIGATION, AND THOSE CONCLUSIONS WERE WRONG. THEY DID NOT CONSULT THEIR ORDINANCE, AND THEY GOT BAD ADVICE FROM THE SUBJECT OF THE COMPLAINT. THIS SENT A BAD MESSAGE TO THE EMPLOYEES OF THE CITY, THAT IF THEY FILE A COMPLAINT, THE BOARD WILL NOT DO ANYTHING ABOUT IT. THE BOARD SHOULD BE AWARE OF THE VINDICTIVE NATURE AND HOSTILE ATMOSPHERE THAT EXISTS UNDER THE CURRENT ADMINISTRATION. HE WOULD LIKE THE BOARD TO RECONSIDER THEIR DECISION AND LOOK INTO THE COMPLAINT HE HAS FILED. ADJOURNMENT MOTION BY PUBLIC MEMBER SULLIVAN TO ADJOURN. MOTION CARRIED 6/0 MEETING ADJOURNED AT 7:04 P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: -ci 4 -City of Lansing: Boar- f Ethl E'VED 4123 Pq t1: 4 2 1 1"SING CIT Y CLERK The August meeting of the Board of Ethics has rescheduled to: been Tuesday. August 26, 1997 5:30 P.M. 9th Floor Conference Room Donald H. Kuiper, M. D. Chairperson MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING SEPTEMBER 9. 1997 - 5:30 P.M. NINTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:35 P.M. IN THE NINTH FLOOR CONFERENCE ROOM, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DONALD H. KUIPER, M. D., CHAIRMAN DAVID KIMBALL, VICE-CHAIR CALVIN C. ANDERSON, PHD, PUBLIC MEMBER GEORGIA L. JOHNSON, M. D., PUBLIC MEMBER ROBERT NOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER DAVID LEHMANN, PUBLIC MEMBER ABSENT• NONE A QUORUM WAS PRESENT OTHERS PRESENT: WENDEL HALL, DEPUTY CITY ATTORNEY MARILYNN SLADE, SECRETARY CHRISTINE TIMMON APPROVAL OF AGENDA: MOTION BY PUBLIC MEMBER NOLE TO APPROVE THE AGENDA, AS AMENDED, TO ADD UNDER OLD BUSINESS, ITEM # 3: STATEMENTS OF FINANCIAL INTERESTS SUBMITTED BY DAVID WIENER AND JOSEPH PANDY; TO ADD UNDER NEW BUSINESS AS ITEM # 2 DISCUSSION OF PUBLIC COMMENTTIME AND PLACEMENT ON AGENDA; TO ADD UNDER NEW BUSINESS AS ITEM # 3 DISCUSSION OF POLICY REGARDING COMPLAINTS AND CONFIDENTIALITY; AND TO ADD UNDER NEW BUSINESS AS ITEM # 4 THE COMPLAINT FILED BY CHRISTINE TIMMON. MOTION CARRIED 7/0 CITY ATTORNEY'S REPORT: DEPUTY CITY ATTORNEY HALL ANSWERED BOARD MEMBER QUESTIONS REGARDING THE REPORT FROM MILLER CANFIELD THAT WAS DISTRIBUTED AT THE AUGUST 26TH MEETING. HE APOLOGIZED FOR THE CONFUSION THIS REPORT GENERATED AND INFORMED THE BOARD THAT HE CAN ANSWER ANY QUESTIONS THEY MAY HAVE CONCERNING ANY ISSUE BEFORE THE BOARD OTHER THAN THE ONE THAT WAS THE TOPIC OF THE MILLER CANFIELD OPINION. SECRETARY'S REPORT: APPROVAL OF MINUTES OF: AUGUST 26, 1 997, MOTION BY VICE-CHAIRMAN KIMBALL TO CORRECT THE MINUTES OF AUGUST 26, 1 997 TO REFLECT THAT THE CHAIRPERSON WAS DIRECTED TO WRITE THE LETTER TO COUNCILMEMBER BEAL, NOT THE CITY CLERK; TO ADD THE RULING OF THE 1 CHAIR THAT MEMBERS OF THE PUBLIC MAY NOT ENGAGE IN DEBATE DURING THE MEETING BUT MUST RESTRICT THEIR COMMENTS TO THE PUBLIC COMMENT PORTION OF THE AGENDA; AND TO REMOVE THE REFERENCE THAT THE STATEMENTS OF FINANCIAL INTERESTS SUBMITTED BY DAVID WIENER AND JOSEPH PANDY WERE RECEIVED AND PLACED ON FILE. THESE ITEMS SHOULD HAVE REMAINED ON THE AGENDA AS THE BOARD TOOK NO ACTION ON THEM. MOTION CARRIED 7/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I . COMPLAINT FILED BY CHRISTINE TIMMON NEXT REGULAR MEETING DATE: OCTOBER 1 4, 1 997 CHAIR'S REPORT: NO REPORT OLD BUSINESS: 1 . AFFIDAVIT OF DISCLOSURE FILED BY ELLEN BEAL. CHAIRPERSON KUIPER IS TO SEND A LETTER TO COUNCILMEMBER BEAL REGARDING HER DISCLOSURE AS DETAILED IN THE MINUTES OF THE AUGUST 26, 1 997 MEETING 2. AD HOC COMMITTEE ON EDUCATION AND TRAINING; DEVELOPMENTOF ETHICS VIDEO. VICE CHAIR KIMBALL REPORTED THAT A PORTION OF THE VIDEO WAS RETAPED TODAY AND THAT THE VIDEO SHOULD BE READY FOR VIEWING BY THE FULL BOARD AT THE OCTOBER 14TH MEETING. 3. STATEMENTS OF FINANCIAL INTEREST: DAVID WIENER AND JOSEPH PANDY MOTION BY VICE-CHAIR KIMBALL THAT THE DISCLOSURE OF DAVID WIENER BE RECEIVED AND PLACED ON FILE WITH NO FURTHER BOARD ACTION REQUIRED. MOTION CARRIED 7/0 MOTION BY VICE-CHAIR KIMBALL THAT THE SECRETARY SEND A LETTER TO MR. DANDY ASKED HIM TO SUBMIT IN WRITING MORE INFORMATION WITH REGARDS TO PART VIII OF HIS DISCLOSURE. MOTION CARRIED 7/0 NEW BUSINESS I . AFFIDAVIT OF DISCLOSURE FILED BY NOEL MAATMAN, LPD; THE CITY CLERK WAS DIRECTED TO INVITE MR. MAATMAN TO ATTEND THE NEXT MEETING OF THE BOARD OF ETHICS. 2. A DISCUSSION WAS HELD ON THE PLACEMENT OF THE PUBLIC COMMENT ON THE AGENDA AND WHETHER OR NOT THE BOARD WISHED TO ESTABLISH A TIME LIMIT FOR PUBLIC COMMENT. 2 MOTION BY VICE-CHAIR KIMBALL THAT PUBLIC COMMENT BE MOVED TO THE FIRST PART OF THE AGENDA, IMMEDIATELY FOLLOWING THE ESTABLISHMENT OF A QUORUM, AND THAT THE TIME ALLOTTED TO EACH SPEAKER TO MAKE PUBLIC COMMENTS WILL ORDINARILY BE LIMITED TO FIVE MINUTES. MOTION CARRIED 7/0 3. A DISCUSSION WAS HELD ON THE BOARD POLICY REGARDING COMPLAINTS FILED WITH THE BOARD AND THE NEED FOR MAINTAINING CONFIDENTIALITY. BOARD MEMBERS AGREED THAT THEY COULD NOT HOLD THE GENERAL PUBLIC TO THE CONFIDENTIALITY REQUIREMENT AND THAT ALL COMPLAINTS RECEIVED SHOULD BE IMMEDIATELY SENT TO THE CITY ATTORNEY FOR A PRELIMINARY WRITTEN ANALYSIS WHICH SHOULD BE RETURNED TO THE BOARD WITHIN THIRTY DAYS. DURING THIS THIRTY DAYS, THE BOARD WILL FOLLOW THE CONFIDENTIALITY REQUIREMENTS OF THE ORDINANCE. THE SECRETARY WILL ALSO IMMEDIATELY SEND A COPY OF THE COMPLAINT TO EACH BOARD MEMBER WITHOUT REMOVAL OF NAMES OR OTHER ITEMS IN THE COMPLAINT. 4. A DISCUSSION WAS HELD REGARDING THE COMPLAINT FILED BY CHRISTINE TIMMON. CHRISTINE TIMMON STATED THAT SHE WAS UNAWARE OF THE REQUIREMENTS CONCERNING CONFIDENTIALITY WHEN SHE SUBMITTED HER COMPLAINTTO THE BOARD. SHE STATED THAT SHE WILL FOLLOW THE PROPER PROCESS NOW THAT IT HAS BEEN EXPLAINED TO HER. SHE FEELS HER COMPLAINT IS A LEGITIMATE ONE AND THAT IT SHOULD BE CHECKED OUT BY THE BOARD. BOARD MEMBERS EXPLAINED THE COMPLAINT PROCESS TO MRS. TIMMON AND ASKED THAT SHE KEEP THIS COMPLAINT CONFIDENTIAL UNTIL THE THIRTY DAYS HAVE ELAPSED FOR THE CITY ATTORNEY TO COMPLETE A PELIMINARY WRITTEN ANALYSIS. MOTION BY VICE-CHAIR KIMBALL THAT MRS. TIMMON'S COMPLAINT WAS PROPERLY FILED AND THAT THE BOARD WILL AWAIT THE RESPONSE FROM THE CITY ATTORNEY TO REVIEW THIS COMPLAINT. MOTION CARRIED 7/0 PUBLIC COMMENT NONE OTHER THAN THE COMMENTS MADE ABOVE BY MRS. TIMMON. ADJOURNMENT MOTION BY PUBLIC MEMBER JOHNSON TO ADJOURN. MOTION CARRIED 7/0 MEETING ADJOURNED AT 7:45 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE, SECRETARY 3 DATE APPROVED: 4 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING OCTOBER 14. 1997 - S:30 P.M. TENTH FLOOR COMMITTEE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER.AT::5;40.IPSM 1NTHE:.TENTH FLOOR COMMITTEE ROOM, CITY .......................................................................... ALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DONALD KUTPE:R, :M D.., CHAIR _.. ..DAVID:KIMBALL:;:VICE-GHATR:::: ::. .. DAVID LEHMANN, RUB'CIG'.MEMBEFt': . GEORGIA L ; 0OHNSON!,::;M; [y,;, p MBER . U.@:41CME . ROBERT::N:OLE :: PUBLIC MENIBEFt:: . ' :ELLEN w:SULLIVAN PU$L1C.;MEMBEF2 CALVIN ANDERSON,.`PH,D, MEMBER;:::::""_::: : A QUORUM WAS RRESENT ......::.:::::..::::::::. .... .................. PRESENT ::.. MARILYNN SLADE .SECRETARY::TO BOARD: WENDEL HALL, DEPUTY;;CITY ATTORNEY OEL MAATMAN LA NSIMG::::POLI.GE D;EPi4RTMIENTjj;. ,::':: ...... ...: STEPHANIEWH,ITBECK 62QWIONIA m MR::::WHITBECK 620 W :�:ONii4 CAMILLE ABOOD :224 N. PLNE: : ::: `: ........... ................................ ...... .... .... ...........e......... .......................................... ...................... ..... . .. _.. .. ' PUB�.IG:`COMMENT... - CAMILLE ABOOD ATTORNEY REPRESENTING.,STEPHANIE WHITBECK, SAID THAT.'IT'IS DISTURBING THAT . . ANY PERSON CAN MAKE ALLEGATIONS ABOUT SOMEONE ANO LET RUMORS .FLY: THE:: .ERSON MAKING THE ALLEGATIONS IS "QST HELD HARMLE.S.S BECAUSE THEY CAN INTIMIDATE TH sSl7...... 'THE VERY ::::::..:::::::::::::::::::::::::::::::: FACT OF THIS:::PROCESS:::IS::REPUGNANT::TO::SOCIETY;:::::::t:::IS:::A REPUDIATION OF THE:BELIEF THAT ... EVERYONE IS-INNOCENT UNTIL.PROVEN GUILTY THE PERSON FLUNG A COMP:LAINT..SHOULD HAVE TO INCLUDE SOME'PROOFS,.WITH::THEIR:.FILING;;;;;IT;IS;DISGUSTING THAT;;A.:NYONE CAN..;;.W:.RITE ALETTER AND .............. ............................WRITE .............................. ...... ASK THIS OARD'TO::IiNVESTfdATE::IT. -- - ------- APPROVAL OF AGENDA:... MOTION BY DAVID KIMBALL TO APPROVE THE AGENDA AS'AMENDED TO ADD A LETTER FROM CAMILLE ................................................ ABOOD AND A LETTER FROM DEPUTY CITY ATTORNEY HALL. MOTION CARRIED 6/0 THE INTERVIEW OF JOEL MAATMAN, LANSING POLICE DEPARTMENT, WAS MOVED TO THIS PORTION OF THE MEETING AS HE HAD A LATER COMMITMENT. MR, MAATMAN REPORTED THAT CREATIVE STITCHES IS LOCATED IN DEWITT AT HIS HOME AND IS HIS WIFE'S BUSINESS. THIS BUSINESS IS VERY SMALL, 1 ONE ITEM BEING PRODUCED AT A TIME. HIS WIFE HAS DONE SOME WORK WITH POLICE OFFICERS ON A PERSONAL BASIS. IF SHE WERE ALLOWED TO DO BUSINESS WITH THE CITY, IT WOULD LIKELY BE UNDER $ 100 PER ORDER AND ON A PETTY CASH BASIS. HER BUSINESS MAINLY CONSISTS OF ITEMS SUCH AS THE SILKSCREENING OF TEE SHIRTS. ROBERT NOLE ASKED WHETHER OR NOT MR. MAATMAN WAS A PART OWNER OF THIS BUSINESS. HE RESPONDED "NO, IT IS IN HIS WIFE'S NAME". ROBERT NOLE ASKED IF MR. MAATMAN WOULD BE INVOLVED IN THE BID PROCESS. HE RESPONDED "NO". ROBERT NOLE THEN ASKED WHAT ASSURANCE WOULD THERE BE THAT YOU WIFE'S BUSINESS WOULD NOT RECEIVE PREFERENTIAL TREATMENT IF SHE WAS DOING BUSINESS WITH THE POLICE DEPARTMENT. MR. MAATMAN RESPONDED THAT ALL BIDS MUST GO THROUGH THE PURCHASING DEPARTMENT AND THEY MAKE THE SELECTION ................. ON THE BIDS. DR. JOHNSON ASK::..Ep:.:ABOUT P:HONE:::BI:DS.. IT IS HER UNDERSTANDING THAT A DEPARTMENT NEED ONLY OBTALN.3'.PHONE QUOTES: IN ORDER TO.MAKE THE SELECTION THEMSELVES .... .......... IN THESE CASES. MR. MAATMAN:'.RE5PONDEp THAT:HE HAS BEEN EMPLOYED AS AN LPD OFFICER FOR O YEARS. THIS TYPE OF SITUATION COULDN'T 1-HAPPEN BECAiJ.SE THESE BIDS ARE A RECORD AND ... .. ANY OF THE OTHER COMPANIES WHo BID::COULD OBTAIN TkiIS INF..ORMATION. :::.HE FEELS THIS IS ::::::::::::: .............................. IRRELEVANT TO HIS WIFE jS.SITUATION;jBECAUSE HER BUSINESS:;LS SO.:SMALL.; 'His WIFE S BUSINESS .. CANNOT COMPETE:WITH BIG''BUSINESSES. HE CAN:ASSURE THE BOARD:TIiATTHEY:WILL COMPLY WITH .. ANY PROCESS THE' BOARD REQUIRES ::: OAVID: KIMBALL:SALD IT STRIKES.HIM THAT THIS IS A MAGNITUDE _. . .. ISSUE MR MAATMAN.HAS;.CLARIFIEp THAT THEIR::BUSINESS"IS.SMi4LL:AND`THAT:THEY.,WILL NOT BE COMPETITIVELY BIDDING ON': ANY ORDER OF MAGNITUDE IT:DOES 1 bW. EVER STILL BUMP.:.INTO THE ISSUE OF THE APPEARANCE OF THE MATTER IT.SEEMS TO HIM THAT THE ONLY WAY 4ROUND THE SITUATION 15 .FOR.:MR. MAATMAN.S WIFE TO NOT DO BUSINESS WITH THE':POLICE.::DEPARTMENT. ROBERT N.OLE SAID THAT',::::'.IN A FORMER BOARD OPINION, THE BOARD ASKED`THE:CI.TY ATTORNEY TO ....:. . SEE :_UNDER WHAT CONDITIONS A BUSINESS OP ERATING SIMILAR TO MR. ::;MAATMAN`S WOULD BE ALLOWED:.TO'DO BUSINESS:::WITH THE CITY. ::HE FEELS.THAT THIS APPROAC H.`SHOULD.8E:TAK:EN IN ... TH15 MATTERi .. ... MOTION"BY.ROBERT NOLE THAT OFFICER MAATMAN 1:S TO MEET WITH THL:CITY:ATTORNEY'`OR HIS DESIGNEE'TO pETERMINE..UNDER WHAT CONDITIONS,CREATIVE STITCHES SHOULD BE:;ALLOWED TO DO ..... BUSINESS*& THE CITY WITHOUT PRESENTING:.A CONFLICT OF INTEREST. MOTION:CARRI:ED Gla.. ...:... THE ISSUE OF A COMPLAINT FILED BY. CHRISTINE TIMMON. WAS MOVED T4: THiS"PORTIO.N OF THE MEETING. BOARD,;,MEMBERS;WERE IN RECEIPT O OF A,RESPNSE FROM DEPUTY CITYATTO.RNEY HALL REGARDINGTHIS :MATTER;.:. CHAIRPERSON KUIPER STATED THAT.THE BOARD IS:COMMITTED TO PROTECTING THE:CONFIDENTIALITY .... OF COMPLAINTS FILED YVITH THE BOARD BUT IS UNABLE TO RESTRAIN.THE PUBLIC.FROM EXERCISING THEIR FIRST AMENDMENT RIGHTS;:;;:THE BOARD FOLLOWS THE PROCESS OUTLINED IN THE ORDINANCE ::....:........:. ............_.. WHICH INVOLVES REFERRAL::TO'"THEC,ITY!i4"ITORNE3':'SIOFFICE FOR A RESPONSE. ................... :::... CAMILLE ABOOD STATED THAT IF YOU ALLOW THIS PROCEDURE; YOU ALLOW SOMEONE TO MAKE FALSE ALLEGATIONS AND YOU PUT THE ONUS ON THE PERSON 'ABOUT WHOM THE COMPLAINT IS FILED. THIS PROCEDURE IS FUNDAMENTALLY FLAWED. DEPUTY CITY ATTORNEY HALL STATED THAT HE COULD FIND NO SUBSTANCE TO THE ALLEGATIONS MADE IN MS. TIMMON'S LETTER. CAMILLE ABOOD STATED THAT THE BOARD ALLOWS RUMOR AND INNUENDO TO BE SPREAD AND THEN ASKS FOR IT TO BE EXPLAINED. THE PERSON FILING THE COMPLAINT SHOULD HAVE TO PRESENT THE BOARD WITH SOME PROOFS. HE FEELS THE BOARD PROCESS IS WRONG AND THE ORDINANCE IS 2 BEING MISINTERPRETED. THE BOARD SHOULD ONLY TAKE UP A COMPLAINT IF THERE IS SOME PROOF THAT A VIOLATION OCCURRED. ELLEN SULLIVAN STATED THAT SHE HOPES HE WILL BE SATISFIED WITH WHAT THE BOARD IS ABLE TO DO WITHIN THE CONFINES OF ITS POWERS. CAMILLE ABOOD RESPONDED THAT HE IS VERY DISTURBED AT A PROCESS THAT CAN ELEVATE WRONGFUL ACCUSATIONS BECAUSE WE HAVE THIS BOOK THAT SAYS WE CAN DO THIS. CHAIRPERSON KUIPER STATED THAT HE WAS TRYING TO EXPLAIN THE PROCESS THAT THE BOARD USES. THE BOARD HAS MADE NO COMMENTS ON WHETHER OR NOT IT BELIEVES THERE IS ANYTHING ................. ................................... TRUTHFUL IN THE ALLEGATIONS MADEX :::::::::::::::::::::::::::::::::::::::::::::::::... ...................................................:................. .......................................................................... .............................................................................. ...................................... ........................................... .......................................... ............................................. .. ........................................ .............................................. .............................................. ............................................... _......................................._.. .................................................. ................................................ . ................................................... CAMILLE ABOOD RESPONDED THAT ITE(S EXTREMELY PIFFICU[.T:FOR.H!IM;TO HEAR THIS PROCEDURE ..................................... ..........:.. .... .. ... ...................................................... BECAUSE HE DOES NOT BELIEVE' IT::HAS 4Nl?HIND TO iDO.WITH'DIJE':PROCESS. HE WOULD LIKE TO HAVE RECEIVED MRs 'HALL::.S RESPC NSE P 2IOR To T1 IS MEETING . ............... DR. JOHNSON STATED THAT WHEN SOMEONE FILES A GOMP..GAINT WITH'TH£'_8:0:4RD� "FHEY OFTEN HAVE .. .. ... ALSO NOTIFtEl7 ItIE MECSIA. ::THE BOARD: DOES N. T DO:ANYI'HIND..IN'THE.WAY:.pF:.RES.PONSE TO A ..................... COMPLAINT;FILitba0NTIL;THE '_:DAYS HAS PASSED:AS.REQUIRED;;: STEP HANTE'WHITBECK STATED THAT:SHE HAD TO'BRING ALL THIS PROOF TO MR.;::.HaLI~ FOLLOWING HIS PHONE CALL.TO: HER. THE PERSON FILING THE COMPLAINT DID.::NOT HAVE.TO"FILE..AN`L:PROOF . WHATSO.EV:ER WITH THE::B..... ELLEN SULLIVAN: ASKED M'R.:.HALL WHY MRS. WHITBECK WAS ASKED:TO BRING HER RECORDS FOR _ ............ .................................... ............. _.: DEPUTY CITY ATTORNEY`HALL:RESPONDED THAT THE EASIEST WAY:FOR HINCTO:REVIEW THE"C:OMPLAINT ......... .::.::::: .... ..... ..... ................................. WAS TO REVIEWTHESE DOCUMENTS. IF ANYONE HAD MENTIONED:TO HINT THAT:THEX.:pID NOT.:WANT TO .. ............ ............................ ....... ' , ..HAVE ONE: ISSERCHPROVIDE:TiIS:INEORkTiON ;!HE WOULD ......:.:MR.WHITBECK STATED THi4T HE JUST ,WENT THROUGH A QUESTIONNAIRE:.,R,ELATI.N.G. TO HIS .. .. APPOINTMENT TO THE COURT OF:APPEALS AND A QUESTION ON:THIS FORM.:W. "HAVE YOU BEEN THE ....................................... ........ .... ...... ........ ..... .. .... SUBJECT.C>F::AN ETHICS: INVESTIGATION? E H '`WOUtD: HAVE HAD...TO 14NSWER.;"YES .::ON THIS ............................................... QU EST[ONNAI:RE::IF::THIS::COMPLAINT :HAD;_.COME:IN, BEFORE::HE COMPLETED::ITjjANb::tHAt IS WHAT CONCERNS: HI:M. ::: . CITY CLERK SLADE EXPLAINED THAT THE.BjOARD:aS=NOT CONDUCTING AN INVESTIGATION INTO THIS - .... MATTER AT THIS POINT: AN :INVESTIGATION COMES AT A MUCH LATER DATE .LN THE COMPLAINT .......................................... PROCESS AS ONE `O.:F:;TF1:E :OPTIONS THE BOARD: MAY TAKE AFTER RECEIPT OF THE PRELIMINARY _..............: ..........:..::..._....... _:.. ......_........... ANALYSIS FROM THE ITY:'..'TTOR.... MOTION BY ELLEN SULLIVAN THAT THIS C,OMPk.AINT..BEDISMISSED AND PLACED ON FILE WITH NO ......................................................... FURTHER BOARD ACTION REQUIRED. MOTION CARRIED 6/0 SECRETARY'S REPORT: CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: VINCE CANTRELL`S AFFIDAVIT OF DISCLOSURE - THE SECRETARY SHOULD REQUEST MR. CANTRELL TO COME TO THE NEXT BOARD MEETING TO RESPOND TO QUESTIONS REGARDING HIS 3 AFFIDAVIT OF DISCLOSURE. OTHER CORRESPONDENCE ITEMS WERE RECEIVED AND PLACED ON FILE NEXT REGULAR MEETING DATE: NOVEMBER 1 1 , 1997 CITY ATTORNEY'S REPORT: NONE CFIAIR'S REPORT: CHAIRPERSON KUIPER STATED THAT HE WAS PLEASED THAT THE MEETINGS HAD BEEN MOVED TO A NEW LOCATION. FUTURE MEETINGS WILL BE HELD IN COUNCIL CHAMBERS, ADJACENT TO THIS COMMITTEE MEETING ROOM ON THE I OTH FLOOR. HE STATED HE IS ENCOURAGED BY THE PROGRESS THE BOARD HAS MADE IN THE LAST FEW MEETINGS. OLD BUSINESS: NEW BUSINESS ELLEN SULLIVAN REQUESTED DEPUTY CITY ATTORNEY HALL TO REPORT BACK AT THE NEXT BOARD MEETING ON WHETHER OR NOT THE CITY IS DOING BUSINESS WITH PATCHES PLUS WHEN IT IS HER UNDERSTANDING THAT THE OWNERS OF THIS BUSINESS HAVE NOT RESPONDED TO BOARD REQUESTS. THE BOARD VIEWED THE NEW ETHICS VIDEO WHICH WILL BE USED IN TRAINING ALL CITY OFFICERS AND EMPLOYEES. BOARD MEMBERS WERE PLEASED WITH THE VIDEO AND EXTENDED THEIR THANKS TO SHARON BOMMARITO AND HER STAFF FOR THEIR EFFORTS. AT THE TIME TRAINING BEGINS IN THE CITY, THE BOARD WOULD LIKE TO SEE A PRESS RELEASE ISSUED BRINGING THIS TRAINING TO THE ATTENTION OF RESIDENTS. THE BOARD WOULD ALSO LIKE TO SEE THE ETHICS VIDEO RUN ON LOCAL GOVERNMENT CHANNEL 26 (OR 1 2 IF IN THE REBUILD AREA). ADJOURNMENT MEETING ADJOURNED AT 7: 1 5 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE, RECORDING SECRETARY DATE APPROVED: 4 i� MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING DECEMBER 9. 1997 - 5:30 P.M. TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DAVID LEHMANN, PRESIDING OFFICER CALVIN ANDERSON, PUBLIC MEMBER DR. GEORGIA L. JOHNSON, PUBLIC MEMBER ROBERT HOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER ABSENT: DR. DONALD KUIPER, CHAIRMAN DAVID KIMBALL, VICE-CHAIR A QUORUM WAS PRESENT OTHERS PRESENT: JILL RHODE, TREASURER WILLIAM BARKYOUMB, INCOME TAX AUDITOR WENDALL HALL, ASSISTANT CITY ATTORNEY DEBORAH K. MINER, RECORDING SECRETARY APPROVAL OF AGENDA: MOTION BY PUBLIC MEMBER SULLIVAN TO AMEND THE AGENDA TO ADD THE PROPOSED MEETING SCHEDULE FOR 1 998 AS #4 UNDER NEW BUSINESS, AND THAT THE AGENDA BE APPROVED AS AMENDED. MOTION CARRIED 5/0 CITY ATTORNEY'S REPORT: MR. HALL BRIEFED THE BOARD AS TO THE RECOMMENDATIONS OF THE CITY ATTORNEY WITH REGARD TO COMPLAINTS FILED BY MR. WILLIAMS. THEY DID NOT FIND A CONFLICT OF INTEREST, NOR THE USE OF CITY RESOURCES FOR PERSONAL GAIN. HE RECOMMENDED THAT THE BOARD, ACTING PURSUANT TO THE ETHICS ORDINANCE, DISMISS THIS COMPLAINT FOR LACK OF A COGNIZABLE COMPLAINT AS DEFINED BY THE ETHICS ORDINANCE. MR. HALL ALSO BRIEFED THE BOARD WITH RESPECT TO THE RECOMMENDATIONS OF THE CITY ATTORNEY REGARDING THE COMPLAINT FILED BY MS. CHARLENE DECKER. SHE DOES NOT ALLEGE A CONFLICT OF INTEREST COGNIZABLE BY THE ETHICS ORDINANCE, CONSEQUENTLY, IT IS THE RECOMMENDATION OF THE CITY ATTORNEYS OFFICE THAT, ACTING PURSUANT TO THE ETHICS ORDINANCE, THE BOARD DISMISS THIS COMPLAINT ON THAT BASIS. 1 MINUTES: BOARD OF ETHICS MEETING DECEMBER 9, /997 SECRETARY'S REPORT: APPROVAL OF MINUTES OF OCTOBER 1 4. 1 997: MOTION BY MEMBER SULLIVAN TO CORRECT THE MINUTES OF THE OCTOBER 1 4, 1 997 MEETING TO REFLECT THE FACT THAT THE AFFIDAVIT OF DISCLOSURE FILED BY VINCE CANTRELL WAS RECEIVED AND PLACED ON FILE. MOTION CARRIED 5/0 MOTION BY MEMBER SULLIVAN TO APPROVE THE MINUTES OF THE OCTOBER 1 4, 1 997 MEETING AS CORRECTED. MOTION CARRIED 5/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I . AFFIDAVIT OF DISCLOSURE FILED BY WILLIAM BARKYOUMB THE BOARD RECEIVED THE FOLLOWING INFORMATION DURING THEIR INTERVIEW OF MR. BARKYOUMB AND CITY TREASURER, JILL RHODE: MR. BARKYOUMB'S BUSINESS CONSISTS OF THE PREPARATION OF INDIVIDUAL INCOME TAX RETURNS. HE DOES NOT PREPARE CORPORATE INCOME TAX RETURNS. HE PREPARES INCOME TAX RETURNS FOR ONE PARTNERSHIP, WHICH IS A DAIRY OPERATION LOCATED WEST OF MT. PLEASANT. HE DOES NO BUSINESS WITH THE CITY OF LANSING. HE PREPARES 275 TAX RETURNS, OF WHICH APPROXIMATELY 1 65 ARE CITY OF LANSING RESIDENTS. HE HAS BEEN ENGAGED IN THE BUSINESS OF PREPARING INCOME TAX RETURNS FOR APPROXIMATELY 20 YEARS. IN HIS CAPACITY AS A SENIOR AUDITOR FOR THE CITY OF LANSING HE WOULD AUDIT PERSONAL CITY OF LANSING INCOME TAX RETURNS. MS. RHODE VOLUNTEERED TO INSTITUTE PROCESSES AND POLICIES THAT WOULD ENSURE THAT MR. BARKYOUMB WOULD NOT AUDIT INCOME TAX RETURNS PREPARED BY HIM. SHE STATED THAT HER OFFICE COULD EASILY IMPLEMENT PROCEDURES WHEREBY RETURNS THAT ARE SIGNED BY MR. BARKYOUMB GET ASSIGNED TO OTHER AUDITORS. IN RESPONSE TO MEMBER JOHNSON'S CONCERN THAT THIS SITUATION WOULD RAISE A "RED-FLAG" TO THE RESIDENTS OF THE CITY AND COULD CREATE THE APPEARANCE OF A CONFLICT OF INTEREST, AS WELL AS THE FEELING THAT ACCEPTANCE OF THIS TYPE OF EMPLOYMENT WITH THE CITY REQUIRES THE EMPLOYEE TO RELINQUISH THEIR PRACTICE; MR. BARKYOUMB TOLD THE BOARD THAT ALL CITIZENS HAVE ACCESS TO THE SAME KIND OF INFORMATION THAT HE DOES WITH REGARD TO THE PROCESSES AND POLICIES OF THE IRS. THIS INFORMATION IS AVAILABLE TO ANYONE THROUGH FOIA REQUESTS. HE HAS AGREED, AS A CONDITION OF HIS EMPLOYMENT WITH THE CITY, NOT TO TAKE ON ANY ADDITIONAL CLIENTS. A SITUATION MAY CREATE AN APPEARANCE OF A CONFLICT OF INTEREST, BUT THAT IS NOT WHAT IS REGULATED BY THE ORDINANCE. THE ORDINANCE PROHIBITS ACTUAL CONFLICTS, NOT THE APPEARANCE OF CONFLICTS. HE HAD A SITUATION TODAY, IN WHICH ONE OF THE TAX RETURNS THAT HE PREPARED CAME UP FOR AN AUDIT. HE REFUSED TO HANDLE THIS RETURN. HE TURNED IT OVER TO ANOTHER AUDITOR. IT IS HIS DESIRE TO INCREASE THE POSSIBILITY OF CATCHING TAX CHEATS IN THE CITY OF LANSING. HE HAS KNOWLEDGE OF SOFTWARE THAT TAX PREPARERS USE TO CHEAT ON CITY INCOMETAX AND MORE RECENT EXPERIENCE IN THE FIELD, WHICH MAKES HIM MORE AWARE OF THE WAYS IN WHICH TAX PREPARERS CHEAT. HE STATED THAT THE STARTING SALARY FOR THE SENIOR AUDITOR POSITION IS $4 1 ,300 PER YEAR. IT WOULD BE A HARDSHIP ON HIM TO TAKE THIS JOB IF HE WERE REQUIRED TO GIVE UP HIS PRIVATE PRACTICE. 2 MINUTES: BOARD OF ETH/CS MEETING DECEMBER 9, /997 PG. 3 HE STATED THAT AS A CPA LICENSED BY THE STATE OF MICHIGAN, ETHICS ARE IMPORTANT TO HIM. ADDITIONALLY, HE IS A PRACTICING ATTORNEY. HE WILL NOT VIOLATE HIS OWN PERSONAL CODE OF ETHICS. HE RECEIVES INFORMATION FROM THE STATE OF MICHIGAN AND THE FEDERAL GOVERNMENT ABOUT CURRENT ACCOUNTING STANDARDS THAT HE PUTS INTO PRACTICE IN HIS CITY JOB. HE BRINGS KNOWLEDGE TO THE CITY OF LANSING THROUGH THIS PROCESS. MS. RHODE CLARIFIED; CITY OF LANSING TAXABLE INCOME IS BASED ON THE ADJUSTED GROSS INCOME FROM THE FEDERAL INCOME TAX RETURN. THIS NUMBER IS PICKED UP AND CARRIED OVER FROM THE FEDERAL FORM. IN OTHER WORDS, AS A CITY AUDITOR, MR. BARKYOUMB WOULD NOT BE PRIVY TO THINGS THAT FEDERAL TAX AUDITORS WOULD BE RESPONSIBLE FOR AUDITING. HE WOULD NOT AUDIT THINGS THAT WOULD APPEAR ON FEDERAL TAX RETURNS. THERE WOULD BE NO BREACH OF CONFIDENTIALITY. THERE ARE ONLY I 0 INSTANCES OF THINGS THAT THE CITY AUDITS ON. THEY PERTAIN TO THE RESIDENCY APPROPRIATION,OR THE PORTION OF BUSINESS THAT IS DONE IN THE CITY OF LANSING. SHE TOLD THE BOARD THAT WHEN HER OFFICE IS FULLY STAFFED, THEY WILL EMPLOY THREE AUDITORS. THEY ARE NOT CURRENTLY FULLY STAFFED. IN RESPONSE TO QUESTIONING BY MEMBER ANDERSON, SHE REVEALED THAT NONE OF THE OTHER AUDITORS DO OUTSIDE INDEPENDENT WORK. THEY ARE LOOKING AT A SITUATION IN WHICH 1 65 PEOPLE OUT OF 1 00,000 TAX RETURNS WOULD BE PREPARED BY MR. BARKYOUMB. SHE RESPONDED TO QUESTIONS BY MEMBER LEHMANN WITH REGARD TO THE PROCEDURES THAT WOULD BE SET IN PLACE TO ENSURE THAT MR. BARKYOUMB DOES NOT AUDIT TAX RETURNS THAT HE PREPARES, SAYING, HE WILL BE PRIMARILY WORKING WITH BUSINESSES AND PARTNERSHIPS. APPROXIMATELY 40% OF HIS JOB CONSISTS OF BUSINESS AND PARTNERSHIP AUDITS. PRIOR TO BEING ASSIGNED TO AN AUDITOR RETURNS ARE SUBJECTED TO A INITIAL REVIEW TO DETERMINE (AMONG OTHER THINGS) IF THEY ARE RESIDENT OR NON-RESIDENT RETURNS. ADDING A STEP TO THIS REVIEW TO DETERMINE IF THE RETURN WAS PREPARED BY MR. BARKYOUMB IS A RELATIVELY SIMPLE ISSUE. THERE IS CURRENTLY NO WRITTEN PROCEDURE FOR THIS PROCESS. IT IS IN THE DEVELOPMENT STAGE PENDING THE DECISION OF THE BOARD. THE PROHIBITION PERTAINING TO ACCEPTING NEW CLIENTS WILL BE APPLIED TO OTHER AUDITORS, AS WELL AS TO MR. BARKYOUMB. MEMBER ANDERSON EXPRESSED HIS CONCERN THAT JUNIOR AUDITORS WOULD BE HELD TO A STANDARD THAT THE SENIOR AUDITOR WOULD NOT BE HELD TO. HE FELT THAT THE RULES SHOULD BE CONSISTENT AND THAT IT SEEMS TO BE DISCRIMINATORY TO ALLOW MR. BARKYOUMB TO MAINTAIN A PRIVATE PRACTICE WHILE OTHER AUDITORS COULD NOT. MR. BARKYOUMB RESPONDED TO THIS CONCERN, SAYING THAT JUNIOR AUDITORS WOULD BE ABLE TO KEEP EXISTING CLIENTS THAT THEY ALREADY HAVE, BUT NOT TO TAKE ON NEW ONES. MRS. RHODE ADDED THAT THE OTHER EMPLOYEES IN HER OFFICE ARE NOT DISPLEASED WITH THE NEW REQUIREMENT AND PROCEDURES. THEY ARE HAPPY TO HAVE MR. BARKYOUMB, AND ARE WILLING TO SPEND A LITTLE EXTRA TIME EXAMINING RETURNS TO PRECLUDE HIS AUDITING RETURNS THAT HE PREPARED. NEITHER IS THERE ANYONE ON HER STAFF THAT IS INTERESTED IN STARTING A BUSINESS OF THE TYPE MR. BARKYOUMB OPERATES. MS. RHODE ADVISED THE BOARD THAT SHE ASKED MR. BARKYOUMB IF HE COULD ACCEPT THE POSSIBILITY THAT THE BOARD COULD PROHIBIT HIM FROM PREPARING CITY OF LANSING INCOME TAX RETURNS. AT THE TIME MR. BARKYOUMB HAD BEEN CONSIDERING EMPLOYMENT WITH OTHER MUNICIPALITIES. HE DECIDED TO ACCEPT EMPLOYMENT WITH THE CITY OF LANSING FOR PERSONAL REASONS. MEMBER SULLIVAN SUMMARIZED; THE BOARD IS LOOKING AT A SITUATION IN WHICH, AS A NEW 3 MINUTES: BOARD OF ETHICS MEETING DECEMBER 9, /997 PG. 4 EMPLOYEE, MR. BARKYOUMB HAS CONSIDERED HOW CONFLICTS OF INTEREST COULD BE ELIMINATED, OR MINIMIZED. HE HAS AGREED NOT TO ACCEPT ANY NEW CLIENTS THAT ARE CITY OF LANSING RESIDENTS, OR ANY NEW BUSINESS CLIENTS THAT ARE CITY BASED. THIS IS A NEW EMPLOYEE ASKING FOR THIS CONSIDERATION. THIS SEEMS TO BE A REASONABLE ACCOMMODATION TO BE MADE BETWEEN AN EMPLOYER AND EMPLOYEE IN AN EMPLOYMENT CONTRACT SITUATION. SHE ADDRESSED A CONTRADICTION BETWEEN STATEMENTS MADE IN THE LETTER HE SUBMITTED, WHICH STATES THAT HE WILL NOT ACCEPT ANY NEW CITY OF LANSING CLIENTS, AND HIS VERBAL STATEMENT THAT HE WOULD NOT ACCEPT ANY NEW CLIENTS PERIOD. THE DISTINCTION BEING BETWEEN "CITY OF LANSING CLIENTS" AND "ANY NEW CLIENTS.' MR. BARKYOUMB REPLIED THAT HE DOES ESTATE PLANNING FOR CLIENTS AND FRIENDS WHO DO NOT LIVE IN LANSING. HE WANTS TO BE ABLE TO CONTINUE TO WORK FOR HIS FRIENDS AND LONG STANDING CLIENTS AND THEIR ASSOCIATES DOING ESTATE PLANNING OUTSIDE THE CITY OF LANSING. MEMBER JOHNSON EXPRESSED HER CONCERN THAT THE CITY WOULD NOT KNOW HOW MANY CLIENTS MR. BARKYOUMB HAS AT ANY GIVEN TIME, AND WHETHER THEY WERE THE SAME CLIENTS THAT HE CAME ON BOARD WITH, OR IF NEW CLIENTS HAD BEEN ADDED. MR. BARKYOUMB OFFERED TO PREPARE AND PRESENTTHE CITY WITH A LIST OF HIS CLIENTS NAMES AND SOCIAL SECURITY NUMBERS. THIS IS INFORMATION THAT MUST BE PRESENT ON THE TAX RETURNS. MEMBER JOHNSON NOTED THAT THIS PROCEDURE WOULD PLACE HIS CLIENTS UNDER CLOSER SCRUTINY. ADDITIONALLY SHE INDICATED HER CONCERN THAT THE BUSIEST TIME OF YEAR FOR HIS PRIVATE PRACTICE COINCIDES WITH THE BUSIESTTIME OF YEAR IN HIS POSITION WITH THE CITY. SHE ASKED IF HIS JOB DESCRIPTION REQUIRES THAT HE PERFORM JOB EVALUATIONS OF JUNIOR AUDITORS. MR. BARKYOUMB RESPONDED IN THE NEGATIVE. HIS POSITION DOES NOT INCLUDE SUPERVISORY AUTHORITY, HOWEVER, AS THE SENIOR AUDITOR, HE WOULD BE THE HIGHEST CLASSIFIED PERSON IN THE INCOME TAX DIVISION OF THE TREASURERS OFFICE. MEMBER ANDERSON THANKED MR. BARKYOUMB FOR COMING FORWARD AND ANSWERING THE QUESTIONS OF THE BOARD. HE STATED HIS CONCERNS OVER THE PRECEDENT THAT WOULD BE SET IF THE BOARD APPROVED THIS REQUEST. IF THEY APPROVE THIS SITUATION, THEY ARE GRAND FATHERING IN 1 65 CLIENTS. THE WAY HE SEES IT, IF IT IS OKAY FOR MR. BARKYOUMB TO KEEP THE 1 65 CITY OF LANSING CLIENTS THAT HE CURRENTLY HAS, IT IS ALRIGHT FOR HIM TO GO OUT AND GET 1 65 MORE. THE ORDINANCE PROHIBITS THE USE OF A CITY POSITION TO GAIN PERSONAL BENEFIT. MR. BARKYOUMB WOULD BE ABLE TO USE HIS POSITION WITH THE CITY TREASURERS OFFICE AS A MARKETING DEVICE. IT IS IMPORTANT FOR THE BOARD TO FOCUS ON THE ORDINANCE. IS MR. BARKYOUMB USING HIS POSITION WITH THE CITY FOR PERSONAL BENEFIT. IN TERMS OF LIMITING THE CHANCES OF A CONFLICT SITUATION, BOTH MR. BARKYOUMB AND MS. RHODE HAVE DONE EVERYTHING THEY CAN TO PREVENT THIS KIND OF SITUATION. ASSISTANT CITY ATTORNEY HALL DESCRIBED THE CONSULTATION BETWEEN THE CITY ATTORNEYS OFFICE AND TREASURER RHODE, REGARDING PROCESSES WHICH WOULD ENSURE COMPLIANCE WITH THE CITY'S ETHICS ORDINANCE. MS. RHODE CAME TO HIS OFFICE, EXPLAINED THE SITUATION TO HIM, AND ASKED HIM FOR ADVICE ON HOW TO PREVENT A CONFLICT SITUATION. TOGETHER THEY WORKED OUT A PROPOSED PROCEDURE TO MINIMIZE THE RISK OF A CONFLICT OF INTEREST. A LOT OF THE PROCEDURES THAT HAVE BEEN IMPLEMENTED TRACK VERY CLOSELY TO HIS RECOMMENDATIONS TO HER. WHEN THEY DO NOT TRACK, THEY ARE STRICTER THAN THE RECOMMENDATIONS THAT HE MADE. MR. BARKYOUMB WAS ADVISED THAT THERE WAS A GOOD POSSIBILITY THAT HE COULD NOT PREPARE 4 MINUTES: BOARD OF ETHICS MEE77NG DECEMBER 9, /997 PG. 5 ANY CITY INCOME TAX RETURNS. PEOPLE COME TO THE ATTORNEYS OFFICE ALL OF THE TIME AND ASK FOR INFORMATION. THE BOARD IS THE ULTIMATE ARBITER. HE ADVISED MS. RHODE AS TO WHAT THE ORDINANCE DIRECTS THEM TO ELIMINATE REGARDING PUBLIC POSITION VERSUS PRIVATE GAIN. MEMBER SULLIVAN SAID THAT SHE WOULD LIKE TO HAVE MORE INFORMATION FROM THE PERSONNEL DEPARTMENT REGARDING THE POLICY FOR CITY EMPLOYEES WHO HAVE OUTSIDE EMPLOYMENT. THE BOARD IS DEALING WITH TWO SEPARATE ISSUE HERE; ONE IS THE EXISTING CLIENTS THAT MR. BARKYOUMB HAS AND ACCOMMODATING HIS SERVICE TO THEM, AND THE OTHER IS - TO WHAT EXTENT DOES THE CITY REGULATE HIS, OR OTHER CITY EMPLOYEES, OUTSIDE EMPLOYMENT. SHE WANTS INFORMATION ABOUT WHAT THAT POLICY IS. ADDITIONALLY, SHE WANTS TO SEE THE INITIAL REVIEW PROCESS DEMONSTRATED TO HER. THAT IS, THE REVIEW PROCEDURE AND PROCESSES THAT ARE USED TO PREVENT MR. BARKYOUMB FROM BEING ASSIGNED TO AUDIT HIS OWN CUSTOMERS. SHE WOULD LIKE THIS INFORMATION TO BE AVAILABLE TO THE BOARD BY THEIR NEXT MEETING, JANUARY 13, 1998. UNTIL SUCH TIME AS THE BOARD HAS HAD AN OPPORTUNITY TO REVIEW THIS INFORMATION, THERE IS NO REASON, IN HER OPINION, TO SUGGEST THAT MR. BARKYOUMB CANNOT CONTINUE HIS DUTIES WITH THE TREASURER'S OFFICE. MEMBER LEHMANN ASKED IF MR. BARKYOUMB'S POSITION WITH THE CITY WOULD GIVE HIM MORE MARKETABLE SKILLS IN PRIVATE PRACTICE IN OTHER CITIES. MR. BARKYOUMB REPLIED THAT THIS WOULD BE A VIOLATION OF THE ETHICS ORDINANCE, AS WELL AS A VIOLATION OF HIS OWN CODE OF ETHICS. IT WOULD MAKE HIM SUBJECT TO IMMEDIATE DISMISSAL. MEMBER LEHMANN EXPRESSED HIS DESIRE TO REVIEW A WRITTEN PROCEDURE GOVERNING THE PROCESSES THAT WOULD BE INSTITUTED AS OUTLINED BY MS. RHODE. MS. RHODE SAID THAT SHE IS SOMEWHAT UNCOMFORTABLE GIVING INCOME TAX SPECIFIC INFORMATION TO THE BOARD, AND NEEDS SOME TIME TO CONSIDER HER RESPONSE. MOTION BY MEMBER SULLIVAN TO TABLE THIS MATTER PENDING THE BOARD'S RECEIPT OF AND REVIEW OF REQUESTED INFORMATION AT THEIR JANUARY 1 998 MEETING. MOTION CARRIED 5/0 2. LETTER FROM BETSY DAVIS PANDY; MEMBER JOHNSON REQUESTED THE FOLLOWING INFORMATION FROM THE CITY ATTORNEYS OFFICE; A COPY OF THE BOARD OF WATER & LIGHT PURCHASING ORDINANCE OR PROCEDURES, AND A COPY OF ALL BUSINESS TRANSACTIONS BETWEEN THE BOARD OF WATER & LIGHT AND PANDY GALLERIES IN 1 995 AND 1 996. SHE WOULD LIKE TO BE ABLE TO ASCERTAIN IF THE AMOUNTS LISTED IN THESE TRANSACTIONS ARE WITHIN PURCHASING GUIDELINES. MEMBER SULLIVAN EXPRESSED HER CONCERN THAT THIS ISSUE HAS BEEN ON THE BOARD'S AGENDA SINCE THE SPRING AND NEEDS TO BE RESOLVED. SHE DOES NOT AGREE THAT THERE IS A NEED FOR FURTHER INQUIRIES. MOTION BY MEMBER LEHMANN TO TABLE THIS ISSUE PENDING RECEIPT OF THE INFORMATION REQUESTED FROM THE CITY ATTORNEY MOTION CARRIED BY THE FOLLOWING VOTE: 5 MINUTES: BOARD OF ETHICS MEETING DECEMBER 9, /997 PG. 6 YEAS: MEMBERS LEHMANN, JOHNSON, ANDERSON NAYS: MEMBERS SULLIVAN, NOLE 3. LETTER TO VINCE CANTRELL; THE MINUTES OF OCTOBER 1 4, 1 997 WERE CORRECTED TO REFLECT THAT THIS ISSUED WAS RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION REQUIRED BY THE BOARD. 4. LETTER SENT TO STEPHANIE WHITBECK; IT WAS THE CONSENSUS OF THE BOARD THAT THIS ITEM BE RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION BY THE BOARD REQUIRED. 5. LETTER SENT TO CHRISTINE TIMMON; IT WAS THE CONSENSUS OF THE BOARD THAT THIS ITEM BE RECEIVED AND PLACED ON FILE WITH NO FURTHER ACTION BY THE BOARD REQUIRED. NEXT REGULAR MEETING DATE: TUESDAY, JANUARY 1 3, 1 998 CHAIR'S REPORT: THE CHAIR DID NOT GIVE A REPORT. OLD BUSINESS: I . STATEMENT OF FINANCIAL INTEREST: ..TOE DANDY TABLED PENDING THE RECEIPT OF INFORMATION REQUESTED FROM THE CITY ATTORNEY NEW BUSINESS I . AFFIDAVIT OF DISCLOSURE FILED BY VINCE CANTRELL; RECEIVED AND PLACED ON FILE 2. AFFIDAVIT OF DISCLOSURE FILED BY WILLIAM BARKYOUMB; TABLED PENDING THE RECEIPT OF INFORMATION REQUESTED BY THE BOARD 3. PENDING COMPLAINTS (CONFIDENTIAL) MOTION BY MEMBER LEHMANN TO DISMISS THE COMPLAINT FILED BY WILLY WILLIAMS BECAUSE OF THE FAILURE OF THE COMPLAINT TO STATE A VIOLATION COGNIZABLE UNDER THE TERMS OF THE ETHICS ORDINANCE. MOTION CARRIED 5/0 6 MINLMES: BOARD OF ETHICS MEETING DECEMBER 9, 1997 PG. 7 MOTION BY MEMBER SULLIVAN TO DISMISS THE COMPLAINT FILED BY CHARLENE DECKER BECAUSE OF THE FAILURE OF THE COMPLAINT TO STATE A VIOLATION COGNIZABLE UNDER THE TERMS OF THE ETHICS ORDINANCE. MOTION CARRIED 5/0 CITY CLERK MARILYNN SLADE WAS DIRECTED TO DRAFT LETTERS INFORMING THE COMPLAINANTS THAT THE BOARD HAS DISMISSED THEIR COMPLAINTS DUE TO THE LACK OF COGNIZABLE VIOLATIONS OF THE ETHICS ORDINANCE. 4. SCHEDULE OF MEETINGS FOR 1 998 (LATE ITEM): MOTION BY MEMBER LEHMANN TO APPROVE THE SCHEDULE OF 1 998 ETHICS BOARD MEETINGS AS SUBMITTED BY THE CITY CLERK. MOTION CARRIED 5/0 MOTION BY MEMBER HOLE THAT THE CITY CLERK, ON BEHALF OF THE BOARD SEND A LETTER TO MR. KNECHTEL INFORMING HIM THAT HE HAS 30 DAYS TO COMPLY WITH THE 1 995 REQUEST OF THE BOARD THAT HE MEET WITH THE CITY ATTORNEY PRIOR TO DOING ANY FURTHER BUSINESS WITH THE CITY. AND STATING THAT, IF HE HAS NOT COMPLIED WITH THIS REQUEST WITHIN 30 DAYS OF RECEIPT OF THE LETTER, THE PURCHASING DIVISION WILL BE INSTRUCTED TO NOT DO FURTHER BUSINESS WITH HIM UNTIL THEY RECEIVE NOTICE OF HIS COMPLIANCE. IN ADDITION, THE LETTER SHOULD CONVEY THE BOARDS REQUEST THAT MR. KNECHTEL MEET WITH THEM FOLLOWING HIS MEETING WITH THE CITY ATTORNEY ON THIS MATTER AND REQUESTING THAT HE ATTEND THE JANUARY BOARD MEETING. MOTION CARRIED 5/0 THE BOARD REQUESTED THAT THE ARRANGEMENT OF THE TABLES BE MODIFIED FOR FUTURE MEETINGS. THEY WOULD PREFER TO HAVE THE TABLES IN A HORSESHOE DESIGN, RATHER THAN IN A STRAIGHT LINE. MOTION BY MEMBER JOHNSON TO ADJOURN. MOTION CARRIED 5/0 ADJOURNMENT MOTION BY PUBLIC MEMBER JOHNSON TO ADJOURN. MOTION CARRIED 5/0 MEETING ADJOURNED AT 7:35 P.M. �c RESPECTFULLY SUBMITTED, �_� cal DEBORAH K. MINER,