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HomeMy WebLinkAbout1998 Ethics Minutes -ALL .� y Z A{ z CO3 3 N N { p ^VVVlr N mpND D m m { { D ZOp D m -um 0c C30 cAA � ;,. t: � _ WA T A _ _ o _ W y O co coc� (Dc10o (Da) (D (D � m a) (n W 1 CD Ck.J A I.J REVISED MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING JANUARY 13. 1998 - 5•30 P.M. TENTH FLOOR CONFERENCE ROOM LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:35 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD KUIPER, CHAIRMAN DAVID KIMBALL, VICE-CHAIR DAVID LEHMANN, PUBLIC MEMBER CALVIN ANDERSON, PUBLIC MEMBER ROBERT HOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER ABSENT- A QUORUM WAS PRESENT DR. GEORGIA L. JOHNSON, PUBLIC MEMBER OTHERS PRESENT: JILL RHODE, TREASURER WILLIAM BARKYOUMB, INCOME TAX AUDITOR WENDEL HALL, DEPUTY CITY ATTORNEY MARILYNN SLADE, CITY CLERK PUBLIC COMMENT: JILL RHODE, CITY TREASURER, STATED THAT SHE HAD TURNED IN FOR THE BOARDS REVIEW THE PROCESS THAT WOULD BE FOLLOWED IN THE TREASURERS OFFICE TO ENSURE THAT WILLIAM BARKYOUMB WOULD NOT AUDIT TAX RETURNS HE PREPARED. THE BOARD HAS ALSO BEEN FURNISHED A COPY OF A LETTER FROM MR. BARKYOUMB. SHE SAID THAT MR. BARKYOUMB HAS AGREED NOT TO TAKE ON ANY NEW CITY OF LANSING CLIENTS OR TO AUDIT ANY RETURNS THAT WERE DONE BY HIM. HIS TIME WILL BE SPENT PRIMARILY AUDITING CORPORATION AND PARTNERSHIP RETURNS AND ONLY 40% OF THE TIME WILL BE SPENT AUDITING INDIVIDUAL TAX RETURNS. MR. BARKYOUMB HAS ONLY 1 65 CLIENTS IN LANSING AND THERE ARE 100,000 TAX RETURNS HANDLED BY THE TREASURERS OFFICE. CHAIRPERSON KUIPER ASKED IF OTHER AUDITORS IN THE TREASURERS OFFICE WOULD BE AS CRITICAL IN AUDITING RETURNS PREPARED BY MR. BARKYOUMB AS THOSE DONE BY OTHER PREPARERS. JILL RHODE RESPONDED THAT THEY HAVE ESTABLISHED CRITERIA THAT DETERMINES WHICH RETURNS WILL BE SUBJECT TO AUDIT. IF THIS CRITERIA KICKS OUT A RETURN THAT HAS BEEN PREPARED BY MR. BARKYOUMB, SHE WILL AUDIT THE RETURN AND NOT THE OTHER AUDITORS IN THE DEPARTMENT. CHAIRPERSON KUIPER STATED THAT HE FEELS THE SAFEGUARDS THAT HAVE BEEN PUT IN PLACE ARE SUFFICIENT TO AVOID A CONFLICT OF INTEREST. JILL RHODE RESPONDED THAT SHE FEELS THE SAFEGUARDS DO PROVIDE THAT ASSURANCE. MOTION BY ROBERT HOLE: 1 MINUTES: BOARD OF ETH/CS MEET/NC; JANUARY /3, /998 PG. 2 THE BOARD FINDS MR. BARKYOUMB'S RELATIONSHIP WITH THE TREASURER'S OFFICE WOULD NOT REPRESENT CONFLICT OF INTEREST GIVEN THE SAFEGUARDS THAT HAVE BEEN IMPLEMENTED BY THE DEPARTMENTAND THE CONDITIONS PRESENTED IN MR. BARKYOUMB'S LETTER TO THE BOARD OF ETHICS AND, FURTHER, THAT THE CITY ATTORNEY'S OFFICE FEELS THAT THE SAFEGUARDS ARE SUFFICIENT TO ENSURE NO CONFLICT OF INTEREST. MOTION CARRIED 6/0 THE BOARD ALSO WISHED THE RECORD TO REFLECT THAT, BY THIS MOTION, THEY ARE NOT GRANTING AN EXCEPTION TO THE CITY'S ETHICS CODE AS REQUESTED IN MR. BARKYOUMB'S LETTER. THEY ARE STATING THAT THE SAFEGUARDS THAT HAVE BEEN PUT IN PLACE ASSURE THE BOARD THAT MR. BARKYOUMB DOES NOT HAVE A CONFLICT OF INTEREST. APPROVAL OF AGENDA: MOTION BY VICE CHAIR KIMBALL TO AMEND THE AGENDA TO ADD THE RESPONSES FROM JILL RHODE AND WILLIAM BARKYOUMB, AN AFFIDAVIT OF DISCLOSURE FILED BY JENNIFER GRAU, THE INFORMATION REQUESTED FROM THE BOARD OF WATER & LIGHT REGARDING THE PANDY STATEMENT OF FINANCIAL INTEREST, AND UNDER NEW BUSINESS A DISCUSSION OF THE ISSUES RAISED BY THE BARKYOUMB DISCLOSURE. MOTION CARRIED 6/0 SECRETARY'S REPORT: APPROVAL OF MINUTES OF DECEMBER 9 1 997: MOTION BY VICE CHAIR KIMBALL TO CORRECT THE MINUTES OF THE DECEMBER 9, 1 997 MEETING ON PAGE 2, LAST PARAGRAPH, TO ADD THE WORD "STARTING" IN THE SENTENCE "HE STATED THAT THE STARTING SALARY FOR THE SENIOR AUDITOR POSITION IS $4 1 ,300 PER YEAR" AND TO APPROVE THE MINUTES AS CORRECTED. MOTION CARRIED 6/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: I . STATEMENT OF FINANCIAL INTEREST FILED BY LARRY MEYER MOTION BY PUBLIC MEMBER SULLIVAN TO RECEIVE AND PLACE ON FILE MR. MEYER's STATEMENT OF FINANCIAL INTEREST. MOTION CARRIED 6/0 2. STATEMENT OF FINANCIAL INTEREST FILED BY LOUTS H. ADADO MOTION BY PUBLIC MEMBER SULLIVAN TO RECEIVE AND PLACE ON FILE MR. ADADO'S STATEMENT OF FINANCIAL INTEREST. MOTION CARRIED 6/0 3. STATEMENT OF FINANCIAL INTEREST FILED BY MICHAEL C. MURPHY MOTION BY PUBLIC MEMBER ANDERSON TO RECEIVE AND PLACE ON FILE MR. MURPHY'S STATEMENT OF FINANCIAL INTEREST. 2 MINUTES: BOARD OF ETHICS MEETINv JANUARY 13, 1998 PG. 3 MOTION CARRIED 6/0 4. AFFIDAVIT OF DISCLOSURE FILED BY COUNCILMEMBER MICHAEL C. MURPHY MOTION BY VICE CHAIR KIMBALL TO RECEIVE AND PLACE aF ON FILE THE AFFIDAVIT OF DISCLOSURE FILED BY MICHAEL MURPHY NOTING THAT THIS DISCLOSURE MUST COMPLY WITH THE GUIDELINES IN SECTION 290.05 OF THE ETHICS ORDINANCE. THE CITY CLERK IS DIRECTED TO SEND A LETTER TO MR. MURPHY INFORMING HIM OF THIS DECISION AND OF THE CONTENT OF SECTION 290.05. MOTION CARRIED 6/0 5. AFFIDAVIT OF DISCLOSURE FILED BY JENNIFER GRAU MOTION BY VICE CHAIR KIMBALL TO RECEIVE MS. GRAU'S DISCLOSURE AND PLACE IT ON FILE WITH THE UNDERSTANDING THAT SHE WILL REFRAIN FROM PARTICIPATING IN THE DISCUSSION OF THE MATTER OUTLINED AND WILL RECUSE HERSELF FROM VOTING AS A MEMBER OF THE HISTORIC DISTRICT COMMISSION ON THE REQUEST FOR FUNDING FOR HABITAT FOR HUMANITY. MOTION CARRIED 6/0 CITY ATTORNEY'S REPORT: DEPUTY CITY ATTORNEY HALL PROVIDED THE BOARD WITH A REPORT FROM THE BOARD OF WATER & LIGHT REGARDING PAYMENTS MADE TO THE PANDY GALLERY FROM JANUARY, 1 995 TO NOVEMBER, 1 996 AS WELL AS OTHER INFORMATION THE BOARD HAD REQUESTED IN THIS MATTER. MOTION BY VICE CHAIR KIMBALL THAT MR. PANDY'S STATEMENT OF FINANCIAL INTEREST BE RECEIVED AND PLACED ON FILE WITH NO FURTHER BOARD ACTION CONTEMPLATED AND TO THANK ALL PARTIES INVOLVED FOR THEIR COOPERATION WITH THE BOARD. MOTION CARRIED 6/0 CHAIR'S REPORT: CHAIRPERSON KUIPER ASKED THE SECRETARY TO FOLLOW UP WITH THE ADMINISTRATION ON APPOINTMENTS NEEDED TO BRING THE BOARD TO FULL MEMBERSHIP OF EIGHT. OLD BUSINESS THE AFFIDAVIT OF DISCLOSURE FILED BY WILLIAM BARKYOUMB WAS TAKEN UP UNDER PUBLIC COMMENTS. THE LETTER FROM BETSY DANDY AND OTHER DOCUMENTATION RECEIVED FROM THE BOARD OF WATER & LIGHT WAS TAKEN UP UNDER CITY ATTORNEYS REPORT. SECRETARY SLADE INFORMED THE BOARD THAT SHE HAS LEARNED THAT DON KNECHTEL RETIRED FROM THE CITY IN DECEMBER OF 1 995 SO HE NO LONGER FALLS UNDER THE JURISDICTION OF THE BOARD. 3 MINUTES: BOARD OF ETHICS MEETI/vv JANUARY 13, 1998 PG. 4 DEPUTY CITY ATTORNEY HALL REPORTED THAT HE MET WITH OFFICER MAATMAN AND INFORMED HIM THAT HE MUST HAVE NO ROLE IN DIRECTING POLICE BUSINESS TO HIS WIFE'S COMPANY IN ORDER FOR HER TO BE ALLOWED TO DO BUSINESS WITH THE CITY. OFFICER MAATMAN AGREED TO THESE TERMS AND DEPUTY CITY ATTORNEY HALL FEELS THIS PROVIDES THE NEEDED SAFEGUARDS. MOTION BY PUBLIC MEMBER SULLIVAN: TO ACCEPT AND PLACE ON FILE OFFICER MAATMAN'S DISCLOSURE WITH THE STIPULATION THAT HE USE THE GUIDANCE OF THE DEPUTY CITY ATTORNEY AND FOLLOW THE PROCEDURES OUTLINED BY HIM TO AVOID A CONFLICT OF INTEREST. MOTION CARRIED 6/0 DEPUTY CITY ATTORNEY HALL ALSO REPORTED THAT HE HAS NOT BEEN CONTACTED BY MR. KRANICH. MOTION BY PUBLIC MEMBER NOLE: THAT THE CITY CLERK SEND MR. KRANICH A LETTER STATING THAT HE MUST CONTACT THE CITY ATTORNEY'S OFFICE WITHIN THIRTY DAYS REGARDING HIS AFFIDAVIT OF DISCLOSURE FILED WITH THE BOARD. FAILURE TO DO SO MAY RESULT IN THE BOARD RECOMMENDING TERMINATION OF HIS DOING ANY BUSINESS WITH THE CITY THROUGH PATCHES PLUS. MOTION CARRIED 6/0 THE BOARD OF ETHICS VOTED AT THEIR FEBRUARY 10, 1998 MEE77NG TO AMEND THE JANUARY 13, 1998 MEETING MINUTE'S TO REFLECT A STATEMENT BY MEMBER SULLIVAN TO THE EFFECT 77-IAT LANSING COMMUNITY COLLEGE WISHED TO EXPRESS THEIR 77-IANKS TO 77-IE BOARD OF E77-IICS FOR 77-IE LOAN OF THE E77-IICS 777AINING VIDEO, AS WELL AS 77-IEIR APPRECIA77ON OF THE HIGH QUALTIY OF 77-IE VIDEO. NEW BUSINESS A DISCUSSION WAS HELD REGARDING BOARD CONCERNS ABOUT THE ISSUES RAISED BY MR. BARKYOUMB'S DISCLOSURE. BOARD MEMBERS EXPRESSED CONCERN THAT DISCLOSURES ARE BEING FILED WITH THE BOARD AFTER ACTION HAS ALREADY OCCURRED. THIS PLACES THE BOARD IN A VERY UNCOMFORTABLE POSITION. SECRETARY SLADE WAS ASKED TO CONTACT PERSONNEL DIRECTOR SHARON BOMMARITO AND INVITE HER TO THE FEBRUARY MEETING OR THE NEXT EARLIEST MEETING THAT WILL MEET WITH HER SCHEDULE TO DISCUSS THIS MATTER WITH BOARD MEMBERS. ADJOURNMENT MEETING ADJOURNED AT 7: 1 5 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: 4 MINUTES: BOARD OF ETHICS MEE77/vv JANUARY 13, 1998 PG. 5 5 11 DRAFT MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING FEBRUARY 10. 1998 - 5:30 P.M. TENTH FLOOR COUNCIL CHAMBERS, 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: DR. DONALD KUIPER, CHAIRMAN DAVID KIMBALL, VICE-CHAIR CALVIN ANDERSON, PUBLIC MEMBER DR. GEORGIA L. JOHNSON, PUBLIC MEMBER DAVID LEHMANN, PUBLIC MEMBER ROBERT HOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER ABSENT: NONE A QUORUM WAS PRESENT OTHERS PRESENT: Kim KRANICH, LANSING POLICE OFFICER WENDALL HALL, ASSISTANT CITY ATTORNEY DEBORAH K. MINER, RECORDING SECRETARY APPROVAL OF AGENDA: IT WAS THE CONSENSUS OF THE BOARD THAT THE AGENDA BE APPROVED AS SUBMITTED. CITY ATTORNEY'S REPORT: MR. HALL REPORTED MEETING WITH MR. KRANICH TO DISCUSS THE PATCHES PLUS MATTER. PATCHES PLUS DOES BUSINESS WITH THE CITY PARKS & RECREATION DEPARTMENT AND WITH CITY GOLF COURSES ON A OPEN BID BASIS. HIS INVOLVEMENT IS LIMITED TO PRICES AND PRODUCT INFORMATION. HE DOES NOT DO BUSINESS WITH THE LPD. THE CITY ATTORNEY HAS ADVISED MR. KRANICH THAT HE SHOULD AVOID SITUATIONS IN WHICH THERE IS NO BID PROCESS. SECRETARY'S REPORT: APPROVAL OF MINUTES OF JANUARY 1 3, 1 998: MOTION BY PUBLIC MEMBER SULLIVAN TO AMEND THE MINUTES OF JANUARY 1 3, 1 998 ON PAGE THREE (3), ITEM #4, TO REPLACE THE WORD "OF" WITH THE WORD "ON", SO THAT THE AFFIDAVIT OF DISCLOSURE FROM COUNCILMEMBER MURPHY IS RECEIVED AND PLACED ON FILE. AND THAT A NOTATION BE ADDED TO THE MINUTES INDICATING THE APPRECIATION OF LANSING COMMUNITY COLLEGE FOR THE LOAN OF THE ETHICS VIDEO, AS WELL AS THEIR APPRECIATION OF THE QUALITY OF THE VIDEO. MOTION BY PUBLIC MEMBER JOHNSON TO CORRECT THE JANUARY 1 3, 1 998 MINUTES BY 1 MINUTES: BOARD OF ETHICS MEETING FEBRUARY /O, /998 FG. 2 SHOWING THAT HER ABSENCE WAS EXCUSED. MOTION BY PUBLIC MEMBER ANDERSON TO ACCEPT THE CORRECTIONS REQUESTED BY MEMBERS SULLIVAN AND JOHNSON AND TO APPROVE THE MINUTES OF JANUARY 1 3, 1 998 AS CORRECTED. MOTION CARRIED 7/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST'MEETING: I . AFFIDAVIT OF DISCLOSURE FILED BY KEVIN PEABODY, MECHANICAL INSPECTOR (PARTTIME) FOR THE BUILDING SAFETY OFFICE OF THE PND DEPARTMENT MOTION BY VICE-CHAIR KIMBALL TO TABLE THE AFFIDAVIT OF DISCLOSURE FILED BY KEVIN PEABODY, MECHANICAL INSPECTOR WITH THE BUILDING SAFETY OFFICE. MOTION CARRIED 7/0 THE CITY CLERK WAS REQUESTED TO INFORM THE PERSONNEL DIRECTOR THAT THE BOARD WISHES TO DISCUSS WITH HER THE ISSUE OF EXTRA-CURRICULAR EMPLOYMENT BY CITY EMPLOYEES. MOTION BY PUBLIC MEMBER ANDERSON THAT THE CITY CLERK WRITE TO MR. PEABODY INFORMING HIM THAT HIS AFFIDAVIT HAS BEEN TABLED PENDING AN INTERVIEW WITH THE DIRECTOR OF PERSONNEL SERVICES. MOTION CARRIED PUBLIC MEMBER ANDERSON REQUESTED THAT THE MINUTES REFLECT THAT BOARD MEMBERS ARE REQUESTED TO PUT TOGETHER THEIR THOUGHTS AND DEVELOP GENERAL QUESTIONS THAT THEY WOULD LIKE TO SEE ADDRESSED BY THE PERSONNEL DIRECTOR WITH REGARD TO THE PRACTICES AND POLICIES USED BY THE CITY TO DEAL WITH THE HIRING OF EMPLOYEES WITH PROFESSIONAL SKILLS WHO CONTINUE TO OPERATE THEIR TRADE THROUGHOUT THE CITY FOLLOWING THEIR EMPLOYMENT. VICE-CHAIR KIMBALL STATED HIS CONCERN THAT EMPLOYEES WHO INSPECT THE WORK OF THEIR COMPETITORS MAY BE IN A CONFLICT SITUATION. 2. LETTER TO JOSEPH DANDY RECEIVED AND PLACED ON FILE 3. LETTER TO JENNIFER GRAY RECEIVED AND PLACED ON FILE 4. LETTER TO Kim KRANICH HANDLED UNDER OLD BUSINESS 2 MINUTES: BOARD OF ETHICS MEETING FEBRUARY /O, /998 PG. 3 5. LETTER TO MICHAEL MURPHY RECEIVED AND PLACED ON FILE 6. LETTER TO LARRY MEYER RECEIVED AND PLACED ON FILE 7. LETTER TO LOUTS ADADO RECEIVED AND PLACED ON FILE 8. LETTER TO NOEL MAATMAN RECEIVED AND PLACED ON FILE NEXT REGULAR MEETING DATE: MARCH 10, 1 998 CHAIR'S REPORT: OLD BUSINESS: I . KRANICH DISCLOSURE: MR. KRANICH REPEATED THE INFORMATION RECEIVED FROM CITY ATTORNEY HALL REGARDING THEIR MEETING. BOARD MEMBERS SOLICITED THE FOLLOWING INFORMATION FROM MR. KRANICH; HE IS ON THE BID LIST WITH THE PURCHASING DIVISION OF THE FINANCE DEPARTMENT FOR CERTAIN ITEMS. HE IS INFORMED OF REQUESTS FOR BIDS AND DETERMINES WHETHER PATCHES PLUS WISHES TO BID ON ITEMS, OR NOT. IF THE DETERMINATION IS POSITIVE, HE SUBMITS CATALOGUES TO THE PURCHASING DEPARTMENT, ALONG WITH THE REQUESTED BID. HE CO-OWNED THIS BUSINESS WITH MR. KNECHTEL UNTIL HE BOUGHT MR. KNECHTEL'S SHARE IN 1 996. HE STATED THAT HE DID NOT SUBMIT ANY BIDS FOR CITY JOBS IN 1 997, HOWEVER, PATCHES PLUS DID OVER $4,000 IN BUSINESS WITH CITY GOLF COURSES LAST YEAR THAT WAS NOT CONDUCTED THROUGH A BID PROCESS. THESE WERE ORDERS THAT WERE PLACED THROUGH HIS CATALOGUE BECAUSE HE IS A VENDOR WITH THE CITY OF LANSING. MOTION BY VICE-CHAIR KIMBALLTHATTHE KRANICH DISCLOSURE BE RECEIVED AND PLACED ON FILE WITH THE STIPULATION THAT MR. KRANICH HAS BEEN MADE AWARE THAT HE MUST FOLLOW THE GUIDELINES SET FORTH TO HIM BY CITY ATTORNEY HALL. MOTION CARRIED 7/0 NEW BUSINESS BOARD ROUNDTABLE DISCUSSION PUBLIC MEMBER ANDERSON REPORTED SPEAKING WITH AN EMPLOYEE OF THE BOARD OF WATER & LIGHT WHO HAD VIEWED THE ETHICS TRAINING VIDEO AND COMPLIMENTED IT, SAYING, THAT IT WAS 3 MINUTES: BOARD OF ETHICS MEETING FEBRUARY 10, 1998 PG. 4 THE BEST TRAINING VIDEO HE HAD EVER SEEN. MOTION BY VICE-CHAIR KIMBALL THAT CHAIRMAN KUIPER SEND A COPY OF THE ETHICS VIDEO TO CITY COUNCIL, ALONG WITH A NOTE SAYING THAT THE BOARD IS PLEASE TO BE ABLE TO SUBMIT TOHE TRAINING VIDEO, WHICH IS ONE OF THE FIRST OF IT'S KIND. MOTION CARRIED 7/0 THE FOLLOWING NOTATION, IN THE FORM OF A CORRECTION, IS MADE AT THE REQUEST OF CHAIRMAN KuIPER: CHAIRMAN KU/PER EXPRESSED GREATCONCERN REGARDING THE FACT77-IATTHERE ARE INDIVIDUALS RESIDING IN LANSING AND PRACTICING THEIR 777ADE OR PROFESSION IN THE PRIVA7E SECTOR, AND AT THE SAME 77ME, DOING BUSINESS WITH THE CITY. ADJOURNMENT MOTION BY PUBLIC MEMBER JOHNSON TO ADJOURN. MOT10N CARRIED 7/0 MEETING ADJOURNED AT 6:30 P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: 4 MINUTES: BOARD OF ETHICS MEETING FEBRUARY 10, 1998 PG. 4 THE BEST TRAINING VIDEO HE HAD EVER SEEN. MOTION BY VICE-CHAIR KIMBALL THAT CHAIRMAN KUIPER SEND A COPY OF THE ETHICS VIDEO TO CITY COUNCIL, ALONG WITH A NOTE SAYING THAT THE BOARD IS PLEASED TO BE ABLE TO SUBMIT THE TRAINING VIDEO, WHICH IS ONE OF THE FIRST OF IT'S KIND. MOTION CARRIED 7/0 THE FOLLOWING NOTATION, IN THE FORM OF A CORRECTION, IS MADE AT THE REQUEST OF CHAIRMAN Ku I PER: CHAIRMAN KU/PER EXPRESSED GREAT CONCERN REGARDING THE FACT THAT THERE ARE INDIVIDUALS RESIDING /N LANSING AND PRAC77CING THEIR TRADE OR PROFESSION IN THE PR/VA7E_SECTOR, AND AT THE SAME 77ME, DOING BUSINESS WITH THE CITY. ADJOURNMENT MOTION BY PUBLIC MEMBER JOHNSON TO ADJOURN. MOTION CARRIED 7/0 MEETING ADJOURNED AT 6:30 P.M. RESPECTFULLY SUBMITTED, DEBORAH K. MINER, RECORDING SECRETARY DATE APPROVED: 4 MINUTES: BOARD OF ET7-1ICS MEETING MARCH 10, /998 FG. l r- v� J w T[ MINUTES y LANSING CITY BOARD OF ETHICS REGULAR MEETING r MARCH 10. 1998 - 5:30 P.M. �j TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL :K C7 THE MEETING WAS CALLED TO ORDER AT 5:30 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD KUIPER, CHAIRMAN DR. GEORGIA JOHNSON, PUBLIC MEMBER DAVID LEHMANN, PUBLIC MEMBER CALVIN ANDERSON, PUBLIC MEMBER ROBERT NOLE, PUBLIC MEMBER ELLEN N. SULLIVAN, PUBLIC MEMBER ABSENT: DAVID KIMBALL, VICE CHAIR A QUORUM WAS PRESENT OTHERS PRESENT: E. T. BUCKLEY, N. HAYFORD ST. JIM SMIERTKA, CITY ATTORNEY WENDEL HALL, DEPUTY CITY ATTORNEY MARILYNN SLADE, CITY CLERK SHARON BOMMARITO, PERSONNEL DIRECTOR PUBLIC COMMENT: E. T. BUCKLEY STATED THAT HE HAD A PROBLEM WITH ETHICS IN THIS CITY. HE SAID THAT IT WAS HIS UNDERSTANDING THAT COUNCIL WILL BE SETTING UP A POLICE REVIEW BOARD NEXT MONDAY NIGHT AND THAT THEY WILL HAVE THEIR OWN ETHICS BOARD. HE SEES NO REASON FOR THERE TO BE TWO ETHICS BOARDS IN THE CITY. HE SAID THAT THEY ARE GOING TO CHANGE THE CITY CHARTER TO IMPLEMENT THIS ETHICS BOARD FOR THE POLICE DEPARTMENT. APPROVAL OF AGENDA: MOTION BY ELLEN SULLIVAN TO APPROVE THE AGENDA AS SUBMITTED. MOTION CARRIED 6/0 SECRETARY'S REPORT: APPROVAL OF MINUTES OF FEBRUARY 1 0, 1 998: MOTION BY DAVID LEHMANN TO CORRECT THE MINUTES OF THE FEBRUARY 1 0, 1 998 MEETING ON PAGE 4, TO READ THAT "THE BOARD IS PLEASED TO BE ABLE TO SUBMIT THE TRAINING VIDEO WHICH IS ONE OF THE FIRST OF ITS KIND" AND TO APPROVE THE MINUTES AS CORRECTED. 1 MINUTES: BOARD OF ETHICS MEETING MARCH /O, /998 PG. 2 MOTION CARRIED 6/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: NONE CITY ATTORNEY'S REPORT: NONE CHAIR'S REPORT: CHAIRPERSON KUIPER REPORTED THAT HE HAS RECEIVED A COPY OF THE ETHICS TRAINING VIDEO AND MANUAL AND THAT HE WILL MEET WITH COUNCIL PRESIDENT BENAVIDES TO DISCUSS WAYS OF PRESENTING THIS TO COUNCILMEMBERS. BOARD MEMBERS FELT IT WOULD BE NICE TO REQUEST TIME ON A COUNCIL AGENDA TO SHOW THE VIDEO ON CHANNEL 28/1 2 SO THAT THE GENERAL PUBLIC CAN ALSO SEE IT. IT WAS ALSO SUGGESTED THAT BOARD MEMBERS COULD BE PRESENT AT THE MEETING AT WHICH THE VIDEO IS SHOWN. OLD BUSINESS PERSONNEL DIRECTOR SHARON BOMMARITO WAS PRESENT TO ANSWER BOARD QUESTIONS REGARDING THE SELECTION PROCESS FOR NEW EMPLOYEES. SHE EXPLAINED THAT THE CITY DOES NOT HAVE A PROHIBITION ON OUTSIDE EMPLOYMENT OF EMPLOYEES. WITH REGARDS TO THE BARKYOUMB MATTER, SHE CALLED DEPUTY CITY ATTORNEY HALL AND DISCUSSED THIS MATTER WITH HIM. MR. BARKYOUMB WAS ADVISED THAT HIS EMPLOYMENT WOULD BE SUBJECT TO THE TERMS OF THE ETHICS ORDINANCE AND THAT HE MUST FILE AN AFFIDAVIT OF DISCLOSURE UPON BECOMING A CITY EMPLOYEE. HE UNDERSTOOD THAT HE WOULD HAVE TO ABIDE BY WHATEVER THE ETHICS BOARD DECIDED. CITY ATTORNEY SMIERTKA STATED THAT THE ETHICS ORDINANCE IS APPLICABLE ONLY WHEN AN INDIVIDUAL BECOMES AN OFFICER OR EMPLOYEE OF THE CITY, IT CANNOT REGULATE APPLICANTS FOR POSITIONS. APPLICANTS CAN BE ADDRESSED BY GIVING THEM A COPY OF THE ORDINANCE AND INFORMING THEM THAT THEY MUST COMPLY WITH IT IF THEY ARE HIRED. A POTENTIAL CONFLICT WOULD NOT BE A VALID REASON TO REJECT A CANDIDATE UNTIL THEY BECOME AN EMPLOYEE. HE WOULD SUGGEST THAT WHEN THEY ARE DOWN TO FINAL SCREENING OF APPLICANTS FOR A POSITION, THE FINALISTS BE GIVEN A COPY OF THE ETHICS ORDINANCE SO THEY KNOW THE REQUIREMENTS BEFORE THEY ACCEPT A POSITION. CAL ANDERSON STATED THAT IT BOTHERS THE BOARD THAT BEFORE AN APPLICANT IS HIRED, THERE IS SOME KIND OF AGREEMENTTHAT THEY CAN HAVE THE JOB BUT THAT, FOR EXAMPLE, THEY MAY NOT INSPECT PROPERTIES A, B AND C OR THAT THEY MAY NOT AUDIT RETURNS THAT THEY WERE INVOLVED IN OR THAT THEY MAY NOT INSPECT THEIR OWN WORK. CITY ATTORNEY SMIERTKA RESPONDED THAT HE DOESN'T THINK A MANAGER SHOULD BE SAYING ANYTHING TO AN EMPLOYEE ABOUT FUTURE CONDITIONS BECAUSE THE ETHICS BOARD IS THE FINAL ARBITER. BOB NOLE STATED THAT IT APPEARS THERE IS SOMETIMES A NEED TO HIRE IN A HURRY . COULD THE 2 MINUTES: BOARD OF ETHICS MEET/NG MARCH 10, 1998 PG. 3 ETHICS BOARD BE INVOLVED BEFORE THE HIRING OF AN EMPLOYEE? ELLEN SULLIVAN SAID THAT, FOR EXAMPLE, COULD THE BOARD RULE PRIOR TO HIRING THAT NO ONE IN THE INCOME TAX DIVISION SHOULD BE DOING OUTSIDE WORK ON INCOME TAXES. COULD THE BOARD TAKE THIS KIND OF POSITION PRIOR TO HIRING IN THE FORM OF A PRELIMINARY OPINION? SHARON BOMMARITO RESPONDED THAT ALL CITY LABOR CONTRACTS HAVE ESTABLISHED TIME LIMITS FOR FILLING OF POSITIONS. FURTHER, THE BOARD WOULD HAVE TO MEET ON THE MATTER IN A PUBLIC FORUM ACCORDING TO THE OPEN MEETINGS ACT. SHE FELT THAT THE CITY COULD LOSE SOME GOOD CANDIDATES BECAUSE OF THIS TYPE OF SCRUTINY PRIOR TO HIRING. GEORGIA JOHNSON STATED THAT SHE DIDN'T LIKE THE IDEA THAT MR. BARKYOUMB HAD A SPECIAL PROCEDURE SO THAT HE WOULD NOT AUDIT TAX RETURNS THAT HE PREPARED. THIS BOTHERS HER BECAUSE IT APPEARED THAT HE HAD THIS AGREEMENT ALREADY WORKED OUT PRIOR TO COMING BEFORE THE BOARD. SHARON BOMMARITO RESPONDED THAT MR. BARKYOUMB WAS ADVISED THAT HE WOULD HAVE TO FILE AN AFFIDAVIT OF DISCLOSURE WITH THE BOARD. CITY ATTORNEY SMIERTKA THAT IT SHOULD BE THE PERSONNEL DEPARTMENT'S FUNCTION TO ADVISE A CANDIDATE FOR EMPLOYMENT THAT THEY MAY HAVE AN ETHICS ISSUE AND THAT THEY SHOULD BE FULLY AWARE OF IT BEFORE ACCEPTING A POSITION. DEPUTY CITY ATTORNEY HALL STATED THAT MR. BARKYOUMB WAS VERY CLEARLY INFORMED THAT THIS BOARD COULD SAY NO AND NOT TO ACCEPT THE JOB WITHOUT THE UNDERSTANDING THAT THE BOARD COULD SAY NO. DAVID LEHMANN ASKED WHAT WOULD HAVE HAPPENED IF MR. BARKYOUMB HAD NOT FILED AN AFFIDAVIT OF DISCLOSURE WITH THE BOARD. CITY ATTORNEY SMIERTKA RESPONDED THAT IT WOULD HAVE BEEN A VIOLATION OF THE ETHICS ORDINANCE AND HE WOULD HAVE BEEN SUBJECT TO THE PENALTIES INCLUDED IN THE ORDINANCE. BOB HOLE STATED THAT THIS DISCUSSION HAS GIVEN HIM A NEW PERSPECTIVE ON THE MATTER. THE BARKYOUMB MATTER WAS THE CLOSEST THE BOARD HAS COME TO TELLING SOMEONE THAT THEY CANNOT WORK FOR THE CITY. IT IS THE BOARD'S JOB TO SAY NO IF THEY FEEL THAT IS THE CASE; THE BOARD NEEDS TO BE COMFORTABLE WITH MAKING THAT KIND OF DECISION. HE WOULD LIKE TO WITHDRAW HIS REQUEST THAT THE BOARD BE INVOLVED PRIOR TO HIRING AS THAT WOULD ONLY ADD ANOTHER LAYER TO THE SCREENING PROCESS. GEORGIA JOHNSON STATED THAT SHE WASN'T COMFORTABLE WITH THE POSITION IN WHICH SHE WAS PLACED IN THE BARKYOUMB MATTER. CAL ANDERSON STATED THAT HE FELT IT WAS DEFINITELY CONDITION OF EMPLOYMENT MADE BY THE TREASURER TO MR. BARKYOUMB THAT ALLOWED HIM TO RETAIN HIS CLIENTS. THE FRUSTRATION IS THAT HE FELT THE BOARD WAS PRESENTED WITH THE TERMS OF A CONTRACT THAT WAS ALREADY IN 3 MINUTES: BOARD OF ETH/CS MEETING MARCH /O, 1998 PG. 4 EFFECT AND THEN ASKED TO RULE ON THE CONFLICT. BOARD MEMBERS ARE NOT COMFORTABLE WITH THIS APPROACH. SHARON BOMMARITO RESPONDED THAT THE CITY TREASURER WAS JUST COMING UP WITH SOME OPTIONS FOR THE BOARD TO CONSIDER WHEREBY MR. BARKYOUMB MIGHT BE ABLE TO WORK FOR THE CITY EVEN THOUGH HE HAD A CONFLICT. CITY ATTORNEY SMIERTKA STATED THAT BOARD MEMBERS SHOULD NOT FEEL BAD ABOUT MAKING A DECISION IN CASES SUCH AS THIS AS THE EMPLOYEE ALREADY KNEW THE TERMS OF EMPLOYMENT. CHAIRPERSON KUIPER STATED THAT THE BOARD HAS TO MAKE THE TOUGH DECISIONS. ELLEN SULLIVAN STATED THAT IT JUST SEEMS MORE DIFFICULT TO DO SO WHEN IT IS A NEW EMPLOYEE. DEPUTY CITY ATTORNEY HALL SAID THAT MISS RHODE CAME TO HIM AND WAS VERY SERIOUS AND CONCERNED ABOUT THE MATTER AND THAT IT BE HANDLED ETHICALLY. HER PROPOSED PROCEDURE WAS A PROPOSAL ON HOW THE PROBLEM MIGHT BE HANDLED, NOT AN AGREEMENT. CHAIRPERSON KUIPER STATED FOR THE RECORD THAT HE PERSONALLY DOES NOT BELIEVE ANYONE SHOULD BE WORKING IN THE PRIVATE SECTOR AND THEN COMING TO WORK FOR THE CITY CONCURRENTLY IN THE SAME FIELD; I. E., A PLUMBER COMING TO WORK AS A PLUMBING INSPECTOR. ELLEN SULLIVAN SAID THAT A PRIVATE SECTOR BUSINESS WOULD NOT MAKE THIS KIND OF DECISION SO WHY IS IT BEING DONE IN GOVERNMENT? SHARON BOMMARITO RESPONDED THAT SHE FEELS IT WOULD LIMIT APPLICANTS AND THAT THE CITY CANNOT AFFIX A CONDITION OF EMPLOYMENT PRIOR TO HIRING. ELLEN SULLIVAN RESPONDED THAT SHE FELT THE BOARD COULD, AT LEAST, ISSUE THEIR POSITION AS A RECOMMENDATION. SHARON BOMMARITO STATED THAT SHE FEELS CONDITIONS WOULD HAVE TO BE NEGOTIATED AS PART OF THE LABOR CONTRACTS. CAL ANDERSON ASKED "ARE YOU TELLING ME THAT IF I AM A PLUMBER, I CAN WORK FOR THE CITY AS A PLUMBING INSPECTOR AND THAT IS OK WITH THE CITY?" SHARON BOMMARITO RESPONDED THAT ONCE A PERSON BECOMES AN EMPLOYEE OF THE CITY, THE BOARD OF ETHICS MUST DECIDE IF THAT IS OK OR NOT. CAL ANDERSON STATED THAT HE THINKS HE ASKED THE CITY TREASURER WHETHER OR NOT SHE WOULD ALLOW ANOTHER EMPLOYEE WHO IS NOT IN A SUPERVISORY ROLE IN THE DEPARTMENT TO CONTINUE DOING TAXES AFTER EMPLOYMENT BY THE CITY AND THAT SHE RESPONDED "NO". GEORGIA JOHNSON STATED THAT IT STRIKES HER THAT MANY OF THE PEOPLE WHO COME BEFORE THE 4 MINUTES: BOARD OF ETHICS MEET7NG MARCH /O, /998 PG. 5 BOARD HAVE OUTSIDE EMPLOYMENTAND SHE FEELS THIS COMPROMISES THE PERSONS TIME. HOW CAN AN INDIVIDUAL BECOME A PART TIME EMPLOYEE OF THE CITY AND HAVE A FULL TIME BUSINESS OUTSIDE THE CITY IN THE SAME FIELD? DEPUTY CITY ATTORNEY HALL ASKED IF THE BOARD WOULD FIND IT HELPFUL IF HE COMPILED A SUMMARY OF OPINIONS GIVEN BY THE BOARD OVER THE YEARS. CAL ANDERSON STATED THAT, FRANKLY, HE FINDS ONE OF THE DECISIONS OF THE BOARD TO BE EMBARRASSING. CITY ATTORNEY HALL RESPONDED THAT THE BOARD ALWAYS HAS THE RIGHT TO ISSUE A FORMAL OPINION ON HOW THEY INTEND TO PROCEED UNDER CERTAIN CIRCUMSTANCES. BOB HOLE ASKED ABOUT POTENTIAL INCONSISTENCY IN BOARD OPINIONS DUE TO CHANGES IN MEMBERSHIP OVER THE YEARS. WHAT IF A FUTURE EMPLOYEE OF THE TREASURERS OFFICE COMES BEFORE THE BOARD WITH AN ISSUE SIMILAR TO THAT OF MR. BARKYOUMB AND THE BOARD DENIES HIM THE RIGHT TO DO OUTSIDE TAX RETURNS? WOULD THIS PLACE THE BOARD IN THE POSITION OF POSSIBLY BEING SUED BY THIS EMPLOYEE? CITY ATTORNEY SMIERTKA RESPONDED THAT IF THE DEPARTMENTAL MANAGER WAS INCONSISTENT, IT COULD CAUSE SOME PROBLEMS. BUT, IF THE APPLICANT WAS MADE AWARE OF THE SITUATION, HE FEELS THAT IT IS STILL THE APPLICANTS DECISION WHETHER OR NOT TO ACCEPT A POSITION WITH THE CITY KNOWING THAT HE MAY HAVE A CONFLICT THAT THE BOARD OF ETHICS WILL NOT ALLOW. HE DOESN'T SEE THE CITY GETTING SUED IN SUCH AN INSTANCE. MEMBERS OF THE BOARD CANNOT BE SUED. IF A DEPARTMENT OR PERSONNEL MADE A PROMISE TO AN APPLICANT, THIS COULD BE A PROBLEM BUT IT WOULD NOT BE AN ETHICS BOARD PROBLEM. BOB NOLE ASKED "IF THE BOARD REVERSED ITS DECISION IN THE FUTURE ON AN ISSUE SIMILAR TO THAT BROUGHT BY MR. BARKYOUMB, WOULD MR. BARKYOUMB THEN HAVE TO GIVE UP HIS TAX CLIENTS?" CITY ATTORNEY SMIERTKA RESPONDED "NO"; HE WOULD BE GRAND FATHERED IN BY THE BOARDS PREVIOUS DECISION REGARDING HIS MATTER. CHAIRPERSON KUIPER STATED THAT THE BOARD WOULD LIKE TO THANK SHARON BOMMARITO AND JIM SMIERTKA FOR COMING TO THE MEETING THIS EVENING TO GIVE INSIGHT INTO THIS ISSUE. ELLEN SULLIVAN STATED THAT SHE NEVER PERCEIVED THAT ANY MANAGER COMING BEFORE THE BOARD EVER SUGGESTED THAT ANY PROMISES OR COMMITMENTS WERE MADE; SHE UNDERSTOOD THAT THEY WERE JUST TRYING TO FIND WAYS WITHIN THE STRUCTURE TO HANDLE A POTENTIAL CONFLICT. GEORGIA JOHNSON HAD TO LEAVE AT 6:45 P.M.; SHE WAS EXCUSED BY THE CHAIR. NEW BUSINESS NONE 5 MINUTES: BOARD OF ETHICS MEETING MARCH /O, /998 PG. 6 TABLED ITEM SECRETARY SLADE WAS ASKED TO INVITE DENNIS SYKES, OR HIS DESIGNEE, AND KEVIN PEABODY TO THE APRIL BOARD MEETING TO DISCUSS MR. PEABODY's AFFIDAVIT OF DISCLOSURE. BOARD ROUND TABLE CAL ANDERSON STATED THAT HE WOULD APPRECIATE IT IF DEPUTY CITY ATTORNEY HALL WOULD PROVIDE BOARD MEMBERS WITH A SUMMATION OF PREVIOUS BOARD OPINIONS. ADJOURNMENT MEETING ADJOURNED AT 6:45 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: 6 MINUTES: BOARD OF ETHICS MEETING APR/L 14, 1998 PG. I MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING APRIL 14, 1998 - S:30 P.M. TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:35 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD KUIPER, CHAIRMAN DAVID KIMBALL, VICE CHAIR DR. GEORGIA JOHNSON, PUBLIC MEMBER DAVID LEHMANN, PUBLIC MEMBER CALVIN ANDERSON, PHD, PUBLIC MEMBER ROBERT NOLE, PUBLIC MEMBER ABSENT: ELLEN SULLIVAN, PUBLIC MEMBER - EXCUSED A QUORUM WAS PRESENT OTHERS PRESENT: WENDEL HALL, DEPUTY CITY ATTORNEY MARILYNN SLADE, CITY CLERK JACK NELSON, MANAGER, BUILDING SAFETY GARY BIDDINGER, BUILDING SAFETY KEVIN PEABODY, BUILDING SAFETY PUBLIC COMMENT: NONE APPROVAL OF AGENDA: MOTION BY BOB HOLE TO APPROVE THE AGENDA AS SUBMITTED. MOTION CARRIED 6/0 SECRETARY'S REPORT: APPROVAL OF MINUTES OF MARCH 1 O. 1 998: MOTION BY GEORGIA JOHNSON TO CORRECT THE MINUTES OF THE MARCH 1 O, 1998 MEETING ON PAGE 4, TO ADD "CONCURRENTLY" IN THE SEVENTH PARAGRAPH AFTER "WORK FOR THE CITY" AND TO CHANGE THE WORD "AFTER" TO 11BEFORE" ON PAGE 2, PARAGRAPH 3 OF OLD BUSINESS AND TO APPROVE THE MINUTES AS CORRECTED. MOTION CARRIED 6/0 1 MINUTES: BOARD OF ETHICS MEETING APRIL 14, 1998 PG. 2 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED AND SENT. CITY ATTORNEY'S REPORT: DEPUTY CITY ATTORNEY HALL DISTRIBUTED COPIES OF AN INDEX TO ETHICS BOARD OPINIONS TO BOARD MEMBERS. HE STATED THAT HE WOULD BE HAPPY TO PROVIDE MEMBERS WITH THE FULL TEXT OF ANY OPINIONS SHOULD THEY SO DESIRE. CHAIR'S REPORT: CHAIRPERSON KUIPER REPORTED THAT HE HAS ASKED ELLEN SULLIVAN TO HELP HIM WITH A PRESENTATION TO CITY COUNCIL OF THE ETHICS VIDEO. HE HAS TALKED WITH COUNCIL PRESIDENT BENAVIDES AND PRESIDENT BENAVIDES SUGGESTED THAT THIS BE DONE AS PART OF A SPECIAL CEREMONY AT A COUNCIL MEETING. NO DATE HAS BEEN SET AT THIS TIME, BUT JUNE IS LIKELY. CHAIRPERSON KUIPER STATED THAT HE WOULD LIKE TO HAVE AS MANY BOARD MEMBERS AS POSSIBLE BE PRESENT AT THIS MEETING. OLD BUSINESS INTERVIEW OF KEVIN PEABODY REGARDING HIS AFFIDAVIT OF DISCLOSURE JACK NELSON, MANAGER OF THE BUILDING SAFETY DIVISION, STATED THAT KEVIN PEABODY HAS WORKED PART TIME FOR THE DIVISION FOR 6-7 MONTHS. THERE ARE TWO ELEMENTS IN HIS AFFIDAVIT OF DISCLOSURE THAT THEY ARE REQUESTING ACTION ON BY THE BOARD: I . IF MR. PEABODY CAN DO SERVICE WORK IN THE LANSING AREA FOR CLIENTS IF THE WORK DOES NOT REQUIRE A CITY PERMIT. 2. IF MR. PEABODY CAN COMPLETE WORK ON SOME COMMUNITY DEVELOPMENT GRANT PROJECTS. THESE PROJECTS PROVIDE FUNDING TO LOW AND MODERATE INCOME INDIVIDUALS FOR MAKING HOME REPAIRS. PRIOR TO HIS EMPLOYMENT WITH THE CITY, MR. PEABODY WAS LOW BIDDER FOR FOUR OF THESE PROJECTS WHICH HE PLANS TO COMPLETE. THERE IS A FIFTH PROJECT AT 1 247 CENTER STREET WHICH IS STILL IN PLAN REVIEW AND A BIDDER HAS NOT AS YET BEEN SELECTED BUT HE WOULD LIKE TO BE ALLOWED TO BID ON THIS PROJECT. GEORGIA JOHNSON ASKED MR. PEABODY WHAT DOES A MECHANICAL CONTRACTOR DO? MR. PEABODY RESPONDED INSTALLATION OR CHANGES TO EQUIPMENT, SUCH AS AIR CONDITIONING OR HEATING SYSTEMS WHEN A PERMIT IS REQUIRED. GEORGIA JOHNSON ASKED IF THE COMMUNITY DEVELOPMENT PROJECTS LISTED ARE IN THE CITY OF LANSING. MR. PEABODY RESPONDED "YES". GEORGIA JOHNSON ASKED IF THESE FIVE PROJECTS LISTED ARE COMING UP FOR PERMITS? 2 MINUTES: BOARD OF ETHICS MEETING APRIL 14, l 998 PG. 3 MR. PEABODY RESPONDED THAT FOUR OF THE FIVE HAVE BEEN IN PROGRESS FOR SEVERAL MONTHS AND WERE BEGUN BEFORE HIS EMPLOYMENT WITH THE CITY. GEORGIA JOHNSON ASKED IF ANY WERE DONE AT THE TIME YOU WERE CONSIDERING EMPLOYMENT WITH THE CITY. MR. PEABODY RESPONDED, "YES", BUT HE HAD NO IDEA AT THE TIME WHETHER OR NOT HIS APPLICATION FOR EMPLOYMENT WITH THE CITY WOULD BECOME A REALITY. TWO OF THE FIVE PROJECTS ARE NOW IN THEIR FINAL STAGES. GEORGIA JOHNSON ASKED IF PERMITS HAVE BEEN GRANTED FOR THESE PROJECTS WHILE HE HAS BEEN A CITY EMPLOYEE. MR. PEABODY RESPONDED "NO", ALL HAD PERMITS ISSUED BEFORETHATTIME. THE FIFTH PROJECT, 1 247 CENTER STREET, IS THE ONLY ONE THAT DOES NOT HAVE A PERMIT ISSUED BUT HE HAS NO IDEA WHETHER OR NOT HE WILL RECEIVE THE BID FOR THIS PROJECT. GEORGIA JOHNSON ASKED WAS BIDDING DONE IN A COMPETITIVE MANNER. MR. PEABODY RESPONDED "YES". DAVID KIMBALL ASKED WHEN A PERMIT IS AWARDED, IS THERE A SUBSEQUENT INSPECTION OF THE PROPERTY? MR. PEABODY RESPONDED "YES" BUT HE WOULD NOT BE THE PERSON DOING THE INSPECTION. DAVID KIMBALL ASKED IF THERE IS AN AGREEMENT BETWEEN MR. PEABODY AND THE CITY THAT HE WOULD NOT INSPECT JOBS THAT HE HIMSELF HAD DONE. MR. PEABODY RESPONDED "YES". BOB HOLE STATED THE WORK AT 1 247 CENTER STREET COULD BE A POSSIBLE CONFLICT - SOME MIGHT ASK WHY SHOULD HE GET THE BID WHEN HE IS A CITY EMPLOYEE? DON KUIPER ASKED HOW, WHEN MR. PEABODY IS A PRIVATE CONTRACTOR, HE CAN BE OBJECTIVE AND FAIR WHEN INSPECTING THE WORK OF HIS COMPETITORS? MR. PEABODY RESPONDED THAT HE GOES BY THE BOOK. HE MUST FOLLOW THE GUIDELINES IN THE BOOK. HE CANNOT GO OUT AND PICK ON ANOTHER CONTRACTOR JUST BECAUSE HE DOESN'T LIKE HIM. DAVID KIMBALL ASKED WHAT KINDS OF THINGS DO YOU LOOK FOR IN AN INSPECTION? MR. PEABODY RESPONDED ITEMS SUCH AS CLEARANCES,THICKNESSES, GAUGES, TOLERANCES, CODE 3 MINUTES: BOARD OF ETH/CS MEETING APR/L /4, /998 PG. 4 HAZARDS AND VIOLATIONS. FOR EXAMPLE, WHETHER OR NOT THE CLEARANCE TO A FURNACE VENT MEETS CODE REQUIREMENTS. DAVID KIMBALL ASKED, FOR AN EXAMPLE, WHAT WAS WRONG IN THE LAST INSPECTION YOU DID IN WHICH YOU CITED A VIOLATION. MR. PEABODY RESPONDED A FURNACE VENT WAS NOT PROPERLY ALIGNED. GARY BITTINGER STATED THAT MR. PEABODY MUST GO THROUGH HIM WITH ANY CORRECTIONS OR VIOLATIONS THAT ARE CITED IN AN INSPECTION OR ANY OTHER PROBLEMS. DONALD KUIPER ASKED IF ANYONE HAS FELT THAT IT WAS IMPROPER FOR MR. PEABODY TO BE A CONTRACTOR AND WORK PART TIME FOR THE CITY? JACK NELSON RESPONDED "NO". HE FEELS IT WOULD BE EXTREMELY DIFFICULT FOR HIM TO HIRE PART TIME EMPLOYEES FOR INSPECTIONS WHO WERE NOT IN THE RELATED FIELD. REGARDING THE FIVE PROJECTS THAT ARE IN PROCESS, MR. PEABODY WONT BE COMPETING WHEN THESE ARE DONE FOR NEW WORK BUT WOULD ONLY BE PROVIDING SERVICE FOR THEM IF THE BOARD APPROVES ALLOWING HIM TO DO SERVICE. HE WOULD ONLY BE DOING SERVICE WORK THAT DOES NOT REQUIRE A PERMIT. DONALD KUIPER ASKED FOR AN EXAMPLE OF SERVICE WORK. MR. PEABODY RESPONDED A SERVICE CALL WOULD BE ONE WHERE SOMEONE'S FURNACE DOESN'T WORK, FOR EXAMPLE. GEORGIA JOHNSON ASKED IF MR. PEABODY WAS INCORPORATED. MR. PEABODY RESPONDED "NO". GEORGIA JOHNSON ASKED WHEN MR. PEABODY WOULD GET INVOLVED WITH THE 1 247 CENTER STREET PROJECT. IS IT POSSIBLE, IT THE BOARD DECIDES THAT YOU SHOULD NOT BE ALLOWED TO DO THIS PROJECT, TO STOP THE PROJECT? MR. PEABODY RESPONDED THAT HE BEGAN WORK ON THIS IN OCTOBER OF 1 997. THIS PROJECT IS STILL IN PLAN REVIEW AT THE PRESENT TIME. THE PROJECT COULD BE STOPPED AS FAR AS HIS PARTICIPATION WITH NO EFFECT. CAL ANDERSON ASKED HOW MANY OF THE FIVE PROJECTS ARE UNDER CONTRACT TO MR. PEABODY AT THE PRESENT TIME. MR. PEABODY RESPONDED ALL BUT THE PROPERTY AT 1 247 CENTER STREET. CAL ANDERSON ASKED IF THE CONTRACTS FOR THESE PROPERTIES WERE SIGNED BEFORE MR. PEABODY BEGAN EMPLOYMENT WITH THE CITY. 4 MINUTES: BOARD OF ETHICS MEETING APRIL 14, 1998 PG. 5 MR. PEABODY RESPONDED "YES" FOR ALL EXCEPT CENTER STREET. GEORGIA JOHNSON ASKED HOW LONG WAS IT FROM THE TIME MR. PEABODY APPLIED FOR CITY EMPLOYMENT UNTIL HE GOT THE JOB. MR. PEABODY RESPONDED THAT THE PROJECT AT I 1 1 5 N. WASHINGTON WAS GIVEN TO HIM TWO DAYS BEFORE HE STARTED WITH THE CITY. GEORGIA JOHNSON ASKED IF MR. PEABODY OWNS ANY OF THESE FIVE PROPERTIES. MR. PEABODY RESPONDED "NO". BOB HOLE STATED THAT HE HAS HAD FURNACE PROBLEMS SO HE KNOWS THE NEED FOR SERVICE WORK. HE ASKED MR. PEABODY IF SOMEONE WHO LIVES IN THE CITY CALLED, COULD MR. PEABODY COME TO HIS HOUSE, MAKE A DETERMINATION THAT THE FURNACE NEEDS A NEW THERMOSTAT, AND THEN SAY TO THE INDIVIDUAL "YOU KNOW, THIS WILL NOT PASS CITY INSPECTION BUT I CAN FIX THAT FOR YOU". HOW CAN MR. PEABODY ASSURE THE BOARD THAT THIS TYPE OF SITUATION WOULD NOT OCCUR? CAL ANDERSON RESPONDED THAT YOU HAVE TO HAVE A PERMIT TO PUT IN A NEW PIECE OF EQUIPMENT, DON'T YOU? MR. PEABODY RESPONDED "YES", SUCH WORK WOULD REQUIRE A PERMIT SO HE WOULD NOT BE ALLOWED TO DO IT. CAL ANDERSON STATED THAT MR. PEABODY SAYS HE HAS 76 INSTALLATIONS THAT HE WOULD LIKE TO CONTINUE TO SERVICE. WHAT WOULD HAPPEN IF ONE OF THESE INSTALLATIONS HAD TO REPLACE SOMETHING THAT REQUIRED A PERMIT? WOULD SOMEONE ELSE HAVE TO DO THE INSPECTION? MR. PEABODY RESPONDED "YES", THAT IS CURRENTLYTHE SITUATION AND WOULD CONTINUE. IF ONE OF THESE INSTALLATIONS FAILS AND HAS TO BE REPLACED WHICH WOULD REQUIRE A PERMIT, HE CANNOT DO THIS IF THEY ARE IN THE CITY OF LANSING. CAL ANDERSON ASKED IF MR. PEABODY WAS ASKING THE BOARD TO ALLOW HIM TO CONTINUE TO SERVICE THESE 76 INSTALLATION AND THE 4-5 CDBG PROJECTS? COULD ANY OF THESE INCLUDE REPLACEMENT EQUIPMENT? MR. PEABODY RESPONDED THAT HE IS ASKING TO BE ALLOWED TO DO SERVICE WORK ONLY; SOMEONE ELSE WOULD HAVE TO HANDLE REPLACEMENTS. GEORGIA JOHNSON IF AN INSTALLATION WOULD BE A NEW FURNACE, A NEW AIR CONDITIONER? MR. PEABODY RESPONDED THAT IS CORRECT. DAVID KIMBALL STATED THAT IT IS HIS UNDERSTANDING THAT THERE IS NOT A CONFLICT OF INTEREST BECAUSE MR. PEABODY IS PROHIBITED FROM ISSUING A PERMIT FOR WORK HE IS GOING TO DO; IT 5 MINUTES: BOARD OF ETHICS MEETING APRIL 14, 1998 PG. 6 APPEARS TO HIM TO BE ONLY THE PERCEPTION OF A CONFLICT OF INTEREST. DAVID LEHMANN ASKED MR. PEABODY IF HE HAD ANY POWER TO SHUT DOWN A FURNACE? HOW WOULD YOU RESOLVE IT IF YOU FOUND SOMETHING WASN'T RIGHT WITH A FURNACE? MR. PEABODY RESPONDED THAT IT IS A FINE LINE AS HE CANT DO REPAIR WORK AND INSPECTION WORK AT THE SAME TIME. HE WOULD ONLY BE ABLE TO ASSIST IF IT DID NOT REQUIRE A PERMIT. CAL ANDERSON ASKED HOW MANY HOURS MR. PEACOCK WORKS FOR THE CITY AT THE PRESENT TIME. MR. PEABODY RESPONDED 20 HOURS PER WEEK. THIS IS THE REASON HE NEEDS TO KEEP HIS OUTSIDE CONTRACTORS BUSINESS AS HE NEEDS THE ADDITIONAL INCOME. CAL ANDERSON STATED THAT HE IS NOT COMFORTABLE WITH THE PROJECTAT 1 247 CENTER STREET. AS THIS PROJECT IS NOT UNDER CONTRACT WITH MR. PEABODY AT THE PRESENT TIME, HE WOULD BE SIGNING A CONTRACT WITH THEM WHILE A CITY EMPLOYEE AND MR. ANDERSON FINDS THIS TO BE A MUCH DIFFERENT SITUATION BECAUSE MR. PEABODY WASN'T A CITY EMPLOYEE AT THE TIME OF SIGNING CONTRACTS FOR THE OTHER FOUR PROJECTS. JACK NELSON STATED THAT, AS A MANAGER, THEY HAVE A DILEMMA IN THEIR DEPARTMENT. THEY HAVE FUNDING FOR ONLY A PART TIME POSITION AND IT IS EXTREMELY DIFFICULT TO HIRE SOMEONE PART TIME WHO IS NOT WORKING IN THE SAME FIELD. THEY HOPE TO BE ABLE TO MOVE MR. PEABODY'S POSITION TO FULL TIME BUT THE DILEMMA IS THAT PEOPLE ARE STILL WORKING IN THE FIELD AND THIS IS THE ONLY WAY THEY CAN GET QUALIFIED PART TIME EMPLOYEES. DON KUIPER STATED THAT HE IS WILLING TO SUPPORT THE PROPOSAL OF THE BUILDING SAFETY MANAGER BECAUSE OF THE NEED OF THE CITY TO FILL THE JOB BECAUSE THE CITY NEEDS TO GET THE WORK DONE. JACK NELSON STATED HE IS VERY CONCERNED ABOUT HOW PEOPLE VIEW HIS DEPARTMENT AND HE REQUIRES HIS EMPLOYEES TO FILE DISCLOSURES SO THEY CAN GET OBTAIN A DECISION FROM THE BOARD OF ETHICS IN MATTERS SUCH AS THIS. GEORGIA JOHNSON ASKED MR. PEABODY IF HE HAS HIS OWN COMPANY AND DOESN'T HAVE REGULAR HOURS WITH THE CITY, DOES HE GIVE HIGHER PRIORITY TO JOBS IN HIS PRIVATE BUSINESS AND JUST FIT IN THE CITY WORK AS HE CAN? MR. PEABODY RESPONDED THAT HIS PRIVATE CUSTOMERS UNDERSTAND THAT HE WILL GET TO THEM AS SOON AS HE CAN; IF THEY CALL DURING THE DAY HE IS WORKING FOR THE CITY, HE COVERS THEM IN THE EVENING. JACK NELSON RESPONDED THAT MR. PEABODY WORKS A SET SCHEDULE, HE CAN'T DO OUTSIDE WORK FOR HIS PRIVATE BUSINESS WITHIN THE TIME FRAME OF THE SET SCHEDULE. DAVID KIMBALL ASKED MR. PEABODY TO RESPOND AS TO WHY HE STILL WANTS TO DO THE PROJECT AT 1247 CENTER STREET. 6 M/N(ITES: BOARD OF ETHICS MEE7NG APR/L /4, /998 PG. 7 MR. PEABODY RESPONDED THAT THE JOB WAS SOMEWHAT ON THE DRAWING BOARD BEFORE HE WAS HIRED BY THE CITY. DAVID KIMBALL ASKED WHY SHOULD AN EXCEPTION BE GRANTED FOR THIS? MR. PEABODY RESPONDED BECAUSE THE PROJECT WAS IN THE WORKS AT THE TIME HE WAS HIRED. GARY BITTINGER RESPONDED THAT THIS PROJECT MIGHT HAVE BEEN ALREADY STARTED BEFORE MR. PEABODY'S EMPLOYMENT WITH THE CITY EXCEPT IT HAS BEEN HELP UP IN PLANNING. DAVID KIMBALL STATED HIS SENSE IS THAT WE MAY HAVE TO EXEMPT THIS PROJECT AS ONE THAT JUST WON'T WORK. GEORGIA JOHNSON STATED THAT SHE WOULD GO ALONG ON EVERYTHING EXCEPT THE PROJECT AT 1 247 CENTER STREET. DON KUIPER ASKED WHAT AFFECT WOULD IT HAVE ON THE OWNER OF THE PROPERTY IF THIS PROJECT WAS EXEMPTED. MR. PEABODY RESPONDED NONE WHATSOEVER. CAL ANDERSON STATED THAT HE APPRECIATES THE CLARITY AND HONESTY OF MR. PEABODY'S STATEMENTS TO THE BOARD. IT HELPS THE BOARD IN MAKING THEIR DETERMINATION. BOB NOLE ASKED WHAT IT MEANS WHEN A PROJECT IS IN PLANNING REVIEW. GARY BITTINGER RESPONDED THAT IT GOES THROUGH BUILDING BLUEPRINT TO CHECK FOR CODE ABNORMALITIES, ETC. PRIOR TO ANY PERMITS BEING ISSUED. USUALLY BIDS ARE NOT LET UNTIL THE PROJECT PLAN REVIEW IS COMPLETED. BOB HOLE ASKED IF THE OWNER WHO WANTS TO DO THIS PROJECT HAS SELECTED MR. PEABODY? MR. PEABODY RESPONDED "NO", HE HAS NO IDEA HOW MANY CONTRACTORS ARE INVOLVED OR IF HE IS THE ONLY ONE THAT WILL BE BIDDING ON THIS PROJECT. THE SUCCESSFUL BIDDER HAS NOT BEEN SELECTED AS YET. BOB NOLE ASKED WHAT POSSIBLE INFORMATION COULD MR. PEABODY HAVE ABOUT THIS PROJECT THAT WOULD NOT BE AVAILABLE TO OTHER POTENTIAL BIDDERS. MR. PEABODY RESPONDED "NONE". BOB HOLE ASKED IF MR. PEABODY HAS SUBMITTED HIS INTEREST IN THIS PROJECT BEFORE HE WAS HIRED BY THE CITY. MR. PEABODY RESPONDED "YES". 7 MINUTES: BOARD OF ETHICS MEETING APR/L 14, 1998 PG. 8 MOTION BY GEORGIA JOHNSON TO ALLOW MR. PEABODY TO DO SERVICE WORK WHERE CITY PERMITS ARE NOT REQUIRED AND TO COMPLETED THE PROJECTS AT 206 E. GRAND RIVER, 20 1 5 FOREST, 107 E. GRAND RIVER, AND I 1 1 5 N. WASHINGTON BUT THAT MR. PEABODY HAVE NO FURTHER INVOLVEMENT WITH THE PROJECT AT 1247 CENTER STREET. BOB HOLE STATED THAT HE WOULD NOT EXCLUDE THE PROPERTY AT 1 247 CENTER STREET. CAL ANDERSON STATED THAT HIS REASONING IS THAT THE OTHER FOUR PROPERTIES WERE UNDER CONTRACT WITH MR. PEABODY BEFORE MR. PEABODY STARTED WORKING FOR THE CITY. 1 247 CENTER STREET WAS NOT. IF THE BOARD GIVES HIM PERMISSION TO DO 1 247 CENTER STREET, IT WOULD BE THE SAME AS ALLOWING HIM TO SIGN OTHER CONTRACTS THAT ARE TOTALLY NEW. BOB HOLE RESPONDED THAT HE DOESN'T SEE WHY MR. PEABODY SHOULD NOT HAVE THE OPPORTUNITY TO MAINTAIN SOMETHING THAT HE HAD ALREADY STARTED. DAVID KIMBALL STATED THAT HE FEELS THERE IS NO TRUE CONFLICT OF INTEREST HERE AS MR. PEABODY WOULD NOT BE INSPECTING THIS PROPERTY. THE PERCEPTION OF A CONFLICT OF INTEREST IS GREATER BUT HE FEELS IT IS ONLY A PERCEPTION AND NOT ACTUAL. HE IS INCLINED TO ALLOW THE INCLUSION OF 1 247 CENTER STREET. ROLL CALL VOTE ON GEORGIA JOHNSON'S MOTION: YEAS: ANDERSON AND JOHNSON NAYS: KUIPER, KIMBALL, LEHMANN AND NOLE MOTION FAILS MOTION BY DAVID LEHMANN TO ALLOW MR. PEABODY TO DO SERVICE WORK WHERE CITY PERMITS ARE NOT REQUIRED AND TO COMPLETED THE PROJECTS AT 206 E. GRAND RIVER, 20 1 5 FOREST, 1 07 E. GRAND RIVER, I 1 1 5 N. WASHINGTON AND 1 247 CENTER STREET. CAL ANDERSON REITERATED HIS CONCERN THAT ALLOWING MR. PEABODY TO SIGN A CONTRACT FOR 1 247 CENTER STREET THIS MANY MONTHS AFTER HE BEGAN TO WORK FOR THE CITY IS A PROBLEM. GEORGIA JOHNSON ASKED MR. PEABODY HOW MUCH MONEY HE WOULD MAKE IF HE WAS CHOSEN TO DO THE CENTER STREET PROJECT. MR. PEABODY RESPONDED BETWEEN $25,000-$30,000. IT INVOLVES AIR CONDITIONING ON THE ROOFTOPS. JACK NELSON STATED THAT HE HAS ANOTHER EMPLOYEE, BRIAN SHIELDS, WHO WAS BEFORE THE BOARD LAST YEAR WHO WAS HIRED FULL TIME AND WHO SOLD HIS BUSINESS. HE GOT MARRIED LAST YEAR AND HE MARRIED THE SECRETARY OF SHIELDS & SONS. MR. NELSON ASKED WHAT SHOULD BE DONE ABOUT THIS MATTER. SHOULD MR. SHIELDS FILE A DISCLOSURE WITH THE BOARD? DON KUIPER RESPONDED "YES". 8 MINUTES: BOARD OF ETHICS MEETING APR/L /4, /998 PG. 9 ROLL CALL VOTE ON DAVID LEHMANN'S MOTION: YEAS: KUIPER, KIMBALL, LEHMANN, HOLE NAYS: ANDERSON AND JOHNSON MOTION PASSES 4/2 NEW BUSINESS SECRETARY SLADE WAS DIRECTED TO WRITE TO OWEN DIETRICK AND ASK HIM TO ATTEND THE MAY MEETING OF THE BOARD TO ANSWER QUESTIONS REGARDING HIS AFFIDAVIT OF DISCLOSURE. THE FOLLOWING ACTIONS WERE TAKEN ON STATEMENTS OF FINANCIAL INTEREST RECEIVED: SANDY ALLEN - MOTION BY DAVID KIMBALL TO RECEIVE AND PLACE OF FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY SANDY ALLEN NOTING THAT HER PARTICIPATION IN COUNCIL ACTIONS REGARDING THE RIVERWALK THEATRE MUST COMPLY WITH THE GUIDELINES IN SECTION 290.05 OF THE ETHICS ORDINANCE. THE CITY CLERK IS DIRECTED TO SEND A LETTER TO MS. ALLEN INFORMING HER OF THIS DECISION AND OF THE CONTENT OF SECTION 290.05. VOTE: 6/0 TONY BENAVIDES MOTION BY CAL ANDERSON TO RECEIVE AND PLACE OF FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY TONY BENAVIDES NOTING THAT HIS PARTICIPATION IN COUNCIL ACTIONS REGARDING CRISTO REY COMMUNITY CENTER MUST COMPLY WITH THE GUIDELINES IN SECTION 290.05 OF THE ETHICS ORDINANCE. THE CITY CLERK IS DIRECTED TO SEND A LETTER TO MR. BENAVIDES INFORMING HIM OF THIS DECISION AND OF THE CONTENT OF SECTION 290.05. VOTE: 6/0 KELLIE WILSON -MOTION BY GEORGIA JOHNSON TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY KELLIE WILSON. VOTE: 6/0 DAVE TIJERINA- MOTION BY BOB HOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY DAVE TIJERINA. VOTE: 6/0 LIZA OLSON - MOTION BY BOB HOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY LIZA ESTLUND OLSON. VOTE: 6/0 ROBERT JOHNSON MOTION BY GEORGIA JOHNSON TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY ROBERT JOHNSON. VOTE: 6/0 JOE GRAVES - MOTION BY GEORGIA JOHNSON TO TABLE THE STATEMENT OF FINANCIAL INTEREST FILED BY JOE GRAVES UNTIL THE MAY BOARD MEETING AS SOME PAGES OF THE STATEMENT ARE MISSING. VOTE: 6/0 JILL RHODE - MOTION BY BOB HOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL 9 MINUTES: BOARD OF ETHICS MEETING APR/L /4, /998 PG. /O INTEREST FILED BY JILL RHODE. VOTE: 6/0 TABLED ITEM JOE GRAVES' STATEMENT OF FINANCIAL INTEREST TABLED UNTIL MAY MEETING BOARD ROUND TABLE ADJOURNMENT MEETING ADJOURNED AT 6:50 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY f� DATE APPROVED: r q" 10 M/NOTES: BOARD OF ETHICS MEETING MAY 12, 1998 PG. I MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING MAY 12, 1998 - S:30 P.M. TENTH FLOOR CONFERENCE ROOM-LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:32 .P.M: IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LAMBING, MICHIGAN, BOARD MEMBERS PRESENT: DR. DONALD KUIPER, CHAIRMAN ' DAVID KIMBALL, VICE CHAIR DAVID LEHMANN, PUBLIC MEMBER CALVIN ANDERSON, PHD, PUBLIC MEMBER ROBERT MOLE, ;PUBLIC MEMBER ABSENT: ELLEN SULLIVAN, PUBLIC MEMBER- EXCUSED DR. GEORGIA JOHNSON, PUBLIC MEMBER - EXCUSED A QUORUM WAS PRESENT ; OTHERS`:PRESENT. JIM SMIERTKA, CITY ATTORNEY': .. y. MARILYNN St�iDE, CITY CLERK PUBLIC COMMENT:' NoriE APPROVAL OF AGENDA. MOTION BY DAVID KIMBALL TO APPROVE THE AGENDA AS SUBMITTED. MOTION CARRIED 5/0 . .............. .. .::.::.::.::.......:..:. .::. SECRETARY-S REPORT ! .....<>::»» APPROVAL OF MINUTES OF APRIL 14, 1 996: MOTION BY DAVID LEHMANN TO APPROVE THE MINUTES AS SUBMITTED. MOTION CARRIED 5/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED AND SENT. CITY ATTORNEY'S REPORT: CITY ATTORNEY SMIERTKA REPORTED THAT THERE IS STILL A CIRCUIT COURT ACTION PENDING IN FRONT OF JUDGE GLAZER REGARDING TERRY MCKANE; HE DOESN'T KNOW WHEN THIS WILL COME UP, HE INFORMED THE BOARD THAT FROM TIME TO TIME HE ISSUES SOME SHORT ETHICS OPINIONS, SUCH 1 MINUTES: BOARD OF ETHICS MEETING MAY 12, 1998 PG. 2 AS THE ONE HE DID FOR COUNCILMEMBER ADADO IN REGARDS TO WHETHER ON NOT HE COULD VOTE ON A LIQUOR LICENSE TRANSFER. COUNCILMEMBER ADADO IS THE CEO OF A BEVERAGE RETAILERS ASSOCIATION WHICH IS A VOLUNTARY ASSOCIATION. HE (CITY ATTORNEY) FELT THAT ANY CONFLICT WAS OF A MINIMUS NATURE SINCE THE BUSINESS REQUESTING THE LIQUOR LICENSE TRANSFER WAS NOT A MEMBER OF THIS ASSOCIATION. CHAIR'S REPORT: NONE OLD BUSINESS SINCE MR, DIETRICK WAS NOT PRESENT, HIS AFFIDAVIT OF DISCLOSURE WAS TABLED FOR THE JUNE MEETING. NEW BUSINESS THE FOLLOWING ACTIONS WERE TAKEN ON STATEMENTS OF FINANCIAL INTEREST RECEIVED: JOSEPH GRAVES - MOTION BY DAVID KIMBALL TO TABLE THIS UNTIL IT CAN BE DETERMINED WHETHER OR NOT MR. GRAVES HAS A CURRENT RELATIONSHIP WITH THE BLACK CHILD & FAMILY INSTITUTE FOR WHICH HE RECEIVES REMUNERATION. ELLEN BEAL - MOTION BY BOB HOLE TO RECEIVE AND PLACE ON FILE ELLEN BEAL'S STATEMENT OF FINANCIAL INTEREST. VOTE: 5/0 MOAN BAUER - MOTION BY BOB HOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY JOAN BAUER, VOTE: 5/0 LARRY MEYER - MOTION BY BOB NOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY LARRY MEYER. VOTE: 5/0 MICHAEL MURPHY - MOTION BY CAL ANDERSON TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY MICHAEL MURPHY. VOTE: 5/0 JOE DANDY - MOTION BY BOB NOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY JOE DANDY. VOTE: 5/0 ERIC REICKEL - MOTION BY BOB NOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY ERIC REICKEL. VOTE: 5/0 LOU ADADO - MOTION BY DAVID LEHMANN TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY LOU ADADO. VOTE: 5/0 MICHAEL NAVABI- MOTION BY BOB HOLE TO RECEIVE & PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST FILED BY MICHAEL NAVABI. VOTE: 5/O 2 MINUTES; BOARD OF ETHICS MEETING MAY /2, /998 PG. 3 THE FOLLOWING ACTION WAS TAKEN REGARDING G. BRIAN SHIELDS AFFIDAVIT OF DISCLOSURE: MOTION BY DAVID KIMBALL TO RECEIVE AND PLACE ON FILE THE AFFIDAVIT OF DISCLOSURE FILED BY G. BRIAN SHIELDS WITH NO FURTHER BOARD ACTION CONTEMPLATED. VOTE: 410 (CAL ANDERSON DID NOT PARTICIPATE IN THIS VOTE) BOARD ROUND TABLE CHAIRPERSON KUIPER REMINDED MEMBERS PRESENT THAT A NEW CHAIRPERSON AND VICE CHAIRPERSON NEEDS TO BE ELECTED IN JULY. ADJOURNMENT MEETING ADJOURNED AT 6:30 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: 3 MINUTES: BOARD OF ETHICS MEETING JuniE 9, /998 PG. I LANSIIIG CITY CLERKK MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING JUNE 9. 1996 - 5:30 P.M. TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT S-132 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD KUJPER, CHAIRMAN DAVID LEHMANN, PUBLIC MEMBER CALVIN ANDERSON, PHD, PUBLIC MEMBER ROBERT NOLE, PUBLIC MEMBER' ELLEN SULLIVAN, PUBLIC MEMBER DR. ,GEORGIA JOHNSON, PUBLIC MEMBER ..... ABSENT:' DAVID`KIMBALL, VICE CHAIRMAN' A QUORUM WAS PRESENT OTHERS PRESENT: WENDEL HALL, DEPUTY CITY ATTORNEY MARILYNN SLADE, CITY CLERK.i:::. PUBLIC COMMENT: .. NONE APPROVAL OF AGENDA: MOTION BY DAVID LEHMANN TO APPROVE THE AGENDA AS AMENDED TO INCLUDE THREE AFFIDAVITS OF DISCLOSURE BROUGHT AS LATE ITEMS (FROM ROBERT ANTEKEIER, DOUG RUBLEY AND JOHN BRODIE) AND HANDLE THEM UNDER "NEW BUSINESS" AND TO ADD ALSO UNDER "NEW BUSINESS" A REPORT ON THE PRESENTATION OF THE ETHICS VIDEO TO CITY COUNCIL. MOTION CARRIED 6/0 SECRETARY'S REPORT: APPROVAL OF MINUTES OF MAY 1 2, 1 996: MOTION BY BOB NOLE TO APPROVE THE MINUTES AS AMENDED TO INCLUDE THAT THE BOARD COMPLIMENTED THE CLERK ON THE EXCELLENT MINUTES. MOTION CARRIED 4/0; JOHNSON AND SULLIVAN ABSTAINING AS THEY WERE NOT PRESENT AT THE MAY 1 2, 1996 MEETING, CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED. CITY ATTORNEY'S REPORT: 1 MINUTES: BOARD OF ETH/CS MEETING JuNE 9, 1998 PG. 2 NONE CHAIR'S REPORT: CHAIRPERSON KUIPER ASKED FOR AN UPDATE ON THE VACANCIES ON THE BOARD. SECRETARY SLADE REPORTED THAT SHE HAS HAD DISCUSSIONS WITH THE MAYORS OFFICE ABOUT THE EXPIRATION OF THE CHAIRS TERM ON 6/30/96 AND ON THE VACANCY THAT WAS CREATED BY THE RESIGNATION OF SANDRA BITONTI-STEWART. THE MAYORS OFFICE 15 EXPECTING TO FILL THESE TWO VACANCIES IN THE NEAR FUTURE. ELLEN SULLIVAN ALSO REPORTED THAT HER REAPPOINTMENT TO THE BOARD HAS THE WRONG EXPIRATION DATE; IT SHOULD BE 6/30/2000 AND NOT 6/30/200 1 . DAVID LEHMANN'S TERM EXPIRES ON 6/30/98 AND HIS APPOINTMENT WAS MADE BY THE WARD 3 COUNCILMEMBER. SECRETARY SLADE WILL GET WITH COUNCIL PRESIDENT BENAVIDES TO MAKE SURE HE KNOWS OF THIS VACANCY. OLD BUSINESS MOTION BY BOB HOLE THAT THE SECRETARY SEND A LETTER TO OWEN DIETRICK APOLOGIZING FOR THE DELAY IN GETTING HIS AFFIDAVIT OF DISCLOSURE ON THE BOARD AGENDA WHEN IT WAS ORIGINALLY RECEIVED, STATING THAT THE BOARD WOULD LIKE TO SETTLE THIS ISSUE BY THE JULY BOARD MEETING, AND ASKING THAT HE CONTACT THE SECRETARY IS HE IS UNABLE TO ATTEND THE JULY MEETING TO SCHEDULE ANOTHER DATE. THIS LETTER SHOULD ALSO STATE THAT THE BOARD FEELS THEY CANNOT MAKE A DECISION REGARDING HIS AFFIDAVIT WITHOUT RECEIVING ADDITIONAL INPUT. MOTION CARRIED 6/0 SECRETARY SLADE REPORTED THAT SHE HAD A DISCUSSION WITH JOSEPH GRAVES, JR., CHIEF OF STAFF TO THE MAYOR, REGARDING HIS STATEMENT OF FINANCIAL INTEREST. SHE REPORTED THAT HE INFORMED HER HE HAD NEVER RECEIVED ANY REMUNERATION FOR HIS SERVICE ON THE BOARD OF THE BLACK CHILD AND FAMILY INSTITUTE. HE CURRENTLY STILL ASSISTS THIS AGENCY FROM TIME TO TIME BUT RECEIVES NO REMUNERATION. MOTION BY DAVID LEHMANN TO RECEIVE AND PLACE ON FILE THE STATEMENT OF FINANCIAL INTEREST SUBMITTED BY JOSEPH GRAVES, JR. BASED UPON THE EXPLANATION OFFERED BY THE SECRETARY. MOTION CARRIED 6/0 NEW BUSINESS ELLEN SULLIVAN REPORTED THAT SHE HAS BEEN WORKING ON THE PRESENTATION OF THE ETHICS VIDEO TO THE CITY COUNCIL. SHE REPORTED THAT THIS CAN BE DONE AS PART OF A SPECIAL CEREMONY WHICH TAKES PLACES AT THE START OF EACH MONDAY NIGHT CITY COUNCIL MEETING. SHARON BOMMARITO AND PATRICK PATTERSON OF THE PERSONNEL DEPARTMENT COULD BE THERE TO PROVIDE AN UPDATE ON THE TRAINING THAT HAS BEEN COMPLETED TO DATE AND TO RECEIVE RECOGNITION FOR THEIR EFFORTS IN CREATING THE VIDEO AND IN TRAINING. THIS SPECIAL CEREMONY WOULD BE APPROXIMATELY 1 0-20 MINUTES IN LENGTH AND WOULD INCLUDE A SHOWING OF THE VIDEO OVER THE CITY GOVERNMENT CABLE CHANNEL. THIS WOULD SERVE AS THE TRAINING OF THE COUNCILMEMBERS ON THE NEW ETHICS ORDINANCE SO THEY COULD SIGN THEIR ACKNOWLEDGMENTS AT THIS CEREMONY. SHE ASKED IF THERE WERE ANY MONDAY EVENINGS IN JULY 2 MINUTES: BOARD OF ETHICS MEETING JuNE 9, 1996 PG. 3 THAT WERE A PROBLEM WITH BOARD MEMBERS AS IT IS DESIRABLE THAT AS MANY MEMBERS BE PRESENT AT THIS CEREMONY AS POSSIBLE. ALL MEMBERS PRESENT DID NOT HAVE A PROBLEM WITH ANY JULY MONDAYS AND STATED THEY WOULD TRY TO ATTEND WHENEVER THE CEREMONY IS SCHEDULED. THE FOLLOWING ACTION WAS TAKEN REGARDING THE AFFIDAVITS OF DISCLOSURE FILED BY DOUG RUBLEY, ROBERT ANTEKEIER, AND JOHN BRODIE: MOTION BY BOB NOLE TO RECEIVE AND PLACE ON FILE THE AFFIDAVITS OF DISCLOSURE FILED BY DOUG RUBLEY, ROBERT ANTEKEIER, AND JOHN BRODIE WITH NO FURTHER BOARD ACTION CONTEMPLATED. VOTE: 6/0 BOARD ROUND TABLE CHAIRPERSON KUIPER REMINDED MEMBERS PRESENT THAT A NEW CHAIRPERSON AND VICE CHAIRPERSON NEEDS TO BE ELECTED AT THE JULY 1 4, 1996, MEETING. ADJOURNMENT MEETING ADJOURNED AT 6:30 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: .-) C�l S C� 8// 3 / -+•� MINUTES: BOARD OF ETHICS MEETING JuLr /4, /998 PG. / CDC'( I i, All 1t 40 LANSING CITY CLERIC MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING JULY 14. 1999 - 5:30 P.M. TENTH FLOOR CONFERENCE?ROOM..LANSING CITY HALL ............................................ ........ .............................. . ........... ...... .. .................... THE MEETING WAS CALLED TO ORDER AT 5:33 P.M; IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHI.GAN BOARD MEMBERS PRESENT; DR. DONALD KUIPER, CHAIRMAN ............................. DAVID KIMBALL, VICE CHAIRMAN ......... ........................ '`'' DAVID LEHMANN, 'PUBLIC MEMBER CALVIN ANDERSON,"PHD, PUBLIC MEMBER ROBERT HOLE,::PUBLIC MEMBER s; ...ELLEN SULLIVAN, PUBLIC MEMBER (ARRIVED AT 5:50 P.M.) DR. GEORGIA JOHNSON, PUBLIC MEMBER .::...::.......:... .. ........ ..............: ....... .........:....... .:... .. . ABSEN'f'sI:;.<::::.>:.;::>::.>:::::::;:... A UORUM WAS PRESENT ..... :.;:.. . OTHlZUtWP*AESEN*:..... ........................WENDEL HALL] DEPUTY CITY ATTORNEY .. .... . """' `°' MARILYNN SLADE, 'CITY CLERK " `' .... >;:.........;y:......... MARISA MENDEZ, 507 W. FREDERICK AVE;; . ..............: PUBLIC COMMENT: ,............ .:.. . NONE ::».. APPROVAL OF`AGENDA: MOTION BY DAVID KIMBALL TO APPROVE THE AGENDA r WITH THE CORRECTION THAT THE AFFIDAVIT OF DISCLOSURE RECEIVED WAS FROM PETER PRATT, NOT PAUL PRATT 6/ .:. ; ::;:;: :0 >' ` `' . : < » >` >> ..........>. ... .MOTION CARRIED ....... ....... ................................ ........ ...................... ............................ ............. .............................................. ::.:.... ... .. ... SECRETARY'S REPORT:: ; `: APPROVAL OF MINUTES OF JUNE 9. '1 996: MOTION BY DAVID KIMBALL TO APPROVE THE MINUTES AS SUBMITTED FOR JUNE 9, 1998. MOTION CARRIED 6/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED AND SENT. 1 MINUTES: BOARD OF ETHICS MEETING JuLY 14, 1996 PG. 2 CITY ATTORNEY'S REPORT: DEPUTY CITY ATTORNEY HALL REPORTED THAT THE ONLY ACTIVITY THEY HAVE HAD SINCE LAST MONTH WAS THE REVIEW OF COUNCILMEMBER ALLEN'S PARTICIPATION IN THE DISCUSSION OR VOTING ON AN ITEM BEFORE THE COUNCIL WITH REGARDS TO THE PRINCIPAL SHOPPING DISTRICT ASSESSMENTS. COUNCILMEMBER ALLEN IS ON THE BOARD FOR THE RIVERWALK THEATRE. THE COUNCILMEMBERS VOTED 7/0, WITH COUNCILMEMBER ALLEN NOT VOTING, TO ALLOW HER TO PARTICIPATE IN THE DISCUSSION AND VOTE ON THIS ISSUE. CHAIR'S REPORT: CHAIRPERSON KUIPER REPORTED ON THE REAPPOINTMENT OF MEMBERS FOR THE BOARD OF ETHICS AND THE NEW ROSTER. HE ASKED THE STATUS OF THE REMAINING VACANCY ON THE BOARD, WHICH IS A MAYORAL APPOINTMENT, AND SECRETARY SLADE REPORTED THAT SHE WILL GET AN UPDATE ON PROGRESS IN FILLING THIS VACANCY BEFORE THE NEXT BOARD MEETING. OLD BUSINESS MOTION BY CHAIRPERSON KUIPER THAT THE BOARD NOTES THE WITHDRAWAL BY DETECTIVE OWEN DIETRICK OF HIS AFFIDAVIT OF DISCLOSURE AND THAT NO FURTHER BOARD DISCUSSION ON THIS ISSUE WILL BE REQUIRED. MOTION CARRIED 6/0 NEW BUSINESS MOTION BY DAVID KIMBALL TO ELECT DON KUIPER TO SERVE AS CHAIRPERSON OF THE BOARD FOR THE COMING YEAR, JULY 1 , 1996 - JUNE 30, 1999. MOTION CARRIED 6/0 MOTION BY BOB NOLE TO ELECT DAVID KIMBALL TO SERVE AS VICE CHAIRPERSON OF THE BOARD FOR THE COMING YEAR, JULY 1 , 1996 - JUNE 30, 1999. MOTION CARRIED 6/0 THE FOLLOWING ACTION WAS TAKEN REGARDING THE AFFIDAVIT OF DISCLOSURE FILED BY PETER PRATT: MOTION BY DAVID KIMBALL TO RECEIVE AND PLACE ON FILE THE AFFIDAVIT OF DISCLOSURE FILED BY PETER PRATT WITH NO FURTHER BOARD ACTION CONTEMPLATED. VOTE: 6/0 BOARD ROUND TABLE ELLEN SULLIVAN REPORTED THAT, DUE TO SCHEDULING PROBLEMS, THE PRESENTATION OF THE ETHICS VIDEO AND TRAINING TO THE CITY COUNCIL WILL PROBABLY NOT TAKE PLACE UNTIL SEPTEMBER. 2 MINUTES: BOARD OF ETHICS MEETING ✓uLY 14, 199E PG. .3 THE AUGUST BOARD MEETING WILL BE CANCELED. SHOULD THE NEED ARISE TO HAVE A MEETING IN AUGUST, IT WILL BE CALLED BY CHAIRPERSON KUIPER. ADJOURNMENT MEETING ADJOURNED AT 5:55 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: 1 O/1 3/96 3 NOTICE The regularly scheduled meeting of the Ethics Board for August (August 1 1th) has been canceled . Donald Kuiper Board Chairperson City of Lansing Board of Ethics The regular meeting of the Board of Ethics scheduled for Tuesday, Sept. 8, 1998 has been canceled . Donald Kuiper, M . D . Chairperson MINUTES; BOARD OF ETHICS ETING OCT. 13, 1998 PG. I rr-•,, u MINUTES ✓ (,;l LANSING CITY BOARD OF ETHICS ��C,rrl REGULAR MEETING OCTOBER 13, 1998 - S:30 P.M. TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:35 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD. KUIPE.R, CHAIRMAN CALVIN ANDERSON, PHD, PUBLIC MEMBER ROBERT NOLE, PUBLIC MEMBER ... ELLEN'SULLIVAN, PUBLIC'MEMBER 1AMES WALLINE, PUBLIC MEMBER ABSENT DAVID KIMBALL, VICE CHAIRMAN (EXCUSED) DAVID LEHMANN, PUBLIC MEMBER (EXCUSED) DR. GEORGIA JOHNSON, PUBLIC MEMBER (EXCUSED).:;. A QUORUM'WAS PRESENT OTHERS PRESENT: WENDEL HALL, DEPUTY CITY ATTORNEY MARILYNN SLADE, CITY CLERK PUBLIC`'COMMENT NONE . APPROVAL OF AGENDA: MOTION BY ROBERT NOLE TO APPROVE THE AGENDA AS AMENDED TO INCLUDE UNDER "OLD;BUSINESS" A DISCUSSION OF THE PRESENTATION OF THE ETHICS VIDEO AND TRAINING TO THE CITY COUNCIL. MOTION CARRIED 5/0 .. : '`' ' ..;:.:::... SECRETARY'S REPORT APPROVAL OF MINUTES OF JuLY 1 4,_1 996' MOTION BY CALVIN ANDERSON TO APPROVE THE MINUTES FOR JULY 14, ' 1996 WITH'THE CORRECTIONS THAT ON PAGE 2 OF THE CHAIRS REPORT _...................... _..................... _.............._...... ......................_ THE WORD "PROCESS` BE REPLACED WITH "PROGRESS" AND IN THE AFFIDAVIT OF DISCLOSURE _.................... ................... .................. ............... ............. SECTION THE WORD AFFIDAVITS° B.E CHANGED TO "AFFIDAVIT". ..... .......... ....... MOTION CARRIED 5/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED AND SENT. CITY ATTORNEY'S REPORT: DEPUTY CITY ATTORNEY HALL REPORTED THAT THERE HAS BEEN NO ACTIVITY RELATING TO THE 1 MINUTES: BOARD OF ETHICS MEETING OCT. 13, 1998 PG. 2 BOARD OF ETHICS SINCE THE LAST BOARD MEETING. IT APPEARS THAT THE TRAINING OF CITY OFFICERS AND EMPLOYEES HAS RESULTED IN INCREASED AWARENESS OF THE REQUIREMENTS OF THE ETHICS ORDINANCE. CHAIR'S REPORT: CHAIRPERSON KUIPER WELCOMED NEW MEMBER JAMES WALLINE. OLD BUSINESS ELLEN SULLIVAN REPORTED THAT SHE HAD NOT HEARD FROM THE PERSONNEL DEPARTMENT REGARDING THE PRESENTATION OF THE ETHICS VIDEO TO THE CITY COUNCIL. FOLLOWING MEMBER DISCUSSION OF THIS ISSUE, A TENTATIVE DATE OF NOVEMBER 9, 1996 WAS SET FOR THE PRESENTATION OF THE ETHICS VIDEO AND TRAINING TO THE CITY COUNCIL. THIS WOULD BE DONE AS A SPECIAL CEREMONY AT THE FIRST PART OF THE COUNCIL MEETING AT 7:00 PM WITH AS MANY BOARD OF ETHICS MEMBERS AS POSSIBLE BEING PRESENT. ELLEN WILL CONTACT SHARON BOMMARITO AND PATRICK PATTERSON OF PERSONNEL TO CONFIRM THIS TIME. SECRETARY SLADE WAS ASKED TO INFORM MEMBERS NOT PRESENT OF THIS TENTATIVE DATE SO THEY CAN PUT IT ON THEIR CALENDARS. NEW BUSINESS THE FOLLOWING ACTION WAS TAKEN REGARDING THE AFFIDAVIT OF DISCLOSURE FILED BY KATHRYN RICHARDS: MOTION BY CALVIN ANDERSON TO RECEIVE AND PLACE ON FILE THE AFFIDAVIT OF DISCLOSURE FILED BY KATHRYN RICHARDS WITH NO FURTHER BOARD ACTION CONTEMPLATED AND TO EXPRESS TO MS. RICHARDS THE APPRECIATION OF THE BOARD FOR THE THOUGHT SHE PUT INTO COMPLETING HER AFFIDAVIT. VOTE: 5/0 BOARD ROUND TABLE NAMES WALLINE THANKED THE MEMBERS FOR THE WELCOME TO THE BOARD. HE STATED THAT HE LOOKS FORWARD TO BEING A PART OF THIS BOARD. CALVIN ANDERSON REQUESTED THAT HE BE EXCUSED FROM THE NOVEMBER 1 0, 1998 BOARD MEETING AS HE WILL BE OUT OF TOWN. ADJOURNMENT MEETING ADJOURNED AT 5:58 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: I 1 /1 0/98 2 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING NOVEMBER 10. 1998 - 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: DR. DONALD KUIPER, CHAIRMAN DAVID KIMBALL, VICE CHAIRMAN CALVIN ANDERSON, PHD, PUBLIC MEMBER ROBERT HOLE, PUBLIC MEMBER ELLEN SULLIVAN, PUBLIC MEMBER JAMES WALLINE, PUBLIC MEMBER DAVID LEHMANN, PUBLIC MEMBER DR. GEORGIA JOHNSON, PUBLIC MEMBER ABSENT NONE T 3 A QUORUM WAS PRESENT ' OTHERS PRESENT: WENDEL HALL, DEPUTY CITY ATTORNEY -- MARILYNN SLADE, CITY CLERK _ DARIO MEDRANO, 6 1 7 LOUISArn LARRY LOPEZ : �J PETE BOSCHEFF �v ED SIMMER PUBLIC COMMENT: DARIO MEDRANO OF 6 1 7 LOUISA STATED THAT THE ISSUE OF HIS COMPLAINT DEVELOPED AS THE RESULT OF HIS INTEREST IN 1 995 IN DEVELOPING A PROGRAM FOR AT RISK CHILDREN. HE TALKED WITH MANY PEOPLE FROM THE CITY WHO SUPPORTED HIM IN THIS EFFORT. HE LOCATED A BUILDING, A FISCAL AGENT TO HANDLE THE MONIES, AND RECEIVED FUNDING FROM THE LANSING CITY COUNCIL. HE ASSUMED THAT THE MONEY GIVEN TO HIM FROM THE HUMAN RELATIONS DEPARTMENT WAS FOR THIS PROGRAM. HE SUBMITTED A PROPOSAL TO THE CITY AND SERVED AS DIRECTOR OF THE Los DARIOS CLUB DE BOXED FOR 2- 1/2 YEARS. THIS YEAR, TONY BENAVIDES CHANGED THE NAME OF THE CLUB TO THE CRISTO REY BOXING CLUB AND TOOK IT AWAY FROM HIM (MR. MEDRANO). THE CLUB, THE EQUIPMENT AND THE FUNDING WAS TAKEN AWAY FROM HIM. HE WOULD LIKE TO RESTART THE PROGRAM AND REGAIN THE FUNDING SOURCE AND THE EQUIPMENT THAT WAS PURCHASED FOR THIS CLUB. HE IS DOING THIS FOR THE CHILDREN, NOT DOING IT FOR HIS OWN PERSONAL GAIN. HE SPOKE WITH TONY BENAVIDES ABOUT THIS ON SEVERAL OCCASIONS. HE STATED THAT HE WAS UNAWARE OF THE CONFIDENTIALITY REQUIREMENT OF THE ETHICS ORDINANCE WHEN HE FILED HIS COMPLAINT. APPROVAL OF AGENDA: MOTION BY GEORGIA JOHNSON THAT WE MOVE MR. MEDRANO'S COMPLAINT TO IMMEDIATELY FOLLOWING THE APPROVAL OF AGENDA AND THAT WE ADD A DISCUSSION OF ETHICS TRAINING TO THE AGENDA UNDER "OLD BUSINESS". MOTION CARRIED 8/0 1 MINUTES: BOARD OF ETHICS 'ET7NG Nov. /O, /998 PG. 2 Discussion of Complaint # 98-0001 CHAIRMAN KUIPER NOTED THAT THE PROCEDURE FOLLOWED BY THE BOARD OF ETHICS FOR COMPLAINTS WAS TO ASK THE CITY ATTORNEY'S OFFICE FOR A PRELIMINARY OPINION ON THE COMPLAINT AND THAT OPINION HAS BEEN RECEIVED BY THE BOARD THIS EVENING. GEORGIA JOHNSON ASKED HOW LONG THIS BOXING CLUB RECEIVED $5,000 FROM THE CITY. MR. MEDRANO REPLIED THAT ON SEPTEMBER 1 8, 1 995, BY COUNCIL RESOLUTION, THE CLUB RECEIVED $5,000. SINCE THEN, THE CLUB HAS RECEIVED $ 1 5,000 YEARLY. GEORGIA JOHNSON ASKED WHEN THIS PROGRAM WAS STOPPED. MR. MEDRANO REPLIED ON APRIL I ST OF THIS YEAR ( 1 998). GEORGIA JOHNSON ASKED IF THE CRISTO REY BOXING CLUB THEN BEGAN AFTER APRIL I ST. MR. MEDRANO REPLIED "YES". GEORGIA JOHNSON ASKED WAS THE CRISTO REY CLUB USING THE SAME EQUIPMENT AT THE SAME LOCATION. MR. MEDRANO REPLIED "YES". HE FURTHER OFFERED THAT HE RECEIVED A STIPEND OF $50 PER WEEK FROM CRISTO REY FOR COACHING THIS CLUB. HE WAS TOLD BYTONY BENAVIDES THAT, AS AN EMPLOYEE OF CRISTO REY, HE NEEDED TO GET A DRIVERS LICENSE. HE WAS FURTHER TOLD THAT HE WOULD HAVE TO PAY $4,000 TO PURCHASE HEALTH INSURANCE ON HIS OWN. GEORGIA JOHNSON ASKED IF MR. MEDRANO WAS SAYING THATTONY BENAVIDES, VOTING FOR MONIES FOR THE CLUB WHEN ITS NAME WAS CHANGED TO CRISTO REY BOXING CLUB WAS NOT KOSHER. MR. MEDRANO REPLIED THAT HE THOUGHT THE MONEY WAS GIVEN TO Los DARIOS AND THAT IS WHAT IT WAS INTENDED FOR. CRISTO REY RECEIVED $ 1 5,000 THIS YEAR FOR THE PROGRAM AND THE CLUB IS STILL OPERATING. CAL ANDERSON STATED THAT HE HAD WATCHED SOME OF THE DISCUSSION OF THIS MATTER THAT WAS GIVEN AT SEVERAL CITY COUNCIL MEETINGS. HE ASKED MR. MEDRANO IF THERE HAD BEEN SOME PERSONAL PROBLEMS THAT WERE INVOLVED IN THIS MATTER. MR. MEDRANO REPLIED THAT UPON HIS DISMISSAL FROM GENERAL MOTORS, HE TOLD TONY BENAVIDES THAT HE WOULD NEED A WEEK OFF TO GO TO THE V. A. HOSPITAL FOR TREATMENT. HE HAD A MEDICAL SITUATION AND PROBLEM. HE WAS TOLD WHEN DISMISSED BY CRISTO REY THAT THE REASON FOR HIS DISMISSAL WAS THAT HE DID NOT HAVE A DRIVERS LICENSE. CAL ANDERSON ASKED WERE YOU OR WERE YOU NOT AN EMPLOYEE OF CRISTO REY. MR. MEDRANO REPLIED THAT HE WAS TOLD HE WAS AN EMPLOYEE BECAUSE OF THE STIPEND HE RECEIVED. HE WAS ASKED TO SIGN A DOCUMENT STATING THAT HE UNDERSTOOD THAT IF HE DID NOT GET A DRIVERS LICENSE, HE WOULD NOT BE ABLE TO CONTINUE AS COACH OF THE CLUB. CAL ANDERSON STATED THAT HE IS TRYING TO SEPARATE OUT THE INTERNAL PROBLEMS AND THE 2 MINUTES: BOARD OF ETH/CS ';-'-/7NG Nov. /O, /998 PG. 3 PROBLEMS INVOLVED WITH THE CITY. HE ASKED AT THE TIME OF TERMINATION AS AN EMPLOYEE OF CRISTO REY IF MR. MEDRANO RECEIVED WRITTEN NOTIFICATION. MR. MEDRANO REPLIED THAT AT A CRISTO REY ADVISORY BOARD MEETING HE ASKED FOR TIME OFF FOR A MEDICAL LEAVE; 60 DAYS TOTAL. HE WAS ALSO TOLD THAT HE WAS SUPPOSED TO GET HIS DRIVERS LICENSE BACK IN 60 DAYS AND HE DID NOT GET IT BACK IN THAT TIME. HE WAS TOLD IF HE DIDN'T SIGN THE LETTER (STATING HE UNDERSTOOD THE NEED FOR THE LICENSE), THEY WERE GOING TO CLOSE DOWN THE GYM. SINCE THEN, CRISTO REY HAS HIRED A NEW COACH. ROBERT HOLE STATED HE HAS READ THE COMPLAINT 2-3 TIMES AND JUST RECEIVED THE OPINION FROM DEPUTY CITY ATTORNEY HALL. GOING BACK TO 1 995, A PROPOSAL WAS SUBMITTED FOR MONIES FROM THE CITY. HE ASKED MR. MEDRANO IF PRIOR TO THIS PROPOSAL, DID HE GO TO CRISTO REY AND TALK TO THEM ABOUT THIS PROGRAM. MR. MEDRANO REPLIED "YES". ROBERT NOLE STATED THAT MR. MEDRANO THEN BROUGHT THE PROPOSAL TO THE CITY, IT WAS VOTED ON AND APPROVED BY CITY COUNCIL, AND HE (MR. HOLE) READ THE LETTER FROM TONY BENAVIDES WHICH WAS INCLUDED IN THE COMPLAINT AND WHICH STATED THAT CRISTO REY WAS AGREEING TO SERVE AS FISCAL AGENT SHOULD THE MONIES BE GRANTED. HE ASKED DEPUTY CITY ATTORNEY HALL IF THIS MEANS THAT THE MONEY DID GO TO CRISTO REY. DEPUTY CITY ATTORNEY HALL REPLIED "YES". ROBERT NOLE STATED BACK IN 1 995, THE FIRST $5,000 GRANTED TO THE CLUB WAS GRANTED TO Los DARIOS AND WAS MR. MEDRANO THE PRINCIPAL DIRECTOR OF THIS CLUB. MR. MEDRANO REPLIED "YES". ROBERT NOLE ASKED WAS THE MONEY, HOWEVER, FUNNELED THROUGH CRISTO REY. DEPUTY CITY ATTORNEY HALL REPLIED "YES, THAT WOULD BE ONE WAY IT WOULD WORK." ROBERT NOLE STATED THAT THEN THERE WAS SOME KIND OF FALLING OUT WITH SOMEONE AT CRISTO REY AND THEY (CRISTO REY) DETERMINED THAT THEY COULD HANDLE THE CLUB THEMSELVES AND NO LONGER NEEDED YOU. MR. MEDRANO REPLIED HE WAS TOLD THERE NEVER WAS A Los DARIOS CLUB. ROBERT HOLE REPLIED THAT HE DID NOT UNDERSTAND THAT EITHER. ELLEN SULLIVAN STATED THE WAY SHE WOULD READ IT WAS THAT SINCE Los DARIOS DID NOT HAVE TAX EXEMPT STATUS AND SINCE THE CITY COULD NOT GIVE THE GRANT MONIES TO AN INDIVIDUAL, CRISTO REY AGREED TO SERVE AS THE FIDUCIARY AGENT SINCE THEY HAVE THE ACCEPTABLE TAX EXEMPT STATUS. MR. MEDRANO REPLIED THAT SINCE THEN HE DID APPLY FOR TAX EXEMPT STATUS AND HE WAS GRANTED IT THIS YEAR. CHAIRMAN KUIPER ASKED MR. MEDRANO WHO ISSUED THE CHECK TO HIM FOR $50.00 PER WEEK. 3 MINUTES: BOARD OF ETHICST/NG Nov. /O, /998 PG. 4 MR. MEDRANO REPLIED "CRISTO REY". CHAIRMAN KUIPER ASKED, FOR CLARIFICATION, THEN THE CHECK WAS FROM CRISTO REY AND NOT FROM THE CITY. MR. MEDRANO REPLIED "YES". HE FURTHER STATED THAT HE TRIED TO DO THINGS IN AN HONEST WAY. ALL HE WANTED WAS TO HELP CHILDREN IN THE COMMUNITY. NAMES WALLINE ASKED WHAT HAPPENED ON APRIL I ST. MR. MEDRANO REPLIED THAT THE LETTER HE SIGNED STATED THAT IF HE DID NOT HAVE HIS DRIVERS LICENSE BY MARCH 3 1 ST HIS EMPLOYMENT WITH CRISTO REY WOULD BE TERMINATED. JAMES WALLINE ASKED IF MR. MEDRANO HAD ANY COMPLAINTS WITH CRISTO REY PRIOR TO APRIL I ST. MR. MEDRANO REPLIED "No, SOME DIFFERENCES OF OPINION BUT NOTHING MAJOR". ROBERT NOLE ASKED DEPUTY CITY ATTORNEY HALL WHAT HE MEANT ON PAGE 2 OF HIS OPINION ABOUT THE VOTE AS RELATES TO CRISTO REY COMMUNITY CENTER. DEPUTY CITY ATTORNEY HALL REPLIED THAT THE ACTION SPECIFICALLY SAID Los DARIOS CLUB DE BOXED. ROBERT NOLE SAID BUT IF HE (MR. MEDRANO) DID NOT HAVE TAX EXEMPT STATUS, DIDN'TTHE MONIES HAVE TO GO TO CRISTO REY. DEPUTY CITY ATTORNEY HALL SAID HE SUGGESTS THAT THE ANSWER IS "NO" SINCE THE MONIES COULD NOT BE SPENT AT THE DISCRETION OF CRISTO REY. IF THERE IS A QUESTION THAT CRISTO REY EXCEEDED THE AUTHORITY OF THE RESOLUTION, THAT IS SOMETHING THAT A CIRCUIT COURT WOULD HAVE TO LOOK INTO. CAL ANDERSON ASKED DOES THE FISCAL AGENT HAVE SOME RESPONSIBILITY AS TO HOW THE MONIES ARE SPENT. DEPUTY CITY ATTORNEY HALL REPLIED "NOT IF THEY ARE A TRUE AGENT". Los DARIOS WAS THE PRINCIPAL AND CRISTO REY WAS THE AGENT. THE AGENT COULD NOT DO ANYTHING THAT DIFFERS FROM WHAT THE PRINCIPAL WANTED. THE BENEFICIARY OF THE MONIES WAS Los DARIOS AND NOT CRISTO REY COMMUNITY CENTER. CAL ANDERSON STATED IT IS CONFUSING BECAUSE THEY COULD HAVE DONE ANYTHING THEY WANTED TO WITH THE MONEY AND THEY COULD HAVE ASKED CRISTO REY TO GIVE THEM THE MONEY FOR A PARTY IF THEY WANTED TO MAKE THAT REQUEST. DEPUTY CITY ATTORNEY HALL REPLIED THAT WOULD HAVE TO BE CONSISTENT WITH THE ORDINANCE ON CONTRACTS; SOME PARTIES, SUCH AS A CHRISTMAS PARTY, MIGHT BE ALLOWED. CHAIRMAN KUIPER ASKED DEPUTY CITY ATTORNEY HALL FOR HOW MUCH AND HOW LONG WAS MR. MEDRANO RECEIVING CHECKS FROM CRISTO REY. 4 MINUTES: BOARD OF ETHICS c--T/NG Nov, /O, /998 PG. 5 DEPUTY CITY ATTORNEY HALL RESPONDED THAT HE DIDN'T UNDERSTAND THE SPECIFIC DETAILS; HE ASSUMES THE MONEY WAS IN AN ACCOUNT FROM WHICH CRISTO REY MADE DISBURSEMENTS AS THE FISCAL AGENT. ROBERT HOLE ASKED WHEN DID YOU SAY YOU WERE DISMISSED OF MR. MEDRANO. MR. MEDRANO RESPONDED APRIL I ST OF THIS YEAR. ROBERT HOLE ASKED WHAT IS THE NAME OF THE CLUB NOW. MR. MEDRANO RESPONDED CRISTO REY BOXING CLUB, HE BELIEVES. ROBERT HOLE ASKED HOW CAN THE FISCAL AGENT DISMISS THE PRINCIPAL. DEPUTY CITY ATTORNEY HALL SAID THERE IS GOOD REASON FOR CONFUSION. IF THERE IS A WRONG, AND HE CERTAINLY IS NOT MAKING ANY STATEMENT THAT THERE IS ONE, IT WOULD HAVE TO BE LOOKED INTO BY THE CIRCUIT COURT; THE ISSUE DOESN'T COME UNDER THE PROVISIONS OF THE ETHICS ORDINANCE. CHAIRMAN KUIPER ASKED IF CRISTO REY IS REALLY THE FISCAL AGENT FOR THE BOXING CLUB. IF YOU ARE THE AGENT, DO YOU HIRE, FIRE AND SET THE POLICIES. GOING BACK TO THE LETTER FROM TONY BENAVIDES, HE FEELS THESE ITEMS WOULD BE INCLUDED. DEPUTY CITY ATTORNEY HALL STATED THAT HIS UNDERSTANDING OF HOW THIS IS DETERMINED AND USED IN LAW WOULD RELATE ONLY TO THE ETHICS ORDINANCE. GEORGIA JOHNSON ASKED IS IT POSSIBLE TO FIND OUT IF THE CITY COUNCIL HAS ANY IDEA THAT THIS CLUB IS NOW NO LONGER IN EXISTENCE. HAS THERE BEEN ANY NOTIFICATION TO THE CITY FROM CRISTO REY THAT THEY HAVE RENAMED THE CLUB AND DISMISSED MR. MEDRANO. MR. MEDRANO RESPONDED THAT Los DARIOS IS STILL IN EXISTENCE; THEY ARE JUST HOMELESS. HE DIDN'T UNDERSTAND WHEN HE ACCEPTED THE $50 PER WEEK THAT MADE HIM AN EMPLOYEE OF CRISTO REY. IF HE HAD, HE WOULD HAVE REJECTED IT. JAMES WALLINE ASKED WHY IN ALL THIS TIME YOU NEVER CAME TO THE CITY AND SAID CRISTO REY IS STEALING MY MONEY. MR. MEDRANO RESPONDED "NO, THEY WEREN'T. I NEVER HAD ANY PROBLEM WITH THEM UNTIL APRIL I ST OF THIS YEAR." CAL ANDERSON ASKED DEPUTY CITY ATTORNEY HALL WHEN WAS THE LAST APPROPRIATION MADE. MR. MEDRANO RESPONDED IN AUGUST OF THIS YEAR. CAL ANDERSON ASKED DEPUTY CITY ATTORNEY HALL IF THE MONEY IN LAST YEAR'S BUDGET WAS PAID DIRECTLY TO Los DARIOS OR TO CRISTO REY AS FISCAL AGENT AND WOULD CRISTO REY BE ABLE TO TAKE IT OVER AND CHANGE THE NAME TO THE CRISTO REY BOXING CLUB. DEPUTY CITY ATTORNEY HALL RESPONDED IF THAT HAPPENED., IT IS A CIRCUIT COURT ISSUE. THE INQUIRY HERE INVOLVES WHETHER OR NOT A COVERED INDIVIDUAL (TONY BENAVIDES) HAS VIOLATED THE ETHICS ORDINANCE. THE APPROPRIATE PLACE FOR THIS ISSUE WOULD BE THE CIRCUIT COURT 5 MINUTES: BOARD OF ETHICS ERNG Nov. 10, 1998 PG. 6 AND NOT BEFORE THE ETHICS BOARD. CAL ANDERSON STATED THE ISSUE BEFORE THIS BOARD IS WAS OR WAS NOT TONY BENAVIDES IN VIOLATION OF THE ETHICS ORDINANCE IN RELATION TO THIS ISSUE. DEPUTY CITY ATTORNEY HALL RESPONDED `AYES". CAL ANDERSON STATED AND BEYOND THAT, THE DECISION BELONGS TO SOMEONE ELSE. DEPUTY CITY ATTORNEY HALL RESPONDED "YES". CAL ANDERSON STATED OUR QUESTION IS WAS TONY BENAVIDES IN VIOLATION OF THE ETHICS ORDINANCE. DEPUTY CITY ATTORNEY HALL STATED THE BOARD NEEDS TO DECIDE IF A COUNCIL VOTE WAS REQUIRED ON THE LATEST APPROPRIATION IN AUGUST. SOME RESEARCH WOULD HAVE TO BE DONE TO MAKE THIS DETERMINATION. ROBERT NOLE ASKED IF ANY VOTES HAVE BEEN TAKEN BY CITY COUNCIL SINCE THE 1995 RESOLUTION MENTIONED IN THE COMPLAINT. MR. MEDRANO RESPONDED THAT HE JUST RECEIVED LETTERS FROM ART WALKER (THEN DIRECTOR OF HUMAN RELATIONS & COMMUNITY SERVICES) STATING THAT THE CONTRACT WAS CONTINUED. NAMES WALLINE ASKED THEN YOU GOT FUNDING EVERY YEAR WITHOUT A VOTE FROM THE COUNCIL. MR. MEDRANO RESPONDED "YES, HE BELIEVES SO". NAMES WALLINE STATED THE BOTTOM LINE IS THAT THERE WAS ONLY ONE VOTE ON THIS MATTER. MR. MEDRANO RESPONDED THAT HE THINKS THAT WHEN THEY ALLOCATED THE MONIES THIS YEAR, TONY BENAVIDES TOOK HIMSELF OUT OF THE VOTE (RECUSED HIMSELF). DAVID KIMBALL STATED THAT IT IS HIS UNDERSTANDING OF PAGE 3 THAT THE ARGUMENT REGARDING ANY MISAPPROPRIATION OF FUNDS HAS NOTHING TO DO WITH THE ETHICS BOARD. DEPUTY CITY ATTORNEY HALL RESPONDED "THAT IS CORRECT". DAVID KIMBALL STATED IT IS HIS UNDERSTANDING THAT TONY BENAVIDES VOTED TO PERMIT HIS ORGANIZATION (CRISTO REY) TO RECEIVE FUNDS AND WHETHER OR NOT THAT KIND OF ACTION GIVES THE APPEARANCE OR PRESENTS THE FACT OF A CONFLICT OF INTEREST IS WHAT IS AT ISSUE HERE. DEPUTY CITY ATTORNEY HALL RESPONDED THAT AT THIS JUNCTURE, THE BOARD CAN AUTHORIZE FURTHER INVESTIGATION. DAVID KIMBALL STATED IN THE CASE OF TONY BENAVIDES, WHEN HE VOTES TO APPROVE CITY FUNDING FOR AN ORGANIZATION HE OVERSEES, IT IS HIS OPINION (KIMBALL'S) THAT HE IS IN A POSITION OF AT LEAST RISKING THE APPEARANCE OF A CONFLICT OF INTEREST. THE ISSUE REGARDING ANY ALLEGED MISAPPROPRIATION OF FUNDS IS NOT WITHIN THE PURVIEW OF THE BOARD. HE DOESN'T SEE A PLACE FOR THE BOARD IN THIS EXCEPT THAT HE FEELS COUNCIL LEAVES THEMSELVES OPEN TO THE APPEARANCE OF A CONFLICT OF INTEREST IN MATTERS SUCH AS THIS. 6 MINUTES: BOARD OF ETHICS ERNG Nov. /O, /998 PG. 7 GEORGIA JOHNSON STATED THAT IT SEEMS TO HER THAT IF THERE IS A PROBLEM HERE, IT SHOULD BE COUNCILS OR THE CITY ATTORNEYS JOB TO LOOK INTO IT AND NOT THE CIRCUIT COURT. MR. MEDRANO STATED THAT IF CRISTO REY HAD A PROBLEM WITH HIM, THEY COULD STILL HAVE KEPT THE CLUB NAME Los DARIOS WITHOUT HIM BEING DIRECTOR. CAL ANDERSON ASKED DID TONY BENAVIDES VOTE FOR THE LAST APPROPRIATION FOR THIS BOXING CLUB AND THEN TAKE OVER THE OPERATION OF IT. IF SO, THEN THERE MAY BE SOME ISSUES WE NEED TO ADDRESS. OTHER AREAS NEED TO BE ADDRESSED BY SOMEONE OTHER THAT THE ETHICS BOARD. ELLEN SULLIVAN STATED SHE DOESN'T SEE ANYTHING IN THE COMPLAINT ABOUT THE MOST RECENT APPROPRIATION - THE REFERENCE IS ONLY TO THE 1995 APPROPRIATION. SHE FEELS THE BOARD NEEDS MORE INFORMATION TO DEAL WITH THE CURRENT APPROPRIATION. MR. MEDRANO STATED THAT, TO HIS MEMORY, TONY BENAVIDES DID NOT VOTE FOR THE APPROPRIATION THIS YEAR. THE ISSUE WENT TO GENERAL SERVICES COMMITTEE OF COUNCIL ON AUGUST I OTH AND THAT COMMITTEE WAS TOLD BY THE CITY ATTORNEY THATTHE CONTRACT FOR THIS YEAR WAS WITH CRISTO REY AND NOT Los DARIOS. CHAIRMAN KUIPER, REFERRING TO PAGE 3 OF THE OPINION, STATED THAT DEPUTY CITY ATTORNEY HALL SAID HE SAW NO REASON TO BELIEVE TONY BENAVIDES WAS ASSOCIATED WITH Los DARIOS. CHAIRMAN KUIPER DISAGREES BECAUSE THE LETTER INCLUDED IN THE COMPLAINT FROM MR. BENAVIDES STATES HE ACCEPTS RESPONSIBILITY TO BE THE FISCAL AGENT FOR THEM. COUNCILMEMBERS NEED TO BE TOLD IF THEY HAVE A FISCAL TIE WITH ANY PROGRAM, THEY NEED TO RECUSE THEMSELVES FROM VOTING FOR FUNDING FOR THE PROGRAM. JAMES WALLINE STATED THAT IF IN 1 995 YOU DIDN'T GET THE MONEY YOU ASKED FOR, WHY DIDN'T YOU COME AND TELL SOMEONE ABOUT IT. WHERE DID THE MONEY GO IF YOU DIDN'T RECEIVE IT. ROBERT HOLE, REFERRING TO PAGE 3 OF THE OPINION, STATED THAT DEPUTY CITY ATTORNEY HALL SAYS CRISTO REY IS NOT UNDER THE OFFICIAL CARE AND CONTROL OF TONY BENAVIDES. IS HE OR IS HE NOT THE DIRECTOR. DEPUTY CITY ATTORNEY HALL RESPONDED THAT TONY BENAVIDES SERVES AS THE EXECUTIVE DIRECTOR SO IS THE DAY TO DAY DIRECTOR. FOCUSING ON "OFFICIAL" RELATES BACK TO HIS DUTIES AS COUNCIL PRESIDENT, NOT AS AN OFFICIAL OF CRISTO REY. ELLEN SULLIVAN ASKED DO YOU MEAN HIS OFFICE IN CITY GOVERNMENT. DEPUTY CITY ATTORNEY HALL RESPONDED "YES". GEORGIA JOHNSON ASKED IF $ 1 5,000 WENT TO THIS NEW CLUB, CRISTO REY BOXING CLUB, WAS TONY BENEFITTING AND WOULD THIS MAKE A DIFFERENCE. MR. MEDRANO RESPONDED THAT THE MONEY WAS SPENT ON THE BOXING PROGRAM WHILE HE WAS THERE; HE DOESN'T KNOW WHAT HAS HAPPENED TO IT SINCE. JAMES WALLINE ASKED DID CRISTO REY ACTUALLY HAVE CONTROL OVER THE MONEY OR WERE THEY ONLY THE FISCAL AGENT. USUALLY A FISCAL AGENT HAS NO CONTROL OVER THE MONEY. 7 MINUTES: BOARD OF ETHICS ET/NG Nov. /O, /998 PG. 8 CHAIRMAN KUIPER STATED IT SOUNDS LIKE CRISTO REY HAD CONTROL OF THE MONEY; I. E. STIPULATING TO MR. MEDRANO THAT HE WAS TO RECEIVE A SALARY. DAVID KIMBALL STATED HE DOESN'T LIKE THIS BECAUSE THE PART THAT IS THE MOST COMPELLING IS AWAY FROM THE LEVEL OF THE TYPE OF COMPLAINT THAT THIS BOARD CAN HANDLE. MOTION BY DAVID KIMBALL: "THAT THE BOARD CONCLUDES THAT THE MATTER IS NOT APPROPRIATE TO BEING HANDLED UNDER THE ETHICS ORDINANCE. HOWEVER, THE BOARD NOTES WITH CONCERN THAT THE VOTES OF COUNCIL PRESIDENT BENAVIDES, ESPECIALLY IN THE LIGHT OF SUBSEQUENT ADVERSE ACTIONS BY CRISTO REY, CREATE AT LEAST THE PERCEPTION OF A CONFLICT OF INTEREST. THE BOARD RESPECTFULLY REMINDS COUNCILMEMBERS TO RECUSE THEMSELVES FROM ANY ACTIONS THAT COULD BE CONSTRUED AS A POTENTIAL ETHICAL VIOLATION. THE BOARD, ON THE ADVISE OF IT'S LEGAL COUNSEL, PROPOSES THAT THE ISSUE OF THE ALLEGED MISAPPROPRIATION OF FUNDS BE RESOLVED IN THE APPROPRIATE JUDICIAL FORUM." DISCUSSION ON THE MOTION CAL ANDERSON STATED THAT HE IS NOT SURE HIS (BENAVIDES') VOTE WAS A CONFLICT OF INTEREST. HE IS NOT COMFORTABLE WITH THIS TYPE OF STATEMENT. GEORGIA JOHNSON ASKED DIDN'T YOU SAY APPEARANCE. DAVID KIMBALL RESPONDED "PERCEPTION OF". CAL ANDERSON STATED, IN ALL FAIRNESS, WE HAVE HEARD ONLY ONE SIDE OF THE STORY. HE WOULD LIKE TO KNOW THE OTHER SIDE OF THE STORY. MR. MEDRANO STATED THAT IN 1 995 TONY BENAVIDES DID VOTE ON THE APPROPRIATION FOR Los DARIOS. CAL ANDERSON STATED THAT AT THIS TIME HE (BENAVIDES) WAS THE FISCAL AGENT FOR THE BOXING CLUB. NAMES WALLINE STATED IT APPEARS THAT MR. MEDRANO ASKED FOR THE MONEY AND AFTER THAT TONY BENAVIDES AGREED TO SERVE AS FISCAL AGENT BECAUSE MR. MEDRANO DID NOT HAVE TAX EXEMPT STATUS. HE DOESN'T SEE HOW TONY BENAVIDES OR HIS AGENCY BENEFITTED AS AN INDIVIDUAL OR A GROUP. MANY OF THE ISSUES HERE SUCH AS WRONGFUL DISCHARGE, ETC. FALL SHORT OF SOMETHING THAT IS AN ETHICAL DISPUTE. IF MR. MEDRANO WANTS TO PURSUE LEGAL ACTION IN THIS MATTER AND FEELS HE HAS SOME BASIS TO DO SO, HE SHOULD GO AHEAD. GEORGIAJOHNSON STATED THATTHE BOARD ATTHIS TIME HAS NOT DETERMINED THAT HE (BENAVIDES) IS IN A CONFLICT OF INTEREST. ISN'T THIS A MATTER THAT COULD ALWAYS COMEBACK TO THE BOARD AFTER FURTHER INVESTIGATION. CHAIRMAN KUIPER STATED HE (BENAVIDES)VOTED FOR MONEY FOR HIS ORGANIZATION WHICH SERVED AS THE FISCAL AGENT SO HE FEELS THERE IS A CONFLICT. CAL ANDERSON STATED AT THE TIME OF THAT RESOLUTION, HE WAS BECOMING THE FISCAL AGENT. AS FAR AS THERE BEING A CONFLICT OF INTEREST, HE DOESN'T SEE ONE. 8 MINUTES: BOARD OF ETHICS ETING Nov. /O, /998 PG. 9 ELLEN SULLIVAN STATED SHE IS HAVING DIFFICULTY WITH THE FINAL PIECE OF THE COMPLAINT IN THAT WE HAVE NO RECORD OF WHAT HAPPENED TO THE MONEY. IF CRISTO REY SAYS IT NEVER RECEIVED MONIES ON BEHALF OF Los DARIOS, WHERE DID THE MONEY GO. THERE IS A QUESTION IN RELATION TO CONCERN ABOUT VOTING ON AN ISSUE WHERE THERE IS A POTENTIAL CONFLICT AND WE HAVE NO INFORMATION ON VOTES THAT WERE TAKEN SUBSEQUENT TO THE 1 995 VOTE. CAL ANDERSON STATED HE WOULD APPRECIATE RECEIVING MORE INFORMATION; HE IS NOT IN A POSITION TO MAKE A DECISION OR WRITE A LETTER TO ANYONE UNTIL WE HAVE HEARD FROM THE OTHER SIDE. HE WOULD LIKE TO HEAR FROM COUNCILMEMBER BENAVIDES. ELLEN SULLIVAN STATED THAT SHE AGREES WITH THAT. CHAIRMAN KUIPER STATED THAT THE MOTION IS ONLY SENDING A CAUTION TO COUNCILMEMBERS OF THE NEED TO RECUSE THEMSELVES. MR. MEDRANO ASKED IS IT A CONFLICT OF INTEREST IF HE (BENAVIDES) VOTED ON IT. CHAIRMAN KUIPER STATED THAT THERE IS NO ANSWER FOR THAT QUESTION NOW. DAVID KIMBALL WITHDREW HIS MOTION. CAL ANDERSON STATED HE WOULD LIKE THE DEPUTY CITY ATTORNEY AND THE CITY CLERK TO VERIFY THROUGH COUNCIL MINUTES, CONTRACTS, AND OTHER SOURCES WHETHER OR NOT COUNCILMEMBER BENAVIDES RECUSED HIMSELF FROM VOTING ON ANY OF THESE APPROPRIATIONS, WHETHER THE APPROPRIATIONS WERE TO CRISTO REY, Los DARIOS, OR OTHERWISE FROM 1 995 TO THE PRESENT. THEY WOULD LIKE TO KNOW WHAT HAPPENED TO THE MONEY. CHAIRMAN KUIPER STATED THAT THE BOARD WOULD ALSO LIKE TO HAVE COUNCILMEMBER BENAVIDES APPEAR BEFORE THE BOARD REGARDING THIS MATTER. ROBERT NOLE ASKED IF IT WOULD BE OUT OF THE AUTHORITY OF THE BOARD TO ASK FOR AN INTERNAL AUDITING OF THE FUNDS. CHAIRMAN KUIPER STATED HE FELT THAT WAS OUT OF THE BOARDS JURISDICTION. DEPUTY CITY ATTORNEY HALL STATED HE WROTE AN ABBREVIATED OPINION BASED UPON THE BOARDS REQUEST FROM A PREVIOUS COMPLAINT BROUGHT BEFORE THE BOARD. HE WOULD BE HAPPY TO LOOK INTO THE MATTERS REQUESTED AND REPORT BACK TO THE BOARD. DAVID KIMBALL BROUGHT UP THE ISSUE REGARDING PUBLICITY. HE ASKED SHOULD IT BE DE FACTO BECAUSE OF A STORY IN THE LANSING STATE JOURNAL. DEPUTY CITY ATTORNEY HALL STATED THAT THE ORDINANCE SAYS THE COMPLAINT SHALL REMAIN CONFIDENTIAL. IT IS HIS UNDERSTANDING THAT THIS WAS BECAUSE THE PROCESS WAS ABUSED IN THE PAST WITH ALLEGATIONS BEING MADE, RUNNING TO THE NEWSPAPER WITH A STORY, AND THE VICTIM WAS ATTACKED AND POTENTIAL DAMAGE DONE BEFORE THE BOARD EVEN ADDRESSED THE COMPLAINT. THE PURPOSE OF THIS PROVISION OF THE ORDINANCE WAS TO NOT MAKE THE COMPLAINT PROCESS A POLITICAL WEAPON. BUT, THERE ARE FIRST AMENDMENT ISSUES HERE. THE BOARD IS ALLOWED TO ASK A PERSON TO NOT DISCUSS AN ISSUE SO LONG AS THEY (THE BOARD) ARE NOT DENYING AN INDIVIDUAL BENEFITS. HE FEELS YOU ARE NOT DENYING AN INDIVIDUAL A BENEFIT BY ASKING THEM TO NOT TALK ABOUT THEIR COMPLAINT AND NOTIFICATION OF SAME WAS GIVEN TO THE COMPLAINANT. 9 MINUTES: BOARD OF ETHICS A 7NG Nov. /O, /998 PG. /O CHAIRMAN KUIPER STATED THAT THE COPY OF THE COMPLAINT HE RECEIVED WAS MARKED "CONFIDENTIAL". HOW DID THE PAPER GET IT. MR. MEDRANO STATED THAT COUNCILMEMBER ALLEN TOLD HIM HOW TO FILE THE COMPLAINT. HE DIDN'T RELEASE THE INFORMATION INTENTIONALLY. CHAIRMAN KUIPER STATED HE DIDN'T WANTTO DISCOURAGE CITIZENS FROM BRINGING COMPLAINTS TO THIS BOARD. CAL ANDERSON STATED THAT ATTORNEYS CAN SAY A JURY IS SWORN TO SILENCE, ISN'T THAT THE SITUATION HERE? THE BOARD CAN BE HELD TO THE RULE OF CONFIDENTIALITY BUT YOU CANNOT NECESSARILY IMPOSE SUCH A RESTRICTION ON THE GENERAL PUBLIC. GEORGIA JOHNSON STATED THAT SHE FEELS THE RULE IS FOR CITY OFFICERS AND EMPLOYEES. SHE DOESN'T THINK A COMPLAINT SHOULD BE THROWN OUT BECAUSE IT IS IN THE PAPER. DAVID LEHMANN STATED THAT THE REMEDY BEING SOUGHT IS OUTSIDE THE AUTHORITY OF THIS BOARD. MR. MEDRANO STATED THAT HE DIDN'T WANT TO DO THIS OR TO BE HERE BUT HE FEELS RESPONSIBLE TO THE CHILDREN IN THE PROGRAM. HE IS ONLY DOING THIS FOR THE CHILDREN. HE REALIZES HE WILL PROBABLY HAVE TO GO TO COURT TO GET THIS STRAIGHTENED OUT. CHAIRMAN KUIPER THANKED MR. MEDRANO FOR COMING. DEPUTY CITY ATTORNEY HALL STATED THAT HE WILL LOOK INTO ANY OTHER VOTES TAKEN ON THIS MATTER, HE WILL INVITE COUNCIL PRESIDENT BENAVIDES TO THE NEXT MEETING, AND HE WILL RESEARCH WHERE THE MONIES WENT FROM 1 995 TO THE PRESENTAND WHEN THE DISBURSEMENT, IF EVER, CHANGED FROM Los DARIOS TO CRISTO REY BOXING CLUB. APPROVAL OF MINUTES: OCTOBER 1 3, 1 998: MOTION BY DAVID KIMBALL TO APPROVE THE MINUTES FOR OCTOBER 1 3, 1 998. MOTION CARRIED 8/0 CORRESPONDENCE RECEIVED AND SENT SINCE LAST MEETING: SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED AND SENT. CITY ATTORNEY'S REPORT: DEPUTY CITY ATTORNEY HALL REPORTED THAT THERE HAS BEEN NO ACTIVITY RELATING TO THE BOARD OF ETHICS SINCE THE LAST BOARD MEETING. CHAIR'S REPORT: CHAIRPERSON KUIPER HAD NO COMMENTS OTHER THAN TO STATE HE WAS HAPPY TO SEE ALL MEMBERS PRESENT THIS EVENING. OLD BUSINESS CHAIRMAN KUIPER REPORTED THAT THE SCHEDULED SPECIAL CEREMONY FOR PRESENTATION OF THE ETHICS VIDEO TO CITY COUNCIL WAS CANCELED BY COUNCIL. IF THIS PRESENTATION IS TO GO FORWARD, HE WOULD LIKE TO SEE AS MANY BOARD MEMBERS PRESENT AS POSSIBLE. 10 MINUTES: BOARD OF ETHICS A 7NG Nov. /O, /998 PG. / / ELLEN SULLIVAN HANDED OUT AN UPDATE OUTLINING HOW MANY CITY OFFICERS AND EMPLOYEES HAVE COMPLETED THE ETHICS TRAINING. SHE SAID THAT COUNCIL SUGGESTED THE BOARD COME TO THIS THURSDAY'S ( I 1/1 2/98) COMMITTEE OF THE WHOLE MEETING AND PROVIDE TRAINING FOR THE COUNCILMEMBERS. SHE STATED SHE FELT IT WAS NOT THE JOB OF THE BOARD TO PROVIDE THIS TRAINING. CHAIRMAN KUIPER STATED THAT ONE OF THE PRIMARY REASONS THE BOARD WANTED TO HAVE THIS A SPECIAL CEREMONY AT A REGULAR COUNCIL MEETING WAS SO THE GENERAL PUBLIC COULD VIEW THE ETHICS VIDEO. IT DEFEATS THE PURPOSE TO PRESENT IT AT A COMMITTEE OF THE WHOLE WHICH IS NOT TELEVISED. HE FEELS THE TRAINING OF COUNCILMEMBERS SHOULD BE LEFT TO THE PERSONNEL DEPARTMENT. ROBERT HOLE SUGGESTED THAT PERHAPS THE ETHICS VIDEO COULD BE SHOWN IMMEDIATELY FOLLOWING SOME COUNCIL MEETINGS, WITH AN ANNOUNCEMENT TO STAY TUNED TO WATCH IT. SECRETARY SLADE STATED THAT SHARON BOMMARITO ASKED HER TO BRING UP THE ISSUE OF TRAINING OF BOARD MEMBERS FOR DISCUSSION. IT IS DIFFICULT TO GO TO ALL THE BOARD MEETINGS AND COVER THE TRAINING. WOULD IT BE ACCEPTABLE TO THE ETHICS BOARD IF ALL CITY BOARD MEMBERS WERE GIVEN THE MANUAL AND A SCHEDULE OF WHEN THE VIDEO WOULD BE SHOWN ON CITY TV SO THEY COULD WATCH IT AT THEIR LEISURE. CAL ANDERSON STATED HE WOULD LIKE THE PERSONNEL DEPARTMENT TO ORGANIZE ONE LARGE TRAINING SESSION FOR ALL BOARD MEMBERS. IF MEMBERS CANNOT ATTEND THIS SESSION, THEN PERSONNEL COULD GO TO THE PLAN OF SENDING THE MANUAL AND ASKING THEM TO WATCH THE VIDEO ON CITY-TV. NEW BUSINESS HANDLED ABOVE. ADJOURNMENT MEETING ADJOURNED AT 7:40 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED: 1 2/8/98 11 MINUTES LANSING CITY BOARD OF ETHICS REGULAR MEETING DECEMBER IB. 1999 - 5:30 P.M. TENTH FLOOR CONFERENCE ROOM, LANSING CITY HALL THE MEETING WAS CALLED TO ORDER AT 5:35 P.M. IN THE TENTH FLOOR COUNCIL CHAMBERS, CITY HALL, LANSING, MICHIGAN. BOARD MEMBERS PRESENT: DR. DONALD KUIPER, CHAIRMAN DAVID KIMBALL, VICE CHAIRMAN CALVIN'ANDERSON, PHD, :':PUBLIC MEMBER ROBERT NOLE, PUBLIC MEMBER;: :.:. ....... ................. .............. . ELLEN''SULLIVAN, PUBLIC MEMBER::. ...... ...... . c1AMES WALLINE, PUBLIC MEMBER ;. :: >:<;;: DR. GEORGIA �)OHNSON, PUBLIC M' M1aEEt .:.............. ABSENT ` . DAVID LEHMANN (EXCUSED) "`' '" A QUORUM WA.:S PRESENT OTHERS 'PRESENT JIM SMIERTKA, CITY ATTORNEY MARILYNN SLADE, CITY CLERK THEOPOLIS HARVEY, HUMAN :RELATIONS COMMUNITY SERVICES DEPARTMENT c-, } DARIO MEDRANO, 6.,1 7 LOUISA '' LARRY LOPEZ' r ... _ . : ... .:: - I ) PUBLIC COMMENT 1.1 NONE APPROVAL OF:AGENDA M..OTION,BY.DAVI KPM. D BALL TO APPROVE THE AGENDA AS SUBMITTED. MOTION CARRIED 7/O APPROVAL OF MINUTES: November:10. 1 998. 4 MOTION BY JAMES WALLINE TO APPROVE THE MINUTES AS AMENDED TO CHANGE THE AMOUNT MR. MEDRANO RECEIVED FROM CR15T0 REY TO $50 PER WEEK AND TO ADD IN THE APPROPRIATE LOCATION 'MR. 'MEDRANO'S STATEMENT THAT HE WAS TOLD HE WOULD HAVE TO PAY_$4,000 TO PURCHASE HEALTH INSURANCE ON HIS OWN. MOTION CARRIED 7/Q CORRESPONDENCE A'RECEIVED AND...SENT . ENT SINCE LAST MEETING: ........... _._............ ................. SECRETARY SLADE REVIEWED THE CORRESPONDENCE RECEIVED AND SENT. CITY ATTORNEY'S REPORT: CITY ATTORNEY SMIERTKA REPORTED THAT JUDGE GLAZER DISMISSED FORMER CITY CLERK NAMES BLAIR'S LAWSUIT AGAINST THE CITY LAST WEEK. THE ONLY MATTER STILL OUTSTANDING FROM THE EARLY RETIREMENT ISSUE IS FORMER MAYOR TERRY MCKANE'S LAWSUIT WHICH WILL BE HEARD BY JUDGE GLAZER ON DECEMBER 23RD. CHAIR'S REPORT: 1 MINUTES: BOARD OF ETHICS MEETING DEC. 8, /998 PG. 2 DRAFT CHAIRPERSON KUIPER HAD NO REPORT. OLD BUSINESS Discussion of Complaint # 99-0001 BOARD MEMBERS REVIEWED A LETTER RECEIVED FROM COUNCIL PRESIDENT BENAVIDES REGARDING THIS COMPLAINT. CITY ATTORNEY SMIERTKA PROVIDED BOARD MEMBERS WITH COPIES OF STATE STATUTES WHICH RELATE TO THIS COMPLAINT. HE ALSO PROVIDED COPIES OF THE BUDGET RESOLUTIONS FOR THE YEARS 96/97, 97/96 AND 96/99 WHICH SHOWED THAT COUNCIL PRESIDENT BENAVIDES RECUSED HIMSELF FROM VOTING ON ANY MATTER INVOLVING CRISTO REY CONTAINED IN THE BUDGET RESOLUTION. HE REPORTED THAT THE PROVISION OF THE ETHICS ORDINANCE THAT THE BOARD SHOULD REVIEW WITH REGARDS TO THIS COMPLAINT IS FOUND ON PAGE 20 OF THE ETHICS MANUAL AS FOLLOWS: (0) THE PROVISIONS AND PROHIBITIONS SET FORTH IN THIS SECTION 290.04 ARE SUBJECT TO THE APPLICABLE PROVISIONS AND PROCEDURES OF THE STATE STATUTE ENTITLED "CONTRACTS OF PUBLIC SERVANTS WITH PUBLIC ENTITIES" BEING MCL 1 5.32 1 , ET. SEQ. AS THE SAME MAY BE AMENDED FROM TIME TO TIME. IN THE EVENT OF A CONFLICT BETWEEN THIS SECTION 290.04 AND THE STATE STATUTE IN ANY PARTICULAR CASE, THE STATE STATUTE SHALL PREVAIL. THIS PROVISION OF STATE LAW STATES THAT IT IS THE INTENT THAT THIS ACT SHALL CONSTITUTE THE SOLE LAW OF THIS STATE AND SHALL SUPERSEDE ALL OTHERS WITH REGARDS TO CONTRACTS. THE STATE STATUTE COVERS PUBLIC SERVANTS SO IT DOES APPLY IN THE CASE OF COUNCIL PRESIDENT BENAVIDES. KEY PROVISIONS ARE THAT A PUBLIC SERVANT SHALL NOT BE A PARTY DIRECTLY OR INDIRECTLY TO A CONTRACT FOR WHICH HE OR SHE HIMSELF (OR HERSELF) IS A PARTY. A PUBLIC SERVANT CANNOT SOLICIT OR NEGOTIATE SUCH A CONTRACT. SECTION 3 SAYS THAT THIS PROVISION SHALL NOT APPLY, HOWEVER, IN THE CASE OF A PUBLIC SERVANT WHO WORKS LESS THAN 25 HOURS PER WEEK. ALL COUNCIL POSITIONS ARE PART TIME POSITIONS WITH LESS THAN 25 HOURS OF WORK PER WEEK SO THEY ARE INCLUDED IN THIS EXCEPTION. THE BOTTOM LINE IS THAT IT IS THE CITY ATTORNEYS OPINION THAT COUNCIL PRESIDENT BENAVIDES DID NOT VIOLATE THE LAW IN VOTING FOR THE RESOLUTION OF TRANSFER IN 1995 BECAUSE OF THESE PROVISIONS OF THE STATE STATUTE. IF CITY COUNCIL WISHED, THEY COULD REVIEW THE CONTRACT AND VOID IT IF THEY FELT THE STATE STATUTE REQUIREMENTS FOR A CONTRACT HAD BEEN VIOLATED. THEY CAN DO THIS WITHIN ONE YEAR AFTER DISCOVERY OF ANY VIOLATION OF THE STATE STATUTE. CITY ATTORNEY SMIERTKA THEN ANNOUNCED THAT THEOPOLIS HARVEY OF THE CITY'S HUMAN RELATIONS &COMMUNITY SERVICES DEPARTMENT IS PRESENTTO ANSWER ANY QUESTIONS REGARDING THE CONTRACT ENTERED INTO BY THE CITY AND CRISTO REY AND Los DARIOS CLUB DE BOXEO. MR. HARVEY STATED THAT WHEN MR. MEDRANO CAME TO HIS DEPARTMENT, HE DID NOT HAVE THE PROPER 50 1 -3 DESIGNATION FOR A NON PROFIT ORGANIZATION. THEREFORE, THE CITY COULD NOT DIRECTLY ENTER INTO A CONTRACT WITH HIM OR APPROPRIATE FUNDS TO HIM. SINCE THE BOXING CLUB WAS LOCATED ACROSS THE STREET FROM CRISTO REY, THEY FELT IT WOULD BE A GOOD IDEA FOR CRISTO REY TO PROVIDE THE SUPPORT SERVICES AND FOR MR. MEDRANO TO DO THE 2 MINUTES: BOARD OF ETHICS MEE77NG DEc. B, 1998 PG. 3 DRAFT COACHING. AT THE TIME, THEY COULD NOT DO THE CONTRACT WITH MR. MEDRANO BECAUSE HE DID NOT HAVE THE PROPER DESIGNATION TO ENTER INTO A CONTRACT. GEORGIA JOHNSON ASKED HOW COULD SOMEONE SERVE AS A FISCAL AGENT AND STILL HAVE CONTROL OVER THE MONIES? DID ALL THE MONEY THAT CRISTO REY RECEIVED ACTUALLY GO TO THE CLUB OR DID CRISTO REY USE ANY OF IT FOR OTHER PROGRAMS? MR. HARVEY RESPONDED THAT IT IS HIS UNDERSTANDING THAT ALL OF THE MONEY ALLOCATED BY THE CITY WENT TO THE BOXING CLUB. LORENZO LOPEZ STATED THAT HE WAS THERE TO ANSWER QUESTIONS FROM THE CRISTO REY PERSPECTIVE. HE WAS MR. MEDRANO'S SUPERVISOR AND OVERSAW THE OPERATION OF THE BOXING CLUB UNDER THIS CONTRACT. HE WOULD BE HAPPY TO ANSWER ANY QUESTIONS THE BOARD MIGHT HAVE. DAVID KIMBALL STATED IT IS HIS UNDERSTANDING, BASED UPON CITY ATTORNEY SMIERTKA'S EXPLANATION, THAT IF SOMETHING IS WRONG HERE, IT DOES NOT COME UNDER ANY PROVISIONS THAT CAN BE ADDRESSED BY THIS BOARD. CITY ATTORNEY SMIERTKA RESPONDED "YES", INSOFAR AS IT HAS TO DO WITH CONTRACTS. DAVID KIMBALL ASKED HASN'T THE TIME THAT COUNCIL COULD DO ANYTHING ABOUT THE CONTRACT EXPIRED? CITY ATTORNEY SMIERTKA RESPONDED "NO", BECAUSE THE CLOCK BEGINS ONLY AFTER A VIOLATION IS DISCOVERED. CAL ANDERSON STATED IF A PROBLEM DOES EXIST, HE FEELS IT IS AN INTERNAL ONE WITH CRISTO REY AND NOT THE CONCERN OF THE ETHICS BOARD. CITY ATTORNEY SMIERTKA STATED IT DEPENDS ON THE ISSUE INVOLVED. THE ISSUE OF WHETHER OR NOT COUNCIL PRESIDENT BENAVIDES SHOULD HAVE ABSTAINED FROM VOTING ON THE RESOLUTION IN 1995 IS GOVERNED BY THE STATE STATUTE HE DISCUSSED THIS EVENING. THE CONTRACT ITSELF IS STILL OUT THERE AND THE CITY COUNCIL COULD STILL FILE A LAWSUIT TO VOID OUT THIS CONTRACT IF THEY SO DESIRED. MR. HARVEY STATED THAT THE CITY CURRENTLY DOES NOT HAVE A CONTRACT WITH EITHER CRISTO REY OR Los DARIOS CLUB DE BOXEO. THE CONTRACT EXPIRED IN JUNE, 1 996. MR. MEDRANO STATED THAT HE WOULD LIKE THE RECORD TO REFLECT THAT HE DOES NOT RECOGNIZE LARRY LOPEZ AS BEING AN OVERSEER OF THE BOXING CLUB; HE WAS THE DIRECTOR OF THIS CLUB. MR. HARVEY STATED THAT WHEN THE CONTRACT WAS LET, BOTH PARTIES WERE GETTING ALONG FINE AND THERE WAS NO NEED FOR THE HUMAN RELATIONS & COMMUNITY SERVICES DEPARTMENT TO BE CONCERNED ABOUT THIS MATTER. ANY PROBLEMS WITH THE CONTRACT WERE NOT BROUGHT TO THE ATTENTION OF THEIR DEPARTMENT UNTIL THIS LAST YEAR WHEN THE CONTRACT ENDED. GEORGIA JOHNSON STATED IT SEEMS TO HER THAT MR. MEDRANO'S CLUB GOT DUMPED AND THE NAME OF THE CLUB WAS CHANGED. 3 MINUTES: HOARD OF ETHICS MEETING DEC. 6, 1998 PG. 4 DRAFT MR. HARVEY STATED THAT CITY FUNDING HAS BEEN TO THE Los DARIOS CLUB DE BOXEO; THE CITY HAS NOT FUNDED ANY CRISTO REY BOXING CLUB. THE CITY USUALLY CONTRACTS DIRECTLY WITH THE AGENCIES THAT THEY FUND BUT IN THIS CASE THEY WANTED TO MAKE IT CLEAR THAT THE MONIES WERE TO GO TO Los DARIOS CLUB DE BOXEO SO THEY LISTED BOTH CRISTO REY AND Los DARIOS ON EVERY CONTRACT. MR. LOPEZ STATED THAT, IN THE PERSPECTIVE OF CRISTO REY, THERE HAS ALWAYS BEEN A CRISTO REY BOXING PROGRAM. THEOPOLIS HARVEY RESPONDED THAT FROM THE CITY'S PERSPECTIVE, THEY FUNDED THE Los DARIOS CLUB DE BOXEO WITH CRISTO REY SERVING AS THE FIDUCIARY ONLY. ROBERT HOLE ASKED THEN WHY DOES MR. LOPEZ FEEL THAT THERE IS A BOXING PROGRAM AT CRISTO REY? MR. LOPEZ RESPONDED THAT THERE IS ABSOLUTELY A BOXING PROGRAM AT CRISTO REY; THEY ARE CURRENTLY OPERATING A PROGRAM UNDER CITY OF LANSING FUNDING. CHAIRPERSON KUIPER STATED THAT HE WOULD LIKE TO REMIND THE BOARD THAT A LOT OF THE PROBLEMS BEING MENTIONED ARE NOT WITHIN THE PURVIEW OF THE BOARD, DAVID KIMBALL STATED THAT HE IS CONVINCED THERE ARE GRIEVANCES AND BOARD MEMBERS MAY HAVE THEIR OWN OPINIONS ON THESE BUT HE DOESN'T FEEL THEY ARE WITHIN THE JURISDICTION OF THE ETHICS BOARD. MR, MEDRANO ASKED IF THE BOARD IS NOT MORALLY OBLIGATED TO LOOK INTO THESE MATTERS WHETHER OR NOT THEY ARE LEGALLY INVOLVED. CHAIRPERSON KUIPER RESPONDED THAT THE ETHICS ORDINANCE OUTLINES THE TYPES OF MATTERS IN WHICH THE BOARD CAN OR CANNOT BECOME INVOLVED. IF SOMETHING IS OUTSIDE THE JURISDICTION OF THE ORDINANCE, THIS BOARD CANNOT SPEAK ABOUT IT. MR. MEDRANO STATED HE WILL BE LOOKING INTO OTHER AVENUES IN THIS MATTER. JAMES WALLINE STATED THAT IT IS CLEAR FROM THE LETTER FROM COUNCIL PRESIDENT BENAVIDES THAT HE DISCLOSED THAT HE WAS A FISCAL AGENT AND THAT HE HAS ABSTAINED FROM VOTING. THERE IS A DISPUTE BETWEEN CRISTO REY AND Los DARIOS. HE DOESN'T SEE ANYTHING HERE THAT WAS UNETHICAL ON THE PART OF MR. BENAVIDES. CAL ANDERSON STATED HE APPRECIATES THE WORK THAT HAS GONE INTO THIS. AT THIS POINT, WHAT WE HAVE ARE ISSUES THAT ARE INTERNAL PROBLEMS WITH CRISTO REY AND NOT APPROPRIATE FOR ETHICS BOARD ACTION. MOTION BY CAL ANDERSON: THAT THE BOARD SEND A LETTER TO ALL PARTIES STATING THAT, IF THERE ARE ISSUES OF CONFLICT, WE SEE THEM AS INTERNAL PROBLEMS OF THE AGENCY AND NOT APPROPRIATE FOR ACTION OF THE ETHICS BOARD. THE COMPLAINT IS DISMISSED ON THE BASIS OF 290,03, 5 (A) AND (B) WHICH STATE AS FOLLOWS: 4 MINUTES: BOARD OF ETHICS MEETING DEC. 8, 1998 PG. 5 DRAFT A. LACK OF JURISDICTION IN THE BOARD OF ETHICS. B. FAILURE OF THE COMPLAINT TO STATE A CLAIM OF A VIOLATION OF THE ETHICS PROVISIONS CONTAINED IN THE CHARTER, LAW OR . ORDINANCES. DISCUSSION ON THE MOTION: GEORGIA JOHNSON ASKED IF THE BOARD SHOULD STATE THAT THERE IS A PROBLEM OR SHOULD WE JUST SAY IT IS NOT WITHIN THE PROVINCE OF THE ETHICS BOARD. MR. MEDRANO STATED THATTONY BENAVIDES DID VOTE ON THE RESOLUTION IN 1 995. HE DOESN'T SEE WHY THIS IS NOT AN ETHICAL CONFLICT. CAL ANDERSON ASKED FOR A POINT OF ORDER. HE ASKED THE CHAIR WHETHER THE PUBLIC CAN MAKE COMMENTS WHILE A MOTION IS BEFORE THE BOARD. CHAIRPERSON KUIPER RULED THAT MR. MEDRANO IS OUT OF ORDER AND MAY NOT MAKE COMMENTS DURING DELIBERATION ON THE MOTION. GEORGIA JOHNSON STATED SHE DOES NOT WANT THE BOARD MAKING ANY STATEMENTS THAT COULD BE USED IN ANY LEGAL PROCEDURE. CAL ANDERSON STATED THAT HIS UNDERSTANDING OF THE USE OF THE WORD ETHICS IS AS IT IS DEFINED IN THE ETHICS ORDINANCE AND MANUAL WHICH WAS APPROVED BY COUNCIL AND THE DEFINITION HAS NOTHING TO DO WITH MORAL ISSUES OR OTHER ISSUES. MOTION CARRIED 7/0 NEW BUSINESS BOARD MEMBERS ACCEPTED THE SCHEDULE FOR 1999 WITH NO CHANGES. ADJOURNMENT MEETING ADJOURNED AT 6:30 P.M. RESPECTFULLY SUBMITTED, MARILYNN SLADE RECORDING SECRETARY DATE APPROVED:_ 2/9/99 5