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HomeMy WebLinkAbout19- Supplemental Preliminary Written Analysis - City of Bozeman Board of Ethics - Koopman December 12, 2018 Ethics ComplaintUGRIN ALEXANDER ZADICK, P .C. JORDAN Y. CROSBY CATHY J. LEWIS KEVIN C. MEEK JOHN D. ALEXANDER (RETIRED) ROBERT F. JAMES (RETIRED) File No.: B049-01 Chairperson Melissa Frost ATTORNEYS AT LAW #2 RAILROAD SQUARE, SUITE B P.O. Box 1746 GREAT FALLS, MONTANA 59403-17 46 TELEPHONE (406) 771-0007 FAX(406)452-9360 E-MAIL uazh@uazh.com, Website http://uazh.com February 11, 2019 Board Member Mary Jane McGarity Board Member Carson Taylor Board of Ethics for the City of Bozeman Via email RE: Koopman December 12, 2018, Ethics Complaint Suppl. Preliminary Written Analysis Dear Board Members: ANDREW T. NEWCOMER ROGER T. WITT GARY M. ZADICK JAMES R. ZADICK NEIL E. UGRIN 1945-2007 We are providing the following supplemental analysis of the remammg claims of Mr. Koopman's Ethics Complaint in light of the recent decision issued by the Commissioner of Political Practices. I. PROCEDURAL BACKGROUND The Board of Ethics ("the Board") held a meeting on January 24, 2019, regarding Mr. Koopman's Ethics Complaint. At the conclusion of this meeting, the Board voted to dismiss portions of Mr. Koopman's Ethics Complaint alleging violations of Title 13 of the Montana Code Annotated and any and all claims against the City of Bozeman and Nest Collective, LLC. The Board also dismissed the Ethics Complaint's claims against unnamed public employees and John and Jane Does 1 through 30. The claims remaining for the Board's consideration following these dismissals are the Ethics Complaint's claims against certain City officials1 for alleged violations of§ 2-2-121 (3), MCA. 1 These City officials are: Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and 1-Ho Pomeroy. This analysis will refer to this group as "the City officials." February 11, 2019 Page 2 of 11 The Board stayed further consideration of the remaining claims of the Ethics Complaint pending issuance of a decision by the Commissioner of Political Practices ("COPP") regarding the COPP's consideration of the City of Bozeman's self-filed COPP complaint, which incorporated the allegations of Mr. Koopman's District Court Complaint.2 The COPP issued a Dismissal3 on the City's complaint on January 28, 2019. A copy of this decision was provided to the Board via email on January 30, 2019. The COPP's decision considered and dismissed, as relevant here, Mr. Koopman's claims alleging that City employees violated § 13-35- 226(4), MCA, by using public time and resources to advocate for passage of the Bond. The COPP specifically concluded, from a review of emails, affidavits, interviews, financial reports and other documentary evidence submitted by the parties, that "no City employees used public time or resources to advocate for the BPSC[.]" COPP Dismissal, p. 34. On February 4, 2019, the Board, through counsel, notified counsel for Mr. Koopman, the City of Bozeman, and the Nest Collective, LLC, of the COPP's Dismissal and of the Board's February 20, 2019, meeting to further take up Mr. Koopman's Ethics Complaint. See Exhibit A. This notice advised that counsel would provide a supplemental written analysis and invited the parties to submit additional written information to the Board on or before February 14, 2019, by 12:00 p.m. As of the date of this letter, the only submission received has been from the City. All submissions will be uploaded onto the City's online repository so they are available for public review. On February 5, 2019, counsel for the City of Bozeman provided the City's response to the COPP Complaint, including numerous affidavits and documentary materials. This submission has been numbered City 00001-00191. Contained within this submission are the many of affidavits and documentary materials referenced in the COPP's Dismissal. II. THE COPP'S DISMISSAL The City's December 3, 2018, self-filed complaint with the COPP attached and incorporated Roger Koopman's November 19, 2018, Montana District Court Complaint. Accordingly, the COPP initially considered the same District Court Complaint that Mr. Koopman adopted in support of his December 12, 2018, Ethics Complaint before this Board. See COPP Dismissal, p. 1. The COPP's Dismissal specifically considered claims that: 1. The City of Bozeman violated§ 13-35-226(4), MCA, by advocating for passage of the Bond issue (COPP Dismissal, pp. 18-24); Mr. Koopman's Ethics Complaint likewise incorporated the allegations of Mr. Koopman's District Court Complaint. Ethics Campi., pg. 1. The full citation for the COPP's Dismissal is In re City of Bozeman, No. COPP 2018-CFP-057. February 11, 2019 Page 3 of 11 2. The City of Bozeman, its elected officials, or employees violated § 13-35- 226(4), MCA, by using public time, resources, or other materials for passage of the Bond issue (COPP Dismissal, pp. 24-28); and that 3. The City of Bozeman coordinated Bond advocacy with Bozeman Citizens for Safety in violation of Montana reporting requirements (COPP Dismissal, pp. 28-34). The claims considered in the second section, regarding the City officials' and employees' allegedly improper use of public time, resources, and materials to advocate for the Bond, are the only allegations relevant to Mr. Koopman's remaining ethics claims before the Board. This section will accordingly focus upon the COPP's specific consideration of those claims. The COPP Dismissal initially made a range of findings of fact relevant to Mr. Koopman's claims under #2, above. Again, these factual findings were based upon the COPP's review of documents, emails, interviews, committee financial reports, and other evidence submitted by the parties. COPP Dismissal, p. 34. Relevant factual findings include: • Finding of Fact No. 3, regarding the City's filing of a C-2 Statement of Organization on June 22, 2018; • Finding of Fact No. 4, regarding the City's filing of an initial C-4 committee finance report on August 8, 2018, detailing City staff time spent on education and City expenditures; • Finding of Fact No. 7, regarding the City's filing of a periodic C-4 committee finance report on October 2, 2018, detailing City staff time spent on education and City expenditures; • Finding of Fact No. 11, regarding the City's filing of a periodic C-4 committee finance report on October 25, 2018, detailing City staff time spent on education and City expenditures; • Finding of Fact No. 15, regarding the City's filing of a closing C-4 committee finance report on November 21, 2018, detailing City staff time spent on education and City expenditures; • Finding of Fact No. 16, detailing the City's response to the COPP Complaint; • Finding of Fact No. 17, detailing an affidavit from Mayor Andrus swearing that she understood the line between education and advocacy and only engaged in educational activities in her official capacity as Mayor. See also City's Submission, City 00028-31 ;4 4 The Finding notes that Mayor Andrus swore that she authored a letter to the editor of the Bozeman Daily Chronicle on her personal computer during personal time but erroneously sent the letter via her City email account. February 11, 2019 Page 4 of 11 • Finding of Fact No. 19, detailing an affidavit from Commissioner Cunningham swearing that he was aware of the difference between education and advocacy and did not engage in advocacy using public time or resources. See also City's Submission, City 00051-53; • Finding of Fact No. 20, detailing an affidavit from Commissioner Krauss swearing that he understood the prohibition on advocacy using public resources and only advocated for the Bond on his personal time using personal resources. See also City's Submission, City 00054-56; • Finding of Fact No. 21, detailing an affidavit from Deputy Mayor Mehl swearing that he understood the line between advocacy and education and never advocated for the Bond in his official capacity, but only as a private citizen on his own time and with personal resources. See also City's Submission, City 00057-59; • Finding of Fact No. 22, detailing an affidavit from Commissioner Pomeroy swearing that she understood the difference between education and advocacy and never advocated for passage of the Bond in her official capacity but only did so during private time with private resources. See also City's Submission, City 00060-61; • Finding of Fact No. 28 detailing an interview with Deputy Mayor Mehl wherein Deputy Mayor Mehl indicated that his communications and work on behalf of BCFS was conducted on private time using private resources; and • Finding of Fact No. 35, detailing an email from Commissioner Cunningham providing that his work on behalf of BCFS's radio ad was conducted on private time and with private resources. COPP Dismissal, pp. 2-13. The COPP considered Mr. Koopman's claim that City employees violated § 13-35-226(4), MCA, on pages 24 through 28 of the Dismissal. The COPP first determined that "the materials produced and distributed by the City were electioneering communications that do not support or oppose the ballot issue." COPP Dismissal, p. 24 (emphasis added). The COPP then determined that "[t]he City of Bozeman made it clear to its employees the prohibitions on advocating for the success or failure of the BPSC ballot issue." COPP Dismissal, p. 25. For support, the COPP cited to findings of fact that included the above-summarized findings regarding the City officials' understanding and conduct regarding the line between advocacy and education. /d. The COPP also determined that "[t]he City also provided affidavits from several City employees involved, or alleged to have been involved in key aspects of the bond matter, and each employee attested that they did not promote, support, or advocate for the BPSC while acting in their official February 11, 2019 Page 5 of 11 capacity. /d. p. 26. For support, the COPP again cited to findings of fact that included the above- summarized findings regarding the City officials' conduct. See id., p. 26. As the COPP summarized, "[a]s long as the employee was not operating in an official employment capacity, officially representing the City of Bozeman, or otherwise utilizing City time or resources, the individuals were free to express their personal opinion or position regarding the BPSC and advocate for its passage or failure as they saw fit." COPP Dismissal, p. 26. The COPP then determined that "[t]he Koopman district court complaint contains neither factual evidence nor specific examples refuting the sworn statements of these employees; neither was any such evidence uncovered as a result of COPP's investigation." COPP Dismissal, p. 26 (emphasis added). The COPP ultimately determined that any City employee advocacy was made in the employee's private capacity utilizing private time and resources. /d., p. 26-27. The COPP accordingly dismissed Mr. Koopman's unsupported allegations to the contrary. /d. Ill. THE BOARD OF ETHICS SHOULD TAKE NOTICE OF AND APPLY THE COPP'S DISMISSAL While the COPP's Dismissal did not consider Mr. Koopman's Title 2 claims against the City officials, it is our opinion that the COPP's decision should be adopted and applied by the Board to dismiss Mr. Koopman's Ethics Complaint's remaining Title 2 claims against the City officials. This is because: 1) the COPP considered and issued findings and conclusions regarding the same City officials' conduct put at issue by the Ethics Complaint; 2) these fully-adjudicated findings should be afforded deference by the Board; and 3) the legal conclusions of the COPP regarding§ 13-35-226(4), MCA, are substantively identical to the claims the Board must consider under§ 2-2-121 (3), MCA. The procedures applicable to the Board provide that "the board shall not be bound to adhere to statutory Rules of Evidence, but shall be fundamentally fair in its administration of evidence." Sec. 2.03.640(F)(1), BMC. Montana law allows courts to take notice of findings of fact and conclusions of law made in prior proceedings. See M.R.Evid. 201; M.R.Evid. 202; see also Farmers Plant Aid, Inc. v. Fedder, 2000 MT 87, 11 27, 299 Mont. 206, 213, 999 P.2d 315, 320 (the Supreme Court express approval of courts taking judicial notice of, and adopting, factual findings regarding the same parties that were made in prior cases). Judicial notice of facts may be taken regardless of whether the documents from prior proceedings were formally entered into evidence before the tribunal subsequently taking notice of those facts. In re S.T., 2008 MT 19,1117,341 Mont. 176, 181, 176 P.3d 1054, 1057. Judicial notice likewise extends to the legal opinions, orders, and records of prior proceedings. Estate of Kinnaman v. Mountain W Bank, N.A., 2016 MT 25, 1126, 382 Mont. 153, 162, 365 P.3d 486, 493. Both types of judicial notice, whether of facts or of law, are generally within the discretion of Montana courts. In re Marriage of Carter-Scan/on & Scanlon, 2014 MT 97, 1117, 374 Mont. 434, 439, 322 P.3d 1033, 1036 ("Both types of judicial notice also allow a court to take judicial notice at its discretion, whether requested or not."). Judicial notice of factual findings and legal February 11, 2019 Page 6 of 11 conclusions regarding substantially similar allegations involving the same parties promotes consistency and judicial economy. While the Board is not bound to the above statutory rules of evidence and legal findings permitting notice of facts and law, it is our opinion that it is appropriate and "fundamentally fair" for the Board to follow clear, established Montana law permitting tribunals to take notice of prior factual findings and legal conclusions. The COPP's decision fully considered the same factual issues and conduct put at issue by the remaining claims of Mr. Koopman's Ethics Complaint. The COPP's consideration of the same conduct, evidence, and factual issues resulted in a determination that there was no evidence that City employees or officials engaged in advocacy for the Bond on public time or with public resources. COPP Dismissal, pp. 26-27; see also Findings of Fact Nos. 3-4, 7, 11, 15, 16- 17, 19-22, 26, 28, 35, and 37, COPP Dismissal, pp. 2-13. These factual findings should be applied here in the interests of consistency and economy. Furthermore, the Board is presently considering the same conduct that the COPP has previously adjudicated. Montana law favors a definite end to litigation and disfavors serial litigation of the same issue. See Baltrusch v. Baltrusch, 2006 MT 51,~ 15, 331 Mont. 281, 288, 130 P.3d 1267, 1273. Specifically, the judicial doctrine known as "collateral estoppel" or "issue preclusion" seeks to prevent "litigants from reopening all questions essential to the judgment which were determined by a prior judgment." Baltrusch, ~ 18. This doctrine serves to "conserve judicial resources, relieve parties of the expense and vexation of multiple lawsuits, and foster reliance on adjudication by preventing inconsistent decisions." Brilz v. Metro. Gen. Ins. Co., 2012 MT 184, ~ 18, 366 Mont. 78, 85, 285 P.3d 494, 499. Accordingly, the Board should respect the COPP's factual findings and legal conclusions regarding issues that were previously considered by the COPP and that are also raised by Mr. Koopman's Ethics Complaint. Application of the COPP's findings and decisions here will likewise promote consistency and efficiency. Issue preclusion specifically bars relitigation when 1) the identical issue raised was previously decided by a prior adjudication; 2) when a final judgment on the merits was made in the prior adjudication; 3) when the party against whom issue preclusion is asserted was a party in the prior adjudication; and 4) when that party was also afforded a full and fair opportunity to litigate the issues which may be barred. /d. at~~ 18, 24 ("[W]e conclude that it is appropriate to accord finality to an earlier judgment which contains findings of fact that definitively resolve all of the new allegations and legal theories included in the later complaint.").s Issue preclusion "also prevents relitigation of determinative facts which were actually or necessarily decided in a prior action." Baltrusch, ~ 25. Importantly, issues may be "identical" if "the 'issues are so intertwined that to decide the issue before it, It is important to note that the preclusion doctrines have been applied to administrative decisions as well. See, e.g., B & B Hardware, Inc. v. Hargis Indus., Inc., 135 S. Ct. 1293, 1303 (2015) (United States Supreme Court holding that "'[w]hen an administrative agency is acting in a judicial capacity and resolves disputed issues of fact properly before it which the parties have had an adequate opportunity to litigate, the courts have not hesitated to apply res judicata to enforce repose."'); see also Restatement (Second) of Judgments§ 83 (1982). February 11, 2019 Page 7 of 11 the Court would have to rehear the precise issue previously decided.'" Baltrusch, 1f25, citing Martelli v. Anaconda-Deer Lodge County, 258 Mont. 166, 169, 852 P.2d 579, 581 (1993). Issues may be "identical if the subject matter of the legal theories or factual assertions of the second case issues is 'related and relevant to the issues that were litigated and adjudicated previously."' Montana Envt/. Info. Ctr. v. Montana Dep't of Envtl. Quality, 2016 MT 9, 1f21, 382 Mont. 102, 111, 365 P.3d 454, 461. This can include the relitigation of facts previously decided. /d. at 1f24. The principle of issue preclusion weighs strongly in favor of taking notice of, and adopting the COPP's findings of fact and legal conclusions, and dismissing Mr. Koopman's Ethics Complaint due to the identical legal questions, parties, and factual issues. First, the issues considered by the COPP's Dismissal are substantively identical to the issues raised by Mr. Koopman's Ethics Complaint. This is because consideration of Mr. Koopman's Ethics Complaint would require relitigation of factual findings previously made by the COPP. The COPP determined, considering the same conduct put at issue by Mr. Koopman's Ethics Complaint, that City employees and the City officials knew the line between advocacy and education and respected it. The COPP likewise determined that no evidence refuted the sworn statements of City employees and the City officials. These factual determinations should not be re-litigated. The Board should instead adopt the COPP's findings that the City officials respected the line between advocacy and education and did not engage in improper advocacy on public time or using public resources. Similarly, the legal issues raised by Mr. Koopman's Ethics Complaint under§ 2-2-121 (3), MCA, are substantively identical to the legal issues considered by the COPP's Dismissal under § 13-35- 226( 4 ), MCA. Section 2-2-121 (3), MCA, provides, in relevant part: (3) (a) Except as provided in subsection (3)(b), a public officer or public employee may not use public time, facilities, equipment, supplies, personnel, or funds to solicit support for or opposition to any political committee, the nomination or election of any person to public office, or the passage of a ballot issue unless the use is: (i) authorized by law; or (ii) properly incidental to another activity required or authorized by law, such as the function of an elected public officer, the officer's staff, or the legislative staff in the normal course of duties. (b) As used in this subsection (3), "properly incidental to another activity required or authorized by law" does not include any activities related to solicitation of support for or opposition to the nomination or election of a person to public office or political committees organized to February 11, 2019 Page 8 of 11 support or oppose a candidate or candidates for public office. With respect to ballot issues, properly incidental activities are restricted to: (emphasis added). (i) the activities of a public officer, the public officer's staff, or legislative staff related to determining the impact of passage or failure of a ballot issue on state or local government operations[.] Section 13-35-226( 4 ), MCA, provides in relevant part that: (4) A public employee may not solicit support for or opposition to any political committee, the nomination or election of any person to public office, or the passage of a ballot issue while on the job or at the place of employment. However, subject to 2-2-121, this section does not restrict the right of a public employee to perform activities properly incidental to another activity required or authorized by law or to express personal political views. (emphasis added). Both statutes identically prohibit public employees and officials from soliciting support for or opposition to a ballot issue while on the job or at work. Indeed,§ 13-35-226(4), MCA, incorporates the provisions of § 2-2-121, MCA, regarding this issue. The legal questions at issue in both the COPP's Dismissal and Mr. Koopman's Ethics Complaint involve the same essential questions regarding public employees' and officials' uses of public time and resources to advocate in favor of the Bond issue. Any adjudication of the Ethics Complaint's alleged violations of § 2-2-121 (3), MCA, would necessarily become intertwined with the prior legal analysis of the COPP regarding § 13-35-226(4). It is our opinion that the Board should not engage in relitigation of the same essential legal question decided by the COPP. Second, the COPP issued a final Dismissal after assessing the merits of the allegations in Mr. Koopman's District Court Complaint regarding §§ 13-35-226(4), the allegation which overlaps with the complaints regarding § 2-2-121 (3), MCA, in Mr. Koopman's Ethics Complaint. See COPP Dismissal, pp. 18-28. Third, it is clear that Mr. Koopman is the complaining party in both the COPP Dismissal and the Ethics Complaint here. Finally, it is also clear that the COPP afforded Mr. Koopman a full and fair opportunity to litigate the claims before it. The COPP expressly considered Mr. Koopman's District Court Complaint. See COPP Dismissal, p. 1. The COPP Dismissal further indicates that "[t]he COPP provided a copy of the campaign finance complaint to the parties in the Koopman lawsuit and invited them to provide February 11, 2019 Page 9 of 11 additional information. While the response submitted addressed their position on the campaign finance complaint, no additional evidence or information was provided." COPP Dismissal, p. 13. Considerations of judicial economy, clear Montana law on judicial notice of facts and law, and comity towards the decisions of other Montana tribunals all weigh in favor of taking notice of and adopting the relevant factual findings and legal conclusions of the COPP Dismissal. As a result, it is our recommendation that the Board of Ethics take notice of the findings of fact and conclusions of law contained within the COPP's Dismissal, as well as any related records of the COPP action regarding the City's self-filed complaint. The Board should then apply these factual findings and legal conclusions in its decision on Mr. Koopman's remaining Title 2 claims against the City officials. IV. APPLICATION OF THE COPP'S DISMISSAL TO THE ETHICS COMPLAINT Here, the COPP determined that Mr. Koopman failed to allege facts sufficient to constitute a violation of the substantively identical § 13-35-226(4), MCA. The COPP specifically determined that the available evidence, which included the evidence regarding the City officials, demonstrated that the City, the City officials, and City employees did not use public time or resources to advocate for the Bond. COPP Dismissal, pp. 25-27. The COPP also specifically determined that Mr. Koopman had failed to provide evidence that would controvert the sworn statements, emails, interviews, or documentary evidence, which encompassed the conduct of City officials, in the record before the COPP. /d. The evidence provided that the City officials did not engage in advocacy on public time or with public resources and Mr. Koopman did not provide evidence to the contrary, despite being provided a full and fair opportunity to litigate the issue. /d., Findings of Fact Nos. 3-4, 7, 11, 15, 16-17, 19-22, 26, 28, 35, and 37. The COPP's legal analysis, as explained above, under § 13-35-226(4), MCA, necessarily involved a review of the same City officials' conduct put at issue by the Ethics Complaint's allegations under§ 2-2-121(3), MCA. The COPP determined that the uncontroverted evidence provided by the City regarding the conduct of City employees and City officials demonstrated that the City employees' conduct did not violate§ 13-35-226(4), MCA. The legal question presently before the Board under§ 2- 2-121 (3), MCA, regarding the City officials is substantively identical and requires a review of City officials' conduct that was already the subject of factual findings by the COPP. As shown above, the COPP Dismissal made a range of factual findings regarding the conduct of all the City officials named in Mr. Koopman's Ethics Complaint. These factual findings dealt with the very conduct at issue in Mr. Koopman's Ethics Complaint: whether the City officials improperly used public resources or time to advocate for the Bond. The COPP then determined, based in part on these factual findings regarding the City officials' conduct that City employees and officials were aware of the line between impressible advocacy and permissible education and acted in conformity with this line. COPP Dismissal, pp. 25-26. The COPP specifically noted the lack of any evidence to the contrary, despite providing an opportunity for Mr. Koopman to provide additional evidence or information. See COPP Dismissal, p. 26. February 11, 2019 Page 10 of 11 This lack of evidence of any improper advocacy using public time or resources, coupled with the range of evidence provided by the City officials detailing conduct in conformity with Montana law, in our opinion requires dismissal of Mr. Koopman's allegations in his Ethics' Complaint. While, the COPP declined to extend its ultimate legal conclusions to include the City officials or Mr. Koopman's claims under § 2-2-121, MCA, just like with the City employees, the COPP's factual findings show that there is no evidence that the City officials engaged in improper advocacy. COPP Dismissal Findings of Fact Nos. 3-4, 7, 11, 15, 16-17, 19-22, 26, 28, 35, and 37. Instead, the COPP's factual findings demonstrate that the City officials engaged in advocacy on personal time using personal resources. /d. Importantly, to date Mr. Koopman has not controvert these factual findings, which instead affirmatively demonstrate that the City officials complied with § 2-2-121 (3), MCA, by respecting the line between advocacy and education. /d. Under City code, the Board, after giving due consideration to a complaint, with or without a hearing, may dismiss an ethics complaint if it "does not allege facts sufficient to constitute a violation of this division or a violation of title 2, chapter 2, part 1 of the Montana Code Annotated." Sec. 2.03.640(M)(1)(a), BMC. The BMC also permits the Board to dismiss complaints, after due consideration with or without a hearing, that are "defective in any manner which results in the board being unable to make any sound determination[.]" Sec. 2.03.640(M)(1)(d). Further, the BMC empowers the Board to dismiss a complaint if "no violation of this division or a violation of title 2, chapter 2, part 1 of the Montana Code Annotated (MCA 2-2-101 et seq.) has occurred[.]" Sec. 2.03.640(M)(2). Here, the Board may take notice of, adopt, and apply those factual findings regarding the City officials' conduct under the substantively identical § 2-2-121 (3), MCA. In applying the COPP Dismissal to the remaining allegations of the Ethics Complaint, it is also our recommendation that the Board dismiss the Ethics Complaint's remaining claims against the City officials for alleged violations of§ 2-2- 121 (3), MCA. Consistency and respect for the COPP's prior adjudication of the same facts under a substantively identical law requires a similar dismissal of the remaining claims of Mr. Koopman's Ethics Complaint. We accordingly recommend that the Board dismiss the entirety of the remaining allegations of the Ethics Complaint because: 1) Mr. Koopman's Ethics Complaint failed to allege facts sufficient to constitute a violation of either the Bozeman Code of Ethics or § 2-2-121(3), MCA; and 2) the uncontroverted available evidence shows that the City officials did not violate either the Bozeman Code of Ethics or§ 2-2-121 (3), MCA. We would further suggest consideration of the following motion at the meeting: "I move that the Board dismiss the remaining portions of Mr. Koopman's December 12, 2018, Ethics Complaint." February 11, 2019 Page 11 of 11 V. PROPOSED FINDINGS Should the Board agree with our recommendations , we suggest the Board incorporate the attached findings (Exhibit B) in addition to any oral findings entered into the record by the Board at the February 20, 2019, meeting on Mr. Koopman's Ethics Complaint. Thank you for allowing us the opportunity to continue our review of this matter and offer our analysis . We look forward to answering any additional questions you may have at the February 20 meeting on this matter. Sincerely Yours, Encls. C/o City Clerk Robin Crough (via email RCrouqh@BOZEMAN.NET) 1 Jordan Crosby From:Jordan Crosby Sent:Monday, February 04, 2019 3:26 PM To:Christopher Gallus; John M Newman (jnewman@boonekarlberg.com); ashaw@brownfirm.com Cc:Robin Crough; Jim Zadick Subject:Koopman Complaint Dear Mr. Gallus, Mr. Newman, and Mr. Shaw:    In light of last week’s COPP findings, the City of Bozeman Board of Ethics is scheduling a meeting for February 20, 2019,  at 5:00 p.m., in the City Commission Room, at City Hall, to further take up Mr. Koopman’s complaint.      I will be providing the Board with a supplemental written analysis and intend on doing so by the end of this week.  I will  make certain that each of you receive a copy of that analysis.      Additionally, the Board would like to provide your respective parties with the opportunity to provide any additional  written information they would like the Board to consider at the February 20 meeting.  To allow sufficient time for all  materials to be included with the Board agenda and provide sufficient public notice, please provide via email any  materials you wish by February 14, 2019, 12:00 p.m. to City Clerk, Robin Crough at RCrough@BOZEMAN.NET.    In the meantime, should you have any additional questions, please let me know.    Jordan      Jordan Y. Crosby UGRIN ALEXANDER ZADICK, P.C. #2 Railroad Square, Suite B P.O. Box 1746 Great Falls, MT 59403 Telephone: (406) 771-0007 Facsimile: (406) 452-9360 www.uazh.com NOTICE: This communication may contain privileged or other confidential information. If you are not the intended recipient, or believe that you have received this communication in error, please do not print, copy, retransmit, disseminate, or otherwise use the information. Also, please indicate to the sender that you have received this e-mail in error and delete the copy you received. Thank you.   EXHIBIT A 1 EXHIBIT B BOARD OF ETHICS FINDINGS AND CONCLUSIONS DECEMBER 12, 2018, ROGER KOOPMAN COMPLAINT In addition to the oral findings entered into the record by the Board of Ethics for the City of Bozeman (hereafter “the Board”) at the public meetings on January 24 and February 20, 2019, and pursuant to Section 2.06.640.M.5 of the Bozeman Municipal Code (“BMC”), the Board makes the following findings and conclusions regarding the December 12, 2018, Ethics Complaint by Roger Koopman: 1. Montana law provides that where a local government has established a panel to review complaints alleging violations of Title 2, chapter 2, part 1 of the Montana Code Annotated (hereafter “Montana Code of Ethics”), that panel “shall review complaints and may refer to the county attorney complaints that appear substantiated.” See § 2-2-144(5)(a), MCA. 2. Bozeman City Charter establishes an independent Board of Ethics. The Board reviews ethical complaints alleging that city public officials or public employees violated the Montana Code of Ethics or violated Bozeman’s Code of Ethics (Article 3, Division 4, BMC). See Secs. 2.03.600.A.3 and 2.03.640.E & .M, BMC. 3. Montana law accordingly directs that the City must establish rules and procedures applicable to the Board. See § 2-2-144(5)(a), MCA. The City has done this in Section 2.03.600, BMC, which outlines the Board’s authority, and Section 2.03.640, BMC, which summarizes the procedures for review of complaints. 4. On December 12, 2018, Roger Koopman served an Ethics Complaint on the Board alleging violations of § 2-2-121(3), MCA, by the “City, city commissioners, and at their direction, or with their approval, numerous public employees.” Ethics Compl., p. 1. He adopts in support of his Ethics Complaint, a lengthy civil “Complaint for Declaratory Judgment, Statutory Relief, and Attorneys [sic] Fees” filed in DV-16-2018-1215C (hereafter “Civil Complaint”), which he has filed before the Montana Eighteenth Judicial District Court, Gallatin County. Mr. Koopman argues that his civil action contains his assertions that the City officials and employees violated § 2-2-121(3), MCA, while engaging in acts connected to the recently concluded bond issue election. 5. On January 11, 2019, pursuant to Section 2.03.640.D, BMC, the Board’s legal counsel issued their preliminary written analysis. On February 11, 2019, the Board’s legal counsel issued a supplemental written analysis. 2 EXHIBIT B 6. The Board held public meetings on January 24, 2019 and February 20, 2019, to address Mr. Koopman’s Ethics Complaint. The affected parties to the Ethics Complaint were invited to attend and also allowed the opportunity to file written information. Public comment was also taken at both meetings. A. Preliminary Procedural Matters 7. Initially, in his Ethics Complaint, Mr. Koopman raises several procedural issues and conflicts of interest which he argues precludes the Board’s review of his complaint. In requesting relief, Mr. Koopman requests that the Board refuse to accept his complaint and suggests that the Board directly refer the complaint to the Gallatin County Attorney or, if other alternatives must be exhausted, to have the ethics determination be made in conjunction with the campaign finance issues. 8. Mr. Koopman questions the City Attorney’s involvement in the process because he contends the City Attorney provided underlying legal advice on the topics at issue in his complaint and thus cannot also serve as advisor to the Board. Mr. Koopman’s complaint regarding the City Attorney’s alleged conflict of interest in serving as the Board’s legal advisor is moot and has already been addressed by the December 17, 2018, retention of the law firm of Ugrin Alexander Zadick, P.C., to serve as the Board’s legal counsel. 9. Mr. Koopman’s Ethics Complaint also generally asserts that the Board’s system is not designed to handle complaints implicating a majority of City officials who “play vital roles” in how the Board exercises its authority and thus creates a conflict of interest in the Board’s review of his complaint which further supports the Board’s preclusion in reviewing his complaint. Montana law specifically empowers the Board to hear ethical complaints regarding City officials and employees. See § 2-2-144(5), MCA. Montana law further provides for separation between the Board and City government by mandating that “[t]he members of the panel may not be officers or employees of the local government.” Id. Montana law likewise mandates that ethics complaints against City officers or employees first be made to the Board. Id. It is thus proper for the Board to review and decide this Ethics Complaint. 10. Mr. Koopman’s Ethics Complaint also implicates Board Member Carson Taylor’s involvement with BCFS and argues such relationship creates a conflict of interest in the Board’s review of his Ethics Complaint. Pursuant to City policies and procedures regarding potential conflicts of interest, and because of his involvement with BCFS and Mr. Koopman’s allegations regarding BCFS, at each meeting in which the Board took up Mr. Koopman’s complaint, Mr. Taylor recused himself from the Board’s discussion and consideration. 11. Mr. Koopman also requested that the Board forgo any review of his complaint and instead refer it directly to the Gallatin County Attorney to proceed. This request, however, is not appropriate pursuant to Montana law. Referral to the County Attorney is not mandatory, and only discretionary. See § 2-2-144(5)(a), MCA. State law clearly allows for the Board to take other actions and City code provides for other actions. 3 EXHIBIT B 12. Additionally, state law provides that the Board may only refer complaints to the county attorney “that appear to be substantiated.” See § 2-2-144(5)(a), MCA; see also Sec. 2.03.640.M.4.d, BMC (providing the Board may “[r]efer the complaint, if it appears to be substantiated, to the county attorney….”). Thus, state law and BMC require that the Board must first establish the existence or truth of the facts alleged by competent evidence and verify the allegations before referral can occur. B. Board Jurisdiction 13. As an initial threshold matter, the Board must address the issue of its jurisdiction over the legal claims and parties as alleged by Mr. Koopman. 14. The Board’s jurisdiction is defined by Montana law and Bozeman City code and is limited to hearing ethics complaints related to alleged violation(s) of the Bozeman Code of Ethics and/or Montana Code of Ethics. See § 2-2-144(5)(a), MCA; Secs. 2.03.600. A.3 and 2.03.640.E, BMC. 15. Mr. Koopman’s Ethics Complaint asserts violation of § 2-2-121(3), MCA, and his Civil Complaint, which he has incorporated in support of his Ethics Complaint, makes additional claims for violations of §§ 13-35-226 and 13-37-210, MCA. Sections 13-35-226 & 13-37-210 fall within Title 13, Elections, of the Montana Code Annotated, and Title 13 is beyond the authority and jurisdiction of the Board. The Board only has the authority to review Mr. Koopman’s claims regarding alleged violations of § 2-2-121(3), MCA and Mr. Koopman’s claims and allegations regarding alleged violations of Title 13 are dismissed for lack of jurisdiction. See Sec. 2.03.640.M.1.b, BMC. 16. Mr. Koopman’s Ethics Complaint alleges violations “by the City, city commissioners, and at their direction, or with their approval, numerous public employees.” Ethics Compl., p. 1. He also adopts for further support his Civil Complaint which names as defendants the City of Bozeman; Cyndy Andrus, Mayor; City Commissioners; John and Jane Doe 1 through 30 public employees/officials; and Nest Collective, LLC (hereafter “Nest”). More particularly, paragraphs 34 through 39 of the Civil Complaint, identifies the defendants to Mr. Koopman’s litigation as the City of Bozeman, Mayor Cyndy Andrus, Commissioners Chris Mehl, Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy, Nest Collective, LLC (“Nest”), and John and Jane Does 1 through 30 as City public officials and employees “actively involved in the City’s advocacy efforts supporting the bond and political committee.” 17. The Bozeman Code of Ethics and the Montana Code of Ethics limit their application to individuals—either public employees or public officials. Mr. Koopman’s Ethics Complaint asserts it is brought against the City of Bozeman. The City is neither a public employee nor a public official under the Montana Code of Ethics or Bozeman Code of Ethics. See § 2-2-102, MCA; Sec. 2.03.480, BMC. Because the City of Bozeman is not a public official or a public employee, the Board does not have the jurisdiction to consider claims made by Mr. Koopman against the City generally, and those claims are dismissed. See Sec. 2.03.640.M.1.b, BMC. 4 EXHIBIT B 18. Mr. Koopman alleges ethical violations against the Nest, a Montana limited liability corporation claiming it became a public employee when it entered into a contract with the City of Bozeman as an independent contractor and was engaged by the City to oversee the activities of the City’s incidental committee and educational campaign. The Board, however, lacks jurisdiction over the Nest because the Nest is neither a public employee nor a public official of the City of Bozeman. The Board thus dismisses the allegations regarding the Nest for lack of jurisdiction. See Sec. 2.03.640.M.1.b, BMC. 19. Mr. Koopman’s Ethics Complaint generally alleges violations against “numerous public employees” and his Civil Complaint which he has incorporated therein, names “John and Jane Does 1 through 30 [which] are public officials and employees of the City of Bozeman who were actively involved in the City’s advocacy efforts supporting the bond and the political committee. With particularity, they are any and all public employees contained on any of the campaign finance reports filed with CoPP.” Civil Compl., ¶ 39. The Civil Complaint thereafter broadly alleges that unnamed City “employees spent public time and funds directly and created and supported a political committee,” that unnamed Bozeman employees engaged in improper advocacy, that unnamed Bozeman employees engaged in improper coordination, and unnamed employees improperly provided funds in support of the bond issue. See, e.g., Compl., ¶¶ 55, 63, 78, 114, 125, and 137. 20. The use of fictitious defendants is not appropriate in ethics complaints filed before the Board. City procedures require that ethics complaints be stated with sufficient legal and factual support. See Sec. 2.03.640.B, BMC. Mr. Koopman’s Ethics Complaint and Civil Complaint’s make only general references to “public employees” and otherwise lacks specificity regarding which Bozeman employee’s conduct is at issue, what specific conduct by that employee is at issue, or what conduct constitutes an alleged violation. 21. The failure to specifically identify accused employees does not allow for proper or sufficient notice and opportunity for the accused to respond which is required by Bozeman code. See Secs. 2.03.640.C, 2.03.640.E.2, and 2.03.640.H, BMC. Thus, general references to “numerous” and “fictitious” public employees does not provide sufficient information to allow proper notice and due process procedures to occur. 22. The Board is empowered to dismiss a complaint if it “does not allege facts sufficient to constitute a violation” or if the complaint “is defective in a manner which results in the board being unable to make any sound determination[.]” See Sec. 2.03.640.M.1.a & .d, BMC. Accordingly, the Board dismisses the claims asserted against the unnamed “numerous public employees” and against the “John and Jane Does 1 through 30” non-party Bozeman employees. 23. Based on the foregoing findings, the only individuals to which specific allegations have been asserted by Mr. Koopman are to those City officials and employees named as parties in his Civil Complaint: Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy. 5 EXHIBIT B C. COPP Review 24. In his Ethics Complaint, Mr. Koopman suggests that determination of his ethics claims be made in conjunction with the campaign finance issues he has raised. Ethics Compl., p. 3. 25. On December 3, 2018, the City of Bozeman, by and through its counsel of record, self- reported Mr. Koopman’s civil litigation to the Office of the Commissioner of Political Practices (“COPP”) by filing a copy of his Civil Complaint with the Commissioner. 26. Mr. Koopman’s COPP Complaint and Mr. Koopman’s December 12, 2018, Ethics Complaint raise the same fundamental allegation that the City, City employees, and City officials, including Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy, allegedly engaged in improper advocacy in support of the Bond while on public time and with public resources. 27. Mr. Koopman’s complaints in district court, before the COPP, and before this Board are all rooted and arise out of the November 2018 election in which approval was sought for the sale of bonds for the construction costs for the Bozeman Public Safety Center. These claims arise out of alleged campaign practice violations, the facts underlying Mr. Koopman’s complaints are interwoven, and the COPP action was at a more advanced stage. Accordingly, at the January 24, 2019, meeting, the Board decided to give deference to the COPP review, and stay further proceedings on the remaining portions of Mr. Koopman’s Ethics Complaint pending the issuance of COPP’s findings. See Sec. 2.06.640.M.4, BMC. 28. The Board held that following the issuance of the COPP findings, at the Board’s next regular meeting, or within 30 days, whichever is sooner, the Board would then meet and further review and consider Mr. Koopman’s Ethics Complaint. 29. The COPP issued a Dismissal on the City’s complaint on January 28, 2019. Thus, the Board scheduled a meeting to further review and consider Mr. Koopman’s Ethics Complaint for February 20, 2019. 30. The COPP’s decision considered and dismissed, as relevant here, Mr. Koopman’s claims alleging that City employees violated § 13-35-226(4), MCA, by using public time and resources to advocate for passage of the Bond. The COPP specifically concluded, from a review of emails, affidavits, interviews, financial reports and other documentary evidence submitted by the parties, that “no City employees used public time or resources to advocate for the BPSC[.]” COPP Dismissal, p. 34. 31. The COPP’s consideration of Mr. Koopman’s campaign finance complaint involved the review of evidence, including from affidavits, emails, documentary evidence, committee financial reports, and interviews, that concerned the conduct of Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and 6 EXHIBIT B Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy. The COPP’s factual findings regarding the conduct of Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy demonstrated that none of the parties engaged in improper advocacy for the Bond on public time or with public resources. 32. The COPP provided Mr. Koopman with a full and fair opportunity to address or rebut this evidence. Mr. Koopman did not provide evidence that refuted either the sworn statements of Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy or the evidence uncovered by the COPP’s investigation. 33. The COPP concluded that Mr. Koopman failed to provide evidence that the City or City employees engaged in improper advocacy concerning the Bond. The COPP instead concluded that the available evidence showed that any advocacy efforts by the City or City employees were undertaken on personal time utilizing personal resources. The COPP accordingly dismissed Mr. Koopman’s claims that the City and City employees engaged in improper advocacy under § 13-35-226(4), MCA. 34. Section 2-2-121(3), MCA, forms the basis of the remaining claims of Mr. Koopman’s Ethics Complaint against Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy. Section 2-2-121(3), MCA, is substantively identical to § 13-35-226(4), MCA. 35. The Board may take notice of the COPP’s factual findings and legal conclusions. The Board may adopt and apply the COPP’s factual findings and legal conclusions that involve the same parties, facts, and issues presented by Mr. Koopman’s Ethics Complaint. The Board should not engage in relitigation of factual or legal issues previously determined by the COPP. 36. The uncontroverted evidence shows that Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy knew and respected the line between advocacy and education. 37. The uncontroverted evidence shows that Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy did not engage in advocacy in support of the Bond on public time or with public resources. 38. Respect for the COPP’s analysis of the same facts under a substantively identical statute requires a determination here that Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy did not violate § 2-2-131(3), MCA. 39. Mr. Koopman’s Ethics Complaint has failed to allege facts sufficient to constitute a violation of either the Bozeman Code of Ethics or § 2-2-121(3), MCA. 7 EXHIBIT B 40. The uncontroverted evidence shows that Mayor Cyndy Andrus, Deputy Mayor Chris Mehl, and Commissioners Jeff Kraus, Terry Cunningham, and I-Ho Pomeroy did not violate either the Bozeman Code of Ethics or § 2-2-121(3), MCA. 41. The Board accordingly dismisses the entirety of the remaining allegations of Mr. Koopman’s Ethics Complaint pursuant to Sec. 2.03.640(M)(1)(a), BMC; Sec. 2.03.640(M)(1)(d), BMC; and Sec. 2.03.640(M)(2), BMC. DATED this _____ day of February, 2019. ___________________________________ ____________________________________ Chairperson Melissa Frost Board Member Mary Jane McGarity