HomeMy WebLinkAbout07-22-09 Board of Ethics MinutesLINKED MINUTES OF THE MEETING OF THE BOARD OF ETHICS
BOZEMAN, MONTANA
July 22, 2009
Please Note: The audio recording of this meeting is available. These minutes are not word for
word and should be considered in addition to the audio of the meeting.
The Board of Ethics of the City of Bozeman met in the Commission Room, City Hall at 121
North Rouse on Wednesday, July 22, 2009. Present were Board members Melissa Frost, Rodger
McCormick and Stephen Schultz, as well as City Manager Chris Kukulski, City Attorney Greg
Sullivan, City Clerk Stacy Ulmen and Deputy City Clerk Aimee Kissel.
0:00:24 A. Meeting Called to Order
Stacy Ulmen, Bozeman City Clerk called the first meeting of the Board of Ethics to order on July
22, 2009 at 7:02 p.m.
0:00:34 B. Election of Presiding Officer
Stacy Ulmen informed board members that the first point of business was the election of a
presiding officer. After discussion, all three members volunteered for the position. Since an
election would result in a three way tie, the board chose to randomly select the presiding officer
by having City Attorney Greg Sullivan choose a name from a cup. The person thus chosen was
Melissa (Mel) Frost.
0:04:40 Motion and vote to elect Melissa Frost as the Presiding Officer of the Board of
Ethics.
It was moved by Stephen Schultz, seconded by Rodger McCormick to appoint Melissa
Frost as the presiding officer of the Board of Ethics.
Those voting Ave being Mr. Schultz, Mr. McCormick and Ms. Frost.
Those voting No being none.
The motion passed 3-0.
0:06:09 C. Public Comment
Mel Frost opened public comment.
Minutes of dhe Board of Ethics, July 22, 2009
No person commented.
Mel Frost closed public comment.
0:06:53 D. Information from the City Clerk and Attorney regarding noticing
requirements and City staff resources
0:07:30 Chris Kukulski, City Manager
Mr. Kukulski introduced himself to the Board members and let them know that the City is very
interested in running a professional, ethical organization. The process and set of procedures that
the Board will set up will provide a way to determine whether a complaint is valid or not as well
as a positive way to continue to raise the bar in the organization. Mr. Kukulski let the board
know that he and other staff members will be very accessible to the Board. Mr. Kukulski asked
board members if they had questions for Mr. Kukulski.
0:10:37 Mel Frost
Ms. Frost asked whether the formation of the board was designated by State Law or the charter.
0:10:41 Greg Sullivan, City Attorney
Mr. Sullivan explained that the Bozeman City Charter requires an ethics board and that they have
to implement the ethics requirements in the charter through an Ordinance. There is nothing in
state law that requires that local governments form an ethics board, rather it was mandated by the
Charter, the Cities' Constitution. It was placed in the Charter by the Local Government Study
Commission.
0:11:32 Chris Kukulski, City Manager
Mr. Kukulski explained the process that the Local Government Study Commission went through
working with staff to revise the City Charter and in particular the addition of the Ethics
component in that Charter. He also explained that the Ethics portion applies to both City
employees as well as elected officials.
0:13:05 Greg Sullivan
Mr. Sullivan clarified that State law doesn't mandate the creation of an ethics board but rather
authorizes it.
0:13:24 Stephen Schultz
Mr. Schultz asked for confirmation that the Board is a passive body that will wait until a
complaint comes in and that the board has two roles -one role being a reporting role and the
other as an investigative body.
0:14:25 Mr. Kukulski
Mr. Kukulski agreed that there is two roles. One would be setting the standards, the pro-active
role. Once that has been established it does fall into more of a mode of responding.
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0:15:35 Greg Sullivan
Mr. Sullivan explained how he understands the two roles explaining the Legislative role first,
which asks things such as, is this Ordinance a good way to implement things and establishes a
process to systematically evaluate all aspects of the administration and implementation of the
Chapter. This role also looks at rules within the Ordinance and makes recommendations to the
City Commission for amendment to the Ordinance. Within the legislative role is a training
aspect, a handbook to be created, a disclosure form to review, looking at the Ordinance then
when that is all in place making sure it is all working right and responding when necessary.
The other aspect is judicial where the Board takes on the role of a judge.
0:16:58 Stephen Schultz
Mr. Schultz asked if the Board of Ethics would be involved in the ethics training offered to
Board members and employees.
0:17:04 Mr. Sullivan
Mr. Sullivan responded that yes, the Board of Ethics would be involved in the training.
0:17:12 Mr. Kukulski
Mr. Kukulski explained that the training and the financial disclosure statement form were
handled by city staff up to this point because it took so long to get the Board going and the City
did not want to delay those items any longer. The financial disclosure statement has been written
by staff but Mr. Kukulski asked the Board of Ethics whether they wanted time to review the form
and possibly make changes or whether they would like staff to go forward with submitting the
form to the Commission for approval to begin use of the form right away with the idea that the
Board could make changes as necessary later.
0:19:13 Mr. Sullivan
Mr. Sullivan explained that the Board of Ethics would not be responsible to actually conduct the
training because there are lots of great resources available such as the Local Government Center
who conducted the recent training. Rather, the board would provide input.
0:19:32 Mr. Kukulski
Mr. Kukulski explained that the City will have an opportunity in the spring to host the regional
city manager's group in Bozeman. In about 1915, the International City/County Management
Association (ICMA) created a code of ethics which has become a fundamental part of this
profession. Professionals from Washington DC will come out to conduct training. There will be
times we can take advantage of that type of training and the City is obligated to make sure
resources are budgeted every year for training.
0:20:32 Stephen Schultz
Mr. Schultz asked if it would be recommended or permissible to interview other ethics boards
from other municipalities.
Minutes of the Board of Ethics, July 22, 2009
0:20:48 Mr. Kukulski
Mr. Kukulski stated that contacting other municipalities for their experiences was absolutely
permissible.
0:21:09 Stephen Schultz
Mr. Schultz asked how research and contacting other municipalities would take place.
0:21:09 Mel Frost
Ms. Frost spoke regarding assigning themselves certain tasks and was thinking that they should
look at what's already out there in respect to the ethics handbook to be created.
0:21:47 Stephen Schultz
Mr. Schultz asked whether there were already complaints that would need to be dealt with right
away by the Board.
0:22:00 Mr. Kukulski
Mr. Kukulski said there were not.
0:22:06 Mel Frost
Ms. Frost asked if there had been ethics complaints in the past.
0:22:08 Greg Sullivan
Mr. Sullivan said there have been questions that have come to the City Attorney's office.
0:22:52 Mr. Kukulski
Mr. Kukulski explained that the City is on our third attorney in the last 18 months since Paul
Luwe retired. The Ethics Ordinance went through all three of those attorneys.
0:23:49 Mr. Kukulski
Mr. Kukulski explained that you don't have to re-invent the wheel, but we do like to set the bar
instead of just follow it. However, we often look at what other Cities have and see how it might
fit our needs and be modified for our use. Sometimes we target the 25 - 50,000 population
range, or college towns, looking at municipalities that have similarities.
0:25:49 Stephen Schultz
Mr. Schultz asked if there are other towns that you benchmark regularly.
0:26:00 Mr. Sullivan
Mr. Sullivan said not necessarily. In the law office sometimes look at Missoula in Billings.
0:26:15 Mr. Kukulski
Mr. Kukulski said there are other things we might look to Bend, OR, Flagstaff, AZ or Fort
Collins, CO. For each thing, there's a different set out there. There are some towns that look to
us especially regarding planning issues.
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Minutes of the Board of Ethics, Julp 22, 2009
0:27:34 Mr. Sullivan
Mr. Sullivan re-iterated that any of that is just a start. Requirements (for a financial disclosure
form are located within the) Charter in article 7, section 7.01 under the statement about conflicts
of interest and has a mandate within saying, "The Ordinance shall provide for reasonable public
disclosure of finances by officials with major decision-making authority over monetary
expenditures and contractual and regulatory matters." As a result of the Charter, you can then
refer to Ordinance (1759), Section 2.01.100, a section regarding financial disclosure statements.
0:29:46 Stephen Schultz
Mr. Schultz felt some trepidation regarding the financial disclosure statement when he listened to
the audio from the commission meetings where it was discussed. A discussion then took place
about the ambiguity of the meaning of words such as reasonable and major financial decision-
maker.
0:31:20 Mr. Kukulski
Mr. Kukulski explained that one area of targeted communities for comparison is high growth
areas. Asking things like, what conflicts has there been between Commissioners, the Planning
Board and city officials.
0:32:06 Mr. Sullivan
The financial disclosure statement form that City officials created was handed to Board members
and discussed.
0:32:18 Mel Frost
Ms. Frost was pleased to see that city employees had come up with this form.
0:32:32 Mr. Sullivan
The finance director and personnel director have been working on who will be covered by this
form so they can tell the City Clerk's office who must fill this out. The Ordinance lists out some
of the folks who are considered decision makers. Mr. Sullivan went through this list. 'Other
major financial decision-makers' was not defined in the Charter or Ordinance. And then there's a
statement that says 'may include the library board and Parking Commission.' The Business
Improvement Districts and TIF Boards may also need to be included. The City has determined
that those who are major financial decision makers within the organization are those who sign
off on claims.
0:35:46 Mr. Kukulski
Mr. Kukulski said that a positive benefit of this requirement has been narrowing down the scope
of people who can sign off on claims. All claims have always needed two signatures, one who
has claim approval authority and one who just witnessed that the item was received.
0:38:39 Mr. Kukulski
Responding to a question from Ms. Frost, Mr. Kukulski stated that the forms would ultimately be
Minutes of the Board of Ethics, July 22, 2009
a publicly accessible document. The State of Montana requires a disclosure form for elected
officials, so the finance director and personnel director borrowed that form and modified it to fit
the Cities needs. Sometime soon the Board of Ethics needs to decide whether they would like
the City to go forward with this form as is so it can be implemented sooner rather than later and
then make changes to the form at a later date or whether the Board would like time to look the
form over and make some changes now. The City just didn't want to be dragging their feet on
this issue.
0:40:34 Stephen Schultz
Mr. Schultz asked whether there would be any funds spent or approved by this Board.
0:40:42 Mr. Sullivan
Mr. Sullivan explained that (the Board of Ethics) would not have claims authority.
0:40:54 Mr. Kukulski
Mr. Kukulski explained that the Board does have funding for training and funding for effectively
and efficiently doing Board business within the Ordinance.
0:41:28 Ms. Frost
Ms. Frost began a discussion with Board members regarding what they would like to do as far as
the financial disclosure form.
0:42:02 Mr. Kukulski
The City will either need to tell the Commission soon that the Ethics Board has not weighed in
yet and get going, or we could tell them they'd like to hold off 30 to 60 days because they'd like
to weigh in. Ideally a year from now, the Ethics Board would recommend to the Commission
the adoption of the financial disclosure form and then they would have the power to make any
changes.
0:43:35 Mr. Sullivan
This could possibly be placed on the board agenda for next month (meeting) and the item would
say, 'Decision on recommendation to City Commission regarding financial disclosure form'.
0:44:59 Ms. Frost
Ms. Frost asked whether the Board can have discussions regarding items that are not specifically
on the agenda.
0:45:15 Mr. Kukulski
Mr. Kukulski explained that if an item is not at all on the agenda and action is being taken
someone later will be disgruntled. Giving direction and hashing things out are okay. The tighter
you have things to the agenda the better.
Minutes of the Board of Ethics, July 22, 2009
0:45:59 Mr. Kukulski
Mr. Kukulski spoke regarding a few views of staff regarding the form and then the positive
aspect of the form from an ethical standard.
0:47:15 Mr. Schultz
Mr. Schultz asked what the consequence is procedurally for someone who does not fill the form
out.
0:47:17 Mr. Sullivan
Mr. Sullivan explained that would be a violation of the Ordinance. Someone would probably
need to file a complaint first, but not ready to determine those steps yet. This question gets back
to how to implement the quasi judicial function of the Board.
0:49:05 Mr. Sullivan
Mr. Sullivan confirmed with Board members that this item should be placed as an item on their
next agenda. He mentioned that they should be contemplating who and what. He pointed out
that there are five different categories listed in the Ordinance regarding what should be disclosed.
The form mirrors the Ordinance.
0:50:16 Mr. Kukulski
Mr. Kukulski has already had questions regarding item 2 on the form and what exactly is
expected to be disclosed on that item. This item may need more clarification.
0:50:49 Mr. Schultz
Mr. Schultz was also questioning that language and brought up what time frames are expected
when disclosing.
0:52:59 Mr. Kukulski
Mr. Kukulski said that in an FYI to the Commission we'll inform them that the Board had its first
meeting and the financial disclosure form will be one of the first things to be tackled. Mr.
Kukulski left the meeting after reiterating that he would be happy to be available whenever
needed for future meetings or contacting him via phone or a-mail and is thankful for the Board.
0:54:37 Ms. Frost
Ms. Frost asked if the Board should attend the Commission meeting if they have
recommendations to go before the Commission.
0:54:55 Mr. Sullivan
Mr. Sullivan explained that members can go through staff but it doesn't hurt if it comes directly
from a member of the Board and they answer questions directly. Answering to a question from
Ms. Frost, he explained it could be one of them, all of them, etc.
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Manures of the Board of Ethics, July 22, 2009
0:55:42 Ms. Frost
Ms. Frost brought up a question regarding when the board can speak about board matters outside
of a meeting since two members is a quorum.
0:55:49 Mr. Sullivan
Mr. Sullivan responded that board members can speak to each other outside of meetings
regarding administrative matters only. Substantive items that you are taking action that is of
significant interest to the public cannot happen outside of meetings, including within e-mails.
Mr. Sullivan explained that staff can help the Board communicate.
0:56:44 Stacy Ulmen, City Clerk
Ms. Ulmen explained that if the Board has items they would like to place on the agenda,
members can contact the City Clerk's office and then staff can contact members.
0:57:04 Aimee Kissel, Deputy City Clerk
Ms. Kissel asked for clarification regarding staff contacting the Board as a whole and received
confirmation from Mr. Sullivan that yes that was acceptable.
0:57:27 Mr. Sullivan
Mr. Sullivan explained that some of the details will be dealt with when the Board creates their
by-laws. He suggested that the Board may want to have a standing item on every agenda such as
establish the next meeting or set agenda for the next meeting. If something comes up later, the
Board member would inform the clerk.
0:58:27 Ms. Ulmen
Ms. Ulmen explained that Ms. Kissel is the board's coordinator and the official posting area for
the agenda is in the foyer outside the Commission room at City Hall and needs to be posted no
later than 48 hours in advance. The agendas are also placed on-line. Ms. Kissel will also be
taking the Board of Ethics minutes. Ms. Ulmen also explained that they will always want to
have on your agenda approval of the prior meetings minutes and they'll need to be signed and the
meetings will also be recorded.
0:59:45 Mr. Sullivan
Mr. Sullivan explained that of all the Boards, this Board needs to set the highest bar and we all
need to be careful of that. There is a lot that we need to go over in the next several meetings to
establish rigid, proper protocol.
1:00:35 Mr. Sullivan
Mr. Sullivan explained that a-mails are public record, and when Board members use their
personal a-mail accounts they become public record. Responding to a question from Ms. Kissel,
Mr. Sullivan said that we could look into the possibility of getting Board members city e-mails.
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Marrutes of the Board of Ethics, July 22, 2009
1:02:05 Ms. Kissel
Ms. Kissel clarified whether the Board could cc each other in a reply back to the clerk's office.
Mr. Sullivan responded that no they could not cc each other, but could only respond back to the
clerk's office.
1:02:45 Mr. Sullivan
Mr. Sullivan explained that the law has not really caught up to the practice of e-mail yet. It is
best to stay clear of any action that could potentially have the perception of impropriety. If you
want a meeting, you can meet more often than not and have even an hour lunch meeting as long
as it is properly noticed.
1:05:13 E. Review of Ordinance No. 1759
1:05:51 Ms. Frost
Ms. Frost began a discussion about the Ordinance and the related events leading up to now.
1:06:22 Mr. Sullivan
Mr. Sullivan explained how the Ethics Ordinance was handled by staff. Mr. Sullivan also spoke
regarding things within the Ordinance he feels should be addressed. In particular, looking at the
prohibition that says that members of an advisory board cannot come before the Commission in a
professional capacity. Mr. Sullivan gave an example where this prohibition causes issues. A
discussion on this topic ensued.
1:12:28 Mr. McCormick
Mr. McCormick responded to a question from Ms. Frost regarding how deeply they would like
to go into a review of the Ordinance tonight, saying he would like a chance to re-read the
Ordinance now that the Board has gotten started.
1:12:43 Ms. Frost
Ms. Frost confirmed that she felt they should have an agenda item on the next meeting to revisit
the Ordinance.
1:12:54 Mr. Schultz
Mr. Schultz spoke to the idea of breaking the Ordinance up into sections for review purposes.
1:13:13 F. Draft and prioritize work plan
Ms. Frost asked for recommendations from Mr. Sullivan regarding areas they should focus on.
1:13:27 Mr. Sullivan
Mr. Sullivan spoke regarding having an understanding from the Ordinance of the powers and
role of the board and what the board is authorized to do. He also suggested Board members
garner an understanding of the Montana Code that is referred to in the Ordinance as that Code is
an important aspect.
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Minutes of dae Boa~~d of E/hits, July 22, 2009
1:16:43 Mr. Sullivan
Mr. Sullivan spoke regarding the importance to talk about a variety of issues including Board
members immunity and how that immunity could be lost, public records, etc.
1:17:36 Mr. Sullivan
Mr. Sullivan responded to comments by Mr. McCormick and Ms. Frost saying that the Board
may want to begin by looking at questions of scope in the Ordinance. With the next meeting
going over conflicts of interest and the powers and duties of the board, section 2.01.130 as a
starting point.
1:18:42 Mr. Sullivan
Mr. Sullivan began a discussion regarding having a strategic planning session.
1:22:12 G. Discuss future meeting dates and times
Ms. Frost began the discussion regarding future meeting dates and times.
1:25:08 Mr. Sullivan
Mr. Sullivan brought up the issue of work load and whether the Board would be handling the
primary work or a staff member would be.
1:25:49 Mr. Sullivan
Mr. Sullivan brought up the issue of how much staff would need to be involved in the details of
drafting the handbook and the time that may or may not need to be invested by staff.
1:26:46 Mr. McCormick
Mr. McCormick spoke to the need to keep the ethics handbook simple and direct.
1:27:06 Ms. Kissel
Ms. Kissel said that the Human Resource Director may be a good resource for the handbook as
well.
1:27:28 Mr. Sullivan
Mr. Sullivan explained that the Ordinance and State Law are already prescriptive so the
handbook will basically be a how to wade through those and who they apply to.
1:28:43 Ms. Frost
Ms. Frost confirmed with the other members after discussion on the topic that meetings every
two weeks for the first year are appropriate.
1:29:48 Ms. Frost
Discussion took place regarding who would be the presiding officer if Ms. Frost was not in
attendance at a meeting. Board members asked Mr. Sullivan to pull a second name out of the
cup with Mr. Schultz and Mr. McCormick's names in it.
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Minutes of the Bom-d of Ethics, July 22, 2009
1:29:49 Mr. Sullivan
Mr. Schultz was pulled from the cup and named as the vice-chair of the Board. Mr. McCormick
would then become secretary and designate deputy city clerk, Ms. Kissel as the secretary on
behalf of the board.
1:30:51 Ms. Kissel
Ms. Kissel brought up the idea of meeting the 2nd and 4th Wednesday of the month as being the
most likely for availability in the commission room.
1:31:33 Ms. Kissel
Ms. Kissel confirmed with the board that they would like to meet the 2nd and 4th Wednesday of
the month with the next several meetings taking place on August 12, and 26th. After discussion,
the board decided to meet at 6 p.m.
1:32:49 Ms. Kissel
Ms. Kissel explained that she would listen to the recording and type up the main points of the
meeting, not word for word and both the recording and text would be made available publicly.
1:33:09 Ms. Frost
Ms. Frost began a discussion on how quickly the turn-around would take for the minutes.
1:33:52 Ms. Kissel
Ms. Kissel explained that she was not sure how long turn around for Board minutes would be
yet.
1:35:08 Mr. Schultz
Mr. Schultz asked whether samples the Board may gather (of other ethics handbooks) should be
made public.
1:35:12 Mr. Sullivan
Mr. Sullivan explained that if they are going to form the basis for a decision the board makes,
they need to be on the record. The official record will be kept in the clerk's office.
1:35:51 Mr. McCormick
Mr. McCormick began a discussion about other Cities with Charters.
1:39:54 Mr. Sullivan
During a discussion on where the board should look first for other cities handbooks, Mr. Sullivan
suggested going to Missoula and Billings first, and then other cities that might surprise you such
as Red Lodge or Lewistown.
1:41:31 Mr. Sullivan
After discussion regarding the need for research, the subject of how much support would be
provided to the board regarding research and other time consuming administrative support. Staff
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Minutes of the Board of Ethics, July 22, 2009
will need to discuss this issue with the City Manager about how responsibilities will be divided
and whether other staff would need to be brought in.
1:42:48 Ms. Ulmen
Ms. Ulmen spoke regarding the clerk's office sending out a request for information on the state
clerk's listserv.
1:43:45 Ms. Kissel
Ms. Kissel brought up using the local government center as a resource.
1:44:37 Mr. Sullivan
Lynn Bacon from the Wetlands Review Board would like to meet with the ethics board at some
point regarding the conflicts of interest portion of the Ordinance.
1:45:21 Ms. Ulmen
Ms. Ulmen asked the Board to forward any public comment received by Board members to the
clerk's office.
1:45:53 Ms. Ulmen
Ms. Ulmen responded to a question from Ms. Frost regarding phone calls from a member of the
public, saying the board member would log the call with the date and time and other pertinent
information.
1:46:00 Mr. Sullivan
Mr. Sullivan explained that if the Board is hearing a complaint, a conversation regarding board
matters with a citizen would not be okay, otherwise talking on the phone with a member of the
public is just fine.
1:46:23 Ms. Kissel
Ms. Kissel iterated that if someone calls a member at home and they do not want to discuss the
issue one on one, the Board member can tell the person to come to the next meeting and speak
during public comment.
1:46:59 Ms. Kissel
Ms. Kissel asked Board members how they would like to be contacted by the public.
1:47:36 Mr. Sullivan
Mr. Sullivan suggested that if the clerk's office should receive a question from the public for the
Board, the clerk's office would then a-mail the chair and the chair could call that person back.
1:47:56 Ms. Frost
Ms. Frost was in agreement with Mr. Sullivan's plan regarding public questions.
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Manutes of tl~e Board of Ethics, July 22, 2009
1:48:52 Mr. Schultz
Mr. Schultz brought up the idea of having a standing agenda item on every meeting for the Board
to share any information received by individuals since the last meeting.
1:49:33 Meeting adjourned at 8:52 p.m.
Ms. Frost adjourned the meeting at 8:52 p.m.
Prepared by:
~--/
Aime Kissel, Deputy City Clerk
Approved on August 12, 2009
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