HomeMy WebLinkAbout08-26-09 Board of Ethics Minutes, approved.pdf R �
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MINUTES OF THE MEETING OF THE BOARD OF ETHICS
BOZEMAN, MONTANA
August 26, 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, August 26, 2009. Present were Board members Melissa Frost,
Rodger McCormick and Stephen Schultz, as well as City Attorney Greg Sullivan and Deputy
City Clerk Aimee Kissel.
A. Meeting Called to Order
Chairperson Melissa Frost called the meeting to order at 6:02 p.m.
B. Public Comment
Melissa Frost opened public comment.
No person commented.
Melissa Frost closed public comment.
C. Approval of Minutes from August 12,2009 Meeting (If completed)
The minutes were not completed.
D. Disclosure of Information or Comments Received
Board members did not have information to disclose.
E. Query City Director of Finance - Anna Rosenberry regarding Financial Disclosure
Statement
Greg Sullivan, City Attorney
Mr. Sullivan began the discussion by explaining to Ms. Rosenberry some of the questions the
Board of Ethics had previously raised that she may be able to help with. Questions include what
type of boards might be subject to the disclosure statement and what types of things may need to
be reported.
Anna Rosenberry, Director of Finance
Ms. Rosenberry provided a summary of her experience related to financial disclosure forms and
the creation of the form the Board is reviewing. She also provided an overview of the history of
the City's ethics Ordinance as it pertains to financial disclosure and meeting the requirements set
out in the Charter. Staff created a disclosure similar to the one the State of Montana requires.
The current version of the Ethic's Ordinance was adopted in May 2009.
Greg Sullivan
Mr. Sullivan brought up a question from the last meeting regarding what types of things would
be required to be disclosed on the form. For example, 401 k plans, holding, being payed now?
Anna Rosenberry
Ms. Rosenberry explained that she feels the spirit of the disclosure is important. Whether the
person disclosing has a personal interest in making sure some other entity is financially
successful. She began a discussion with board members about details within the form.
The board discussed how to interpret the disclosure form questions and how they should be
operationalized as well as discussions that have taken place among staff in trying to draft the
financial disclosure form.
A discussion took place regarding who is a major financial decision maker.
Anna Rosenberry
Ms. Rosenberry explained that city staff keeps looking at who has authorization to approve
claims and some board members do show up on some of those approvals such as the chairperson
of the tax increment finance districts, parking commission and the chair of the library board.
A discussion took place regarding how to determine which boards/people have spending
approval authority and should be required to file a financial disclosure form as well as how
financing is handled with some of the boards and tax increment districts.
Melissa Frost
Ms. Frost asked where the Board should take this form from here.
Greg Sullivan
Mr. Sullivan explained that the Board now needs to look at the form and pass a recommendation
onto the Commission about the form.
A discussion took place reviewing what questions have arisen regarding the form and what areas
the Board may want to provide recommendations.
Anna Rosenberry
Ms. Rosenberry spoke regarding the Park Improvement Grant Program that is assigned to the
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Parks and Recreation Board for award and how expenditures under that program are then paid
through the parks department,
Rodger McCormick
Mr. McCormick began a discussion using the senior center as an example, about how revealing
an interest in a related group does not necessarily mean there is a conflict of interest. Rather,
disclosing just allows for transparency.
Anna Rosenberry
Ms. Rosenberry asked Board members if they would like a list of all the boards with information
on the nine or ten boards which have spending authority and are submitting their own budgets.
A discussion took place regarding how the tax increment finance (TIF) districts budgets and
finances go through the City's regular finance policies, criteria and oversight and are ultimately
approved by the commission. In contrast the Business Improvement Districts (BID) are their
own separate entities, they take the money and it is their responsibility to follow state law and
good financial management practices. The Commission however does approve their budget.
A discussion took place regarding who signs off and reviews claims on these boards. In many
cases, this would be staff members such as the city staff liaisons for the board as well as the City
finance controller and Commission.
A discussion took place regarding the powers of the Library Board and Parking Commission
which hires their own staff and has statutory power.
A discussion took place regarding the difficulties of setting a dollar limit and how to explain why
this limit was chosen. The discussion also included determining which members of a board
should file a disclosure form. Board members also discussed how financial disclosure is actually
a form of protection for board members and is not punitive.
A discussion took place regarding the availability of these disclosure forms to the public once
completed.
A discussion took place regarding how to offer recommendations to the Commission and the
possibility of a discussion with the Commission that would include synapsis of the discussions
the board has been having in working through the issues with financial disclosure.
A discussion took place regarding how to balance the advantages of wide spread full disclosure
to avoid even the perception of a conflict of interest and problems with filling volunteer boards
with passionate, good board members if people are unwilling to file the disclosure forms.
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Greg Sullivan
Mr. Sullivan read the declaration of policy statement within the Ethics Ordinance, feeling these
statements are good to keep in mind while thinking these issues through.
Greg Sullivan
Mr. Sullivan pointed out that once the list of positions required to file a disclosure form are
determined, the advertisements for those board positions or staff positions will advertise this
requirement.
Anna Rosenberry
Ms. Rosenberry brought up that requiring the filing of a financial disclosure form is not unusual
or uncommon within governmental entities and in fact, many of these forms are quite hefty in
terms of what is required to be disclosed.
Board members are in agreement with staff regarding their recommendation on which staff
members would file the financial disclosure form. They also asked for a specific list of what
staff members have signing authority and would be subject to the financial disclosure form.
Board members would like Ms. Rosenberry to provide some sort of draft for members to
examine what items might need to be disclosed on the financial disclosure form such as a 401k,
etc. This list might be added as a memorandum in addition to the form and not on the form itself
and would include general categories.
The Board reviewed which staff would file, including department heads and staff with signing
authority on claims.
The Board discussed statement 5 on the form and the possibility of a geographical limit to
disclosing real property as well as the meaning of`nature of interest in the property' and whether
examples should be given. The Board may be more interested in asking for a description of the
property and its location. Ex: a rental, a vacation home, etc. Excluding disclosure of a personal
residence is a part of the Ordinance.
Greg Sullivan
Mr. Sullivan responded to a question from the Board about timing constraints for Commission
recommendation of this form by saying the most important piece was that the Board is meeting
and moving forward with this item. He suggested staff give the Commission an update on the
Board's progress during the for your information portion of the August 31,t City Commission
meeting.
Anna Rosenberry
Ms. Rosenberry left the meeting.
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F. Decision on recommendation to City Commission regarding financial disclosure
form
The decision on this issue was postponed to a future meeting to gather more information.
G. Possible Discussion regarding Ethics Handbook
Aimee Kissel
Ms. Kissel explained that she contacted Paul Lachapelle with the Local Government Center per
the discussion from the last Board meeting. Mr. Lachapelle is interested in assisting the board
with the ethics handbook. He would request that his name be listed on the publication in some
fashion as one of the authors.
Greg Sullivan
Mr. Sullivan does not have a problem with the handbook having the city logo and listing
something like, "prepared by the City of Bozeman's ethics board in conjunction with Paul
Lachapelle with the Local Government Center" or something similar that Paul was okay with
that did not have the MSU logo.
Aimee Kissel, Deputy City Clerk
Ms. Kissel spoke with Mr. Lachapelle about attending a Board of Ethics meeting in October.
Mr. Sullivan will not be available October 7t1i, so Ms. Kissel asked Board members if they are
willing to change the meeting date to October 6th.
Melissa Frost
Ms. Frost informed the Board that she'll be unavailable from October 54".
The Board decided to tentatively schedule the October meeting for Wednesday, October 14,
2009. Ms. Frost will confirm availability via e-mail.
The Board discussed creation of the by-laws and may just draft those themselves.
H. New Business
Greg Sullivan
Mr. Sullivan explained that as the City went through the password issue for background checks
recently the Commission directed staff to draft a whistleblower anti-retaliation policy. Neither
the employee handbook or ethics code has specific express language protecting whistleblowers
or employees alleging violation of public policy. Mr. Sullivan and other staff members have
been putting together a memorandum for the Commission providing an overview of all the
protections that already exist within different jurisdictions. He then discussed the
recommendations he will be offering to the Commission on August 31, 2009. A draft of some of
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the procedures that will come out of this discussion will likely come before the Board of Ethics
probably in September before it comes before the Commission per the requirements of the Code.
A discussion took place regarding whistleblower policies and issues.
Greg Sullivan
Mr. Sullivan explained that it depends on the direction the Commission provides as to whether
review of a Whistleblower policy should be on the next Board of Ethics agenda.
I. Discuss future agenda topics
A. September 9t" meeting cancelled. Next meeting scheduled for September 23i 1
(Wed.) at 6 p.m.
The board discussed still having Brendan Steele with IT attend the September 23r`t Board
meeting to quickly discuss communication issues at the beginning of the meeting.
The financial disclosure form will also be discussed with a possible recommendation decision
made on September 23rd.
The Whistleblower policies will likely need to be on the next agenda.
J. Adjourn
Melissa Frost adjourned the meeting at 7:44 p.m.
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Melissa Frost, Board Chairperson
Prepared by:
AimA Kissel, Deputy City Clerk
Approved on October 14, 2009.
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