HomeMy WebLinkAboutAgenda - Mail Packet - 7/24/2018 - City Council Ethics Review Board Meeting Agenda - July 25, 2018City o4
Fort Collins
PUBLIC NOTICE
City Attorney's Office
300 Laporte Avenue
PO Box 580
Fort Collins, CO 80522
970.221.6520
970.221.6327
fcgov. corn
Notice is hereby given that the City Council Ethics Review Board will meet on
Wednesday, July 25, 2018, at 3:30 p.m., in the City Attorney's Large Conference Room at City
Hall, located at 300 Laporte Avenue, City Hall West, Fort Collins, Colorado. The purpose of the
meeting will be to discuss and address the following agenda items:
1. Review and Approval of the November 7, 2017 Minutes of the Ethics Review
Board.
2. Consider whether Councilmembers have conflicts of interest in matters
involving: 1) outside bodies they have been appointed to represent the City on; or
2) organizations to which they have donated funds (pursuant to a request under
"Other Business" at the Council meeting on February 20, 2018).
3. Other Business.
4. Adjournment.
As the majority of Council may attend this meeting, the meeting is also being regarded as
a meeting of the City Council for the purposes of this notice.
The City of Fort Collins will make reasonable accommodations for access to City
services, programs, and activities and will make special communication arrangements for
persons with disabilities. Please contact the City Attorney's Office to arrange for such services
at 970-221-6520 or caoadmin@fcgov.com. Auxiliary aids and services are available for persons
with disabilities. V/TDD: Dial 711 for Relay Colorado.
Fort Collins City Attorney
Posted: July 19, 2018
(970) 221-6520
_Fort of
City Attorney's Office
300 Laporte Avenue
PO Box 580
Fort Collins, CO 80522
970.221.6520
970.221.6327
fcgov.com
AGENDA
Ethics Review Board Meeting
City Attorney's Large Conference Room
Garden Level, City Hall (300 Laporte Avenue)
July 25, 2018
(3:30 p.m.)
1. Review and Approval of the November 7, 2017 Minutes of the Ethics Review
Board.
2. Consider whether Councilmembers have conflicts of interest in matters
involving: 1) outside bodies they have been appointed to represent the City on; or
2) organizations to which they have donated funds (pursuant to a request under
"Other Business" at the Council meeting on February 20, 2018).
3. Other Business.
4. Adjournment.
Ethics Review Board Meeting Minutes
November 7, 2017
4:00 p.m.
Members in Attendance: Board members Ray Martinez, Kristin Stephens and Ross Cunniff (as
alternate).
Staff in Attendance: Carrie Daggett, City Attorney; Jeanne Sanford, Paralegal, Tyler Marr, Ginny
Sawyer, City Manager's Office,
Also Present: Kevin Jones, Fort Collins Chamber of Commerce.
A meeting of the City Council Ethics Review Board ("Board") was held on Tuesday, November
7, 2017, in the City Attorney's Office Large Conference Room, for review of recommended
amendments to City Code Section 2-568(c)(2) in preparation for Council consideration.
The meeting began at 4:04 p.m. The Board reviewed the Agenda which contained the following
items:
1. Review and approval of the March 2 inutes of the Ethics Review Board.
2. Review of recommended amendme
Council consideration.
4.
3. Other Business.
4. Adjournment.
Code Section 2-568(c)(2) in preparation for
Chair Martinez stated that this was an Ethics Review Board meeting on November 7, 2017 at 4:04
p.m., and after roll call, declared that a quorum of the Board was present with Ray Martinez and
Ross Cunniff present to act as alternate for Ken Summers.
Chair Martinez called for the approval of the March 21, 2017 Minutes. Councilmember Cunniff
moved approval and Chair Martinez seconded. The Board unanimously approved the March 21,
2017, Minutes.
Chair Martinez then called for and read the second agenda item which was review and
recommendation of amendments to City Code Section 2-568(c)(2 in preparation for Council
consideration.
Chair Martinez called for the record to reflect that Ken Summers has asked Ross Cunniff to
participate in this Ethics Review Board meeting in his role as alternate. Chair Martinez and
Councilmember Cunniff asked City Attorney Daggett to meet one-on-one with Councilmember
Summers to bring him up to speed on the issues and to circle back to the Board if he had any
questions.
1
Chair Martinez then asked if City Attorney Daggett had any presentations. Ms. Daggett explained
that part of the reason this meeting was scheduled was due to the fact that it had been since last
spring since the Ethics Review Board acted on the recommendation for Code changes to go
forward to Council. Ms. Daggett explained not too long after that, she received feedback calling
for more public outreach on items the City Attorney's Office was in the lead on. After a series of
conversations about that particular question with the City's Public involvement office, the group
realized that part of the public process is really the Ethics Review Board and due to the fact there
is a new member on the Board, staff wanted to make sure we gave the public an additional chance
to chime in about this matter before it went to Council.
Councilmember Cunniff asked if the draft ordinance language was the same language that was
reviewed last meeting?
City Attorney Daggett stated yes and reminded the Board that there was an ethics opinion about a
year earlier, in which the Board noticed there really was no guidance to Council when a conflict
of interest was declared and there would be a benefit to clarifying what exactly Councilmembers
can and cannot do when they have declared a conflict of interest. Ms. Daggett explained there
were a number of meetings on that issue, so there were y different versions of language drafted,
reviewed and discussed on this topic. The Code a ►ment language that is stated in the March
21, 2017 Minutes is the language the Board settl
Ms. Daggett stated the current Code languag r' ; minimal and the new language adds more
detail in its place.
Ginny Sawyer asked City AttorneyQag r an explanation of City Code Section 2-568(c)(4)
and (5) to bring her up to speed. Ms. a ett read the pertinent Code sections and discussed the
matter. Ms. Sawyer asked if this was ready a scheduled agenda item. Ms. Daggett explained
that due to timing, the matter would be brought before either the December 5th or December 19th
Council session.
Ms. Daggett then noted for the record that staff members Ginny Sawyer and/or Tyler Marr would
now be participating in Ethics Review Board meetings due to the public outreach discussion which
identified the need to have staff counterparts actively work with the Ethics Review Board.
Chair Martinez made a motion to adjourn and Councilmember Cunniff seconded the motion. The
Board voted unanimously to adopt Chair Martinez's Motion to adjourn the meeting.
Meeting adjourned at 4:24 p.m.
Carrie M. Daggett, City Attorney
2
AGENDA ITEM SUMMARY
Ethics Review Board
July 25, 2018
STAFF
Carrie Daggett, City Attorney
SUBJECT
Review of and possible recommendation regarding a Council inquiry regarding whether Councilmembers have
conflicts of interest in matters involving: 1) outside bodies they have been appointed to represent the City on;
or 2) organizations to which they have donated funds.
EXECUTIVE SUMMARY
The purpose of this item is for review of and possible recommendation in follow up to a request under "Other
Business" at the Council meeting on February 20, 2018 for the Board to discuss whether Councilmembers have
conflicts of interest in matters involving: 1) outside bodies they have been appointed to represent the City on;
or 2) organizations to which they have donated funds.
STAFF RECOMMENDATION
Further discussion and direction regarding options are needed.
BACKGROUND / DISCUSSION
Under City Code Section 2-569, City Councilmembers may present to the Council Ethics Review Board inquiries
regarding the application of state or local ethical rules to actual or hypothetical situations involving potential
conflicts of interest. In response to a situation that arose at the February 20, 2018, Council meeting, several
Councilmembers under the "Other Business" portion of the meeting asked that the Ethics Review Board consider
whether Councilmembers have conflicts of interest in matters involving: 1) outside bodies they have been
appointed to represent the City on; or 2) organizations to which they have donated funds.
Councilmembers Serving on Outside Boards
On the first question, the City Code provides specific guidance:
Sec. 2-570. - City Councilmember appointments.
(a) Definitions. The following words, for the purpose of this Section, shall have the following definitions:
(1) Governmental agency shall mean a federal, state or county government or any incorporated City or
town, and every kind of district, agency, instrumentality or political subdivision thereof which has
been organized pursuant to law.
(2) Private agency shall mean any committee, association, corporation, partnership or other
organization or group of persons other than a governmental entity or agency.
(b) Appointments to governmental or private agencies. The City Council may, in its discretion, appoint any
number of its own members, or may authorize members of its boards or commissions, to serve as City
representatives to, or members of the boards of directors of, other governmental or private agencies.
Absent extraordinary circumstances, which may be reviewed on a case -by -case basis, such
appointments shall not be considered to create conflicts of interest for the members of the City Council
or the members of City boards and commissions who are so appointed. Accordingly, such City
Councilmembers or board and commission members shall not generally be required to refrain from
participating in any administrative, legislative, fiscal, investigative or quasi-judicial functions of the City,
which may affect the interests of such governmental or private agencies. In the event that individual City
Councilmembers or board and commission members may, from time to time, determine, on a case -by -
case basis, that a particular circumstance does create a conflict of interest under the then current
provisions of law, such City Councilmembers or board or commission members may, in their discretion,
choose to abstain from any such decision. The service of City Councilmembers or board or commission
members with other governmental or private agencies shall not be considered service in an official
capacity on behalf of the City unless such service has been determined by the City Council by ordinance
or resolution to be in the best interests of the City.
(Ord. No. 16, 1990, 2-20-90; Ord. No. 65, 1993, 7-20-93; Ord. No. 65, 1995, 6-20-95)
Organizations to Which Councilmembers Donate
With regard to the second question, in general the key consideration will be whether the Councilmember has
either a financial interest or a personal interest in a decision, as those terms are defined in the City Charter and
City Code.
A financial interest is defined as follows:
9) Financial interest shall have the meaning given to this term in Section 9(a) of Charter Article IV, which states:
Financial interest means any interest equated with money or its equivalent. Financial interest shall not include:
a. the interest that an officer, employee or relative has as an employee of a business, or as a holder of an
ownership interest in such business, in a decision of any public body, when the decision financially benefits or
otherwise affects such business but entails no foreseeable, measurable financial benefit to the officer, employee
or relative;
b. the interest that an officer, employee or relative has as a nonsalaried officer or member of a nonprofit
corporation or association or of an educational, religious, charitable, fraternal or civic organization in the holdings
of such corporation, association or organization;
c. the interest that an officer, employee or relative has as a recipient of public services when such services are
generally provided by the city on the same terms and conditions to all similarly situated citizens, regardless of
whether such recipient is an officer, employee or relative;
d. the interest that an officer, employee or relative has as a recipient of a commercially reasonable loan made in
the ordinary course of business by a lending institution, in such lending institution;
e. the interest that an officer, employee or relative has as a shareholder in a mutual or common investment fund
in the holdings of such fund unless the shareholder actively participates in the management of such fund;
f. the interest that an officer, employee or relative has as a policyholder in an insurance company, a depositor in
a duly established savings association or bank, or a similar interest -holder, unless the discretionary act of such
person, as an officer or employee, could immediately, definitely and measurably affect the value of such policy,
deposit or similar interest;
g. the interest that an officer, employee or relative has as an owner of government -issued securities unless the
discretionary act of such owner, as an officer or employee, could immediately, definitely and measurably affect
the value of such securities; or
h. the interest that an officer or employee has in the compensation received from the city for personal services
provided to the city as an officer or employee.
A personal interest is defined as follows:
(11) Personal interest shall have the meaning given to this term in Section 9(a) of the Charter Article IV, which
states:
Personal interest means any interest (other than a financial interest) by reason of which an officer or employee,
or a relative of such officer or employee, would, in the judgment of a reasonably prudent person, realize or
experience some direct and substantial benefit or detriment different in kind from that experienced by the general
public. Personal interest shall not include:
a. the interest that an officer, employee or relative has as a member of a board, commission, committee, or
authority of another governmental entity or of a nonprofit corporation or association or of an educational,
religious, charitable, fraternal, or civic organization;
b. the interest that an officer, employee or relative has in the receipt of public services when such services are
generally provided by the city on the same terms and conditions to all similarly situated citizens; or
c. the interest that an officer or employee has in the compensation, benefits, or terms and conditions of his or
her employment with the city.
Four ethics opinions from prior Ethics Review Board reviews of the "personal interest" test applying the currently
applicable provision are attached for reference and consideration by the Board in evaluating the question posed
regarding organizations to which a Councilmember has made a donation.
ATTACHMENTS
1. Resolution 2000-80, Accepting the Advisory Opinion and Recommendation No. 2000-1 of the Ethics Review
Board
2. Resolution 2003-083, Accepting the Advisory Opinion and Recommendation No. 2003-1 of the Ethics
Review Board
3. Resolution 2004-129, Accepting the Advisory Opinion and Recommendation No. 2004-2 of the Ethics
Review Board
4. Resolution 2012-020, Accepting the Advisory Opinion and Recommendation No. 2012-1 of the Ethics
Review Board
RESOLUTION 2000-80
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ACCEPTING THE ADVISORY OPINION AND RECOMMENDATION NO. 2000-1
OF THE ETHICS REVIEW BOARD
WHEREAS, the City Council has established an Ethics Review Board (the `Board")
consisting of three members of the City Council; and
WHEREAS, the Board is empowered under Section 2-569 of the City Code to render
advisory opinions and recommendations regarding actual or hypothetical situations of
Councilmembers of board and commission members of the City; and
WHEREAS, the Ethics Review Board met on May 23, 2000, to consider whether Mayor Pro
Tem Chuck Wanner has a conflict of interest in participating in City Council's consideration of
proposed floodplain regulations for the Poudre River by reason of his employment as Executive
Director of The Friends ofthe Poudre or as amember ofthe Board of Directors ofthe Friends ofthe
Poudre; and
WHEREAS, the Board has issued an advisory opinion that Mayor Pro Tem Wanner does not
have a conflict of interest with regard to the proposed floodplain regulations; and
WHEREAS, Section 2-569(e) of the City Code provides that all advisory opinions and
recommendations of the Board be placed on the agenda for the next special or regular City Council
meeting, at which time the City Council shall determine whether to adopt such opinions and
recommendations; and
WHEREAS, the City has reviewed the opinion and recommendations of the Board and
wishes to adopt the same.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Opinion No. 2000-1 of the Ethics Review Board, a copy of which is attached hereto
and incorporated herein by this reference as Exhibit "A," has been submitted to and reviewed by the
City Council, and the Council hereby adopts the opinion and recommendation contained therein.
Passed and adopted at a regular meeting of the City Council held This 6th day of June, A.D.
2000.
• Mayor
ATTEST:
City Clerk
2000 -I
OPINION OF THE ETHICS REVIEW BOARD
OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS
May 23, 2000
The City Council Ethics Review Board ("the Board') met on May 23, 2000, to render an advisory
opinion on a question submitted to the Board by Mayor Pro Tem Chuck Wanner. The question
presented is whether Mayor Pro Tem Wanner ("Wanner") would have a conflict of interest in
continuing to participate in Council discussions and, ultimately, Council's vote, regarding the
proposed new floodplain regulations for the Poudre River. The question arises because Wanner is
employed by The Friends of the Poudre, a non-profit organization that has been actively involved .
in commenting on the new proposed floodplainregulations and that has lobbied for "Option C," the
most restrictive alternative that has been presented by staff. The Friends of the Poudre is acitizen's
group formed to protect the River. According to its Mission, Vision and Goals Statement (copy
attached), one the goals of The Friends of the Poudre is to `preserve, restore and enhance critical
areas of the Cache La Poudre watershed." Toward that end, it actively seeks ways in which to
minimize development in the floodplain and to influence the kind of development that does occur.
At present, the Friends of the Poudre has 160 dues -paying members and an operating budget of
approximately $45,000.
Wanner is employed as the Executive Director of The Friends of the Poudre and he is amember of
its seven -member board of directors (the `Board of Directors"). He assumed both positions in the
fall of last year. Warmer's term of employment with The Friends of the Poudre is of indefinite
duration, and he is employed atthe will ofthe Board ofDirectors. Funding for his position has been
secured in the form of a grant from River Network, a national non-profit organization. The grant
funding has been allocated over a ten-month period in the form ofa salary to Wanner in theamount
of $1,666 per month, which willbepayable through Septemberof2000. Wannerhas indicated that,
at the time of accepting his employment, he and the Board of Directors discussed the fact that
Wanner would need to exercise independent judgment as a Councilmember with regard to any
changes to the floodplain regulations for the Poudre River. That arrangement was reportedly
acceptable to the Board ofDirectors, and Wannerhas indicated that there have been no attempts by
members of the Board of Directors to influence his position with regard to those regulations other
than those lobbying efforts that have been directed to Councihnembers generally. There is no
indication from Wanner or others that Warmer's employment, the amount of his compensation, or
his membership on the Board of Directors is dependent upon the position that he takes with regard
to the proposed floodplain regulations. Neither Wanner nor the Friends of the Poudre have a
financial interest in any real property that will be affected by the proposed floodplain regulations.
It is unclear whether any future finding for the Friends of the Poudre in the form of other grants
might be affected by the floodplain regulations that are approved bythe Friends of the Poudre, since
each grant has different terms and conditions.
Ethics Opinion 2000-1
May 23, 2000
Page 2
The question presented fortheBoard, is whether, underthese facts, Wanner's employmentwithThe
Friends ofthe Poudre andforhis membership on the Board ofDirectors creates aconflict ofinterest
under the City Charter or the state statutes that would prevent Wanner from participating in Councils
discussion and vote on the proposed Poudre River floodplain regulations.
ANALYSIS.
1. City charter lions.
The City Charter requires that any Councilmember who has a financial or personal interest in a
decision of the Council disclose such interest and refrain from voting on, attempting to influence,
or otherwise participating in such decision in any manner as a Councilmerber. The City Charter
defines two kinds of interests that can create a conflict of interest for officers or employees of the
City: financial and personal interests.
a. Financial 'Merest
• A financial interest is defined under the Charter as "any interest equated with money or its
equivalent" The Charter expressly excludes from the definition of `financial interest' the interest
that a Councihnember has as an employee of a business where the Council decision may financially
benefit or otherwise affect the business but entails no "foreseeable, measurable financial benefit" to
the Councilme nber. In reviewing the facts ofthis situation, it might fairly be said that the Council's
decision with regard to the floodplain regulations for the Poudre River may "affect" The Friends of
the Poudre since those regulations will determine the name and extent of development that will be
permitted in the Poudre River floodway, product corridor and floodplain. There is no indication,
however, that that decision will financially benefit The Friends of the Poudre, much less Wanner
himself Wks compensation with the Friends of the Poudre is in a fixed amount, and no
evidence has been presented to the effect that Warner's salarywill be changed or discontinued as a
result of the Councils decision on the floodplain regulations. Therefore, the Board believes that
Wanner does not have a financial interest in the proposed regulations.
b. Petsmaalluterest.
The Charter defines a personal interest in relevant part as an interest by reason of which a
Councilmember would, in the judgment of a reasonably prudent person, realize or experience some
"direct and substantial benefit or detriment different in kind from that experienced by the general
public."
Clearly, Wanner is differently situated with regard to this matter than are the members ofthe general
public because of his employment with The Friends ofthe Poudre and hittnembership on the Board
of Directors. The Charter expressly excludes from the definition of personal interest the interest of
a member of a board of directors of a non-profit organization. Therefore, the question here is
Ethics Opinion 2000-1
May 23, 2000
Page 3
whether Wanner will realize any "direct and substantial benefit or detriment" by reason of Council's
decision on the floodplain regulations because of his position of employment Again, there is no
indication that Warner's position of employment or the amount of his compensation would be
affected by his vote or Councils decision with regard to the proposed floodplain regulations. One
can speculate that, if Warmer's vote proves to be inconsistent with the organization's philosophy or
objectives, the Board of Directors may discontinue or decide not to renew Wanner's employment.
However, the Charter standard requires that the potential benefit or detriment be "direct and
substantial" and not merely indirect or speculative. The Board believes that the possibility of
Council's decision affecting Warmer's employment is entirely speculative.
In summary, the Board believes that Mayor Pro Tem Wanner does not have aconflict of interest in
participating in the City Council's deliberations and vote with regard to the proposed floodplain
regulations. The Board recognizes that the perception ofa conflict of interest may exist whenever
a councilmember is employed by, or closely associated with, an organization that is strongly
interested in proposed legislation. This is especially true when the councilmember is employed in
a managerial capacity with that organization. However, the City Charter rules of ethical conduct
have been established to distinguish situations where councilmembers and their employers may be
affected and concerned about proposed legislations those situations in which councilmembers
themselves may somehow experience some personal gain or loss as result of the Council decision.
Under the Charter standards, a conflict of interest would exist in this situation only if the potential
personal gain or loss to Wanner was either `foreseeable and measurable" (in the case ofa financial
interest) or "direct and substantial" (in the case ofa personal interest). After analyzing the situation
presented by Mayor Pro Tem Wanner, the Board does not believe that that kind of clear and direct
benefit or detriment exists in this case. To recommend that Mayor Pro Tem Wanner declare a
conflict of interest in this situation would, in the Board's view, establish a very difficult precedent
that would require councilmembers to regularly refrain from representing the views of their
constituents with regard to proposed legislation even when the potential benefits or repercussions
to councilmembers are merely hypothetical or speculative.
This advisory opinion was reviewed and approved by Councihnembers Councilmembers Byrne,
Kastein and Weitkunat, members of the Ethics Review Board of the City Council. Pursuant to
Section 2-569(e) of the City Code, this opinion and recommendation is to be immediately filed with
the City Clerk and made available for public inspection. Additionally, this opinion shall be
considered by the City Council at its meeting on June 6, 2000.
Dated this 23rd day of May, 2000.
SJR:med
RESOLUTION 2003-083
OF THE COUNCIL OF THE CITY OF FORT COLLTNS
ACCEPTING THE ADVISORY OPINION AND RECOMMENDATION NO. 2003-1
OF THE ETHICS REVIEW BOARD
WHEREAS, the City Council has established an Ethics Review Board (the "Board")
consisting of three members of the City Council; and
WHEREAS, the Board is empowered under Section 2-569 of the City Code to render
advisory opinions and recommendations regarding actual or hypothetical situations of
Councilmembeis of board and commission members of the City; and
WHEREAS, the Ethics Review Board met on June 23, 2003, to consider whether
Councilmember Kurt Kastein has a conflict of interest in participating in City Council's
consideration of (1) a possible amendment to the City's Hannony CorridorPlan (the' Plan") to allow
for a life style center; and (2) the possible review of a decision of the City's Planning and Zoning
Board regarding a particular life style center on the site of the Plan amendment; and
WHEREAS, the Board has issued an advisory opinion that Councilmember Kastein would
not have aconflict of interest in participating in Council's deliberations with regard to these matters;
and
WHEREAS, Section 2-569(e) of the City Code provides that all advisory opinions and
recommendations of the Board be placed on the agenda for the next special or regular City Council
meeting, at which time the City Council shall determine whether to adopt such opinions and
recommendations; and
WHEREAS, the City has reviewed the opinion and recommendations of the Board and
wishes to adopt the same.
NOW, THEREFORE, BE 1T RESOLVED BYTIM COUNSILOF TIE CITY OF FORT
COLLINS that Opinion No. 2003-1 of the Ethics Review Board, a copy of which is attached hereto
and incorporated herein by this reference as Exhibit "A," has been submitted to and reviewed by the
City Council, and the Council hereby adopts the opinion and recommendation contained therein.
2000.
Passed and adopted at a regular meeting of the City Council held this Ist day of July, A.D.
ATTEST:
RIMIBIT "A"
2003.1
OPINION OF THE ETHICS REVIEW BOARD
OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS
June 23, 2003
The City Council Ethics Review Board ("the Board") met on June 23, 2003, to render an advisory
opinion on a conflict of interest question submitted to the Board by Councilmember Kurt Kastein.
The question presented is whether Councilmember Kastein would have a conflict of interest in
participating in the following upcoming decisions of the City Council:
(1) A possible amendment to the City's Harmony Corridor Plan (the' Plan") to allow for
a life style center and
(2) The possible review of adecision of the City's Planningand Zoning Boardregarding
a particular life style center on the site of the Plan amendment
The question anises because Councilmember Kastein ("Kastein')isemployed byLS1Logic, and LSI
Logic has entered into a contract to sell the site of the proposed life style center (the "Site) to the
developer of the center. The Board is of the opinion that Kastein does not have aconflict of interest
in this matter under the relevant provisions of the City Charter, as explained below.
THE FACTS,
The evidence presented to the Board indicates that Kastein is employed as a "project leader" at LSI
Logic. He is compensated on a salary basis and, in addition, holds shares of stock in LSI Logic.
Kastein's job entails serving as a design engineer who is responsible for directing a team of
engineers in designing particular projects. The division in which Kastein works atLSI Logic is not
involved in the sale of the Site. The contract for sale between LSI Logic and the developer of the
Site is not expressly contingent upon City approval of any development application. However, the
developer reportedly has the option to forfeit its earnest money and terminate the contract if City
approval is not forthcoming.
APPLICATION OF THE on CHARTER PROVISIONS.
The determination of this question is governed by the City's local conflict of interest provisions, as
contained in Art. IV, Sec. 9 of the City Charter (the "Charter"). These provisions require that any
Councilmember who has a financial or personal interest in a decision of the Council disclose such
interest and refrain from voting on, attempting to influence, or otherwise participating in such
decision in any manner as a Councihnember. Under the Charter, the following definitions apply:
Ethics Opinion 03-1
June 23, 2003
Page 2
a. WinancialInterest"
A "financial interest" is defined under the Charter as "any interest equated with money or its
equivalent." The Charter expressly excludes from the definition of "financial interest" the interest
that aCouncilmember has as an employee ofa business where the Council decision may financially
benefit or otherwise affect the business but entails no "foreseeable, treasurable financial benefit" to
the Councilmember.
In reviewing the facts of this situation, it might fairly be said that the Council's decision with regard
to the Plan amendment and/or the development application would "affect" LSI Logic since an
adverse decision by the City Couticil would likely result in the loss of the sale of the Site to the
developer. There is no indication, however, that Kastein, as an individual, will receive any
"foreseeable, measurable financial benefit" as a result of the Council decision(s), either through
some form of compensation, or through any appreciation in the shares of common stock that he holds
as a shareholder in LSI Logic. Therefore, Kastein does not have a financial interest under the
Garter.
b. "Personal Interest"
The next inquiry is whether Kastein has a "personal interest" under the Charter. The Charter defines
a "personal interest" in relevant part as an interest by reason of which a Councilmember would, in
the judgment of a reasonably prudent person, realize or experience some "direct and substantial
benefit or detriment different in kind from that experienced by the general public." (Charter, Art.
IV, Sec. 9(u)). This benefit or detriment need not be financial in nature, but it must be "direct and
substantial."
Clearly, Kastein is differently situated with regard to this matter thin' are the members of the general
public because of his position of employment with LSI Logic. The question is whether, because of
his status as an employee, he might realize any "direct and substantial benefit or detriment" by
reason of Council's decision on either the Plan or a future application for development of the Site.
There is noevidence that Kastein's position ofemployment orthe amountof his compensation would
be affected by his vote or Council's decision in that regard. In fact, Kastein's report of his
conversations with LSI officials and employees indicate to the contrary, that is, that there would be
no job related ramifications based upon the manner in which Kastein votes with regard to these
upcoming Council decisions. One can speculate that Kastein's vote might have some effect on his
employment or position of employment if the sale of the Site is lost because of Council's decision.
However, the Charter standard is that the potential benefit or detriment be "direct and substantial"
and not merely indirect or speculative.
As previously indicated in Opinion 2000-1 of the Board, the Board recognizes that the perception
of a conflict of interest may exist whenever a Councilmember is employed by, or closely associated
Ethics Opinion 03-1
June 23, 2003
Page 3
with, an organization that will be affected by a Council decision. This is especially true when the
Councilmember is employed by that organization. However, the Charter rules of ethical conduct
have been established to distinguish situations where Councilmembers and their employers may be
affected by or concerned about an upcoming Council decision, from those situations in which
Councilmembers themselves may somehow experience some personal gain or loss as result of the
Council decision. Under the Charter standards, a conflict of interest would exist in this situation
onlyifthe potential personal gain or loss to Kastein was either "foreseeable and measurable" (in the
case of a financial interest) or "direct and substantial" (in the case of a personal interest). After
analyzing the situation presented by Councilmember Kastein, the Board does not believe that kind
of clear and direct benefit or detriment exists in this case. To recommend that Kastein declare a
conflict of interest in this situation would, in the Board's view, establish a very difficult precedent
that would require Councitmembers to regularly refrain from performing their duties as elected
officials even when the potential benefits or repercussions to them are merely hypothetical or
speculative.
This advisory opinion was reviewed and approved by Mayor Ray Martinez, Mayor Pro Tem Bill
Bertschy and Councilmember Marty Tharp, members of the Ethics Review Board of the City
Council. Pursuant to Section 2-569(e) of the City Code, this opinion and recommendation is to be
immediately filed with the City Clerk and made available for public inspection. Additionally, this
opinion shall be considered by the City Council at its meeting on July 1, 2003.
Dated this 23rd day of June, 2003.
tep J. Roy, ay Attorik-t7te
SJR:med
2004.
RESOLUTION 2004-129
OF THE COUNC1L OF THE CITY OF FORT CORNS
ACCBPTJNG THE ADVISORY OPINION AND
RECOMMENDATION NO. 2004-2 OF TIC ETHICS REVIEW BOARD
WHEREAS, the City Council has established an Ethics Review Board (the `Board")
consisting of three members of the City Council; and
WHEREAS, the Board is empowered under Section 2-569 of the City Code to render
advisory opinions and recommendations regarding actual or hypothetical situations of
Councilnaembers of board and commission members of the City; and
S, the Ethics Review Board met on October 25, 2004, toconsideraquestion posed
by Councilmember Hamrick as to whether C.ouncilmembers who own rental property may have a
conflict of interest in considering proposed regulations of such properties; and
WHEREAS, the Board has issued an advisory opinion with regard to this matter, and
WHEREAS, Section 2-569(e) of the City Code provides that all advisory opinions and
recommendations of the Board be placed on the agenda for the next special or regular City Council
meeting, at which time the City Council shall determine whether to adopt such opinions and
recommendations; and
WHEREAS, the City has reviewed the opinion and recommendations of the Board and
wishes to adopt the same.
NOW, THEREFORE, BE IT RESOLVED BY THE comm. OFTHE CITY OF FORT
COLLINS that Opinion No. 2004-2 of the Ethics Review Board, acopy of which is attached hereto
and incorporated herein by this reference as Exhibit "A," has been submitted to and reviewed by the
City Council, and the Council hereby adopts the opinion and recommendation contained therein.
Passed aid adopted at aregular meeting of the City Council held this 16th day ofNovember,
ATTEST:
OPINION 2004-2
OPINION OF THE ETHICS REVIEW BOARD
OF THE CITY COUNCIL OF THE CITY OF FORT COLLINS
October 26, 2004
The Ethics Review Board (the 'Board") met on the above -referenced date at the request of
Council Ober Hamrick, pursuant to the provisions of Sec. 2569 of the City Code, toconsideran
ethical question posed by Councilmember Hamrick.
QUESTION PRESENTED.
The question presented by Councilmember Hamrick is as follows: At what point might a
Councilaiember who owns rental properties have a conflict of interest in participating in an official
capacity in the City Council's deliberations and/or City decisions regarding the regulation of rental
pare?
APPLICABLE LAW.
City Charter provisions pertaining to this matter include the following:
Interests in other decisions. Any officer or employee who has, or whose relative has,
a financial or personal interest in any decision of any public body of which he or she
is a member or to which he or she makes recommendations, shall, upon discovery
thereof, disclose such interest in the official records of the city in the manner
prescribed in subsection (4) hereof, and shall refrain from voting on, attempting to
influence, or otherwise participating in such decision in any manner as an officer or
employee.
Financial interest means any interest equated with money or its equivalent.
Personal interest means any interest (other than a financial interest) by reason of
which an officer oremployee, or relative of such officer or employee, would, in the
judgment of a reasonably prudent person, realize or experience some direct and
substantial benefit or detriment different in kind from that experienced bythegeneral
public.
(Charier of the City of Fort Collins, Art. IV §9)
DISCUSSION.
The relevant standard to be applied in reviewing this particular question is the Charter "personal
interest" standard. The first question to be addressed under this standard is whether a proposed
ordinance requiring the registration and/or licensing of rental properties, or a change to the "more
Ethics Opinion 2004-2
October 26, 2004
Page 2
than three unrelated persons" ordinance would, in the judgment of a reasonably prudent person,
result in some "direct and substantiaal" benefit or detriment to the owners of rental properties. For
the purposes of this opinion, the Board assumes the existence of a direct and substantial benefit or
detriment.
The key phrase in the definition of personal interest in this situation is the phrase "different in kind
from that experienced by the general public." Thereare hundreds, if not thousands, of people in the
City who own rental properties. Therefore, aCouncilmember who owns one ormore rentals is part
of a very large category of persons who would be affected by the proposed changes in City
regulations. Such Couneilmembers would not be uniquely affected by the proposed legislation
unless, perhaps, property rental was a Councilmember's sole or primary source of income, in which
case the.number of smrilady situated City residents would be greatly reduced.
Numerous opinions of the Ethics Review Board have focused on the size of an affected group in
determining whether a conflict of interest exists. For instance, in Opinion No. 93-3 the Board
rendered the opinion that Councilmeinber Bob McCiuskey did not have a conflict of interest in
participating in Council deliberations regarding the establishment of storm drainage utility fees that
would affect property he owned in a particular storm drainage basis. In support of that opinion, the
Board cited the following as important factors in determining whether a conflict of interest exists:
- The extent to which the decision "focuses" on the individual Coundlmearber.
If a Councilmember's interest is like hundreds of others who are similarly situated, then it is likely
that the Councilntember can participate in the decision. The smaller the group of affected interests,
the more likely it is that the Councilmember who is a member of that group should not participate
in the decision."
- The magnitude of the potential modal or personal impact of the decision on
the individual Counelimember. ff the Councilmember will only be slightly impacted, either
financially or personally, by a Council decision, then he or she is less likely to have a financial or
personal conflict of interest in the decision. On the other hand, if the impact will be a very
substantial one, a conflict is more likely to be found.
- The need for the Councmber to partidpate in the derision as an elected
representative. If the decision is of substantial importance to a Councilmember's constituents,
either as a district representative or as Mayor, then the Councilmember should carefully consider
whether his or her decision to declare a conflict of interest would leave those constituents without
a representative voice in the decision. The constituents' entitlement to a representative voice must
be balanced against the degree of personal interest which the Councilmember may have in the
decision.
Ethics Opinion 2004-2
October 26, 2004
Page 3
Similarly, in Opinion 92-8, the Board noted that "Councilmembers should be able to participate in
policy level decisions unless the policy decision is so immediately and direcdy tied to a financial or
personal interest of the councilmember that the policy decision cannot beeffectively separated from
the personal interest (as opposed to the personal views) of the counciimember."
CONCLUSIONS.
The Board believes that the following guidelines will assist Councilatembers who own rental
properties in determining whether a conflict of interest exists when Council is considering the
proposed regulation of rental property.
1. Whether income derived from rental properties constitutes a primary source
of income for the Councilmember, or for his or her relative, or is instead a
supplemental source of income; and
2. Whetherparticipating in the Council decision might enhance ordiminish the
business interests, personal assets, or employment status of the •
Councilmember, or his or her relative, in a way that is different from other
rental property owners.
As with all conflict of interestquestions, this question must be addressed moreapeciflcallyon acase-
by-case basis. The point of the case -by -case inquiry would be to determine whether the
Councihnember, as a rental property owner, would be differently affected by the proposed
regulations than most other owners of rental property because of the magnitude of the
Councilmember's rental property holdings.
This advisory opinion was reviewed and approved by MayorMartinez, Mayor Pro Tem Bertschy and
Councilmember Weitkunat, as regular members of the Ethics Review Board, for distribution to
members of the Council and for distribution to the City Clerk, to be maintained in the permanent file
of opinions of the Ethics Review Board.
Dated this 9th day of November, 2004.
. Roy, City Attorney
•
RESOLUTION 2012.020
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ACCEPTING THE ADVISORY OPINION AND
RECOMMENDATION NO.2012-1 OF THE ETHICS REVIEW BOARD
WHEREAS, the City Council has established an Ethics Review Board (the "Board")
consisting of three members of City Council; and
WHEREAS, among the responsibilities of the Board is the duty to review and investigate
complaints ofunethical conduct filed againstCouncilmembers or board and commission members;
and
a complaintwasfiledwiththe City on January 13, 2012againstGinoCampana,
a member of the Planning and Zoning Board; and
WHEREAS, the City Council has referred the complaint to the Board under Section 2-
569(d)(1)(b) of the City Code for an advisory opinion as to whether the violation alleged in the
complaint has occurred and, if so, the action, if any, that should be taken with regard to such
violation; and
WHEREAS, at meetings held on February 23 and 27, 2012, the Board has reviewed and
investigated the complaint and has concluded that Mr. Campana did not violate the conflict of
interest provisions of the City Charter as alleged in the complaint; and
WHEREAS, under Code Section 2.569(e), after investigation, the Board is to forthwith issue
an advisory opinion and recommendation to the City Council, which shall be available for public
inspection, and which are to be place on the agenda for the next special or regular City Council
meeting, at which time the City Council is to determine whether to adopt the same; and
the Board has issued an advisory opinion and recommendation with regard to
the complaint, attached hereto as `Exhibit "A"; and
WHEREAS, the City Council has reviewed said opinion and recommendation and wishes
to adopt the same.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that Opinion No. 2012-1 of the Ethics Review Board, a copy of which is attached hereto
and incorporated herein by this reference as Exhibit "A,"has been submitted to and reviewed by the
City Council, and the Council hereby adopts the opinion and recommendation contained therein.
Passed and adopted at a regular meeting of the City Council held this 20th day of March,
2012.
Mat14
ATTEST:
Interim City Clerk
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Opinion of the Ethics Revie hoard
Opinion 12-1
February 27, 2012
Page 2 of 5
The Information Presented to the Review Board.
Information was presented to us with regard to the complaint at our meetings on February 23 and
27, 2012. Draft minutes of those meetings are attached, together with: (1) a written summary of
facts presented to us and to Campana by the City Attorney prior to our meetings; and (2) copies
of the written materials presented during the course of the meetings. At the meetings, additional
information was presented by and on behalf of Campana, the members of the Board, and City
staff After reviewing that information, we have reached the following conclusions about the
facts related to this matter:
• There is a divergence of opinion among professional engineers as to whether the LUC
Amendment has helped clarify the way in which the buffer zone between proposed
development and waterways in the City should be established.
• The LUC Amy as applied to the Bender Property, may or may not result in a
change in the size or location of the buffer that will be required of the developer of the
Property. It does appear that the adoption of the LUC Amendment will result in a change
in the location of the initial 300-foot buffer, as prescribed by the table contained in LUC
Section 3.4.1(E). The western end of that buffer will be moved approximately 45 feet
further from the River. However, the final size and location of the buffer will be
negotiated between City staff and the property owner using certain `performance
standards" contained in the LUC.
• The Bender Property is presently located in unincorporated Larimer County but, under an
intergovernmental agreement between the City and the County, will need to be annexed
to the City before it can be developed.
• In July, 2011, Campana actively participated in discussions of the Board regarding the
LUC Amendment, both at a work session held on July 15, 2011, and at a subsequent
formal meeting of the Board held on July 21, 2011. He was instrumental in defeating the
amendment at the Board meeting. He argued that the revision should be postponed until
something more concrete and definable was developed and that the proposed definition
would make buffets more restrictive for the land owner, which he considered unfair.
However, the LUC Amendment was reconsidered by the Board in October, 2011, at
staffs request and was adopted unanimously without his participation.
• Cemapana is an active developer of properties in Northern Colorado and is regularly
involved in the possible acquisition and development of a large number of properties. On
June 9, 2011, Campana entered into a contract to exchange a number of condominiums
that he owns for the Bender Property. The contract gave both property owners broad
latitude to inspect and evaluate the properties being exchanged and to terminate the
contract "if issues were discovered." As of July 6, 2012, Campana had decided not to
pursue the property exchange on the teens and conditions contained in the contract.
However, in August, 2011, active negotiations resumed between Campana and the owner
Opinion of the Ethics RevieWBoard
Opinion 12-1
February 27, 2012
Page 3 of 5
of the Bender Property when the owner reduced his asking price for the Property in
response to a counteroffer Campana had made. Campana purchased the Property in
September, 2011, and has since submitted a conceptual plan to the City for
redevelopment of the Property.
• Campana did not participate in any discussions of the Board regarding the LUC
Amendment after the July work session and July meeting ofthe Board.
• Campana first learned of the 45-foot difference in the basic buffer requirement for the
Property during the course of our meeting on February 23, 2012.
Analysis of the due Presented.
The conflict of interest provisions of the City Charter are attached. The question of whether
Campana had a conflict of interest that required him to recuse himself from the Board's
consideration of the LUC Amendment and file a conflict of interest disclosure statement with the
City Clerk hinges upon whether Campana had either a financial or personal interest in the
approval or rejection of the LUC Amendment.
We do not believe. that Canipana had a financial interest in the matter because there is no
indication that the Council's decision about the LUC standard would have resulted' in any
immediate financial return to Campana. Whether he had a personal interest in the decision is a
closer question. The definition to be applied in making that determination reads as follows:
"Personal interest means any interest...by reason of which an officer or
employee...would, in the judgment of a reasonably prudent person, realize or
experience some direct and substantial benefit or detriment different in kind from
that experienced by the general public."
Because there are several components to this definition, we have considered each one separately.
•
Fast, in determining how the "reasonably prudent person" would judge the situation, we have
applied that standard to the facts as they were known to Campana at the time of the July work
session and Board meeting. Campana knew at that time that he was engaged in negotiations to
acquire the Bender Property, and that the Property was differently situated in relation to the
application of the LUC provision in question than the vast majority of properties in the City. The
LUC Amendment applied only to properties that are located next to waterways, as is the Bender
Property. As previous Ethics Review Boards have noted in earlier opinions, the size of the
affected group of which an officer or employee is a member determines whether that person's
interest is different in kind from that of the general public. We believe that Campana's interest
in the LUC Amendment was different in kind (and not merely in degree) from that shared by the
general public.
�- s
Opinion of the Ethics Review
Opinion 12-1
February 27, 2012
Page 4 of 5
C.'
Next, we looked at whether a reasonably prudent person would believe that Campana would
experience a direct and substantial benefit or detriment as a result of the adoption or rejection of
the LUC Amendment. It is our opinion that a reasonably prudent person knowing all the
relevant facts would not believe that to be true.
With regard to how directly the decision on the LUC Amendment might affect Campana, we
consider it significant that, at the time of his participation in the Board's discussions of the
amendment, it appeared imlticely that he would be successful in acquiring the Bender Property.
Moreover, the effect on the Bender Property was uncertain because the Property was —and still
is —located in the County. As such, it is not immediately subject to the proposed new buffer
standard. We recognize that, under the City's intergovernmental agreement with the County, the
owner of the Bender Property will need to petition for annexation to the City before developing
the Property. However, the timing and that annexation petition is uncertain and the outcome is
not guaranteed since all annexation decisions are discretionary with the Council. In addition, it
was unclear and remains unclear whether the LUC Amendment will actually have any effect on
the size and location of buffer on the Bender Property. At the time of the July work session and
Board meeting, no measurements had been done to see what effect the new definitions would
have on the Iocation of the 300-foot buffer and, perhaps more importantly, the buffer standards
are often not applied in a rigid way because„ under LUC Section 3.4.1(E), the buffer must be
increased or decreased to meet certain performance standards in order to ensure that it serves its
intended purpose. For these reasons, it is the Board's opinion that a reasonably prudent person
would not consider the link between the LUC Amendment and Campana's financial interests to
be a direct one. A number of variables would have to fall into place in order for that direct
connection to exist.
The next question is whether the effect of the LUC Amendment on the Bender Property —and on
Campana's overall financial interests —would be "substantial." We believe that this standard
should be applied objectively. In other words, whether a City decision will make a "substantial'
difference to an officer or employee should be judged in terms of the potential effect of the
decision on the average person, rather than on the particular officer or employee. Otherwise, a
very
p oof wealthy
more modest or
employee would be free to participate in decisions that an officer or .
yeaest means could not. Such a result would very likely undermine the
public's confidence in the integrity of the government.
Applying the `substantiality" standard objectively, we believe it is unclear whether the LUC
Amendment will have a substantial effect on the way in which the Bender Property can be
developed or on the overall profitability of the development That is because, as mentioned
above, the buffer zone for the Property may not change as a result of the Council's adoption of
the LUC Amendment. The standard 300-foot buffer will be subject to the same possibility of
modification under the LUC Amendment as it was under the previous LUC standard. Therefore,
at the time that Campana participated in the Board's consideration of the LUC Amendment, we
do not believe that a reasonably prudent person knowing all the relevant facts would have
thought he had anything substantial to gain or lose as a result of Council's decision on the
amendment.
Opinion of the Ethics Review Board
Opinion I2-1
February 27, 2012
Page 5 of 5
►ard Members' Uncertainty about the Availability of the Conflict of Interest Rules%
It is clear from the information provided to us that there is some confusion among Planning and
Zoning Board members as to the extent to which the Charter's conflict of interest rules apply to
recommendations made by the Board to the City Council with regard to policy matters such as
the LUC Amendment. In carrying out its duties under the City Code, the Board deals with two
kinds of matters: decisions regarding specific development proposals, and recommendations to
the Council regarding proposed LUC changes or other policy matters. Information provided to
us by several current and past members of the Board suggests that, while they are very cognizant
of the impartiality rules that apply to decisions they make about specific development proposals
when acting in a quasi-judicial capacity, they are less certain about the way in which the
Charter's conflict of interest rules should be intmpreted and applied to recommendations they are
called upon to make with regard to policy matters.
Oninion and Recommendatl n.
For the reasons stated above, it is our opinion that Campana did not have a conflict of interest
that prevented him from participating in the Board's discussions and recommendations regarding
the LUC Amendment. Nonetheless, we believe that it was entirely appropriate for this matter to
have been brought to the attention of the City by Mr. Bell, since the many factors reducing the
probability of this decision having a direct and substantial financial impact on Mr. Campana
become clear only after careful examination of the situation. It is critical that the officers and
employees of the City remain vigilant in trying to ensure that their participation in the City's
decision making processes is motivated solely by an interest in the public good and not by an
interest in personal gain.
Because of the input we received from members of the Board, we recommend that, to the extent
reasonably possible, the City Attorney's Office and City staff supplement the training that is
currently provided to City board and commission members to further clarify the application of
the conflicts of interest requirements to both quasi-judicial and legislative matters. It is
important that all board and commission members understand the conflict of interest rules that
are applicable to their service with the City and recognize when those rules might require their
recusal. In particular, we further recommend that a representative of the City Attorney's Office
meet with the members of the Planning and Zoning Board in the near future to review the ethical
rules applicable to Board members' participation in both quasi-judicial decisions and in the
recommendations that the Board makes to the Council regarding policy matters. We also
recommend that the City Attorney's Office provide similar clarification to other City boards that
perform both quasi-judicial and legislative functions.