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Home » News » City Manager and Councilmember Claim to Not...

City Manager and Councilmember Claim to Not Know 39-Year-Old Conflict of Interest State Statute

City Manager and Councilmember Claim to Not Know 39-Year-Old Conflict of Interest State Statute

January 14, 2017

By Tribune Staff
Wendy Hayworth & Linda Ahern

The related City ordinance has been renewed on an annual basis since 1991.

Six months have passed since the Tribune published “Ethics Law Violations On City Council: Diane Forte's Conflict of Interest”. In that time, Councilwoman Forte and City Manager Steve Arbo have both made claims that they were unaware of State Statute 105.450. 

It was this statute (specifically 105.454, 105.458, and 105.462), along with the Lee’s Summit City Charter XIV Section 14.1, and City Ordinance Sec. 2-61 that Forte violated on two occasions. (May 4, 2015 with an invoice for $768 and May 9, 2016 with an invoice for $1,170.) These invoices were from her business, Diane Forte Enterprises, LLC to the Lee’s Summit Parks and Recreation department. During this time, she was also participating in council votes pertaining to Parks finances. 

During the July 7, 2016 council meeting, Forte stated that she was “made aware” of the violation on the 16. She repeated this again the following week. 

When discussing the operational audit at the August 1st meeting, Forte stated that she was not certain an audit would have caught the “glitch of a state statute” because “it was me that didn’t know about the state statute.” 

On August 11 and 18 she also claimed to have not known about the statute. 
Most recently, City Manager Steve Arbo stated during the January 5, 2017 council meeting that he was not aware of the statute until the previous April. 

"The City of Lee's Summit organization was not aware of the $500 limit of the state statute,” Arbo said. “The time that I learned it was with you, sir, Mr. Moreno, when we were at the newly elected officials conference.”

According to Executive Director of the Missouri Ethics Commission, James Klahr, this particular state statute has been in effect, with minor amendments, since 1978. 

In 1991, state statute required cities to pass a city ordinance addressing conflict of interest on a biannual basis. The first ordinance was enacted by the Board of Aldermen of the City of Lee’s Summit on August 6, 1991. 

Now referred to as Sec. 2-61 of the Code of Ordinances for the City of Lee’s Summit, this ordinance is nearly identical to the first. The only changes there are reflect the changes in personnel in the City. 
This ordinance specifically references State Statute 105.450. 

In 2013, during the annual renewal process, Councilman Bob Johnson inquired if the ordinance was the same as the previous year. 

City Clerk Denise Chisum replied that the state statute requiring the renewal was “unclear” so the City renews the ordinance every year just to be safe. 

This was reiterated by the City Manager when the ordinance was renewed on September 1, 2016. "This is a standard ordinance that's required by state statute that we approve at least once every other year. The city of Lee’s Summit has taken it upon ourselves to go ahead and adopt it every year, just to make sure we don't miss it.”

Every year that this ordinance has been before her, Councilwoman Forte has voted in favor of it. In 2015 and 2016, she even seconded the motion to approve it. (This is documented via Action Letters from August 21, 2014; August 20, 2015; and September 1, 2016.) 

The Office of the City Attorney confirmed that all new councilmembers are given handbooks on conflict of interest, meeting rules, and the Sunshine Law during an orientation at City Hall. 
Additionally, all councilmembers received a three-ring-binder that was put together by an ad-hoc committee. The State Statute was included. 
 
Either Councilwoman Forte and City Manager Arbo did indeed know about the State Statute or they have not been reading the ordinances put before them. 

For reference
Sec. 2-61. - Disclosure of potential conflicts of interest. 

A. Declaration of Policy. The proper operation of municipal government requires that public officials and employees be independent, impartial and responsible to the people; that government decisions and policy be made in the proper channels of the governmental structure; that public office not be used for personal gain; and, that the public have confidence in the integrity of its government. In recognition of these goals, there is hereby established a procedure for disclosure by certain officials and employees of private financial or other interests in matters affecting the city.

B. Conflicts of Interest. The mayor or any councilmember who has a substantial personal or private interest, as defined by RSMo 105.450(10), (11), Missouri Revised Statues, in any bill shall disclose on the records of the City Council the nature of his or her interest and shall disqualify himself or herself from voting on any matters relating to this interest.

C. Disclosure Statements. Each elected official, the City Manager, the Assistant City Manager, the City Attorney, the Director of Finance, the City Clerk and the City Purchasing Agent shall disclose the following information by May 1 if any such transactions were engaged in during the previous calendar year:

1. For such person, and all persons within the first degree of consanguinity or affinity of such person, the date and the identities of the parties to each transaction with a total value in excess of five hundred dollars ($500.00), if any that such person had with the City of Lee's Summit, other than compensation received as an elected official or as an employee or payment of any tax, fee or penalty due to the City of Lee's Summit, and other than transfers for no consideration to the City of Lee's Summit; and

2. The date and the identities of the parties to each transaction known to the person with a total value in excess of five hundred dollars ($500.00), if any, that any business entity in which such person had a substantial interest, as defined by RSMo 105.450(10), had with the City of Lee's Summit, other than payment of any tax, fee or penalty due to the City of Lee's Summit or transactions involving payment for providing utility service to the City of Lee's Summit, and other than transfers for no consideration to the City of Lee's Summit.

3. The City Manager, the Assistant City Manager(s), the City Attorney, the Director of Finance, the City Clerk and the City Purchasing Agent also shall disclose by May 1 the following information for the previous calendar year:

1) The name and address of each of the employers of such person from whom income of one thousand dollars ($1,000.00) or more was received during the year covered by the statement;

2) The name and address of each sole proprietorship that he or she owned; the name, address and the general nature of the business conducted of each general partnership and joint venture in which he or she was a partner or participant; the name and address of each partner or coparticipant for each partnership or joint venture unless such names and addresses are filed by the partnership or joint venture with the Secretary of State; the name, address and general nature of the business conducted of any closely held corporation or limited partnership in which the person owned ten percent or more of any class of the outstanding stock or limited partnership units; and, the name or any publicly traded corporation or limited partnership that is listed on a regulated stock exchange or automated quotation system in which the person owned two percent or more of any class of outstanding stock, limited partnership units or other equity interests;

3) The name and address of each corporation for which such person served in the capacity of a director, officer or receiver.

D. Filing of Statements. The statements shall be filed with the City Clerk and the Ethics Commission. The statements shall be available for public inspection and copying during normal business hours.

E. When Filed. The financial disclosure statements shall be filed at the following times, but no person is required to file more than one financial disclosure statement in any calendar year.

1. Each person who is subject to this ordinance shall file the statement within thirty (30) days of such appointment or employment;

2. Every other person required to file a financial disclosure statement shall file the statement annually not later than May 1 and the statement shall cover the calendar year ending the immediately preceding December 31; provided that any member of the City Council may supplement the financial disclosure statement to report additional interests acquired after December 31 of the covered year until the date of filing of the financial disclosure statement.



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Comments

  1. Clark Patterson says:
    January 16th, 2017 at 15:34
    Ignorance of the law is no excuse! Unless you are a City manager or City Councilperson....

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