2009-12-09 Board of Ethics Minutes

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Ms. Lum said that the Contracts section needs language which would add the concepts that contracts are prohibited with a company in which a County officer /employee has a controlling interest, and with a County officer /employee who is employed by the department the contract is with. She was unsure if the latter prohibition should be with the entire department or the employing division. Ms. Lum asked the Board members whether they wanted to limit the County's ability to contract with an officer /employee within his own department, or only if the contract would be related to his current employment. She said that there are times when the County should be able contract with an officer /employee without it being a conflict. The members discussed whether an officer /employee should be able to contract with his department, but not if it were within his division of employment. Ms. Nicholson said the public perception of conflict would still be there. She said if an officer /employer contracts with the County, regardless of what department he is employed in, the public perception will still be that he was awarded the contract because he works for the County. Mr. Martin said it bothers him when rules are too restrictive. He saw the issue as being about public perception and questioned how to do things in a way that speaks to the public but also gives people freedom. Ms. Schoen asked what the Board thought about leaving Section 2 -85(a) as is, but adding a new section stating that a County agency shall not enter into any contract with an officer or employee unless certain criteria is spelled out and met. Ms. Lum said that should be the first section, so if the criteria is met, they can proceed to the next section. Ms. Nicholson asked whether the Board had ever received a "notice of intent" as listed in 2- 85(3), as she had not seen one come before her. If it served a good purpose, it should be kept in the language. Ms. Schoen said she had not received a "notice of intent" for the Board's review in the past two years, since she'd been counsel. Ms. Schoen explained that there is a small time period between a bid opening and award. The time periods in contracting come hard and fast, and bidders need to watch closely or they will miss their opportunity to bid. Ms. Nicholson said that if 2 -85(3) were deleted, then using the standards of conduct declaration that Honolulu uses could be a safeguard, since it seemed impractical for the Board to intercede in the small time frame before a contract is awarded. Ms. Schoen said the Board could recommend to the Corporation Counsel that the County use the declaration, as the Corporation Counsel approves all contracts and developed a contracts checklist. Ms. Nicholson said she would want the County Council to know that the declaration is being recommended by the Board to aid in tightening up the contracts process.