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HomeMy WebLinkAbout1992-02-10 92-111 ORDERDate 2-10.92 a a Item No. 92-111 Itamisubie t: � � of ¢flslos of Ethics xemea to City of Responsible Department: aty, Nscil Commentary: Council LRiaii' Coins Me Laquessrf i Council of the attaclsl O.Uet. eprs= O would xetiuest an advisory cpLo on fxw tha City's ikani of 8tldcs xe9axditul Councillor (buss's perticipetiou as ieauass; t sal to cable fadeeiaion Yate regulation. 11be Council has ptenlouely ruled that Cwacilor Cohan is in Conflict on tiLLe leeue due to his agsloyment by gantpc Hyniro aro kc C® . Aruna i also pleen a final a smmrarcLup fma Erik Sts l to Councilor Cohan rsgeidL this issue, DepronlroHeld Manager's Comments: Associantl Information: Council order, Memo Budget Approval: N/A Fwwe Musa, Legal Approval &A 0 11 c,WS, inmr Introduced For ETPmaage ❑ First Reading Page _ of _ ❑Referral 92-111 Aeepedto CouaNw Stone, February 10, 1992 CITY OF BANGOR Ref rr ng Confl t f Ethics Issue t7--City- oCity of Bangor Board of Ethics By she Qty Ceyadt of Ow Day efeaaaor: ORDERED* TBAS in accordance with Article 6, Section 4.5 of the City of Bangor Code of Ethics, the following question is hereby submitted to the Board of Ethics for the rendering of an advisory' opinion: "Does Council Chairman Bill Cohen's employment by Bangor Hydro -Electric Company as its Director of Communications a Public Affairs constitute a conflict of interest under the City's Code of Ethics or provisions of State law, so as to preclude Chairman Cohen from participation in the Council's debate and determination of issues related to cable television rate regulation, where Bangor Hydro -Electric Company currently allows the City's cable television franchise _ holder, A/R Cable Services, Inc., to attach its linea to Bangor Hydro utility poles, in return for a fee set by the Maine Public Utilities Commission?" The Council asks the Board to give its opinion on the above question prior to the Council's regular meeting on March 9, 1991. 92-111 ORDER IN CITY COUNCIL FEBRUARY 10,1992 Title, vote t0 move the question passed [e 5 yes 4 no MISSING CONFLICT OF EMICS ISSUE oche yea Blanmetce,Bragg,Cohen 'k5'ci'r4'.bh'6nHCbk'kbAkD'bk'E'hkYCS... goucy'scone ...................................... voting no BeldecthePfollowing voteSax1 Order Passed by the following vote e*eddt fi Yea aye Migned to Voting yes Blanche[te,Bxegg. Cohen sawyensonarsmne ....... 5........... Voting NO Baldacd,PrankeL Saxl - Councilman MEMORANDUM 92-111 January 22, 1992 TO: Mayor William Cohen FROM; Erik Stumpfel, Acting City Solicitor RE: Cable Television Issues - Conflict of interest At your request, I have reviewed the issue of whether your present position with Bangor Hydro -Electric Corporation constitutes conflict of interest under the City of Bangor's Code of Ethics with respect to issues involving City franchising and rate regulation of Cablevision's Bangor franchise. My understanding is that the basis for the asserted conflict of interest is the fact that Bangor Hydro currently charges Cablevision a fee in return for the privilege of carrying its cable on Bangor Hydro's utility poles. I further understand that the fee charged to Cablevision by Bangor Hydro is set by the Maine Public Utilities Commission. it is my understanding that Cablevision and Bangor Hydro may take adverse positions in PUC proceedings to establish this fee. Based on the above understanding, it is my opinion that, with respect to the issue of cable television rate regulation by the City of Bangor, your employment by Bangor Hydro does not constitute a "financial interest" as defined in Section 2.5 of the, City's Code of Ethics. That definition requires "A direct or indirect interest having monetary or Pecuniary value, including, but not limited to, the ownership of shares of stock." The issue currently pending consideration by the Municipal Operations Committee, whether to initiate a rate -making proceeding with respect to Cablevision's rates for basic cable service in the City of Bangor, would have no foreseeable impact on the fee set by The Maine PUC for Cablevision's use of Bangor Hydio's utility poles. Accordingly, neither you nor Bangor Hydro could reasonably be seen as deriving a pecuniary benefit from your vote, affirmative or negative, on the issue of basic cable service rate regulation by the City of Bangor. As you know, the City's Code of Ethics also defines another form of interest, 1 "special interest", as follows: "A direct or indirect interest having value peculiar to a certain individual or group, whether economic or otherwise, which value may accrue to such individual r group as a result of the passage or denial of any order, ordinance or resolution or the approval or dis- approval thereof, by the City Council, Board or Commission and which interest is not shared by the general public." -a - It is also my opinion that CableviSiOn'S payment of a fee to Bangor Hydra for use of its utility poles does not, in this case, create a "special interest" on your part within the meaning of this section. Finally, Section 3 of the City's Code of Ethics creates a standard of conduct for City Councilors and others, described in that section as follows, "The purpose of this Code is to establish ethical standards of conduct for all City Councilors, Board Members and Conmission Members by setting forth those acts or actions deemed to be in conflict or incompatible, or to create the appearance of conflict or incompatibility, with the beet interests of the City of Bangor." Under this standard, the City Council has previously ruled that you have an appearance of conflict on cable television issues arising out of your employment by Bangor Hydro. I personally would not regard your employment by Bangor Hydro as creating an •appearance of conflict" on issues related to cable television rate -making, and would welcome your participation in any rate -making efforts by the City Council. However, the determination whether your employment by Bangor Hydro creates an "appearance of conflict" properly rests with the full Council, in accordance with Section 3.0(C) of the City's Ordinance. I think it would be appropriate to re -visit this issue when cable rate regulation comes back to the full Council for action, and I will be glad to give the Council my recommendation at that time. In the alternative, you may wish to ask the Council to refer this issue to the Board of Ethics in accordance with Section 4.6 of the City's Ordinance. If you have any further questions, please call M. �c 9. E.S. to