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12/04/1989 CITY COMMISSION SPECIAL MEETING December 4, 1989 The City Commission of the City of Clearwater met in special session at City Hall, Monday, December 4, 1989, at 9:05 a.m., with the following members present: Rita Garvey Mayor/Commissioner Don Winner Vice-Mayor/Commissioner Lee Regulski Commissioner William Nunamaker Commissioner Richard Fitzgerald Commissioner Also present: Ron H. Rabun City Manager Milton A. Galbraith, Jr. City Attorney Harrison C. Thompson, Jr. City Labor Attorney Cynthia E. Goudeau City Clerk The Mayor called the meeting to order. The purpose of the meeting is to discuss the Commission on Ethics recommendation of penalty for the Michael Kenton ethics case. This matter is the result of a complaint filed by former City Manager Anthony Shoemaker who alleged that Michael W. Kenton violated various provisions of the Code of Ethics for public officers and employees contained in Part III, Chapter 112 of the Florida Statutes. Following a preliminary investigation, the Commission on Ethics found probable cause and ordered a public hearing on the issues of whether Mr. Kenton as Assistant Director for Environmental Management for the City of Clearwater violated Section 112.313(6) Florida Statutes by his actions while a City employee pertaining to the parcel of property known as Cooper's Point; whether Mr. Kenton violated Section 112.313(7)(a) Florida Statutes by having a conflicting contractual relationship while a public employee of the City of Clearwater; and whether the respondent violated Section 112.313(8) Florida Statutes by using information not available to members of the general public and gained by reason of his official position for his personal gain and for the personal gain of others. Mr. Kenton, who was Assistant Director for Environmental Management, had been actively involved for a number of years in trying to have the State obtain or the County or City obtain the environmentally sensitive property known as Cooper's Point which is located on Tampa Bay. In 1986, Mr. Kenton obtained a 30% interest in a contract to buy Cooper's Point. He did not reveal this to the City of Clearwater and continued to be involved in the City's efforts to assure Cooper's Point was obtained by a public entity. In January, 1987, Mr. Kenton revealed his interest in Cooper's Point. In March of 1987, the land trust assigned its contract to purchase Cooper's Point to Cooper's Point Partners, Ltd. in which Mr. Kenton owned a 15% interest. The City and County, rather than let the property be developed, purchased Cooper's Point from Cooper's Point Partners, Ltd. for $1,950,000. Mr. Kenton received $150,000 for his interest in the partnership plus $50,000 for consulting services. A public hearing was held on March 14 & 15, 1989 in Clearwater, Florida before Dean Bunch, Hearing Officer and member of the Commission on Ethics. Mr. Bunch prepared a recommended public report of the Hearing Officer which included background information, findings of fact, conclusions of law and recommended penalty. The Commission on Ethics has acted upon this recommendation, and their final order and public report concludes that Mr. Kenton did violate the three sections of the ethics code and recommended a penalty of $5,000 per violation for a total of $15,000 and that Mr. Kenton be ordered to pay a restitution in the amount of $199,985 to the State of Florida. This action was taken by the Commission on Ethics on October 26, 1989. The City Manager indicated it is the City's responsibility to enforce the Ethics Commission's recommendation. Harrison C. Thompson, Jr., Labor Attorney for the City, stated this is not actually a hearing but rather a presentation and recommendation. He stated Mr. Kenton has been found guilty of the three violations and the Commission's recommendation is that he be fined $5,000 for each violation and that he pay restitution for his interest in the Cooper's Point contract. He stated the Attorney General of the State of Florida will be responsible for collection of the penalty and that it will go to the State of Florida. He stated once the funds are collected, the City of Clearwater could petition the Legislature to turn the money over to the City. He recommends that the Commission adopt the recommendation of the Commission on Ethics. A question was raised regarding whether or not there is a greater chance of collecting funds than had been in the past. Mr. Thompson indicated that the State does have options available to it for this collection. Neither Mr. Kenton nor his representative were present at the meeting to make a statement. Mr. Thompson indicated as of last Thursday, Mr. Kenton had appealed the Commission's decision; however, the City has not been officially served and a motion to stay this hearing has not been heard and, therefore, today's meeting can go forward. Concerns were expressed regarding the possibility of collecting the funds, and it was questioned whether or not a suggestion could be made to the State that they require community service in lieu of actual monies collected. Mr. Thompson indicated there would be nothing wrong with making this suggestion. Commissioner Nunamaker moved that the Final Order and Public Report of the Commission on Ethics be accepted and approved. The motion was duly seconded and carried unanimously. The Mayor requested a consensus regarding the Public Service recommendation and the Commission indicated they had no problem with making the suggestion, however they did not wish it to be a part of the motion. Mr. Thompson indicated that the penalty provisions in the Florida Statutes has nothing to replace the civil penalty. He indicated a verbatim transcript of this meeting should go to the Attorney General. The meeting adjourned at 9:15 a.m.