'Ethical divide'
Viewpoints differ on amendment to City's Code of Ethics
By Bari Auerbach

At the July 22 City Commission meeting, an ordinance unanimously passed amending a section of the city's Code of Ethics previously requiring only disclosure of personal investments that might create a conflict for elected officials and city employees. Per the amendment, the Code of Ethics no longer permits such an interest - even if it is disclosed.

Discussions regarding the amendment at the July 22 City Commission meeting revealed differing viewpoints on the merits of altering the existing Code of Ethics. Many residents who spoke also alluded to their feeling that the ethics ordinance was aimed at Commissioner Danny Iglesias, who recently abstained from voting on a zoning issue for the Ocean Four condominium because he personally invested in the development.

Prior to members of the Commission and citizens voicing their opinions, City Attorney Lynn Dannheisser explained the purpose of the ordinance.

"The Commission requested that we draft an ordinance for consideration prohibiting an official officer, including an elected official or employee of the city, from making any personal investments in enterprises in which he or she has reason to believe may be directly involved in final decision making by him or her or which would otherwise create a conflict between his or her public duty and his or her private interest," Dannheisser said.

"This ordinance amends section 33-7 which contains such a prohibition unless it was disclosed. The amendment does not permit such an interest even if it is disclosed. The balance of the Code of Ethics of the City of Sunny Isles Beach remains the same."

Dannheisser later noted that it was brought to her attention by Vice Mayor Gerry Goodman that the ordinance did not contain any time frame within which the prohibition is applicable. Subsequently, the City Commission voted in favor of amending the verbiage of the ordinance as follows:

An official officer including an elected official or employee of the city shall not make any personal investments in enterprises in which he or she has reason to believe that he or she may be directly involved in the final decision making as to a development approval to be made by him or her - or which will otherwise create a conflict between his or her private duty and his or her private interest until the CO (certificate of occupancy) is issued.

Mayor Norman Edelcup's Opinion
"We know that each [sitting] Commissioner is honest - but we also know that each Commissioner has been elected to vote on the issues that come before them. If there is a conflict.then you're depriving the voters of your position of being able to vote. They voted you into office to be able to make that decision - and if you can't make that decision, then you're not fulfilling all the duties of that office.Once votes are finally in [on issues that come before the Commission] everyone is free to do what they want to do.

"We just want to have a higher standard.I think what we need to do is correct the opinion that this ordinance is singling out one of our Commissioners.It's for all Commissioners currently here and into the future that will be sitting here.Pease don't think this is an attack on [Commissioner] Danny Iglesias. Danny and I are very good friends and we're just differing on this topic.it shouldn't be a 'personal thing.'"

Commissioner Lewis Thaler's Opinion
"It's a perception that we're trying to eliminate here. I have to say I know [Commissioner Danny Iglesias] has taken it personally - but this isn't for [him]. Nobody here is saying [Iglesias] has done a single thing that is illegal.We're looking towards the future and we want to establish the ground rules for Sunny Isles Beach.

"[Reiterating] what I started with in terms of the concept of 'perception' and taking this to the 'higher standard' - that's what we're trying to [achieve]. The [certificate of occupancy] doesn't mean all the apartments have been sold so there still can be apartments available at that time [for purchase by an elected official]."

Commissioner Roslyn Brezin's Opinion
"This [amendment is being] established for anyone who sits here [on the City Commission] or has any position where they can enrich themselves through these [real estate] purchases. that's what we're trying to avoid.

"What's more important - to sit here and represent my constituents on zoning matters or for me to be investing because I'd like to make some extra money? My choice is to sit here and vote and I feel that every vote counts. That one vote I might have to recuse myself on could mean I'd be losing out on something very important. We are dealing with an ordinance that is going to [assure] people their officials who sit here and vote are not going to be denied a vote because of their private interests."

Vice Mayor Gerry Goodman's Opinion
"If an issue came up where a developer wanted to build a building and [all members of the Commission invested in it] who would vote on the project?

"I don't know how many cities in Dade have had anything happen to it like Sunny Isles Beach [with the] influx of development.My [view] is that I want everyone [on the Commission] to serve reasonably well - and I would not prevent [an elected official] from buying anything he wants in a building after the CO is issued.

"Eventually, every rule and regulation [the present City Commission drafts] could be changed after Sunny Isles Beach is completely developed and there are no more 'inferences' from people.I think my motion [should be supported to allow real estate purchases after certificates of occupancy have been issued for buildings]. Then anyone who wants to buy real estate [can]."

Commissioner Danny Iglesias' Opinion
"[Mayor Norman Edelcup] and I are friends and neighbors. This is nothing personal.This is simply two differences of opinions and philosophies.

"I agree there should be no connection between an investment and a vote which is precisely the reason I [have previously abstained from a vote]. What bothers me here is the word 'perception.' If we're going to use 'perception,' how do you send the message out that you're not 'on the take' when you can vote - and then at a later time buy a unit? Or [is it more effective to say] your vote can't be biased because you abstained from [voting]? I believe [abstaining] holds up more.

"Did anyone bother to think why in so many years and in so many cities this has never been done? Is it because we're way smarter.or maybe they've analyzed the pros and cons and figured out there are more pitfalls than advantages.

"What about [elected officials investing in] businesses that are good for the city? Business people who want to invest couldn't do it because it's a conflict of interest.

"The bottom line is the biggest judge of ethics is you - the voters. If anyone thinks anyone up here [on the Commission] is doing something unethical, it will get back to us at the voting booth. [By regulating] something that [voters] are going to regulate [we're deterring] somebody from coming [onto the Commission] that could substantially help the city [via an investment]. I'm proud of what I've done for the city and of my honesty because that's how I was raised."

After reiterating his opinion that abstaining from a vote is the most "ethical" way to handle any conflicts of interest, Iglesias asked City Attorney Lynn Dannheisser if there are ways to handle scenarios where more than one elected official opts to abstain from voting on an issue.

According to Dannheisser it would be considered "legal" to have a development site plan approved by an architectural review board nominated by the Commission. She also noted that if a site plan approval came up and two commissioners voted for a project and two [abstained] - the City Manager could be designated to make the tie-breaking vote.

Citizens' Opinions
Kathleen Kennedy, Plaza of the Americas
"Commissioners - I need you to reconsider this ordinance.I don't know why we need it. You keep saying it keeps Commissioners above higher standards.I think all of you have higher standards. When Supreme Court [judges have to] they abstain. If Danny Iglesias says he wants to abstain from voting on something - you can't get more honest than that. You've got to vote this ordinance out of here."

Ralph Sanchez, Plaza of the Americas
"If an investment is made in a legal fashion, I don't see how that could damage or in any way prejudice the purchase of an apartment.The person can live there if they need it for a home - or if they want to buy a property as an investment and follow all the requisite rules and legal format.I don't see how that will be detrimental to the area. It's going to be another purchase that will probably increase property values because as more people buy into the area they're going to buy at the current fair market value and it's going to help the current situation."

Domenico Fijila, owner of Cantina La Fusta
"Regarding [the concept of] 'Commissioners to buy or not to buy' - it's because of [elected officials] that we have this progress [in Sunny Isles Beach]. Why shouldn't [Commission members] be allowed to buy and to speculate instead of somebody else making that money? Why shouldn't [elected officials profit] as long as it's in a legal manner? We're going to let someone from Africa, Italy or Germany buy three, four or five apartments for speculation - why not one of you [on the Commission]?"

George "Bud" Scholl, Chair of former Charter Revision Commission
"[Commission members are] held to a higher standard and they have to sometimes give up opportunities for personal gain to show that standard to the public and to the people who voted for them. When the President becomes the President of the United States, he takes all his assets and puts them in a blind trust so there is absolutely no perception [of wrong-doing].In my opinion, there should be absolutely no doubt that there's not a connection between a vote and an investment.In this day and age, the public needs to have a very high perception of their elected officials and elected officials have to realize that when they go into office."

Jack Cohen, Winston Towers
"I am requesting that the ordinance be postponed for the moment.to open discussion for the formation of a new independent oversight ethics committee.I believe [Commission members] should be able to own property and do business in our city just as any other citizen has the right to do."

Henry Kay, president Sunny Isles Beach Citizens' Coalition
"If you want to be elected by the public, you have to give up certain rights and be above certain elements to which everyone else is entitled. When you sit there [on the Commission] those limits are on your shoulders."

Robert Meyers, Executive Director, Miami-Dade Commission on Ethics & Public Trust
"One of the reasons we came here was to get a sense of what [the city's] intent was. If your intent is [to narrowly] describe 'enterprise' and just focus on buying property - that's one thing.But the Ethics Commission would tend to define 'enterprise' very 'broadly' which would include commercial interest, real estate interest, and business interests.The definition of 'enterprise' goes well beyond just buying real estate in buildings.

"There is a section in the County Code that deals with this in 'Section L.' The County Code of Ethics, which applies to Sunny Isles Beach, deals with personal investments and enterprise.I can tell you that our interpretation of that code has been a fairly broad one. If your goal here is to narrow the definition of 'enterprise' we need to know that because obviously - what's important when we render our advisory opinions and conduct an investigation is to get a sense of what your legislative intent is."

In response to Meyers commentary, Mayor Norman Edelcup noted, "The 'legislative intent' is to [cover issues] called upon to have a vote. If there was no voting issue, then we were excluding that enterprise or business. It's only when an elected Commissioner has to vote that we wouldn't want him to recuse himself because of conflict. The limit we're trying to create is very narrow.It's only those things that would create an issue of a vote as a conflict. [For example] if the city were to have a charter school and the [Commission] has to vote on a charter school - then certainly, one of the Commissioners can't make an investment in that charter school."

'Double Standard?'
Just prior to the vote on the ordinance, Commissioner Danny Iglesias said, "What about the other way around? Since we're trying to set higher ethical standards here, I think the law should also read that enterprises or their representatives shall not make investments in corporations or businesses where a member of the Commission has a private interest."

Subsequently, Mayor Norman Edelcup said, "You can't do that.Does that mean if a Commissioner has an investment in stock like FPL - FPL can't invest in the city? We should deal with the ordinance [before us] today and [if a Commissioner desires, another ordinance] can be brought forth in the future."

Iglesias responded, "If I have a business and somebody's putting money in mine - then I shouldn't be able to vote."

Note: Edelcup is a member of the board of directors of Florida Savings Bankcorp, the parent company of Florida Savings Bank, which has a branch in Sunny Isles Beach and holds money for some of the developers doing business in the city.

Prior to unanimous approval of the amendment to the Code of Ethics, City Attorney Lynn Dannheisser clarified, "This relates to voting capacity not [for example in the case of zoning administrator Jorge Vera] making a recommendation.[This pertains to] voting capacity only."

For the record, Dannheisser read the ordinance again before the ordinance was unanimously approved, stating:
"An official officer including an elected official or employee of the city shall not make any personal investments in enterprises in which he or she has reason to believe that he or she may be directly involved in the final decision making as to a development approval to be made by him or her or which will otherwise create a conflict between his or her private duty and his or her private interest until the CO is issued."

After the ordinance was approved, Iglesias said, "The reason I'm [voting] 'yes' is because since we're trying to set higher ethical standards, I [plan to] come back with another [ordinance] I think takes it to a higher level.I hope the Commission [will feel] the same way."


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