5.1 Housing Rehabilitation Grant Conflict of InterestCITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
06-28-10 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
5
AGENDA:
NO:
Community Development Services
Department
ITEM
NO:1
BY: Judy Irvin BY:
Page 1
ITEM:
Conduct a public hearing to disclose a possible conflict of interest, prompted by an application
for housing rehabilitation assistance submitted to North Central Regional Planning Commission
(NCRPC) by an employee of the City of Salina.
BACKGROUND:
On August 13, 2009, the commi ssion approved a Housing Plan for the current Community
Development Block Grant (CDBG-R) housing rehabil itation award from Ka nsas Department of
Commerce. The Plan states t he City of Salina will uphold standards of conduct as adopted by
Kansas Commerce regarding conflict of interes t. The policy applies to any person who is an
employee, elected or appointed official, agent, consultant, officer, or any immediate family member or
business partner of the above, of the recipient, or of any designated publ ic agencies, or sub-
recipients receiving funds from the Kansas Community Development Block Grant program.
CURRENT GRANT ACTIVITY
To date, 18 applicants have qualified for housing rehabilitation assistance under this grant. Eleven
project contracts have been awarded through competitive, Phase I and Phase II bid lettings. Five of
the eleven contracted projects have been finaled, and two are nearing completion. The remaining
four are simply awaiting delivery of materials or appropriate weather conditions to allow work to go
forward.
NCRPC staff is preparing the final group of six projects for bid in July. The conflict of interest hearing
must be held prior to the bid letting. Should there be a determination the project in question has any
potential conflict of interest, it will be necessary to qualify another applican t, as all other qualified
applicants have been or are scheduled to be assisted.
CONFLICT OF INTEREST DISCLOSURE
Corey Scheck, a city employee with the department of Computer Technology, has applied for grant
assistance to rehabilitate the home he and his wife own at 108 E. Bond Avenue. Mr. Scheck is not in
a position to participate in the decision-making process or gain inside information with regard to grant
activities and will not obtain a personal or financial interest or subcontract or agreement with respect
to the grant program, or any proceeds from the program, either for himself or those with whom he has
family or business ties.
The Schecks meet income qualifications. The entire housing rehabilitation scope of work is eligible
under CDBG regulations. The Schecks are not being favored over others who have a greater need
as scored by the program guidelin es, and all other qualif ied applicants have ei ther already been
assisted or are scheduled for assistance under Phase III.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
06-28-10 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR
5
AGENDA:
NO:
Community Development Services
Department
ITEM
NO:1
BY: Judy Irvin BY:
Page 2
CONFLICT OF INTEREST POLICY EXCEPTIONS:
An exception may be considered by Kansas Commerce after the grant applicant has provided the
following:
1. A disclosure of the nature of the conflict accompanied by an assurance that
there has been a public disclosure of the conflict and a description of how the
public disclosure was made;
2. A recording of the disclosure in the official minutes of the governing body of
the grantee; and
3. An opinion of the recipient's attorney that the interest for which the exception
is sought would not violate State or local law.
POST-HEARING ACTIONS
Following State policy, the City Attorney is to issue an opinion whether the potential conflict of interest
would violate State or local law. If no conflict of interest is found after the public hearing, the opinion
letter will be forwarded to Kansas Commerce for de termination of whether an exception will be
granted. Exceptions are issued in the form of a written waiver which notes the basis for the waiver
and any conditions.
Issuance of a waiver will allow a lead hazard insp ection to be scheduled fo r the project. The
inspection will determine whether any lead hazard reduction activity must be done and if so, at what
estimated cost. If the extent of any lead hazar d reduction activity required can be addressed with
CDBG-R grant funds, this project will be sent to bid with the other five remaining CDBG-R projects.
CONFORMANCE WITH STRATEGIC PLAN:
Goal #1: The city will create a community of mixed use, quality development and redevelopment.
RECOMMENDED ACTION:
Conduct the public hearing disclosing that a city employee has applied to be a participant in the
CDBG-R Housing Rehabilitation Program, then:
1. Request the City Clerk to record the disclosure and hearing proceedings, including comments
received and any discussion, in the official minutes of this meeting.
2. Request the City Attorney to provide a written opinion to the board of commissioners regarding
any conflict of interest there might be of a ci ty employee, Corey Scheck, receiving housing
rehabilitation assistance under the current CDBG-R grant.
Attachment: Kansas Department of Commerce Conflict of Interest Policy