STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

 

 

IN RE:  JAMES NAUS              )

                                )                         CASE NO. 96-5800EC

     Respondent.                )

________________________________)

 

 

RECOMMENDED ORDER

Pursuant to notice, the Division of Administrative Hearings, by its duly designated Administrative Law Judge, Carolyn Holifield, held a formal hearing in this case on March 7, 1997, in Mexico Beach, Florida.

APPEARANCES

  For Advocate:  Eric S. Scott

                      Assistant Attorney General

                      Attorney General's Office

                      PL-01, The Capitol

                      Tallahassee, Florida  32399-1050

 

For Respondent:  James Naus

                      Post Office Box 13126

                      Mexico Beach, Florida  32410

 

STATEMENT OF THE ISSUE

Whether Respondent violated Sections 112.3143(3)(a), 112.3143(4), and 112.313(7)(a), Florida Statutes (1993), by committing the acts alleged in the Order Finding Probable Cause and, if so, what penalty is appropriate.

PRELIMINARY STATEMENT

On October 15, 1996, the Florida Commission on Ethics (Commission) entered an Order Finding Probable Cause to believe that Respondent, James Naus (Respondent), while serving on the Mexico Beach Planning and Zoning Board violated Sections 112.3143(3)(a), Florida Statutes (1993), by failing to properly disclose and file a memorandum regarding his conflict; Section 112.3143(4), Florida Statutes (1993), by participating in a matter in which he had an interest without disclosing his interest; and Section 112.313(7)(a), Florida Statutes (1993),  by representing a private client before the Board on which Respondent served.  On November 25, 1996, this case was forwarded to the Division of Administrative Hearings for assignment of an administrative law judge to conduct the hearing and to prepare a recommended order.


Before the formal hearing, the parties stipulated to facts which were admitted without proof at the hearing.  The Advocate called one (1) witness, Respondent, James Naus.  Respondent, testified on his own behalf and called one (1) witness: Garry Gaddis.  The parties stipulated to the introduction of five (5) joint exhibits.  The proceeding was recorded but not transcribed.  Both parties filed proposed recommended orders.

FINDINGS OF FACT

1.  All times pertinent to this proceeding, Respondent served as a member of the Mexico Beach Planning and Zoning Board (Zoning Board).  Respondent began his service on the Board in mid-April, 1994.  In that public position, Respondent was subject to the requirements of Part III, Chapter 112, Florida Statutes, the Code of Ethics for Public Officers and Employees.

2.  In late 1993, Respondent contracted with the owners of Toucans Restaurant (Toucans) to build an additional story on the existing building.  Toucans is a bar/restaurant located on Highway 98 in Mexico Beach, Florida.

3.  The Zoning Board is empowered to make decisions relative to zoning and rezoning matters, including the granting of parking variances.

4.  In furtherance of his work for Toucans, Respondent sought a parking variance from the Zoning Board.  To this end, Respondent appeared before the Zoning Board on three separate occasions.

5.  The last time Respondent appeared before the Zoning Board regarding the parking variance for Toucans was April 19, 1994, shortly after his appointment to the Zoning Board.  At that meeting, Respondent was representing Toucans before the Zoning Board and attempting to secure a parking variance for Toucans.

6.  At the April 19, 1994 meeting, when Respondent presented the Toucans parking variance issue before the Zoning Board, he participated in the Zoning Board's discussion of the matter.

7.  Prior to his participating in the Zoning Board's discussion of the Toucans matter on April 19, 1994, Respondent failed to formally announce his interest in the Toucan project.

8.  Respondent failed to file a written memorandum disclosing his interest in the matter prior to the April 19, 1994 meeting.

9.  Respondent failed to orally disclose the nature of his interest in the Toucans project at the April 19, 1994 Zoning Board meeting.

10.  At its April 19, 1994 meeting, the Zoning Board voted on the Toucans project.  Respondent abstained from voting on the Toucans parking variance request at that meeting, but did not file a written memorandum disclosing his interest in the project within fifteen days of the vote.

11.  Respondent filed a Memorandum of Voting Conflict with respect to the Toucans parking variance request on May 27, 1994.

CONCLUSIONS OF LAW


12.  The Division of Administrative Hearings has jurisdiction over the parties and the subject matter of this proceeding.  Section 120.57(1), Florida Statutes.

13.  Section 112.322, Florida Statutes, and Rule 34-5.0015, Florida Administrative Code, authorize the Commission to conduct investigations and to make public reports on complaints concerning violations of Part III, Chapter 112, Florida Statutes, (the Code of Ethics for Public Officers and Employees).

14.  The burden of proof, absent a statutory directive to the contrary, is on the party asserting the affirmative of the issue in the proceedings.  Department of Transportation v. J.W.C. Co., Inc., 396 So.2d 778 (Fla. 1st DCA 1981); Balino v. Department of Health and Rehabilitative Service, 348 So.2d 349 (Fla. 1st DCA 1977).  In this proceeding, the Commission, through its Advocate, is asserting the affirmative: that the Respondent violated Sections 112.3143(3)(a) and, 112.3143(4), Florida Statutes (1993).  The Commission must establish by clear and convincing evidence the elements of Respondent's alleged violations.  Gary D. Latham v. Florida Commission on Ethics, No. 96-1224 (Fla. 1st DCA) April 23, 1997.

15.  It has been alleged that Respondent violated Section 112.3143(4), Florida Statutes (1993), by participating in a matter which would inure to his private gain without properly disclosing the nature of his interest and the nature of the conflict.  Section 112.3143(4), Florida Statues (1993), provides:

No appointed public officer shall participate in any matter which would inure to his special private gain; which he knows would inure to the special private gain of any principal by whom he is retained or to the parent organization or subsidiary of a corporate principal by which he is retained; or which he knows would inure to the special private gain of a relative or business associate of the public officer, without first disclosing the nature of his interest in the matter.

 


(a)  Such disclosure, indicating the nature of the conflict, shall be made in a written memorandum filed with the person responsible for recording the minutes of the meeting, prior to the meeting in which consideration of the matter will take place, and shall be incorporated into the minutes.  Any such memorandum shall become a public record upon filing, shall immediately be provided to the other members of the agency, and shall be read publicly at the next meeting held subsequent to the filing of this written memorandum.  (Emphasis supplied.)

 

16.  The term "participate" is defined by Section 112.3143(4)(c), Florida Statutes (1993), as follows:

(c)  For purposes of this subsection, the term "participate" means any attempt to influence the decision by oral or written communication, whether made by the officer or at his direction.

 

17.  In order for it to be concluded that the Respondent violated Section 112.3143(4), Florida Statutes (1993), as alleged, the Advocate must establish the following elements:

1.  Respondent must have been an appointed public officer.

 

2.  The Respondent must have participated in a matter which would have inured to the Respondent's own special private gain without first disclosing the nature of his interest in the matter.

 

3.  The Respondent must have failed to properly file a written memorandum indicating the nature of his conflict prior to the meeting at which the matter was to be considered.

 

18.  The parties have stipulated that the Respondent, James Naus, as a member of the Zoning Board, was subject to the requirements of Part III, Chapter 112, Florida Statutes.

19.  To establish a violation of Section 112.3143(4), Florida Statutes (1993), it must next be established that Respondent participated in a discussion as a member of the Zoning Board that inured to his special private gain without disclosing the nature of his interest.

20.  Respondent admitted participating in the Zoning Board's discussion of the Toucans parking variance matter on April 19, 1994.  The actual construction of the proposed addition to Toucans was subject to the Zoning Board's granting the parking variance.  Therefore, approval of the Toucans parking variance request would inur to Respondent's special private gain because of his contractual relationship with the owner of Toucans to build an additional story on the restaurant.


21.  Next, to establish a violation of Section 112.3143(4), Florida Statutes (1993), it must be proven that, prior to participating in the Zoning Board's discussion of the Toucans parking variance issue, Respondent failed to disclose the nature of his interest in the matter.  Such disclosure is required to be made (1) in a written memorandum filed with the person responsible for recording the minutes of the meeting prior to the meeting at which the matter will be considered; or (2) orally at the meeting when it becomes known that a conflict exists.  Section 112. 3143(4)(a) and (b), Florida Statutes (1993).

22.  The uncontroverted evidence established that Respondent failed to properly disclose the nature of his interest in the Toucans project prior to participating in the Zoning Board's discussion of the matter on April 19, 1994.  Respondent neither filed a written memorandum indicating the nature of his conflict prior to the meeting at which the matter was to be considered nor did he orally disclose the conflict at the meeting when it became known that such conflict existed as required by Section 112.3143(4)(a) and (b), Florida Statutes (1993).

23.  The Advocate for the Commission has established by clear and convincing evidence each of the requisite elements and, thus has proven that Respondent violated Section 112.3143(4), Florida Statutes (1993).

24.  It is further alleged that Respondent violated Section 112.3143(3)(a), Florida Statutes (Supp. 1994), by (1) failing to properly disclose the nature of his interest in the matter from which he was abstaining from voting; and (2) failing to properly disclose and file a memorandum regarding the nature of his interest within fifteen days of the vote.

25.  Section 112.3143(3)(a), Florida Statutes (1993), provides:


No county, municipal, or other local public officer shall vote in an official capacity upon any measure which would inure to his or special private gain; which he knows would inure to the special private gain of any principal by whom he or she is retained or to the parent organization or subsidiary of a corporate principal by which he is retained, other than an agency as defined in s. 112.312(3); or which he or she knows would inure to the special private gain or loss of a relative or business associate of the public officer.  Such public officer shall, prior to the vote being taken, publicly state to the assembly the nature of his interest in the matter from which he is abstaining from voting and, within fifteen days after the vote occurs, disclose the nature of his or her interest as a public record in a memorandum filed with the person responsible for recording the minutes of the meeting, who shall incorporate the memorandum in the minutes.

 

26.  In order for it to be concluded that the Respondent violated Section 112.3143(3)(a), Florida Statutes (1993), the Advocate must establish the following elements:

1.  The Respondent must have been a county, municipal or other local public officer serving on a collegial body.

 

2.  The Respondent must have voted in his or her official capacity on a measure which would have inured to the Respondent's own special private gain or loss.

 

                      or

 

3.  When abstaining from a vote because of a conflict, the Respondent, prior to the vote being taken, must have failed to publicly state to the assembly the nature of his or her interest in the matter in which he is abstaining.

 

                      and

 

4.  After abstaining from a vote because of a conflict, the Respondent failed to disclose the nature of his or her interest in the measure in a memorandum filed within 15 days after the vote occurred with the person responsible for recording the minutes of the meeting at which the vote occurred.

 

27.  With regard to the first element, the parties have stipulated that the Respondent, as a member of the Zoning Board, was subject to the requirements of Part III, Chapter 112, Florida Statutes (1993).

28.  To prove a violation of Section 112.3143(3)(a), Florida Statutes (1993), the Advocate must next establish that Respondent failed to publicly state to the assembly the nature of his interest in the matter from which he was abstaining from voting.   The Advocate established by clear and convincing evidence that Respondent failed to publicly comply with this statutory prescription.  Thus, the Advocate has established the second element required to prove a violation of Section 112.3143(3)(a), Florida Statutes (1993).


29.  The third element that must be proven to establish a violation of Section 112.3143(3)(a), Florida Statutes, is that Respondent, after abstaining from voting on a matter inuring to his special benefit, failed to file a memorandum disclosing the nature of his conflict within fifteen days after the vote occurred.

30.  The evidence at hearing established that the Zoning Board voted on the Toucans parking variance request on April 17, 1994.  Furthermore, it is undisputed that Respondent abstained from voting on the Toucan matter and, after doing so, also failed to file a memorandum disclosing his interest within fifteen days after the vote occurred.  Respondent filed a memorandum disclosing the nature of his interest in the matter from which he abstained from voting, but not within the statutorily prescribed timeframe.  Respondent filed a Memorandum of Voting Conflict on May 27, 1994.

31.  Having established each of the required elements by clear and convincing evidence, the Advocate has proven that Respondent violated Section 112.3143(3)(a), Florida Statutes (1993).

32.  It has been further alleged that Respondent violated Section 112.313(7)(a), Florida Statutes (1993), by representing a client before the Zoning Board on which Respondent has served.  Section 112.313(7)(a), Florida Statutes (1993) provides the following:

CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP.

 

(a)  No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he is an officer or employee, excluding those organizations and their officers who, when acting in their official capacity, enter into or negotiate a collective bargaining contract with the state or any municipality, county, or other political subdivision of the state; nor shall an officer or employee of any agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his private interests and the performance of his public duties or that would impede the full and faithful discharge of his public duties.

 

33.  In order for it to be concluded that the Respondent violated Section 112.313(7)(a), Florida Statutes, the Advocate must establish  the following elements:

1.  The Respondent must have been a public officer or employee.

 


2.  The Respondent must have been employed by or have had a contractual relationship with a business entity or an agency.

 

3.  Such business entity must have been subject to the regulation of, or doing business with, the agency of which the Respondent was an officer or employee.

 

                     OR                     

 

4.  Respondent's employment or contractual relationship with the business entity or agency will (a) create a continuing or frequently recurring conflict between the Respondent's private interest and the performance of the Respondent's public duties; or (b) impede the full and faithful discharge of the Respondent's public duties.

 

34.  The parties have stipulated that the Respondent, as a member of the Mexico Beach Planning and Zoning Board, was subject to the requirements of Part III, Chapter 112, Florida Statutes (1993).  Therefore, the first element necessary to prove a violation of Section 112.313(7)(a), Florida Statutes (1993), has been established.

35.   It must next be established that Respondent had a contractual or employment relationship with a business entity or agency.  In the instant case, the parties stipulated to the fact that Respondent had a contractual relationship with Toucans.  Thus, the second element necessary to prove a violation of Section 112.313(7)(a), Florida Statutes (1993), has been established.

36.  To prove a violation of Section 112.313(7)(a), Florida Statutes (1993), the Advocate must establish that the business entity with which Respondent has a contractual relationship is subject to regulation by the Zoning Board on which Respondent serves.

37.  In this case, the evidence clearly established that the Zoning Board was the governmental body empowered to grant parking variances.  The construction of the proposed addition to Toucans was subject to and conditioned upon the Zoning Board's granting a parking variance.  Thus, the Advocate has established by clear and convincing evidence that Toucans was regulated by the Zoning Board.


38.  A violation of Section 112.313(7)(a), Florida Statutes (1993), is likewise proven if it is established that Respondent's contractual relationship with Toucans will impede the full and faithful discharge of his public duties.  In this case, Respondent had a contractual relationship with Toucans and represented that client before the Zoning Board for the purpose of seeking a parking variance.  By representing a client before the Zoning Board on which he served, Respondent's independence and impartially were jeopardized; Respondent was given an undeniable advantage over other members of his profession or occupation in such matters; and strongly presented the appearance of public office being used for private gain.

39.  The Advocate has established by clear and convincing evidence that Respondent violated Section 112.313(7)(a), Florida Statutes (1993).

RECOMMENDATION

Based on the foregoing Findings of Fact and Conclusions of Law, it is recommended that Final Order and Public Report be entered by the Florida Commission on Ethics finding that Respondent, Jim McCoullough, violated Sections 112.3143(3)(a), 112.3143(4) and 112.313(7)(a), Florida Statutes (1993), and imposing a civil penalty of $300.00.

DONE and ENTERED this 30th day of April 1997, in Tallahassee, Florida.

 

                      ___________________________________

                      CAROLYN S. HOLIFIELD

                      Administrative Law Judge

                      Division of Administrative Hearings

                      The DeSoto Building

                      1230 Apalachee Parkway

                      Tallahassee, Florida  32399-3060

                      (904) 488-9675   SUMCOM 278-9675

                      Fax Filing (904) 921-6847

 

                      Filed with the Clerk of the

                      Division of Administrative Hearings

                      this 30th day of April 1997.

 

 

Copies Furnished:

 

Eric Scott, Esquire

Department of Legal Affairs

The Capitol PL-01

Tallahassee, Florida  32399-1050

 

Kerrie Stillman

Complaint Coordinator

Florida Commission on Ethics

Post Office Drawer 15709

Tallahassee, Florida  32317-5709

 

Mr. James Naus

115 Fifth Street

Mexico Beach, Florida  32410

 


Bonnie Williams

Executive Director

Florida Commission on Ethics

Post Office Drawer 15709

Tallahassee, Florida  32317-5709

 

Phil Claypool

General Counsel

Florida Commission on Ethics

Post Office Drawer 15709

Tallahassee, Florida  32317-5709

 

 

NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

 

All parties have the right to submit written exceptions within 15 days from the date of this recommended order.  Any exceptions to this recommended order should be filed with the agency that will issue the final order in this case.