HomeMy WebLinkAbout770956.tiff MINUTES BCD
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WELD COUNTY COUNCIL � .
May 18, 1977 Q 5"" ..
JUN 1977
The Weld o n met regular s o
conformity with the Weld County Home Rule Chaj er saga' �°'
9th Avenue and 9th Street, Greeley, Colorado, May 18,
1977 at the hour of one thirty.
ROLL CALL: The meeting began with an invocation by Nancy Clark, President.
The following members were present:
Nancy Clark, President
Bob E. White, Vice President
John T. Martin, Councilman
Floyd Oliver, Councilman
Bob Martin, Councilman
Also present: Richard Schumann, President of the Commercial
Banks Association; five members of the press; secretaries
Bonnie Hickman and Bev Thomas. Late arrival: Ed Dunbar,
County Commissioner.
MINUTES: Bob White made corrections in the May 4, 1977 minutes. Corrections
were: on page two under Road and Bridge "work done" to "repairs";
also, last sentence add "If this information is correct"; and on
page three, first line change "county" to "council". Bob Martin
made a correction under Special Legal Counsel on page four. The
correction was to delete "Telep and Connell". Floyd Oliver made a
motion, seconded by John Martin to approve the minutes of May 4,
1977 as corrected. Motion carried unanimously.
REPORTS
CONFLICT OF INTEREST-LOUSTALET: Mr. Schumann, President of the Commerical
Banks Association, explained the operational aspects of holding
companies in order to assist the Council in their determination
of conflict of interest with Mr. Loustalet.
Mr. Schumann explained that there are two technical points of
view regarding whether Mr. Loustalet has a conflict of interest.
First, Mr. Loustalet has no conflict of interest because he has
no stock in First National Bank of Greeley. Secondly, the holding
company in which he holds stock, holds the controlling interest of
First National Bank so he does have a conflict.
Mr. Schumann felt that Mr. Loustalet's ability to make a deposit
of county funds that would in any way influence a corporation
with assets of over one billion dollars was negligible. He
stated that he had always felt fairly treated by Mr. Loustalet
and that those of his colleagues with whom he had conferred
felt the same.
Nancy Clark pointed out the Council must make a decision on
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County Council Minute Page 2
May 18, 1977
conflict of interest based on any County Treasurer; not on Mr.
Loustalet's personal character.
Floyd Oliver asked for a distinction between owning stock in the
First National Bank and in owning stock in the holding company.
Mr. Schumann explained that as a stockholder of the holding
company Mr. Loustalet could only vote on those matters decided
by the holding company stockholders. Technically then, the
person who holds the proxy vote for the holding company could
elect all the local bank's directors, though in practice this
is not the case.
Floyd Oliver asked Nancy Clark to reread the specific charter
provisions regarding conflict of interest. Mr. Oliver then
stated he thought this problem was a clear violation of the
oath Mr. Loustalet had taken to uphold the charter. Mr. Oliver
felt that ownership in the holding company is the same as
ownership in the local bank.
Bob Martin stated that Mr. Loustalet technically, indirectly
owns stock in all subsidaries of First National Bank Corporation.
However, he felt that this was not a clear-cut case of conflict
of interest. -
Mr. John Martin also felt that the possibility of a conflict of
interest was remote. He stated this was a case of "splitting'
hairs" which destroys good government.
Nancy Clark felt that when a person uses their office for
personal gain that constitutes a conflict of interest. Therefore,
she felt Mr. Loustalet did not have a conflict of interest.
John Martin made a motion, seconded by Bob Martin, that the
Council rule Mr. Loustalet did not have a conflict of interest.
In a roll call vote of four to one the motion was carried with
Mr. Oliver voting nay.
Bob White moved that the chairperson be instructed to have the
department of law draft a resolution stating the Council's
conclusion regarding Mr. Loustalet. Bob Martin seconded the
motion. The motion was carried.
ROAD AND BRIDGE: Bob White stated that there are questions that need to be
researched in the Road and Bridge Division and the Council needs
someone to do leg work on it.
Floyd Oliver moved that the Council proceed with locating an
investigator for the Council to interview who would investigate
the Road and Bridge Division. Bob Martin seconded the motion.
Floyd Oliver then withdrew the motion with approval of the second.
Discussion followed regarding the definition of "performance auditor".
Bob White moved that pursuant to Charter Section 13:8 (6 8 7) the
Council shall interview and hire a performance auditor. Floyd Oliver
seconded the motion. There was unanimous approval.
County Council Minutt Page 3
May 18, 1977
Concerns were expressed that if an investigation was done the
findings may be ignored. It was suggested that the Council
meet with the County Commissioners to dialogue with them
about improving county government.
Bob Martin moved that the Council invite the County Commissioners
to our next regular County Council meeting. John Martin seconded
the motion. The motion carried. Nancy Clark said she would make
arrangements with the canvassers and the County Commissioners to
arrange meeting times with both groups.
Bob White mentioned that the Council should make specific
recommendations to the performance auditor as to what the Council
wants investigated. It was decided that the Council would meet
for a work session on Wednesday, May 25, 1977 to do that.
COMMUNICATIONS: John Martin read part of a Greeley Tribune news article
regarding the new Emergency Medical Services communications
system recently installed in the county. He noted he has heard
positive comments regarding the system.
DISCUSSION OF POSSIBLE PRIORITIES: Floyd Oliver suggested that at a later date
some study be made in the Planning Department regarding the city
rezoning when county property is annexed. Bob White suggested
another area of study might be the confusing county recording
system.
CORRESPONDENCE: Nancy Clark noted receipt of a letter for the County
Commissioners. She read letters from Congressman Jim Johnson with
information he had sent regarding conflict of interest.
A memo from the Weld County Library was presented. Nancy Clark
also passed out information from Public Administrators Review
regarding developing a code of ethics.
It was decided the Weld County Extension office should be notified
to send only one office copy of their releases to the Council.
There being no further business, the meeting was adjourned.
Respectfully submitted,
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Bev Thomas APPROVED €fc l (.
Council Secretary ////
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