2010-771
Created By: Tracy Kristen Meyer on 08/23/2010 at 01:40 PM
Category: Ethics Advisory Opinions, Miscellaneous
Caption: A company owned by the immediate family members of the Director of Public Works for the City of Mandeville is not prohibited from entering into subcontracts with a City contractor since they own less than 25% of the company.

August 23, 2010

Mr. David deGeneres
Director of Public Works
City of Mandeville
3101 East Causeway Approach
Mandeville, Louisiana 70448

Re: Ethics Board Docket No. 2010-771

Dear Mr. DeGeneres:

The Louisiana Board of Ethics, at its August 20, 2010 meeting, considered your request for an advisory opinion as to whether Crawford Aggregate Industries, LLC may enter into a contract with Lou-Con, Inc. to perform services on the City of Mandeville Treatment Plant Upgrade project while you serve as the Director of Public Works for the City of Mandeville. You stated that as the Director of Public Works, you are responsible for capital projects. You stated that in July 2010, the Mandeville City Council awarded a contract to Lou-Con, Inc. for the Treatment Plant Upgrade Project. During pre-construction meetings, you stated that you became aware that Crawford Aggregate Industries, LLC was a subcontractor of Lou-Con, Inc.'s on this project. Crawford Aggregate Industries is owned in part by your brother and sister-in-law, Taylor and Melissa deGeneres. Together, you stated that Taylor and Melissa deGeneres own 13.1% of Crawford Aggregate Industries.

The Board concluded, and instructed me to inform you, that the Code of Governmental Ethics would not prohibit Crawford Aggregate Industries from entering into a subcontract with Lou-Con, Inc. to perform services on the City of Mandeville Treatment Plant Upgrade project while you serve as the Director of Public Works for the City of Mandeville. Section 1113A of the Code prohibits a public servant, a member of his immediate family and a legal entity in which either owns a controlling interest from bidding on or entering into any contract, subcontract or other transaction that is under the supervision or jurisdiction of the public servant's agency. Section 1102(8) of the Code defines "controlling interest" as any ownership in a legal entity held by or on behalf of an individual or a member of his immediate family, either individually or collectively, which exceeds 25% of that legal entity. Since your brother and sister-in-law own less than 25% of Crawford Aggregate Industries, Crawford Aggregate Industries is not prohibited from entering into a subcontract agreement with Lou-Con, Inc. to provide services on the Mandeville City Treatment Plant Upgrade Project while you serve as the Director of Public Works. However, Section 1113A of the Code would prohibit both Taylor and Melissa deGeneres from representing Crawford Aggregate Industries in any project involving the Mandeville City Department of Public Works while you serve as the Director of Public Works.
Mr. David deGeneres
August 23, 2010
Ethics Board Docket No. 2010-771
Page 2

In addition, the Board concluded, and instructed me to inform you, that Section 1112 of the Code would prohibit you, in your capacity as the Director of Public Works for the City of Mandeville, from participating in any transactions involving the Department of Public Works in which your brother and sister-in-law have a substantial economic interest. Section 1112 of the Code prohibits a public servant from participating in a transaction involving his governmental entity in which a member of his immediate family has a substantial economic interest.

This advisory opinion is based solely on the facts as set forth herein. Changes to the facts as presented may result in a different application of the provisions of the Code of Ethics. The Board issues no opinion as to past conduct or as to laws other than the Code of Governmental Ethics. If you have any questions, please contact me at (800) 842-6630 or (225) 219-5600.

Sincerely,

LOUISIANA BOARD OF ETHICS



______________________________
Tracy M. Barker
For the Board

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