JEFFERSON COUNTY BOARD OF ETHICS clo County Attomey’s Office 175 Arsenal Street Watertown, New York 13601 ADVISORY ETHICS OPINION 06-0} SUMMARY: A town councilman would have a potential conflict of interest in participating in the adoption of local zoning regulations where such regulations may indirectly impact his private pecuniary interests. The town councilman should recuse himself from discussion of, and voting on, the adoption of such regulations. (CROSS-REFERENCES: General Municipal Law §809 ‘Tuxedo Conservation and Taxpayers Association vs. Town Bd. Of Town of Tuxedo, 69 A.D.2d 320 (2" Dept 1979) DISCLOSURE: Opinions of the Board of Ethics shall not be made public by the Board or disclosed to the public unless required by the Freedom of Information Law (NY Public Officers Law Article 6), in which case the identity of the person requesting the opinion shall not be disclosed. FACTS: A Town Board is considering adoption of local zoning regulations to permit the presence of wind farms within the Town. A town councilman is a former sharcholder of an LLC located in the Town currently owned by his brother and two nephews. The LLC has signed a contract with a wind farm developer to permit the latter to operate a wind farm on its property in the Town, and expects between 6-20 windmills to be installed and maintained on its property with an annual income of §| er windmill. Although a wrcholder of the LLC, the to councilman is ivemonthly payments of| the LLC for a period off years as part of a “buy out” agreement between the parties executed in 2005. In addition, as part of the parties’ agreement, the toygy councilman is to be emplo} LLC until 2012 as an hourly wage employee worki ours per week at the rate —_ hour. At present, the councilman also currently remains personally liable as a guarantor on a substantial loan to the LLC. Page 1 of 3DISCUSSION: General Municipal Law §809(1) states that, “very application, petition or request Submitted for a variance, amendment, change OF zoning... pursuant to the provisions of any Oriinance, local law, rule or regulation constituting the con Tiuricipality shal state the name, residence and the nature avs extent of the interest of any state spProval of such application, petition or request” Although General Municipal Law §809 only Eeanites the disclosure ofthe identity ofthe public officer employee involved in the Page 2 of 3compensation from the LLC as part of his buy-out agreement with said entity in both monthly payments and wages, and additionally, he remains the personal guarantor of a substantial loan to the LLC. Consequently, he stands to indirectly financially benefit by the adoption of such regulations because such regulations would permit the contract between the LLC and the wind farm developer to be consummated, thereby helping to ensure the financial viability of the LLC, which in tum makes it more likely that he will be paid in accordance with his buy-out agreement with the LLC and also more likely that he will avoid liability as guarantor of the loan to the LLC. Given all of the abave, itis the opinion of this Board that it would be better for the councilman to err on the side of caution to avoid the “appearance of impropriety”. CONCLUSIO! A town councilman would have a potential conflict of interest as he is the brother of one the shareholders/owners of the LLC which stands to gain financially in its contract with a wind farm developer should regulations be adopted permitting wind farms in the Town. Notwithstanding whether General Municipal Law §809 is technically applicable to the matter under review, the councilman’s participation in the discussion and voting on such regulations would at least create an appearance of impropriety because of his ongoing financial relationship with the LLC, Given the above, the councilman should recuse himself from discussion of, and voting on, the adoption of such regulations, Dated: JulyQ’7, 2006. Barbara Webber femann Page 3 of 3