NEWS RELEASE
On Friday September 24, 2010 there will be two ETHICs hearings involving conflict of interest, regarding two Fort Worth City Council people, Danny Scarth and Jungas Jordon. These cases will be heard by the new and suddenly appointed Ethics review committee. The agenda is attached along with a copy of the complaint.
I am sure you will find it most entertaining to view and report how the City of Forth Worth views Ethics.
ETHICS COMPLAINT AGAINST COUNCILMAN JORDAN AND COUNCILMAN SCARTH
CITY OF FORT WORTH,
Please let this serve as my ethics complaint against Councilman Scarth and Councilman Jordan in voting on, discussing or otherwise influencing any possible amendments to the gas drilling ordinance in light of their previous affidavits of substantial interest in XTO and Chesapeake as this would violate Division 1 of article VII. Code of Ethics.
On Feb. 2, 2010, when Councilman Zim Zimmerman raised the question about taking another look at improving the gas drilling ordinance at the Pre-Council meeting, both Councilman Scarth and Councilman Jordan were quick to say we should not do so.
It is my understanding that both Councilman Scarth and Councilman Jordan have filed affidavits recusing themselves from certain gas drilling votes:
1. Councilman Jordan recuses himself from votes affecting Chesapeake because he owns an interest or has a substantial interest in some property on which Chesapeake is developing resources; and
2. Councilman Scarth recuses himself from votes affecting XTO because he owns an interest or has a substantial interest in some property on which XTO is developing resources.
Councilman Scarth and Councilman Jordan both appear to do so because of the City of Fort Worth City Code section 2-237 Definitions, Substantial Interest (1b)(3)(4) requires them to disclose a substantial interest or certain issues involving family members and not participate in those issues.
Sec. 2-237. Definitions
(1) A person has a substantial interest in a business entity if:
b. Funds received by the person from the business entity exceed ten (10) percent of the person's gross income for the previous year (see Section 171.002, Texas Local Government Code)
(3) A person has a substantial interest in real property if the interest is an equitable or legal ownership interest with a fair market value of two thousand five hundred dollars ($2,500.00) or more (see Section 171.002, Texas Local Government Code).
(4) A person has a substantial interest under this article if the person's spouse or a person related to the person in the first degree by consanguinity or affinity has a substantial interest under this article (see Section 171.002, Texas Local Government Code). A person is related in the first degree by consanguinity to his or her father, mother, brother, sister, son or daughter. A person is related in the first degree by affinity to his or her father-in-law, mother-in-law, brother's spouse, sister's spouse, son-in-law or daughter-in-law.
Sections 2-237,(4) and 2-238 of the Fort Worth City Code prohibit Council members from voting on matters in which they have a substantial interest and in certain cases involving family members. Since Councilman Jordon and Councilman Scarth have declared they have a substantial interest in dealings with Chesapeake and XTO respectively, voting on or even influencing the City Council's decision to amend the city's gas drilling ordinance or regulations could violate the City's prohibition against Council members voting on issues in which they have a substantial interest or other situations as set forth in section 2-238 Standards of Conduct (a, 1, 3 a, b).
(a) No city officer, employee or advisory board member, or their spouses, shall knowingly:
(1) Accept any benefit from any business entity that might reasonably tend to influence him in the discharge of his official duties and Sec 2-238 (3, a, b)
(3) Accept any benefit, of sufficient economic value that it might reasonably tend to influence him, in the discharge of his official duties, from any business entity:
a. Who is licensed or has a substantial interest in any business entity that is licensed by any city department, agency, commission or board on which the city officer, employee or advisory board member serves; or
b. Who has a personal financial interest in any proposed ordinance or decision upon which the city officer may or must act or make a recommendation.
Sec. 2-237,(4)
(4) A person has a substantial interest under this article if the person's spouse or a person related to the person in the first degree by consanguinity or affinity has a substantial interest under this article (see Section 171.002, Texas Local Government Code). A person is related in the first degree by consanguinity to his or her father, mother, brother, sister, son or daughter. A person is related in the first degree by affinity to his or her father-in-law, mother-in-law, brother's spouse, sister's spouse, son-in-law or daughter-in-law.
It would also violate
Sec. 2-239 (a). If any city officer has a substantial interest in any business entity involved in any decision pending before such officer, or the body of which he is a member, such officer shall disclose such interest and shall not vote or otherwise participate in the consideration of such matter.
In other words, if Councilman Scarth and Councilman Jordan recuse themselves from votes on matters involving XTO and Chesapeake respectively because of a substantial interest they have in gas leases with XTO and Chesapeake, then it would follow that Councilman Scarth and Councilman Jordan recuse themselves from re-writing or deciding not to re-write or vote on the rules that Chesapeake or XTO are subject to under the gas drilling ordinance.
Such action would violate sections 2-238 standards of conduct
(a, 1)(3 a, b) and 2-239 (a) of the Fort Worth City Code.
(a) No city officer, employee or advisory board member, or their spouses, shall knowingly:
(1) Accept or solicit any benefit from any person, group or business entity that might reasonably tend to influence him in the discharge of his official duties;
(3) Accept or solicit any benefit, of sufficient economic value that it might reasonably tend to influence him, in the discharge of his official duties, from any person, group or business entity:
a. Who is licensed or has a substantial interest in any business entity that is licensed by any city department, agency, commission or board on which the city officer, employee or advisory board member serves; or
b. Who has a personal financial interest in any proposed ordinance or decision upon which the city officer, employee or advisory board member may or must act or make a recommendation.
Sec. 2-239. Disclosure of interest.
(a) If any city officer, employee or advisory board member has a substantial interest in any person, group or business entity, or real property involved in any decision pending before such officer, employee, or the body of which he or she is a member, such officer, employee, or advisory board member shall disclose such interest as provided in paragraph (c) below and shall not, vote or otherwise participate in the consideration of the matter.
Additionally, on or about December 16, 2008 Councilman Jordon and Council Scarth both did vote on the gas drilling ordinance 18449-02-2009;
“M&C G16407 – Adopt an Ordinance Amending the Code of Ordinance of the City of Fort Worth, by Amending Article II of Chapter 15, “Gas” Entitled “Gas Drilling and Production” by Amending Section 15-31, Definitions Related to the Definitions of a Public Building and Section 15-34, “Gas Well Permit Required” to Amend the Requirements for a Multiple Well Site Permit.”
On March 3, 2009 they voted on Zoning Docket ZC-09-016 amending the zoning Ordinance with Ordinance 18504-03-2009. This ordinance modified the City Zoning Ordinance to give all gas drilling companies, including Chesapeake Energy and XTO additional latitude where gas compressors were allowed.
These votes would violate Sec. 2-239 (a). If any city officer has a substantial interest in any business entity involved in any decision pending before such officer, or the body of which he is a member, such officer shall disclose such interest and shall not vote or otherwise participate in the consideration of such matter.
The City Council also selected and appointed members to the Air Quality Committee. The City Council, including Councilman Scarth and Councilman Jordon then voted and adopted a resolution on March 9, 2010 to approve its formation along with charging the committee with the responsibility of;
(a) Identifying the objectives and specific questions for the proposed study, (b) evaluate the qualifications and conduct interviews of the prospective consultants, (c) review the proposed scope of work of candidate consultants, (d) recommend a consultant and study framework to city council, (e) receive a briefing on the study results and provide feedback to the City Council.
The Air Quality Committee appointed by the City Council included three representatives who are employees of Gas Drilling entities. Two of the three representatives are employees of Chesapeake Energy and XTO and each did represent their respective company during the Air Quality Committee Meetings as such.
Any regulations that ultimately result from this committee will regulate all gas drilling operations in Fort Worth. Included in those gas drilling companies that will be regulated will be Chesapeake Energy and XTO, two of the largest operators in Fort Worth.
In Section 2-236. DECLARATION OF POLICY it is stated that no Officer should have any interest, financial or otherwise, direct or indirect of any nature, which is in conflict with the proper discharge of his duties in the public interest. Councilman Scarth and Councilman Jordon both have acknowledged having a substantial interest in Chesapeake Energy and XTO, with affidavits filed with the City Secretary indicating such.
These two companies represent the majority of the gas drilling and gas operations currently taking place in Fort Worth. In essence, when the City Council, including Councilman Scarth and Councilman Jordon, voted on this resolution, they were creating how and by whom the regulations being formulated will regulate the gas drilling companies including Chesapeake Energy and XTO. Mr. Scarth and Mr. Jordon have each acknowledged filing affidavits previously, saying they have a substantial interest in either Chesapeake Energy or XTO and as such a conflict of interest exists by their voting on this item.
This would violate Sec. 2-239 (a). If any city officer has a substantial interest in any business entity involved in any decision pending before such officer, or the body of which he is a member, such officer shall disclose such interest and shall not vote or otherwise participate in the consideration of such matter.
I like Danny Scarth personally, but I am afraid the money associated with gas drilling blinds him, even though gas drilling has adverse impacts on health and neighborhoods. I do not know Jungas Jordan.
I would refer to the affidavits of substantial interest filed by Councilman Jordan and Councilman Scarth in the City's possession in support of this complaint.
I, Jim Ashford, complainant, swear that I have knowledge of facts alleged in this complaint and that the information contained in this complaint is true and correct.
_______________________________
Signature of complainant Subscribed before me this day
Jim Ashford
6209 Riverview Circle ______________________
Fort Worth, TX 76112 NOTARY
817-457-4237
_________________________________________________________
REVISED
AGENDA
ETHICS REVIEW COMMITTEE
FRIDAY, SEPTEMBER 24, 2010
10:30 A.M.
PRE-COUNCIL CHAMBERS
2ND FLOOR
FORT WORTH CITY HALL
1000 THROCKMORTON STREET
FORT WORTH, TEXAS 76102
1. Call to Order and Announce a Quorum is Present
2. Approval of the Minutes of the August 5, 2010, Meeting
3. Appointment of Temporary Chair (if necessary)
4. Cause No. 2010-01: Hearing on Amended Ethics Complaint Filed Against City Council Member Danny Scarth, District 4, and City Council Member Jungus Jordan, District 6, by Jim Ashford dated July 28, 2010:
a. Recusal on decisions to consider amendments to drilling ordinances (page 3, par. 3 of complaint)
b. Vote on M&C G-16407 on December 16, 2008 (page 4, par. 1 of complaint)
c. Vote on Zoning Docket Case ZC-09-016 on March 3, 2009 (page 4, para. 3 of complaint)
d. Vote on Resolution appointing members to Air Quality Study Committee on March 9, 2010 (page 4, para. 5 of complaint)
5. Cause No. 2010-03: Hearing on Ethics Complaint Filed Against City Council Member Danny Scarth, District 4, by Louis McBee dated July 15, 2010
6. Executive Session: To seek the advice of its attorney concerning the subject Ethics Complaints; such matters are exempt from public disclosure under Article X, Section 9 of the Texas State Bar Rules, and in accordance with Texas Government Code, Subchapter D, Section 551.071(LEGAL).
7. Adjourn
NOTICE OF ASSISTANCE AT PUBLIC MEETINGS
The Fort Worth City Hall and meeting room facilities are wheelchair accessible, and accessible parking spaces are available. Request for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary’s Office at 817-392-6150 or FAX: 817-392-6196 for further information.
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