2014-778 - Laserfiche WebLink

STATE OF LOUISIANA 4!pf tiogjs-. DEPARTMENT OF STATE CIVIL SERVICE , „ .� LOUISIANA BOARD OF ETHICS .�Q ,, �V P.O.BOX 4368 �� LS$' BATON ROUGE,LA 70821 ° � (225)219-5600 FAX:(225)381-7271 1-800-842-6630 www.ethics.state.la.us July 22, 2014 Louis G. Gruntz,Jr. City of Kenner, Office of the City Attorney 1801 Williams Boulevard Building C, Suite 100 Kenner, LA 70062 Re: Ethics Board Docket No.2014-778 Dear Mr. Gruntz: The Louisiana Board of Ethics, at its July 18, 2014 meeting, considered your request for an advisory opinion as to the propriety of the City of Kenner maintaining Acacia Financial Group, LLC ("Acacia") as its Agent of Record for employee health insurance benefits. You stated that Acacia was appointed in 2010 to serve as the City of Kenner's Agent of Record for health insurance coverage and has since that time solicited proposals each year from qualified health insurance providers to be submitted to Sigma Consulting. You explained that after an analysis of these proposals, a formal recommendation is then made by Sigma Consulting to the Kenner City Council as to the best provider for employee health insurance coverage. The Kenner City Council then approves the health insurance provider contract between the City of Kenner and the chosen insurance company. A standard broker's commission of 1% is paid to Acacia directly from the chosen health insurance provider based on monthly premiums paid by the City of Kenner for employee coverage. You provided further information that Acacia is entirely owned by Nick Impastato, the father of the Councilmember Elect for District 5, Dominick Impastato. You also stated that Acacia's appointment as the City of Kenner's Agent of Record was made by the Mayor in 2010, and the appointment has not been renewed nor have any of the terms of the appointment been changed. Finally, you stated that Acacia's appointment will remain unchanged until another company is appointed to be the City of Kenner's Agent of Record. The Board concluded,and instructed me to inform you, that the Code of Governmental Ethics would not prohibit the City of Kenner from maintaining Acacia as its Agent of Record for employee health insurance benefits while Dominick Impastato serves as a Councilmember for the Kenner City Council. La. R.S. 42:1113 prohibits public servants, their immediate family members, or legal entities in which they have a controlling interest, from entering into any contract, subcontract, or other transaction that is under the supervision or jurisdiction of the agency of such public servant. Therefore, Acacia may maintain its appointment as Agent of Record for the City of Kenner while Dominick Impastato serves as a Councilmember for the City of Kenner as long as the appointment is not renewed or the terms changed. You should note, however, that La. R.S. 42:1112B(1) provides that no public servant shall, participate in a transaction involving the governmental entity in which to his actual knowledge any member of his immediate family has a substantial economic interest. Therefore, Dominick Impastato would be prohibited from participating in any matter regarding the selection of health insurance providers or approval of health insurance provider contracts while his father is the Agent of Record for employee health insurance benefits for the City of Kenner. AN EQUAL OPPORTUNITY EMPLOYER