Ocean City Makes First Move to Eliminate Ethics Board

City Council voted Thursday night to eliminate the Ocean City Ethics Board.

In a 6-1 vote with Councilman Roy Wagner dissenting, Council approved the first reading of a resolution to "eliminate the 'Ethics Committee' from the list of agencies, advisory boards and commissions included in the Administrative Branch."

A second reading and vote is required before the ordinance can be enacted. That is scheduled for a public meeting on Feb. 9.

The Ethics Board was formed in 2006 under the administration of Mayor Sal Perillo as a way for citizens to file complaints about ethics violations among city officials and employees. The board is charged with investigating complaints and ruling on potential violations.

The board has spent only $1,500 in its existence, according to former Chairman Stanley Pszczolkowski. But an appeal of one of its rulings is scheduled to be heard before an Administrative Law judge in May, and the board is seeking money for legal representation at the hearing.

While the money required is only $15,000 to $22,000, the potential for similar expenses in the future led Council to question the need for a local board when the state's Local Finance Board provides the same ethical oversight to New Jersey towns.

Councilman Keith Hartzell said that while he was originally skeptical about the ability of the state board to provide an equivalent level of service to Ocean City citizens, he changed his mind after speaking with two members of the state board and the board secretary this week.

"If anybody says they don't do a good job, they haven't talked to these folks," Hartzell said.

Hartzell said the timeline for the state board handling citizen complaints is virtually the same as with Ocean City's Ethics Board. He said the process doesn't require citizens to travel to Trenton to file complaints — that can be done by mail. And he said the caseload for the entire state is about 50 per year.

"They're willing, able ... and not jammed up," Hartzell said. "Our guys (Ethics Board) did great, but there's another group that does great."

In casting the lone vote in favor of retaining a local Ethics Board, Councilman Roy Wagner argued that the state's Local Finance Board was not effective and cited statistics that he said show the board found only one and a half violations in 171 cases.

Wagner said "saving $22,000 out of a budget of $69 million" would do little to stop lawsuits against the city.

He said the Ethics Board "will act as a deterrent to keep local offenders on the straight and narrow."

"In four years, the complaint log has 10 complaints, 50 percent from two people," Councilman Scott Ping said. "I just don't see a need for this committee any more."

In public comment, Ocean City residents Ed Price, Fred Hoffman, Pete Guinosso, Joan Farrell (an Ethics Board member), Eric Sauder and Archie Struthers all spoke in favor or retaining the local board, while nobody argued for eliminating it.

"The question isn't whether or not we can afford to have an Ethics Board," Hoffman said. "The question is can we afford not to have one."

Farrell said the Ethic Board's narrow focus (considering breaches of the city's code of ethics) and its power (investigatory tools such as subpoenas) gave the group the ability to truly make a difference and to make progress in eliminating unethical conduct.

"I hate to see good work undone," she said.

If the Ethics Board is eliminated on the second reading of the ordinance Feb. 9, the existing appeal case would be handled by the state's Local Finance Board at the state's expense.

The case involves a ruling that Ocean City Beach Patrol Operations Director Tom Mullineaux falsified records involving lifeguard requalification tests. All files from the Ethics Board would be transferred to the state.

The appeal is scheduled to be heard by an Administrative Law judge in a May hearing.