ENERGY PROCUREMENT CALLED INTO QUESTION
Ethics Board to review allegation at meeting today
SARATOGA SPRINGS, N.Y. >> With the City of Saratoga Springs Democratic Primary just two days away, a letter delivered to personnel of the City of Saratoga Springs and the Ethics Board alleging a violation of the city’s ethics code may have been committed by Edward Miller, Chairman of the Saratoga County Independence Party because his business interest in a city contract was not disclosed.
The formally registered document could present political implications for the coming Democratic Primary for Finance Commissioner as well as for the other incumbents running for reelection in November.
The letter of complaint filed with the City Board of Ethics from Ann Bullock, former member and secretary of the City Charter Review Commission (201617), and William McTygue, former Director of Public Works draws into question the actions of Miller because his business interest in a city contract was not disclosed.
The correspondence addressed to Ethics Chairman Justin Hogan, Commissioner of Accounts John Franck, and City Attorney Vincent DeLeonardis cites City Ethics Code 13.3.B(1) (d), 13.3.G, and 13.3.P, as well as New York State General Municipal Law, Sections 801, 803 and 804. (See City Code of Ethics document attached.)
Bullock and McTygue allege because Miller is also the chairman of the Independence Party, while his partner, JoAnne Foresta, is both an energy broker and the Independence Party treasurer, “suggests that politics may have played a part in this transaction.”
Miller’s party endorsed Mayor Meg Kelly, Commissioners Michele Madigan, Franck and Anthony “Skip” Scirocco for re-election.
The letter indicates that based on energy contracts believed to have been procured for the City by Miller and Foresta, brokerage commissions would be paid to Foresta and Miller for arranging this transaction.
This raises the question whether this contract was procured through Miller and Foresta as consideration for the endorsements of the Independence Party.
Further, Miller is employed by the Saratoga Springs Department of Public Works, while Foresta serves as the Chair of the Saratoga Springs Housing Authority.
In March 2019, Miller and Foresta attended a fundraising event for Madigan, contributing $500 from the Independence Party Chairman’s Club to Madigan’s re-election effort.
This spring, the Independence Party endorsed Madigan, Kelly, Franck, and Scirocco.
Miller offered his response, followed by Gordon Boyd, now retired from energy consulting, and currently volunteer Board President at Mercy House of Saratoga, Inc. Attempts to contact Foresta for her
response to the perceived ethics violations were unsuccessful.
Edward Miller: “Thank you for the opportunity to respond to your question. The reason Mayor Kelly, John Franck, Skip Scirocco, Michele Madigan and Robin Dalton were endorsed by the Saratoga County Independence Party is quite simple. They were the only candidates that formally requested interviews & endorsements for the positions they were seeking.
“At the Independence Party Fundraiser on February 13, 2019, (in front of 100+ people) I explicitly stated that because I’m employed by the City, I will recuse myself from all interviews & endorsements concerning the City of Saratoga Springs. The Saratoga County Independence Party Committee (without Eddy Miller) voted to endorse, Mayor Kelly, John Franck, Skip Scirocco, Michele Madigan & Robin Dalton.
“The committee endorsed Commissioner of Finance, Michele Madigan, for the following reasons:
• stable property taxes, no increase.
• bond rating was increased to AA+ rating
• creation & implementing of solar park
• outstanding financial management
• department transparency
“With regard to questions concerning energy contracts with the City — Here is a brief history. EnergyNext was owned & operated by Gordon Boyd & Eugene Salerni.
“EnergyNext still has contracts with the City of Saratoga Springs, as the contracts rolled over to the new owners, even though Boyd & Salerni sold their company in 2015. Mr. Boyd having charged the City an absorbent commission for his company’s services, is still receiving commissions from these contracts.
“Gordon Boyd before & during the initial signing of the City’s energy contracts was active Treasurer and an Executive Committee member of the Saratoga County Independence Party.
“Joanne Foresta worked part time for EnergyNext as an Independent Contractor (sales person), earning $15 an hour, receiving a 1099.
“EnergyNext was sold to a Chicago based company and Joanne Foresta stayed on as a Independent Contractor for four years. Parting ways with EnergyNext, Joanne Foresta opened up an energy consulting company and recently signed up the City of Saratoga Springs for energy contracts.
“Joanne Foresta’s commission is half the commission that Mr. Boyd grabbed from the City of Saratoga Springs and its taxpayers. Going forward Mr.Boyd will no longer receive any commissions because EnergyNext (the company that he sold) no longer has contracts with the City of Saratoga Springs after September,2019. Mr. Boyd & Mr. Salerni had a great run...but I guess it wasn’t enough.”
Gordon Boyd: “Mr. Miller’s self-serving account of his activities is filled with incorrect information. One of the most obvious is that EnergyNext never had ‘contracts with the City of Saratoga Springs’ during the period of Ms. Foresta’s work.
“EnergyNext was and is still under contract only with the Saratoga County Chamber of Commerce. The rest of Miller’s statement can be judged by that misunderstanding of the business for which Ms. Foresta, his partner, consulted for nearly eight years.”
DeLeonardis responded to Bullock and McTygue while cc’ing City Council Members and Board of Ethics Chairman Hogan with the following; the full response document is attached to this article.
City Attorney Vincent J. DeLeonardis: “Please be advised that your claim lacks merit and fails to set forth a sufficient legal basis which would warrant disturbing the action taken by City Council relative to the aforesaid contracts.
“While you cite various provisions of the City’s Code of Ethics and NYS General Municipal Law in support of your contentions, you misinterpret and/or misapply each and every cited provision.
“Lastly, it should be noted that your claims relating to Ms. Foresta and Mr. Miller’s involvement with the Independence Party are without merit. You should be aware that an officer or employee’s right to engage in political activity outside of the workplace is not prohibited by the Code of Ethics. To the contrary, it is expressly protected.
“As you have included the Board of Ethics Chair in your correspondence, I will leave it to Mr. Hogan and the Board to proceed as they deem appropriate. However, as it regards this office, I have forwarded your correspondence to the Mayor and each Commissioner to make them aware of your claim and, by copy of this correspondence, advising them that it should be disregarded in its entirety.”
(See the City’s response to Bullock and McTygue correspondence in its entirety attached to this article.)
When contacted for his remarks on the letter submitted to the Ethics Committee, Justin Hogan provided the following response:
Justin Hogan: “I do not have any further information at this time. The inquiry will be reviewed and discussed at the next Board of Ethics meeting, which is scheduled for this Monday, June 24 at 5:30 p.m.”
The next Ethics Board meeting is scheduled for 5:30 p.m. on Monday at 70 Lake Ave. in Saratoga Springs and is open to the public.