Advisory Opinion No. 97-94

Re: Kimberly Gaffett

QUESTION PRESENTED

Whether an elected member of the Council of the Town of New Shoreham, a municipal elected position, may participate in matters directly or indirectly affecting either the Block Island Health Services, Inc., and/or private parties who compete with that entity for service business given that the member of the Council sits (or has sat or will sit) on its Board of Directors.

RESPONSE

The Block Island Health Services, Inc. provides health services for residents of the Town of New Shoreham. The Health Services buildings, grounds, and facilities are owned by the Town of

New Shoreham. In recognition of the Town’s ownership interest, the Health Services corporate by-laws require that two members (of the five member) Council of the Town of New Shoreham sit as members of its Board of Directors. The primary reason for Council members serving on the Board is to protect the Town’s financial interest, which arises solely from its property ownership. There is no personal financial incentive for Council members to either serve on the Board or in the Health Services business generally. Because there is no personal financial interest for the Council members they may participate in any matters directly or indirectly affecting either the Health Services and/or private parties who compete with that entity for service business provided no other conflict of interest, independent of their Board membership, exists.

Code Citations:

36-14-5(a)

36-14-7(a)

Keywords:

Public-private partnerships