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UPDATED

Councilwoman Green signs disclosure form

Sussex County federal funds would have been in jeopardy without all signatures
March 3, 2023

Editor’s note: Around 8:40 a.m., March 3, Sussex County District 2 Councilwoman Cindy Green turned in a completed conflict-of-interest disclosure form to the county finance office. Now, all five council members have signed the form.

Green had previously stated she would not sign the disclosure form until council approved an ordinance regarding conflict of interest.

The following story was published prior to her action after the newspaper’s deadline.

 

Future federal funding and the county's credit rating could be jeopardized because one member of Sussex County Council did not sign a required conflict-of-interest form and a member of the board of adjustment did not fully complete the form.

Councilwoman Cindy Green refused to sign the disclosure, while board member Jordan Warfel signed the form but did not answer the yes-and-no questions. Green nominated Warfel to the seat in District 2.

Both have requested that council adopt an ordinance regarding the disclosure.

The county's auditors had requested that county staff develop and distribute a conflict-of-interest disclosure form to be signed by members of county council to meet federal requirements for acceptance of funding, because council votes on contracts involving federal funds. This past year, council acted to get members of the planning & zoning commission and board of adjustment to sign it also.

The county spent $14 million in federal funds last year and has $45 million in American Recovery Plan Act funds to be allocated.

Council President Mike Vincent asked about consequences if all members do not sign the disclosure.

“It's a large accounting issue,” said county attorney J. Everett Moore. “At the federal level, there is a specific requirement that the county have in place policies and a disclosure showing no conflict of interest.”

Moore said one option would be to require members who do not sign the disclosure form to recuse from voting on any matter involving federal funding.

The attorney said another option would be to direct the county finance department to obtain disclosure forms from the county's more than 2,000 vendors, which, he said, would be extremely cumbersome.

“We are at risk of losing federal funds, and this could also affect our credit rating,” said Finance Director Gina Jennings. “We have to have affirmative assurance that there is no conflict of interest.”

Jennings said she has a fiduciary duty to protect tax dollars and has the authority to put into place safeguards to ensure all requirements for receiving federal funds are complied with.

Why an ordinance?

Green said she will not sign the form until an ordinance is established. “We can discuss and vote on it and get public input,” she said.

She stated previously that such a form should come from council and not county administration.

“Why do we need an ordinance to sign a document?” Vincent asked, adding that the form has been required for the past four years.

“I have questions. Does it have teeth in it? ” Green asked.

One area she said is not clear is the question related to conflict of interest of family members. “Who is my family? Is it me and my husband or all our relatives?” she asked. “This needs to be an ordinance coming from council.”

“Authorization already exists to do this. The finance director has the authority. Why do we need an ordinance?” asked Councilman John Rieley.

“We don't need an ordinance to show we are transparent,” said Councilman Doug Hudson.

Hudson said he would like the county legal team to draft an ordinance to remove members of boards and commissions if they don't want to sign the form. Discussion of a possible ordinance is on council’s Tuesday, March 7 agenda.

“I'd like to see an ordinance to explain why we need [a disclosure form] and explain how the funding is done,” Green said.

Although he did not speak during the meeting, Councilman Mark Schaeffer, who represents the Lewes area, said when contacted after the meeting that if the form is going to be mandatory, there should be an ordinance for clarity and transparency purposes. “It should be in written form, and if someone chooses not to sign it, they should decline the position,” he said.

He said any council member can introduce an ordinance, and that Councilwoman Green has the ability to do that.

Federal funds in Sussex

Federal funding is a major source of revenue for Sussex County, and is used for water and sewer projects, work at Delaware Coastal Airport, pass-through funding from the Federal Emergency Management Agency to Delaware Emergency Management Agency, and the Community Development Block Grant program.

Warfel issues statement

Warfel, who has served on the board of adjustment since 2021, issued a statement following the discussion at the council meeting. He said he filled out the form by signing it and enclosing a letter expressing the need for an ordinance.

“I filled out the form, albeit not the way that they would have liked me to answer it,” he said. “And I sent a letter with the form expressing my concern about judicial independence. I had no conflicts to report.”

Warfel said the board, serving as a quasi-judicial body, is charged with interpreting the code in each case presented to them. “This is especially true when parties come before us appealing the decisions made by county administrators,” he said.

“I made the decision to answer the questions with my own statement rather than the dichotomous yes or no because, in my judgment, it was the best way to preserve my independence,” he added.

He took exception to Hudson's request for an ordinance to have board and commission members removed if they refuse to sign the disclosure.

“This desire to remove me is clearly not the result of which boxes I checked or did not check on a form,” Warfel said. “I asserted my judicial independence as quasi-judicial officer and the response was to remove me from office. Let me be crystal clear. I would rather be removed from this board 1,000 times than surrender to political pressure and give up my independence.”

 

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