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OIG No. 25-13 Report of Inquiry Regarding Former Planning Board MemberJoseph M.Centorino,Inspector General FINAL REPORT TO: FROM: DATE: RE: Honorable Mayor and Members of the City Commission Joseph M.Centorino,Inspector General July 22,2025 Inquiry into Alleged Prohibited Gift Solicitation/Conflict of Interest Involving Former Planning Board Member OIG No.:25-13 Introduction This inquiry was opened upon receipt by the Office of the Inspector General of complaints from multiple sources regarding actions by former Miami Beach Planning Board member Matthew Gultanoff. One complaint centered around Mr.Gultanoff's apparent solicitation of a contribution from a developer as a public benefit that could influence his vote.That action occurred at the January 7, 2025,meeting of the City of Miami Beach Planning Board when the board was hearing a matter involving the continuance of two items,PB24-0703 and PB24-0698,which sought approvals for a proposed development at 1250 West Avenue.The two pending development applications were not voted upon at that meeting,only their continuance to a future meeting of the board. The second issue raised concerned whether Mr.Gultanoff,who is employed by the Miami Design Preservation League (MDPL)as Special Projects and Grants Manager,had a prohibited conflict of interest in serving on the Planning Board,a land use board with quasi-judicial powers,when his former supervisor at the MDPL,Daniel Giraldo appeared before the Planning Board to advocate on behalf of the MDPL. A third issue was raised regarding whether Mr.Gultanoff met the qualification requirements under City Code to serve on the Planning Board. During the inquiry,the OIG conducted interviews of Miami Beach City Planner Thomas Mooney, Chief Deputy City Attorney Nick Kallergis,and Attorneys Nick Rodriguez and Michael Larkin, representing the developer,Daniel Giraldo,and Matthew Gultanoff.The OIG also consulted Radia Turay,Advocate for the Miami-Dade Commission on Ethics and Public Trust,and Timothy Vandergiesen,Chief of the Public Corruption Division for the Miami-Dade County State Attorney's Office.In addition,the OIG reviewed the recording of the Planning Board meeting that occurred on January 7,at which the apparent gift solicitation occurred. Page 1 of 7 Following his discussion with the Inspector General,Mr.Kallergis sought and received an opinion from the State of Florida Commission on Ethics regarding ethical issues raised by the inquiry, which is attached to this report. Subsequent to the initiation of this inquiry,Mr.Gultanoff's term on the Planning Board expired, and he no longer serves as a member of that board. OIG Factual Summary Review of Recording of January 7 Planning Board Meeting The OIG reviewed the recording of the Planning Board meeting at which P24-0703,1250 West Avenue-Alton Beach Bayfront Overlay District Comprehensive Plan Amendment and PB24-0698, 1250 West Avenue-Development Regulations for the Alton Beach Bayfront Overlay District were both on the agenda.The items were called early in the meeting for the sole purpose of continuing them to a subsequent meeting.Following a brief update provided by Attorney Rodriguez on the project in connection with a request for the continuance of the items,the chair noted that following a public meeting on the project he was aware that it was "in the spotlight."The floor was opened for public comment,but there were no comments from the public either in person or on Zoom. In response to an invitation by the chair for comments from the board members,Mr.Gultanoff made a reference to the prior community meeting on the project where he said that the comments "were overwhelmingly not positive"on the project,citing concerns over the height of the project, the unit sizes,and the impact on the community.Mr.Rodriguez responded that there were possible changes being contemplated on the size of the project as well on the public benefits to be provided by the developer to address the concerns raised at the community meeting,as well as those raised by elected officials and by the members of the Planning Board. Mr.Gultanoff responded that,"Since you are making changes,a suggestion that I would make, or just a suggestion that I'll float,in addition to a pocket park perhaps or a parking garage,which didn't seem to have much support or perhaps need,how about a contribution to a South Beach Mobility Fund to help with funding bicycle/pedestrian Master Plan projects that have been stalled for many years,micro-mobility and other sorts of things that people in the community use,utilize, and it would be beneficial for,it would win my support."Mr.Rodriguez replied that it was something he had not heard about previously and that he would "take that back to the team."The continuance was then unanimously approved. Interview of Attorney Nick Rodriguez Mr.Rodriguez,the developer's attorney,acknowledged in his interview that the application for 1250 West Avnenue was a contested one,with opposition from the neighboring area.He discussed the fact that,as proposed by the developer,the development agreement would set up a series of bonuses for the community in the way of public benefits.He said there was a non- conforming hostel across the street from the hotel that his client had under contract to purchase. He noted that the client developer had spoken with neighbors,City administration and elected officials about the project.Some of the benefits were proposed by the client and some added based on suggestions of others. Mr.Rodriguez said he had met with Gultanoff about the project before the Planning Board meeting,but that the comment made by Gultanoff at the meeting about a possible contribution to "South Beach Mobility Fund"was the first time that he had heard that suggestion.He was unaware Page 2 of 7 of any specific fund or projects to which Gultanoff was referring.He was aware that Gultanoff was involved with an organization known as Better Streets Miami Beach,which is concerned with traffic and mobility issues. Interview of Nick Kallergis,Chief Deputy City Attorney The OIG spoke with Chief Deputy City Attorney Nick Kallergis,who generally attends Planning Board meetings and who was present at the January 7 meeting.He was familiar with the comment made by Gultanoff regarding a possible contribution that might get his support for the project.He said that,apart from whether the solicitation itself violated applicable ethics codes,certain agreements made in connection with legislative changes,if not structured properly,could implicate impermissible "contract zoning." Mr.Kallergis said that he had also been consulted by Gultanoff about possible conflicts of interest due to his private employment at the Miami Design Preservation League where Daniel Giraldo was the Director.He was aware that Giraldo has made appearances before the board and expressed opinions on pending matters while Gultanoff was a member.He did not see a conflict of interest in violation of the City or County Ethics Codes,but felt there could be an issue under F.S.112.313(7),Recurring Conflict of Interest,based on Giraldo's coming before the board on multiple occasions and the fact that,as an employee of MDPL working under Giraldo's supervision,Gultanoff could conceivably have such a conflict.He said he was seeking an opinion from the State of Florida Commission on Ethics as to whether an actual conflict existed under these facts.The opinion is attached to this report. Interview of Thomas Mooney,City Planning Director The OIG spoke with Thomas Mooney,City Planning Director,who generally attends Planning Board meetings and was familiar with the development application.He explained that the public benefits are part of the development agreement between the City and the developer which is separate and apart from the zoning decision on the developer's application.He agreed to send the OIG the draft development agreement between the City and the developer that was not yet finalized and that would eventually have to go before the City Commission for approval. Mr.Mooney was unaware of any fund known as the "South Beach Mobility Fund."He said that there was a Mobility Fund controlled by the City and funded through Mobility Fee assessments made by the City in connection with a project's impact on the surrounding area.These assessments are established in the City Code and are the only funds deposited into the Mobility Fee account.No contributions other than the assessments are solicited or accepted for that fund, so any proffered contribution to that fund could not be accepted. Interview of Michael Larkin,Attorney for 1250 West Avenue Developer The OIG spoke with Michael Larkin,the principal attorney on behalf of the 1250 West Avenue developer.Mr.Larkin stated that he has never had any conversations with Matthew Gultanoff regarding possible charitable contributions in connection with the hotel's pending development plans.He said he was aware that the City assesses a Mobility Fee in connection with concurrency regarding a development project's impact on traffic in the area,and that the money can be used by the City for public projects connected to the development. Interview of Daniel Giraldo,Former Executive Director of Miami Design Preservation League (MDPL) The OIG interviewed Daniel Giraldo,Executive Director of the MDPL at the time of this incident (he subsequently resigned from his position at MDPL and is currently a candidate for Miami Beach City Commissioner).Mr.Giraldo said that he had hired Mr.Gultanoff at MDPL.He said that he Page 3 of 7 believed that he (Ciraldo)had appeared or spoken at two or three meetings of the Miami Beach Planning Board while Mr.Gultanoff had been a member. Mr.Ciraldo later sent an email to the Inspector General stating that upon reviewing his personal schedule he found that he had spoken at the 01/30/2024 Planning Board meeting on the Collins Cove Historic Designation item;at the 10/29/2024 meeting on the Removal of Design Review Board Requirement for homes built with understories;as well as the 1250 West Avenue project. He stated that he spoke on these matters while Gultanoff was sitting as a member but did not have any other conversations with Gultanoff about these issues. Mr.Ciraldo said that he was not present at the January 7 Planning Board meeting and had not seen the video involving the apparent solicitation of a contribution by Mr.Gultanoff.After viewing the video,he acknowledged an appearance problem created by the solicitation,as well as the possible appearance issue regarding his employment relationship with Gultanoff at MDPL.He was non-committal about taking any action in connection with the possible conflict issue. However,as the Director of MDPL at the time of his interview,he stated that he might consider adopting a rule that would bar an employee of MDPL from serving on a City board before which MDPL regularly appeared. Interview of Matthew Gultanoff,Planning Board Member Mr.Gultanoff agreed to be interviewed by the OIG on a voluntary basis to discuss the issues raised concerning his actions and service on the City Planning Board.He came to the OIG office for that purpose. Mr.Gultanoff stated that his comment about a potential contribution by the 1250 West Avenue developer was made in the context of Attorney Rodriguez's mention of public benefits to be provided by the developer under the development agreement.He said it was intended only to facilitate the discussion of ideas to explore in connection with the development.He said that his organization,"Better Streets Miami Beach"was only a website and a loose confederation of similarly-minded Miami Beach residents,rather than an actual charitable organization.This was confirmed by the Inspector General who could not locate any such organization in State records. Mr.Gultanoff said that he had no "mobility fund"under his control and did not intend in any way to personally profit from any contribution in the event one was made;and that he was not aware of the existence of a "South Beach Mobility Fund,"even though he did reference such a fund in his comments at the meeting in connection with other possible public benefits for the City.He denied that he intended to engage in a quid pro quo for his vote on the project.He acknowledged that his timing and choice of words were poor and subject to misinterpretation and stated that he would offer a clarification at the next Planning Board meeting to set the record straight.This could not occur because by the time of the board's subsequent meeting Gultanoff's term had expired, and the Commission had appointed another individual to the position. Mr.Gultanoff said he was unaware that his presence on the board presented any conflict of interest.He said that he only recalled Mr.Ciraldo's being present on one or two occasions while he was a board member,and that he had no prior notice of Ciraldo's intent to appear on those occasions. As to his qualifications to sit on the board,Mr.Gultanoff stated that after a City official had suggested that he apply for the Planning Board position,he consulted with Chief Deputy City Attorney Nick Kallergis at the time of his application regarding whether he could be appointed to Page 4 of 7 the "urban planning"position on the board and was advised that he could qualify based on his resume. Mr.Gultanoff later provided the Inspector General with an email message addressed to him from Mr.Kallergis,dated 11/17/2023,stating as follows:"Based on your resume (particularly your work with Better Streets),and your educational background,we have determined that you qualify to seek appointment to the following seat on the Planning Board:'One architect registered in the State of Florida;or a member of the faculty of a school of architecture in the state,with practical or academic expertise in the field of design,planning,historic preservation or the history of architecture;or a landscape architect registered in the State of Florida;or a professional practicing in the fields of architectural or urban design,or urban planning;I am copying the City Clerk so he is aware."[Highlighting provided in original email.] Based on Mr.Gultanoff's work at MDPL,he was deemed to be qualified to serve on the Planning Board. Analysis and Conclusions Gift Solicitation On the issue of whether Mr.Gultanoff violated County Ethics Code provisions when he mentioned the possibility of a contribution being provided to the City,the OIG reviewed ordinances in Section 2-11.1in the County Ethics Code and also consulted with staff at the Miami-Dade Commission on Ethics and Public Trust.Based on this review and consultation,the OIG concluded that a complaint for a violation of the Code's prohibition against gift solicitation would likely not be sustained.First,the suggested donation to the "South Beach Mobility Fund"was a legal impossibility since no such fund exists and the Mobility Fund that does exist in connection with possible impacts on traffic in the area of a development includes only set assessments by the City and cannot include donations in any amount. Further,the practice of the City Commission and Administration in negotiating for "public benefits" to be provided in project development agreements,as well as the exceptions made for such officials under the County Ethics Code--although not technically the business of the Planning Board--provides latitude for discussion of allowable benefits to be provided as a means of creating favorable conditions for local government's determination of whether a development project would serve the public interest.There is also no basis to conclude that any benefit provided by the developer of this project in response to Mr.Gultanoff's suggestion could have inured to Gultanoff's personal benefit or have been inconsistent with legitimate City interests. Given the possibility that the suggested donation could be interpreted as an illegal quid pro quo in violation of State corruption statutes and because the OIG usually consults with law enforcement prior to reaching a conclusion on such an issue,the OIG contacted Tim Vandergiesen,Chief of the Public Corruption Unit at the Miami-Dade County State Attorney's Office.Following a recounting of the details of Gultanoff's actions at the January 7,2025,meeting of the Planning Board and surrounding circumstances,the SAO declined to open a criminal investigation of the incident. Conflict of Interest The possibility that a prohibited conflict of interest could be created by Mr.Gultanoff's voting on issues before the Planning Board,which has both legislative and quasi-judicial authority and Page 5 of 7 where his employer,MDPL,represented by his direct supervisor at that time,Daniel Giraldo,had taken a public stand before the board,was also considered. The applicable provision under Section 2-11.1 (v)of the Miami-Dade County Ethics Code,Voting Conflicts:Members of Advisory and Quasi-Judicial Boards,contains a much more lenient standard for voting conflicts than is provided for members of governing municipal bodies under the State of Florida Code of Ethics,Chapter 112,Florida Statutes.Under the County provision a board member would have a voting conflict only if he/she would be directly affected by an action of the board and have one of several designated relationships with a person or entity appearing before the board,one of which is employee/employer.While the latter condition could likely be satisfied,the former could not in view of the absence of any benefit that would "directly"go to Gultanoff. Following consultation with Chief Deputy City Attorney Kallergis,as well as staff at the Miami- Dade Commission on Ethics and Public Trust,the OIG concluded that it was unlikely that a violation could be proven under the County Ethics Code. The Ethics opinion solicited by Mr.Kallergis from the State of Florida Commission on Ethics (FCOE)concerned whether a prohibited conflict of interest existed under Chapter 112,Florida Statutes,which is applicable to all public officers and employees in the State,based on Mr. Gultanoff's employment at MDPL during a time that his direct supervisor,Mr.Giraldo,made appearances before the Planning Board on behalf of MDPL.The inquiry to the State did not specifically reference Mr.Gultanoff or Mr.Giraldo but was made in the context of possible upcoming appointments to the board.The opinion received from the FCOE was,therefore,based on hypothetical scenarios involving possible individuals in similar situations in the future. The attached State Ethics Commission's opinion considered three provisions of the State Ethics Code in Chapter 112:Section 112.313(7)(a),CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIPS;Section 112.313(3),DOING BUSINESS WITH ONE'S AGENCY;and VOTING CONFLICTS. The State Ethics opinion did not definitively identify any violation but indicated that there were potential future conflicts that could be created under those statutes depending on the nature of the issues being considered,the frequency of the employer's lobbying,and other factors.The opinion did not,however,consider the issue of an "appearance"of a conflict. Qualifications Based on the written opinion solicited and received by Mr.Gultanoff from the Office of the City Attorney,his qualifications to serve on the Planning Board were established. Recommendation Due to the potential that future ethical conflicts of interest may be created in the event that an employee of an organization is considered for appointment to a City board that is known to be regularly lobbied by that employee's organization and/or supervisor,as well as the appearance of a conflict that would almost always be present in that situation,the City should consider adopting a policy prohibiting such appointments.If such an appointment should be voted upon in the future,advisory opinions should be sought in advance from both the State Ethics Commission and the Miami-Dade Commission on Ethics and Public Trust specifying the relevant facts and surrounding circumstances of the appointment. Page 6 of 7 Pursuant to Section 2-256 (h)of the City of Miami Beach Code of Ordinances,Matthew Gultanoff was provided with a draft copy of this report and invited to submit a written response to it.His response is attached. Based on the foregoing facts and analysis,the OIG has closed this inquiry. cc:Ricardo Dopico,City Attorney Nick Kallergis,Chief Deputy City Attorney Thomas Mooney,Planning Director George T.Neary,Interim Executive Director,MDPL Attorney Thomas Robertson (for Nick Rodriguez and Michael Larkin) Daniel Ciraldo Matthew Gultanoff OFFICE OF THE INSPECTOR GENERAL.City of Miami Beach 1130 Washington Avenue,6Floor,Miami Beach,FL 33139 Tel:305.673.7020 •Hotline:786.897.1111 Email:CityofMiamieachQIG@miamibeachfl.gov Website:www.mbinspectorgeneral.com Page 7 of 7 Luis M.Fuste Chair Tina Descovich Vice Chair Paul D.Bain Dr.James Bush,Ill Freddie Figgers Laird A.Lile Ashley Lukis Linda Stewart March 27,2025 State of Florida COMMISSION ON ETHICS P.O.Drawer 15709 Tallahassee,Florida 32317-5709 325 John Knox Road Building E,Suite 200 Tallahassee,Florida 32303 "A Public Office is a Public Trust" Kerrie J.Stillman Executive Director Steven J.Zuilkowski Deputy Executive Director/ General Counsel (850)488-7864 Phone (850)488-3077 (FAX) www.ethics.state.fl.us Mr.Nick Kallergis Transmitted by email to:nickkallergis@miamibeachfl.gov Re:Your Ethics Inquiry Dear Mr.Kallergis: This is in response to your ethics inquiry.You note that you are a City Attorney for the City of Miami Beach,Florida.In your inquiry,you state that you are considering candidates for appointment to the City of Miami Beach Planning Board.You indicate some of these candidates are employed by a non-profit organization which currently has a Management Agreement with the City,wherein it manages and operates the City-owned 10""Street Auditorium as the Art Deco Museum &Welcome Center.Specifically,you explain that the Management Agreement requires the organization to operate the Art Deco Visitor's Center,Museum,Lecture and Film Hall,Art Deco Academy I Tour School,and Gift Shop,and to conduct preservation education. You also state that the Executive Director of this organization lobbies before the Planning Board (as well as other City Boards)on legislative matters.Specifically,you note that in 2024,the organization lobbied the Planning Board on the following matters: •Ordinance designating the Collins Canal as an individual historic site (I /30/2024) •Ordinance amending the Land Development Regulations to remove the requirement that the Design Review Board review homes built with understories (I 0/29/2024) Nick Kallergis March 27,2025 Page 2 •Ordinances amending the Land Development Regulations and Comprehensive Plan to create the Alton Beach Bayfront Overlay (I 0/29/2024) •Ordinance amending the Land Development Regulations and Comprehensive Plan to create the North Beach Oceanfront Overlay (11/16/2024) Against this factual backdrop,you ask whether appointing one ofthese candidates to the Planning Board would present any ethical concerns. The first provision relevant to your inquiry is Section 112.313(7)(a),Florida Statutes,1 which states: CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIPS.--No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of,or is doing business with,an agency of which he or she is an officer or employee ...;nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his or her private interests and the performance of his or her public duties or that would impede the full and faithful discharge of his or her public duties. Section 112.313(7)(a)has two parts,with the first clause prohibiting a public officer or employee from having employment or a contractual relationship with any business entity or agency that is subject to the regulation of,or is doing business with his agency.Section 112.312(2),Florida Statutes defines "agency"as any state,regional,county,local,or municipal entity of the state, whether executive,judicial,or legislative;any department,division,bureau,commission, authority,or political subdivision ofthis state therein;or any public school,community college,or state university.Relevant to your inquiry,in the past,the Commission on Ethics has opined that a city planning board is a separate agency from the city commission (CEO O 1-16;CEO 11-6).Thus, were either of these two candidates appointed to the Planning Board,their "agency"for purposes of this analysis would just be the Planning Board,and not the City as a whole. In subsequent communications with Commission staff,you have indicated the Planning Board itself is not a party to the Management Agreement;the contract is between the City and the nonprofit organization.Thus,it appears that were either of these candidates appointed to the Planning Board,they would not run afoul of the first part of Section 112.313(7)(a),Florida 1 The Commission opinion and statutes cited herein are viewable at www.ethics.state.fl.us. Nick Kallergis March 27,2025 Page 3 Statutes,as they would not have an employment relationship with a business entity (the nonprofit) that is doing business with their agency (the Planning Board). The second clause of Section 112.313(7)(a)prohibits a public officer from having an employment or contractual relationship that would create a continuing or frequently recurring conflict of interest or would create an impediment to the full and faithful discharge of his or her public duties. Here,there is concern that the candidates may have a conflict under the second clause ofthe statute due to the lobbying efforts of the Executive Director of their organization.There is a distinction recognized when the public officer or employee is employed by or has a contractual relationship with an entity engaged in lobbying his or her board on issues of general policy.An officer or employee will not be in violation of the second part of Section 1 I 2.313(7)(a)so long as the lobbying concerns issues of general interest to the community-as opposed to an insular matters affecting only an employer or client-and the officer or employee does not assist in the lobbying efforts.See CEO 89-29 (finding a city commissioner could serve as executive director of a chamber of commerce that lobbied the city on topics that concerned the city as a whole,provided the commissioner did not aid in the lobbing;examples of such general lobbying issues are provided therein);CEO 15-1,Question I (finding city councilmember can be employed by chamber of commerce lobbying the city on "issues of general interest in the community"if his role for the chamber is "divorced"from lobbing activities).Opinions also have found no conflict under the second part of Section 112.3 I 3(7)(a)when the lobbying is infrequent and the public officer or employee plays no role in it.See CEO 04-6,CEO 12-21,and CEO 23-6. Applying the logic ofthese opinions to the facts you present,it appears that,in the past,the matters on which the organization employing the candidates has engaged in lobbying before the Planning Board concern broad issues of general policy that affect the community at large.However,if a scenario arises where the organization engages in lobbying on matters only affecting the organization or a client ofthe organization,it is possible the candidates may run afoul ofthe second part of Section I I 2.313(7)(a).As such,if a matter of concern comes up in the future,or if the lobbying becomes more frequent,you or the candidates should contact the Commission for specific guidance on the issue. Additionally,regarding the second part of Section I 12.313(7)(a),you have indicated in subsequent communications with Commission staff that,although the Planning Board is not a party to the Management Agreement between the nonprofit organization and the City,the Planning Board is required by the City Charter to review and make recommendations on any management agreement for any City property with a term of ten years or longer.Because of this,it appears that the candidates for appointment to the Planning Board may at some point be placed in a situation where they are reviewing the work that is done by the nonprofit organization that employs them pursuant to the Management Agreement between the nonprofit and the City.This would likely violate the second part of Section 112.313(7)(a)as it would create a conflict between their public duties on Nick Kallergis March 27,2025 Page 4 the Planning Board and their private interests as it pertains to their employer.For instance,the candidates may be tempted to give a favorable review of the nonprofit's work pertaining to the Management Agreement because the nonprofit is their employer.It is important to note that even if the two candidates abstain from voting on matters concerning the Management Agreement,this will not cure a conflict under Section l l 2.3 l 3(7)(a),as this statute operates separate and apart from the voting conflict law (which is discussed below). A second provision relevant to your inquiry is Section 112.313(3),Florida Statutes,which states: DOING BUSINESS WITH ONE'S AGENCY.-No employee of an agency acting in his or her official capacity as a purchasing agent,or public officer acting in his or her official capacity,shall either directly or indirectly purchase,rent,or lease any realty,goods,or services for his or her own agency from any business entity of which the officer or employee or the officer's or employee's spouse or child is an officer,partner,director,or proprietor or in which such officer or employee or the officer's or employee's spouse or child,or any combination of them,has a material interest.Nor shall a public officer or employee,acting in a private capacity,rent,lease,or sell any realty,goods,or services to the officer's or employee's own agency,ifhe or she is a state officer or employee,or to any political subdivision or any agency thereof, if he or she is serving as an officer or employee of that political subdivision. Section 112.313(3)prohibits the candidates from selling any goods or services in their private capacities to their own public agency,which,as outlined above,would be the Planning Board. Section 112.313(3)also prohibits the candidates from selling any goods or services in their private capacities to any political subdivision or any agency thereof,if they are serving as an officer or employee of that political subdivision.Thus,unlike in the analysis under Section 112.313(7)(a), which just focuses on the specific agency of the public officer or employee,Section 112.313(3) implicates the public officer or employee's entire political subdivision.Here,the City as a whole will be the candidates'political subdivision if they are appointed to the Planning Board. The Commission has applied Section 112.316,Florida Statutes,to "grandfather"in employment or contractual relationships with business entities selling services to the officer's agency when both the employment or contractual relationship and the business relationship with the agency predate the officer's holding office.See CEO 82-10,CEO 96-31,CEO 02-14,CEO 08-4 (note 6),and CEO 09-1.But renewals/extensions/amendments of grandfathered contracts after one takes office can violate the statute unless the terms of a contract remain exactly the same.See CEO 02-14,CEO 03-17,CEO 08-8,CEO 09-1,and CEO 22-5.Moreover,entry into new contracts after one takes office can also trigger a violation.See CEO 09-20 and CEO 10-16.Here,since you have indicated that both the candidates'employment with the nonprofit organization,as well as the Management Agreement currently in place between the organization and the City,predate the candidates'future Nick Kallergis March 27,2025 Page 5 appointment to the Planning Board,it appears the current sale ofservices by the candidates'private employer to their potential future public agency will be "grandfathered"in.However,if the contract's term expires and a new Management Agreement is formed,grandfathering will be lost and a violation could be found. In subsequent communications with Commission staff,you indicated that one of the candidates may be in a more managerial role within the nonprofit.Regardless of the candidates'specific job titles,if either one of them is appointed to the Planning Board and then acts,either directly or indirectly in his private capacity at the nonprofit organization,to sell services to the City (via a renewal to the Management Agreement,adding new terms to the Agreement,or entering into a new and separate Management Agreement with the City,for example),this would trigger a violation of Section 112.313(3)and they would lose the "grandfathering"exemption previously discussed.It is also important to note that if either of the candidates are specifically designated as officers or owners of the nonprofit organization,regardless of their personal participation in the matter,they would de-facto be in violation of this statute were the organization to enter into a new agreement to sell services to the City or modify the terms of the existing agreement.And if these candidates are faced with a vote on the matter,compliance with the voting conflict statute (discussed below)will not cure a violation of this Section 112.313(3). Another statute that is relevant to your inquiry is the voting conflict statute found in Section 112.3143,Florida Statutes.This statute states: No county,municipal,or other local public officer shall vote in an official capacity upon any measure which would inure to his or her special private gain or loss;which he or she knows would inure to the special private gain or loss of any principal by whom he or she is retained or to the parent organization or subsidiary of a corporate principal by which he or she is retained,other than an agency as defined in s.112.312(2);or which he or she knows would inure to the special private gain or loss of a relative or business associate of the public officer.Such public officer shall,prior to the vote being taken,publicly state to the assembly the nature of the officer's interest in the matter from which he or she is abstaining from voting and,within 15 days after the vote occurs,disclose the nature of his or her interest as a public record in a memorandum filed with the person responsible for recording the minutes of the meeting,who shall incorporate the memorandum in the minutes. k k k (4)No appointed public officer shall participate in any matter which would inure to the officer's special private gain or loss;which Nick Kallergis March 27,2025 Page 6 the officer knows would inure to the special private gain or loss of any principal by whom he or she is retained or to the parent organization or subsidiary of a corporate principal by which he or she is retained;or which he or she knows would inure to the special private gain or loss of a relative or business associate of the public officer,without first disclosing the nature of his or her interest in the matter. The term "special private gain or loss"as it applies to voting conflicts is defined as an economic benefit or harm.See Section l 12.3143(l)(d),Florida Statutes.In the past,the Commission has found that the threshold for a "special gain"occurs when the official or his or her employer constitutes around 1-2%of the size ofthe class of persons affected by a particular vote.See CEO 13-20. The nonprofit organization which employs the candidates is considered "a principal by whom [they are]retained"by virtue of being their employer.See Section l 12.3143(l)(a),Florida Statutes. Thus,ifthe candidates are appointed to the Planning Board and are put a position where they will be asked to vote on a matter in their official capacities that could inure to the special private gain or loss of the organization,they must abstain from voting on the matter.Additionally,prior to the vote being taken,they shall publicly state the nature of their interest in the matter,and,within 15 days after the vote occurs,disclose the nature of their interest as a public record by filing a Form 8B with the person responsible for recording the minutes of the meeting.The Form 8B is available on the Commission's website. Additionally,because you indicate positions on the Planning Board are appointed,pursuant to Section I 12.3143(4)(a),the candidates will also be prohibited from even participating in any discussions on the matter,unless,prior to the meeting where the discussion will take place,they first disclose the nature of their interest as a public record,either orally or by filing a Form 8B with the person responsible for recording the minutes of the meeting.See Section 112.3143(4)(b), Florida Statutes. In conclusion,there are multiple statutes implicated by this scenario: •Regarding the first part of Section l l 2.313(7)(a),it appears that the appointment of these candidates to the Planning Board will not automatically trigger a violation,as their agency (the Planning Board)is not a party to the current Management Agreement between their employer and the City. •Regarding the second part of Section l I 2.313(7)(a),it appears that past lobbying efforts their employer has engaged in before the Planning Board concern matters of general applicability.Thus,it appears this type of lobbying is not the type that would necessarily trigger a violation under the second part of the statute.However,if the Nick Kallergis March 27,2025 Page 7 nature or frequency of the lobbying changes,this could present a problem under the statute. •Additionally,you note that the Planning Board is required by the City Charter to review the Management Agreement because it is a contract that exceeds ten years.Because of this,it appears the candidates,if appointed to the Planning Board,may be placed in a situation where they are,in their public capacity,reviewing work conducted by their private employer.This would trigger a violation of the second part of Section I I 2.3 l 3(7)(a),as it would create a conflict between their public duties and their private interests as employees ofthe nonprofit organization that is a party to the Management Agreement. •Regarding Section 112.313(3),it appears that the current Management Agreement will not trigger a violation of the statute due to the "grandfathering"exemption that would apply to the two candidates pursuant to Section 112.316.However,ifa new agreement is formed,or the terms ofthe current agreement change,"grandfathering"would be lost and the two candidates would be in violation of Section 112.313(3)if they are an officer or owner ofthe nonprofit or have private responsibilities concerning the agreement. •Regarding the voting conflicts statute found in Section 112.3143,abstaining from voting on matters pertaining to their private employer will not cure any conflicts the candidates may have under Sections 112.313(3)and I l 2.3 l 3(7)(a).However,if the candidates are faced with votes pertaining to the nonprofit organization that do not necessarily concern the Management Agreement at issue,they should still comply with the requirements of the voting conflict statute. The guidance provided in this letter is limited to the facts that have been provided.If there are additional material facts,or if I have misstated them in this letter,please contact me again.If you have any other questions about the guidance contained in this letter,please send me an email at naomi.amelia@leg.state.fl.us. Sincerely, Amelia Naomi Attorney,Florida Commission on Ethics TO:Joseph M.Centorino,Inspector General FROM:Matthew Gultanoff,Former Planning Board Member DATE:July 22,2025 RE:Response to OIG Report -Planning Board Member Inquiry I appreciate the Inspector General's investigation,which found no violations in my conduct and cleared my name of the anonymous complaints that prompted this inquiry.The investigation's conclusions validate my commitment to ethical public service and demonstrate that these allegations appear to be attempts to undermine my advocacy for progressive transportation policy,pro-housing initiatives,and decisions that prioritize community needs over special interests. My January 7th comments must be understood in proper context.I had raised serious concerns about the proposed project at 1250 West Ave:its excessive height and scale,and its focus on ultra-luxury units that would provide fewer housing units than the existing building proposed for demolition.The existing building provides over 200 housing units that serve Miami Beach's working class,young professionals, and retirees on fixed incomes,units that would be replaced by fewer ultra-luxury accommodations for part-time residents. This project reflects broader development trends that have been encouraged through policy decisions. The City has approved and/or negotiated development agreements with zoning changes for numerous luxury high-rise towers while publicly praising "density reductions."It's no surprise that Miami Beach's population has declined significantly (by approximately 10,000 according to recent estimates)while Florida has boomed,growing by over 8%from 2020 to 2025.Meanwhile,according to US Census Bureau data,more than 60%of South Beach and North Beach households are renter-occupied,yet the city's policies favor luxury part-time units over full-time housing serving existing residents. When the developer's representative stated they would rework their public benefits package due to community feedback,I offered constructive suggestions.The "mobility fund"contribution would be made to the City to implement the long-stalled adopted bicycle-pedestrian master plan.Based on my review of completed projects,the City has made abysmal progress,adding fewer than four net new miles of bicycle lanes in the past five years.This addresses a critical need:according to the 2024 Miami Beach Resident Survey,over half of households include someone who regularly bikes for transportation, while the City's draft budget allocates only $300,000 for bicycle projects next year.Miami Beach's recently adopted Vision Zero Action Plan shows the consequences:over the past six years,there have been 682 reported crashes involving bicyclists,resulting in 44 serious reported injuries and 2 deaths, both residents of the city. The investigation confirms my qualifications.Before applying,I sought written confirmation from Chief Deputy City Attorney Nick Kallergis,who confirmed in a November 17,2023 email that my education and professional experience qualified me for the "urban planning"seat.The anonymous complaints about my urban planning qualifications are interesting,given my successor's supposed qualifications as a real estate sales agent and luxury condo board president.Also,recently released campaign finance documents show he made two maximum contributions to commissioners who voted for his appointment. It's worth noting that the idea of my serving originated with sitting Commissioners who encouraged me to apply.One approached me during the summer of 2023 (though I initially declined),and another urged me to seek appointment the morning after the election.During that same 2023 election campaign, candidates could sit on this board while affiliated committees accepted contributions from parties with business before the City,making attacks on my ethics particularly ironic.My expertise in urban transportation and mobility is well-documented and publicly recognized through numerous media appearances,publications,and professional conferences.My record speaks for itself. I am proud of my service on the Planning Board.It was an honor,and it is the community who lost a voice for transparency,community engagement,and evidence-based decision making.I remain committed to advocating for policies that make Miami Beach more affordable,sustainable,and accessible,prioritizing residents who are the backbone of our city.The investigation found no violations, I was qualified for the position,and I served the public interest.I thank the Inspector General for clearing my name of these allegations. Respectfully submitted, Matthew Gultanoff