Conflict of Interest And Disclosure Requirements For RIOC Directors Among Items On Agenda For April 11 Roosevelt Island Operationg Corp Governance Committee Meeting

According to the Roosevelt Island Operating Corp (RIOC):

PLEASE TAKE NOTICE that a meeting of the Governance Committee of the RIOC Board of Directors will be held on Wednesday, April 11, 2012 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

The Committee will meet to discuss:

1. Update on CFO Position Objectives;
2. Review of President/CEO Position Objectives and Performance Evaluation Approach;
3. Update on Long Range Plan;
4. General Discussion of Conflict of Interest and Disclosure Requirements; and
5. Update on Corporate Compliance Issues. 

As reported in previous post, the RIOC Board conflict of interest and disclosure requirement issue recently arose again following a presentation by the NY Rowing Association to the March 21 RIOC Operations Committee. During this meeting, the NY Rowing Association proposed to establish a rowing and kayaking facility on Roosevelt Island.

However, RIOC Board Member and Child School Executive Director Sal Ferrera, who was present for the meeting, but not a member of the Operations Committee, did not disclose to his fellow Board members that he was also a member of the NY Rowing Association Board of Trustees and that the NY Rowing Association official making the presentation to the RIOC Board was a member of the Child School Board of Directors.

Mr. Ferrera also did not disclose to his fellow RIOC Board members that there was a legal dispute between the NY Rowing Association and its former site at the Peter Sharp Boathouse on the Harlem River.

Mr. Ferrera was silent during the presentation and discussion.

RIOC staff have not responded to repeated inquiries asking if Mr. Ferrera disclosed to them his relationship with the NY Rowing Association or the organization's legal dispute with Peter Sharp Boathouse.

At a follow up Real Estate Committee meeting on April 2, despite Mr. Ferrera's support for the NY Rowing Association proposal, the RIOC Directors decided not to approve the NY Rowing Association proposal but to issue a Request for Proposals for any qualified organization, including the NY Rowing Association, to establish a rowing and kayaking facility on Roosevelt Island.

Additional allegations concerning conflict of interest appearances directed at Mr. Ferrera's dual role as RIOC Board Director and Child School Executive Director continued this week.  I sent the following inquiry to RIOC President Leslie Torres and RIOC Directors earlier today:

I understand that RIOC Board Director and Child School Executive Director Sal Ferrera has been sending out donation solicitation fundraising letters for the Child School to Roosevelt Island residents who, in some cases, are officials/members of Roosevelt Island organizations that work in one way or another with RIOC. Is that true?

Several recipients of the Child School fundraising letters have expressed concern regarding the appropriateness/legality of a RIOC Director soliciting funds from them and that these fundraising letters further demonstrate an inherent conflict of interest between Mr. Ferrera's dual position as a RIOC Director and Child School Executive Director.

I am preparing a post on this issue for Roosevelt Islander Online and am happy to include a statement from any of you.

Thank you.

Have not received a response yet but if received will include it as an update.

Roosevelt Island Historical Society President Judy Berdy received one of those fundraising solicitations and sent the following message to RIOC President Torres and RIOC Directors:

Last week I received a solicitation from The Child School for a donation. It included the letter attached and the quote for a "275 seat amphitheater."  Yesterday, I received an invitation to the event and also included the Arts Center and a 280 seat amphitheater."

I have checked with Doryne Isley, manager of Roosevelt Landings who knows nothing of this "amphitheater." (There is an out-of-door amphitherater in back of 540 Main St.)

Along with the riding academy, rowing center, this arts center and now amphitheatre are direct conflicts with being a board member of RIOC.  I suggest that RIOC Governance Committee refer this matter to the NYS Attorney General since Mr. Ferrera is using his position as a board member to acquire use of Island property.

Below is an April 4, 2012 Child School fundraising letter and event invitation.

So, will the RIOC Governance Committee discuss the specific issue of Mr. Ferrera possible conflict of interest as RIOC Director and Child School Executive Director or will it be only a general discussion of the issue as listed in the Agenda?

Perhaps the NY State Authorities Budget Office (ABO) Model Code of Ethics provides some guidance on this issue?



Stay tuned.

UPDATE 6:40 PM - RIOC Press Spokesperson responds:

We have confirmed with Dr. Ferrera that fundraising letters for the Child School were sent to certain Roosevelt Island residents who are members of Roosevelt Island organizations that do business with RIOC. According to Dr. Ferrera, the letters to those individuals were inadvertently sent out and he has apologized for the mistake. Dr. Ferrera has also confirmed that the Child School will not accept donations from any such individuals. Furthermore, Dr. Ferrera has confirmed that the Child School has not previously, nor does it intend to in the future, solicit donations for the Child School from any Roosevelt Island residents.

While this appears to have been an error, we have emphasized to Dr. Ferrera that as a member of the RIOC Board, it is inappropriate to engage in actions that may result in the appearance of impropriety or undue influence. Dr. Ferrera has informed us that he fully understands his ethical responsibilities and again apologized for the mistake.