Ethics Complaint Filed Against Concord City Councilor

A Ward 2 resident has filed an ethics complaint against a city councilor suggesting that her vote on a budget line item for a previous employer seems like an apparent conflict of interest under the city’s new statutes.

Allan Hershlag filed the ethics complaint with the on June 19, asking the to investigate whether Ward 2 City Councilor violated the ordinance by voting on a line item funding Intown Concord, the organization previously known as Main Street Concord, her former employer.

Both Kretovic and Herschlag ran for the , with Kretovic besting Herschlag by a mere 11 votes. The complaint, he said, was not about politics though, but instead, about Kretovic’s role helping to guide the controversial that is the impetus for the city receiving a to make improvements to Main Street. Hershlag filed the complaint just a few hours before the grant was approved, not knowing that it was about to be approved.

“(Kretovic) worked for or partnered with the same organizations that are still strongly promoting this project,” he said. “The city council approved funding for (Intown Concord) which will assist in continuing to promote a program that she was intimately involved with and compensated for.”

Herschlag pointed to Article 1-6, Code of Ethics, Section 3. Definitions, Conflict of Interest, which states, “An apparent conflict of interest is one that does not affect a person’s financial interests, but does call into question his or here objectivity and independence.” The revamped code was approved September 2011, despite sharp criticism of the plan.

Herschlag noted that Kretovic first worked for and then moved to . While at Concord 20/20, she worked with Main Street Concord to concoct the plan, and then hired to work on the project. Kretovic presented the plans with then-Main Street Executive Director Jessica Eshleman. Murdoch is currently the interim executive director of Intown Concord. The organization, he said, actively lobbied for the TIGER grant and promoted the Re-Thinking Main Street project.

“This is an ongoing issue,” Herschlag said. “This isn’t something that she did and then walked away from and then it just resurfaced. In my mind, there is a continuum here, from Main Street, to 20/20, then the council.”

Herschlag said Kretovic was so intimately involved in the organizations, she should recuse herself and that fact that she didn’t, poses a potential conflict the Board of Ethics should investigate. Since he filed his complaint, Herschlag heard that Kretovic did inquire whether she should recuse herself and was told that since she didn’t have a financial connection to Intown Concord, it would not be a problem. This advice would run counter to the ordinance, he said.

“I honestly believe that this is one of those serious issues why people have no confidence in government bodies,” he said. “A simple recusal on a $20,000 vote makes people realize that she understands that there is an ongoing conflict since it is a pending issue before the council. If Intown Concord wasn’t promoting a program that she had championed, it would be much more difficult to make that connection or if not impossible. It’s because of the way the events are lining up that I consider it an ongoing conflict.”

Kretovic said, via email, that until she had a chance to sit down and review the complaint, she would have no comment about it.  

The has had one meeting, to set up its own rules, which were approved by the council last week. This complaint forwarded by Herschlag would be added to a number of complaints filed against Mayor and at-large City Councilor , forwarded by state Rep. , D-Concord.

Hershlag’s letter is below:

Board of Ethics

c/o the Concord City Clerk

41 Green Street

Concord, NH 03301

I am requesting that the Board of Ethics review, accept and act on my complaint regarding the recent actions of Councilor Jennifer Kretovic. At the June 18, 2012, City Council meeting, Councilor Kretovic failed to recuse herself regarding a motion made by Councilor Bouchard and the discussion and vote that ensued to withhold $20,000.00 in funding for Intown Concord. While there may no longer be a financial conflict, I believe the conflict is apparent as defined in the City’s Code of Ordinances Article 1-6-3.

Councior Kretovic had been an employee of the predecessor of Intown Concord, Main Street Concord Inc. She was the Executive Director of Concord 20/20 which forged a partnership with Main Street Concord Inc. during the Rethinking Main Street process. Councilor Kretovic along with the former director of Main Street Concord Inc, Jessica Eschelman, presented to the city council (prior to her election as a city councilor) and had accepted a report detailing the Rethinking Main Street project. The current Interim Director of Intown Concord is Kim Murdoch. Ms. Murdoch was hired by Concord 20/20 to survey downtown merchants regarding how they felt about the Rethinking Main Street project. Ms. Murdoch’s survey was included in the Rethinking Main Street report that was accepted by the city council.

I believe at this juncture it is important for me to reveal that I was a candidate for the Ward 2 city council seat during the last city wide election. Councilor Kretovic was my opponent and obviously I lost to her. My impetus for entering the race was my concern that because of Councilor Kretovic’s involvement with Main Street Concord Inc. (now Intown Concord), Concord 20/20 and her lead role in the Rethinking Main Street project that these conflicts would not allow her to have an unbiased opinion regarding these organizations and the Rethinking Main Street project. In fact the city is pending approval for a grant application for the Rethinking Main Street project that will have significant financial implications for our city if accepted by the city council.

I believe Councilor Kretovic’s failure to recuse herself during the discussion to withhold funding for Intown Concord is clearly a conflict of interest for the reasons I have stated above. In addition to the above complaint, I have concerns regarding Councilor Kretovic’s voting for a budget that included funding for Intown Concord and would ask the Board of Ethics to also rule on this matter. I respectfully request that the Board of Ethics accept my complaint and schedule a hearing for these matters.

Respectfully submitted by:

Allan Hershlag