Road Co-Chair Paul Ranttalo - Conflict of Interest

July 24, 2016

Dear GLA board,

At the July 11, 2016 GLA Board meeting GLA's Road and Weed Committee Co-Chair Paul Ranttalo reported that he had cleaned three culverts for free and was willing to clean the others for $150. (It should be noted that one of the three culverts cleaned for free got filled when Ranttalo's truck went over the edge of the road and could only be moved by dumping the load into the ditch which blocked the culvert.)

Though on the surface Ranttalo's offer might look like a good deal for GLA, it is NOT because Ranttalo has a dual capacity in this situation which is all about Conflict of Interest. And further, if you as a board hire Ranttalo knowing of his dual capacity, then you as a board have a Conflict of Interest as well.

Ranttalo has inside information which gives him an unfair advantage over other contractors. He gains this inside information from his role as a Board member and his role as co-chair of the Road Committee. Per Montana's Non-Profit Act and GLA's Conflict of Interest Policy, a Corporate Director is not permitted to use his corporate role(s) for personal benefit.

While it might be argued that Ranttalo can step aside and not vote on who gets hired to do GLA road work, the facts are that Rantallo is too entangled to actually step aside. As Co-chair of the Road Committee Ranttalo is an intimate player in the decision about which road work needs to be done and in the inspection of the work product. Further many of you have long-standing ties to Ranttalo which can readily compromise your choice of who to hire for road work.

As Directors of GLA, you have a serious fiduciary obligation to spend member money with due diligence and full documentation – this means you cannot hire anyone with a Conflict of Interest even if such a move would save GLA money. Convenience and/or efficiency cannot override due corporate process or any ethical or moral concerns. The use and management of corporate funds calls you to a higher standard than if you were simply spending funds held by a private group.

The unavoidable facts are Ranttalo either needs to step down from the board and work for GLA or stay on the board and not work for GLA. To learn more about how dual capacity creates an unavoidable conflict of interest, “google” The Foundation Group on the internet. They are America's most experienced, most trusted resource for nonprofit formation and compliance services.

Personal integrity and responsibility for your corporate duties/service to all GLA members requires each of you to avoid all Conflict of Interest. Failure to do so is simply not an option.

Thank-you.

Donna Lash-Andersen