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Leader's relationship a risk, experts say

Dunedin's interim city manager says she would never let her living with the city's recreation director become a problem for the city.

By TAMARA EL-KHOURY and AARON SHAROCKMAN
Published January 26, 2006

DUNEDIN - Interim City Manager Maureen Freaney and the city's recreation director own a home together, and the two have lived there for 10 years.

Such a relationship between manager and subordinate would be closely scrutinized in Clearwater and discouraged, if not prohibited, in Tampa. And experts in workplace management say such arrangements should be avoided because they raise issues of favoritism and can lead to questions from co-workers about fairness.

But in Dunedin, Freaney's arrangement with recreation division director Peg Cummings has been discussed at the top levels of city government and accepted.

In an interview Wednesday, Freaney, 49, who took over for retiring City Manager John Lawrence last week and wants the job permanently, said she would not let her relationship with Cummings create any problems for the city.

"The last thing I want is for the city to think the decisions that come out of this office are made for some other reason than what is in the best interest of the city of Dunedin," she said.

Freaney would not discuss her relationship with Cummings beyond their joint ownership of the house on Santa Barbara Drive. But both women said Cummings would consider leaving her job after 26 years with the city if it's in Dunedin's best interest.

Freaney has worked for the city for 22 years and had been assistant city manager since 1998 before being named interim city manager. City officials said Cummings reports not to Freaney, but to the director of leisure services, who reports to Freaney.

"I would never allow any personal relationship to interfere with the job I do for the city of Dunedin," Freaney said. "I think my history with the city and my record with the city is a testament to that."

Experts in human resource management say it could create problems for an executive to own a home with someone who works in the organization that the executive manages.

Officials in Tampa cannot appoint, hire or promote someone they are in a close relationship with. In addition, city supervisors and managers are prohibited from forming personal relationships with subordinates. In Tampa, a close personal relationship is defined to include "cohabitation."

Clearwater's nepotism and employee relationship policy seeks to "ensure objectivity concerning relatives or those of close intimate personal relationships, both in perception and reality, in matters concerning their hire, evaluation, promotion, assignment of work, and management of performance."

Clearwater Human Resources director Joe Roseto said the city takes a practical approach. For example, when a couple working in the same department became engaged, Clearwater officials worked to remove any possible conflict. One employee could no longer process the other's pay stub.

"There clearly was a potential for conflict," said Roseto, who, when hearing of the situation in Dunedin, said it could present problems.

William P. Anthony, the Carl DeSantis professor of business administration emeritus at Florida State University, said companies would typically prohibit a top executive from living with a subordinate.

Anthony, who founded the executive management education program at FSU, said "even if you're living together, it creates all sorts of problems."

He said issues could arise about potential promotions, job reviews, raises, even possible sexual harassment concerns.

"This should be discouraged," said Anthony, who has advised several major companies, including Motorola and State Farm Insurance as well as Florida government agencies. "It's just not good practice."

Wayne A. Hochwarter, associate director of FSU's Center for Human Resource Management, said Freaney's situation "is dicey" at best.

There are too many possible conflicts, he said. Some private companies even ask people in relationships to sign contracts in an acknowledgement that potential conflicts may arise, he said.

"It's probably not an issue in 99 percent of the instances," Hochwarter said. "However, in those cases where the relationship does become known, it's not so much how it may affect the two people, but it's everyone else who knows what's going on. Are they going to be thinking, "I ain't got a chance at getting a promotion over her"'?

The relationships "don't have to be romantic," he said.

"They're working in the same organization and one person is responsible in some way for job-relevant outcomes," Hochwarter said. "There is some way a financial vested interest in the other person's well-being. That's not kosher."

David Steffen, the legislative director for HR Tampa, a local professional association for human resources professionals, said most private businesses have a fraternization policy to address cases like Freaney's.

Still, Steffen said "most experienced employers would treat it like any other private relationship. It really is determined on a case-by-case basis."

In Dunedin, City Attorney John Hubbard said that Freaney and Cummings own a house together violates no state law or local ordinance.

"Any two of our city employees could get together and own a piece of property together," said Hubbard, whom Freaney approached last year after Lawrence announced he would retire. She wanted to see if owning a house with Cummings posed any legal problems, Hubbard said.

Both Florida statutes and city policy restrict the employment of relatives but do not address people who own a residence together, Hubbard said.

The city manager has the sole responsibility for the appointment and removal of all city employees, according to the city code, and the management and supervision of all city departments.

The joint home ownership never concerned Lawrence because he said both women are so professional.

"It's inconceivable to me that (Freaney) would somehow favor (Cummings) in a business sense," Lawrence said.

Mayor John Doglione and Vice Mayor Julie Scales said they had confidence that Freaney and Cummings would handle their jobs professionally.

Doglione said he's not concerned about perceptions of favoritism because Cummings directly reports to the director of leisure services, Harry Gross, who reports to the city manager.

"The only time perception comes up is when someone makes an issue out of it and then perception becomes the buzz word," Doglione said.

Freaney was a very good assistant city manager and has handled some difficult issues for the city, including the decision to eliminate the city's police department and contract with the Sheriff's Office, Scales said. Living with a subordinate shouldn't be a factor in evaluating Freaney for the job, she said.

Generally, it's good policy to prohibit supervisors from relationships with subordinates, said Commissioner Bob Hackworth.

"I think that this has to be dealt with, but I don't think it needs to be the most relevant part of the decision," Hackworth said.

Freaney said she wants to deal with the issue head-on and that it will be an important conversation to have with the commission.

"This will just be something that will have to be discussed," Freaney said.

If the best interest of the city means Cummings has to end her 26 years of employment by the city, both Freaney and Cummings said they would consider that.

"Yes, I have considered other options and discussed them with the appropriate people," Cummings said.

Tamara El-Khoury can be reached at tel-khoury@sptimes.com or 727 445-4181.

[Last modified January 26, 2006, 01:01:17]