Conflict of interest affects city budget
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Editor,
Several years ago the city entered into a lease agreement with B&I Holdings for the property known as the “Core” building on Kerr Dam Road.
On July 15, a private citizen asked the city council why B&I was allowed to be over 24 months behind in the required $1500 monthly payments. The past due amount appeared to be $36,000. The answer given was a dispute over who was supposed to pay some county taxes. The city attorney either drafted or reviewed the original lease but no one disputed the fact that the agreement was “silent” on who was to pay the taxes.
After the subject was allowed to be on the city council agenda, the city received a payment, labeled “paid in full,” in the amount of about $24,000. The city manager asked the city attorney to determine if somehow the reduced payment was in fact payment in full. To her surprise, the city attorney told her he had a conflict and could not address the question. When asked at the Monday meeting, the mayor stated the conflict was a result of the city attorney accepting the owner of B&I, Mike Maddy as a private client.
That action by the city attorney now forces the city to retain other attorneys when a question is raised on any issue involving Mr. Maddy.
Within the past two months an annexation request involving Mr. Maddy was conditioned on the city attorney approving the annexation. No conflict was mentioned. When impact fees collected on the Mansion, owned by Mr. Maddy, were determined to be less than required by the ordinance and when the city’s planning department concluded that a Special Use Permit was required for the use of the Mansion but was overruled by the attorney, he apparently did not yet have any conflict.
When asked, neither the mayor nor the manager had bothered to ask the attorney when the conflict began. There was no mention of where the money was to come from for the additional legal services. Since the acquisition of new clients is voluntary, the council should consider reducing the current attorney’s compensation to cover the new costs.
Bob Fulton
Polson
