Mr. Jim Brannon testified at city council last night, asking them to use their oversight of LCDC to help rebuild public trust in that agency and in city government. He was very polite and professional. After several other citizens made public comments, I got up to give my presentation. I asked the city council to do their job of supervising LCDC and I also asked them to request Charlie Nipp’s resignation. Here’s the full text of my comments to the council, and my description of their reaction:
Good evening Mayor Bloem and city council.
I am here today as a taxpayer of both the city of CdA and Kootenai County. The Lake City Development Corp., our urban renewal agency in CdA, handles MILLIONS of dollars in taxpayer money. Their decisions impact every property owner in Kootenai County. So I am here tonight to address the issue of public accountability.
When LCDC was first created almost 12 years ago, at the very first meeting of the board, then city attorney, Jeff Jones, explained that the Urban Renewal law requires conflict of interest disclosure forms. The law states the disclosures must be in writing and they must be done “immediately”. Charlie Nipp was named Chairman of the Board, at that first meeting.
Two WEEKS later, Nancy Sue Wallace, who is no longer a member of the board, filed her conflict of interest form. Three months after that, Dave Patzer, who is still a current member of LCDC also filed his disclosure form.
But no one else on the board bothered to file any disclosure forms for the next TEN YEARS. Not even the Chairman, Mr. Charlie Nipp, who owns property within the districts and sits on the board of Mountain West Bank, one of the banks doing business on a regular basis with LCDC.
Mr. Nipp did not fill out a disclosure form for TEN YEARS until a citizen filed a public records request to see the forms in 2007. The LCDC board had to hurry and have everyone fill them out. Only then did the Chairman, Mr. Nipp, the person who should have provided leadership and oversight, finally file the form disclosing the properties he owns within the LCDC areas. But he still did not list his business relationship with Mt. West Bank or that he is an owner of Glacier Bancorp, the parent company that owns Mt. West Bank.
Now we have an Attorney General’s investigation that shows that Mr. Nipp has violated state statutes by not disclosing his relationship with Mt. West Bank while he signed 6 loans between LCDC and his bank.
I am not here to say anything against Mr. Nipp personally. I know he is well-loved by his friends and family and has given a great deal of time and energy to this community.
But when an official makes decisions about MILLIONS of taxpayer dollars that affect everyone in the whole county, meticulous reporting of ANY possible conflict must be demanded. The law requires it and the taxpayers expect it.
You, Mayor Bloem and city council, are the ONLY supervisors of LCDC. YOU are the only recourse for the taxpayers. The public’s trust has been undermined by the lack of careful oversight and a cavalier approach to important public disclosures. Please request Mr. Nipp’s resignation from the LCDC board immediately.
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What was the city council’s reaction to my testimony? Stony silence. No questions. No comments…until I left the podium and sat down. THEN they started talking. The council lacks the courage to speak directly to those asking challenging questions. They wait until the person has returned to their seat, then the council members start flinging attacks from up on their high chairs. They attacked the questioners and defended Charlie and LCDC. But they never once addressed the issues. Not one word about the Attorney General’s report or the need for public disclosures. Not one word about their job as oversight power for LCDC.
And you expected anything different from this bunch? Rhetorical question. Deanna Goodlander pulled a Dixie Reed, did she shake her finger? Apparently the council as well as LCDC have never grasped the concept that, public bodies using tax dollars, must at all costs avoid even even the appearance of conflict of interest. That means take no chances. Err on the side of caution. This bunch is either oblivious or supremely arrogant. Arrogant by their actions. This reaction to the AG was no surprise. Bloem commented that she was sure they would be more careful in the future. And Sandi, we all know what that means. Sneakier, more covert, don’t tip the gravy wagon. It is mind boggling! Deanna Goodlander stated that she was “tired of it”. “It” being any and all criticism from the public. CDA council instructions to the public. Shut up and pay up. Perhaps that should go on the city seal.
Comment by Faringdon — March 4, 2009 @ 10:42 am
Did not Mayor Bloem just write that public employees should avoid even the ‘appearance’ of conflict of interest? Evidently when that threshold is obviously breeched there is no consequence.
Comment by Wallypog — March 4, 2009 @ 11:14 am
The council is obviously being paid to represent the LCDC, not the public. Both Mary and Jim asked them for oversight and accountability. Sadly, the response from Edinger and Goodlander was to attack the citizens who asked the council to do their jobs.
Comment by Dan — March 4, 2009 @ 11:32 am
Here is the verbatim transcript of Jim Brannon’s comment. I have removed his address.:
Comment by Bill — March 4, 2009 @ 11:43 am
Mr. Brannon was very well spoken last night. I especially appreciate this comment of his, “And I respectfully request that this Council in its oversight role ensure strict compliance with Idaho’s ethics in government laws.”
The city council member did not speak to any of Mr. Brannon’s concerns, they only blasted him for speaking out.
Comment by mary — March 4, 2009 @ 1:31 pm
And they waited until after he sat down and public comments were closed before they blasted him. Edinger and Goodlander had ample time to engage the public, people who didn’t have to be at that meeting. Yet they waited for the safety and comfort of a time when the public could not respond to make their attacks. Shameful and cowardly.
Comment by Dan — March 4, 2009 @ 1:35 pm
Oh, and one more thing. This morning’s Press article stated that “light applause” broke out after Deanna Goodlander said she was tired of everyone attacking LCDC. That was not correct. The ONLY applause was from councilman Edinger.
Comment by mary — March 4, 2009 @ 1:38 pm
I find it hard to believe that Mr. Nipp didn’t know he was a conflict
of interest type of situation.Being on both the LCDC and MWB boards and at the same time procuring loans for
LCDC from MWB.My perspective is:that
Mr.Nipp didn’t believe there was a conflict, because he is a volunteer and doesn’t receive an income from the LCDC.
I’m tired of the double standard in our society as these public officials
are treated differently than the private citizens are.So, if there was no criminal intent, but he broke
existing laws, what recourse is there
to satisfy this gross violation if the city council doesn’t kick him off LCDC’s board?Is it fair that he get off scott free? I own a business and my boss at this one federal agency almost cancelled one of my contracts just for a perceived conflict of interest last fall.Yet,
Charlie does it blatantly and he’s not even scolded.Where’s the justice?
Comment by kageman — March 4, 2009 @ 1:45 pm
Kageman, the mayor seems to say the right words, she just doesn’t follow through with any action. Yesterday, the Press article reported this: “Bloem added that any public official should declare even a perceived conflict of interest.” Yet, at the meeting last night, when obvious conflicts of interest were documented, she said nothing about increasing disclosures or being more judicious in the oversight of LCDC.
Comment by mary — March 4, 2009 @ 1:58 pm
I am sorry I could not be there to see this unfold. I look forward to watching it on cable TV.
Bill, I cannot say just how much respect I have for you (a whole lot) as well as Dan, Mary, Jim and Susie. (no particualr order :-)) You are a remarkable group, and I am so grateful for all the work you have accomplished that has exposed the antics of our local government. You did it.
Comment by Stebbijo — March 4, 2009 @ 2:27 pm
how about grateful = greatful? Great job Mary and Jim! Good think I wasn’t there – I don’t do well with formality.
Comment by Stebbijo — March 4, 2009 @ 2:33 pm
I’d be willing to give Charlie Nipp a free pass on this conflict of interest issue, if he were just a board member of LCDC.But, he was THE
CHAIRMAN of LCDC and as a chairperson
is supposed to give some of his own oversight to the LCDC board and should know more about proper procedure and state statutes, than anybody on the board save Tony Berns.
Mr.Nipp also, had at his disposal some of the best legal advice money could buy.
To summarize:This conflict of interest issue is inexcusable.I believe this is one reason why he stepped down as Chairman last fall.
Because, had he not stepped down as Chairman of lCDC, there would be a very strong call for him to do so.
Comment by kageman — March 5, 2009 @ 10:58 am
To make short of this, asking any city official to do their job is like asking for flys to stay off sh”t. Here in the good ole city of CDA- you have to be a member of the good ole boys club Called “Team Player” for anything to work. You must not have your own opinion other than the upper echelons.If you do, you will not last in any position put forth. I believe they are doing a great job, Like our Country Government has been doing the last few years,,NOT !
Comment by cityspy — March 5, 2009 @ 5:38 pm
cityspy,
Thank you for differentiating between the “upper echelons” and the subordinates who are trying to do the best they can and who are, in fact, doing an outstanding job. With only two and possibly three exceptions, the “upper echelons,” meaning department heads in the City need to either get their act together or be fired. Thank you for not judging the nonsupervisory city employees by the actions of their alleged leaders, their department heads. The city will survive and eventually prosper in spite of the lack of leadership, elected and appointed, and because of the exceptional quality of the nonsupervisory employees.
Comment by Bill — March 5, 2009 @ 7:45 pm
Here, here, Bill and Cityspy!
Comment by mary — March 5, 2009 @ 8:11 pm
The only team I want to play for is the community as a whole. There are many sides to an issue. No one side is right, no one side is “positive.” They are different and should be respected. The decay we see now is from an insider “upper echelon” culture that can no longer sustain itself.
Comment by Dan — March 5, 2009 @ 9:42 pm