Published: November 03, 2009 08:18 am      

Loan: City awarded work before advertising

Commissioner’s relative gets ice storm bid

A bid for ice storm debris cleanup was awarded to a business partly owned by a city commissioner’s son-in-law more than 10 days before it was advertised in the Richmond Register.

An open records request issued by the newspaper revealed that all commissioners signed a memorandum dated Jan. 30 allowing KK & RR LLC, which is partly owned by Jimmy Kelly, Commissioner Bill Strong’s son-in-law, to perform work “... for tree removal and disposal sue to the severe weather conditions,” the memorandum reads.

An advertisement for bids did not appear in the Richmond Register until Feb. 10.

“After negotiations with vendors, it is recommended by the city manager (former city manager David Evans) that the city contract with KK & RR,” the memorandum reads.

The date listed on KK & RR LLC’s bid is Jan. 30, 2009, which is the same day all commissioners, including Strong, signed off to award the bid.

Minutes from the Feb. 24 city commission meeting, which was where the work was awarded by the commission show that Commissioner Rita Smart “... questioned who is KK & RR, LLC and the City Manager explained it was Jimmy Kelly and Joe Robinson,” the minutes read.

Strong abstained from voting and Commissioner Robert Blythe was absent, but the work was awarded with “yes” votes from commissioners Smart and Mike Brewer and Mayor Connie Lawson.

Four other bids were received with dates of submission ranging from Jan. 29 to Feb. 17.

According to J.D. Chaney, director of governmental affairs for the Kentucky League of Cities, the city did not have to advertise for bids because an emergency situation had been declared.

Lawson took out a $600,000 loan in March from National City Bank on behalf of the city, without bringing the issue before the commission. The loan was taken out to help compensate for ice storm debt.

An open records request from the Richmond Register revealed that $354,600 of a $600,000 in borrowed funds went to KK & RR LLC.

The Secretary of State Web site lists the current officers for KK & RR LLC as being Joe and Mike Robertson and Gary and Jimmy Kelly.

Rumors have circulated around Richmond in recent weeks stating that this is an obvious conflict of interest, however, Strong disagrees.

“I don’t know what the fuss would be about,” Strong said. “They (KK & RR LLC representatives) dealt strictly with the city manager and the mayor. It came before the commission and I abstained from voting (when the work was awarded). It was a situation that was an emergency and it needed to be taken care of.”

Ronica Shannon can be reached at rshannon@richmondregister.com or 624-6608.