Friday, Mar. 05, 2010
EDC letter to council addresses Solon’s financial questions
John Beaudoin, Journal Publisher
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A recent letter to Blue Springs Mayor Carson Ross and members of the city council revealed that the Blue Springs Economic Development Corporation has done business with one current and former members of the city council.
On March 3, EDC President Brien Starner sent the information out in response to questions he received from District 3 council member Sheila Solon at the city council meeting March 1.
Solon questioned Starner on several issues following his presentation and update to the council on the proposed Missouri Innovation Park, including location of the project and when taxpayers may be reimbursed.
At the end of her questions, Solon asked Starner if any EDC or Blue Springs Growth Initiative members were paid for their service on the board. She also asked Starner if either organization had paid a Blue Springs City Council member for services rendered. In each case, Starner said no.
Since that time, Starner revealed that the EDC has done business with one current and two former city council members.
The most money out from the EDC went to former councilman Jeff Quibell, who owns CPros, Inc., in Blue Springs. From April 2008 until present, Quibell’s company has been paid $11,475 from the EDC for Internet Technology services and ongoing support.
The EDC also did business with former council member Traci Via, owner of Trace Marketing, in the amount of $180 for Web site content development in February of 2010. Via came off the city council in April 2007. Currently Councilman Kent Edmondson’s company, KWIK Kopy, received $110 from the EDC for printing services in May of 2009.
Starner said he hopes the letter and information will clear up any questions Solon or any council member has about who the EDC does business with and why.
Starner said he wants to continue to do business with not only those that invest in the EDC, but with local Blue Springs businesses.
“We have been asked and directed by our founding board and past city council to do everything we could with the city’s investment and other investor’s investment in the EDC to spend money with our investors as well as spend money in Blue Springs,” Starner said. “We’re perfectly comfortable with answering questions. It is absolutely in the interest of this community to support Buy Blue Springs initiatives as well as supporting EDC investors. There is nothing legally or ethically that prevents us from doing business with people on the council. These are business people who happen to be volunteers or investors.
Solon, however, said the practice – outlined in Starner’s letter – smacks of “pay for play.”
“My greatest concern is the manner in which EDC awards contracts; 78 percent of their budget is from the taxpayers,” Solon said. “According to their policy, the No. 1 prerequisite is EDC membership; secondly, is it a Blue Springs business, and thirdly, value. When we are dealing with public funds, we should always seek the best value for the taxpayers. This was a great concern in the community when EDC was formed as a separate corporation. This was something we feared and it appears to be true.”
Quibell said his dealings with the EDC could not be construed as anything other than above the board since his bid came after the EDC made a request for proposal and he was the low bid.
Quibell’s company was first contacted by the EDC back in November 2007 and was notified of the bid in February 2008. After the project was completed on April 7, they were given their first payment on April 24. Quibell’s term ended in April 2008.
“As councilman Solon knows, we were part of a competitive bid situation and we were the low bidder,” Quibell said. “Councilman Solon’s public comments would suggest that there was, somehow, this arrangement was inappropriate, when in fact we went through the proper, competitive bid process. If you sit down with bids and the low bidder wins, I’m not sure there is impropriety with that.”
But Solon said when the EDC makes “their No. 1 criteria for awarding contracts are EDC membership,” the waters are quickly muddied.
“If this was private company, you could award contracts in any way you see, but this is taxpayer money,” she said. “My issue is on how contracts are awarded. The criteria he laid out in his letter deeply concerns me. It’s something we feared, but hoped wasn’t true. And we’ve got their policy in black and white now.”
Still, Starner says his organization frequently does business with non-EDC members, noting that Wal-Mart and Hy-Vee are among them.
“We’ve done business with people all over town, investors and non-investors alike. If we don’t do business with the people that are financially supporting us, are we doing good business?” Starner asked.
Starner also said he is happy to answer any questions about the EDC.
“I’m glad we’ve had the questions asked,” he said. “Based on updated information, we did answer those questions in an effort to be transparent. Notwithstanding that we always have had five appointees from the city council on our board, including the mayor.”
Solon said having those answers is a good start.
“I was pleased he corrected his misstatement,” she said. “As I said at the meeting, constituents asked me questions. I asked the question because I didn’t know.”
The EDC and BSGI also go through rigorous audits, Starner said.
“I want the public to know that we go through audits and have an account that keeps the books for both organizations,” he said. “We have multiple layers of oversights.”
To reach Journal publisher John Beaudoin, call 816-282-7001 or e-mail jbeaudoin@bluespringsjournal.com
