Wednesday, April 21, 1999
Butler on defensive over bid law
BY PATRICK CROWLEY
The Cincinnati Enquirer
FRANKFORT, Ky. Developer Bill Butler defended his role Tuesday in the Kenton County Courthouse bidding scandal and maintained some lawmakers are misdirected in how they want to change state laws governing public construction projects.
Mr. Butler, president of Corporex Companies Inc., didn't testify in person before the General Assembly's Capital Projects and Bond Oversight Committee, whose members are drafting changes to Kentucky's procurement law because of the controversy generated by the Kenton County project.
Mr. Butler did submit to the committee a two-page letter, most of which he used to argue that no laws were broken or procedures violated when Clyde Middleton, then Kenton County judge-executive, showed him the construction bids of other developers competing to build a $36.9 million courthouse and garage.
Mr. Butler, whose firm won and is building the project in downtown Covington, said in his letter that to conclude that bids were not public information is simply incredible.
And to suggest my personal contact with (Mr.) Middleton, the chief executive of the county, was inappropriate is without foundation or support, said Mr. Butler, continuing the stance he has maintained throughout the controversy.
In a report issued last month by Attorney General Ben Chandler, Mr. Middleton admitted that on at least three occasions he showed Mr. Butler the bids of two competing developers, Carroll Properties of Florence
and Wessels Construction and Development Corp. of Fort Wright.
Mr. Middleton also said he and Mr. Butler knew they were not supposed to be looking at the competitors' bids.
Though investigated by the attorney general's office for 14 months, Mr. Butler was not prosecuted.
Mr. Middleton, however, resigned from office last year, was prosecuted by the attorney general's office and pleased guilty to a misdemeanor charge of official misconduct. He was sentenced to two years probation and paid $25,000 in restitution.
Carroll and Wessels sued Kenton County, which settled for $850,000. The county then sued Corporex, which agreed to pay $425,000 to the county.
In his letter to lawmakers, Mr. Butler said Corporex deserved the project because it had the lowest, best bid for the project.
In the end, my company delivered the most upscale parking deck in the entire Commonwealth and a state-of-the-art courthouse for 30% less than any other recent project in the State of Kentucky, he wrote.
Mr. Butler also defended his own reputation and actions, as well as the reputation of Mr. Middleton.
In thirty-five years of business I have earned a solid reputation best known for the highest levels of integrity and quality, he said. Both Clyde Middleton and I were key leaders in all the progress in Northern Kentucky during the past 10 (to) 15 years.
Mr. Butler disagrees with how lawmakers are proposing to change the state's bidding laws.
Legislation being drafted by lawmakers would strengthen the procurement codes local governments must follow and make it illegal for private citizens to solicit information about private bids.
The attorney general's office testified last month that a new law is needed because while under current state statutes it was illegal for Mr. Middleton as a public official to show and discuss bids with Mr. Butler, it wasn't illegal for Mr. Butler as a private citizen to seek, look at or discuss the bids.
Under changes proposed by the attorney general's office, bidders or companies working on a government-funded project would also have to disclose any prior business relationship they have had with any other company, individual or public official involved in the project.
Anyone accused of breaking the law could be charged with a felony.
Rep. Bob Damron, D-Nicholasville, said he is drafting a procurement regulation and protection law to be considered in the 2000 session of the General Assembly, which begins in January.
We're trying to protect (elected officials) from getting caught up in a situation that Clyde Middleton did, Mr. Damron said.
The law will include training for local elected officials and probably a stipulation that officials keep a log book of everyone they have contact with who is involved in a project from the time bids are submitted until a contract is awarded, lawmakers said.
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