Friday, December 24, 1999
Courthouse bid debacle sparks bill
Attorney general suggested changes
BY PATRICK CROWLEY
The Cincinnati Enquirer
FORT MITCHELL — The bidding scandal involving construction of Kenton County's new courthouse has prompted legislation designed to prevent a repeat of the events that led to the resignation of then-Judge-Executive Clyde Middleton.
The proposed law is based on recommendations made by the Kentucky attorney general's office, which investigated the bid awards, said Rep. Bob Damron, D-Nicholasville, the bill's primary sponsor.
“There were a number of things the investigation found that need to be addressed in state law when it comes to procurement procedures used by local governments,” Mr. Damron said this week.
“This is not meant to say that local governments are doing anything wrong, but some changes are needed.”
Schools would not be affected by the law because there are already stringent guidelines involving education-related projects, Mr. Damron said.
His bill would affect any local government project over $1 million.
“This bill is necessary and I'm probably going to co-sponsor it,” said Rep. Paul Marcotte, R-Union. “With the $1 million threshold local governments won't have to follow new procedures for every single project, just the large ones.”
Among the bill's provisions:
• Public officials would have to report all contact they have with bidders on construction projects.
• Companies bidding on public projects would have to identify the subcontractors they intend to hire.
• Local government officials would have to take training courses on procurement procedures. The training would be provided by the Kentucky Department of Local Government.
• Public officials or private citizens and developers misusing information in the awarding of contracts could be charged with a Class D felony and, if convicted, face one to five years in prison.
Mr. Middleton admitted that on at least three occasions he showed developer Bill Butler, president of Corporex Companies Inc., the bids of two other developers trying to win the contract to build the $36.5 million courthouse in downtown Covington.
Corporex was awarded the project in 1997 by the Kenton County Fiscal Court when Mr. Middleton was a voting member.
Mr. Butler has maintained the bids were public. Investigated by the attorney general's office for 14 months, he was not prosecuted.
Mr. Middleton resigned last year and pleaded guilty to a misdemeanor charge of official misconduct. He was sentenced to two years' probation and paid $25,000 in restitution.
The attorney general's office has said a new law is needed. Kentucky statutes made it 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.
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