Residents complain of conflict of interest

POLSON - Monday night's city council meeting turned contentious when some residents complained of perceived conflicts of interest by Polson mayor Randy Ingram and councilman Mike Maddy, and asked that a code of conduct be established to guide future council operations.

Hillside Court subdivision resident Bob Williams presented signed petitions, sections of the Montana Code Annotated regarding ethics, and a sample code of conduct to Ingram and other council members, saying he and others were concerned about the possibility of a conflict of interest by Ingram and Maddy regarding growth, water and sewer, and other related issues that have come before the board.

"There's a lot of concern in the community of … a conflict of interest, a lack of trust of this council to review certain issues," said Williams, who represents the "Polson Neighborhood Group Coalition."

Maddy, a local real estate developer, was absent from the meeting. He resigned his positions on the water/sewer and building/planning boards at the last city council meeting, citing the appearance of a conflict of interest.

Williams, who said he was speaking on behalf of "many" people in the community, directed most of his comments to Ingram. He did not list specific examples of any ethical breach by a council member or the mayor, but said that many of the items that come before the city council creates the appearance of a conflict of interest, especially growth and development-related issues.

Williams presented a statement to the council that said, "We assert that the mayor and Polson City Council … are in violation of Chapter 2, standards of conduct, Part 1, Code of Ethics," as defined by the Montana Annotated Code. It demanded that the city council and mayor not "exercise the powers and duties … with respect to any growth and water related issues" until a code of conduct could be adopted.

The statement also asked that an independent investigation be conducted into alleged conflict-of-interest violations. It went on to demand that a city growth policy be put in place before further development and growth issues are heard by the city council.

"We're not saying that you guys are necessarily guilty of any of these things," Williams said of the conflict-of-interest allegations. "But right now, nobody trusts you all. Everything tonight is about a lack of trust."

Williams has had a contentious relationship with the city council in the past, and although his comments were primarily directed toward Ingram, the accusations outlined in the statement were directed at the entire city council, drawing a heated response from several members.

"I'm very offended by these accusations. I can assure you that I have no conflict of interest," councilman Tom Corse said. "You have a tendency toward hyperbole, Mr. Williams. You said (you represent) the 'whole' community. The whole community isn't here."

Among the alleged conflicts of interest, Williams cited the rush to approve Maddy's proposed Cougar Ridge subdivision, the use of Osprey Consulting, a local engineering firm utilized by Maddy to evaluate his subdivision plans and also used by the city to help develop its master growth plan, and the fact that Maddy often makes motions regarding water and growth issues, Williams said.

"Has there been anything different with Mr. Maddy's subdivision than other subdivisions (brought before the city council)?" Ingram asked.

"I have zero conflict of interest with Mike Maddy's subdivision," councilman Mark MacDonald stated.

After Williams and a couple other attendees had stated their case, they left, and the meeting continued.

Two agenda items later was a vote to approve a public fund investment of $400,000. Four local banks submitted bids, and the winner, First Citizens Bank, agreed to pay 3.02 percent interest with a maturation date of 280 days.

Ingram, a paid First Citizens board member, asked councilman Dan Morrison to preside over the vote regarding the bids, citing a potential conflict of interest. Ingram then took a seat in the public-seating section while the council voted to accept First Citizens' bid.

MacDonald asked that the record reflect that the mayor stepped aside during the vote.

Ingram said after the meeting that city council members like to hire local firms whenever possible, in response to Williams' concern about the use of Osprey Consulting. He said he and the council would take Williams' concerns under advisement.

"In my position, people are going to be disagreeable. They will take the tact they are going to take," Ingram said. "We'll take a look at these issues and make a decision later on whether to act on them."