Local Campaign Finance Group Asks Council For New Ethics Rules

UNIVERSITY CITY, MO — A local group led by Jim Bashkin and Irv Logan presented the city council Monday night with more than 150 pages of campaign finance information they say shows a conflict of interest involving several council members, two U-City landlords and political action committees associated with a local firefighters union. The documents show more than $10,000 donated by businessmen Steve Stone and Dan Wald directly to council candidates and an additional $6,000 they donated to firefighter PACs that subsequently made its way to firefighter-supported candidates. Additionally, PACs representing the International Association of Firefighters, Local 2665, have donated more than $50,000 to a handful of University City politicians since 2012, including current councilmembers. Councilmembers named in the group's report as having taken donations from Stone, Wald or firefighter PACs include: Paulette Carr, Bwyane Smotherson and Steve McMahon.

Councilmember Carr called the accusations politically motivated. Smotherson and McMahon didn't respond for comment. Patch has also reached out to Stone and Wald, but has yet to hear back.

"The current council majority voting block was created by the election of two members who have received significant donations from both firefighter PACs and two University City businessmen. It is our belief that this funding has resulted in a Council majority that has potential conflicts between the interests of their substantial donors and the interests of the taxpayers of University City," Bashkin said. "As University City taxpayers, we are concerned the significant donations will influence how this majority will vote."

Bashkin pointed to two matters that may be up for council vote that especially concern him. "This Council majority will vote on the next firefighter contract, and can vote to overturn the outsourcing of EMS services in University City," he explained. "This Council majority can also vote on development or control of parking lot #4, the last large undeveloped piece of land in the Delmar Loop."

The city's first-responder services were outsourced in 2015 to Gateway Ambulance, a private company that operates throughout St. Louis county. The move was fiercely opposed by firefighters, for obvious reasons, and by many U-City residents who worried their quality of service might go down. But, according to a city analysis, the move not only saved the citizens money but time, shaving about a minute, on average, off call response times. The former city manager estimated the cost to bring EMS services back in-house might be around $1 million a year, including personnel, training and equipment costs, plus pension liabilities.

The other issue raised by Bashkin is a large, undeveloped parking lot adjacent to the Delmar Loop. He says both Stone and Wald, who own real estate acquisition and management firms that do business in University City, have lobbied the city for control of the parking lot, which is located just behind Delmar Blvd and runs the length of the area between Kingsland and Leland Avenues. According to Bashkin, the businessmen even drafted a proposed contract for the city to sign, but former City Manager Lehman Walker refused.

Walker was fired by the council last year for allegedly making racist and sexually-harassing comments to city employees. Walker denied those claims, and the city paid him a $150,000 settlement to resolve the dispute. The council majority that voted to remove Walker included Carr, Smotherson and McMahon.

Logan called on the council to draft a resolution requiring councilmembers to disclose their campaign contributions and recuse themselves from issues where their donations could create conflicts of interest. "My request is simple," he said, "that all candidates for mayor or city council not accept contributions from any individual, association or business entity that is, or potentially will be, a party to any matter that requires a council vote. If an elected official has accepted a significant contribution in excess of $500, and a related matter subsequently comes before the council for a vote, the member must recuse him or herself from that vote. Additionally, the city should prohibit campaign contributions in excess of $500 from any employee, union or related organization doing business with the city. Our elected officials have a fiduciary duty to act in the best interest of all citizens of University City. Voting on matters that involve campaign donors that may have undue influence is a clear conflict of interest and must be avoided."

Logan said the city could be exposed to costly litigation if the council doesn't develop a clear, proactive policy regarding campaign contributions.

Councilmember Carr and her supporters called the accusations, which come at the beginning of campaign season, biased and unfair — the city will hold municipal elections in April. Carr pointed out that Bashkin had endorsed Mayor Shelley Welsch, who is now in the council minority, in her 2010 and 2014 mayoral campaigns. Bashkin's name is on a list of supporters Carr shared with Patch.

"Ms. Welsch and her supporters beat this same drum during the elections in April and November of 2016 to no avail," Carr said. "Despite [Bashkin's] suggestion, the firefighters' involvement in city council elections in University City began in 2010 when they endorsed and financially supported Ms. Welsch's campaign for Mayor and again in 2012 when the union supported the Mayor's candidate, who was my opponent. Despite the fact that the union has not been involved in a Council election since 2014, this anti-firefighter campaign was waged during the elections of April and November 2016. The message was clear: voters rejected the policies and direction of the Mayor's former council majority and administration, and set our city on a new path."

Welsch was endorsed by the firefighters union for her 2010 run, when she campaigned for more competitive pay for city firefighters, but Bashkin and Logan say they found no financial contributions to her campaign from the firefighters. Welsch confirmed she received no donations from firefighter groups, and election reports obtained by Patch support that. For 2010, they show no contributions from firefighter groups, though, a PAC associated with the firefighters union did send out mailers endorsing Welsch, among other candidates, in her 2010 run.

"I do know the firefighters endorsed me in 2010," Welsch said. "However, I looked through and provided all my election reports...when asked about Ms. Carr’s comments. I found no contribution from the union listed on any of my election reports. I also could not find any donations to me listed on the firefighter reports."

Bashkin and Logan stress that they found nothing illegal in their investigation. Nonetheless, they want to see more transparency and accountability when it comes to campaign finance, and a return to campaigns funded by small donors. "It was rather shocking to see what percentage of campaign funds for some individuals came from special interest groups," he said. "It's the kind of conflict of interest that would not be allowed in most circumstances. It's important to look into these things seriously."

Correction: An earlier version of this article indicated that councilmember Paulette Carr had taken donations from political action committees associated with International Association of Firefighters, Local 2665. She has not. Referenced donations to Carr came from Steve Stone and Dan Wald or businesses associated with them.

This article has also been updated with a comment from Mayor Welsch and a clarification explaining that Patch could find no evidence supporting councilmember Carr's comment that Welsch was financially supported by the firefighters union. Election reports show she was not.

Photo: Irv Logan speaks at the University City council meeting Jan. 8 as councilmembers Paulette Carr and Steve McMahon look on. (J. Ryne Danielson/Patch)