Wentzville investigates payment to group mayor cofounded

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Wentzville investigates payment to group mayor cofounded
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Wentzville is investigating a $15,000 check issued five years ago to an organization cofounded by Mayor Paul Lambi.

Alderman Chris Gard, Ward 2, on Feb. 8 handed what he called a "troubling" check to City Attorney Paul Rost and asked him to look into it. As of Feb. 16, Rost had not reported his findings, Gard said.

The check was one of hundreds of ambiguous payments and contracts being audited by the city's purchasing administrator, Jerry Hillin. Gard said the check was cashed, but there was no documentation that the city received any services in return for $15,000 paid to a company identified on the check as Westplex LOC.

"We need to know what happened to that money and what did we get for it," Gard said. "There are issues with who was involved with the company when the payment was made. These are serious issues that need to be addressed, beyond just the return on investment."

Gard said Thursday he believed the payment was made to Westplex Sports and Entertainment LOC (Local Organizing Committee), a limited liability company organized in 2007 by Ed Watkins, president of Winning Endeavors, a fundraising consulting firm in St. Peters.

In 2009, Watkins hired Wentzville Mayor Paul Lambi as Winning Endeavors' chief executive officer. A Suburban Journals story published in December 2007 identified Lambi as cofounder of the Westplex committee, established to promote sports and entertainment facilities in St. Charles, Warren, Lincoln, Franklin and Washington counties. The committee sought to boost local tourism and sales by trying to attract national-level sporting events to the area.

Lambi's website for his 2010 re-election campaign also identified him as founder and board member of the local organizing committee.

Lambi has hired defense attorney Chet Pleban to represent him as the city and outside agencies investigate what a Feb. 8 city news release described as "possible conflicts of interest."

Gard said the check, approved by the Board of Aldermen in 2007, was not endorsed with a handwritten signature, but rubber stamped with what appeared to be an account number. Gard said the address on the check was not valid. City staff questioned aldermen who voted on the payment in 2007, but they could not explain what happened, Gard said.

The Journal on Thursday requested a copy of the check. The city had not released a copy by Journal deadline Monday.

Gard said city staff tried to speak with representatives of Westplex LOC, but "ran into brick walls."

Watkins said Thursday there was no mystery about the $15,000 check. It was indeed paid to his company, Westplex Sports and Entertainment LOC, Watkins said. But Watkins distanced Lambi from the check, saying "all this happened two years prior to my hiring Paul Lambi to work for me."

Watkins said the aldermen in 2007 approved the $15,000 to help pay for a sports event the city cosponsored. The check covered the expense of bringing two sports celebrities, Dean Karnazes and John Howard, to St. Charles County during the Tour of Missouri pro bicycle race in September 2007.

Karnazes, known for extreme marathon running, and Howard, known as "the Babe Ruth of cycling," spoke at a dinner reception celebrating the creation of the Westplex LOC, according to a 2007 Journal story.

Watkins said the committee was trying to organize support for creating an indoor cycling facility called a velodrome, something that does not exist in this region. The velodrome would have hosted bike races leading up to the Tour of Missouri. But the plan died in 2010 when the state cut funding for the 500-mile bicycle race.

Watkins said city staff had not contacted him with questions about the check. "I would welcome an investigation," Watkins said. "When it comes, I would be more than happy to participate in it."

Watkins said he had "all the documentation anyone would ever want" to back up the 2007 payment. He said Gard's questions about the check were part of a "witch hunt" to discredit Lambi.

Watkins said the board was trying to deflect attention from its own activities. He said attorney Pleban was investigating whether the city should have solicited bids before approving a $360,000 subsidy for Ranken Technical College's new Wentzville satellite campus. City officials have said it was not necessary to request bids before making the Ranken agreement.

Lambi on Monday confirmed he was a founder of the LOC, but said he was working strictly as a volunteer. Lambi said he was doing what many St. Louis area mayors have done, that is, working for Watkins on a volunteer basis to bring economic development opportunities to the region.

"We were very fortunate that Ed took an interest in our little town," Lambi said. "He was trying to help us be prepared, to have an action committee ready to go, so we could take advantage of sports and economic development events."

Lambi said the LOC is "on ice" now but could be re-activated any time.

Lambi said certain city officials were trying to hold the purchasing and finance departments to standards that exist today, but did not exist in 2007. He said the city followed all purchasing policies required in 2007 when aldermen approved a resolution authorizing the payment. The resolution was vetted in public and by the city attorney and economic development director at the time, Lambi said.

Gard said he was not aware of anyone on city staff questioning Lambi about the check, but added that Lambi had the opportunity to comment on it, but remained silent.

Lambi confirmed no one with the city had asked him about the check. He said he knew it was being investigated, but chose not to volunteer any comment.

"When you know they are conducting a witch hunt, there is no reason to comment on it," Lambi said.

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