Commission seeks legal advice on McDonald ethics case

Friday, Feb. 18, 2000 | 11:06 a.m.

RENO -- The state Ethics Commission will seek further legal advice on whether it can conduct a full-scale investigation into allegations that Las Vegas Councilman Michael McDonald and his lawyer misled the board in a prior hearing.

The commission voted Thursday to ask Attorney General Frankie Sue Del Papa if it may proceed.

Nevada law requires a complaint filed with the Ethics Commission to be reviewed by a two-member panel that would decide if there is enough evidence to go forward with a hearing before the full board.

That happened in January when Commission Chairman Pete Bernhard and Commissioner Hal Smith found sufficient evidence to schedule a full hearing on McDonald's conduct in voting for the continuation of Silver State Disposal Service's trash contract with the city of Las Vegas.

But Bernhard and Smith split 1-1 on the issue of whether McDonald's attorney, Louis Palazzo, misrepresented information to the commission last year with McDonald's knowledge.

Bernhard felt there was sufficient evidence for a full commission hearing. Smith did not. To break the deadlock, they agreed to ask the commission to hire investigators to look into the case.

This presented a legal problem for the commission. Since the panel did not find just and sufficient cause to go forward, that aspect of the case may have died. But some members felt the full commission should enter the case.

Commission Counsel Nancy Varnum said a 1-1 deadlock means there was not sufficient cause to go forward with the case, but Bernhard said he feels the commission should step in when there is an impasse at the panel level.

"We were confused, too," McDonald said this morning. "We think that with a 1-1 vote, it should have died.

"But that's up for the attorneys and the Attorney General's office to decide," McDonald added. "At least we get our day in court."

Commission Executive Director Kenneth Rohrs said it could cost up to $7,500 to hire investigators to look into the allegations of misleading information surrounding McDonald's relationship with Jennifer Simich, a Silver State Disposal employee.

Questions have arisen over when McDonald and Simich broke off a romance. It is alleged that the councilman and his attorney misled the commission about the status of the relationship at the time of the vote on the contract.

The two-member panel that met in January did find enough evidence to hold a full Ethics Commission hearing on a related matter next month. That issue involves whether McDonald made proper disclosures of his friendships with Silver State executives and his relationship with Simich prior to the July vote.

Meanwhile subpoenas were issued for the appearance of Silver State President Steve Kalish and company attorney Robert Groesbeck to appear at the March 23 hearing in the McDonald case.

McDonald is friends with Kalish and Groesbeck, and he received $36,800 from Silver State and its related companies for his last political campaign. Kalish held a political fund-raiser for McDonald.

Last July McDonald voted with the majority on the council to approve a 15-year extension until 2021 for Silver State's exclusive trash-hauling contract, estimated to be worth $1.5 billion.

At the council hearing, McDonald revealed the campaign contributions but not his close relationships with the three company officials.

Sun staff writer Erin Neff contributed to this report.