Dropping Department Cost Bonner County County Paid Ex-Workers $130,000, Then Saw Its Insurance Rate Rise

A local watchdog group claims Bonner County shelled out $130,000 for its share of settlements after eliminating its building department and firing the road and bridge supervisor.

Eight former building department employees and the former head of the road and bridge department were awarded a total of $260,000, according to figures released by the Bonner County Taxpayers Coalition. The payment to the employees was split between the county and its insurance carrier, Idaho Counties Risk Management Program.

The settlements followed an $8.8 million lawsuit filed by the former employees, who were fired after commissioners Bud Mueller and Larry Allen took office.

Mueller and Allen disbanded the building department because they considered it unnecessary and expensive to taxpayers and residents. Allen later said he regretted the rash decision.

The actions by the commissioners also prompted the insurance carrier to raise the county’s premium because of the county’s high number of claims.

The premium increased $140,000 following the lawsuits. That hike and the settlements brought the total cost of dissolving the building department and firing the road and bridge supervisor to about $270,000.

“If the citizens of Bonner County picked up so much of the tab, why was it kept secret and why did the rates charged by ICRMP (the insurance carrier) then jump so dramatically?” Edgar Steele, secretary of the taxpayers coalition, asked in a press release.

Steele could not be reached for further comment Monday.

Scott Reed, attorney for the building department employees, said the secrecy clause is a standard part of most settlements and was not pushed by any one party in the negotiations.

Steele did not disclose how he came by the settlement figures, citing the secrecy clause. But a county commissioner didn’t dispute the figures on Monday. And records show Bonner County made two claims payments to ICRMP totaling $140,625, each shortly after the two lawsuits had been settled.

Mueller said he did not personally agree with the settlements, although he did sign the agreements for the eight ex-building department employees.

“I voted against it, but that didn’t get me anywhere,” said Mueller, who was overruled by Allen and Commissioner Dale Van Stone.

Mueller did not sign the agreement with Red Riebe, the former road and bridge supervisor, that reportedly awarded Riebe $90,000. That settlement came later, after Mueller realized he didn’t have to sign the agreements just because he was chairman, he said.

Mueller said he could neither confirm nor deny the figures provided by the taxpayers group, because of the secrecy clause.

“I’ll say this much, they got way too much money, and it was taxpayers’ money,” Mueller said. “And as long as taxpayers are going to put these kind of people in here, they’re going to get taken to the cleaners.”

Mueller still contends the building department was an unnecessary expense for citizens and the county.

“A good part of it was the cost, the time delays, and the lack of knowing what they were doing,” Mueller said. “It could cost you hundreds of dollars to get a building permit.”

Although Mueller also contends that it cost the county to maintain the department, other county officials have argued that the department was self-sufficient because of the fees they charged. Critics of the firings said the commissioners’ action ultimately wasted tax money because of the court settlement and increased insurance premiums.

In addition to increasing the premiums, ICRMP put some restrictions on how the county does its business, said Jan Morrison, the county’s risk assessment manager.

“If they were going to represent us, we had to notify them of problems immediately,” Morrison said. “ICRMP doesn’t have the power to stop an elected official from doing something, but they are on a consulting basis.”

After Allen lost re-election, the commissioners formed a citizens group to examine the need for a building department. The committee found it unnecessary, but made some recommendations to fill the gaps left by the departments’ demise.

Although building permits are no longer necessary, the county does require building location permits, which can be purchased at the planning department for a small fee.