By Anne Scheck
Trammart News Service
Independence City Councilor Kate Schwarzler is under investigation for possibly violating Oregon ethics law by selling gift baskets purchased by the city from Indy Commons – and for allegedly failing to publicly disclose the transaction as a conflict of interest.
Schwarzler is the founder-owner of Indy Commons, a co-working space and marketplace in downtown Independence.
In a unanimous vote last week, eight members of the Oregon Government Ethics Commission approved moving forward with an investigation, while noting that some facts need to be “ironed out” before a final determination is made.
Schwarzler is likely to be the next mayor of Independence. There is no opposing candidate for the office on the November ballot, according to local election officials. Longtime Independence Mayor John McArdle isn’t running for re-election.
The action by OGEC comes after a resident, Mike Rhodes, filed a complaint with the commission, following a series of public records requests he made to learn about the allocations and contracts awarded by the city to Schwarzler’s businesses – records that were obtained the same way by Trammart News, which show more than $100,000 went from the city to Schwarzler's businesses over past years. (Rhodes’ figures were higher.) Schwarzler has posted copies of various contracts with the city on her personal website.
Trammart News had sought the records after some in town questioned the city’s reliance on Schwarzler’s paid business assistance for certain tasks, citing that there is a downtown manager on the city staff.
As a relative newcomer to Independence, Rhodes began attending city council meetings to familiarize himself with the local government of his new hometown. Interest in the connection between Schwarzler and the city prompted his research, he said.
Speaking on her own behalf at the OGEC hearing, Schwarzler explained how the gift bags were bought by the city this past spring.
“I was approached by the city of Independence to source items for gift bags that they were putting together for attendees that came up to do a tour,” she said. Though various products were discussed, “at the end I was directed by (Community Development Director) Shawn Irvine that he did want to proceed with purchasing items through Indy Commons.”
She added that, of the $280 Indy Commons received, most went to the vendors there – 10% was retained for processing fees. Under Oregon ethics law, any elected public official faced with a matter involving a conflict of interest must publicly disclose that and refrain from participating in the decision. Under these statutes, Schwarzler, as a city councilor, would be prohibited from playing a role in deciding on the use of tax dollars that could benefit her business, no matter how small the monetary amount (ORS 244.040[1] and ORS 244.120[2])
“I’m glad the Ethics Commission agreed that the relationship between the City and Schwarzler is concerning enough that they are willing to dig deeper into what’s going on,” Rhodes said.
Asked for her response, Schwarzler stated: "I am comfortable with the OGEC process and reasoning and look forward to working with them to finish the investigation.” Until that time, she will make “no further comment,” she said.
Several residents appeared to be surprised at OGEC’s decision to pursue an investigation; A few said that they expected the process to be infused by politics, ending in dismissal. That could still happen, observed resident Gary Evans.
A few days before Schwarzler’s case was heard, Mayor McArdle announced Schwarzler had been selected for the Western Oregon University Board of Trustees by Gov. Tina Kotek. The appointment was the result of Schwarzler’s direct application to the governor’s office for the WOU board seat, according to a spokesperson for the university.
Schwarzler’s role with the city had been the subject of questions prior to Rhodes' initiation of the OGEC filing. From a college professor to an out-of-town politician, Trammart News has been queried about it.
One reason may stem from the city’s promotion of Schwarzler’s non-profit, Indy Idea Hub, as a partner of the city. It has been favorably portrayed on the city’s social media. “Her passion, hard work and dedication to Independence’s local economy are unparalleled,” according to the city website.
The issue of her role arose again when the past budget committee sent the budget document back to city staff after Schwarzler recommended placing “trust” in the city to finish it – arguably against the spirit of an Oregon Revised Statue (294.42B) which covers municipal budget committee procedures.
“She seemed to be running things at the city,” said Ernest Moreno, who has been following city council actions.
There appears to be a lack of – or lack of public access to – a clear city policy on hiring “sole providers” in purchasing agreements. In contrast, Lake Oswego has that city’s sole-provider policy posted on the website.
“There’s been a history here of non-transparency,” said resident Al Cleveland.
A city guide covering sole-source purchasing could easily be based on the Oregon Administrative Rule (OAR 125-247-0275), which spells out the required procedures, affirmed a former chief administrator in another Oregon city.
For local governments seeking good results in partnering with non-profit services, such as Indy Idea Hub, return on investment is a desirable goal, in terms of tangible outcome for spending city dollars, according to several research publications. The Journal of Public and Nonprofit Affairs recommends that expectations should be defined as clearly as possible.
The OGEC investigation isn’t expected to conclude quickly, but resident Barrett Nutsch said he isn’t very interested in the outcome, anyway.
Weighing in on any issue is unlikely to have an impact, he said. “It means spending a few minutes at the podium” during a city council meeting without accomplishing anything. “It is basically like banging your head against a wall,” he said. ▪
(This article was updated a day following the first posting with an explanation of the Oregon Revised Statutes that apply; Also, the author, Anne Scheck, would like to disclose that Trammart News was a tenant of Indy Commons several years ago, having rented working space there.)
By Anne Scheck
Trammart News Service
When a new resident of Polk County paid a visit to the Polk County Board of Commissioners last week asking for a new dog shelter, she got a surprising answer.
It was an immediate yes.
Commission Chair Craig Pope told her the county was working on a strategy to get one built.
Genny Bond, who had moved to the Dallas area from Portland with her Labrador Buddy, said she immediately noticed “a near crisis situation” for lost or stray canines. As a volunteer for The Humane Society of the United States, Bond said she became keenly aware of the growing need for animal housing.
In fact, the Humane Society of Salem had terminated its contract with the county in late June, according to County Administrator Greg Hansen. That meant it would no longer accept overflow of four-legged occupants of the county. “We were given notice three or four months prior by them they intended not to renew,” Hansen explained.
The new structure – which is in an early planning stage – will house dogs only. Cats will be excluded.
The facility will be paid for with county funds, Hansen said.
The county’s necessity for dog housing follows a national trend. “Animal shelters around the U.S. are bursting at the seams amid the rising cost of living,” according to U.S. News & World Report in late 2023, which attributed most of the reason for the surge to increasing prices for pet care, from higher pet food expenses to bigger veterinary bills. ▪
By Anne Scheck
Trammart News Service
This November, Independence will place on the ballot a proposed levy to support the Heritage Museum, along with the parks and library. In a series that takes a virtual trip down Route 66, Trammart News will stop at small towns along America’s famed historic highway to discover how other towns are tackling problems facing Independence.
The series is dedicated to a former seven-year-old named Dana, who begged her friend more than six decades ago to promise a trip along Route 66 when they both added a zero their ages then. A little while ago, that friend contacted Dana, to remind her it was nearing time to act on the pledge, as they both would soon turn 70.
Dana had forgotten all about it, even the argument they’d had about which of them would be more eager for adventure. But the friend is taking the trip, anyway – as Trammart News – exploring the lessons of cities along Route 66. This is dedicated to Dana, who told me long ago, on a day of sweltering Kansas heat, that we were sure to go other places one day …
The Baxter Springs Heritage Center & Museum
The museum is renowned as a local treasure, greeting guests from all over the world. Before the Baxter Springs Heritage Center & Museum became an attraction in town, it was an empty lot and the site of a big dream – for a museum that would encompass the town's rich past.
The town has about 4,000 people, and it is similar to Independence in three substantial ways: a highway runs through downtown, the city was settled by Midwestern pioneers and there is no cost for entrance to the museum. Answers to Trammart News questions are below.
What comprises the town’s rich past?
Baxter Springs is a place of historical importance due to several factors and events: The diversity and influence of Native American populations and the area’s role in the Civil War – troops that traveled through would later create the town of Baxter Springs. It was the location of an infamous massacre by Quantrill's Raiders, a band of Confederate guerillas.
But to those in other parts of the country, the small city may be best known for the famous Highway that runs through its main street, Military Avenue, Route 66. The iconic sign bearing six in double-digits seems to be everywhere, including at prominent spots in and around the museum, of course.
The museum also houses exhibits ranging from a depiction of a century-old farmhouse to a full-sized replica of a lead and zinc mine, among many other displays.
When is it open? What does it cost?
It is free and open six days a week, Tuesday through Saturday, 10 am to 4:30 pm with shortened hours on Sunday, 1 to 4 pm.
What is the museum building like?
It is in a 20,000-square foot structure comprised of a series of commercial grade metal buildings built from 1975 to 2008 – and constructed entirely through volunteer efforts, including remarkable fund-raising, orchestrated by the Baxter Springs Historical Society.
How did the museum come into existence?
The project involved the entire town – alumni who had left but never lost their love of it, long-time residents and history-loving retirees, corporations near or in the town. Many of the materials for the original building were donated and volunteers played a large part in constructing it, noted Mary Billington, the museum director.
By special agreement, the Baxter Springs Historical Society bestowed the building to the city, once it was completed.
How is the museum staffed?
The staff is Billington, a natural history buff and her family's genealogist. She relates facts and figures about the area almost as soon as questions are asked. She serves as receptionist, welcoming host, tour guide and administrator. She has been on the job for eight years and
"I love it," she said.
How is the museum maintained?
The city maintains the building and grounds as well as paying Billington's salary and the utility bills, along with part-time maintenance and custodial help. A portion of the funds – generated by a local mill levy – is allocated to the museum’s annual budget; The budget is managed by a museum board with members that are appointed by the city council. ▪