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Panel Clears Glendora Mayor, Ends Probe : Government: Mayor Bob Kuhn is not guilty of conflict of interest concerning the city’s insurance matters, the FPPC finds.

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TIMES STAFF WRITER

The state Fair Political Practices Commission has terminated its review of Mayor Bob Kuhn, finding no evidence that Kuhn violated conflict-of-interest laws.

The commission review followed a complaint from a resident who charged in August that Kuhn may have acted illegally “in relation to insurance matters in the city,” FPPC spokeswoman Sandy Michioku said.

She said the commission closed the case May 17, the same day that The Times reported that Kuhn’s Alandale Insurance Agency has brokered $126,528 in city insurance premiums since he joined the council in April, 1986.

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Kuhn has abstained from voting on at least 13 payments to Alandale, in which he holds more than a two-thirds interest. However, city records show he has voted to approve payments to the company at least three other times: on Jan. 13, 1987, on Oct. 25, 1988, and on Nov. 28, 1989.

Michioku would not comment on whether the commission was aware of Kuhn’s votes, or if it knew that the City Council votes to approve such payments.

She said that based on information provided by city Finance Director Larry Schroeder, “(premium) payments paid by the city appear to be handled at the administrative level.

“Based on the information that has been received, the commission has decided to close the case,” Michioku said.

The matter remains under review by the Los Angeles County district attorney.

Deputy Dist. Atty. Thomas Wenke said his office is examining Kuhn’s voting pattern on insurance matters as part of a broad review of the city’s insurance placement procedures.

Kuhn, who said he has not profited from his firm’s city business, has denied any impropriety. He said his votes to approve payments to Alandale were oversights.

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“It’s obviously a relief,” Kuhn said of the commission’s findings.

He said he is confident the district attorney will reach a similar conclusion. “There’s no other way it can go,” he said.

In the wake of inquiries into city insurance practices, the City Council voted last week to begin seeking competitive bids from insurance brokers.

Since 1986, the bulk of the city’s insurance has been acquired through the Independent Cities Risk Management Authority, a 26-city insurance pool.

However, smaller policies have been handled by Alandale and Glendale Insurance Agency Inc., a firm co-owned by Cleve Traughber, a Kuhn business partner who also owns a share of Alandale.

The FPPC found no evidence that Kuhn has any economic interest in Glendale Insurance Agency, Michioku said.

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