A conflict of interest for Jerram?

On the campaign trail, Omaha City Councilman Chris Jerram promised to refrain from voting on liquor issues before the council if the proprietor of the business in question was represented by his law firm.

Jerram lived up to his word, abstaining on 14 votes since he took office in June.

But, now, the scenario may have changed.

A new company created by Jerram's longtime law partner, Michael Kelley, has taken over the liquor work formerly done by Kelley & Jerram's law firm.

In October, Jerram voted on a liquor application represented by the new company, Kelley Governmental Relations.

Jerram said he did nothing wrong because he has no ties to the new company, even though it shares the same address as the Kelley & Jerram law firm.

Alcohol watchdog groups in Omaha disagree. And, a complaint has been filed by neighborhood activist Jan Quinley with the Nebraska Accountability and Disclosure Commission, questioning whether Jerram is violating the state's conflict-of-interest laws.

“The question is, do I have a business association or a familial association with Michael Kelley's company? The answer is ‘no,' ” said Jerram, who continues to work with Kelley in their law firm.

Others argue that Jerram has — at the very least — a perception problem.

“You want to be as clean as you can be, and any potential conflict of interest should be of concern to anyone who wants clean government,” said Diane Riibe, executive director of Project Extra Mile, a group that battles underage drinking.

Until the issue has been settled, Jerram said he will abstain from all votes in which his law partner, Kelley, is involved.

The question of Jerram's connection to liquor issues first arose on the campaign trail. Political opponents questioned how he would handle liquor license applications, when the owners of the businesses were represented by his law partner.

State law prohibits an elected official from casting a vote on a matter if the official or a family member could receive a financial benefit.

Jerram and Kelley have worked together since 1992. The two own a small law firm, which employs one other attorney, Kelley's son, Sean.

Kelley has represented a number of bar owners, restaurateurs and convenience store owners who wish to acquire or renew a liquor license. He is often seen at Omaha City Council meetings or at the Nebraska Liquor Control Commission.

In addition, Kelley and Jerram's law firm is registered as a lobbyist for Responsible Beverage Operators of Nebraska, which represents liquor license owners.

Jerram has represented liquor interests in the past, but he said Kelley handles most of the liquor license work.

On May 12, Jerram won a seat on the Omaha City Council. A week later, Kelley filed the paperwork to create a new company with his son.

Jerram says he believes Kelley started the company because he “didn't want to be a problem for me.”

Kelley did not return a telephone call Friday.

Jerram says the new company may share office space in his law firm, but he says he has no ties to it financially or otherwise. In fact, Jerram said he believes he will lose money because business once handled by the law firm will now be handled by the new company.

He also said he was given a written opinion by Omaha City Attorney Paul Kratz, who came to the conclusion that Jerram does not have a conflict of interest as long as he has no connections to Kelley Governmental Relations.

“From what's been represented to me, I don't believe he has a conflict of interest,” said Kratz.

Jerram recently was notified that a complaint was filed with the Accountability and Disclosure Commission.

He said he believes it will be several months before a decision is reached.

Frank Daley, executive director of the commission, said he cannot comment on any complaint filed with the commission. Quinley, who filed the complaint, also declined comment.

Margie Magnuson, a spokesperson for the Alcohol Impact Coalition, said she doesn't believe the new company is a big enough step to remove Jerram's conflict of interest with any liquor license application involving his law partner.

“The lines are pretty darn close. That's one little baby step he's taken to distance himself. I don't think it's enough” said Magnuson, whose coalition is a collection of neighborhood leaders concerned with liquor issues.

Contact the writer:

444-1309, robynn.tysver@owh.com