LEX 18 Investigates: Blue Grass Airport Hired Firm That Employs Director's Wife

The Blue Grass Airport was the subject of one of the biggest scandals in Lexington's recent history. In 2008, news reporters and state auditors uncovered hundreds of thousands of dollars of questionable spending by top airport executives.

So you would think airport officials would be especially cautious these days when it comes to ethics. However, a recent contract between the airport and a recruiting firm that employs the airport director's wife has raised questions about how closely the airport monitors conflicts of interest.

LEX 18 Investigates discovered that Blue Grass Airport paid $4,550 to the Florida-based ADK Executive Search company to solicit job applications for a vacant, executive-level position at the airport.

Linda Frankl, who is married to Blue Grass Airport Executive Director Eric Frankl, is the vice president of ADK Executive Search.

Eric Frankl sat down with LEX 18 Investigative Reporter Richard Essex to discuss the contract. He said he doesn't think the hiring of ADK Executive Search was a conflict of interest.

He tells LEX 18 Investigates it was a "judgment call" on his part to hire the firm that employs his wife.

"They are a very well recognized firm," he said. "They do great work in our industry."

The firm specializes in the recruitment of managers for airports across the country. It helped solicit 200 applicants for Blue Grass Airport's human resources director position, Frankl said.

The HR director position has been vacant since January 1, and whoever is ultimately hired will be paid $70,000 to $80,000 per year.

ADK Executive Search's Web site says it's important to hire qualified managers with airport experience, but several Lexington-based HR directors told LEX 18 Investigates a good HR manager can work in any industry.

The last HR director hired on the recommendation of ADK Executive Search, in South Bend, Ind., was the former HR manager of a public library system.

The Lexington airport's executive search was not opened for bidding to other recruitment firms, airport spokeswoman Amy Caudill said.

"The airport is not required to bid for professional services below $20,000, but generally does for parts and supplies," she said in a statement.

Caudill also said Linda Frankl did not help with the search, and that the firm's work overall is minimal.

"This firm is only assisting us with the online collection of resumes, some testing and perhaps the required background checks of the final candidates," she said. "The airport management staff will be handling the bulk of the work internally."

The airport's ethics policy lists avoidance of conflicts of interest as one of the guiding principles in its ethics policy, which was revised following a state audit that saw the resignation and criminal conviction of four airport executives over a spending scandal.

Former executive director Michael Gobb, operations director John Coon, planning director John Slone, and administration and finance director John Rhodes were all charged with theft after the audit turned up more than $500,000 in questionable spending on entertainment, drinks, meals, travel, gifts and more.

The updated ethics policy bars both "actual or apparent conflicts of interest" between employees and the airport "and in personal and professional relationships."

Airport board member Chuck Ellinger, who also is a city councilman, said he didn't think the board was aware of the airport's contract with ADK Executive Search. But he said he was not concerned.

"It is something we, as a board, can look at," he said. "I think we all have confidence in Eric and in our next board meeting, I'm certain it will be brought up and we can talk about it."

Frankl said the airport's relationship with ADK predates his wife's employment with them.

"We have used them three times on a small scale, but, again, we used them prior to my wife's affiliation with them," he said.

He also said the airport probably would not use ADK Executive Search again, or any recruiting firm, anytime soon.

"Once we get the right HR person, I don't think we will need to," Frankl said.

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