Alexander Mayor accused of illegal payments to former employees

City of Alexander Mayor Michelle Hobbs tried to use state law as her reason for paying unused personal and sick leave to two employees who resigned before completing one year with the city. She was questioned by Alderman Andrea Bearden who wanted to know if the mayor was following the city's employee handbook when employees leave before achieving one year of employment.

At the regular June 16 council meeting Hobbs explained that police and firefighters fall under state law when it comes to personal and sick leave. Bearden shot back that she was referring to two city hall employees who left before working one year and were paid for unused personal and sick leave. The mayor claimed they fall under state law as well.

According to Alexander's "Policies for Leave of Absence" section in its personnel handbook it states, "To qualify for these leave of absence benefits the employee must be a part-time, permanent or an elected official and have completed a minimum of one (1) year employment with the City of Alexander." A "permanent" employee is describe as someone who has "been assigned a regular 40 hours per week work shift."

In the personal leave section it says, "Upon termination, resignation or retirement, employees will be paid for all unused annual leave up to a maximum of thirty days including holidays."

The sick leave section doesn't provide a payback for unused leave when leaving city employment. Unlike the annual leave section, under sick leave there's no accrual rate. It states, "Accrual of sick leave will incur simultaneously with annual leave."

Bearden suggested the council rescind the current personnel handbook and replace it with the generic one written by the Arkansas Municipal League (AML).

"That's what we need a lawyer for (to rewrite the personnel handbook)," Hobbs said.

Bearden replied, "I thought that is what they were," referring to the AML staff of attorneys who are consulted by municipalities on Arkansas law.

At the time of the June 16 meeting the council had not selected a replacement for city attorney Carla Miller who submitted her resignation in April effective July 1. She was replaced by Kevin M. Lemley at a special meeting held June 24.

Among many of its free publications the AML provides a sample employee handbook that is based on state law where required and suggestions in areas where there isn't a legal requirement. According to the sample employee handbook there are state laws requiring personal and sick leave for both police and fire department employees. Not so for non-uniformed employees.

Before the section suggesting how to provide vacation time for non-uniformed city employees it states, "NOTE: The following provides a sample vacation policy only. The vacation days discussed are not required by law, and with the exception of uniformed personnel discussed above, Cities are not obligated to provide the number of vacation days discussed below." The sample handbook suggests starting the accrual of vacation time after employment of six months and paying employees for unused vacation time when they leave city employment but none of it is required under state law.

Under the sick leave section in AML's sample personnel handbook it provides a similar warning as stated in the vacation section. It also suggests not paying for unused sick leave by stating, "Non-uniformed employees will not be paid for accrued sick days upon termination of employment with the City."

When the discussion began Bearden also asked why city vehicles are being used for personal use when it's forbidden in the employee handbook. The mayor never responded.

Budget limits explained to Hobbs

During another portion of the meeting Alderman Andrea Bearden questioned Mayor Hobbs about a sign posted at the front door of city hall. The sign requested applications to hire four police officers and one police chief.

Bearden reminded Hobbs the budget only allows for four officers and one police chief. Currently there are four officers and one of them has been serving as interim chief. Former Police Chief Horace Walters resigned in late November, 2013.

Bearden told Hobbs she needs to decide if Officer Jackson is going to be the permanent police chief and advertise for another officer, or advertise for a new police chief. Bearden pointed out that spending more for police personnel than the budget allows would put the mayor in jeopardy of being sued for "malfeasance" and she would file the lawsuit herself if necessary.

Hobbs said she, "Would remove it." The sign now asks for applicants to apply for one officer position and one police chief position.

The next regular meeting of the Alexander City Council will be held on Monday, July 21 at 6 PM in city hall. The public is invited to attend.