City of Alexander agenda deceptively slim

With no mention of lawsuits, ordinances or a budget on the City of Alexander's agenda for Monday night's meeting it would appear to be the makings of a quick and dull meeting. But, residents may want to attend this one anyway.

The agenda does include City Attorney Carla Miller. It is assumed she will be providing an update on the city's repossessed fire truck.

The latest in that saga is the fire truck has allegedly been sold for about $75,000 by the owner of the lease-purchase agreement, Paul Anthony Graver. It was sold on November 14 after he was ordered three times by two judges to return the truck to the city.

The dispute is over a 1999 Freightliner fire truck. The truck was repossessed in October while sitting in a restaurant parking lot. It was then taken to a lot in Memphis, Tennessee.

The City of Alexander entered into a lease-purchase agreement with First Government Lease Company and its owner Paul Anthony Graver in May, 2008. Graver lives in Chicago and his business is located in Northfield, Illinois.

The amount of the lease-purchase was $50,000 for the truck and an additional $24,325 in interest. The agreement is for seven years at $884 per month.

Apparently, Graver bundled that loan with two other loans he had with the city and sold them to First State Bank in Oklahoma. Alexander Mayor Michelle Hobbs stopped making the monthly payments in March of this year claiming the lease-purchase agreement for the fire truck was illegal under the Arkansas Constitution, which restricts how cities can take on interest-paying debt.

Graver bought back the lease-purchase agreement for the fire truck from First State Bank October 10, then filed a lawsuit that same day in Illinois court. The fire truck was then repossessed October 11.

Also on the agenda is a report from the finance committee. Council members have been holding special meetings to hammer out the 2014 budget.

The next city council meeting is Monday, December 16, at 6PM in city hall.

Statue vs Statute

COMMENTARY
As I prepare what will be a brief article on Monday night's upcoming City of Alexander council meeting, I would like to comment about a word that gets misused in both city minutes and comments on this blog. The word is "statue."

For those of you who may be unaware a statue, according to dictionary.com, is "a three-dimensional work of art ... carved in stone or wood, molded in a plastic, cast in bronze, or the like." For instance, The Statue of Liberty is a statue; hence its name.

Unless the city council is discussing erecting a statue to one of its greatest mayors, or this blog is discussing the proposal, why do the writers of city minutes and some of our bloggers insist on using the word "statue" when they mean "statute?"

Returning to dictionary.com, a statute is, "an enactment made by a legislature and expressed in a formal document." In other words, a law.

A statue is something you look at. A statute is something you look to for guidance to ensure your actions are legal.

I'm not going to blame the entire Arkansas education system for this confusion of the two words. After all, not everyone living in Arkansas was born and educated here. I also can't blame it on an occasional typing error since it's so consistent in its usage.

What I will say is this. When it comes to the city minutes they must be accurate, complete and grammatically correct. Accurate and complete if the minutes are ever needed to be used in court. And, grammatically correct so Alexander doesn't represent itself as the backwards little city full of country bumpkins people see us as.

Alexander fire truck reported sold

The Arkansas Democrat-Gazette is reporting the City of Alexander's repossessed fire truck has been sold for about $75,000. It was sold on November 14 by financier Paul Anthony Graver after being ordered three times by two judges to return the truck to the city.

Graver's Attorney, Matt Campbell, told the Democrat-Gazette Monday the fire engine was sold and Alexander is entitled to the proceeds, minus the city’s remaining debt on the truck, Graver’s legal fees and the costs for repossessing the truck. He added the remaining proceeds from the sale will be sent to the City as soon as all litigations concerning the truck are withdrawn.

Campbell claimed the sale was legal under the Uniform Commercial Code and Alexander's city attorney Carla Miller was notified more than 30 days prior to the sale.

Miller told the Democrat-Gazette neither she nor any other city official had received notice that Graver planned to sell the truck. She said the city only learned about the sale Monday.

Pulaski County Circuit Court Judge Tim Fox twice ordered the truck be returned. The first was in an order issued October 25 and the second came on November 4 after a hearing. The hearing was the result of a lawsuit filed by the city claiming Graver had no legal authority to repossess the truck.

Graver then tried to move the case to a Federal Court but that judge also ordered the truck returned until the issue of ownership is resolved.

The dispute is over a 1999 Freightliner fire truck. The truck was repossessed while sitting in a restaurant parking lot. It was then taken to a lot in Memphis, Tennessee.

The City of Alexander entered into a lease-purchase agreement, to purchase the truck, with First Government Lease Company and its owner Paul Anthony Graver in May, 2008. Graver lives in Chicago and his business is located in Northfield, Illinois.

The amount of the lease-purchase was $50,000 for the truck and an additional $24,325 in interest. The agreement is for seven years at $884 per month.

In May, 2008 the city also entered into another lease-purchase agreement with First Government to buy two police cars. The cost of the two vehicles was $44,700 with an annual interest rate of 6.25% to be repaid by a monthly payment of $977 for 60 months (5 years).

These aren't the first lease-purchase agreements between Alexander and First Government Lease Company. Prior to the 2008 agreements, in August, 2007, the city combined six lease-purchase agreements consisting of police and fire vehicles, equipment, "and an addition to the fire station" on South Alexander Road. The "addition" was actually the purchase of property next to the fire station.

Apparently, Graver bundled the three loans and sold them to First State Bank in Oklahoma. Alexander Mayor Michelle Hobbs stopped making the monthly payments in March of this year claiming the lease-purchase agreement was illegal under the Arkansas Constitution, which restricts how cities can take on interest-paying debt.

First State Bank filed a lawsuit suing Alexander and First Government Leasing, claiming the bank was defrauded into thinking it would acquire a mortgage and lease-purchase agreement for improvements to an Alexander fire station that it says were never started.

Graver bought back the lease-purchase agreement for the fire truck from First State Bank October 10, then filed a lawsuit that same day in Illinois court. The fire truck was then repossessed October 11.

He wasn't a surveyor

So I'm driving from I-30 on Hwy 111 heading to the Alexander Post Office earlier this afternoon. In the city hall driveway, farthest from the rail road tracks, I see what appears to be a surveyor pointing his tripod-mounted equipment towards the new Dollar General store, which now has front doors by the way. I thought it odd, however, for a surveyor to be dressed in a suit and tie.

I pull into the post office driveway and drop my mail into the drop box. I then looped back around so I can leave using the driveway farthest from the tracks. The "surveyor" has picked up his tripod and I can see the surveying equipment is a camera and he is holding a microphone. After turning left towards the tracks I look back and I see a car from Channel 11 in the city hall parking lot.

I have my doubts he was here just to admire Alexander's new Dollar General store. I guess we need to watch Channel 11 tonight. Maybe we will find out more about what's happening with the police and fire department than Channel 7 did.

Alexander firefighter charged with harassment

As reported by KATV Channel 7, Firefighter Greg Maynard was booked and then released on bond Monday (Nov. 18) evening on charges he harassed another Alexander firefighter, but details of the alleged event are unknown – even by Alexander Police Chief Horace Walters.

For more on this story go to http://www.katv.com/story/24005483/firefighter-harassment-case-a-possible-cover-up.

City of Alexander "dismissed" from lawsuit, Police Chief Walters lone defendant

                The City of Alexander is no longer a party in a civil rights lawsuit filed by former Assistant Police Chief Brad L. Williams. Current Police Chief Horace Walters, however, is now the lone defendant.

                According to information provided by the legal website Justia.com, Federal Judge Kristine G. Baker signed an order November 8, 2013 granting that "claims against the City of Alexander are dismissed."

Police Chief Horace Walters

                The order further states, "claims of malicious prosecution, defamation, outrage, and abuse of process against Chief Walters will proceed to trial."

                Williams has requested a jury trial.

                The lawsuit stems from incidents involving a paycheck, two sets of police car lights and a contentious relationship between Walters, Williams and former Mayor Paul Mitchell.

                In 2011 Williams was leaving the Alexander police force for a job with the Federal government. According to court documents Walters claims Williams purposely attempted to steal an extra paycheck and stole a set of blue police car lights from a locked storage area.

                Williams submitted his resignation on September 27, 2011 to take the Federal job. Walters charged Williams with "theft of city property" in December.

                Mayor Paul Mitchell had the prosecuting attorney drop the case because he knew it was part of a personal vendetta being perpetrated by Chief Walters. But, because of the accusation Williams is no longer employed by the Federal government.

                Walters was hired in June, 2010 by then Mayor Shirley Johnson. The hiring came after the City lost a discrimination lawsuit involving the police department and several Hispanics. Then Police Chief Alan Spears resigned and Walters was hired to fill the vacancy.

                Williams is being represented by attorney Reggie Koch. Koch is the same attorney who represented the male Hispanics in the discrimination lawsuit.

TWO PAYCHECKS

                On September 3, 2010 Williams received his regular paycheck and then lost it. Mayor Johnson approved issuing him a new check, which he cashed on September 8, 2010. About one year later the original check was found in a friend's car.

                According to court documents Williams did not realize the found check was the one lost a year earlier. He cashed it on August 9, 2011. After office assistant Stacey Cyz discovered what had happened the city council decided to not press charges and allow Williams to repay the city for cashing the extra check, which he did.

                In the court documents Chief Walters claims cashing both checks was always Williams' intention. The only reason he repaid the city was, "because he was caught."

                Paul Mitchell defeated Johnson in the November, 2010 election and was sworn-in January 1, 2011. Mitchell fired Chief Walters on July 10, 2011. In a seven to one vote the city council vetoed the mayor and reinstated Walters. According to court documents Williams supported Mitchell's actions, putting him at political odds with Chief Walters.

TWO SETS OF BLUE LIGHTS

                In the early summer of 2011 Williams borrowed a pair of blue lights from Tim Dudderar of the Saline County Sheriff's Department for a special assignment. Williams claims he discussed the plan with Chief Walters and received his approval.

                After that Walters claims he told City of Alexander Police Officer Jeff Watson, "to locate a set of blue lights and install them into," the department's Dodge Durango. Officer Watson took the blue lights from Williams, who told him they belonged to Dudderar, and installed them on the Durango, court documents indicate.

                Williams wrote Dudderar’s name on a piece of tape and put it on the lights. He then told Dudderar where he could retrieve the lights, which Dudderar eventually did. Williams contends Dudderar’s blue lights were the only blue lights ever in his possession, court documents state.

                In his deposition Chief Walters claims Williams was involved in the disappearance of a second set of blue lights that were a gift to Alexander from the City of Benton. In court documents Chief Walters describes these blue lights as round and without serial numbers. However, according to court documents the transfer papers provided by the City of Benton that accompanied the lights did include serial numbers.

                Walters claims a memo, allegedly written by Officer Watson, states Williams told him the two lights, "were at his residence on his personal vehicle."

                Watson denies writing the memo and claims not to remember the incident happening the way it's stated in the memo, though he admits he may have signed it. Watson also denies ever using round lights in police units.

                Chief Walters also claims he suspected Williams taking the lights because officers allegedly reported seeing Williams in the secured area where the blue lights were kept.

                Court documents include a comment made by Williams during Chief Walters' deposition. Since Walters has one of two keys to the "secured area" Walters was pressed on how Officer Watson purportedly entered the secured area to discover the blue lights were missing. Chief Walters admitted Cyz also had a key and would open the area for any officer who asked. Walters however, didn't interview Cyz to determine which officers had entered the area before the blue lights allegedly disappeared because he “did not see where she would have use for blue lights.”

ARREST WARRANT

                On September 27, 2011, Williams resigned to begin his new federal job. According to court documents Williams contends, though unknown to him at the time, Chief Walters had drafted a termination letter for him dated the day before, September 26, 2011.

                Nearly three months later, on December 20, 2011, Chief Walters swore out an affidavit charging Williams with "Theft of Property" in regards to the cashing of the extra paycheck. That's four months after the city council decided to not press charges and allow Williams to pay back the value of the extra paycheck. In the same warrant Chief Walters charged Williams with "Theft of Property" in regards to the police lights, which Walters claims were the lights donated by the City of Benton. 

                This is the same warrant Mitchell had the prosecuting attorney drop saying he knew it was part of a personal vendetta being perpetrated by Chief Walters against Williams.

Judge says return Alexander fire truck

A Pulaski County Circuit Court judge has ruled the City of Alexander should have its repossessed fire truck returned as soon as possible. The ruling was made Monday, November 4 by Circuit Judge Tim Fox.

The decision was in response to a "Cross Complaint and Petition" filed by the City against First Government Lease Company and its owner Paul Anthony Graver. Graver lives in Chicago and his business is located in Northfield, Illinois.

The dispute is over a 1999 Freightliner fire truck. The truck was repossessed while sitting in a restaurant parking lot. It was then taken to a lot in Memphis, Tennessee.

According to documents included in its petition to the court The City of Alexander entered into a lease-purchase agreement with First Government in May, 2008. The amount of the lease-purchase was $50,000 for the truck and an additional $24,325 in interest. The agreement is for seven years at $884 per month.

According to a report by Arkansas Division of Legislative Audit for the City's budget year of 2008, in May the City also entered into another lease-purchase agreement with First Government Lease to buy two police cars. The cost of two vehicles is "$44,700 with an annual interest rate of 6.25% to be repaid by a monthly payment of $977 for 60 months (5 years)."

But, that's not the numbers provided by First Government Lease Company to Legislative Audit. According to the amortization schedule the loan amount is $48,528, $3,828 more than the original $44,700. The interest rate on the schedule was also increased from the original 6.25% to 8%.

The same thing was done to the fire truck agreement. According to the amortization schedule provided to Legislative Audit it shows a loan amount of $52,859 instead of the agreed to $50,000. Instead of a set dollar amount of interest there is an interest rate of 9.5%.

These aren't the first lease-purchase agreements between Alexander and First Government Lease Company. According to Legislative Audit's report for the City's budget year of 2007, in August the City combined six lease-purchase agreements consisting of police and fire vehicles, equipment, "and an addition to the fire station" on South Alexander Road. The "addition" was actually the purchase of property next to the fire station.

The original terms of the agreement were a loan of "$350,000 with an annual interest rate of 9.9% to be repaid by a monthly payment of $4,971 for 168 months (14 years)" the report states.

But, according to the amortization schedule the loan was for $435,975, $85,975 more than the original $350,000, with an interest rate of 9% instead of 9.9%. The payment period was also reduced to 12 years instead of 14.

Apparently, Graver (First Government Lease Company) bundled the three loans and sold them to First State Bank in Oklahoma. Mayor Michelle Hobbs stopped making the monthly payments in March of this year claiming the lease-purchase agreement was illegal under the Arkansas Constitution, which restricts how cities can take on interest-paying debt.

First State Bank filed a lawsuit suing Alexander and First Government Leasing, claiming the bank was defrauded into thinking it would acquire a mortgage and lease-purchase agreement for improvements to an Alexander fire station that it says were never started.

Graver's attorney, Matt Campbell, told Judge Fox because Alexander is disputing the legality of the lease-purchase agreement that gives Graver grounds to repossess the fire truck. He also said Alexander was notified the truck would be repossessed and why.

Alexander City Attorney Carla Miller told the judge the City had not been notified of the pending repossession. She added there's no lien on the vehicle and Alexander is ahead of schedule on payments as far as October, 2014.

According to court documents Graver bought back the lease-purchase agreement from First State Bank October 10, then filed a lawsuit that same day in Illinois court. The fire truck was then repossessed October 11.

When fire fighters discovered the truck missing from the restaurant parking lot the State Police were called. According to the incident report provided in the City's court documents State Police were called at 12:59 PM. Assistant Fire Chief William Blankenship was already following the fire truck on I-440 east of I-30 heading for Tennessee.

Two officers in separate vehicles eventually caught up to the fire truck on eastbound I-40. The driver of the follow-up vehicle showed officers repossession papers which included a letter from First State Bank in Oklahoma authorizing the repossession, the police report states.

The two men allowed Blankenship to remove equipment and firefighter's other personal belongings that aren't directly connected with operating the fire truck.

Even though the repossession papers indicated Graver had permission from First State Bank to repossess the fire truck, an affidavit introduced during the hearing by Miller tells a different story. In the affidavit First State Bank President Michael George states, "First State Bank did not authorize Paul Anthony Graver, First Government Lease Co., ... to take any action against or with the City of Alexander, including, but not limited to, attempting to collect any money, taking possession of any vehicle, personal property, or real property, or negotiating any settlement in connection with the indebtedness that is the subject of this suit or otherwise."

* Sources for this article include an article appearing in the Arkansas Democrat-Gazette (by John Lynch, November 5, 2013), audit reports for the years 2007 & 2008 written by the Arkansas Division of Legislative Audit and court documents filed by the City of Alexander.

Bearden appointed to fill Alexander council vacancy; Attendance ordinance fails

In a four to three vote the Alexander city council appointed Andrea Bearden to fill the vacant seat in Ward-3. The vacancy was filled at the regular meeting held Monday, October 21.

The four aldermen voting for Bearden were aldermen Farren Wadley, Brad Scott, Juanita Wilson, and Samuel Gregory. Aldermen voting against were Ceola Bailey, Faye McKeon and  Lonny Chapman.

The Ward-3 seat became available when Alderman Dan Church resigned July 18. Church was elected in 2012 defeating incumbent Harvey Howard.

Bearden was sworn-in by Saline County Justice of the Peace J.R. Walters.

Bearden was the only individual to submit a resume for the open seat. The council decided at the September meeting to table the appointment for one month in hopes of getting more applications.

Under normal circumstances a four to three vote, with one absence, would count as a tied four to four vote. But, state law allows for counting only those positions that are not vacant to determine a majority vote.

Mayor Hobbs attempted to cast the deciding vote but had to be reminded of the law covering this situation. When a mayor does have to break a tie vote state law requires mayors who wish to vote to vote "yes."

No veto this time

Mayor Michelle Hobbs won't be vetoing this appointment. After Hobbs vetoed an appointment approved by the city council earlier this year, to fill a council vacancy, the state legislature made that type of a veto illegal.

State Senator Jeremy Hutchinson sponsored Senate Bill 1047, which amends Arkansas Code 14-44-104 adding a no veto clause. The law requires the city council of a city of the second class appoint someone to fill any vacancy on the city council.

The new addition to the law then states, "The election to fill the vacancy under subsection (a) of this section is not subject to veto by the mayor."

The "no veto" clause went into effect in August.

Attendance ordinance fails

In another vote, the council failed to pass the much-discussed ordinance that would fine elected officials for missing too many "regular" and "special" meetings. The ordinance failed seven to one with Bailey as the lone "Yes" vote.

Proposed changes to the ordinance, made at the regular September meeting, forced the vote on it to be tabled until the October meeting. Alderman McKeon suggested an absence would be excused providing the person notifies someone at city hall before closing time on the day of the meeting. No action by the council would be required approving the absence and no reason for the absence need be given, as provided in the original version. The ordinance also included fines after missing three or more unexcused absences "during any calendar year."

Alderman McKeon seem to have a change of heart on the matter since the September meeting. During the discussion prior to voting on the ordinance McKeon asked if there would be a future ordinance requiring alderman to "do their job."

The question of forcing aldermen to attend meetings came about after four aldermen stopped attending council meetings starting in February. The move came about, in-part, when during the regular January council meeting newly appointed Mayor Michelle Hobbs announced she would "veto" any action passed that was proposed by aldermen Juanita Wilson, Dan Church, Jack Shoemaker and Lonny Chapman.

With a vacant seat on the council the four "missed" some meetings to keep the council from having a quorum in an attempt to stop Hobbs from ramming through her choice to fill the vacancy. Since then Shoemaker has moved out of Alexander and Church has resigned from the council.

Dollar General store construction underway

Construction of the new Dollar General store in Alexander is well underway.
The store is being built along Arkansas 111 next to the post office.

Alexander meeting agenda slim, nothing new

The agenda for Monday night's Alexander City Council meeting is similar to last month's agenda. The only two major items on the agenda are the filling of the vacancies for Ward-3 alderman and treasurer. The meeting is Monday, October 21, 6pm at City Hall.

Another aspect which has not changed is the number of candidates to choose from for the two positions. No one has submitted a resume for treasurer and Andrea Bearden is still the only Ward-3 resident applying to fill the vacant seat.

The seat became available when Alderman Dan Church resigned July 18. Church was elected in 2012 defeating incumbent Harvey Howard.

According to her resume she is a Maintenance Technician for the Arkansas Department of Military at North Little Rock.

In her resume she states she has, "Management experience and exceptional people skills." She also says she, "Desires a challenging role as an Alexander City Council Member".

The City Council is already in violation of state law, which requires both vacancies be filled at the next regular meeting. The council decided at the September meeting to table the appointment to fill the vacant Ward-3 seat in hopes of getting more applications. The treasurer position has been vacant since March 18 when treasurer JoAn Churchill resigned. No applications have been received for that position.

Fire truck repossession not on agenda

While reports from Mayor Michelle Hobbs and City Attorney Carla Miller are on the agenda, what is blatantly absent is a discussion about the recently repossessed fire truck. The City of Alexander Fire Department's main truck was repossessed Wednesday, October 16.

It was collateral for a lease-purchase agreement the city entered into in 2007, combining several loans into one with a lower interest rate. The lease-purchase agreement was with First Government Leasing Co., owned by Paul Anthony Graver of Chicago.

Since then the lease-purchase agreement was sold by Graver to First State Bank in Oklahoma, which increased the interest rate to the city. Mayor Hobbs stopped making the monthly payments in March of this year claiming because the interest rate now exceeded the maximum allowed by the Arkansas Constitution the lease-purchase agreement was void.

First State Bank filed a lawsuit suing Alexander and First Government Leasing, claiming the bank was defrauded into thinking it would acquire a mortgage and lease-purchase agreement for improvements to an Alexander fire station that it says were never started.

It's been reported Graver has bought back the lease-purchase agreement from First State Bank to end the lawsuit. The fire truck was then repossessed by Graver.

Alexander facing suit from Oklahoma bank

According to the Arkansas Democrat-Gazette the City of Alexander is being sued by an Oklahoma bank after the bank bought a loan from two Illinois leasing agents. 

In the October 8 article the lawsuit claims the First State Bank in Oklahoma, "was defrauded into thinking it would acquire a mortgage and lease-purchase agreement for improvements to an Alexander fire station that it says were never started."

Gill Ragon Owen, a Little Rock attorney, filed the lawsuit for the bank in Pulaski County Circuit Court last week.

The allegations stem from a 2007 lease-purchase agreement between Alexander and First Government Leasing Co., owned by Paul Anthony Graver of Chicago. In 2007 city officials wanted to combine several loans into a single loan to have one payment and a lower interest rate, saving the city money.

According to the Democrat-Gazette article the agreement between First Government Leasing Co. and First State Bank in Oklahoma, "stated that proceeds from refinancing a loan for the Fire and Police departments would be used to improve a fire station." However, "according to the bank’s complaint, the money was used to pay off debts on police vehicles and purchase a firetruck."

The Democrat-Gazette article goes on to quote court documents which claim, "the city took out a mortgage on the fire-station loan in First Government’s name. In May 2012, Lance Dominique of Chicago sent an offer letter to First State Bank to sell the lease-purchase agreement to the bank. The bank paid Graver $393,910.55 for the agreement."

The article continues;
Graver executed an assignment document giving the bank undivided interest in and to the lease-purchase agreement, but according to the bank’s complaint, neither the mortgage nor the purchase agreement were assigned to the bank as agreed upon.

The bank also found out that in 1992, Graver admitted to facilitating the purchase or sale of securities by means of “manipulative, deceptive, and other fraudulent devices” and that he consented to be barred from association with any broker, dealer or municipal securities dealer thereafter, according to the lawsuit.
Alexander still owes 100 payments of $4,970.83 each on the loan, but it quit paying First State Bank in March and has refused to pay since then because the city maintains that the lease-purchase agreement violates the Arkansas Constitution and is therefore void, according to the complaint.

The state's audit of Alexander's 2007 budget year shows the city entered into a 14-year loan in violation of the five year maximum. At the time the city entered into the loan agreement the state's Constitution had recently been changed to allow governmental bodies to take on debt but with a five-year maximum on all loans. Later, city officials learned the interest rate had been increased to above the state's legal maximum.

The Democrat-Gazette article continues;
“Graver has a pattern and practice of defrauding Arkansas cities and counties by enticing them to issue invalid lease purchase agreements,” according to the bank’s lawsuit.

“Graver intentionally structured the lease purchase agreement in a way that violates Arkansas law, and Graver and Dominique intentionally offered to sell and sold the lease purchase agreement to First State Bank as a duly authorized, valid and binding obligation of Alexander … when in fact Graver and Dominique knew the lease purchase agreement in no way complied with Arkansas law … contained numerous misrepresentations and omitted information necessary to make the representations that were made not misleading.”

According to a document accompanying the complaint, Graver and Dominique offered to sell First State Bank a number of other lease-purchase agreements from all over the country, including three in Arkansas in Caney township, Reed, and Saline County.

Article 16 of the Arkansas Constitution bars cities from lending credit for any purpose and issuing any interest-bearing evidences of indebtedness. Three amendments allow cities to incur debt, but Alexander’s lease agreement didn’t comply with any of them. First State Bank maintains that Graver and Dominique failed to disclose that when selling the agreement.

“If they had, First State Bank would never have acquired the lease purchase agreement,” according to the lawsuit. “The failure to disclose that the obligation was not valid makes the representation that the interest would be tax exempt misleading.”

The offer also didn’t disclose that the agreement included a nonappropriation clause that allowed Alexander to terminate the obligation in any year it failed to appropriate enough money to make payments, according to the complaint. First State Bank offered to sell the lease-purchase agreement back to Graver and Dominique for the amount it originally paid, minus payments it received from Alexander and plus $5,000 in attorney costs but hasn’t gotten a reply.

The bank is asking for a judgment on the validity of Graver’s assignment of the lease-purchase agreement to the bank, the validity of the agreement itself and at least $381,174.27 in relief from Graver and Dominique. From Alexander, the bank seeks the amount totaling the full payments required under the agreement plus attorney fees and costs.

Alexander Mayor Michelle Hobbs refused to speak to a reporter through an assistant Monday. City Attorney Carla Miller refused to comment on the lawsuit.

Alexander council tables appointment and attendance ordinance

The Alexander City Council tabled two major items at its September 16 meeting. One was the appointing of someone to fill the vacant alderman's position in Ward-3, Position-1. The other was an ordinance requiring attendance at city council meetings.

The aldermen decided to wait another month to fill the vacancy so more resumes can be submitted. They also ordered the city attorney to make a change to the ordinance requiring attendance at city council meetings.

Ward-3 resident Andrea Bearden was the only person to submit a resume requesting to be considered for the open seat, which became available when Alderman Dan Church resigned July 18. Church was elected in 2012 defeating incumbent Harvey Howard.

Alderman Faye McKeon suggested former alderman Harvey Howard be considered even though he did not submit a resume. Earlier this year both Bearden and Howard submitted resumes when the council needed to fill the vacancy in Ward-3's Position-2 spot. It became available when Alderman Jack Shoemaker moved out of Alexander. That vacancy was filled with the appointment of Samuel Gregory.

Resumes must be received at City Hall before the next regular council meeting scheduled for October 21, 2013.

A change to the ordinance requiring attendance at "regular" and "special" council meetings by elected officials forced the vote on it to be tabled until the October meeting. Alderman McKeon suggested that an absence would be excused providing the person notifies someone at city hall before closing time on the day of the meeting. No action by the council would be required unless an alderman misses a meeting and hadn't called.

Under the original proposal anyone unable to attend had to call city hall the day of the meeting and provide the reason they cannot attend. The aldermen present at the meeting would then vote as to whether the reason is an "excused absence." Under McKeon's proposal the vote would only be necessary if the official didn't notify someone of their expected absence.

The ordinance also includes a fine of $50 after three unexcused absences "during any calendar year." The fine jumps to $100 for each unexcused absence during the same calendar year.

The question of forcing aldermen to attend meetings came about after four aldermen stopped attending council meetings after January. The move came about, in-part, when during the regular January council meeting newly appointed Mayor Michelle Hobbs announced she would "veto" any action passed that was proposed by aldermen Juanita Wilson, Dan Church, Jack Shoemaker and Lonny Chapman.

The four stopped attending meetings to keep the council from having a quorum in order to slow down the mayor. Despite that, the council held some meetings without a quorum.

In other actions:

Council members did give the Assistant Fire Chief Tim Blankenship permission to purchase a used 2000 Pierce fire truck for $350 and make any necessary repairs up to $5,000. This truck will replace a 1988 vehicle that is beyond repair.

Police Chief Horace Walters told council members he is now getting prices to purchase four new police cars instead of the original seven discussed earlier this year. There is still some question as to how the city will be able to fund the purchase.

The next regular meeting will be held Monday, October 21 at 6 PM in Alexander City Hall.

One resume submitted for vacant Ward-3 seat in City of Alexander

Attendance ordinance also on tonight's agenda

Two major items are on tonight's agenda for the City of Alexander council meeting; filling the vacant alderman's position in Ward-3 and the ordinance requiring attendance at city council meetings.

Tonight's meeting will be held at 6 PM in Alexander City Hall.

Andrea Bearden is apparently the only City of Alexander resident who submitted a resume requesting to be considered for the open alderman position in Ward-3. The seat became available when Alderman Dan Church resigned July 18. Church was elected in 2012 defeating incumbent Harvey Howard.

According to her resume she is a Maintenance Technician for the Arkansas Department of Military at North Little Rock.

In her resume she states she has, "Management experience and exceptional people skills." She also says she, "Desires a challenging role as an Alexander City Council Member".

This is not the first time she has applied to fill a Ward-3 vacancy. Earlier this year she submitted her resume to fill the vacancy left when Alderman Jack Shoemaker moved out of Alexander. That vacancy was filled with the appointment of Samuel Gregory.

Also on tonight's agenda is an ordinance requiring all elected officials (mayor, recorder, treasurer and aldermen) to attend "regular" and "special" city council meetings. Under the proposed ordinance anyone unable to attend must call city hall the day of the meeting and provide the reason they cannot attend.

The ordinance provides for the aldermen present at the meeting to vote as to whether the reason is an "excused absence." A majority of those present will decide and a tie counts as an "excused absence."

The ordinance also includes a fine of $50 after three unexcused absences "during any calendar year." The fine jumps to $100 for each unexcused absence during the same calendar year.

The question of forcing aldermen to attend meetings came about after four aldermen stopped attending council meetings after January. The move came about, in-part, when during the regular January council meeting newly appointed Mayor Michelle Hobbs announced she would "veto" any action passed that was proposed by aldermen Juanita Wilson, Dan Church, Jack Shoemaker and Lonny Chapman.

The four stopped attending meetings to keep the council from having a quorum in order to slow down the mayor. Despite that, the council held some meetings without a quorum.

Alderman Lonny Chapman is also listed on tonight's agenda, without an explanation.

Former City of Alexander police officer court hearing Friday, jury trial set for October

A court hearing for former City of Alexander Police Officer Nancy Cummings has been set for 9 AM tomorrow (August 30) in a Saline County Court. She was charged with manslaughter in January by Saline County Prosecuting Attorney Ken Casady. A jury trial has been set for October 3 and 4.

The manslaughter charge comes from a shooting which occurred in Alexander September 8, 2012. The incident was investigated by the Arkansas State Police.

According to the state police report Cummings encountered Carleton Wallace walking on Brookwood Road around 4:30 PM Saturday, September 8th, 2012. While attempting to arrest Wallace, Cummings’s gun discharged hitting Wallace. He was transported to Saline Memorial Hospital where he was later pronounced dead.

Cummings told State Police she noticed Wallace carrying a pistol tucked in his pants and that he threw it into the woods when he saw her. When attempting to arrest him and search him for weapons, Cummings says her service weapon she had been holding discharged.

Her 28-year old daughter was riding with her in the police vehicle at the time of the shooting.

After the incident Alexander Police Chief Horace Walters said he hired Cummings in January, 2012 and had received no complaints against her. Walters also said she wasn't a certified police officer. Walters added he followed the law when hiring Cummings, although she had not, as yet, gone through the 12 weeks of basic training at the Arkansas Academy of Law Enforcement.

Walters said she had passed the standard mental and physical evaluation. And, he added, she had to ride with an officer and get to know the operations of the agency.

Prior to working at the Alexander Police Department, Cummings worked for the Pulaski County jail from 1997 to 2004 and the Arkansas Department of Correction from 2005 to 2011.

City of Alexander to hold Crime Watch meeting

If you're looking for something to do this Labor Day weekend the City of Alexander Police Department is holding a public meeting to discuss its Crime Watch program. The public is invited to attend the meeting being held on Saturday (August 31), 2 PM at City Hall, 15605 Alexander Rd. (Hwy 111).

The meeting has been organized by Assistant Chief Derrick Jackson.

According to a flyer posted at key places in Alexander Jackson says, "We are inviting everyone in the community to join our monthly meeting. We will be discussing our new code enforcement program."

He also states on the flier, "This program will enhance neighborhoods and works to ensure citizen's health, safety and general welfare through efficient and effective city code compliance."

Alexander City Council declares vacancy in Ward-3

Ward-3 Alderman Dan Church's resignation from the Alexander City Council was accepted by the council and his seat declared vacant at the council's August 19 regular meeting. He submitted his hand-written letter of resignation to Mayor Michelle Hobbs on Thursday, July 18. The letter gave no reason for his resignation.

Anyone wishing to apply for the position may submit a resume to City Hall before the next regular meeting, which will be held Monday, September 16. You must be a registered voter and a resident of Ward-3. Ward-3 is highlighted in yellow on the map.

This was Church's first time serving on the council. Church was elected in November, 2012 defeating incumbent Harvey Howard.

This makes the third alderman to leave the council since November's election. The first was Ward-4 Alderman Henry Tackett, who was also elected for the first time during the November, 2012 election. He resigned for health reasons and died shortly after. The second was Ward-3 Alderman Jack Shoemaker, who resigned after moving out of the city.

Developer eyes "The Pit" in Alexander for commercial development

Anyone who lives in the southern section of the City of Alexander is more than likely familiar with a vacant lot, at the intersection of East Azalea and South Alexander Road (end of Hwy. 111), affectionately known as "The Pit." That area is now being considered for commercial development.

A subdivision and zoning request was presented to the Alexander City Council at its August 19 regular meeting. The proposal would divide the 2.5-acre area into two lots. The front lot would be 1-acre zoned C-3 and the back would be 1.5-acres zoned I-2.

According to the city's zoning descriptions C-3 is a "General Commercial District" defined as, "Development of a broad range general sales and service uses." I-2 is labeled as "Light Industrial District" defined as, "Development of general industrial uses including light manufacturing and assembly."

The developer, Doug Woodall, told council members he plans to use the front lot for retail sales and the back lot for warehousing.

The area is surrounded on three sides by streets; South Alexander Road, East Azalea Drive and Alton Drive.

Alexander Council merges bank accounts

COMMENTARY by Concerned Citizens of Alexander

At the request of Mayor Michelle Hobbs the Alexander City Council approved merging six bank accounts into the General Fund account. While this may sound like a good idea, less accounts to track, the facts indicate something different.

One glaring result is the fire department accounts. The fire department's main and reserve accounts no longer exist. A department that was well managed is floundering, and has no financial stability to support its needs and projects.

This isn't the first time they have been raped like this. It has happened before according to previous fire department personnel. Additionally, the money is now going to projects that have commonly been acknowledged the city cannot afford. But if enough smoke screen is emitted, you cannot know what the facts are.

The decisions to take on another loan and merge six bank accounts into the general fund were made without seeing a financial report for four months and with no idea of the true financial condition of the city. The decision to merge the bank accounts may also be illegal.

In 2003 and 2005 the City of Alexander, when the population was 600, passed two one-cent sales tax referendums. One earmarked one-cent for the fire department and the other earmarked an additional 1/8-cent to the fire department, 5/8-cent to the police department and 2/8-cent to parks and recreation. 

After Woodland Hills was annexed into the city the new aldermen were told the bank accounts for fire, police and parks were required because the two referendums stated how the sales tax would be spent.  Because of that state law required separate bank accounts. Apparently our former city recorder has forgotten everything she knew when becoming mayor.

Camouflage is a red flag at step one. The bank merging is a smoke screen to keep you from knowing what is really going on.

Everyone gets a new car if you're an Alexander police officer

COMMENTARY: by Concerned Citizens of Alexander

Are you aware City of Alexander Mayor Michelle Hobbs is pushing through a debt we haven’t seen in years to supply the police force with all new cars?  After packing the council with her “cookie-cutter – yes people” they voted for the plan. 

And that's adding to a $350,000 loan from the United States Department of Agriculture (USDA) that is still not paid off.  That loan includes our two newest police cars.  We are paying over $2,000 per month for that loan and now they are adding over $3,500 to that. 

A copy of the U.S.D.A. note can be obtained by any citizen through the Freedom of Information Act.  Just search online for an FOIA form and instructions.  They are required to answer within three (3) days, by both Federal and Arkansas law.

Did you know all City of Alexander police officers use police cars as their personal vehicles?  You can obtain a copy of the “Fleet gas bill” showing when and where each vehicle is refueled each month. See procedure underlined above.

So, why do we need seven new police cars?  Apparently becoming a City of Alexander police officer entitles you to a car to take home, no matter where you live.  Even though police cars are built for more extreme use than your average family car, what they are put through is still brutal.  Adding the additional mileage of personal use, or even just driving to and from an officer's home outside of Alexander, is just added unnecessary wear-and-tear.

As a point of interest; if you've ever wondered why you see Pulaski County Sheriff cars parked at city hall it's because they are not allowed to take them home if they live outside the county.  If it's good enough for the county, why not us? 

Granted, we do need new vehicles; perhaps a total fleet of four.  Since we generally have no more than two officers per shift they can each drive one car while the other two cool off from the previous shift.  HOWEVER, we need to get the previous ones paid for and we need to limit vehicle use to shift duty only.  That will instantly take the strain off our aging misused fleet.

If you agree, remember November 4, 2014.

Alderman resigns from Alexander council

Ward-3 Alderman Dan Church has resigned from the City of Alexander council. He submitted his hand-written letter of resignation to Mayor Michelle Hobbs on Thursday, July 18. The letter gave no reason for his resignation. Church was elected in 2012 defeating incumbent Harvey Howard.

This is the third resignation for the council this year. The first was Ward-4 Alderman Henry Tackett, who was elected during the November, 2012 election. He resigned for health reasons and died shortly thereafter. The second was Ward-3 Alderman Jack Shoemaker, who resigned after moving out of the city.

The council appointed Faye McKeon to fill the Ward-4 position and Samuel Gregory to fill the Ward-3 spot. Both had served on the council in the past.

The council must now find candidates to fill the latest vacancy.

Former Alexander alderman appointed to fill vacancy

CORRECTIONS: One of our bloggers, Bill, has pointed out in paragraph one the month of the meeting should have been July not June. Also, in paragraph three Shoemaker's name was used instead of Gregory. These were obviously incorrect. We apologize for the confusion. Thanks Bill.

  
Samuel Gregory was appointed as alderman of Ward-3 at the City of Alexander's June 15 meeting. Gregory replaces former Alderman Jack Shoemaker who resigned after moving out of Alexander.

This is not Gregory's first time filling a vacancy created by Shoemaker. He was appointed to fill a vacancy in Ward-3 when Jack Shoemaker resigned in 2012 over political issues. He then lost to Shoemaker when they both ran in the 2012 election.

Besides Gregory, there were five other Ward-3 residents who submitted resumes for the position. They were Harvey C. Howard, Lisa Morgan, Kathy B. Hall, Catherine M. Nightlinger, and Andrea Bearden.

Howard is also a former Ward-3 alderman. He lost re-election in 2012 to Dan Church after serving nearly five years on the city council.

Six Alexander residents apply for vacant seat

Numerous other items on agenda

Monday night's agenda for the Alexander City Council includes considering six resumes from residents wanting to fill a vacant seat in Ward-3. The seat became available when Alderman Jack Shoemaker moved out of the city. Those submitting resumes are Harvey C. Howard, Samuel D. Gregory,  Lisa Morgan, Kathy B. Hall, Catherine M. Nightlinger, and Andrea Bearden.

Two of the six have already served on the council. Howard lost re-election in 2012 to Dan Church after serving nearly five years on the city council. Gregory was appointed to fill a similar vacancy in Ward-3 when Jack Shoemaker resigned in 2012. He then lost to Shoemaker when they both ran in the 2012 election.

Other items on the agenda include appointing a treasurer to fill the vacancy created when JoAn Churchill resigned earlier this year, a proposed amendment to Ordinance 2013-2 to include an emergency clause for the street abandonment ordinance passed last month, a proposed amendment to Ordinance 2013-3 to include an emergency clause for the zoning variance granted to Dollar General last month, a discussion regarding how to compel council members to attend meetings, establishing a "referendum period" for ordinances, re-establishing the planning commission and board of adjustment, and the formal adoption of zoning code. The information packets provided to council members on Saturday did not include any information, documentation, or proposed ordinances necessary to take action on any of these items. 

The next meeting of the Alexander City Council is Monday, July 15, at 6 PM in City Hall. The meetings are open to the public.

Mayor Hobbs calls special meeting tonight

City of Alexander Mayor Michelle Hobbs has called a Special Meeting for tonight, June 25, 2013. The meeting will be held at 6 PM in City Hall.

This meeting is to rectify the illegal votes taken at last week's regular council meeting. That meeting was called to order by the mayor without the required quorum of five necessary for an eight-member council, as required under state law. State law also allows the mayor to make the quorum, but there were only three aldermen present; making the council one short of a quorum.

Without a quorum, it would appear all votes taken at the regular meeting were illegal; including the appointment of Faye McKeon to fill a vacancy on the city council. Purportedly, the seat filled was that of Ward-4 Alderman Jack Shoemaker who resigned after moving out of Alexander. Appointing McKeon to that position is also in question since the council hadn't had time to declare the seat vacant, as with past vacancies. The Ward-4 seat held by the late Henry Tackett has been declared vacant.

Alderman Juanita Wilson has requested, in writing, an explanation from City Attorney Carla Miller why last week's meeting was allowed to begin without a quorum. Wilson says she received an E-mail from Miller saying she didn't have time to respond in writing because she was preparing for tonight's meeting. According to Wilson Miller offered to explain it at tonight's meeting. Wilson says she's not attending any meetings until she gets the answer to her question in writing.

Listed on tonight's agenda is Recorder, Resolution for Bank Accounts, Ordinance for Street Abandonment, Ordinance for Variance, Public Comments. There is no mention of filling the vacancy on the council.

One legal sticking point appearing on the agenda is consolidating five bank accounts into the General Fund. Those accounts are Police Department Fund, Fire Department Fund, Fire Department Reserve Fund, Parks and Recreation Fund, and Payroll Tax Fund.

Three of those accounts were started after two sales tax referendums passed. One referendum was for a one-cent sales tax dedicated to the fire department. In a separate referendum a second one-cent tax was passed dedicating that it be divided among police, fire, and parks and recreation.

City officials have always stated because the referendums specified the sales taxes were dedicated to be spent by specific city departments, state law requires they are to be kept in separate bank accounts and not be mixed with General Fund revenue. It has also been said this was the only way to get the referendums passed.

The Fire Department Reserve Fund contains 813 funding, which is shared by fire departments throughout the state. Purportedly, this too has a legal requirement to be kept in a separate account and be spent for specific uses under threat of losing future 813 funding.

The final account is the Payroll Tax Fund. That account was started in 2011 because the IRS demanded a bank account be established to allow the agency to withdraw the city's IRS payments electronically. The bookkeeper at the time also used it to hold state income tax payments, keeping them out of the General Fund. In the past those payments were being spent before they could be sent to either the IRS or the state.

Another item on tonight's agenda is an ordinance abandoning all streets and alleys next to the post office. The streets and alleys are part of the original city plat, but were never built. A developer plans to build a Dollar General Store.

In order to suspend the required three readings and pass the "emergency clause" it takes a two-thirds vote of the council. That would require six "yes" votes.

A second ordinance requests a variance from the developer changing the required 20-foot setback from the rear of the building to the property line to 15-feet. According to the ordinance the variance is needed due to the shape of the property. This ordinance also has an "emergency clause" and should require three readings.

EDITOR'S NOTE

Whether or not there is a quorum tonight anyone attending the meeting should ask the mayor why her meeting without a quorum was legal and a meeting attempted in January by the new aldermen was not legal. What state law allows a meeting without a quorum?

And, for those of you ready to complain about the no-shows remember this; it was Mayor Hobbs in January who promised to veto anything passed by the four aldermen who weren't kissing her ring finger. It was Mayor Hobbs who illegally vetoed an appointment to the council with no state law allowing such a veto. It's Mayor Hobbs who wants to illegally combine bank accounts. It's May Hobbs who wants to tick-off the IRS. It's Mayor Hobbs who wants this city to go back the way it was when Shirley Johnson ran it by spending money we don't have. It's Mayor Hobbs who is violating a 2012 spending freeze. If you want to complain to someone complain to your mayor, not to the aldermen she spits on.

Louise Howard: 1939 - 2013

Obituary

Louise Howard, 73, of Alexander, went to be with her Lord on June 19, 2013 with her family by her side. Louise retired from St. Vincent Infirmary Medical Center after 25 years of service. She loved to spend time with her family and her dog Mandy. Louise was a great cook and you never left her house hungry.

She is preceded in death by her parents, Earl and Bernice Leopard; brothers, Wayne, Earl Jr. and Jule and one sister, Betty. She is survived by her husband of 55 years, Harvey Howard Sr. (former City of Alexander Alderman) who loved and will miss her dearly. She is also survived by her brothers, RG and JT; sisters, Marie, Rosie, Brenda, Jean and Earlene; four sons, Harvey Jr., Gary (Lisa), David (Lea), Ted (Robert); two daughters, Audrey Little, Debbie Tyler (Rick); ten grandchildren; nine great grandchildren and one great great-grandchild.

To sign Louise's online guestbook visit www.dialanddudleyfuneralhome.com.

Some City of Alexander aldermen will be boycotting future meetings

Several issues between three members of the City of Alexander Council and Mayor Michelle Hobbs are causing the three aldermen to recommend canceling as many meetings as necessary until these issues are resolved.

"In order to preserve the equity of the voter's trust, it is in the best interest of the city that Council Meetings be tabled for the time being until the power struggle is resolved," said Alderman Juanita Wilson.

Wilson cites six examples where she claims the mayor has exceeded her authority and has stated she will not work with council members who do not rubber stamp her requests.

1. Spending, hiring and wage increases are issued without the proper council approval in violation of a spending freeze voted into place April 19, 2012 and is still active.
2. Council cannot receive mandated financial reports, and has no idea the financial state of the city.
3. Council is required by state law to manage all financial and all real and personal property belonging to the city.  The Mayor not only refuses to allow us access to the information, she refuses to supply information when Council goes a step beyond state law and invokes the Freedom of Information Act.
4. The Mayor has already shown she refuses to work with all council members when she vowed at the January meeting to veto anything four (now 3) of the aldermen who ask questions regarding her policies, or try to introduce policy or seat citizens who qualify to vacant council seats, per state law, UNLESS they are of her choosing only.
5. While Municipal League attorneys endorse everything the Mayor decides to do, even to hiring an ex-employee, after they (the Municipal League) warned her not to do so.
6. Ordinance regarding the hiring of a City Attorney asked for in February has never been provided, nor was the hiring of the current attorney approved by Council.

Wilson added, "Having a quorum at future meetings under these circumstances is not in the best interest of our constituents and what they have entrusted us to do."

Wilson is asking for help from the state.

"It is with the strongest urgency that Alexander City Council, currently split, seeks the assistance of the State of Arkansas in resolving these issues," she said.