WARNING: Reader may detect opinions from author.
The Alexander City Council held a Special Meeting Tuesday, April 25. The meeting was called by council members Joe Pollard, Harold Timmerman and Tony Staton.
The goal of the meeting was to try to get enough council members to accept the bid from McElroy Tops and Floors in Benton so repairs can begin on the water fountain in the City Park. A second item on the agenda was to establish a policy for keys to the bookkeeper's office and begin the process of hiring a new bookkeeper.
Not only was the fountain issue tabled again, but the keys and bookkeeper hiring was added to the growing list of tabled agenda items. At the April 17 Regular Meeting the fountain, a request from the developer of a proposed subdivision to approve connecting to the Little Rock sewer line, and bids for a fire alarm system for city hall were all tabled.
Mayor Crystal Herrmann asked Pollard, Timmerman and Staton to begin the discussion.
"Knowing this gentleman (McElroy) does excellent work," Timmermann began. "I think we get him on the job ASAP as soon as he possibly can, because he's been doing this kind of work. And we've called other places and they won't do repair work.
"All they want to do is, from the bottom up start," Timmermann continued. "They will not dismantle and repair it. A lot of them we called will not even come this far into the end of the state. They just do in their areas."
"And I think Mr. McElroy, like I said (at the last meeting), y'all don't know him like I do," Pollard began. "I have worked for him OK and I know what he does. He does it for J.D. Hunt up in Lowell, Arkansas new building up there, stuff, and I had took stuff up there for him."
"And he does the work and he stand behind it," Pollard continued. "I know a job he did that nobody ever complained about him doing."
"I spoke to him Friday and he said he's been pretty much been doing it all his life," Staton began. "He had done a fountain for UAMS."
Staton then proceeded to present a second quote from McElroy. The first quote presented to the council at the regular April 17 meeting was for $47,020.00. That quote allows for the city street department using city equipment and employees to dismantle and reassemble the fountain while McElroy does the repairs.
Also, it does not include the cost of materials. Alexander will be allowed to purchase them using McElroy's contractor discount.
The second quote eliminates help from the city and replaces it with having to rent equipment and an operator. Staton said that adds around another "$22,000.00 per day" bringing the second quote up to around $68,020.00.
Herrmann then reminds everyone, "And we still don't have three bids. We only have one bid."
"So, like he (Timmerann) just said, we checked around, several of us called and there's nobody in this state that can do this work and get it done," Council Member Juanita Wilson said. "And what I was told that this man (McElroy) has a window of opportunity to get it done in the next couple of weeks because of a job that backed off for a couple of weeks. So it would expedite getting it finished and getting it working."
"It's my understanding we have to have three bids," Herrmann asked. "Am I wrong on that one?"
"For this type of service, ... we have to have three bids for these kinds of things," said Council Member Joy Gray. "So, if you all can document that you've made phone calls to XYZ places, you've made every attempt (to get three bids), then you can (accept one bid) because that's one of the things that would be sort of like a sole source where this is the person that does it, that will come do it."
"Well, I honestly would prefer to at least give me a chance to get us some more bids," Herrmann said.
Besides only being able to get one bid, another issue concerning some council members is not having seen any financial statements since the beginning of the year. Ever since January 3 City Treasurer JoAn Churchill has not been able to access the accounting software to print end-of-the-month financial statements.
Churchill attended both the regular monthly April meeting and the Special Meeting, and no one asked her for the current balance of the Parks and Recreation Fund. According to the March bank statement the Parks and Recreation Account had a balance at the end of the month of $201,789.70. That includes the deduction of the $68,000.00 deposited into the court fund to pay David Jacks as part of the Eminent Domain lawsuit concerning the property, which makes up the east end of the park.
And that brought the discussion to whether Alexander can repair the fountain even though it's still in litigation over ownership of the property. This was also a bone of contention at the regular April meeting.
After the city mowed that end of the park for years, plus made improvements which includes not only the fountain but the gazebo and lights, Little Rock resident David Jacks claimed it is his property. A title search indicated after the property was donated to the city by its previous owner, the eastern end may have been accidentally sold to Jacks. Hence, the confusion by city officials.
At the April 17 council meeting Wilson provided an Email from Attorney Lana Fraser stating that the city has ownership of the property. Fraser first began working on this issue when she was city attorney. She has since joined the James Law Firm in Little Rock and was hired to file the Eminent Domain claim.
According to the filing posted on the Arkansas Judicial website, Judge Brent D. Houston, 22nd Circuit, Division 3, has already made a ruling on the Eminent Domain claim.
His ruling states, "After the City deposits $68,000 into the registry of the Court, the City and its agents or contractors may take immediate possession of the property described in the City of Alexander’s Complaint filed on March 22, 2023, and may enter upon the lands in controversy and proceed with its operation, construction, maintenance, and ensure safety for the public park. Ark. Code Ann. §18-15-303(b)(2)."
Timmermann and Wilson point to this ruling as giving the city ownership of the property and the authority to make the repairs. When the issue was tabled at the last meeting Timmermann expected Herrmann would look for more bids.
"No, I didn't say I was going to get bids," Herrmann said. "We've tabled this because the property is not in our name yet, and nobody has looked at the financials. This is why it was tabled."
"The judge of the court says that we have the right ... to do repairs on this property because it is the City of Alexander's property," Timmermann said.
"I understand that that is still in the process," Herrmann replied. "It's not in our name yet Mr. Timmermann."
"Once we put down that $68,000 to the court and he (judge) said that we have the right to that property, we have full use of it, so we can do whatever we need to going forward with that property," Timmermann countered.
Council member Joy Gray asked Herrmann, "Based on your experience with that kind of fountain, what is the standard pricing for that?"
"It's, it's very high, especially with the city supplying labor and equipment," Herrmann said. "So that's a high quote. That is, that is, very high to me. It, it is a very high quote. What would be I mean, the materials are most likely going to run anywhere from two thousand, three thousand dollars.
"And, what I think has happened with the shift, the grout has fractured, water with the winter that we had, it penetrated, got in, froze, but makes it worse and it keeps doing so," Herrmann continued. "It needs to be cleaned out, pulled apart, put back with a fresh coat grout with a proper sealer, and then it needs to be waterproofed accordingly with that marble."
"So you're not just throwing in an epoxy sealer over top of beautiful marble," she said. "There's some special products for that to do a deep penetration on those groundwater."
Gray asked Herrmann for her estimate on the cost of hiring a company to repair the fountain.
"I would say probably about 20 (thousand), especially if David's (Street Superintendent) assisting and maybe even lower than that," Herrmann replied. "That's what I'm saying. We can actually improve. We can actually do that in house with the guidance. I could have somebody come over and give them the guidance to do it correctly."
"And I'm concerned about not that we don't want to take care of the fountain," Council Member Angela Griffin Began. "But I am concerned about putting certain precedents over fixing something until we all review the financials, because there are other things that needs to be taken care of, too, that deals with the financials."
"And so for me to vote on this doesn't mean I don't want to take care of the fountains," Griffin continued. "But I don't think it takes precedence over other things at this point, meaning we have city buildings that are not up to code yet that needs to be taken care of, that we've also tabled and hadn't voted on."
"But every dime we can save for the park right now is crucial because we have the eroding culverts over there," Herrmann chimed in. "We don't have a public restroom. I want to see the fountain run. I would love to see the fountain run, but I would prefer the fountain be worked on once the city's name, once the deed is in our name. Why do we have to rush it?"
"The judge says that the city park belongs to the city of Alexander," Wilson repeated.
"Is a deed filed at the courthouse in the city of Alexander's name. Yes or no?" Herrmann asked.
"We have authorization from the judge to do whatever we need to do in the city park," Timmermann said.
"That's just my opinion," Herrmann said.
"You're not a judge," Timmermann shot back. " Neither am I. But it says in the papers that we got from the courthouse down there that we own that property all the way to Highway 111."
"I received a letter. I received information from Ms. Fraser today," Herrmann said. "He still has not been served. And correct me if I'm wrong, Joy (Gray), did she not say he had to be served for the process to go through?"
"So Lana's opinion was that we could do it," Gray began to explain. "But that paperwork that we looked at with Sharon (Bankhead), our last meeting that we had, I would say it's kind of up in the air. Lana said we can do it. She's the acting attorney for it."
Gray then recaps all the sides of the legal issue.
"But has the deed been filed with the city's name on it? No, because the process we're in right now is he (Jacks) has to say yes or no at this point. He's running from the process server, apparently, and then the judge at this point, we're in the point where, yes, technically it's ours, but he hasn't been given he hasn't been given the money."
"At this point. He may not even get $68,000," Gray continued. "We've written a check for that much. But the judge may get mad and give him a dollar. I wouldn't stop that. But that's where we're at. So we don't have deeds, but we're in the process."
This is the same tactic Jacks used when former Mayor Paul Mitchell attempted to settle the matter. The attorney for Jacks at the time was the contact person for Jacks. According to Mitchell the attorney couldn't get an answer from Jacks on any question or offer. It was essentially a one-sided negotiation.
Gray asked, "Do we know how many weeks he can run from the process server?"
"Three," Wilson responded. "If the process server didn't get him last Wednesday (April 19), then from Wednesday till this Wednesday (April 26) to the next Wednesday (May 3), the next Wednesday (May 10), it's over."
Wilson reminded everyone that McElroy has an opening now to get the fountain repaired.
Earlier Timmermann made a motion to accept the bid with Wilson making the second. The motion failed with Timmermann and Wilson being the only "Aye" votes. Voting "Nay" were Pollard, Staton, Gray, Griffin, and Gina Thomas Littlejohn.
Herrmann declared the issue tabled without a vote.
Unless something changes this issue should be settled at the May 15 meeting.
The bookkeeper; keys and hiring?
Council member Juanita Wilson read the proposed recommendations.
"This is for the treasurer," Wilson began. "To accounting office. All keys to the accounting office; current location; door, files all locks changed. Personnel files are needed to be seen in order to do the work required. Only the bookkeeper needs to see these files, absolutely no one else."
"Accounting should be a viable department with bookkeeper, accounts receivable, accounts payable, personnel records, and payroll," Wilson continued. "Department head would be the city treasurer. Office manager would be the bookkeeper and two (additional) clerks at a later date (to be discussed) when we get to the meeting next."
Former bookkeeper Julie Brown resigned before the April 17 regular council meeting. Wilson says there was a resignation letter found in the bookkeepers office from Brown, which tells City Treasurer JoAn Churchill a flash drive was left on the desk with the letter. Wilson told council members the flash drive can not be found.
"And, Mayor Crystal (Herrmann) gave JoAn (Churchill) a key to the office," Wilson said. "But she didn't give her the flash drive. So that flash drive needs to come into Joanne's office because it doesn't need to be outside (the office)."
Churchill normally performs her treasurer duties from home. But, with the resignation of Brown, Churchill is performing bookkeeping duties in the office used by the bookkeeper.
Herrmann said, "And Ms. JoAn actually has a home office, and she retired from the office."
"And she needs to be doing the bookkeeper job," Wilson explained. "She's doing double job right now in order to get the city straightened, because there are some bookkeeping errors that were found."
"I absolutely agree, Herrmann said. "There had a lot of bookkeeping errors."
Wilson responded, "But they're not Joanne's errors."
Attempting to throw blame Herrmann said, "With Ms. JoAn in the wheel."
"No, ma'am," Wilson replied. "It was Ms. Julie. We found proof of that today, so that will come up (later)."
Attempting to get back to the issue of security Wilson continued, "But anyway, right now, we just need that she has a secured office with new locks on it, and she's the only one to have the lock, the key. No one else needs them (keys), period. End of sentence."
To emphasize the importance of keeping the office locked, Wilson conveyed advice given to her and Churchill by State auditors a few years ago.
"Because the Treasurer's people told Joanne and I at a meeting several years ago, that anytime you're more than ten foot from that door in that bookkeeping office, it's to be locked. No one enters. Nobody," Wilson said. "That includes anybody. Mayor, council members. Once it is locked, you can't go in there and see any files."
Wilson then brought up a problem being caused by Herrmann.
"And she (Churchill) can't even get into the filing cabinets because they are now locked," Wilson said.
"They have been locked," Herrmann said.
"And they have been locked," Wilson repeated. "But the mayor says she has a key to them. She shouldn't have a key to them either."
"I offered to pull whatever file," Herrmann said.
Cutting off Herrmann Wilson said, "You don't need to be pulling files. That's not your job. The files are personnel files with people's Social Security number."
Changing the subject to hiring a new bookkeeper Wilson said, "We're going to need another person in that office. And Joanne needs to be the one trying to hire because Joanne has done bookkeeping most of her life."
"I make a motion that we do this tonight," Wilson said. "And I think we ought to give Joanne at least a seven or eight dollar raise for what she's having to do to get things out of that computer, because it has been screwed up the day she came back in."
Ever since January 3 the accounting system has not allowed Churchill to sign-in. One problem this has caused is not being able to print monthly financial statements for the council meetings.
Council member Joy Gray asked what "do this" means in the motion.
"We're going to give her (Churchill) access by getting new keys, locks made so that she's the only one that has the keys to get in and out of that office, because there are several keys floating around here that nobody's admitting they have," Wilson explained.
"Joy," Herrmann began. "They do not want me to have a key to the office in the city building that mayors generally have a key to. They do not want me to have access, I'm being denied access to of a FOIable information as mayor."
"Well," Wilson chimed in. "Ms. JoAn just did three FOIA (Freedom of Information Act) information today because people are requesting FOIA on top of everything else she's had to do."
"Let me understand so I can follow what you're saying," said Council Member Angela Griffin. "So you're proposing that the treasurer, the elected official, play the role as elected official treasurer and also play as an employee as the bookkeeper."
"Right. Now she's doing that," Wilson said.
"So she would need to do dual role," Griffin continued. "Does employee and elected official be the only one to have access to personnel files?"
"Right," Wilson again concurred.
"The only one to have access to personnel file," Griffin again asked. "And to have the locks change on an office so no one else has access to it?"
"Not until she gets a bookkeeper and gets them training," Wilson said.
"But she has an office at home that no one would have access to," Griffin said.
Wilson explained the city records needed by Churchill are in the accounting office at city hall.
"She doesn't have them at home," Wilson said.
"What particular records you're talking about?" Griffin asked.
"Personnel records? All kinds of people's personal information," Wilson said.
"She would need access to that so she can take care of like the payroll and all of that," Griffin interjected.
"Right now, she's still working with payroll people, trying to get payroll straight out," Wilson responded.
Arkansas state law assumes whoever is elected city treasurer is familiar with accounting and can perform that function. However, it also allows for the possibility that someone could be elected who either isn't an accountant or isn't able to be at city hall performing those accounting tasks on a daily basis if required.
According to the Arkansas Municipal League's guide "Municipal Law in Arkansas Questions and Answers, Revised November 2021" the treasurer's duties may be assigned to another person or entity. The guide answers the question:
"Q: May the treasurer’s duties be assigned to someone else?"
Wilson then wanted the council to give Churchill "the sole right to hire a bookkeeper." And that's when it really hit the fan.
Council Member Joy Gray reported on what she found under State law in regards to who hires employees.
"I looked today in the Municipal League rules and regs on that," Gray began. "In one book, it was on page 17, and another book, it was on page twelve. I don't remember which one was which. But basically we would have to go back through, and I didn't have time today to look at the Organization of City Council, to see (if) it's not in there."
"So the mayor can nominate department heads and then we can say yay or nay and vetoed if we don't like it," Gray continued. "Now, for basic people that work in the building, there's not necessarily a concrete state[ment] here."
"There's not a statute that I can find that gives us direction on this," Gray concluded.
After several minutes of discussion, which included the idea of hiring a temp service, Griffin asked Herrmann for her recommendation.
"While there's a vacancy, I propose that you all let me work with entering the payroll and getting that combined," she began. "Let me work with Ms. JoAn on turning over the numbers."
"Her and I can go over the payroll," Herrmann continued. "The hours together with the time sheet doing the report, like I emailed you about today, and Proliant (payroll company) is really cordial. They will call and walk you through it. And meanwhile, I can either do the temporary service that just does it for us, or me and Joanne can work together and get through it."
After several more minutes of discussion Council Member Harold Timmermann recommended hiring a temporary bookkeeper until the next council meeting.
"I'd like to suggest that you (hire) temporary till the next city council meeting next month and make a decision then," Timmermann said.
Herrmann responded, "Okay, so you're saying meanwhile, if I have a temp and when I have some good applications and resumes that you don't want me to hire my office (staff)?"
"It is not the mayor's position to hire those positions," Timmermann replied.
"Nothing says that it's not Mr. Timmermann," Herrmann said. "Other mayors across Arkansas hire their staff. It's not an uncommon thing. Paul Mitchell did it. Ms. Johnson did it. It happens every day."
"Mayors lose staff and they hire new staff, Herrmann continued. "Happens all the time, usually around election."
"Look where the position of the records are at today, Herrmann said before being cutoff. "They're so screwed up because we let other people do it instead of doing ... ."
"In all fairness, Ms. Churchill is our treasurer and she has been the one guiding even Julie (Brown) and Melissa Ratliff," Herrmann countered. "So the stuff has been screwed up. It's been screwed up for a long while. It's going to take a lot of digging out to get it fixed."
After Timmermann made the motion to table this issue until the next meeting and Wilson seconded, six council members voted Aye. Two voted Nay.
Before the meeting adjourned, gray expressed her frustration at how the evening had progressed.
"I mean, at this point, I'm, I'm just, I'm so exhausted," she said. "I get it. That everybody is, is tense and hates each other. I get that. But we're, we're supposed to be doing stuff with the city moving. So if you hire somebody that is transparent about the process of who they are, can everybody just grow up and move on with it?"
"We're not going to hire somebody because I'm going to take my ball and go home," Gray continued. "I literally have contemplated just not even beyond counseling more, because this is hundred dollars (a month), and if she (new bookkeeper) sucks, then we can but in addition to a bookkeeper, we probably need to pay an outside account[ant]. Leg Audit (Arkansas Legislative Audit) is not our personal audit service."
"And it's embarrassing that they (Leg Audit) come in and speak to us," Gray went on. "That whole Melissa thing is shameful. And I want the record to say that I'm utterly ashamed that ever happened. And I hope she sees the inside of a prison cell for it."
Former City Bookkeeper Melissa Ratliff/Anthony was fired in October, 2022 for failing to take a drug test. When Churchill began looking through the books it was discovered Ratliff/Anthony had written several checks to herself. She also used former Mayor Paul Mitchell's signature stamp plus her own signature to meet the two-signature requirement. Under state law it is illegal for a government employee to sign a check made out to themselves. According to the Arkansas Judicial website, as of this writing, there have been no legal filings on this issue.
No comments:
Post a Comment