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City of Sebastian
POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 [] FAX (407) 589-5570
AGENDA
SEBASTIAN CITY COUNCIL
WORKSHOP MEETING
WEDNF~DAY, AUGUST 4, 1993- 7:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
ALL PROPOSED ORDINANCES AND INFORMATION ON ITEMS
BELOW MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK,
CITY HALL, 1225 MAIN STREET, SEBASTIAN, FLORIDA.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
4. AGENDA MODIFICATIONS ~ADDITIONS AND/OR ~ELETIONS}
Items not on the written agenda may be added only
upon unanimous consent of the Council members present
(Resolution No. R-93-19).
5.PUBLIC INPUT ON AGENDA ITEMS
A. Tom Justice, Esq.
B. Other Individuals Who Have Signed the Sign-Up
Sheet
6. MAYOR AND CITY COUNCIL MATTERS
A. Mrs. Carolyn Corum
B. Mrs. Norma Damp
C. Mr. Robert Freeland
1. "City Manager' s Contract/Job Performance"
(Freeland Memo dated 7/28/93)
D. Mayor Lonnie R_=. Powell
E. Vice-Mayor Frank Oberbeck
7. CITY ATTORNEY 14ATTERS
8. CITY I~WAGER MATTERS
9. ADJOURN
ANY PERSON WHO DECIDES TO APPEAL ANY DECISION MADE BY THE CITY
COUNCIL WITH RESPECT TO ANY MATTER CONSIDERED AT THIS MEETING (OR
HEARING) WILL NEED A RECORD OF THE PROCEEDINGS AND MAY NEED TO
ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH
RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL
IS TO BE HEARD. (286.0105 F.S.)
2
PUBLIC INPUT ON AGENDA ITEMS SIGNUP SHEET
AUGUST 4, 1993 CITY COUNCIL WORKSHOP
(Use this form ONLY for input on items on the prepared agenda
except for public hearings which have their own signup sheets.
You will now speak immediately prior to the subject after being
recognized by the Mayor.)
NAME : Tom Justice, Esq.
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10
City of Sebastian
POST OFFICE BOX 780127 [] SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 [] FAX (407) 589-5570
MINUTES
SEBASTIAN CITY COUNCIL
WORKSHOP MEETING
WEDNESDAY, AUGUST 4, 1993 - 7:00 P.M.
CITY COUNCIL CHAMBERS
1225 MAIN STREET, SEBASTIAN, FLORIDA
ALL PROPOSED ORDINANCES AND INFORMATION ON ITEMS
BELOW MAY BE INSPECTED IN THE OFFICE OF THE CITY CLERK,
CITY HALL, 1225 MAIN STREET, SEBASTIAN, FLORIDA.
1. Mayor Powell called the workshop to order at 7:00
p.m.
2. The Pledge of Allegiance was recited.
3. ROLL
Present:
Mayor Lonnie Powell
Vice Mayor Frank Oberbeck
Mrs. Carolyn Corum
Mrs. Norma Damp
Mr. Robert Freeland
Also
Present:
City Manager, Robert McClary
City Attorney, Charles Nash
Assistant City Attorney, Richard Torpy
City Clerk, Kathryn O'Halloran
Deputy City Clerk, Sally Maio
And: Attorney Tom Justice
City Council Workshop
August 4, 1993
Page
AGEND~ MODIFICATIONS CADDITXONS ~%ND/OR DELETIONS)
Items not on the written agenda may be added only
upon unanimous consent of the Council members present
(Resolution No. R-93-19).
The City Attorney recommended that item 5 B be deleted
and that item 6 C be moved before item 6 A.
MOTION by Oberbeck/Corum
I would move to delete item 5 B of the agenda.
ROLL CALL:
Mr. Oberbeck - aye
Mrs. Corum - aye
Mrs. Damp - nay
Mr. Freeland - aye
Mayor Powell - aye
MOTION CARRIED 4-1 (Damp - nay)
The City Attorney cited Section 4 - Paragraph A of
Resolution NO. R-88-32 and stated that motion to
delete requires four votes.
MOTION by Oberbeck/Powell
I would move that we move item C under Mayor and
City Council Matters in front of item A.
ROLL CALL:
Mrs. Corum - aye
Mrs. Damp - aye
Mr. Freeland - aye
Mayor Powell - aye
Mr. Oberbeck - aye
MOTION CARRIED 5-0
5. PUBLIC INPUT ON AGEND~ ITEMS
A. Tom Justice, Esq.
The Assistant City Attorney advised that Mr. Justice
had asked to reserved comment until after
Councilmember Freeland's matters.
Be
other Individuals Who Hav~ Signed the Sign-Up
Sheet
This item deleted during "Agenda Modifications".
2
City Council Workshop
August 4, 1993
Page Three
93.234
6. I, IA¥OR AND CITY COUNCIL J(ATTER$
C. ~r, Robert Freeland
"city Manager's Contract/Job Performance"
(Freeland Memo dated 7/28/93)
Mr. Freeland submitted a memo to city Council
members, the City Manager and City Clerk and read it
into the record. (see attached)
Mr. Justice reserved his right to speak until later.
The Assistant city Attorney recommended a brief
recess to allow City Council to review the
documentation presented by Mr. Freeland.
MOTION by Oberbeck/Corum
I would move for a ten minute break.
The city Attorney advised City Council not to discuss
the matter with anyone during this recess.
Mayor Powell called recess at 7:15 p.m and
reconvened the workshop at 7:30 p.m. Ail members
were present.
The city Attorney, upon the request of the Mayor,
explained City Council procedures regarding this
matter and advised that the reason for the deletion
of "Public Input" from this agenda was to preserve
Mr. McClary's due process rights.
City Council discussion followed. Mr. Freeland
presented copies of Sections 3.03 and 3.04 of the
city Charter to City Council (see attached).
Attorney Justice, Mr. McClary's legal counsel,
commented on the City's procedures and his client's
intentions in the matter if his contract is
terminated.
Following advice from the City Attorney to the City
Council not to discuss the matter with members of the
public, motion was made.
City Council Workshop
August 4, 1993
Page Four
*Amended
MOTION by Freeland/Oberbeck
I make a motion that we suspend Mr. McClary
with pay and set a formal independent investigation
with regard to the above referenced allegations and
have a due process hearing which would be set for
the purpose of allowing Mr. McClary to respond to
these allegations.
The City Attorney said he had conferred with Mr.
Justice prior to the meeting and had been advised
that if suspension were to take place, his client
would want a hearing and that he would need at least
sixty days from this date to prepare.
Mr. Freeland added "sixty days" to the motion. The
city Attorney suggested "sixty days or such other
date within that sixty day time period that Mr.
Justice consents to". Mr. Freeland and Mr. Justice
concurred with "within sixty days". The second
concurred with the addition of "within sixty days".
The City Attorney inquired whether the motion is "that
the suspension would be effective immediately". Mr.
Freeland concurred.
ROLL CALL:
Mrs. Damp - aye
Mr. Freeland - aye
Mayor Powell - aye
Mr. Oberbeck - aye
Mrs. Corum - nay
MOTION CARRIED 4-1 (Corum - nay)
The City Attorney advised that in accordance with the
Charter, the City Manager must be noticed of the
suspension either in person or by certified or
registered return receipt mail and asked Mr. Justice
to waive notice due to the fact that he has received
notice orally. Upon receiving copies of Sections
3.03 and 3.04 of the Charter as submitted to City
Council by Mr. Freeland and an assurance that there
were no additional charges to be submitted, Mr.
Justice waived written notice.
The City Attorney advised that City Council appoint
an Acting City Manager.
City Council Workshop
August 4, 1993
Page Five
MOTION by Oberbeck/Freeland
I would move that we appoint the city Clerk to
the position of Acting City Manager compensating her
additional 20% of her salary during this period of
investigation.
In response to the Mayor's inquiry about his business
transaction with the city Clerk, the City Attorney
advised Mayor Powell to declare a conflict of
interest, not participate in the vote and file the
appropriate Commission on Ethics forms with the
city Clerk's office.
The Mayor explained that the City Manager, city Clerk
and City Attorney are the only charter officers and
the city Attorney advised that the Acting City
Manager need not be a charter officer.
ROLL CALL:
Mr. Freeland - aye
Mayor Powell - abstained
Mr. Oberbeck - aye
Mrs. Corum - nay
Mrs. Damp - nay
MOTION FAILED due to 2-2 vote.
Mrs. Corum recommended appointing the Chief of Police
as Acting City Manager, said she'd like to make a
motion to that effect although no second was made
and discussion followed as to whether he would accept
the position. The city Attorney advised that
Attorney Torpy could contact Chief Petty tonight if a
consensus is reached.
TAPE I - SIDE II (7:48 p.m.)
There was no consensus by city Council.
MOTION by Corum/Freeland
I make a motion that this City Council appoints
Chief Petty as interim City Manager until further
notice.
Further discusssion took place.
5
City Council Workshop
August 4, 1993
Page Six
ROLL CALL:
Mayor Powell - nay
Mr. Oberbeck - nay
Mrs. Corum - aye
Mrs. Damp - aye
Mr. Freeland - nay
MOTION FAILED 2-3 (Powell, Oberbeck, Freeland - nay)
Mr. Oberbeck reiterated his recommendation to appoint
the City Clerk.
Mayor Powell inquired whether it was appropriate for
him to move to appoint the Director of Community
Development and the City Attorney advised that he
could.
MOTION by Damp/Freeland
I make a motion that we recommend Kay O'Halloran
to run as City Manager in the interim.
In response to the City Attorney, as to whether to
include additional compensation during time served,
Mr. Freeland said that could be addressed at a later
time.
ROLL CALL:
Mr. Oberbeck - aye
Mrs. Corum - nay
Mrs. Damp - aye
Mr. Freeland - aye
Mayor Powell - abstained
MOTION CARRIED 3-1 (Corum - nay, Powell - abstained)
The City Clerk accepted the position.
The city Attorney recommended that the city's special
labor counsel, Carson and Linn, be engaged for the
investigation and estimated that fees for this
service would be in the range of $5,000 to $10,000.
MOTION by Oberbeck/Freeland
I would move that we engage our special labor
counsel to review the charges brought against Mr.
McClary.
ROLL CALL: Mrs. Corum - aye
Mrs. Damp - aye
Mr. Freeland - aye
Mayor Powell - aye
Mr. Oberbeck - aye
MOTION CARRIED 5-0
6
city Council Workshop
August 4, 1993
Page Seven
A. Mrs. Carolyn Corum
Mrs. Corum advised about a problem with trucks
unloading in the front parking lot of Food Lion and
requested staff to look into it.
B. Mrs. Norma ~
None.
D. Mayor Lonnie~_= Powell
None.
E. Vi~e-Ma~or Frank Oberbeck
Mr. Oberbeck stated he wanted to quell a rumor
resulting in a letter to city Council regarding
certain Council members' desires to eliminate the
city manager form of government. Mr. Freeland read
the subject letter (see attached). It was the
consensus of City Council that it preferred a city
manager form of government.
CITY ATTORNEY I~TTERS
None.
CI~ I~AGER ~TTERS
None.
Being no further business, Mayor Powell adjourned the
workshop at 8:20 p.m.
Approved at the August 11 ~ , 1993, City Council
Regular Meeting~
Kathryn~ ~''
O Halloran, ~C/~E
City Cl~rk
*As amended - see page #4 of 8/11/93 minutes
7
Regular City Council Meeting
August 11, 1993
Page Four
93.237
The City Attorney removed item A 8/4/93 workshop
minutes and item E-Resolution No. R-93-37 -
Communications Agreement. Mrs. Corum removed items D
Resolution No. R-95-36 - Mutual Aid Agreement and
item F Tower Lease Agreement. Mrs. Damp removed
item G Defensive Driving Enrollment Agreement.
MOTION by Oberbeck/Corum
I move that we approve item C of the consent
agenda.
VOICE VOTE on the motion carried 5-0.
Item A - Approyal of ~in~es: 7/28/~3 Rep~lar
Meetin~ ~/9/9~ Workshop
The City Attorney requested a revision to the August
4, 1993 workshop minutes regarding waiver of written
notice of suspension by Attorney Justice on behalf of
his client. He requested that the minutes reflect
that in accordance with Section 3.03 B of the City
charter "Mr. Justice waived both the notice of
suspension and the actual delivery of the written
charges due to the fact that he was provided with the
written charges before the meeting by myself
(Attorney Nash).".
MOTION by Oberbeck/Freeland
I would move that we approve item A of the
consent agenda pertaining to the.workshop meeting of
8/4/93 with correction.
VOICE VOTE on the motion carried 5-0.
MOTION by Oberbeck/Freeland
I would move that we also approve item A the
minutes of 7/28/93 regular meeting.
VOICE VOTE on the motion carried 5-0.
Item ~ - ~ESOLUTION NO. ~-93-36- Mutual Aid
~greeme~ - IRCJ¢itx of Sebas~taD
Mrs. Corum inquired as to the source of funding when
the agreement is utilized. Chief Petty responded
that each force is paid by its own agency.
4
CHARTER § 3.03
resolutions and charter amendments shall be printed in substantially the same style as the
Code currently in effect and shall be suitable in form' for integration therein.
(Ord. No. 0.88-43, § 12, 1-11-89; Ord. No. 0-91-29, § 1, 1.8-92)
Editor's note-See the editor's note following § 2.11.
Sec. 2.16. Standing committees.
(a) Standing committees may be appointed by the city council. The membership, powers
and duties of such committees shall be provided by the resolution of the city council.
(b) Periodic reports to the city council shall be made by the standing committees as to the
accomplishments and future activities contemplated by each standing committee, as directed
by the city council.
(Ord. No. 0-88-43, § 13, 1-11-89; Ord. No. O-91-29, § 1, 1-8-92; Ord. No. 0-91-30, § 4, 1-8-92)
Editor's note-See the editor's note following § 2.11.
ARTICLE III. ADMINISTRATION AND LEGAL DEPARTMENTS*
DMSION 1. GENERALLY
Sec. 3.01. Creation.
(a) The city council may establish city departments, offices or agencies in addition to those
expressly created in the City Charter and may prescribe the functions of all departments,
offices and agencies. Notwithstanding the foregoing sentence, no function specifically assigned
in the City Charter to a particular department, office or agency may be discontinued or
reassigned to a different department, office or agency by the city council, except to the extent
allowable under the provisions of the City Charter.
(b) The city manager, city clerk and city attorney are designated Charter officers.
(Ord. No. 0-88-43, § 14, 1-11-89; Ord. No. O-91-29, § 1, 1-8-92; Ord. No. O-93-02, § 4, 1-27-93)
See. 3.02. Appointment [of Charter officers].
The Charter officers shall be appointed by the city council and serve at the pleasure of the
city council subject to the provisions of section 3.03 of this article.
(Ord. No. 0-88-43, § 14, 1-11-89; Ord. No. 0-91-29, § 1, 1-8-92)
Sec. 3.03. Removal of Charter officers.
(a) Any Charter officer may be removed from office for cause by a majority vote o£ the
entire city council.
*Editor's note-Section 14 of Ord. No. 0-88-89, adopted January 11, 1989, repealed
former Art. III, which contained §§ 3.01-3.05, and enacted a new article III to read as set out
herein. The repealed article pertained to similar provisions and derived from the Charter
adopted by Ord. No. 0-78-9 on October 19, 1978.
Supp. No. 2 CHT:15
§ 3.03
SEBASTIAN CODE
(b) In the event that one or more council members believes that cause exists for the
removal of a Charter officer, such council members shall present written charges to the entire
city council at a regularly scheduled meeting for discussion. The city council may, by a vote of
at least three (3) council members, charge the named Charter officer with misconduct and
immediately suspend such Charter officer from office. Notice of the suspension and the specific
charges of misconduct shall be served upon the affected Charter officer in person or by certified
or registered mail, return receipt requested, to the last known address of the affected Charter
officer. The suspended Charter officer shall have the right to a hearing before the City Council
upon request. The suspended Charter officer shall be given a reasonable period of time in order
to prepare for such hearing. At the conclusion of the hearing, the suspended Charter officer
shall be removed from office if the City Council finds, by a vote of at least three (3) council
members that cause exists to support such removal. In the event that at least three (3) council
members do not find that cause exists for removal, the suspended Charter officer shall be
immediately reinstated to his or her Charter office.
(Ord. No. O-88~43, § 14, 1.11-89; Ord. No. O-91-29, § 1, 1.8.92; Ord. No. 0.93-02, § 5, 1-27.93)
Sec. 3.04. City manager; powers and duties.
(a) The city manager shall be the chief administrative officer of the city.
(b) The city manager, when necessary, shall appoint, suspend, demote, or dismiss any city
employee under his jurisdiction in accordance with the law and the personnel rules of the city
and may authorize any department head to exercise these powers with respect to subordinates
in his respective department.
(c) The city manager shall direct and supervise the administration of all departments of
the city except the offices of the city clerk and city attorney. He shall attend all city council
meetings unless excused by city council and shall have the right to take part in discussions,
but not vote.
(d) The city manager shall see that all laws, Charter provisions, ordinances, resolutions,
and other acts of the city council subject to enforcement by the city manager are faithfully
executed.
(e) The city manager shall also prepare and submit the annual budget, budget message,
and capital program to the city council and shall keep the city council fully advised as to the
financial condition and future needs of the city, and shall make such recommendations to the
city council concerning the affairs of the city as he deems desirable.
(f) The city manager shall designate a qualified city employee to exercise the powers and
perform the duties of city manager during any temporary absence or disability of the city
manager. The city council may revoke such designation at any time and appoint an()ther
eligible person, other than a sitting council member, to serve as acting city manager.
(g) The city manager, as authorized by the city Charter, the Sebastian Code of Ordi-
nances, or by the direction of the city council, may sign all contracts, bonds, debentures,
Supp. No. 2 CHT:16
FORM 8B MEMORANDUM OF VOTING CONFLICT FOR
COUNTY, MUNICIPAL, AND OTHER LOCAL PUBLIC OFFICERS
I.AS'I'NAME I:IP, sI'NAMF. MII)I)I.E NAME
POWELL, LONNIE R.
mA..~n~; ADDREss
1225 MAIN STREET
CITY
SEBASTIAN
DATE ON WIIICH VOTF OCCURREI)
AUGUST 4, 1993
COUNTY
INDIAN RIVER
NAME O1: BOARD, ('OI. JNCII., COMMISSION, AU'rHORII'Y, OR COM MI'I'I'EE
SEBASTIAN CITY COUNCIL
'~'}IE BOARD. COUNCIl. COMMISSION. AUTHORrI'Y OR COMMI'I'TEE ON
WHICH I NERVE IN A UNIT OF:
[~1~ CI'I'Y [] COUN'I'Y [] OTHER LOCAl. AGENCY
NAME OE POLII'ICAI, SUBDIVISION:
CITY OF SEBASTIAN
MY POSITION IS:
EI.Et'I'IVE [] APPOINTIVE
WHO MUST FILE FORM 8B
This form is for use by any person serving at the county, city, or other local level of government on an appointed or elected board,
council, commission, authority, or committee. It applies equally to members of advisory and non-advisory bodies who are presented
with a voting conflict ot' interest under Section 112.3143, Florida Statutes.
Your responsibilities under the law when faced with a measure in which you have a conflict of interest will vary greatly depending
on whether you hold an elective or appointive position. For this reason, please pay close attention to the instructions on this form
before completing the reverse side and filing the form.
INSTRUCTIONS FOR COMPLIANCE WITH SECTION 112.3143, FLORIDA STATUTES
A person holding elective or appointive county, municipal, or other local public office MUST ABSTAIN from voting on a measure
which inures to his special private gain. Each elected or appointed local officer also is prohibited from knowingly voting on a measure
which inures to the special gain of a principal (other than a government agency) by whom he is retained (including the parent
organization or subsidiary of a corporate principal by which he is retained); to the special private gain of a relative; or to the special
private gain of a business associate. Commissioners of community redevelopment agencies under Sec. 163.356 or 163.357, F.S., and
officers of independent special tax districts elected on a one-acre, one-vote basis are not prohibited from voting in that capacity.
For purposes of this law, a "relative" includes only the officer's father, mother, son, daughter, husband, wife, fathcr4n-law, mother-in-
law, son-in-law, and daughter-in-law. A "business associate" means any person or entity engaged in or carrying on a business
enterprise with the officer as a partner, joint venturer, coowner of property, or corporate shareholder (where the shares of the
corporation are not listed on any national or regional stock exchange).
ELECTED OFFICERS:
In addition to abstaining from voting in the situations described above, you must disclose the conflict:
PRIOR TO THE VOTE BEING TAKEN by publicly stating to the assembly thc nature of your interest in the measure on
which you are abstaining from voting; and
WITHIN 15 DAYS AFTER THE VOTE OCCURS by completing and filing this form with the person responsible for
recording the minutes of the meeting, who should incorporate the form in the minutes.
APPOINTED OFFICERS:
Although you must abstain from voting in the situations described above, you otherwise may participate in thcse matters. However,
you must disclose the nature of the conflict before making any attempt to influence thc decision, whether orally or in writing and
whether made by you or at your direction.
IF YOU INTEND TO MAKE ANY ATTEMPT TO INFLUENCE THE DECISION PRIOR TO THE MEETING AT WHICH
THE VOTE WLL BE TAKEN:
· You must complete and file this form (before making any attempt to influence thc decision) with thc person responsible for
recording thc minutes of thc meeting, who will incorporate thc form in thc minutes.
· A copy of thc form must bc provided immediately to thc other mcmbcrs of thc agency.
· Thc form must bc read publicly at thc next mccting after the form is fi]ed.
CE FORM 8B - 10-91 PAGE I
275 Zane Ave.
Sebastian, Fl. 32958
August 3, 1993
~4r. Lonnie Powell
Mayor
City of Sebastian
Dear Mayor Powell:
It is my belief that anyone elected to the City Council has
a moral obligation to make the Council-Manager plan work
because it was chosen by the voters and should continue to
be supported until the voters choose otherwise.
For the five years I have been a resident of Sebastian,
there has been a continuous attempt to discredit the
Council-Manager form of government. (to0 often, the City
Manager also.}
I think it is time to stand up to be counted and so I say,
that if you do not want to SUppOrt the Council-Manager form
of government, you should resign!
The guilty ones know who they are. If their resignations
are not submitted on or before the second council meeting
for the month of August, I will begin circulating recall
petitions as soon as it is legally proper in early
September
I have enough promised support to assure getting this on
the ballot and hopefully will see its passage.
cc:Norma Damp
Frank Overbeck
Ed Miquelon
Carolyn Corrum
Robert Freeland
Sebastian Sun Press Journal
MEMO
To:
From:
Date:
Re:
City of Sebastian Mayor and City Council Members
Councilman Freeland
August 4, 1993
Removal of Charter Officer
Pursuant to Section 3.03 of the Charter of the City of Sebastian,
I hereby present facts which, I believe, constitute cause for the
removal of Robert S. McClary as city Manager for the City of
Sebastian.
The city Manager has failed to present a realistic budget and
has failed to recommend realistic budget revisions to Council.
The City Manager has failed to keep Council fully advised as
to the financial condition and future needs of the City.
e
The city Manager has failed to direct and supervise the
administration of the Finance department of the City. This
failure has resulted in failure to pay tax bills when due,
computation errors in budget summaries and confusion in the
operation of the Finance department.
The City Manager has failed to direct and supervise the
administration of the golf course resulting in two consecutive
years of losses, lay-off of employees, and the inability of
the city to make payment of debts when due.
Attached as Exhibit "A" to this memorandum is a list of more
specific allegations in support of the above-mentioned instances of
incompetence or neglect of duty by the City Manager, Robert S.
McClary.
Accordingly, City Manager, Robert S. McClary, should be immediately
suspended, with pay. A formal, independent, investigation with
regard to the above-referenced allegations should be conducted; and
a due process hearing should be set for the purpose of allowing Mr.
McClary to respond to these allegations.
In 1992 neither the budget summary nor the final millage
resolution were computed properly, which resulted in an error
of $97,274.00.
Failure to pay tax bills on time cost the City Taxpayers an
additional 25% for penalties and advertising.
Changed the line item numbering system to a non standard
system causing untold time for the new Finance Director to be
able to generate operating statements.
Computer glitches and account coding errors unresolved since
implementation of the new accounting system in February 1992.
Deterioration of internal controls due to changes in
processing of data input and computerized accounting system.
Inadequate cross training of staff in the use of the new
system hardware.
Lack of knowledge of the accounting system by the Assistant
Finance Director.
Excessive time spent on purchasing, risk management, and Golf
Course operations by the assistant director, with only minimal
time devoted to Finance Department duties.
Insufficient management review and approval of transaction
recording resulting in inability to reconcile bank statements
or prepare annual financial statement, W-2's and quarterly tax
reports.
10.
City Manager recommended 13% and 10% salary increases for the
Finance Director and his assistant, irrespective of the
department's poor performance.
11.
When the Golf Course bonds were refinanced last year the
October principal amount of $40,000 was skipped to bolster the
cash flow problems. The true loss of the golf course last
year was $146,000 rather than the $106,000 reported to the
City Council. The City Council was never told this was part
of the refinancing plan.
12.
Budget for golf course was unrealistic. Expenditures budgeted
were more than revenues projected.
13. Budget planned to spend excessive amounts of reserves.
14.
Budget revision presented to council was prepared as required
by Finance. However, the city Manager made no recommendations
to shift any projects to bring spending more in line with the
projected revenues.
EXHIBIT "A"
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15.
16.
17.
18.
19.
20.
21.
On July 14th, Council passed a budget revision. Both the Vice
Mayor Oberbeckand I asked to have some of the fat cut out by
the July 28th meeting. At the July 28th meeting the City
Manager did not recall the conversation, but said he would
review the tape.
On October 27, 1992, A1 Vilardi and I met with the Finance
Director and Assistant Director to discuss accounting methods
by the City. We had heard a rumor that the golf course was
losing money. We asked if the course was ahead, behind or
staying even. Mike stated that the course was behind and when
we asked how much, Larry stated about $60,000.00. Mike
corrected him and said it was $30,000.00. After a brief
argument, Larry agreed with Mike that it was approximately,
$30,000.00. A week later at the November 4th meeting, a
$30,000.00 loss was reported. This was the first public
acknowledgement that the course was in trouble. We later
heard it was $106,000.00.
In spite of golf course losses, Mr. McClary recommended a
survey of the cost to purchase additional land for another
nine or eighteen golf holes. This was recommended by Mr.
McClary at the same meeting the losses at the golf course were
made public.
The golf course manager spent money without regard for the
budget last year with the City Manager's approval even though
the revenues were insufficient.
At the April 7th meeting, I questioned the revenues being
behind and on April the 27th, Mr. McClary sent me an extensive
memo agreeing with my concerns. Then, on May 13th, he met
with some of the membership of the golf course to show them
how he could modify the clubhouse plans and expand it for
perhaps $150,000.00.
Mr. McClary's April 27th memo was full of excuses as to why we
were in trouble but did not outline any plans to fix some of
the problems. He did suggest that we should revisit the 1991
golf course evaluation when budgeting fiscal 1994. I brought
this same report to his attention at the November 4th meeting
and he should have been paying attention to it all along.
A contract was approved by City Council for $2,500.00 worth of
work to be performed by Mr. Mosby. To date, over $4,200.00
worth of payments have been made under this contract. Council
approval of the excess payments have never been obtain.
EXHIBIT "A"
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