Saturday, July 4, 2009

Colusa County Grand jury: Williams city finances in turmoil

Friday, Jul 3 2009, 7:08 pm
By Susan Meeker/Staff Writer

The Colusa County grand jury had harsh criticism for Williams officials with the release of its annual report.

Acting on a citizen’s complaint, the grand jury’s investigation uncovered misconduct by city officials, negligent management and questionable decisions by the City Council, the report states.

Williams Mayor Patricia Ash said Thursday she was not free to comment on the report, but that the City Council would discuss the matter at its meeting Wednesday.

The grand jury report details alleged improprieties and conflicts of interest involving Ash and current and former city finance workers. The full report is posted online at colusa-sun-herald.com.

The city circumvented its procurement process when it awarded a project to a contractor with ties to a city official, the report says. While not mentioned by name, Ash’s husband, Kevin, submitted invoices for painting and tile work at City Hall that totaled more than $8,000 for labor.

“Some witnesses we interviewed observed the mayor working with her spouse during the completion of the project,” the report states. “We were unable to determine whom the individuals were that allegedly received payment for services rendered.” The city typically uses a state-mandated competitive bidding process when awarding work that exceeds a $7,500 threshold.

The grand jury also found the City Council exercised poor judgment in the recruiting and selection of finance officer, Patricia Cervantes, who “did not have the appropriate credentials to operate in this capacity, as an officer who is responsible for a city budget totaling millions of dollars annually.”

The city eliminated the requirement for a college degree and professional accounting experience, even though it had applications from more qualified candidates. “We question why City Council members failed to voice any objections over the appointment of this individual,” the report states.

The grand jury alleged that the City Council also failed to adequately monitor its budget for most of fiscal year 2008-2009, including nine months when the city’s finance committee failed to meet.

“When the committee met in April, it realized that various city funds were either close to being overdrawn or contained less money than anticipated,” the report states.
Councilman Don Barker had made several requests to Cervantes for financial documents pertaining to city finances, according to minutes of the May 13 council meeting. He said Thursday that the documents he received were incomplete or inaccurate.
Cervantes has since been dismissed from her position, although the date of her departure could not be immediately confirmed.

Barker said he would not comment on the grand jury report until after the council has time to discuss it.

“At the first opportunity, I will have plenty to say,” he said.
The grand jury also questioned the city’s contributions to Citizens for a Better Williams, which was co-founded by Ash. Her daughter, Andi Armstrong of Williams, is CBW’s president.

The grand jury said Ash failed to recuse herself and voted to award several thousand dollars over a two-year period to the citizens group – a potential conflict of interest. After operating for five years, CBW did not become a tax-exempt nonprofit until this April, the report states, yet the city did not verify its nonprofit status or request records of its city-funded expenditures.

The grand jury concluded the city of Williams faces substantial challenges as it strives to remain solvent.

“The current situation of an interim city administrator (Williams Police Chief Jim Saso), who is also responsible for public safety, and a vacant chief financial officer position, leaves the city with a deficit of capable employees who can advise City Council on the best course to set towards stability. The City Council must act responsibly in recruiting qualified individuals for these positions, and it is imperative that they maintain adequate oversight over crucial financial functions,” the report states.

The City Council is set to appoint Charles Bergson as city administrator Wednesday, according to Saso. Bergson is expected to begin work Aug. 17 at a salary of $95,000 a year.

Contact Susan Meeker at 458-2121 or smeeker@tcnpress.com. Managing Editor Michael S. Green contributed to this report.


http://www.colusa-sun-herald.com/news/-3151--.html

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