[Calaveras County] Mayor: Misappropriations may not be as bad as projected

Angels Camp covered if ‘dishonesty’ is proven

Blog note: this article references a 2016-17 Grand Jury report on the issues.

The mayor does not think the potential misappropriation of public monies in Angels Camp is as bad as projected.

The potential losses could be closer to half of the $29,000 figure former city administrator Michael McHatten allegedly took from the city, said Angels Camp Mayor Scott Behiel Thursday morning.

The Angels Camp Police Department confirmed Wednesday that the California Attorney General’s Office is probing allegations McHatten took money from the city by cashing in administrative leave time he did not have from 2014-15.

McHatten, now the city manager for Soledad in Monterey County, did not respond to multiple requests for comment.

Behiel declined to comment on the investigation. He said the city is not “in the loop” with specifics of the investigation.

A news release from the police department said Wednesday that city staff was cooperating fully with the investigation and providing assistance when requested to expedite the probe.

The total amount McHatten may have taken is not known, Behiel said. It could range anywhere between $0 and $29,000. The city elected not to hire a forensic auditor because the situation is being investigated by the attorney general and the city’s insurer.

“We have employee dishonesty coverage,” Behiel said. “If there’s a loss and it is proven that the employee was dishonest, we would be covered.”

In McHatten’s mind, he does not owe anything to the city, Behiel said. If anything, the city owes him money, Behiel added.

“He said he did the calculations and said we owe him $1,200,” Behiel said. “His honest opinion is we’re square. If anything, the city owes him a few bucks. But he said he would not sweat it.”

It was from a 2015-16 audit report of city finances that the alleged $29,000 amount emerged. A Grand Jury report citing the same document said McHatten may have received payouts for 533 hours of administrative leave and only had 332.6 hours available, leaving a negative balance. He was only allowed to receive 240 hours maximum in payouts per year.

Also noted in the audit were reports that McHatten used a city-issued credit card for personal expenses as well as receiving two payment advances for two separate pay periods in a span of five days in September of 2015.

The latter two instances were resolved. Behiel said McHatten typically paid back credit card charges before the bills came due and the city had the paycheck returned as soon as officials noticed the discrepancy.

As for why McHatten was not dismissed from his position as city administrator before his departure in December, Behiel declined to answer. He did say McHatten was liked and respected.

“He was doing a good job,” Behiel said.

Representatives from the city of Soledad did not contact Angels Camp when vetting McHatten for the position, but it is not known whether it would have uncovered anything.

Behiel said the Grand Jury investigation into the city did not open by the time McHatten would have accepted the position in Soledad around October. The city would not have revealed financial irregularities even if they had discovered them.

“It was a personnel matter that we would not have disclosed,” Behiel said.

August 17, 2017

Calaveras Enterprise

By Jason Cowan