Mayor’s Weekly Update
March 5, 2011
Last week’s update was a bit too predictive with regards to tornado and bad weather preparedness. Thankfully, we dodged a big bullet here this time. But it was a good indicator of the coming issues with spring weather. I hope that everyone takes the time to prepare.
I wanted to address the issue of land lease at the City’s Industrial Park. Frankly, we made a mistake, a major mistake, and as Mayor, I am the one ultimately responsible for that mistake. As such, I have directed some immediate corrective actions to ensure that such a mistake is not repeated. The primary and immediate action is full and complete compliance with the Councilapproved purchasing and contracting policy for the City of Lebanon. No exceptions, period. If we correctly and completely follow the processes and procedures we have in place, we will not place our City in such an embarrassing position again. And that is my direction to the City staff.
To our citizens and more importantly, those individuals that were involved in this deal, my sincerest apologies on behalf of the City of Lebanon.
I received several requests this week to respond to the criticisms leveled at me by this recall effort. Following is my response to those criticisms.
Police Department Cover Up: The first statement concerns a “cover up” at the Police
Department. There simply was no cover up – end of story! A review by the County
Prosecutor’s office confirms this (Council was provided a copy of his letter so stating). The
Missouri Highway Patrol is also reviewing the allegations for a second time. It is fully expected that the MHP’s report will indicate the same as the County Prosecutor’s review did, a properly handled personnel issue.
The Council has seen all of the facts and is fully aware that no cover up ever existed and that all of the City’s personnel policies and procedures were correctly implemented and followed. These are personnel matters that are not releasable to the public under the Sunshine Law. Release of this information to the public could very easily force the City into a very costly lawsuit situation.
I and the City staff are trying hard to avoid this situation but continued release of personally identifiable information (contrary to the Sunshine Law) and playing out of personnel matters in the press will only serve to draw the City further into a legal mess.
OBSTRUCTION OF SPECIAL COUNCIL MEETING: As for obstruction of a special council meeting, there was no special council meeting. The five members of the Council that met on Tuesday, January 25 th did so in violation of the Sunshine statutes. The Council was informed of such by letter from me to Mr. Anthony; a copy of which was hand delivered to each member of Council prior to their well documented, media covered meeting where they had a quorum and publically discussed (and perhaps decided) City business. The Missouri Attorney
General’s Office is currently investigating these violations.
Adding personnel to the City staff is a very true statement. A number of critical positions within the staff were undermanned and work was simply not being accomplished because of gross work overload. This is an unacceptable situation that had to be corrected to prevent the numerous issues that were raised by the 2008 State Audit of the City and to meet increasing service demands from citizens and businesses. But what is not pointed out is that since 2008 the City staff has been reduced by 52 employees resulting in a net savings of $394,378.00
in wages and
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Mayor’s Weekly Update
March 5, 2011 salaries annually. When employee benefits and federal and state employer taxes are factored in, an annual savings of $552,129.00
to our citizens and taxpayers is realized.
Electric Service Agreement: The City of Lebanon did enter into an electric service agreement with MoPEP (this was approved by a unanimous vote of Council). There was a clear and very real need to quickly locate a wholesale electric service provider for the City. The reason was simple, the City’s then electric service provider, ShoMe Power, had informed the City of their plans to begin removing municipalities from their service grid. The City staff conducted their analysis and found that the best alternative available was MoPEP. The City did move relatively quickly to separate from ShoMe and as events would prove to be correct; this was a prudent action as ShoMe Power provided notice to their 13 remaining municipal customers that their services would be terminated in 2013. While these municipalities are looking for a wholesale electric service provider, the City of Lebanon has secured wholesale electric service at competitive rates and is not scrambling to find such service as these 13 other municipalities are currently doing.
The statement that the City has incurred a $43 million debt is simply a false statement. As part of our agreement with MoPEP, the City has assumed a proportional share of MoPEP’s debt.
This debt is shared by the 35 cities of MoPEP. This debt is being paid like any other utility would pay for its debts; sale of electricity to customers. Our proportionate share is $1.3 million, which is guaranteed by our electric reserve but is being paid for by revenues generated from the sale of electricity. The City currently enjoys relatively stable electric rates as a result of this prudent move. As with any other business MoPEP conducts regular studies and analyses to determine if their rate structure provides sufficient revenues to pay for the cost of service, repair or replace infrastructure, and provides for reserves to continue to expand service capabilities. On an annual basis the Board of Directors meets to determine if a rate increase is required and if so how much. As a member utility, the City of Lebanon has a seat on the MoPEP Board of
Directors. This is something we did not enjoy with ShoMe Electric.
Simply put, this is no different than the price paid for services or goods anywhere – a portion of the price you pay is used to pay the debts of that company. If I buy lumber from Lumber Store A and they have debt associated with building or operating their business, then part of the amount I pay is because of that debt. The City had no choice when it came to remaining with ShoMe. We moved from ShoMe to another provider before ShoMe terminated services.
Cowan Civic Center Capital Improvements: I did not cancel a $4.5 million dollar capital improvements project for the Cowan Civic Center. The City Council voted to cancel this project. I cast the tie-breaking vote to cancel this project. Members of the media should take care not over simplify and thus misrepresent this issue. Presenting the issue in its entirety provides a clearer picture and better understanding of why I cast a tie-breaking no vote here. The
State Auditor’s report showed that our Civic Center was requiring close to $800,000 annually in tax subsidies to operate. That is $800,000 above the revenue it was generating. That money came from the general revenue fund. It was competing with other critical needs of the City. The proposed expansion project built non-revenue generating facilities that added even more expense to the operating costs of an already losing proposition. The plan before Council would also have required borrowing not only for the construction but also for operating funds. The annual debt
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March 5, 2011 service would have been in excess of $1 million with interest payments of approximately
$600,000. This simply didn’t make sound economic or business sense. Again, to put it simply, we were robbing Peter to pay Paul and the whole family was suffering.
What did make sense was a pay for it with cash approach. This concept has been articulated in the City’s Strategic Plan and in the 5-Year Plan, both of which have received Council approval by Council resolution. These plans include capital improvements to the Cowan Civic Center which involve projects that will create revenue-generating improvements to the Civic Center. In short, bricks and mortar improvements to the Civic Center are planned but only after we have the money in hand to pay for it; a much more prudent expenditure of your tax dollars.
Police Department Equipment Purchases: As to buying police cars, software, and gun racks, this is an apples to oranges comparison. Our police patrol car fleet is worn out with an average age of over seven years and mileage in excess of 80,000 miles. Our police officers spend 12 hours a day in those vehicles. They deserve safe and reliable vehicles to operate. Our citizens deserve vehicles that provide the best fuel economy possible and the protection of a manufacturer’s warranty to maximize the value of their tax dollars. The current batch of new vehicles was purchased from un-obligated funds of the expiring 1995 ½ cent capital improvements tax. Future vehicles will be purchased from the 2010 ½ cent capital improvements tax until the entire fleet has been replaced. After that occurs, annual replacement will be covered under a vehicle rotation plan that includes re-sale of those vehicles being replaced. The net is a cost savings to the taxpayer. The purchase of software and in-vehicle data terminals was funded by a federal grant as were the shotgun racks and other safety equipment.
“Duplicating” Office of
Emergency Management (OEM): The creation of a “duplicating”
Office of Emergency Management is simply a false and very misleading statement. The City of
Lebanon is obligated and required to be able to control, manage, and direct its emergency services in the event of any catastrophe within our City. The City of Lebanon has created an emergency management organization responsible for the preparation and implementation of emergency management functions for our jurisdiction in accordance with Chapter 44, RSMo and the State of Missouri Emergency Operations Plan. As the largest single political subdivision and entity within Laclede County, the City is responsible for and must be able to respond to any emergency situation. The City provides support and services to requesting county agencies to include the Laclede County Office of Emergency Management. The City has a solid working and cooperative relationship with the County OEM but the City ultimately is responsible for its own assets. The City Code in existence prior to me becoming mayor established this requirement as well, Section 7-16, City Code of Ordinances: “There is hereby created a local disaster planning organization for the city which is responsible for the organization, administration and operation of emergency functions required to minimize and repair injury and damage resulting from disasters caused by enemy attack and to include emergency activities, except those functions for which the military is primarily responsible, in accordance with chapter
44 and the state survival plan and program.” These requirements are indicated in federal, state, and city laws and this is indeed a TRUE statement.
Communications Tower: I did not tell Council that the new police communications tower was mandated by state law. First and foremost, the communications tower project is NOT just a
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March 5, 2011 police communications tower. It is an all-City services communications tower of which the
Lebanon Police Department shares a portion of the services. The tower is critical to providing full communications coverage of our City to police, fire, and public works personnel and crews.
Secondly, what I did say was that the Federal Communications Commission (FCC) did mandate changes to the emergency communications frequency bandwidth which is supported by this tower project. These mandates have been articulated in this exact verbiage by the Director of the
Laclede County OEM, the FCC, and the State Emergency Management Agency and are very true.
Airport Expansion Project: The Airport Expansion Project involves monies in the form of grant funds that will provide for the purchase of property to support the expansion of our airport.
I did not state that the Missouri Department of Transportation (MoDOT) would buy or condemn the land required. I did state that MoDOT would be involved with the process as would the
Federal Aviation Authority (FAA) and that there are explicit rules that would have to be followed in the process.
Chief Brauer’s E-mail; As for the statement that at the time I informed Council that I had not read Chief Brauer’s e-mail to the LPD, I had not. I had been informed of some of the content but under advice of personal legal counsel, I had not read the e-mail. I have since read that e-mail.
While Chief Brauer’s choice of words is regrettable, I fully understand his frustration with several Council members as they chose to ignore the legal advice given to them by the City’s legal counselors and made decisions that place this City and her taxpayers into a potential legal quagmire and the resulting expense which we are now faced with.
Dispatcher Issue: I told the Council that the Missouri Highway Patrol had determined that no crime had occurred. This is a fact. The Missouri State Highway Patrol reviewed the facts surrounding the issue with a LPD dispatcher and had determined that no crime had occurred under Missouri law. As the Highway Patrol did not find a crime or evidence of a crime a criminal investigation was not initiated or conducted. Because of this fact, the Highway Patrol requested anonymity of the individual making this determination. We had no choice but to respect that request. Since this time, the Missouri Highway Patrol, at the request of the Laclede
County Prosecutor’s Office, has initiated a further review of the issues surrounding this matter.
To my knowledge the Highway Patrol has reviewed the associated documents and conducted interviews. We are awaiting the findings of their inquiry.
Respecting Citizens: Anyone that attends Council or watches the proceedings on Jacket TV can see that I treat all of our citizens with the courtesy and respect that they are due as citizens and even non-citizens of our City. While I may disagree with members of Council and am willing to engage them in sometimes heated debate, I always afford them the respect of their office as well as simple common courtesies that they are due as people. The use of Robert’s Rules of Order has been the guiding rules of Council well before I was elected mayor of the City of Lebanon. I can empathically state that I have never told a citizen to “shut up and sit down” nor have I ever stated that I was the “sole boss” of Lebanon as my predecessor did. Frankly, I’ve received more comments and complaints about the way citizens and members of Council are allowed to present themselves. At the last Council meeting alone, citizens were hostile and one was even aggressive to the extent that he pointed his finger at me as well as members of the audience who
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Mayor’s Weekly Update
March 5, 2011 had the audacity to express their point of view. Another expressed that he wished that I would die as he walked away from the podium.
Attorney General Inquiry: As has been pointed out, the Missouri Attorney General’s Office has initiated an inquiry into the City’s open government policies. What not pointed out was that this inquiry was initiated at the request of the LDR’s editor and that the Attorney General’s
Office has determined that each allegation made was without basis or merit and as such the inquiry has been closed.
Opinion or Personal Attack?: Almost every Sunday for the past three years the LDR opinion writer has been criticizing this administration at every step of the way, claiming the sky is falling on a weekly basis. The LDR has advocated a return to a City government that was fraught with mismanagement and ineptness as evidenced by the State Auditor’s Report on the City of
Lebanon in 2008. Despite the unjustified and baseless claims, this City has grown even during a major recession. We have added retail and industrial jobs. As reported in the LDR, the City of
Lebanon has grown by over 19% in the 10 years since the 2000 Census. We exceeded the
County’s 9% growth rate. We have reduced City expenditures to the point where we keeping budget expenditures below actual revenues. This is a feat that not very many municipalities in
Missouri can claim. This fact is evidenced in our City’s credit rating of A.
Next City Council meeting will be held on Monday, March 14 th at 7PM in Council Chambers,
City Hall, 401 South Jefferson Street. Please do join us.
If you wish to make a comment, ask a question, express a concern, or make an appointment to speak with me; please feel free to e-mail me at mayor@lebanonmo.org
or call City Hall 417-
532-2156 for an appointment. If you would like to join us for Friday Coffee with the Mayor, please call the same number and ask for my assistant to reserve your space. Space is limited due to the size of the conference room.
Respectfully,
CP Craig
Mayor
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