Bay Village Financial Audit

The subject of finances has returned.  It was discussed on another site in September and commented on recently here.  I will review for those that missed the discussions.

Pages 78 and 79 of the city's most recent financial report show material weaknesses*/noncompliance.  It was obvious that some had not read the report, just chose to defend it and questioned the meaning of such findings. The feeling was it could mean that a CPA or a bank teller made mistakes.  The mistakes then compounded by the fact that no one caught them.

The truth is in the report which clearly states this was intentional: "Client Response: It is my understanding per the former Director of Finance that the transfers were discussed and approved within the budgeting process in Finance Committee but however was not included in an appropriation ordinance for council approval."

As a red flag,  the findings in this report caused the state to go back and audit the previous year.

Some even commented -  so what this is common.  It may be common if they were mistakes, but this was done with knowledge of action. Some experts would argue this is systemic. It raises questions regarding intention and ethics.  The questions it raised for me were - why wasn't it presented to council as is required? On what authority was the decision made to bypass council? What were the concerns in getting an authorization from council?  What were the ramifications if council had not approved these illegal moves? Has it caused other problems?

*A significant deficiency in internal controls that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.  When one or more internal controls, put in place to prevent significant financial statement irregularities, is considered to be ineffective.

http://www.auditor.state.oh.us/auditsearch/Reports/2013/City_of_Bay_Village_12-Cuyahoga.pdf

"Bay Village Mayor Slanders Image Builders"

This came in as a comment but it deserves to stand alone also:

http://mcenteemedia.blogspot.com/2009/03/bay-village-mayor-slanders-image.html?showComment=1383178970357#c8343165959490671800

Charter Review - Question 3

Question 3.)  What is routine in the Mayor’s absence?

A Charter Review Committee member suggested the clause that states the 'President of Council shall become the acting Mayor in the absence of the Mayor' be changed to the Law Director since that has become the routine.

I am unsure what is meant by ‘routine’.  It is not routine in our surrounding communities. Avon, Avon Lake, Westlake, Rocky River, North Olmsted and Fairview Park all designate President of Council as the first order of succession. Since the President of Council in Bay “can elect not to serve as Mayor during a temporary absence, the Mayor shall designate a director.” Is the President of Council electing to not serve and the Law Director serving?  Maybe this is what ‘the routine’ refers to. The statement is unexplained in the notes. And yet, I can't find out who is serving unless I call to ask because...

In the end, it remains to “give the Mayor discretion to appoint a line of succession in the event of absence. . ” Further discussion was centered on the possibility of having that information posted and available to the public. It was determined that the Mayor’s Assistant would direct any inquiries from the public to the Acting Mayor, in the event of the Mayor’s absence. Based on this statement, it does not sound to me like it will be posted.  We have to ask. I have to ask, why?

http://www.cityofbayvillage.com/media/100149/minutes_3-19-12.pdf

Facebook

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Charter Review - Question 2

Question 2.) Is it self-serving? Is it to limit the participation and challenge of Mayoral candidates? Was this an appropriate time to introduce the idea given the chronic discussion and outsourcing or downsizing due to budget cuts? Is it groundwork for the direction the Mayor wants to go in?

3-19-12 Charter Review meeting opens the door to forms of government. A City Charter allows flexibility to choose novel types of government structures. Mayor Sutherland notes that there are City Managers in and around the state. My research shows there are 4 City Managers in Cuyahoga County out of 57 cities. None from our neighboring west shore communities. The Mayor and Mr. Cruse who both know City Mangers state that they will invite them to come in and speak to the commission.

This administration has steadfastly stated its positive results and accomplishments under the current Mayor and Council form of government. Yet the feedback in the room seems interested, positive regarding this idea.

4-2-12 meeting, the Mayor gives a Power Point presentation defining a City Manager form of government. Including:

“City Managers are compensated on a contractual basis. The average length of stay is five years. It is very competitive and the urban/suburban compensation ranges from $120,000 to $180,000 annually, plus benefits. In some of the very rural communities it is more likely that it will be in the $75,000 to $100,000 range"

In the end, the current form of government was not changed. For now. I have more questions.

http://www.cityofbayvillage.com/media/100149/minutes_4-2-12.pdf

The Mayor and the First Amendment Lawsuit

Many residents of Bay Village may not know that the second highest court in the country (the U.S. Court of Appeals, which sits under the Supreme Court) held that Mayor Sutherland may well have violated the First Amendment in suspending a fire fighter who publicly criticized her in a council meeting.  Here are two online summaries of the case -- summary 1 and summary 2 -- and the actual opinion is posted in its entirety here. 

In this case, decided in 2011, the U.S. Court of Appeals held unanimously that the fire fighter’s claim against Mayor Sutherland deserved to go to trial.  Specifically, the firefighter made a strong legal case that his fundamental right to free speech was violated when she suspended him after he raised criticisms about whether the public’s safety was being adequately protected by the City after the tragic drowning of a young boy off the Bay Village coast.  After the Court of Appeals sent the case back for a full trial on this First Amendment violation in 2011, Mayor Sutherland settled the case.  (It isn’t clear how much Sutherland paid to settle, nor whether the money came from tax coffers…..  This isn’t to suggest this litigation was supported by residents’ dollars – the information just isn’t available to illuminate these questions).

Our nation’s Bill of Rights makes it clear that government officials cannot penalize employees who, in their capacity as citizens, raise questions or voice criticisms against the government.  If this kind of retaliation were allowed, then those who work for the government as civil servants would be turning over their right to speak freely as citizens; exactly the kind of tyranny that our founding fathers and revolutionary heroes worked so hard to fight against.   What is even worse, if mayors and other government officials can threaten employees with the loss of their jobs every time they raise questions about their leadership in their capacity as citizens, then government officials could bully employees into silence and control the information that reaches the public.

I suspect that few Mayors in the country have this kind of negative line on their political resumes – a unanimous opinion from the U.S. Court of Appeals holding they may have violated the U.S. Constitution in their treatment of City employees.  At the very least, Bay Village residents should know about this important First Amendment case in deciding how to cast their votes next week. 

Charter Review - Question 1

In 2012 the Charter of Bay Village was reviewed for updates, amendments, revisions. The commission appointed by the Mayor, reviews the entire Charter and is assigned specific sections for revision and new sections for inclusion. The Mayor states because of the changing environment in the city, “it is important for the city to have the flexibility to set up the administration as it sees fit.” The Mayor stated that this particular Charter Review Commission has the opportunity to transform the charter into a great, flexible document. The model charter provided by the Mayor contains that ability for flexibility.

Question 1.) Wouldn’t the concept of flexibility go against the point of having an established legal document such as our City Charter? We need to keep up with change and movement but isn’t Charter Review the time and place to update and set new norms in motion? Why the need for such flexibility? The flexibility reference comes up many times in these meetings. Keep in mind this statement – “for the city to have the flexibility to set up the administration as it sees fit.” I believe this comment lays the groundwork for Question 2.

http://www.cityofbayvillage.com/media/100149/minutes_3-9-12.pdf

Kennel and Animal Control Officer

Hot topic!  – Animal Control Officer & Kennel 

The current administration has said that the city doesn't get many animal related calls.  A most recent public records request for the Animal Call Sheets reveals that there were 55 calls made.  There are times when it is over 100 a month. Do you really want the police force to continue handling these situations?   The City needs to lead in finding a solution, making it a priority, instead of tossing hands up and repeating how they tried.  Often times I notice when people say something negative about the current Mayor, her supporters will comment ‘oh just admit it’s personal’.  In all fairness, this is a case when the Mayor needs to admit it’s personal.  She has lost sight of the importance in this issue because of her feelings about the people involved in the kennel. 

You can hear the audio of a meeting between the Mayor and Friends of the Kennel and read more on their site:  http://friendsofbayvillagekennel.com/

City Operational Review

Our city meets a lot of basic requirements and gets routine issues right.  Interesting to me, the issues some citizens lament, our city employees also lament. The following is taken from Review of the Operations of Bay Village.   Prepared by the Center for Public Management, College of Urban Affairs.

“While some aspects of the city communications program are commendable, some employees feel disconnected, uninformed, and underappreciated. This sentiment applies to their relationships with their immediate supervisors, the administration, and council. This has contributed to a decline in morale and in some departments and may result in lower productivity.”

“Several employees expressed that communication does not flow sufficiently between employees and administration, and that they do not feel they receive enough information about what is happening in the city. Some indicate decisions are made that affect their jobs and these decisions are not communicated directly to them or the department.  When they do find out, the information came from residents or personnel from another department. In addition, some employees feel that directors, the administration, and/or council do not have an adequate understanding (and in some cases appreciation for the work done) of their jobs or departments. This has resulted in decisions in which jobs have been eliminated or people have retired and elements of those positions have not been assigned to others or those in the department are unsure who is responsible for handling those duties.”

“Several employees indicated that it would be helpful to have an impartial human resources staff member to provide guidance on staff-staff or staff-management conflicts and other human resources issues.”  (Under consideration is the hiring of an associate from our Law Director’s firm)

“The majority of job descriptions reviewed were inconsistent in content and format, with some missing important elements. “

New council members do not receive an orientation.

On the topic of Bay’s high percentage of emergency meetings.  “Bay Village has a high percentage of emergency measures, thus suggesting that all decisions were of an emergency nature – by definition necessary for “the immediate preservation of the public peace, property, health or safety.”  It is not a good practice to routinely sidestep spirit of provisions in the charter or codified ordinances, nor  is it a good practice to routinely conduct council business using emergency measures.

Refer to the report for detailed information:

http://urban.csuohio.edu/publications/center/center_for_public_management/BVOpReviewFinalReport031912.pdf

"Has he done a good job?"

Again for those of you that don't 'do' Facebook - to keep you in the loop.  I posted the same "Law Director" topic on Facebook.  Someone asked "Has he done a good job?"  My response was:

I feel the answer to that question is subjective. Maybe he meets job requirements by answering legal questions for the City and defending Bay’s lawsuits, in addition to oversight of legislation and code preparation.  Maybe his defense of lawsuits saves us money – maybe it doesn’t, how would we know if the Law Department isn’t submitting an annual report to Council as it is supposed to?  Again, if someone knows where I can find those reports through the years, I want to see them.  What are his performance reviews like?  Is he even subjected to performance reviews, and who reviews him? Is that public record?  If there are no reviews, why?  We have 3 part time people in our Law Department.  Another good question is can the Law Department be reconfigured and/or can someone else do the job as well or better for less?  The town does not have the opportunity to make that decision since this is an appointed position.

Law Director

Since someone else brought up the subject of the Bay Village Law Director here is what I know.  Most of which can be found in City Council Meeting Minutes. 

• 1982 Prior to a position in politics in Bay, the future Law Director tried to break the Cahoon will in order to build a Marina in Cahoon Park.  This venture would include boat docks, restaurants, shops and a causeway. 
• 1986 Ebert becomes a Councilman then is appointed City Law Director and switches from Democrat to Republican; Mayor Sutherland did the same after she became Mayor.  Flashback to the 70’s when Mayor Cowles told an employee that becoming a Republican was a requirement.   This appears to be true. I have to ask: Why?
• 1992 The City tried to break the Cahoon will.  The City took it to court where the suit lasted until 1995.
• 2004 The Mayor hired Kent State Urban Design to plan a shopping area to connect Bay Square with Dover Junction.  The proprietors of the existing shops found out much later that such a plan was being drafted.
• I believe these issues, especially the Cahoon Will, will resurface. I see a recurring theme.  Can anyone else read between the lines?
• Another individual reported a 6 figure salary for the part-time Law Director.  The ordinance for compensation reads  “In addition said Law Director or his law firm shall receive additional compensation at an hourly rate as shall be approved by the Mayor  upon statements duly rendered for services..”  Hourly rate in addition to a salary.  What is the hourly rate?
• The Law Department should be issuing an annual report to City Council.  I've been unable to see that report but if someone can produce it, I'd like to read it. 
• Why isn't the Law Director an elected position?  How was the decision to place it on the ballot blocked?  Were City funds spent to keep it off the ballot?
• It has been proposed that the City hire an HR Consultant.  The person under consideration is the Human Resources Manager for the City of Westlake and an associate at the Law Firm of Seeley, Savidge, Ebert & Gourash.                                                                                                                    

Mayor 101

• Remind yourself often it takes a village.
• Discuss public issues in a public forum.
• Remember the citizens pay your salary. Speak to them and listen to them with the same respect you would any employer.
• When your opinion or agenda is opposed, this is an opportunity to discuss and learn and counsel, not a reason to suspend or fire.
• When attending council meetings, give the speakers and audience your full attention.  Put the ipad, laptop or other electronic gadgets away.  Not everyone is interested in sports, if they were they would be attending or home watching the game.
• You can’t have an open door policy with a closed mind. Open door policy is moot when decisions are already made.
• If you see a van in front of your house in the wee hours, or any hours, get a plate number, call the police.   If you do not do that you put yourself, your family, and your neighborhood at risk.  If no one is identified, captured, arrested, and charged, you are not in a position to name individuals you thought might have been involved.                                                                 http://www.cleveland.com/bayvillage/index.ssf/2013/09/bay_village_mayor_deborah_suth_12.html

Bay Village Issues

My answer to the question: What do you think is the most pressing issue facing Bay Village these days? Finances. Bay Village is not alone when it comes to pressing issues of finances.    It is easy to make cuts. The difficulty is to maintain, increase and generate revenue.   This is most pressing and therefore cannot be separated from other issues.

Lack of vision for our citizen base of all income levels.  Lack of nurturing the sustainable middle class neighborhoods.  Elitism when organizing committees. We aren't flush with commercial revenues so we are more vulnerable and need to be more entrepreneurial and less political.

Has the city explored creative options to generate income? 

Adopt a road, City sidewalk sale, better utilization of community gym.

Focus groups to lure and fill business gaps.  Focus groups to brainstorm anything.  Our students would be excellent resources for ideas because they think outside of the box.

What about forming a small cooperative movie theater in the empty lot on Wolf since we can’t go to the pool on Sundays, rainy days or year round.  Or if the underground work is there, attracting another small gas station?

Make Bay Days better.  It gets thinner and pricier every year.  How can the city make more money from this event?

Stop with the large cost studies. Do your own homework.  Go after more grants, more volunteerism.

Attract new businesses with minimizing risk to existing businesses.  Generate more support  and awareness for existing businesses and local groups. Why isn't the Village Foundation better supported?   How many residents know it exists and its mission?  I took an impromptu survey of only 10 people I knew in Bay.  8 had no idea – why is that? 

Can the town have a fundraiser for itself?

Is the city paperless for employee time sheets and pay stubs?  How about offering interested employees unpaid days off?  3 to 5 a year?

Can the Mayor pass on a raise?

Have service vendors been approached for discounts?

For many reasons our residents are not involved or concerned. 

A derisive attitude from the Mayor.  Disregard for public opinion and the voting process.  Of which I find highly insulting.

http://www.cleveland.com/bayvillage/index.ssf/2012/11/bay_village_mayor_deborah_suth_3.html
In November 2012 the city voted against regionalization.  Sutherland stated she would go forward anyway and added: “ Sutherland said she did not interpret the defeat of the ballot issues as a rejection by voters of the concept of regionalizing city services. Instead, she expressed her belief that voters were confused by the ballot language.” “Unless the voters actually took the time to thoroughly read the material that was provided to them via the city publications, I think it was very confusing.” When voters are confused by an issue, normally they vote against it, she said.

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Village Issues

Miscreant2013October 15, 2013 at 7:35 AM

Interesting thought. What do you think is the most pressing issue facing Bay Village these days?

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