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By TOM SOMERS - Published: October 15, 2009

The elected leaders of the City of Montpelier lost $400,000 of taxpayers' money. Over the course of three years they have developed a tale whereby they bear no responsibility, where there is no accountability, whereby a heartfelt "sorry" and "hopefully we will learn from this" wipes the slate clean. I don't think so. Our councilors and city manager are not third-graders, and we are not fools. Perhaps the next time my property taxes are due, I will send in a little note to William Fraser saying, "I am sorry, gosh, I lost the property tax money speculating on maple syrup in Saudi Arabia. Hopefully, we can learn from this." Had they been directors of a corporation, they would have most certainly have been sued in their personal capacities for restitution of the money. Had they been CEOs of local banks or credit unions, they would have been run out of town.

But these city councilors and city manager act as if they are above reproach. The council members are astonishingly and embarrassing full of malarkey when they explain how they lost $400,000 without responsibility. It is as if some invisible demon or, better yet, a team of zombies snuck into City Hall and cooked the books. Sadly, this is not true.

First, Mayor Mary Hooper condescends that there is a "decision tree." Oh my! We all know that Hooper is pointing a finger of blame at William Fraser, who has managed our fair city for years, and sits atop this purported "decision tree." Second, there is Councilor Tom Golanka, in his best Sgt. Schultz impression, saying he really doesn't know whether the right decisions were made. One can almost hear the reruns of Hogan's Heroes in the background with the hapless Schultz muttering, "I know nothing. I see nothing." Councilor Jim Sheridan, in another profile of courage, states that he wanted to go public with this chicanery, but the other councilors would not let him. Does Sheridan lack the courage of his convictions? He had every right and duty to blow the whistle on his colleagues.

The best is left for last. City Manager William Fraser used taxpayer money to buy a full page of this paper to write a defense worthy of the Plato's apologia. He answered the questions he wanted to answer, but left a number unanswered.

For example, why did the city contract with an impecunious contractor from Newport? Wasn't the merest background check performed on this company? Why was someone so plainly incompetent writing checks of this magnitude unsupervised? While Fraser assures us that measures have been taken to prevent this kind of negligent supervision and management from happening again, why wasn't such a mechanism in place three to four years ago? Because Fraser was not on the ball, that's why.

And the City Council, so confident in Manager for Life Fraser failed to properly supervise him.

Why has the city not sued the accounting firm of Sullivan Powers & Co., for not even noticing the huge overpayment to the contractor in its annual accounting of city books? That is why Sullivan Powers & Co., presumably has insurance: because people make mistakes and insurance is a business necessity for operations dealing in large amounts of cash.

Which brings me to the next inquiry: why wasn't the individual writing the checks properly bonded and insured? The answer of course is obvious. Fraser failed to properly supervise city finances, was grossly negligent in failing to do so and should be fired.

The council apparently had no clue what it was doing in trying to get the money back from the contractor, and then hid the scandal from the public under the pretext of trying to stop a run on the contractor's assets. There is no doubt that anyone who was a creditor of the troubled contractor's was already making a run on his assets. This council does not appear to have enough sense to manage this city with any hint of competence or integrity. If the council members had any sense of honor at all, they would have all resigned. Honor is a scarce commodity among cronies.

Finally, all of this leads to two final questions that we need to answer: what else has the council hidden from us? and how much money has been lost in other acts of incompetence?

The late H.L. Mencken, a keen observer of politicians, once wrote that, "democracy is the theory that the common people know what they want and deserve to get it good and hard." Mencken is right, yet again. Montpelier can do better.

Tom Somers is an attorney who lives in Montpelier.








READER COMMENTS


I support Jim Sheridan. He is the ONLY one that wanted to go public right away. He did go along after a great deal of peer pressure and threats to never support him in the future. So, he is not perfect. He is also not a trust fund baby nor married to a wealthy spouse. He has attended every city council meeting since he took office. Unlike everyone else Jim grew up in Montpelier. For years he has been a solo voice of moderation amongst an ultra-liberal tribe.

Real responsibility lies with the city manager. He is paid a small fortune for managing a very, very, very small "city." He isn't doing as good a job as he should.


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-- Posted by Olde Man on Fri, Oct 16, 2009, 8:09 pm EST

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Mr. Somers is totally correct in his conclusions. There is PLENTY of blame to go around and Mr. Sheridan shares in it. In the past he has not so much as winced at any community criticism aimed at any of his comments. Why should have he hidden himself now? I'm sure the record will show, if there is any, that he was in support of the actions taken that resulted in the loss of the funds. Yet, he continues to wrap himself in a self congratulatory blanket and insist he was a lone dissenter..
They were all there and acted as a body, so take your lumps forget trying to continue to BS the public, the jig is up..you lose...
-- Posted by CJ maloney on Fri, Oct 16, 2009, 7:29 pm EST

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Some body, the reason why your not an lawyer is clearly your an idiot. Why shouldnt they be punished? Without negative reinforcement, they will not learn. They should all quit out of respect for the community. They have lost any and all credibility they once had.

What I want to know, Some "Lib", is why you willingly defend people who are proven to be incompetent, lied, and knowningly broke the law? You are clearly an obama minion. The fellow members of the comminity are not your enemy, it is the politicians who waste our money, who dont appreciate the hard work and effort we put in to earning a single dollar. Then, only after the government decides how much of OUR MONEY we get to keep, they waste what they kept. They blow it all. And idiots like you get off saying, "ah jeeze guys, they tried, it wasnt their fault they wrote out a check for $462,000.00 more than it should have been. Not only that, they failed to mention it to the people who actually footed the bill, US THE TAX PAYERS!

No I do not want blood, I want those who are responsibile to resign, that is the only way to ensure these goons dont blow any more hard earned money that is not theirs.

I do think the best way to make up the lost funds is to raise taxes, then maybe people will smarten up around here and stop voting for liberal idiots who couldn't balance a check book with $50.00 in the account, let alone a city budget.

ML
-- Posted by Jeff Perkins on Fri, Oct 16, 2009, 5:42 pm EST

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Now children be civil! Labelng each other on a blog is pretty jeuvenille and epecially if you are a practicing attorney .Your rahter pugnacious strident comment sad responses to beng calle out is not an answer? If you,the attorney, are as sensitive as you appear in your comments LORD HELP YOU in an elected position.I would recomend that you give that alternative choice some very serious thought and then hire a PR person to help you smooth out your vitriolic tongue. You may be a good attorney but your behavior and writing skills are not highly motivated to be concilliatory. For your infromation ,ttha tis hwy we have rubber erasers on teh end ofpencils .It is whenthe eraser becomes lnger than the pencil you have to worry. In your case, sir, even before you run for public office I am worried?
-- Posted by None None on Fri, Oct 16, 2009, 2:33 pm EST

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For one, I support Jim Sheridan's desire to go public and, when he was shot down with this idea, to have to live with it knowing what was going on. To paraphrase him he has to "live and work in this community too." It must have been awful.

While I agree with some of the incompetence and perfidy that Somers has laid out here, I disagree that this was deliberate "chicanery." I do agree with Somers that the city's accounting firm should be disciplined and fined for missing the blunder and the crime in its 05 audit. How they missed this is beyond the imagination. How someone wrote a check for $585,000 grand (rounded off) for an $86,000 is also beyond the imagination, but it was done and there is nothing that can be altered about it.

I understand the rational for trying to keep it quiet until the lost cash was recovered, though not sure that I agree with it, though I doubt that the councilers, Hooper, Fraser, and company thought that we montpeculiarites were all fools. Whether they hid it to cover their butts (Sheridan's desire to go public much earlier being the dissent) is an open question that I will leave to further developments for now.

I do agree with Somers' "impecunious contractor from Newport?" Low bidders aside, it is somewhat breathtaking that they hired this fool from Newport when there are so many, many contractors down here that could have done the job/jobs just as effectively and who probably would have returned a such a vast mistaken overwrite of a check.

"And the City Council, so confident in Manager for Life Fraser failed to properly supervise him."

Aside from the snide remark here about "Manager-for-life," how could the city council have supervised Fraser more than they already have without forming a committee to watch his every move or watching it themselves? Is not the city council a policy body rather than a supervisory body? And is fraser all that bad? I do not think so. But, there needs to be a mechanism in place to double check the checks going out.

This sad event is probably going to play out much further.
-- Posted by Watercloset on Fri, Oct 16, 2009, 1:46 pm EST

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While armchair quarterbacking after the fact may be satisfying, the truth is that it's very easy to judge the City's actions in hindsight - after all, we now all enjoy the benefit of knowing how this all works out.

However, if you put yourself in the position of the City officials *as this situation unfolded* then their actions are much more understandable. It's my strong belief that Mayor Hooper, City Manager Frasier, and the Council were acting in what they believed to be the best interests of the citizens of the city. Let's not forget that the benefit to the taxpayers of Montpelier was $115,000 in recovered money - 1/4 of the misappropriated funds, and money that the city would not have recovered if the City officials had gone public immediately.

It's very easy to fall into the trap of thinking that elected officials are all rich, greedy fat cats who ruminate endlessly about how to fleece the public. While there are exceptions to every rule, that is very far from the truth here in Vermont, and especially in Montpelier. Elected officials have an incredibly difficult job to do - they're charged with balancing wildly disparate interests and needs, and plotting a course that addresses all of those needs in a fair and equitable manner.

Heated political rhetoric about how "if I was in there I can tell you this wouldn't have happened" isn't worth the hot air that it takes to expel it - standing up when things go wrong, and taking a step back and addressing the issues so that they aren't repeated, now that takes leadership.
-- Posted by Rubin Bennett on Fri, Oct 16, 2009, 9:57 am EST

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I myself like the way Mr. Somers presented the facts very logical and detailed.
And can't help but come to the same conclusion.

People that claim Mr. Somers wants blood are trying to distract from the issue at hand.

..
-- Posted by A None on Thu, Oct 15, 2009, 7:12 pm EST

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Dear Some Body,
Why are you so very angry at me for expressing my opinion? Surely, I have every right to do so, yet your rant and personal attacks on my profession are hardly the stuff of either logic or persuasion. As far of not wanting anymore, I can assure you that you will get alot more of me and citizens like me who are tired of being ripped off by political cronies. Why don't you have the courage of your convictions and come out from hiding behind your pseudonym so we can know what your interests are in this mess? I suspect you are well connected to an interested party because it is the only thing that explains your fury.

Of course the issue is not revenge at all but accountability. That is something we all have to face in the adult world, even the Montpelier City Councilors and City Manager who are accountable to the taxpayers. Do you live in Montpelier? Do you pay property taxes? Do you know elderly citizens who scrimp and save to pay those taxes at the expense of medicine and food? Do you think it is just fine that Montpelier's Councilors can just lose that money without consequence?

I will allow others to debate your inexplicable vitriol against H.L. Mencken, one of the most influential writers of the 20th century. Say what you will about Mencken, but he is right in this case isn't he? Those of us who pay property taxes in Montpelier (do you?) are certainly taking it "good and hard" from our elected officials who think nothing of losing $400,000 and hiding it from the taxpayers for years.

With respect to Plato's Apologia, my reference to it flew over your head I suspect. If you read my article before going apoplectic, you would see that I thought City Manager Fraser's taxpayer paid defense was "worthy" of the apologia. Fraser wrote a fine, long article but he just failed to answer the relevant questions while dwelling on the questions he wanted to answer. By the way, Plato's apologia was an utter failure, as I suspect Fraser's apologia will be, as Socrates eventually drank the hemlock and committed suicide despite Plato's defense.

To attack my profession and my professional ability is like calling me names because you disagree with me. Adolescent in the extreme. I have practiced law throughout New England and in Washington, D.C. for over 22 years quite successfully and would be happy to match my logic skills next to yours anyday in a public debate. Maybe you and Andy T could team up.

Your rant is hardly persuasive and does nothing to advance a very important discussion. My best wishes to you whoever you may be. Tom Somers
-- Posted by Thomas Somers on Thu, Oct 15, 2009, 6:36 pm EST

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Dear Andy T, I can assure you that I am under a microscope every day practicing law before adversaries, judges, juries, arbitrators and my own clients. To answer your question, I may very well run for minicipal office after this debacle. To take the council to task for losing $400,000 of taxpayers' money is hardly being picky. Perhaps you would like to come out from hiding behind your pseudonym and let us know what your real interests are in this matter and if, as I suspect, you are connected to the relevant parties. We can then have a public debate on the issue on public access television or anywhere else for that matter. I look forward to meeting you and having a public debate. I am also quite interested to know if you pay a penny in property taxes in Montpelier my anonymous friend. Best wishes, Tom Somers
-- Posted by Thomas Somers on Thu, Oct 15, 2009, 6:18 pm EST

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I hope that Tom Somers does run for a city council seat. He is correct in his concerns and he has laid out those concerns clearly and fairly. Holding our public officials to account is our duty in a democracy. Granted, it is more difficult in a small community where the city manager is known to be a nice guy. But our tax dollars pay him well to provide leadership (financial and otherwise) for our city. If he hasn't been doing the job well, it is up to the people we elect to have the courage to do what is right for the city and its taxpayers. We are looking at only once incident. But are there other ways in which we have not gotten the leadership we deserve? And if so, how do we find out? It seems that our city council and mayor have fallen down on the job in overseeing how our city is managed.
-- Posted by Concerned Voter on Thu, Oct 15, 2009, 1:11 pm EST

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In my view the answers are quite clear. Although I think there was a huge breakdown in controls, I understand what and why it happened. I think we could have some compassion for what was happening in the public works dept. at the time the original mistake was made. That doesn't excuse those persons next in line to look at the documentation for being lax in the approval process.

As I said last night I have absolutely no compassion for Mr. Scott. His aggregious and possibly criminal actions are inexcusable. He must answer for his crime of using money that he knew was not lawfully his.

As for the accountants. Again as I indicated last night that was one lousy peice of auditing. At the very least Sullivan Powers should refund the city the cost of that audit. The explanations from them last night were hollow and did not explain why they performed a less than thorough audit.
-- Posted by Vicki Lane on Thu, Oct 15, 2009, 11:02 am EST

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Put your money where your mouth is Tom. Run for city council. Then we can put YOU under the microscope and see how your fare.
-- Posted by Andy T on Thu, Oct 15, 2009, 10:34 am EST

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.........."Which brings me to the next inquiry: why wasn't the individual writing the checks properly bonded and insured? The answer of course is obvious. Fraser failed to properly supervise city finances, was grossly negligent in failing to do so and should be fired...."

I thought the City Clerk/Treasurer was this very position? Glorified secretary? Who's signature is on the checks sent out from City bank accounts?
-- Posted by Are you Kidding? on Thu, Oct 15, 2009, 10:34 am EST

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SomeBody: I'm not taking any sides in this; don't know enough about it. I do want to point out, though, that some people use the word "revenge" while other people use the word "accountability". They really do mean very different things and I guess which word you use depends on your perspective.
-- Posted by Black Book on Thu, Oct 15, 2009, 8:40 am EST

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Piffle. There have been many answers. You do not like them. And the answer you really want is "Who is going to be punished?" You want blood, a pound of flesh. You are not alone. Revenge makes some people feel better. Especially if it convinces them that someone is at fault and bad things can be prevented. There is no guarantee, no magic that prevent bad things, accidents, mistakes. Schit happens.

Is this the kind of logic and argument you use as a lawyer? This letter is mostly ad hominem characterizations pretending to be argument. Do you KNOW that at the time of the contract that this company WAS "impecunious" and if not would you defend yourself against heir claim of libel?

Your reference to Plato confused me. Do you know that his apologia is generally considered to be a very good defense? But I do not have the sense you wanted to compliment the city manager. Are you a defense attorney?

I believe you either misunderstand or misuse the Mencken quote. He was an elitist. He had no confidence or respect for the common man or democracy. The common man deserve what they get from democracy and they should get it "good and hard". In this case, the quote could be used to say that the citizens of Montpelier are getting exactly what they deserve for their votes. That is, blame falls on the voters. Is that what you want to say? OR are you suggesting that in the future the voters should be voting for people who will be punitive, seeking to root out makers of accidents and mistakes and punishing them instead of seeking to solve/correct the mistake? If this is your point, then this quote will be perfect when people complain about a city government that is heartless and legalistic and litigious and makes money on new penalties. Like Mencken, I might tell them they got what they wanted and they got it "good and hard".

Please note, my questions are all rhetorical. Having read your opinion, seen your logic, and been confused by both your reference to Plato and use of Mencken; I do not want anymore.
-- Posted by Some Body on Thu, Oct 15, 2009, 8:16 am EST

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