WHAT WAS NOT PRESENTED TO BOARD OF DIRECTORS – BOARD DID NOT APPROVE The Legislative Auditors noted in their INVESTIGATIVE REORT dated February 26, 2014 “The city Manager signed an agreement that allowed the investor’s company to solicit bids and select contractors for the construction project. According to the City, the contractors selected were not instructed to provide invoices that clearly identified the cost to be paid by the City. As a result, payments of $4.14 million to the investor’s company for construction costs were not supported by contractor’s invoices or other documentation, as required by state law and accepted accounting procedures”. THERE IS NO RESOLUTION PASSED BY THE BOARD OF DIRECTORS AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT ALLOWING TEXARKANA HOTELS LLC (investor’s company) TO SOLICIT BIDS AND SELECT CONTRACTORS FOR THE CONSTRUCTION PROJECT. What is the state statute? Answer - § 14-59-105 (f) “A disbursement of municipal funds shall have adequate supporting documentation for the disbursement” Following the discovery of a withdrawal in the amount of $584,500 from Arkansas Texarkana Water Utility Infrastructure Fund by Harold Boldt without the knowledge and/or authorization of Texarkana Arkansas Board of Directors; I also discovered there had been funds paid to Texarkana Hotel LLC without adequate documentation. There also were numerous instances discovered in which Harold Boldt had failed to follow Texarkana Arkansas Code of Ordinance § 2-72 by dispersing funds in excess of $25,000.01 without acquiring at least three (3) formal, sealed competitive bids and having Board approval. On September 28, 2012 Harold Boldt was verbally instructed to acquire adequate invoices to justify expenditures of all monies which have provided to Texarkana Hotels, LLC and/or Crossroads relating to the City of Texarkana Arkansas Incentive Package and any other incidental expenditure. Mr. Boldt was further instructed to insure any future funds provided to any provider in excess of $20,000 must be presented to the Board of Directors for approval. On November 6, 2012 the verbal instructions of the Board of Directors above were presented to Mr. Boldt in a written document with specific instructions the adequate invoices to justify expenditures of all monies which had been provided to Texarkana Hotels LLC and/or Crossroads relating to the City of Texarkana Arkansas Incentive Package and any other incidental expenditure were to be acquired no later than November 30, 2012. On March 13, 2013 Harold Boldt authorized the disbursement of funds in the amount of $676,523.00 without seeking board of Directors authorization /approval. The invoices had not been acquired and/or presented to the Board of Directors when Harold Boldt left his position as City Manager on March 18, 2013. Harold Boldt and his supporters will try to convince you Resolution 5645 authorized the city Manager to enter into this “Joint Bidding Process” and disburse the $4.14 million; therefore all is OK. Resolution 5645 allocated / appropriated funds for incentives to Texarkana Hotel LLC not to exceed $6.25 million. Resolution 5645 DID NOT waive Texarkana Arkansas Code of Ordinance § 2-72; nor did Resolution 5645 authorize the city Manager to violate A.C.A. § 14-59-105 (f), plus Resolution 5645 DID NOT release the City Manager from seeking Board of Directors approval of any and all agreements BEFORE signing on behalf of the City. THIS SPIN THE BOARD OF DIRECTORS APPROVED EVERYTHING IS NO TRUE!!!!!
Posted on: Sun, 23 Mar 2014 03:26:27 +0000