Council reprimands Blase

City Manager Jan Blase received a reprimand by the Neosho City Council during a closed session vote Tuesday, alleging mismanagement of city funds.

Mayor Pro Tem Richard Davidson moved to issue the reprimand, with the stipulation that Blase be required to provide a formal written plan to recover and balance city funds and to properly itemize fund balances no later than Jan. 15. The motion was seconded by councilmember Heather Bowers and was carried unanimously.

“The need for this plan is critical,” Davidson said Friday. “Our city needs solutions — not excuses. I am hopeful our city leadership will present a plan that is clear, concise and provides a direct path back to financial stability. Anything short of that will not be successful.”

Blase has acknowledged using part of state transportation revolving assistance (STAR) loan funds earmarked to build two hangars at the Hugh Robinson Memorial Airport to pay city bills and make city payroll.

The state issued a $895,000 loan to build the hangars through the Missouri Department of Transportation. MoDOT auditors have been in Neosho to review city financial records as they pertained to the STAR loan, and are still conducting their review.

Additionally, Blase and city Finance Director Bob Blackwood have transferred a total of $611,900 from Neosho’s hotel / motel tax and TIF accounts into the general fund to cover city obligations. The transfer came despite ballot language which stipulates the funds would be used “for the sole purpose of promoting tourism.” By a 2-1 margin, Neosho voters approved the hotel / motel tax in August 2006.

In documents released to the public last week that were derived from an investigation conducted by Davidson and Neosho Mayor Jeff Werneke, Blase said excessive mold spores at city hall may have affected the two administrators’ judgment. This summer, he told the Daily News he and other employees had experienced respiratory problems, adding that he also experienced nosebleeds.

However, on Tuesday, Blase refused to comment on health problems he experienced due to mold, saying “my personal medical history is mine.” He added he decided not to move himself and other city employees to another building once mold problems were discovered because of cost issues.

According to documents recently released by the city, the total cost of mold remediation at the city hall building was $276,544.44, with the city’s insurance carrier, listed as “outside revenue” on the documents, picking up only $32,444.82. The city paid the remainder of the bill, $244,096.62.

In other business, the council:
 

• Granted unanimous approval to a contract between the city and Newton County Central Dispatch Center for dispatching and answering services for the city, including all computer networking interfaces with state and federal services.

The city has contracted with the county for dispatch services since 1995 for the complete service, which allows the city to be free from the expense and management of equipment and staffing. In 1994, the city spent $150,000 on its own dispatching. In contrast, the county’s contract for this year stipulates the city’s cost is $99,287;

• Unanimously approved a communication lease agreement with Stouffer Communications to lease tower space on the Washington Hill tower to install and maintain a high speed Internet antenna. Mike Hightower, director of public works, said Stouffer Communications would pay for all installation costs and electricity for the antenna, and would pay the city $150 a month for five years;
• Tabled a contract with Swift Construction for the paving of La-Z-Boy Drive until after a council meeting next month during which $425,000 in special obligation bonds to fund transportation projects will be considered. Mayor Pro Tem Richard Davidson said the paving measure should be postponed until it is determined the city has the money to pay for it.