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April 3, 2006

Letter to Garcia

Publisher's Note

This matter was discussed at the Alpine City Council meeting Tuesday night, April 4 by City Attorney Rod Ponton,
City Manager Chuy Garcia, City Councilman Avinash Rangra, and your Humble Author.

Email

"Mr Garcia:

We spoke last week (Thursday) concerning my TPIA of 3/20. I have done some additional research and I want to check my memory of our conversation early in the week before other crises impend.

You told me that Auditor Skinner briefed the “staff” the week prior to the 2/21 council meeting on the “reportable” items of the management letter.

(The management letter states that several of the six reportable items have been discussed auditor-to-staff since September 30, 2005.)

Skinner included an item (#6) “Employee Advances” in which he stated, “During the fiscal year, checks were written to the United States Treasury for delinquent income taxes owed by two employees.” The amounts cited were $3,136 and $1,907. There were no documents substantiating the transaction, said Skinner.

At the public meeting the term “loan” was used, but that part of Skinner’s report is not in the minutes of the meeting and I don’t recall who said it.

When we discussed this last week you characterized the transaction as “garnishment” and said it was not unusual. My discussions with others substantiates that the procedure is not unusual in transactions with the IRS.

On the night of Skinner’s presentation the City Finance Director, Ricky Chavez, said in the meeting, “I asked the manager (Karen Philippi), and that’s how we’ve done it in the past,” according to the Alpine Avalanche.

You said last Thursday that what was unusual in this is that the auditor reported it this year. I note in passing that use of the word “loan” also made the reference unusual in light of the theft from the city of more than $15,000 in 1993, a case which was investigated and two employees indicted. The term “loan” was used frequently in that case and there are numerous rumors/examples of previous such transactions here.

Skinner did not disclose the names of the two employees in his oral report, nor are the names provided in the management letter. I do not recall the names ever being mentioned in any city council meeting or document originated by the city. In fact, I published on the Nimby News web site in April 2004 a list of employee names and their “total pay” in 2003. That list was the result of a lengthy negotiation with then-City Attorney Steve Houston, Chavez and Philippi, and the city provided the listing. I quote from my publication, “The amounts are those reported to the IRS on standard forms … Though some of the forms are exempted from disclosure by Texas law, much of the information they contain is publicly releasable and the city has done so.”

I then had a lengthy and heated exchange of email with Philippi’s “assistant” Debra Cutting, who objected to the publication.

To the best of my memory, there has been no previous publication of IRS documents of and concerning employees here in Alpine until March 10, 2006 when Ms Linda Bailey Potter submitted an “Open Records request (sic)” for IRS documents concerning one employee. On March 14, 2006 she submitted a second request which apparently contains very explicit citations of city documents and records for both employees. I do not know but presumably Ms Potter obtained the information for her request from the city.

On March 20 I submitted a Texas Public Information Act (TPIA) request for Auditor Skinner’s records and for Ms Potter’s requests. On that same day, City Attorney Rod Ponton forwarded my request and Ms Potter’s requests of March 10 and March 14 to the Texas Attorney General. On March 27 I received copies of Potter’s requests. On March 28, Ponton provided me a copy of his letter to the Texas AG.

I neglected to ask last week but please tell me:

    Who, if anyone, authorized the public release of IRS return information to Ms Potter?
    Who (on the city staff) is responsible for the disclosure?

Thank you. Please respond by email if you have any comments on the above.

         /s/

Jack D. McNamara
Publisher"