Town of Hertford Town Regular Session Minutes Monday, September 13, 2021  6:00PM  Town of Hertford Community CenterIZOOM & Facebook  The Town of Hertford's Town Council held its Regular Session on Monday, September 13, 2021.  Mayor Earnell Brown called the meeting to order at 6:01 pm.  COUNCIL MEMBERS PRESENT Mayor Earnell Brown Councilman Jerry Mimlitsch. STAFF PRESENT QUORUM  Mayor Pro Tem Ashley Hodges, Councilman Frank Norman, Councilman Jackson, and  Town Manager Pamela Hurdle, Town Clerk Olga Simpson, and Attorney Ben Gallop.  With five (5) members, a quorum was confirmed. The invocation was offered by Councilman Mimlitsch.  Mayor Brown handed the gavel over to Mayor Pro Tem Hodges. 6:05pm.  ADAUSIMENTAPPROVAL OF AGENDA  Mayor Pro Tem Hodges confirmed the agenda in front of him was the agenda being used. Councilman Norman stated the Clerk was asked to take June 14 off the agenda. Councilman Councilman Norman made the motion to add August 9, 2021, closed session meeting minutes back on the agenda. Councilman Jackson asked for the question. Councilman Jackson asked Manager Hurdle who does the agenda. Manager Hurdle replied collaboratively, the Clerk, Manager, and the Mayor get together and discuss the agenda and it may be adjusted several 25, Part VI, Rule 13(1). Agenda, written by Trey Allen formerly of UNC-SOG. Mayor Brown read a Resolution 03.082021-2, adopted by Council on March 8, 2021. The resolution states the Mayor plays a major role in preparing the draft agenda, then the agenda is forwarded to the entire Council to include their inputs, comments, deletions, and adjustments (Rule 13, Agenda, page 25). Mayor Pro Tem Hodges asked Councilman Norman to restate his motion. Councilman Norman stated the motion: August 9, 2021, closed session minutes be placed back on the agenda to be adopted in closed session which is agenda item 14. The motion was seconded by Councilman  Norman stated the correct way to do this is at an official meeting.  times  before the meeting. Councilman Jackson read the adopted rules and procedure, page  Jackson. The vote:  Additional Discussion- None.  Mayor Brown Mayor Pro Tem Hodges yay Councilman Jackson Town of Hertford Regular Session  yay yay  September 13, 2021  Page I of9    Councilman Norman Councilman Mimlitsch Vote 5-0.  yay yay  Council voted to approve August 9, 2021, closed session minutes, be placed back on the agenda to Mayor Pro Tem Hodges asked if there are other adjustments or comments on the agenda. Mayor Brown stated she would like to make a motion of the following adjustments to the agenda.  be adopted in closed session which is agenda item 14.  The agenda will be adjusted to only include: Agenda Item 2. Citizen Concerns, Agenda Item 4- Personal Matters  Agenda Item 1. Schedule Business (FY2020 Audit presentation),  Agenda Item 3. Closed Session, (to approve June 14, 2021 Closed Session Minutes  $143.318(11)a)1) and add Personnel $143.318(11)a)6)  Mayor Pro Tem Hodges restated the adjustment- Adjustment of the Agenda #5, Scheduled Business (Jeff Best), Citizens Concerns #9, Closed Session. Mayor Pro Tem stated he assumed the Mayor wanted August 9, 2021, closed session minutes added. Councilman Jackson inserted the Mayor did not say that in her motion. Councilman Jackson told Mayor Pro Tem Hodges; he cannot Mayor Pro Tem Hodges stated the Mayor's motion will strike Manager Hurdle, Mayor Brown, Councilmen Jackson, and Councilman Norman's agenda items. Mayor Pro Tem Hodges restated the Mayor's motion- Scheduled Business (Jeff Best), Citizens Concerns, Closed Session (approval of. June 14, 2021, closed session minutes), add another item $143.318 (11)(a)(6  change the Mayor's motion.  Personnel, and add another item Personal Matters.  Mayor Brown restated her motion:  Currently at Agenda Item 5. AdustmenvApproval of Agenda The new Agenda Item 8. Schedule Business (FY2020 Audit presentation),  agenda items are:  Agenda Item 9. Citizen Concerns, Agenda Item 15. Personal Matters. Councilman Jackson seconded the motion.  Agenda Item 14. Closed Session, (to include approval of the minutes and a personnel matter)  Adding:  Councilman Jackson called the question. Councilman Norman seconded the call of the question.  Discussion- None. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 5-0.  The vote: (voting on whether to vote or not to vote on Mayor Brown's motion)  yay yay yay abstain yay  Motion passed to vote on Mayor Brown's motion.  The vote:(Mayor Brown's motion) Town ofH Hertford Regular Session  September 13,2021  Page 2 of9    Discussion- None. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 3-2.  nay nay yay yay nay  Motion did not pass to accept Mayor Brown's agenda.  Councilman Jackson made the motion to approve the agenda as presented. The motion was  seconded by Councilman Norman. Discussion- None. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 3-2.  nay nay yay yay nay  Motion did not pass to approve the agenda as presented.  Councilman Jackson made the motion to adjourn the meeting. The motion was seconded by Discussion- Mayor Pro Tem Hodges stated there is town business that needs to be taken care of.  Councilman Norman. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 3-2.  nay nay yay yay nay  Motion did not pass to adjourn the meeting.  Mayor Pro Tem Hodges stated clearly all the five board members want the meeting to move forward and there is no agreement of what the agenda is going to be. Attorney Gallop stated twice,  the Mayor's adjustment to the agenda she stated was appropriate.  Councilman Norman called for a point of clarity-  The clarity to Mayor Pro Tem Hodge's statement-If the agenda is a bridge in the manner it is trying to be a bridge, then he does not want to have a meeting. Mayor Pro Tem Hodges stated all five board members wanted to have a meeting with a complete agenda. If there is not a complete Mayor Brown stated the agenda is adjusted because there is a lot of business that needs to be taken care of. The work session was eliminated because of the length of the session and items being redundant, irrelevant. rhetorical information. Mayor Brown stated her motion, instead of using include A, B, and C, she stated what the agenda will be. The audit from Jeff Best has been waiting to be presented to the Town. Mr. Best is an employee because the Town pays him and he is a guest. Citizen concerns period, the citizens are allowed five (5) minutes to speak. There is a personnel issue that needs to be taken care of. The Town Manager has provided read-ahead  agenda he rather adjourn the meeting.  Town of Hertford Regular Session  September 13, 2021  Page 3 of9    information on agenda items. Ift the Board was a functioning Board, the Town Manager's items  could be consent agenda items. Councilman Jackson rebuttal.  Councilman Norman called Point of Clarity-  Mayor Brown cannot have the gavel while discussing her motion. Point of Clarity and Point of Order stops all conversations. Councilman Norman spoke on Mayor Brown's comments. Councilman Norman wanted clarity on the two items Mayor Brown stated on redundancy. Mayor Brown stated the two items are Continued item 4- E. Academy Street Plumbing and Item 5- Substandard Housing. Councilman Norman stated the Board voted to continue these items.  Mayor Brown has the gavel. Approval of Minutes (#6)- Strike Item 6, Keep Items 8 and 9 Continued Business (#10)- Strike Items 1-3 Keep 4 Strike 5. New Business (#11)- Strike 1-1, Council Concerns (#12)- Strike Announcements (#13)- Strike Closed Session (#14)-  Mayor Pro Tem Hodges made a motion to adjust the agenda as follows:  Approval of Closed Session minutes June 14, 2021, Adding $143.318 (11)(a)(6) Personnel,  Adding $143.318(11)a)1) August 9, 2021, Closed Session minutes,  Adding Other Business (#15)- Personal Matter Adjournment (#16)- Discussion-  The motion was seconded by Councilman Mimlitsch.  Councilman Jackson commented about the agenda items of Councilman Jackson and Councilman Norman being removed from the agenda., work session elimination, read-ahead items, Managers' agenda item, monitors in the boardroom, bills not being paid on time last month, check signers, Mayor Pro Tem Hodges stated why he made the motion to amend the agenda. The Council is not Councilman Norman stated the problem with the agenda is because the Mayor makes adjustments  TDA appointment, ABC appointment, and a working agenda.  prepared to have a meeting. tot the agenda. Loud voice discussion.  Councilman Jackson asked when will the Special Call meeting will be.  Substantial Motion made by Councilman Jackson to table and was seconded by Councilman  Town of Hertford Regular Session  September 13,2021  Page 4 of9    Norman. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Motion did not pass to table.  nay nay yay yay nay  Vote for Mayor Pro Tem Hodges' adjustments to the agenda  The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 3-2. 7:18 pm.  yay yay nay nay yay  Motion passed to approve Mayor Pro Tem Hodges' adjustments to the agenda.  SCHEDULED BUSINESS FY2020 AUDIT JEFF BEST CPA  Councilman Jackson called for question- Gavel passed on to Mayor Pro Tem Hodges.  The Auditor should have five (5) minutes as previously scheduled visitors.  Mayor Brown made a motion the Mr. Best to be allowed time to give a presentation of the FY2020  audit. The motion was seconded by Councilman Mimlitsch.  Councilman Norman- Point of Order  Tony Riddick was on agenda under Scheduled Business and was allowed five (5) minutes and is  not a debate. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 4- 1.  Mayor Pro Tern Hodges stated the rule will be suspended for Mr. Best only.  yay yay nay abstain yay  Motion passed to allow Mr. Best time to present the FY2020 Audit.  Mr. Jeff Best's presentation: Page 1-3--Independent Auditor's Report Page 4-11 Management's Discussion and Analysis Page 12-22-- Basic Financial Statements  Town of Hertford Regular Session  September 13,2021  Page 5 of9    Page 16--Statement of Revenues, Expenditures, and Changes in Fund Balance Mayor Tem Pro Hodges asked about the prior period adjustment and the net change in fund  The net change in Fund Balance was $732,494  balance. Prior period adjustment was $ 168,124 (911 Bill for FY 2018-2019 that was not recorded. Mr. Best stated that the 911 Bill was not booked in 2018 or 2019,  meaning it was not showing as a debt. Revenue were $196,607 more than budgeted Expenditures were $334,577 less than budgeted Depreciation funds come from the Golden Leaf Grant. funds and the access depreciating over time.  Page 18--Budget to Actual  Councilman Jackson explained the renovation of the Municipal Building cost.  Page 18-Water, Sewer, and Electric Fund  Mayor Pro Tem Hodges asked on Page 20, was the depreciation shown in previous years? Mr. Councilman Norman asked for a clear understanding. the increase in revenue from grants  Best answered, yes, and he thinks it was around $700,000. The income is grant  ($724,000) becomes an asset and the assets depreciate. Mr. Best stated that this is a point that the Town should think about.  Councilman Noman wanted it stated that this does not mean mismanagement. Mr.  Best stated that it does not.  Page 22-42--Footnotes Page 23-Explain Operations of the Town Page 34-Capital Assets Page 35--Water/Sewer/Electric Page 36-41--Pension Plan Obligations Page 47-Long Term Obligations Page 49-50 - Revolving Loan Page 51--Changes in Long-Term Liabilities Page 59-67-Supplemental Schedule Page 62-- King Street Project Revenue Page 67--Golden Leaf fund  A significant amount of depreciation because of grants Several options of retirement to Town's employee  A more detailed explanation of the audit.  $210,000 of Powell Bill revenue transferred to General funds for this project  $509,675 grant funds and Town match of $50,459  Councilman Norman asked a question on Page 61-for Mr. Best to elaborate on the obligations. Mr.  Best stated he would get back to Councilman Norman on this via email.  Page 69--Analysis of Current Tax Levy  The current tax collection percentage is 95.46 not but the Town wants to take people's houses.  Councilman Jackson made a statement that 95.46% of taxes in Hertford are collected and 4.54% is  Page 70-80--Compliance  State single audit--Projects expending over $500,00 have to have a separate Separation of Duties (limited number of employees for certain functions) Timely Financial reporting (staffing turnover caused delays in reporting)  audit.  Bank Reconciliation (not prepared in a timely manner) Prior Period Adjustments (911 bill not posted)  Town of Hertford Regular Session  September 13,2021  Page 6 of9    Mr. Best ended his presentation.  Questions from Council:  Councilman Mimlitsch- Does it show a breakdown of the freeze on spending? Councilman Jackson stated the freeze was on Governing Body spending. Manager Hurdle stated the freeze was Mayor Pro Tem Hodges-Why the audit took sO long and how did we get here. What transpired? Mr. Best answered asked for full trial balance, check/cash reconciliation. tax season- he does Councilman Jackson- Each year you send each Council questions. Did you get any questionnaires back? Mr. Best answered, yes. Councilman Jackson stated the State Auditors sent the same questionnaire. Did you find anything? Mayor Brown- Stated, no employees knew of any  on Governing spending and later on all other budgets. not work on audits and waiting on the State Audit  fraud. The State Auditors allowed her to respond alone. Questions from Citizens (3-minutes each and one question)  Matthew Cyr- Questionable expenditures from a Councilman, who reconciles those allegations? Murielle Harmon- When you get the information you needed and it has been contracted out, was this always the case? Mr. Best and Manager Hurdle answered that this is 2 years of Sara Winslow- When will the audit be on the webpage? Mr. Best stated Manager Hurdle has to Councilman Jackson stated a Finance Committee was formed to keep the citizens aware of the finances of the Town. Mayor Brown stated the meetings ended because of the lack of purpose and logistics. After four meetings and no guidance, no other meetings were scheduled.  Mayor Brown answered the state audit was a standalone audit.  contracted services.  answer the findings and the audit will be sent to LGC for approval.  Mayor Brown called for a five-minute recess. 8:25pm. The meeting  resumed at 8:32 pm. CITIZEN CONCERN  Matthew Cyr-Mr. Cyr thought there will be a discussion on Allison Platt's project. Mr. Cyr expressed support and concerns for the project. Mr. Cyr stated it is hard to see disrespect for the Mayor and Art Honeycutt- Mr. Honeycutt was representing the Community and Watertront Project Advisory Committee. Mr. Honeycutt read a letter from the Committee to the Council. Mr. Honeycutt stated he implore Town Council to immediately approve the Community and Waterfront Plan Tim Brinn- Mr. Brinn spoke about happenings in the General Assembly, Senate Bill 437. The reason of interest, this bill resulted from a state audit. Fraud was discovered in another municipality. Secret meetings without the attendance of full council, $3,000 was allocated for legal fees and did not recall anyone voting to the approval of transactions. Sara Winslow- Ms. Winslow spoke on the state auditor report, questioned expenditures, and lack of approval. Funds should be repaid. Ms. Winslow spoke on lack of minutes. Connie Brothers-Thanked all that participated in the cleanup along Railroad Avenue. Ms. Brothers had concerns about the Roadside Cemetery. Ms. Brothers asked for a written response in 30  councilman cannot get up for the Pledge of Allegiance to the flag.  submitted by Allison Platt to ensure grant funds.  days.  Town of Hertford Regular Session  September 13,2021  Page 7 of9    Martha Borders-Thanked Councilman Mimlitsch, Mayor Pro Tem Hodges, Mayor Brown for setting up credit card procedures. Thank them for the long budget meetings which were very educational. Asked if laws have been broken, what can Council do so Council will not be above the law? Has Councilman Jackson paid back the funds stated on the state audit? Ms. Borders stated she is very concerned about 2019 travel and needless expenses and someone running Quentin Jackson- Jackson showed the audience the State Auditor's report. Mr. Jackson stated he did not have an attorney but had a court-appointed attorney. Mr. Jackson said everything listed in the report, he was accompanied by other Council members at these meetings. Mr. Jackson stated that nowhere in the audit report states he had done something  around in the Tahoe.  wrong.  Frank Norman- Mr. Norman stated he has talked multiple times about the clerk having local access. The clerk is not recording, only Mayor Pro Tem Hedges. Mr. Norman stated that the Mayor starts the meeting before everyone gets set up. Mr. Norman stated no citizen has to stand  up for the Pledge Allegiance. CONTINUED BUSINESS E-Academy Street Plumbing  Councilman Norman stated he had talked to the owner and the owner was pleased with the  explanation and help given by the Town staff.  CLOSED SESSION The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 3-2  A motion to go into closed session was made by Mayor Pro Tem Hodges and seconded by Councilman Mimlitsch 143.318.17/a)0) and Personnel $143.318(11)a)6).  yay yay nay nay yay  Motion passed to go into closed session $143.318(11)a)1) and Personnel $143.318 (I)(a)(6).  Back into open session. 11:20pm PERSONAL MATTER meeting. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch  Ar motion was made by Councilman Jackson and seconded by Councilman Norman to adjourn the  nay nay yay yay nay  Motion failed to adjourn the meeting, 3-2.  Town of Hertford Regular Session  September 13,2021  Page 8 of9    Ar motion was made by Mayor Brown and seconded by Councilman Mimlitsch to terminate the  employment of the Town Clerk immediately. The vote:  Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch Vote 3-2.  abstain abstain nay nay abstain  Motion passed to terminate the employment of the Town Clerk immediately.  Ar motion was made by Councilman Jackson and seconded by Mayor Pro Tem Hodges to adjourn  the meeting. The vote: Mayor Brown Mayor Pro Tem Hodges Councilman Jackson Councilman Norman Councilman Mimlitsch  yay yay yay yay yay  5-0.  Motion passed to adjourn the meeting.11:52 pm  Town of Hertford Regular Session  September 13, 2021  Page 9 of9