Sunday, July 1, 2007

"Surprise, Surprise, Surprise!"*


At the beginning of June the ABQ Journal revealed the first signs that Rio Rancho's top banana was looking bruised and overripe.
Rio Rancho city staff have revoked Mayor Kevin Jackson's city-issued credit card over nearly $8,000 in purchases primarily made at the Santa Ana Star Center for renting out suites, buying food and paying for concert tickets.
"It would be very difficult to determine a public purpose for just handing out tickets," interim city manager Jim Babin said Friday.
City Fiscal Services director Dick Kristof said Friday that Jackson's purchasing card— a city-issued credit card— was canceled May 17 and a new one has been issued to the city. The new card "is not available" to Jackson, Kristof said.
City spokesman Peter Wells said a city audit into the credit card records will continue.
Jackson's attorney, B.J. Crow, said Saturday that he has not seen any details to allegations against Jackson and has only one comment until he does.
"Mr. Jackson is adamant that no city funds have been misspent," Crow said.
Jackson has been out of town and has not returned Journal messages.
In a May 24 letter to his administrative assistant, Jackson claims he did not specifically ask for some of the entertainment charges to be put on the city's card.
"This past week, I was shown a bill for my credit card that had many charges on it that I did not make," the letter states.
His letter recommends changes that better track expenditures for travel and the event center, and requests a monthly report on all expenses from the mayor's budget.
He also said in the letter that he realizes that his administrative assistant is "often put in a position to charge something based on calls from others for tickets, events, etc. especially when others say that the Mayor said so or this is official business."

Memo stated concerns
All of the questionable purchases appeared on the monthly summary of purchasing that Jackson signed.
Babin sent a memo to Jackson on May 18— a day after Jackson's card was canceled— outlining concerns that city personnel had raised over Jackson's purchasing habits throughout the year.
"Again, we are not authorized to expend public funds to purchase tickets in order to give them to other people, including City or State employees, unless there is an official city function being hosted— one which has a defined benefit to the city as a whole," the memo said.
The memo also questioned "various lunches" and one purchase for $11 worth of alcohol. City policy does not allow public funds to be spent on alcohol.
Jackson signed a card holder agreement in March 2006 for the credit card that outlines the rules of using the card.
The agreement states "under no circumstances will I use the Purchasing Card to make personal purchases."
City records show that Jackson on May 24— after his credit card had been revoked— reimbursed the city for about $600 of the $8,000 questioned.
It was to refund $216 worth of Moody Blues tickets, $184 for refreshments at the concert and about $200 worth of food from Sal E Boys Pizza in Rio Rancho and Chili's Grill, according to a memo sent to city staff from Jackson's administrative assistant.
Among other purchases that raised concerns included:
• April transactions for about $2,600 worth of tickets and refreshments for concerts, New Mexico Scorpions playoff tickets and a business dinner with new city manager Jim Payne.

• March transactions of about $1,100 worth of Santa Ana Star Center purchases.

• February transactions of about $1,900 in tickets— including $1,600 worth for Willie Nelson tickets.

• November transactions of $1,281 for travel and events center tickets.
Babin said that Jackson has been asked to justify the use of the credit card for those transactions and others but that he has not heard from him on the issue.
"If they were for private purchases, he would have to reimburse us," Babin said.

Check fraud alleged
Jackson is already facing an investigation by a U.S. Inspector General over allegations that he misspent federal grant funds while running his former nonprofit, New Mexico Family Council— Best Choice.
And Family Council officials say that they filed a report with the Rio Rancho Department of Public Safety on Thursday alleging that Jackson committed check fraud.
Family Council officials have also sent a demand letter to Jackson for a refund of at least two trips.
City records show that two trips made by the mayor— one to Fort Meyers, Fla., from Nov. 2-5, and another to Baltimore from March 18-21— were charged to the city credit card.
Family Council officials have said their records show that Jackson was reimbursed by that organization for those trips, as well.
Meanwhile, Jackson has had large increases in his mayor's budget in comparison to former mayors.
All of the Santa Ana Star Center charges fall under the "other costs" portion of the mayor's budget. Traditionally, that portion of the budget has been set at $500 a year.
Jackson's "other costs" budget has been increased to $9,600 through the fiscal year, which ends June 30, using transfers from other line items in the mayor's budget.
The total mayor's budget has increased about $18,000— to $83,000. Of that, about $69,000 has been spent.
Travel costs have gone above originally budgeted levels and an increase of about $8,500 has been added this year.
Jackson, who started the Family Council in 2001 and managed it until three weeks ago, was fired amid allegations of "mismanagement" of federal grant funds, including giving himself a raise from $62,000 to $85,000 without board of directors or grant administrator consent.
The Family Council also cited questionable travel expenses and unauthorized donations to other nonprofits as reasons for the firing.
But the bruised banana has quickly turned into a joke.
Even though Rio Rancho Mayor Kevin Jackson has not spent much time at the office in the past month, he has found time to use his city computer to ask for a vehicle allowance, admit to actively avoiding the media, and suggest he may no longer be in office by August.

Much of the criticism against Jackson, beyond his misuse of city funds and double-billing of a plane ticket to Florida, is due to his absence from City Hall and his unwillingness to address the allegations.

...

Shortly after Jackson and his wife, former Rio Rancho Public Schools Board of Education member Kathy Jackson, filed a restraining order against their former friend and coworker, Tony Oliva, Jackson said the media was attacking his family for pointing out Kathy entered false information into the form.

"It is tough because now they are going after the family," he wrote on June 17.

...

Even though he wanted to avoid media scrutiny, Jackson seems ready to bring negative attention back upon himself.

On June 13, the city council censured Jackson and cast a vote of no confidence against him. That resolution also cut the mayor's in-state and out-of-state travel budgets.

Jackson has since returned his city-owned vehicle, which is no longer funded for his use in the budget.

Jackson claims he should receive a vehicle allowance because of his decision to willingly return the sports utility vehicle.

"Per our meeting this morning, I recommend that I be provided with a car allowance commensurate with you, (city attorney Jim) Babin, and the other department heads in exchange for turning in my vehicle," he wrote to Payne. "I have not used the vehicle in many weeks other than to fill it up and an appointment or two."

Jackson also promoted his decision not to use the city vehicle on his two most recent trips.

"I took my private vehicle to the Leadership NM conference last week and will once again drive my private vehicle to the US Conference of Mayors this week," he wrote.

Jackson proposed the city would benefit from him having a vehicle allowance.

"I believe that this is the proper and safe thing to do for our city and I am pleased that you concur as well," he wrote.

Jackson suggested Payne move money out of his suspended travel budget to pay for the vehicle allowance.

"You can simply reallocate my gas, oil, maintenance, and the amortization cost of the vehicle to the line item and reduce my out of state travel to make up the difference," he wrote.

Payne, informing the mayor that a budget adjustment was the decision of the council, offered to prepare the proposal. Jackson agreed.

"Yes, I did want you to prepare a request for the council for the car; that is what you and I talked (about), that it would be (in) the best interest of the city," he wrote.

Payne said Thursday he had not begun preparing the document because Jackson had not given him the necessary details of the request.

...

Although most of the councilors said Jackson should resign, they are yet unable to pursue his removal through the courts. City Clerk Roman Montoya said people have inquired about the process of recalling the mayor, but no one has yet taken the necessary steps.

Tickets, anyone?

Jackson's e-mails do show that he has accepted city staff's warning not to spend money on Santa Ana Star Center tickets, the first issue raised by the city against the mayor.

On June 1, Eeds asked Jackson for tickets to an event at the Star Center.

"Is it still a possibility for (Bernalillo County District Attorney) Kari Brandenburg and myself to go to the Alison Krauss concert at the Star Center on the 25th and sit in your box?" he asked Jackson.

"On the tickets, I will have the box office and suite holder call you directly to arrange that now. Apparently, I am not permitted to arrange such things anymore," Jackson responded on June 4.

"We can buy the tickets," Eeds wrote back. "No big deal."

Jackson's final response showed his acceptance came with regret.

"I would have been honored to host you but better steer clear," he wrote.

Jackson also offered to repay some of the tickets, but he maintained that some of the charges should not be his responsibility.

"I will repay the following: $105 for two tickets to ZZ Top. I had ordered these to be able to be with Mayor Chavez and his group. Mayor Chavez cancelled, so I feel obligated to pay for these even though I did not attend.

"$157.50 for George Lopez event. I ordered these to be there with the hosted group from Scott Scanlon and did not feel it was right that he pay for me to be there.

"$108 for February hockey tickets. I am not sure if I ordered these for special guests or my family, but since I am not sure, I will agree to pay for them. I have already mailed a check for $375.50 today to your attention.

"The other items I do not feel are my personal responsibility, and I have already reimbursed the city for Moody Blues refreshments. Half of Moody Blues tickets since Mayor Chavez did not show up. $47.71 for box lunch tours and other expenses.

"I strongly believe that the Willy Nelson show tickets and refreshments should not be my responsibility since they were requested by another for the overall benefit of the city to host dignitaries and elected officials. Please see Scott Scanlon letter which I understand he has sent you and I."

Jackson did not mention another $745 spent on Willie Nelson tickets that he listed for Mayor Chavez's use...

I wonder what an in depth investigation would reveal about the nature of the relationship between Santa Ana Star Center and Rio Rancho's movers and shakers.

I'm with Irshad A. Siddiqi, who wrote in to the Rio Rancho Observer the following suggestions:
1. Investigate all higher echelons.

2. Investigate all councilors.

3. Investigate all builders and developers, contracts, and establish visible controls on men, money and material.

4. Report cards to be presented to public in order to give raise to counselors and city officials.

5. A quarterly local Activity report shall be made available to public. Not only discussing developments but expenditure of funds (dollars and cents).

6. An annual overall financial report from inspector general shall be made available to public.
Even the Rio Rancher Observer called for the mayor's resignation. Now that is a surprise.

*courtesy of G. Pyle