April 2013 Special Meeting
Webb Creek Utility District
Wednesday, April 17, 2013
John Steven McCarter, President
Robert Vick, Vice President
Delmar Ball, Secretary
Gary McGill, McGill & Associates
James Sunstein, Manager (Staff)
Janice Fenoglio, Assistant Manager (Staff)
Robert Gass, Ogle, Gass & Richardson
James Fenoglio, Spouse of Janice Fenoglio
Donald Wallace, Utility Customer
A special Board meeting was held on Aril 17, 2013 at 10:00 a.m. at the district office located at 3625 Lindsey Mill Road, Gatlinburg.Â Mr. McCarter called the meeting to order for the purpose of addressing personnel issues.
Per Mr. Gass the Board has been contacted by the State Comptrollersâ€™ office concerning a recent audit.Â The Board was advised of potential irregularities occurring at WCUD which may affect James Sunstein and Janice Fenoglio, two employees of WCUD.
The auditors have taken a number of documents from WCUD to review and have spoken individually with all WCUD employees and commissioners.Â The state recommended both employees be placed on administrative leave without pay until the investigation is complete.Â Â Mr. Gass concurred. Â Â Mr. McCarter had already acted on the Stateâ€™s request and placed them on administrative leave without pay.Â This is not a termination at this point.Â The state will render its findings and do a report; a decision will be made at that time as to how to proceed.
Mr. McCarter called for a motion to ratify his action to place them on administrative leave without pay.Â Mr. Vick made a motion to ratify the decision and Mr. Delmar Ball made a 2nd.Â Â The motion passed.
Mr. Gass brought up bank accounts and vendor accounts.Â Â As far as changing signatories on the bank accounts, it was decided to have two separate signatures by any of the following: the interim District Manager, Steve McCarter or Robert Vick.Â Â Delmar Ball asked to be removed.Â The motion passed.Â The interim District Manager will have the authority to sign off on vendor accounts.Â Â Mr. Vick made a motion and Delmar made a 2nd and the motion passed.
Mr. Gass used the cell phones as an example for which who had authority to sign or make changes, and these should be changed as Janice is the primary contact.Â Â Â When Mr. Sunstein was asked if he was authorized to make changes to the business cell phone account, Mr. Sunstein stated he had no authority to make changes.Â He further commented that he had requested for Janice to add him to the Verizon account, she told him it had been done; however, he later contacted Verizon and was not listed as an authorized representative for WCUD.Â He added that Janice â€œlied to him.â€œÂ Â Janiceâ€™s husband, James Fenoglio stated there was no mention as to whether that statement made by Mr. Sunstein will have an effect in her defense since there were no facts as to whether this statement was factual or not.Â Mr. Gass stated to note this statement in the minutes.
Delmar asked that he be removed from the signature card; Mr Gass suggested to name an interim District Manager as the other signatory for the checking account.Â Mr. Vick brought up the fact that three persons be appointed in case someone was busy and could not come to sign the checks.Â Dual signatures would be required on all checks.Â Mr. McCarter made a motion that he, Robert and interim Manager would be the new signatories.
In addition, we need to appoint an interim Manager to monitor the day to day operations.Â Â Mr. McCarter had talked with all the employees for their input, and suggested Wayne Ball; as Johnny and Alvin were the most experienced in the field and should remain.Â Mr. Gass suggested the interim Manager should be responsible for all operations during the interim.Â Mr. Vick asked if there were any certain qualifications the District Manager had to possess to avoid any violations.Â As this is an interim position, it was deemed there were none; Mr. Gass concurred.Â Â Mr. McCarter made a motion to appoint Wayne Ball as the interim District Manager and Mr. Vick made a second.Â The motion passed.
In addition Mr. McCarter stated Suzanne Davis could help with bookkeeping issues; Mr. Gass pointed out that Pugh and Company perform the audit function only and cannot do both the audits and the bookeeping work.Â Mr. McCarter suggested Suzanne Davis perform the bookkeeping duties. Mr. Vick made a motion and Delmar made a 2nd . The motion passed.
Mr. McCarter and Johnny Ogle stated in addition stated we may need help on the administrative side.Â Mr. Gass stated the interim Manager be able to make that decision.Â Â Â Mr. Vick stated that generally the Board was involved in all hiring and terminating of all employees.Â However, it was decided the interim Manager could make this decision since it was an interim position.Â Delmar made a motion and Mr. Vick made a 2nd.Â The motion passed.
The meeting was adjourned at approximately 11:10 a.m.Â Delmar made a motion to adjourn and Mr. Vick made a 2nd.Â The motion passed.