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Fairmont City Council picks facilitators for ‘forensic’ audit

FAIRMONT — Fairmont’s mayor, one City Council member, the city clerk and the city’s finance director will work with the Minnesota State Auditor to determine the scope of a forensic audit spanning 17 years of municipal bookkeeping.

At its meeting earlier this week, the City Council selected Mayor Debbie Foster, Councilor Ruth Cyphers, City Clerk Patty Monsen and finance director Paul Hoye to facilitate the audit process and report back to the council on progress and costs.

Although the city undergoes an annual audit, Cyphers pushed for a forensic audit at the council’s Sept. 23 meeting, with the municipal liquor store and the Housing and Redevelopment Authority as specified areas to search. Other council members and city staff welcomed the audit, saying it would be proof of the city’s financial accuracy.

During the discussion to select the city’s representatives for the audit, Councilor Bruce Peters called out Cyphers for sending an email to the State Auditor from her business account instead of using her city government email account. Peters said the action was “not appropriate.”

Cyphers apologized and explained the email contained “just a list of things” that constituents want audited. She agreed to share the list with the rest of the council.

Councilor Tom Hawkins asked about the procedure to have areas he would like included in the audit. Robert Scott of Flaherty & Hood, the city’s interim legal counsel, advised that requests be routed through the mayor.

Foster said the areas of the audit should be made public, and Scott said the information would be released after it has been cleared by legal counsel.

“I’m not hearing what Councilor Cyphers is hearing,” Foster said about any possible irregularities.

Turning to another matter, the mayor updated the council on the investigation concerning which, if any, city staff knew about criminal cases that had expired due to the statute of limitations during the tenure of former City Attorney Elizabeth Bloomquist. Foster said that Michelle Soldo, the investigator hired by the council, anticipated having a final report within two weeks. She would submit that report to an attorney at Flaherty & Hood who would then hold a conference call with Foster and Hawkins, who were designated to represent the council in the matter.

“At that time, it will be decided on how we’re going to present her findings to the council and to the community,” Foster said.

In a related matter, Foster said the council will receive a report about the expired cases from County Attorney Terry Viesselman, who now serves as the city’s criminal prosecutor, after the investigation is completed.

In other business, the council:

o Wrote off $48,000 in deferred assessments from 1995 to 2013 on 18 properties. Under an outdated deferment agreement form, the deferments were not recorded with the county and therefore not flagged when the properties changed ownership. They now are unable to be collected.

o Approved the mayor’s appointments of Paula Eppens to the Police Commission, replacing Daron Johnson, who resigned, and Paul Determan to the Housing and Redevelopment Authority, replacing Steve Hawkins, who resigned.

o Approved a grant application from Michael and Mary Jo Kerekes for 50 percent of the demolition costs up to $5,000 for property at 721-723 Albion Ave.

o Approved a resolution to ask the Martin County Auditor/Treasurer for a sale or conveyance to the city of four tax-forfeited properties. The properties are located at 315 N. Elm St., 523 N. Elm St., 103 S. Orient St. and 719 E. Sixth St.

o Approved a contract with Gemini Studios for the oversight of audio and video services to broadcast council meetings. The $5,400 annual cost involves labor only. Any equipment repair or replacement is the city’s responsibility.

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