Dirty Laundry: Termination of Finance Director

Original post

embilmama Active Poster

As posted by the Kalamazoo Gazette:

Fired finance director claims irregularities
Wednesday, November 07, 2007
BY JANE C. PARIKH
jparikh@kalamazoogazette.com
388-8558

THREE RIVERS -- The longtime finance director and treasurer for the city of Three Rivers said she was fired Tuesday because she has raised concerns about possible financial irregularities by the city manager.

Wendy Hochstedler, the city's finance director for 14 years, said in an e-mail obtained by the Kalamazoo Gazette that she believes ``this termination is an attempt to silence me and prevent me from disclosing improprieties and abuse perpetrated by City Manager Joe Bippus. I have documented evidence of these illegal acts.''

Telephone messages left this morning seeking comment from Bippus were not returned.

Hochstedler, 47, said Bippus asked her on Monday if they could meet and that the two met in a session also attended by Mayor Tom Lowry; Lou Ann Moord, the city's human resources representative; and City Commissioner Daryl Griffith.

``They were all sitting around a table and they had a resignation agreement and a waiver of claims that they wanted me to sign,'' Hochstedler said this morning. ``I was blindsided.''

Hochstedler said Bippus and the others at the Monday meeting said she was being fired for insubordination. She said in the e-mail, which was distributed at Monday night's meeting, that the specific incident of insubordination was ``my refusal to approve an unbudgeted expenditure that was submitted by (Bippus) for processing.''

The expenditure, Hochstedler said, was for team-building training fees for personnel in her department. She said Bippus requested the team-building after she and one of her employees engaged in a ``loud discussion'' in August that resulted from computer problems.

Hochstedler alleged in the e-mail that Bippus is trying to avoid paying special assessments on city improvements in the Meadowbrooke subdivision, where he owns a home. It alleges the city manager ``is doing everything in his power to circumvent the process so that he will not be responsible for paying his fair share of the improvements,'' which she said total more $27,000.

She also alleges in the e-mail that Bippus signed off on an IRS document that contained fraudulent information regarding the value of eight acres of property given to the city near the East Parking Lot.

I shall continue to do what is right whether anybody likes it or not.----Harry S. Truman

If you bring to the table a complaint, you had better also bring a solution.----Sarah Embil

Replies 375 responses

kataratak Member Nov 7, 2007 6:46 PM

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I'm wondering if she shouldn't pursue using the Whistler Blower Act. I don't know much about it, but sounds like there have been improprieties. http://www.osha.gov/dep/oia/whistleblower/index.html

vblainev Obsessed Poster Nov 7, 2007 7:11 PM

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Insubordination? Very interesting. The same thing he tryed to use against me to shut me up. This will be interesting. Maybe the truth will finally come out about Joe Bippus. True colors.

vblainev Obsessed Poster Nov 7, 2007 7:17 PM

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It will also be very interesting to see if Al Balog will be involved with Windy's situation as Tom was. I was told The Mayor and Commissioners were NOT involved with employee issues?

Stillwaters Advocate Nov 7, 2007 7:40 PM

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This requires legal investigation and by a third party. Daryl, can you speak to the investigations into misconduct from either party? This certainly sounds like it is not quite on the up and up. I think as citizens there should be an insistance into this.

Both parties have a voice here if they wish to use it.

Thank you Embilmamma for starting this post.

"I never consider a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend." - Thomas Jefferson

Buck Forum Admin Nov 7, 2007 7:43 PM

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Blaine that is a good point and it first came up in a post about you in the Petting Zoo thread (12th post down on the thread that link takes you to.)

I am going to cut and paste part of Daryl's reply so those that don't follow the link will have a reference point.

Actually on this subject the charter is about as clear as legalese ever gets. Here is the charter excerpt of chapter 5 defining this.

RESTRICTION OF POWERS OF THE COMMISSION:

Section 5.6. The Commission shall not have the power to make any contract with or give any official position to any person who is in default to the City. Further, the Commission shall not have the power to sell any park, cemetery or any part thereof, except where such park is not required under an official master plan of the City, or any property bordering on a water front, or to engage in any business enterprise requiring an investment of money in excess of ten cents per capita, unless approved by three-fifths of the electors of the City, voting thereon at any general or special election. Except as otherwise provided in this Charter, the Commission and its members shall deal with the administrative services of the City through the City Manager, only, to whom these powers may be delegated by the Commission, and shall give no orders, directly or indirectly, to any administrative officer or employee of the City. Except as otherwise provided in this Charter, and for the purpose of investigation, the City Manager shall be the delegated spokesman for the administrative services of the City before the Commission, though he may direct any administrative officer or employee to give information to the Commission on matters within his knowledge and line of duty.

The sole legal channel of communication between city staff and the commission is through the city manager. That is the rule. I don’t have to like it but I do have to follow it. Even here in the forum, I can point out the portion of Mr. Edgel’s editorial I find untrue but I cannot address him directly nor respond to his questions. That may very well create the appearance of “paranoia” or “something more nefarious” but it is the only course legally open to me.

Daryl

Daryl I realize you can't speak on the specifics but how was this meeting arranged and why were “some” members of the commission included and not all?

I also want to go on the record and say that this is official city business and the city has no business trying to keep the details of this away from the public. We have a right to know the details of what exactly is going on with our city manager.

Laissez faire: leave the people alone, let them be, in their economic activities, in their religious affairs, in thought and culture, in the pursuit of fulfillment in their own lives.

trhunter Active Poster Nov 7, 2007 7:57 PM

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After reading all of this and the coverage in the Gazette and the Commercial it sounds to me like this stuff should be turned over to the Sheriff's Dept. or State Police for an investigation into possible wrongdoing. Violating city policy about expenditures is one thing, but inflating a value of something for tax purposes is something alot bigger.

vblainev Obsessed Poster Nov 7, 2007 8:11 PM

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Remember all the heat I took for my comments about Mr. Bippus being involved with Welton development? True colors? Vindication! I guess it's true (what goings around comes around !!

Buck Forum Admin Nov 7, 2007 8:30 PM

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Blaine I don't think it is necessarily the points you try to make that causes all the heat (in many cases). I think it is the way they are delivered that tends to turn people off.

Believe me I don't say this out of any sense of superiority. If you read many of my early posts on this forum as well as the archives of the Three Rivers forum you will see that I had a similar effect on non-like minded people. It took me a couple of years to realize that it was exactly the non-like minded people I needed to see my point and if I was turning them off all I was only preaching to the choir so it wasn't doing my cause any good.

After that realization I kinda got into a pretty decent groove (I am still the radical that I have always been but I sell it in much smaller packages now) and believe that has led to much of the success and continuance of this forum.

Laissez faire: leave the people alone, let them be, in their economic activities, in their religious affairs, in thought and culture, in the pursuit of fulfillment in their own lives.

kataratak Member Nov 7, 2007 8:35 PM

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I agree. I appreciate hearing other sides of a story and differing points of view. But I don't find value or credibility when people resort to insulting others. The point gets lost. Having a forum where we can hear more of what is going on in our city is valuable to us all, but squabbling is not.

vblainev Obsessed Poster Nov 7, 2007 9:03 PM

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Thanks Buck
I apprecieate your input and value your opinion. It just became so frustrating. It seemed no matter what I said Daryl mainly but even others just wouldn't believe my stories. My frustration was I knew other employees were paying the price. Many of them are gone today!
Now Wendy is a great employee and HAS the cities best interest in mind. I believe the meeting they had with her was just to intimidate her and put her in her place. That's what they tried to do to me. Joe called me into a meeting with himself, Mark Glessner, Merrit Browm, Carl something or other, and a couple others. That's when I decided to stay the corse and get fired. Daryl even told Betty Gave that if I kept it up I would get fired.
So I'll take your words to heart and work on my delivery.

Edited by vblainev on Nov 7, 2007 9:04 PM

Stillwaters Advocate Nov 7, 2007 9:06 PM

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Excellent point kataratak!

"I never consider a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend." - Thomas Jefferson

kataratak Member Nov 7, 2007 9:34 PM

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It would be interesting to know if they offered a golden parachute, how much it is, what the contingencies are, and whether she takes it or not.

Stillwaters Advocate Nov 7, 2007 9:42 PM

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I agree, she made some pretty strong accusations toward Joe and if she can substantiate them it would definitely be in Joe's best interest to "shut her up".

"I never consider a difference of opinion in politics, in religion, in philosophy, as cause for withdrawing from a friend." - Thomas Jefferson

pgeme Member Nov 7, 2007 9:51 PM

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buck,sounds like you are saying that some people don't want to know the truth.they spend their day thinking things will get better on there own.or spend most of there spare time trying to convince everyone else everything is just fine.(must be a city official)everybody wants to shoot or blame the messenger when bad news comes out.wonder why all the commissioners and mayor wasn't briefed with evidence against wendy all at once?.must be they needed just 4 votes to fire her.SING WENDY SING.just remember wendy you will get another classification hung on you(disgruntled ex-employee).

kataratak Member Nov 7, 2007 9:52 PM

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Since she is a public employee, I would hope a "severance" would be publicized. It was interesting that in the article, the first reason stated for her dismissal was time card irregularities but then drifted off to other things.