Report on Covington’s Code Enforcement cites mismanagement, lack of policy manual and more

By Judy Clabes
NKyTribune editor

The first phase of an independent investigation of the City of Covington’s Code Enforcement Department points to gross mismanagement, the need for clear, complete policy manuals, allegations of selective enforcement, and a lack of training, professionalism, and internal controls.

A second report concerning the improper use of public resources for a private purpose will be issued in early November.

The 29-page report on the investigation, conducted by Scott White of Miller Edwards Rambicure PLLC of Lexington, was delivered to the city commission during an executive session on Tuesday. It began at the request of the City Commission and Mayor Joe Meyer in June, following the resignation of three code enforcement officers, including a manager, who complained about how the department was being managed.

Investigator White particularly commends Mike Stem, one of the Whistleblowers who resigned, for bringing the issues to light.

The other two Whistleblowers were CE Officer Rick Fox and manager Tom McDaniel. McDaniel subsequently declined to participate in the investigation.

The executive summary presented to the commission was accompanied by a nearly 3-inch stack of documents – copies of charts, emails, correspondence, data reports, etc. – that support the report.

White said he couldn’t confirm any “criminal activity” but that the “serious failure to properly manage the department creates an unacceptable risk to the health and safety of the citizens, visitors and taxpayers of Covington” and generates consequences that hamper the ability of the department to do its job.

He lists 16 people who were interviewed, in addition to city employees and elected officials who provided information and documents he requested.

“This clearly shows the need for well-qualified people in positions of leadership,” said Mayor Joe Meyer. “These people need to be measured by the quality of their work.

“Covington city government has been fundamentally broken.”

He says the report indicates a need for re-organization and restructuring, training, and adopting new technology and new procedures — which he hopes the commission will do over the next year, engaging the public along the way.

Investigator White pointed to:

No single document or manual on the operation of the Code Enforcement Department (CED)

As a result, he writes, “a regular person” who is subject to enforcement action can’t really understand the issues or identify a course of action.

There are no training manual, materials for answering enforcement questions or meaningful standards to assess an employee’s annual performance.

There is no written manual or set of guidelines that describe the basic operation of the CED and no outlines describing the “inspection-enforcement-adjudication” process. There was, he said, considerable “disconnect” of CED staff on some of the issues.

The lack of a central document “deprives CE officers and manager of a fundamental resource” to determine what constitutes a violation of the code.

Code Enforcement, White reports, is a “public health obligation” which ensures that the living and working environment within the city is focused on health and safety by enforcing property maintenance, nuisance and zoning codes.

Structure and operation of the CED

The department is mostly comprised of part-time employees and is divided into two units: interior and exterior. It uses Comcate, a software package that tracks a complaint from start to finish. Primary management is through supervision of city engineer Mike Yeager and now Walt Mace who took McDaniel’s place.

There is no standardized training of new employees.

Whistleblower accusations

After the resignations on May 23, Stem emailed an explanation to the acting city manager Loren Wolff and Mayor Meyer. He alleged an abusive work environment related to Kim Strategier, a full-time Community Services Coordinator who, he says, was routinely verbally abusive to her co-workers (an allegation also confirmed by McDaniel), refused to acknowledge McDaniel’s authority, and tampered with the work product of the CE officers, creating and sending new citations with their unauthorized signatures and editing information into Comcate without authorization.

Stem alleged that Strategier and Jim Ediger would use their authority for private purposes, that Strategier “doesn’t care for certain landlords” and would direct enforcement action against then and that Ediger “plays favorites,” overlooking violations from friends and targeting people he disliked.

Investigative process

White began by interviewing all three Whistleblowers, all former law enforcement officers. He then interviewed the other CE officers and related people.

Yeager, Strategier and Ediger all objected to Stem’s complaints, though White points out evidence that supports Stem’s story.

However, a critical witness would be McDaniel who decided to refuse to participate any further in the investigation, citing that he no longer “trusted the process” and said that nothing would be accomplished.

Findings

Abusive work environment and improper manipulation of Comcate:

“Stem and Strategier did not work well together, and the difficult relationship could not be resolved because Yeager refused to act or allow practical action from McDaniel.”

White later writes that Strategier “most certainly reacted in inappropriate ways on three occasions” but those were instances that appropriate employee counseling, HR support, supervisory intervention and a strict definition of her job responsibilities would have resolved.

He concludes that McDaniel’s refusal to cooperate with the investigation means that the accuracy of any of the more serious allegations cannot be confirmed.

Corrupt internal practices:

The concerns raised by Stem about the manner in which Comcate cases can be manipulated is questionable, White writes, though Strategier should have communicated better with Stem.

Use of Code Enforcement Authority for Personal Reasons

While the CED has significant management problems, the investigation did not prove misuse of authority. The issue, White conclude, relates to poor management – including keeping officers in their assigned service areas.

Mike Yeager

It’s here that Mike Yeager comes into the toughest criticism. White concludes that Yeager undermined the authority of McDaniel, micromanaged, exhibited poor management skills and failed to work through the chain of command.

“Yeager became enmeshed in employee management issues directly rather than allowing McDaniel to attempt a resolution,” White reports.

He further took a key full-time employee, Strategier, out of the supervisory authority of the manager.

“The combination of unrelated responsibilities in Yeager’s position has created an untenable situation,” White reports.

Yeager’s portfolio is too large and diverse to sustain the close level of scrutiny and management of the CED, he concludes.

Later he says that “Yeager’s behavior over the course of the investigation raises serious concerns about his judgment.” He cites numerous instances to support this conclusion.

“The fact that many of Stem’s allegations have to be considered uncorroborated is unacceptable,” White writes. “The City should have sufficient internal controls, processes and policies that the allegations can be proven or disproven. . .Stem was clearly credible and acted appropriately in all respects. . .

“Strong controls protect the accuser, the accused and the public trust. The State Auditor’s report on Covington’s Finance Department is replete with similar admonishments and findings as regards the Finance Department and the City administration as a whole . . . I strongly encourage the Commission and new City Manager to consult that report.”

Recommendations

1. Consult with the Kentucky League of cities to provide code enforcement officer training;

2. Assess the current assignments and workloads;

3. Mandate that Yeager undergo additional ethics training on the responsibilities of management during Whistleblower investigations. Review the city’s personnel policy and ethics guidelines to determine if disciplinary action is appropriate or necessary regarding his behavior.

4. Reorganize CED so that Strategier’s position is a direct report to the manager and better define the description of manager and

5. Put position descriptions into place and train managers to respect them.

Read the full report here.