Questions arise about city manager's spending in Poplar Bluff

POPLAR BLUFF, Mo. -- The city of Poplar Bluff has paid nearly $50,000 in just under three months to a man city manager Heath Kaplan used as a reference when applying for his current position.

Certified public accountant Neil Conway arrived Aug. 19 in Poplar Bluff, the day after Kaplan officially began work, according to a request made under Missouri's open records law.

The city is paying Conway $135 an hour for his services, as well as a $149 per day hotel and travel stipend when he is in town, according to invoices.

Conway opened Conway Consulting, his own full-time consulting business, in August.

Prior to that, he worked for decades as an accountant for a firm in Texas. He also worked on budgets for the city of Crandall, Texas, during the two years Kaplan spent there as city manager.

The city also has paid separate bills to Conway for train tickets and flights.

It picked up the tab for about $1,000 in Amtrak tickets in September and August, possibly to Dallas. Conway's business is in nearby Rockwall, Texas.

No receipts or other documentation have been received by the city with the invoices, according to the document request.

Six one-page invoices are the only paperwork that exist regarding Conway's employment with the city of Poplar Bluff. There is no contract and was no vote of the city council, the document request revealed.

Kaplan said Friday he hired Conway with the approval of Mayor Angela Pearson and mayor pro-tem Jack Rushin.

Hiring someone who was a reference is not a problem, he said.

"I don't have a financial interest in Mr. Conway's company," explained Kaplan, who said he also used Conway as a reference for his last position.

Kaplan said he had a short amount of time to work on Poplar Bluff's budget for fiscal year 2015. The budget must be approved by the city council before Jan. 1.

There was not time to do a request for proposals and receive committee input, the process he prefers to use, Kaplan said.

"I needed someone that I worked with before, that I could trust," Kaplan said.

City council members Ed DeGaris and Betty Absheer confirmed they were not consulted in the decision to hire Conway. Messages left Friday for council members Pearson, Rushin, David Johnson, Peter Tinsley and Johnny Brannum were not returned by press time.

DeGaris saw the invoices for Conway's work for the first time Friday, while Absheer said she was not aware of the amount that had been spent with his firm. DeGaris said the checks written to Conway would have been contained in several pages of ledger entries the council approves each month.

Both agreed Kaplan has the power to hire employees for the city, but also said they are concerned that Conway was a reference for Kaplan.

"It looks strange," said DeGaris, who believes the timing of Conway's arrival means the decision must have been made before Kaplan began work.

Kaplan has essentially created a new position for the city, with Conway's employment, said DeGaris and Absheer.

"You would normally expect a city manager to discuss this with the council," DeGaris said.

When asked about the spending, and amount of services and positions that have been filled without bidding or advertising, Kaplan called the question "unprofessional" and "insulting."

These aren't questions the public has, Kaplan said. These are the questions of Daily American Republic publisher Don Schrieber, he said he believes.

The city has entered into contracts with at least three companies Kaplan has worked with previously, without undergoing a full bidding or advertising process.

The city has committed to spend $9,000 on an electric rate study with Utility Financial Solutions and almost $1.8 million on technology with Information Systems Intelligence. Kaplan worked with both of the Michigan companies while employed by cities in Michigan.

Time constraints were also cited when selecting ISI, which was approved under a state law that allows cities to purchase equipment without competitive bidding if the price is equal or better than state contract prices.

There is nothing illegal in his actions, Kaplan said.

Pertinent address:

Poplar Bluff, Mo.