Thursday, November 11, 2010

Board of Supervisors pays Eric Hamer over $24,000 a month, no contract for two years

JJ reviewed public records and determined Madison County paid board attorney Eric Hamer $654,699 in fees since July of 2008. The Board of Supervisors hired Mr. Hamer in January, 2008. The fees were obtained through public records request and a review of the online claims docket. Mr. Hamer's average monthly fee is $24,248 (See bottom of post for listing of all claims and related calculations).

Section 19-3-47 of the Mississippi Code states:
"(a) The board of supervisors shall have the power, in its discretion, to employ counsel by the year at an annual salary at an amount that it deems proper, not to exceed the maximum annual amount authorized by law for payment to a member of the board."

A board can thus hire an attorney for one-year terms and can't be paid more than a Supervisor. The statute does allow for special work that needs to be done:

"(b) The board of supervisors shall have the power, in its discretion, to employ counsel in all civil cases in which the county is interested, including eminent domain proceedings, the examination and certification of title to property the county is acquiring and in criminal cases against a county officer for malfeasance or dereliction of duty in office, when by the criminal conduct of the officer the county may be liable to be affected pecuniarily, with the counsel to conduct the proceeding instead of the district attorney, or in conjunction with him, and to pay the counsel out of the county treasury or the road fund that may be involved reasonable compensation, or if counsel so employed is retained on an annual basis as provided in this subsection, reasonable additional compensation for his services."

The Attorney General has chimed in more than once on how a county attorney is to be treated. The 2004 Flanders opinion states:

"May the county pay the Board Attorney on an hourly basis for all his services?
No. Section 19-3-47 requires the Board of Supervisors to pay its Board attorney an annual salary. In the event that the Board of Supervisors finds that there are special cases or circumstances which are not within the scope of the duties of the regular board attorney; that additional legal services are reasonable and necessary for conducting the county's business; and spreads such findings on its minutes, the board has the discretion to hire either the board attorney or another attorney on an hourly fee contract to attend to those additional legal needs. MS AG Op., Wolfe (May 11, 2001).

The opinion also states Mr. Hamer is an employee:
"Is the county board attorney an employee or not?
Yes. Section 19-3-47(1)(a) states that the board of supervisors “may employ” counsel at an “annual salary.” Thus, counsel for a board of supervisors is a county employee and not an independent contractor."

Flanders also states the attorney is to be employed from year to year:
"Based on the above cited statute, it is our opinion that employment of a county board attorney pursuant to Section 19-3-47(1)(a) is for a one year term. Termination of such board attorney prior to expiration of the one year may only be for cause and due process must be afforded. MS AG Op., Hall (August 9, 2002)."

Then-Attorney General Mike Moore reinforced this opinion with his own in the 2002 Hall opinion:
"Based on the above cited language, it is our opinion that employment of a county board attorney pursuant to 19-3-47(1)(a) is for a one year term. Termination of such board attorney prior to expiration of the one year may only be for cause and due process must be afforded"

The Madison County Board of Supervisors did not hire Mr. Hamer as prescribed by Flanders, Hall, or the statute. The minutes from the January 28,2008 meeting state:
"Mr. Tim Johnson did offer and Mr. John Bell Crosby did second a motion to establish the salary of Board Attorney Eric Hamer at the annual sum of $42,000 with compensation for other legal expenses authorized by the Board will be at the rate of $195 per hour, to approve the letter of engagement as presented.."

The vote was unanimous. Mr. Hamer states in his letter to the Board "the applicable Mississippi Statutes are less than clear". Mr. Hamer opines the salary should only be used to cover his responsibilities "in preparing for and attending all the meetings of the Board" and a "review of the minutes and other matters" at the meetings." Here is a copy of the minutes and the engagement letter (right-click and rotate or download and rotate):




There is no ending date on the contract nor is one mentioned in the minutes. A review of the minutes in 2008, 2009, and 2010 show that the issue of Mr. Hamer's employment was never raised nor was a new contract issued by the board. In light of the standards raised by Section 47 and the AG opinions, the question must be asked if the payments to Mr. Hamer were legal and if the Board should be held responsible. The State Auditor alluded to this when he said contracts lacked termination dates. The Board met on September 30 stated in the minutes:

"The Minutes of this Board of January 28, 2008, particularly as they pertain to the term of the Letter of Engagement with Board Attorney Eric Hamer, are hereby amended so as to reflect that the term of such contract shall run concurrently with the term of office of the current Board of Supervisors."

The only problem with this resolution is the statute clearly states the board attorney is to be employed year by year and not for a four-year term. Mr. Moore and Mr. Hood both state this in their opinions (It should be pointed out such opinions are not binding.).

If Mr. Hamer is indeed an employee and not an independent contractor, the question must also be asked if the county withheld his taxes and if the county faces any liability to the IRS and State Tax Commission as the invoices state every month the County pays Mr. Hamer $3,500 a month in salary.

Thus, the Madison County Board of Supervisors paid Mr. Hamer over $24,000 a month on average for over two years with no contract as apparently required by law. Mr. Hamer is projected to make over $320,000 from representing Madison County if this year holds. By contrast, Attorney Crystal Martin represents the Hinds County Board of Supervisors and is paid only $45,000 a year and works part-time. There are no invoices to Hinds County because Mrs. Martin is paid strictly on salary and not for any extra "special work".

Next post: A review of Mr. Hamer's invoices.


Note: The Board of Supervisors approved the following invoices on the claims docket:

July: 2008: $15,945
August 2008: $20,529
September 2008: $23,287
October 2008: $22,859
November 2008: $19,698.86
December 2008: $20,219
Total: $122,537


January 2009: $22,040
Feburary 2009: $26,925
March 2009: $28,883
April 2009: $29,495
May 2009: $23,046
June 2009: $21,382
July 2009: $23,293
August 2009: $15,988
October 2009: $24,182
November 2009: $19,692
December 2009: $21,865
Total: $256,791

January 2010: $18,660
February 2010: $28,300
March 2010: $29,175
April 2010: $30,436
May 2010: $23,513
June 2010: $27,845
July 2010: $22,910
August 2010: $35,567
September 2010: $30,364
October 2010: $28,601 (pending but included below)
Total: $275,371
Projected for 2010: $323,867 (Using average payment for Nov. & Dec, projections not included in overall total)

Overall total: $654,699
Number of months: 27
Average amount paid per month: $24,248

Note: Paid $3,500 per month salary included in each monthly claim.

13 comments:

Anonymous said...

Incoming comments about all of this being much ado about nothing in 3 ... 2 ... 1.

Anonymous said...

Vomit.

Was this issue specifically addressed in the auditor's report, other than alluding to the contract termination dates?

Kingfish said...

Nope. not at all.

Its just sloppy business practices.

Anonymous said...

Agreed. Most businesses would just hire in-house counsel for far less than what this guy is being paid. We have this and the Rudy thing. What else is out there?

Anonymous said...

I agree, 11:06, there are a lot of competent lawyers, many in Madison County, that would take this job in-house for 90-125,000 and be thankful to have it. That would be tremendous savings to the county. The county could still hire outside counsel to defend it in litigation. (and before somebody chimes in about hiring outside counsel, in-house counsel usually isn't equipped for heavy litigation).

Anonymous said...

Madison County is suing MDOT over the Reunion Parkway project. It sounds more like a political move by the county to save face. If the judgment is in favor of MDOT, do the Madison County taxpayers still have to pay Hamer's "special" fees? I'm sure the answer is "yes".

Kingfish said...

I think the minutes that cover him recovering the $660,000 apply to the MDOT actions.

Anonymous said...

To 11:06 A.M.'s question:

Plenty.

Cindy Cobb said...

If he is doing his job, he should get paid his fee.....evidently, he is.

Anonymous said...

how much did sarah o'reilly evans make on bond work. does madison pay for bond work.

Kingfish said...

She got paid quite a bit. She stuck a clause in her contract that she got paid up to 1% for all bond work. She was the main one that instigated the proposed interest rate swap last year. The current attorney doesn't get paid anything extra for bond work.

Anonymous said...
This comment has been removed by a blog administrator.
Kingfish said...

Yet another threat.



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