Grand jury issues 12 indictments in case against city

FORT SCOTT -- A grand jury on Friday issued 12 indictments stemming from a five-month investigation into allegations of criminal activity by Fort Scott city officials. They also devised a list of recommendations and comments that city officials may find beneficial to improve the functioning of the city.

Details concerning the number of persons indicted and what they've been charged with will be released once the Kansas Attorney General's Office has reviewed the indictments. The attorney general's office, which will lead the prosecution, will recommend to the Bourbon County District Court on whether to issue either a summons or arrest warrants for the person or persons indicted, Rick Guinn, an attorney for the AG's office, said.

Guinn said it will probably be the middle of next week before the office has thoroughly reviewed the indictments and "know what they have."

If the court issues arrest warrants, the public won't know until either law enforcement authorities serve the warrants or the person being arrested surrenders to authorities. A summons is an order from the court instructing the accused to show up at a certain time and day to answer the charges. Summonses are considered public record upon filing with the court.

The 12 indictments mean 12 of the 15 jurors agreed that an undisclosed person or persons allegedly committed an illegal act.

About 30 people milled around the outside of the courtroom at the Bourbon County Courthouse on Friday while the jury convened in secret. Once the closed session was over, the courtroom opened up and Sixth Judicial Chief Judge Richard Smith announced the results in a brief explanation of the grand jury's findings.

Since Aug. 29, when the grand jury was formed, jurors have convened on numerous occasions to investigate accusations of state and federal misconduct by Fort Scott city commissioners and staff.

Members of the Citizens Advisory Committee, a group formed two years ago, filed a petition in July, calling for a grand jury investigation. CAC members had circulated the petition around town for several months, generating nearly 400 signatures.

Some of the criminal violations alleged in the petition involve misuse of public funds, presenting a false claim, permitting a false claim, making a false writing and obstruction of official duty.

Local resident Mel Antrim, one of the architects of the petition, said he's was pleased with how many indictments the jury issued.

"It does show that there were things that needed to be discovered and that time, energy and effort needed to be put into an exploration of the operations of our city government," Antrim said outside the courtroom after the results were announced. "It also shows the kind of thing that can happen when we have a scenario where city government does not listen to the public...and does not keep their financial records transparent."

Antrim also said it shows that the people who signed the petition "had their heads on straight" by calling for a grand jury to investigate alleged wrongdoing.

An attempt to reach Fort Scott City Manager Richard Nienstedt for comment Friday, after the grand jury's findings were released, was unsuccessful. A number of the 12 allegations listed in the petition involved Nienstedt's managerial conduct.

Smith, speaking on behalf of the jurors, said "I know what they have gone through has caused them a great deal of heartache."

The jury found that most of the issues alleged in the lengthy petition did not involve any criminal activity.

They decided, in the interest of the community, to issue a 16-point list of recommendations to the city. Among these suggestions were restructuring of the finance department, term limits for commissioners, financial an budget education sessions for commissioners, procedural and employee development education for all personnel, and development of written policies for fiscal procedures, vendor bidding procedures and disposal of surplus goods.

In addition to the recommendations, they drafted a list of four comments on allegations raised in the petition. The comments said the city did not misuse property confiscated in drug raids, the amount of salt storage in a particular flood plain was not in violation of Kansas Department of Health and Environment standards, and everything was handled appropriately within the scope of economic development concerning land deeded over to a new owner before they built a local movie theater.

However, "They found something that somebody might want to consider and look at," Smith said.

Smith said taped testimony of witnesses, transcripts, the case file, and minutes will be sealed and not considered public record, since the grand jury operated under the veil of secrecy, because it is considered a criminal investigation rather than a trial.

The grand jury's recommendations are as follows:

* Restructure the finance department and add at least one finance clerk.

* When a grant is approved for any city department, the finance director should monitor the grant. All grant applications should be filed in a central location.

* Continue the processes of checks and balances, daily balancing and financial reporting to the commissioners.

* Develop a written fiscal and monetary policy to help ensure continuity when there is a change in the finance director personnel.

* Educate all personnel on proper purchase order procedures.

* Develop a written policy that addresses how oversight of the finance department will be carried out in the event of an absence of the finance director.

* Continue to enhance the inventory asset management to assist with capital budgeting and management, and develop a written policy for it.

* Develop a written policy for the disposal of surplus goods.

* Develop a written policy addressing the purchase bidding process, including guidelines for when a bid is required.

* Require vendors who want an opportunity to bid on something to register with the city and renew registration annually.

* Develop and implement a process for hiring of department heads that includes an interview process by a panel of individuals from the community with experience in the position being filled.

* Make a blank evaluation form available to the public for use in evaluating the city manager's performance, which can be filled out and turned in to a city commissioner.

* All city commissioners should attend an annual education session presented by the finance department to help them understand and interpret the financials, budget and cash law. Commissioner attendance at this orientation should be noted and made public.

* A proposition for term limits should be placed on the next ballot, with the maximum suggested limit of eight consecutive years.

* The city manager and city commission should develop a long-range plan.

* Employee development training should be provided to all city employees, beginning with management personnel in the areas of communication and team building or team work.

The grand jury also issued the following comments concerning the allegations in the citizens' petition:

* Misuse of property confiscated in drug raids: There are statutes that govern the disposal of property that is confiscated in drug raids. The grand jury found that these statutes were properly followed by the City of Fort Scott.

* Kansas Department of Health and Environment violations: Per the information the grand jury received from KDHE, the amount of salt storage in the flood plain is not in violation.

* Police monitoring of drug houses in the area: Usually there are other entities, such as federal and state agents, involved in drug surveillance in the area. In those situations, the local police may be told to ignore those houses.

* The purchase of land and the improvement to the land for the theater, including the paving of the parking lot, was an economic development project. Everything was handled appropriately within the scope of economic development prior to deeding the improved land over to the new owners.