Police Report filed after City officials break into NN

wesp · **Posted:** Sat Sep 13, 2014 10:05 am

Quote:

Melody Van Camp was sworn into office as the new Ely mayor outside of City Hall on Friday. Van Camp was selected from a pool of four candidates who applied for the position by the City Council at their meeting on March 13.

The council reached a 2-2 tie after councilman Randy Lee nominated Van Camp for the position. Lee and Bruce Setterstrom voted in favor of Van Camp, with Marty Westland and Sam Hanson voting no. Mayor Pro Tem Dale Derbidge stepped in and broke the tie with a yes vote.

This is not as unusual as it seems. In a nearby town (pop. 250), the citizens elect the city council and the council elects one of its own to be mayor. This also happens on many non-profit boards whereby the nominating committee proposes a site of directors, and then the directors vote among themselves for the leadership positions. Such is the case with our homeowners association.

Wesley

Chris Webster · **Joined:** Sat Aug 25, 2007 12:45 am **Posts:** 1087

An article in the Las Vegas Sun: Recall drive launched vs. Ely City Council members (September 12, 2014)

Here's a short excerpt:

Quote:

"The way the public is hot right now, I don't anticipate we'll have any trouble whatsoever in getting (the required) number of people to sign," Stork told The Ely Times (http://bit.ly/1rUBrPY ).

Van Camp said the council's greatest concern is the railway's debt of nearly $600,000, not including another $375,000 or so under a contract with S&S Shortline.

Asked about her reaction to the recall drive, she replied, "I'm disappointed that people don't want to face the truth, but we were elected and appointed to do a job. We only want the best for the city and the railroad, and we are going forward with the forensic audit."

City Council members were present Sept. 2 when White Pine County Commissioner Mike Coster entered the railway's offices through a second-floor window in order to unlock the front door to let an auditor inside. Coster said he took the action as an individual, not an elected official.

superheater · **Joined:** Sun Aug 22, 2004 11:54 pm **Posts:** 2605

Interesting that the City of Ely is running 68K in the red,

https://docs.google.com/a/elycity.com/v ... YTU1MTA1Ng

And that they do not post audited financials for their citizens, who presumably have rights.

Perhaps their citizens should find a an attorney to give them the green light and enter city offices over some weekend and start downloading data from city computers.

Chris Webster · **Joined:** Sat Aug 25, 2007 12:45 am **Posts:** 1087

A youtube video of the August 7, 2014 Ely City Council meeting, during which the council voted twice to remove Railroad Management Board Chairman John Gianoli and Vice Chairman Steven Leith:

Youtube: August 7, 2014 Ely City Council Meeting (Part 3 of 4)

According to the White Pine News, the first vote was as the council sat as the Railroad Board of Trustees, and the second as the City Council.

dinwitty · **Joined:** Wed Oct 22, 2008 8:18 pm **Posts:** 2226

you make a phone call to the railroad office..."When ya open? I'd like to check your financial records". Dont friggin worry about if visitors are there. Its breaking and entering all the way.

This is mob style business, "Ya Boss, we' don'ta wanta maka any noise about it, we justa sneak in an da take it"

The decision makers top down are all in the wrong about it.

Chris Webster · **Joined:** Sat Aug 25, 2007 12:45 am **Posts:** 1087

An update from The Ely Times: Judge to rule on railroad board lawsuit (October 10, 2014)

A short excerpt:

Quote:

The lawsuit filed by the Railroad Management Board against the Ely City Council and Railroad Board of Trustees is expected to be ruled upon by Chief Justice Robert Rose on Oct. 14 at 1 p.m. in the White Pine County Courthouse. Rose, a former Chief Justice of the Nevada Supreme Court, is expected to make a decision on a preliminary injunction in court on Oct. 14 or 15.

Chris Webster · **Joined:** Sat Aug 25, 2007 12:45 am **Posts:** 1087

Here are the links to and short quotes from a pair of Ely Times articles that were published last month:

Gianoli, Leith reinstated on railroad board (September 19, 2014)

Quote:

As part of an agreement reached by both parties to the railroad management board’s lawsuit against the Ely City Council, former Chairman John Gianoli and Vice-Chairman Steven Leith have been reinstated to their respective positions on the board until a court rules on the pending suit.

Their newly appointed replacements Judy O’Brien and Terry Walker have both been “stayed” until the same time frame.

and

Shortline answers questions (September 26, 2014)

Quote:

Anyone who has attended an Ely City Council meeting in recent months knows that much has been made of the rail car storage agreement between the Nevada Northern Railway and S&S Shortline.....In an exclusive interview with The Ely Times, S&S Shortline’s Manager Mike Williams looks to clear things up and let the Ely community know why his company’s involvement in the railroad is so important.

The full interview is worth reading.

Chris Webster · **Joined:** Sat Aug 25, 2007 12:45 am **Posts:** 1087

Another update from the Ely Times newspaper: Judge rules in railroad lawsuit (October 24, 2014)

Two excerpts from the article:

Quote:

After hearing two days of arguments from both sides, former Nevada Supreme Court Chief Justice Robert Rose reach a ruling for preliminary injunctions regarding the lawsuit filed by the Railroad Management board against the Ely City Council. In his ruling, Justice Rose found the Ely City Council and Railroad Board of Trustees in violation of Nevada’s Open Meeting Law during their Aug. 7 city council meeting in which the council removed the Chairman and Vice-Chairman of the management board from office.

As part of Rose’s ruling, both John Gianoli and Steven Leith would be immediately reinstated as the two heads of the management board and their two appointed replacements, Judy O’Brien and Terry Walker, were null and void due to there being “no legally recognized vacancy” for them to fill.

and

Quote:

Before adjourning the court, Justice Rose warned both parties that their continued fighting will only hurt the “goose that lays the golden eggs,” referring to the railroad. He called this a “new time for the railroad” and that while in the past, both the Board of Trustees and the Management Board had acted as “co-equals” that this City Council and Board of Trustees do have the authority and that the current management board would have to “get used to it.”

“So, with those kind of cautionary remarks about continuing, I would much prefer to see you try to work it out,” Rose said.

dinwitty · **Joined:** Wed Oct 22, 2008 8:18 pm **Posts:** 2226

Would this null and void the breakin decision and equipment returned?

There isnt a decision on that. And what about the apparent debt the railroad has?

Perhaps the removal of those involved in the breakin decision gets that job done.

Heavenrich · **Joined:** Mon Aug 23, 2004 11:07 am **Posts:** 630

dinwitty wrote:

Would this null and void the breakin decision and equipment returned?

There isnt a decision on that. And what about the apparent debt the railroad has?

Perhaps the removal of those involved in the breakin decision gets that job done.

From the Ely times article
------------------
Judge Rose’s ruling also stated that there was no violation in the June 26 meeting of the Ely City Council, where the council approved spending $10,000 for a forensic audit of the railroad’s books. The audit, which had been on for weeks waiting on a ruling from the judge, will continue as planned.

“I think that agenda item was sufficiently clear and sufficient. So no injunction relief will be given with regard to the authorization of the forensic audit or its continuation,” Rose said.
-------------

I would suggest not speculating on what the audit will find.

Bob H

Brian Norden · **Posted:** Mon Oct 27, 2014 8:57 pm

But, what about the method used to obtain information for the audit?

That might be an entirely separate item from the actions of the City (or is it the County?) council to change the membership of the governing board and to authorize the audit.

Heavenrich · **Joined:** Mon Aug 23, 2004 11:07 am **Posts:** 630

Brian Norden wrote:

But, what about the method used to obtain information for the audit?

That might be an entirely separate item from the actions of the City (or is it the County?) council to change the membership of the governing board and to authorize the audit.

This particular court case involved violations of the Nevada Open Meetings act... the audit itself is a separate issue.

Bob H

dinwitty · **Joined:** Wed Oct 22, 2008 8:18 pm **Posts:** 2226

they spent 10,000 bucks to do an audit..

the problems may only get deeper here.

robertmacdowell · **Posted:** Wed Oct 29, 2014 12:26 pm

dinwitty wrote:

you make a phone call to the railroad office..."When ya open? I'd like to check your financial records". Dont friggin worry about if visitors are there. Its breaking and entering all the way.

This is mob style business...

Wrong. Giving advance notice of the audit is worse than useless. It gives the crook time to cook the books and cover his tracks so you are left with nothing to prosecute. For the innocent man, things are also worse, because now a cloud of doubt hangs that he did the same. Whereas a blitzkrieg seizure catches both off guard, nailing the bad guy and fully clearing the good guy.

Who initiates an audit? The owner of the assets audited and thus the accounting books documenting them. You are saying the owner does not have a right to decide how and when his own property is used.

It is common to be distracted by the "injustice" done to the bookkeeper, what amounts to a petty injury to their vanity... and an inevitable and necessary part of the job. Don't like it, don't keep books.

What? Huh? due process? innocent until proven guilty? Fifth amendment, unreasonable search and seizure? How does that fit in? It applies to the owner. Not the bookkeeper. He is an employee maintaining others' data about others' assets. He has no due-process rights pertaining to data/assets he does not own.

Oh, and there's more. EVERY director has absolute and total right of inspection to every asset the company possesses. Further, they have a fiduciary duty to act on suspicions.

superheater · **Joined:** Sun Aug 22, 2004 11:54 pm **Posts:** 2605

“you make a phone call to the railroad office..."When ya open? I'd like to check your financial records". Dont friggin worry about if visitors are there. Its breaking and entering all the way.

"This is mob style business...”

"Wrong. Giving advance notice of the audit is worse than useless. It gives the crook time to cook the books and cover his tracks so you are left with nothing to prosecute. For the innocent man, things are also worse, because now a cloud of doubt hangs that he did the same. Whereas a blitzkrieg seizure catches both off guard, nailing the bad guy and fully clearing the good guy."

“Oh, and there's more. EVERY director has absolute and total right of inspection to every asset the company possesses. Further, they have a fiduciary duty to act on suspicions.”

And the right answer goes to dinwitty.

An EXTERNAL audit properly conducted (outside of certain regulatory or investigative actions, conducted by an appropriate agency) is a professional service; not a surprise inspection or law enforcement action.

An audit is designed to review financial records (and as importantly, how transactions are routinely initiated, accumulated, classified and recorded in the normal course of business).

It is less than useless to look at financial records (and no audit inspects 100% of anything) without having some idea how they are designed to be prepared and how actual practice adheres to intended procedure.

Indeed, without such observations and inquiries, one doesn't know where to concentrate one's efforts and the auditor's judgment about any transaction can be affected by his or knowledge of the intended and actual methods of preparation, accumulation, classification and recording.

The idea that an auditor slips into an office outside of normal business hours and starts rifling through "the books" in order to yell "gotcha" might make an interesting and entertaining script in Hollyweird, but it would be as realistic as "Unstoppable" or "The Atomic Train".

As for the owner's right of inspection, it is almost always explicitly conditioned on being "reasonable" (prearranged, during normal business hours, and without disruption).

Of course, if you are not licensed, trained and experienced you might not know these things. That's why I'm pleased to dispose of such fallacies and myths.