County Employees keep Copeland Logs
Transcripts tie former Chowan manager Copeland to 'fault'
By Ritchie E. Starnes
Chowan Herald editor
Tuesday, June 29, 2010
Former County Manager Cliff Copeland acknowledged responsibility for the Capstrat controversy that cost county taxpayers $260,000 for what has since been deemed suspect assistance, according to conversation transcripts.
Then County Manager Peter Rascoe detailed an April 29, 2009 conversation with Copeland. The conversation occurred at 8:30 a.m. in the parking lot at John A. Holmes High School parking lot and after a Rotary Club breakfast. It was then that Copeland initiated a discussion with Rascoe, according to the log that included copious detailed conversations between Copeland and county employees that occurred when confronted by the retired manager and after Chowan’s near financial collapse.
“(Copeland) did comment about Capstrat saying ‘That was my fault. Things got hectic’ and he said ‘I assumed the town was contributing to it and they were not. (Mayor) Roland (Vaughan) says he didn’t say it, but he just doesn’t remember saying it,’” Rascoe wrote.
When asked last week about his comments, Copeland again accepted responsibility.
“I was responsible,” Copeland said. “I was the county manager at the time and that’s how the system works.”
Copeland admitted, however, that he did not know that staffers were documenting his comments.
On September 4, 2009 at 3:15 p.m., Copeland told County Clerk Susanne Stallings “he always thought the town was paying their share.”
Copeland paid Capstrat, a Raleigh lobbying firm, to assist on several projects and allegedly without the knowledge and required approval of the Board of Commissioners.
Chowan County and Capstrat have received subpoenas to turn over documents to federal authorities investigating the county’s near financial collapse in 2008. The U.S. Attorney’s Office for the Eastern District of North Carolina has initiated a probe of the near collapse, an investigation still pending.
County officials have repeatedly blamed Copeland for the financial woes that left the county unable to pay its operating expenses and at risk of a state takeover.
Transcripts also show that Copeland stated in conversations with staffers that Rascoe “panicked” after discovering the county could not meet payroll shortly after Copeland suddenly retired in June 2008.
Records also show that Copeland repeatedly offered to help with the budget woes. Rascoe said that early in the crisis, he and Lisa Jones, county finance officer, took Copeland up on his offer.
“Lisa and I went over to his house for him to come clean with the budget,” Rascoe said Monday. “We laid it out on his dining room table.”
But, Copeland had no answers. He sat quietly, scratching his head while staring at the documents, Rascoe said.
“He kept saying Sandy Point was going to come through,” Rascoe said. “He said we were going to get a big sale and everything would be fine.”
Sandy Point, a 900-acre mixed-use development along the Albemarle Sound, was expected to be the financial pancea for Chowan County. Copeland, too, previously said the tax base generated by Sandy Point would bolster Chowan’s economy. Sandy Point has yet to materialize.
After Copeland retired, county officials discovered that the county had spent nearly the entire amount — $29 million — in its hospital trust fund account. They also were advised that the county had overestimated revenues for its 2008-09 budget by $3.8 million.
Chowan commissioners were forced to raise the property tax rate by 9 cents per $100 of property valuation. A year later, they had to raise the tax rate by another 3.5 cents.
Two months after Chowan discovered the shortfall, District Attorney Frank Parrish asked the State Auditor’s Office to investigate.
Transcripts show that Copeland repeatedly told staffers not to worry about the state auditor.
“Don’t say a word, Raleigh says this (auditor investigation) is a joke and he will be cleared of everything, kept saying he knew for sure and don’t say anything,” wrote Stallings about a 10:45 a.m. April 23 conversation between her and Copeland.
That state audit found plenty wrong, but nothing criminal. After the release of the report, questions arose about whether the state auditor had the authority to investigate. The Auditor’s Office also retracted comments in the document specifically related to Capstrat.
At times, Copeland would call county staffers and disguise his voice as a state auditor or a reporter, according to the documents.
Copeland also told staffers that he was being enticed to run for county commissioner in District 3. Records show that “he said he was thinking about doing it to help us out.”
Copeland denied the remark, adding that he may have joked about it.
“Why would I run, I couldn’t win,” Copeland said.
After Rascoe announced in May that he was resigning as county manager to take the town manager’s job at Southern Shores, Copeland again called and said he was going to apply for the county job.
It was Rascoe that instructed staffers to document their conversations with Copeland due to potential litigation. Rascoe said he and county employees did all they could to discourage Copeland from talking or visiting the county office building and engaging in unsolicited discussions.
Commission Chairman Eddy Goodwin agreed that the log served as a precaution to protect county employees.
“When you get a man who is no longer an employee still coming in the county office building and being disruptive, something had to be done,” Goodwin said. “Employees have a right to conduct their day-to-day operations without being disturbed.”
Wade Smith, Copeland attorney, said commenting on the transcripts would be inappropriate. Smith added, however, that he had visited Chowan County and seen the additions that Copeland spearheaded, including those allegedly gained with the aid of Capstrat.
By Ritchie E. Starnes
Chowan Herald editor
Tuesday, June 29, 2010
Former County Manager Cliff Copeland acknowledged responsibility for the Capstrat controversy that cost county taxpayers $260,000 for what has since been deemed suspect assistance, according to conversation transcripts.
Then County Manager Peter Rascoe detailed an April 29, 2009 conversation with Copeland. The conversation occurred at 8:30 a.m. in the parking lot at John A. Holmes High School parking lot and after a Rotary Club breakfast. It was then that Copeland initiated a discussion with Rascoe, according to the log that included copious detailed conversations between Copeland and county employees that occurred when confronted by the retired manager and after Chowan’s near financial collapse.
“(Copeland) did comment about Capstrat saying ‘That was my fault. Things got hectic’ and he said ‘I assumed the town was contributing to it and they were not. (Mayor) Roland (Vaughan) says he didn’t say it, but he just doesn’t remember saying it,’” Rascoe wrote.
When asked last week about his comments, Copeland again accepted responsibility.
“I was responsible,” Copeland said. “I was the county manager at the time and that’s how the system works.”
Copeland admitted, however, that he did not know that staffers were documenting his comments.
On September 4, 2009 at 3:15 p.m., Copeland told County Clerk Susanne Stallings “he always thought the town was paying their share.”
Copeland paid Capstrat, a Raleigh lobbying firm, to assist on several projects and allegedly without the knowledge and required approval of the Board of Commissioners.
Chowan County and Capstrat have received subpoenas to turn over documents to federal authorities investigating the county’s near financial collapse in 2008. The U.S. Attorney’s Office for the Eastern District of North Carolina has initiated a probe of the near collapse, an investigation still pending.
County officials have repeatedly blamed Copeland for the financial woes that left the county unable to pay its operating expenses and at risk of a state takeover.
Transcripts also show that Copeland stated in conversations with staffers that Rascoe “panicked” after discovering the county could not meet payroll shortly after Copeland suddenly retired in June 2008.
Records also show that Copeland repeatedly offered to help with the budget woes. Rascoe said that early in the crisis, he and Lisa Jones, county finance officer, took Copeland up on his offer.
“Lisa and I went over to his house for him to come clean with the budget,” Rascoe said Monday. “We laid it out on his dining room table.”
But, Copeland had no answers. He sat quietly, scratching his head while staring at the documents, Rascoe said.
“He kept saying Sandy Point was going to come through,” Rascoe said. “He said we were going to get a big sale and everything would be fine.”
Sandy Point, a 900-acre mixed-use development along the Albemarle Sound, was expected to be the financial pancea for Chowan County. Copeland, too, previously said the tax base generated by Sandy Point would bolster Chowan’s economy. Sandy Point has yet to materialize.
After Copeland retired, county officials discovered that the county had spent nearly the entire amount — $29 million — in its hospital trust fund account. They also were advised that the county had overestimated revenues for its 2008-09 budget by $3.8 million.
Chowan commissioners were forced to raise the property tax rate by 9 cents per $100 of property valuation. A year later, they had to raise the tax rate by another 3.5 cents.
Two months after Chowan discovered the shortfall, District Attorney Frank Parrish asked the State Auditor’s Office to investigate.
Transcripts show that Copeland repeatedly told staffers not to worry about the state auditor.
“Don’t say a word, Raleigh says this (auditor investigation) is a joke and he will be cleared of everything, kept saying he knew for sure and don’t say anything,” wrote Stallings about a 10:45 a.m. April 23 conversation between her and Copeland.
That state audit found plenty wrong, but nothing criminal. After the release of the report, questions arose about whether the state auditor had the authority to investigate. The Auditor’s Office also retracted comments in the document specifically related to Capstrat.
At times, Copeland would call county staffers and disguise his voice as a state auditor or a reporter, according to the documents.
Copeland also told staffers that he was being enticed to run for county commissioner in District 3. Records show that “he said he was thinking about doing it to help us out.”
Copeland denied the remark, adding that he may have joked about it.
“Why would I run, I couldn’t win,” Copeland said.
After Rascoe announced in May that he was resigning as county manager to take the town manager’s job at Southern Shores, Copeland again called and said he was going to apply for the county job.
It was Rascoe that instructed staffers to document their conversations with Copeland due to potential litigation. Rascoe said he and county employees did all they could to discourage Copeland from talking or visiting the county office building and engaging in unsolicited discussions.
Commission Chairman Eddy Goodwin agreed that the log served as a precaution to protect county employees.
“When you get a man who is no longer an employee still coming in the county office building and being disruptive, something had to be done,” Goodwin said. “Employees have a right to conduct their day-to-day operations without being disturbed.”
Wade Smith, Copeland attorney, said commenting on the transcripts would be inappropriate. Smith added, however, that he had visited Chowan County and seen the additions that Copeland spearheaded, including those allegedly gained with the aid of Capstrat.
