Questions surround Marmet mayor’s actions

May 29--Longtime mayor accused of cronyism; residents back employee

The mayor of Marmet says he didn't unlawfully fire the Eastern Kanawha County town's popular public works director, nor did he know he violated the man's privacy.

Mayor Bill Pauley, 86, has been accused of cronyism in last week's firing of Johnny Walker, the town's public works director, who was hired in April 2013 on a contractual basis to replace retiring director Jimmy Halstead. Walker is retired from the state and told the Daily Mail he preferred to work on a contractual basis -- and pay his own health insurance and taxes -- so he could continue to draw from his state retirement plan and to save the town money.

But an audit conducted earlier this year found Walker should be classified as a full-time employee, not a contractor. Pauley said he wrote the Internal Revenue Service to seek advice, and disclosed Walker's Social Security number in the letter. Walker has requested copies of the letter, but Pauley so far has refused to cooperate. Members of town council also have been unable to verify the facts Pauley provided to the IRS regarding the terms of Walker's employment.

Walker's contract was approved April 15, 2013. According to the terms of that contract, either Walker or the town can terminate employment with 30 days' written notice and just cause.

But last Friday, Walker received a termination letter from Pauley's office hand-delivered by the town's chief of police. In the termination letter, dated May 22, Pauley notes he opposed Walker's hiring, as the position had always been considered a full-time town employee position, not a contractor position. The audit prompted him to contact the IRS, Pauley wrote, to find out if Walker's position qualifies as an independent contractor's position. According to Pauley, the IRS determined Walker as a "common law employee and not an independent contractor operating a trade or business."

"The fact that the IRS ruled that your status is not that of an independent contractor and that you are a common law employee has prompted me to cancel your agreement with the Town of Marmet effective immediately," Pauley wrote in the termination letter. "I am requesting you return all keys and cease all operations and duties of the public works director immediately."

But Pauley said he never fired Walker.

"I think the town is better off with him," Pauley said.

The issue came to a head at Tuesday's council meeting, where about 150 people packed city hall. Most were there to support Walker, who Councilwoman Debbie Skeens said was a "good, Christian man."

"Johnny is the best thing to happen to this town in years," Skeens said. "If a few people would put forth the same effort to do something positive as they do to do something negative, we wouldn't be having this conversation."

Walker said a member of city council approached him in April 2013 and asked if he would like the position of public works director. He drew up his part of the contract and had an attorney review it, as did Marmet town attorney Richie Robb. Council voted on the contract and Pauley signed it. But Walker said Pauley immediately began working against him.

"The very next day, the mayor calls the county commission and said he got an opinion from the county commission and their attorney that the contract was illegal," Walker said. "I have another letter from (former town recorder David) Fontalbert and their attorney saying they were misrepresented. I have that in writing. Their attorney did not state the contract was illegal, they didn't care who they hired or how much they paid. From that day forth it's been on and off."

Walker said he believes Pauley wanted to appoint someone else as public works director upon Halstead's retirement, but council overruled him.

"He's been upset with them since then," Walker said. "But after I started working, he said, 'I may have been wrong.' He would give compliments. But every time you turn around, I hate to say I got stabbed in the back or my throat cut, but that's what's been happening."

Pauley sent Walker an SS-8 form from the IRS to fill out, and Walker said he took the form to Robb, who filled in Walker's part. The town filled out one as well. After the IRS received the forms, they determined Walker to be a common law employee and not a contractor.

"The mayor is saying in that case, he has the right to hire and fire the public works director," Walker said.

Pauley said he didn't know he violated any federal code when he included Walker's Social Security number in the letter to the IRS.

"I thought I was doing what they wanted me to do," Pauley said.

"I felt like I did what needed to be done," he added. "Johnny is a good man, a good worker. I don't have anything against him. I don't have anybody else in mind for the job -- nobody. He's a hard worker who does a good job."

Pauley said he thought as an ex-officio he had the authority to use Walker's personal information in the letter. Walker contends the only city official with authorized access to private personnel information is the town recorder.

Walker is still employed with the city, and Pauley said despite the IRS' findings, Walker could still have the job if he wanted it. According to the termination letter, Walker could have the job on a full-time town employee basis with a compensation package equal to that of the previous public works director.

Walker currently makes $60,000 a year, but pays about $500 a month in health insurance and $22,000 in annual taxes, leaving his take home pay at $37,920, according to documents he provided. Walker's contract with the town expires Nov. 18, 2015.

West Virginia State Police troopers worked during Tuesday's meeting to track down who wrote the letter to the IRS. They intended to confiscate the town's computers to study the hard drives and interview town officials to find out who disclosed Walker's personal information, but Pauley eventually admitted responsibility in a private meeting with troopers.

"He did break two federal violations," Walker said.

One of Pauley's secretaries actually typed the letter, but Pauley refused to identify which one. The troopers said they could seize the hard drives, but the State Police forensics lab is backlogged. Troopers did not remove any computers from town hall.

Walker said he intends to take civil action against the town so the secretaries will have to divulge information when they're subpoenaed. He's also going to file an ethics complaint.

"It's all a political thing," Walker said. "He wanted to hire somebody, but council hired me and it's been a battle since then."

Pauley has served as mayor for 30 years and said this is the first time he's dealt with anything like this.

"I've been audited for 30 years and haven't had any trouble," he said. "I just try to do what's right."

Skeens, who is serving her first term on council, said she's not pleased with how the issue has been handled. She said candidates in the next election will determine whether she runs again.

"This is my first go-round with small town politics, and it is terrible," she said. "If we get the right people in there, I think we can do a lot of good things."

Contact writer Whitney Burdette at 304-348-7939 or [email protected]. Follow her at www.Twitter.com/wburdette_DM.

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