Hallacy, Cedar Oaks Get $50,000 In Water Bills
Water bills for more than $50,000 have been sent by the City of Grove to the former owner of Cedar Oaks development on Highway 59, and the current Cedar Oaks Homeowners Association.
A bill for $40,095 was sent Wednesday to Frank & Pat Hallacy in Buckeye, AZ, with another bill for $10,424.83 to the Cedar Oaks LLC Homeowners Association, city officials confirmed Thursday.
The city said that if arrangements for payment are not made by March 5, the city will initiate appropriate legal action to insure collection. The matter has also been turned over to the Delaware County District Attorney's office, City Manager Bill Galletly said Thursday, to determine who made an illegal tap to the city's six inch main years ago.
The problem surfaced when GMSA personnel were called to Cedar Oaks development after January's ice storm to find and work on a water leak. While there, they found a two inch water line connected to the city's six inch main, with no meter and no record of a "tap." The connection supplies water for an irrigation system to a common area. According to the city, this line served an area over twice the size of the metered connection and has more than double the number of sprinkler heads. The city has estimated this usage at $26,746.50 billed to Hallacy, and $6,954.09 billed to Cedar Oaks LLC Homeowners.
As work continued, a second irrigation system was discovered, with a meter, but city records indicate that it was shut off by the city in 1999 but has since been turned on each season to allow for watering a second common area. Since that time more than 7.7 million gallons of water went through the meter, city officials said. A bill for $13,349.00 has been sent to Hallacy and a bill for $3,470.74 has been sent to Cedar Oaks LLC for this metered water useage of 7,779,300 gallons. Total water usage for both is nearly 16 million gallons. A third bill for $5,008.00 has also been sent to Cedar Oaks LL Homeowners for a two inch sprinkler meter and a water deposit fee.
Cedar Oaks development was the center of attention several years ago when some 900 truckloads of loads of dirt were taken from the Grove airport property to the development, without city approval, which turned out to be substandard for clay content, and a $7,800 donation by Hallacy was made to the Delaware Baptist Church for additional dirt with more clay content, court documents show. (See story, 9/7/05)
Phase II at Cedar Oaks was built on dirt dredged from Grand Lake, according to Hallacy's testimony in a previous court action, with Phase III built on airport dirt. Construction work on Phase III has been stopped and Hallacy's sale of the property to a Missouri developer is now the subject of another lawsuit.
A bill for $40,095 was sent Wednesday to Frank & Pat Hallacy in Buckeye, AZ, with another bill for $10,424.83 to the Cedar Oaks LLC Homeowners Association, city officials confirmed Thursday.
The city said that if arrangements for payment are not made by March 5, the city will initiate appropriate legal action to insure collection. The matter has also been turned over to the Delaware County District Attorney's office, City Manager Bill Galletly said Thursday, to determine who made an illegal tap to the city's six inch main years ago.
The problem surfaced when GMSA personnel were called to Cedar Oaks development after January's ice storm to find and work on a water leak. While there, they found a two inch water line connected to the city's six inch main, with no meter and no record of a "tap." The connection supplies water for an irrigation system to a common area. According to the city, this line served an area over twice the size of the metered connection and has more than double the number of sprinkler heads. The city has estimated this usage at $26,746.50 billed to Hallacy, and $6,954.09 billed to Cedar Oaks LLC Homeowners.
As work continued, a second irrigation system was discovered, with a meter, but city records indicate that it was shut off by the city in 1999 but has since been turned on each season to allow for watering a second common area. Since that time more than 7.7 million gallons of water went through the meter, city officials said. A bill for $13,349.00 has been sent to Hallacy and a bill for $3,470.74 has been sent to Cedar Oaks LLC for this metered water useage of 7,779,300 gallons. Total water usage for both is nearly 16 million gallons. A third bill for $5,008.00 has also been sent to Cedar Oaks LL Homeowners for a two inch sprinkler meter and a water deposit fee.
Cedar Oaks development was the center of attention several years ago when some 900 truckloads of loads of dirt were taken from the Grove airport property to the development, without city approval, which turned out to be substandard for clay content, and a $7,800 donation by Hallacy was made to the Delaware Baptist Church for additional dirt with more clay content, court documents show. (See story, 9/7/05)
Phase II at Cedar Oaks was built on dirt dredged from Grand Lake, according to Hallacy's testimony in a previous court action, with Phase III built on airport dirt. Construction work on Phase III has been stopped and Hallacy's sale of the property to a Missouri developer is now the subject of another lawsuit.
posted by Editor | 8:20 AM
57 Comments:
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To the darksiders trying to compare this with the HarBer Village or Simmons incidents:
This incident has nothing to do with either...HarBer was a tiny amount of water compared to this and there was no deliberate tap into a six inch water main. Simmons has already repaid half the amount owed, caught by vigilent city employees...
The Editor
Jim
Did Galletly turn over to the District Attorney the improperly turned off water meter at Harbor Village???
Jim
I'm not a dark sider I'm simply asking a question. I appreciate your reply though I disagree with your assessment of the Harbor Village bill. I remember it being approximatley 6-8 thousand? If you will read the news accounts of the Harbor Village water issue they are very similar. I have refrained from calling you Darth Varder and I would appreciate you not refering to me as a dark sider.
Jim
I checked at City Hall earlier this week and found that Galletly has never deposited Simmons check for partial payment of their $960,000.00 gas bill. Am I wrong or are you wrong concerning your statement that the city has collected the bill. Also why is the City not depositing the check?
Is there any truth to the rumor that Simmons owes Grove $960,000.00 and if so how much does Simmons owe the city and how much has been paid.
Simmons was billed for $885,329.60 which included interest and overage fee of 30%; they have paid to date $482,762.20 with a balance of $402,567.40 owed, according to the city. Simmons is disputing the balance as of Feb. 12 based on what they paid their own supplier at the time. The issue is currently in the hands of the City Attorney. The check has not been cashed since this may legally indicate that the city has accepted this as payment in full, which it has not.
The city has been tracking down water and gas usage that is unpaid; the diligence of Debbie Mavetty and Jim Reiling in tracking down the Simmons problem should be cause for praise, not an election issue.
We are tracking down the HarBer water faucet matter and will give you the full details when we get them. In the meantime, please try to restrain from posting false information.
The Editor
Great story Jim!
It's amazing that your sleuthing ability has turned up this great story .
Your vacation sure didn't last long!
If there was an improper tap the City should collect all monies due.
But before you get too rough on anybody remember this same situation happened at Habor Village and the City wrote off the bill. I thought it was wrong to write off that bill or any funds due the taxpayers. But before the City goes suing someone they should get their bills and facts straight before turning Galletly loose at the courthouse. If you remember Galletly without authorization from the City Council sued Shero and cost the city $50,000.00 for his improper lawsuit.
Galletly accused the head of GMSA of illegal activity and was wrong.
Galletly accused Airport Authority members of illegal activity and was wrong.
Galletly's tract record of getting the facts straight is not good.
What is the status of the $885,000.00 natural gas bill Galletly failed to collect Simmons for?
It's been over 8 months since this was discovered and still not collected. Has Galletly started his lawsuit against Simmons yet?
Of course a $50,000.00 bill is much more important than a $885,000.00 bill.
But maybe there is more to this story that what Galletly is telling.
PRAISE!!!! for the diligence of Debbie Mavetty and Jim Reiling in tracking down the Simmons problem.
Now who or what employee failed to bill Simmons the last three years?
Should anyone be held accounable for failure to bill Simmons $885,000.00.
GMSA reads my gas meter every month and I can't believe they would let me get $885,000 behind in my payment. I suspect my meter would be cutoff until I paid.
Jim
Whats an overage fee?
Jim
Vigilant is spelled with an a.
I know you hate misspelled words.
I have not had an oppurtunity to read the above article but want to respond to some of the comments. In council meetings the City Manager and other officials working for the city have said the Simmons # is $890,000.00. I believe the city is now tacking on interest to this loss and may be why it is now higher. Around $476,000.00 dollars was collected but The check has not been cashed because if it is then they will not be able to collect the rest. By cashing the check the city is accepting as a final settlement from Simmons $476,000.00.
It was a good thing that the City finally caught this mistake. The Spin from the papers is that the city found $900,000.00. What the people should be asking is how did they lose it in the first place? Grovepac.org has a story on this and will be talking more about this issue in the future including Grove having the highest Natural Gas rates in the State.
Grove $12.06 mcf
Afton $11.62
fairland $10.65
Jay $10.51
commerce $8.59
Vinita $8.59
Miami $8.59
The GMSA gas users should be hopping made for having to pay for this mistake the last three years on top of improperly purchased gas futures.
Editor: I appreciate your forum for allowing all to have there word on a topic. I will not agree on all of your stories you write but have found many to be very good. I also appreciate and belive that improper postings with foul language and harsh attacks should be removed.
Thank You.
Mr. Kyman and Editor
I have never used foul language on this blog. Nor do I believe my questions to be improper.
The Editor has chosen to delete blogs that he disagrees with. So much for journalism.
Are you folks telling me the city raised my natural gas bill while failing to collect almost 1 million from simmons? Does the Mayor know about this?
I do not know what is written because they are removed, just assuming they had bad language. as for the mayor knowing, the answer is yes. She is a member of GMSA as well as David Helms and Terry Ryan all Council Members. In a December 06 GMSA meeting this 900,000 dollar loss was brought up and the question was asked of the board if the GMSA Gas Consumers would be rebated for this mistake. Bill Galletly said no it is the cost of doing buisness and none of the Board Mambers spoke on behalf of or for the consumers.
This is and should be an election issue. When grove is paying more for natural gas then any other city around it, and the city has been negligent in tracking and recording its own natural gas and water supply.
If there is not a change in City Council and GMSA there will be another price increase. Surcharges for water and Gas will increase automatically in July.
Wow, between the water thieves and the natural gas thieves I bet my utilities bill should go down 50%.
Why doesn't the city just cutoff the water at Cedar Oaks and the gas to Simmons until the bills are paid? Thats why you send out cutoff notices.
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Because simmons buys its gas from another supplier it only buys from GMSA what it uses in whats called overages. That is the amount that Simmons uses over what it contracts from it's other supplier. Its not Simmons fault they were not billed. It is not there responsability to moniter the gas flow and bill. As for the folks at Cedar Oaks. How do you tap into a 6" line with a 2" line under pressure? Something to think about.
To those who asked about Har-Ber Village: Fact Check:
Jan Norman, Exec Dir of Har-Ber Village Foundation, came before GMSA March 21, 2005 and said she was notified in February of an outstanding water bill from GMSA for $7,339.50 for a period between 1997-2005. The water was for lawn care only and she had reported a strong smell coming from the water. GMSA staff told her to flush out the lines periodically in order to eliminate the smell and she assumed they were flushing the lines at the same time they watered; she later discovered that the water was going through the meter and no bill had been sent to her. Norman proposed a settlement, Har-Ber Village would pay 50% of the bill and GMSA would absorb the remaining 50%. Doyle Seawright noted that Har-Ber Village brings revenue into the city and made the motion to approve the proposal, seconded by Craig Criger. Nuckolls, Helms and Rowe also voted Aye with none opposed, according to the minutes. Please note that this was not a deliberate attempt to steal water, as in the case of the six inch tap at Cedar Oaks without a meter.
As for how Simmons did not get billed, a convoluted system of distributing it was involved and we are fortunate that it was caught by the city. Debbie Mavity will be happy to answer your questions on this, at 786-8798.
And by the way, if you have any questions as to city operations you will find as I have that city officials are more than helpful in answering them. They are not the enemy, just normal people doing their jobs in public service. They work hard, with long hours, under pressure.
The Editor
Jim
You are right Debbie Mavity and the City staff are good hard working people. This problem at Simmons is one of to much control by Bill Galletly and the GMSA board. Our boards should not be controlled by sitting council members and an arms length distance should be maintained. Untill there is arms length seperation there will never be proper accountability. When you lose water its not a serious issue. When you lose 13% of your Natural Gas that is Dangerous. You need to find your loss for the publics safety or review your math and or metering. Utility theft is a crime. I am curious however why a meter that is turned off is not randomly checked at least once a year. If the meter was turned of at Cedar Oaks in 1999,which I have heard was really 2002, then that is another error in my opinion for not being checked.
Answer to anonymous....
Good idea on cut off notice....but not all the story is being told. City better keep their cut-off wrenches in the toolbox a little longer. Of course the editor wants us to pat the city on the back for catching their $855,000 error so quickly. (Three years)
City of Grove (GMSA) failed to bill Simmons for over three years and now wants to charge a fee to Simmons for their own incompetence and failure to bill. Go figure, who's going to win that one?
As I also remember Galletly billed Hallacy for $50,000? worth of dirt previously. Bottom line Grove is no longer trying to collect dirt money. Jim can you check and see if Grove collected for the dirt billing and if not why? Are we sueing Hallacy for the dirt?
It is also being reported that a city employee installed the "temporary" tap when Cedar Oakes first started.
Don't take this as condoning water theft. Every red cent should be collected for the taxpayers.
But what gets most folks upset is Galletly continually makes statements alleging criminal activity against citizens and employees and has been wrong every time. (GMSA employees, Hallacy, Airport Trustees, Head of Emergency Management Metcalf, Shero, former Police Chief Wall)
Is it good policy for a business (GMSA) to go to the newspapers and allege criminal misconduct (theft) of water and gas before a bill is sent to a customer?
Has anyone called the District Attorney for his take of this before publishing Galletly's allegations?
As usual Galletly has jumped the gun prior to the completion of any investigation and accused a citizen of criminal activity. City Manager Galletly is an attorney's dream and taxpayers nightmare. When will the City Council wake up?
Galletly previously accused Hallacy of embezzlement and racketeering (police dept report) and was totally wrong. Ask Galletly if he is still trying to collect money for dirt? The City Council should have put a muzzle on Galletly a long time ago. Almost all of Galletly’s allegations have proven to be wrong.
If Galletly is allowed to attack Simmons and Hallacy with innuendo and supposition then the taxpayers will be out thousands of dollars more in legal fees. Not smart for us taxpayers.
District Attorney's prosecute crime after a through investigation by law enforcement. That’s how Galletly was convicted of bid splitting. That’s how whoever tapped Grove's water line should be prosecuted.
Grove? (Galletly, City Council, GMSA) has made a $885,000 blunder in not billing Simmons for natural gas but the last thing we need is another lawsuit that costs us thousands more in attorney fees.
Jim I believe that Grove has many good employees but I don't believe finding your own $885,000 billing mistake should qualify you for an atta boy award. Grove taxpayers are now stuck trying to collect a gas bill, which could easily drag on for years and cost many more dollars. Also an undeposited check is not payment. If this is now the policy of Grove I will pay my bill on a three-year basis and only pay half at that time.
Grove makes each utility customer put up a security deposit for just this type of situation but it’s my understanding that the GMSA board waived this fee for Simmons? (Not smart) Probably the best thing for Grove would be to sell its natural gas business to Oklahoma Natural Gas. The city of Miami did this a few years ago and their natural gas bills are about 30% less that Grove’s. Oklahoma Natural Gas has employees capable of correct billing practices and they will not allow a business to purchase gas without a deposit.
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Who was the GMSA gas superintendant when Simmons began using gas that they didn't pay for?
Just wondering--Who's on the Dark Side? Is it people that have lived in Grove for more than 20 or 30 years that don't like the way the City of Grove is being run or is it people that are newcomer's(10 years or so) that want to move here and teach us hillbillies how it should be done. Can somebody please explain. I have lived in Grove for more than 40 years and certainly don't like what I've been seeing for the last four or five years with the currant City Manager and most of the council, so does that make me a Dark Sider?
City Manager Bill Galletly has been in charge of GMSA the whole time that Simmons was not billed. Galletly also fired Jeannie Culley the long time GMSA billing clerk before the billing error started.
It's all about personal agenda for the current city council. Its about how powerful they can become. They are not at all interested in the citys future only in theirselves.
I believe that the only hope for our city to recover would be to elect Larry Parham, Mike Davenport, and Gary Trepensee for City Council
Vote Vote Vote
Excuse me - With the exception of Current City Councilman Larry Parham
If you can't spell the candidates names you can't vote for them.
Galletly was also in charge of GMSA when Simmons was caught stealing the gas...
What are darksiders? They are a small group of people in Grove that will do absolutely anything to get their power back. Lie, slander, cheat, steal, misstate. Filled with bile, hate, vulgarity, they have no positive bones in their bodies. They attack everything and anything that is positive for Grove and ignore the cheating, stealing conivers. Why, some of them even go to church on Sundays, the hypocritters. Some hide and let others do their dirty work.
Fact Check
More power and coruption at city hall. Bill Galletly has refused to let GROVEPAC have there Voter registration drive and chili feed at the community center this saturday march 3rd. It was anticipated and an alternate site was pre-selected at the new Hickory Inn conference center. Lets see if the Grove Sun is allowed to have there canidate forum at the community center.
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Should a taxpayer supported government building be used exclusively for a political action committee and its candidates only?
Good question.
Perhaps if you opened it up to all candidates it would sell.
But then, a fight might break out and they would call it an election.
Please forgive me for misspelling current, us Darksiders are'nt known for are spelling abiliy.
Why did you remove the 7:13 post? It was'nt vulgar or rude. Just curious?
Obviously this is a one sided forum for the current city government. Is the blog administrator's name Stalin or Hitler?
Anonymous 7:56
The blog admin has isn't influencing "us bloggers". You give your opinion and everyone else will give theirs. But when things aren't going YOUR way you find it necessary to compare the blog admin to Stalin or Hitler. I thought we were all adults here???
Mr. Kyman
Galletly repeatedly violates Open Records, Open Meeting and Public Bidding laws, so I'm not surprised that he violates the law in denying use of a public building. I encourage you to get a written denial from Galletly and the reason for his denial. The rules of the building and the constitution do not allow him to deny you use of the building. Of course if you complain you will be a dark sider.
He may not be influencing you but he is influencing what is read on these pages. Controlling the media and what can or cannot be read if he does'nt agree with it is something a dictator would do.
Every body lets give Jim a break. He has his opinions and we have ours. we would not be able to write these in the Grove Sun Spin machine so it is appreciated. I know some items are being removed but I trust jim has a reason for it.
As for the Chili Feed it was made very clear that it was open to the public. GrovePAC will be spending a lot of money starting tomorrow stating this in an effort to registar more voters for the election. GrovePAC was paying for the use of the building!
GrovePAC is a partisan, political committee. Why should they be allowed to use a public, city-owned and funded building to benefit their cause? Indeed, they shouldn't. If as stated above, it were to an open forum for all candidates (as would be the case for the Grove Sun event) then of course they should be allowed to use the building.
As we explained before, we don't allow libelous or slanderous comments on the blog...we don't want to get sued. No reputable newspaper would even print them, especially under Anonymous.
If you are not happy here, then get your own blog where you can let it fly. Go to Google.com and start one. It's fairly easy or I wouldn't be able to handle it.
The Editor
Comparing me to Stalin or Hitler?
I don't even have a mustache.
Play nicely boys and keep the pot boiling. Still haven't heard one positive thing for the future of Grove and if you keep this up you are going to lose the election!
The Editor
I haven't heard anything but excuses from the "bright side" about what has happened over the last few years. What is in our future with your canidates Mr. Editor.
I don't have any candidates...I will wait for the candidates to speak out on their platforms and then try to make a decision on what is best for our community the next four years. I invite all candidates to email me their platforms and programs and I will publish them, fair and square. (groveobserver@yahoo.com)
The Editor
I was the person that wrote the 7:13 post that was removed. I used no profanity, did'nt mention anyone's name. All I did was respond to the 6:59 post as to who was lying, slandering, cheating and stealing. I wrote that I believed SOME people in the current city government fit that description. So I guess this one will be removed also since it does'nt fall into line with your way of thinking.
I think we need limited Conservative Government. I will support Council Candidates that support this line of thinking.
We need a Manager who is not surrounded by controversy. We need to support public projects we can afford. A tax increase should be for the infrastructure we need, not merely things we would like to have.
The highway 59 project should herald a Growth explosion for the City. Our needs will be dictated by that Growth explosion in the commercial sector.
We should not encumber ourselves with higher taxes now. The country is likely headed for a recession or inflation. Now is not the time for new taxes.
Mr. Editor, would you check with the City of Clinton to see if the convention/Civic center which was started in their city under our Current manager is paid for? Is it Complete? Did it pay for itself?
Forgive grammar and spelling errors please.
publius
To publius
Amen, Amen, Amen!
For those unfamiliar with the word "publius," this was the pseudonym for writers of a series of 85 articles arguing for the ratification of the U.S. Constitution, published in three New York City newspapers beginning in 1787. The authors were Alexander Hamilton, James Madison and John Jay. Publius is in honor of Roman consul Publius Valerius Publicola. The articles were referred to as "The Federalist Papers."
So now we have a "publius" in Grove in 2007. This will be interesting.
The Editor
Hail to Publius!!!!
Common sense advice!!!!
Do be Careful Publius least your comments be deleted for being negative.
to the 7:13 post: You paint with a broad brush, accusing someone in city government of lying, cheating and stealing! If you are going to make these charges then sign your name, address and phone # so the lawyers can find you.
The Editor
The 6:59Am post mad the same accusations about the dark side but you did'nt remove theirs now did you.
I would'nt worry to much about getting sued by the City Manager, He has'nt had very good results in the courtroom yet.
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