Official: Norfolk can't freeze commissioner's hiring

NORFOLK

Commissioner of Revenue Sharon McDonald promoted four employees recently, giving two raises of more than 9 percent, and attempted to hire a veteran public relations specialist as a chief deputy.

Most city employees have not received raises in more than two years and city leaders eliminated more than 200 positions last month because of budget cuts.

McDonald said the promotions were vetted through the city's human resources department and budget office.

"We were told by HR they are state positions and you can do whatever you want with them," she wrote in an e-mail.

Even so, City Manager Regina V.K. Williams said earlier this week those actions led her to order a hiring freeze for McDonald's office. The freeze, as well as a ban on travel, is in effect until an auditor completes a review of McDonald's travel and office expenses.

However, at least one state official said Williams has no authority to make such demands.

Because of McDonald's status as an elected state official, she alone should control whom she hires, said Robyn de Socio, executive secretary of the Virginia Compensation Board. Williams probably has the authority to freeze McDonald's travel budget, which the Compensation Board does not regulate, de Socio said.

The commissioner of revenue is a state office administered in part by the b oard, which oversees constitutional officers and sets minimum salaries for their employees. McDonald, a Democrat, works in City Hall and is responsible for assessing taxes.

McDonald sought de Socio's opinion, which is not legally binding, earlier this week.

Williams said she hopes her ban is not challenged legally.

"I've done this on behalf of the city because there are outstanding questions," she said. "Those questions need to be answered. In the interim, taking a pause is appropriate."

She said that most of McDonald's office funding and at least a portion of the salaries for her 37 employees come from the city.

"That gives us quite a stake on what goes on in her office," Williams said.

McDonald declined to say whether she would legally question Williams' decisions.

"My focus is on performing the job the citizens of Norfolk have elected me to do," she responded in an e-mail. "My constituents are much more interested in me working to identify revenue and to ensure that everyone pays their fair share of taxes."

City Auditor John Sanderlin is looking into tens of thousands of dollars in charges McDonald made on her city-issued credit card the past five years. Much of that money was spent while she was in Richmond lobbying the General Assembly.

Some city and state officials have criticized her lobbying, saying she spends more time in Richmond than any other state commissioner. In 2008, McDonald's receipts show that she spent 77 nights in hotel rooms and has not repaid the city for more than $11,000 in expenses accrued that year.

Williams said she learned about the four promotions in McDonald's office late last week.

In addition, another employee, William Neill, a license inspector, resigned from McDonald's office as a city employee one day, then was hired as a state employee the next day. When he became a state employee, he received a 5 percent pay raise. Williams said Neill's new pay rate and rehiring also bothered her.

Neill accompanied McDonald to Richmond the past three General Assembly sessions, where he served as her aide.

McDonald wrote in an e-mail that Neill, in effect, received no raise because as a state employee, he must donate 5 percent of his salary to the state retirement program.

Asked to explain why Neill moved from the city's payroll to the state's, McDonald wrote: "The position was a better fit for his skills and our needs in this office."

According to Nancy Olivo, the city's human resources director, four employees in the commissioner's office were recently promoted and in the process given raises ranging from 2.5 to 9.32 percent.

McDonald has four vacancies in her office, Olivo said in an e-mail. She was also set to hire Charles Hartig, a former city public relations employee, as a chief deputy II in the commissioner of revenue's office, Olivo wrote.

Hartig, a former television news reporter, had worked 13 years for the mayor and City Council, but his position was one of the jobs Norfolk leaders eliminated last month.

Mayor Paul Fraim said he and the entire council support Williams' position.

"Clearly, what the manager was trying to do, while an audit is being performed, is to prevent other issues about employment and travel from surfacing," he said.

McDonald belatedly replied this week to a Freedom of Information Act request from The Virginian-Pilot seeking Neill's travel expenses for the past three years.

The Pilot requested the information on July 12. McDonald failed to respond within the five days required by law. After being prodded by the city attorney's office two weeks later to reply by July 30, McDonald asked for an extension until after Sanderlin's audit is complete. She said her staff did not have time to assemble the documents.

The newspaper declined her request. Stan Barnhill, a Roanoke attorney who represents The Pilot, threatened a lawsuit earlier this week and gave McDonald until Friday to submit the information.

She responded Thursday, providing seven receipts for Neill. There were no hotel receipts and only one restaurant receipt for the past three General Assembly sessions.

McDonald confirmed on Friday that the Pilot "was provided with copies of all receipts per your request."

Williams said she hopes the audit will be complete within weeks. It will be presented to the council before it is made public, she said.

"I assume the council will deal with this right away," she said. "No one wants to extend this longer than necessary."

Harry Minium, (757) 446-2371, harry.minium@pilotonline.com