Mayor asks state auditor to probe purchase of lakes, other projects

The mayor says he is confident the state auditor will provide proper guidance.
& lt;a href=mailto:yovich@vindy.com & gt;By TIM YOVICH & lt;/a & gt;
VINDICATOR TRUMBULL STAFF
GIRARD -- Mayor James J. Melfi has stopped short -- at least for now -- of seeking an FBI investigation into the city's purchase of Girard Lakes.
Instead, Melfi is asking state Auditor Betty Montgomery to conduct an independent investigation into the lakes purchase and two other projects that plunged the city into fiscal emergency in 2001.
While not making an allegation of improprieties, the mayor wrote to Montgomery on Tuesday that questions raised by residents and the press warrant such an probe.
Before the May 6 primary election, Melfi said he might seek a federal investigation into the purchase of the lakes.
Asked Tuesday why he decided not to seek the federal investigation after his re-election, Melfi responded, "Let Betty Montgomery determine what direction we should go."
A state auditor's spokesman could not be reached to comment.
The city purchased the lakes and surrounding property in 1995 for $2.51 million. After it is paid off in 12 years, the city will have paid $4.7 million.
A recent appraisal by Diversified Evaluation Co. of Pittsburgh placed the market value at $1.25 million. This does not include the millions of dollars needed to repair Girard Lower Lake dam.
The purchase was one of three city projects the state auditor's office determined in a performance audit that put the city in red ink. The others were the construction of the city justice center and placement of utility lines under U.S. Route 422.
Councilman Joseph Christopher, D-at large, has said that the city overpaid $600,000 for the utilities work.
Utilities project
At Monday's city council meeting, Christopher asked Melfi to list the utilities project as one that needs to be investigated if the mayor asked for a federal probe.
"I have confidence the new auditor [Montgomery] will be able to give us the proper direction," Melfi said.
"We will follow her direction, even if it includes going to the FBI," the mayor said.
Melfi pointed out that the state auditor is familiar with city finances because it has conducted audits, including an in-depth performance audit released in January 2002.
If the state auditor needs to go through the city books again, it won't cost the community any money, Melfi said.
Being in fiscal emergency status gives the city free access to state auditing services for two years, the mayor pointed out.
& lt;a href=mailto:yovich@vindy.com & gt;yovich@vindy.com & lt;/a & gt;