06-18-1991 (City Council) Agenda Packet DATE POSTED 6-14-91
TIME POSTED 2:00 P.M.
AGENDA
CALLED WORK SESSION AND MATING
CITY COUNCIL
CITY OF WYLIE, TEXAS
TUES)AY, JUNE 18, 1991
7:00 P. M. COUNCIL CONFERENCE ROOM
MUNICIPAL COMPLEX
2000 HIGHWAY 78 NORTH
CALL TO ORDER
ORDER OF PAGE
BUSINESS REFERENCE BUSINESS
1 1 - 13 Discuss and Consider Correspondence from
Deloitte & Touche on results of Phase I
Finance Department Audit and determine
appropriate response to Deloitte &
Touche and consider City Council
Direction to Deloitte & Touche on Phase
I Finance Department Audit and determine
appropriate course of action
2 Recess open meeting
3 14 - 23 Convene Council into Executive Session
under the Authority of Article 6252-17
V.A.C.S., Section 2 paragraph "E" -
report from City Attorney on litigation
of:
1. Report from Deloitte & Touche on
Phase I Finance Department Audit as it
relates to current litigation and
possible misappropriation of funds and
equipment
2. Choya Tapp V. City of Wylie
3. City of Wylie, et al V. Choya Tapp
4 Reconvene open meeting
5 Consider any action necessary from
Executive Session
6 Adjourn
MEMORANDUM
DATE: June 4 , 1991
TO: City Council
FROM: Bill Dashner, City Manager
RE: Discuss and Consider Correspondence from Deloitte &
Touche on Results of Phase I Finance Department Audit
And Determine Appropriate Response to Deloitte &
Touche and Consider City Council Direction to
Deloitte & Touche on Phase I Finance Department Audit
And Determine Appropriate Course of Action
Attachment 1 - Official City Council Minutes , Phase I
Proposal , Phase I Report
Attachment 2 - Letter from Deloitte & Touche Requesting a
Meeting to Discuss the Issue.
/
Deloitte &
Touche
/\ Suite 1400 ITT Telex:4995628
Lincoln Plaza
500 N.Akard Street
Dallas,Texas 75201-3302
June 3, 1991 Telephone:(214)720-8100 !
l ..0"4 4
To the Members of the City Council
City of Wylie, Wylie, Texas:
Thank you for the opportunity to present our Phase I report to the City Council on
May 28. On May 30, I met with Bill Dashner, City Manager, and Curtis Warner, Finance
Director, to discuss the scope and objectives of our Phase I project. The conclusion of
this meeting was agreement among the parties that we had performed all Phase I
procedures as requested.
Our proposed services for Phase II were outlined in our letter to you dated May 22, 1991.
It is our continuing belief that there are significant opportunities to improve the control
environment and efficiency of the finance function and related departments at the City.
I suggest you consider meeting with us in a special session of the City Council to refine
further the scope of our services. Our approach so far has been to suggest projects which
would have primary benefits to current and future operations. If there are particular
analyses of past transactions or funds of interest to the Council, we will be happy to
submit a proposal addressing those specific services.
Thank you for the opportunity to be of assistance to the City. We hope our association
will be a long and pleasant one.
Very truly yours,
Thomas E. Larson
Audit Director
np
cc: Bill Dashner
Curtis Warner
Member
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MEMORANDUM
DATE: May 29 , 1991
TO: City Council
FROM: Bill Dashner , City Manager * 4
RE: Instructions from City Council to Three (3) Finalist
For Audit Work on Finance Department
Attached are the minutes from the April 4 , 1991 special City
Council meeting where the three (3) finalist for City audit
were interviewed. Please note in the official meeting the
instructions given to all three (3) finalist . Deloitte and
Touche was selected because their proposal was for $2,500 .
Peat Marwick was $18 ,000 and Ernst & Young $8 ,000 .
According to the City Secretary these minutes reflect the
exact instructions given by several councilmembers . One can
only conclude that the proposal prepared by Deloitte &
Touche did not follow these instructions . I have also
attached their proposal stating what work they would do. I
believe they did the work they said they would do but failed
to follow the instruction intent of the City Council . I
will be meeting with Deloitte & Touche tomorrow (May 29 ,
1991) to discuss this and see why there was this
misunderstanding . The City has not paid Deloitte & Touche
any money for their effort . .
,
i CITY COUNCIL SPECIAL
MEETING - MINUTES
APRIL 4 , 1991
THe City of Wylie City Council met in a special called
meeting on Thursday , April 4 , 1991 at 7 :00 P.M. in the
Council Conference Room of the Municipal Complex . A quorum
was present and notice of the meeting had been posted in the
time and manner required by law. Those present were Mayor
John W. Akin , Mayor Pro Tem Don Hughes , Council Members
Percy Simmons, William Martin, Chuck Wible, Pat Stemple and
Steve Wright , City Manager Bill Dashner , City Secretary
Carolyn Jones, and Finance Director Curtis Warner .
Mayor Akin called the meeting to order .
INTERVIEWS WITH INDEPENDENT AUDITORS: The City Council
interviewed the following firms:
Deloitte & Touche - Dallas
KMPG Peat Marwick - Dallas
Ernst & Young - Dallas
Council stressed to these firms that an in-depth audit of
all fund accounts be done . Instructions were given to each
of the firms to bring back to the Council a proposal on what
it would be for a two week review of the City accounts and
an analysis on the problems that needed to be looked into
further , and to have the proposals back to the City Manager
in time for the April 23rd Agenda .
There being no other matters of discussion, a motion was
made to adjourn at 9 : 50 P.M.
John W. Akin , Mayor
ATTEST:
Carolyn Jones , City Secretary
Deloitte &
Touche
/\ Suite 1400 ITT Telex:4995628
Lincoln Plaza
500 N.Akard Street
Dallas,Texas 75201-3302
Telephone:(214)720-8100
April 9, 1991
To the Members of the City Council
and Bill Dashner, City Manager,
City of Wylie:
Thank you for the opportunity to present our credentials to provide professional services to the
City of Wylie and for the opportunity to meet with you in person to discuss the scope of
services you are requesting. Based on that conversation, we are submitting this letter proposal
which outlines our plan to provide services to the City.
PHASE I APPROACH
The comments and concerns shared with us at the meeting on April 4, 1991, indicate the need
for further analysis of the City's accounting and internal control systems. We believe Deloitte &
Touche is uniquely suited to provide the professional services you require. Our Statement of
Qualifications demonstrates our commitment to the public sector and, in particular, to cities
comparable to the City of Wylie. In response to your request for further analysis, we have
developed a planned Phase I of the comprehensive workplan.
We envision Phase I to consist of the following:
• Meeting with the city manager, finance director and other key members of the staff of
the City as necessary. The purpose of these meetings will be to develop an initial
understanding of the current state of the accounting records, data processing hardware
and software capabilities, and the accounting documentation and support for
transactions and accounts
• Preliminary analysis of written documentation of transactions and other accounting
records to develop further insight into the existing systems
• Preparing a detailed workplan for Phase II of the project, including identification of
the systems or accounts to be analyzed, the time frame the analysis will cover, and the
specific timetable for the completion
• Preparing an estimate of time to be spent by area identified and the related estimated
fees to be charged
• Identifying the Deloitte & Touche personnel to be assigned to Phase II of the project
• Reporting on the status and completion of Phase I to the members of the city council
STAFFING FOR PHASE I
Our fieldwork for Phase I of the engagement will be performed by management-level
professionals in order to bring the highest level of analysis of the current operations and systems
of the City. All such professionals have significant public sector experience serving cities of the
size and complexity comparable to that of the City. We believe this plan represents the most
timely and cost-effective response to your needs.
The anticipated staffing for Phase I will consist of the following:
• George Scott, lead client partner, will be responsible for all professional services
provided to the City. He will draw upon the significant number of available public
sector professionals within the Firm to meet the needs of the City in this project.
- Tom Larson, audit director, will have direct responsibility for the overall planning and
management of the Phase I engagement and for the reporting of results to the city
council.
• Jay Riley, senior consulting manager, will be responsible for coordinating our analysis
and recommendations related to operations and automated systems.
• Craig Milacek, senior audit manager, and Carol Soegaard, audit manager, will perform
substantially all of the fieldwork associated with Phase I of the engagement.
TIMING
We are prepared to commence our Phase I activities within two days after notification of our
engagement. We believe all Phase I activities can be completed within two weeks from
commencement of fieldwork. At that time, we will deliver a written report in draft form on
our findings and meet with you as necessary to discuss the results.
APPROACH TO FEES
Our fees for Phase I of our engagement to serve the City of Wylie will be based on the
anticipated level of experience required at our discounted standard public sector billing rates.
We are very much interested in building a long-term relationship with the City and are prepared
to make substantial concessions in fees to establish this relationship.
Consistent with the above, we estimate the total fees for Phase I of the engagement to be
S2,500, exclusive of out-of-pocket expenses. We believe the quoted fee is both fair and
reasonable.
CONCLUSION
We believe we are the firm best suited to meet your professional service needs now and in the
future. Our large and growing public sector practice is evidence of our concern and
Deloitte&
Touche
understanding of the issues confronting the City. The City of Wylie would be a significant and
valued client of Deloitte & Touche, and we believe we have the resources to make a difference
in the future of the City.
If you have any questions relating to the foregoing matters or wish clarification on any aspects
of this proposal, please call Tom Larson at (214) 720-8178.
Yours truly,
SJ-c4..tt.L f fato-4.A
7 Deloitte&
Touche
0
Deloitte &
Touche
Suite 1400 ITT Telex:4995628
Lincoln Plaza
500 North Akard Street
Dallas,Texas 75201-3302
Telephone:(214)720-8100
May 22, 1991
To the Members of the City Council
and Bill Dashner, City Manager,
City of Wylie:
This letter summarizes the results of our Phase I consultation services to
the City of Wylie (the "City") . We have completed the procedures outlined in
our letter to you dated April 9, 1991, which is attached as an exhibit. Such
procedures were intended to gather sufficient information about the
accounting systems and management information systems at the City to permit
the identification of specific consultation services to be performed in
Phase II of the engagement. We believe each of the four segments of Phase II
procedures identified below will be of significance to the City Council. We
recognize you must evaluate the costs versus the expected benefits of each
procedure. Therefore, prior to beginning our engagement for performance of
Phase II procedures, we will issue an engagement letter to the City Council
which describes those procedures you wish performed and which includes the
final estimated fees associated therewith.
The analysis below lists the particular internal control segment we would
analyze and describes the significance of that segment to the functioning of
the City's internal control system. There may be additional areas of concern
to the City Council which could be included within the scope of our Phase II
procedures at your request.
PHASE II PROCEDURES
A. Internal Accounting Controls
Discussion:
The internal accounting control structure of the City provides the
framework for the operations of the finance department. The structure
includes the processing and recording of all financial transactions to
which the City is a party.
The systems identified in the internal accounting control structure are
as follows:
- Cash receipts
- Purchasing and cash disbursements
- Payroll and personnel
- Utility cash receipts and disbursements
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- Fixed assets
- Investments
- General ledger and financial reporting
- Information system general controls
- Financial reporting to the City Council
Significance:
An effective internal accounting control structure for a city government
is designed to provide management and the City Council with reasonable,
but not absolute, assurance that assets are safeguarded against loss from
unauthorized use or disposition and that transactions are executed in
accordance with management's authorization and recorded properly. There
is a cost/benefit relationship with any internal control. The City
Council must determine if the cost of implementing and complying with a
control is worth the benefit obtained from it.
Procedures:
Our procedures to be performed for each of the significant internal
control systems listed above are as follows:
- Obtain, read, and analyze the City's written internal accounting
control policies and the related documentation, if any, from the prior
auditors' working papers
- Conduct detailed interviews with the finance director and other
finance and City personnel to document their daily functions and other
duties involving the processing and recording of transactions
- Prepare a comprehensive analysis in narrative or flowchart form of the
current internal accounting control structure, identifying significant
strengths and weaknesses
- Prepare a written report to the City Council containing detailed
comments , analyses, and recommendations for improvements in the
current internal accounting control structure in each system analyzed
B. Utility Billing System
Discussion:
The City's utility billing system should contain all information related
to the City's utility customers and permit City management to access and
monitor such information. A comprehensive utility billing system should
include all billing and collection amounts, life-to-date and year-to-date
history, account inquiry, utility receivables, and various other
information related to the utility operations.
Deloitte&
g-= Touche
Significance:
An adequate utility billing system is required for accurate recording of
transactions and reporting on the results of the utility operations in
conformity with generally accepted accounting principles. In addition,
an adequate utility billing system is required as a component of a good
internal accounting control structure.
Procedures:
- Interview the utility department personnel about their need for
information related to the utility operations
- Discuss with finance department personnel their need for information
related to recording and reporting utility operations
- Incorporate the recommendations from the internal control analysis in
Section A above, related to the utility billing system
- Analyze the needs documented above and make a recommendation regarding
a new utility billing system. This recommendation will contain
several potential software packages to allow the City the opportunity
to analyze the cost/benefit of each system in relation to the above
needs. (Note: As a matter of policy, Deloitte & Touche does not
market any of its own software. As a result, we can provide an
independent and completely objective evaluation of software
alternatives)
- Assist with the implementation of the new utility billing system
C. Bond Compliance
Discussion:
The proceeds from bond issues must be used for their intended purpose.
This purpose is included in the prospectus related to the bond offering
and details the specific allocation which must be followed. In addition,
complex arbitrage regulation applies to bond issuance.
Significance:
Misapplication of bond proceeds may be a violation of the bond indenture
and may expose the City to legal action.
Procedures:
- Interview the City Council and City management to determine whether
there are any specific bond issues that raise concern over compliance
matters
Deloitte&
�� Touche
- For each bond issue determined to have concern, obtain and read all
relevant bond documents
- Prepare an analysis of actual sources and uses of proceeds
- On a test basis, examine supporting documentation relating to the uses
of the proceeds (i.e. , disbursements) and investigate as necessary
- Based on the intended use of proceeds, determine the appropriateness
of the actual uses
- Prepare a written report to City Council based on our findings
D. Accounting Policies and Procedures Documentation
Discussion:
Comprehensive documentation of accounting policies and procedures is an
important element of the internal control structure of a city. The
information contained in such documentation is helpful in determining
whether employees are performing all the tasks that are required of them
and is a key element in training a new employee.
Significance:
Considering the potential changes to the operations of the finance
department from the performance of other procedures in this proposal,
comprehensive documentation of accounting policies and procedures would
help ensure that all persons understand their responsibilities within the
revised internal control structure.
Procedures:
- Develop an understanding of existing policies, procedures, and
practices; and key organizational, operational, and staffing
information
- Supplement the information obtained above with any changes resulting
from the implementation of recommendations developed in Section A of
this report
- Conduct management interviews to further gather information and verify
our preliminary understanding of the policies and procedures
- Develop the policies and procedures documentation. Specific areas for
which policies and procedures will be developed include:
. Cash receipts
. Cash disbursements
. Payroll
. Utility operations
Delude&
Touche
n
. Month-end closing
. Year-end closing
. Fixed assets
. Investments
. Purchasing
- Meet with management to review the preliminary policies and procedures
documentation, receive feedback, and follow-up on specific questions
and comments
- Finalize and issue the documentation in final form
PROFESSIONAL FEES
Our fees for Phase II of our engagement to serve the City of Wylie will be
based on the anticipated level of experience required at our discounted
standard public sector billing rates.
Based on our assessment of the staffing levels required for each segment of
the proposed consultation services, our estimated fees are as follows:
Internal accounting controls $16,000 - $21,000
Utility billing system $18,000 - $30,000
Bond compliance per bond issue $5,000 - $7,500
Accounting policies and procedures documentation $22,000 - $32,000
TIMETABLE FOR COMPLETION
We are prepared to begin work on Phase II of this project within ten days of
notification of our engagement. We anticipate the activities relating to
internal accounting controls, bond compliance, financial reporting to the
City Council, and the accounting policies and procedures documentation can be
completed within eight to ten weeks after commencement of work. The exact
timing is dependent on the degree of assistance provided by the finance
director and other members of the finance department and City staff.
The project related to the utility billing system is dependent on a number of
external variables and also the degree of priority established by the City
Council and finance director as to software selection, evaluation, and
implementation. The details of our workplan with respect to the utility
billing system will be furnished separately to you in the early phases of
that engagement, after initial discussions with management.
Deloitte&
Y-3- Touche
STAFFING
The anticipated staffing for Phase II will consist of the following:
- George Scott, lead client partner, will continue to be responsible for
all professional services provided to the City. He will draw upon
experienced public sector professionals within the Firm to meet the
needs of the City in this phase of the project
- Tom Larson, audit director, will continue to direct the planning and
management of the Phase II engagement and will report the results to
City management and to City Council as may be requested
- Craig Milacek, senior audit manager, will have day-to-day field
supervision responsibilities and will perform the detail planning for
Phase II
- Jay Riley, senior consulting manager, will be responsible for
coordinating and managing the utility billing system segment of the
project
- Other public sector audit managers, seniors and staff will assist on
Phase II as necessary. Once the timing and scope of the Phase II
procedures are determined, an experienced public sector senior auditor
will be assigned as lead senior
All staff and management assigned to phase II will have significant prior
public sector experience.
CONCLUSION
We believe we are the firm best suited to meet your professional service
needs and have demonstrated that ability in the performance of Phase I.
If you have any questions related to the foregoing matters or wish
clarification on any aspects of the information contained in this summary,
please call Tom Larson at (214) 720-8178.
Yours truly,
AL4S.A. flegsat
Deloitte&
j3 --�= Touche
MEMORANDUM
DATE: May 16 , 1991
TO: City Council
FROM: Bill Dashner, City Manager %mum.
RE: Discuss and Consider Convening to Executive Session
To Determine Appropriate Action Relative to Items of
Ligation Involving the City of Wylie, Inc .
I am requesting an executive session to discuss the details
and solicit guidelines from the City Council on the
following two (2) lawsuits :
1 . Choya Tapp v. City of Wylie, exparte Bill Dashner and
other unnamed City Officials .
2 . City of Wylie, et al v. Choya Tapp
3 . City of Wylie, v. Chemical Recycling, Inc, et al
//
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OF WYLIE
2000 HWY.78 N.-P.O. BOX 428
WYLIE,TEXAS 75098
(214)442-2236 • FAX 442-4302
John Akin
Mayor
May 16, 1991
Boyd, Veigel & Hance
Don Hughes P. 0. Drawer B
Mayor Pro-Tem McKinney, Texas 75069
William Martin Dear Mr . Boyd,
City Council
Pursuant to our conversation today I am sending you a copy
of the lawsuit Mr . Tapp filed against me and the City.
Apparently he filed the papers himself.
You will also notice a letter that I wrote to our Public
Pat Stemple Liability Insurance Carrier notifying them of the lawsuit
City Council since the City carries liability insurance. They will
probably want to furnish attorneys but we would rather have
you. You may want to call our liability insurance carrier
on this . I have attached a copy of the letter I received
from our insurance agent this morning .
Steve Wright
City Council Now on the other case , City of Wylie v. Choya Tapp on the
theft of public property, we lost in the first round at the
Collin County JP ' s court yesterday. Mr . Chris Houssiere is
suppose to file the appeal notice tomorrow, May 17 , 1991 .
Please contact me as soon as possible on this very important
Percy Simmons matter .
City Council
Sin rely,
Chuck Wible Bill Dashner
City Council City Manager
encl
Bill Dashner
City Manager
/5.
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CITY OF 'W LIE
2000 HWY.78 N.-P.O. BOX 428
WYLIE,TEXAS 75098
(214)442-2236 • FAX 442-4302
John Akin
Mayor May 15 , 1991
Wylie Insurance Agency
Don Hughes 201 Calloway
Mayor Pro-Tem Wylie, Texas 75098
Dear Mr. Yeager,
William Martin Under the terms and conditions of the City' s Public Official
City Council Liability policy and the Tudor Insurance Co . of Keene, New
Hampshire as City Manager of the City of Wylie I am official
and formally requesting that you file this claim for legal
representation for the City of Wylie and its Public
Officials. The attached lawsuit styled "Choya Tapp,
Pat Stemple Plaintiff , v. City of Wylie, Defendant" was filed in Collin
City Council County District Court on May 1 , 1991 . Please contact me as
soon as possible so that this can be discussed .
incerely,
Steve Wright
City Council
Bill Dashner
City Manager
cc: Wylie City Council
Percy Simmons City Secretary
City Council City Attorney
City Finance Director
Chuck Wibte
City Council
Bill Dashner
City Manager
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I I R YOU
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WYLIE INSURANCE AGENCY, INC.
"Serving You Since 1898"
JOHN YEAGER, GIG
May 15, 1991
Mr. Bill Dashner
City Manager
City of Wylie
P.O. Box 428
Wylie, Texas 75098
Re: Legal Action-Choya Tapp vs. City of Wylie
Dear Mr. Dashner:
We have faxed the above notice today to Montgomery & Collins, Inc. ,
Dallas, Texas the local insurance representative for Tudor Insurance Company
that carries the Public Officials Liability policy for the city.
Additionally, since there could possibly be coverage under the General Liability
policy, we have also sent the same notice to Trinity Universal Insurance Company,
Dallas, Texas.
A represenative from each of these companies should be in contact with you
shortly to discuss the situation. In the meantime, please call me should
you have any questions.
Sincerely,
er/
John £ , CIC
JY/lap
201 CALLOWAY • P.O. BOX 40 • WYLIE, TEXAS 75098 • 442-3505
/7
April 30, 1991
Mr. William Dashner
City of Wylie
Wylie City Hall
Wylie, Texas
RE: False Statements Made About Choya Tapp
Dear Sir:
Please be advised that I am taking legal action against the City
of Wylie for statements made by individuals employed by the City,
which were false, malicious and defamatory.
The City has publically humiliated me and maligned me and I will
seek redress in order to clear my good name.
Yours,
Choya
Via Hand Delivery
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• I
CAUSE NO. a V7 -`s ps-�/
CHOYA TAPP, § IN THE DISTRICT COURT
Plaintiff, §
v. § COLLIN COUNTY, TEXAS
CITY OF WYLIE Defendant §
§ v47 TH JUDICIAL DISTRICT
PLAINTIFF'S ORIGINAL PETITION
TO THE HONORABLE JUDGE OF SAID COURT
COMES NOW CHOYA TAPP, hereinafter "Plaintiff" , complaining of
CITY OF WYLIE, hereinafter "Defendant" , and for cause of action
would show the court as follows:
1. Plaintiff, CHOYA TAPP, is an individual residing in Collin
County, Texas.
2 . Defendant, CITY OF WYLIE, may be served with process by serving
its City Secretary, Carolyn Jones Wylie City Hall, Wylie, Texas
wherever she may be found or its City Manager, William Dashner,
wherever he may be found.
3 . This cause of action is for personal injuries which arose in
Collin County, Texas.
4 . Whenever in this Petition it is alleged that Defendant did any
act or thing, it is meant that Defendant's officer' s, agents,
servants, employees, or representatives did such act or thing. At
the time such act or thing was done, it was done in the full,
normal and routine course and scope of Defendant's business by it's
officers, agents servants, employees, or representatives.
5. Plaintiff would show that he was a Volunteer Fireman with the
Fire Department servicing the City of Wylie. Plaintiff and William
Dashner - City of Wylie City Manager - got at odds because Mr.
Dashner wanted to formalize the Volunteer Fire Department as a City
of Wylie Department, even though it has never been part of the
official City of Wylie Departments in it's 60+ year history.
6. Plaintiff would show that Mr. Dashner and the other defendants
have libeled and/or slandered plaintiff through written and spoken
statements alleging teat the stole.,money and property from the City
and/or the Fire Department. kPi4Litiff states this is completely
false and defendants knew or shoui!d have known about this fact.
7 . Specifically, MoOPLYTApigliwZiaaa show that in September 1990,
William Dashner, in his official capacity as a City of Wylie
"� ''" """ ^ to James Johnson, "I'm going to
employee and City Manac� K� e�
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fire these people as they are all a bunch of thieves. " Plaintiff
would further show that this statement reflects the fact that he
was defamed and this slander per se is actionable.
Plaintiff would show at the time of the publication of said
statement, it was quite clear to Mr. James Johnson that he [Choya
Tapp] , among others, was identified and was being called a thief.
8 . Plaintiff would further show the jury that on February 13 ,
1991, in the Wylie News, Percy Simmons, William Martin, Pat
Stemple, Don Hughes city councilmen caused to be published a
libelous statement to wit: "All volunteer fire fighters that were
discharged or resigned did so after an outside audit revealed
$11, 000. 00 of misappropriated funds and $13, 000. 00 worth of missing
supplies and equipment for the fire department" signed City of
Wylie.
Plaintiff would show that the statement was false, and that the
defendant knew or should have known it was false and it is libel
per se because it implies theft of property.
9 . Plaintiff would further show the jury that on or about
November 1990, Jeff Scribner and Lewis Barber, acting in their
official capacities as Acting Fire Chief and Acting Assistant Fire
Chief for the City of Wylie, wrote letters to Wylie News and the
Wylie Sentinel newspapers stating "It has now come to light, as the
result of an audit, that a very large sum of money is unaccounted
for over the last few years that Mr. Allen and Mr. Tapp and Mr.
Bisbee were in charge of the Wylie Fire Department financial
affairs. "
Plaintiff would show that the statement was false, and that the
defendant knew or should have known it was false and it is libel
per se because it implies theft of property. Plaintiff would
further show that he never had signatory powers on the Fire
Department bank account and that prior to August 1990 he was not
in charge of the fire department - a fact known to defendant.
Choya Tapp would show the jury that he is a law abiding citizen,
who tirelessly has devoted countless man hours in protecting the
lives and homes of the citizens of the City of Wylie in Collin
County. Defendant instead of recognizing his numerous unpaid years
of service has chosen for reasons known only to themselves to
maliciously mistreat this good samaritan.
10. Plaintiff would show the jury that the statements of the
defendant as set forth in this petition were patently untrue and
that he has never stolen any money or property from the Fire
Department and that defendant knew or should have known that the
publishing of said statements was reckless, defamatory and
malicious.
Jo
^ C r
11. Plaintiff would further show that these statements by the
defendant were done in their official capacities and that they are
outrageous in nature and have publically humiliated him.
12. Alternatively, plaintiff would show that the actions of the
defendant as set forth above constitute intentional infliction of
emotional distress which has proximately caused injury to him.
13 . Alternatively, plaintiff would show that the actions of the
defendant as set forth above constitute negligent infliction of
emotional distress which has proximately caused injury to him.
14. Plaintiff would show that defendant intentionally or
negligently inflicted emotional distress upon the plaintiff and
that he has suffered great mental anguish as a result of
defendant's actions.
15. Each and every of the foregoing acts and omissions in this
petition, taken separately and collectively constitute a direct and
proximate cause of the injuries and damages set forth herein.
Plaintiff would further show that the actions of defendant were a
producing cause of his injuries.
16 . Notice was given to the Wylie City Secretary/City Manager
prior to the filing of this lawsuit for relief under the Texas Tort
Claims Act.
17 . As a result of defendant's actions, Choya Tapp sues for
damages from the actions of defendant in an amount far in excess
of the jurisdictional limits of this court which are incapable of
exact calculation but believed to reasonably be at least One
Hundred Thousand Dollars ($100, 000. 00) .
18 . Plaintiff demands a jury trial in order to clear his good
name.
WHEREFORE, CHOYA TAPP, plaintiff requests that Defendant be cited
to appear and answer, and that on final trial Plaintiff have
judgment against Defendant, for an amount far in excess of the
minimum jurisdictional limits of the Court of at least $100, 000.00,
punitive damages, together with prejudgment interest, post-
judgement interest and costs of court, and for such other and
further relief to which Plaintiff may be justly entitled.
Respectfu s ted,
CHOYA TAPP
2250 Sachse Road
Sachse, Texas
442-0211
Plaintiff - Pro Se
1/
Tudor Insurance Company
t48 South Franklin Turnpike • Ramsey, New Jersey 07446-0504
Telephone (201) 825-3300 • Telex 130-324 • FAX (201) 825-1052/(201) 825-9013
May 29, 1991
City of Wylie
2000 Highway 78 \\
Box 428
Wylie, TX 75098
Attn: James Johnson
Director of Finance/Designee
RE: Choya Tapp vs. City of Wylie
Policy No.: PE 57494
Dear Mr. Johnson:
Tudor Insurance Company acknowledges receipt of a Petition pending in the Collin County
District Court, Texas regarding the above captioned matter. Pleadings bear docket number
219-595-91. A review of the Petition indicates that this matter emanates and flows from
liable and slander. The Complaint seeks both compensatory and punitive damages.
Tudor Insurance Company is the Public Officials Liability insurance carrier for the City of
Wylie, under policy number 57494 issued for a policy period 7/11/90 through 7/11/91
subject to the provisions and exclusions of said policy. The policy has a limit of liability of
$1 million and a retention of $5,000 per loss. The retention applies to defense expenses,
costs, damages, judgments and settlements.
I refer you to III. DEFINITIONS ...
"(d) "Loss" shall mean any amount which the Insureds are legally obligated to pay
or which the Public Entity shall be required by law to pay as indemnity to the
Insureds, for any claim or claims made against them, for Wrongful Acts and
shall include but not be limited to damages,judgments, settlements and costs,
cost of investigation and defense of legal actions (excluding from such costs
the salaries of officials or employees of the Public Entity or any other
governmental body), claims or proceedings and appeals therefrom, cost of
attachment or similar bonds; provided always, however, such subject of loss
shall not include fines or penalties imposed by law, or matters which may be
deemed uninsurable under the law pursuant to which this Policy shall be
construed."
I refer you to IV. EXCLUSIONS ...
"The Company shall not be liable to make payment for Loss in connection with any
claim made against the Insureds allegedly, based upon or arising out of one or more
of the following:
A Member Company of Western World Insurance Group (
Mr. Johnson
Page 2
May 29, 1991
(5) (a) any damages,whether direct, indirect or consequential, arising from, or
caused by, bodily injury, personal injury, sickness, disease or death;
(6) (b) defamation, including, but not limited to libel or slander;
(7) the willful violation of statute or ordinance committed by or with the
knowledge or consent of an Insured;"
I refer you to Tudor Endorsement TU PE 88 ...
PUNITIVE DAMAGE EXCLUSION
"In consideration of the premium charged, it is understood and agreed that this
policy excludes any claims for punitive or exemplary damages whether arising out
of acts of Insureds, Insureds' employees, or any other person:
Tudor Insurance Company must hereby deny coverage to you in the above captioned matter.
This denial is predicated upon the exclusions and endorseme is cited ab ve. I sugges you
notify your General Liability carrier_ -Wau� � N *e�...-2. S, /4/
iI;ji.
Tudor Insurance Company will not be responsible for any costs of defense, defense
judgment or verdict that may be rendered against you.
If you have any questions or need further clarifications,please do not hesitate to contact the
undersigned.
Very truly yours,
Peter ne
Suit Ex finer
PML/bi
10523
cc: Agent #5907 - Montgomery Sr. Collins, Inc.
MY DIRECT DIAL NUMBER IS (201) 934-2851, EXT. 851