Town of Fort Myers Beach Manager’s inquiry into two administrators is focused on four grants

Town of Fort Myers Beach Manager Will McKannay said his investigation into two senior administrative employees who he placed on paid administrative leave this month, is focused on four grants.

McKannay told the Fort Myers Beach Observer that the four grants are a Bay Oaks Recreational Campus parks grant, two beach renourishment grants, and a FEMA redevelopment grant. McKannay did not specify which FEMA redevelopment grant was being looked into, but that it does not include a FEMA grant involving elevating homes. That particular grant has been a separate source of concern for some property owners who have been waiting on a grant that involves the town and FEMA to provide the elevation of their homes.

McKannay did not identify which beach renourishment grants were being looked into. The town has had multiple beach renourishment and sand haul projects over the past two years, nearly all of which ran into delays. It is not believed that the delay issues are being looked into, as McKannay said that the investigation was centered on a review of procurement practices for certain grants and contracts.

McKannay said on Tuesday that the issues relating to the grants is “missed reporting-timeliness requirements and concerns over procurement and contracting practices tied to grant administration.”

McKannay said “what I have done so far is an inquiry, not an investigation.” McKannay said the town’s finance director and assistant finance director have not been involved in the inquiry.

McKannay said he is handling the inquiry into the personnel matter independently.

Fort Myers Beach Public Information Officer Abigail Eberhart identified the two employees on administrative leave as Community Services Director Jeff Hauge and Community Development Director Frank Kropacek.

The Town of Fort Myers Beach issued the following statement this morning regarding the actions:

According to Eberhart, two administrators were placed on administrative leave “following concerns identified through the Town’s internal grant and contract review process as staff were reviewing the expenditure of public funds.”

Following concerns that were brought to McKannay’s attention, “a timely initial inquiry was conducted, and both employees were placed on administrative leave while a full review is underway. This action was taken in accordance with the Town’s personnel procedures,” Eberhart said.

When the review is complete, McKannay has said he will hold a public Town Hall to explain the actions taken and the plan moving forward, and take questions from residents in person. Residents will have the opportunity to ask their questions directly and hear directly from Town leadership, Eberhart said.

McKannay has briefed Town of Fort Myers Beach councilmembers regarding his actions to place the employees on administrative leave.

Town of Fort Myers Beach Mayor Dan Allers referred questions regarding the matter to McKannay. “Because this is an ongoing matter being handled administratively, I do not want to speculate or provide information that may be incomplete,” Allers said.

The placement of two of the town’s top administrators follows the sudden retirement of the town’s finance director in June just as the town is in the middle of its budget preparations. Earlier this month, the Town of Fort Myers Beach Council voted to increase the preliminary millage rate by 30% as the town struggles to deal with budgetary constraints and the prospects of further tax revenue loss if a homestead property exemption increase is approved by voters in November.