Council overrides deadline, retains Stone Municipal Group amid staff concerns about procurement and past audits

The Common Council of the City of Lawrence voted on Aug. 4 to move forward with Resolution No. 6-2025 concerning retention of Stone Municipal Group as municipal adviser after a procedural deadline left the item “deemed vetoed.” Greg, chief of staff for the City of Lawrence, told the council the mayor had not vetoed the resolution and raised concerns about required procurement steps and contract language.

Greg, chief of staff for the City of Lawrence, told the council, "The mayor did not veto that," and said Indiana Code 6-1.1-17 restricts the council from making additional appropriations after the appropriation ordinance unless the city executive recommends them. He told the council the statement of work for the Stone contract lacked an E-Verify clause, a nondiscrimination clause and a non-appropriation clause and that the statement of work had not been attached when the resolution was presented to the mayor's office.

The council acted to override the procedural veto and approve consideration of the resolution. Councilor Chavis moved to override the veto; Councilor Wells seconded the motion, and the council recorded the result as passing unanimously.

In addition to the procurement and contract-form concerns, Greg cited past State Board of Accounts audit reports involving Stone Municipal Group that described reconciliation and ledger posting errors. He read excerpts referencing a February 2012 audit that noted bank reconciliations that did not balance, unposted deposits, large unposted service charges and outstanding interfund loans dating back to resolutions and transactions in 1998 and 2003.

Council discussion included calls from Councilor Chavis to allow Stone Municipal Group an opportunity to respond to the cited audit findings and to permit the council and administration to work on contract amendments. Chavis said, "We'll give them an opportunity to come forward and to address those things, specifically being, you know, 13 years ago since the report. I'd like for them to speak on their own behalf."

The chief of staff said he had reviewed audit excerpts and offered to share copies of the cited State Board of Accounts reports with council members. He also said an independent accounting firm had been retained by the administration and that he would provide a copy of that firm's report to the council when he had read it.

The council's formal approval to proceed with consideration of Resolution No. 6-2025 was entered on the record after the override vote. The resolution's consideration will proceed subject to the council's and administration's subsequent review of contract language and any additional information supplied by Stone Municipal Group or by staff.

No specific contractual amendments or final contract awards were recorded in the meeting minutes. Council members and staff indicated a desire to review the independent accounting report and to allow Stone Municipal Group to respond to the audit excerpts before further procurement or appropriation steps are completed.