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Council hears administrationreport alleging overbilling by Liberty Fence; moves to seek forensic review
Summary
City officials told the council they found numerous invoicing irregularities and licensing gaps involving Liberty Fence & Supply LLC, including 189 invoices in 2024 and roughly $1.34 million paid last year; the council tabled immediate hiring of a forensic accountant and asked for a follow-up with a proposed scope and cost.
City administrators told the Gonzales City Council they have uncovered apparent billing irregularities and licensing problems with Liberty Fence & Supply LLC and urged tighter procurement controls and an independent review.
At the council meeting, staff said Liberty Fence submitted 189 invoices in 2024 and that payments to the company last year totaled roughly $1,338,875, while the firmhad billed $475,000 over a 14-year span before 2024. The administration reported duplicate-looking invoice amounts, repeated $20,500 line items for sidewalk work, and several high-dollar invoices that staff said do not match visible on-the-ground work at Municipal Park or other sites.
"We think we have been ripped off on that job to the tune of $35,000," one presenter said about specific Municipal Park sidewalk invoices, and later described additional suspected overpayments. Staff said a survey firm engaged by the city found substantially less new sidewalk than Liberty Fence had invoiced.
Administration said the contractor did not appear in state licensing records for a fencing or contracting license. The state contractor board reportedly identified five possible violations and was preparing subpoenas; the city also provided information to the local sheriff (the council was briefed that deputies had visited city hall and that the sheriff's office would coordinate any criminal inquiry).
Council members pressed staff on procurement controls, how purchase orders and payments were approved (often on the same day), and whether internal inspection accompanied contractor payment. Administrators said many invoices were approved by a single department supervisor, purchase orders and invoices were sometimes created the same day, and payments above $5,000 required finance review but did not always receive sufficient project-level inspection.
Councilman Turner and others said the magnitude of 2024 payments represents a significant portion of city revenue: staff noted the city collected about $19.6 million in sales tax last year, and the 2024 payments to Liberty Fence were presented as an amount that could have funded multiple police positions.
Councilmembers discussed hiring a forensic accountant to conduct a task-by-task review of Liberty Fence invoices and related records. Teresa Caro Stevenson, a private CPA referenced in the meeting, was proposed as a candidate to open the books on the Liberty Fence matter. Council moved to table immediate engagement and asked staff to invite Stevenson back to a subsequent meeting with a clearer, written scope of work, timeline and cost estimate before approving any contract.
The city administration characterized the situation as a systemic procurement failure that requires policy changes to prevent recurrence; council asked staff to return with recommended checks or approval thresholds to tighten controls.
Next steps: staff will provide a detailed scope and cost estimate for the proposed forensic review and schedule a follow-up presentation to the council.
