At its July 20 city commission meeting, Key Colony Beach elected in a split vote to move forward with a new city hall building.
But the old hall isn’t done yet.
Key Colony Beach will face not one, but two separate investigations into allegations of fraud perpetrated by former KCB employees and officials – one probe by FEMA, and another city-sponsored counterpart.
The investigations center around allegations printed in another publication by former city clerk-turned-commissioner Kathryn McCullough and former building official Ed Borysiewicz. According to the pair, following Hurricane Irma, former City Administrator Chris Moonis and/or then-Mayor John DeNeale instructed city staff to remove a layer in a section of the existing city hall’s floor that had previously been filled in as a way to address ongoing settlement of a concrete slab – thereby exaggerating the damages caused by the storm and increasing the likelihood that a rebuild would be triggered due to FEMA’s infamous 50% Rule.
Speaking to the Weekly on July 25, Borysiewicz confirmed that he had spoken with FEMA senior fraud investigator Tim Hoover in a conversation that he said lasted “about a half-hour.” He said Hoover asked about settlement of the concrete slab in question as well as the alleged removal.
He reiterated to the Weekly that the slab had been settling since before he began working for the city in 1987, necessitating tile replacements multiple times as it continued to sink in a section colloquially referred to as “the fault line.” Over the years, city staff had leveled the sinking section with thin-set mortar and eventually covered it with carpet. Following Irma, multiple holes were legitimately drilled in the floor to validate the void under the slab for engineering reports, as confirmed by measurement devices and a video camera. But Borysiewicz also said he and his staff were instructed to remove the thin-set layer previously installed to level the area – though he couldn’t recall exactly whether it was Moonis or DeNeale who asked him to do so.
“I think the engineers just wanted it to be removed so they could look at the floor – that was the explanation they gave,” he said. “But looking back at it now, I see the real reason was probably that they didn’t want to know that repairs were made and the settlement was pre-existing.
When asked if he had relayed this analysis to Hoover, Borysiewicz said, “(Hoover) asked me, ‘Do you think this was fraud that was going on?’ The only answer I gave him was, ‘I think it was an exaggeration of the facts.’”
The Weekly contacted Hoover by phone on July 21 and 25. Hoover said he could not comment on any investigation and declined to confirm whether a case had been opened regarding KCB.
Nearly a dozen city commission agendas and committee meeting reports from as early as 2005 reviewed by the Weekly document an extensive history of debate over the proper way to handle the repair or replacement of City Hall, including the settlement of the concrete slab before Irma as well as a greatly accelerated settlement rate after the storm that prompted documented life safety concerns from Borysiewicz.
A December 2021 letter from former KCB Building Official Gerard Roussin called an effort to repair the current structure, with its extensive damages, “a complete waste of grant, taxpayers and insurance monies due to the fact that this is a non-conforming structure with the distinct possibility of having the same storm surge issue happen again.”
At the July 20 meeting, current KCB Vice Mayor Beth Ramsay-Vickrey reiterated, and was eventually granted via a 3-2 vote, her request for an independent investigation paid for by the city into the allegations, even as FEMA’s probe is ongoing.
City Attorney Dirk Smits said the cost of such an investigation would likely be up to $15,000, as relayed to him by a third-party attorney, but could go higher if unexpectedly extensive work was required. He said the investigation “could be very short,” as probes of this nature do not have subpoena power, but that the investigating attorney would have the opportunity to speak to as many individuals as possible about the alleged activities.
One critical component of the upcoming investigation is a concern about the statute of limitations. As relayed by Smits, “The period of limitation of actions for fraud is four years long. Fraud commences on the day that the defrauded party knew, or should have known, of the occurrence.”
“The problem I’m having is the only thing I really know anybody knew is what the newspaper article said,” he added. “So in determining if there is something to prosecute, the determination is going to come to who knew what when. That’s going to be part of that investigation, but that’s integral.”
“I didn’t create this mess; I’m just trying to get to the bottom,” said Ramsay-Vickrey. “These are very serious allegations … and (the investigation) needs to start with the person who levied these accusations. As a clerk who went on to become a seated commissioner herself, Mrs. McCullough … has some explaining to do as to why she’s only bringing attention to this now.
“FEMA’s investigation won’t address our city’s concern or clear our reputation. They’ll be looking to see if we received money based on fraudulent activity, which I’ve been told we did not. … How we address this may very well determine our city’s reputation.”
“If there are any wrongdoings, I welcome the transparency 100%,” said Mayor Patti Trefry. “If there are wrongdoings, this investigation will uncover them.”
Commissioners Freddie Foster and Joey Raspe, who voted against the investigation, argued that the investigation would be duplicative given FEMA’s ongoing efforts and would lack the power required to secure necessary testimony.
