The Harrisburg Auction: Mayor Thompson - Now is the time to work with council and the mayor.

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Mayor Thompson held a presser Friday afternoon to discuss the Commonwealth court ruling handed down Thursday allowing the Thompson administration to schedule a auction sale of the artifact collection acquired by the former mayor Steve Reed.

From our archives:

The latest proceeding in the saga that is the Mayor of Harrisburg versus the City Controller happened in Commonwealth Court on Tuesday, January 29th in front of Senior Judge James Gardner Collins.

Collins held a hearing to consider City Controller Dan Miller's request that the Commonwealth Court stay a November 15th Dauphin County Court of Common Pleas Writ of Mandamus ordering the City Controller to sign a contract to hire Guernsey's Auction House of New York to sell the infamous Mayor Stephen Reed Wild West artifacts.

Miller has contended he cannot sign the contract with the auctioneer of the Mayor's choice without the oversight and budgetary approval of Harrisburg City Council.

Mayor Linda Thompson vehemently disagrees, saying the necessary City Council approval occurred in 2006 and 2011. Thus, since Spring of 2012, the Mayor and Controller have been in a legal battle over the validity of the Consignment Agreement with Guernsey's.

In November, Dauphin County Judge Bernie L. Coates, Jr. ruled the Mayor's position is the right one, and almost immediately the Thompson Administration publicly announced Guernsey's will proceed with setting up a mid-summer auction. In contrast to the Receiver's Recovery Plan estimate of $500,000 and the City Controller's estimate of $1.7 million, Thompson claims Guernsey's is estimating the value of the artifacts to be $3 to 6 million.

Per the Mayor-approved contract, Guernsey's commission is 18% on the first one million dollars gross sales; 15% on the next $1-2 million; and 12.5% for gross sales above $2 million. There will also be a 19% commission on online sales.

Aside from the fact that Miller asserts that the commission rates are too high, his legal argument is that the Mayor is circumventing the authority of the City Council to properly allocate the anticipated expense of the commission into the City's budget.

Even though Judge Coates made his ruling, he has yet to issue an opinion on the matter. In fact, in Commonwealth Court on January 29th, Miller's attorney, Benjamin Dunlap of Nauman, Smith, Shissler, & Hall argued the lack of an opinion from the Dauphin County Judge is enough to stay the case.

Commonwealth Court Judge Collins also remarked on the fact that the lower court has yet to provide an entire record of the proceedings, and said he'll wait for that before making a decision on the City Controller's appeal for a stay. The Judge did say he plans on making a expedient decision recognizing time is of the essence.

On behalf of the Office of the Mayor, City Solicitor Jason Hess, made the argument that any more delay is contributing to the City of Harrisburg's current fiscal distress.

In an attempt to remedy the situation, City Councilor Brad Koplinski proposed a Resolution in November outlining City Council's approval of the contract with Guernsey's. However, City Council President Wanda Williams has yet to hold a public hearing on the Resolution or move it to the table for vote, saying she was waiting for the Court's ruling.

When asked about the Koplinski-sponsored Resolution, the City Solicitor stated, "It's an unnecessary piece of legislation."

None the less, it seems bringing forth the Resolution and calling for a vote would satisfy the City Controller's position and literally bring a resolution to this dispute.

Other than that, all parties are looking to the Court.

Videos from the Commonwealth Courthouse:

Harrisburg City Controller Dan Miller: It's an issue of accounting

Harrisburg City Solicitor Jason Hess: "Any further delay hinders collection of the receipt of much needed proceeds."

Photo/Natalie Cake

 
Tags: Artifacts, Commonwealth Court, Dan Miller, Harrisburg Financial Crisis, Mayor Thompson, The Harrisburg Auction