Pendergrass City Council members on Oct. 28 examined recent vendor payments and internal purchasing controls, then voted to end the public meeting and go into executive session to discuss personnel.

Councilman Gomez opened the inquiry under the city charter’s provisions for investigations, saying he had reviewed treasury records and questioned payments to a vendor listed as “Timber and Tools” that he was told is owned by City Manager Renee Martinez. “I feel like I’ll be lied to. Just my opinion,” Councilman Gomez said as he read charter sections that require disclosure of financial interests in city contracts.

The concern followed earlier discussion by the mayor that the city’s finance office had recorded payments to a contractor, Ricardo Martinez, for remodeling work at the police department and later listed a business name. Gomez said he had seen two initial payments to Ricardo Martinez—one he described as about $15,000 and another about $10,000—and then vendor entries under the Timber and Tools DBA in August and September.

Mayor (name not specified) acknowledged awareness of the payments and described the operational steps the city uses for bills: “They come up to me after that, and we go over the bills, and I approve the payment of the bills. Jennifer writes the check. Renee has the ability to sign the checks,” he said, describing a three-step approval process that he said includes his review before checks are issued.

Council members pressed for documentary clarity. Jennifer, identified in council discussion as finance staff, told the council she had checked vendor listings in the city’s accounting system and reported Ricardo Martinez was not listed as a vendor in the new system; the Timber and Tools entry was the vendor name she identified when asked who owned the account. The council requested that finance produce invoices and vendor documentation for the payments cited in the inquiry.

The review broadened into questions about purchasing controls. Council members and the mayor said the city had lacked a formal purchasing policy and that the council had responsibility under the charter to adopt one; officials said the council will address purchasing rules during a Nov. 11 work session and aim to implement changes at the Nov. 18 meeting. The mayor described emergency-authority practices in which the mayor may authorize limited emergency spending and said those exercises of authority would be reviewed as part of the policy work.

The council also discussed suspected bank fraud that the mayor reported earlier in the meeting. The mayor said the bank notified the city after detecting suspicious activity tied to the old account and that the city left roughly $25,000 in the old account to cover outstanding items while opening a new account. The mayor said a check written to WEX for fuel purchases was among items flagged and that the bank and its security team were monitoring activity.

Members questioned the city’s use of a debit account and a longstanding informal purchase arrangement with North Jackson Food Mart for fuel and small supplies used by the street department. Council members described inconsistent practices for who can sign purchase slips and how receipts are tracked; the finance staff said street‑department receipts are collected and tallied against the account. Officials said WEX fuel cards had since been ordered and that the city planned to limit fuel purchases to approved equipment and personnel when the cards arrive.

No formal discipline or final findings were announced during the public meeting. After extended questioning and statements by council members and the mayor about hiring practices, vendor records and internal controls, the council voted to adjourn into an executive session to discuss personnel matters and related inquiries. The mayor and council scheduled a Nov. 11 work session to draft purchasing and personnel policy changes and set a Nov. 18 council meeting where budget and policy items will be considered.

Actions taken at the Oct. 28 meeting included approval of prior meeting minutes, a vote to add an executive session to the agenda, a vote to reschedule upcoming meetings (new regular meeting Nov. 18 and Dec. 30), and a vote to adjourn to executive session for personnel matters.