More trouble hits housing authority as consulting deal costs $12,000 in first month

A controversial consulting contract for human resource services at the financially troubled Southern Nevada Regional Housing Authority is being criticized in light of more than $12,000 in costs billed in just one month.

Directors of the authority, which recently had to dip into reserves to cover a $1 million year-end budget deficit, have been critical of the HR contract that went into effect Oct. 6. Board members questioned the need for the work, and how the contract had come to be.

Now, the board has learned that the consultant, former Clark County government employee Kathleen Lambermont, billed the housing authority for 136.5 hours in October at a rate of $90 per hour. Her work included attending a "Celebration of Aging" event aimed at authority tenants; a graduation celebration for a self-sufficiency program; waiting to get her computer and phone set up; and calling the Review-Journal to introduce herself.

Commissioner Dora LaGrande, a vocal critic of the consulting contract, said some of the items Lambermont billed for aren't even considered work, such as the events she attended.

"In my opinion, it's a misuse of agency resources," LaGrande said Friday.

The Review-Journal earlier this month reported Lambermont was awarded a 6-month contract to oversee the day-to-day operations of the agency's HR department, essentially duplicating the efforts of a full-time acting HR director already appointed by Executive Director John Hill.

Lambermont's contract has since been modified to remove day-to-day management oversight responsibilities that will instead be handled by the acting HR director, Anthony Tyler. On Sept. 3 Tyler was given a 5 percent raise in light of his new duties, bumping his annual pay to $70,012. Lambermont will now focus on conducting an HR assessment and providing recommendations for improvement.

The newspaper also reported that Lambermont had submitted her application and bid for the consulting job on Oct. 6, the same day her contract went into effect. Lambermont is a friend of Las Vegas Justice of the Peace Karen Bennett-Haron, whose husband is Fred Haron, the housing authority's finance director. Bennett-Harron has acknowledged she called Hill to endorse Lambermont as a"highly respected HR professional."

Lambermont maintains her hourly rate is low compared to consultant estimates from the Society for Human Resource Management, which range from $125 to $250 an hour. She added she's not charging the agency for lunch, travel time and mileage. She doesn't have a monthly retainer fee either. Lambermont's rate will go to $100 per hour after 90 calendar days with satisfactory performance, according to her contract.

"I simply was being transparent on all the activities that I do," she said of the activity log she keeps for the agency, which provides housing to low-income families in Southern Nevada.

A heated discussion of Lambermont's contract broke out during a Nov. 19 housing authority board meeting after the Review-Journal story was published. During the meeting, no one could say who wrote the contract and the agency's attorney, Teddy Parker, said he hadn't seen it.

Deborah Laine, the authority's director of procurement and contracts, said she didn't write the contract. Hill declined all comment after the meeting.

Lambermont later told the Review-Journal she had offered points about her services and other information to be included in her contract, but she wasn't the final author.

LaGrande during the meeting raised concerns of a possible misclassification of an independent contractor that could put the agency at risk. She noted the hourly pay, provision of work equipment such as a computer and phone, and the indefinite term of the contract.

But Jose Carnevali, spokesman with the U.S. Department of Labor, said there are no Fair Labor Standards Act compliance issues that result from an employer providing specific equipment. Though, the Internal Revenue Service says an independent contractor often has a significant investment in equipment used to perform work for someone else.

A continuing relationship between the worker and the employer indicates employee status, according to the IRS, though a spokesman declined comment on any specific instances in keeping with agency policy.

The IRS says contractors are usually paid a flat fee for a job, though in some professions, such as law, hourly pay is common. The agency said contractors are also less likely to be reimbursed for expenses.

Under Lambermont's contract, the authority will reimburse for travel, educational or other business expenses approved in writing in advance.

The contract expires in April 2016, but can continue on a month-to-month basis until terminated by either party. Although Hill previously said Lambermont could work 20 to 30 hours per week, the contract sets no limits.

LaGrande also pointed out that if there's no hour limit on the contract, it could exceed the $100,000 that requires board approval. Hill didn't consult with the board about the contract.

Lambermont said she feels sad about the way her contract was discussed at the Nov. 19 meeting, and called concerns that it could put the agency at risk for potential misclassification "false statements."

"There's some significant challenges in HR and I was naive and optimistic that I was going to provide services, and I feel like I'm being unfairly scrutinized," she said.

Contact Yesenia Amaro at yamaro@reviewjournal.com or 702-477-3843. Find her on Twitter: @YeseniaAmaro.