Dean v. Muscatine County

250 F. Supp. 2d 1094, 2003 U.S. Dist. LEXIS 3744, 2003 WL 1227956
CourtDistrict Court, S.D. Iowa
DecidedFebruary 24, 2003
Docket3:01-cv-10092
StatusPublished
Cited by1 cases

This text of 250 F. Supp. 2d 1094 (Dean v. Muscatine County) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dean v. Muscatine County, 250 F. Supp. 2d 1094, 2003 U.S. Dist. LEXIS 3744, 2003 WL 1227956 (S.D. Iowa 2003).

Opinion

ORDER

LONGSTAFF, Chief Judge.

The Court has before it a motion for summary judgment, filed September 13, 2002 1 by defendants Muscatine County; *1096 Roger Eichelberger, Muscatine County Board of Supervisor; Richard Marr, Mus-catine County Board of Supervisor; David Watkins, Muscatine County Board of Supervisor; and Michael Johannsen, Director of Muscatine County Comunity Services and Muscatine County Central Point of Coordination (collectively, the “county defendants.”)- Plaintiff resisted the motion October 22, 2002, and a telephonic hearing was held before the undersigned on February 18, 2008. The motion is fully submitted.

1. BACKGROUND

The following relevant facts either are not in dispute or are viewed in a light most favorable to plaintiffs. 2 At all times relevant to this action, defendants David Watkins and Roger Eichelberger were members of the Muscatine County Board of Supervisors (“the Board”). Defendant Michael Johannsen was the director of Muscatine County Community Services Central Point of Coordination (“CPC”). Defendant Richard Marr became a Board member on January 1, 2001.

Prior to their collective terminations on April 30, 2001, plaintiffs were employed by Muscatine County in the following capacities: 1) Peggy Dean was administrator of Muscatine County Residential Services (“MCRS”), a residential care facility for persons with disabilities; 2) Sheryl Wies-kamp was assistant administrator of MCRS; and 3) Carolyn Ahlstrom was coordinator of the MCRS “day treatment” program, which also served disabled individuals.

A. Negotiations Process

During the 1990s, the federal government mandated that health facilities for the disabled housing more than fifteen residents be operated by private agencies in order to receive Title 19 funding. After studying the issue, Muscatine County officials determined that because many residents of MCRS could qualify for Title 19 funding, privatization of the Residential Services program could save the county approximately $300,000 per year.

On November 22, 1999, a Muscatine-based nonprofit organization, Crossroads, Inc., approached County officials about operating Residential Services. In its first communication with the County, Crossroads indicated it had been in contact with Ms. Dean, and was impressed with her plan to downsize the number of residents at the facility and to allow for alternative care.

Meanwhile, all three plaintiffs took public stands regarding the County’s upcoming plans for privatization of mental health care services. For example, each plaintiff specifically criticized a proposed plan under which the care provider would receive a bonus from the County for each disabled person who was discharged from regular care and moved into independent living. Ms. Ahlstrom wrote frequent letters to the editor of the Muscatine Journal, voicing her opinion that Crossroads was the preferable provider for residential housing for the disabled, and that defendant Johann-sen had a conflict of interest in serving as guardian, payee and case management director for many disabled persons. The *1097 plaintiffs believed there was substantial and unnecessary duplication of services among county agencies and those serving the county.

Ms. Dean and Ms. Wieskamp wrote several letters to the County supervisors and Mr. Johannsen, and in January 1999 urged them to appoint a non-partisan facilitator to the Mental Health Strategic Planning Task Force and to separate administration and service providers. Ms. Dean and Ms. Wieskamp created and presented a Power Point presentation for the supervisors and other community groups in which they promoted Crossroads’ takeover of the MCRS facility.

Mr. Johannsen and Mr. Eichelberger responded negatively to plaintiffs’ public statements and suggestions, as well as those made by Crossroads Director Sharon Barnhart. Ms. Barnhart tried to discuss the duplication of services with Mr. Johannsen, but received no response. Mr. Johannsen told Ms. Dean he considered her January 1999 communication insulting, and warned Sharon Barnhart not to be seen entering public meetings with Ms. Dean. Ms. Barnhart stated in deposition that during Board meetings on the issue, Mr. Eichelberger had been unduly abrupt with Ms. Dean, which Ms. Barnhart considered humiliating. On separate occasions, Mr. Eichelberger indicated to Ms. Dean and Ms. Weiskamp that if they didn’t “call off’ Ms. Esther Dean, a fellow county supervisor who supported Crossroads, Mr. Eichelberger would “bring in a big-for profit operator” to administer the care services program.

Mr. Eichelberger also publicly demeaned Ms. Ahlstrom. In July 2000, he wrote a guest column for the Muscatine Journal, and mentioned a Letter to the Editor written by Ms. Ahlstrom. Mr. Ei-chelberger stated in his column that Ms. Ahlstrom had deceived the public by not identifying herself as a county employee.

On June 26, 2000, the Board issued a Request for Proposal (“RFP”). Both Crossroads and ResCare, Inc. .(“Res-Care”), a for-profit company, submitted bids to operate the residential care facility. Crossroads made it public that it intended to retain all of the MCRS administrative staff, including Ms. Wieskamp and Ms. Peggy Dean, albeit not necessarily in their former positions. The same could not be said of ResCare. In their October 2000 response to the RFP, ResCare stated it would “interview and hire administrators based on assessment of an applicant’s abil-it[y] to lead. Our experience has shown that key positions which provide leadership in the transition to delivery of Res-Care services, is best met by an individual or individuals whose values are grounded in ResCare’s mission, principles and vision.” Plaintiffs’ App. at 269.

It is important to note that neither Crossroads nor ResCare submitted a bid to operate the Day Treatment Program. In November 2000, the Supervisors voted to transfer the Day Treatment Program to the County Program Services Division, headed by Mr. Johannsen.

By the November 6, 2000 Board meeting at which the responses to the RFP were considered, Supervisors Esther Dean, Sandy Huston and John Oberhaus had made it clear they supported Crossroads. The supervisors voted 4-0, apparently with one absence, to begin negotiations with Crossroads. Following the vote, Mr. Ei-chelberger went out into the hallway and informed a group of ResCare officials that it wasn’t over yet, and that “this is just something we have to go through and we will be back to you.” Plaintiffs’ App. at 283.

The negotiations process with Crossroads did not go well. Ms. Barnhart alleged Mr. Johannsen refused to give her budget figures that should have been *1098 public information, and failed to keep her informed of the negotiations process. Supervisor Oberhaus believed that Mr. Ei-chelberger, who was on the negotiating team, cut him out of the process. Crossroads Board President Phil Fitzgerald believed that the actions of Mr. Johannsen and the negotiations team suggested they did not want the contract with Crossroads.

In mid February 2001, Mr.

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Bluebook (online)
250 F. Supp. 2d 1094, 2003 U.S. Dist. LEXIS 3744, 2003 WL 1227956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dean-v-muscatine-county-iasd-2003.