City works to settle invoice over hotel linen

Published 6:26 pm Saturday, January 9, 2016

The city of Selma is working to settle a year old dispute over linens for the St. James Hotel.

City Attorney Jimmy Nunn briefed the council on the ongoing issue during Thursday’s work session.

Paramount Services out of Birmingham has invoiced the city for more than $29,000 for linens used at the St. James Hotel from October 2014 through January 2015.

During that time, Strand Management was running the hotel for the city.

Nunn said he could find receipts where Strand employees signed for $12,050 for the rentals.

The company is claiming more is due and that $12,000 of linen dropped off at the hotel is missing.

Nunn said there’s no way for city employees to know how much linen was picked up or dropped off at the St. James.

The city and Paramount Services continue to negotiate a settlement. Nunn said he wanted to keep the issue out of court.

“We are trying to avoid a lawsuit,” Nunn said.

Nunn said even though Strand was managing the St. James it’s ultimately the city’s responsibility to honor the contract.

“They should have been submitting these bills to the city of Selma. We did not know these bills were not paid,” Nunn said. “We should have caught their bad management earlier.”

When Strand left town in March 2015, the company left more than $89,000 in outstanding invoices that have been paid by the city, including a power bill that was more than $20,000.

The city council discussed authorizing Nunn to settle the invoices for $16,000 but made no vote since the meeting was a work session.

Efforts to reach Paramount Services or Strand Management for comment late Friday were unsuccessful.