Okaloosa County BOCC — February 11, 2013 — February 11 Special Meeting Tallahassee — reading text

Advisory Committee and approved removal of the conflict of interest clause. Mr. Curry replied that was a draft document. Representative Rodrigues directed the same question to Mr. Amunds who replied that it was a draft document. Representative Rodrigues referred to the current problem and he asked if someone could explain why consideration was given to removing the conflict of interest clause regarding future funding. Mr. Amunds stated he could not recall the discussion. Mr. Amunds offered that Mr. Howard could possibly give cost figures on legal fees and perhaps Mr. Dowd could answer Representative Rodrigues’ question. Senator Abruzzo asked what question is being referenced—current legal costs or budgeting for future legal costs. He continued and said the Committee wants to get the overall economic impact. Representative Raulerson asked for verification that the Tourist Development Director now reports directly to the County Administrator as any other department head. Mr. Amunds confirmed this policy was re-implemented. Representative Raulerson asked for an explanation of why the policy was February 11, 2013 -10- Minute Book 68, Page Okaloosa County Board of County Commissioners previously changed. Mr. Curry responded that in 2005 the Executive Director of the Tourist Development Council was taken out from under the County Administrator and reported directly to the Board of County Commissioners. In May 2012 that policy was rescinded and the Tourist Development Director was to report to the County Administrator. Representative Raulerson asked when the reports from the various investigating agencies are to be completed and made available to the public. Mr. Curry said although they have worked closely with these agencies, he does not know when the investigations will be concluded. Representative Broxson asked if the county was given clear or unclear instructions regarding implementation of its own investigation. Mr. Curry stated the BCC did begin its investigation immediately and retained Greg Stewart of Nabors, Giblin & Nickerson to begin the investigation and report to the Board and to him. He said he does not want the Committee to believe the county did not take the request from the Sheriff and State Attorney as a complete stand down. Mr. Curry said they did go forward with measures but the portrayal is that the county sat on its hands. Commissioner Parisot came forward and was sworn in by Senator Abruzzo. Mr. Parisot stated he became a seated member of the Board of County Commissioners in late November 2010. He added the events at the TDC began before he became a commissioner. Senator Hays stated the AGO findings say the county did not follow procedures and the system with the two marketing agencies, Zimmerman and Lewis, was flawed. Upon inquiry by the Senator, Mr. Parisot said there were no cash transactions but there were checks and wire transfers. He confirmed the purchases were made through the Zimmerman and Lewis agencies. Senator Hays asked if the Porsche was purchased through one of these advertising agencies. Mr. Parisot replied in the affirmative and said he can read the justification on the documents. He referred to three invoices, one is dated August 31, 2010 from Zimmerman and the justification for a $48,000 expenditure is a 2010-11 internet video promotion. Mr. Parisot said this was actually for the purchase of a 2008 Porsche. An invoice dated July 12, 2011 from Lewis Communications in the amount of $747,000 is described as the February 11, 2013 -11- Minute Book 68, Page Okaloosa County Board of County Commissioners Boast the Coast promotion traveling to multiple cities. This expenditure was apparently for the house in Destin. Senator Bradley commented that he is trying to wrap his head around this and asked who showed up at the Porsche dealership to take possession of the vehicle. Mr. Parisot replied the document shows that Mark Bellinger signed for it. Senator Bradley asked who gave Mark Bellinger $48,000 to pay for the car. Mr. Parisot replied that it was the Zimmerman Agency. The Senator then asked who gave Zimmerman the money and Mr. Parisot said he doesn’t know. Senator Bradley asked if the firm who purchased the $48,000 Porsche is the same firm who provided the employee Christmas party (finding #9). Mr. Parisot replied that was the Zimmerman Agency. Senator Bradley asked if the county’s correction plan includes a means of recovering funds. Mr. Parisot answered that some funds have been recovered. He spoke about the purchase of a vehicle for a “giveaway program” and after Mr. Belliner’s death, the interim director (Airport Director Greg Donovan) spoke with the dealership and that money was refunded. Mr. Parisot stated there was another incident involving a $9,000 contract with Okaloosa-Walton United Way, noting that agency released the county from the obligation. Senator Hays asked which county employee authorized the checks to be written for these amounts. Mr. Parisot answered that he has not seen all the invoices and said he stopped his internal investigation when the letter from the Sheriff and State Attorney was received. He then spoke about being a retired military officer and being part of a team which investigated two aircraft crashes. Senator Hays referred to advance payments (Finding #11) which were made and are contrary to state law. He specifically referenced $25,000 from tourist development taxes paid in advance for a musical group to perform a concern; $24,000 from BP grant funds to one firm for a driver to transport a recreational vehicle to promotional events; and $38,000 from BP grant funds to one firm for services of a PR spokesman. He noted that spokesman was to provide 32 days of service but only provided 23 days of service. Senator Hays asked if the county’s corrective action plan includes seeking reimbursement for these payments to which Mr. Parisot said “yes.” February 11, 2013 -12- Minute Book 68, Page Okaloosa County Board of County Commissioners Representative Harrell asked Mr. Amunds if the county will have to pay back the BP grant funds which were inappropriately dispensed. Mr. Amunds replied the County Administrator has dealt with the issue on a day-to-day basis. Mr. Parisot stated Special Counsel worked with BP regarding those purchases. Upon inquiry by Representative Harrell, Mr. Parisot said his understanding is the BP fund usage in contention deals primarily with EMS service. He stated the county has notified the Department of Emergency Management that they will handle the matter. Mr. Parisot said he is not aware of any other items. Representative Harrell responded there other expenditures in the AGO findings. He asked if the county and its taxpayers are going to be responsible for refunding that money back to BP. Mr. Parisot stated he cannot answer that question. Representative Harrell commented they may want to keep track of those costs. Senator Abruzzo agreed, saying the Committee wants to know the total impact of these costs. Senator Bradley stated he would like to speak with Mr. (Tom) Shulte, the attorney present on behalf of the Zimmerman Agency. Mr. Shulte asked the Committee if they received the letter prepared by his partner and sent last Friday. He stated yesterday he was asked to come to the meeting, adding that he does not have the ability to answer any questions. Senator Bradley commented that he will follow the money and posed questions about the Porsche purchase for Mark Bellinger by the Zimmerman Agency. He asked Mr. Shulte if he can tell him about Zimmerman giving Bellinger the $48,000. Mr. Shulte replied that he doesn’t know. He said his partner is James Judkins and he has been dealing with this. Senator Abruzzo stated they will not get any answers on the Zimmerman issue today. Senator Bradley said there are gaps to be filled and he wants to know about the dollars spent on the Porsche and he wants to talk to Zimmerman. Senator Ring asked Mr. Shulte what he knows about the level of investigation and Mr. Shulte replied he doesn’t know. When asked by Senator Ring if Zimmerman is privately owned, Mr. Sholte answered that he is not sure if they are owned by the Fort Lauderdale company. He repeated that his partner represents Zimmerman and he will get the information the committee needs. Senator Abruzzo asked Mr. Shulte to be seated. He told him to relay the message that the committee wants the partner and Zimmerman present to answer questions. February 11, 2013 -13- Minute Book 68, Page Okaloosa County Board of County Commissioners Representative Gaetz stated he would like to ask Mr. Amunds questions about Finding #19 (BP Grant Funds – grant compliance and controls over Debit Card Program). The Board approved the use of $1 Million from the BP Grant to conduct the Emerald Coast Money Debit Card Program. Representative Gaetz said according to the AGO audit, $270,000 in debit cards were given to Mark Bellinger. He asked Mr. Amunds who made that decision. Mr. Amunds replied that he does not know what individual made that decision. Representative Gaetz asserted that someone did and asked Mr. Amunds to find out and report back. Mr. Amunds stated there are many questions he does not have answers to but perhaps Mr. Curry can and asked for that not to be held against him. Representative Gaetz remarked that we are eight months deep into this and the chairman cannot answer questions. Senator Hays asked Mr. Amunds to look into this. He also said he would like information on which airline got some of these cards. Mr. Amunds replied Vision Airlines got a majority of the credit cards and that is being investigated. Representative Gaetz again asked who gave Mark Bellinger $270,000 in debit cards. Mr. Curry said he does not want to say definitely but the cards were delivered to the Clerk’s Office. Representative Gaetz said 46 individuals used the debit cards to purchase food, alcohol and entertainment and asked Mr. Curry if he knows who those individuals were. Mr. Curry replied in the affirmative but corrected the statement saying it was four individuals who used 46 cards. Those four individuals were Mark Bellinger and three Zimmerman Agency employees. Representative Gaetz asked if any of the debit cards were given to elected officials. Mr. Curry answered he has no knowledge of that. The Representative asked if any cards were given to charities run by an elected official. Mr. Curry said one was given to a charity event but he does not know if there was any oversight of that event by an elected officer. Representative Gaetz asked if any cards were given to the Special Olympics. Mr. Curry said he doesn’t know the answer. Mr. Amunds confirmed the Special Olympics did receive cards for the Island Hop Promotion. He stated that he volunteers and works with them on a part-time basis. Mr. Amunds said Kim Christopher who works for him got prizes from different vendors and she did get two debit cards from TDC. He added the Sheriff’s Office interviewed him on this subject and that is how he found out about the cards. Representative Gaetz asked Mr. Amunds if he gets paid by Special Olympics and Mr. Amunds said he gets a stipend. February 11, 2013 -14- Minute Book 68, Page Okaloosa County Board of County Commissioners Representative Gaetz referred to Finding #4: Conflict of Interest. He said the Crestview Chamber of Commerce received $27,000; $17,500 was paid to two companies to promote and advertise local volleyball tournaments; and $2,200 went to provide aerial advertising. Representative Gaetz asked if these were proper or inappropriate and if there were any conflicts of interest. Mr. Amunds suggested he