Okaloosa County BOCC — May 17, 2013 — March 4 Special — reading text

and he has recommended the commissioners not accept the resignations of the council members. When Representative Rodrigues asked for an explanation of the circumstances surrounding the resignation, Mr. Gourley replied that he did not resign. The Representative then asked why Mr. Gourley was not removed. March 4, 2013 -5- Minute Book 68, Page Okaloosa County Board of County Commissioners Mr. Gourley was dismissed and Ms. Patricia Hardiman was brought forward and sworn in. She reported that she did not prepare a statement and assumed she would be answering questions. However, Ms. Hardiman stated she would like to make a few comments. First, she said there is a misconception about the council’s role and, perhaps, they understood their roles incorrectly. Ms. Hardiman stated the TDC is not a governing body and she did not think she was there to go over every decision Mark Bellinger was making and does not believe that is in the policy manual. Ms. Hardiman said she came on the TDC in May 2010 and was just asked to resign. She stated they did not just sit there but had an agenda to review. Ms. Hardiman commented she thought the council members would have a more effective role but often felt it was superfluous and the director did not need their approval. She recalled Mr. Hall often said during the meetings their actions were recommendations. Ms. Hardiman always thought the recommendations were being taken to the Board of County Commissioners and in retrospective she said she should have checked. Mr. Abruzzo posed the same questions to Ms. Hardiman as to Mr. Gourley about the request for her resignation. She replied TDD Director Daniel O’Byrne called her after the commission meeting and she saw it in the newspaper. Ms. Hardiman noted she wrote her resignation that day. She confirmed Mr. Amunds did call her. Fielding questions from Senator Simpson, Ms. Hardiman stated Mr. Hall was always in the meetings and maybe only missed one. She also answered it was her belief that everything was sent to the BCC. Ms. Hardiman stated she did not think they (TDC) had the power to do anything. Senator Ring commented that all members of the Committee have been on advisory boards and he understands what Ms. Hardiman is saying. He felt the direction should be to those in authority— the director and commissioners and would like to ask the commissioners some questions. Senator Bradley thanked Ms. Hardiman for coming and said he agrees with Senator Ring and questioned being overly critical of those people who do not have absolute authority. He said the Committee is reading facts from the AGO report which says the TDC acted not as an advisory board but as a final authority. March 4, 2013 -6- Minute Book 68, Page Okaloosa County Board of County Commissioners Senator Bradley stated Ms. Hardiman may disagree with that but the findings show the TDC and the TDC Marketing Subcommittee approved a $341,361.89 special event grant. He gave other examples. The Senator stated these are specific events and specific amounts which the council voted on. Senator Bradley said there is a disconnect between what he just read from the AGO report and the previous witness’ statement that the TDC did not play a role. Ms. Hardiman said the council did address specific projects and voted on recommendations. She reiterated she honestly thought it went to the BCC. Senator Bradley addressed another finding of sponsorships which went to two companies for a volleyball tournament and a TDC member owned the company which put on the event. When asked if she was aware of what he just said, Ms. Hardiman replied yes, that was Tim Edwards. The Senator asked if that concerned her. She replied he abstained but she did ask legal counsel to comment in the meeting. Senator Bradley asked for clarification of what he heard, stating that during the meeting one item is pulled aside for discussion. Ms. Hardiman said the recommendation was Mr. Edwards should not vote. Senator Bradley commented that is a detailed discussion. Ms. Hardiman responded she felt there were detailed discussions on little things but not so much on big things. Representative Ray asked Ms. Hardiman if she ever met with Mr. Bellinger directly to discuss the budget and if there was any one-on-one discussions. Ms. Hardiman said she had only one one- on-one discussion with Mr. Bellinger which was when he first started. Mr. Ted Sauerbeck, Deputy Auditor General, was asked to come forward. Representative Ray referred to the AGO report which stated the advisory board was approving expenditures. He asked if the advisory board was approving those dollars versus actual approval by the BCC. Mr. Sauerbeck replied the TDC did approve expenditures which were not brought to the Board of County Commissioners. He added the TDC approved them and he does not know why the BCC didn’t. Representative Ray commented the TDC cannot appropriate funds. Mr. Sauerbeck responded their report found the TDC approved the use of those dollars and the BCC did not. The Representative asked if this is what they would normally have done and Mr. Sauerbeck stated he cannot say whether it was normal or not. Representative Ray said there is March 4, 2013 -7- Minute Book 68, Page Okaloosa County Board of County Commissioners not really intent on the part of the TDC board other than they were presented something and directed where it was to go. Mr. Sauerbeck replied that could very well be the case. Senator Ring said everyone is familiar with the role they have on advisory boards. He questioned why the Committee is “going after” this advisory board. Mr. Abruzzo replied they are not going after them and Senator Hays requested them to be present today. He advised this is not a witch hunt but looking for transparency. Mr. Bobby Nabors was asked to come forward and was sworn in by Senator Abruzzo. Mr. Nabors stated he represents the City of Fort Walton Beach on the TDC. He said they were given a budget and expenditures to look at but they did not go to the Clerk’s Office and ask for bank statements. Mr. Nabors stated that was not in their job description. He continued, saying the expenditures for the boat, house and Porsche were not on the spreadsheets given to the TDC. When he knew him, he said Bellinger drove a Subaru. Mr. Nabors stated the former director was given authority with no oversight. He pointed out a member of the BCC sat on the TDC and the executive director (Mark Bellinger) answered to the Chairman of the Board of County Commissioners. He stated there was a failure in the system, noting the Chairman of the BCC did not sit on the TDC and did not know what was happening because the Sunshine Law precludes the BCC’s representative from discussing issues with the Chairman. He also pointed out the Chairman of the BCC changes every year. Mr. Nabors pointed out that every time Mr. Hall would correct them by saying “We would like to recommend to the BOCC.” He stated everything (proposed expenditures) did not make it to the commissioners. He added there was no rubber stamp approval because there were times the BCC said no. Mr. Nabors said “Did I monitor everything we recommended? Absolutely not.” Senator Abruzzo asked him if he was asked to resign. Mr. Nabors replied via the newspaper and the City Manager was notified by someone in the county but he doesn’t know who that was. He said he does not believe the county has the authority to remove him or to ask him to resign. Mr. Nabors stated there was a telephone conversation in which he was told that if he resigned, he would not have to go to Tallahassee and to testify. March 4, 2013 -8- Minute Book 68, Page Okaloosa County Board of County Commissioners Recess: The meeting was recessed at 11:22 a.m. and reconvened at 11:25 a.m. Mr. Bradley asked Mr. Nabors what he does for a living and if any funds flowed through his business. Mr. Nabors answered that he runs a couple of retail stores and no money came to his businesses. When asked if anything might have benefitted his business. Mr. Nabors replied that a television commercial and a 13-week Facebook campaign which attracted people to the area could have benefitted his businesses. Mr. Nabors referenced the Marketing Committee and said there was discussion about a boat campaign early in the fall of 2011. The discussion was about renting a boat or yacht and doing weekend getaways. He reported there was never any consensus on renting or buying a boat. Ms. Kathy Houchins was called forward and sworn in. Ms. Houchins stated she has been involved with the TDC for the last ten years working first with Darrel Jones, the first TDC Director, then with Mr. Bellinger. She said she originally was on the Marketing Committee and moved next to the council. Ms. Houchins stated the council members thought everything was going to the BCC. She said there were no requests from Mark Bellinger to purchase a house, boat, motorcycles or Porsche. She reiterated they all believed the items were going to the BCC. Senator Abruzzo asked Ms. Houchins if she was asked to resign. She replied yes by the newspaper, television station, and she received a telephone call from Mr. Amunds who thought it would protect the council members from being pulled through the mud. Senator Abruzzo asked if the resignations were so the council would not have to come before the Committee and testify. Ms. Houchins replied that is not what she said, adding “Why go to a public flogging when you don’t have to.” Senator Hays pointed out this is the third or fourth person who has made that statement. He asked the Chairman if there was any contact with these people and how did this line of thinking develop. Senator Abruzzo replied no one on staff had any communication with Mr. Amunds. He referred to the February 11 meeting and the questions he asked Mr. Amunds about the timing of the resignation requests. Senator Abruzzo read from the transcript of the meeting and said it was Mr. Amunds’ response that it was not a deliberate attempt for the council members not to come and testify. He felt some valuable information has been March 4, 2013 -9- Minute Book 68, Page Okaloosa County Board of County Commissioners obtained from the appearance of the council members. The Senator stated the information about the process and the agency is vital to the Committee. Ms. Houchins pointed out the process had been set up years ago and was not changed until later. Senator Bradley asked when it changed and Ms. Houchins answered it was changed after finding out about the embezzlement. The task order process was implemented and there were no payments in advance. She considered these changes a move in the right direction. Mr. Steve Hall came forward and was sworn in. Senator Abruzzo noted Mr. Hall resigned as TDC attorney on February 5 and is attending on his own. Mr. Hall pointed out he was present at the last meeting because he learned he was on the original invitation list. He advised that he is glad to be here to help in any way. Mr. Hall stated he was TDC counsel from 1994 to 1995; however, for a three-year period Michelle Anchors was the TDC attorney. He advised that he did return and was the attorney during the audit period. Mr. Hall stated it is a system bound to fail because it is dependent on integrity. He explained the first executive director was Darrel Jones and came to regard the BCC as his enemy. Mr. Jones created a system with as much authority as he could muster. Mr. Hall stated the system was built up around a single individual. He advised that Mr. Jones battled with the County Manager and the BCC on funds. Senator Bradley asked how money got spent in the Jones’ system. Mr. Hall said it