Okaloosa County BOCC — May 17, 2013 — reading text

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 Packet Pg. 57  5.1.a 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. Attachment: March 4 Special (1657 : Approval of Minutes) 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 is the system described in the AGO report. He said the TDC was assigned a variety of large responsibilities but never charged with oversight of looking at the checkbook register and seeing how funds were spent. Mr. Hall stated the emphasis was on the big picture. There was an extended exchange of questions and answers. Senator Bradley asked if he knew the BCC was not approving the recommendations. Mr. Hall replied that he did not expect them to act on individual allocations. Senator Bradley stated the TDC members just testified they were providing recommendations but Mr. Hall said he did not expect the BCC to approve them. Mr. Hall explained there was a large allocation of money for special events. The process which was set up at the TDC level was to vet through the Marketing Committee then to the TDC. He did not expect those allocations to go back to the BCC. March 4, 2013 -10- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 58  5.1.a Senator Bradley asked if there is a misunderstanding on the part of the council members. Mr. Hall replied there are two separate processes, saying the money resulting from the oil spill was not part of the tourist development tax revenues. The funding mechanism for the tourist development dollars has a narrative for use of each penny by line item in the county budget. This was pursuant to county ordinance and the TDC Plan. Senator Bradley requested clarification on the timeline and asked if the county administrator has been the same person. Mr. Hall replied in the negative that the first administrator (county manager) was Chris Holley. Upon inquiry by Senator Hays, Mr. Hall stated prior to Mr. Attachment: March 4 Special (1657 : Approval of Minutes) Bellinger’s hiring, the Board had moved reporting responsibility for the director from the County Manager to the Chairman of the BCC. Senator Hays asked if Mark Bellinger ever declared the minutes were not to be recorded. Mr. Hall responded that Mr. Bellinger did make that decision. Continuing, Mr. Hall commented he was the contract counsel for the director, the tourist development department and the TDC Chairman. He advised that Mr. Bellinger did not like him, stopped talking to him and stopped inviting him to meetings. Upon further inquiry by Senator Hays, Mr. Hall stated he was not involved in the contracts with the advertising agencies. Upon inquiry by Representative Gaetz, Mr. Hall stated he did not review the advertising agency contracts. When asked for more information, Mr. Hall said generally contracts are handled by the Purchasing Department with advice from the County Attorney. Ms. Ellen Wingard, Vice President of Lewis Communications, was asked to come forward and was sworn in. Ms. Wingard stated Mark Bellinger asked the firm to work on a “Boast the Coast Campaign” which would tour many cities. She was told by Bellinger that he was not certain if Lewis Communications or the Zimmerman Agency would get to handle campaign. Ms. Wingard said they invoiced him according to procedures with a payment approval form. She confirmed they received the funds and began working on the project. However, Ms. Wingard stated Bellinger asked for the money for this campaign to be wired back to a Regions Bank account. He said he needed to allocate those funds to an escrow account. Ms. Wingard stated they continued to work on the project through August but never got the business and were not paid for their work. She advised they willingly talked with the Sheriff’s Office and the FBI. March 4, 2013 -11- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 59  5.1.a When Senator Hays asked about their contract, Ms. Wingard said they had a contract with the county but it was not fee-based, saying they estimated costs in advance. She stated the client would then sign off and when approved, they would send an invoice in with the payment approval form. Representative Raulerson asked about the wire transfer to the account at the Regions Bank and asked if anyone vetted whose account it was. Ms. Wingard replied, “No, we did not.” Representative Raulerson again asked about Lewis Communications wiring $747,000 back to a bank account without verifying ownership of that account. Upon further inquiry by the Representative, Ms. Wingard stated the individuals who had the Attachment: March 4 Special (1657 : Approval of Minutes) authority to make the wire transfer were herself and Lewis Communications President Larry Norris. Representative Raulerson asked what happened once the money got to Regions Bank. Ms. Wingard stated she did not know. She stated once it came out about the boat, Bellinger sent out an email to several people in their business. There was an article about the house purchase in the newspaper and the next morning after the article appeared, one of the media buyers saw the amount for the house was the same amount they had wired. She said after they researched this, they called the Emerald Coast Convention Center and the Okaloosa County Sheriff’s Office. Representative Broxson asked Ms. Wingard didn’t she think it was unusual just to send the money to a bank account without checking it out. He said there appears to be no checks and balances to see if that was a proper account. Ms. Wingard replied Mr. Bellinger was their client and it was the county’s money. Representative Stafford asked if they had ever conducted business like that before with Mr. Bellinger to which Ms. Wingard replied “no.” Mr. Curtis Zimmerman and Mr. Richard Long of the Zimmerman Agency were sworn in. Mr. Zimmerman stated the Zimmerman Agency has represented the TDC for 21 years. He felt there was considerable accountability for the first 19 years but things began to change when Mark Bellinger became the director. Mr. Zimmerman said TDC Director Darrel Jones was always concerned about accountability. He stated Mr. Bellinger did not require or desire their help with the budget. Before Mr. Bellinger, he said either he or Mr. Long attended the majority of the TDC March 4, 2013 -12- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 60  5.1.a meetings and the Marketing Committee meetings but they were no longer invited to attend because they asked too many questions. Mr. Zimmerman called Mark Bellinger a steamroller and said he wanted things done his way. Senator Bradley referred to a very detailed invoice of $251,262. He asked for an explanation of how the company purchased a $48,000 Porsche. Mr. Long answered that it started with an email from Mark Bellinger on August 7, 2010 in which he spoke about a prize for a viral marketing campaign and would fill in the details in a phone call later. During the telephone call, Mr. Bellinger said he had a great deal on a Porsche from a friend in New England. Mr. Long said Mr. Bellinger directed the purchase be billed back to the county and told them what to put Attachment: March 4 Special (1657 : Approval of Minutes) on the invoice. He stated the advertising agency developed a promotion around giving away the Porsche. Upon inquiry by Senator Bradley, Mr. Long stated Zimmerman paid the dealer and then billed the county for the purchase. Senator Bradley stated Zimmerman acted as a bank for the county, asking if that is correct. Mr. Zimmerman replied they do that for most of their clients. He stated in Okaloosa County they typically would pay and get a reimbursement. Mr. Zimmerman added that for 19 years they followed procedures. Both Senator Abruzzo and Senator Bradley questioned