Okaloosa County BOCC — May 17, 2013 — reading text

the invoice as to why it did not mention the Porsche and why it was done that way. Mr. Long answered those were the instructions from Mr. Bellinger. Questioning continued on this subject. Mr. Zimmerman said he (Bellinger) already had made the purchase in advance but later said Bellinger had negotiated the purchase in advance. Mr. Zimmerman stated they told him it was the wrong vehicle and a bad idea. When asked by Senator Bradley why the Zimmerman Agency didn’t talk with anyone about this, Mr. Zimmerman said they had no relationship with the county and always dealt with the executive director. Mr. Zimmerman said Mr. Bellinger told them he had talked with the BCC Chairman and he agreed with the firm. He stated that is when the idea of the van was introduced as a prize for a Mother’s Day promotion and termed the promotion a success. Mr. Zimmerman stated Mr. Bellinger said he would return the Porsche. Upon inquiry by Senator Bradley about an approval form for the Porsche purchase, Mr. Long said it was an internal form and he does not think anyone in the county saw it. Upon inquiry by Representative Gaetz, Mr. Zimmerman stated it is not customary for the client to dictate to the agency but Mr. Bellinger would email instructions on how to fill out the March 4, 2013 -13- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 61  5.1.a paperwork. Mr. Zimmerman also said Mr. Bellinger said he was going to take the item to the County Administrator and the BCC. Representative Gaetz stated the Zimmerman Agency made a great deal of money with the county and questioned having only one contact, which was Mark Bellinger. He felt this was an issue of client management and doing whatever it took. Representative Roberson asked the Zimmerman representatives about their involvement in the purchase of the yacht. He said the invoice for that purchase reflects a national advertised campaign for $710,000 but he does not see anything on the invoice about a yacht. Zimmerman said when the idea first came up, Mark Bellinger wanted it as a promotion to give away vacations. He stated they thought the idea had been shelved but Attachment: March 4 Special (1657 : Approval of Minutes) subsequently he saw a local talk show where Bellinger talked about buying a yacht and moved forward with it. Mr. Long stated the yacht idea had been talked about for a while then disappeared and he thought it was dead. They got a call from Bellinger in December 2010 and moved forward with the yacht. He said similar to the Porsche purchase, Bellinger worked on the purchase with Legendary and detailed how the invoice should be prepared. Mr. Long stated Zimmerman billed the county and when they received payment, they forwarded payment to Legendary for the yacht. Senator Hays requested clarification on an earlier reference to the purchase of a van. Mr. Zimmerman stated it was a SUV. He said they felt the SUV was a more appropriate vehicle for the market (soccer moms). He pointed out the agency suggested to Bellinger that the vehicle should be purchased from a local dealership. Mr. Zimmerman said a woman from Dallas won the SUV. Upon inquiry by Representative Ray, Mr. Zimmerman stated the title for the Porsche was in Bellinger’s name and he traded it for a Subaru. Clerk of Courts Don Howard was called forward and sworn in. Mr. Howard stated he does not have a prepared statement. He noted that he has been present for all three meetings and is available to answer any questions. Upon inquiry by Senator Bradley, Mr. Howard stated his office is responsible for cutting checks and the same process has been in place since prior to Mr. Bellinger’s employment with the county. Upon further inquiry by the Senator, Mr. Howard said the only March 4, 2013 -14- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 62  5.1.a procedural change came in 2005 when the TDC Director stopped reporting to the County Administrator and began reporting directly to the Board Chairman. Mr. Howard stated the Tourist Development Department is very unique and deals with large sums of money. He said there was nothing on the invoices to indicate an improper purchase. Mr. Howard noted the executive director had total control, dealt with the vendors and assured the Clerk’s Office the supporting documents were maintained by the TDC department. Senator Abruzzo asked Commissioner Amunds, Commissioner Harris, and Commissioner Parisot to come forward. He swore in each one individually. Attachment: March 4 Special (1657 : Approval of Minutes) Mr. Amunds said at the last Committee meeting, he was asked if anyone on the BCC had spoken with the TDC members to prevent them from coming to Tallahassee. He reported his answer was no. The issue of asking for TDC member resignations was not an agenda item but it was discussed and voted on by the Board. Mr. Amunds stated he asked TDD Director Daniel O’Byrne to speak with the members to tell them about the Board’s action. He said on Thursday afternoon he spoke with each one except Mr. Gourley about receiving paperwork for resigning from his staff. Mr. Amunds stated he told each TDC member he realizes he/she had “busted your butt.” He advised resignations were received from everyone except Mr. Gourley. Mr. Amunds said he told them maybe the resignations would keep them from getting dragged through the mud. Senator Abruzzo stated because time is running short, he does not want to get into a question and answer period on this issue. Mr. Amunds stated he does not want to be falsely accused. Senator Abruzzo replied the record will speak for itself and held up a transcript of the prior meeting. Mr. Parisot said he has a 20-minute PowerPoint presentation but he will cut it down to five minutes. His report was entitled “A Commissioner’s Viewpoint.” Mr. Parisot detailed what he had learned about the debit card program, the Porsche and the Subaru purchases. Senator Abruzzo gave him one more minute for comments. Mr. Parisot said Mark Bellinger learned the weaknesses in the county’s system, told lies, and put false information on invoices. Mr. Harris announced he has taken three oaths and taken them seriously—oath to the U.S. Air Force, oath to his wife, and the March 4, 2013 -15- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 63  5.1.a oath as a county commissioner. He stated at the last Committee meeting, the Committee voted for the Auditor General’s Office to conduct operational audits for the county and the Clerk of Court. Mr. Harris stated many citizens are looking forward to the AG’s visit because they believe it will provide vindication. He requested the Committee expand the audit to all Constitutional Offices. Mr. Dowd was called forward and sworn in by Senator Abruzzo. Upon inquiry by Representative Gaetz, Mr. Dowd stated he did review the contracts (advertising agencies). Representative Gaetz asked him what responsibility he thought he had in this. Mr. Dowd remarked that he does not agree with the AGO report which said the contracts subjected Okaloosa County to unlimited Attachment: March 4 Special (1657 : Approval of Minutes) liability and he felt there were provisions of the contracts which were overlooked by the AGO. He said the provisions calls for both parties of the contract to comply with all state laws and regulations and requires any items to be purchased to go through the local county purchasing rules. Representative Gaetz asked where the breakdown was and why are we here. Mr. Dowd stated Mark Bellinger made purchases which were not authorized by the BCC. He advised that he spoke with Special Counsel (Greg Stewart) and the County Administrator (Jim Curry) about the mistakes which had been made. Mr. Dowd said “The man stole from us.” He added, we must accept the facts and correct the mistakes. Representative Gaetz referred to Finding #8 and posed questions to Mr. Dowd. Mr. Dowd said he does not agree with the county’s response to the AGO report and pointed out the response was prepared by Greg Stewart. Mr. Derek Lott, 2011-12 President of the Crestview Area Chamber of Commerce, referred to a finding and a contribution to a Crestview activity. He stated that 80% of the people traveling to Destin come through Crestview. Mr. Lott referred to a local TV program and breakfast meeting in which Mr. Bellinger said the TDC team had money to spend. He agreed to give $25,000 for marketing an event. Mr. Lott reported a huge influx, estimating an increase in the Triple B event from 8,000 the previous year to 11,000 or 12,000. He noted the Sheriff took statements about this expenditure. Mr. Steven Menchel stated he is a retired federal agent. He said the purpose of an investigation is to find out if someone March 4, 2013 -16- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 64  5.1.a is guilty or to disprove the complaint. Mr. Menchel spoke of the public outcry being very significant. He said there have been a host of scandals and suggested there have been questionable expenditures by the Sheriff. Senator Abruzzo told Mr. Menchel he has 30 seconds and asked if he has any comments about the TDC issue. Mr. Menchel asked for the audit to be expanded to the Sheriff’s Office. Senator Abruzzo assured those in attendance there was no political motivation behind these meetings. He said there was a catastrophic failure, pointing out a senior AGO official said it was as bad as he has seen anywhere. Senator Abruzzo stated the funds must be spent in compliance with the laws. He spoke of the use of funds for private gain and the negative impact it has Attachment: March 4 Special (1657 : Approval of Minutes) cast. Senator Abruzzo remarked the citizens have lost confidence, individuals must be accountable, and this must be turned around. He said he hopes when the AGO reports back in 18 months all 25 findings have been corrected and there are no new findings. Senator Abruzzo also commented that he hopes all other counties are paying close attention, saying they have received reports of control issues in other counties. Senator Abruzzo thanked those in attendance, saying some have made the trip two or three times. ADJOURNMENT This portion of the Senate Committee regarding Okaloosa County was completed at 1:05 p.m. CST. _____________________________ _______________________________ DON W. HOWARD DON R. AMUNDS, CHAIRMAN CLERK OF CIRCUIT COURT BOARD OF COUNTY COMMISSIONERS (These minutes were transcribed by Teresa Ward.) March 4, 2013 -17- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 65  5.1.b March 5, 2013 Regular Tuesday Meeting The Regular Tuesday meeting of