Okaloosa County BOCC — February 11, 2013 — reading text

days and months ahead. Mr. Amunds stated on May 15, 2012, which was the next meeting following disclosure of the misappropriation of funds and learning of the criminal activity which had taken place, the Board moved forward with emergency actions. He requested an opportunity to begin the PowerPoint presentation as this time. Senator Abruzzo granted permission. Mr. Amunds began to explain the changes which had been put into place regarding “Operating Procedures” when Senator Bradley requested clarification on who the Tourist Development Director reports to. He said it appears on the organizational chart that at one time the TDC director reported to the County Administrator but was changed to reporting to the BCC. Mr. Amunds answered the TDD director now reports to the County Administrator. Senator Bradley asked Mr. Amunds to explain his understanding of the role of the Clerk of Courts Office in pre-audit and review after payment. Mr. Amunds replied it is his understanding when an item comes from Marketing (advertising agency), it is directed to the Marketing Committee of the TDC. After review there, it is sent for review to the Tourist Development Council. He said once a recommendation is made by TDC, the Clerk’s Contracts and Grants Department reviews it and the item is then sent to the BCC representative. From there it is forwarded to the County Administrator and to the BCC for consideration. He said it then goes back to the Clerk’s Office for a final review before the check is cut. Mr. Amunds suggested Mr. Howard may be able to provide more details. Senator Bradley asked if the documents for the companies in question went to the Clerk’s Office for pre-audit before going February 11, 2013 -5- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 118  7.4.a to the Board and if it went back to the Clerk’s Office after BCC approval. Mr. Amunds replied that it is his understanding it is reviewed by Contracts and Grants to determine compliance with the contract and then it is sent to the county representative. He said it then goes to the County Administrator and back to the Clerk’s Office for final review. Senator Ring posed several questions regarding the changes in reporting authority for the Tourist Development Director. Mr. Amunds confirmed that originally the TDC Director reported to Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) the County Administrator but that changed for the director to report to the Chairman of the Board. Senator Ring asked Mr. Amunds if he was Chairman during this time period. Mr. Amunds replied the Chairman and Vice Chairman change each year and it depends on the particular date who the Chairman may have been. Senator Abruzzo inserted that Mr. Harris was Chairman of the Board for a major portion of the time and Mr. Harris is not present today. Senator Ring stated last week the Committee requested voluntary appearance but may need to consider the issuance of subpoenas. Senator Abruzzo stated that is definitely on his mind. Senator Ring asked Mr. Amunds if Mr. Bellinger reported to him at any time. Mr. Amunds replied he was Chairman in 2012 and Vice Chairman in 2010. Senator Ring posed a question on the level of oversight Mr. Amunds had during 2010. Mr. Amunds said if the Chairman was not present or out of town, then he stepped in as Vice Chairman. Senator Ring asked if Mr. Amunds reviewed documents before initialing them for approval. Mr. Amunds said he knew they had come through proper staff and legal. Representative Gaetz asked Mr. Amunds which individual told him to sign or initial payments to the marketing firms without the documents going before the full Board. Mr. Amunds responded, legal and Clerk’s Office. Representative Gaetz asked if by legal, Mr. Amunds meant the County Attorney, to which Mr. Amunds replied in the affirmative. Representative Gaetz asked if any part of the Corrective Action Plan involves changing the County Attorney. Mr. Amunds’ reply was that all positions and all staff are on the table. Upon commentary by Representative Gaetz about submission of the Corrective Action Plan, Mr. Amunds said the plan can be changed. At this point, Representative Gaetz asked why that consideration was not part of the original plan. Mr. Amunds replied the plan is a living document and will be changed to ensure the best interests of the county. When February 11, 2013 -6- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 119  7.4.a Representative Gaetz again asked if there is any reason not to change attorneys, Mr. Amunds replied, “No comment at this time.” Representative Gaetz referred to Audit Finding No. 12 (Approval of purchases) and a $49,500 expenditure for beach concerts. He said that should have been approved by a department head but was directly approved by an employee. Representative Gaetz asked if the name of that employee is known and if that employee still works for Okaloosa County. Mr. Amunds replied that he does not know who the employee was. When asked by the Representative if Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) the Corrective Action Plan will be altered to include dismissal of the employee when the name is learned, Mr. Amunds responded the Plan will be amended as we go forward. Senator Bradley said at the last meeting Commissioner Boyles referred to the ongoing criminal investigations. He asked if that is the reason the commissioners have sat at the dais and not asked for the individual who initialed that invoice to be fired. Senator Bradley remarked that it does not sound like Mr. Amunds is saying that will happen. Mr. Amunds replied his focus was on the audit and not to determine the fate of employees or attorneys. He added they must conduct interviews and go through the process. Senator Abruzzo asked why it took so long to ask for the resignations of the TDC members. Mr. Amunds replied the TDC members were not asked to resign until the conclusion of the audit. Mr. Abruzzo asked if Mr. Amunds knows why those individuals are not present today. Mr. Amunds answered perhaps they did not believe they had to be present since they had resigned. Senator Simpson asked if the purchase of the home went through the process, if the attorney signed off on that purchase, and was it processed like other purchases. Mr. Amunds stated it came through one of the marketing companies as a promotional activity (“Boast the Coast”) which would travel to 21 different cities. He said he did not know all the details but there were two marketing companies. He stated Mark Bellinger had communication with them outside of the Board process and arranged the purchase of the house with BP funds. Senator Simpson asked if it is possible the marketing firm did not know what they were doing. Mr. Amunds replied an employee of the marketing firm came to him and said they believed they had helped in the transaction of the house purchase. Upon inquiry February 11, 2013 -7- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 120  7.4.a by Senator Abruzzo, Mr. Amunds stated those two marketing companies no longer work for Okaloosa County. Senator Hays expressed his curiosity about what actions have been taken to recover the assets obtained through misuse of the funds. Mr. Amunds replied the county’s attorneys are preparing litigation strategy for recovery of the improperly used funds. He again said they did not want the civil process to begin until the criminal investigation was concluded. Mr. Amunds stated the county’s Special Counsel did make an appointment with the Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) marketing agency but he did not meet with them because of the letter from the Sheriff and State Attorney requesting the county not to conduct interviews. Mr. Amunds pointed out the BCC has outlined 7 steps in its corrective action plan. Senator Hays said there seems to be no overt effort on these strategies. Mr. Amunds replied they did work with the FBI on recovering the assets of the house. He explained the U.S. Marshalls Service did report a few weeks ago the house is under contract for sale, adding that he does not know if that sale has been completed nor does he know the dollar amount. Upon inquiry by Senator Hays about the yacht, Mr. Amunds said maintenance is being kept up on the boat and the Board issued a RFP for a company to sell it. That RFP was awarded and the Chairman and County Administrator were given authority to make the best deal possible. He said at this point only low-ball offers have been made. Senator Abruzzo said he wants to move back to the issue of the TDC members not being present today and why the position was taken that the appearance was not necessary since they had resigned. He posed questions on letters being sent to the TDC members asking for their resignations coinciding with the week they were asked to testify before the Committee. Senator Abruzzo asked if this was a deliberate attempt to keep them from coming to testify. Mr. Amunds answered, “No, not at all.” He said those individuals gathered from the content of the County Administrator’s letter they did not have to appear today. Mr. Amunds also noted that he spoke with them and told them it was his belief they did not have to appear based on his interpretation they were no longer on the Tourist Development Council. Senator Abruzzo stated it looks extremely disingenuous. Representative Harrell shared Senator Abruzzo’s concern. She asked where we are in the process and how many have been indicted. Mr. Amunds replied that no one has been February 11, 2013 -8- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 121  7.4.a indicted. Representative Harrell asked how many people have been fired. Mr. Amunds said he would have to ask the County Administrator the answer to that question. County Administrator Jim Curry came forward and was sworn in by Senator Abruzzo. Representative Harrell repeated her question as to how many have been fired. Mr. Curry responded there have been no terminations at this point. The Representative followed up with a question about how many individuals were under investigation. Mr. Curry stated all aspects of this issue have Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) been examined since Day 1, more than eight months ago. He reported investigations have been conducted by the FDLE, Auditor General, State Attorney, and the Okaloosa Sheriff’s Office. Mr. Curry said the county’s primary objective was to cooperate fully and to make all employees available during the criminal investigation. Mr. Curry stated the county wanted to make sure the Auditor General process was completed and flaws were identified. At last Tuesday’s