Okaloosa County BOCC — February 11, 2013 — reading text

meeting of the BCC, the Board did request the resignation of the TDC members and the TDC Attorney. Upon inquiry by Representative Harrell, Mr. Curry advised there may be terminations. Representative Harrell said it appears there has been no action whatsoever at the administrative level or comprehensive policy level to rectify this issue except resignation of TDC members and TDC attorney. Mr. Curry replied many changes have been implemented with regard to policies and procedures. He reiterated the number one focus was to cooperate fully with law enforcement. Representative Harrell asked if any changes have been made to increase the level of supervision of the individuals involved. Mr. Curry responded the former Tourist Development Council Director committed fraud on Okaloosa County. The Representative asked how this could have happened and what was the major failure. Mr. Curry replied there was a catastrophic failure of control across the board, at all levels. Senator Ring said he understands the contracts with the two marketing agencies have been terminated but the county attorney’s contract has not. Upon inquiry by the Senator, Mr. Curry answered the County Attorney is a full-time employee of the county. Senator Ring asked how much money has been spent on legal fees and how much is budgeted for the future. Mr. Curry said, “not much,” adding the commissioners who have sought legal counsel is a private matter. With regard to the costs February 11, 2013 -9- Minute Book 68, Page Okaloosa County Board of County Commissioners Packet Pg. 122  7.4.a associated with private counsel from the Nabors, Giblin & Nickerson law firm, Senator Abruzzo asked if these costs can be supplied. Senator Ring asked Representative Gaetz to comment on the attitude of the citizens back home on this issue. Representative Gaetz replied the outrage in the community exceeds the outrage of this Committee. He said the people he has spoken with are trying to decide whether this is an act of incompetence or criminal culpability. Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) Upon inquiry by Representative Rodrigues, Mr. Curry stated Mr. Dowd is still the County Attorney. Representative Rodrigues said in 2010 an issue of possible conflict of interest arose regarding a county commissioner who is also Chairman of a Chamber of Commerce and he understands the County Attorney advised there was no conflict of interest. He asked if the County Attorney still stands by that position. Mr. Curry said the Representative will have to ask the County Attorney that question. Upon inquiry by Representative Rodrigues, Mr. Curry stated the TDC members were asked to resign at the Commission’s last meeting on February 5. Representative Rodrigues said at that same meeting on February 5, the BCC discussed formation of the RESTORE Act 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 Packet Pg. 123  7.4.a 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 Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) 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 Packet Pg. 124  7.4.a 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 Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) 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 Packet Pg. 125  7.4.a 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. Attachment: February 11 Special Meeting Tallahassee (1604 : Approval of Minutes) 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