Fort Walton Beach Council minutes — 06-23-09 special minutes — reading text

221 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA JUNE 239 2009 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, June 23, 2009 at 5:00 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes; Virgil Miller; Bill Garvie, Bobby Nabors; Bill Patterson; and Dick Rynearson Absent: Dennis Reeves Also Present: Robert Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; and Department Directors. PURPOSE The purpose of this meeting is to review and accept the Golf Course Audit. CALL TO ORDER The Mayor called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, and then state his or her name and address for the record. PLEDGE The Mayor led in the Pledge of Allegiance. INTRODUCTION The Mayor introduced David Trimm, the new Business Manager of the Golf Course. BACKGROUND INFORMATION The City Manager presented Council with some background information that led to the audit of the golf course operations. He advised that shortly after arriving at the City and reviewing the various weekly Staff reports, he noticed the large amount of complimentary rounds of golf played by golf course employees, and learned that Resolution 97 -30 allows the golf course administrator to give complimentary and marketing rounds. The City Manager informed he spoke with the Golf Course Administrator and asked the Finance Director to look into the issue, who recommended in an April memo that an independent audit of the golf course operations be done to assist in evaluating internal controls and to determine if there is any misuse of the employee /marshal benefit as outlined in Resolution 97 -30. The purpose of the audit was to be informative regarding any improvement needed of golf course management, operations, or financial controls. REVIEW OF GOLF COURSE AUDIT Angela Balent with the auditing firm O' Sullivan Creel clarified that the report is not an actual financial audit but rather a consulting engagement report to study whether there was a disparity in rounds played vs. rounds paid as well as the operating losses of the Golf Club the past several years. She explained that provisions in Resolution 97 -30 provide for the authority of the Golf Club Administrator to waive fees for school golf team play on official practice and match days, to establish fees for current full and part-time Golf Club employees, and to grant promotional fee waivers. Ms. Balent presented a summary of recommendations both operational and financial in nature that was a result of their findings.  6 -23 -09 222 Special Council meeting REVIEW OF GOLF COURSE AUDIT (CONT) The findings and recommendations include: 1) From January 2006 to February 2009, over half of the employee comp and marshal rounds were played during the hours of 6 am to 10 am, which is a desirable time period for golfers. It is recommended City management reevaluate the current privileges provided to Golf Club employees and volunteer marshals under Resolution 97 -30 and the Volunteer Marshal Program. 2) No administrative policy has ever been formally established for compensated rounds for Golf Club employees and marshals. It is recommended the implementation of the administrative policy in conjunction with the reevaluation of privileges to those employees and volunteers. 3) The no fee marketing /promotional rounds recorded in the Club's point of sale system have increased between 2006 and 2008, and the increase does not appear to be increasing total rounds played. It is recommended Golf Club management monitor the use and impact of promotional fee waivers to ensure the objectives of the policy with respect to Club promotion are balanced with the financial objectives of the Club operation. 4) Golf Club employees and volunteer marshals are set up as members in the membership database in order to track their play by the Golf Club Administrative Coordinator who does not have rights to change fees charged for particular types of play, as that responsibility rests with the City's IT Division. It is recommended the maintenance of the membership database rest within the City's IT Division. 5) From January 2006 to January 2009, $ 77,000 of manual adjustments not representing the posting of cash receipts have been made to the membership database and written support for these adjustments is not maintained. It is recommended manual adjustments to extend membership privileges as provided in Resolution 97 -30, be initiated at the Golf Club with proper documentation and approval and forward to the Finance Division for processing. 6) Support for voided transactions is not consistently maintained as required by Golf Club policies. It is recommended all voided transaction support should be provided and approved to comply with City policy. 7) Cashiers at the Golf Club can currently record member play in the point of sale system using a last name rather than a number, not allowing the point of sale system to It is recommended management adequately track rounds by membership category. monitor weekly point of sale reports that identify codes used and ensure temporary member numbers established are for valid membership applications in process. 8) Of the 90 voluntary marshals established in the point of sale system, 17 do not have approved marshal agreements on file. It is recommended all marshals have an approved agreement prior to service and prior to establishment in the point of sale system. 9) Based on observation of auditing staff at the Golf Club, the starter was receiving receipts for play at the cashier counter and not at the first hole. The purpose of the starter is to monitor play on the course to ensure all players have a receipt, and being located in the cashier building does not prohibit someone from walking onto the course and playing without payment. It is recommended the starter accept receipts only at the first green. At the conclusion of Ms. Balent's presentation, the Mayor opened the public hearing. Jim Frazier, 207 McArthur Avenue NE, Fort Walton Beach and former Golf Club Administrator, explained that the marketing and promotional rounds included school system programs and free coupon booklets that contained coupons for the golf course; that documentation was kept and available in the administration office areas of the Golf Club; that school team play was documented in the point of sale system by school and number played and is also available; explained that employees leave and are often hired back under a different employee number but it is the same employee. Special Council meeting 6 -23 -09 5> 23 REVIEW OF GOLF COURSE AUDIT (CONT) Mr. Frazier said that voided transactions were always sent to the City's Finance Department with documentation and signed by the customer; that there are 28 marshals and 26 substitute marshals to man the course and they do not play until they have completed their work; and explained the purpose of the starter is to get people onto the course and it is the job of the marshal to check receipts on a periodic basis. In conclusion, Mr. Frazier invited the City Manager and each member of Council to take a tour of the golf course to see how the condition has changed in 30 days. Jim Hendricks, 846 Tropic Avenue, is the Marshal Coordinator for the past three years and clarified that there are 28 regular and 26 substitute marshals and he has all of their applications and the Marshal program is under control, and he discussed the importance of the Marshal program. As there was no one else who wished to speak, the public hearing was closed. Due to the time constraint, the Finance Director advised her responses to the recommendations are in the Staff Report and she would answer any questions that Council may have. The City Manager advised that operational policies for the golf course are being developed between Ms. Wunker, Mr. Peters and Mr. Trimm and should be in effect by August. The City Manager further advised that during the budget workshops in August the fee schedule and adjustment to the golf course fees will be discussed, and Resolution 97- 30 will be revisited. The Finance Director advised that signs are posted that the non -dated " free play cards" will continued to be honored until July 31, 2009. ADJOURNMENT As there was no further business, the meeting adjourned at 5: 57 pm. APPROVED: MAYOR: bc'& ATTEST: 9161-ti CITY CLERK Ive