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Steckler Antonacci - JCD WPB Golf - No Bid

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    Monday, April 30, 2012

    Palm Beach County Office of Inspector Generalc/o Inspector General Sheryl StecklerDirector of Investigations Donald BalberchakP.O. Box 16568West Palm Beach, FL 33416

    CC: 15th Judicial Circuit State Attorneyc/o State Attorney Peter AntonacciAssistant State Attorney Paul ZacksChief Inspector Mike Waites401 North Dixie HighwayWest Palm Beach, Florida 33401

    Timothy "Chaz" StevensPO Box 1123Deerfield Beach, FL 33443

    RE: Complaint against the City of West Palm Beach

    Executive Summary: Illegal Two (2) Years Non-Compete Contract Award of $153,000 to JCDManagement by West Palm Beach City Commissioners and Golf Commissioner Sharon Painter

    Dear Madam and Sirs;

    The City of West Palm Beach issued RFP 031/04-119 for Golf Course Management in June2004. On October 4, 2004 the City awarded the contract to JCD Management from October 1,2004-September 30, 2008; with the option to renew for three (3) years; which was approvedfrom October 1, 2008-September 30, 2011.

    The City Commissioners, City Attorneys and Golf Commissioner Sharon Painter, conspired toviolate the Citys Procurement Policy and F.S. 287.057 (13); by extending JCD Managementcontract from June 10, 2011-September 2013, which legally was to expire September 30,2011.

    F.S. 287.057 (13) prohibits a contract extension beyond six (6) months. The extension

    approved by the elected body on June 10, 2011 is for two (2) years, three (3) months

    and twenty (20) days.

    F.S. 838.22(2) Criminal BID Tampering- Prohibits the circumventing of competitive

    procurement by public employees, appointees and elected official to award a sole

    source contract for the financial gains of others.

    The no-bid contract award to JCD Management of $153,000 violates the Citys ProcurementPolicy; the Citys policy requires all awards from $25,000 and above to be competitively bid.

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    Page 2

    The Citys rationale is that JCD voluntarily reduced their annual award by fifteen (15%) percent:from $176, 500 to $153,000.

    So what?

    Mayor Jeri Muio, Attorney Claudia McKenna, City Administrator Ed Mitchell, ElectedOfficials, and Painter had no way of knowing, that if they adhere to the Citys procurementpolicy and F.S. 287.057, that a competitor of JCD Management would not have offered anannual rate lower than JCDs fifteen (15%) percent reduction; which was negotiated outside ofthe sunshine and violates F.S. 286.011.

    The City also failed to publicly notice the negotiations, and record negotiation minutes asrequired in F.S. 286.011. The conspiracy circumvented the competitive bid process, andcriminally violates

    Please review all emails to and from JCD Management, Painter, Deputy City Attorney Nancy D.Urbeck, City Attorney Claudia McKenna, Commissioners (James, Moss, Moffet, Mitchell,Robinson), City Administrator Ed Mitchell, Purchasing Director and Mayor Jerri Muoio.

    Given this, I respectfully request the Palm Beach County State Attorneys Office thoroughlyinvestigates this allegation and to the extent permitted by State or local law or regulations, anyand all penalties, sanctions, or other disciplinary actions for violations of such standards beapplied forthwith.

    I stand ready to assist.

    Happy hunting;

    Timothy Chaz Stevens818-468-5433

    Enclosures: (2)

    I. Memo from Nancy D. Urcheck re: JCD Golf Reduction and RenewalII. Amendment to Golf Course Management Agreement

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    MEMOOFFICE O F T H E CITY ATTORNEY

    To: Jeri Muoio, MayorFrom: Nancy D. Urcheck, Deputy City Att

    June U ) . 201100510 .002

    Date:Matter No:Dept.Re: JC D Golf; Golf Course Mgmt; A md X ; Reduction & RenewalTransmitted herewith are original documents which have been reviewed and approved fo r legalsufficiency. Kindly forward th e documents, along with this memo, to the City Clerk's Office.

    T h e Mayor is authorized to execute th e document in accordance with:Procurement Code. Procurement certification is attached.X Commission Approval. Resolution No. 81-11

    T he document termination date is*: September 30, 2013* Note: If this is a work authorization, th e termination date of the master agreement m ay differ.

    Please take th e actions indicated below with respect to these documents:Y Attest to the execution of the Agreement by the Mayor.Y Insert th e date of execution beneath th e Mayor's signature (if not already dated).

    Please retain one original as a public record and forward th e other original to :

    To: Office of the City Clerk

    Nancy D. Urcheck. Deputy City Attorneyndu

    Li 0 1 L jy C I NflP wH 0 A V H 3 H 1 J O 3 0 I J J 0

    H 0 V 3 9 W l V d 1 S 3 M

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    Contract Name: flours U f l u w j j e m o n - l f j o j r i e m - e ^ -Contract Date: S p j P j - A m f o & r

    AMENDMENT NO. X CONTRACT REDUCTION & EXTENSIONContract No. O P S I D D f ^ 2 -

    THIS AMENDMENT No.X ("Amendment") is entered into by and between th e CITY O F WEST PALM BEACH("City") and _ j Y " b ("Contractor").

    WHEREAS, by Resolution No. 81-11, th e City Commission authorized th e Contract Reduction & ExtensionProgram which allows th e extension o f certain qualifying contracts in consideration for the reduction in prices and fees;and

    WHEREAS, th e Contractor/Consultant/Provider desire to participate in the Contract Reduction & ExtensionProgram, and in consideration of the foregoing recitals and consideration, th e parties desire to renew th e contract andhereby agree as follows:1. Term. T h e term of the Contract is hereby renewed for an additional year period ("Program RenewalTerm" ), expiring S t f A f y n h e r 3 0 , 3 0 / R .2. Reduction of Fees & Prices, (mark as appropriate)

    T h e prices/fees established in the above-referenced Contract shall be reduced by ten percent (10%)and the Contract term will b e extended by one (1) year.T h e prices/fees established in the above-referenced Contract shall be reduced by fifteen percent (15%)and the Contract term will b e extended by two (2) years.

    A revised fee/price schedule indicating th e agreed price reduction is attached as Exhibit A.3. Estimated Expenditures/ Availability of Funds. T he anticipated value of the Contract fo r this Term shall no texceed th e total sum of $ OOP &r M Ho.StonM G.Q rJi T h e City reserves th e right to increase ordecrease th e anticipated value as necessary to meet actual reti rem ent s. It is understood a n d agreed that th e City'sobligation to pay under this Amendment is contingent upon an annual appropriation for its purposes by the CityCommission.4. Effect of Amendment. Except to the extent th e Contract is modified by this Amendment, th e terms andprovisions of the Contract shall remain unmodified and in full force an d effect. In the event of a conflict between th eterms of the Contract, as may be previously amended and the terms o f this Amendme nt, th e terms of this Amendmentshall govern and prevail.Contractor/Consultant/Provider CITY O F WEST PALM BEACH

    r \ c ., \*J!hv;Print Name: S h a r o n 7 i U r r l i rTitle: T h ^ v k n - f - i d t p

    yuMiu. thujioAttest:

    CITY ATTORNEY'S OFFICEAppr ove d^s ^o^r m^an d legal sufficiency

    Geraldine Muoio, Mayor

    Contract Renewal Form / Contract Reduction & Extension Program032211

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    AMENDMENT TOGOLF COURSE MANAGEMENT AGREEMENT

    Contract No. 00510.001Resolution No. G O5-o8

    THIS AMENDMENT TO GOLF COURSE MANAGEMENT AGREEMENT ("Amendment") isentered into by and between the WEST PALM BEACH GOLF COMMISSION, (hereinafter referredto as "Commission") and JCD GOLF, INC., a Florida corporation (the "Manager").

    RECITALSWHEREAS, by Resolution No. G 04-04, the Golf Commission approved the Golf Course

    Management Agreement with JCD Golf, Inc., dated September 30, 2004 (the "Agreement"); andWHEREAS, the term of the Agreement was for four years, through September 30, 2008, with

    an option to renew for a term of three (3) additional years; and

    WHEREAS, JCD Golf, Inc., has rendered its services in a satisfactory manner; andWHEREAS, the renovation of the West Palm Beach Municipal Golf Course is scheduled to

    occur during 2009; andWHEREAS, JCD Golfs operational knowledge of the Golf Course will be instrumental in

    ensuring functional renovations; andWHEREAS, the Golf Course Advisory Committee has recommended that the Agreement

    with JCD Golf be renewed for the additional term; andWHEREAS, the West Palm Beach Golf Commission desires to enter into an Amendment to

    extend the term of the Agreement for three additional years;AGREEMENT

    In consideration of the foregoing recitals, the mutual covenants contained herein, and forother good and valuable consideration, the receipt and sufficiency of which are herebyacknowledged, the Commission and Manager hereby agree as follows:1. Recitals. Commission and Manager hereby acknowledge and agree that the recitals setforth in this Amendment are true and correct in their entirety.2. Agreement. All references to "Agreement" shall mean the terms and conditions contained inthe Golf Course Management Agreement with JCD Golf, Inc., dated September 30, 2004 (the"Agreement"); and3. Term. Article 4 of the Agreement is hereby amended to extend the term of the Agreementfor three additional years, in accordance with Section 4.2, through September 30, 2011.4. Scope of Services. Article 6 of the Agreement is hereby amended to increase the scope ofservices to include: assistance in oversight and project management of the golf course renovationGolf Course Management - Amd.JCD Golf080608

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    project.5. Compensation and Fees. Section 7.1 of the Agreement is hereby amended to provide thatthe Golf Commission shall compensate manager for Services performed during the term of thisAmendment, on a monthly basis, payable of the first of each month, in the following amounts:

    October 1, 2008 - April 30, 2009 $7,083 per month ($85,000 per year)May 1, 2009 - September 30, 2009 $9,083 per month (increase for projectmanagement assistance)October 1, 2009 - September 30, 2010 $7,292 per month ($87,500 per year)October 1, 2010 - September 30, 2011 $7,500 per month ($90,000 per year)

    6. Effect of Amendment. Except to the extent the Agreement is modified by this Amendment,the terms and provisions of the Agreement shall remain unmodified and in full force and effect.8. Construction. In the event of a conflict between the terms of the Agreement and the termsof this Amendment, the terms of this Amendment shall govern and prevail.

    IN WITNESS WHEREOF, Commission and Manager have executed this Amendment.

    WEST PALM BEACH GOLF COMMISSIONATTEST:

    City Clerk

    Lois J. Frankel, Presiding Officer

    Dated: , 2008

    CITY ATTORNEY'S OFFICEApproved as tp form and legal sufficiencyB y:Date: K2/-D

    Print Name:Title:

    MANAGER:JCD GOLF, INC.

    B y: Gr,x, ^'wwr4ron /[)atig ^er

    CEO

    Golf Course Management - Amd.JCD Golf 2080608

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    Client#: 231496 JCDGOLACORD,. CERTIFICATE OF LIABILITY INSURANCE 1 D A T E ( M M / D / VYYY)0/06/08

    PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATIONWachovia Insurance Services ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE1555 Palm Beach Lakes Blvd #1200 HOLDER. THIS CERTIFICATE DOES NOT AM END, EXTEND ORALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.West Palm Beach, FL 33401888 909-7410 INSURERS AFFORDING COVERAGE NAIC #INSURED INSURERA ZurichAmericanInsurance Company 16535JCD Golf, Inc. INSURER e'. Tudor Insurance CompanyWest Palm Beach Country Club INSURER C.1300 Park of Commerce, Suite 272 INSURER D:Delray Beach, FL 33445 INSURER E'COVERAGES

    THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDINGANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR 01 HER UOCUMEN f WITH RESPECT TO WHICH THIS CFRTIFICATE MAY HE ISSUED ORMAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDI I IONS OF SUCHPOLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

    INSRLTR D'NSR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE_DATE MMIDD/YY POLICY EXPIRATIONDATE MM/DD Y LIMITSA GENERAL LIABILITY CP0288087403 10/01/07 10/01/08 E A C H O C C U R R E N C F S1 000 000

    X COMMERCIAL GENERAL LIABILITY PAMAGE TU RLNIED S1,000,000CLAIMS MADE a OCCUR MED FXP (Any one person) s5,000

    PERSONAL & ADV INJURY $1 , 00 0 ,000GENERAL AGGREGATE s2 ,000000

    GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG s2 , 000000POLICY PRO LOCJECT

    A AUTOMOBILE LIABILITY CP0288087403 10/01/07 10/01/08 COMBINED SINGLE LIMIT(Ea accident) $1,000,000ANY AUTOALL OWNED AUTOS BODILY INJURYSCHEDULED AUTOS (Per )erson)

    $

    X HIRED AUTOS BODII Y INJURYX NON-OWNED AUTOS (Peraccident)

    PROPERTY DAMAGE(Per acondent) $

    GARAGE LIABILITY AU 1 O ONLY - FA ACCIDENT SANY AUTO OTHER 1 HAN EA ACC $

    AUTO ONLY AGG SEXCESSfUMBRELLA LIABILITY EACH OCCURRENCE S

    OCCUR qLAIMS MADE AGGREGATE $DEDUCTIBLE SRETENTION $ $

    WC STATUS C T "WORKERS COMPENSATION AND E"TORY LIMITSEMPLOYERS' LIABILITYP E.L. EACH ACCIDENT $ANY ROPRIETOR/PAHTNER/EXECUT IVEOFFICER/MEMBER EXCLUDED? F.I. DISEASE - EA EMPLOYEE $

    II yes, describe underSPECIAL PROVISIONS below E.L. UISEASF - POLICY LIMIT SA OTHER Crime CP0288087403 10101/07 10/01/08 $500,000/$500 Ded

    Money/Sec CP0288087403 10/01/07 10/01/08 $15,000/$2500 DedB Prof Liability SPL0010996 10/01/07 10/01/08 $1,000,000/$7,500 Ded

    DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONSWest Palm Beach Country Club, 7001 Parker Avenue, West Palm Beach, FLCertificate Holder is named as an Additional Insured. Coverage includes PersonalProperty of Others for $125,000 with a $2,500 Deductible excluding Wind/Hail. InlandMarine Scheduled Golf Maintenance Equipment $790,221; 80 Golf Carts $320,000; $5,000(See Attached Descriptions)CERTIFICATE HOLDER

    West Palm Beach Golf Commissionand City of West Palm Beach1000 45th Street Suite 7West Palm Beach, FL 33407

    CANCELLATIONSHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATIONDATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL DAYS WRITTEN10NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALLIMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS ORREPRESENTATIVES.

    _UTHORIZED REPRESENTATIVE

    ACORD 25 (2001/08) 1 of 3 #S1386003/M1386000 AWR01 o ACORD CORPORATION 198

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    IMPORTANT

    I f the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statementon this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies mayrequire an endorsement. A statement on this certificate does not confer rights to the certificateholder in lieu of such endorsement(s).

    DISCLAIMER

    The C ertificate of Insurance on the reverse s ide of this form does not constitute a contract betweenthe issuing insurer(s), authorized representative or producer, and the certificate holder, nor does itaffirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon.

    ACORD 25-S (2001/08) 2 of 3 #51386003/M1386000

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    DESCRIPTIONS (Continued from Page 1)Deductible/$125,000 Named Storm Wind/Hail Deductible

    AMS 25.3 (2001108) 3 of 3 #51386003/M1386000


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