MARCO ISLAND — Questions of impropriety in Marco Island’s finance department raised by former interim city manager Dana Souza led the city’s council to order a forensic audit of the city spanning the past five years.
Monday evening’s unanimous decision came on the heels of Souza’s resignation Oct. 16. Souza served as the city’s parks and recreation director for five years and served as interim city manager from March 24 through mid-May.
When the council appointed Steve Thompson as city manager, Souza provided him with a “transition report” outlining some of the concerns that came to light while he served as the interim manager.
“I believe there are management and oversight issues in (the finance) department,” Souza wrote to Thompson in May. “I believe these issues could include management apathy, a practice of cleaning up project account overruns versus managing project accounts, unauthorized moving of expenditures from account to account and misleading City Council when asking for contract approvals,”
The release of the report to City Council coincided with Souza’s announcement last week that he took a job as parks and recreation director for the city of Greenville, S.C., and he will begin work there in mid-November.
The implications raised by the documents is reason to add an emergency addendum to the City Council meeting agenda, said Councilman Frank Recker.
Chairman Bill Trotter and Councilman Wayne Waldack were the only two opposed to Recker’s recommendation to discuss the city manager’s performance, particularly regarding Thompson’s response or lack of response to the financial concerns Souza raised.
The 5-2 vote created a new agenda item that took council and the community into a three-to-four-hour discussion about plans for Souza to become assistant city manager, whether Thompson should be fired and whether a forensic audit — meaning it could be used in court — was necessary.
Recker said he believed Souza may be leaving Marco Island due to “whistle blower retribution” and added that learning about these financial concerns from the public instead of from the city manager was “highly disconcerting and raised grave concerns about (Thompson’s) judgment.”
Trotter said he would prefer to discuss Thompson’s performance during his six-month review, which is due in November.
“I too have concerns about the financial irregularities,” Trotter said, adding that he would prefer to allow all councilmen and Thompson to review the information so as to provide a “due process approach.”
Specific concerns in Souza’s transition report included a request made in May by Public Works Director Rony Joel for a $9 million transfer from the 2009 budget to the 2008 budget. It was for a water project council approved in April. Council had not been advised that the project was not funded in the current year’s budget.
Souza said he also learned $600,000 was transferred from the general fund to the utility fund for the North Collier Boulevard project without council approval.
Souza told Thompson in the report that he found the North Collier Boulevard project was nearly $800,000 over budget.
Subsequently, a report released Oct. 15 by Finance Director Bill Harrison and Joel states the approximate $40 million Collier Boulevard reconstruction project was completed $2.5 million under the amount available for the project.
“I don’t understand why finding $2.5 million is bad news,” Waldack said.
Thompson defended the changes in the North Collier Boulevard project, saying council was advised the project was over budget May 21, 2007, and that a final reconciliation of the project now indicates it was $2.5 million under budget.
Thompson also defended the legitimacy of transferring $600,000 from the general fund to the utility fund for the project because some costs were utility costs and some, such as roads, were legitimate general fund costs.
“I know no more after this than I did before I got here tonight,” Recker said after the meeting.
Council member Ted Forcht said he can’t tell what to believe when the numbers keep changing.
“I don’t care if it’s higher. I don’t care if it’s lower. I just want the truth,” he said.
Souza stood by his transition report and also stood by his recommendation for Thompson.
Souza sought confirmation from other city managers on the issues, including Naples City Manager Bill Moss, formerly Marco’s city manager, who informed Souza in May that Joel and Harrison deserved reprimand for their actions.
Resident Bill McMullan also made arguments suggesting council request a forensic audit.
“You’ve said the buck stops here,” McMullan said. “How can the buck stop here if you have no idea where the buck is?”
Council voted 7-0 to collect bids on a five-year forensic audit, which will provide an outside review of every city document and transaction. Councilmen expressed specific interest in a forensic review of the Collier Boulevard project and the septic tank replacement project.
Council also voted 7-0 to table a review of Thompson’s performance until the next City Council meeting in November.
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Comments » 15
Fossil writes:
Trotter, you have shown once again that you are very apt at diverting our attention. The mood of the majority members of your council was to receive answers. Souza's transition report exposed a lot of smoke. Why not offer a Charter amendment outlining CM reporting requirements so that the Council is no longer blind-sided? Also, pass an ordinance requiring any CM to investigate and report findings to council of all allegations of misconduct, financial irregularities, unauthorized activites or lapses of judgement by division heads? No matter when or under whom they occurred. At least then the Council would receive notification in a timely fashion and the manager would be required to accept and stand behind his findings. It is clear from Mr. Thompson's presentation that he is loath to hold anyone accountable for anything. Are there no managers serving on the council? Have none of you observed human behavior? Business models of "team" concepts work only in theory. Reality and experience dictates that someone must be responsble. It is up to the Council to make policy. That is the only job you have under the Charter. Do it.
JohninMarco writes:
This was Not a shining moment for the council.
August8 writes:
Oh Boy!!!!!!!!!!!!!!!!!!!!!!!!
Guess the "Honeymoon" is over for the city manager!!!!
I hope the audit produces results that warrant this type of behavior on the part of all those involved in City Government! get the audit done and let's see??
Sorry, you can double his salary, make him an honorary Mayor, or anything else, but Mr. Souza is still not qualified to ba an assistant city manager, here or any where else!!!!
ChuckKiester writes:
Lindsay, your article is excellent and I cannot believe the short time in which you had to prepare it. I would like to note only one discrepancy in your report of which I am aware, i.e., your reference which suggests that Councilors Popoff, Recker and myself made a precondition to our current city manager's hiring the promotion of Dana Sousa to Asst. City Manager. I cannot speak for the others, but as you may recall, Councilor Forcht and I voted in support for the young man from Virginia. As far as I know, neither he nor I made this decision based on any precondition our choices---quite frankly, it did not not enter my mind. As quoted in the Eagale shortly after the selection of Mr. Thompson as our city manager, I expressed an opinion that Dana had all of the OJT qualifications to progress to at least asst. city manager wherever that may take him. As was the case in my former occupation (city planner), however, in order to move up vertically, you had to be willing to move geographically which is what he decided to do. I've been there, as I'm sure those of you in the private sector have as well. Let's give Dana all the alcolades he has earned and, who knows, maybe he will come back to one of his favorite places either as a public servant or a retiree.
Chuck Kiester
dc5799 writes:
I didn't vote for Frank Recker last time but I will next time. I think he does have our best interest at heart.
Also Wayne, Wayne, Wayne doesn't have any interest.
SaveMyState writes:
The focus should not be on personalities, but on the City's accounting integrity.
Those concerned should look into the incident of insurance fraud at the City of Naples due to accounting "errors" under Mr. Harrison's tenure as Finance Director there--and his subsequent departure from employment with Naples before coming to Marco. (2001)
Those concerned should be weary of using the City's current auditor (who would be liable for past actions) or other CPA peers (as in "peer review") to do the forensic audit, and should look into the State of Florida Auditor General, who is specifically tasked to perform independent audits of this kind, especially those involving fraud, rule or law-breaking. (See web-site or telephone Number: (850) 488-5534.)
Those concerned should examine Florida State Statutes Title XII, Chapter 166.241, section (3.) Specifically in regards to illegal budget amendments and law requiring governing body approval. (For Marco, this would require an Ordinance with two (2) readings.)
shadow writes:
CHUCK,CHUCK,CHUCK....WAYNE,WAYNE,WAYNE....PLEASE...don't try to defend this mess...all of you voted for steve as i remember....1st vote was not unanimous...last vote was...and for you wayne...what are you thinking with your stupid remark at council meeting? just more stupid remarks i guess.
you boys are gonna' have to belly up to the bar with an audit and the culprit will ultimately be the ones that left office or resigned....and someof you.
marcoredeagle writes:
For the record I believe this document was changed after my reading of it.
I recall this article stating .."There was an audible groan, when Wayne Waldack said" I don’t understand why finding $2.5 million is bad news.”
Wayne needs to place closer attention to details, following council discussion and grasp what is in the best interest of the citizens of Marco.
Fossil writes:
As I see it, the problem for the City Council is the City Manager. After all is said and done, he is ultimately responsible for all administrative and management issues. It is also only he that is responsible for keeping our elected officials informed. If what Councilman Recker says is true, then I can only believe our CM used bad judgment in not revealing the temporary CM's transition report to the Council as soon as he became aware of it. It appears to me that the CM spent 5 months to prepare a vigorous defense of his activities and little time keeping our elected representitives informed. His efforts on his own behalf, shows us where his priorities are. That one example of poor judgement is indicative of how he thinks and how he manages. It is obvious now that many in our community and the majority of our Council have lost confidence in his ability to manage. This loss of confidence would not be tolerated in the corporate world, why should we tolerate it. In order to ensure future CMs understand that they must accept responsibility for their actions and for thier inactions, a clear message must be given. If this Council is to act responsibly, it should fire him immediately.
shadow writes:
where/how did dana's letter to thompson surface? i missed that.
rcbauburn writes:
Dana's letter to Thompson can be viewed at www.eyeonmarco.com and was retrieved via the freedom of information act.
Deltona writes:
Sounds like Deltona all over again….
Good luck to you people - You'll need it....
islandman4now writes:
thank you to the responsible parties that retrieved and shared the memos. why was this not brought to council's attention before now? almost six months have passed. sounds like we need to clean house.
August8 writes:
You know what!!!!!!!!! Do an audit to satisfy those that are disappointed about Mr. Souza leaving, but after reviewing all the referenced documents it is clear that there are no serious irregularities. Perhaps some formal procedural guidelines could be adopted but ultimately an audit will likely be a waste of $dollars!
What is apparent by reading the documents is there was a power struggle unwinding within these segments of city government.Unfortunately, Mr. Recker put the assistant City manager thought into Mr. Souza's ear and the ball begain to roll!
Mr. Harrison was likely unhappy with being overlooked as the interim, Mr. Souza seized the opportunity to challenge him and commence empire construction with all the difficulties and irregularities he un-covered and formally reported to the new manager.
I believe, Mr. Thompson noticed the same thing, that's why he did not give the matters the attention that,now that mr. Souza has resigned, that many council members think he should have.In his personal performance review it is very clear that Mr. Thompson spoke to these issues as well as his encouragement for Mr. Souza to complete his formal education to provide for considerations for advancement, good review!!
Unfortunately, it appears that Mr. Souza thought being elevated was a shoe-in and a bit discouraged when he found that more would be required, thus his resignation.
No slighting of this popular employee, however, Mr. Thompson surely deserves support as well.
Finally, Mr. Moss set the table on the manner in which business and issues like this were traditionally handled within the city, so change procedures, complete the audit, accept Mr. Souza's decision, and ease up on the city manager that has all of five months under his belt. Most importantly, due to past difficulties on this Island, every attempt should be made to address this situation absent the public outrage and embarriment that have charactorized City problems over recent years!!!
sailingalong writes:
Steve Thompson considers Bill Moss as one of his best friends. Moss set up his selection from the git go with Arceri's assistance in order to continue the same style of government. Steve is smoother and less confrontational but if you talk to the people in Deltona they are now finding major issues with his tenure there.
Thank you Dr. Recker for recognizing that we need to find out what has happened on this island during the past 5 years when tens of millions of dollars went over the bridge.
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