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Legislature Contends Getting Someone to Run Putnam National Will be No Easy Task
County sending RFPs, but reserving the right to keep control
by Maria Theodore Leiter
Sometime in the next two weeks the County Administration will be sending out proposal requests for the management of the Putnam National Golf Course, following the recommendations made last month by the New York State Comptroller and in line with what the Legislature has been demanding. But, depending on what offers come in, the County may be forced to forego the tax-free financing that was used to reimburse the New York City Department of Environmental Protection, for some of the Wetlands fund used to purchase the property, possibly costing taxpayers an additional $100,000 per year.
All along, Legislators have been decrying their inability to get a true accounting of how much running the facility was costing the County because it was not set up as a normal county department, and therefore was not included in the County's budgetary process, which they oversee. This led to their requesting the state audit, which precluded the status quo from continuing.
Administration officials contend that although not included as part of the County's budget, Putnam National has kept very detailed accounting records that were made available to the state and administration and are available for audit. However, the comptroller concluded that the arrangement allowed the County Executive oversight, but diminished the Legislature's role.
But, at the July 17, 2007 meeting of the Economic Development Committee of the Legislature, it was apparent that legislators were not exactly celebrating their vindication. They instead took steps to limit their involvement to budgetary oversight. Following a request from the Deputy County Executive that the Legislature take a vote on which Requests for Proposal should be approved, Legislators acted to remove themselves from the decision- making process.
On this evening, Legislative Chairman Dan Birmingham, reading from a prepared statement, said, "The Legislature [in holding two prior meetings] was happy to facilitate in the RFP process. We never agreed to give a seal of approval to any one RFP." Citing "Balance of Powers" concerns, he said the Legislature would have no say in the wording or awarding of any RFP, calling that the "exclusive work product of the County Executive's Office." He added that the Legislature suggested that the County Executive follow the Comptrollers recommendations.
Legislator Tony Hay, reacting to the complexities of the bond obligations involved in the facility, outlined some of the problems the county would face in trying to change the situation:
"We can't get someone in to run it at a profit, since it is financed with tax-free bonds. We would have to refinance to allow an RFP to come in." Hay lamented that the County may have to refinance the tax-free bond if it wants to turn over the management to an outside company, since it was not likely any company would agree to run it as a not-for-profit operation.
Legislator Sam Oliverio, Jr., who said he did not trust the County Executive's motives with regard to Putnam National, wanted the committee to refuse to even hear from two administrative representatives who were included on the evening's agenda to discuss the RFP's. But, Chairwoman Odell said that there was no harm in listening to what they had to say.
Alex Mazzotta, PC Purchasing Director, said that the administration wanted advice as to how they should proceed with the RFP's including whether they wanted to maintain control of the rates, whether there should be two RFP's, one for golf and one for banquet management, and how they wanted to handle the bond issue. Committee members reiterated Birmingham's caveat and insisted that these decisions be made by the County Executive.
The golf course, which includes a banquet facility, is currently run by Putnam Golf, Inc., a company solely owned by County Highway and Facilities Commissioner Harold Gary. Gary, a well-respected veteran of the county's workforce, was selected to step into a void created after the administration had to precipitously fire the previous manager when a prior arrest record became public. That incident left the Golf Course and banquet hall without a manager just weeks away from opening season and contractual obligations.
"We needed someone very quickly," explained Finance Commissioner William Carlin. "Harold was chosen because of his expertise in golf." Gary, an avid golfer, served on the Board of Directors of the Mahopac Golf Club. "He served in a pinch."
Deputy County Executive John Tully said that in addition, Gary had a familiarity with all of the facilities and the issues surrounding those facilities. Gary was active in the acquisition of that property.
One of the early issues that led to the creation of a private corporation headed by Gary was that the prior manager had the liquor license in his name. The administration felt it best to limit its liability with regard to obtaining a liquor license and handling a facility that serves alcohol by passing those operations on to a private corporation. That license was needed for the banquet facility to honor its outstanding contracts. In addition, Tully said, the County did not want to hire additional county employees.
"We did not want to do the opposite of what other municipalities, which are outsourcing are doing," said Tully, adding that they used Westchester County as an example.
Legislators and administration officials agree that the quality of the facilities and the golfing experience have drastically improved under Gary's charge.
Gary agreed to take on the additional responsibility at no additional pay, while continuing to head the County's Highway & Facilities Department. He also agreed to allow the County to set the golf rates. Under the contract with the County, Putnam Golf, Inc. agreed to give any profits to the County. This arrangement made it possible for the County to use tax-free bonds to finance its purchase obligations.
Administration officials contend that they will not find a better deal than they had with Gary. However, they had always intended to issue RFP's, Tully said.
"Affordable municipal golf rates, a quality golfing experience at the most efficient and economical cost to the taxpayer," is what was motivating the administration said Carlin.
According to the Comptroller's recommendations, the County had two options, either to run the golf course as a county department, or to put its management out to competitive bidding process. For now, the County has opted for the latter. But, Tully said they were still "reserving the right to make a determination as to how to move forward after we see the results from the RFP. The County reserves the right to make the decision they feel will be best for the residents."
The RFP's are currently being reviewed by bond council, said Tully. Adding to the turmoil, Putnam Golf Inc. just lost a key employee. Al Duarte, the manager of the Golf Shop, who passed away last week.
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