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HomeMy WebLinkAboutFinance FY2013-2014 DEPARTMENTAL BUDGET CALL-BACKS 04-23-2013 Department of Finance (aa) Page 1 The departmental budget call-backs reconvened on April 23, 2013 at 2:06 p.m., and proceeded as follows: Department of Finance Honorable Gary L. Hooser Honorable Ross Kagawa Honorable Nadine Nakamura Honorable Mel Rapozo Honorable JoAnn A. Yukimura Honorable Jay Furfaro, Council Chair Excused: Honorable Tim Bynum Chair Furfaro: Welcome everyone. We are back from our lunch recess. We have two (2) more items on this afternoon's presentation. We are wanting to talk to the Department of Finance, in particular on Credit Collection and Merchandise Services. I believe Ernie, you are going to be here to respond to us on this? ERNEST W. BARREIRA, Budget & Purchasing Director: Yes. Chair Furfaro: Okay. Steve, will you be joining him? STEVEN A. HUNT, Director of Finance: Yes, I will. Mr. Barreira: Good afternoon, Chair Furfaro, Vice Chair Nakamura, and Councilmembers. I am going to take the first segment of the presentation to talk about our merchant services situations that the Council has expressed some interest in and that the Administration is also committed to. The first thing we would like to articulate this afternoon is that once again, as the Mayor has spoken to that issue in person, is that he is fully committed to an expeditious implementation of these charge card services at the golf course. I think it will provide for a tremendous amount of ease for people whether they are visitors or residents who do want to come forward and utilize that expeditious payment process in order to participate in the resources at the golf course. The challenge over the —Monday as you recall, Friday this became an issue and Chair was kind enough to place it on the agenda. Of course, that put us on the weekend and Bankers do not work on the weekend. So, between gathering information on the weekend, flipping five thousand (5,000) flying saucers at the Saint Theresa's Carnival, Sir, it became quite challenging. But we do have some information to present. Chair Furfaro: Did you bring some for us? Mr. Barreira: Chair, I should have because it was the best on the island, I must say. Chair Furfaro: And I have to correct you on another one. Bankers do work on Saturdays, even on a rotating basis. Mr. Barreira: Oh, really? Good to know. I want to cover first the procurement issues pertinent to the situation. Merchant Services specifically related to charge card services is not an approved exemption by rule or law. I think that had come up as a question because there are other Merchant Services that are approved exemptions. In 04-23-2013 Department of Finance (aa) Page 2 fact, the Merchant Services that relate to online payment of bills, which is currently in existence if you want to pay your vehicle registration, that is via a bid cooperative purchase through the State Procurement Office. So, that service actually is available even though is not an approved exemption. Now, as we had mentioned last week, the Automated Teller Machine (ATM) is an approved exemption by law. But not the particular charge card services that we are discussing today. What we will need to do is to... Chair Furfaro: For the public, explain to them the parameters on an approved exemption. Mr. Barreira: Oh, in a nutshell Chair, because that is probably a yearlong course at the University. The approved exemptions are both approved by law and by rule. The Legislature and/or the Policy Board for the Administrative Rules determine and sanction for the Governor's signature certain types of procurement activities that do not need to go through the procurement process because by virtue of their functionality or the services that they provide, they are deemed exempt from the Code. One that came up this morning that applies is the County's authority to approve exemption for the County Council to grant moneys to specific entities for specific purposes. So, that is an example where the County, under the authority vested in the statute in different sections of the statute does have the authority to grant money for specific purposes. The Humane Society is a perfect example of that and all of the money that goes to the Office of Economic Development that you appropriate every year. Those are all examples of approved exemptions by law. There are also exemptions approved by rule. Sometimes they are redundant in the law and the rules. But they carry a wide variety of things, Chair. But essentially, if matters are exempt by law or by rule, the procurement process is removed and we can either exempt competition or exempt a process and it expedites the acquisition of good services that are needed by State and County entities. Chair Furfaro: So, whether we go by Bank of Hawai`i, First Hawaiian Bank, American Savings, Territorial, getting a credit card application for business transactions, we are exempt from any procurement laws? Mr. Barreira: No, not in this particular one. Chair Furfaro: We are not? Mr. Barreira: We are not exempt, and thank you for letting me clarify that. These types of Merchant Services are not exempt. We have to pursue a competitive process to acquire these services. Chair Furfaro: Thank you for the clarity. But that is why I wanted to respond to the competitive portion of going to certain banks. Mr. Barreira: Right. Chair Furfaro: They have to actually bid. We have to have them bid on services? Mr. Barreira: Yes. Chair Furfaro: Okay. 04-23-2013 Department of Finance (aa) Page 3 Mr. Barreira: Now, we are going pursue an active procurement and we will provide that direct assistance to the golf course personnel to expedite the process in line with the Mayor's directive. Based on our rough projections of anticipated costs, it looks like we will be able to utilize the Small Purchase Method. As you recall,what drives us into the formal procurement method if the anticipated price for goods and services reach or exceeds twenty-five thousand dollars ($25,000). Obviously, these fees are not going to near that cost. So, we will be able to secure a Small Purchase Method and that is good news because we will be able to expedite the process utilizing that method. The Small Purchase Method essentially requires that we secure — we identify, at least three (3) vendors and we send them specifications and scope of work that we deem necessary, and we solicit a price. This will be done by electronic means by via the E-mail system and invite them by a given date to submit price parameters. We will award this based on the lowest price quote submitted. So, it is going to expedite the process. At this time of year, late April coming up in May, if we had to get a formal procurement, we would be in tremendous trouble because, as you know, the short staffing problems we are facing and the very late nature of the year, it would be almost impossible to successfully let a formal procurement at this time of year and seek any kind of success. Once again, we will electronically submit the specifications and we are going identify three (3) or four (4) local banks. My very rough research indicates that there are at least four (4) banks on the island that could respond to a solicitation request and without naming them we will most likely even though we are required to only do three (3), it may be in the County's best interest to include all four (4). That promotes more competition and ensures that we get the best result possible. We are going to allow a ten (10) day period to suffice, Chair. Chair Furfaro: Ten (10) business days? Mr. Barreira: Ten (10) calendar days. Chair Furfaro: Calendar days? Mr. Barreira: Yes, because this is pretty standard operating procedures for our banking institutions. Charge card services are being provided to all of the major vendors on the island and every place else. So, it should not be difficult for them to provide us with the needed price quote for us to determine a award. Chair Furfaro: Mr. Kagawa has a question at this point. Mr. Barreira: Yes? Mr. Kagawa: I want to go back to the beginning when you said we were aware of this Friday. The last time we talked about the golf course in my Committee, the Councilmembers, we said we should push through because I had brought my personal experience of standing in line, watching tourists want to pay with the charge card, and walk away without playing because we did not accept a charge card. I mean that was not the only reason I brought it up. It just made good business sense to have one. I think our golf course is probably the only munity that does not accept it. So, it just makes total sense. I would hope that in the future, if the Department of Parks & Recreation has a request like that, for them to look at it immediately, that they get in contact with you because we should have been actually moving on this about a month ago, I believe. Chair Furfaro: Actually, the request was two (2) years ago. i2 04-23-2013 Department of Finance (aa) Page 4 Mr. Kagawa: But anyway, not to beat a dead horse. But I mean, we definitely need that charge card service. I think it is going to impact our revenues there. I think the fees will not be in question once we do it. But on that same token, do we know what kind of fees we expect to pay or is it just hard to tell because we do p p Y just know how much transactions? Mr. Barreira: We do not know specifically at this point. That will be part of the solicitation purpose is to acquire that because that would be the cost for the County, what fees will be assessed by the bank per transaction or by total analysis. As I get to the presentation, I will cover those details as well. Mr. Kagawa: Okay. The second one, just to go back again before you finish your presentation. Are we pursuing the replacement of the ATM in the lounge because like I said, I remember even using it and it was good. It was the First Hawaiian Bank ATM, I believe, and apparently somebody broke in and stole the ATM. But they did not know that the cash was actually under the floor. From what I am told, I think the Department of Parks & Recreation pointed out to us that, I guess, First Hawaiian Bank was upset that a break in was allowed and they said that we are not replacing it. I do not know if you can update us on the status of the ATM cash machine. Mr. Hunt: At this point, we are not looking at pursuing the ATM cash machine and some of the issues that have come up, it is a trade-off between visibility and security. In order to be visible, you need to be in an outside location. But then it becomes a security issue if you do not have night time watch guards or anybody. First Hawaiian, I believe, lost about thirteen thousand dollars ($13,000) in that vandalism of their machine. They are definitely not interested in putting one back, at least that institution. But I think you may have the same response from other institutions too if you cannot proceed adequate security for that, they may not want to. If we have Merchant Service there, it may become less of an issue for people because they essentially have debit cards as well. Mr. Kagawa: So, the story that I heard was not accurate then? There was some cash in there because apparently from what I heard from the people at the golf course, they said that the cash is located in the floor and I do not know if upon requesting money, it comes up. But you said they have some in there? Mr. Hunt: I think the actual loss was the damage to the machine itself, the repairs, in trying to get what they thought where the cash was, they damaged the machine to the point where it was a very expensive repair to have it re-serviced. Mr. Kagawa: Thank you, Steve. Mr. Barreira: Councilmember Kagawa, if I may clarify. When I made reference to Friday, that was making reference to when the Chair assigned it to us. I know that it was a matter that the Council has spoken about this. Chair says two (2) years ago at other more recent discussion. It was simply a matter of putting together this presentation that could be coherently enough on a Monday. But we moved it to Tuesday to give us more time. So, that, if I could just clarify. Thank you, sir. In terms of getting back to the solicitation process, in addition to the ten (10) day bidding period, ten (10) calendar days, we can award this by purchase order and/or contract easily before the fiscal year. Now generally speaking, we execute purchase orders for purchases up to twenty-five 04-23-2013 Department of Finance (aa) Page 5 thousand dollars ($25,000) and execute contracts beyond that. In situations like this, sometimes when working with banks, they require a User Agreement. If a User Agreement is going to be required by whatever bank we select, most likely we are going to have a contract and have the User Agreement as an attachment to the contract document. Of course, we always have the Departments refer to the County Attorney because depending on the situation, perhaps all of the deliverable cannot be adequately documented on the purchase order which would mean a contract document which would be far more beneficial. But of course, because of the Small Purchase Method that we are going to exercise, we should get an expeditious result. I would imagine that the banks are going to be able to provide us with the services in a relatively short period of time. All of that will be imbedded within the solicitation. Some information about the merchant charge card services, the service fees for credit card payments are usually based on monthly credit card volume times the quoted percentage. So, that is the fees that we are most likely going to be looking at. Also, the service fee for credit and debit card transactions, once again, number of transactions times the minimal monthly fee quoted. Minimum monthly fee for equipment rental is based, another likely fee, that is based on number of units times the monthly charge quoted, again. The bank will be asked to quote a flat rate for all of these charges that are determined necessary to provide this service. This will facilitate competition as defined by the Code. We are not going to ask them to break out specific elements of the costs. First of all we may miss something and that may delay the process and secondly they are the experts in the process and they know exactly what fees are required. All we want to know is what the bottom line is, whether it is two percent (2%), two point one percent (2.1%), whatever it might be because that will enable us to determine what the cost will be for providing this type of service for securing this type of service. The initial cost projection I am hearing roughly perhaps, two point five percent (2.5%) of total charges. It could be less. It could be more. But once again, the prevailing bank will be the bank that provides us the lowest competitive rate. One of the things that is going to be needed and once again,this is a Department of Parks &Recreation initiative, but we have been asked in the Department of Finance to help facilitate the process because it does fall under the procurement realm. But one thing we are going to be asking for is, it is critical to have timely repair and/or replacement units available on-island. That is why we will seek a competitive process. We will limit it to on-island banks because they can facilitate a much more timely review and get us the type of service that we are required to have. A few... Chair Furfaro: May I ask a question? Mr. Barreira: Of course, Chair. Chair Furfaro: First of all, thank you, for the Department of Finance and Purchasing to pursue this for the Department of Parks & Recreation. But these are fees being charged for the convenience of people paying green fees, paying car fees, and so forth? Mr. Barreira: Yes, sir. Chair Furfaro: The reconciliation of this account each month, because I would assume that these charges are going to be credited to our account or are they being deposited to the vendor's account? Which do you perceive this to be best? Mr. Hunt: I believe the Merchant Service credits our account and deducts their fee. 04-23-2013 Department of Finance (aa) Page 6 Chair Furfaro: Okay. So, that means at the end of each month there is a reconciliation of money we owe the vendor? Mr. Hunt: Or is it a net service charge. They take it directly out. Chair Furfaro: Or, it is a net item? Mr. Hunt: Yes. Chari Furfaro: That is how you see it working? Okay, I am good with that. Mr. Barreira: And that will be specifically delineated within the agreement that we will are probably going to have to executive with the selected bank. Chair Furfaro: I think a follow-up question from Ross. Mr. Barreira: Yes? Mr. Kagawa: Just a follow-up. So, you said it is a guesstimate of what it will come out to. But you are looking at maybe two point five percent (2.5%) of all our charges. I will just give a rough example. If a golfer pays twenty dollars ($20) for nine (9) hole green fee, nine (9) hole cart, pays twenty dollars ($20) with a charge card, that will be about fifty cents ($0.50). Mr. Barreira: Per transaction, yes. It is charged per transaction. Mr. Kagawa: So, for that twenty dollars ($20) that he is charging, it will cost the golf course fifty dollars ($50). So, we will profit nineteen dollars and fifty cents ($19.50)? Mr. Barreira: Yes, sir. One of the things we have to provide, I am told, is not only the approximated transactions per year, but the total dollar values associated with that. So, we are going to provide some upfront estimations and of course, we have Comprehensive Annual Financial Report (CAFR) numbers from last year. So, we are able to do that. Chair Furfaro: JoAnn has a follow-up question. Go ahead, JoAnn. Mr.Yukimura: Who is paying for the fee, the customer or are we? Mr. Barreira: Right, it will be us. Ms. Yukimura: Why could we not pass it to the customer? Mr. Barreira: I approached that question. The information that I got, and once again we are going to vet this issue more thoroughly through the solicitation. But the way it is set up in the vast majority of situation, is that the fees are 04-23-2013 Department of Finance (aa) Page 7 allocated against the County, or Wal-Mart, or K-Mart, or whoever it might be. - That question has come up before. I have not received an answer. Ms. Yukimura: We could just raise the fees. Mr. Barreira: In the closing of this presentation, I talk about policy considerations and I will raise some of those considerations. Ms. Yukimura: Okay, thank you. Chair Furfaro: We will let you continue. But basically, it is a cost of doing business for right now. Go ahead, continue. Mr. Barreira: In line with that Chair, when you go to Wal-Mart it does not say if you want to use the charge card it will be two dollars ($2) more. They imbed those costs within their operating expenses. In fact, they let into us, that is part of their overhead. When I prepared this over the weekend, I have to modify these numbers, I said our projection collectively was about thirty percent (30%) of green and locker room fees would be paid via the charge card. That is the largest source of golf revenue right now. However, I have had some information, and Ian Costa aggressively pursued information from the City and County, and at the Alawai Golf Course, the players who pay by credit card is actually fifty percent (50%) of the players. It is much higher than we expect and that is four million five hundred thousand dollars ($4,500,000). Ms. Yukimura: That might be how much business we are missing. Mr. Barreira: Yes, and that has been the statements that have been made. Mr. Hunt. Not to interrupt or anything. Mr. Barreira: No, go ahead. Mr. Hunt: One of the challenges in estimating the rounds played, we get the actual rounds played. But when you have a monthly pass that somebody buys you do not know how many rounds they are going to play with that pass. Chair Furfaro: Understood. Mr. Hunt: A Super Senior buys a pass forty dollars ($40) pass and they play and once a month or thirty (30) times a month, they all count toward round play, but you cannot that as each transaction as a revenue account. So, we are really trying to segregate out those that are pay per round basis and those that are likely non-resident that are going to pay, may end up being closer to the thirty percent (30%), I think is how we estimated it. Chair Furfaro: Well, the bottom line is, the variable that we do not know is how many people do we turn away, like Councilmember Kagawa said, because they could not charge and those by chance are probably pretty good rack rated business. Mr. Hunt: Yes. 04-23-2013 Department of Finance (aa) Page 8 Mr. Barreira: The projected increases in use, as clientele understands the resource availability, will be an issue because I think in addition to what Councilmember Kagawa and the Chair has already talked about, people who want to golf but may not have brought enough money and they figure that they want to charge it and cannot charge it. So, as the Mayor had pointed out in his supportive statements last week, this will have an impact where people will actually— that is a variable we do not yet know and we will know that after we do the implementation. Concessionaires at the golf course right now, carts, Pro Shop and restaurant, they can independently develop these Merchant Services as they so choose. I would think that it would be relatively Statement of Purpose (SOP) for them to do that for the same reasons we are doing it, to invite more profitability and more ease of use. In our general projections and once again, this is very rough, if we increase five hundred (500) to six hundred (600) rounds a year, that might be around the break even proposition and that is very rough. We would need more analysis to do that. But even without all the analysis and discussion, I think it is commonsensical if not else, that we are going to create a much more user-friendly Golf Course with the implementation of this resource being in place. As we started to talk about, there are some future policy issues that I just want to touch on today because they will be discussion items for future meetings. The future financial assessment on total fees will need to be conducted. Charge card use is a convenience. Where should that responsibility for payment lie? Initially, we will bear the responsibility based on what Councilmember Kagawa had said, it is a relatively small amount when you compared it to the actual profitability that occurs. We are going to have to make decisions as to potential fee adjustments to cover Administrative costs for these Merchant Services and that is obviously something that is going to have to be vetted not only by the Administration, but by the Council. The unknown consideration at this point is the potential increased volume of play due to charge card availability. The greater the use, the greater the fees, but still the greater the profit in terms of use of the course. Lastly, it will be critical for effective communication to our user community to occur so that they can become aware of this newly created resource, press releases and other means that the Department of Parks & Recreation feel appropriate to advance that goal. In the nutshell, that is the Merchant Services. The key element is that it is underway. We will roll this out very shortly and with a ten (10) day bid receipt expectation, we should have this matter resolved in a relatively short period of time. Chair Furfaro: I want to thank you for the presentation. I do also want to plant the seed, the fact that once we are able to perhaps increase rounds and so forth, that you may want to consider a new Pro Shop lease that by year two (2), the credit card costs should, in fact, be a burden of the people that have the lease of the Pro Shop. In other words,we are in it for two (2) years to help build the momentum with an understanding that they need to provide that service in month twenty-five (25) of a new agreement. Something to consider because along the way, Ernie, the vendor might want to produce some other types of amenities for golf. A golf hat with a logo for Wailua on it, a Pro Shop shirt. They may want to develop something that markets them being the people in control of the Golf Course Pro Shop. It might provide them another way to earn revenues. Mr. Barreira: So. As opposed, Chair, to the County now fully control the payment of green and cart fees, you are suggesting as part of concession, solicitation that we imbed it within the Pro Shop? Chair Furfaro: You put something like that imbedded in their new lease to give them the trade-off. You want to sell merchandise logoed with the Golf 04-23-2013 Department of Finance (aa) Page 9 Shop on it and so forth, you have to assume the fees associated with letting the customer charge at some point. I mean you may want to put that option in there. But the first problem is getting people to be able to not drive away because they could not charge. It might give vendors some incentive about ordering logo balls, ordering golf caps, and things people take pride in being part of a club that is associated with Wailua. I would not leave that out of formula. Mr. Barreira: We will pass that sentiment on to the Department of Parks & Recreation. Chair Furfaro: Okay. Let me understand the bid is going to out—you are going to specify you want something that shows a flat fee first? Mr. Barreira: Yes. Chair Furfaro: Plus a percentage cost, is that what I am hearing? Mr. Hunt: I think he is referring to a flat percentage that covers everything. Chair Furfaro: Oh, okay, a flat percentage? Not that there is a flat fee of one hundred fifty dollars ($150) a month and then no minimum of how much needs to be charged in there? Mr. Hunt: Right. That way based on volume, we do not have to determine which is the most competitive bid with estimates — this is your percentage. Chair Furfaro: Got it, understood your strategy there. Okay. Questions? Mr. Kagawa. Mr. Kagawa: So, let me go back a little bit. We average maybe one hundred thousand dollars ($100,000) a month, collecting all of our cart revenue fees and everything. Mr. Hunt: Close to that. Mr. Kagawa: It is about one hundred thousand dollars ($100,000) a month and if we say we are going to follow the Alawai's trend and fifty percent (50%) will pay by card. I think that is a very realistic number because a lot of people I guess like me, want to hold their cash and you can get mileage and whatnot by charging. So, they will take advantage of that. We will kind of lose out a little bit because we lose two point five percent (2.5%) and two point five percent (2.5%) of fifty thousand dollars ($50,000) would be approximately one thousand two hundred fifty dollars ($1,250) a month. if you look at the number of one thousand two hundred fifty dollars ($1,250) a month with the potential of increasing the play — and I am very excited that we got the Pro Shop and the restaurant concession in the works. We have got Ian back there and I want to thank him. But I just see a lot of improvement in where we are at. We have of the credit cards. It has been long overdue. The only question I have is if we can base our projections on current revenue, I would like to work with you, Ernie, and maybe see what kind of fee increase that might be able to recover because I would not want to—we already subsidize the Golf Course 04-23-2013 Department of Finance (aa) Page 10 a lot. I am a golfer. I think it should be subsidized, but not to the extent there is no limit. I guess if we can somehow adjust the fees so if we collect the same amount, not being too wishful I guess, that how much would be a fair price to recover that one thousand two hundred fifty dollars ($1,250) a month, whether it would be fifty cent ($0.50), one dollar ($1), or whatever to the green fees or even the monthly card. I think the golfers have to burden some of the improvements that we have. ■ Mr. Hunt: I think we were looking at about one and a half (1 1/2) additional rounds a day to break even with the Merchant Service. If you have the one and a half(1 'A) per day, you are par, you are back on par and it is convenience and we are where we are. Anything beyond that, then we are getting additional play that can help lower the subsidy from General Fund. Mr. Barreira: So, for me to understand, Councilmember Kagawa, what we were thinking of in terms of having this implemented the first of the fiscal year,we would have five (5) or six (6) months of observing exactly what the utilization has been and what fees have been charged against the County. If I am hearing you correctly, you would want there to be a break even proposition, that we should not have to expend any more money in that operation with regard to the fees assessed? Mr. Kagawa: I guess that is where I am headed. Even though we are going to be basically — if we do not increase the play as we hope, and I think we probable will, but let us have a backup plan so that the General Fund does not get burdened more by having this service which I think is long overdue anyway. Thank you. Chair Furfaro: JoAnn? Ms. Yukimura: Following up to that. If there is going to be a strategic plan, you might want to consider all the other reasons. We need to look at raising fees or lowering them, whatever it is. But setting proper fees and including ability to do discount packages to the manager or whoever. There are a lot of things that could be —you do not want to come up with two (2) or three (3) Bills, one after the other to raise fees. It should be done in a full package. That is really not for the Department of Finance, that is for the Department of Parks & Recreation or whoever is managing Wailua Golf Course. Thank you. Chair Furfaro: I myself, I am pretty pleased on the report you have given us back. It has been a while to get us to this point. But please also think about that twenty-four (24) months going forward. I mean one and a half (1 'A) rounds of golf a day covering this expense and we increase fifteen (15) rounds per day. Especially, if we are looking at the offer that has been made to us about joining the Coconut Coast and tapping those visitors. Without the credit card service, it just does not work. Mr. Rapozo, you had a question? Mr. Rapozo: I apologize for coming in late. I just wanted to confirm the cost of doing that business. My math tells me it is very, very minimal. Even if we go with fifty percent (50%), even if we go with seventy percent (70%) that pays with a credit card based on existing numbers, I think it is well worth the investment. What is it? Twenty-five thousand dollars ($25,000) if everybody that golfed today used a credit card. I mean, the cost would be twenty-four thousand dollars ($24,000). So, very, very minimal when you look at the opportunity to generate revenue. I think with credit cards, you can have, I think I heard you say the logo balls or Wailua Golf Course t-shirts or some 04-23-2013 Department of Finance (aa) Page 11 memorabilia for the tourists to take back. There is just an opportunity to recoup that. I think two point five percent (2.5%) is high. I do not think you will get that. I think you will get less especially if we are going to go out to competitive bid because every bank is going to want that account. So, I am looking at a lot less transaction fees. I wish you luck in the negotiations and cannot wait. Mr. Barreira: And even at twenty-four thousand dollars ($24,000) Councilmember Rapozo for legal compliance, it still keeps us under the Small Purchase threshold and we can still let this and that is what I based on. I based it on just under twenty-five thousand dollars ($25,000) and indications were that it would be far less than that. I am curious now so I am going check others. Alawai is a great example and I just got that this morning through Ian. But it would be interesting to see, maybe even some of the private courses and what percentages are paid with the charge cards. Mr. Rapozo: I would think that the resort courses are a lot more, a lot higher use of credit card because of visitors and I think that is what the target has to be. Like the Chair said about the Coconut Coast marketing opportunity, it is very difficult to book a course without a credit card online. I mean, it is impossible. I think it will work well. Thank you. Chair Furfaro: Please do it against municipal courses because you are also going find out resort courses, they allow guests to charge back to their room. Then they settle their whole stay and the number of rounds they have with one (1) transaction at departure. So, just to know that. Mr. Hooser, you have the floor. Mr. Hooser: Overall, what is the percentage of cash and checks taken? It is the only other option, right, cash and checks? Mr. Barreira: At the golf course now? Mr. Hooser: Yes. Mr. Barreira: I do not have that information available. We can research that and respond. Mr. Hooser: That would be good. Usually, there is a penalty associated with that also, a certain amount of bad checks, so to speak. If you could find out the percentage of cash to checks would be good. Thank you. Mr. Barreira: Very good. Ms. Yukimura: Following up, I presume we have a very good cash/check procedure to make sure that the handling of cash is secured? Mr. Barreira: Overall at the County or the Golf Course in particular? Ms. Yukimura: At the Golf Course. Right now, if it is mainly cash/check process, somebody needs to just make sure that there is a proper procedure for reconciliation. 04-23-2013 Department of Finance (aa) Page 12 Mr. Barreira: I could not speak for the operation of the Golf Course. But knowing that our good friend Dave Spanski touches all money from the County and that if there was a problem, he would be the first one to alert us. We are subject to audits that have been conducted. I am not sure how I could—is the question are there procedures in place to account for checks and cash within the Golf Course? Ms. Yukimura: Yes, and for the handling of checks and cash. Chair Furfaro: You might ask Dave if we have a TeleCheck Agreement. Mr. Hooser: Just another follow-up. Chair Furfaro: Go ahead, Mr. Hooser. Mr. Hooser: The history of the Golf Course regarding this issue is not always been great. Dave was here in the past also and so I think it is worthy of following up. There were some issues with the golf cart concession and the handling and underreporting of cash some years ago. We are saying that there is hundreds of thousands of dollars of cash flowing through, I think it warrants checking to make sure that there is a cash register that operates and that receipts are given, that kind of thing. I do not make more of it than it is, but I think it warrants looking into. Thank you. Mr. Barreira: Chair, if I may make a request. When the questions are transmitted to us, could it be the Department of Finance / the Department of Parks & Recreation so that we can transmit that over to the appropriate sources to answer those questions? Chair Furfaro: Sure, I think that is a fair and reasonable request. But I also want to let you folks know that the way I posted it, it is Credit Collections and Merchant Services. I think the question on credit directed to you folks is how do we reconcile from vendors, their daily receipts and the fact of the matter is that there is a summary sheet, as Mr. Hooser is speaking about that we can reconcile to. Credit Collections and Merchant Services was the posting. But if you want us to backslash the Department of Parks & Recreation, we will do that, for the Golf Course anyway. JoAnn, you have the floor. Ms. Yukimura: Last comment, and this is more for the Mayor than for you. It is very notable that this thing had to be settled before the County Council. This is something that should have been handled by management. If you look at the history of this issue, and the Chair says it has been two (2) years, it is really kind of a black mark on the County that we have had to settle it this way. I hope that the Administration will take note and put forth some structural or management changes to make sure that this does not happen again. Thank you. Chair Furfaro: Posting here, Credit Collection and Merchant Services in particularly for the Golf Course. Any more questions? If not, gentlemen, it sounds like you have a plan to put in motion. I look forward to our mutual success in building more rounds at the Golf Course, especially as we look for new vendors to come to the table. If you can take some of those comments about eventually getting the rounds up, but being able to give them some incentive to take over the banking charges regarding rounds of golf and other revenue, I think it would be much appreciated. On that note, we 04-23-2013 Department of Finance (aa) Page 13 are going to take a break here and we posted for 2:30 the Office of Economic Development. But I am going to take a ten (10) recess now and if somebody could make a call out to my friend George over at the Office of Economic Development. We will start up again in ten (10) minutes. Thank you very much. Mr. Barreira: Thank you, Chair. There being no objections, the Committee recessed at 2:46 p.m.