A unanimous City Council voted October 10 to conduct its own, lead investigation of management and spending at Rye Golf Club, a City-owned facility.
By Jon Craig
A unanimous City Council voted October 10 to conduct its own, lead investigation of management and spending at Rye Golf Club, a City-owned facility.
The 6-0 vote, with one councilmember out of town, came as the public learned the Rye Police Department, and possibly other investigatory agencies, have begun probing alleged conflicts of interest and questionable spending by Golf Club Manager Scott Yandrasevich, who has been placed on a 30-day paid administrative leave.
The City Council agreed to hold a special meeting last Saturday morning. It went into closed executive session to discuss any sensitive issues including personnel. The City Charter gives the elected body authority to subpoena people and documents and the ability to hire independent auditors and investigators.
Earlier in the October 10 meeting, City Corporation Counsel Kristen Wilson said RPD is investigating and Police Commissioner William Connors has been in contact with the County District Attorney’s Bureau of Public Integrity. Mayor Doug French said the City Council would work cooperatively with the other agencies.
The Council decided to investigate after a dozen audience members suggested that City Manager Scott Pickup not have sole authority to oversee a City probe. The Police Commissioner reports to Pickup — and the City Manager recently hired a local, outside auditor to look at Golf Club spending.
It also was revealed at the Council meeting that tips for the Whitby Castle restaurant staff have not gone to waiters but to labor costs. Several Golf Commission members asked the Council to find out where the tips — conservatively estimated at $60,000 — went.
With the General Manager of the Golf Club on leave, the City Manager has stepped into the breach. At a special meeting of the Golf Club members and commission on October 15, Pickup proposed these major changes to the Club’s operations:
1. Member dues will not increase in 2013.
2. The Golf Club would stop using fund balance to finance losses. A small surplus was proposed.
3. RM staffing would cease to provide temporary help to the Club.
4. Every supplier deal would be made though public bidding via an RFP process.
5. All documents requested by members or through the Freedom of Information process would be made available on the City’s website as soon as prepared.
6. The Club would close the restaurant at Whitby Castle in January and February, except for special events, and subsequently be open on a four-to five-day-a-week schedule.
Asked if the Club was still paying RM staffing, Pickup said he is scrutinizing bills. He added, “We have events scheduled, but I don’t intend to pay any RM invoices until I can review the time sheets. Any RM bill I authorize for payment will be posted on the City’s website.”
Members shared a number of their concerns at changes at the Club this year which were not announced to members in advance, notably: golf cart charges for seniors went up 40% in 2012, 25% for all other members; and the member discount for dining at Whitby was 15% until this year when it was cut back to 10%.
When one member remarked, “We have to get back to where we were,” Commission Chair Rich Verille said, “Don’t think we’re ever going to get back to where we were. Things change.”
As far as the $300 food minimum instituted this year, one member suggested it be club-wide. Verille noted the minimum was set to get people to use the Castle. “Without the minimum, we’ll have to find the money elsewhere in the budget.”
At this and the previous Commission meeting, a number of residents suggested the responsibilities of Commission members need revision.
After being asked for their comment on the situation, Commission members expressed regret and, in some cases, apologized for contributing to the breach of faith at the Club.
Verille said, “I’m disappointed that we allowed this to slip through the cracks, but this is an opportunity for us to address member concerns and re-identify this place. We will get through this.”
Longtime Commission member Frank Adimari acknowledged, “A lot of good that has been done at the club the past few years has been diminished.” He added, “I hope we can find some common good. Membership, the building mean a lot to me.”
Fellow Commission member John Duffy said, “I’m very upset about what’s gone on here. I’ve lost confidence. Our questions to management were never answered. I think the charter needs to be changed on what our responsibilities are.”
One of the newest Commission members, Chris O’Brien, said, “I’m disappointed for the members. There has been no transparency. We’ve been led down the path. With a new role for the Commission, I think we can bring this club back together.”
The Golf Club budget will be discussed and reviewed again by members and the Commission next week. The proposed 2013 Golf Club budget, with nine pages of detail, is available on the City’s homepage under City News.
In other action, the City Council agreed to modify its Code of Ethics and require financial disclosure statements starting January 1. Mayor French said the Council wants to put together a subcommittee to suggest other changes at Rye Golf Club including whether the City should be running its restaurant.
Concerns about how Yandrasevich has been spending Golf Club and city taxpayer money began surfacing in June. He is away and could not be reached for comment.
As reported in the October 5 edition of The Rye Record, Yandrasevich has said overtime and part-time help are essential since he has only eight full-time employees. The club manager said the amount paid from January through August of this year — $1.654 million — was “not significant in light of overall costs.”
But $1.1 million of that total was paid to RM Staffing for whom Yandrasevich consults and his wife works. RM Staffing was created in 2007, the same year Rye Golf took over management of the 160-year-old Whitby Castle and hired temporary help.
Additional reporting by Robin Jovanovich