Date: September 23, 2013 To: S. K. Borges, Acting Chief Operating Officer From: Craig Trujillo
 – 
 CPA, Deputy Chief Auditor
ST
 
Tele: 860.757.9952
 
City of Hartford Keney and Goodwin Golf Courses Special Review I. Executive Summary
The purpose of this special review is to address concerns expressed to the Internal Audit Commission, from various sources, that numerous trees were
harvested from Keney and Goodwin Golf Courses by the City of Hartford’s (City) contracted operator, MDM Golf Enterprises
, LLC (MDM), with the  proceeds from the trees harvested being retained by MDM. Our review was primarily concentrated on the removal of trees from the golf courses in 2009 and to determine what necessary City and Governmental approvals were obtained to the cut down and remove trees; and, if the trees generated any revenue that should have been remitted to the City. It should be noted that 93% of the Keney Golf Course and 100% or most of the trees are located in the Town of Windsor, Connecticut and
subject to Windsor’s “Tree Warden’s” approval for the removal of trees.
Our review was concentrated on the Keney Golf Course. We physically toured the Goodwin golf course but did not see any evidence that trees were harvested Background In April 2009, the City entered into a five year Lease Agreement with MDM to operate and maintain the two City-owned golf courses: Goodwin and Keney. The lease stipulates that MDM was required to make and pay for over $2.4 million in capital improvements to both courses as set forth in
MDM’s 2009 bid which
cited extensive tree removal at Keney Golf Course. MDM engaged the United States Golf Association (USGA) North East
Region Green Section to perform a “Turf Advisory Service” for Keney Golf Course which was performed on July 2, 2009. The repo
rt cited two primary concerns with the golf course: the adverse/negative impact of trees and a failed drainage system. The USGA report goes on to say that shade from the trees was weakening the turf and slowing the ability of surrounding soil to dry. Trees were also impacting the original design intent of a number of golf holes and the way which the holes are played. The report gives numerous tree removal recommendations targeted at trees on the south and southeast sides of greens and in dense areas to improve air circulation. Dense shade and poor air circulation were cited as impacting many green and tee sights and the failed drainage on a number of fairways and green sites made the course unplayable and severely disrupted maintenance. In 2012, the City determined that MDM violated several terms and conditions of the lease agreement and exercised the cancelation option. However, MDM was permitted by the City to continue to lease the properties for the final 2013 calendar year golf season. According to the lease agreement, at the end of the golf season in October 2013, MDM must surrender to the City the properties
“in as good condition as the same were provided to the tenant”
. Scope
 
City of Hartford Keney and Goodwin Golf Courses Special Review
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The scope of our review included interviews with some Hartford (City) residents and the Keney Golf Course attendant, the Goodwin Golf Professional, the Director of the Department of Public Works (DPW), the Town Clerk, City Forester/Tree Warden, Corporation Counsel, City Treasurer, City Council members, MDM owner, Windsor, Connecticut Town Tree Warden, Connecticut Department of Energy and Environmental Protection Forester, Health and Human Services Department (HHSD) Director, License and Inspections, MDM hired logger and others. We physically inspected the entire 18 holes at Keney and Goodwin golf courses including clubhouses and out buildings and took photographs. We reviewed the Hartford Municipal
“Tree
 
Code” and the Connecticut “Tree Warden Statute”. We reviewed all four bids from golf course management companies responding to the City’s RFP in 2009
and the USGA Turf Advisory Report for Keney Golf Course and other pertinent documents. General Based on our work as outlined in this report, there is evidence that several hundred trees were cut down in Keney Golf Course at the direction of MDM,
the City’s contracted golf course operator, without the required written approval from the Wind
sor, Connecticut Tree Warden as outlined in Chapter 451, Section 23-59 and 16-
234 of the Connecticut General Statutes related to the “Powers
and Duties
” of town Tree Wardens
. Trees removed from Keney Golf Course, as evidenced by about 75 tree stumps; do not appear to be cited in the USGA report for removal. MDM contends that those remaining tree stumps were the result of downed trees from the severe October 2011 snow storm. However, the City Tree Warden
’s
reviews of aerial  photographs before and after the Octobe
r, 2011 storm, in the Warden’s opinion, prove
 otherwise. On September 18, 2013 MDM provided us with evidence from their insurance agent, that MDM was paid a $50,000 claim under their insurance policy for the removal of about 25 t0 30 trees damaged during the October 2011 snow storm. City Golf Course management oversight was also found to be severely lacking and as a result the golf courses fell into severe disrepair. MDM reported to the City in late 2011 that over $1 million in capital improvements were made to both Keney and Goodwin golf courses, however, MDM could not provide us with documentation supporting the capital improvement values reported to the City and City management did not verify that the improvements were made as reported by MDM. Furthermore, our inspection of the Keney property revealed that the conditions of the Keney Golf Course turf, cart paths, bridges and club house are in severe disrepair and in our opinion pose a health and accident risk to the public utilizing the facility. Our observations of the Godwin golf course, although not as severe, were similar. The City Council has appointed an 11 person task force made up of City employees and Hartford residents to determine what work is needed to be done on the properties and how the Golf Courses will be operated going forward including related controls over the operation and maintenance of the properties. The City also budgeted $5 million this fiscal year for repairs and improvements to the golf courses.
II. Results of Work Performed Tree Removal
The lease agreement with MDM stipulates that MDM is required to make and pay for $1.1 million and $1.3 in capital improvements to Goodwin and Keney golf courses, respectively,
as set forth in MDM’s 2009 bid which
cited extensive tree removal at Keney Golf Course. (See Capital Improvement section below). Based on the allegations mentioned above, we concentrated our review on Keney Golf course. MDM engaged the USGA North East
Region Green Section to perform a “Turf Advisory Service” for Keney
Golf Course which was performed on July 2, 2009. The report cited two primary
 
City of Hartford Keney and Goodwin Golf Courses Special Review
3
concerns with the golf course: the impacts of trees and a failed drainage system. The USGA report goes on to say that shade from the trees was weakening the turf and slowing the ability of the soils to dry. Trees were also impacting the original design intent of a number of golf holes and the way which the greens are played. The report gives numerous tree removal recommendations targeted at trees on the south and southeast sides of greens and in dense areas to improve air circulation. Dense shade and poor air circulation were cited as impacting many green and tee sights and the failed drainage on a number of fairways and green sites made the course unplayable and severely disrupted maintenance. MDM reviewed the work to be performed on Keney Golf Course in 2009 with the DPW acting Director at that time, now former Director, and the former DPW Parks Director/Acting Tree Warden. The DPW Director informed us that the town of Windsor Parks division was notified of the planned tree work through a series of emails, which we examined, and the town had no objections. The DPW Director then informed MDM that they could proceed with the work as outlined in the USGA report. (See Capital Improvements section of this report below for work performed by MDM). There is no evidence that the required written approval from the Windsor Connecticut Tree Warden, as outlined in Chapter 451, Section 23-59 and 16-234 of the Connecticut General Statutes related to the
“Powers and Duties” of town Tree Wardens
, was obtained prior to tree removal. The Windsor Tree Warden informed us that he had no knowledge of the tree removal work at Keney Golf Course and that he did not give his required approval to remove any trees. We physically toured the Keney golf course with the City Tree Warden, hired in 201, the Windsor Tree Warden, who served in that capacity for over 30 years with the town and a state of Connecticut Forester from the Energy and Environmental Protection Agency. Prior to the tour, we compared current aerial views of the golf course to the tree removal sites noted in the USGA report and it appears that the trees were removed accordingly to the best of our knowledge. We confirmed with the logger hired by MDM that his company felled about 200 trees at the direction of MDM over a three week  period. The cost to MDM for this work as per the logger was about $30,000. The logger informed us that MDM was not paid for the felled trees and the trees were not removed from the property. The logger also informed us that his company had the trees ground up on site using heavy shredding equipment at a cost to his company of about $8,000. The logger also informed us that there was an excavating company on site following up with stump removal. MDM informed us that the stumps were removed and the sites graded and hydro seeded, etc. leaving no traces of removed trees. During the tour we observed about 75 tree stumps throughout the Keney Golf Course which are the remnants of fallen trees. It appears that these fallen trees were not included in the USGA report. The State Forester and the Windsor Tree Warden, based on their observations, commented to us that amateurs cut the trees and the felling of them was dangerous and done in an unprofessional manner. MDM contends that those tree stumps were the remnants of trees that were fallen by the snow storm in October 2011, a storm that devastated the entire State of Connecticut. MDM informed us that MDM workers did the entire fallen tree cleanup work at their expense and that they would not incur the cost of removing the tree stumps nor did they have the remnants removed from the property. We found no evidence that the felled trees are still on the property. We had the City Tree Warden examine aerial  photographs of Keney golf course before and after the storm and the City Tree Warden informed us that it appears that the majority of those fallen trees were not a result of the storm which is in conflict with MDM contentions. On September 12, 2013 MDM provided us with a letter from his insurance agent that there was a large claim involving trees down on 17 holes at Keney golf course as a result of the October 2011 storm. MDM, on September 18, 2013, provided us with evidence from their insurance agent, that MDM was paid a $50,000 claim under their insurance policy for the removal of about 25 t0 30 trees damaged during the October 2011 snow storm. Also, the value of the felled trees was never established by City DPW management therefore no efforts were ever taken to recover any residual values. The cost to replace unauthorized felled trees, if any, could be several thousands of dollars each.
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