A Monroe County Comptroller audit is criticizing the new operator of Jacobs Aquatic Center for its “omissions” and “mistruths” in its proposal to secure the job.
In addition, the audit report released this month cites serious deficiencies with repairs and maintenance performed at the community pool in Key Largo.
County officials say they’re enhancing oversight and transparency at the aquatic center, which features an Olympic-sized pool, shallow training pool and kids water park. It’s a popular spot for many kids learning to swim, older residents going for a swim or water aerobics and families enjoying a hot summer day.
In December 2023, Monroe County Parks and Beaches issued a request for proposals (RFP) to solicit vendors with expertise in managing and operating a community pool. A selection committee reviewed and scored each proposal.
An aquatics management company of 32 years, the Georgia-based StandGuard Aquatics Inc. (SGA) was chosen as Jacobs Aquatic Center’s new operator. The company began its duties on March 8, 2024 and can receive up to $495,800 under contract terms.
Auditors said the RFP required all vendors to respond to questions regarding their involvement in any lawsuits, claims, liens and whether the vendor was terminated from similar aquatic operations. SGA responded “no” to such questions.
Per the audit report, a simple internet search revealed otherwise.
“It appears SGA failed to disclose its involvement in reportable lawsuits, claims and clients. Also, SGA’s RFP response appeared to provide a misleading portrayal of the company’s credentials and financial situation,” the report reads. “Had Parks and Beaches staff and/or the Selection Committee conducted similar research on the vendors submitting proposals, they could have identified issues that the Selection Committee should have considered as part of their decision-making process.”
As for repairs at the aquatic center, Monroe County agreed to be responsible for any costs totaling more than $1,000. Any repairs over the amount must have a written quote, and major repairs must be approved by the Parks and Beach director and/or the county commissioners. Per the audit, SGA regularly took unfair advantage as pool operator by soliciting quotes from outside vendors for maintenance and repairs and submitted a competing quote at a lower price. In turn, it assured SGA would win the job.
The audit also noted deficiencies with the maintenance and repair performed, including the pool’s filtration system, of which SGA said it would not use subcontractors to complete the job.
“However, we found evidence that SGA did use a subcontractor to perform the work,” the audit report reads. “The subcontractor was not licensed to work in the state of Florida or Monroe County.”
The comptroller’s review also found SGA was failing to remit sales tax collected to Florida.
“The deficiencies in our audit uncovered raise serious concerns about SGA’s ability to effectively operate and manage JAC,” the audit report reads.
Auditors recommended county commissioners direct their staff to determine the effect SGA’s false statements and omitted facts may have on JAC and its operations.
“This includes determining the appropriate corrective action that is needed,” the report reads.
In response, the county said policies and procedures will be refined to strengthen the RFP and vendor solicitation process.
The county will also review SGA’s contract and clarify required licensure and regulator compliance and explore adjustments to fee structures, including potential increases for nonresident visitors to ensure its long-term sustainability.
The county also said it will exclude SGA from bidding on or performing maintenance or repair work derived from its own specifications. Parks and beaches has taken responsibility for soliciting and obtaining quotes for JAC maintenance and repair needs to prevent any conflict of interest.
As for remitting sales tax, the county says SGA is now collecting and sending that to the state revenue department for concessions and admissions, with quarterly reports provided to the county.
“Jacobs Aquatic Center is a tremendous asset to our community,” said County Administrator Christine Hurley. “We are committed to maintaining strong oversight of our contractors, implementing the audit recommendations, focusing on improving our procurement process and bidding process for repairs, and ensuring that it continues to provide safe, high-quality services to residents and visitors.”
In 1997, community members in the Upper Keys organized the nonprofit Upper Keys Community Pool Inc. The entity’s goal was to bring a community pool to the Upper Keys. In 2000, UKCP entered into a 20-year lease agreement with Monroe County whereby the county leased UKCP a parcel of land at the Key Largo Community Park. In return, UKCP agreed to construct a swimming pool and related facilities on the land along with agreeing to operate the pool and keep the pool and facilities open daily for use by the general public.
