Fort Walton Beach Council minutes — 02-23-2010 regular — reading text

of $5, 000 to release the liens on Lot 1, Grand Oaks, in Destin.  97 Regular Council 2/ 23/ 10 CODE ENFORCEMENT SETTLEMENT (CONT) Council questioned whether the offer could be rejected and a counteroffer given. The City Attorney advised that is in the purview of Council; however, if the offer is rejected litigation would result and the City has already engaged in foreclosure against Mrs. Godwin for several years. The City Attorney further stated that Mr. Lorenz, as the Code Enforcement Attorney, handles the foreclosure cases and it is his advice that this course of action be taken. Mr. Bolduc explained Staff is supporting this offer because a possibility exists that if not accepted, the City may lose the opportunity to collect additional monies in the future. Further discussion included the need for the Code Enforcement Attorney to be present at Council meetings when settlement and litigation issues are discussed. The Mayor opened the floor for public input. As there was none, the public input was closed. Mr. Reeves moved to reject the settlement offer of $5,000 from the First American Title Insurance Company, and to send Mr. Lorenz back with a counter offer. Mr. Holmes seconded motion. Council expressed their thoughts that $ 5, 000 is not appropriate for this particular case; that the City incurred $ 10,000 in demolition fees for one of the structures on the property; that this could set a precedent for future settlement offers; and that the title company was in error because when the title search was performed, they did not discover the liens and therefore, the City was not notified. The City Attorney suggested the motion include that Mr. Lorenz be given the authority to litigate. Mr. Reeves amended his motion to include giving Mr. Lorenz the authority to litigate. Mr. Holmes accepted the amendment. The Mayor called for the vote on the motion, as amended, and it carried unanimously with Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor (Seat 2 Vacant). Mr. Reeves requested that in the future, Mr. Lorenz be present to discuss his efforts with the City Council. MERRILL LYNCH LAWSUIT Discussion of a lawsuit against Merrill Lynch for General Employee Pension Fund losses. The Finance Director explained that the draft agreement from Beggs and Lane has been reviewed and it stipulates a fee between $ 410,000 and $ 445,000, depending on whether or not the litigation goes to court, and is based on estimated damages of $ 1. 3 million. In discussing the agreement with the City Attorney, the Finance Director stated the terms are common for this type of litigation, and the fund will still net between $ 870, 000 and $ 900, 000. The Finance Director continued that Beggs and Lane have requested the City's pension attorney, Jim Linn, work on the contingency fee arrangement, but Mr. Linn has advised he prefers not to. However, the City would still like Mr. Linn to monitor the lawsuit, which he is willing to do, and he would bill the City at his current hourly rate. Council discussion included the fees for Beggs and Lane as well as that of Mr. Linn. The City Attorney stated that due to the complexity of the case and that three law firms are involved, it would be wise for the City to engage the services of Mr. Linn and clarified he will not be involved in the actual litigation; he would monitor it per his existing hourly fee arrangement with the City. 98 Regular Council 2/ 23/ 10 MERRILL LYNCH LAWSUIT ( CONT) The Mayor opened the floor for public input. As there was none, the public input was closed. The City Attorney advised that the City can request a representative from one of the other law firms involved in the lawsuit, Levin Papantonio Thomas Mitchell Eschner & Proctor and Ledbetter & Associates, or Mr. Linn if they prefer, to present additional information in addition to the presentation that was given by Mr. Gregory Miller from Beggs & Lane on February 9. Consensus of Council was for Staff to request Mr. Linn address Council at a time when he is available. NWFLOC 2010 EXCELLENCE AWARDS Consideration of nominations to the Northwest Florida League of Cities ( NWFLOC) Municipal Excellence awards. The Mayor reported the NWFLOC is accepting nominations for the 2010 Municipal Official of the Year Award and the 2010 Community of Excellence Award, and the Florida League of Cities FLOC) is taking nominations in the categories of City Spirit Award, Florida Citizenship Award, and Environmental Stewardship Award. The Mayor asked Council if they wanted to participate in either or both programs, and what projects they wanted to nominate. Consensus of Council was to nominate the Chester Pruitt Park Renovation project for the NWFLOC City of Excellence Award and the Liza Jackson Streambank for the FLOC Environmental Stewardship Award. Staff will prepare the nomination forms to submit to the two organizations for consideration. SUPPORT FOR THE GOVERNOR STONE Consideration of support for funding a $ 300 sign for the Governor Stone Schooner. Mr. Garvie discussed funding for the Governor Stone Schooner to be docked at the Landing, including $ 600 to fund an electrical conduit which is necessary for a bilge pump and an informational sign at a cost of approximately $ 300.00. Mr. Garvie relayed the educational opportunity the vessel would provide for the City, and noted the problem with bringing the Governor Stone to the City is the lack of a detailed time frame by the Friends of the Governor Stone ( Friends) as to when the ship would be docked at the Landing. The Mayor opened the floor for public input. Dick Gercak, 214 Miracle Strip Parkway, and a member of the Friends of the Governor Stone Friends), guaranteed a minimum of two months in the dock area, and maybe more. Mr. Gercak noted that right now a definite time frame cannot be given because the City has not yet committed itself; however, the Friends is building their schedule for next year, and once everyone has committed, a definite schedule for next year can be given. 0 1 Brian Rosales, 412 Holmes Blvd., questioned the electricity and funding and noted the CRA's lack of support due to the lack of a commitment from the Friends as to when the vessel would actually be docked at the Landing. Doug Reed, 842 Santa Rosa Court, speaking as a downtown merchant and not as a member of the CRA, stated his feeling that this endeavor needs to be moved forward and noted the benefit it would provide to the City as well as the historical value, and urged Council to support the request. Regular Council 2/ 23/ 10 GOVERNOR STONE ( CONT) The City Manager verified the cost for the signage and power would be in the vicinity of 800. 00, and funds would come from the CRA account and not the general fund As there was no one else who wished to speak, the public input was closed. Mr. Garvie moved to approve funding at a cost not to exceed $ 1, 000 for the electrical outlet and instructional signage for the Governor Stone. Mr. Patterson seconded motion. Discussion ensued regarding the need for a contract with the Friends of the Governor Stone to address the logistics as well as liability issues. The City Attorney suggested an amendment to the motion that states funding be consistent with the City Code and state and federal laws as well as any liability issues regarding insurance for the City. Mr. Garvie noted his understanding that the vessel will be viewed by the public from the dock and not from the ship; therefore, there should not be a liability issue. Mr. Garvie amended the motion to include that funding is pursuant to the City code and state and federal laws, as well as insurance liability issues regarding insurance for the City. Mr. Patterson accepted the amendment. The Mayor called for the vote on the motion as amended and it carried by a vote of 4 to 3 with Reeves, Anderson, Garvie, and Patterson in favor and Holmes, Nabors, and Rynearson opposed (Seat 2 Vacant). NO COST CITY CEMETERY GRAVES FOR PERSONS KILLED IN LINE OF DUTY Discussion of No Cost City Cemetery Graves for Persons Killed in the Line of Duty. Mr. Patterson discussed his desire that the City adopt a resolution to provide, at no cost to families, cemetery graves to persons killed in the line of duty, which would include City police officers, firefighters, and active duty military, who reside in the corporate City limits. Mr. Patterson feels this would be a good way for the City to express appreciation to those who put their lives in jeopardy for the City and the country. Discussion included the vagueness of the term " line of duty" and whether it should be considered on a by case case basis. Mr. Patterson stressed his desire that the term encompass Fort Walton Beach police officers and firefighters who die performing their jobs, and any member of the United States military who is a resident of Fort Walton Beach. The Mayor opened the floor for public input. As there was none, the public input was closed. Mr. Patterson moved to authorize the City Attorney and City Manager to develop a resolution to provide for no -cost cemetery graves to those killed in the line of duty, and to define line of duty as Fort Walton Beach police officers, firefighters, and any member of the United States military who is a resident of Fort Walton Beach. Mr. Garvie seconded motion and it carried by a vote of 4 to 2 with Holmes, Garvie, Patterson, and Nabors in favor and Reeves and Rynearson opposed (Seat 2 Vacant). ESTABLISHMENT OF CITIZEN' S BUDGET COMMITTEE Discussion of the Establishment of Citizen' s Budget Committee. Mr. Patterson discussed creating a Citizen's Budget Committee to advise Council on budgetary decisions. Mr. Patterson feels this would give the citizenry an opportunity to study the budget and provide input on issues and to gain a better understanding of the budgeting process. 100 Regular Council 2/ 23/ 10 CITIZENS BUDGET COMMITTEE ( CONT) Mr. Patterson moved to authorize the City Manager to set a Citizen' s Budget up Committee of eight citizens of the City to examine the 2009 budget and come back to the City Council with suggestions and improvements. Mr. Garvie seconded motion. Council discussion included the undue pressure this would cause the City staff; that the budget is available to the public at any time; that meetings are held and the public has every opportunity to attend, as well as contact Council with questions; that only a few of the same citizens attend budget meetings or show an interest in the process; that it would be difficult to find eight persons to volunteer; and that it would not be a practical use of City staff. The Mayor opened the floor for public input. Brian Rosales, 412 Holmes Blvd., stated he agreed with Mr. Patterson' s sentiment and that there is an opportunity for input; however, Mr. Rosales stated he also agreed with the other comments and suggested