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HomeMy WebLinkAbout1990 10 22 City Commission Regular Minutes .. 90-91-3 . REGULAR MEETING CITY COMMISSION CITY OF WINTER SPRINGS OCTOBER 22, 1990 The Regular Meeting of the City Commission of the City of Winter Springs, Florida, was called to order by Mayor Leanne M. Grove at 7:30 p.m. Roll Call: Mayor Leanne M. Grove, present Deputy Mayor Cindy Kaehler, present City Manager Richard Rozansky, present City Attorney Tom Lang, present Commissioners: Art Hoffmann, present Philip A. Kulbes, present William A. Jacobs, present Paul P. Partyka, present The invocation was given by City Manager Richard Rozansky and the pledge of allegiance to the flag was led by Deputy Mayor Cindy Kaehler. Motion was made by Commissioner Kulbes to approve the minutes of Oct. 8, 1990. Seconded by Commissioner Partyka. Discussion. Vote on the motion: Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Partyka, aye; motion carried. Motion was made by Commissioner Partyka to approve the minutes of the Special Meeting of October 15, 1990. Seconded by Commissioner Hoffmann. Discussion. Vote on the motion: Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Partyka, aye; Commissioner Kaehler, aye; motion carried. . Public Comment: Mayor Grove read the Proclamation proclaiming the week of Oct. 20th through Oct. 28th as Red Ribbon Week. Bill C. Crowther, Birch Terrace, spoke about the approval given to his neighbor to park his motor home at his residence, which is about 15 feet from Mr. Crowther's family room. This item will be researched. Mike Kocak, Mt. Laurel Drive, spoke about mosquito control; he asked about the super park and questioned the cost, the entryway, the maintenance for the park, patrols, snake and alligator infested area, insurance, and what the cost will be later on. He also spoke about the acquisition of Seminole Utilities. Joe Genova, Adidas Road, spoke about the park and the senior center. Raye Trencher, Winter Springs Boulevard, spoke on behalf of the Lionettes, the dance corps at Oviedo High School. They have been invited to perform at the Cotton Bowl in January and it is costing about $800.00 for each girl and there are about 30 girls that will be able to go. Mrs. Trencher asked if the City could give a donation. (During the General Agenda this will be placed on the agenda for action). General Agenda: Request of Winter Springs Development Joint Venture to locate temporary office trailer at 1301 Winter Springs Boulevard (northeast corner of Winter Springs Boulevard . & Northern Way): . Regular Meeting, City Commission, Oct. 22, 1990 Page 2 90-91-3 Don LeBlanc, Land Development Coordinator, said the Commission has his memo and Mr. Glenn Marvin is present. Mr. Marvin said the request was for no more than two years as they believe their activity may be concluded within the central core of Tuscawilla and they would be moving out to the 434 area. Motion was made by Commissioner Jacobs that we grant the request of Winter Springs Development not to exceed two years. Seconded by Commissioner Partyka. Discussion. Vote on the motion: Commissioner Kulbes, no; Commissioner Jacobs, aye; Commissioner Partyka, aye; Commissioner Kaehler, no; Commissioner Hoffmann, no; motion failed. Request for endorsement of Council of Local Government's appointment of Mayor Bettye Smith to the Seminole County Expressway Authority: Motion was made by Commissioner Jacobs to endorse the Council of Local Government's appointment of Mayor Bettye Smith to the Seminole County Expressway Authority. Seconded by Commissioner Kulbes. Discussion. Vote on the motion: Commissioner Jacobs, aye; Commissioner Partyka, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; motion carried. Motion was made by Commissioner Kulbes to place on the agenda providing funds for the Oviedo High School Dance Corps to take a trip to the Cotton Bowl for the New Year's Day celebration. Seconded by Commissioner Kaehler. Discussion. Vote on the motion: Commissioner Jacobs, aye; Commissioner Partyka, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; motion carried. . Motion was made by Commissioner Kulbes that we allocate $800.00 for the Oviedo Lionettes trip to the Cotton Bowl (L.C. 4800 Promotional expenses). Seconded by Commissioner Partyka. Discussion. Vote on the motion: Commissioner Partyka, aye; Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; motion carried. City Manager Richard Rozansky: Commerce & Industry Development Board: Ruth Smith, Chairman, spoke about the survey that was mailed and the response received. She spoke about the discussion by the Commerce Board creating a business to business directory which would allow the existing businesses in Winter Springs to network with each other, and would also be available at City Hall for the public. She said the Board would put it together and there would be a nominal charge of two or three dollars per participating business. Mrs. Smith said it is targetted for availability for January 1991. The Commission was in agreement to allow the Commerce Board to compile the business directory. Reports have been distributed. Commission Seat V - Paul P. Partyka: Commissioner Partyka asked about the settlement agreement and the special taxing district. He also asked about the MSTU. Manager Rozansky said he discussed the maintenance of the median with Glenn Marvin this week. The agreement where they had agreed to take care of the median runs out Oct. 31st. Manager Rozansky said he reminded Mr. Marvin that he was trying to get it extended to Dec. 31st. . . Regular Meeting, City Commission, Oct. 22, 1990 Page 3 90-91-3 Manager Rozansky asked if it would be acceptable to the Commission if he tried to get Mr. Marvin, some of the homeowners, representatives from the golf course and himself to sit down to discuss the maintenance of the median. Commission was in agreement. Commission Seat I - Cindy Kaehler: Commissioner Kaehler reminded everyone of the meeting on Tuesday, Oct. 23rd, 7:00 p.m. for the park property for all volunteers. Commission Seat II - Arthur Hoffmann: Commissioner Hoffmann spoke about a customer of Winter Springs Water & Sewer East who had his water turned off. Commission Seat III - Philip A. Kulbes: Commissioner Kulbes reported he had attended a solid and hazardous waste seminar and growth management seminar in St. Petersburg last week. Commission Seat IV - William A. Jacobs: Appointment to Board of Adjustment: Commissioner Jacobs recommended that Frank Adams, 502 Murphy Road, be appointed to the Board of Adjustment. . Motion was made by Commissioner Hoffmann to ratify the appointment of Mr. Frank Adams, 502 Murphy Road to the Board of Adjustment. Seconded by Commissioner Partyka. Discussion. Vote on the motion: Commissioner Kaehler, aye; Commissioner Hoffmann, aye; Commissioner Kulbes, aye; Commissioner Jacobs, aye; Commissioner Partyka, aye; motion carried. Commissioner Jacobs said he has a statement he would like read into the record in reference to his investigation of the acquisition of Seminole Utilities. To the Mayor and my fellow Commissioners: You are well aware that I have been on record countless times questioning the validity and timeliness of the acquisition of Seminole Utilities. As you know, I have expressed on numerous occasions my deepest concerns about the steps taken to acquire the utility. I continued to be just as vocal after the closing, and con- sequently started my own investigation after a number of delays in getting answers to my questions. It all began when the City Attorney failed to answer my question satisfactorily about a $25,000.00 expense that was noted as a deduction from the underwriters (Donaldson, Lufkin & Jenrette) proceeds as a deposit. And my discovery that the city staff usurped its authority when including the Tuscawilla park property as part and parcel to the deal without the City Commission's expressed approval. This highly irregular delay raised serious questions and caused me to inquire if Florida Statutes Sec. 218.385 or 218.386 and 286.23 were met. I have not been given the courtesy of a reply from the City Attorney. further To this day . Then I requested that the acquisition team be at the August 13th meeting to . Regular Meeting, City Commission, Oct. 22, 1990 Page 4 90-91-3 answer a number of other questions I had in addition to resolving the issue of the $25,000.00 check. In my opinion, all I got was unsatisfactory answers once again, so I continued my research further to uncover the facts. Among the facts I uncovered and questions that still remain unanswered are: 1. Was the Commission deliberately kept in-the-dark about the facts surrounding the Topeka Group's signed Purchase Agreement to acquire Seminole Utilities for $6.5 million? 2. Were we misinformed about Seminole Utilities request for a 50% rate increase, when in fact no such formal request was ever made before the Public Service Commission? Was this a tactic to substantiate the value of the Utility? Did it unduly influence this commission to make a hasty decision to "close" before rate payers faced such increases? 3. If Topeka was willing to buy, and Seminole Utilities was willing to sell the utility for $6.5 million, how come we paid 12.3 million only 14 months later after first making an offer of $7.5 million in February of 1989? How could the price have doubled in just 14 months? In fact the total price we could end up paying for the utility could be in excess of $17 million. This represents $12.3 Million plus paying the seller $2400 for every ERC over 5500 up to 7500 that could cost the city an addition $4.8 million. . 4. Was the explanation to raise the service rates of Seminole to match the West side service valid or was it used to influence bondholders to purchase? We had previously been told that the utility was not bondable due to unfavorable conditions. With the rate increase plugged in, did that make a difference? If the utility would have cost us say $6.5 million, the same amount Topeka and Seminole agreed on, would the rate increase have been necessary? 5. How we acquired without legal authority, Tuscawilla park property, not in control of Seminole Utilities, from the Utility? And how come the Commission was not informed in a timely manner and kept up to date on this issue? Why did city manage- ment fail to inform us of a meeting held on January 11, 1990, where in fact discussion took place about the parks being included in the deal? The fact is the City Manager never brought to the Commission this important issue as the notes of the meeting clearly stated he would. Consequently, we have acquired property not consented by the City Commission. 6. How could the City expect complete objectivity and due diligence on behalf of this Commission by agreeing to have the seller's investment banker and financial advisor act as the City's financial advisor for the transaction? That's akin to hiring the fox to guard the chicken coup. To further complicate the issue, the seller paid our advisor for his services! While we saved around $150,000.00 by agreeing to this unorthodox arrangement with the underwriter, we did pay over $6 million more for the utility than Topeka had previously agreed to. How come? . 7. How come the City never got 3 independent appraisals for back-up to support the transaction, yet we relied on the seller's appraisals to justify the purchase price. By the seller's own admission, the record shows that the seller received a settlement . . Regular Meeting, City Commission, Oct. 22, 1990 Page 5 90-91-3 which exceeded the value as set forth by the seller's own expert appraisers. Why would the City's negotiators agree to pay in excess of the seller's appraised value? 8. Why has Coopers and Lybrand, the City's auditors, refused to answer my questions, after sending two certified requests, concerning full and complete com- pliance with Florida Statutes? 9. For all the work that was done on the City's behalf, how come Parker and Johnson et aI, never billed us for any City Attorney services, financial advisor services or bond council services from January 1990 to date? And for some unknown reason announced that they would not. Why not? Remarkably, the City has received no record of any services performed by the City Attorney and bond council on this transaction subsequent to January 1990, when in fact we all know work was performed. It is my understanding that we were to be provided with all the documentation for work performed related to the acquisition of Seminole Utilities. When can we expect itemized statements and supporting documents? If they don't want to charge us that's fine, but where are the records as to who did what and when. 10. How come we paid almost $6,000.00 to Rose, Sundstrom and Bentley for research and expenses to attend the August 13th meeting to brief the Commission on the background of the acquisition, which I strongly protested. But according to Coopers & Lybrand, the City Manager refused to pay them to answer my questions about compliance with Florida Statutes? . While some may dismiss these questions as trivial and attempt to make light of them, no one should ignore them as long as they remain unanswered. Too many important questions concerning the management, or should I say mismanagement of this transaction, leave one wondering if the taxpayers of Winter Springs got a good deal or a bad debt. What I cannot condone are those who in a position of appointed authority in public service failing to exercise due diligence of the public trust. Neither can I condone this same element from making decisions reserved for the elected body or withholding pertinent information from them. I feel there has been repeated attempts to hinder my investigation which made at times my inquires an exercise in frustration and futility. It is my opinion that this Commission may have been misled, given misinformation and or purposely misdirected as to what was relevant and pertinent to make an informed decision on the purchase of Seminole Utilities. At the time I voted for the acquisi- tion, and perhaps all my fellow Commissioners, we thought that the information we received up to that point was true and complete. Under further scrutiny, however, that appears to not be the case. While I believe the acquisition of private utilities are in the best interest of Winter Springs, I cannot support the manner in which it was presented to us and the possibility of paying over $17 million. Therefore, I believe it is in the best interest of the taxpayers of Winter Springs to have the Auditor General, or someone completely independent and not politically tied, take up where I left off in order to get to the truth and settle the matter once and for all. Respectfully submitted, Signed William A. Jacobs, City Commissioner, Winter Springs. . . . . . Regular Meeting, City Commission, Oct. 22, 1990 Page 6 Meeting adjourned 9:00 p. m. Respectfully submitted, ~:r: 114;; Mary T. Norton, City Clerk Approved: ,MAYOR 90-91-3