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HomeMy WebLinkAbout2006 02 27 Consent 407 Utility Fund Reserves COMMISSION AGENDA February 27. 2006 Regular Meeting Consent X MGR /DEPT. Authorization ITEM 407 REQUEST: City Manager requesting the City Commission to approve a supplemental appropriation from Utility Fund Reserves to fund settlements of storm related damages resulting from sewer system back-ups during Hurricane Charley. PURPOSE: To obtain City Commission approval of a supplemental appropriation from Utility Fund Reserves to fund settlements of storm related damages resulting from sewer system back-ups during Hurricane Charley. CONSIDERATIONS: On December 14, 2005 the City Commission approved settlement with seven homeowners (Rutherford, Biblioni, Mize, Almeida, Baker, German and Schollhammer) in regards to storm related damages resulting from sewer system back-ups during Hurricane Charley. Terms of the settlement included: 1. 10% of approved losses, plus 2. $2,500, plus 3. A pro rata share of$17,500 ($2,500 x 7) based on the proportion of individual's approved losses to the whole. Item I is funded by the City's insurance carrier, Florida League of Cities. Items 2 and 3 are funded by the City totaling $35,000. A funding source for the City portion of the settlement was not addressed during the December 14, 2005 meeting. On February 27,2006 an agenda item was presented to the City Commission (Consent Item no. 406) to approve a settlement with Mark and Elizabeth Walters. This settlement combined with the previous seven homeowners leave two parties, Smith and Camarano, not yet settled. An agenda item, with appropriate terms and funding requests, will be brought to the Commission at such time as a settlement is reached with these parties. FUNDING: Requesting Commission approve a supplemental appropriation from Utility Fund Reserves in the total amount of$35,000. RECOMMENDATION: The City Manager recommends the Commission take the following action: Approve a supplemental appropriation from Utility Fund Reserves in the total amount of $35,000 for funding of the City portion of settlements of storm related damages resulting from sewer system back-ups during Hurricane Charley with Rutherford, Biblioni, Mize, Almeida, Baker, German, and Schollhammer. ATTACHMENTS: 1. Excerpt from City Commission Minutes of December 14, 2005, re: settlement approval with original 7 homeowners. COMMISSION ACTION: CITY OF WINTER SPRINGS, FWRIDA MINUTES CITY COMMISSION SPECIAL MEETING - DECEMBER 14,2005 PAGE5 0F 9 Deputy Mayor Blake said, "The State of Florida schedule that I got today had eleven (11) fixed days in it." "I MAKE A MOTION THAT WE DIRECT STAFF TO CONSTRUCT A RESOLUTION THAT THEY UTILIZE THE SCHEDULE THAT WAS LISTED IN THE AGENDA ITEM, MONDAY, DECEMBER 12, 2005 UNDER THE STATE OF FLORIDA ADDING ONE (1) FLOATING DAY ONTO THE SCHEDULE TO EQUAL TEN (10) HOLIDAYS FOR 2006." MOTION BY DEPUTY MAYOR BLAKE. SECONDED BY COMMISSIONER McGINNIS. DISCUSSION. VOTE: COMMISSIONER KREBS: AYE COMMISSIONER GILMORE: AYE DEPUTYMAYORBLAKE: AYE COMMISSIONER MILLER: AYE COMMISSIONER McGINNIS: AYE MOTION CARRIED. REGULAR AGENDA REGULAR 300. Office Of The City Manager Requesting The Commission To Make A Final Determination Regarding The Settlement Of Storm Related Damages Resulting From Sewer System Back-Ups During Hurricane Charley. Mayor Bush referred to an email from the Walters family. Manager McLemore stated, "Act on the ones that are presented in your Agenda Packet - we will analyze that along with the others and bring it back to you for subsequent action." Mayor Bush opened the "Public Input" portion of this Agenda Item. Mr. Mark Walters, 1605 Little Sparrow Court, Winter Springs, Florida: spoke regarding his email and his insurance carrier and stated, "I recognize your comments - about keeping it in - pending, so I am not looking for a final determination. I realize you probably want to see that documentation from State Farm [Insurance Company] - and I'll get that to you as soon as possible." Manager McLemore said, "When he presents his information, then we have to get with our Insurance Company - go over the proof of loss." Mr. Mark German, 1608 Little Sparrow Court, Winter Springs, Florida: discussed a letter from Manager McLemore and a good faith payment. CITY OF WINTER SPRINGS, FWRIDA MINUTES CITY COMMISSION SPECIAL MEETING - DECEMBER 14,2005 PAGE 6 0F 9 Tape l/Side B Discussion continued with Mr. German. Ms. Teresa German, 1608 Little Sparrow Court, Winter Springs, Florida: spoke on damage to their home; and the amount of money declined by the Florida League of Cities. Mr. David Mize, 1607 Little Sparrow Court, Winter Springs, Florida: commented that the numbers on page 3 of the Agenda Item was incorrect. Deputy Mayor Blake pointed out that, "I think the Commission will agree that third column should equal the sum." Manager McLemore asked Mr. Mize, "Were you paid ten thousand dollars ($10,000.00) by the Insurance carrier?" Mr. Mize said, "Yes." Manager McLemore added, "Any of the items of which you were paid that ten thousand dollars ($10,000.00), were they also on your proof of loss to be paid for by the Insurance Company?" Mr. Mize said, "Yes." With further discussion on the Agenda Item, Manager McLemore said, "We can enter it into the Record of tonight - clarifying." Mr. Mize said, "Would it be an Addendum to this one to rectify this?" Manager McLemore said, "Through the Minutes." Discussion. Ms. Monica Rutherford, 1634 Winter Springs Boulevard, Winter Springs, Florida: spoke about the financial damage and the future resale of her property. Mr. Michael Camarano, 1609 Little Sparrow Court, Winter Springs, Florida: asked about the "Pending" status and that he was awaiting information from his Insurance carrier. Mayor Bush closed the "Public Input" portion of this Agenda Item. Manager McLemore said, "On page 3 of 3, those disputed numbers, [Mr. Jose] Bibiloni- ten thousand four [hundred] seventy three [dollars and] sixty five [cents] ($10,473.65) and adding across on [Mr. David] Mize would be nine thousand six hundred eighty four [dollars] and twenty six [cents] ($9,684.26)." Discussion. Commissioner McGinnis said, "I think the Insurance Company has been very fair. They have come to the table several times. They have made very good settlement offers. I think they need to be commended." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION SPECIAL MEETING - DECEMBER 14,2005 PAGE 70F9 Commissioner Gilmore stated, "I like the Settlement similar to item 2." Furthermore, Commissioner Gilmore added, "I would like to suggest that we consider five thousand dollars ($5,000.00) which Mr. German felt was an acceptable amount." Commissioner Krebs said, "I would support that Commissioner." Commissioner McGinnis said, "I would too." Discussion. Deputy Mayor Blake said, "In our quest to be fair and equitable, if the Commission wants to add additional monies, and frankly I agree that there are certain cases that puts the level where if we are going to put in the extra money, some deserve it more than others. I wouldn't change the base, twenty five hundred dollars ($2,500.00). I would recommend leaving that but then take the remaining portion which is - seventeen thousand five hundred dollars ($17,500.00) and divide it up by the percentage share." Deputy Mayor Blake added, "We are only talking about these seven (7) that we are recommending settlement for this evening, and divide those up by the percentage. II Commissioner Krebs stated, "I would go with what Commissioner Blake recommended." Tape 2/Side A Further discussion. "I WOULD LIKE TO MAKE A MOTION THAT WE ADOPT OPTION 2. WHICH WILL RECOGNIZE THE SETTLEMENT OFFER MADE BY THE INSURANCE CARRIER FOR TEN PERCENT (10%) - ADDITIONAL PAYMENT OF APPROVED LOSS WITH THE ADDITION OF THE OUT OF POCKET DEPRECIATION AND OTHER ELIGIBLE OUT OF POCKET EXPENSES FROM THE INSURANCE CARRIER AS HAS BEEN SHOWN. AN ADDITIONAL PAYMENT OF TWENTY FIVE HUNDRED DOLLARS ($2,500.00) TO EACH CLAIMANT AND AN ADDITIONAL PAYMENT OF SEVENTEEN THOUSAND FIVE HUNDRED DOLLARS ($17,500.00) FROM THE CITY - DIVIDED BY EACH INDIVIDUAL CLAIMANT'S PROPORTIONATE SHARE OF THEIR APPROVED LOSS." MOTION BY DEPUTY MAYOR BLAKE. SECONDED BY COMMISSIONER KREBS. DISCUSSION. DEPUTY MAYOR BLAKE ADDED, "JUST FOR CLARITY - THESE SEVEN (7) CLAIMANTS, THE RUTHERFORD'S, BIBILONI'S, MIZE, ALMEIDA, BAKER, GERMAN, AND SCHOLLHAMMER." CITY OF WINTER SPRINGS, FLORIDA MINUTES CITY COMMISSION SPECIAL MEETING - DECEMBER 14,2005 PAGE 8 0F 9 ATTORNEY GARGANESE SAID, "I'M SURE COMMISSIONER BLAKE IMPLIED TIDS IN HIS MOTION, BUT THERE IS ALSO A RECOMMENDATION THAT IS CONTINGENT UPON EXECUTION OF FULL RELEASES AND THERE IS A DEADLINE." DEPUTY MAYOR BLAKE SAID, "THE MOTION EMBODIED ALL THE TERMS IN OPTION 2. WITH THE AMENDMENT THAT I MADE AND YES, YOU ARE CORRECT." ATTORNEY GARGANESE SAID, "OKAY." DEPUTY MAYOR BLAKE SAID, "IN FACT, I WOULD AMEND THAT _ MAYOR, THIS WOULD BE AN AMENDMENT TO MY MOTION - ALL THREE (3) OFFERS ARE MADE CONTINGENT UPON EXECUTION OF AN APPROPRIATELY SIGNED - WITHIN TWENTY ONE (21) DAYS AFTER MAILING A CERTIFIED AGREEMENT VIA CERTIFIED MAIL OR A FULL RELEASE SIGNED AT THE DECEMBER 14, 2005 CITY COMMISSION SPECIAL MEETING." MOTION BY DEPUTY MAYOR BLAKE. SECONDED BY COMMISSIONER McGINNIS. DISCUSSION. VOTE: (ON THE AMENDMENT TO THE MOTION) COMMISSIONER GILMORE: AYE COMMISSIONER McGINNIS: AYE COMMISSIONER MILLER: AYE COMMISSIONER KREBS: AYE DEPUTY MAYOR BLAKE: AYE MOTION CARRIED. VOTE: (ON THE MOTION, AS AMENDED) DEPUTYMAYORBLAKE: AYE COMMISSIONER MILLER: AYE COMMISSIONER McGINNIS: AYE COMMISSIONER KREBS: AYE COMMISSIONER GILMORE: AYE MOTION CARRIED. Mayor Bush commented regarding discussions with Chairman Carlton D. Henley, Seminole County Board of County Commissioners and the Winter Springs Golf Course. Mayor Bush read a letter for the Record, from the City of Margate to Mr. Kip Lockcuff, P.E., Director, Public Works/Utility Department dated November 30, 2005. Mayor Bush added, "We appreciate Kip [Lockcuff] taking this action!"