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2012.06.26_TC_Minutes_SpecialTOWN OF HIGHLAND BEACH MINUTES OF TOWN COMMISSION MEETING SPECIAL MEETING/ATTORNEY Tuesday, June 26, 2012 2.45 PM Mayor Bernard Featherman called the Special Meeting to order in Commission Chambers at 2:45 PM. CALL TO ORDER: Roll Call: Members present: Mayor Bernard Featherman; Vice Mayor Ron Brown; Commissioner Doris M. Trinley; Commissioner Dennis J. Sheridan and Commissioner Louis P. Stern. Also present: Town Attorney Len Rubin; Town Manager Kathleen Dailey Weiser; Special Attorney Lyman Reynolds; Town Clerk Beverly M. Brown; Finance Director Cale Curtis; Assistant to the Town Manager Zoie Burgess; and members of the public. Pledge of Allegiance: The Pledge of Allegiance was stated. 1. ADDITIONS, DELETIONS OR ACCEPTANCE OF AGENDA: Amend the agenda by including under New Business: "Cancellation of Regular Meeting of Tuesday, July 3, 2012." Amend the agenda by including under New Business: "Renovations to Town Commission Chambers and Police Department." Agenda accepted as Amended. 2. PUBLIC COMMENTS AND REOUESTS: No Comments received. 3. NEW BUSINESS: A) Consideration of Proposed Settlement and Funding Related to the Litigation in Town Commission Special/Attorney-Client Private Session June 26 2012 Paize 2 of 7 the Case of Dale S. Sugerman V. Town of Highland Beach, Case 2011CA015192 XXXXMP Filed October 3, 2011. Town Attorney Rubin — As the Commission is aware, the former Town Manager Mr. Sugerman did file lawsuit against the Town and individual Commissioners alleging a breach of contract and a violation of civil rights claim. The insurance carrier did appoint an insurance counsel, Mr. Lyman Reynolds to defend the matter. You have had several closed Attorney/Client Session meetings with counsel to discuss potential settlement. During those discussions it was decided, that the Town would share in the payment of any settlement that was reached on a two to one or one-third, two -third basis. Mr. Reynolds has negotiated with counsel for Mr. Sugerman and these negotiations have resulted in settlement of $215,000 with the Town being responsible for $70,000 of that $215,000. The item before you today is a request for approval of that settlement amount and to authorize payment of the $70,000 to counsel for Mr. Sugerman. Mr. Reynolds is here to answer any questions since he and Mr. Torcivia were involved in the settlement. DISCUSSION: Commissioner Stern - I have no comment at this time. Commissioner Sheridan — I have no discussion but I would personally like to give you my viewpoint on this particular case. Let me say that when this case originated I was very involved in Town government, I was not a Commissioner but very involved in Town government and with the Commission. I remember vividly that when the Commission instructed Mr. Sugerman very clearly as to what discipline action should be taken regarding the Town Clerk, he insisted on his own decision and was totally insubordinate of the Commission. The Commission decided to relieve him of his duties, agreed to pay him his full salary plus benefits for the duration of his contract. I personally feel he should not have gotten a nickel and I strongly oppose him getting anything additional. However, in the best interest of the former Mayor and the two Town Commissioners involved and in order to clear their names as well as the Town, I will regretfully agree to the settlement of $215,000 with the understanding that these three Commissioners as well as the Town be completely exonerated from any and all claims arising from this action. Vice Mayor Brown — I also observed it and for the good of the Town I think we should press on and put this behind us. Commissioner Trinlev — Well I am one of the two Commissioners involved. I, too, regret that Dr. Sugerman is going to get any kind of compensation but I do want to thank Counsel, Mr. Reynolds and Glen Torcivia for their great effort on behalf of the Town and former Mayor Jim Newill, former Commissioner John Sorrelli and myself. Thank you very much. Mayor Featherman — I would say this, that we left this in the hands of our attorney and our insurance company as well and they negotiated a settlement which then should be complete. As far as what happened in the past, I was not a part of that so I don't know what happened. I Town Commission Special/Attorney-Client Private Session June 26 2012 Paize 3 of 7 do know that what Commissioner Sheridan has said is probably the feeling of all of us here. However, we were sued, we negotiated a settlement and now it is done with. The money will be coming out of our fund that we have here of four and one-half million dollars approximately in our Reserve. So I do thank you very much for the work you have done. From the Town's viewpoint I think we should move onto other things right now. MOTION: Vice Mayor Brown moved that the Town Commission authorizes the $70,000.00 settlement payment for the case involving Dale Sugerman, Commissioner Stern — I will second that motion. Town Manager Weiser — Just a clarification, that in your motion it is to approve the use of the Reserve Contingency Account for the settlement of the Sugerman case in the amount of $70,000. Both Vice Mayor Brown and Commissioner Stern greed to the correction. Roll Call: Vice Mayor Brown Yes Commissioner Stem Yes Commissioner Sheridan Yes Commissioner Trinley Yes Mayor Featherman Yes Motion passed with a 5-0 vote. B) Cancellation of July 3,2012 Regular Meeting. MOTION: Commissioner Stern moved to cancel the July 3, 2012 Regular Commission Meeting; seconded by Vice Mayor Brown. ROLL CALL: Commissioner Stem - Yes Vice Mayor Brown - Yes Commissioner Sheridan - Yes Commissioner Trinley - Yes Mayor Featherman - Yes Motion passed with a 5-0 vote. C) Renovations to Town Commission Chambers and Police Department. MOTION: Vice Mayor Brown moved to move forward with the renovations to the Town Commission Chambers and Police Department as presented at the June 26, 2012 Town Commission Special/Attorney-Client Private Session June 26 2012 Page 4 of 7 Commission Workshop Meeting by Mark Marsh of Bridges, Marsh & Associates; seconded by Commissioner Sheridan. DISCUSSION: Commissioner Stern — In view of the fact that the building is antiquated and due to the fact that the Police Department is discombobulated, I do believe it is something we should go forward with. I would like somehow to put a number that we could live with, not a million dollars which is where it might end up, but a number closer to $750,000 by doing what is necessary to bring it down a little bit; whether it is in electronics, whether it is in furniture, whether it is in good bids. I am not comfortable doing the million dollars but I am very comfortable with three quarters of a million dollars and I think it is something we need to do and should do. Commissioner Sheridan — I agree, sir. Vice Mayor Brown — I think when I had the meeting with him I asked how could we decrease the costs and he said the only way we can decrease the cost is to decrease the square footage of any renovation we are doing. If we are going to decrease the renovation and square footage, why do it. I mean we have square footage back here sitting unusable. So I think that looking in the past and seeing what we did with our water when we redid the water and we tried to shave the expenses by cutting out a generator, I think we should give them the go ahead to do what he will be contracted to do and not try to save nickels and dimes. Commissioner Trinley — Do the majority of you think that this will result in an increase in millage? Commissioner Stern — I for one do. And if so we will become very, very unpopular in this Town at this time. Vice Mayor Brown — But I think if it is tied to a project that will benefit the employees and the Town, I am not so sure because if we increase the millage we are only talking about probably $200 per household which is very minimal. I am not sure we should consider the millage at this time but rather do we have the reserves to cover the cost. Mayor Featherman — At this time I have calculated out $70,000 that is going for the settlement on the suit; we have approximately $70,000 for the walkway. Commissioner Sheridan — Excuse me Mayor that is not in this budget. Mayor Featherman — I am not talking about that I am talking about what costs we have against our Reserve Fund. That is the only thing I am bringing out. And we have, let's say instead of one million dollars $900,000 that's $1,400,000 from our Reserve of $4,500,000. That leaves us with $3,000,000 and we do have approximately $800,000 deducted each year for the shortage we have so it brings us down to $2,200,000 give or take five percent. Times right now are very difficult out there. The economy is not good. Even our folks have come back from a meeting where a lot of local towns are under water deficit wise. We are not. We are very fortunate. We have good people; we are watching our budgets; we are keeping to it. I have concerns now about going ahead with a big project without looking at what we can do that was brought out maybe to cut back on certain amounts of footage because we will not be gaining more than about five or six seats sitting here right now with the new auditorium they are going to have set up for us. There is a room back there that has not been used. It used to be used by the Library and it is vacant back there. I really feel that even though we have plans and I respect the Architect who is well Town Commission Special/Attorney-Client Private Session June 26 2012 Paize 5 of 7 known and has a good view on it, we are entering into something where we may have a lot more money spent then we should spend at this time and that's my concern that I have. I go along with you Commissioner Trinley. We will be raising taxes because the millage has to be raised either way from what we are told to just maintain what we have; but if we are drawing down from these various costs we will end up, once we have this situation resolved if they go ahead with the building and renovation, we will have about two and a quarter million dollars in our Reserve which really if another year comes along and we have to draw down again we will really be below where we should be. So I really would like to see what our costs are first and I respect what the Commissioners have said. We want to do certain things here but it is not the proper time because of the economy right now to really go full blown on this. Commissioner Trinley — No, like you I just don't think this is the time particularly if we have to up the millage. Vice Mayor Brown — I disagree with your reasoning. We have the money in there right now and our money is not producing any return at all. The construction rates are the lowest they have been and right now is the time to do it. It needs to be done, so let's press on and do it and then if we have to consider other items at a different time, which we will, then let's consider that. Mayor Featherman — I know one thing and I will just end this right now that Financial Advisors say the best thing is to keep your money in tact right now in cash and not spend it. However, I will leave this up to you gentlemen and what we talked about and madam as to what we are going to decide on it. Vice Mayor Brown — Our Financial Advisory Board has said now is the best time to do our Capital Improvements because it's the cheapest time we will ever have in the near future. Mayor Featherman — Are there any other comments at this time? Commissioner Trinley — Can we add to the motion that we might vote on it today but wait and see what the FAB tells us? Vice Mayor Brown — I don't see that there is any, we have listened to the FAB and the FAB has said that now is the time to use our money for Capital Improvements. It is not the time to keep money in an investment because our investment is .08%. Commissioner Trinley — They said that? Vice Mayor Brown — Yes, they have said that. Roll Call: Vice Mayor Brown Yes Commissioner Stern Yes Commissioner Sheridan Yes Commissioner Trinley Yes Mayor Featherman No Motion carried with a 4-1 vote. Town Commission Special/Attorney-Client Private Session June 26 2012 Page 6 of 7 4. MISCELLANEOUS — ITEMS LEFT OVER: None 5. REPORTS — TOWN COMMISSION: A) Commissioner Louis P. Stern - No Report. B) Commissioner Dennis J. Sheridan - No Report. C) Commissioner Doris M. Trinley - No Report. D) Vice Mayor Ron Brown - No Report. E) Mayor Bernard Featherman - No Report. 6. REPORTS — TOWN ATTORNEY LEN RUBIN: No Report. 7. TOWN MANAGER KATHLEEN DAILEY WEISER: Since the July 3, 2012 Regular Meeting has been cancelled, just a reminder of the Special Meeting on July 17, 2012 to set the "Tentative Maximum Millage Rate." 8. PUBLIC COMMENTS AND REQUESTS RELATED TO ITEMS DISCUSSED AT MEETING• Carl Feldman — 3210 S. Ocean Blvd. What did you just vote on? How can you go ahead with the project? Don't you have to get BIDS first and then get authorization from the residents at a referendum? How can you spend the money? Are you going to get quotes to determine the cost? Then go to FAB to get bonding? What did you vote on? Vice Mayor Brown — All of the things you just said. We will have to go out for referendum. Get the FAB on board and look at contracts. Town Manager Weiser — Clarification regarding referendum. The Charter Review Board is considering changing the dollar amount, and we will have to wait for their recommendation to the Commission. 9. ADJOURNMENT: Mayor Featherman adjourned the Special Meeting/Attomey Client Private Session at 3:10 PM upon a MOTION by Commissioner Sheridan and seconded by Commissioner Stern. Town Commission Special/Attomey-Client Private Session June 26, 2012 Page 7 of 7 APPROVED: Bernard Featherman, Mayor Ron lhown, Vice Maw 4�1 Do ' M. Trinley, Commi i er Z—/ Dennis J. Shen , Commissioner 's . Stern, vommissioner Attest: Beverly M. B ", own Clerk Date: