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HomeMy Public PortalAbout2008-02-19 AttorneyClient Session CASE 03-21932CA231 2 3 4 5 6 7 8 9 10 1 1 12 13 1 4 15 16 1 7 1 8 VIL LA GE OF BAL HARBOUR ATTORNEY/CL IENT SESS I ON BAL HARBOUR VILLAGE HALL 655 96 t h STREET BAL HARBOUR, FL OR IDA 33 1 54 TUESDAY , FEBRUARY 1 9, 2008 8:0 4 a.m . -9 :00 a .m . 1 9 Tak en before Mar y G. Stephenson , FPR , No t ary 20 P ub l ic f or the State of Flor i da 21 22 23 24 25 TAYL OR REESE AND ASSOCIATE S, I NC . (305) 444-7331 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 APPEARANC ES : COUNCILM EMBER S : HOWARD J . BERL I N , MAYOR JEAN ROSENFIELD , ASSISTANT MAYOR JOE L S. JACOBI MARTIN PA CK ER JAIM E M. SANZ VI L LAGE MA NAGER : AL FRED J. TREPPEDA VI LLAGE ATTORNEY : WE I SS SEROTA HELFMAN PASTORIZA COLE & BONISKE, P .A . BY : RICHARD WE ISS , ES Q. MIC HAEL POPOK , ESQ . 15 VILLAGE CLERK : 16 ELLISA HORVATH, CMC (PRESENT ONLY DURING PUB L IC PORTION) 17 1 8 19 20 21 22 23 24 2 5 TAYLOR REESE AND ASSOCIATES , I NC . (305) 444 -733 1 2 3 1 T hereu p on , the fol l ow i ng proceedings were had: 2 3 4 5 6 7 8 9 10 1 1 12 1 3 1 4 15 16 1 7 18 19 20 21 22 23 24 25 MAYOR BERLIN : I 'm call i ng t h is public meet ing to order . Cal l the rol l. MS. HORV ATH : Mayor Berlin . MAYOR BERL I N : Pre sent . MS . HORVATH : Assistant Mayor Rosenfie l d. ASSIST ANT MAYOR ROSENFIELD : Present . MS. HORVATH : Counc ilman Jacobi . CO UNC IL MAN JACOB I : Here . MS . HORVA T H: Co u ncilma n Pa cker . COU NCILMAN PACKER: Here . MS . HO RVA TH: Counci lm an Sanz . COU NCILMAN SANZ : P r esent . MAYOR BE RL IN: The time is now 8 :04 a .m . We are abou t to have an attorney/clien t sess i on in accordance w i th F lorida Stat u t e 2 86 .01 1 r egard in g the l it iga ti on styled Babak Ra h eb ve r sus Vi ll age of Bal Ha r bour , case number 03 -21932 CA 23 , Circui t Cou rt of t h e 1 1 th Jud i c i a l Di strict i n and for Miam i-D ade County , F l orida . T he session is es t ima t ed to l as t one ho u r and t he fo l low i ng p eop l e wil l be in attendance at this meeti ng : Myse l f , Mayor Howard Berlin, Assistant Mayo r Jean Rosenfield , Counc i lman Joe l TA YL OR REE SE AND ASSOC I ATE S , I NC. (30 5) 444-7331 1 2 3 4 5 6 7 8 9 1 0 11 12 13 1 4 15 1 6 17 18 19 20 21 22 23 24 25 4 Jacobi , Councilman Ma r t in Pac ker , Councilman Jai me Sanz, V il lage Manag e r Alfred Tr epp eda , Vi l lage Attorneys Ri ch ar d We i ss a n d Michae l Popok . These proceedin gs will b e recorded by a ce rti f i ed cou r t r e p orter a nd, a t t he conclusion o f a ll litiga t ion d iscussed , the transcrip t wi ll be mad e par t of t he pub l ic r e cord . Al l those indi viduals who I hav e not name d s h a ll lea ve the roo m at this ti me . (I ndividuals not named left t he room.) MR. WEISS : Good morn in g. We are here t o give you a brie f in g about the case that h as been fil ed, as yo u k n ow, against the v i l l age by Babak Raheb de aling w i th th e security dis t r i ct and in particular the assessment. By way of background an d just to re mind you , t h is i s bei n g record e d b y a court repo rte r . When the litigation is concluded, her transcript will be mad e p ub l ic . No rma ll y i n ou r execu t ive sessions, I wou l d be somewhat more o pe n with you regar di ng strategy in the case and o t h er things and t ha t is because no r mally when someone sues us for an accident or someth ing like that , that i s the e nd o f the l itigation . There n ever can be any more TAYLOR REESE AND ASSOC IATES , I NC. (305) 444-73 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 17 1 8 1 9 20 21 22 23 24 25 l itigation abo ut anybody fa l ling on th e sidewalk . I n t h i s part i cular case, there is a poten t ial that someone could sue in the fu t ure based upon t he same theo r ies. So, therefore, rather than go i ng thro ugh in a l ot of deta il , stra t egies about th e case and so forth and so on, we will j ust say t his about t he case , and with that preface, that we thin k we probably would win th i s case . 5 Ho wever, we fee l that the risks of losing this case, which would not allow us to collect t he assessments for the security distr i ct are t remendous. th i s case Th e r efore, if we were to totally lo se if you remember, this assessment was actually , this meth odo l ogy used was really deve l oped by A l an Gold, who is now a fe deral j udge . Th i s was years and years ago . I thin k you al l know th e histo ry of this. I n your orientation , I spent time with each of you talking abo u t all or some of this. Anyway, i t was de veloped by Alan Gold as a way to h e lp the residents in t he res i den t ia l a re a come up w i th their securi t y guard and pay for a security guard serv i ce . Without t his special assessment th er e is no TAYLOR REESE AND ASSOCIATE S , INC. (3 0 5 } 44 4-7 331 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 15 16 17 1 8 1 9 20 21 22 23 24 25 way f or them to force peop l e to pay for the security guard serv i ce . 6 So in this particular case , even though we feel t hat we would probably win if we continued to li tiga te, t h e downside risk , which wou l d be there wou ld be no way to pay f or security in the residential area, is very, very substantial . Sc in t his par tic u l ar case, we ha v e met wi t h Mr , Gabak. I s his f irst name Raheb or is his firs t na~e Ba bak? 111istAY0 1i. BERLIN : Baba k. MR., WEISS : Is that h is first name or second name? COONCI L MAN JACOBI : Second name. MR . WEISS: Mr. Babak . We have a sett l emen t t ha t we are going to recommend to yo u. The purpose of t his meet i ng is to go through in detail the settlemen t and to get yo ur fee ling s on i t . We h ave not comm it ted to the settlement, bu t to get your feelings on i t a n d t hen for you to give us some instruc t ions to go sett l e t he case . Assuming they ag r ee to the settlement, which they have te n t ative l y , I don 't have a ny th ing i n writing from t h em, then in the council meeting TA YL OR REE S E AND ASSOC IATES, I NC . (305) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 16 17 18 1 9 20 21 22 23 24 25 7 the settlement would be approved. MAYOR BERLIN : You have to go through the entire thing . MR . WEISS : I wi ll . MA YOR BERL I N : At t he public meeting? MR. WEISS : It will be in the consent agenda . COUNCILMAN JACOB I : I f you se t tle, how can you stop t he leak in the future? MR. WEISS : You can 't . COUNC I LMAN JACOBI : So i t's a lose l ose for us . MR. WEISS: The thing is this , I honestly feel that most of the peop l e living in t he security distr i ct realize the benef i ts of hav i ng th at secur i ty dis t r i ct. They r ealize t h at the price of the ir property , t he value of their property is significantly enhanced by having the ga t e ou t side, and t h e co n verse is tr u e , too, which is if there was no gate and no security guard , the va l ue of their properties wou l d really be diminished signi fi cantly. Although it is a pure judgment and your j udgmen t i s as good as or bette r than mine abou t the mentality in the resident i al area because I go TAYLOR REE SE AND ASSOCIAT E S , INC . (305) 444-733 1 1 2 3 4 5 6 7 8 9 10 11 12 1 3 14 15 1 6 17 18 19 20 21 22 23 24 25 in t here twice a y ear to loo k at t h e beautifu l f l owers or i f there i s a p roblem , but I do fee l 8 t hat we have won . I don't f eel l ike a pers o n tha t the typ ical r esident t ha t is inside ther e would like t o disrup t t h e system . their benefit . I don 't think it 's to COUNCILMAN JACOBI : But we h av e a lot of atypica l res i de nts. MR. WEISS : That is why when I lay out what the settlemen t is , it 's not a substantia l financial , we are not t alk i ng abou t a lo t o f mo ne y here . Wha t we are talk i ng about i s i s there a way to get --again , I have been here 2 5 yea rs . Th i s i s the first time that this l a ws u i t , which , you k now, we h ave been concerned a b out , has b een filed. If you go ano th e r fiv e or 10 or 15 years , u l t imat ely , if th ere is a prob l em , there is a problem , bu t this sort of g e ts r id of this par t ic ul ar case , Joel , and -- COUNCI L MAN JACOBI : How about admission of guilt , tho ug h? I me an MR. WEISS : Just the o pposit e. J ust the opposite. Actual l y , as pa rt of the set t lement, Mr . Babak is go i ng to basical l y acknowledge t he validity o f the way t h at we have done the TAYLOR REESE AND ASSOC IAT ES, INC. (30 5 ) 444 -73 3 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 assessmen t . MA YOR BERL IN: By the way --I 'm sorry to interrupt you , but he's our neighbor . It 's Babak Raheb . His last name is Raheb . MR . WEISS : I thought you told me it was Babak. MAYOR BERLIN: No, that wasn 't me speak i ng . That was somebody else. Ra heb is hi s la s t name . His name is Babak Raheb. MR. WEISS : to ge t it r i ght . That is why I asked. I wanted Mr . Raheb is going to acknowledge t he val id ity of, you know , the spec ial assessment and we will pu t in wha tev er language we can to deal with that issue . The fact that we hav e settled with him , you will see the way th a t we have st r uctured it , it 's I think somebody co uld say, we l l, we settled because you wanted to get rid of t he case . Well, t hat is true , but he 's agreeing here , he will agree i t 's val i d and also has ag reed, will agree to assis t us i n remedying the budgeting issue t hat came up at the l ast counci l meeting dealing w i th th e in surance . So that is sort o f where the case is . TAYLOR RE ESE AND ASSOCIAT ES , I NC . (305) 444 -7331 I 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 want to give you a littl e more. We are be i ng defended in this case by the insuranc e company and the insu ran ce company has pai d for all. Other than t he fac t that t he tru t h is the insurance company doesn 't really un d e rstand munic i pa l law t he way that we do . So , basical l y, what has been happening, in great part , David Wo l p i n has bee n writing a lot of the pleadings in this cas e and helping t he m beca u se they just don 't qui t e get i t. They don't j ust do this . They are more --t he y de al with other t ypes of cases. ASSIS TA NT MAYOR ROSENF IE LD : Were other cities involved in t heir private districts? Is North Miami invol ved? MR. WEISS : Let me jus t say the r easo n this is unus ual . The reason t his is unusual is because the streets are private. Tha t is t he reason th is is different . In other words , i f you take -- let 's say --I forgot what those islands are . ASSISTANT MAYOR ROSENFIELD : What about Keystone? MR. WEISS: Tho se are a l l pub l ic streets . So what they have do n e is estab l ished a specia l assessment district throug h t he coun ty . The other thi n g t hey did i s they established th at through a TAY LO R REESE AND ASSO C I ATES, INC. (305} 444 -7331 1 2 3 4 5 6 7 8 9 1 0 11 12 13 14 15 16 17 1 8 1 9 20 21 22 23 2 4 25 11 c ou nty process , not through a ci t y process . was d if ferent , and the way it was set up was So i t diffe r ent . T hose are t h e two main differ e nces . COUNC I LMAN JACOBI : You can 't stop them fro m coming in . MR. WEISS : T hey are not rea l secu ri ty d i s t ric t s . Th i s i s a real security --i n othe r words , if you go t o S u nset One or any of these islands , t he r e is a guar d ga t e there , b u t it 's not rea l l y a guard gate . You can go i n . ASSISTANT MA YOR ROSEN FI ELD : They can 't s t op me fro m goin g in . MR . WEISS : They can 't stop you f rom go i ng in . T hi s one i s private p r ope r ty , and th at is why it 's different, and i t was a l so don e mechan i ca l ly . COUNCI L MAN PA CKE R: However, i t is pr i vate pr oper t y , yet our p o l ic e depa rt ment goes in t here a nd can g i v e t i c k ets . Our g arbage men go in the re an d do t h e garbage . The mail can go in there . Now , is that w it h the express pe r mission o f t he gr o up ? MR . WEISS : Yes . T h ere i s an agree men t wh i ch I haven 't looked at i n a l o n g ti me , but th ere is an agreeme n t be t ween the c i v i c assoc i at i on and t h e vill a ge --Al , correct me if TAY LOR REESE AND ASSOCIATE S , I NC . (305) 444 -7331 1 2 3 4 5 6 7 8 9 10 1 1 12 1 3 14 15 16 17 18 19 20 21 22 23 24 25 I 'm wrong --but au t horizing the pol i ce and -- MR . TR EPPEDA : Yes, there is . COUNCILMAN PACKER: Is the police depar t ment compensated for going i n t o t his distr i ct? MR . TREPPEDA: Jus t t he r egular taxes . MR . WE I SS : Jus t by reg u lar taxes. COUNCILMAN PACKER: I n o t her wo rd s, they don't have the i r own securi t y car running aro u nd -- MR. WE I SS : I nside? COUNCILMAN PACKER: --ins i de? MR . TREPPEDA: No . Just like they patrol others as a zo ne . I t counts as a zone for t h e police departmen t to pa t rol just like they do on Collins Avenue. COUNCILMAN PACKE R : Even though i t's pr i vate? 12 MR . TREPP ED A: J ust like they do i n the Bal Harbour Shops. MR. WEISS : No, I wi ll te l l you that --no , I don't wan t to go in t o it, but you and I have discussed as part o f your o r ientat i o n my though t s about t h i s . I do th in k , for the record, that the TAY LOR REESE AND ASSOC I ATES , I NC. (305) 444-733 1 1 2 3 4 5 6 7 8 9 1 0 11 12 13 1 4 15 16 1 7 1 8 1 9 2 0 21 22 23 24 25 13 ac ti vities that the village i s conducting in there are defensib l e and we could discuss that at another time , but I do t hin k they are defensible . I don 't th ink i t 's as black and wh i te as l ike the po l ice can pat rol in your condo. COUNCIL MAN PA CKER : They do not. MR . WEISS: I know t h at , bu t i t 's not totally nar row and I can discuss this. ASS I STANT MAYOR ROSENF I ELD : All they do is dr iv e around the dr iveways. COUNCILMAN SA NZ : They go on the p rope rty. ASS I S TA NT MAYOR ROSENFIELD: They go on the property and drive around. MR. WEISS : In your condos? COUNCILMAN SANZ : I n all the condos . MR. WE I SS: They come on your pri vate proper ty ? MR . TR EPPEDA: The y do in every bui ld ing. MR . WEISS: Any t hi n g else or shou l d I keep go ing ? So the insurance company i s d efe nd i ng this case. They hav e done okay. Orig in al ly , they had authori ze d t heir lawyer to of fe r $25,000 t o Mr . Raheb to set t le t he case. I have real ly not gotten to the bo ttom of wha t happene d. Mayb e a TAYL OR REESE AND ASSOCIATES, INC. (305 ) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 1 3 1 4 1 5 16 17 18 19 20 21 22 23 24 25 14 change in t h e i n surance adjusters , maybe a change in who knows what , but t hey have signi f icant l y wit hdrawn fro m t hat position, and t hey have taken t hat money off the tab l e, alt h ough this sett l ement , you will see , t he way that they have done i t i s not really con t ingent upon them . ASSISTANT MAYOR ROSENF I ELD : When they offered the 25, did they actua l l y offer i t to him? MR . WEISS : Yes . ASS I STA NT MAYOR ROSENFIE L D : And he turned it down? MR . WEISS : Yes , because he spent , accord i ng t o him --what was t he number t ha t h e has u sed at least $100,000 , 50 , now it 's $1 00 ,000 on atto r ney's fees . MAYOR BERL I N : Repea t that. MR . WE I SS : How much d i d h e spend on attorney 's fees? He gave it to us . MAYOR BER LI N : I think he 's over a hundred . MR . WEISS : He s p ent over a $100 ,000 on l ega l f ees , and even though --by the way, I th i nk t hat Mr. Raheb wan t s to se t t l e this case . I th i nk he h as a very d i fferent relations hi p with the village t h an he had at th e ti me he fi l ed t his case , n ot near l y as contentious , much more TAYLO R REESE AND ASSOCIAT E S, I NC . (305) 444-733 1 1 2 3 4 5 6 7 8 9 10 11 12 13 1 4 1 5 16 17 18 19 20 21 22 23 24 25 15 constructive in terms of wha t he did with Surfside, and I have to tell you a lot of that has to do with the mayo r and the way he has been treated at the mee t i ngs and al l those things . I don 't know that he is really happy t o be involved in th i s lit iga t ion . He is l ooking for a way out of the l iti gat io n, sort of to be made whole, and to move on with his life . You wi ll see the settlemen t is quite unique wh a t we have come up with . You may not like it , but you wil l have to agree that it is uniq ue. Le t me go th r o ugh the settlement unless you have any more quest ions . We had a meeting with hi m. The mayor attended , and we all sat around and this is sort of what we came up with as something that he would be satisfied with. Keep in mind t hat when we walked into the meeting , he was looking for hundreds of thousands of dollars based, again, just on reimbu rs ement for the money he spent on t his case. COUNC I LMAN JACOBI : Wha t happened a t mediation? MR . WEISS : The media tion was horrible because, n u mber one , the first time , the insurance compan y t he first time of f ered him $2500. TAYLOR REESE AND ASSO CIATES , INC . (305) 4 44-7331 The 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 6 i nsurance company was very, very --has not been a good partner in this, and the second time they offered nothing, and i t was just --it was not a good --nothing really came out of it . We did our own sort of private mediation . T he mayor was very help f ul , and we had a meetin g with him , and I was there . Were you there , Michae l ? MR. POPOK: No . MR. WE I SS: I was there and h i s l awyer was there and in that kin d of setting, we d i d much better . CO UNCILMAN JACOBI: Is our insurance company going to drop us? MR. WEISS : We don't use them any more. COUNCILMAN JACOBI: That is an answe r. MR . WEISS: This is what we are recommending, and, again , i t's your dec isio n and, believe me , if you don't like it, then we w ill t ry something else, but this is what we are recommend ing. His fi r st real issue is the Kent Security contract. He doesn't like Kent Securi t y, and the first point of the sett le ment agreement is that we would rebid the Kent Securi ty contract . Award the n ew co nt ract based upon the competitive process. TAY LOR REES E AND ASSOCIATES , INC . (305) 44 4-7331 1 2 3 4 5 6 7 8 9 10 11 12 1 3 14 15 16 1 7 1 8 19 20 21 22 23 24 2 5 It is understood that while price is an issue, i t's no t the only is sue, and i t would b e considered by the vil lage. So, basically, the 17 village would go t hrough a compet i t i ve proce ss , which it would be our discretion as to wh o you choose, but it wo ul d be an open and compet itive process where other co mpanies can come in because they ha ve given h im a hard time. the details . I don 't know a l l COUNCI LMAN PACKER: I b elieve t h ere i s some so r t of confl i ct of inter est there because someone in there owns Kent S ec ur it y. MR. WEISS: He has a whole oth e r --yes. Th is would be an ope n process just l ike we se le c t anything . So we wo ul d go thr ough a bidding p roc ess. T hat was the first p oint. T he second p o i nt would be that basical ly , what we d id is we came up w ith a number o f $50 ,0 00. se ttl ement. That is the bottom line of thi s What we d i d is we divided i t basically into two parts. The first pa rt would be $26,000 from the vi l la g e us i ng securi t y dis t rict funds. There i s mo ney, extra money in the s ec uri t y distr i ct . this money i s not coming f r om ta xpayer money . TAYLOR REE S E AND ASSOC IATES , INC . (3 05 ) 444-733 1 So 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 1 6 1 7 18 19 20 21 22 23 24 25 18 It 's coming --- COlJNC I Ltf!tNr .ACOB I : F irom the i r own money? MR . WE ISS : --from their own mo ney . There is extra mo n ey in the security district, about $26 ,000. I don 't know how that money sort of built up in there. How did that MR. T REPPEDA: Lega l fees were budge t ed every year. MR. WE I SS : That we didn 't spend . COUNCI LMA N PACKER: I have a question then. Has the so-called --because from what I am t rying to determine , th e re is not really an organ i zation going on in there now . Have they been approached that if it is the ir money, have they been approached with a f i gure like this , that we a r e go i ng to take their money and give it also to Raheb? MR . WEISS: I hav e not talked with them. have not talked t o them. COUNCILMAN PACKER : I think that the re could be a very b ig backlash from them. MR. WEISS : I t h in k it's possible that you are righ t, bu t I think i t's possible -- I COUNCILMAN PACKER : I know if I wou l d be in TAYLOR REESE AND ASSOC I AT ES, INC . (305) 444-7331 1 2 3 4 5 6 7 8 9 10 1 1 12 13 1 4 15 16 17 1 8 1 9 20 2 1 22 23 24 25 19 the organiza t ion t here and I would h ear so me th ing like tha t MR. WEISS : The reason I disagree wi t h you is becau s e I fee l l ike i f I'm threatened wi t h losing my e n t ire gate and my en tire abi l i ty t o collect mone y, that if t here is 200 res i d e n ts -- is it 200 or 300? CO UNC I LMAN PAC KER : 261 I t h ink i t i s. MR . WEISS : My ma t h is not very good , but for a couple of hundred bucks , if I could get rid of this lawsu i t which threatens my who l e ability to hav e my g uard ga t e, I would be o k ay with it . You know , as pa rt of this , one of t he t hings yo u could as k u s to do is to go speak to Stuart Sobel and see what he t hinks abo u t it . COU NC I LMAN PAC KE R : I certainly would be MR . WEISS: I could go over this with him without div ulg i ng any a t tor ney client privi l ege . Certa i n l y , t he lawsuit is a matter of pub l ic reco rd and I could discuss i t with him. Sobel . COUNC I LMAN J ACO BI: I ag r ee with you . MAY OR BER LIN: What di d y ou agree with? COUNCILMAN PACKER : Ta l k i ng to Stuart MR . WE I SS : Abou t how the c i vic associatio n TAYLOR REES E AND ASSOC I ATES , I NC. (305) 44 4-7331 1 2 3 4 5 6 7 8 9 10 1 1 12 1 3 14 1 5 16 17 18 1 9 20 2 1 22 23 24 25 20 would feel abo ut tak i ng t his money out of their money t ha t th ey hav e be e n assessed and us ing i t . Co u nc i l man Pac ker suggested we h a ve a conversat i on wi t h Stuar t So bel about this. COUNC I LMA N PACKER : Tha t i s th e first p art . Wha t is the rest o f it? MR . WE I S S : The res t o f it i s , again , I am not p ulling punches here . Basically , it was a way t o get to the $50 ,0 00 . Tha t is what the t hing was. Basically, wha t we did was b ecause he has done some wor k over t he years for t he v i l la ge an d what we agre e d to do, what we propos e d to do is pay h im basically $2,000 a mon th as a consu l ting contrac t. COUNCI LMAN PACK ER : Wai t , wa it, wait . has done work for t he vil l age? MR . WE I SS : Raheb . Who COUNC IL MAN PACKER : What kind of wor k has h e d o ne? MR. WE I SS : He h a s do n e significant work as a p rivate ci tiz en straight eni ng out pr ob le ms w i t h S u rfs ide for t he vil l age . COUNCILMAN JACOBI: So if we g i ve h im t h at mo n ey , he g ets t axed on it and we ge t to write of f? TAYL OR REESE AN D ASSOCIATES , INC. {305) 4 44 -7331 1 2 3 4 5 6 7 8 9 10 11 12 1 3 14 15 16 17 18 19 20 21 22 23 24 25 21 MR . WEISS: It is a very good point , bu t t he vi l lage doesn 't pay taxe s . COUNC I LMA N PACK ER : Has there been any sort of a public record t hat he has been authorized to do work for the v illa ge? MR . WEISS : Oh, yes. Oh , yes . COUN C IL MAN SANZ : From way back . COUNCILMAN PACKER : Before my time . COUNCI L MAN SANZ : Before o u r ti me . MR. WEISS : It was a l l very p ub li c . ASSISTANT MAYOR ROSENFIELD: We as k ed him to see about t he c l os i ng of t he st r eets when they were closing the st r ee t s. MAYOR BER LIN : He helped us wi t h the Surfside closings. CO UNC I L MAN JAC OBI : lights . T hat and the street ASSIS TA NT MAYOR ROSE N F IELD : He real ly and tru l y took over that positio n . MR . WEISS : He d i d a good job . COU NCILMAN PA CK E R : Why wasn 't he paid at th e time? MR . WEISS : He was do i ng i t as a volunteer. COUNCILMAN PACKER : If h e did i t as a vo lun teer, wh y would then we go out on a limb now TAYLOR REESE AN D ASSOCIATES, INC . (305) 444 -733 1 1 2 3 4 5 6 7 8 9 1 0 1 1 12 13 1 4 15 1 6 17 18 19 20 21 22 23 24 25 22 and offer i t to him as payment for what he did as a volunteer? MR . WEISS : I 'll tell you I was very open with you about the reason for it, which is t he r e was a $50,000 number , and t hi s is the way we got to the $50,000 number , so COUNCILMAN JACOBI : It is better to mit iga te it o ut· than i t is to t ake i t d i rect l y f rom the t axpayer . This way we can just i fy i t . MR . WE I SS : So what the l a n guage says is that , bas i cal l y , he 's going to be helping the v i llage wit h plann in g i ssues and other issues of concern to t he village, cou l d be the b ea chwalk, could be the par ki ng lot, but he has been ve r y the thou ght was that th e mon ey is not being wasted . He has been very effective . ef f ective in working wit h Surfside . He was very Th at was just a way to get the nu mber on i t . fr ont w i t h you guys. I 'l l be ve r y up MR. POPOK: MR . WE I SS : Get some thing of value . I nstead of just giving him another $25,000 , we gave him $24 ,000 , we gave it to him in value . That was the second point or the thi r d po in t . ASS I STAN T MAYOR ROSE NF IE LD : Le t me ask the TAYLOR REESE AND ASSOC I AT E S, I NC . (305) 4 4 4-7331 1 2 3 4 5 6 7 8 9 1 0 11 12 13 14 15 1 6 1 7 18 19 20 21 22 23 24 25 23 question . If we do not se tt le a t this poin t , the suit g oes on and on ? MR . WEISS : Yes , it does . COUNC IL MAN PACKER : How far can i t go on ? I mea n , if t he j udge r ul es for the v i l l age , he can appea l ? MR . WE I SS : If the judge rules for the village , he can appeal. against the village -- COUNC ILM AN PACKER : If the judge ru l es We can appea l . MR . WEISS : --we can appeal . COUNCIL MAN PACKER : Why rush to a se tt lement? MR . WEISS : Why rush to a settlement? COUNCILMAN P ACKER : Yes . MR . WE I SS: The li t igat ion has been going on f or years . CO UNC IL MAN PACKER : It 's not costing us any more , is it? MR . WEISS : Wel l , the problem is the insurance company --we are insu r ed for da mages by the i nsu ran ce company -- COUNC I LMAN PACKER : All right . MR . WE ISS: --to some e x tent . The insurance company h as filed with t he co u rt , TAYLOR REESE AND ASSOC I AT ES , INC. (305) 4'44-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 24 intervened in the litigation because the insurance company when th ey ori g inally --do you know what a reservation of rights is? COUNCILMAN PACKER: No. MR. WEI SS: Reservation of r ights is t he duty to defend on be h a l f of the insurance company is greater tha n t h e duty to pay. So if they have an issue as to whether i t's actual ly covered under the policy, they defend the case, but they have a right to bill us bac k if it turns out there is, let 's say, no damages . So they fi led with t he cou r t a mo tion to i ntervene in t he litigat ion. MR. POPOK : Also I ha v e co rr espo nde nce with them. They have a very aggressive posit i on. MR . WEISS: T h at is why Michael is here who i s head of our l itigat i on. MR . POPO K: T hey have t aken a ve r y aggressive p os i tion . I f this is not a covered c l ai m, they wi ll sue t he village bac k to recover any payments in th e case . COU NCILMA N PACKER : I s th at why you dropped them? MR . WE I SS : Al, why did we actual l y end up changing? MR . TREPPEDA: J ust for a better pr ice with TAYLOR REE SE AND ASSOCIATES, I NC. (305) 4 4 4-73 31 1 2 3 4 5 6 7 8 9 10 11 12 13 1 4 1 5 16 17 1 8 19 20 21 22 23 24 25 on the t able righ t now? MR . WEI SS : At t he moment , I have not even ,i responded t o , 7500 . They had 2500 . T hey went 26 bac k to --they had 25 ,00 0 . The ad j uster changed . They went back to 2500 . Th en they went to 5 ,0 00 . Las t time I spoke to the guy, he was at $7,5 0 0, and I told h im --again , t he case , wh a te ver we get for t he guy , and I did --la st t i me I spoke with Mr . Raheb 's lawyer , he was appreciative that we had eve n got t en anyt h ing because they really d idn 't e xpec t anything. So I thi nk even the $7 ,500 , t h e case wi ll get se tt led because this is not continge nt upo n money from th e in suran ce company , bu t when I spoke to Mr . Accetta , who is his attorney , on F rida y and told h i m we had go t ten them up to $7 ,500 , they were very please d with that because t hey didn't really expec t any mo ney fro m t hem . COUN CI LM AN PACKER : So it 's 50 plus th e 7500 , approximate ly . MR . WEISS : I am going to do wh at I can to get more because we are u nder an obligation to get more . COUNCILMAN JACOB I : Is it 50 mon ey that MR. WEISS : No , plus , because he wanted TAY L OR REESE AND ASSOCIAT E S , INC . {305) 444-7331 1 2 3 4 5 6 7 8 9 1 0 1 1 12 13 1 4 1 5 16 1 7 1 8 19 20 21 22 2 3 24 25 27 more and t his was a way to say , listen, we'll tr y, but we are not ob l i g ated to spend a n y real money to tr y t o get thi s . We are not obligated to -- MR . POPOK : To li t igat e. MR. WEISS : to litigate over or go to arbitration , none of that. So whatever I get , I get , and he has agreed to be satisfied w i th that . ASSISTA NT MA YOR ROSENF IE LD : L et me ask o n e question. T he rebid di ng on the gate , if Kent comes i n t he lowes t, he's agreeable to accepting Kent? MR . WEISS: He is agreeable to an open process . I don 't thi nk he would li k e it i f Kent gets it , but he has a gr eed , basica ll y , t hat the vi l lage holds an open process with price being one consideration . ASSISTANT MA YOR ROSENFIE L D : What considerat i on is he l oo k ing fo r ? MR . WEISS : He is not looking for any, but we want to leave it open because the village may look for qua li ty , re l i a bility, insurance requi reme nts , all those things th at co me into i t . He wants an o p en process because I thi nk what Councilman Packer sa id is r ight . There i s this feeling that there is li ke a back room deal on TAYLOR REE SE AND ASSOCIATES , INC . (305) 4 4 4-7331 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 15 1 6 1 7 18 19 20 2 1 22 23 24 25 28 t his Kent Security inf lu ence th at he wants to get r id of . ASSISTANT MAYOR ROSENFIELD : We can't deny somebody just because they live in the district. MR. WEISS: No . He understands th at. I think he expects i t will be an open process and if we end up wi t h Wackenhut , we do . with Kent Security, that is -- If we end up ASS I STANT MAYOR ROSENFIELD: Those are the two? MR . WEISS: No . The re 1 s millions of others , dozens o f them. ASSIS T ANT MAYOR ROSENFIELD : We would advertise i t as open bidding. MR . WEISS: Yes . We wi ll advertise it . you guys use Demand Star? MR . TREPPEDA: No . MR. WEISS : There i s ways you advert i se. Do ASSIS T A NT MAYO R ROS ENFIELD: I just want to ma k e s u re . COUNC I LMAN SANZ : Do we have a con tr act wi t h Kent? MR. TREPP E DA : Yes, we have a contrac t currently. ASSISTANT MAYOR ROSENFIELD : How l ong i s TAY LOR REESE AN D ASSOCIATES , INC. (305) 444-7331 1 2 3 4 5 6 7 8 9 1 0 11 12 13 14 1 5 16 17 1 8 19 20 21 22 23 24 25 29 that fo r ? MR . TREPPEDA : I would have to look at it to see how much more t imewise . MR. WE I SS: We wou l d reb i d. Before we could cancel we would j u st probably rebid . The nex t item is the sett l emen t by the village is contingent u pon the insurance company dropping its claim aga i nst us for the legal fees t hat we talked about . I have spoken with t h e ins u rance company and they are agreeable to that, to drop p ing their claim against the v ill age . As part of the settleme n t agreemen t, p l aintiff wi l l --oh , on the cont r act. And this is sort of whe r e it's headed o n these things. What he 's l ook i ng fo r i s he gets h i s contract and for the vi ll age to say --he neve r r eally received any recognit i on from the village in terms of the wor k he did at Surfside . the mayor wil l, the day -- He is looking for when ASS I STANT MAYOR ROS E NF I ELD : We have . We h ave given him acc l a mations over and over again. MR . WEISS : Wel l , this is t h e way he fee l s. To me, with what was at stake here , t hese are very minima l kind o f --you k n ow , when we approve this contract t hat day, the mayor will say some nice TAYLOR REESE AND ASSO CIATES, INC . (305) 44 4-7331 1 2 3 4 5 6 7 8 9 1 0 11 12 1 3 14 15 1 6 17 1 8 19 20 21 22 23 24 25 30 th ings about, give him a plaque and that is it . ASS I S TANT MAYOR ROSENFIE L D: We have done that many times. MR . WEISS: He will dismiss his litigation with prejud i ce , will acknowledge the va l idity o f t he security distric t , the securi t y assessments and the validi ty of t he general ope r ation of the security prog ram , wh i ch is sign if ican t in terms of the poin t you raised, Joel . He wil l a l so ass i st in efforts t o remedy the budgeting i ss ue that came up la st week with the in sura nce . He has some lie ns on his property that were p ending pr i or to Oc t ober 1 s t , 2007 and those ge t released. COUNCIL MAN JACOBI : How much? MR . WE I SS : How much are t h ose, A l ? MR . TRE PPE DA: I h ave f or the year 1 0 ,500 . CO UNC IL MAN PACKER : Why should th ey be r eleased? It 's another $10 ,000 . MR . WEISS: It is part of the settleme nt . Again, t his is wha t is in front of you . CO UNC I LMAN JACOBI: Who put that? Did you discuss t h at? MR. WEISS : He asked for it . That is what TAYLOR REESE AND ASSOCIATES , INC . (305) 44 4-73 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 17 1 8 19 20 21 22 23 24 25 he asked for . ASSISTAN T MAYO R ROSENFIELD: Who put t h e liens on the prope rty? MR . WEISS: We did . What is it for ? MR . TRE PPEDA: For not paying security . MR. WE I SS: What h e d id was whi le the laws u i t i s pending, he said , I'm not paying my secur it y assessments . These are all security assessments h e has not paid . CO UN CI LMAN PACKER: Well , as long as he 's settling, he s ho uld pay back wha t he did n't pay . ASSIS TA NT MAYOR ROSE NFI ELD : Will he now pay fo r i t ? MR . WEISS: He will pay in th e fu ture . COUNC ILMA N JACOBI : Put th at i n wr iti ng . MR. WEIS S : We could put t hat back, b ut he's going to pay the assessments going forward. COU NC ILMA N PA CKER : I thin k he s h ould pay from the t i me the suit was started as long as -- ASS I STANT MAYOR ROSENFIEL D : T his has b een 3 1 goi n g on for how many years are we t alk i ng about? MR . WEISS : Four yea rs . ASSIS T ANT MA YOR ROS E NFI EL D: How much does this amount t o? TAYLOR RE ESE AND ASSOCIATES , INC. (305) 444-733 1 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 15 16 1 7 18 1 9 2 0 21 22 23 24 25 32 MR. WEISS: $10 ,000 . COUNCILMAN PACKER: Another $10,000 . MR. WE I SS: And then mutual releases by the parties. So I have to t e l l you that this is I want to make it very clear to you that, you know, this is not my decision t o make. What I wanted to do is br i ng to you some t hing which, you know, I 'm ob l igated as a lawyer when we try to negotiate something l ike this t o br i ng i t to yo u . If you don't li ke it , then jus t te l l us no and we wil l continue l itigating the case. There is no, you know, my ego no t invo l ved in t hi s . I will walk out of here either way . It doesn't matter . I f you don 't l ike the sett l eme nt , tel l me you don 't like the settlemen t . I 'm f i ne with it. We will j ust go on and litigate th e case. I mean did I forget something? MAYOR BERLIN : Yes . In i t em number three, the consul ting contract . Just you would add that it 's going to be draf t ed in accordance with ordinary customary -- MR. WE I SS: I think we have it here . we ha ve it . I t wi l l contain term i nat i on and normal stuff in t he contract that we have. TAY LOR REES E AND ASSOCIATES , INC. (305 ) 444-7331 Yes , 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 1 6 1 7 18 19 20 21 22 23 24 25 33 Aga in , I wanted to ma k e it c l ear, specially for you , Counci lman Packer, this is not --I 'm recommending i t because I t hink i t's a good dea l to get out of litigation, but if you don't l ike it , you don 't like it . Tha t is fine . COUNCI LMAN JACOBI : The red flag that is going u p as soon as we give him a consulting contract, every bo dy tha t i s MR. POPOK: The settleme nt agreement is a public document . COUNCILMAN PACKER: I thin k i t 's --let me ask you some thi n g. T he way the struct u re of the $910 is for everyone in the securi t y distr i c t , that was arrived at -- MR . WEISS: What is it? 9 1 0, Al ? MR. T R EPPE DA : 910 curren t ly. MR. WE I SS : Per year . MR . TREPPEDA : For every single fa mi ly home . COUNC IL MAN PACKER: For a s i ngle fam il y h ome . ASSISTANT MAYOR ROSENFIELD: Per year? MR . T REPPEDA: Yes, per year . COUNCILMAN PACKER : Let me ask you some thing. I t hink that is a very, very unfair TAYLOR REESE AND ASSOCIAT E S, INC. (305) 44 4-7331 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 15 16 17 18 19 20 21 22 23 24 25 way to do it . No w, that was done by t he vil l age or done b y their associat ion? MR . WE I SS : I t was recommended by their association and t h en implemen t ed by th e vi llage . COUNCILMA N PA CKER: Because I feel i t should be attached or so rt o f f ol lowin g the way Mi a mi-Dad e County assesses each particular p r operty. We are assessed o n the oth er side o f 34 the street that way. I can't see why --in other words, i f a house is si x mil li on dollars, eight mi l lion do ll ars, whatever i t is , I feel tha t this $910 is totally u nfair . You are go i ng to hear a l ot. I may be going out on a l imb , but f or a house tha t i s two m i l lio n dollars and a house th at is eight mi llion do ll a r s , I think there is no eq uity there, an d I thi nk if it 's possible af ter this settlement, it shou l d be -- MR . WEISS: We don 't need to do that . The village i s in fu l l contro l of the assessment method for the sec u r ity d i s t rict . If , as part of the next budgeting process , you , as a counci l , want to cons i der changing the assessment from a fixed fee , wh i ch was sort of based on what you wou ld do at a condo , I don't know. he re . TAY LOR REESE AND ASSOCIATES , I NC . (305) 44 4 -733 1 I don't live 1 2 3 4 5 6 7 8 9 10 11 12 13 1 4 15 16 17 18 19 20 21 22 23 24 25 ASSIS T ANT MAYOR ROSENF I ELD : We do by square footage when we do assessments . based on square footage. I t is COUNC ILMAN PACKER: That i s an assessmen t . I'm tal k ing about taxes . ASS I STANT MAYOR ROSENF I ELD: Thi s i s an assessment. T his is an assessment . MR . WEISS: The point I was making is if you want to change this as part of the next budgeting process , the council is free to change the method . We don't need pe rmi ss ion from anybody . It 's part to the council 's resolution 35 and ord in ances and we can just change it. If you want to go to an assessment method, if you want to go to a MAYOR BER L IN : Just to help the conversation, and t hi s is not t o argue one way or the o ther , but the concept has been debated extensively i n the past . MR . WEISS: I hav e heard it for 25 years. MAYO R BER LIN: There have been people on bo t h sides of the issue. J ust because the other side o f i t has not been exp re ssed, and I am not advocat in g one way or the o t her, but the arguments that I have heard to t he contrary is tha t the TAYLO R REES E AND ASSOCIATES , I NC . (305 ) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1 8 1 9 20 2 1 22 23 24 25 36 essential service that is being rendered, which is a secu rity gate, is ef fe ctively equal for all people . The size o f your house doesn 't rea ll y tr ans l a t e. The r e is peop l e who live in 1 0,000 square foot ho use s, a coup l e of two people, and there is a fa mil y of six that li ves in a tree and uses the gate more. People have debated it, and the same thing for people who live in the apartmen t s. E veryone is using the gate rel ative l y the same and that is where the argument is on t he other s i de say i ng it would be an unfair tax on a larger p i ece of property. MR. WEISS: My partner Michael advised me t hat the assessment method is r ea ll y beyond the scope of t he liti gation. So I wanted to get your question out and also get h is answer out, but it is really beyond the scope . But I wanted to tel l you that if yo u want t o change it, we can hav e t hat conversation . You can do it as par t o f your budgeting in October . ASSIS TAN T MAYOR ROSENFIELD: Just as a point of information, the assessment me thod as far as t he condo side is always in t he documen t s . or i ginal documen ts state how that would be TAY LOR REESE AND ASSOCIATE S, INC . (305) 444 -7331 The 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 7 1 8 1 9 20 21 22 23 2 4 25 37 assessed , and that has nothing t o do MR . WEISS: I know that , l et 's say, in Weston where everybody l i ves behind a gate, i t's a cost per house. Everybody pays exactly the same, whi ch is very similar, bu t , li sten , tha t is up to you and it's not part o f t he l i tigat i on . So, lis ten , the bottom l i ne of this is that there is a risk here that the security , the whole secu ri ty assess me n t process , t he abili ty t o collec t money cou ld brea k dow n. I am not te lling you that I don 't have any concern about tha t at all. I do have a co n cern abo ut it because the way i t was set up was somewhat unique . This is not a slam dun k, don 't worry abo u t it type of a case . I 'm also telling you for the record that I do th i nk that u ltimately we win this litigation . I feel that there is a likelihood that if we win the litigation, we could have a fig ht wi t h the insurance company over the amo u nt of money they h ave spent defending us i n this case , and we can end up with a b ill from the i nsura n ce company depending upon what hap p ens . another factor to consider. So th a t is sort o f I a l so wil l te l l you that I th i nk t h e b i ll from t he insurance company is going to be we l l in TA YL OR REESE AND ASSOCIAT ES, INC. (305) 4 4 4-7 331 1 2 3 4 5 6 7 8 9 10 1 1 12 13 14 15 16 17 18 1 9 20 21 22 23 24 25 38 excess of the money t ha t is in th is settlement , which goes back to the point that the insurance company has rea l ly put us in a very uncomfortab l e circumstance , but it 's no t al l that unusua l . ASSISTAN T MA YOR ROSENFIELD: How did we arrive at t he $26,000 number? MR. WEISS: We came up with $50,000, which was the s ta rting number. We came up with a $2,000 a month consu lt ing contract. ASSISTANT MAYOR ROSENFIELD: No, but how did you decide that only 26 ,000 would come from the security district? MR. WEISS: We didn't really talk about -- certainly, I don 't think that Mr . Raheb has any p r ob lem where a ll of it comes from. We d i dn 't really t a lk about that so much . You could determ ine as a council that it is all going to come fr om the security district . COUNCILMAN PAC KER : Let it come from the security d i strict . I t pertains to th em . Do they h ave that kind of money? ASSISTANT MAYOR ROSENFIELD: I don't know what kind of money they have . MR. WEISS : What do t hey have, Al? MR. TREPPEDA : The f u n d balance , I wou ld TA YLOR REESE AND ASSOC IAT ES, INC. (305) 444-7331 1 2 3 4 5 6 7 8 9 1 0 11 1 2 13 14 15 1 6 17 18 19 20 21 22 23 24 25 39 ha ve t o check what is t he fund balance . There is usua ll y a fund balance as we ll as what is budge t ed in the cu r rent year. MAYOR BERLIN : He re is wha t I 'm think in g of. Again, so it 's very clear for the record, I am a resident of the security district . can asc rib e whatever bias they wish t o my So people comments , but there were discuss ion s du r ing this p r ocess that the defendant in this case is the ci t y, no t the members o f th e security dist rict . The security dis t rict , as an entity , is not a de f endant . Th e c i ty is the defendant. So i t 's t he city 's li abi l ity. City. So a part of the concept, I be li e ve, in fashioning a set tl ement was to look to d if feren t pools of assets to sort of spread ou t the resul t and it is in my mind that it sou n ds fair , but that is j ust my -- MR. WEISS : You k now, as you raise that point, one point I f or g o t to mention . There i s a poss i b ilit y . I t h ink it 's remo t e . T here i s a possibili t y that if this thing ge t s throw n out, that t h e court orders the vi llage t o give bac k all t his money, years and years and years of money . It is ve r y re mote, but it i s possible that if the TA YL OR REESE AND ASSOCIATES , INC . (305 ) 4 4 4-733 1 1 2 3 4 5 6 7 8 9 10 11 12 13 1 4 15 1 6 17 1 8 19 20 21 22 23 24 25 40 court says that the whole security assessment process was done improper l y, and that whatever Alan Go l d set up was not lega l , the court could go back two, three, f our yea r s back and say, give back al l th e money that you col l ected. COUNCILMAN PACKER : There is no statute of limitations? MR. WEISS : That is why I said two, thr ee, four years because there would be possible applicable sta tut e of l imitations . MR . POPO K : It could be . I mean , there was a constitutional challenge in Miam i for the assessment b y t he C ity of Miami for parking. It was, I th in k, four yea rs. The Ci t y of Miami had to pay back four years of fees charged t o nonresidents. MR . WEISS: That is out t her e. I don 't want to rais e t oo strongly because I don 't t hin k i t's a huge possibili t y, but it 's out ther e. ou t th ere . It 's COUNC IL MAN PACK E R : My own --as the vice ma j or sa id , th is whole t h ing reall y resu l ts , basical l y, and I know th e mayor said they are not pa rty to the suit, the d istrict , but, basically, i t is b l ack and whi t e. It is the secu r i t y TAYLOR REES E AND ASSOCIATES, INC. (305) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 1 4 15 16 1 7 18 19 20 21 22 23 24 25 district 's . I personally think i t 's the security district 's responsibi li ty to take care of the ir 4 1 own gate. That is m y own personal viewpo i n t, t hat t h e city should have no --the village shou ld have no mi x. They should collect t h eir own money . They should pay eve r ything , and that is it . This was a legal , I would say --should I say mumbo jumbo , whatever was done years ago . I f they have more money in their k itt y , and then they came asking f o r $7 ,200-something a t the l ast mee t ing . MR . WEISS : Insurance. COUNC IL MAN PAC KE R : For ins u rance . T hey co u l dn 't use tha t money or appropr i ate it? MR . WE ISS : No. The issue is , aga i n , beyond this, b ut it's a security d i str i ct and they were l ooking t o what , $7 ,200 for MR . TREPPEDA : To lease the property. MR . WEISS : To l ease t h e prope r ty , yes. COUNC I LMAN PACKER : budgeted in the i r kitty? Did they have money MR. T RE PPE DA : The r e i s a continge n cy ju st f o r u nforeseen th i ngs tha t may come up . CO UNC IL MAN PAC KER : Where i s this 26 ,00 0 TA YL OR REESE AND ASSOCIATES, IN C. (305) 444-733 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 7 18 19 20 21 22 23 24 25 4 2 coming fr o m? They have monies put aside? MR. TREPPEDA : T he balance of legal f ees th a t were budgeted ove r the years . MR. WEISS : The y don 't have any money. COU NC IL MAN PACKER: Oh , they don 't have a ny mo ney. MR. WE I SS: Aga in , just to re v ie w th e way t his works is th at t he v i llage collects , asse sses . The vi l lage collects the money and the vi ll age has th e money. It doesn't go to t he civic associa t i o n . It 's in the ban k accou nts of the village and the village then writes a check to Kent Sec u ri ty and writes a check for the e l ec tri ci ty for t he g uardhouse , I 'm assum i ng , and it writes t he check to l andscape t he are a around the gua rd house . So the c i vic association , this money does not go the civic associa ti on . v il l age ha s the money . T he COUNC IL MAN PACKER : But d i vided it down betw ee n the 26,000 and 24 ,000 MR . WEI SS: But t he vill ag e has sepa r ate accounts. So t he 26 ,000 would co me fro m the separate securi ty dis tr ict account. COUNC IL MAN PACKER: Sec u rity dist r i ct accou nt . TAYLOR REESE AND ASSOCIATES , INC . (305) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 16 1 7 18 19 20 21 22 23 24 25 43 MR . WEISS : A n d the 24,000 was contemplated wou l d come f r o m t he genera l fund . COUNC I L MAN PACKER : Is t here mo re money in that security district accoun t ? T h at is what you sa i d you would have t o look up? MR . T RE P P E DA : Yes. COUNCILMAN PACKER : That account , whic h basical l y i t comes from t he security dis t r ic t , I would think they shou l d bear most of t h e r espons i b ili ty . MR . WEISS : O t her counci l persons? ASS I S T AN T MAYO R ROSENFI E LD : This appears to be pr obab l y the best we are go ing to get . COUNCILMAN JACOB I: Ma k e sure you put if we agree to it, yo u shou l d pu t language in t here from now f o r ward he has t o pay his assessments . MR . WE I SS : I made a note of th at. ASSISTANT MAYOR ROSE NFIELD : Now forwa r d or backwa r ds? CO UNC I L MAN JACOB I : I t would have t o be from the date of settlement f orward . MR . P OP OK : Which would be cons i s t en t with the co n t i nued assessments . MR . WE ISS : Correc t. COUN C I LMA N SANZ : I th i n k we s h ould ju st TAYLOR REESE AND ASSOC I ATES , I NC . (305) 4 44 -7 33 1 1 2 3 4 5 6 7 8 9 10 11 1 2 13 14 15 16 17 18 1 9 20 21 22 23 24 25 44 put a stop to it , just end i t now, because since I came in, this has been going on. I mean , we are in our third year now and that means --I don 't know if it was two years prior to t h is and it 's been ongoing so i t gets bigger and bigger with l awyer's fees and everything. By the time we settle with him , we are going to lose more money. COUNCILMAN JACOBI: How much per ye ar do we collect from Mr . Raheb for assessment? MR . WEISS : 910. COUNCILMAN JACO B I : How much does i t add up fr om the time it started? MR. WEISS: Al, do you know? MR . TREPPEDA: What was the question? MR. WEISS : What is i t? You are asking how much t he liens are , Joe l? MR. TREPPEDA: This is years ago, not just the t hree year period . The l awsuit has been three years, b ut he hasn 't been paying for years. COUNCILMAN JACOBI: How l ong has he been in the community for? COU NCILMAN PACKER : I t 's almost five. MR. POPOK: I t's an '03 case , which m eans i t was filed in '03 . COUNCI LMA N PACKER : $4,500. TAY LOR REES E AND ASSOCIATES , INC . (305) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 1 4 15 16 17 18 19 20 21 22 23 24 25 ASSISTANT MAYOR ROSENF I ELD : He stopped paying before that . MR . TREPPEDA : Righ t. ASSISTANT MAYOR ROSENFIELD : What did the city do during the time he didn't pay? MR . WE I SS: We liened his property . ASS I S TANT MAYOR ROSENFIELD: Is tha t the only l ien we h ave ever done in that security distr i ct? MR . T REPPEDA: No, there are mo re. ASSISTANT MAYOR ROSENFIELD: For nonpayment? COUNCILMAN PACKER : So, i n other words, if 45 there are other peop l e who have l i ens against them , that is go ing t o set a preceden t that t he re are l iens against other people 's prop e rty i n there. You d i d i t for him , do i t for us and then we will start to pay. ASSIS T ANT MAYOR ROSENFIELD : How many are there? COUNCILMAN PACKER: Are we prepared to do that? MR . TREPPEDA: There aren't many l iens. ASSISTANT MAYO R ROSENF I ELD : Is it two or is it ten? TAYLO R REESE AND ASSOCIAT ES , INC . (305) 4 4 4-7 331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1 8 19 20 21 22 23 24 25 MR . TREPPEDA: I t 's probab l y, I would just guess, maybe f i ve at the most . ASS I STAN T MAYOR ROSENF I ELD : How long have those liens been? MR . T R EPPEDA : It 's be e n for yea r s . ASSIS TAN T MA YOR ROSENF I ELD : P eople have li ved there f or five , ten years -- MR . WE I SS : We coll e ct t he money when t hey sell the house , then we get our money . MR . TRE P PEDA : Correct . MR . WEISS : T he other th i ng you can do is 46 i f you are concerned about the precedent, you could take t he a mount of these liens , i ncrease the $26 ,000 by the amount of the liens a n d have him pay eve r ything off . I don 't know how much --what did you say , it 's 1 0 ,000? MR. T REPPEDA : 10 ,500 is the last number we have . MR . WE IS S : If you were concerned about t h e p r ecedent and try to settle t he th i ng and not deal, basic a l l y , you have him paid more and then pay the lien . COUNCI L MAN JACOB I: T ha t is a good so l ution . COUNCILMAN PACKER : Is there any way that TAY LOR REES E AND ASSOC I AT E S , INC . (305) 444-7331 1 2 3 4 5 6 7 8 9 1 0 11 12 1 3 14 1 5 1 6 1 7 18 19 20 21 22 23 24 25 47 we can maybe re quire t h e association maybe t o bac k off th is whole --once this is done -- MR . WEISS : Yes . COUN CI LMAN PACK ER : --have t h e assoc iatio n monitor their own affairs and l et 's ge t th e vil l age out of i t . MR . WEISS : We ll , we ca n have a l ong co n ve r satio n abou t i t, and I think, honestly, th a t if you spo k e to everybody there , they would l ove to . The p r ob l em is that when you set up a condo l ike you have , i n t he condo documents and th ere are s tate statues that dea l wi th this , t he condo associatio n has the ability to l i en condos and to assess peop le . Beca u se they were se t up -- original l y , t his was like a northern vacat i on co mmun i ty . I t was not set up as a vil l age to begin w i th , and tha t area was not set up as a condo associa t ion . I t 's just a c ivi c assoc i ation . The prob l em t hat they have i s t h ey don 't ha v e any abili t y to assess their people and force them to p ay, and that i s wh y t his whole th in g came abou t . We t alked about that , remember , in t he orientation . T ha t is why t h is came about . So the prob l em is that they wou l d be I think nobody would be ha ppi er than t hem to be r id TAYL OR RE ESE AND ASSOC IATE S , INC . (305 ) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 16 17 18 19 20 21 22 23 24 25 48 of us . The problem is th at they have peop le t h a t a r e not paying. They have no ability to co l lect t hat money, and, so, the refo re , less p eop le would probably pay because it's just a bil l from the civic . It used t o be a vo l untary association, a nd as own ers changed, t hey all came down here, a group of them together, and created this vil l age . They were a l l f riends . They were al l very wea l thy indus tr i a li sts from up nor t h . It was no problem . Th ey jo i ned the civic associa ti o n . Yo u went o v er to the club. You drank it up . You had you r boat. You had you r fun. I t was nothing. What happe ned was as the neighborhood started to change and the origin a l r esidents moved out, some of the people said, why should I be paying for t his, and so they came t o the vil l age and asked us because they don 't have any abil i ty to co l lect , but if t here was a way and we t ried i t over the years to figure out a way, but I do n 't know any other way to do i t . They have gone, apparently , to lawyers and asked them , but because it wasn't do n e when the original homes were so l d, the y have no abil i ty to compel a nybody to do this . I think everybody is on the same page here , but nobody , really, has been ab l e to figure ou t a TAY LOR REESE AND ASSOCIA TE S , I NC . (305) 444-733 1 1 2 3 4 5 6 7 8 9 10 11 12 1 3 14 15 16 17 1 8 19 2 0 21 22 23 24 25 way to do it. Let 's see . I guess, Howard? MAYOR BERLIN : I want to make sure everybody has had an oppor t u ni ty. MR . WE I SS : I was j ust going around. MAYOR BERLIN: Are you looking fo r me f or comment? MR. WEISS : Yes. COUNCILMAN PACKER : Yes. MAYOR BERLIN : I par ticip a t ed in these sett le ment negotiations at the request of the plaintiff and the c it y , so I am fairly f am i liar wi t h how we got to where we go t t o . 49 My only --the only thing I would add is in connec ti on with my law pract i ce , I h ave learned over the yea r s there i s an old saying about settlements an d tha t is tha t a good sett l ement mea ns both parties fee l they didn 't get everyth i ng the y wan t ed . I think this is, under the circumstances, I thin k it 's reasonab l e . MR . WEISS: Okay . What we are doing he re is l ooking for --we don 't ne ed to vo t e. Is there some consensus? The things that I h ave add ed are that he has agreed to pay the amount going forwa r d, n umbe r one , and, n u mbe r two , is there a TAYLOR REESE AND ASSOCIATES , IN C . (305) 44 4-7 33 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 5 1 6 17 18 19 20 21 22 23 24 25 50 feeling one way or another a b ou t whether we should eliminate t he fo r g i ving of the li ens and increasing the numbe r or whether it's better to leave the li ens being released , because I don't t hink i t makes any diffe rence to h im . I 'm not sure if it makes any di ff erence to the v i llage . COUNCILMAN JACOB I: Set the pr eceden t . Make him pay it back . MR. WEISS: Pay it back. Howard, do you t hink it makes a d ifference? I don't think it ma kes any difference to him i f we give him the additiona l money , he pays the l iens. Ja i me or Councilman Sanz? COUNCILMAN SANZ : No . COUNC ILMA N PACK ER : When you say he pays his back liens? Does he give it back? MR . WE ISS : What we do is this -- MR. POPOK : Part of the settlement. MR. WE I SS : We would inc r ease t he $26,000 by the amount of the liens he owes, and then what he does, he tur n s back the extra 10 ,500 that we have given him and pays off all these lie ns and agrees to pay go in g forward . COUNCILMAN PACKER: How are you setting this precedent if someone else pulls this? TAYLOR REE SE AND ASSOCIATES , INC . (305) 44 4-7331 1 2 3 4 5 6 7 8 9 1 0 11 12 1 3 14 1 5 16 1 7 1 8 19 20 2 1 22 23 24 2 5 5 1 MR . WEISS : Tha t i s the risk, is that someone else --I don 't know what we ar e givin g hi m other t han --I mean, I guess , somebody else who wa n ts to go invest 25 or $50 ,0 00 of thei r own money can g o sue the v ill a ge t o knock this t h i n g ou t . I don 't kno w why th ey wo uld do i t , frankly . I h ave t alk ed to hi m about this . I don 't e v e n know why he did it , other t han he didn 't l ike -- i t was mo r e --h e 's very much of a ASSISTANT MAYOR ROSE NF I ELD : A ma veric k . MR . WEISS : indiv i dua list. yo u know , like a rugged He 's fig ht i n g for democracy . h ad mu ch mor e to do with the way i t was being admi n i stered , t h e way Kent Secur i ty was be i ng don e , all of that, th e who l e proce ss. Th is MR . P OPOK : I would thi nk it wou l d be more attractive i f t he vil lage f o l ded a f ter a year of litigatio n, but it has been five yea r s . MR. WEI SS : He has lo st money here. He is no t makin g a ny mo n ey here . He paid $1 00 ,0 00 to hi s lawyer or more to get bac k 50 , 60 . You kn o w, thi s cost him mo n e y to do i t , bu t he r eal l y does want to g et out o f this . I think t h at i s really why . I mean , again , h e was ask i n g f o r hu n dreds of t h ousands of dollars in mediation . TA YLOR REESE AND ASSOCI AT ES , I NC . (305) 444-7331 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 6 17 18 1 9 20 21 22 23 2 4 25 52 COUNCILMAN PACK E R : If we are caug h t , like yo u say , be tween our own attorneys , not yo u r fi r m bu t the -- MR. WEISS : Yes. COUNCILMAN PACKER: And we are subject possibly if we conti nu e the lawsu i t a n d do not sett le , that is the f ee l ing , and you say it 's a poss i bi li ty that definitely we would win the case , bu t there is a l so a possibility of a l o ss , if that is t he feeling of the co u ncil , then I 'll go along with it . MR . WEISS : Okay . T hat is what we are going to do . So now bac k t o yo u r script , Howard. Jus t read the rest , j us t k eep c ontinu in g on . At this ti me -- MAYOR BERLIN : I will now r eopen the pub l ic mee t ing . MR . WE I SS : I'm opening the doo r . MAYOR BE RLIN : The attorney/cl i ent session has now been te r mina t ed and members of the general pub l ic ar e now invited to return for any furthe r p r oceedings or matters . MR . WEISS: Hold on . Let her j u st turn on TAYL OR REESE AND ASSOC IATES , INC . (305) 444-7331 1 2 3 4 5 6 7 8 9 10 1 1 12 1 3 14 15 16 17 18 1 9 20 21 22 23 24 25 53 the tape . MAYOR BERLIN : I will now reop e n the pub l ic meeting. T he attorney/cl ient sess i on has now been te rminated . Members of the ge n era l public a r e now i nvited to re t urn fo r any furthe r proceed ings or mat t ers . MR . WEISS : Okay . Done . 9 :00 a m . Now y ou can ad j ourn the oth er meeting. Motion to ad j ourn . ASSISTANT MAYOR ROSENFI EL D : Motion to ad j ourn . MAYOR BE RLI N : B efore we adjourn , is this part of the e x ecutive sess i on? MR. WEISS : We a r e done . MAYOR BERLIN : I j us t have a question . Wh at happens next? MR . WEISS : I n this case? MAYOR BERLIN : Yes . MR. WEISS : I n t his case , what is going t o happen i s I am going to d ra f t , we are go i ng to dra ft a settleme nt agreement or maybe I 'l l have the insurance company do it so that way we are no t pay i ng for it . We will work on a settlement agreemen t wi th the i nsurance company if I can get wh atev e r mo ney I can fro m t he insurance company, TAYLOR REESE AND ASSOCIATES , I NC . (305) 444 -7331 1 2 3 4 5 6 7 8 9 10 11 12 1 3 14 15 16 1 7 18 1 9 20 21 22 23 24 25 5 4 and then the final agree ment will come back to you on the consent agenda , probably the nex t meeting. MAYOR BERL I N: The next meeting . MR . WEISS: Yes. Okay . COUNCILMAN PACKER: I have ano th er question. MR. WEISS : You want to talk to me private ly? MAYOR BERL IN: It is 9 :00 o'clock . MR . WEISS: We are done. We can't talk any more in this meeting. (Thereupon, the proceedings were concluded at 9:00 a .m.) TAYLOR REESE AND ASSOCIATES, INC. (305) 444 -7331 1 2 3 4 C E R T I F I C A T E 5 I, Mary G. Stephenson, FPR , State of Flor ida at 6 Large, certify t hat I was authorized to and did 7 stenographically repo r t the foregoing p ro ceedings and 8 tha t the t ranscript is a true and comp l ete record of my 9 stenographic notes . 10 1 1 Dated th is 21st day of March, 2008 . 1 2 13 14 1 5 16 17 18 1 9 20 21 22 23 24 25 TAYLO R REESE AND ASSOCIATES , INC . (305) 44 4-7331 55