HomeMy WebLinkAbout1985-03-20 - City Commission Special Meeting Minutesr�
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P.O. BOX 25010
TAMARAC, FLORIDA 33320
5811 NORTHWEST 88TH AVENUE TAMARAC, FLORIDA 33321
TELEPHONE (305) 722-5900
March 19, 1985
NOTICE OF SPECIAL MEETING
CITY COUNCIL OF TAMARAC, FLORIDA
There will be a Special Meeting of the City Council on
Wednesday, March 20, 1985, at 9:30 a.m. (or as soon there-
after upon the conclusion of the 8:30 a.m. pre -agenda meet-
ing), in the West Conference Room of City Hall, 5811 NW 88
Avenue, Tamarac, Florida.
The purpose of the meeting is discussion and possible action
on the following items:
1 -E.S.M. Government Securities..,.. Inc.
a) Letter Agreement with the law firm of Morgan,
Lewis and Bockius.
b) Authorization for appropriate legal action.
2 - Personnel Department -- Hold Harmless Agreement for
volunteers assisting the City by serving on oral
review boards (promotional exams) - Temp. Reso. #3570.
The City Council may consider and act upon such other business
as may come before it.
The public is encouraged to attend.
Carol E. Barbuto
Assistant City Clerk
Pursuant to Section 286.0105, Florida Statutes
If a person decides to appeal any decision made by the city
Council with respect to any matter considered at such meeting or
hearing, he will need a record of the proceedings and for such
purpose, he may need to ensure that a verbatim record includes
the testimony and evidence upon which the appeal is to be based.
AN EQUAL OPPORTUNITY EMPLOYER
POLICY OF NONDISCRIMINATION ON THE BASIS OF HANDICAPPED STATUS
CITY OF TAMARAC, FLORIDA
SPECIAL CITY COUNCIL MEETING
March 20, 1985
Tape 1 CALL TO.ORDEJR: Mayor Kravitz called the meeting to order on Wednes-
day, March 20, 1985 at 9:40 A.M. in the West Conference Room of City
Hall.
ROLL -CALL: PEBSE Mayor Philip B. Kravitz
Vice Mayor Helen Massaro
Councilman Arthur H. Gottesman
Councilman Raymond J. Munitz
Councilman Sydney M. Stein
Elly F. Johnson, City Manager
Jon M. Henning, City Attorney
Carol E. Barbuto, Assistant City
Clerk
Mayor Kravitz read the Notice of the Special Meeting into the
record.
3. Sigqtgr City Adyisory Committge - Temp. Or #1171 -Discussion
and possible action. First Reading.
Agendized by Consent.
(See Pages 5 & 6).
At Mayor Kravitz's request, V/M Massaro MOVED to Agendize by Consent
discussion and possible action concerning the Sister City Advisory
Committee, SECONDED by C/M Stein.
C/M Stein questioned the urgency and Mayor Kravitz said he spoke to
Jefferson Travel and there are problems concerning the reservations
and he felt time was important on this item.
C/M Stein Nay
C/M Munitz Nay
C/M Gottesman Aye
V/M Massaro Aye
Mayor Kravitz Aye
4. -
TgIDp Ord. #1176 - Discussion and possible action. First
Reading.
BXW2,91,9 OF ,TIQN: Agendized by Consent.
(See Page 6).
City Attorney Henning said Mayor Kravitz asked him to draft certain
legislation and he was under the impression it would be reviewed and
any changes would be suggested to him. He said his secretary
distributed all of the Ordinances except Temp. Ord. 11177 which he
just distributed this morning. He said he thought they would be
discussed at the Regular Council meeting on 3/27/85. Mayor. Kravitz
recessed the meeting for ten minutes so that copies of the
Ordinances could be prepared and distributed.
After the recess, Mayor Kravitz asked Council Agendize this item by
Consent and V/M Massaro so MOVED, SECONDED by C/M Gottesman.
C/M Stein Nay
C/M Munitz Nay
C/M Gottesman Aye
V/M Massaro Aye
Mayor Kravitz Aye
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3/20/85
/ nrn
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5• Qunnil LIA190a Positions - - Discussion and
possible action. First Reading.
j%=PSI-S OF ACTION: Agendized by Consent.
(See Page 7).
Mayor Kravitz requested this item be Agendized by Consent since
these positions should be appointed this week. V/M Massaro so
MOVED, SECONDED by C/M Stein.
#3566 possible
Agendized by Consent.
(See Page 7).
Mayor Kravitz requested this item be Agendized by Consent and
C/M Stein MOVED to TABLE this item with the stipulation that no
member of the Council will take lunch money until this is resolved.
V/M Massaro said she would SECOND the MOTION to TABLE.
Mayor Kravitz suggested this item be TABLED to the 3/27/85 Council
meeting instead of this morning.
C/M Stein withdrew his MOTION as did V/M Massaro as the SECOND.
Mr. Henning suggested the item be Agendized by Consent first and
V/M Massaro so MOVED, SECONDED by C/M Munitz.
VOTE: ALL Y-Q.TED AYE
Mayor Kravitz noted that there was a Charter Board meeting last
night during which they elected Morris Haber as Chairman. He said
they have requested a Workshop Meeting be held with the City Council
for the purpose of creating a working harmony between the two boards
and he said he will call this as soon as possible.
1• - Discussion and possible action
on:
a) Letter of Agreement with the law firm of Morgan, Lewis and
Bockius
b) Authorization for appropriate legal action.
SXNQPSIS OF .ACTION:
a) APPROVED retaining Morgan, Lewis and
Bockius as attorneys to represent the
City in the ESM case. The Mayor was
authorized to execute and acknowledge
the Letter of Engagement. Funding was
authorized up to $10,000 until further
notice.
b) Morgan, Lewis and Bockius was authorized
to initiate legal action against ESM and
other related entitites and any other
individuals or entities against which the
City may have any legal right or claim
relating to the retention, disposition or
acquisition of any securities in which
the City may have or had an interest.
a) Mr. Henning said there is a letter dated 3/8/85 from Morris Brown,
an Associate with Morgan, Lewis and Bockius. He said Tamarac is
dealing with their Miami office and, at a Special Meeting on 3/6/85,
Council authorized expenditures up to $10,000. He said no money has
been spent as yet and nothing has been billed.
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3/20/85
Mr. Henning said the rates differ slightly from what he reported
earlier and the attorneys are at $130.00 to $220.00 and he was
assured that nothing is over $200.00 and will average $140.00 to
$150.00.
Mr. Henning said the letter stated "$7,496,000.00 of investments and
repurchase agreements" and he questioned whether that referred to
the 7 million dollars plus interest that is at question. He said
they will not charge the City for travel time and he suggested this
Letter of Engagement be approved. He said he asked them for a lump
sum fee and a Contingency fee based on recovery and both of these
were turned down and they prefer to go on a straight hourly basis.
C/M Gottesman asked how the City chose this particular firm and
Mr. Henning said this firm was highly recommended by the City's
Finance Advisor, Stan Ross of Dean Witter and also from Fine, Jacob-
son, the City's Bond Counsel. He said they have worked with Fine?
Jacobson and Dean Witter and beforehand, the City interviewed
approximately 8 firms and there were conflicts. He said this is one
of the largest law firms in the nation. C/M Munitz asked if "Con-
flict of Interest" meant that the law firms were retained by one of
the other parties involved and Mr. Henning said yes.
C/M Gottesman asked if any thought had been given to a class action
for the people who have lost money and Mr. Henning said there is a
case in the Federal Court, Southern District of Florida, where the
Securities and Exchange Commission initiated a case against ESM. He
said some entities have been granted intervention and, perhaps, the
City's attorneys, if authorized today, would seek intervention into
that case. He said the City expects multi -party cases but, they may
not be termed class actions. He said all the law firms he spoke
with are not taking more than one case.
V/M Massaro said she understood that representatives of Morgan,
Lewis and Bockius were going to report today on what they have done
so far and Mr. Henning said he had hoped today to have pleadings,
that is, a case to file. He said they are preparing the case or
cases. He said he was on the telephone with Mr. Brown yesterday and
he advised him that he had to be out of town today but any other day
would be fine. He said there is a sign -off on the letter and he did
not feel he was authorized without Council approval to sign -off on
these terms. He said he can give Council a report of what is known
so far and the law firm needs to know that they are hired before law
suits are filed. V/M Massaro asked what Mr. Henning meant by "sign -
off" and Mr. Henning said this is a Letter of Engagement setting out
their terms and requesting the,City's consent of these terms
concerning the fee schedule, purpose of engagement, etc.
V/M Massaro said it was her understanding that they had already been
authorized to spend up to $10,000 and Mr. Henning said that is
correct. He said they have been in contact with Tom Tew, who is the
receiver appointed by the Securities and Exchange Commission and is
working out of the ESM office on Broward Blvd. He said they have
been caucusing at their office to determine the best place to file
suits to protect the City. V/M Massaro said most of these suits
have already been filed and she asked if this puts the City in a
backward position. Mr. Henning said those that have filed are not
any better off and eventually the cases will be merged or consoli-
dated. He said they could proceed immediately if authorized by
Council.
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3/20/85
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Mr. Henning suggested Council hire this firm and authorize them to
file suit and meet with them at the next Council meeting on 3/27/85
and, if Council is not satisfied with them, the City can find
someone else.
C/M Gottesman asked if Mr. Henning has seen any work they have done
and Mr. Henning said the rates are competitive with the other firms
interviewed. C/M Stein MOVED that the City retain Morgan, Lewis and
Bockius as attorneys to represent the City in the ESM case and
authorize that the Mayor be authorized to acknowledge this Letter of
Engagement. V/M Massaro said she SECONDED the MOTION and requested
that the cap figure of $10,000 be added to that Letter.
C/M Stein said he would accept that amendment and Mr. Henning said
authorization is up to $10,000 until further notice.
Vickie Beech, resident, asked what this law firm can do for the City
that Mr. Henning cannot and Mr. Henning said there are five pages on
the Pre Agenda listing of normal Council business that he must
preside over. He said there is a slight possibility that he could
do what this law firm is doing if he did not have these things to
do. He said this law firm specializes in securities and bankruptcy
and has expertise that he cannot give the City.
Moni Avidon, Charter Board member, asked if the City is covered in
the Competitive Negotiations Act and Mr. Henning said this did not
come under that Act. C/M Munitz said expertise is very important
and this is best handled by this law firm.
b) Mr. Henning said he has drafted two proposed MOTIONS that would
cover the authorization to take action against ESM and any other
related parties. C/M Munitz MOVED that the City authorize Morgan,
Lewis and Bockius as Special Counsel to the City, to initiate legal
action against ESM, its offices and related entities in whatever
jurisdiction the attorneys determine to be appropriate. SECONDED by
C/M Stein.
V/M Massaro asked if the related entities would include Alexander
Grant and Mr. Henning said ESM has several entities; ESM Government
Securities, Inc., ESM Group, as well as parent and subsidiary
corporations. Mr. Henning suggested this MOTION stand as is.
C/M Munitz MOVED that the City authorize Morgan, Lewis and Bockius,
Special Counsel to the City, to initiate legal action against any
other individuals or entities against which the City of Tamarac may
have any legal right or claim relating to the retention, disposition
or acquisition of any securities in which the City may have or had
an interest. SECONDED C/M Stein.
VOTE: ALL VOTED AYE
V/M Massaro asked Mr. Henning what the State Law is regarding
investments with any special regulations involved and Mr. Henning
said the letter he circulated regarding Florida Statutes 166.261
concerns Securities, Repurchase Agreements, and holding banks. He
said he will check with the administrative Code. V/M Massaro said
she also wanted the City Attorney to check into the legality of all
the City's present investments with an answer in writing and
Mr. Henning said he will.
4 3/20/85
PM %
2. Personnel Depalj;ment - 1JQJ_d.., H_armie,J_._A_q1egment Qr y���unteers
AA.si tome. City k�y_,_,$ervina on Oral Review .BDarsis_ _(promo-_
ti-onal exams) - ,5 - Discussion and possible
action.
SYNOPSIS OF_ACTION: APPROVED
authorizing the City Manager to
execute Hold Harmless Agreements
for the benefit of individuals
arving on promotion panels (Oral
)view Boards).
RESOLUTION NO. R-85-106 PASSED.
Mr. Henning read by title.
Tape 2 Mr. Henning said the promotional examination is an Oral Review Board
for the Fire Department and the Resolution is primarily concerned
about this panel for Friday, 3/22/85. He said there is an
Attachment to the Resolution which will be a form Hold Harmless
which states that the City will represent them if there are any
claims by people who pass the exam or people who did not pass the
exam. He said the Personnel Department solicits experts, usually
from the municipal area from other cities. City Manager Johnson
said this is an oral review and is just one part of the total
selection process. He said it is standard procedure in the industry
and this is just a precaution.
V/M Massaro asked if there are any other boards in the City that
have these panels other than Police and Fire and Mr. Henning said a
review panel was used for selection of engineers. C/M Munitz asked
if there was a fixed compensation for their services and Mr. Henning
said this is free since they are volunteers. City Manager Johnson
said it is part of the union contract that it be done this way.
C/M Stein MOVED APPROVAL of Temp , SECONDED by
C/M Munitz.
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3. Sist9s. City_ Advisgry CQxmi_t._t._e_@ - gip,_ Ord_. #1175 - Discussion
and possible action. First Reading.
SYNOPSIS OF ACTION: Agendized by Consent.
(See Page 1).
APPROVED on first reading as amended.
Mr. Henning read Temp._ Ord, #1 75 by title.
Mr. Henning said the Charter provides for creation of committees and
advisory boards and there were several reorganized and put in the
Code. He said he has tried to keep all volunteers assigned to
committees and the effect of this Ordinance is to keep the Sister
City functions identical to what they are now. He said under this
Ordinance, however, the Human Relations Committee is being removed.
He said the purpose of having two persons originally was to have a
committee and this would reduce the Sister City Human Relations
Commissioners to one position and assigns the responsibilities of
the Human Relations Commissioner to the Welcoming Committee. He
said the effective date would be 5/1.2/85 which is when the present
Human Relations Commissioners' terms end.
Mayor Kravitz said Section 5 stated that this would become effective
immediately upon passage of the second reading and Mr. Henning said
there are two Commissioners and they could be discharged after
approval on second reading and Council could then appoint one Com-
missioner. Mayor Kravitz suggested that Section 5 read, "This
Ordinance shall become effective immediately upon final passage."
C/M Stein MOVED APPROVAL of Temo._,QxjL__#J275 on first reading as
amended, SECONDED by C/M Gottesman.
5 3/20/85
PM
Mayor Kravitz asked the City Attorney if the City has a contract
with Jefferson Travel for the Sister City tour in May and
Mr. Henning said the City has no contract with Jefferson Travel. He
said if the 26 people who signed up for the trip still want to go
they can.
4. City Council Approyal in Appointment_of ]'eziBlative Aides. -
Temx�. Ds_d_,_.#1176 - Discussion and possible action. First
Reading.
SYNOPSIS OF ACTION: Agendized by Consent.
(See Page 1).
APPROVED on first reading as amended.
Mr. Henning read Temp. OrOr�� #1126 by title.
Mr. Henning said each Council member is entitled to up to 3 aides
which are non-paying positions. He said some of the requirements
are that they cannot be publicly -elected officials or City employees
and, up until now, the aides have been appointed to serve at the
pleasure of the appointing Council member and were appointed by a
written memo to the City Clerk's office. He said their term expires
when the Councilman's term expires or if discharged before then. He
said this amendment would have the Council member nominate an aide
and the Council would approve the appointment. He said the aide
would still work for the individual Council member and can be re-
moved by the Council member. He said Section 4 should read, "This
Ordinance shall become effective immediately upon its final passage
for all new aides nominated by a City Council member. Those aides
duly appointed prior to the effective date of this Ordinance shall
be entitled to serve,until�g end o the term of the appointing
official."
C/M Munitz asked if the City Council should not have the right to
agree to the removal of an aide and Mr. Henning said he will put in
whatever Council decides. C/M Stein asked why the.aide must be
approved by the entire Council and Mayor Kravitz said Council could
disapprove anyone they felt might be detrimental to the City. Mayor
Kravitz said all existing aides at this time are voided and all new
aides being suggested to Council should be voted on. C/M Stein said
those aides that are,already appointed should remain since they were
appointed for the term of the Council person they work with. He
suggested this Ordinance be amended to state that Council may remove
any present aides they wish to.
Mayor Kravitz suggested Section 4 be amended to read, "that all
existing aides are terminated and the new procedure takes effect.
C/M Stein requested the City Attorney give him a legal opinion
before the second reading as to the legality of this Ordinance.
V/M Massaro MOVED APPROVAL of Timpod. 11176 on first reading as
amended, SECONDED by C/M Stein.
5. Council Liaison Positions - Temp. Ord. kL - Discussion and
possible action. First Reading.
SYNOPSIS OF ACTION: Agendized by Consent.
(See Page 2).
APPROVED on first reading as amended.
Mr. Henning read Temo.__QjjL.Ujjj by title.
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Mr. Henning said this was codified and there were some amendments
after it was placed in the Code. He said this would allow the Mayor
and any Council member to serve as a liaison with appointments made
by the Mayor to serve at the pleasure of the Mayor and notice will
be in writing filed in the City Clerk's office. He said Council had
taken action earlier not to have liaison positions for City depart-
ments but he was requested to include City departments in this
Ordinance. He said this will become effective immediately upon
final passage.
C/M Stein said the appointments should be determined by the election
and not by the Mayor. Mayor Kravitz said he agreed and this should
be amended to remove "the office of Mayor". Mr. Henning said Line
22 should read, "a period of time not to extend past the next City
election." and the words "exceed the term of the Office of the
Mayor" should be removed.
C/M Stein MOVED APPROVAL of on first reading as
amended, SECONDED by C/M Gottesman.
C/M Munitz said he feels it is wrongto have liaisons to the City y
departments since it could interfere with the City Manager and he
suggested eliminating the assignment of ,liaisons to any City depart-
ment. V/M Massaro said she did not agree since this has been in
existence for years and there is no interference. City Manager
Johnson said he has problems with this and he asked for a definition
of what a liaison does. V/M Massaro said it is merely for dis-
cussion and Mayor Kravitz said the liaisons have no authority.
Mr. Henning said Line 32 states, "The City Council may adopt, by
Resolution, additional guidelines regarding liaison positions not in
conflict with this Section." He suggested the City Manager could
give additional guidelines in a Resolution. V/M Massaro said this
would cover any problem that might occur.
VOTE: ALL_ VOTED_.AYE
6. €C.ity.jC_o=�jj_Xeub=B_ or. Meal
nses q _L ug by_Sounci R inas - -
Discussion and possible action.
CT.TON: Agendized by Consent.
(See Page 2).
TABLED to the 3/27/85 Council meeting
with the proviso that no Council
member shall be entitled to meal
expenses during that meeting if this
Resolution is adopted.
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Mr. Henning read Me43,,66 by title.
C/M Stein MOVED to TABLE Temn._$ggo, #3566 to the 3/27/85 Council
meeting with the proviso that no member of Council shall be entitled
to meals during that meeting if this Resolution is adopted, SECONDED
by V/M Massaro.
VOTE: ALL_.YOTEDAYE
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3/20/85
/pm
Mayor Kravitz adjourned the meeting at 11:30 A.M.
MAYOR
ATTEST:
VAASTANT CITY CLERK
This public document was promulgated at a cost of $116.80 or $3.24
per copy to inform the general public and public officers and
employees about recent opinions and considerations by the Council of the
City of Tamarac.
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3/20/85
/pm
CITY OF TAMARAC
APPROVED AT MEETING OF -1i11s