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HomeMy WebLinkAbout08151986aMAYOR HARRIS - "...THE MEETING OF THE SEBASTIAN CITY COUNCIL, AUGUST THE 15, 1986, AT 7:30 P.M.. WILL YOU GIVE ME A ROLL CALL, MADAME CLERK?" DEBORAH KRAGES - "VICE MAYOR ROTH?" VICE MAYOR ROTH - "PRESENT." DEBORAH KRAGES - "COUNCILMAN MCCARTHY?" COUNCILMAN MCCARTHY - "HERE." DEBORAH KRAGES - "COUNCIL~ COUNCILMAN RONDEAU - "HER5 DEBORAH KRAGES - "COUNCIL~ COUNCILMAN VALLONE - "HER~ DEBORAH KRAGES - "ATTORNEY PA~" ~ ATTORNEY PALMER - "HERE." -- DEBORAH KRAGES - "AND MAYOR HA~-~i~?"J MAYOR HARRIS - "HERE." (THE TELEPHONE ~NG DURING THE PLEDGE AND WAS ANSWERED BY DEBO~H KRAGES) MAYOR HARRIS - "CAN YOU GET IT ANSWERED?" COUNCILMAN VALLONE - "YEAH." DEBORAH KRAGES - "YES, SIR, HE IS. HOLD ON." MAYOR HARRIS - "THAT'S...IS THAT FOR ME? OKAY. HELLO, OKAY CAN YOU HOLD ON A MINUTE WE'RE jUST STARTING THE MEETING RIGHT NOW. YOU WANT TO JUST HOLD? OKAY. ALRIGHT, GENTLEMEN WE'RE GOING TO DISPENSE WITH THE FORMALITIES OF IT IN THE MEETING AND UM, THE PURPOSE OF THIS MEETING THIS EVENING, I WAS CALLED BY GEORGE ROBERTS AND THAT'S WHO'S HOLDING ON THE PHONE RIGHT NOW. GEORGE ROBERTS IS THE ATTORNEY FOR OUR INSURANCE COMPANY. HE ADVISES ME THAT THERE HAS BEEN A TENTATIVE SETTLEMENT REACHED IN WEST PALM BEACH iN REGARDS TO THE NAPPI CASE. TWO OF THE CIRCUMSTANCES OF THIS AGREEMENT, NUMBER ONE IS THAT THE CITY WILL EXECUTE A GENERAL RELEASE OF THE DEFENDANTS, UH, FLOOD, FITZMAURICE, ADAMS AND MCKINLEY. IN ESSENCE WHAT IT'S SAYING IS THAT THE CITY WILL NOT GO BACK AND SUE THEM AT A LATER DATE ,UH, FOR COSTS OR SOMETHING OF THIS SORT AND THE OTHER TERMS OF THE AGREEMENT IS THAT THE DOLLAR FIGURES OF THIS AGREEMENT WILL NOT BE RELEASED BY ANY OF THE PARTIES WHATSOEVER. SO THE PURPOSE OF OUR MEETING HERE TONIGHT IS TO AH, VOTE THAT WE WILL OR WILL NOT EXECUTE THIS RELEASE. THAT'S A TERM OF THE SETTLEMENT. THAT'S PART OF THE TERMS IN THE SETTLEMENT. MR. ROBERTS IS WAITING ON THE PHONE RIGHT NOW FOR OUR ANSWER SO, AH, I WILL ENTERTAIN A MOTION THAT THE CITY EXECUTE A GENERAL RELEASE OF THE DEFENDANTS." 1 VERBATIM TRANCSCRIPT OF EMERGENCY COUNCIL MTG. - AUGUST 15, 1986 COUNCILMAN RONDEAU - "UH, MR. MAYOR?" COUNCILMAN MCCARTHY - "I SO..." COUNCILMAN RONDEAU - "EXCUSE ME. TO GIVE US SOME INPUT ON THIS." I'D LIKE TO ASK ATTORNEY PALMER MAYOR HARRIS - "ALRIGHT." ATTORNEY PALMER - "WELL WHAT THEY'RE AFTER HERE IS THAT WHEN ONE WHEN ONE PARTY TO A LAWSUIT PAYS A PLAINTIFF, HE CAN BRING WHAT ARE KNOWN ARE SUBROGATION ACTIONS OR SUE THE OTHER DEFENDANTS IN THE CASE FOR THE LOSSES THE CITY PAID AND THEY WANT TO MAKE SURE THAT IF THIS CASE IS SETTLED THAT THE CITY WILL NOT BRING ANY CLAIMS AGAINST THE INDIVIDUAL DEFENDANTS, UH, THE THREE..." VICE MAYOR ROTH - "WHO WANTS TO MAKE SURE?" ATTORNEY PALMER - "UH, THE, THE, IN ORDER TO SETTLE THEN THEY'VE GOT TO ALL AGREE AND THE MR. UH, FITZMAURICE AND MRS. MCKINLEY AND MRS. ADAMS AND MR. /'~L~OD--WA~!~ ~q~RE THAT IF THEY AGREE TO SETTLE THE CASE THAW ~ .S~TTT_E-IT \O~C~ AND FOR ALL AND THE CITY WILL NOT TRY TO BRIN~ A~ ACTIONS A~ ~ LATER TIME TO RECOVER THE FACT THAT THEIR INSURE COMPANY H~D~TO PAY AH, MONIES TO THESE VARIOUS INDIVID~ ~ UH, TO MR. ~ ~APPI BETTER KNO~ AS SUBROGATION CLAIMS. S~AT~HE~ANT~ BE ASSURED OF IF THE CASE SETTLES, DOESN'T GO TO TRI~ THAT THIS SETTLES IT ONCE AND FOR ALL AND THERE WILL BE NO~TH~CTION BY THE CITY AGAINST A~ OF THESE INDIVIDUALS A~~CO~ND THAT WE DO THAT, THERE WILL BE NO OUT OF POCKET EXPE~S O~THE CITY, WE'VE ALL BEEN AGG~VATED BUT THE CITY ITSEIF YAS ~T H~ TO PAY A~ MONEY TO ANYBODY. SO THE INSURANCE C~AN~ ~IS GOING TO SETTLE ~ATEVER THE SUM MAY BE A~ THESE OTHE_~I~UALS WA~ TO KNOW THAT IF, IN THIS HAPPENS THAT THERE WILL-BE, THEIR CASES TO REST AND THERE WILL BE NO FURTHER LEG~ ACTIONS ON OUR BEHALF AGAINST A~ OTHER - S VICE ~YO~T~'~ ~, ~ A~ TH.~ I'~G~D~ WE'RE SETTLED ONCE A~ FOR ALL BUT THE AGG~...YOU KNOW AGG~VATION IF YOU WANT TO CALL IT THAT HAS BEEN CAUSED BY THE, NOT THE DEFENDANTS, BY THE, BY WHO, BY THE THREE PEOPLE INVOLVED, THE THREE OR FOUR PEOPLE INVOLVED. IT HAS COST THE CI~ OF SEBASTIAN TAXPAYERS A LARGE AMOUNT INCREASE IN INSU~NCE, LIABILITY INSURANCE. (INAUDIBLE) LAWSUITS." ATTORNEY PALMER - "WELL..." VICE MAYOR ROTH - "I, I'M NOT, I'M NOT SAYING THEY'RE RIGHT OR WRONG, DON'T GET...I'M NOT TRYING TO BE A TRIAL JUDGE OR JURY BUT IT HAS BEEN REPORTED IN THE PAPERS THAT BECAUSE OF THIS LAWSUIT IT HAS INCREASED THE INSURANCE POLICY OF THE CITY OF SEBASTIAN BY SOME SIX, FORTY OR FIFTY THOUSAND DOLLARS PER YEAR. SO THAT'S NO SMALL SUM." MAYOR HARRIS - "LEGALLY WE UH..." VICE MAYOR ROTH - "ARE WE TALKING ABOUT THAT KIND OF UH..." ATTORNEY PALMER - "THAT'S THE KIND OF THING THAT HOWEVER, ITS DIFFICULT TO ASCERTAIN TO WHAT EXTENT IF ANY THAT THE INCREASE iN OUR GENERAL LIABILITY INSURANCE COVERAGE IS ATTRIBUTABLE TO THE FACT THAT THIS LAWSUIT WAS PENDING AND BECAUSE, BECAUSE THERE'S A NUMBER OF FACTORS THAT GO INTO THE INSURANCE RATES OF ANY GIVEN MUNICIPALITY. ALL MUNICIPALITIES ARE RAISING THEIR INSURANCE RATES ALL OVER THE PLACE AND THE EXTENT THAT, THE FACT THAT THIS LAWSUIT HAS BEEN PENDING FACTORS INTO THAT RAISE WOULD BE VERY, VERY DIFFICULT TO QUANTIFY BECAUSE AT THE TIME 'THAT THESE INSURANCE RATES WERE RAISED FOR THE CiTY UH, NOBODY KNEW HOW THIS 2 VERBATIM TRANSCRIPT OF EMERGENCY COUNCIL MTG. - AUGUST 15, 1986 CASE WAS GOING TO TURN OUT, NOBODY KNEW WHETHER OR NOT THEY WERE GOING TO PAY THIS, PAY ANYTHING OR WHAT THE AMOUNT WOULD MAY BE, SO IT REALLY IS ITS ALMOST IMPOSSIBLE TO ASCERTAIN TO WHAT EXTENT THIS LAWSUIT IS DIRECTLY RELATED TO ANY INCREASE IN OUR INSURANCE PREMIUMS. IT MAY HAVE SOME BEARING ON..." VICE MAYOR ROTH - "WHY WERE STATEMENTS MADE TO THAT EFFECT THEN?" ATTORNEY PALMER - "WELL WHO WERE THEY MADE BY?" COUNCILMAN MCCARTHY - "THEY WERE MADE BY THE UH, I KNOW WHAT HE'S SAYING. THEY WERE MADE BY THE UH, AUDITORS IN THE PAST, THE VERY, VERY RECENT AUDITORS SAY THAT WE WERE NOT COVERED ON THE LIABILITY HERE AND WE DID NOT MAKE PROVISIONS FOR COVERING LIABILITY ON THE LAWSUITS." ATTORNEY PALMER - "NO, THAT HAD NOTHING TO DO WITH, THAT HAD NOTHING TO DO WITH THAT. THAT WAS JUST..." -" · ATTORNEY PALMER - "NO, WE CAN DISCUSS IT, WE CAN DISCUSS IT. THE FACT OF THE MATTER IS IN ORDER~T ~D BE ALMOST IMPOSSIBLE TO QUANTIFY TO ~AT EXTENT TH~ ~' IA~IT HAS BEEN DIRECTLY COUNCILMAN MCCARTHY - "OKAY, ~ ~C[[S~ WE HAVE AN UMBRELLA POLICY THAT WOULD BE..." ATTORNEY PALMER - "WELL WE HAVE A POLICY THAT COVERS ~L SORTS OF ~YOR H~RRIS - "~0 ~0~i0~." COUNCILMAN MCCARTHY - "RIGHT." COUNCILMAN VALLONE - "BUT BEFORE, BEFORE WE GO INTO A MOTION MR. MAYOR, IF I, JUST ONE QUICK ONE REAL QUICK ALRIGHT?" MAYOR HARRIS - "ALRIGHT." COUNCILMAN VALLONE - "IS THIS THE ADVICE OF THE ATTORNEY?" MAYOR HARRIS - "IT IS THE ADVICE OF THE ATTORNEY, IT'S THE ADVICE OF THE INSURANCE COMPANY, THEY'RE ON THE PHONE RIGHT NOW. IT IS THEIR ADVICE." COUNCILMAN VALLONE - "OKAY, I JUST WANTED TO CLARIFY THAT FOR THE REST OF THE COUNCIL." MAYOR HARRIS - "THEY, THEY HAVE ARRIVED AT THIS SETTLEMENT AND IT IS THEIR RECOMMENDATION. THE MONEY WILL BE BETWEEN THEM AND AND MR. NAPPI, UH, IT'S NOTHING OUT OF US AT ALL. IT'S OUT OF THE INSURANCE. THE DISCUSSION YOU'RE HAVING ON THE INSURANCE PREMIUM WOULD HAVE HAD SOME EFFECT, WE DON'T KNOW EXACTLY THE DOLLAR VALUE AS TO HOW MUCH EFFECT THAT'S HAD, THAT'S TRUE. UM, BUT THIS, THIS SETTLES IT ONCE AND FOR ALL. THE MOTION WOULD BE THAT THE CITY WILL EXECUTE A GENERAL RELEASE OF THE DEFENDANTS." (CONVERSATION ON THE TELEPHONE IN THE BACKGROUND PALMER WAS INAUDIBLE) BY ATTORNEY 3 VERBATIM TRANSCRIPT EMERGENCY COUNCIL MEETING - AUGUST 15, 1986 MAYOR HARRIS - "ALRIGHT?" COUNCILMAN VALLONE - "THANK YOU VERY MUCH." MAYOR HARRIS - "ANY OTHER DISCUSSION? GIVE ME A ROLL CALL." DEBORAH KRAGES - "VICE MAYOR ROTH?" VICE MAYOR ROTH - "YES." DEBORAH KRAGES - "COUNCILMAN MCCARTHY?" COUNCILMAN MCCARTHY - "YES." DEBORAH KRAGES - "COUNCILMAN RONDEAU?" COUNCILMAN RONDEAU - "YES." COUNCILMAN VALLONE - "YES. "~-~ DEBORAH KRAGES - "AND MA~iO_~KR-S?' MAYOR HARRIS - "YES." -- THIS MEETING IS ADJOURNED, GEN~3~EN~ CITY CLERK MAYOR VERBATIM TRANSCRIPT EMERGENCY COUNCIL MTG. - AUGUST 15, 1986 MAY BE. THEY'RE THEY'RE SAYING THAT THEY WANT TO GET OUT OF THIS CASE FOR THE STATED SUM OF WHICH NONE OF US KNOW THE AMOUNT AND THEY'RE MAKING THAT RECOMMENDATION, UH, SO, UH, I THINK THAT WE CAN RELY ON THEIR EXPERTISE AND GO AHEAD AND FOLLOW THEIR UH, RECOMMENDATION AND AND RELEASE THE CASE AND SETTLE THE MATTER ONCE AND FOR ALL." COUNCILMAN MCCARTHY - "I SEE AN OPPORTUNITY HERE NOW TO GET THIS CLOUD OVER THE CITY GONE..." MAYOR HARRIS - "REMOVED." COUNCILMAN MCCARTHY - "REMOVED SO WE CAN GET BACK TO THE BUSINESS OF RUNNING THE CITY AND THIS HAS HAMPERED THE CITY AND I WOULD CERTAINLY HOPE AND URGE ALL THE MEMBERS HERE OF COUNCIL TO VOTE FOR THIS THING AND VOTE AFFIRMATIVE." MAYOR HARRIS - "GENTLEMEN, I, I APPRECIATE THAT COUNCILMAN MCCARTHY, ABSOLUTELY AH, I TOLD SOMEBODY TODAY THAT I INHERITED THIS CANCER WHEN I CAME I~T~THF~~~}-~CERTAINLY HOPE TO BE IT LOOKS LIKE WE'RE AT T.{E MINT OF ~EIN~ *A~LE TO GET IT RESOLVED AND GET IT OUT OF THE WAY AND i, I 5NCOU~R~GE YOU, GENTLEMEN, TO VOTE FOR THIS AND LET'S G~THI$ THING Pp~ TO BED. ANY OTHER DISCUSSION?" ~ __ __ ~ COUNCILMAN VALLONE - "WELL, IF IF THE ADVICE I WANT TO GO ON PUBLIC...IF IT'S THE ADVI~F~ THE ATTORNEY THAT IS REPRESENTING THE INSURANCE CO~ANY ~OR THE CITY OF SEBASTIAN, THEN I WOULD BE REALLY FOOLIS}i N~T ~O~AKE THAT ATTORNEY'S ADVICE , MAYOR HARRIS - "YES." ATTORNEY PALMER - "YES." MAYOR HARRIS - "YES. HE'S ON THE PHONE NOW." COUNCILMAN MCCARTHY - "THE COUNCILMAN MIGHT WANT TO TALK WITH HIM TO GET REASSURED." ATTORNEY PALMER - "YOU WANT TO TALK TO HIM?" COUNCILMAN VALLONE - "YES, YES IF THAT'S POSSIBLE. YEAH." MAYOR HARRIS - "ASK HIM IF ITS..." COUNCILMAN VALLONE - "MR. ROBERTS? THIS IS COUNCILMAN VALLONE AND I WOULD LIKE TO (DISCUSSION TAKING PLACE - INAUDIBLE) IN REFERENCE TO YOUR ADVICE TO TO COUNCIL IN REFERENCE TO YOUR RECOMMENDATION IN THIS MATTER BEFORE WE TAKE A VOTE ON THE MOTION. UH, YOU'RE UH RECOMMENDATION IS A TWO POINT RECOMMENDATION IN REFERENCE THAT YOU RELEASE ALL DEFENDANTS THE FOUR DEFENDANTS IN THE CASE AND NOT TO DISCLOSE THE SETTLEMENT AMOUNT. IS THAT CORRECT? OKAY AND THIS IS YOUR ADVICE TO US TO UH, TO UH, MOVE ON THIS. RIGHT? I SEE. OKAY AND THIS IS GOING TO BE SETTLED OF COURSE WITHOUT GOING TO COURT, SO THERE'S NO COURT TRIAL ON IT WHATEVER? OKAY, I UNDERSTAND. I WANT TO THANK YOU VERY MUCH." MAYOR HARRIS - "DONT' HANG UP." COUNCILMAN VALLONE - "OKAY, THANK YOU, SIR." HOLD ON PLEASE SIR. DON'T HANG UP. VERBATIM TRANSCRIPT EMERGENCY COUNCIL MTG.- AUGUST 15, 1986 COUNCILMAN MCCARTHY - "CAN WE WAIT UNTIL MR. ON THE...?" PALMER IS FINISHED MAYOR HARRIS - "HE'S THROUGH. WE'RE READY." ATTORNEY PALMER - "ALRIGHT." MAYOR HARRIS - "DO YOU HAVE..." ATTORNEY PALMER - "HE'S ON THE PHONE. I HAVE NO FURTHER INPUT." MAYOR HARRIS - "OKAY." COUNCILMAN MCCARTHY - "THEN THE MOTION IS THAT UH, WE NEED TO UH, RELEASE THE CITY (INTERRUPTED BY ATTORNEY PALMER) HOLD THE DEFENDANTS HARMLESS?" PALMER - "NO EXECUTE A GENERAL RELEASE. EVERYBODY IS ATTORNEY RELEASING EVERBODY ELSE ~--~I~--C~ ~V~ COUNCILMAN MCCARTHY - ALRIGHTY T-.~EN I \WO/3LD MAKE THAT MOTION THAT THE CITY RELEASE TH~ D~END.~NT~..." , , ATTORNEY PALMER - "AND k~q~UL_~~J] I IWE_~ECOM5'-~ KNOWLEDGABLE OF THE AMOUNT OF THE SUM OF SETTLEMENT, WHICH WE MAY OR MAY NOT DO, EVERYBODY WILL AGREE THAT T~WI~OT DISCLOSE THAT ~OUNT SHOULD YOU BECOME KNOWLEDGABEE~F~ IT~U WILL NOT DISCLOSE THAT AMOUNT TO ANYBODY." ~ - " RA 's $ coND J VICE ~YOR ROTH - "SUPPORT." COUNCILMAN VALLONE - "YES, MR. MAYOR. UH, I HAVE TO BE HONEST TO THE COUNCIL THAT I FEEL PRESSURED IN THIS A~ I FEEL THAT THERE'S UH, UH, I KNOW A LOT IS AT STAKE HERE BUT UH, WHEN I GET THIS FEELING I'M BEING PUSHED INTO SOMETHING I REALLY DON'T UNDERSTAND I IN ALL DUE CONSCIENCE CAN'T REALLY SUPPORT IT. UH, I FEEL THAT THERE'S SOME MORE THINGS HERE. I KNOW THIS ATTORNEY IS ACTING IN GOOD FAITH, THAT HE'S REPRESENTING THE INSU~NCE COMPANY FOR THE CITY OF SEBASTIAN BUT YET AGAIN I STILL HAVE THAT RESERVATIONS. I WANTED TO EXPRESS THAT TO THE COUNCIL. YOU KNOW THE WAY EVERYTHING IS COMING DO~ RIGHT NOW I JUST WiSH I HAD SOME MORE INFORMATION IN FRONT OF ME SO I COULD LOOK AT IT. I'M JUST EXPRESSING MY CONCERNS TO THE COUNCIL." MAYOR HARRIS - "REALLY, COUNCILMAN VALLONE, I APPRECIATE THAT. I REALLY BELIEVE AS FAR AS INFORMATION IS CONCERNED, THE INFORMATION IS, WILL BE CONFIDENTIAL BETWEEN THE INSURANCE COMPANY AND THE AH, UM, CLIENT IN THIS CASE OR MR. NAPPI AND I DON'T BELIEVE THAT UH, THERE WOULD EVER BE A TIME THAT WE WOULD SEE PROBABLY ANY MORE INFORMATION THAN YOU'RE LOOKING AT RIGHT NOW. UH, THAT'S THE WAY THESE CASES ARE SETTLED IN THESE INSURANCE SETTLEMENTS AND AH, UM, I THINK VERY SIMPLY ALL THEY'RE ASKING FOR IS JUST THAT AH, THE CITY IS NOT GOING TO CARRY THE THING ANY FURTHER, THAT'S WHAT IT AMOUNTS TO." ATTORNEY PALMER - "WELL HERE'S WHAT HAPPENED. THEY EVALUATED THE CASE. THEY'D BEEN SITTING IN DEPOSITIONS THAT HAVE BEEN GOING ON FOR MONTHS AND MONTHS AND MONTHS. THEY EVALUATE THE RISK OF WHAT IT IS, WHATEVER THE SUM IS THAT THEY'VE SETTLED AGAINST THE POTENTIAL FOR LOSS SHOULD THIS CASE GO TO TRIAL AND ITS A VALUE JUDGEMENT OF SOME EXPERTS IN THE AREA AND THEY'RE RECOMMENDING THAT WE GO AHEAD AND AH, AND AH, SETTLE THE CASE INSTEAD OF TAKE THE RISK OF GOING TO TRIAL AND UH, LOSING WHATEVER THAT, THE SUM 4