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HomeMy WebLinkAbout10242007ctrv ~ ~~rE~7A,jV HOME OF PELICAN ISLAND SEBASTIAN CITY COUNCIL MINUTES REGULAR MEETING WEDNESDAY, OCTOBER 24, 2007 - 7:00 P.M. CITY COUNCIL CHAMBERS 1225 MAIN STREET, SEBASTIAN, FLORIDA Mayor Coy called the Regular Meeting to order at 7:00 p.m. 2. The Pledge of Allegiance was led by Cub Scout Troop 525. 3. There was a moment of silence. 4. Council Member Wolff read the civility pledge. We will be respectful of one another even when we disagree. We will direct all comments to the issues. We will avoid personal attacks. 5. ROLL CALL City Council Present: Mayor Andrea Coy Vice-Mayor Sal Neglia Council Member AI Paternoster Council Member Dale Simchick Council Member Eugene Wolff Staff Present' City Manager, AI Minner City Attorney, Rich Stringer City Clerk, Sally Maio Deputy City Clerk, Jeanette Williams Airport Director, Joe Griffin Growth Management Director, Rebecca Grohall Business Tax Specialist, Linda Lohsl Human Resources Director, Debra Krueger Police Lieutenant, Greg Witt Public Works Director, Jerry Converse Parks Supervisor, Chris McCarthy MIS Systems Analyst, Barbara Brooke Regular City Council Meeting October 24, 2007 Page Two 6. AGENDA MODIFICATIONS Modifications and additions require unanimous vote of City Council members None. 7. PROCLAMATIONS, AWARDS, BRIEF ANNOUNCEMENTS Presentations of proclamations, certificates and awards, and brief timely announcements by Council and Staff. No public input or action under this heading. 07.004 A. Certificate of Appreciation to Trish Adams for Natural Resources Board Service Mayor Coy read and presented the certificate to Trish Adams. Announcements Mr. Neglia announced that a box will be placed in the City Hall lobby by the ecumenical council to collect food for the holidays. Ms. Simchick announced the Greater Federation of Woman's Club of Sebastian and the Sebastian Jr. Woman's Club are hosting a haunted house on Main Street; the Natural Resources Committee is hosting a Champion Tree Clinic Nov. 10tH at 9:00 a.m.; the Power Squadron will give away free life vests on November 17tH at the Yacht Club and the grand re-opening of the Historical Society Museum will be November 27tH, 11:00 a.m. to 2 p.m. Mr. Wolff announced there will be a Veterans Day service at Riverview Park on November 10tH Mayor Coy announced there will also be Veterans Day activities in Vero Beach on November 11tH 8. ITEMS CARRIED FORWARD FROM OCTOBER 10, 2007 MEETING 07.82 A. First Reading Ordinance No. 0-07-14 -Change `Occupational License' to `Local 1-10 Business Tax' -Schedule Public Hearing November 14, 2007 (City Attorney Transmittal, 0-07-14) AN ORDINANCE OF THE CITY OF SEBASTIAN, FLORIDA, AMENDING CODE OF ORDINANCES CHAPTER 30 BUSINESSES ARTICLES ii LICENSING TO REFLECT STATUTORY CHANGES; PROVIDING FOR CONFLICTS, SEVERABILITY AND EFFECTIVE DATE. The City Attorney read Ordinance No. 0-07-14 by title and explained the name change is mandated by the legislature, collection has moved from the Finance Department to the Growth Management Department, and the date to July 1St MOTION by Mr. Paternoster, and SECOND by Mr. Neglia, to pass Ordinance No. 0-07- 14 on first reading and set public hearing for November 14, 2007. 2 Regular City Council Meeting October 24, 2007 Page Three Roll call result as follows: Ayes: Paternoster, Simchick, Wolff, Coy, Neglia Nays: None Passed 07.183 B. Approval of Date for Christmas Parade - Saturday, December 1, 2007 -From Main 11 Street to Deliver Santa Claus to His House in Riverview Park -Sponsored by City, GFWC Sebastian Junior and Woman's Clubs, Sebastian Property Owners, and Chamber of Commerce -Specific Street Closings and Times to Come Back in Report to Council at Next Meeting Mr. Gilliams thanked the City Clerk for her `street closing' courtesy call. MOTION by Ms. Simchick, and SECOND by Mr. Paternoster to approve December 1St for the Christmas Parade. Voice vote result was follows: Ayes: Paternoster, Simchick, Wolff, Coy, Neglia Nays: None Passed 9. CONSENT AGENDA All items on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of consent agenda items unless a member of City Council so requests; in which event, the item will be removed and acted upon separately. If a member of the public wishes to provide input on a consent agenda item, he/she should request a Council Member to remove the item for discussion prior to start of the meeting or by raising his/her hand to be recognized. 13-22 A. Approval of Minutes - 10/3/07 Special Meeting -Collier Creek 23-25 B. Approval of Minutes - 10/3/07 Special Meeting - P & Z Member Removal 27-40 C. Approval of Minutes - 10/10/07 Regular Meeting 41-50 D. Approval of Minutes - 10/17/07 Workshop o7.os2 E. Approve Sixth Annual Treasure Coast Crafters Club Craft Show at West End of 51-56 Riverview Park - 12/15 and 12/16 - 9 am to 4 pm - $100 Fee Paid (Parks Transmittal, Application, Receipt, List of Local Donations) 07.185 F. Approve Piggyback Purchase (Florida Sheriff's Association Bid 07-15-0827) 57-60 2008 GMC Sierra Pickup for Parks and Recreation Division -Alan Jay Automotive Network in Sebring, FL in the Amount of $15,599 (Parks Transmittal, FSA Quote) Regular City Council Meeting October 24, 2007 Page Four 07.186 G. Authorize City Manager to Accept COPS Secure Our Schools Award 61-67 Agreement #2007CKWX0091 in the Amount of $12,502 and Administer as Pass-Thru Agency on Behalf of Sebastian Charter JHS and Sebastian Elementary (PD Transmittal, Letter from SCJHS, Budget Summary) 07.187 H. Resolution No. R-07-43 -Florida Dept. of Transportation Joint 69-102 Participation Agreement for Construction of T-Hangars (Airport Transmittal, R-07-43, Agreement) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PUBLIC TRANSPORTATION JOINT PARTICIPATION AGREEMENT WITH THE FDOT TO PROVIDE FUNDING TO CONSTRUCT T-HANGARS; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. 07.188 I. Resolution No. R-07-44 -Terminating Florida Dept. of Transportation Joint 103-107 Participation Agreement for Design of "Taxiway C" (Airport Transmittal, R- 07-44, Termination Form) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE CITY MANAGER TO TERMINATE A PUBLIC TRANSPORTATION JOINT PARTICIPATION AGREEMENT WITH THE FDOT THAT PROVIDED FOR THE DESIGN ON TAXIWAY "C"; PROVIDING FOR CONFLICT; PROVIDING FOR EFFECTIVE DATE. 07.189 J. Resolution No. R-07-45 -Endorsing Sebastian River Area Chamber of 109-111 Commerce Effort to Establish an Economic Development Plan (City Manager Transmittal, R-07-45) A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, ENDORSING THE EFFORTS OF THE SEBASTIAN RIVER AREA CHAMBER OF COMMERCE TO ESTABLISH AN ECONOMIC DEVELOPMENT PLAN FOR THE SEBASTIAN AREA. Mr. Gilliams said that Council missed "Input from the Public." Mayor Coy explained they were on the consent agenda. He received his first warning and asked for a point of order. The Mayor then gave him a second warning, and he took his seat. Mr. Neglia removed item H. Mr. Paternoster removed item F. MOTION by Mr. Neglia, and a SECOND by Mr. Wolff, to approve items A, B, C, D, E, G, I and J. Roll call result was as follows: Ayes: Simchick, Wolff, Coy, Neglia, Paternoster Nays: None Passed 4 Regular City Council Meeting October 24, 2007 Page Five Item F Mr. Paternoster said there are usually more details with the quote and asked if it was a standard suspension package. The Parks Superintendent responded the truck was a six-foot bed, v-6 cylinder, standard suspension, bare bones package. MOTION by Mr. Paternoster, and SECOND. by Mr. Wolff to approve item F, the pickup for the Parks and Recreation Division. Roll call result was as follows: Ayes: Wolff, Coy, Neglia, Paternoster, Simchick Nays: 0 Passed Item H Mr. Neglia asked when the Airport Director anticipates more demand for hangars. The Director there is a current demand and with the fuel system it would be good to have more hangars ready for citizens. Mr. Neglia asked if the hangars will sit vacant and the Director explained the benefit of having apublic/private partnership is that the City will receive a royalty whether or not the hangars are full. Mr. Paternoster asked if the hangars will be competition for current company, SheltAir and he said people are looking for a reduction. The Director said there will be a scoring mechanism that will provide for a fair price. The City Manager pointed out that City should decide if they want to be in the hangar business, and if so, will probably rent at a lower price which will hurt SheltAir but the first step is to approve the joint participation agreement (JPA) first and work the details out later. Discussion followed on working out a plan first, then applying for the grant; terminating JPA's; the grant deadline; and being ready for the market demand. The City Manager offered three options: A) No more hangars at the Airport, B) Use a private company to be the builder/operator/maintainer of the hangars, or C) The City gets into the hangar business and decide if we want to compete with SheltAir or offer another kind of hangar such as box, shade or a variation of hangars. He offered to come back in November with a detailed presentation with the various options. MOTION by Mr. Paternoster, and SECOND by Mr. Neglia to approve Resolution No. R-07-43 and the Joint Participation Agreement for the construction of T- hangars. Regular City Council Meeting October 24, 2007 Page Six Roll call result was as follows: Ayes: Coy, Neglia, Paternoster, Simchick, Wolff Nays: None Passed 10. COMMITTEE REPORTS & APPOINTMENTS City committee reports and Council Member regional committee reports. No public input or action except for City committee member nominations and appointments under this heading. 07.065 A. Police Pension Board 113-126 (City Clerk Transmittal, FS, Applications, List, Ad) Interview Unless Waived, Submit Nominations and Fill Two Civilian Positions -Terms to Expire 10/09 (Clerk Transmittal, FS 185.05, Applications, Member List) The Mayor explained that John Oakes was a late applicant and it would be up to Council if he should be considered. Ms. Simchick said that she spoke to Mr. Oakes who said he was unaware that the two applicants were incumbents and he would like to withdraw his interest at this time and apply for the fifth member position to be chosen by the Board. The City Clerk said she would pass his request onto the Pension Board. Neither applicant was present. MOTION by Mr. Neglia with a SECOND by Mr. Paternoster, to appoint Mr. Taracka and Mr. Zomok for another term. The Mayor called for recess at 8:02 p.m. Upon return at 8:17 p.m., all members were present. 11. PUBLIC HEARINGS -None 12. UNFINISHED BUSINESS 07.148 A. Presentation of Clambake Foundation Financial Records Relating to Clambake Festival by Attorney Warren Dill (Backup to be Provided at Meeting by Mr. Dill) Warren Dill, Attorney representing the Clambake Foundation gave the history and purpose of the organization. He read a list of organizations and people involved. (attached) He went on to say that in response to a public records request, the City acted in an abundance of caution and requested an opinion from the Attorney General whose response covered only two out of nine totality of factors criteria established by the courts that should be considered in determining whether a private entity is subject to the public records law. 6 Regular City Council Meeting October 24, 2007 Page Seven Mr. Dill submitted that it would take more than two factors to be subject to the public records law. Mr. Dill also pointed out that the Attorney General said it "may be advisable to ensure that all records relating to the clambake festival be open," and the legal use of the word "may" is "permissive or discretionary." Mr. Dill said there is no legal requirement to open the records and therefore the foundation would not be turning over the records. Mr. Dill distributed and read from an accounting by Anthony Donini, a local certified public accountant who reviewed the records from day one through the end of September of this year and was impressed with such well-cared for records. He explained the accountant used a fiscal years beginning in April so there was a separate document for April 2007 to September 2007. (attached) Mr. Dill noted there is a discrepancy between the document previously provided to some Council members so he explained that the Council on Aging is owed $13,762.84 which will be paid when documentation is submitted, and a $2,700.00 check was written to the Boys & Girls Club for a used ice cream machine which the foundation considered to be a donation and the accountant considered to be furniture & fixtures, and when those two amounts are added back in to the previous document, the numbers are close. He read off the recipients of the proceeds since the beginning of the foundation. (attached) Keith Miller, Sebastian, said he had been told that member of Council had taken $9,000 and he knew that it was not true. Baxter Coston, Balboa Street, Sebastian, said that the residents probably thought the City sponsored this event as he did until tonight; and requested the name Sebastian be removed from the event. Neil Lagin stated every non-profit organization has rules Julie Scozzari spoke on her husband's behalf and his intent was to show event organizers could not get away with enforcing laws they themselves didn't follow; he would like to see the clambake back. She also said they hoped the clambake would come back and everything would be done right. Charlie Saraga said he had a great time at the festival and hoped it would come back. Betsy Field-Connelly thanked Mr. Dill for his presentation and hoped the clambake will come back. Tammy Outright said Mr. Dill stated tax payer money and CRA funds were used and those records should be open for inspection too. The Mayor said those records were presented months ago. 7 Regular City Council Meeting October 24, 2007 Page Eight Damien Gilliams started to read from a document he had provided to the Council accusing foundation officers of being disrespectful to citizens, polluting the park and the City Attorney incorporating the foundation at the City's address. The Mayor asked if he was pressing charges. He said he was stating a fact that it was incorporated at City Hall and she gave him his last warning. Mr. Gilliams went on to say the City Attorney was derelict in his duties. Mayor Coy gave him his last warning and told him to leave and asked that he be removed. Lt. Witt removed him from the meeting. Richard Gilmore said he was proud of Council for what they went through and wanted to see the clambake continue. Barbara Sammon said service organizations are the backbone of the community and hoped the clambake would come back. Don Wright requested Sebastian stay in the event's name and encouraged the foundation to continue. In response to Mr. Paternoster, Mr. Dill explained the City's role was that they were one member of a committee that made decision of benefactors. Mr. Paternoster said if the event continued the agreement should be reworked with all of the correct terminology. Mayor Coy called for a break at 9:36 and upon return at 9:52 all members were present. 13. NEW BUSINESS -None 14. PUBLIC INPUT Public Input for each individual is five minutes, however, it can be extended or terminated by a majority vote of Council members present. There was no public input. Mr. Wolff reminded Council that the location of "Public Input" was to be reviewed 60 days after the July retreat and since "Public Input" was not finished from the last meeting and rolled over tonight that perhaps individuals could give their names to the City Clerk to go on the next agenda in such cases. Mayor Coy said Public Input was not rolled forward because it is considered a city business meeting and requested this be put on the next agenda for discussion. Ms. Simchick also asked that the short/long term goals be put on the next agenda to assist in evaluating the City Manager and Attorney, and to recap the goals for the benefit of Mr. Paternoster. Regular City Council Meeting October 24, 2007 Page Nine 15. CITY ATTORNEY MATTERS The City Attorney reported that he had been in trial for the past two days on a skate park case which resulted in a victory. He explained that the skate park case and the Fellsmere jury trials have kept him busy and he still owes the resolution relating to non-conforming businesses. He also explained that he did not feel as a charter officer that it was appropriate to take City time to speak personally on the clambake case and legally he cannot render legal advice to Council while sitting on the foundation's board. He said he would not serve again on the foundation board and anticipated his term to expire within the week. 16. CITY MANAGER MATTERS The City Manager gave kudos to the City Attorney for his two recent trials and announced the award of a F.I.N.D. grant for the Main Street Project. He thanked the F.I.N.D. commissioners, Bruce Barkett and Jerry Sansom, State Representative Ralph Poppell, Margie Reynolds, and Rebecca Grohall for their assistance with the grant. 17. CITY CLERK MATTERS The City Clerk invited the public to come to the Barber Street Sports Complex football field dedication to Garrie Scott this Saturday at noon. 18. CITY COUNCIL MATTERS A. Mr. Paternoster Mr. Paternoster reminded the City Attorney to add the overgrown lot ordinance to his list. The City Attorney said it is on Trish Adams' desk with Fish and Wildlife Service. B. Ms. Simchick Ms. Simchick. said she had a rewarding opportunity to volunteer for the Special Olympics at the County pool and invited the public to contact her to volunteer for next year at 473-1878 or dsimchick@cityofsebastian.org. She also mentioned that she knows of someone who participated in the My Safe Home Program and gave the number for anyone interested in the program. (1-866-513-6734) Mayor Coy said she has an appointment with the Safe Inspector on Monday and will report back. 9 Regular City Council Meeting October 24, 2007 Page Ten C. Mr. Wolff Mr. Wolff reported that he has watched the sidewalk progress on Barber and Main Street and suggested that during the next bid cycle a shorter time period lapse between removing sod and laying the sidewalk especially during the rainy season. D. Mayor Coy None. E. Mr. Nealia Mr. Neglia said he too contacted by Ms. Adams regarding the overgrown lot ordinance. He reminded the public to donate to the ecumenical food box in City Hall. He said Hardee Park trail is the same and people are afraid of falling into the ruts. He asked the City Manager to look into it. He reported organization for the next American Cancer Society Relay for Life has begun and asked people to be generous with their donations. 19. Being no further business, Mayor Coy adjourned the Regular Meeting at 10:16 p.m. Approved at the November 14th, 2007 Regular City Council meeting. Andrea Coy, Mayor ATTESTs-~ Sally A. Maio, M~1C -City 10 THE SEBASTIAN CLAMBAKE FOUNDATION, INC. Businesses, Organizations and Individual Contributors AdPro Graphics Knights of Columbus Americas Local Clam Farmers Aqua Gem Farms Mailboxes, Etc. Boys' and Girls' Club of Indian River County Palm Bay Fire Extinguishers Brian Nolan, IRC Fire Rescue Positive Change Health Center Capp Custom Builders Press Journal Capt Hiram's Radio Stations: 99.7 GNX Captain Mike Peppe 101.7 Real Radio Cheney Brothers, Inc. STAR 94.7 Chief Davis and Sebastian Police The Breeze 97.3 FM Chris Pinson & Sebastian Entertainment The Ocean 97.1 FM Citrus Bank Oldies 103.7 City of Sebastian WAVE FM 92.7 City of Sebastian, CRA WAXE 1370 Coca-Cola Realty King Commercial Workers of America Loca13180 Scripps Treasure Coast Newspaper Council on Aging Sebastian Area Chamber of Commerce Craig Cobb and friends Sebastian Inlet Sail & Power Squadron Exchange Club of Sebastian Sebastian Lions Club Felten Insurance Sebastian Properly Owners Association GFWC Sebastian Junior Women's Club Sebastian River High School Grant Seafood Festival Organization Sebastian River High School Band Idea Garden Advertising Sebastian River Medical Center Indian River National Bank Sebastian Soccer Association Indian River County Firefighters Sebastian Tae Kwon Do Indian River County Sheriff's Office Senior Resource Association Indian River Seafood Smalley Sheds Inside Track Almanac State of Florida Aquaculture Program Jim Sexton Sysco Jim Smalley Wal-Mart Kashi Ashram Washington Mutual Kashi School of Yoga Waste Management, Inc. Kayaks, Etc William Theiss & Sons Distributors Kee Indian River Beautiful Ahthony M. Donini, CPA, PA 1623 US Highway 1, Suite B-4 Sebastian, FI. 32958 Telephone: (772) 388-3301 Fax: (772) 388-0810 doninia@bellsouth. net To the Board of Directors The Sebastian Clambake Foundation Inc. 1565 US Highway 1 Sebastian, FL 32958 I have compiled the accompanying statement of assets, liabilities, and equity - cash basis of The Sebastian Clambake Foundation Inc: (a nonprofit corporation) as of April 30, 2007, 2006, 2005, 2004 and 2003 and the related statements of support and expenses -cash basis for the fiscal years then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. October 9, 2007 The Sebastian Clambake Foundation, Inc. Assets, Liabilities and Equity -Cash Basis As of April 30, 2007 ASSETS Current Assets Checking/Savings, Checking - IRNB Total Checking/Savings Total Current Assets Fixed Assets Furniture and Equipment Total Fixed Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities current Liabilities Other Current Liabilities Sales tax payable Total Other Current Liabilities Apr 30, 07 Apr 30, 06 128, 668.36 128, 668.36 128,668.36 17, 886.78 17, 886.78 146, 555.14 9,255.55 9, 255.55 9, 654.36 9,255.55 9,654.36 Total Current Liabilities Total Liabilities Equity Unrestricted Net Assets Net Income Total Equity TOTAL LIABILITIES & EQUITY 9,255.55 77, 644.35 77,644.35 77,644.35 8,387.74 8,387.74 86, 032.09 9, 654.36 9, 654.36 76, 377.73 18,151.10 60,921.86 58,226.63 137,299.59 76,377.73 146, 555.14 86, 032.09 See accountant's compilation report. The Sebastian Clambake Foundation, Inc. Assets, Liabilities, and Equity -Cash Basis As of April 30, 2005 ASSETS Current Assets Checking/Savings Checking - IRNB Total Checking/Savings Total Current Assets Fixed Assets Furniture and Equipment Total Fixed Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Other Current Liabilities Sales tax payable Total Other Current Liabilities Total Current Liabilities Total Liabilities Equity Unrestricted Net Assets Net Income Total Equity TOTAL LIABILITIES 8~ EQUITY Apr 30, 05 13, 787.48 13, 787.48 13,787.48 4, 363.62 4, 363.62 4, 363.62 4, 363.62 18,151.10 75,769.78 0.00 0.00 0.00 0.00 69,446.78 (51,295.68) 18,151.10 18,151.10 Apr 30, 04 71,406.16 71,406.16 71,406.16 6,323.00 6,323.00 6,323.00 6,323.00 13,408.76 56,038.02 69,446.78 75,769.78 See accountants compilation report. The Sebastian Clambake Foundation, Inc. Assets, Liabilities, and Equity -Cash Basis As of April 30, 2003 Apr 30, 03 ASSETS Current Assets Checking/Savings Checking - IRNB 13,408.76 Total Checking/Savings 13,408.76 Total Current Assets 13,408.76 TOTAL ASSETS 13,408.76 LIABILITIES & EQUITY Equity Net Income 13,408.76 Total Equity 13,408.76 TOTAL LIABILITIES & EQUITY 13,408.76 See accountants compilation report. J Q t- O F- O [1 Q ' CO O >. (0 O , ~ j Q N . Q• ~ O m T. ~ ~ V N C ~ ~ U ~, ~ , of w N c CC ~ p ~~ Q ~ N N C ; ' ~' ~ '~- O K Q o i ` ~ YWt ~' ~ ~ ~ C O ~ O i ! ~ w ` ~; C ~ O Q cC a N ~ ' N ~ ~ ~ ~ ~' ~ ~ ~ ~ ~ ~ , ++ d M o F... ~ ~! 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N ~ U CA d ~ C c O U U c9 N a~ The Sebastian Clambake Foundation, Inc. Notes to Financial Statements April 30, 2007 Note 1 -Summary of Significant Accounting Policies This summary of significant accounting policies of The Sebastian Clambake Foundation, Inc. (the Foundation) is presented to assist in understanding the Foundation's financial statements. The financial statements and notes are representations of the Foundation's management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles. Nature of Operations - The Foundation was chartered in the State of Florida on April 30, 2002. The Foundation was chartered for the exclusive purpose of promoting community spirit by organizing and leading a coalition of community and public service groups to host one or more public festivals annually within Indian River County, Florida, with the proceeds raised used to fund local charitable or public-purpose projects related to: cultural and public arts, public beautification efforts, youth or senior citizen civic services, public recreation and open space, environmental protection, educational programs or such other similar charitable or public-purpose endeavors. A board of volunteer directors governs the Foundation and unpaid volunteers perform all of the work. Basis of Accounting - The Foundation's policy is to prepare its financial statements on the cash basis of accounting; consequently, certain revenue are recognized when received rather than when earned, and certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. Equipment - It is the Foundation's policy to record equipment at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. The Sebastian Clambake Foundation, Inc. Notes to Financial Statements April 30, 2007 Note 2 -Income Taxes The Foundation is currently in the process of applying for tax-exempt status with The Internal Revenue Service (IRS). Management fully expects to be formally recognized as tax exempt under Section'501(c) 4 of the Internal Revenue Code. Therefore, no provision or liability for federal income taxes has been included in these financial statements. Although the Foundation expects to be granted tax-exempt status, such status has not yet been formally granted. If IRS were to deny tax-exempt status to the Foundation, it would have a material adverse impact on the Foundation's finances. The Foundation uses the cash method of accounting for tax purposes. Note 3 -Concentration of Credit Risk The Foundation maintains most of its cash balances at one financial institution located in Sebastian, Florida. The Federal Deposit Insurance Corporation (FDIC) insures accounts at this institution for up to $100,000. The Foundation has not experienced any losses in such acccunts and believes it is not exposed to any significant credit risk to cash. Anthony M. Donini, CPA, PA 1623 US Highway 1, Suite B-4 Sebastian, FI. 32958 Telephone: (772) 388-3301 Fax: (772) 388-0810 doninia@bellsouth.net To the Board of Directors The Sebastian Clambake Foundation Inc. 1565 US Highway 1 Sebastian, FL 32958 I have compiled the accompanying statement of assets, liabilities, and equity - cash basis of The Sebastian Clambake Foundation Inc. (a nonprofit corporation) as of September 30, 2007 and the related statements of support and expenses - cash basis for the five months then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements information that is the representation of management. I have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them. October 9, 2007 The Sebastian Clambake Foundation, Inc. Assets, Liabilities and Equity -Cash Basis As of September 30, 2007 Sep 30, 07 ASSETS Current Assets Checking/Savings Checking - IRNB 26,892.33 Total Checking/Savings 26,892.33 Total Current Assets 26,892.33 Fixed Assets Furniture and Equipment 19,745.78 Total Fixed Assets 19,745.78 TOTAL ASSETS 46,638.11 LIABILITIES & EQUITY Equity Unrestricted Net Assets 137,299.59 Net Income (90,661.48) Total Equity 46,638.11 TOTAL LIABILITIES & EQUITY 46,638.11 See accountant's compilation report. The Sebastian Clambake Foundation, Inc. Statement of Support and Expenses -Cash Basis May through September 2007 TOTAL Ordinary Income/Expense Expense Administrative 166.25 Professional fees 1,300.00 Total Expense 1,466.25 Net Ordinary Income (1,466.25) Other Income/Expense Other Expense Grants and allocations 89,195.23 Total Other Expense 89,195.23 Net Other Income (89,195.23) Net Income (90,661.48) See accountant's compilation report. 10:55 AM The Sebastian Clambake Foundation, Inc. ,0/09!07 Transaction Detail By Account Accrual Basis May through September 2007 Type Date Num Name Split - -_ - Amount __ Balance Grants and allocations Check 5/24/2007 1152 By the River Checking -IRNB 30,000.00 30,000.00 Check 7/25/2007 1157 Indian River Council on Aging Checking -IRNB 5,972.00 35,972.00 Check 7!25/2007 1159 Sebastian Soccer Assoc. Checking -IRNB 30,766.94 66,738.94 Check 7!25/2007 1158 Indian River Council on Aging Checking -IRNB 1,945.00 68,683.94 Check 7/25/2007 1160 City of Sebastian Checking -IRNB 20,511.29 89,195.23 Total Gran ts and allocations 89,195.23 89,195.23 TOTAL 89,195.23 89,195.23 Page 1 The Sebastian Clambake Foundation, Inc. Notes to Financial Statements September 30, 2007 Note 2 -Income Taxes The Foundation is currently in the process of applying for tax-exempt status with The Internal Revenue Service (IRS). Management fully expects to be formally recognized as tax exempt under Section 501(c) 4 of the Internal Revenue Code. Therefore, no provision or liability for federal income taxes has been included in these financial statements. Although the Foundation expects to be granted tax-exempt status, such status has not yet been formally granted. If IRS were to deny tax-exempt status to the Foundation, it would have a material adverse impact on the Foundation's finances. The Foundation uses the cash method of accounting for tax purposes. Note 3 -Concentration of Credit Risk The Foundation maintains most of its cash balances at one financial institution located in Sebastian, Florida. The Federal Deposit Insurance Corporation (FDIC) insures accounts at this institution for up to $100,000. The Foundation has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk to cash. The Sebastian Clambake Foundation, Inc. Notes to Financial Statements September 30, 2007 Note 1 -Summary of Significant Accounting Policies This summary of significant accounting policies of The Sebastian Clambake Foundation, Inc. (the Foundation) is presented to assist in understanding the Foundation's financial statements. The financial statements and notes are representations of the Foundation's management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles. Nature of Operations - The Foundation was chartered in the State of Florida on April 30, 2002. The Foundation was chartered for the exclusive purpose of promoting community spirit by organizing and leading a coalition of community and public service groups to host one or more public festivals annually within Indian River County, Florida, with the proceeds raised used to fund local charitable orpublic-purpose projects related to: cultural and public arts, public beautification efforts, youth or senior citizen civic services, public recreation and open space, environmental protection, educational programs or such other similar charitable or public-purpose endeavors. A board of volunteer directors governs the Foundation and unpaid volunteers perform all of the work. Basis of Accounting - The Foundation's policy is to prepare its financial statements on the cash basis of accounting; consequently, certain revenue are recognized when received rather than when earned, and certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. Equipment - It is the Foundation's policy to record equipment at cost. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. 9:52 AM The Sebastian Clambake Foundation, Inc. ,o/,0/07 Transaction Detail By Account Accrual Basis All Transactions Type Date Num Name Split Amount Grants and allocations Check 4/13/2003 1035 American Legion Checking -IRNB 50 00 Check 4/13/2003 1032 Boys 8 Girls Club Checking -IRNB . 32 230 00 Check 4/13/2003 1034 Masonic Lodge Checking -IRNB , . 50 00 Check 4/13/2003 1037 Sebastian Band Boosters Checking -IRNB . 300.00 Check 4/13/2003 1036 Sebastian Girls Volleyball Checking -IRNB 500 00 Check 4/13/2003 1033 Sebastian Propery Owners Association Checking -IRNB . 75 00 Check 10/22/2004 1069 Boys & Girls Club Checking -IRNB . 50 000.00 Check 3/22/2005 1095 Sebastian Area Chamber of Com. Checking -IRNB , 1 500.00 Check 6/1/2006 1097 SRHS Band Boosters Checking -IRNB , 1 000 00 Check 11/9/2006 1127 Exchange Club Checking -IRNB , . 1 000.00 Check 1 t/14/2006 1133 Kashi Checking -IRNB , 1 000.00 Check 11/14/2006 1134 City of Sebastian Checking -IRNB , 500.00 Check 11/14/2006 1130 GFWC Seb. Junior Womans Club Checking -IRNB 800 00 Check 11/14/2006 1131 Sebastian Propery Owners Association Checking -IRNB . 1 000 00 Check 11/14/2006 1132 Boys 8 Girls Ctub Checking -IRNB , . 500 00 Check 4/11/200 1151 Council on Aging Inc Checking -IRNB . 8 320.16 Check 5/24/2007 1152 By the River Checking -IRNB , 30 000.00 Check 7/25/2007 1157 Indian River Council on Aging Checking -IRNB , 5 972.00 Check 7/25/2007 1159 Sebastian Soccer Assoc. Checking -IRNB , 30 766 94 Check 7/25/2007 1158 Indian River Council on Aging Checking -IRNB , . 1 945 00 Check 7/25/2007 1160 City of Sebastian Checking -IRNB , . 20,511.29 Total Grants and allocations 188,020.39 _. _. _ _. TOTAL 188,020.39 Balance 50.00 32,280.00 32,330.00 32,630.00 33,130.00 33, 205.00 83,205.00 84,705.00 85, 705.00 86, 705.00 87,705.00 88, 205.00 89, 005.00 90, 005.00 90,505.00 98,825.16 128,825.16 134, 797.16 165, 564.10 167,509.10 188, 020.39 188,020.39 188,020.39 Page 1