May 31st, 2010
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1. CAN THE MAYOR READ A BALANCE SHEET? CAN JUDY? CAN JIM?
Certainly, they are in business. They know that income must be high enough to meet outgo—you know revenue as against expenses of operating the business. Adam runs an upscale wine and food bar. We know Judy can also. She has watched the real estate title business go away. We are told that she has taken a large pay cut and rides circuit to keep open offices that were thriving and now have no work. Jim Hathaway is a vendor. No money coming in, no paycheck on what we suspect is a Commission on sales if business is off. They can all read balances on a profit and loss statement.
We are told that many businesses in the City are not profitable and the owners pay the employees but do not take home a paycheck for themselves. After a while the business fails. But some businesses do not fail because the City pumps money into them. The Marine Discovery Center tells you that it takes no City money. A joke is a joke is a joke. Ask them if the kayak business is profitable if they had to pay for the kayaks and building ($40,000) and were charged rent for the location (like the Bike Shop)? Enough said. The report from Commissioner Grasty says they take no City money. Everybody should laugh in unison.
A suggestion. To be consistent with “not giving money” to the Marine Discovery Center” as presented by Commissioner Grasty, the City of New Smyrna Beach should pay the rent for Adam’s business, pass an ordinance to direct that the few property settlements in the City be given to Judy, and require everyone in the City employment to only eat bread products that Jim sells. If the MDC is not taking money, neither would we be inclined to think that the Mayor and his fellow Commissioners were receiving any benefits. Maybe they should also pay to paint Jack’s house. He can deny it was a benefit.
2. MUNICIPAL GOLF COURSE LOSSES.
Since the City has been required to take the non-performing bond from the golf course and apply it to the golf course accounts, the question is going to be how the $500,000 accumulated costs are going to show up as losses? Good bookkeeping would show that the annual loss would have to be increased by about $166,000 for each of the last three or four years. Of course they could just show a loss this year of the $500,000 and the current regular loss which the Shadow estimates as probably in the $300,000 range. That does not include the subsidy for the Italian Restaurant. Ho, Hum, just another day for giving away your money.
3. THE PROPOSED NEW FINANCE DIRECTOR--$10,000 MORE THAN THE LAST ONE WE ARE TOLD
His credentials look good. LINK We thought this was a buyer’s market. But no, the City seems to think that offering more money is always the right way to go. He did not even have accused them of discrimination because “he is a boy”.
“Best Blogs of the Week”
(Edited for grammar and punctuation)
A POTPOURRI OF CITIZEN COMMENTS IS
AGAIN PROVIDED THIS WEEK IN ORDER
FOR YOU TO GET IN TUNE WITH THE
MOOD OF OUR READERS
5/26/2010, 1:29 pm
Like Magic
Sell the property to Anglers and they will do a 180 turn. Instead of wanting city to give away benefits they will want city to run a tight ship to keep taxes down. It would be like Marilyn Lindley going from board president to owner of municipal golf course. She would cut expenses the very next day. Do you think Chamber would act differently if they owned building? I think they would be looking out for all members not a few. They sure as heck would have kept building in better condition. Real life is different - Sell everything...
5/24/2010, 4:21 pm
Taxes Fees galore
Don't forget the $250,000 garbage collector had to pay city - cell phone tax and cable service fee on and on - we pay that not Liz Yancey or Judy R this gets passed on to all of us so they can blow it on their buddies.
5/24/2010, 11:59 am
School truths
Schools are no longer feasible. To be cost effective, schools must limit staff to the teachers, one principal, one or two custodians, a few food service staff and that’s it. Still expensive but tolerable. When you add a bunch of support staff, managers, assistants to assistants going to conferences and seminars, it doesn’t work. It reminds us having 4 beat cops doing the work and twenty desk-alcoholics under the cover of support and management staff doesn’t work either.
5/25/2010, 8:24 am
Jake
Daytona got rid of its fire boat 8 years ago because of the up-keep. I remember when they bought it some 22 years ago, radar, loran-call top notch for a city like Boston or Jacksonville...but Daytona... There water front was like 4 miles long... It (the fire boat) was a hose draggers dream, nice to have and it will be needed once a year for the Christmas parade. Would a fire boat have helped the other...The answer is yes...IT WOULD HAVE HELPED SINK THE FLAMING VESSEL FASTER. Would have saved the vessel NO. Just added more burden to the taxpayer. What would have really helped would be an adequate fire main on the docks for just such events. Where was Port Oranges 250K mountain wild fire tanker when the fire happened?? On a pill run?
DEAR PAM
As we have stated in the past, we realize that the City Manager is limited in the resources available to her for pursuing cost reduction projects, so we have decided to help her out and provide draft letters for her review. As we have said, this will free her up for important things, like dealing with all the serious problems of the police and fire department pensions.
Dear Mayor Barringer,
The only real way to cut the fire department deficit spending is to reduce staff to two a shift and to address the fire department pension plan. We can address the pension the way that Port Orange has devised by cutting pay if the union will not agree to pension cuts. We also can take the lead announced by the school Board and tell personnel in the DROP program that their services are no longer needed. Did you make any promises to the fire department union that would not permit us to make these needed changes?
PAM
NOTES
1. THE MILL RATE IN VOLUSIA COUNTY WAS ONE OF THE FOUR HIGHEST IN THE STATE: NOW ONE OF TWO HIGHEST
Mill rates for the Florida Counties last year are listed in the LINK Now we are one of two highest. What is the matter with our elected officials? They are feeding at the same trough and in New Smyrna Beach the health insurance for the five elected Commissioners is almost $12,000 each plus their salary. Salary is $21,000 for the Mayor and $15,000 for each of the Commissioners. So the real numbers of their salaries plus health care is $$33,000 and $27,000 respectively. That is about or more than the average wage owner in Volusia County. The Shadow bets they will not look at the employee health benefits package to make the employees contribute more to the costs.
2. THE PROPOSAL BY THE FIRE CHIEF TO CUT NINE POSITIONS BY CLOSING THE DOWNTOWN FIRE STATION IS A SHAM
It is like saying he wants to cut out the immediate response that is available for what claims to be a business community on Canal and the close by protection for Bert Fish. Several days during the year a hurricane might close the South High Bridge. On those days coverage would be down because the 3rd Avenue station equipment could not use the bridge. And then there is the mysterious gap shown by the schematic which shows reduced coverage on beachside. It was larger coverage when he wanted the 3rd Avenue station when the coverage went to Sea Woods. He knows that his “plan” is a non-starter which is why the Shadow thinks he proposed it. THE CHARTS HE USED TO JUSTIFY THE THIRD AVENUE STATION DO NOT SHOW THIS GAP. WHAT DO YOU THINK?
OF INTEREREST, IS THAT THE CITY OF PORT ORANGE CLOSED, WE ARE TOLD, and IT’S STATION 73 BECAUSE IT WILL NOT CALL IN FIREMAN ON OVERTIME WHEN UNDERSTAFFED.
3. THE ANGLER’S YACHT CLUB APPRAISAL: LOW BALL IN A BAD MARKET
The Shadow will refrain for the time being from commenting on this appraisal. It is set forth in the LINK but suffice it to say this is just another episode in the fraud of negotiating without first determining whether the lease is invalid as stated by the specially retained Orlando Attorney. We know that the past Mayor promised these grifters she would not touch their lease. What did the current bunch promise? Only Commissioner Plaskett has it right. She said the only way to proceed was to find out whether the lease was valid, and then added they would not do that.
THE CITY ATTORNEY AND HIS SEVERANCE PAY—PAY HIM NOW. EVEN IF HE CAN COLLECT HIS SEVERANCE PAY, IT IS CHEAPER THAN KEEPING HIM AROUND.
Under an unbelievable contract that provides for a severance package that grows annually, the City Attorney cannot be fired without cause. Unless fired for cause he will receive a huge payoff exceeding at this point we believe $500,000. The clause is triggered even by criticizing him for poor performance. One would have to claim gross negligence to fire him without paying him his severance amount.
But, as bad as this is, the alternative of not firing him seems worse. He is young, in his early 60’s, and unless he decides to retire, he will not only continue to draw his huge salary and attendant costs (with benefits about $300,000) annually, but build his severance package by merely breathing and being on the City payroll. If he is still around five years from now, and why should he not be with this set up of farming most legal work out to other lawyers, it could approach a severance package of $1,000,000. Now keep in mind that the current salary level alone means that for every work day he shows up (about 220 work days are in an average year) he draws about $1000 green ones. It cost the City about another $500 each day for his pension and other benefits. It does not matter that he ‘works’ or hires other lawyers as outside counsel, whether he wins or loses, or even if he puts his tie on straight. He has an assistant lawyer and Para-legal to do the office work.
There is an answer. Tell him to go away and pay his severance. The City is ahead in about 16 or 18 months minus the cost of an occasional outside attorney contract for what his Assistant attorney cannot handle. He farms out work anyway so there should be no great extra cost. As bad as it may seem, saving over $300,000 a year as against his onetime $500,000 severance pay, which grows every year, could be a real bargain.
One could claim gross negligence and make him sue for his money. Need convincing that this may be a viable alternative? Think of the settlement he has proposed in the Alexander case where there is an explicit admission that the restrictive Beach Zoning he had approved is indefensible. Need more? Think of the Volusia County Homebuilders case where the City has been told by an arbitrator, a retired 5th Circuit Judge selected by him, that about $800,000 had been improperly used for the general budget from the permit fund. Then there is the case where the Shadow has been denied information and his response is to drive up the legal expense on a loser case for the City. Is it negligence not to determine in Court the validity of the Angler’s Yacht Club lease?
Attached as a LINK is a letter sent to the Commission last week by one of the supporter of the Beach height limitation ordinance calling for Mr. Gummey’s removal as City Attorney. We suspect that part of Mr. Gerhartz displeasure about Mr. Gummey’s performance is tied to the position Mr. Gummey now takes that the ordinance is flawed.
As stated above, there are some wags who argue that given Mr. Gummey’s track record he could be discharged for cause. The Shadow is not sure, but maybe the Commission will want to spend a few bucks with a good Orlando law firm to find out.
Memorial Day is a day unlike any other. Since 1868 we have come together in our communities, towns and villages, to place flowers and flags on the graves of those who have given their last full measure of devotion to our country. We have come here to remember and honor those who have done their duty, as God allowed them to see that duty.
Winston Churchill once said of us: "The United States is like a gigantic boiler. Once the fire is lit under it, there is no limit to the power it can generate."
ABOUT A MONTH AGO the Mayor gave an interview to the NSBNEWS and stated that four cases that had been filed against the City would be settled. He went on to say that the Commission had directed the City Attorney and the City Manager to negotiate with the plaintiffs and reach settlements, and that he expected these cases to be ended. Each of the four cases was dependent on legal advice given to prior Commissions by the City Attorney and the then City Manager, John Hagood. The current Mayor did not see why they should become his problem. Despite some of the misconceptions about the motives of the Shadow, during last week's City Commission meeting, Commissioner Reiker, along with the Mayor, voted to settle the case.
The three Commissioners, Hathaway, Plaskett and Grasty, who were around when these cases, or the cause of these cases, voted to not settle, What makes the situation more confusing, is that it is not clear what the motion was that was voted upon. After a careful review of the audio tape, it appears they voted to "continue to fight." Since the only real issue before them at that point was the legal fee, the “fight” is over the legal fee. Agreement had been reached on all other issues, although it is not clear that Mr. Gummey forwarded the understanding to the Commission before the meeting.
In considering their vote, several of the Commissioners seem to be under a number of misconceptions. The Shadow will attempt to clarify the issues for them. For Commissioner Reiker, this case has nothing to do with persecuting a City employee. It has nothing to do with whether an employee is or is not a racist. For Commissioner Plaskett, it has nothing to do the current amount of the costs since even Gummey knows that this case is likely to result in a $100,000 award for attorney fees and not the $30,000 that it can be bought for today. Mr. Gummy failed to inform Commissioner Plaskett that as the case progresses the legal fees rise accordingly and the bargain that settling would be today will be long lost. Nor will the emotion displayed by Commissioner Hathaway, who does not want to pay the legal fees to an ex-City employee, be relevant to any settlement of the future proceedings of the case. What will be at issue is why the City is defending a case where the only issue is the timely and open dissemination of public records to a newspaper which is entitled, under Florida law, to have timely accurate information given and not have absurd charges attached. Commissioner Grasty asked the most appropriate direct question when he asked if the Court would make the decision if no agreement were reached on the legal costs. Gummey said “yes”, but Commissioner Grasty received no further explanation from the City Attorney as to what it might cost the City if the it did not settle the case.
Sending Mr. Gummey to negotiate is an absurdity. He does not want to settle because it is an admission that his legal advice was wrong in the first place. Nor does he want to settle since these cases are the main reason why it costs the City $7,000 a week to keep him around. To the Shadow’s knowledge he did has not even talked to the Homebuilders over the last two weeks, although that is now a $900,000 law suit instead of the $800,000 they were awarded by the arbitrator. The week after the Mayor announced that the suit would be settled, someone in the City told the Hometown News that it would not be. Wonder who? In sum, the mayor should take over the negotiations if he really thinks these cases do not belong on his plate.
The Bill of Rights, Inc. is now going to go forward with its court case. The next step is to take the depositions of various City employees, starting with Commander Drossman. And then, who knows where the trail may lead. In some cases, maybe places where high ranking city employees and elected ones may not want it to go. Since the City refuses to settle and thus accept their defeat as Judge Rouse has already essentially ruled, the City leaves the Shadow no other course of action..
The future does not look good. The need for a new Board and a new Director are obviously the first priority. HUD demands that the City respond, we believe that means fix, these problems by June 30, 2010. But we do not know whether the City is responsible for paying back the $1.9 million that it is stated cannot be accounted for at this time. And does the City need to fix up with its own funds the buildings which are described as not properly maintained? The Shadow does not know either all of the questions or even some of the answers. These will unfold we are certain over the next few month.
DISCRIMINATION, FRAUD, NEPOTISM, ETC—ALL IN NEW SMRYNA BEACH –HUD FINDINGS
Commissioner Reiker accused the Shadow of trying to tar the City of New Smyrna Beach as racist and red neck. Not true. But, the U.S. Department of Housing and Urban Development has stated that the New Smyrna Beach Housing Authority and its Director (49 years in the job and being paid $78,000) committed serious violations----—including, to name a few issues, discrimination in public housing, keeping a double set of books, and not accounting for over $1.9 million dollars of grant money over the last nine years! The list includes almost every mismanagement issue conceivable and is replete with deficiencies in property management, finances, and condition of the property. Read the report yourself. LINK Keep in mind that this Report follows an earlier report in February detailing these gross deficiencies and requiring that they be fixed. The City has until June 30, 2010 to respond.
Mayor Barrington called for the immediate resignation of the Board members. As of Friday the Director and four of the five Board members have resigned. That was the right thing to do and he took forceful control of trying to repair what is disclosed as probably a breach of public trust. The findings of the report will be subject to public scrutiny, but, if true, certainly suggests that the Board for many years condoned discrimination and misspent large sums of money. Commissioner Riker, it is not the Shadow that is “labeling” the City. It is the Federal Government.
THE RESERVES ARE IN THE RED BY OVER $2,000,000
The Shadow obtained the following letter from Bill Koleszar, a retired attorney, a former college law professor, the former Police Chief of Orlando, and former Director of Public Safety
Dear Mayor and City Commissioners,
As you are aware, I attended the regular meeting of the NSB City Commission on Tuesday night (5-25-10). I watched in total amazement and disbelief your discussion regarding the Public Records Lawsuit against the City. As I watched the Kabuki Dance being played out in front of me, I could tell by your body language and the questions you asked of the City Attorney, that you did not have a firm grasp of the issues being presented by the City Attorney who was fumbling with his notes and mumbling his presentation. At the end of the discussion, a motion was made and voted on. This motion was to "continue the fight". I have to admit that in my forty years of teaching law, I have never seen or heard of a formal motion quite like this. What amazed me even more was that Commissioners Grasty, Hathaway and Plaskett must have totally understood the motion because they voted "yes" to approve it. Apparently the City Attorney also understood the motion for he did not question what it meant. Did it mean to proceed to Trial? Did it mean to continue the negotiations to settle? Did it mean to continue to prolong the case in order to force the Plaintiff to spend more money? Did it mean a combination of the three? Or did it mean something else? Apparently, the three Commissioners and the City Attorney had a "meeting of the minds."
I sincerely believe that the City Attorney failed to clearly explain the financial magnitude of your decision. When the Plaintiff's Attorney wins this case, the amount of reasonable attorney's fees owed to him pursuant to State Statue will be three or four times more than they are today. In my career, I have seen numerous cases like this where the Plaintiff's Attorney fees are in excess of one hundred thousand dollars ($100,000). Every minute spent by the Plaintiff's Attorney in court, in discovery, in interviews, in depositions, in fee negotiations, and in research will be paid for by the taxpayers.
Commissioner Reiker stated Tuesday night that the City is currently involved in depending five (5) lawsuits. There is a common denominator associated with these five lawsuits. All five were generated while Commissioners Grasty, Hathaway, Plaskett, and City Attorney Gummey were "running the show". On Tuesday night, I watched you quibble over a few thousand dollars while the other lawsuits against the City could account for well over one million dollars in a tough budget year. How much more taxpayer money are you willing to squander?
Final Thoughts: Stop making unprofessional personal attacks on the Plaintiff's Attorney, write a check, and order the City Attorney to settle the lawsuit and move on. You have bigger fish to fry, get on dealing with the other lawsuits.
Bill Koleszar
NSB Taxpayer
BORING
The Shadow knows that covering some issues which have been discussed before can be boring. But what are we to do? The issues do not go away and the supporters of some of the worst perversions of wasting tax money continue to say that they are entitled to take public money for personnel use. If the Shadow did not continue its campaign against an array of mismanagement, arrogant efforts to hide information that is negative about the City payouts, subsidies, bloated payrolls, etc. there would be no change.
Try the Municipal Golf Course. The Shadow’s campaign against these grifter’s has resulted in some movement in limiting the employment and make it appear that there is a reduction in the subsidy which now appears to be another several hundred thousand this year. But the City management has gone to creative bookkeeping and the Shadow thinks is heavily subsidizing the Italian Restaurant which is tantamount to subsidizing the golf course. The City Manager “rents” the restaurant for $6,000 a year which we estimate is less than 15% or 20% of what the real rent would be for the square footage in a commercial building anywhere in the City. We are also pretty sure that you cannot air condition that space for $800 a month but that is all this “independent” restaurant pays for all of its electricity. We do not believe it.
But then the employees that used to run the City restaurant are off the payroll, so that Pam can claim that she reduced staff—both salaries and the benefits package. She does not address that she has created a heavily subsidized competitor for businesses that pay taxes. The restaurant delivers as far as Edgewater. In sum, you are paying for a big chunk of the costs of every bit of food that goes out the door. That is the price for not having the golf course restaurant shown in the budget.
The almost free green fees for members is of course the biggest rip-off and she has not addressed the fact that this subsidized fee for recreational golf is revenue taken from other businesses in a bad economy.
