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September 3rd, 2007

NOTES

1. On September 6, 2007, all candidates for elected office in NSB must file reports listing their campaign contributions and contributors as of that date. So far only the Mayor, the incumbent Commissioners, and Sally Mackay, have public announced their intent to run or seek re-election. However, various names have been bantered about, one of which is Kassandra (Kassi) Mercier for zone 3, and Ken Taylor for zone 4. The requirements are that full disclosure be made of names and addresses for all contributors, and that all contributors of more than 50 dollars be identified as to their principal business. The Shadow intends to publish all such filings as a PDF. Each reader should review, analyze, and draw whatever conclusions they may desire from this information and act accordingly. You be the judge of whether these contributors are persons who agree with the positions and philosophy of the candidates, or are just buying access should that candidate be successful.

Both the Mayor and his opponent have held several fund raisers. It

appears that this election for Mayor will be more expensive than in the recent

past. In fact, some observers have suggested it will take $20,000 or more to run

a successful campaign. That is about twice what it cost last time when Ken

Taylor ran against the Mayor.

2. The TBMCom Properties case (cell phone tower) was lost because the City Attorney failed to do his job. Go read it for yourself, (page 13 of PDF see LINK).

“In an affidavit, Robert J. Rodi, Chief Executive Officer/General Manager of the Utilities Commission, has stated that although structural deficiencies have prevented collocation of antennas on the existing utilities tower, the Utilities Commission accepted a bid on March 19, 2007 to rehabilitate the tower to make collocation feasible. (Ex.C to Doc.17). Mr. Rodi expects the rehabilitation to be accomplished in two months.”

1.Some weeks it is difficult to look at the small world we live in and keep on the rose colored glasses. However, when we read articulate and well reasoned statements posted in the blog, our belief in the underlying strengths of democratic debate are restored. Whomever “Islassoc” maybe, we welcome his or her contribution to the debate. Just as the well thought out postings on pensions have helped frame the debate, these postings are well reasoned discussions of the issues. We have never claimed to be experts in evaluating police department organizational needs, although we do have training and experience in organizational development and management. However, when anomalies or aberrations appear they demand explanations. Edgewater has the same population and half the police force? Hey Islassoc, please help! We need you. NSB needs you. Send us an article that clarifies the issue. We’ll publish it as written

2. A Senegalese cleric has provided us with a mantra that seems more than appropriate in these troubled times: “Pray each day as if you will die tomorrow, and work each day as if you will live forever.” Can't think of a way to say it better.

DEAR JOHN

We know of the limited resources available to John Hagood, the City Manager, and to his inability to get all of the important letters written that he would like to send. So we decided to help him and provide him drafts that will simplify his tasks and free him up for important.

We published this on February 19, 2007. Assuming the request was made, please tell us their offer. They manage the Port Orange course, and pay Port Orange about $8,000 a month.

We know of the limited resources available to John Haygood, the City Manager, and to his inability to get all of the important letters written that he would like to send. So we have decided to help him and give him drafts that will simplify his tasks and free him up for important things like dealing with all the problems at the Park and Recreation Division. We have crafted the following letter to deal with the problems at the municipal golf course. Since Port Orange is only paying its golf pro only $55,000 and we are paying ours $70,000 and its Greens keeper $50,000 , but we have a fancier title and pay ours $85,000 (subsequently this amount was reduced to ($67,000), we thought a letter should go to Kemper Sports (Tel. 847 850-1818) and ask them what they want and would give us to take over management of our golf course. They manage the course in Port Orange and spin off a profit to Port Orange.

February 19, 2007

Kemper Sports

500 Skokie Blvd. Suite 444

Northbrook, Ill. 60062

RE: Golf Course Management

Dear Sirs:

We have a municipal golf course that we wish to maintain but believe that it may be more efficacious to have a professional management company manage it for us. We would like to sit down and discuss this option with you.

Your truly,

John Hagood, City Manager

City of New Smyrna Beach

Administrative Office Building

120 North Causeway

New Smyrna Beach, FL 32168-9985

“Best Blog 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

- Diesens back in, Grasty backed her and Hathaway didn't show for the meeting. Grasty just wants to be one of the girls. Should have seen his face. He went against the people who put him in and against his own best judgment. He knows this is the end of the Electric Utility. Rates will continue to climb and it will be sold. Hathaway was told by Diesen that if he voted against her the Girls had someone to run against him. So he did what any spineless politician would do, he didn't show up for the meeting. No one was appointed for the second seat. The majority of the applicants for this seat will withdraw their application.

- Mayor voted against. He is the only City Commissioner left that the "Girls" don't control.

- The Shadow has finally discovered Diesen's agenda for the Utilities Commission. I do not know if it was by accident or through hard work, but I like everyone else is over rate increases and Diesen’s manipulation of the City, so here it is. On the Shadow's home page and to the left of Diesen's lovely picture one of the bullets listed for the consulting firm she works for is "Management Services.” This is "Diesen's Specialty.” Simple stated, one first positions themselves within an organization as a policy maker, next they discredits the top manager and has he or she replaced by a yes man. (Rodi in this case). To facilitate this you give the yes man a huge severance package for when, not if but when, he is terminated, with or without cause. For Rodi's this is over $150,000. To earn his money he simply mismanages the organization and keeps his mouth shut. Diesen comes to the rescue and has UC management replaced with her consulting firm's "Management Services.” This new team roles into town once a month for a few hours and starts funneling money out through this team. Go back and do a search on the UC minutes. You will find that she has pushed for this during UC meetings. Simple but brilliant. This should give the Shadow enough to go. Hint, she has already pulled this caper in this town once before.

REGISTER AND VOTE IN THE NEXT ELECTION

STOP BUSINESS AS USUAL AT CITY HALL, AND MINIMIZE THE EFFECT OF SPECIAL INTERESTS GROUPS. THE MAYOR AND VICE-MAYOR HATHAWAY SEEM TO AGREE, BUT WE ARE NOT CONFIDENT THAT THE OTHER THREE AGREE. YOU CAN HAVE YOUR SAY IF YOU WANT TO BE HEARD. DO YOUR JOB, REGISTER AND VOTE. IF YOU CANNOT GO TO THE POLLS, OR YOU WILL BE OUT OF TOWN ON ELECTION DAY, REQUEST AN ABSENTEE BALLOT, MARK, AND RETURN IT TO THE SUPERVISOR OF ELECTIONS BEFORE YOU LEAVE. THERE WILL BE A PRIMARY ELECTION ON OCTOBER 9 IF MORE THAN TWO CANDIDATES RUN FOR AN OFFICE. THE GENERAL ELECTION IS NOVEMBER 6.

CALL THE SUPERVISOR OF ELECTIONS’ OFFICE IN NSB AT 423-3311, OR VISIT HER WEB SITE http://volusia.org/elections/reginfo.htm#voter AND REQUEST AN ABSENTEE BALLOT.

IF YOU WANT TO RUN FOR OFFICE, AND WE ENCOURAGE YOU TO DO SO, CONTACT THE CITY CLERK, JANICE LOWRY, AT THE AOB TO OBTAIN QUALIFICATION PAPERS. COMPLETE AND RETURN THE NECESSARY PAPERS WITH THE REQUIRED FEES AND SIGNATURES, NO LATER THAN NOON SEPTEMBER 6.

TALK TO YOUR FRIENDS AND NEIGHBORS. ENCOURAGE THEM TO VOTE, AND TO ENCOURAGE OTHERS TO VOTE.

YOU CAN PREVAIL, THE SHADOW KNOWS

LEGAL COMPETENCE?

IS THE CITY ATTORNEY WORTH $200,000?

The United States District Court entered an order on July 3, 2007, finding that the City of New Smyrna Beach failed to comply with statutory rules and ruled against the city (LINK) in its effort to prevent TBCom Properties, LLC from building a telecommunications tower East of I-95. The Court found that the City had failed to make an evidentiary showing to counter the evidentiary case made by TBCom, and had failed to file a written rationale as required in the Federal case at bar. What the Court found were both abject failures on the part of Frank Gummey, our erstwhile City Attorney, to perform his job. The ruling against the City's is directly related to both what the Court detailed as the evidentiary case that had to be made, and was not made by Mr. Gummey, and his failure to file the appropriate rationale documentation. To be perfectly frank about it, pun intended, Gummey lost the case because of his legal performance, and should have advised the City Commission of such at a public meeting rather than trying to sluff it off as a matter of no consequence. Remember, our highly paid legal beagle screwed up, the one with over thirty years as a local government attorney who can not stand to be wrong or contradicted!

Now, we would not be so critical except for the large expenditures we are asked to pay for legal advice, and how little we seem get in return. Perhaps Commissioner Richenberg should look into this situation, since at the budget workshops, he was very concerned that we receive a good return for the money we invest for various services and assets, after of course, he looks into the scandalous fire department waste and abuse. The legal department costs the City over a half million dollars in direct costs, an untold sum for insurance policy premiums so that the insurance company undertakes defense of a case for a deductible and a price, and to purchase legal services from outside counsel in specialized cases. We doubt that any town our size pays half as much, but then few other Cities fire their attorneys for giving good and valid advice, as New Smyrna Beach did.

Another reason why we are inclined to offer little charity toward the City Attorney is his penchant for showing little regard for his brethern when they miss a beat in litigation, and his prediliction to demean them to others. We believe that what goes around comes around, and that following the “golden rule” is a good policy. His failure is monumental, and we see no reason why it should be hidden in Court language that is often difficult for the average citizen to decipher. This Court language is not difficult however. Read the first full paragraph on page 12 of the PDF. There are no conclusions to draw. The Court was explicit, and did it for you.

Since we are in budget time, maybe we should fire Gummey, retain his assistant, and save enough to cover the revenue shortfall?

POLITICAL MUSCLE

One has to admire a small time political machine that can flex its muscle and demand and receive the votes necessary to take an action against the interests of its constituents, in favor of its personal and private interests. The North Peninsula Political Machine (NPPM) maneuvered the reappointment of Jean Diesen to the Utilities Commission despite her track record of abysmal mismanagement, and manipulation of the UC to buy power from Florida Power and Light, its principal supplier, at a 20% premium above what Florida Power and Light is selling its product to our neighboring communities. However, that is another story. This manipulation forced one of their supplicants to come out of the closet and reveal his true allegiance to their agenda, one who had heretofore stated he was independent, and it is alleged, convinced another commissioner to stay away from the meeting The Shadow believes their achievement was not in the best interest of the City or UC ratepayers, but we must admire their ability to influence at least three City Commissioners into reappointing what we think is a “virtual” Florida and Power and Light “employee” on our Utilities Commission, through her lobbying firm, Davis O’Connell.

Perhaps there is a silver lining somewhere, but we cannot find it. The Shadow must continue to point out her failings, and possibly the continued fire sale she is planning next year for Utilities Commission electrical service assets. Of course, this could be mitigated if a confident self assured individual is appointed to the seat vacated by Mr. Para, but the NPPM has promised that position to Robert Reese, whose potential performance is questionable at this point. Then we must continue for the next two years at least, to point out all of Jack Grasty's faux paux, and two more years to enlighten taxpayers about Cindy Richenberg's huge salary and pension. However, for this re-appointment, we have nothing to write about but the poor Utilities Commission employees, the largest group of employees in the City after the City's own employees, whom we believe will be in danger of losing their jobs after the fire sale. However, not to worry, remember the trash collectors who were told their jobs would be secure, and were all out of a job within the year. Could this be the fate of our Utilities Commission employees?

And then, there is the situation that the NPPM is now a visible political manipulative group trying to have their way with our local political system. To wit, they must now accept responsibility for its real or imagined transgressions. Look, the Peninsula Avenue crowd and their supplicants, is now out of the closet. They have three votes; they run the City. Anything you do not like about their agenda to eliminate investment in this City is now in the open. Gracye Barck has won this battle, big time, and she did work hard, but unless she can defeat the Mayor and Hathaway, and keep Plasket from being defeated by someone who does not see witches over houses in Edgewater, she will lose the war. Grayce is running Mackay against the Mayor, Kassandra Mercey against Hathaway, and campaigning for Plaskett. That is her ticket, the NPPM ticket. A trifecta if she can pull it off. She is defending her turf and trying to solidify her span of control. That is what a machine must do, but it usually better if done out of public view. Furthermore, she cannot totally depend on flip-flop-Jack, and is running out of future perks to promise him. On the other hand, if the voters want Plaskett and the no investment crowd to stay in power, so be it.

WHY SO FEW CANDIDATES

FOR PUBLIC ELECTED OFFICE?

Our City Commission is held by many of our residents in such low respect that it might be considered a “tar baby” that no one wishes to touch with the proverbial ten foot pole. It is difficult to find someone with the interest, resources, and independence to become involved in a process that is controlled by a group of individuals with a not so well hidden agenda, and that is controlled by a clique that seems to have deliberately selected rather undereducated standard bearers whom they can manipulate like puppets on a string. This is certainly the case with their three puppets that comprise the current majority of the City Commission. One believes in flying saucers and sees witches over houses in Edgewater, another apparently sees nothing wrong with his wife being given special benefits at the fire department, and the third seems to respond most favorably to promises of largess. In Richenberg’s case, this special treatment represents an annual cost to the City of $13,000, and we believe an improper and ill advised “reward” to the Commissioner. We believe that none of the three can really read and comprehend a budget or balance sheet, except, perhaps, Commissioner Grasty, but we have our doubts. The failure of these three to discuss the mismanagement of the UC, and Jeanne Diesen’s conflict of interest because of her affiliation with Davis O’Connell, while they rushed to reappoint her to the Utilities Commission says it all. Can you really blame people for not wanting to enter this arena? We are frustrated and disconcerted, but understand why the few candidates who plan to file have purchased all of the antacids in town.

PARKS AND RECREATION:

14% CUTS?

The cost of carrying the Sports Complex, we are told well, is well in excess of $700,000 annually, so understand that cutting Parks and Recreation is peanuts compared to cutting that excessive subsidy. Having said that, the biggest and most effective saving would be to re-organize and integrate Parks and Recreation with Public Works. It not only seems better managed, but it would permit abolishing the job of Parks and Recreation Director, a savings of about $130,000 in salary and benefits, and probably the Parks Coordinator, for an additional savings of $60,000 with pay and benefits, for a total of $190,000. Now that wasn’t so hard was it City Commissioners? See how easy it would be!

Since no one “really” believes that Frank Roberts manipulated the salary comparability study to set their salaries, neither of them should have any difficulty finding a similar job in the vicinity with the same salary and benefits. Right?

Putting that thought aside, we are not surprised by what they suggested. Find more money from Volusia County, the Volusia School Board, and the users of the Sports Complex, and then cut everything resident users want. Then wait until our citizens complain to their elected officials, you know like the Golf Advisory Board did over John Yancey's outrageous salary; and then go about their business while fire and police department services are reduced. We like our idea in paragraph one above better.

THE LOSS OF $15 MILLION WAS JUST THE BEGINNING

We are publishing the following article to remind you of what Diesen and her disciples have foisted upon you, and what was not discussed when NPPM bulldozed through her reappointment. It was reminiscent of Boss Tweed who ran New York City for a few years, but keep in mind, he also went to jail (http://en.wikipedia.org/wiki/Boss_Tweed)

DIESEN LOST THE MONEY

AND WE MAY LOOSE OUR UTILITY!

All documents related to the massive losses at the Utilities Commission have been reported by the Utilities Commission Auditors, Brent Millikan, and are available at the Utilities Commission office. At the end of 2003, the Utilities Commission telecommunication division posted a profit of $525,803. When Jeanne Diesen was appointed to the Utilities Commission in late 2004, the telecommunication division showed a profit of $245,414 for the year. After Diesen was appointed, and management changes were made, the Utilities Commission initiated a number of steps changing the strategic plan of the Telecommunication business. These changes were put in place and by yearend; the telecommunication division reported a loss of $862,562. In 2005, the Utilities Commission telecommunication division reported a loss of $3,570,425. In addition to this massive loss, the Utilities Commission pushed back $2,708,593 of 2005 expenses into 2004 and restated 2004 losses. In 2006, the Utilities Commission reported its third massive telecommunication division loss of over $2,205,606.

In summary, and to provide some perspective, prior to Diesen’s appointment to the Utilities Commission the telecommunication division showed a cumulative profit of $771,217. After Diesen’s appointment, the Utilities Commission telecommunication division incurred a loss of over $9,347,233. Source documents available to the public for inspection are Utilities Commission financial statements and audits for fiscal years, 2004, 2005, and 2006.

Just the facts:

(1). The coming rate increase will make UC second highest in the state.

There are 37 Electric Utilities in the state of Florida. Prior to Diesen’s appointment,

Utilities Commission rates were below the average and ranked in the lower half of rate

comparison. Their rates are currently the forth most expensive in the state. In

addition, the fuel and purchase power fund has a negative balance of $2,284,237.65.

In other words a third round of rate increases is on the way. Once the rate increase is

approved, UCNSB rates will be the second highest in the state, and by far the highest

in central Florida.

(2). Improper use of fuel adjustment funds.

The Utilities Commission transferred $1,100,000 from the fuel fund to capital and

raised the fuel adjustment to the customer. This is not allowed under the rate tariff.

Capital projects are funded from rates not fuel funds.

(3). Are the missing proceeds from the sale of land west of I-95 being used to

keep UC checks from bouncing?

Acreage west of I-95 was sold for approximately $2,800,000. Proceeds from the sale

were to pay debt that secured the property. Where is the money?

(4). Fiber fiasco.

An operational state of the art fiber optics system, totally paid for, was shut down.

Developers were paying 100% on the cost of conduit for the fiber. Profits from the

system were to offset taxes.

(5). Lack of needed technical expertise.

New customers are not allowed to obtain service from the Utilities Commission

operational wireless internet service installed in 2003. At last report, Diesen has this

service in her home. A new wireless service was installed at a cost of over $250,000,

but was never made operational. The Utilities Commission offered the system for sale

and received a bid for around $3,000.

(6). Payroll out of control.

Staffing levels for high paying middle management personal have been increased, yet

the Utilities Commission had paid out $2,631,478 for outside personal services.

(7). Hidden upcoming rate increases.

Over one million dollars has been transferred from electric funds to water/wastewater

accounts to defer rate increases in those utilities.

(8). City Commission & public not provided complete budget.

The Utilities Commission proposed 2008 O&M budget presented for City approval is a

summary, not a detailed budget, and is comprised of only 12 pages. Details of all

proposed expenditures have not been provided, even though we are concerned that

not all of our City Commissioners would understand it.

The Shadow is seriously concerned about the statements of fact and trends identified above. Sources for the data presented and its analysis are provided for those of you willing to make the effort to confirm them. Reserve and rate stabilization funds, whose purpose was to prevent such rate increases as we have seen over the past year or so, were depleted. Rather than restoring positive cash flow from the telecommunication division it was terminated, rather than restore the fiber system to an operational status, needed assets were sold at a considerable loss. Purchase power contracts were not negotiated to our advantage. As we see it, everywhere you turn there is evidence of actions and events perpetrated by the UC that benefit Bell South and FPL, rather than our ratepayers. Unless this decimation of the UC is stopped, we fear that a ratepayers and or employees’ riot may ensue as they realize the potential for job loss, especially the purchase power gurus asset loss, and further increases in utility bills.

JACK GRASTY,

A MEMBER OF THE NORTH PENINSULA MAFIA?

It is with some dismay that what we had suspected has now been proven true. Three Commissioners believe there are beholden to the North Peninsula Political Machine (NPPM) that has put together a coalition of the fire and police department unions, the no investment, and save the charm group, recipients of subsidies at the golf course, marine discovery center, the sports complex, and others of whom we are not aware. Jack was elected on a program for better government, but he has become the key vote in preventing any restructuring or reform of the insane pay and benefits at the fire department. Worse, as the swing vote, he is generally unpredictable, and seems to vote for whatever position the last person trying to influence him espouses, except of course, when Gracye leans on him. Wonder why that is, she must have promised to bring her guns to bear and elect him the next mayor after Sally? Could it be? The Mayor and Commissioner Hathaway have stated publically that in lean times, the City must cut spending, on the one hand, but Plaskett and Ritchenberg apparently see nothing wrong with Cindy Richenberg making $91,000 (and an additional $64,000 in benefits). Jack's swing position is probably why Fire Chief Hawver has not been told to stop Richenberg's wife’s phony job as Fire Department spokesperson that costs the City $13,000 for nothing.

Well Jack voted with the NPPM to reappoint Jeanne Diesen to the Utilities Commission despite her being a member of a Washington lobbyist firm that takes money from Florida Power and Light and Bell South, two of the competitors for our Utility Commission, her engineering the loss of over $15,000,000 dollars, and the general mismanagement of the place. Jack defeated the machine candidate two years ago, but who knew he was also in their fold. It seems they had two candidates and those who thought they were voting for a change were misled.

Now that the political alignments are visible, voters will have clear choices this Fall in the contest between Plaskett and whoever chooses to run against her. That is what democracy is about, and given the ability of the machine to put Diesen back at the Commission, there is no question that they are a formidable force. Apparently with Jack in the fold, they can conduct all City business as they see fit, but that also means that they must take the responsibility for all that goes wrong—including your utility bills.

CITY BUSINESS

The following posting on the BulletinBoard (peopes' blog) desrves serious consideration. We would like to publish articles of this qualtity on our front page if submitted.

Islassoc, Friday, 8/31/07, 2:54 AM. The City Marina, Golf Course, and Airport, should be set up as non-appropriated funds, sometimes called enterprise funds. Initial start-up costs and to some degree capital improvements, may come from tax dollars, but always on a pay-back with interest basis. The current system of including these with the regular budget makes it difficult to determine their profitability and a best guess evaluation of the poorly constructed and displayed proposed budget seems to indicate taxpayers are footing the bill for these operations as opposed to them being self-supporting. People try to make the case that these facilities enhance the economic base of the city because they draw people (translates to tourists) who spend money. Unfortunately, no factual data to support this conclusion is provided in the City budget documents. In the case of the Marina, since the majority of the slips are leased out, the few left for transient boat traffic generates very little additional tourism to the city. The fact is that the City is supplying a boat slip to a select few at a rate that is subsidized by tax dollars. In addition, while the Marina "looks good" the facility is flawed. For instance, who builds water based facility in Florida, that is supposed to attract transients that lacks any air conditioning in its offices, store or bathrooms? Apparently, we do here in NSB. The Golf Course has been beaten to death and a review of its poor management, less than acceptable hiring practices, and debt versus players needs no further discourse by the writer. It is also a playground for a select few members at a greatly reduced rate, funded by us taxpayers. It would appear from the Shadow's notes that nepotism also lives there. The Airport is another playground for the rich that own aircraft. While the industrial buildings that are there do generate business tax and income, the City can't manage that either as evidenced by the recent article in the DBNJ that says two businesses there are over $200,000 in arrears on their rent. Then our City Manager compounds the problem by letting them pay over time via a promissory note and suggests that we rent additional facilities to a subsidiary of one that can't pay the rent now. Doesn't seem like a good "business" plan to me. The Marine Discovery Center is another albatross around the taxpayer's neck, but I'll save that for another day. The Marina, Airport, and Golf Course all need to be immediately set up as pay-as-you enterprise funds that have no taxpayer funds involved except as interest bearing loans or if they can't break even that way, contracted out to someone who can run them correctly. Enough is enough. From: NSB Shadow Sept 3, 2007.