MINUTES OF THE SPECIAL SARASOTA CITY COMMISSION MEETING OF APRIL 2, 2004, AT 4:00 P.M. PRESENT: Mayor Lou Ann R. Palmer, Commissioners Fredd "Glossie" Atkins, Danny Bilyeu, and Mary Anne Servian, City Manager Michael A. McNees, City Auditor and : Clerk Billy E. Robinson, and City Attorney Richard J. Taylor ABSENT: Vice Mayor Richard F. Martin PRESIDING: Mayor Palmer The meeting was called to order in accordance with Article III, Section 9(a) of the City of Sarasota Charter at 4:01 p.m. City Auditor and Clerk Robinson gave the Invocation followed by the Pledge of Allegiance. 1. INTRODUCTION RE: ATTORNEY-CLIENT SESSION IN ACCORDANCE WITH SECTION 286.011(8), FLORIDA STATUTES (2003), PURSUANT TO A REQUEST BY THE CITY ATTORNEY FOR THE PURPOSE OF MEETING IN A CLOSED SESSION TO DISCUSS SETTLEMENT NEGOTIATIONS AND STRATEGY RELATED TO LITIGATION EXPENDITURES IN THE MATTER OF COMPUTER ASSOCIATES INTERNATIONAL, INC. V. CITY OF SARASOTA, CASE NO. 8:02-CV- 2164-T-27MAP, UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TAMPA DIVISION (AGENDA ITEM I) AND INTRODUCTION RE: ATTORNEY-CLIENT SESSION IN ACCORDANCE WITH SECTION 286.011(8), FLORIDA STATUES (2003), PURSUANT TO A REQUEST BY THE CITY ATTORNEY FOR THE PURPOSE OF MEETING IN A CLOSED SESSION TO DISCUSS SETTLEMENT NEGOTIATIONS AND STRATEGY RELATED TO LITIGATION EXPENDITURES IN THE MATTER OF LIDO KEY RESIDENTS ASSOCIATION, INC. AND PELICAN GARDENS CONDOMINIUM ASSOCIATION, INC. V. CITY OF SARASOTA, CORE DEVELOPMENT - INC., / MEB CAPITAL, INC. AND EARL MORELAND, JR. AS STATE ATTORNEY FOR THE TWELFTH JUDICIAL CIRCUIT CASE NO. 2003 CA 8012 NC (AGENDA ITEM II) CD 4:01 through 4:23 Mayor Palmer stated that the Special meeting has been called for the Commission to recess and reconvene into an out-of-sunshine, attorney-client session in accordance with Section 286.011(8), BOOK 56 Page 27486 04/02/04 4:00 P.M. BOOK 56 Page 27487 04/02/04 4:00 P.M. Florida Statutes (2003), pursuant to City Attorney Taylor's request for a closed session to discuss settlement negotiations and strategy related to pending litigation involved in two cases: 1) the matter of Computer Associates International, Inc., versus the City Of Sarasota, Case No. 8:02-CV-2164-T- 27MAP, United States District Court For The Middle District Of Florida, Tampa Division, and 2) the matter of Lido Key Residents Association, Inc. and Pelican Gardens Condominium Association, Inc., versus the City of Sarasota, Core Development, Inc., MEB Capital, Inc., and Earl Moreland, Jr., as State Attorney for The Twelfth Judicial Circuit, Case No. 2003 CA 8012 NC. Mayor Palmer continued that Vice Mayor Martin will not be in attendance due to a medical appointment. City Attorney Taylor stated that in accordance with Section 286.011(8), Florida Statutes (2003), certain items must be placed on the record during the Special meeting prior to recessing and reconvening into an out-of-sunshine, attorney-client session; that the parties to the first case, Case No. :02-C1-216-T-2PAP, United States District Court for the Middle District Of Florida, Tampa Division, are: Computer Associates International, Inc. Plaintiff City of Sarasota - Defendant City Attorney Taylor stated that the parties to the second case, Case No. 2003 CA 8012 NC are: Lido Key Residents Association, Inc. and Pelican Gardens Condominium Association, Inc. Plaintiff City of Sarasota, Core Development, Inc., MEB Capital, Inc. and Earl Moreland, Jr., as State Attorney for the Twelfth Judicial Circuit - Defendant City Attorney Taylor continued that advice from the Commission concerning the litigation was previously requested; that the out-of-sunshine, attorney-client session will be confined to discussions concerning the litigation and should take approximately 25 minutes; that the persons attending both portions of the out-of-sunshine, attorney-client session will be: Lou Ann R. Palmer, Mayor; Mary Anne Servian, Commissioner; Fredd "Glossie" Atkins, Commissioner; Danny Bilyeu, Commissioner; Michael McNees, City Manager; Richard J. Taylor, City Attorney; and a certified court reporter. City Attorney Taylor further stated that for the record, the out-of-sunshine, attorney-client session will commence at 4:05 p.m. City Attorney Taylor stated further that the proceeding will be slightly different as a challenge under Chapter 163 of the Florida Statutes concerning a land use rezoning matter is being settled by stipulation; that State law requires the matter be part of a public hearing; that at the time the out-of-sunshine, attorney-client session reconvenes, certain material will be read into the record and the date upon which the public will be allowed to provide input before final action by the Commission will be read into the record. The Commission recessed at 4:05 p.m. into an out-of-sunshine, attorney-client session in Room 109, City Hall, and reconvened in the Chambers at 4:23 p.m. 2. ANNOUNCEMENT RE: TERMINATION OF ATTORNEY-CLIENT SESSION IN ACCORDANCE WITH SECTION 286.011(8), FLORIDA STATUTES (2003) (AGENDA ITEM III) CD 4:23 through 4:23 City Attorney Taylor stated that for the record, the out-of-sunshine, attorney-client session for the matter of Computer Associates International, Inc., versus the City Of Sarasota, and the matter of Lido Key Residents Association, Inc. and Pelican Gardens Condominium Association, Inc., versus the City Of Sarasota, Core Development, Inc., MEB Capital, Inc., and Earl Moreland, Jr., as State Attorney for The Twelfth Judicial Circuit, Case No. 2003 CA 8012 NC concluded at 4:20 p.m. 3. ACTION RE: SETTLEMENT AGREEMENT IN THE MATTER OF COMPUTER ASSOCIATES INTERNATIONAL, INC. V. CITY OF SARASOTA, CASE NO. :02-CV-2164-T-27272 UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TAMPA DIVISION, IF REQUIRED - RECOMMENDATION IS FOR THE SUM OF $215,000 WITH THE CREDIT FOR FIVE YEARS AGAINST SOFTWARE PURCHASES - APPROVED THE RECOMMENDATION OF THE CITY ATTORNEY'S OFFICE FOR THE SUM OF $215,000 WITH A CREDIT IN THE SAME AMOUNT FOR FIVE YEARS AGAINST SOFTWARE PURCHASES (AGENDA ITEM IV) CD 4:23 through 4:24 BOOK 56 Page 27488 04/02/04 4:00 P.M. BOOK 56 Page 27489 04/02/04 4:00 P.M. City Attorney Taylor stated that the recommendation of the City Attorney's Office regarding the matter of Computer Associates International, Inc., versus the City Of Sarasota, Case No. :02-CV-216-T-27AP, United States District Court for the Middle District Of Florida, Tampa Division, is for the sum of $215,000 with a credit in the same amount for five years against software purchases. On motion of Commissioner Servian and second of Commissioner Atkins, it was moved to confirm the recommendation of the City Attorney's Office with regard to Computer Associates International, Inc., versus the City of Sarasota for the sum of $215,000 with a credit in the same amount for five years against software purchases. Motion carried unanimously (4 to 0): Atkins, yes; Bilyeu, yes; Servian, yes; Palmer, yes. 4. ACTION RE: : READING OF SETTLEMENT AGREEMENT IN FULL PURSUANT TO SECTIONS 163.3215 (7) AND 166.041(3) (A), FLORIDA STATUTES AND SETTING FOR PUBLIC HEARING, IN THE MATTER OF LIDO KEY RESIDENTS ASSOCIATION, INC. AND PELICAN GARDENS CONDOMINIUM ASSOCIATION, INC. V. CITY OF SARASOTA, CORE DEVELOPMENT, / INC. MEB CAPITAL, INC. AND EARL MORELAND, / JR. AS STATE ATTORNEY FOR THE TWELFTH JUDICIAL CIRCUIT, CASE NO. 2003 CA 8012 NC, IF REQUIRED READ SETTLEMENT AGREEMENT IN FULL AND SET FOR PUBLIC HEARING (AGENDA ITEM IV) CD 4:24 through 4:28 City Attorney Taylor stated that due to the requirements of Chapter 163 of the Florida Statutes, the mediation settlement stipulation regarding the matter of Lido Key Residents Association, Inc. and Pelican Gardens Condominium Association, Inc., versus the City of Sarasota, Core Development, Inc., MEB Capital, Inc., and Earl Moreland, Jr., as State Attorney for The Twelfth Judicial Circuit, Case No. 2003 CA 8012 NC must be read into the record and quoted the following mediation settlement stipulation which includes all the details of the settlement: This action was mediated before the Honorable Stephen Dakan, as mediator, and the parties have agreed as follows: Plaintiffs hereby agree to dismiss with prejudice counts one, three, and five of their second amended complaint. That as a consequence, the only issue to be tried by the trial court relates to counts two and four concerning the issue of notice. Plaintiff and Defendants agree to waive the right to appeal the decision of the trial court with respect to counts two and four of the second amended complaint. Each party agrees to bear its own attorneys fees and costs. Core Development, Inc. hereby drops its claims for fees and costs pursuant to Section 57.105, Florida Statutes. In the event Plaintiffs prevail on counts two or four of this action and Defendants are required to have a new public hearing before the City Commission on rezoning Application No. 03-RE-01 and Application No. 03-SP-06 for site plan approval because notice was determined to be defective, Plaintiffs agree to waive any right to contest a decision of the City Commission to approve the Applications whether by statutory means, petition for writ of certiorari or common law claims as long as such rezoning and site plan approval are based upon the applications for rezoning and site plan approval as have been previously filed. In the event of the denial of the foregoing applications by the City, Defendants have the right to seek judicial review of such denial and Defendants shall have the right to participate with the City in the defense of the denial. This settlement stipulation shall only become effective upon approval by and signature of all parties to this action or their legal representative and approval by the City Commission after public hearing held pursuant to Section 163.3215 (7), Florida Statutes, with notice as required by Section 166.0413(a), Florida Statutes. Core Development Inc. is hereby added as a party Defendant to counts two and four of Plaintiff's second amended complaint. Core Development's answer and affirmative defenses as filed to the second amended complaint shall be deemed reinstated dated this 24th day of March, 2004. City Attorney Taylor continued that for the record, the date of the hearing is April 19, 2004. Mayor Palmer stated that the motion which should be brought forward will be to agree with the settlement agreement pursuant to Sections 163.3215 (7), and 166.041(3) (a), Florida Statutes, and set for public hearing the matter of Lido Key Residents Association, Inc. and Pelican Gardens Condominium Association, Inc., versus the City of Sarasota, Core Development, Inc., MEB Capital, Inc., and Earl Moreland, Jr., as State Attorney for The Twelfth Judicial Circuit, Case No. 2003 CA 8012 NC, if required. BOOK 56 Page 27490 04/02/04 4:00 P.M. BOOK 56 Page 27491 04/02/04 4:00 P.M. City Attorney Taylor stated that to clarify, the settlement is not being approved at this time since a public hearing will be held to receive public input. Mayor Palmer stated that the motion which should be brought forth is to set the matter for public hearing. On motion of Commissioner Servian and second of Commissioner Bilyeu, it was moved to set for public hearing a proposed mediation settlement in the matter of Lido Key Residents Association, Inc. and Pelican Gardens Condominium Association, Inc., versus the City of Sarasota, Core Development, Inc., MEB Capital, Inc., and Earl Moreland, Jr., as State Attorney for The Twelfth Judicial Circuit, Case No. 2003 CA 8012 NC, if required. Motion carried unanimously (4 to 0): Atkins, yes; Bilyeu, yes; Servian, yes; Palmer, yes. 5. CITIZENS' INPUT CONCERNING CITY TOPICS (AGENDA ITEM VI) CD 4:28 There was no one signed up to speak. 6. ADJOURN (AGENDA ITEM VII) CD 4:28 There being no further business, Mayor Palmer adjourned the Special meeting of the City Commission of April 2, 2004, at 4:28 p.m. - LOU ANN R. PALMÉR, MAYOR ATTEST: Bikke Rolneon BILLY E. ROBINSON, CITY AUDITOR AND CLERK