Wednesday, May 16, 2012

The "Settlement"

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Well, after last night, if there are still some out here who have no idea about this new trio commission, you got a taste of their "vision" last night.

At the meeting in Orlando the commission started with an option from FMPA that had been thrown on the table in 2009, Option #3 whereas FMPA would establish a minimum payment to the City each year of $237,564 for 5 years or rounded up, $1.2 million.

FMPA came back to us with a counter offer of $850,000 with equal payments of $47,222 for 18 months. No one can guarantee that FMPA will not screw us again. They did it once. Our top negotiator did not negotiate a lump sum payment...it wasn't even in the cards.

The commission never entertained the idea of countering that offer. I suppose they felt lucky to get a sound offer from FMPA and perhaps FMPA made them feel that way after all these years of jerking us around. The Mayor and Maxwell kept apologizing saying they could not talk about it in detail as the case was still in litigation. Everything that I have written on the subject was IN public records. Everything.

Pure and simple, the city got screwed by a visionary with no vision...a commission that wants to settle everything because they abhor legal fees and scared of its own shadow--a commission led by Scott Maxwell with the Mayor and Commissioner Amoroso always following right behind. They must have the same mentors.

The FMPA suit has cost us $125 thousand to date in legal fees, a mere pittance after 3 years. We lost approximately $2.7 million last night from what FMPA originally agreed to pay us per contract. What it boiled down to--take the first offer on the table and cut the legal expenses. They were petrified to open up the can of worms and ask for the one time payment of $850,000...scared that FMPA would jerk them around again.

But hey, that's easy. It's not their money. And they have a "vision."

17 comments:

Anonymous said...

seeing as none of us know what was said in the shade, and may never know. I am sure the commission made the right choice.

Lynn Anderson said...

You're sure? How are you sure? Well, what about what has been said in the sunshine?

Anonymous said...

It's easy to say what you would do, big bad negotiator, until you are in that position. Compromise is always a better solution than litigation. The legal fees alone would have exceeded the difference in the settlement amount and 18 months vs. 5 years has a huge time value to money.

Anonymous said...

Four House painters and a wall

Moe:This here wall needs to be red.
Larry:I think blue would be good.
Curly: Maybe blue.
Christopher;I definitley want blue.

Moe:Look ,morons,we're going to paint this wall RED!
Larry:I think blue would be better.
Curley:maybe blue.
Christopher:the clients want a blue wall.

Moe:RED,knuckleheads!
Larry:Okay,red.
Curley:Red.
Christopher:I still want blue,and the clients are going to be pissed.

Anonymous said...

1. There is not a "huge time value" to $$ over 5 years, unless you're talking about millions. Which, apparently, we have declined to pursue.

2. The legal fees alone would have been far, far less than the difference between what we settled for and what we are legally due from FMPA. This is a very simple calculation that was obviously the basis for Stanton's decision to go after FMPA for what they owe us.

People may not have liked Susan, but she was far far smarter about running a city than anyone who has ever posted here. Those who condemn her for litigating with the unions also choose to conveniently ignore the $1M plus that she saved the city by doing so and want to focus on the very comparatively small amounts that the city had to pay for that savings. I would bet that she made the right decision here, as well, to litigate with FMPA.
We have a majority that doesn't believe in standing up for us. They intend to fold, retreat, withdraw, and let the rest of the world continue to beat us down.

Anonymous said...

It is my understanding that there ws no contractural obligation for FMPA to pay any transmission costs, but that since it was FMPA policy to do so, they felt that an offer to counter Commissioner Maxwell's Commission approved offer of $1,200,000 was in order.
Now with FMPA listing $69,000,000 in Cash and Equivalents on their latest published Balance Sheet--I am upset that Commissioner mcvoy --the commission representative--hadn't jumped all over that---and you can imagine how upset I am with no counteroffer of a higher principal amout over 18 months or a Lump Sum Amount immediately to lessen the steep slope the Commission has to climb to address the FY 2012-2013 Budget.
I do have a little sympathy for the commission taking a negotiation that seemed at impasse and moving it forward, but............

Lynn Anderson said...

I would be more upset that our staff did not guide this commission better. They even refused to listen to Bornstein and the assistant city attorney last night.

We can't have a rouge city commission leading this city.

Anonymous said...

Oh well. it wasn't REAL money! Thanks to Mike Bornstein and Ms. Anderson (a real honest to goodness attorney) for their great alternantives to this joke of an "offer" from FMPA. All of the Commissioners were in the negotiations. And all except Maxwell were very uncomfortable with the terms.Maxwell again ignored and disrespected his fellow Commissioners ,staff(who were doing everything short of getting up and slapping the Commissioners in the face to get them to table this fiasco)and most importatnly THE PUBLIC!!!Pam Triolo and Andy Amoroso agin bowed to the will of Maxwell,something that they are doing with increasing and disturbing frequency.Why in the world does Maxwell need to go to the FMPA now? The deal is done. The pooch is screwed.There is absolutely nothing for him to do with this group,other than to lift a cocktail with them in victory.katie mcgiveron

Anonymous said...

I do not have the knowledge on this issue to know if this was a good or bad deal for the city, but if this upsets the citizens of LW wait until they get into the negotiations in the sewer lawsuit.
I have heard citizens claim a figure over 10 million owed to LW, the number will be less than 2 million maybe a lot less.
http://thecoastalstar.ning.com/profiles/blogs/manalapan-south-palm-beach-targets-of-lawsuit-could-do-better-

Anonymous said...

Lynn, if we are going to talk about all Utility matters, will you give us an update on the operational permit for the RO plant. Since the commission approved the $60-70,000 study to increase the permitted 50%, we haven't heard anything.

Lynn Anderson said...

You have asked this one before. The best suggestion is to contact Clay Lindstrom or Bornstein for the answer. The last time I knew we had all permits in place.

Lynn Anderson said...

For the negative guy who just tried to post here saying that the "cabal" is feeding me a bunch of "crap," NO ONE IS FEEDING ME ANYTHING. I do my own research. I formulate my own opinion UNLIKE THIS TRIO and the entire commission for that matter and the guy who just tried to post. (because even McVoy and Mulvehill should be reading my blog) :)

Take it where the sun don't shine.

Anonymous said...

lynn, isnt it true that if maxwell saved a bus load of children from a burning bus...you would swear that maxwell started the fire?

Lynn Anderson said...

Nope. Perhaps Scott is the most mis-understood commissioner sitting on the dais? Hopefully, he will never have to save children or any other person from a burning bus. But if he were to do so, I would write what I thought about it as well as my impressions. Sorry that doesn't gel with your point of view or hero worship.

Actually, I like Scott personally. He is funny and an interesting person. Kind of cute actually with sex appeal even for us older gals. :)

Anonymous said...

The legal fees to date per Utilities Director Rebecca Matley is $125,000, not $125 as you wrote.

Lynn Anderson said...

Absolutely correct. Thanks for point out I forget to include an M after the figure but then thought everyone would get confused and think it meant millions.

Hot on Maxwell said...

Hey Lynn, I think Scotty is cute too, glad I'm not the only one. He's so strong and powerful...