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Item I1*1:30 P.M. CLOSED SESSION * BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 9/21/11 -MAR Division: County Atto= Bulk Item: Yes No XX Staff Contact Person: Bob Shillinger. 292-3470 AGENDA ITEM WORDING: An Attorney -Client Closed Session of the Board of County Commissioners in the matter of Gregory Klimock, et al. v. Monroe County and State Board of Trustees of the Internal Improvement Trust Fund Case No. 2010-CA-979-K. ITEM BACKGROUND: Per F.S. 286.011(8), the subject matter of the meeting shall be confined to settlement negotiations or strategy sessions related to litigation expenditures. Present at the meeting will be the Commissioners, County Administrator Roman Gastesi, County Attorney Suzanne Hutton, Chief Assistant County Attorney Bob Shillinger, Assistant County Attorney Susan Grimsley, Assistant County Attorney Derek Howard and a certified court reporter. PREVIOUS RELEVANT BOCC ACTION: 5/18/11 BOCC approved Closed Session for 6/15/11 @ 2:30 p.m. in Marathon 6/15/11 BOCC continued to 7/20/11 BOCC @ 1:30 p.m. in Key West 7/20/11 BOCC continued to 8/17/11 BOCC @ 1:30 p.m. in Key Largo 8/17/11 BOCC continued to 9/21/11 BOCC @ 1:30 p.m. in Marathon CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: N/A TOTAL COST: Court Reporter costs INDIRECT COST: BUDGETED: Yes No DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: Court Reporter costs SOURCE OF FUNDS: REVENUE PRODUCING: Yes _ No xx AMOUNT PER MONTH Year APPROVED BY: County Atty X OMB/Purchasing Risk Management DOCUMENTATION: Included Not Required X DISPOSITION: AGENDA ITEM # Revised 2/05 County of Monroe The Florida Keys Robert B. Shillinger, County Attorney** Pedro J. Mercado, Assistant County Attorney ** Cynthia L. Hall, Assistant County Attorney ** Christine Limbert-Barrows, Assistant County Attorney ** Derek V. Howard, Assistant County Attorney** Steven T. Williams, Assistant County Attorney** Peter H. Morris, Assistant County Attorney Patricia Eables, Assistant County Attorney Chris Ambrosio, Assistant County Attorney ** Board Certified in City, County & Local Govt. Law May 25, 2017 Kevin Madok, Clerk of the Circuit Court Sixteenth Judicial Circuit, State of Florida Monroe County Courthouse 500 Whitehead Street Key West, FL 33040 BOARD OF COUNTY COMMISSIONERS Mayor George Neugent, District 2 Mayor Pro Tern David Rice, District 4 Danny L. Kolhage, District 1 Heather Carruthers, District 3 Sylvia J. Murphy, District 5 Office of the County Attorney 1111 121n Street, Suite 408 Key West, FL 33040 (305) 292-3470 — Phone (305) 292-3516 — Fax In Re: Klimock, et al. v. Monroe County, et al., Case No.: CA-K-10-979 Dear Mr. Madok: Please find enclosed herewith the transcript of the September 21, 2011 closed attorney/client session of the Monroe County Board of County Commissioners regarding the above - referenced matter. Under F.S. 286.011(8), the transcript may be part of the public record because the litigation has concluded. Thank you for your assistance with this matter. Please contact me should you have any questions. Sincerely, Robert B. Shillinger Monroe County Attorney Enclosure 0 0 RE: nq P N A I MEETING OF THE ®' 1 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS ATTORNEY -CLIENT CLOSED SESSION GREGORY KLIMOCK, et al. vs. MONROE COUNTY & STATE BOARD OF TRUSTEES OF THE INTERNATIONAL IMPROVEMENT TRUST FUND CASE NO.: 2010-CA-979-K HELD AT COMMISSION CHAMBERS 2798 OVERSEAS HIGHWAY MARATHON, FLORIDA 33050 WEDNESDAY, SEPTEMBER 21, 2011 1:31 P.M. - 1:47 P.M. Commissioners Present: COMMISSIONER KIM WIGINGTON MAYOR PRO TEM DAVID RICE MAYOR HEATHER CARRUTHERS COMMISSIONER GEORGE NUGENT COMMISSIONER SYLVIA J. MURPHY Staff Present: COUNTY ATTORNEY SUZANNE HUTTON COUNTY ATTORNEY SUSAN GRIMSLEY CHIEF ASSISTANT COUNTY ATTORNEY BOB SHILLINGER COUNTY ADMINISTRATOR ROMAN GASTESI ALL KEYS REPORTING Olde Towne Centre 600 Whitehead Street 9701 Overseas Highway Suite 206, 2nd Floor Marathon, Florida Key West, Florida 305-289-1201 305-294-2601 All Keys Reporting — Court Reporters — (305) 289-1201 Locations in Key Largo, Marathon & Key West 2q 1 2 3 4 5 6 7 8 9 10 13 14 15 16 17 18 19 20 21 22 23 24 25 (The following proceeding commenced as follows:) MAYOR CARRUTHERS: The open session is now closed. If you have not been just named by Miss Hutton, please vacate the premises. Someone's peeking around the corner back there. COMMISSIONER MURPHY: Run them out, Gabe. MS. HUTTON: Call the closed session to order, Madam Mayor. MAYOR CARRUTHERS: Yes. I think I just did. MS. HUTTON: Okay. For the record, this meeting is being held upon request of County Attorney Suzanne Hutton, who announced at a prior County Commission meeting, held May 18, 2011, that I need advice in the matter of Gregory Klimock -- Gregory Klimock, et al. versus Monroe County and State Board of Trustees of the Internal Improvement Trust Fund, Case Number -- MAYOR CARRUTHERS: Suzanne. COMMISSIONER WIGINGTON: Wait. If you don't mind because I just got a call. And last time I got a call, from home, I was told we were on air, even though we're in a closed session. MS. HUTTON: Well, it will show the screen. It normally does show the screen. COMMISSIONER WIGINGTON: Are we on air? Okay. Okay. Thanks. All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 01 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. HUTTON: They can't hear us. MAYOR CARRUTHERS: Okay. So let's not revert to sign language. MS. HUTTON: Re: Case No -- yes. You might want to cover your mouths with your hands while you talk so they can't lip read. COMMISSIONER NUGENT: Got a baseball glove? MR. SHILLINGER: Catcher's mask? MS. HUTTON: Case Number 2010 CA 979 K. At that meeting the Board approved holding a closed session on June 28th, 2011, at 2:30 p.m. Public notice was given to the public through announcement at a closed session, at the May 18th BOCC meeting, and through publication of the June 15th, 2011 BOCC meeting. At each meeting after that, for July 20th. At the June 15th meeting we postponed it to July 20th with the same notice. On July 20th we moved it to the August 17th, 2011, BOCC meeting with the same notice. And at the August 17th, 2011 meeting, the BOCC continued the closed session to September 21st, with the same notice. Public announcement at the meeting and for publication of the September 213t meeting agenda on the Website. For the record, and benefit of the court reporter, each of us will state our name and position, starting with the Commission. All Keys Reporting — Court Reporters — (305) 289-1201 Locations in Key Largo, Marathon & Key West 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER WIGINGTON: County Commissioner Kim Wigington, district one. COMMISSIONER RICE: David Rice, county commissioner, district three. MAYOR CARRUTHERS: Four. COMMISSIONER RICE: Whatever. Monroe County. MAYOR CARRUTHERS: Heather Carruthers, county commissioner, district three. For sure. George. COMMISSIONER NUGENT: County Commissioner George Nugent, district two. COMMISSIONER MURPHY: Direct five, Commissioner Sylvia Murphy. MS. HUTTON: County Attorney Suzanne Hutton. MR. GASTESI: Roman Gastesi, county administrator. MS. GRIMSLEY: Assistant County Attorney Susan Grimsley. MR. SHILLINGER: Bob Shillinger, chief assistant county attorney. MS. HUTTON: Just as a reminder, we will only be discussing settlement negotiations and strategy relating to litigation expenditures. You cannot take decisive action at this meeting. We can only provide information and you can provide direction to the attorneys. Any decisions the board makes will be done in an open meeting. All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 And I'm going to turn it over to Bob Shillinger. MR. SHILLINGER: Good afternoon. I E-mailed you earlier this afternoon some photographs. I was going to attempt to put them up on the board but we're having iPhone and iPad technical challenges. MAYOR CARRUTHERS: Got them. MR. SHILLINGER: You got them? COMMISSIONER WIGINGTON: Yes. COMMISSIONER RICE: Got them. MR. SHILLINGER: Pictures make it easy to understand what we're talking about. I mailed them, E-mailed them to the court reporter, for the record, so she can make them part of the transcript, as well as everybody else. What we're talking about today, you'll see these three photographs. There is a rock jetty at the end of 4th Street. If you space down to the next picture it shows you a larger picture, which tells you it's on Summerland Key. And then there's a land view picture looking straight out. That pile of rocks, the rock jetty has been there since the 1950's. Mr. Klimock is the owner of the property that's immediately adjacent to that, inside that fence line of the photograph. He has been trying to exercise dominion and control All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 over that for a couple of years. His latest attempt was a quiet title action, which he filed against the County and the State Board of Internal Truman Trust Funds, the folks that have jurisdiction over the sovereign submerged lands. And what he was seeking was a declaration or quiet title action, which declared that he is the owner of the dirt underlying the pile of rocks, the rock jetty. The state -- door. MAYOR CARRUTHERS: Would somebody put a note on that MR. SHILLINGER: There is a sign over there. MAYOR CARRUTHERS: Oh, is there. MR. SHILLINGER: The State has asserted ownership of the bay bottom, underneath the pile of rocks. Our ownership interest only goes to the end of 4th Street. And our interest really is just an easement, for the benefit of access. We don't own the fee simple title to it. We just have a dedicated easement. The right-of-way has been dedicated when the subdivision was platted back in the '50s. So we don't actually own any of the dirt. We just have so much of an interest that allows for vehicle access, pedestrian access, down to the edge of the water. The State has -- well, Mr. Klimock filed a motion for summary judgment against the State because they were 61 All Keys Reporting — Court Reporters — (305) 289-1201 Locations in Key Largo, Marathon & Key West 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the one, primarily, that he thought had a real claim to a dispute in ownership. And the State fought that. And, actually, the court has ruled in the State's favor. Saying that the shoreline protection structure, even though he may have built it, or his predecessor in titles may have built it, does not qualify him, under the statute to, by operation of law, be transferred to his ownership because it happened prior to July 1st of 1975. So the court has pretty much ruled the dirt underneath the pile of rocks belongs to the State. Mr. Klimock is attempting for rehearing. Then he has indicated he will appeal that. But he's approached us and asked us -- he gave us a settlement offer which I'm obligated to convey to you. I'm not necessarily going to recommend it, in light of what the court's ruling. What he was suggesting was that the County issue a quitclaim deed to him for whatever interest we have underneath the pile of rocks. We really don't have any interest in the dirt, under the pile of rocks. But in light of the court's ruling -- yes. COMMISSIONER NUGENT: Is there any liability to issuing the quitclaim deed? MR. SHILLINGER: No. What you're saying when you give a quitclaim deed is, whatever ownership interest, All Keys Reporting — Court Reporters — (305) 289-1201 Locations in Key Largo, Marathon & Key West 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 whatever portion of the bundle of sticks that I hold, I give them to you. COMMISSIONER NUGENT: Or I don't own anything? MR. SHILLINGER: That's a little different thing called a disclaimer. COMMISSIONER NUGENT: Oh, okay. MR. SHILLINGER: And that's where we're going to differ a little bit from Mr. Klimock's original settlement offer. Since the court's ruled that it belongs to the State and likely will get affirmed on appeal, I don't feel it's probably appropriate for us to quitclaim any interest we might have to him and bolster his claim against the State. MAYOR CARRUTHERS: Did you mean the State? MR. SHILLINGER: Or just allow the court to enter a judgment saying the County has no interest in the dirt underneath the pile of rocks. MAYOR CARRUTHERS: What is it he wants to do with the dirt under the pile of rock? MR. SHILLINGER: Well, he -- his real interest is, he wants to put a fence up, down the pile of rocks. This was back in front of you, back in 2007. Well, not all of you. MAYOR CARRUTHERS: Yeah. All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. SHILLINGER: But at least two of you. COMMISSIONER WIGINGTON: Can I have -- MR. SHILLINGER: On a road abandonment. And he was looking to abandon a portion of 4th Street. Well, that went over like the pile of rocks. It was a 5-0 vote not to do it. The community came out. People as far south as Key West came out to speak against it. This is a more narrowed approach of who owns the actual underlying dirt. His stated principle then and today -- I'll get to you in a second -- is that he's fearful that -- he wants to be able to fence it because he's fearful that if someone slips and falls on it, he will get sued. Well, now that it's not his land, he may not have that. MAYOR CARRUTHERS: What about people who climb the fence and slip and fall that way? MR. SHILLINGER: Then they have a little -- they have a tougher case against him, but -- yes. COMMISSIONER WIGINGTON: Which side of the street does he live on, the side with the rocks, or the one across -- MR. SHILLINGER: The side with the rocks. MS. HUTTON: He's that big -- MR. GASTESI: The white house. MS. HUTTON: -- white house. MAYOR CARRUTHERS: Okay. This is familiar to me for All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 W-1 19 20 21 22 23 24 25 10 1 some reason and I think I've heard it as a commissioner, or you at least briefed us when we came -- MR. SHILLINGER: Right. MAYOR CARRUTHERS: -- on board. MR. SHILLINGER: It was this side over here. COMMISSIONER WIGINGTON: He wanted to put a fence. COMMISSIONER NUGENT: Which side does he own, the right side, looking at it? MS. HUTTON: Right. MAYOR CARRUTHERS: He wanted -- MR. SHILLINGER: The rock side. COMMISSIONER WIGINGTON: He wanted to put a fence down the side of the rocks. And he was concerned with liability of someone being on the rocks, his liability? MR. SHILLINGER: Yes. COMMISSIONER WIGINGTON: Okay. I got it. MR. SHILLINGER: So my recommendation, I'm more comfortable just agreeing for the court to enter judgment saying, we have no interest in the dirt underneath the pile of rocks and then letting him duke it out with the State. Certainly, we don't want to assert any ownership over the pile of rock and take on any liability ourselves. So -- COMMISSIONER NUGENT: But, Bob, that is within the jurisdiction of Monroe County? All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. SHILLINGER: I'm not sure I understand your statement. Within the jurisdiction, yes. It's within Monroe County. COMMISSIONER NUGENT: So -- and -- and we don't own the water column. The State has said that they own the bay bottoms. The court has agreed with that. MR. SHILLINGER: Right. COMMISSIONER NUGENT: And -- MR. SHILLINGER: The State owns up to the mean high water line. COMMISSIONER NUGENT: And he put -- he or his predecessor, or somebody, just put the rocks in. And because of that, he's claiming ownership? MR. SHILLINGER: Right. COMMISSIONER NUGENT: Which has been denied to him? MR. SHILLINGER: Yes. COMMISSIONER NUGENT: So -- MAYOR CARRUTHERS: Well, he might own the rocks; right? COMMISSIONER NUGENT: Well, so -- did he then -- can we, de facto, violate code by putting those rocks in? MR. SHILLINGER: Well, it was done in the 1950s. You have limitations. You have -- COMMISSIONER NUGENT: Oh, it was that far back? MR. SHILLINGER: Yes. It was that far back. All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West L4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 COMMISSIONER NUGENT: Okay. MR. SHILLINGER: And it was before a lot of these laws went into play, and filling sovereign submerged land laws went into play. So back in the day that's what you did, to protect the shore. COMMISSIONER NUGENT: So why would we issue a disclaimer and -- MR. SHILLINGER: Yes. Just -- COMMISSIONER NUGENT: -- let them have it? MR. SHILLINGER: Or allow the court to enter judgment against us saying we have no interest. That's my recommendation. It's the cleanest. It gets us out. Before I do that though, I want to make sure I have the consent of my client to make sure I do that, so. COMMISSIONER MURPHY: Yes. COMMISSIONER WIGINGTON: Looking at this picture, not only does he have his own canal and boat ramp, and a large property -- I'm not saying anything about the amount of land that he owns, and what he does own. I'm just wondering what is the real fight over these rocks? Certainly, it can't be what he's saying, in that there was liability. What purpose could he have, if you played this out, in wanting to bring the suit and do what he's doing? MR. SHILLINGER: I think he wants to exclude people All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 W. WX 20 21 22 23 24 25 13 1 from being able to come around that and walk on his beach, perhaps. I mean, that's clearly his beach. COMMISSIONER WIGINGTON: Okay. Okay. MR. SHILLINGER: Yes. There are -- and I don't have a good picture of it in the set that I sent, but there are -- maybe the bigger picture shows that there are three or four fingers that stick out. They're like shoreline protection structures, either jetties or fingers that he's put out, or the -- again, the predecessor, Mr. Hutchins (Ph.), back in 1959, when it was built, what they put out to kind of protect the shoreline there. And it is a large piece of property. So he's trying to maintain his beach -- COMMISSIONER WIGINGTON: Understood. MR. SHILLINGER: -- in some respects. He's applied to DEP for permits in the past. He's been fighting this issue for -- Suzanne? MS. HUTTON: I'm going to say, 12 to 15 years. At some point he actually had the County Commission declare that property a historic structure, against my advice to him, not to do it because he would have to make it open to the public, to get the exemption. You get -- you get a small historical, if your property is declared historical, some exemption, tax exemption. It's a modest amount, but he wanted it. All Keys Reporting — Court Reporters — (305) 289-1201 Locations in Key Largo, Marathon & Key West 1 2 3 4 5 6 7 I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 I MAYOR CARRUTHERS: For the property or the jetty? MS. HUTTON: For the house. The house was built by the engineer to Flagler, for Flagler's railroad. COMMISSIONER RICE: Right. MS. HUTTON: Or something like that. COMMISSIONER RICE: Then he realized that it didn't work so well. MS. HUTTON: It didn't work so well. So he had the County Commission undeclare it a historical property. COMMISSIONER RICE: And at some version of this, the fight was really over whether his neighbor behind the white picketed fence, he was trying to keep his neighbor from parking his boat trailer there, parallel or at the end of those rocks, which is just past his gate, over here. So it was a neighborhood dispute, at one point. Not sure whatever happened there. MAYOR CARRUTHERS: Well, he seems pretty intent on keeping people out. COMMISSIONER MURPHY: Well, if he's that worried about the rocks and the liability, why doesn't he just remove the rocks? COMMISSIONER NUGENT: Because he wants to fence off his beach. COMMISSIONER MURPHY: Well, yeah. But, I mean -- COMMISSIONER NUGENT: And what's wrong with that? All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 7 LV 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 15 1 COMMISSIONER MURPHY: Gee, nothing. If I had a beach I would fence it off too. COMMISSIONER NUGENT: There you go. COMMISSIONER MURPHY: See. COMMISSIONER WIGINGTON: It's obvious he needs something to do, when he played with the State. MR. SHILLINGER: All right. So that's the direction I intend to take. COMMISSIONER MURPHY: For the next 15 years. MR. SHILLINGER: I don't think we're going to need a vote on the actual item, since you have just given me direction to take in the litigation, as opposed to a settlement agreement. So I will take steps to allow a judgment to be entered against us, in this case, saying we have no interest in the underlying dirt. And we'll go forward. MAYOR CARRUTHERS: Okay. MS. HUTTON: So we can close this particular closed session. MAYOR CARRUTHERS: All right. MS. HUTTON: We'll go back into open session, in the fashion we just went. Do we really need to have Bell back in? (Attorney/client closed session was concluded at 1:47 p.m.) All Keys Reporting - Court Reporters - (305) 289-1201 Locations in Key Largo, Marathon & Key West 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CERTIFICATE STATE OF FLORIDA, COUNTY OF MONROE I, Patricia A. Zischka, certify that I was authorized to and did stenographically report the foregoing proceedings and the transcript is a true record. Dated this 16th day of October, 2011. Patricia A. Zischka All Keys Reporting — Court Reporters — (305) 289-1201 Locations in Key Largo, Marathon & Key West 16 1 4 "A340 4th St, Summeriand Key, FL 33042 �-jr, GC:T0,0oogie "a a* 25340 41h St., S.,T, Key, FL 33042 020IOGW'sk, El ed �fiAls