Item K1* 1:3 0 p.m. Closed Session *
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: 3/20/13
— MAR
Division: County
Attorney
Bulk Item: Yes
No XX
Staff Contact Person:
Bob Shillinger. 292-3470
AGENDA ITEM WORDING: An Attorney -Client Closed Session in the matter of Reynolds v.
Utility Bd of the City of KW, dba Keys Energy Services, PSC Docket No. 120054-EM.
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 Bob Shillinger, Assistant County Attorney Derek Howard, Assistant County Attorney Susan
Grimsley, Assistant County Attorney Steve Williams, special litigation counsel Jay LaVia and Robert
"Schef'Wright and a certified court reporter.
PREVIOUS RELEVANT BOCC ACTION:
2/26/13 BOCC Special Meeting — BOCC approved Closed Session for 1:30 p.m. on 3/20/13 in
Marathon, FL or as soon thereafter as may be heard
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
DISPOSITION:
Revised 2/05
Not Required X
AGENDA ITEM #
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
I I 1112`h Street, Suite 408
Key West, FL 33040
(305) 292-3470 — Phone
(305) 292-3516 — Fax
In Re: Reynolds v. Utility Board of the City of K.W., d/b/a Keys Energy Services,
PSC Docket No. 120054-EM
Dear Mr. Madok:
Please find enclosed herewith the transcript of the March 20, 2013 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,
V
Robert B. Shillinger
Monroe County Attorney
Enclosure
C
AUNTY SO�MONROE
KEY WESTLORIDA 33040
(305)294-4641
Suzanne A. Hutton, County Attorney"
Robert B. Shillinger, Chief Assistant County Attorney **
Pedro J. Mercado, Assistant County Attorney **
Susan M. Grimsley, Assistant County Attorney **
Natileene W. Cassel, Assistant County Attorney**
Cynthia L. Hall, Assistant County Attorney **
Christine Limbert-Barrows, Assistant County Attorney**
Derek V. Howard, Assistant County Attorney
Lisa Granger, Assistant County Attorney
Steven T. Williams, Assistant County Attorney
** Board Certified in City, County & Local Govt. Law
August 2, 2013
Amy Heavilin, Clerk of the Court
Sixteenth Judicial Circuit, State of Florida
Monroe County Courthouse, Suite 101
Key West, Florida 33040
Attn.: Vitia Fernandez, Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
Mayor George Neugent, District 4
Mayor Pro Tem Danny Kolhage, District 1
David Rice, District 4
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
Office of the County Attorney
I I 1112`h Street, Suite 408
Key West, FL 33040
(305) 292-3470 — Phone
(305) 292-3516 — Fax
Re: Florida Public Service Commission Docket No.: 120054
Complaint of Robert D. Reynolds and Julianne Reynolds against
Utility Board of the City of Key West, Florida, d/b/a Keys Energy Services
Dear Vitia:
Please find enclosed herewith a transcript of a closed session of the Monroe County Board of County
Commissioners on the above -referenced matter. The closed session took place at the March 20, 2013
BOCC meeting in Marathon, Florida.
The above -referenced litigation has concluded, and this transcript can be added to the public records
on the BOCC meeting of March 20, 2013.
Very truly
Laurie Daiftigue
Paralegal, Litigation
Enclosure: Transcript of Closed Session on March 20, 2013
c
MEETING OF THE
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
ATTORNEY -CLIENT CLOSED SESSION
RE: REYNOLDS v. UTILITY BOARD OF THE CITY OF K.W., d/b/a
KEYS ENERGY SERVICES, PSC Docket No. 120054-EM
HELD AT THE
COMMISSION CHAMBERS
2798 OVERSEAS HIGHWAY
MARATHON, FLORIDA 33050
WEDNESDAY, MARCH 20, 2013
1:34 P.M. - 2:22 P.M.
Commissioners Present:
COMMISSIONER DANNY KOLHAGE
MAYOR PRO TEM HEATHER CARRUTHERS
MAYOR GEORGE NUGENT
COMMISSIONER DAVID R. PRICE
COMMISSIONER SYLVIA J. MURPHY
County Staff Present:
CERTIFIED COPY
COUNTY ATTORNEY BOB SHILLINGER, ESQ.
ASSISTANT COUNTY ATTORNEYS SUSAN GRIMSLEY, ESQ.
and STEVE WILLIAMS, ESQ.
COUNTY ADMINISTRATOR ROMAN GASTESI
SPECIAL LITIGATION COUNSEL ROBERT "SCHEF" WRIGHT, ESQ.
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
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MAYOR NUGENT: We will now call the closed
session to order.
MR. SHILLINGER: For the record, this meeting is
being held at my request, when I announced, at a prior
BOCC Special Meeting, held on February 26, 2013, that
I needed your advice in the matter of Reynolds versus
Utility Board of the City Of Key West, doing business
as Keys Energy Services, PSC Docket No. 120054-EM. At
that meeting, the Board approved holding a closed
session today, March 20th, 2013, and public notice was
given through public announcement on the 26th of
February, as well as the publication of today's agenda
on the County's website.
For the benefit of the record and the court
reporter, each of us will state our name and position,
starting with the Commission.
MAYOR NUGENT: Time out. Are we off the air?
COMMISSIONER CARRUTHERS: I don't know if we are,
because we can still see ourselves.
MR. SHILLINGER: We can do the process of
identifying ourselves
MAYOR NUGENT: Okay.
MR. SHILLINGER: -- at this point.
COMMISSIONER KOLHAGE: Danny Kolhage,
Commissioner, district one.
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COMMISSIONER CARRUTHERS: Heather Carruthers,
Commissioner, district three.
MAYOR NUGENT: George Nugent, Commissioner,
district two.
COMMISSIONER RICE: David Rice, Commissioner,
district four.
COMMISSIONER MURPHY: Sylvia Murphy,
Commissioner, district five.
MR. GASTESI: Roman Gastesi, County
Administrator.
MR.
SHILLINGER:
Bob
Shillinger, County Attorney.
MS.
GRIMSLEY:
Susan
Grimsley, Assistant County
Attorney.
MR. WILLIAMS: Steve Williams, Assistant County
Attorney.
MR. WRIGHT: I'm Robert Scheffel Wright, Special
Utility Counsel for the County.
MR. SHILLINGER: All right. Just as a reminder,
we will only be discussing settlement negotiations and
strategy relating to litigation expenditures. We
cannot take any decisive action at this meeting. We
can only provide information and direction to the
attorneys. Any decisions that this Board makes
concerning this case must be done at a meeting open to
the public.
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And I will start us off with a little background.
At our last closed session you had given me direction
to attend a PSC status conference, three or four days
after our last closed session, and said, "Come back
and tell us what they said and we'll make a decision
on where we're going further, in that regard."
So, we went to that meeting. I attended by
telephone. Mr. Wright was there in person. And,
essentially, what was decided was that the complaint
needed to be revised because it was outdated.
Mr. Smith, Mark Smith had filed this back before
Keys Energy had run the lines. And he was still
attempting to force Keys Energy, or get the PSC to
order Keys Energy to run the lines. And, we all know
that the lines have already been run.
So, they -- it.was agreed that he had to
repackage his complaint and amend it. And, then, we
would have a further discussion on the jurisdictional
issues.
Mr. Smith, eventually, did that. We got a copy
of it last week. Mr. Wright is here to talk about the
complaint. The proposed strategy that he is
recommending, and, you know, the larger picture issues
of what's at stake in going forward, the benefits of
going forward, and the -- before the PSC. So, I will
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turn it over to Schef, as he is known.
And if you want to present from the podium, the
microphones help everybody hear, because the acoustics
are a little tough.
MR. WRIGHT: Good afternoon, Mayor,
Commissioners. Thanks for having me down here.
Actually, I lived for about a year, when I was a
little teeny person, in Key West, when my dad was
stationed there for a brief time. So, it's good to be
back. I've been back a number of times.
I'm happy to take your questions at any time in
my remarks. I do have a few things that I can address
and I'll just start, and you can jump in anytime.
As I think you know, the circuit court case was
dismissed with prejudice. That decision was upheld by
the Third District Court Of Appeal. However, in its
decision, the DCA said, the appellant -- the appellant
adds, Ms. Putney and the County are free to raise
their issues and claims before the Florida Public
Service Commission. We are simply not telling the PSC
they are done ab initio. The appellants can raise
their claims to PSC and we expressed no views, no
opinion as to the merits of those claims. So, as far
as the DCA is concerned, we are free to go forward to
the PSC.
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If the outcome of that case is adverse to either
party, either party, that would be the Reynoldses and
the property owners association on the one hand,
County, and Ms. Putney on the other hand.
Any appeal of that order would go directly to the
Florida Supreme Court by Constitution and Statutory
law. So, we have the PSC Docket. And that docket was
initiated on -- yes, ma'am.
COMMISSIONER CARRUTHERS: I have a question. You
said, if the outcome is adverse to either side, it --
MR. WRIGHT: Sure.
COMMISSIONER CARRUTHERS: -- goes to the Supreme
Court?
MR. WRIGHT: Yes, ma'am.
COMMISSIONER CARRUTHERS: How can the decision
not be adverse to one side or another?
MR. WRIGHT: Well, it's probably inartful
wording. The losing party at PSC could either --
either side could appeal to the PSC. That's all I
meant.
MR. SHILLINGER: To the Supreme Court.
MR. WRIGHT: That the PSC could appeal to the
Florida Supreme Court.
COMMISSIONER CARRUTHERS: But it's not automatic.
It's only if they choose to do so, right?
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MR. WRIGHT: Correct.
COMMISSIONER CARRUTHERS: Okay.
COMMISSIONER KOLHAGE: Has the standing issue
been settled by the PSC?
MR. WRIGHT: No, sir. And, I was going to get to
that because there are multiple standing issues here.
The initial complaint was filed March 5th of last
year. Informally, there was no order issued.
Clarifying, it's been informally. Everybody agreed to
hold everything in abeyance while the DCA process ran
its course. The opinion was rendered last month by
the DCA. The PSC Docket has been reactivated.
As Mr. Shillinger mentioned, we have an issue ID
conference on March 1. At the PSC, we have another
issue ID conference scheduled at the PSC. It's at the
staff level, not -- there are no commissioners
present. We have another issue ID conference
scheduled for 1:30 p.m. tomorrow afternoon.
The Reynoldses filed an amended complaint, as was
discussed at the March 1 issue ID conference, after
hours on Monday, March lath, nine days ago.
Technically, that can count as being filed on Tuesday,
March 12. Operationally, that doesn't matter and I'll
get to that in a minute.
Well, mind if I talk now? Let me -- there are a
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number of issues that could be addressed at the PSC,
but -- and I'm happy to go into as much detail or as
little as you all want.
But, the three basic issues, I think, are these
first, as Commissioner Kolhage asked, what about
standing. There are standing issues. I don't believe
that either the Reynoldses or the property owners have
standing to maintain their action at the PSC because
their action grounds in the territorial agreement
between Keys Electric Service and Florida Keys
Electric Co -Op.
That agreement only applies, in my opinion, to
KES and FKEC, by its own terms. That agreement
expressly states that it creates no third -party
benefits and no third -party beneficiaries. I don't
think they have standing to bring that action.
Additionally, I think there's a jurisdictional -- I
think that the pro -electrification folks have other
problems, in that there is no PSC statute that
provides that the PSC has the authority to order KES
or any municipal or cooperative utility to provide
service.
And, similarly, there is no statute that says any
municipal or cooperative utility has an affirmative
statutory obligation to provide service.
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On the contrary, for public utilities, it's a
defined term under the statute. Such as, Power --
Florida Power & Light, there is an affirmative
statutory obligation to provide service.
So, absent formal jurisdiction and absent
standing under the territorial agreement, I think that
the pro -electrification folks have serious standing
problems at the PSC.
I will mention, in passing, that I think
Ms. Putney also has a very serious standing problem at
the Public Service Commission.
The two more meaningful issues, if -- assuming we
get past the standing issues, are these. Does the PSC
have jurisdiction to order Keys Electric Service to
provide service as requested by the Reynoldses, and
the Newtons and others who want it on No Name Key?
And, secondly, if the Public Service Commission
does have such jurisdiction, should they exercise it,
in this case, to require service. So --
COMMISSIONER KOLHAGE: Can I stop you there?
MR. WRIGHT: Yes, sir.
COMMISSIONER KOLHAGE: If the service is already
out there, why isn't that question moot now?
MR. WRIGHT: I think the answer to that, Mayor,
Commissioner Kolhage, is because no service is being
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provided. And, as I understand it, no service is
being provided because the County has not and,
presently, does not intend to issue building permits
for the final connection of the -- what we call the
service laterals, from the lines that are out there,
to the houses that are out there.
COMMISSIONER CARRUTHERS: Is there juice in those
lines now?
MR. WRIGHT: I don't know that for a fact. I
believe the answer is, yes, but I do not know that for
a fact. If I were KES I would have left the switch
open so that they would not be energized, but to get
juice to it would be a simple matter of closing the
switch.
COMMISSIONER KOLHAGE: Okay. So, I'm trying to
get this clear in my mind. So, is our issue whether
or not, and how far the Public Service Commission's
authority extends? In other words, from the pole --
the poles are already there. The lines are not
energized. Is the issue between the pole and the
residence, or, I mean, is there a -- I'm trying to see
whether or not it would also afford us going any
further, here's my one vote, are there any bigger
issues? What is the big issue for Monroe County, in
terms of, is it a jurisdiction issue, is it a question
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of infringing on Keys Power? What is the issue?
What's the big issue?
MR. WRIGHT: Mr. Mayor, Commissioners, I think
there are several answers to that. I think
Mr. Shillinger has a more comprehensive handle on
those issues. But, the answer to your specific
question is, yes. The issue posed here does raise a
question of infringement or impairment on the County's
jurisdiction to enforce its ordinances, more generally
than just for these 43 houses on No Name Key.
And, additionally, there's also the issue of the
County's potential vulnerability. And, I don't know
how important this is to you all, in any event. But
to a citizen lawsuit, under section 403412 Florida
Statute, by Ms. Putney, demand that could --
hypothetically, demand that the County enforce its
existing ordinance, Comp Plan and Land Development
Regulations to prohibit, as required under those
regulations, the extension of these lines.
COMMISSIONER KOLHAGE: From the pole to the
house?
MR. WRIGHT: Yes.
MAYOR NUGENT: That's the ordinance.
COMMISSIONER KOLHAGE: Right.
COMMISSIONER CARRUTHERS: That's the ordinance
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because --
MAYOR NUGENT: That obstructs.
MR. SHILLINGER: Right. Because, under State
law, the utility is allowed to run the lines in the
rights -of -way.
COMMISSIONER CARRUTHERS: On rights -of -way.
COMMISSIONER KOLHAGE: Okay.
MR. SHILLINGER: So --
COMMISSIONER KOLHAGE: So, can we require a
permit for a person to connect to utilities, the
power?
MR. SHILLINGER: Yes.
COMMISSIONER KOLHAGE: And we're not issuing that
permit?
MAYOR NUGENT: Right. Because of the ordinance.
MR. WRIGHT: Right.
MR. SHILLINGER: We require -- and it's even a
little more technical than this. And, unfortunately,
in a closed session I can't have the technical staff
in here to explain it, but I'll explain it as best as
I can understand it.
We require a permit for us to inspect the
connection. And utility doesn't want to energize it
without that inspection. Because they don't want to,
obviously, power up and they're not -- you know, there
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be a problem.
So, it's -- the permit is required to get the
inspection. The inspection is required to do the
energization.
COMMISSIONER CARRUTHERS: Energize it.
MR. SHILLINGER: To energize it. So, yes, we
require a permit.
COMMISSIONER KOLHAGE: Okay. And, they -- is
the -- the plaintiffs in this, are they trying to say
that the PSC should order Monroe County to issue the
permits?
MR. WRIGHT: That is their claim. I will tell
you that, in my very, very strong opinion, the Public
Service Commission does not have jurisdiction over
Monroe County. They cannot order you to provide
service. Their best case is, the PSC says -- and,
again, I don't agree with this. But, their best case
scenario is, the PSC says, we have jurisdiction to
order KES to provide service. Our jurisdiction is
superior in every respect to Monroe County. We can
talk about preemption laws, if you want to.
And, therefore, we considered whatever we're
going to consider. And, at the conclusion, we ordered
KES to provide service. There KES sits with an order
from the PSC, claiming that it has exclusive
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jurisdiction to require service, and having done so.
Mr. Smith, the plaintiffs, the Reynolds, the
Newtons and the pro -electrification folks would then
take that PSC order to the -- back to the circuit
court down here, and say, Your Honor, we have this PSC
order asserting that KES is now required, as a matter
of utility regulatory law, to provide service. We now
ask you for a Writ of Mandamus to Monroe County, to
issue these building permits. That's how it goes.
MAYOR NUGENT: Okay.
MR. SHILLINGER: In short, what we're fighting
over is, where is the line drawn between the County's
jurisdiction and the PSC's jurisdiction.
MAYOR NUGENT: That being the case, for me, it
then comes to, are we, and I go along with the
jurisdictional dispute, you saying that PSC is not
going to order us, in conflict with our existing
ordinance, to hook up.
We -- we're -- we're at an impasse right there,
as I see it. PSC is not going to tell us, contrary to
our ordinance, to issue a permit to hook up. Is that
what I'm hearing?
MR. WRIGHT: I -- two things. One; yes, sir. I
believe that to be true. I believe that whatever else
they may say, they will recognize that they do not
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have jurisdiction over Monroe County.
MAYOR NUGENT: That being said -- Bob, you're
looking at me like I'm not making any sense.
MR. SHILLINGER: I'm waiting for the next part of
the question.
COMMISSIONER CARRUTHERS: I know what the next
part of the question is. The next part is going to
be, if they're going to say that anyway, why don't we
just step aside, right?
MAYOR NUGENT: No. That's not what I'm
getting
COMMISSIONER CARRUTHERS: Okay.
MAYOR NUGENT: I just want to make sure that
we're all on the same page. And you're there, I
think. With the impasse that we're at right now, is,
however, without the Comp Plan amendment change, LDR
change, which DEO is requiring, our Growth Management
director is saying that they need, then we're going to
have to go through that process, which is the
lengthiest of the processes.
COMMISSIONER CARRUTHERS: I don't know if it was
the lengthiest.
COMMISSIONER KOLHAGE: Unless --
MAYOR NUGENT: No, because we thought that --
correct me where we are not communicating here. But,
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at the last commission meeting we thought that the PSC
might step in here and say, hook them up. We've
got -- we've got jurisdiction here.
COMMISSIONER KOLHAGE: No, I never thought that.
MAYOR NUGENT: No?
MR. SHILLINGER: No.
COMMISSIONER MURPHY: No.
COMMISSIONER KOLHAGE: Heaven forbid that they
would do that. But what this attorney is saying is
that, okay. They get a ruling that says, yes, Keys
Energy has a positive duty to provide the power. They
go back in the circuit court in this mandamus action.
MR. SHILLINGER: And order us to do it.
COMMISSIONER KOLHAGE: Wave that in front of the
judge and say, okay. Now, order them to issue
permits. But -- and I'll say one other thing. On the
other hand, if none of these people have standing,
this case goes away?
MR. WRIGHT: Yes, sir.
MAYOR NUGENT: It can't go away. The case may go
away, but the situation can't go away.
COMMISSIONER KOLHAGE: Where we --
COMMISSIONER CARRUTHERS: Wait. Then we are left
with dealing with our Comp Plan to cure the situation.
MR. SHILLINGER: As well as the remaining issues
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in circuit court. Because we're not talking about
today, on the validity of our ordinance adoption, that
type of writing.
MR. WRIGHT: And I would say, my opinion, as it
should be. It should be back to the commission. Deal
with your Comp Plan and back in circuit court. I
think that the underlying decision was wrong,
personally, you know, but, DCA held otherwise. But, I
think Judge -- I forget his name.
MR. SHILLINGER: Audlin?
MR. WRIGHT: No, the other judge.
MR. SHILLINGER: Payne?
MR. WRIGHT: Payne. You know, I think he had it
right. I think this is a matter for the court. You
got this interesting conflict between a validly
promulgated environmental ordinance, your Comp Plan,
your LDRs and the PSC's jurisdiction over territorial
agreement.
Even if we're FPL, the most they can say is that
FPL has to provide service. But, PSC doesn't resolve
environmental statutes. And we're not attempting to
regulate service territories. We, the County --
MAYOR NUGENT: This is not an environmental type
of situation.
MR. WRIGHT: I'm sorry. It's a Growth Management
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situation. But, I think the analysis is essentially
the same, you have a valid Growth Management
ordinance. And the PSC doesn't regulate Growth
Management. We don't regulate territorial agreements.
There is no territorial dispute here. There's no
argument as to who's going to provide service.
There's no issue of potential uneconomic duplication
at distribution facilities.
MR. SHILLINGER: But is there --
MR. WRIGHT: This issue --
MR. SHILLINGER: All right. It's not a fight
between Keys Energy and the Co -Op. If -- that's what
a territorial dispute would be. And that's not what
this case is about. If it was a fight between Keys
Energy and Florida Keys Electric Co -Op, PSC would
clearly have jurisdiction.
COMMISSIONER KOLHAGE: How long do you think it
would take the PSC to rule on these standing issues?
MR. WRIGHT: My best estimate -- Mr. Mayor and
Commissioner, my best estimate is that we could get a
vote from the Public Service Commission on June 18th.
And I'll tell you how I get there.
They've got an agenda conference scheduled on
that date. The next earlier agenda conference is
scheduled for May 14th. I don't think they have time
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for the parties to adequately brief the issues, and
for the Public Service Commission staff to write their
recommendation on the issues, in time to get on the
May 14th agenda. That's why I think it's going to --
to June 18th, to get a vote, or it would come out
about 20 days thereafter. That's my best estimate and
I will also tell you I know that that's the date that
lead staff attorney on the case is looking at, too.
So, three months.
MAYOR NUGENT: And --
COMMISSIONER MURPHY: Not bad.
MAYOR NUGENT: So, it's pretty clear to me, that
the only way through this, and that's if there's
majority support of the commission, to move this
forward through the process that was described to us
by the Growth Management director, of which we took a
vote. Then what are we talking about?
COMMISSIONER KOLHAGE: Right. The only -- I
understand what the Mayor is saying. And I'm trying
to -- and I'm struggling with that. The only thing
we're here to protect against is an adverse ruling by
the Public Service Commission that's going to enhance
their case in the local circuit court. Is that it?
MR. SHILLINGER: And to defend your ability to
legislate in the issues of Growth Management, and
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whether you can regulate the connection to the
utilities that they have the right to run. This is
the same issue with respect to the 905 folks in Key
Largo. So, it's where do you draw the line?
COMMISSIONER KOLHAGE: Okay.
MR. SHILLINGER: And, so, do you want to
participate in that discussion or do you want to take
a pass and roll and let --
COMMISSIONER KOLHAGE: Okay. I hear you. I
don't like what you're saying, but --
MAYOR NUGENT: Well, what I'm hearing, and I'm --
I want to hear from my attorney. If -- so, we're
looking at, and I don't see a problem with 905 because
there's a construction issue, and then we're going
through a process that was excluding all the appeals
and efforts, that they'll probably be finishing
construction about the time that we could have the
amendment changed, if there's not a --
MR. SHILLINGER: Assuming you have three votes tc
pass it.
MAYOR NUGENT: Assuming you have three votes to
pass. But that was the direction that we took, was to
go down that path; did we not?
COMMISSIONER KOLHAGE: Yeah.
MR. SHILLINGER: You took the direction, as I
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understand it, was to gather the information so that
you could make the decision, the policy decision on
whether you wanted to continue this ordinance in
place.
MAYOR NUGENT: Okay. Maybe I'm fast forwarding,
that based upon the interpretation of the discussion
that took place at the last commission meeting, that
we're moving forward with that process after we get
the information.
MR. SHILLINGER: I --
COMMISSIONER MURPHY: Maybe.
MR. SHILLINGER: -- I understand that that's what
you're getting -- that is your read of it. And I
think that's probably where it may end up. But, in
terms of the official action that's been taken to
date, it was a step in that direction by you asking
for information, but there has been no direction to
the Growth Management staff to process --
MAYOR NUGENT: Okay.
MR. SHILLINGER: -- the amendment or change the
code.
MAYOR NUGENT: Here is my other question to you,
from the standpoint of further litigation. So, Public
Service Commission rules that we're -- we can't
override the in -place ordinance that the County has.
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So, then, who becomes the potential target for
litigation? We're holding up what everybody else --
and all of a sudden -- and we have, really, in my
opinion, no defense to keep them. Because Fish &
Wildlife has said, "There's no impact to the animals."
So, this is just some kind of principle decision that
you're taking to keep these people from hooking up.
MR. SHILLINGER: That me, Bob Shillinger is
taking, or that me, the County?
MAYOR NUGENT: No, the County Commission.
MR. SHILLINGER: I just want to make sure
we're -- you know, we're talking, you, who we're
talking about.
It is a policy decision of the Board to restrict
that -- to use that term of restricting it there. So,
yes, that is --
MAYOR NUGENT: You heard my description of, we
then become the litigant target in Bob Reynolds' case.
MR. SHILLINGER: We already are.
COMMISSIONER MURPHY: We are.
MR. WRIGHT: Or the --
MAYOR NUGENT: Well, it becomes more clear that
PSC says we're not holding up anything. It's strictly
Monroe County Commission.
MR. SHILLINGER: I don't think Mr. Reynolds has
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ever thought the PSC was holding up anything. He's
always thought it was Monroe County was holding it up.
COMMISSIONER KOLHAGE: Let me ask you this
question. If the PSC rules the other way, and says,
no, we don't. We have no jurisdiction. That's a
County responsibility, County ordinances. You're the
one responsible for -- you know, go fight it out
somewhere else. Does that play into the County
benefit, in the local circuit court and mandamus
action?
MR. SHILLINGER: Yes, because if -- here is the
way the mandamus works. To have a Writ of Mandamus,
you have to have -- the applicant who wants that
permit must have a clear legal duty, or must have
clear legal right to the relief that he's looking for.
The government agency must have a clear legal duty to
provide it.
In other words, there should be no disputes on
the law. And, he must have exhausted all of his
administrative remedies and the government just won't
exercise that duty. It's a complete -- it's a writ
that will compel the government agency to exercise a
ministerial function.
So, if Mr. Reynolds, if he succeeds at the PSC,
and the legal issues are in -- and it's upheld on
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appeal, you know, it's not challenged, and he has an
order from the PSC that says the utility has, you
know, the ability to run the lines and the County does
not have the ability to impose the objections to the
permits. You know, it's just a technical building
code issue. Does it, you know, have enough wires,
enough amperage, whatever the technical building code
issues are.
Then, he would be in a position, a stronger
position to go and get that Writ of Mandamus because
the clear legal duty and the clear legal right issues
would weigh in his favor, assuming he won.
MAYOR NUGENT: Here's my confusion, amongst many.
The other case or the other thing that's involved here
is whether we properly advertised technicality. So --
MR. WRIGHT: That's a separate ordinance.
MAYOR NUGENT: -- this could go away, based upon
this separate --
MR. SHILLINGER: Yes. Yes.
MAYOR NUGENT: -- technical issue.
MR. SHILLINGER: Yes, it could.
MAYOR NUGENT: So, I guess what I'm asking
here --
MR. WRIGHT: We cross that first --
MAYOR NUGENT: -- because of the potential action
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of the Commission, what is our exposure, liability
exposure when we're denying, and the only people that
I know, who -- some who live on CBRS and some who
don't live on CBRS, that we're denying them the right
to hook up. So, what's our liability when somebody
sues us for discrimination?
MR. SHILLINGER: Our -- okay. We're now --
you're going a little far afield of this case, but
I'll try and contain it, and keep this within this
case. The counsel that represents us on those issues
has opined that he sees very, very remote issues, with
respect that would give rise to liability.
MAYOR NUGENT: Okay.
MR. SHILLINGER: Okay.
MAYOR NUGENT: So, no liability because we're --
MR. SHILLINGER: Well, you're exercising a
governmental function. It was adopted in good faith.
MAYOR NUGENT: What is the justification for
doing it though, Bob?
MR. SHILLINGER: In --
MAYOR NUGENT: Denying them the right to hook up
after -- and, clearly, they have the right to run the
electricity out there. So, we're taking a position
that, no we're not going to let you hook up. Why are
we not letting them hook up?
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MR. SHILLINGER: Because you have an ordinance
that says you will not --
MAYOR NUGENT: What is the purpose of the
ordinance? What purpose does it serve?
COMMISSIONER CARRUTHERS: The purpose of the
ordinance was to prevent development out there.
MR. SHILLINGER: Was to manage growth out there.
MAYOR NUGENT: And, now that we have a tier
system in place, now that we discourage, not prohibit,
discourage development, we've done all of those
things.
COMMISSIONER MURPHY: No, we haven't. We're
doing it now.
MAYOR NUGENT: Absolutely.
COMMISSIONER CARRUTHERS: That may be --
MR. SHILLINGER: That's the decision. That's the
policy argument to have when you bring back an
ordinance change.
COMMISSIONER CARRUTHERS: Yes.
MR. SHILLINGER: I mean --
MAYOR NUGENT: Because, what has happened,
through the actions of some, the Planning Commission,
the County Commission, we put in place and set forward
putting something in place that is even stronger than
the Federal and State position of discouraging.
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MR. SHILLINGER: Yes.
MAYOR NUGENT: And you see no liability in doing
something like that?
COMMISSIONER MURPHY: No.
COMMISSIONER CARRUTHERS: It's not the only place
we've done something like that in our code and LDRs
anyway, in our Comp Plan.
COMMISSIONER MURPHY: The LDRs are always --
MAYOR NUGENT: You have to show them to me, I
don't know.
MR. SHILLINGER: Again, the lawyer who is
defending us in that action, and I'm trying to keep
this confined to this discussion, has indicated to me
that he sees no basis for their State damages claim.
And, a remotely weak, very weak Federal claim that
they have. So, he characterizes their -- the strength
of their claim is very remote, and very weak.
MAYOR NUGENT: So, essentially, my interpretation
of what you're telling me is that we can pick and
choose, no matter who, for whatever reason, and deny
people electricity?
COMMISSIONER MURPHY: Oh, George.
MR. SHILLINGER: You're reading much more into
that than what I said.
COMMISSIONER MURPHY: Yes.
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COMMISSIONER KOLHAGE: Mr. Mayor, can I ask
another question?
MAYOR NUGENT: Yes, sir.
COMMISSIONER RICE: Between now and this
estimated June determination that you're talking
about, sir, how many hearings, meetings and so forth
will we have to go to, to get to that point?
MR. WRIGHT: Best estimate -- Mr. Mayor,
Commissioner Kolhage, best estimate is we got an issue
ID meeting tomorrow. There will probably be another
issue ID meeting. And, then, the only other meeting
or formal proceeding, that I think we would
participate in, would be the actual Public Service
Commission agenda conference, which is much like a
County Commission meeting, at which you all vote on
matters pending before you. It would be the agenda
conference on June 18th.
In terms of additional activity, in the meantime,
we would have to make some filings. Our
recommendation, if you decide to go this direction, is
move to dismiss the complaint. And my guess is, I
haven't discussed this with Ms. Brown, staff attorney.
My guess is, PSC would say, "Schef, we want to get
this resolved. You can brief the issue of the
Reynoldses and property owner's standing in the
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briefing that we're going to have in this case, along
with briefing the jurisdictional issues. And this
should be exercised if we have jurisdiction.
I think there would be a Motion to Dismiss, a
Motion to Strike some of their relief, because some of
their relief asks for specific relief against Monroe
County, over whom you may have no jurisdiction. And I
think we have two rounds. So, we have a Motion to
Dismiss, Motion to Strike, probably, at the same time.
Probably, a week from next Monday is when we would
file it. And, then, we would probably have two rounds
of briefing; an initial brief by each side saying,
these are our positions, here's why, and, then, a
reply brief by each side.
COMMISSIONER KOLHAGE: Mr. Shillinger, do you
have any idea how much this is going to cost us?
MR. SHILLINGER: Well, Mr. Wright and his partner
provided us a preliminary budget, that to get to the
point of a hearing would take us between 20,000 and
$30,000. The issue identification and definition was
five to ten. And, then, the briefing and argument,
the PSC was 15 to 20. So, assuming those are stacked,
and those numbers are still where we are in the
ballpark, I add those to being 20 to 30,000.
MR. WRIGHT: And that's to get us through
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June 18th. And I will go further, again. The wild
card here -- I will go further than that. I'll give
you a guarantee hard cap of $30,000, to get us through
June 18th, or through the hearing, on which --
whatever date the PSC says it's going to be.
The wild card is that somebody -- the party
agreed by the -- on concluding after the PSC's
decision, on June 18th, could say, conceivably, you
know, I discussed this now with Mr. Shillinger. Could
say, we want an evidentiary hearing on some issue,
like, should the PSC exercise jurisdiction.
MR. SHILLINGER: Public policy issues, behind it.
MR. WRIGHT: Then, that would be additional
costs, and that's not included here. But, I'll give
you a guarantee, hard cap of $30,000, to get us
through the date on which the PSC votes on the pending
pleadings.
COMMISSIONER KOLHAGE: But, then -- and, then,
they have an opportunity, if it goes the way you think
it's going to go, do they have the opportunity to
appeal a standing order that goes against them?
MR. WRIGHT: Yes, sir.
COMMISSIONER KOLHAGE: And that's the Supreme
Court?
MR. WRIGHT: Yes, sir.
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COMMISSIONER KOLHAGE: So, you're talking about
more lawyers?
MR. SHILLINGER: You're talking about another
25,000.
COMMISSIONER CARRUTHERS: How long would it take
to get to the Supreme Court? We made our Comp Plan
and LDR changes before.
MR. WRIGHT: Mr. Mayor, Commissioners, if your
question is, how long would it take to get done in the
Supreme Court, my best estimate is 10 to 12 months
after the date of the PSC order.
So, if you assume they vote June 18th. The order
comes out the end of July. Probably, sometime June --
May, June, of next year, just because I've got some
experience with it. And that's about how long appeals
to the Supreme Court normally take. I have seen as
short as four months, I have seen as long as two
years.
COMMISSIONER CARRUTHERS: And if -- I mean, if,
in the interim, the Commission decides to adjust and
amend our LDRs to provide utilities in these areas.
MR. WRIGHT: Then the issue becomes moot.
COMMISSIONER CARRUTHERS: Yeah, the issue becomes
moot.
MR. WRIGHT: Right. And, we probably file a
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joint motion to vacate the proceeding of the court and
we would be done.
COMMISSIONER CARRUTHERS: I have just another
question and I'm not sure who can answer this.
Assuming, that, either by court action, or through a
change in our LDRs, we do allow limited utilities in
these areas, how much additional liability does that
place on us, in cases like Galleon Bay? In other
words, does that increase the value of these
properties now, and what's that liability?
MR. SHILLINGER: Yes. It would, potentially,
increase the value, in a damages trial, if there were
utilities available as of the date the utilities were
available. Most of their damages, though, are going
to be based on damages as of the date of the taking,
which is going to be --
COMMISSIONER CARRUTHERS: But that's for Galleon
Bay.
MR. SHILLINGER: -- years before.
COMMISSIONER CARRUTHERS: What about other
potential property
MR. SHILLINGER: Well, here's the problem that
you don't want to do. One, let's cut the baby in half
solution is, allow the people who are currently there
to hook up and impose some sort of regulation that
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would prohibit future people from hooking up. The
next -door neighbor, same CBRS or just outside of CBRS,
line passing through, then you have set up an equal
protection claim. That's what you don't want to do,
is --
COMMISSIONER KOLHAGE: But, how much of that is
already -- how much of it is really developable, see,
because a lot of that is not privately owned anymore.
And my understanding is that very little of what's out
there, is -- what's left out there is developable
anywhere, regardless of the power issue.
MR. SHILLINGER: There are enough lots out there
that people are still competing. You have Galleon Bay
and their 14 lots.
COMMISSIONER KOLHAGE: But there's getting it
through ROGO in that area, is going to be extremely --
take a long --
MAYOR NUGENT: Absolutely --
MR. SHILLINGER: It's not just ROGO. I mean,
actually, Galleon Bay has been racking up ROGO
allocations, because of, demand for tier threes has
fallen off to the point that tier ones have percolated
to the top of the ROGO queue. And, so, Galleon Bay
has been racking up ROGO allocations, as they move
along the process.
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MAYOR NUGENT: Right. That's only taken how many
years, Bob?
MR. SHILLINGER: What I'm saying is, at least at
current market conditions, there is a greater
likelihood that a tier one will get a ROGO, than
it's -- it's -- but it's also, the other complicating
factors, more than the ROGO is the ACP, which limits
the number of allocations that can be given.
COMMISSIONER CARRUTHERS: But that's only on this
island. And there are -- this -- all of these
decisions will have implications elsewhere through the
Keys. Now, isn't this what we're asking Keys Energy,
to bring us this information?
MR. SHILLINGER: Yes.
MAYOR NUGENT: Yes.
COMMISSIONER CARRUTHERS: So, we can't really --
MAYOR NUGENT: This impacts any development
already in existence, in a CBRS area. That's the
issue that we're dealing with on 905.
MR. SHILLINGER: Yes, as long as it's the issue,
with respect to utilities. The difference being,
though, that in a takings case, if the 905 folks have
a house that it has made it through ROGO, it's up.
Their property has not been taken.
MAYOR NUGENT: And did --
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MR. SHILLINGER: Has a use.
MAYOR NUGENT: Right. But we're denying them,
based upon an ordinance that exists, to hook up into a
system. And, again, for me going back to the genesis
of this situation, it was all about the majority, and
the US Fish & Wildlife's position. The development
aspect, for me, has been addressed. We have
discouraged it to the 'nth degree. And what we've
done, through the Planning Commission and action of
the County Commission, and went a step further in the
No Name Key and the CBRS issue, and said, prohibit.
COMMISSIONER MURPHY: Okay. You don't think
we're still discouraging?
MAYOR NUGENT: No. And, again, I know we're not
talking specifics.
MR. SHILLINGER: And that's a legislative policy
decision that you will have on another day. And
that's a discussion -- you know, and that's the
argument.
MAYOR NUGENT: I just can't sit here and
understand how anybody can justify doing it, at this
point in time.
COMMISSIONER RICE: Yeah, but it has nothing to
do with this case.
MAYOR NUGENT: Oh, I think it does.
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COMMISSIONER RICE: The reason why we're here.
MR. SHILLINGER: Right. The reason why you're
here is, do you want us to continue to spend County's
resources in fighting the fight to determine, and get
a clear determination as to where the boundary between
our jurisdiction is, and the PSC's jurisdiction. Do
you want to -- or do you want to let them encroach
onto --
COMMISSIONER MURPHY: That would be very
dangerous.
MAYOR NUGENT: The ordinance is the issue.
COMMISSIONER CARRUTHERS: Not in this case.
COMMISSIONER RICE: No, no.
COMMISSIONER CARRUTHERS: That's not what we're
discussing now.
COMMISSIONER KOLHAGE: Do you think, Bob, and I'm
struggling with this, because I listen to this
attorney say that by June -- first of all, you sound
very convinced that these people don't have standing.
Right?
MR. WRIGHT: Yes, sir. That is my strong
opinion. I can't guarantee you --
COMMISSIONER KOLHAGE: I can't guarantee you.
And I wrote that -- I wrote that from others. So, you
know, in June, this thing may go away. But if it
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doesn't, and they take the case and they rule against
the pro -power people, and they appeal, we're looking
at another year, and another, altogether, 50, $60,000.
Have I stated that --
MR. SHILLINGER: And if you're talking -- if
you're talking about the cost of appealing this to the
Supreme Court, the budget figure was a hard cap of
25,000 now.
COMMISSIONER KOLHAGE: Plus the 30,000 to get us
to June.
MR. SHILLINGER: Right. And, then, also, just in
the interest of full disclosure, understand, you still
have the other litigation that's out there that we're
not talking about today, that we are defending and we
have insurance counsel that we pay at a rate of 155 an
hour. So, there's cost going on there. I don't want
you to think that I'm underselling the cost of --
COMMISSIONER KOLHAGE: The only way that I'm not
willing to go forward with this is if you tell me that
there is a larger issue, that it is important for us
to get a determination on.
MR. SHILLINGER: Okay.
COMMISSIONER KOLHAGE: Because, at the end, if
this goes completely the County's way, through an
appeal, by the end of that term, we may have changed
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this to begin with.
MR. SHILLINGER: Right. And the issue --
COMMISSIONER KOLHAGE: So, what's the point?
MR. SHILLINGER: The point would be, is to
determine, once and for all, to get clear legal
clarity as to where are the limits of the County's
ability to use the provision of utilities to regulate
the hooking up to utilities as a Growth Management
tool.
COMMISSIONER KOLHAGE: And you believe that's
important for us to find that out?
MR. SHILLINGER: That's the policy decision the
board made, our predecessor made.
COMMISSIONER KOLHAGE: I'm asking you, as our
attorney, do you think it's important for us to get
that determination?
MR. SHILLINGER: It's an important decision if
you're going to continue to use that as a basis, as a
Growth Management tool. If --
COMMISSIONER KOLHAGE: Well, we are.
MR. SHILLINGER: If the decision is going to be
made to do something different, then, no.
COMMISSIONER KOLHAGE: Okay. I get you.
MR. SHILLINGER: So, yes, it depends.
COMMISSIONER KOLHAGE: Maybe yes and maybe no.
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COMMISSIONER MURPHY: George.
MAYOR NUGENT: Commissioner Murphy.
COMMISSIONER MURPHY: The attorney would like to
say something.
MAYOR NUGENT: Mr. Attorney.
MR. WRIGHT: Thank you, Mr. Mayor. I just want
to add one thing for your consideration. I understand
everyone's concern about not spending money. If we
get to the decision, on June 18th, and PSC rules in
the County's favor, and if you all, the County
Commission, are going to go forward with consideration
of amending your Comp Plan Ordinance, LDRs, it's a
simple matter to move the Supreme Court to just hold
the appeal in abeyance. And we would -- you wouldn't
have to incur any cost, then, because there wouldn't
be any briefing until the Comp Plan issue ran its
course.
If you amend the Comp Plan, then it goes away.
If you don't amend the Comp Plan, then the Reynoldses
and the Newtons can reinstate their -- the Reynoldses
can reinstate their appeal and we will see what
happens after that.
COMMISSIONER KOLHAGE: Okay. We can do that
unilaterally because the other party doesn't have to
agree to that. Why --
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MR. WRIGHT: The answer to that, technically, is,
no, you can't do it unilaterally. My guess is that
they would be amenable to that for practical purposes.
Obviously, for practical purposes, they get back here
and have -- for two reasons. One --
MR. SHILLINGER: Stay away from --
MR. WRIGHT: -- from you, that they're done. And
the probability of their succeeding on appeal, at the
Florida Supreme Court is, in my opinion, very low.
COMMISSIONER RICE: Let me ask one question.
Make sure I got this clear. The real issue here, if
you peel away all of the BS, is, does the Public
Service Commission have authority over Monroe County's
ordinances, or does Monroe County have that authority?
MR. WRIGHT: Yes, that's it.
MR. SHILLINGER: It's a fair way of stating it.
COMMISSIONER RICE: And, are we wanting to be
definitive in our authority or do we want to be pushed
around and, perhaps, in some ways, give up our
authority? Maybe I should have shut up before I made
the second statement.
COMMISSIONER MURPHY: No.
COMMISSIONER KOLHAGE: No. You said it well --
MR. SHILLINGER: You said you want to defend your
ability? Do you want to, yes, defend your -- what we
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think we would let our commission --
COMMISSIONER RICE: Well, my opinion on authority
is, that's what we're going to defend.
MR. SHILLINGER: Right.
COMMISSIONER MURPHY: Yes.
MR. SHILLINGER: So, the -- yes. I need some
direction from you on this. I mean, obviously, it's
a --
COMMISSIONER MURPHY: What do you want, head
nods?
MR. SHILLINGER: Well, I need some discussion
from the board. We can't take definitive direction,
but if it looks like -- yes, we have to bring it back
in the open session, at -- during the County attorney
report.
COMMISSIONER MURPHY: Okay.
MR. SHILLINGER: And ask for a vote.
COMMISSIONER CARRUTHERS: For a motion to
proceed, at least through June.
MR. SHILLINGER: Proceed, yes.
COMMISSIONER MURPHY: Okay. I'm with you.
MR. SHILLINGER: All right. We'll do that.
Okay. Can we bring that part back, as soon as we come
back in, so Mr. Wright can get on the road, back to
Tallahassee?
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COMMISSIONER MURPHY: Yes.
MR. WRIGHT: Thank you.
COMMISSIONER CARRUTHERS: I'm sorry that you have
to go back to Tallahassee.
MR. WRIGHT: I am too. I would love to stay down
here. Thank you.
MR. SHILLINGER: All right. Is there any further
business to discuss before we close this closed
session?
MAYOR NUGENT: Closed session is closed.
(The attorney/client closed session was concluded at
2:22 p.m.)
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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 llth day of April, 2013.
Patricia A. Zischka
All Keys Reporting — Court Reporters — (305) 289-1201
Locations in Key Largo, Marathon & Key West