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HomeMy WebLinkAboutItem #01 Approval of Minutes MINUTES SPECIAL MEETING CLOSED ATTORNEY- CLIENT SESSION January 18, 2011, at 5:30 p.m. A. CALL TO ORDER Mayor Vandergrift called the Special Meeting to order at 5:43 p.m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and declared a quorum present. Roll Call: Commissioner Hood, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson (arrived at 5:52 p.m.) and Commissioner Keller Also Present: City Attorney Rosenthal, City Manager Frank, Litigation Attorney John Hamilton, City Clerk Eikenberry B. CITY ATTORNEY COMMENTS City Attorney Rosenthal stated that City brought an action against Cypress Colony, Inc. to foreclose a code enforcement lien associated with certain property owned by Cypress Colony in the southwest quadrant of SR 50 and Maguire Road. The case was filed in the Circuit Court for the Ninth Judicial Circuit of Orange County under Case No. 2006 -CA -3489. The case was filed in 2006 and has been stayed by mutual agreement of the City and Cypress Colony. The Court has ordered that the parties mediate the case and a mediation session has been scheduled for January 26, 2011. As required by Section 286.011(8), Florida Statutes, I am advising the City Commission that I desire to have advice concerning this litigation and to discuss with the City Commission, in a closed session, matters related to the settlement negotiations and strategy related to litigation expenses. Florida Statutes provide a limited exception from the Sunshine Law for the City's attorneys to meet in private with the City Commission to discuss pending litigation to which the City is a party. As required by Florida law, reasonable notice of the closed session has been given which identifies the time and date of the closed attorney - client session and the names of the persons who will be attending. The entire session will be recorded by a certified court reporter and no portion of the session may be off the record. The court reporter's notes will be fully transcribed and filed with the City Clerk. At the conclusion of the litigation, the transcript of the meeting will become a public record. It is not permissible to leave the meeting to consult with other persons regarding the subject matter of the meeting. Following the conclusion of the closed session, it will be necessary to meet in public in order to adjourn the meeting. The agenda has been structured so as to allow for public action by the City Commission should such action be necessary following the closed session. January 18, 2011 Special Session — Closed Session C. ANNOUNCEMENT BY MAYOR VANDERGRIFT Announcement of the Attorney - Client Session, persons in attendance, and estimated time of session. Announcement that meeting will reopen at the conclusion of the Attorney - Client Session Mayor Vandergrift announced that the City Attorney has requested a closed session with the City Commission to discuss settlement negotiations and strategy related to litigation expenses in the case described by the City Attorney. The persons who will be attending the closed session are Mayor Vandergrift, Commissioner Hood, Commissioner Wilsen, Commissioner Johnson, Commissioner Keller, City Manager Rob Frank, City Attorney Paul Rosenthal, Litigation Attorney John Hamilton, and no others. It is estimated that the closed attorney - client session will last forty -five minutes. Following the conclusion of the attorney - client session, the meeting will be reopened in order to announce the termination of the closed session and take such other action as the City Commission may deem appropriate. The City Commission will now move into closed session. Commissioner Johnson arrived. D. MOVE TO CLOSED SESSION IN CONFERENCE ROOM Attendees: Mayor Vandergrift, Commissioner Hood, Commissioner Johnson, Commissioner Keller, Commissioner Wilsen, City Manager Frank, City Attorney Rosenthal, Special Counsel Solik, the Court Reporter, and no others. The closed session took place between 5:52 p.m. — 6:51 p.m. in the City Manager's Conference Room. Transcript attached. E. RETURN TO COMMISSION CHAMBERS AND REOPEN SPECIAL MEETING. Announce the time of the termination of the closed session. Comments or proposed action from the City Commission Mayor Vandergrift announced the reopening of the Special Meeting of the City Commission and announced that the closed attorney - client session has been terminated. The time is 6:52 p.m. He asked if there were any comments from the members of the City Commission or any proposed actions. There was no response. F. ADJOURNMENT The meeting was adjourned at 6:52 p.m. APPROVED: Attest: City of Ocoee Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor Attachments Meeting Notice Transcript of Closed Session (to be attached once pending litigation is complete) NOTICE THE OCOEE CITY COMMISSION WILL MEET IN SPECIAL SESSION FOR AN ATTORNEY- CLIENT MEETING TO DISCUSS SETTLEMENT NEGOTIATIONS AND STRATEGY RELATED TO LITIGATION EXPENSES RELATED TO THE PENDING LITIGATION [CITY OF OCOEE v. CYPRESS COLONY, INC. AND ACCESS PATROL SECURITY, INC., ORANGE COUNTY CIRCUIT COURT CASE NO. 2006 -CA -3489] ON JANUARY 18, 2011 AT 5:45 P.M. IN THE CITY COMMISSION CHAMBERS AND CITY MANAGER'S CONFERENCE ROOM IN ACCORDANCE WITH FLORIDA STATUTES SECTION 286.011(8). PRESENT WILL BE MAYOR VANDERGRIFT, COMMISSIONER HOOD, COMMISSIONER WILSEN, COMMISSIONER JOHNSON, COMMISSIONER KELLER CITY ATTORNEY ROSENTHAL, CITY MANAGER FRANK, LITIGATION ATTORNEY HAMILTON, THE COURT REPORTER AND NO OTHERS. THE SESSION WILL COMMENCE AT AN OPEN MEETING. AT THE CONCLUSION OF THE ATTORNEY - CLIENT SESSION, THE PUBLIC MEETING WILL BE REOPENED. ORLA_1676602.1 006.319324.1 MINUTES OCOEE CITY COMMISSION FEBRUARY 1, 2011, at 6:00 P.M. 6:00 P.M. STATE OF THE CITY REPORT 7:15 P.M. REGULAR CITY COMMISSION MEETING A. CALL TO ORDER Mayor Vandergrift called the regular session to order at 7:15 p.m. in the Commission Chambers of City Hall. Commissioner Keller gave the invocation, followed by the Pledge of Allegiance to the Flag, led by Commissioner Johnson. City Clerk Eikenberry called roll and declared a quorum present. Roll Call: Commissioner Hood, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson and Commissioner Keller. Also Present: City Attorney Rosenthal, City Manager Frank, City Clerk Eikenberry B. PRESENTATIONS AND PROCLAMATIONS Proclamation — Black History Month — February 2011. (Mayor Vandergrift) HRDB Chairman Maxwell briefly spoke about the creation of the Human Relations Board and the events they have had the pleasure of starting such as the Unity Parade and Fiesta de Colores. He further spoke on the upcoming Black History Essay contest and encouraged parents to speak with their children and help educate them on where they came from. C. COMMENTS FROM CITIZENS /PUBLIC Theresa Lemons with Ocoee Women's Club announced that on Saturday, February 19 at 10:00 a.m. the Women's Club will be out sprucing up the cemetery and they are inviting any civic group or residents who would like to volunteer to please meet them out there. Steven VanVarick with Ocoee Lions Club presented a check in the amount of $125 to Commissioner Wilsen to go towards the Spring Fling Event. Commissioner Wilsen thanked Mr. VanVarick and announced that the Spring Fling will be held the last Saturday in March at Bill Breeze Park. D. STAFF REPORTS AND AGENDA REVIEW City Manager Frank made the following announcements: 1) The Police Department will be having the following classes: > S.A.F.E. for Women — a free self defense and safety awareness class using the National Self Defense Institutes S.A.F.E. curriculum. Classes are from 9:OOam to 12:00 p.m. at the Ocoee Police Department. Limited to women only. • Handgun Safety Class — a free handgun safety class taught by Ocoee Police Officers from 8:OOam to 1:OOpm at City Hall. Topics include terminology, safety, loading, and unloading, shooting basics, laws, use of force, concealed weapon permits, and proficiency. > Citizens Police Academy — this is an eight weeks program (32 hours). Classes will meet on eight straight evenings starting on February 23, 2011, from 6:OOpm to 9:00 pm in the City Commission Chambers. This academy is taught by Ocoee Police Officers or industry City Commission Regular February 1, 2011 experts, funded by donations and free to residents. Topics include department overview, station tour, police equipment, US Constitution, laws and crimes, domestic violence, traffic enforcement, evidence, fingerprints, use of force, defensive tactics, firearm laws & safety, crime prevention, firearm demonstration and participants are eligible for one ride along with an officer on normal patrol. 2) The next Movie in the Park will be held on Saturday, February 26 at Bill Breeze Park. The movie is "Shrek Forever After ". The film will start at 6:45pm and the lawn area opens at 5:45pm. Admission is free, so bring your lawn chair or blanket. 3) Construction has been completed and the lighting has been installed at the new Tiger Minor Park basketball court, which is now open for use. They are waiting for Progress Energy to connect this new service point to the power line; it may take a few weeks, as they have just received the work authorization form from Progress Energy today. 4) The Utilities Department put on a Water Conservation Rain Barrel Workshop on Saturday, January 29 There were 35 residents in attendance so he would like to thank Utility Department for their great effort. E. COMMISSIONERS ANNOUNCEMENTS Commissioner Keller — announced that Glad Tidings Super Bowl Block Party will be this Sunday, February 6 on McKey Street from 2pm to 1 1pm. He would like to remind residents that the street will be closed for this event. Commissioner Johnson - None Commissioner Wilsen — 1) announced that on February 19 will be the 911 Anniversary Flag Program at the Community Center from 1pm to 5 pm. If there is anyone would like to nominate a hero to stitch the flag they can go to the City's website which will direct them to the 911 Anniversary Flag website. 2) thanked the Lion's Club for their donation to the Spring Fling. The event will be on Saturday, March 26 and the Spring Fling Board is looking for programs who would like to participant in the event. Commissioner Hood — None Mayor Vandergrift — 1) announced on February 14 he will be performing marriage ceremonies outside at the gazebo. He currently has one couple signed up. 2) thanked the Commission for helping deliver the State of the City Address. F. CONSENT AGENDA Commissioner Wilsen, seconded by Commissioner Hood, moved to approve the Consent Agenda Item #1 through #3. Motion carried 5 -0. Page 2 of 6 City Commission Regular February 1, 2011 1. Approval of Minutes for Regular Commission Meeting Held January 18, 2011. (City Clerk Eikenberry) Approved on Consent. Motion carried 5 - 0. 2. Appointment to the Citizens Advisory Council of the Ocoee Fire Department (CACOFD) (City Clerk Eikenberry) The Citizen Advisory Council for the Ocoee Fire Department (CACOFD) was created to promote and maintain communication, cooperation and a positive relationship between the City of Ocoee's citizens, City Commission and Fire Department. The board shall consist of no less than 15 members, no more than 25 members. They will serve three (3) year terms and membership is open to Ocoee residents, owners of real property in Ocoee, or owners of businesses located in Ocoee - per the CACOFD By -Laws. One (1) application was received by Ocoee resident James Spears, who has indicated and interest in serving on the CACOFD Board. Approved on Consent. Motion carried 5 -0. 3. Approval of Execution of Contract with the City of Ocoee and James Carnicella. (City Manager Frank) As a result of a reorganization of the Human Resources/Risk Management Department, the City Manager recommends executing a contract with James Carnicella to provide Risk Management services on a contract basis for $64,900 per year. Mr. Carnicella would step down as Human Resources Director and assume the position of contract Risk Manager in the department. The City Manager has identified one position to eliminate within the City Manager's office to fund this change; therefore execution of this contract will not have an impact on the FY 10 /11 Budget. Approved on Consent. Motion carried 5 -0. G. PUBLIC HEARINGS - None H. REGULAR AGENDA Commissioner Wilsen asked to move item #6 up on the agenda. 4. Appointments to the Planning & Zoning Commission. ' (City Clerk Eikenberry) On February 9, 1999, Ordinance No. 99 -09, was adopted requiring nine (9) members that must be City residents for the Planning and Zoning Commission. There are currently eight (8) members on the board. The terms of Members Bradley Campbell, Teska Dillard, James Golden, Robert McKey and Milton West have expired, and they each have indicated an interest in being considered for reappointment. Additionally, due to the resignation of Nathan Conkling there is one (1) open seat for this board. Currently, two (2) applications are on file from Ocoee Residents Glenda Dunn and Michael Hopper who have both indicated their interest in being a member of the Planning & Zoning Commission. City Clerk Eikenberry stated this item is for five reappointments and to fill one position that was vacated by a resigning board member. The two applications on file were submitted for the Commission's consideration. Commissioner Johnson stated he would like to pull this item because he has a resident in his district that is interested. He briefly stated he feels his district is not being represented. Commissioner Johnson stated he would like to appoint Lloyd Hollingsworth to the board for his district. Mayor Vandergrift inquired if there was an application on file for him. Commissioner Johnson stated he has the application but forgot to bring it. Page 3 of 6 City Commission Regular February 1, 2011 Mayor Vandergrift inquired as to what Mr. Hollingsworth qualifications were. Commissioner Wilsen inquired if they should just table this item until they receive his application. Commissioner Johnson felt that was not necessary. He further stated that Mr. Hollingsworth is a sales person with construction knowledge. Commissioner Wilsen inquired if there were any term limits for these boards. Mayor Vandergrift stated they have 3 year term limits but may be reappointed every time their terms are up. Commissioner Johnson, seconded by Commissioner Hood, moved to appoint Lloyd Hollingsworth to the Planning & Zoning Commission. Commissioner Hood stated he agrees that this is a board that should have district balanced. It is nice to have representation from all the districts. Mayor Vandergrift inquired if they have the stipulations of what should be on the board. He further stated he is aware of one of the boards requiring an engineer, and architect, and so forth. City Attorney Rosenthal read the membership requirement from the LDC which currently stipulates that when selecting members for the Planning & Zoning Commission, the City Commission shall attempt to select person from different geographical areas within the City so as to create geographical diversity and representation. After discussion, motion carried 5 -0. Commissioner Keller, seconded by Commissioner Hood, moved to approve the reappointment of the terms of the five members whose terms expired. Motion carried 5 -0. 5. Approval of Most Valuable Partnership Grants. (Community Relations Manager Wright) Seven applications were received for this year's cycle. The total amount of grant monies requested is $13,500. There is $ 10,000 funded for this year's MVP grant program. The following are the 7 applicants: Admiral Pointe Homeowner's Association: Richfield Community; Rotary Club of Ocoee; Silver Glenn Homeowner's Association; Sleepy Harbour Homeowner's Association; Villages of West Oaks and Woman's Club of Ocoee. Four organizations were recommended to receive grants totaling an amount of $6,615. Three organizations did not receive a recommendation for grant funding: Admiral Pointe HOA, Rotary Club of Ocoee and Woman's Club of Ocoee. Staff is requesting the City Commission discuss and make a decision. Community Relation Manager Wright briefed them on the grants the MVP Committee approved and stated there were four organizations were recommended for the grants totaling $6615; there are three additional organizations that are requesting grants for scholarships and items that may not fit the criteria of the grant. The Committee asked that the Commission review those three and make recommendations. There was some discussion about the grant criteria. Commissioner Wilsen, seconded by Commissioner Hood, moved to approve the MVP grant for the four applicants as recommended by the MVP Committee: Richfield Community; Silver Glenn Homeowner's Association; Sleepy Harbour Homeowner's Association; and Villages of West Oaks. Motion carried 5 -0. Commissioner Hood asked if there were representatives from any of these organizations. Page 4 of 6 City Commission Regular February 1, 2011 Commissioner Wilsen said she looked at the application for Admiral's Point and felt that it meets the criteria for MVP grant of improving the neighborhood since they are putting in security cameras. Eddie Quinn, with Admiral Point HOA stated they have had car burglaries etc. in their neighborhood and they have worked with police regarding providing better security in the neighborhood. The system will have a back up tape that can be used by the police. Commissioner Wilsen, seconded by Commissioner Johnson, moved to approve the MVP qrant for Admirals Pointe Homeowner's Association in the amount of $2000. Motion carried 5 -0. Teresa Lemons, of the Women's Club explained that they are giving Westside Tech Scholarships for displaced housewives to reenter the workforce; she has asked Westside Tech to earmark the money for ladies from Ocoee; at this time they have five Ocoee candidates for the grant. Maria Ramaran of the Ocoee Rotary Club stated the funding is to assist offering grants for graduating Ocoee High School students to offset college expenses. She stated she has a list of students who received the scholarship in the past and there are about 65% who live in Ocoee and the reminder live in Winter Garden, Apopka, and the surrounding areas. She stated they cannot earmark the funds specifically for Ocoee residents. Commissioner Johnson and Commissioner Keller noted that kids in their districts attend West Orange High School and Wekiva High School and this grant only benefits Ocoee High School. Commissioner Johnson, seconded by Commissioner Hood, moved to approve the remainder of the $10,000 budgeted amount ($1385) be split equally between the Rotary Club and Women's Club of Ocoee for an amount of $692.50 each. Motion carried 5 -0. 6. Consideration of Rose Hill Phase 2 &3 — Existing Fence Issue. (City Planner Rumer) Rose Hill Phases II and III is a single - family residential subdivision annexed into the City in September of 2009. Recently, a resident of Rose Hill Phase II applied for a fence permit for a replacement fence on a corner lot. Upon review and inspection, City staff found the applicant's fence and similar fences on corner lots in Phase II and III do not meet the City's or County's fence setback requirements. Further research found that Orange County's permit process for fences did not provide for a follow -up inspection of the fence to identify the final location. As a result, many fences on corner lots were placed out of compliance with Orange County setbacks and the approved Orange County fence permit. Many of the permits that City staff reviewed were approved and constructed in the 1990's. Staff did further research and found that no variances for fences were granted by Orange County and at the time of annexation; there were no active code enforcement cases related to fences. Currently, a resident can apply for a variance to the required fence setbacks. Given the current economic conditions and relative infancy of the City's relationship with Rose Hill and their 244 homes, the Planning Department is proposing a policy to provide relief for residents from going through the variance process that could have an adverse affect by setting a trend that could carry to new fences on corner lots. City Planner Rumer stated a handout was provided explaining the grandfathering of fences as written in the Land Development Code. He further stated that staff is recommending that the Mayor and Commission support a policy grandfathering in the existing fences in the Rose Hill Subdivision. Rose Hill Subdivision was annexed in September of 2009. The current policy allows that fences constructed in the City of Ocoee as of January 2000 to be considered grandfathered and they can be replaced with a building permit in their current location. They are seeking to add Rose Hill with an effective date of November 2010 to be offered that same option and as they update the LDC they will include this policy in that section. Page 5 of 6 City Commission Regular February 1, 2011 Mayor Vandergrift, Seconded by Commissioner Wilsen, moved to approve the policy grandfatherinq in the existing fences in the Rose Hill Subdivision as presented by staff. Motion carried 5 -0. I. STAFF ACTION ITEMS - none J. COMMENTS FROM COMMISSIONERS Commissioner Hood — had no comments Commissioner Wilsen — reminded everyone to come out to the Ocoee Farmer's Market on Friday's between 4:00 p.m. and 8:00 p.m., shop for home grown foods and talk to your neighbors. Commissioner Johnson stated that the "Welcome to Ocoee" sign on Orlando Avenue is in disrepair and has been that way for over a month. He feels police and other employees who drive around the city should report these things. Commissioner Hood added there is a pothole at Adair St. and Sorenson Lane that should have been reported as well. He added that we have a system in place that is supposed to allow employees to electronically document and report these things. Public Works Director Krug stated, with regard to the "Welcome to Ocoee" signs, that they are looking into putting in some new signage because the existing one is not repairable. If the Orange County Road deal goes through there will be a new sign that will be moved closer to Rose Hill. He added we have been looking at new signage for city entryways that are nicer and more durable. Commissioner Johnson said we have also discussed the need for one on Franklin Street coming in from the West. City Manager Frank stated that entrance signs were part of the Wish List at budget time that may have been on the chopping block; he stated we will look at the signage and funding issues and advise further. Commissioner Keller — none Mayor Vandergrift - none ADJOURNMENT The meeting adjourned at 7:50 p.m. APPROVED: Attest: City of Ocoee Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor Page 6 of 6 MINUTES SPECIAL MEETING CLOSED ATTORNEY- CLIENT SESSION February 1, 2011, at 8:30 p.m. A. CALL TO ORDER Mayor Vandergrift called the Special Meeting to order at 8:01 p .m. in the Commission Chambers of City Hall. City Clerk Eikenberry called roll and declared a quorum present. Roll Call: Commissioner Hood, Commissioner Wilsen, Mayor Vandergrift, Commissioner Johnson (arrived at 5:52 p.m.) and Commissioner Keller Also Present: City Attorney Rosenthal, City Manager Frank, Litigation Attorney John Hamilton, City Clerk Eikenberry B. CITY ATTORNEY COMMENTS City Attorney Rosenthal stated that City brought an action against Cypress Colony, Inc. to foreclose a code enforcement lien associated with certain property owned by Cypress Colony in the southwest quadrant of SR 50 and Maguire Road. The case was filed in the Circuit Court for the Ninth Judicial Circuit of Orange County under Case No. 2006 -CA -3489. The case was filed in 2006 and has been stayed by mutual agreement of the City and Cypress Colony. The Court has ordered that the parties mediate the case and a mediation session has been scheduled for January 26, 2011. As required by Section 286.011(8), Florida Statutes, I am advising the City Commission that I desire to have advice concerning this litigation and to discuss with the City Commission, in a closed session, matters related to the settlement negotiations and strategy related to litigation expenses. Attorney Rosenthal further stated that Florida Statutes provide a limited exception from the Sunshine Law for the City's attorneys to meet in private with the City Commission to discuss pending litigation to which the City is a party. As required by Florida law, reasonable notice of the closed session has been given which identifies the time and date of the closed attorney - client session and the names of the persons who will be attending. The entire session will be recorded by a certified court reporter and no portion of the session may be off the record. The court reporter's notes will be fully transcribed and filed with the City Clerk. At the conclusion of the litigation, the transcript of the meeting will become a public record. It is not permissible to leave the meeting to consult with other persons regarding the subject matter of the meeting. Following the conclusion of the closed session, it will be necessary to meet in public in order to adjourn the meeting. The agenda has been structured so as to allow for public action by the City Commission should such action be necessary following the closed session. February 1, 2011 Special Session — Closed Session C. ANNOUNCEMENT BY MAYOR VANDERGRIFT Announcement of the Attorney - Client Session, persons in attendance, and estimated time of session. Announcement that meeting will reopen at the conclusion of the Attorney - Client Session Mayor Vandergrift stated that the City Attorney has requested a closed session with the City Commission to discuss settlement negotiations and strategy related to litigation expenses in the case described by the City Attorney. The persons who will be attending the closed session are Mayor Vandergrift, Commissioner Hood, Commissioner Wilsen, Commissioner Johnson, Commissioner Keller, City Manager Rob Frank, City Attorney Paul Rosenthal, Litigation Attorney John Hamilton, and no others. It is estimated that the closed attorney - client session will last forty -five minutes. Following the conclusion of the attorney- client session, the meeting will be reopened in order to announce the termination of the closed session and take such other action as the City Commission may deem appropriate. The City Commission will now move into closed session. D. MOVE TO CLOSED SESSION IN CONFERENCE ROOM Attendees: Mayor Vandergrift, Commissioner Hood, Commissioner Johnson, Commissioner Keller, Commissioner Wilsen, City Manager Frank, City Attorney Rosenthal, Special Counsel Solik, the Court Reporter, and no others. The closed session took place between 8:05 p.m. — 8:51 p.m. in the City Manager's Conference Room. Transcript attached. E. RETURN TO COMMISSION CHAMBERS AND REOPEN SPECIAL MEETING. Announce the time of the termination of the closed session. Comments or proposed action from the City Commission Mayor Vandergrift announced the reopening of the Special Meeting of the City Commission and announced that the closed attorney - client session has been terminated. The time is 8:51 p.m. He asked if there were any comments from the members of the City Commission or any proposed actions. City Attorney Rosenthal stated the Settlement Term Sheet based upon the mediation session; essentially the Settlement Term Sheet has Cypress Colony giving the City information about the underlying debt on the property. Assuming that underlying debt is in excess of $5,000,000 provides a course of action whereby cypress colony at their expense would take certain efforts to clean up the title to the property. Staff recommendation is that the City Commission approves the Settlement Term Sheet and Execute a Settlement Agreement. Commissioner Wilsen, seconded by Commissioner Keller, moved to approve the Settlement Term Sheet and authorize execution thereof by the Mayor and City Clerk and further authorize the Mayor and City Clerk to execute a Settlement Agreement consistent with the Settlement Term Sheet. Motion carried 3 -2, with Mayor Vandergrift and Commissioner Johnson opposed. February 1, 2011 Special Session — Closed Session F. ADJOURNMENT The meeting was adjourned at 6:52 p.m. APPROVED: Attest: City of Ocoee Beth Eikenberry, City Clerk S. Scott Vandergrift, Mayor Attachments Meeting Notice Settlement Term Sheet Transcript of closed session (to be attached once pending litigation is complete) NOTICE THE OCOEE CITY COMMISSION WILL MEET IN SPECIAL SESSION FOR AN ATTORNEY- CLIENT MEETING TO DISCUSS SETTLEMENT NEGOTIATIONS AND STRATEGY RELATED TO LITIGATION EXPENSES RELATED TO THE PENDING LITIGATION CITY OF OCOEE v. CYPRESS COLONY, INC. AND ACCESS PATROL SECURITY, INC., ORANGE COUNTY CIRCUIT COURT CASE NO. 2006-CA-3489] ON FEBRUARY 1, 2011 IMMEDIATELY FOLLOWING THE REGULAR MEETING OF THE CITY COMMISSION. IT IS ANTICIPATED THAT THE SPECIAL MEETING WILL BEGIN AT 8:30 PM. THE MEETING WILL TAKE PLACE IN THE CITY COMMISSION CHAMBERS AND CITY MANAGER'S CONFERENCE ROOM IN ACCORDANCE WITH FLORIDA STATUTES SECTION 286.011(8). PRESENT WILL BE MAYOR VANDERGRIFT, COMMISSIONER HOOD, COMMISSIONER WILSEN, COMMISSIONER JOHNSON, COMMISSIONER KELLER CITY ATTORNEY ROSENTHAL, CITY MANAGER FRANK, LITIGATION ATTORNEY HAMILTON, THE COURT REPORTER AND NO OTHERS. THE SESSION WILL COMMENCE AT AN OPEN MEETING. AT THE CONCLUSION OF THE ATTORNEY- CLIENT SESSION, THE PUBLIC MEETING WILL BE REOPENED. ORLA_1685248.1 006.319324.1 SETTLEMENT TERM SHEET Re: Proposed Settlement of City of Ocoee v. Cypress Colony, Inc, et al., Case No. 2006 -CA -3489, pending in the Circuit Court of the Ninth Judicial Circuit, in and for Orange County, Florida The parties, City of Ocoee (the "City "), and Cypress Colony, Inc. ( "Cypress Colony ") agree as follows: 1. Within 30 days of Wednesday, January 26, 2011 (i.e., on or before Friday, February 25, 2011), Cypress Colony shall provide to the City a written statement or statements setting forth the following information with respect to each mortgagee on the Property that was recorded prior to the recording of the City's liens that are the subject of this action (the "City's Action "): a. The identity of the current holder of each mortgage; b. The amount of the outstanding principal balance on each mortgage; c. The total amount of accrued interest and unpaid interest on each mortgage; and d. The current interest rate and per diem amount for each note secured by each mortgage. 2. In the event the statements required by paragraph 1 reflect a total minimum amount of $5,000,000 of encumbering debt on the Property superior to the City's liens that are the subject of the City's Action, then the following shall be the terms of the parties' settlement agreement: a. Within 30 days after the execution of a formal settlement agreement among the parties, Cypress Colony shall seek approval from the court presiding over the receivership proceeding concerning Colony Plaza Condominium Association, Inc. (the "Association ") for the commencement of an action to extinguish any easement or easements running in favor of the Association, any owners of timeshare units, any owners of condominium units, and all other parties necessary to completely extinguish all interests in the subject easement or easements. b. Within 30 days after obtaining the court approval referenced in the preceding paragraph, Cypress Colony shall commence the lawsuit referenced in the preceding paragraph (the "Easement Action "). c. Cypress Colony shall diligently prosecute the Easement Action to final conclusion. ORLA_1686108.1 d. After the conclusion of the Easement Action, Cypress Colony shall cause to be commenced an action (the "Foreclosure Action ") by the holder of the first - priority mortgage on the Property (and, if necessary, any other mortgages superior to the liens that are the subject of the City's Action) against all persons and entities who have or claim to have any interest in the Property. The Foreclosure Action shall be for the purpose of causing the foreclosure of the first - priority mortgagee's mortgage and, except as provided below, shall foreclose the interests (if any) in the Property of all other persons and entities that have or claim to have an interest in the Property. With respect to the Foreclosure Action, the parties agree as follows: (1) The City agrees not to contest the Foreclosure Action; (2) The City agrees not to allege, assert, or otherwise contend in the Foreclosure Action that the liens that are the subject of the City's Action are superior in priority to the mortgage that will be the subject of the Foreclosure Action; and (3) Cypress Colony agrees that the Foreclosure Action shall not include, encompass, extend to, or otherwise concern the Demolition Lien that the City holds against the Property for the demolition of the structures that were formerly present on the Property (structures that were once commonly referred to collectively as "Colony Plaza "), and Cypress Colony further agrees that title to the Property resulting from the Foreclosure Action will be subject to the Demolition Lien. e. After the conclusion of the Easement Action and the Foreclosure Action, Cypress Colony shall obtain a title policy showing title to the Property vested in Cypress Colony, Inc. or its successor in title at the foreclosure sale —free and clear of the easements extinguished in the Easement Action. 3. In the event the statements required by paragraph 1 reflect a total minimum amount of less than $5,000,000 of encumbering debt on the Property superior to the City's liens that are the subject of the City's Action, then paragraph 2 is of no effect and the parties shall reconvene the mediation that was ordered by the court presiding over the City's Lawsuit. 4. Once the final settlement agreement between the parties is executed, Cypress Colony and the City agree that they will jointly move, in the City's Action, for the entry of an order abating that action pending the conclusion of the Easement Action, the conclusion of the Foreclosure Action, and the judicial sale of the Property following the conclusion of the Foreclosure Action. In the event that the court presiding over the City's Action denies the parties' joint motion for the ORLA_1686108.1 2 abatement of that action or otherwise refuses to abate or stay that action for the time periods referenced in this paragraph, then the parties shall file, in the City's Action, a joint stipulation for the dismissal of that action without prejudice, with all parties bearing their own costs, expenses, and attorneys' fees incurred in that action. 5. In the event that the City's Lawsuit is dismissed without prejudice pursuant to the preceding paragraph, then the City reserves the right to recommence or refile the City's Action if Cypress Colony fails to perform its duties under the parties' settlement agreement or if either the Easement Action or the Foreclosure Action does not result in a judgment in favor of the respective plaintiffs in those actions. In the event that the City recommences or refiles the City's Action, then: a. Cypress Colony agrees not to seek the recovery from the City of any costs or attorneys' fees that Cypress Colony has incurred in the City's Action that is currently pending; b. Cypress Colony waives any defense based on laches or any statute of limitations and agrees not to assert any defenses of that nature in the City's Action as recommenced or refiled; and c. The parties agree that the City's Action as recommenced or refiled shall, to the extent legally, jurisdictionally, and procedurally possible, proceed upon pleadings and pending motions that are substantially identical to their respective pleadings and pending motions in the City's Action currently pending. 6. This term sheet is to be superseded by a formal written Settlement Agreement that substantially incorporates the terms of this Term Sheet. The parties will use their best efforts to finalize that Settlement Agreement within 30 days after the effective date of this Term Sheet. The formal Settlement Agreement will be effective only after the Settlement Agreement is executed by all of the parties. CITY OF OCOEE, FLORIDA CYPRESS COLONY, INC. By: _ - a . By: S. Scott Vandergrift, Ma or Its: Date: ATTEST: , Beth Eikenberry, City Clerk di (SEAL) ORLA_1686108.1 3 FOR USE AND RELIANCE ONLY BY APPROVED BY THE OCOEE CITY THE CITY OF OCOEE, FLORIDA; COMMISSION AT A SPECIAL APPROVED AS TO FORM AND MEETING HELD ON February 1, 2011 LEGALITY this 1 day of February, 2011. Foley & Lardner LLP By: qd5- City Attorney ORLA_1686108.1 4