Commission meeting Feb. 25
(copy of email to Cooper City, City Manager, Bruce Loucks)
On tonight's Agenda is an item, "Frank DiPaolo will
present Finance Director Horacio Montes de Oca with a Certificate of
Achievement for Excellence in Financial Reporting". While I don't know
Mr. Montes de Oca, or even know very much about him, the presentation at this
time of an award for excellence in "Financial Reporting" seems quite
irregular.
During the last Commission meeting, the City Attorney presented his opinion on
whether Resolutions create legally binding obligations. That is, whether
Resolutions can create obligations in the nature of a contractual relationship.
Because the City Attorney confidently advised that Resolutions can bind
parties in the nature of an enforceable contractual relationship, I would think
considerable questions now exist regarding the the nature of the parameters
regarding the CCO-City relationship as set out in the 2003 and 2004
Resolutions. As you are aware, an important part of the 2003 and 2004
Resolutions addressed financial obligations by and between the Optimists and
the City.
On the question of any financial obligations to the City from the Optimists,
prior to Mr. Wolpin's pronouncement it was my belief the Optimists did not
possess anything akin to an enforceable financial obligation in favor of Cooper
City. However, I can only look at the problem as a layman, not as an attorney.
In attempting to incorporate Mr. Wolpin's analysis into the present realities,
I see several problems in a decision to present Mr. Montes de Oca with a "Certificate of Achievement".
(1) No monies were collected by the City from the Optimists from at least
January 1, 2007 through around August of 2012. If the 2003 and 2004 Resolutions
represent enforceable agreements, the time period just given would result in unpaid
fees aggregating as much as (approx.) $250,000 due to the City;
(2) I have been advised by Mr. Montes de Oca, through you and Ms. Poling, the
City is unable to account (i.e., provide information) for the receipt of any
fees from the CCO prior to January 1, 2007. I have asked for clarification on
this issue, but received none. The bottom line appears to be that precisely when
the CCO stopped paying nonresident fees over to the City is an open question.
Because when the CCO ceased making payments contemplated under the 2003 and
2004 Resolutions is unknown, the amount of unpaid nonresident fees may be
greater than $250,000;
(3) Despite the existence of the 2003 and 2004 Resolutions, public
records indicate no attempt by the City to ever enforce the payments
contemplated in the 2003 and 2004 Resolutions. Public Records produced no
invoices, demand letters, letters requesting payments, relevant emails, etc.
from the City to the Optimists. In addition, Public Records indicate that no
special account into which nonresident fees were deposited exists, or existed,
even though such an account was contemplated by the 2003 and 2004 Resolutions;
(4) Despite the legal opinion presented by the City Attorney, aside from the
Resolutions there is nothing in the Public Records evincing any intent on the
part of the City to enforce the obligation of the Optimists to pay to the City
all nonresident fees collected from participants in CCO leagues.
I am not entirely sure what to make of the above. Particularly in light of the
City Attorney suggesting the possibility the 2003 and 2004 Resolutions could
represent an enforceable legal obligation. Setting aside any legal analysis
best left to qualified counsel, the facts so far discovered via Public Record
Requests suggest financial mismanagement on the part of the City. A deal was
worked out with the Optimists for nonresident fees to be paid over to the City.
For obvious reasons, this is what one would anticipate happening to the
nonresident fees. Does anyone doubt that nonresidents paying the extra money
all believed the extra amount would flow to the City to assist in deferring the
expense of City taxpayers maintaining facilities for use by nonresidents? For
what other purpose would a nonresident fee be imposed?
I have assiduously sought out the reason(s) why and when payment to the City of
nonresident fees ceased. No answers have been provided. Until there is a clear
explanation by the City regarding nonresident fees does the Commission actually
believe a, Certificate of Achievement for Excellence in Financial Reporting should
be presented to Mr. Montes de Oca? The situation is so bizarre and provocative
it adds to my suspicion that in order to deflect attention from any allegations
of financial mismanagement, the City is prepared to accuse the Optimists of
failing to make payments pursuant to an enforceable legal obligation (i.e., the
2003/2004 Resolutions).
The basic, underlying fact set forth herein about nonresident fees not
paid/collected is not in dispute. Frankly, with the open questions associated
with what happened, or should have happened regarding the nonresident fees,
this Commission presiding over this type of ceremony at this time gives off an
odor of possible corruption. Until the outstanding financial questions are truthfully
and credibly answered, the planned Certificate of Achievement should be
delayed. In my opinion, the provocative nature of the ceremony's timing will
otherwise work to frame certain questions about the character, judgment and
motivations of yourself, members of the Commission, and the Commission's
various fellow travelers.
Skip Klauber