News-Press.com

December 10, 2007

Day would like auditor Kessler to return

Mayor Pro Tem Tim Day said he would like auditor Michael Kessler to come back to Cape Coral and conduct further audits.

“We should bring the man back and have him have another look,” Day said.

Kessler produced a controversial report in 2006 on the city’s utility expansion which made claims throughout of possible bid rigging, inflated profit margins among the contractors, lack of cooperation in obtaining information among city staff and contractor Montgomery Watson and Harza, and poor record-keeping by the city.

When Kessler made a presentation to council but left without answering any questions, it infuriated some officials. City Manager Terry Stewart said at the time numerous parts of the report were flawed and contained a great deal of “innuendo and allegations.” Officials at MWH, the contractor firm managing the project, said the report was “inflammatory.”

But critics of the program have said Kessler didn’t go far enough. Resident John Sullivan asked Monday night for further investigation by Kessler.

Day said if Kessler is brought back, he needs access to information that is not redacted.

District 7 Councilman Derrick Donnell said he would like a decision on bringing the auditor back to be made soon.

“It’s like a big cloud on us, and I would like to bring it back at an appropriate time,” Donnell said.

Also related to the utility program, District 3 Councilman Bill Deile said he is having an ordinance drafted to create a citizens’ advisory committee to deal specifically with the utility program.

The council is scheduled for a workshop on the utility expansion on Jan. 14.

7:58 p.m.

Cape Coral council members have nixed a proposal to reduce a bill for the school district by $550,330. The bill regards the purchase of land for Ida S. Baker High School.

In May 2003, the city entered into a contract with the district to sell it 40 acres of land for the construction of Ida S. Baker High School.

The contract was contingent upon the city acquiring replacement property.

However, the city was not able to acquire any portion of the replacement property through voluntary acquisition. The city ultimately acquired a 50-acre property, and provided 40 acres for the high school.

While the district reimbursed the city $8.2 million to assist in the acquisition, the entities have argued over which agency is obligated to pick up the $2.7 million tab in attorney and expert fees.

School District attorneys said only 80 percent of the fees, the percentage of property used to the district, should be paid from their budget. If that proposal had been accepted, the amount the district was required to pay back to the city would have dropped by $550,330.

Mark Lupe, assistant city attorney for Cape Coral, said it appeared both sides understood the 80-20 split to be the understanding during negotiation phases, even though the final contract laid all legal costs on the school district.

District 1 City Councilman Jim Burch said it was fair for the schools to cover all legal costs since the legal fees for condemning the land would be roughly the same whether the city sought a 40-acre parcel or a 50-acre parcel of land.

6:11 p.m. - Check given for re-used water system

The South Florida Water Management District has presented a $6.5 million check to Cape Coral for a grant for the city’s innovative re-used water system.

“It is amazing that 97 percent of the water you use is re-used alternative water supply,” said Charles Dauray, water district director.

“It is people of Cape Coral that have supported this and made a reality for you,” said Cape Coral Mayor Eric Feichthaler.

The praise for the program comes at the same time the city debates the future of its utility program.

It also comes on a night when the council is considering a resolution requesting re-use customers in Cape Coral to be exempt from watering restrictions being considered by the water district.