by Mike Sharkey
Staff Writer
The City Council Finance Committee Monday approved $400,000 for legal fees to help pay for a lawsuit by the City against Seminole County and the St. Johns River Water Management District. The legislation now goes to the full Council for approval, but only after a lengthy discussion.
Council and committee member Jack Webb proposed using $200,000 from the 2 percent lapse money his ad hoc budget committee helped save earlier this year by analyzing the City’s budget department-by-department.
Webb’s proposal was voted down, with most Finance members worried that if the lapse money was tapped now, it would be difficult to turn down other requests.
The money will come from an environmental trust fund within the City’s Environmental Protection Board. Chairman Mike Templeton lobbied on behalf of the board to retain all of the money in the trust fund – a little over $700,000 — and explained the board was informed very late in the process. Templeton said the EPB’s certainly supports preserving the health of the northern St. Johns River and opposes the planned massive withdrawal of water by Central Florida. However, Templeton said the EPB has other legislation pending that will require funding to support.
“This transpired very quickly and we were not involved up front,” said Templeton. “We believe this is a fight that needs to be fought.”
According to Webb, there is about $700,000 left worth of lapse money that wasn’t restored. He wanted to use a portion of it in an effort to not drain the environmental fund. While the Finance Committee as a whole supports the lawsuit and funding legislation necessary to pay for it locally, they almost unanimously agreed there are other more pressing needs for the lapse money from the 2007-08 budget.
“We have higher priorities on (Jacksonville) Journey issues,” said committee member Daniel Davis. “I do not support this amendment, but I support the bill.”
Committee member Art Graham questioned whether the $400,000 can be used at all for the purpose of funding a lawsuit. According to Assistant Council Auditor Janice Billy, the committee had to pass a waiver within the legislation because per City ordinance, Environmental Trust Fund money can only be used to help restore the environment, board expenses, studies, surveys, tests or investigations.
“That’s something you are waiving,” said Billy of the use of the money for attorneys’ fees.
According to Assistant General Counsel Steven Rohan, the original numbers proposed for the legal fees were “much, much farther north,” than the $400,000 within the proposed legislation. Rohan said the Miami law firm of Greenberg Traurig has been retained to serve as outside counsel in the suit. Rohan said the firm was selected because no firms in the Jacksonville area were qualified.
“We were not aware of anyone local that has that expertise,” said Rohan, adding the Office of General Counsel sought firms that had appeared before the Water Management District before. He also said a Request for Proposal wasn’t necessary to procure the firm because the bill was introduced on an emergency basis.
Rohan said at that point his office wasn’t sure if the case would go to trial. That assessment has changed.
“We do know now there will be a trial in October,” he said. “We are in the process of discovery.”
Rohan also said regardless of the outcome, the City likely won’t be able to recover any of the attorney fees associated with hiring outside counsel.
The Webb amendment was voted down 5-2 while the original legislation passed 7-0.
The committee also approved its annual agreement with Shands Jacksonville Medical Center that provides the hospital with an annual payment of $23.7 million to help Shands cover the costs of indigent care. According to Penny Thompson, vice president of public affairs for Shands, the annual bill for indigent care at Shands is closer to $40 million with the rest coming from state and federal sources.
“We are the only hospital in the county that receives money through a City contract,” said Thompson, explaining that all hospitals receive Medicare and Medicaid funding.
Thompson said the City’s portion of Shands’ indigent care bill has remained level for several years. However, she’s not sure how much longer that can last.
“It’s getting tougher and tougher every year,” she said, adding the State Legislature cut Shands’ funding this year to the tune of $13 million.
“We are fearful of this year and we will come and talk strategy, but I am not sure what our strategy will be,” she said.
Committee member Warren Jones said he thinks too many companies don’t provide health insurance to their employees because they know Shands will treat them regardless of their health insurance status.
“We are paying (for their health coverage) through this $23 million and we are only going to pay more as the years go by,” said Jones.
The committee passed the bill 7-0.
356-2466