Florida Keys News - Key West Citizen
Saturday, February 27, 2010
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Resident accuses Rosasco of 2nd conflict
Claims finance director favors his past clients

A second ethics complaint has been filed against Marathon Finance Director and former Interim City Manager Peter Rosasco.

Knight's Key Inn owner Lance Kyle sent his complaint to the Florida Commission on Ethics hard on the heels of a complaint filed by Marathon resident Philip Snoberger two weeks ago. The earlier complaint alleges Rosasco chartered a flight for city officials, at city expense, through a company in which he has an ownership share. The complaint asks the commission to investigate whether the charter was a violation of state ethics codes against conflicts of interest and city employees doing business with companies they own.

Rosasco, for his part, said he has sought guidance from the legal department at the Florida Commission on Ethics since first hearing about the initial allegation.

"There is an exemption [in ethics codes] for sole-source," Rosasco said. He said his charter service is the only one available from Marathon airport, and qualifies for an exemption.

Kyle's complaint, while also mentioning the charter flight, raises "a sweetheart sewage infrastructure deal for his CPA client, Greg Coldiron, at Key RV Park" on which Rosasco allegedly was working.

Attorneys for the city and Key RV park had said published reports of a settlement in Key RV's lawsuit against the city concerning sewer infrastructure were inaccurate, and terms of the deal still were being worked out. On Tuesday, the Marathon City Council declined settlement options with Key RV -- likely sending the case to court for resolution.

Aside from rebutting allegations of preferential settlements, Rosasco says Kyle is misinformed about his relationship to Coldiron.

"Greg Coldiron is not, nor has he ever been, a client of me or my CPA firm," Rosasco said. "My firm has done work for [Key RV] in the past."

"I think the public needs to be very, very cautious here," Kyle said. "They are probably going to try to reinstitute that deal. They got caught. Somebody needs to investigate how far along this deal was. As a taxpayer in Marathon and Monroe County, I'm concerned."

Kyle's complaint also cites positions Rosasco has simultaneously held -- "finance director, interim city manager and recruiting agent for the city of Marathon" -- as a conflict.

"The Ethics Commission needs to either minimize Rosasco's influence within the city or eliminate it," Kyle said. "We're going to turn around one day and [his contract with the city] is going to be $1 million."

Kyle admits that one of his bullet points stands out above the rest as a reason for filing a complaint: gates on Knight's Key and the city permits to install them.

In his complaint, Kyle alleges Rosasco "disregarded proper procedure by securing a ... permit for illegal and unsafe private gates on a public road in Knight's Key Village."

He goes on to say Rosasco put the gates back into service as an eleventh-hour action on his final day as city manager -- as a favor to Coldiron, a Knight's Key property owner and member of the Key RV board of directors.

"Rosasco was trying to pull some executive stuff there on his way out the door," Kyle said.

Rosasco says the charges are based on sour grapes, not fact.

"The whole thing is something he's dreamed up in his mind," Rosasco said. "I know I have not done anything wrong with regard to Kyle's allegations. I don't believe that there's any substance to this complaint."

The issue at hand, Rosasco says, is gossip and misinformation being spread around town.

"I think there's an issue of perception that people don't understand my contract," he said. "It actually costs me money to be the Finance Department. I'm very proud of what I've been able to do for the city."

The Ethics Commission was set to meet Friday, but officials would not confirm or deny that the complaint would be reviewed then, as is the commission's policy. Because the complaint was filed shortly before the commission's February meeting, it may be pushed back to a hearing in April -- if it is heard at all. If either of the filings are judged to have merit, the commission likely will open an investigation before deciding on a course of action.

mphelps@keysnews.com

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