HomeMy WebLinkAboutMinutes Council 080988E
CITY COUNCIL
SPECIAL MEETING
CITY OF PALM BEACH GARDENS
AUGUST 9, 1988
SEACOAST UTILITY
The City Manager gave each Council member a revised copy of the Interlocal
Agreement with Palm Beach Gardens, Lake Park, Juno Beach, North Palm Beach
and Palm Beach County, stating there were some changes an pages 8 and 9.
The composition of the .Authority, after it is established, within 3 years
the fo-iat will change based on ERCs in each jurisdiction. The initial
startup of the Authority would require a unanimous vote For any decisions
re: management team, operations, or condemnation. Another revision states
that if any entity has more than 50% of the weighted voting, it must have
one other entity to vote with them. Any action taken by the Authority
will require 51% of the weighted vote. The money paid by each entity in
creating the Authority would be paid back in a 3 year period. Each entity
will submit invoices for any other expenses incurred to date and the
Authority will make a decision, by unanimous vote, if the entities are to
be reimbursed. After this action, any revenues received by the Authority
will stay with the utility and the municipalities or county will not
receive any revenues from this utility. Vice Mayor Martino stated he
would like information why this agreement was good for the City.
A report was given re: terms of the sale of Junioer Investment Company an(;
how loans totally $71,000,000 were to be paid back. It was noted that
Foundation Land did not sell any real estate, retaining all underlying
land and all transmission mains. Instead, Foundation will lease the real
estate and mains to Juniper Investment for $2,000,000 a year for 20 years.
At the end of the 20 years Juniper will have the opportunity to purchase
the real estate and mains for $20,000,000 or what is then the fair market
value. This brings the total purchase price over $115,000,000 purchase
CITY COUNCIL SPECIAL MEETING, 819088
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price. Mr. Whitman, the potential purchaser of the system, stated in a
deposition that he was interested in buying land in Florida, however,
stated that the purchase of land was not a part of the utility purchase.
Mr. Whitman also stated the terms of the loan have not yet been nego-
tiated.
In resnonse to Mayor Feeney, Attorney Brandenburg stated the decision to
proceed with the transaction and operation of the utility would be between
The Foundation and the buyer while this was going through condemnation
proceedings. Attorney Brandenburg stated Mr. Whitman admitted he did not
have any knowledge about the County's Tra`fic Standards, Impact Fees or
the general attitude about growth in the area.
Vice Mayor Martino stated that the Foundation Land Company has hurt the
rate - payers with this sale to a private owner, based on the terms of the
loan. Vice Mayor Martino stated if Foundation Land Company wanted to be
the good neighbors that they have portrayed themselves to be over the
years, they should come back to the "drawing board" for the sale of
Seacoast Utility to the public sector.
The City Manager stated an "acquisition team" will have to be selected. The
City Manager stated the City of Palm Beach Gardens has been spending
monies for this acquisition, while others have not, and is now looking for
the other entities involved to spend money on the acquisition. Attorney
Brandenburg stated that at the next meeting of the other three mcnicipali-
ties and the County, each one will need to determine who they want to
appoint to this Authority and make that appointment in a public session.
OR After that's done the first meeting of the Authority will be called and
they will elect a Chairman and Vice - Chairman. At that time t1,y will
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decide who is going zo be on the "acquisition team ", hire that team, set
up accounts in record and obtain the $500,000 from the entities and start
moving ahead on the advice of the acquisition team. Attorney Brandenburg
felt the Authority would want an analysis before malting tie d°r.:�io;i tc
to condemnation, reporting what the maximum outside costs and inside costs
will be, time frame, and the areas of weakness and strength in the case.
Meanwhile, the Authority will still be pursuing matters with the Public
Service Commission.
The City Manager stated the reason the City is seeking condemnation is in
the best interest of the Public, feeling the utility should be under
public ownership to assure a uniform rate base. The City Manager stated
the City is concerned the cost that 7s being paid for the system far
exceeds the value, therefore, the users will ultimately be penalized if
the governmental agencies do not acquire the system.
By a unanimous vote of the City Council, the Interlocal Agreement for the
Acquisition of Seacoast Utility was approved, as well as the initial cost
of $200,000 from the City of Palm Beach Gardens.
APPROVAL f
1.1AYOR FEENEY { COUNCILMAN ALDRED
VICE MAYOR MARTINO COUNCILWOMAN MADE
-' COUNCILMAN KISE
ATTEST:, �,' //
LINDA KOSIER, DEPUTY CITY CLERK