HomeMy WebLinkAboutMinutes Council 010967CITY OF PALM BEACH GARDENS
REGULAR MEETING OF THE CITY COUNCIL
January 9, 1967
REGULAR MEETING The regular meeting of the Council of the City of Palm Beach Gardens
was held on January 91 1967, at 8:00 P.M., at the Meridian Park Club-
house, Palm Beach Gardens, Florida.
PLEDGE OF ALLEGIANCE Mayor Diamond instructed Councilman Bonner to lead in the Pledge of
Allegiance to the Flag.
QUORUM At the direction of the Mayor, the roll was called. All of the
Councilmen were present.
MINUTES OF REGULAR Mayor Diamond instructed the Clerk to read the minutes of the regular
MEETING, DE 19TH,
1961, A.UFRUVE13 meeting December 19, 1967, at the request of Mrs. Mildred Peters.
Motion by Councilman Bonner, seconded by Councilman Earle, that the
minutes be approved as read by the Clerk. Vote was 5 -0 in favor of
the motion.
DEPARTMENT REPORTS BY Mayor Diamond instructed the Manager to read all Department Reports
CITY MANAGER
for Public Safety, Recreation Department, Building Department, Fire
Department, and Public Works Department. Councilman Hughes commended
all Department Heads for their very fine reports.
OPENING OF BIDS FOR Mayor Diamond turned the meeting over to the City Engineer, Mr.
ROAD RECONSTRUCTION
IN PLAT #3 Howard Searcy, to proceed with the opening of the bids for road
reconstruction in Plat #3. Mr. Searcy informed the Council that
their were three bids received on this project.
1. Crabtree Construction Company - Total Base Bid $112,586.75
West Palm Beach, Florida - Alternate Bid $114,129.75
Contract Time - 150 Calendar Days
Minutes of Regular Meeting January 9, 1967
Page 2
2. Rubin Construction Company - Total Base Bid $109,737.73
West Palm Beach, Florida - Alternate Bid $107,670.73
Contract Time - 85 Calendar Days
3. Belvedere Construction Co. - Total Base Bid $116,475.65
West Palm Beach, Fla. - Alternate Bid $114,882.65
Contract Time - 110 Calendar Days
Mayor Diamond acknowledged receipt of the preceeding bids and in-
structed the City Engineer to review them to see that they conformed
to specifications. Upon a recommendation from the City Engineer,
the contract will be awarded at the next regular meeting. Council-
man Earle stated that the plans and specifications were available
for anyone in the audience to review if they wished.
RES. #1 -1967 Motion by Councilman Hughes, seconded by Councilman Earle that
ENGAGING THE FIRM OF
BARCUS, KINDRED & CO. Res. #1 -1967, hiring the firm of Barcus, Kindred & Company to prepare
a feasibility study for the purchase of the utilities in the City,
be read by the Clerk. Vote was 5 -0 in favor of the motion. It
was explained by Mayor Diamond that this study was going to be made
to explore the possibility of purchase. It is not intended for the
purpose of purchasing. He further explained that as of December 31,
1966, the franchise was in jeopardy, due to the fact of non- perform-
ance on the part of the utility company as set forth in the fran-
chise. Mayor Diamond explained that the passing of this Resolution
in no way obligated the City for any money to Barcus, Kindred &
Company, until such time that a purchase of the system was negotiated,
based on the feasibility submitted by them. The City Attorney
advised the Council that it would not be necessary for the City to
bid the bonds in the event the feasibility suggests that the Council
purchase, because Barcus, Kindred & Company would actually purchase
the bonds themselves. Councilman Bonner stated that there would be
additional costs for engineering studies in the event of purchase,
Minutes of Regular Meeting January 9, 1967
Page 3
to determine the actual value of the system before it is purchased.
Mayor Diamond stated that there had been no overtures on the part of
the Utility Company or the City, with regards to the purchase of
this system, but this action by the Council was necessary to attempt
to correct the conditions as they exist today. He further stated
that the Council would investigate every possible angle to correct
these conditions, and it seemed that this was the first and most
logical approach of the many ways that it could possibly be handled.
He was asked by someone in the audience what the problems were as
referred in the discussion following the reading of the Resolution.
Mayor Diamond informed this person that the major problem was "poor
water ". Motion by Councilman Bonner, seconded „by Councilman Earle,
that Res. #1-1967 be adopted as read by the Clerk. Vote was 5-0 in
favor of the motion.
—ORD. #1 -1967
Mayor Diamond informed the audience that it was the practice of the
REVOKING THE FRANCHISE
OF PALM BEACH GARDENS
Council to place and Ordinance on first reading and that it was not
UTILITY COMPANY - FIRST
READING
in order to have discussion after the Ordinance is read for the first
time, diacross- ionvis usually held on second reading. But, in view
of the significance of Ord. #1 -1967, he was going to waive this
procedure and allow discussion on first reading. Mayor Diamond fur-
ther stated that there were parties in the audience invited by the
Council to discuss this Ordinance. Motion by Councilman Hughes,
seconded by Councilman Earle that Ord. #1- 1967, revoking the exclusive
franchise held by Palm Beach Gardens Utility Company, be placed on
first reading and read by the Clerk. Vote was 5 -0 in favor of the
motion. Mayor Diamond read two letters from the Florida State Board
of Health. The first letter was dated November 9, 1966, and was
addressed to Brockway -Owen & Anderson, with copies being sent to
Minutes of Regular Meeting January 9, 1967
Page 4
the City of Palm Beach Gardens. Mr. J. B. Miller, State Board of
Health Director of the Division of Water Supply in Jacksonville,
Florida, originated the letter. Mayor Diamond stated that this
letter was prompted because of an application for an extention to
the water system to a new area within the City limits. Mayor Diamond
stated that there was a response to this letter on November 15, 1966,
from Mr. MacArthur to Mr. Miller with copies to the Mayor and City
Council. Mayor Diamond proceeded to read this letter. Mayor Diamond
explained that the suit referred to in the letter was a suit brought
by Mr. MacArthur against the North Palm Beach Utility Company
whereby he had had an option to purchase this system, and it had
been Mr. MacArthur's intention to combine the systems at sometime.
Mayor Diamond stated the reason for his reading these letters was to
explain to the audience and the City that these letters were what
prompted the Council to explore the water situation. Mayor Diamond
then proceeded to read another letter dated December 12, 1966, from
the State Board of Health, initiated by Mr. J. B. Miller to Mr.
Sheppard of Brockway -Owen & Anderson, with copies to the Utility
Company, Attention: Mr. Miller, City Council, Mr. John D. MacArthur,
and Palm Beach County Health Department. This letter had further
reference to any extensions to the present system. Attached to this
letter were copies of the data reported from the samples taken in
various areas of the City kk-ehe State Board of Health, at the re-.
quest of the City Council. Mayor Diamond stated that these letters
were offered merely to point out that our prime concern is the
delivery of safe, acceptable water to the people of this town. The
method in which we secure the water is relatively incidental. It
might be better that the town owned the system. It might be better
if an individual owned the system. This is something we are not
Minutes of January 9, 1967
Page 5
here to discuss tonight. Mayor Diamond further stated that the
City had upheld its part of the contract granting the exclusive
franchise, by doing nothing to interfere or place undue pressure
on the Utility Company during the term of the franchise. 'We feel
that we are tdrminating the franchise, if it is terminated, for non-
performance as pointed out in the franchise. The present Council
did not draw up the franchise. Another item that might be called
to your attention is the fact that back through the files and through
the information we have on the water situation, there is a disregard
on the part of the utilities to be sensitive to public opinion or
to public need in the area of water. The water has not been satis-
factory for quite some time, like 3,4 or 5 yearg', Mayor Diamond
stated. —A third item as we review the files, is that there is a
disregard for public health, and 1 don't mean to state that we make
any accusations, but there is just an indication that there has been
lack of cooperation with the health Department in matters that per-
tain to the health of the citizens. The water has been marginal
at times, the color, and of course, the hardness has always been
there, and it needs improvement. The final item that might be men-
tioned is the fact that we were advised sometime back that one rea-
son the plant was not being finished according to the «greement,
was the financial problem in mortgage money or the ability to find
funds to complete it. We are in aLtight money market and this is
very possible. We offer the possibility that if this is a financial
drain on the Utility Company, it might be well if the City took
this off their hands and baled them out of this situation. We know
that we can borrow money cheaper than they can. We have been ad-
vised this past weekend that Palm Beach County has been approved
Minutes of Regular Meeting January 9, 1967
Page 6
for federal assistance up to 50 percent on water and sewer facilities,
provided that the City were to apply for this kind of assistance,
so quite possibly, we could maintain or build at approximately half
what it would cost a private owner to do so. Mayor Diamond stated
that the prime factor under consideration is to get good water for
the town, and he felt that no one in the audience could state that
we have good water now or have had it in the recent past.
Mayor Diamond then recognized Mr. Horace Miller, representing tLd,
Utility Company, and Mr. Lawrence Lukin from the State Board of
Health, and asked that one or the other have the floor. Mr. Miller
said that he preferred to have Mr. Lukin speak first. Mr. Lukin
stated that the letters read by Mayor Diamond were public record and
he felt that the letters clearly summarized the conditions as they
exist. He said he would be glad to answer any questions with regards
to the letters. Mayor Diamond then asked the members of the Council
if they had any questions they would like to ask Mr. Lukin. Council-
man Bonner asked Mr. Lukin to amplify the term "potential sanitary
hazardous condition" into laymanfis terms. Mr. Lukin stated that
Mr. Miller was referring to the location of wells 6 and 7. These
wells were put in close proximity to the Thompson River which re-
ceives sewage affluent from the Palm Beach Gardens Sewage Treatment
Plant, so that on the basis of a survey, those wells present a pos-
sible hazardous contamination since the travel of ground water in
the sub strata is always questionable. The closer you locate a well
to a sanitary hazard, the greater the probability of introducing
contamination to that well. Based on the proximity of the wells to
the Thompson River and the discharge of sewage affluent into the
`l Thompson River, this is a possible hazardous condition. Councilman
Bonner recognized f rom the letters that the Utility Company to
Minutes of Regular Meeting January 9, 1967
Page 7
overcome this potentially sanitary hazardous condition, is super
clorinating the water before it is dispersed. Councilman Bonner
asked Mr. Lukin to expound on the new water treatment plant that
is being prepared for chemical preparation and filtration. Mr.
Lukin explained that the possibility of the hazard that we just
discussed is eliminated through a process of chemical treatment
called chemical coagulation and filtration. This process does
minimize and eliminate the possibility of bacterialogical contam-
ination As a measure until a coagulation and filtration system is
in operation, the State Board of Health approved an interim measure
known as super - clorination. This method is not as dependable as
the treatment through coagulation and filtration and this has proven
in the past to be satisfactory during appropriate time. This was
the basis of the State Board of Health interim approval of super -
clorination of these wells which represent a possible hazardous
condition. Mayor Diamond asked Mr. Lukin the approximate time that
this approval was given. Mr. Lukin stated it was October 4, 1965.
Mayor Diamond asked Mr. Lukin, "By interim approval, do you mean
a time unspecified ?" Mr. Lukin remarked that it was understood
that the coagulation and filtration system would be completed by
the middle of 1966, and this was the time in which super - clorination
would be permissible. Councilman Bonner stated that he had been
under the impression and was led to believe that this was going to
be a water softening plant. He asked Mr. Lukin if softening was
in addition to chemical preparation and filtration. Mr. Lukin
stated, "In a nutshell, a coagulation and filtration plant becomes
a softening plant, upon the addition of some chemical which is
intended to remove the hardness. In the design of this plant, the
addition of lime would convert the coagulation and filtration plant
into a softening plant." Mayor Diamond asked Mr. Lukin if you could
Minutes of Regular Meeting January 9, 1967
Page 8
build just a softening plant. Mr. Lukin replied, "Yes, you can,
but in this case the coagulation and filtration plant was introduced
as a necessity because of the potential hazard of the raw water
supply, so once you introduce that, of course, there would be no
other way than by a longer process." Mayor Diamond stated, "Then
we really need a treatment plant, not a softening plant." Mr. Lukin
stated that was right. Councilman Bonner directed a question to
Mr. Lukin asking him, "At what point should extensions of the sys-
tem cease, whether it be plats or individual extensions, and how
is this affected by a potential sanitary hazardous condition ?" Mr.
Lukin answered, "As a system is encompassed and is fed by a certain
well supply, there is a draw out of that well.`.' He explained that
this would be called a draw down of this well and as it draws down,
it draws the ground waters from the neighboring area. The harder
you pump that well, the more you are going to draw down the well,
and the greater the draw from the neighboring area. Fhom'amgin-
eering logic, the more demand on this well, the greater the poten-
tial for drawing a source of contamination that may be adjacent.
Therefore, the state has taken the position until some other sur-
veillance or method of treatment insures safe water, there is no
further extension to be made so as to increase the draw on the raw
water supply. Mayor Diamond stated that any increase in demand on
the system would be considered an extension. Mr. Lukin answered
yes. Councilman Earle asked Mr. Lakin, "Knowing that the sewage
oxidation pond was effluxing into the Thompson River, why was per-
mission given to drill wells 5, 6, and 7 ?" Mr. Lukin replied, d?You
are asking a leading question." "No permission was granted for the
drilling of those wells." Be stated that at f.the time they were
drilled, the City water supply was in a critical state and the wells
Minutes of Regular Meeting January 9, 1967
Page 9
were drilled wit ]Aout permission, and were at a later date approved.
He replied, "But in answer to your question, there was no permission
granted for the drilling of the wells." Councilman Earle asked him
if this included well 5. Mr. Lukin stated that it did but that
well 5 was later condemned. Wells 6 and 7 were permitted to be used
for an interim period of time provided that super - clorination was
administered or a coagulation and filtration system was in use.
Councilman Earle asked Mr. Lukin, "How is this super - clorination
being done at the present time, is it an automatic system, or is it
being done manually ?" Mr. Lukin stated it was a combination of both.
It is a matter of setting the clorinators and getting the proper break
point in clorination. Councilman Hughes asked Mr. Lukin, "If
these three wells, 5,6, and 7, were located in another position,
away from the Thompson River and the pond that they are adjacent
to, would these wells and our water then be more acceptable from
a health standpoint ?" Mr. Lukin replied that if these wells were
located in a different area relative to the polishing pond, that
they would certainly be more acceptable, provided they were tested.
He further stated that Mr. Miller, in his letter to the Utility Com-
pany, had of €ergd alternatives to them by relocating the wells as
they had originally been planned. Councilman Brown asked Mr. Lukin
what was meant by the fact that the water was unstable. Mr. Lukin
replied this was the PH factor. Councilman Brown asked if this was
the factor of the raw water supply or the distributed water supply.
Mr. Lukin replied that the reading was different at both places.
Mayor Diamond asked if there were any questions from anyone in the
audience. One question was, " Is this water in Palm Beach Gardens
presently approved by the State Board of Health ?" Mr. Lukin said
that Mr. Miller's letter explains that the wells were approved under
an interim system which is in practice now, and the bacterialogical
Minutes of Regular Meeting January 9, 1967
Page 10
surveillance, of course, is continued. That, of course, is the
condition by which the present company is operating. Mrs. Peters
said, "Mr. Lukin, you speak of wells 5, 6, and 7, are there wells
1, 21 3, and 4 ?" He replied, "There were wells 19 2, 3, and 4, and
1 think only well 3 is the only one in use. For some reason or
another, the others had to be abandoned." Mrs. Peters stated, "Then
we are using wells 3, 6, and 7." Mr. Lukin replied yes. Mrs. Peters
asked Mr. Lukin if the other neighboring cities' water was in the
same condition as ours. He stated that possibly the raw water was
very similar, but they had treatment plants in operation, and on the
distribution end of the system, the water was far superior to that
which the Gardens was receiving. Councilman Earle wanted to clarify
the question, "Was the water presently used in the Gardens suitable
for human consumption ?" Mr. Lukin stated that the answer was yes.
One question from the audience to Mr. Lukin was, "Was it possible
to obtain a home unit for treatment of water ?" Mr. Lilkin stated
emphatically, "It is very dangerous, stay away from it. You can
soften your water at home and that is the extent of it." Mayor
Diamond recognized Mr. Jewett and he stated he would like to ask
several questions. #1. "Have there been any indications that the
water situation has gotten any worse or more dangerous ?" Mr Lukin
replied not, that the system had been pretty well status quo. The
second question from Mr. Jewett was, "If the Council votes to revoke
the franchise of the City and the Utility Company decides to turn
off the water, will the State Board of Health step in and operate ?"
Mr. Lukin replied no, they would not step in to operate the plant
as they were not an operating body, but in all probability would
assist in getting a court order allowing the City to have the water
turned back on and allow the City to operate until a decision could
be reached. They could do this because they were an enforcing body
Minutes of Regular Meeting January 91 1967
Page 11
rather than an operating body. Councilman Hughes asked Mr. Lukin
the general location of well 5 and the proximity of wells 6 and 7
to well 5. Mr. Lukin replied that well 5 is the first well westerly
of the oxidation pond affluent, and that well 6 is west of this and
well 7 is west of 6 in the proximity of Military Trail. He stated
that well 3 was north of the Thompson River.
Mayor Diamond expressed his sincere thanks on behalf of the Council
for Mr. Lukin's presence and for the excellent job that he had done
in answering questions asked of him. Councilman Earle expressed
the Council's gratitude for Mr. Lukin's cooperation and stated he
felt very confidant that if something went wrong with the water,
Mr. Lukin would know of it immediately.
Mayor Diamond recognized Mr. Horace Miller, Vice President of Palm
Beach Gardens Utility Company. Mr. Miller said he thought that he
should compliment the Council on their efforts to try and insure
the people of Palm Beach Gardens of getting the best or purest water
available. Mr. Miller noted that the last time he had made an
appearance at the Council meeting he was asked specifically, "What
about the water plant ?" He stated at that time that he would do
everything within his power to insure the citizens of Palm Beach
Gardens good water. Mr. Miller stated that on January 2, 1967,
his company had put the crew back on the construction of the water
treatment plant. He stated they had all plans to continue at all
possible speed to get it finished as soon as possible. He said
he had been asked to give a completion date and, " There have been
completion dates given and I am not going to stick my neck out. I
am going to say that it will be completed just as quickly as pos-
sible." "I think that there is no question in anybody's mind that
Minutes of Regular Meeting of January 99 1967 Page 12
the answer to the problem hex@ is the water treatment plant.? He
asked Mr. Lukin if he were correct. "I think the Council of Palm
Beach Gardens, in their zeal to protect the residents of Palm Beach
Gardens are overlooking one very vital consideration concerning the
repeal of an Ordinance." °I tried to follow the Clerk very closely
when he was reading the proposed Ordinance that I have not seen. I
received a notice late Friday afternoon and I have spent considerable
time on the project since then. Frankly, I was of the opinion that
the franchise was conditioned upon the finishing of the plant. While
I was sitting in the corner sulking after the election, other people
were running the affairs of the City as far as we were concerned.
I don't mean official affairs of the City, and in May there was an
Indemnity Ordinance that made the franchise operative at that time.
Maybe I am correct, maybe I'm wrong. The way I read the Ordinance,
I think you ought to have the addendum to that Ordinance, which you
have a lawyer for an opinion and we will let him handle that. I
think the one control that the City had over the water plant is the
franchise. Now, frankly, I might say that two weeks from tonight
you pass the reading that you had tonight and pass it on second
reading, what does it mean? Do you want me to shut your water off?
Do you want me to stop working on the plant? I don't know what you
mean. I don't think you are legally bound. I think that your right,
six months from now, as long as we have started work on the water
plant again, this time to a conclusion, God willing that I am right,
that you have the same right six months or two months from now, but
I think you're letting the Utility Company slip out from under your
control to throw the Ordinance up. The only thing that I can be-
lieve, franchise or no franchise, is I am interested in getting
this water plant finished, this treatment plant finished, so that
Minutes of Regular Meeting January 9, 1967
Page 13
we can get Mr. Miller and Mr. Lukin and you off our neck. You
proudly said you had a 35 percent increase in building in 166,
but we can't extend our lines. What-Es it going to do you? Now
you're smart men and you're interested in that dollar. You're
interested in building. Right now, big projects are important,
in reference specifically to that big apartment building in Plat
3. If we don't get the extensions for sewer and water, its dead,
and I think the only way I can get it is to build the water softener,
and I am going to build it. I'm not going to make any promises
when its going to be finished. If it could be finished in two days,
I'd be the happiest guy in the world. I don't think the monkey is
on my back, it's on your back."
Mayor Diamond interrupted and said, "Mr. Miller, before you sit
down I'm not going to try and harpoon you: I just want to state a
couple of facts. The monkey isn't on our back and never will be.
We didn't draw up the franchise. We don't operate the utility com-
pany. We didn't state that we would build the plant. We didn't
fail to build it. The franchise was drawn up on March 16th last
year before this Council took office. There has been no addendum
to it since then. The conditions outlined in the Ordinance read
tonight are excerpts from that Ordinance exactly as they appear.
The fact that building in the town was up last year, and it would
be great if it continued on the upswing, if the water conditions
caused building to stop, again, this is unfortunate but don't
blame it on us. We are not the ones who have not built the water
plant. Iftit -kere our place to build the plant, I think it would
be built. No one has stated why it wasn't built. No one has stated
why construction started immediately after the New Year, or why it
wasn't built after a meeting last November or last year or the
year before. The tendency is to blame the City for everything
i
Minutes of Regular Meeting January 9, 1967 Page 14
that goes wrong because the argument is that the City blames the
developer for everything that goes wrong. This isn't true. We
aren't blaming anyone. We just are stating the fact that we have
an Ordinance on the books calling for performance. We have not
had performance. We are not zealots in protecting the health of
the people in the City by going out looking for ways to cut someone
up. We are doing what we are supposed to do. The reason you hired
us. If this is wrong, then you have the chance to hire some other
people soon. In reference to the stopping of the developing such
as on the apartment building in PGA, it was known at the time the
land was sold that you were operating without permission to extend
the lines. The lines were extended illegally and without permit.
We have not enforced the law in that respect/ We have allowed
the extension to continue pending action here because we didAft
want to touch this thing until there was just no other way. Now
we haven't decided to cancel the franchise, we just put it up for
possibility. So we are not mad at anyone, we are just doing what
we think we ought to do."
Councilman Hughes said to Mr. Miller, "You mentioned it would be
regretful if we cancelled the franchise because that is the only
tool that we have. For the last nine months this tool has been
useless. The plant has not been touched although we have a fran-
chise. We have no way of enforcing it. It was untouched from
March until after the franchise expired. I will agree that you
did work a couple of days. Second, even with the franchise, we
have no guarantee that what has happened twice in the past, con-
struction started with all the zeal that is going on now and just
as abrubtly it quits, will not happen again. Now we would like to
see this plant finished. I would do anything in my power to help
you f inish it.
Minutes of Regular Meeting January 9, 1967
Page 15
Councilman Bonner stated he would like to make a couple of remarks.
Mayor Diamond interrupted and asked Councilman Bonner if these ques-
tions would be directed to Mr. Miller inasmuch as Mr. Miller had
been asked to answer questions. Councilman Bonner said his question
was not directed to Mr. Miller, therefore, he relinquished the floor.
Mayor Diamond then recognized Mr. Jewett. Mr. Jewett stated he had
one question he would like to ask. "I probably am not going to get
an answer. You may tell me to go peddle my papers somewhere else,
but quite frankly Mr. Miller, as the Vice President of the Utility
Company, do you think that the other members of the Utility Company
would look with favor upon the cancellation of the franchise, and if
they did not look with favor, would they want to go whole hog ahead
and complete the water plant ?" Mr. Miller stated that he tries to
be a realist and never attempts to second guess what someone else
will do. Mr. Miller stated that he felt that he could not argue
the point. "I cannot go back to 166, 165, 164, '63, I can only say
that I believe that the crying need of the City is the water treat-
ment plant."
There being no further questions, Mayor Diamond took the opportunity
to thank Mr. Miller for appearing on such short notice and assured
him that there was no intention at this meeting for anyone to sit
upon him. He reassured Mr. Miller that the Ordinance was a proposed
Ordinance and was being placed on first reading only and that all
facts would be considered in detail before it would be placed on
second reading two weeks from this date_ Mayor Diamond stated for
the record that being in a position whereby they had to examine in
great detail the facts, it was necessary to call upon people with
authority to deal in the PH °s, color, financial arrangements, legal
matters, etc., to resolve this problem in the best interest of the
r
Minutes of Regular Meeting January 9, 1967
Page 16
people.
Councilman Bonner asked Mayor Diamond if he may have the floor. He
stated he had several comments he would like to make. Mayor Diamond
recognized Councilman Bonner. Councilman Bonner stated, "As anyone
can tell you, water is absolutely the life blood of the community.
Everyone must have it, and if you will look across the country as to
it
what other towns do, I think you will find a pattern that /is generally
found desirable by most municipalities to own and operate their own
water and sewer treatment plants. The reason for this is obvious.
Some of the reasons have been mentioned here tonight. #1. As a
municipality, we can borrow money cheaper than a private company.
#2. If the water plant is owned by the people, then you have con-
trol of the rates. You don't have the problem North Palm Beach is
having right now. Also you have control of the operation. Just
because the water treatment plant is built, and the water courses
through the pipes, doesn't mean that it is going to come out any
different that it goes in. Something has got to be done to it in-
side every day. Since water is so vital to the community, I think
that at every meeting that we have discussed how to solve this prob-
lem and there have been eight or nine different things on the list,
the purchase of the plant is always #1, and speaking for myself,
will remain so until that question is absolutely resolved whether
we can or cannot buy it because that, to my way of thinking, is the
ultimate solution to this problem." Councilman Bonner asked it he
could make one further comment. "The plant that we are talking about
buying is the plant that already exists, and we have no intention of
duplicating this system. That would be the last resort. That would
be #10 on my list."
Minutes of Regular Meeting January 9, 1967
Page 17
Mayor Diamond recognized Mrs. Mildred Peters. She directed her
question to Councilman Bonner. '"Lou talk about municipally owned
and operated sewer and water plants. It has been known nation -wide
that municipally owned utilities or municipally owned anything are
notoriously badly run and badly managed and don't make money."
Mayor Diamond stated that was not true. Mr. Lukin asked to be rec-
ognized and said that he could not wait for the Mayor to ask him
to correct Mrs. Peters' erroneous statement. "I don't want to
add to Horace Millerls problems here, but I must give you the his-
torical facts with regards to municipally owned water systems nation
wide. Municipal operation of water and _s,e:3�apL� facilities is
universally successful. Private operation of water and public
utility systems is bad. Unfortunately you have a community just
to the east of you which is one of the exceptions of good water
management which is the exception to the rule. The only real over-
all continuous successful operation of water and sewage is municipal
operation:' "Thank you Mr. Lukin ", Mayor Diamond concluded. "The
State Board of Health always recommends that the municipality take
whatever measures are necessary regardless of the circumstances to
publicly own and operate the facilities," Mr. Lukin replied. Mrs.
Peters then asked, "Why is that ?" Mr. Lukin replied, "I have just
tried to give you an indication that the success of the operation is
more universal. This includes the financial aspects, in most cases
it also includes the dependability of the operation, and most im-
portant,�the facility is owned and operated by the people so that
the quality and final disposition of the product is so delivered
at their wishes. You only have to look towards the national records
of municipal vs private operation from an engineering point and a
fiscal point of view to show that this is the case."
Minutes of Regular Meeting January 9, 1967 Page 18
Mayor Diamond stated that about eight months ago that one thing we
hoped to deliver was good water to the people of Palm Beach Gardens.
He stated, "We have gone through Health Department records. We have
talked to the Health Department. We talked to fiscal people. We
talked to engineers. We talked to the Utility Company, to try to
get people moving on the plant. We have not failed to perform on
this. They have failed to perform, so let's not be too upset with
us for looking into why. We have not had a statement as to why
the plant has not been built. Completion date was promised Dec-
ember, 1965 and we have this in writing. It has been put off in-
termittently since then with continuous promises, which I will
assume were for a reason. There must have been a reason. You just
don't plunk that kind of money into the ground without a reason,
but we haven`t had any reason or any request for an extension
with hardship or anything else. We just had no answer. Our only
possible action as we continue to represent the people of this town,
would be to abide by the conditions of the franchise as they were
written before we even took office, and that is to terminate the
franchise or wait till performance is accomplished and then nego-
tiate a new franchise. It is not up to us to convince the Utility
Company that they should build the plant. We have tried every way
in the world to do that through the years. We are going to try
and keep water in yourtap the best way we can. We would like to
improve the quality of it a little." Councilman Hughes stated that
cancellation of this franchise does not prohibit them from offer-
ing service in this town. It prohibits them the exclusive right
to offer water in this town.
1_�_
Minutes of Regular Meeting January 9, 1967
Page 19
ORD. #2 -1967 Motion by Councilman Bonner, seconded by Councilman Earle, that
ZONING VARIANCE FOR
MR. ARENSDORF? MER - Ord. #2 -1967, a zoning variance for Mr. Arensdorf, Meridian Park,
be read by the Clerk on first reading. Vote was 5 -0 in favor of
the motion.
ORD. #3 -1967 Motion by Councilman Earle, seconded by Councilman Bonner, that
AMENDING THE OCCUPA-
TIONAL LICENSE ORDIN- Ord, #3 -19673 amending the Occupational License Ordinance „ Ord.
ANCE, ORD. #14 -1966
#14 -1966, be placed on second reading and read by the Clerk. Vote
was 5 -0 in favor of the motion.
OLD BUSINESS Mayor Diamond stated that on the Agenda, the item of discussion on
utilities for City property was next,.in order. He further stated
that the only discussion on this matter was that in improving the
City property there was a need for utilities. He stated that the
City had written to the Utility Company requesting service and the
cost figures for service if we are expected to contribute for im-
provement. He stated that there was a response from Mr. MacArthur
on the 21st of October, advising us that the utility lines were not
available at the property. They were available at Military Trail
and could be extended. With the Health Department's reluctance to
extend any service from the utility system, Mayor Diamond stated
that the Council was proceeding to get a permit to install a septic
tank and well which would be on a temporary basis until the utilities
could be extended.
NEW BUSINESS In response to various newspaper articles that have appeared in the
STATEMENT BY COUNCIL-
MAN BONNER AS TO THE preceeding weeks, Councilman Bonner felt that the Council should
COUNCIL'S POSITION ON
THE HOSPITAL make a statement as to their position on the hospital. He said
that the statement he was going to read would clarify their position,
Minutes of Regular Meeting January 9, 1967 Page 20
as far as they wished to go at this time. His statement said that
there were several problems that have delayed the opening of the
hospital. One was a shortage of trained personnel which appears to
be acute. It would require approximately 150 people to staff the
hospital, The major concern, however, remains financial. Council-
man Bonner stated that an increase in size and facilities had in-
creased the cost of the hospital to $1,600,000. The Hill Burton
grant was based on 40 percent of the initial cost of $1,100,000.
This grant did not increase in size proportionate to the total cost.
This raises the question of economic feasibility unless ad valorem
taxes are used to supplement revenues. He stated that your City
Council cannot and will not commit your ad valorem taxes without a
referendum vote of the people. The most promising solution to this
problem is to spread support required over the entire area that will
benefit from the hospital. This approach is being dilligently pur-
sued by your Council. Councilman Hughes stated that he had examined
the records available and had found that the total cost to date
was $1,200,000. He said that from the bonds that were to be issued
and the Hill Burton grant there was a total sum of $1,640,000
available. The question in his mind and the Council's was where
is the additional money going to be spent. The Council had been
advised that there was a feasibility study made. To date, this
study has not been made available to the City Council, nor is it in
the public records. Consequently, he felt the Council could take
no action until this study could be found and analyzed in great de-
tail. Mayor Diamond stated that for the record, the City had never
had the feasibility study. Therefore, he would like to clarify the
point that the City Council did not lose it. Mayor Diamond stated
that the Council had received a certified audit from the City audi-
i
Minutes of Regular Meeting January 9, 1967 Page 21
tors on the hospital from the inception of the hospital. There
were various questions from the audience relative to possibilities
u
of financing the hospital in the future. After lengthy discussion
between the Council and members of the audience, it was resolved
that the Council would not and cannot open the hospital without a
referendum vote whereby the people in the City could voice their
opinion. The Council stated they were anxious to listen to any-
one's proposition whereby the hospital could be opened and an
equitable distribution of costs were made to those who will be ser-
viced by it.
ADJOURNMENT Motion by Councilman Earle, seconded by Councilman Brown, that the
meeting be adjourned. Vote was 5 -0 in favor of the motion.
ATTESTED: AO— RVVED:
ry n Poston, City Clerk Robert C. Diamond, Mayor
° %r ames W. Hughes, Vice,/iNayor
George A. Bonner, Councilman
. 1
William D. Earle, Councilman
Norman E. Brown, Councilman