HomeMy WebLinkAboutMinutes Council 122262i
CITY OF PALM BEACH GARDENS
SPECIAL MEETING OF THE CITY COUNCIL
DECEMBER 22, 1962
SPECIAL MEETING: Upon call of the Acting Mayor, a special meeting of the City
Council of Palm Beach Gardens was held at 10:00 o'clock A.M. on Friday,
December 22, 1962, at the municipal office of said City, 1001 Park
Avenue, Lake Park, Florida.
QUORUM: The City Clerk announced that a quorum of the City Council
was present.
PURPOSE: The Acting Mayor informed the members of the Council that
MUNICIPAL UTILITIES
AND EQUIPMENT this meeting had been called to consider what action should be taken
as the result of consulting legal counsel in New York City with respect
to certain transactions between City of Palm Beach Gardens and Bankers
Life and Casualty Company. It was pointed out that the City had under-
taken to acquire from Bankers, directly or indirectly, and to operate
its own municipal utilities, including the extensions of and improve-
ments to those facilities. It was also pointed out that the City, for
the purpose of making other improvements, had agreed to purchase from
Bankers and others various items of essential machinery and equipment.
In so doing, the City had obliged itself to Bankers for the funds
and
required to finance the Utility plants as well as the machinery/equip-
ment. When the legality of the incurring of such indebtedness was
questioned, the members of the Council determined to consult competent
counsel, experienced in municipal law and financing; and such counsel
has stated that, in his opinion, the City Council, in acquiring the
aforementioned property and incurring the indebtedness to Bankers, had
Special Meeting of the City Council
Palm Beach Gardens
December 22, 1962 (continuted)
exceeded its authority by reason of the fact that such acquisitions
had been made and the indebtedness incurred as a general obligation
of the City. This opinion was reinforced by the fact that the City
has required and would continue to require, for an indefinite period,
advances from Bankers to enable the City to construct and maintain
extensions to the public utility system. This would necessarily
result in a constant increase in the indebtedness to Bankers and at
a rate far greater than the City has a likely prospect of repaying.
It was, therefore, the opinion of counsel that the City should rectify
the situation, which it created in good faith, by returning to Bankers
the entire utilities system, consisting of natural gas, sewage and
water, and including the water distribution and sewage disposal plant,
all pipelines and mains, wells, lift and regulator stations, etc.,
together with all vehicles and other equipment, consisting of cars,
trucks, tractors, draglines, and earth - moving equipment, of every kind
and description which had been acquired by the City, from Bankers or
its affiliated companies, or with funds advanced by Bankers, after the
repayment to the City of any amounts heretofore paid by the City on
such indebtedness.
RESOLUTION: The foregoing matters were the subject of lengthy discussion
by the members of the Council. Thereupon, upon motion duly made,
seconded and unanimously carried, the following preambles and resolutions
were duly adopted:
WHEREAS, on or about April 30, 1960, Bankers Life and
Casualty Company, an Illinois Corporation duly qualified
in Florida, sold and conveyed to the City of palm Beach
Gardens, all its right, title and interest in and to
the water distribution and sewage disposal plant, pre-
sently used by the City, together with the thirty acre
Special Meeting of the City Council
Palm Beach Cardens
December 22, 1962 (coneinuted)
site on which the same is located, said conveyance being
by Warranty Deed recorded in Official Record Book 760,
Page 587, Palm Beach County Public Records, Florida; and
WHEREAS, from time to time, the City of Palm Beach
Gardens has constructed water and sewage lines and
mains, has erected lift stations and excavated wells,
all in conjunction with and complementary to the
aforesaid plant; and
WHEREAS, from time to time, the City of Palm Beach
Gardens has constructed gas mains and service lines,
meter installations and regulator stations in connection
with its operation of a natural gas franchise from
Florida Gas Transmission Company; and
WHEREAS, the aforesaid plant, equipment and facilities
were purchased and /or constructed by said City with
funds advanced to it by said Bankers Life and Casualty
Company, a substantial portion of which advances remain
unpaid; and
WHEREAS, said City has also purchased from said Bankers
Life and Casualty Company, or its affiliated companies,
or with funds advanced by Bankers, various items of
tools and equipment, including, but not limited to,
cars, trucks, tractors, draglines, and other dirt -
moving, road - building and ditch digging vehicles and
machinery for which said City is presently unable and
will continue to be unable, to make payment; and
WHEREAS, it will continue to be necessary for the
City to extend existing utility services into areas of
the City now being developed or to be developed, which
will impose an additional financial burden which the
City will be unable to meet; and
WHEREAS, the City Council has been advised by competent
legal counsel, and is convinced after due and deliberate
consideration, that it did not have the power or authority,
under existing circumstances, to purchase or acquire the
aforementioned plant, machinery, equipment and other
facilities or to incur the extraordinary indebtedness
above - referred to;
NOW, THEREFORE, BE IT RESOLVED, That the City Council
of Palm Beach Gardens, in Common Council duly convened,
does hereby rescind all transactions involving the con-
struction and acquisitions above referred to and the
incurring of the indebtedness by reason thereof, and it
does hereby, in pursuance of the foregoing, determine
`J to grant, re- convey, transfer, release, set over, confirm
M
Special Fleeting of the City Council
Palm Beach Cardens
December 22, 1962
and assign all the aforementioned property, plant,
machinery and equipment unto Bankers Life and Casualty
Company, in full and complete satisfaction, payment
and discharge of all liens, charges, advances and
accounts flue on, as a result of or arising out of the
transactions relating to the aforementioned property,
plant, machinery and equipment, including the operation,
extension or maintenance thereof; and
BE IT FURTHER RESOLVED, That the Acting Mayor and the
City Clerk of the City of Palm Beach Gardens are here-
by designated, and they and each of them be, and here-
by are, duly directed, authorized and empowered to
execute and deliver, by and on behalf of said City,
and in its name, any and all deeds of conveyances,
bills of sale, transfers of title or other instrumeits
and to perform all such other acts as may be necessary
to effectuate the foregoing, including, without being
limited to, the making and execution of all necessary
and appropriate entries in the accounting records of
the City in order to reflect the full import and intent
of this Resolution.
ADJOURNMENT; There being no further business to come before the meeting, it
was duly adjourned.
WAIVER AND By his signature to these minutes, each Councilman hereby waives
RATIFICATION:
notice of this meeting and confirms his affirmative vote to the actions
recorded in these minutes.
ATTEST:
" City ft erk�— =Zf,
APPROVED:
"Vice Mayor, acting as Mayor
J JJ
Norman Rowland
William L. Cargill"` ,,f— "
Paul D. Doolen
dz /Z' L
Horace S. Miller
t
L. J. (Lehane