Loading...
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