02-16-1988 VC SP1-M~ ~ _.
MINUTES OF EMERGENCY SESSION
OF THE
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
HELD
TUESDAY, FEBRUARY 16, 1988
Present: Tom Valente, Mayor
V. A. Marks, M.D., Vice Mayor
Judy M. Pierman, President Pro Tem
Craig Mundt, Councilman
Raymond J. Howland, Village Manager
Herbert L. Gildan, Village Attorney
Iblores R. Walker, Village Clerk
Absent: Kenneth H. Mays, D.M.D., Councilman
Mayor Valente called the Emergency Session to order at 7:46 p.m. ROLL CALL
All members of the Council were present except Councilman Mays.
All members of the staff were present.
The reason for the Emergency Session is to discuss the PURPOSE OF
possibility of the Village suYxnitting a bid for the purchase of EMERGENCY
Seacoast Utilities, which bid must be at Kidder Peabody in SESSION
Chicago, Illinois tomorrow.
After discussion, Councilman Mundt moved that we offer to COUNCIL
purchase Seacoast Utilities as presented by staff and Merrill OFFER Tb
Lynch for abase purchase price of $44,718,000.00, with a future PURCHASE
contingent amount of $42,471,000.00. Further, that the SEACOAST
'
Statement on Public Interest made by Vice Mayor Marks at the UTILITIES
Public Hearing (copy of which is attached to the minutes of this
meeting) is also adopted as part of the factual determination of
the Village Council to bid to purchase Seacoast Utilities. The
motion was seconded by Vice Mayor Marks and passed unanimously.
There being no further business to cane before the Council, the ADJOURNMENT
meeting was adjourned at 8:12 p.m.
Minutes recorded by: ~-~ ~/~C._
IJOlores R. Walker; CMC, Village Clerk
1
~ ~ ~. a
STATEMENT REGARDING PROPOSED PURCHASE OF SEACGAST
UTILITIES BY THE VILLAGE OF NORTH PALM BEACH, FLORIDA
Pursuant to Chapter 180.301, Fla. Stat., the Village
of North Palm Beach prepares the following statement showing
that the purchase of Seacoast Utilities, Division of the John
D. and Catherine T. MacArthur FounBation, is in the public
interest. •
The Village's experience in water and sewer utility
operation per se has not existed. However, the Village is
familiar with the operation of Seacoast Utilities through
review of rate hearings in the past and through careful review
of the current utility operations. The Village further has
long-term employees who are familiar with and have had
substantial experience in water and sewer utility operation,
including the Village Manager, the Director of Public Services,
the Village Finance Director and the Village Attorney.
Furthermore, the Village of North Palm Beach would intend to
have the water and sewer utility operated by persons who are
experienced in such utility operation, including present
employees•of Seacoast Utilities.
The Village of North Palm Beach has. the financial
ability to provide the service in view of the existing rate
base, including customers and Developers, as well as the
structure of the acquisition of the Utility solely on the
revenue generated by the Utility being sufficient to cover the
costs of operating and maintaining the Utility, all general and
administrative expenses attributable thereto, costs of renewal
and replacement of Utility assets and cost of debt service to
acquire the Utility. The financing concept has been reviewed
by the Village Finance Department, by its financial advisors,
Merrill, Lynch, Pearce, Fenner & Smith, and by M.B.I. A., a
national bond insurance agency, who will only insure the
Utility if, in their opinion, it has a sound financial basis.
The Village of North Palm Beach would be the purchaser
of the Utility.
The Utility purchase is in the public interest of the
citizens of the Village of North Palm Beach in that it assures
the Village residents of continued quality water and sewer
service since Seacoast Utilities, as a privately owned entity,
provides all water and sewer service to the residents and
property of the Village of North Palm Beach.
The alternative to the purchase of Seacoast Utilities
by the Village of North Palm Beach could result in its acquisi-
. ,.,
tion by another municipality, which would have the power to
impose automatic surcharges on consumers within the Village of
North Palm Beach and thereby be contrary to the best interests
of the Village. The financial impact on utility customers if
the purchase is not made by the Village and is made by other
municipalities could be substantially negative.
The Village is satisfied that it is and will be able
to provide and maintain high quality-and cost effective utility
service should it acquire Seacoast Utilities.
This Statement is made pursuant to Chapter 180.301,
Fla. Stat., and it is intended to comply with the provisions
thereof.
i
7274G/de/clc/se