02-16-1988 VC PH1-M~.
MINUTES OF PUBLIC HEARING
OF THE
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
HELD
TUESDAY, FEBRUARY 16, 1988
Present: Tan 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. Gi.ldan, Village Attorney
Dolores R. Walker, Village Clerk
Absent: Kenneth H. Mays, D.M.D., Councilman
Mayor Valente called the Public Hearing to order at 7:00 p.m. ROLL CALL
All members of the Council were present except Councilman Mays.
All members of the staff were present except the Village Clerk
who arrived at 7:02 p.m.
The purpose of the Public Hearing is to hear the public PURPOSE OF
concerning the proposed acquisition of Seacoast Utilities, a PUBLIC HEARING
division of the John D. and Catherine T. MacArthur Foundation,
by the Village of North Palm Beach.
Notice of this Public Hearing was posted in at least four NOTICE OF
conspicuous places within the Village on February 12, 1988 PUBLIC HFARTNG
Mr. John McKUne, Gee & Jenson, made a presentation based on PRESENTATION BY
their engineering study of the ca~lete Seacoast system along GEE & JENSON
with the initial engineering report done by Bishop & Canpany.
Mr. Bradley Wendt, Merrill Lynch, made a presentation based on PRESENTATI~A BY
their financial analysis of Seacoast Utilities' ability to raise
- MERRILL LYNCH
the debt service and
revenues in order to successfully cover
yield a profit to the Village of North Palm Beach.
The following persons spoke in opposition to the proposed COMMENTS FROM
purchase of Seacoast Utilities: THE PUBLIC
Gordon Jerauld
700 Osprey Way
Manny Grinn
536 Greenway Drive
Jim Green
404 Inlet Road
These three persons felt that the Village could not run a utility
the scope of Seacoast efficiently.
Vice Mayor Marks read into the record a "Statement Regarding STATEMENT RE
Proposed Purchase of Seacoast Utilities by the Village of North PURCHASE OF SEA-
Palm Beach, Florida", a copy of which is attached to the minutes COAST BY VILLAGE
, of this meeting. READ IN7U RECORD
There being no further business to come before the Council, the ADJOURNMENT
Public Hearing was adjourned at 7:45 p.m.
Minutes recorded by~~~i~-~'""'° ~"-^~-~,~~@~
Iblores R. Walker, CMC, Village Clerk
... y
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.
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