88-21 v RESOLUTION NO. 88-21
A RESOLUTION PROPOSING TO EXTEND THE UTILITY SYSTEM
OF THE CITY OF ATLANTIC BEACH BY THE ACQUISITION OF
CERTAIN ASSETS OF THE OAK HARBOR WATER AND SEWER
SYSTEM NOW OWNED AND OPERATED BY ATLANTIC
UTILITIES OF JACKSONVILLE, INC., DESCRIBING THE
PROJECT AND ITS PURPOSE, THE PROPOSED TERRITORY TO
BE INCLUDED AND SERVED BY THE UTILITY, A GENERAL
DESCRIPTION OF BONDS TO BE ISSUED TO FINANCE THE
ACQUISITION, AND THE COST OF THE PROJECT; MAKING A
DETERMINATION THAT THE PURCHASE IS IN THE PUBLIC
INTEREST; CALLING FOR A PUBLIC HEARING ON SUCH
PROPOSAL; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Atlantic Beach proposes to extend its water and sewer
utility system by acquiring the Oak Harbor Water and Sewer System (the "Oak Harbor
System") now owned and operated by Atlantic Utilities of Jacksonville, Inc., through the
purchase of certain of the assets of the Oak Harbor System; and
WHEREAS, the City has made a careful study of the public interest in such an
acquisition; NOW THEREFORE
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ATLANTIC
BEACH, FLORIDA:
Section 1. The City hereby finds and determines that the extension of its
water and sewer utility system by the acquisition of certain of the assets of the Oak
Harbor System, now owned by Atlantic Utilities of Jacksonville, Inc., through the
purchase of certain of its assets, is in the public interest. The City has considered, at a
minimum, in making such determination, the following:
(a) the most recent available income and expense statement for the
Oak Harbor System;
(b) the most recent available balance sheet for the Oak Harbor
System, listing the assets and liabilities and clearly showing the amount of contributions-
in-aid-of construction and the accumulated depreciation thereon;
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(c) a statement of the existing rate base of the Oak Harbor System for
regulatory purposes;
(d) the physical condition of the Oak Harbor System facilities being
purchased;
(e) the reasonableness of the purchase price and the terms of
purchase;
(f) the impacts of the purchase on the customers of the Oak Harbor
System, both positive and negative;
(g) any additional investment required and the ability and willingness
of the City to make that investment;
(h) the alternatives to the purchase and the potential impact on utility
customers if the purchase is not made; and
(i) the ability of the City to provide and maintain high quality and
cost effective utility service.
Section 2. The City has prepared a statement showing that the purchase is in
the public interest, including a summary of the City's experience in water and sewer
utility operation and the showing of financial ability to provide the service, a preliminary
draft of which is attached as Exhibit "A" hereto.
Section 3. The utility to be extended is the City's existing water and sewer
utility system, and the proposed extension consists of acquisition of certain of the assets
of the Oak Harbor System presently owned and operated by Atlantic Utilities of
Jacksonville, Inc., a more particular description of which is set forth in the draft of the
Agreement of Purchase and Sale attached hereto as Exhibit "B". The proposed territory
to be included in the project and served by the acquired Oak Harbor System consists of
the area in the Oak Harbor subdivision, more particularly described in the Agreement of
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• Purchase and Sale. The cost of acquiring the project is the amount set forth in the
Agreement of Purchase and Sale, which shall be financed in part by the issuance of Oak
Harbor Water and Sewer District Revenue Bonds of the City, also more particularly
described in the Agreement of Purchase and Sale.
Section 4. A public hearing shall be held at 7:15 o'clock p.m. on November 14,
1988, at the City Commission chambers in City Hall, City of Atlantic Beach, Florida, at
which time all interested persons may be heard on the proposed acquisition, the proposed
financing, and the proposed establishment of Oak Harbor Water and Sewer District, in the
manner described herein and in the proposed ordinance relating to this subject which has
been introduced and passed on first reading at the same meeting as this resolution is
adopted.
Section 5. Pursuant to Section 180.04, Florida Statutes (1987), an ordinance
approving the execution of the Agreement of Purchase and Sale, the issuance of the
Bonds, and the establishment of Oak Harbor Water and Sewer District, will be considered
on second reading, following such public hearing, but will not be finally enacted earlier
than December 4, 1988.
Section 6. This resolution shall become effective immediately upon its
adoption.
Adopted on October 24, , 1988.
Approved as to form and correctness:
AA. - -
Ci y Attorney
Ma or
Attest:
City Clerk
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