85-07 vRESOLUTION NO. 85-7
A RESOLUTION PROPOSING TO EXTEND THE UTILITY SYSTEM
OF THE CITY OF ATLANTIC BEACH BY THE ACQUISITION OF
THE WATER AND SEWER SYSTEM NOW OWNED AND
OPERATED BY BUCCANEER SERVICE COMPANY, 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 assets of Buccaneer Service Company, Inc., through the
purchase of all of its stock and immediate liquidation of the corporation; 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 the assets of Buccaneer Service
Company, Inc., through the purchase of all of its stock and the immediate liquidation of
the corporation, 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
utility system;
b) the most recent available balance sheet for the utility system,
listing the assets and liabilities and clearly showing the amount of contributions-in-aid-of
construction and the accumulated depreciation thereon;
c) a statement of the existing rate base of the utility for regulatory
purposes;
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d) the physical condition of the utility 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 utility 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 the water and sewer
system presently owned and operated by Buccaneer Service Company, Inc., a more
particular description of which is set forth in the draft of the Stock Purchase Agreement
attached hereto as Exhibit "B". The proposed territory to be included in the project and
served by the acquired utility system consists of the proposed Water and Sewer District I
area, more particularly described in the Stock Purchase Agreement. The cost of acquiring
the project is the amount set forth in the Stock Purchase Agreement, which shall be
financed in part by the issuance of Water and Sewer District I Revenue Bonds of the City,
also more particularly described in the Stock Purchase Agreement.
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Section 4. A public hearing shall be held at 7:15 o'clock p.m. on April 8, 1985,
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 Water and Sewer District I, 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 (1983), an ordinance
approving the execution of the Stock Purchase Agreement, the issuance of the Bonds, and
the establishment of Water and Sewer District I, will be considered on second reading,
following such public hearing, but will not be finally enacted earlier than May 1, 1985.
Section 6. This resolution shall become effective immediately upon its
adoption.
Adopted on March 25 1985.
Approved as to form and correctness:
A A A La'
AityAttorney
a"or
Attest:
Welq-;-A2 e
City Clerk
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