04-05-85 v MINUTES OF THE COMMITTEE MEETING ON BUCCANEER UTILITIES
HELD AT THE CITY HALL ON APRIL 5, 1985 AT 7:00 P.M.
Mayor Howell called the meeting to order at 7:00 p.m. Those present were members
of the Committee, Mayor Howell, Commissioner Gulliford, City Manager Richard C.
Fellows, and City Attorney, Claude L. Mullis. Also present were Commissioners
Robert B. Cook, John W.Morris, and Catherine G. Van Ness; Jerome R. Strayve of
Buccaneer Utilities, and Mr. Robert Stubbs, Financial Advisor.
The Mayor announced the Committee was meeting for the purpose of discussing
the proposed price of Buccaneer Utility Co. if the city should proceed with the
purchase. He stated at the last meeting several items were discussed relative to
the possibility of deleting such items as the building, inventory, land, and the
interconnection of lines.
Following discussion, Mr. Strayve agreed to lower the price on certain items
based on the value Gee & Jenson placed on them. They are listed below:
Original Asking Price $3,900,000.00
To be deleted:
Building, Land, Inventory $432,000.00
Diversion in Inter-connections 168,000.00
Net Price $3,300,000.00
Difference in cost related to interest rate
differential (7.5% - 8.5%) 200,000.00
Revised offering price $3,100,000.00
Commissioner Morris advised the Committee they might want to consider the
possibility of abandoning the project entirely. He expressed the opinion that
was an option they all should consider in lieu of recent information received
from Mr. Addison of DER and EPA. Mr. Addison advised the city cannot charge one
and one-half (12) times rates for users outside the City of Atlantic Beach for
wastewater service because the City has accepted Federal grant money for the
system. He added that would bring into suspect as to how it would apply to
District I. There would have to be a ruling because the City owns a system that
is Federally funded. If the two systems were interconnected in any way, then for
sure the city would be under the Federal Regulation of only one equal rate for
equal service. Mayor Howell thanked him for the information and said that would
be discussed at the meeting of April 8, 1985.
Following discussion, the Mayor declared the meeting adjourned at 9:10 p.m.
ATTEST: William S. Howell
1/q/C4LAJ Mayor/Presiding Officer
(24
Adelaide R. Tucker