03-21-57SpMtg MAtICH 21st, 1957.
A Special Meeting of the City Council had been called for 9:00
A. M., Mayor George V. Warren was in the Chair with only Commissioner
Dugal G. Campbell and City Manager W. E. Lawson, Jr., attending.
Messrs. Roberts and Smyth, interested in obtaining a Franchise
for Natural Gas Distribution in the Delray Beach Area, were asked by
Commissioner Campbell of *heir success in South Florida as to other
Franchise Agreements, and stated that they had been granted' a Fran-
chise in Pompano Beach and Oakland Park, and were to confer with the
Council in Boca Raton this P. M. , concerning a similar Franchise
Agreement.
Mr. Roberts inferred that April 21st was a dead line for effect-
ing such an agreement due to a time limit for allocation of a Gas Supply
from the sup~nlier.
Messrs. Roberts and Smyth f~ther advised that consumer rates were
controlled by the R. R. Public Utilities Commission in that a six per-
cent gain, over and above total investment, is all that is allowed, the
three major factors of investment being - Commodities, Equipment and
Operational Expense.
Commissioner Campbell informed these parties that any proposed
franchise should incorporate any and all benefits offered to other
municipalities and by any other Distributor along the East Coast of
Florid a.
Replying to City Manager Lawson's inquiry, Mr. Hoberts stated
that distribution should be available on or about June or July of 1958,
The City Manager advised those present that this item would appear on
the agenda for Mond.ay's regular meeting as no official action could be
taken at this time due to lack of a quorum, and, further, that a
ferendum election will be necessary to negotiate a Franchise Agreement.
The City Manager mentioned that possibly the City of Delray Beach
might be desirous of checking into the advisability of considering the
operation of a natural gas distribution utility. This concluded that
part of the meeting concerning ~ Natural Gas Franchise.
Mr. C. Weldon Evaul, representing the Financial Advisory Board,
was in attendance and Mr. Homer B. Scott, of Smith &rGillespie, reviewed
a revised Rate Schedule for Water Service which he had been requested to
prepare, along with a recommendation relative to the first phase of es-
tablishing an added Water Supply and Distribution Plant. There followed
a general discussion of the revised Rate Schedule and various adjustments
were tentatively agreed upon.
Mr. Scott advised the need for an established minimum Rate, in-
side the City limits, for all meter installations, reflecting a higher
basic rate for each meter of greater size, as well as the need for
equalization.
Commissioner Campbell suggested that the City Manager should put
into effect, as soon as possible, a revised Consumer Rate Schedule, and
that the rates for service and installation for "Outside the City Limits"
reflect a twenty-five percent increase over corresponding service with-
in the City. The Commissioner further stated the advisability of estab-
li,ahing a policy of constant monthly minimum meter charge.
Meeting Recessed Until 1:30 P.M.
Mr. Scott reviewed the recommendation of Smith & Gillespie con-
cerning the first phase of creating a Water Distribution Plant to be
located on the Northside of the City, and further stated that such a
proje, ct, accomplished in two phases, might result in approximately .3
of 1% added engineering and contingency costs over a complete project,
as originally outlined by Smith & Gillespie, to meet the need of the
City, being done in one ~hase.
MARCIt 21st, 1957.
.Hr. Scott info~med the Commission Members present that before
incurring any f u~ther expense in plans and procedures, that, the
City Manager be authorized to cause construction of two test wells
and recommended that qualified "test Well Contractors" be employed
to insure desired and necessary results. Secondly, an opinion should
be effected, immediately, for needed lands in the area in relation
to the test wells location, to be exercised in tile event of satis-
factory results of said test wells.
And finally, when desired location of Plant has been esta-
blished by virtue of satisfactory test well results, to solicit
the aid of local Real Estate Appraisers in obtaining acquisition of
necessary lands.
Mr. Scott further stated that Smith & Gillespie would gladly
cooperate and work with the City's Financial Advisory Board in
appointing a Fiscal Agent which should be acted upon as soon as
practicable, to avoid undue delay, and that Plant.operation should
be available in a~nroximately one year following establishment of
necessary funds and the issuance of supporting Contract.
Meeting ad journed.
/S/ R.D. Worthing
City Clerk