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04-12-57SpMtg 107 APRIL 12th, 1957. A Special Meeting of the City Council was held in the Council Chambers at 10:30 A.M., with Mayor George V. Warren in the Chair, City Manager W. E. Lawson Jr., City Attorney Harry T. Newett and the follow- ing Commissioners being present, Col. Du.~al G. Campbell, R. J. Holland, Martha K. Holland and Catherine E. Strong. City Manager Lawson read an Ordinance which he and the City At- torney had been requested to prepare, concerning possible granting of a franchise for operation of a Natural Gas Distribution System within the City of Delray Beach: AN ORDINANCE GHANTING A FHANCtIISE TO Tile GAS COMPANY, ITS SUCCESSOR AND ASSIGNS, TO" OPERATE AND MAINTAIN A GAS SYSTEM IN TIt~. CITY OF DELHAY BEACH, FLA., SETTING FORTH CONDITIONS ACCOMPANYING THE GRANT OF FHANCHISE~ PHOVIDING FOR CITY REGULATION OF TIlE GA~ SYSTEM; AND PRESCRIBING PENALTIES FOR THE VIOLA'£ION OF ITS PROVISIONS. The City Manager then read a revised "Letter of Intent", relating to a possible grant of franchise for distribution of natural gas within the City of Delray Beach, to Messrs. Raphael S. Roberts and Leonard C. Smyth, as Trustees for Sun Coast Gas Company, a corporation to be formed under the laws of the State of Florida. In the discussion which followed, concerning the proposed Ordin- ance, Couraissioner Campbell requested clarification of Section 6, (c); also Sec. 7; and warned the Commission of the wisdom for serious con- sideration being given to Section 14 pertaining to the provision for suitable indenmification for the City of Delray Beach, particularly in view of actual disastrous results, by gas explosions, in other parts of the country during recent years, with a specific minimum liability coverage of ~1,000,000.00, the actual coverage limitations to be determined by qualified parties and subject to the approval of the Commission. The Commissioner further referred to Section 19, stating that his previous request, made during the meetings held on March 21st and and April 8th, namely - ~the importance of a clause being incorpor- ated in any agreement which may possibly be entered into, to the ef- fect that the lowest rates and all benefits be made available to the City of Delray Beach that may be offered any other area in South Florida by Sun Coast Gas Company or by any other Natural Gas Distributor," be incorporated in said section. ~he City Attorney recommended that. the proposed Ordinance be attached to, and made a part of, the revised Let- ter of Intent. Commissioner Campbell moved that the "Letter of Intent", as a- mended by the City Manager and City Attorney and re-submitted to the Commission for consideration, be offered to Messrs. Roberts and Smyth, as Trustees for the Sun Coast Gas Company. Mr. M. R. Kays Jr., of the Florida Public Utilities Company (Flo- Gas) addressed the Council and requested that action on said motion be deferred until after next Thursday, at which time Florida Public Util- ities Company would be in a position to present a definite proposal and bid for such franchise. Replying to Conenissioner Campbell's request for figures and facts, Mr. Kays was unable to satisfactorily explain the delay in furnishing such vital and necessary information for the Commission's consideration. In reoly to Commissioner Campbell's questioning, Mr. Thomas C. Neeley Jr., of the Florida Public Utilities Company, stated that neither he, nor the said Utilities Company, had ever been requested by the City of Delray Beach to obtain an allotment of Gas for the City of Delray Beach, and that any allotment requested by the Florida Public Utilities Company, in its application to the Federal Power Commission, was not binding in any manner nor to any extent upon any municipality. 108 APRIL 12th, 1957. Commissioner Campbell further inquired of Mr. Neeley if, in applying to the Federal Power Commission for an allotment of Gas - 1. Was the present usage of Gas, by his Company's present con- sumers, taken into consideration in establishing an estimated allotment for this area. 2. Was the normal growth of the area considered at time of said a~plication to the Federal Power Commission, and 3. Was a sufficient additional supply of Gas applied for to meet the potential need of the area south of Lake Worth. To all these items, Mr. Neeley assured the Commissioner that recognition and consideration had been given prior to submitting an application for allotment of Gas. Mayor Warren, vacating the Chair, seconded the motion of Com- missioner Campbell and upon Call of Holl - Commissioners Campbell and Warren voted in favor thereof, Commissioners M. K. Holland and C. E. Strong were o~posed, and Commissioner R. J. Holland abstained from voting. Mr. Roberts, one of the Trustees for the Sun Coast Gas Company, indicated his belief that a tentative commitment had been made at the meeting held on April 8th, in that an amended letter of intent had been requested by the Commission, and asked for a reading of the min- utes for that mee$~ing as ,ertained to this matter. City Manager Lawson read the following "Excerpt" from said Min- utes, which clearly and definitely disclosed no such commitment having been made nor intimated; "'Commissioner Campbell moved that the City Attorney prepare. a revised Letter of Intent along with Messrs. Hoberts and Smyth and re-submit!same to the Council for consideration and study by the Council and the Financial Advisory Board. Motion was seconded by Commissioner H. J. Holland and upon Call of Holl - Commissioners Campbell, Holland, M. K. Holland and Mayor Warren voted in favor thereof, Co,.missioner Strong being opposed." Commissioner Campbell moved that, for the best interests of the City, which he was most concerned with at all times, any and all dis- cussion, with reference to the granting of a franchise for sale of natural gas within the corporate limits of the City of Delray Beach, be tabled until the second meeting in September, 1957. Motion was seconded by Commissioner R. J. Holland and upon Call of Holl - Com- missioners Dugal G. Campbell, R. J. Holland, M. K. Holland and C. E. Strong voted in favor thereof, Mayor George V. Warren abstaining. Meeting ad journed. /S/ R.D. l~orthing City Clerk APPR0 VED: MAYOR