CCMtg09-18-95WSMinLONG WOOD CITY COMMISSION
LONG WOOD CITY COMMISSION CHAMBERS
1"li \4. WARREN AVGNUB
LONGWOOD, FLORIDA
SLp'1'EMBER IS. 1995
Presens: Mayor Bill Winston
Deputy Nlnyor Jinr Czrrlw
Commissioner Ins Benson
Cotmnissianer Ron Smgem
Commissioner Annamarie Vacw (arc ved as 6:23 p.nt.)
W. Shelton Smith. Cty Administrator
Gealdine D. Zninbri. City Clerk
liichnrd S- "l eylor-1 r.. City Attorney
enadea E. Faucher. ir, viee presiaeot umw~
Adnntie Gulf Communities
Buddy F~~ 7ir- of Operations
~~elopment Corlt.
BabC s.l ,Inc.. o(LOngwood
1. CALL TO ORDER. Mayor Winston called a work session to order at 6:10 p.m.
DISCUSS ACQUISITION PROPOSAL-LONG WOOD UTILITIES, [NC
The Commission was advise) that the wnrpnny name had been changed to Utilities. Ina,
of Longwood.
Motion by Contnrissioner Sargent, s coded by Commissioner Benson, to
uspend the rn les. Carried by voice vote.
Mr. Smith introduced Mr. Charles G. Faucher. Ir., Vice Pruident of Utilities for Atlanric
Gulf Communities Mr- Canclier said he had addressed dte Consinisxion with respect to
In ood Utilities, Ina, asa prey vith regard to nn alternasive ro how the Cny
inigl~ strucwre a purchaxe of the systemeand specitiwlly, n not for profit organization. shat
would be the vehicle [or the aequi He said- nt dra e he bad calked abous dre
oinpmty being sold and shat, in tacs~itas haypened and a na nnl utility company has
purchased slre syste acrd is ndy in she yro of going through the adm
steps to finalize thnt However rshe option fora subseSuent sale wishin a limited rttine to
of fos profit organization still exis6. He :xid he still believed .vhnt he previously said.
rhos cussomers wan Id gas some benefits primnsily from having an amity owning it thncwnld
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avoid some expenses, i.c, ~ncoine tzxea and regulatory assessment feu to FSC
1-le explained that under private wnirol. lie believed an increase in rates could be justified
based on the existing revenues and it wouldn't be unreasonable to projera an increase than
ould be 3o to 60No. He continued saying the operation, if aoqufired by a not for profit
ould e Bally de the same bra signif'cant benefits mould ac o the City iisel[,
printarily6doing samethinggood for those ensiomers receiving thesmvice. Fat it.voulA also
provide flexible oplians with regard to rite Ciiys existing systeni,in that the two could ba
ombined. Combined ember by Elie City raking over the not [or profit oorporation or by the
not for profit company purchasing the airy system from die Ciry.
He explained that ii also freezes whatever rite potential purchase price is al wha~ever the
and at the rid of li when Cher andine debt she
title woitid pnss'to the City. "fbe City can eboose to waite~har period of time, 20 l0 30 years.
ould a celer the pro Bm. the ial a o[ Aebit reflec it day
purchase pnc Mr. Fmiehei aid,if she City believed tin's .vase reasonable.vay to and
rite proposelnlrias inerii_ the next step would be For the Commission to pass an inducement
esoluiion. Then. experts would be hired to get the paperwork prepared and titan one
adeliiional resolution would have ~a be approveU.
Mr Fancher, in response to questions posed. responded as follows.
Ulili~ies. Inc. of Longwood is a wholly owned subsidimy of Utilities, Inc., a company hxsul
in Northbrook Illinois. There is a provision in the purchase wntrau chat provides Eor
other sale within a appro e 12-month-period. Snid he repres tted Atlantic Gulf
who sold Ne uuliry Utilitiesx Inc, is not ofhcially repre rated here. bout he bas spoken to
them and they know that it is a possibility and the contract provides for this oootingeney.
Said rite mininmm purchase price for the utility would be $1.5 million plus nny expenditures
Wade for enpiml p.uchases. Snid there was no purchase price mentioned daring the prior
disenssiou wish the City and rhat the praaess won Id determine the price i_e., raking existing
caking o expen what is Ie0 to support debt s
aiti~lyi ~~ ~t < ~A~e i~o~or of pernTps l a~anideo~o~ ml a and rile l d,e or
professionals and a residual that becomes the purchase price- Longwood Utilities wa~ sold
to Utilities, I ne, far SS50 000.
Coininissioner Vacua arrived rtt this point io the meeting (6.Z". p.m )
Mr. Fanohcr continued responding to Questions as follows
Utiliti s Inc oP Longwood is capacity: how ,the tt land south o[ the
plant that ouid be arquired_ With ~espac oethe pro rathea ~, Mr. Fancher
said It waxuplnced In rite wntrna due io the feat that di slooption bad been disu~sseA with
the City prior to the sale and Atiamic won ld get part of that increase in the pnrehase price
if the not for profit sale cans executed- Whether ii would be a 20 or ~0-year-bond issued.
r otdd be determined after workin~thinugh thebond issue. after pas of the inducement
resolution, but prior to passage of a Final rerolution. The not for profit corporation would
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be xcpuiring cbe mility, Iciring, ecc and would have a boats of directors responsible fog
making policy deo;sians
Mr. Smith .vas asked his opinion with res7tect to the City sponsoring the zequisision and bow
ould awning its o.wn plats afieu the City. Mr Smicb said he believed ii was a good idea
if the City feels they ~~- a she sever business bm did nos believe is .von ld mutter
wzy or tl~e osber . . ~ ,~ ~ roes uos insend eo do anysbing with sewer Mr-Smith said
die Cisy could cake sb~ and pump ii co the wunty and weld develop the land. or
flozt more bonds and buy n_-__ land to zepmid Bce plane, or puiricase Sznlendo Utibsies,
the pare located in she City and perlinps sic ipso sbzs. He said ticcre were many diRerent
s dcas oou Id come loco piny and is would depend on imagination znd oircumsmnces
but did believe it .vould provide ebe fle~ibilicy.
In espon a que arding she need co ¢o m a reFerendmn. Mr Taylor said- in his
opinion. didn of belleoc char was necessary. zs cbe Cicy is bzcking bonds rhos ore non-
~ewuise and would no: be responsible it rbe bontls [ailed.
Mr. Ca~eher explained chat Adancic .vent fonvarcl with die sale of the utility as there .vas
a lot o! uncertainly wilb the Cicy. bur knew the sale wzs Aefinite.
Mr. Smith explained dmc zs a Hoc for profit wryorudon, it would be non similar w the wuy
the nursing Home is run and might never belong co she Cisy. However, Ibc City could at
some later ti Hie decide o pnreliase n nud at shzs Hole n would carne ender Public Works.
Wilh respect co caking a decision. Mayor Winssou said she it ou ld have co be
sciceduled co a regulzr ~neecing. With regzrd so baying fzcu'wcd fgurest/ Mr. Fanelier smid
be did uoc believe those figu res would de nvnilable at rhzt time. Buc said if cbe City wished
o pro eed. n rney would drrv El a ce<olmion to bring forward ~ ,o sbinugb the
appropriase seeps o
Mr. Smith was nskcd to prepare a report ludng [he udvzntages so she City of the proposal
presented by Mr. Canclier znd bong is co she Commission as zn agendz item.
Motion by Concncissioner Benson. s onded by Commissioner Saigenc to
adjourn. Carried by a voice vose_ Meeting adjourned ac approYimacely "1:00
William F_ Winston. Mayor
ATi T
Geraldine D. Zaint ~ k
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