01/25/1954
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CITY COMMISSION MEETING
January 25. 1954
The City Commission of the City of Clearwater met in special session at City
Hall. MOnday, January 25, 1954, at 1:30 P.M. with the following members present:
Herbert M. Brown
John W. Bates
W. E. Strang, Jr.
Jack Ruesell
Guy L. Kennedy
Alao present were:
Mayor-Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
F. C. Middleton
Chas. M. Phillips
G. T. McClamma
S. Lickton
City Manager
City Attorney
Chief or Police
City Engineer
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The meeting was called to order by the Mayor who announced that the metting
had been called for the purpose of discussing the contract with reference to purchas-
ing water from the County. He stated that an offer in the form of a letter dated
January 19, 1954, had been submitted by Mr. C. E. Koch for the Mecea Water Service
Company offering to sell the City water at the rate of four cents per thousand
gallons. Mr. Koch who was present stated that his company was able to ,sell water
at a cost of one cent per thousand gallons less than the County due to che tact
that his company by doing its own financing would not have to pay interest on
borrowed money and also because his company would not have to bring the water a
long distance from the north end of the County. He estimated tha~ his company
could furnish the water within a six monthst period. When questioned as to the
amount of water he would be able to produce, he stated that his company owns nearly
3,000 acres which is available as a source of supply as compared to the Countyts
one and one half miles ot County highway right-of-way in the Mecca area. He said
he had made no stipulations as to the minimum amount in his proposal as he felt
sure there would be a sufficient demand for water. He also said tbat iC his olCer
received the approval of the Commission, he would have the entire area tested as
to its potential supply. He did not have a contract prepared and ready to submit
at this time. He summed up his proposal by saying that he proposes Co do anything
the County will do at a cost of one cent less per thousand gallons. Commissioner
Bates suggested that the Commission request Mr. Koch to submit a definite proposal
of what he will do along the lines that we have discussed and outlined. The other
members of the Commission concurred with Commissioner Batest suggestion that the
Commission request Mr. Koch to submit a formal contract proposal.
Regarding the proposed water contract with Pinellas County, the City Attorney
presented a letter to the Commission containing recommendations and comments from
the County Attorney and the City Attorney on the amendments suggested by the City
Commission meeting in executive session on January 21, 1954. The City Attorney's
letter is set out in the following pages of these minutes and by reference made a
. part hereof. The Commdssion discussed the various revisions and amendments to the
proposed water contract. Such amendments as were approved by the members of the
Commission were noted by the City Attorney for inclusion in the contract.
Commissioner Russell moved that the City Commission go on record that the water
contract as amended be temporarily approved, subject to amendment to embody the
suggestions or bond attorneys, and subject to further .amendment by the parties
prior to final adoption and slgning. Motion was seconded by Commissioner Bates
and carried unanimously.
The City Attorney read a letter from Mr. Lloyd S. Marks on behalf of his
clients, Mr. Stewart Golding and Mr. Simon Marks, requesting approval of assignment
of lease now held by Oscar and Mary Hendrick on City-owned property, part of Lot 10,
City Park Subdivision. upon which the Small Boat Marina Building is located. The
City Manager said that he approved the transfer of the lease. Commissioner Strang
moved that the assignment be approved and that the proper authorities be authorized
to execute the assignment. Motion was seconded by Commissioner Russell and carried
unanimously.
There being no further business to come before the Commission, the meeting
was adjourned at 4:03 P.M.
Attest:
~~
Mayor- omm ss one
;tff~ -
City Atf r and Clerk
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CITY COMMISSION MEETING
January 25, 1954
Mayor-Commissioner Herbert M. Brown
Commissioners: Jack Russell, W. E. Strang, Jr.
John W. Bates, Guy L. Kennedy
January 22, 1954
Gentlemen:
The City Commission will meet in Special Session on Monday, January 25, 1954,
at 1:)0 p.m. in the City Hall Auditorium for the purpose of discussing the contract
with rererence to purchasing water from the County.
Very truly yours
/s/ F. C. Middleton
City Manager
FCM:s
-----------------------------------~-----------~----~----~-------------~---------
Mayor-Commissioner Herbert M. Brown
Commissioners: Jack Russell, John W. Bates
W. E. Strang, Jr., Guy L. Kennedy
January 25, 1954
Gentlemen:
After the Executive Session o~ the City Commission on January 21, 1954, I
talked with the County Attorney about each of the questions regarding the water
contract raised at said Executive Session. The questions were six in number and
the following commentary constitutes the joint recommendation of the County
Attorney and myself regarding said questions:
1. The maximum number of gallons the County can be required to ~urnish
to the City during any single day of gallons. This figure was
set at 8,000,000 gallons by Mr. S. K. Keller, County Water Superintendent.
2. It is felt that an arbitration clause is not advisable for the
reason that it might constitute a delegation of governmental authority to
the arbitrators, which delegation is prohibited by law. This provision is
warranted in the City's contracts with individuals for leases and the like,
for functions of the City Commission in its propr.ietary capacity, but the
furnishing of water is an exercise of the City Commission's power in a
governmental capacity so that we ~eel a delegation of authority is not
authorized.
3. The word "downward" will be inserted in Paragraph 10 between the
words "adjustment" and "mutually".
4. The amount of time to be inserted in the blank space in Paragraph
14 was not discussed between the County Attorney and me, but I feel that it
would be "one year". In the event that during construction it was found that
the County"s program was under-financed, the City would suffer no damage
whatsoever for the reason that the City's credit is not pledged for the project,
and the City is not required to pay anything until the County actually starts
to furnish water. The financibility of the project is now receiving and will
continue to receive the primary attention o~ the County authorities, the
consulting Engineers, and the Bond Attorneys. It is their job to assure that
the project is financible and is actually financed adequately before
construction begins. I see no real danger that construction might be halted
because of lack of financing.
5. The 5th question had to do with the possible re-negotiation of a
lower rate, in the event that the County furnishes water to other cities and
by doing so lowers the over-all cost of water to all users, including the
City of Clearwater. During the initial period while the City is paying five
cents per thousand gallons, increased revenues of the County system will go
to the retirement of the revenue certificates, which will bring closer the
date when all the certific'ates are paid and when the City and County will
re-negotiate for furnishing water to the City, at the cost of furnishing it
to the City without cost of furnishing it to other users. In addition, the
five-cent rate is a low rate, and is the County's response to the City's
request ~or a fixed rate rather than for a rate based on uncertain costs.
It is next to impossible that furnishing of water to other users would reduce
the cost of furnishing water to the City below five cents per thousand gallons.
I think that the County is correct in feeling that the City should be allowed
to purchase water during the initial period, either on the basis o~ cost or
on the fixed rate basis, but not on both bases. I recommend that the City
accept the five-cent rate.
6. In regard to Paragraph 15, my only suggestion is that the words
"it is anticipated that", in the next to the last line thereof, be stricken
so that there is a positive statement that the system is to be operated at
cost. In my opinion the paragraph captures the intent of the Commissions by
saying as accurately as it is possible to say that the City is to get water
at cost upon any re-negotiation.
(Continued)
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CITY COMMISSION MEETING
January 25, 1954
(Continued)
Because the Commission may wish to make some change in the foregoing, I did
not embody these provisions into a new version or the contract; however, at the
Special Meeting on MondaYi January 25th, the City Commission may make such altera-
tions as it deems advisab e on this sheet, and then pass a motion that the water
contract as amended be temporarily approved, subject to amendment to embody the
suggestions of bond attorneys, and subject to further amendment by the parties
prior to final adoption and signing.
CMP:d
cc. Mr. F. C. Middleton, City Manager
Resp'ectfully,
ls/ Charles M. Phillips, Jr.
City Attorney
---------------------------------~--~---------------------------------------------
City Commission
City Hall
Clearwater, Florida
Gentlemen:
January 22, 1954
My clients, Mr. Stewart Golding and Mr. Simon Marks, are contemplating the purchase
of the building and the lease-hold interest or Oscar and ~~ry Hendrick, located
on Clearwater Beach, and known as the Small Boat Marina.
It is my understanding that the lease provides that it cannot be assigned without
the written consent of the City of Clearwater.
Attached, hereto, is a proposed consent to the assignment of this lease, which,
if approved, I would be very glad if you would authorize the proper officials to
execute the same so that this transaction can be consummated in a proper and legal
manner. My clients intend to continue the same general operation of the Small
Boat Marina with certain improvements, and also intend to spend some money in
beautifying the surroundings. They have long been impressed with the orderly growth
of the City of Clearwater and I am sure they will make desirable tenants for the
City.
Sincerely yours.
/s/ Lloyd S. Marks
Suite 407. Coachman Bldg.
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CTTY CONIMISSION ME�TING
January ti5, 1954
The City Coramission of the City crf Clearwater met in sp�cial session a� Ci,ty
Hall, blpnday, January 25, 1954., at 1:30 P,M. w3th the �oZlo�ving tnembers presentt
Herbert M. Brown
John W. Batea
W. E, Strang, Jr.
Jack Russell
Guy L. Kennedg
Also prasent wexe:
F, C. Mictdleton
C123s. T�I. PhilZips
G. T. McClamm�
S. Lickton
Maqor-Commissioner
Comm�ssioner
Comm3.ssioner
Commissioner
Comm3ssioxier
City Manager
City Attorney
Ghief a� Polioe
City Engineer
� ��
The meeting was called to order �y the Ma�+or who announced tha� the meeting
had been call�d for the purpose of disaussing the contracx with ref�rence to purchas-
ing water fram the County. He stated that an offer in the f`orm of a letter dated
January 1$, 1954, had been submitted bp Mr. C. E. Koch for the biecca Water Service
Compan? offering to sell the City water a� the rate of four cents per thousand
��llons. Mr, Koch who was present stated that his company was able to sell water
at a cost of` one cent per thousand gallons less than �he County due tio:`the fact
that his company by doing its own finan::ing would not ta.ave to pap interest on
borrowed money and alsc� because his companq would not have to bring the water a
long distance from the north end of the Countq. He estimated that his comp�,nq
coul.d furnish tbe water within a si.x months� period. When questioned as to the
amount o£ �+eater he would b� able to produce, h� s�ated that his company owns nearlp
3,000 acres which is availabTe as a source o£ supply as compared to th� Countyfs
one and on� half miles of County highwa� right-of-way in the Mecea area. He said
he had made no stipulations as to the minimwm amount in his proposal as he �elt
sure there wauld be a sufficient demand for water. He also said that 3f his o��Q�
received the approval of the Commiss3.on, he would have the entire area tested as
to its g�t��cial supply, He did r�ot have a contract prepared and ready to subm3�G
at this time. He summ�d up his proposal by saying that he prop�oses to do anything
the County will do at a eost of one cent less psr thousznd gallons. Cocmniasivner
Bates suggested that 'tne Comm3ssien requesti Nir. Koch to ssa.bmit a dsfinit�e proposal
a� what he will do alon� the lines that we have discussed and aut,litted. The other
members of the Commission concurred with Co�nissioner Batest suggestion that �hs
Commission request Mr. Koch to submit a formal contract proposal.
Regarding the proposed wa�er cantract vrith Pinellas County, the Citp Attorn�y
presen�ed a letter to the Commission containing recommer.dations and comments from
�k►e Gounty Attarney and the Gity Attornep on the amendmants suggested by �he Ci�y
Gommission meet3ng in executive session on January 21, 1934- The �i�;r Attorneyrs
lett�� is set out in ths follcwing pages of these mi.nubzs and hy ref�rence made a
part hereof. The Coromission discussed the vasious revisions and amendments to the
proposed water contract. Such amendments as r�*ere approved by the members of Che
Commi�sion were noted bp the C,ity Attorney for inclusian in the contract.
Commissioner Russell moved that the City Commission go on record tha� the tvater
cantract a� amended be temporarily approved, subject to amendmen� to embody the
suggestions of bond attorneys, and subject to further.amendment bp the par�ies
prior to fittal adoption and signing. Motion v�as seco�ded by Gommissioner Bates
and carrisd unanimously.
fihe �ity Attorney read a letter from Mr. T,].oyd S. h�arks o�� behalf o�' his
cl3ents, Mr. Stewar� Gol�iing and Mr. Simon Marks, requesting a�proval of assi�nment
of lease now held bp Oscar and P�fary Hendrick ott City-owned property, part of Lot 10,
City Park Subdivision, upon which the 5mali Boat Marina Building is Zocated. 3°he
City Manager said that he approv�d the transfer of tla8 iease. Commissioner Strang
mov�d that �he assignmert be approved and that the proper authorities be authorized
to executs the assignment. Motion tvas seconded by Commissione�• Russell and carried
unanimously.
Thers being no further business to come bei'ore the Commissi�n, the meeting
was adjourned at 4:03 P,Ma
A�t�st:
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City Audi r and C erk
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I�ayor- ommissione �
CTTY COMMISSION MEETING
January 25, 1951�
Mayor-Commissioner Herbert M, Brawn
Commissioners: Jack Ftussell, W. E. Strarg} Jr.
John W. Bates, Guy L. Kennedy
Gentlemen:
January 22, i954
`a y- ��
The City Comriission will. meet in Special Session on Monday, January 25, 1954,
at 1:30 p.m. in the City Hall Auditorium for the purpose of d3,scussing the contract
with xeferenca to purchasin� water from the Countp.
Very truly yours,
/s/ F. C. MiddZeton
FCM:s Ci�y Manager
Mayor-Commissioner Herbert M. Brown
Commissioners: Jack Russell, John W. Bates
W. E. Strang, Jr., Guy L. Kennedy
uantlemen:
January 25, 195�
After the Executive Session of the Citg Commission on �Ianuary 21, lgg4, �
talked with the County Attorney about each of the question5 regarding the water
contract raised at said Executive Session. The questions w�re six in nu�eBer and
the following commentary constitutes the joint recommendation of �he Gounty
Attorney and myself regarding said questions:
1. The maximum numYs�r of gal.lons the County can be required to furz�ish
to �he C�.ty d:uring any single clay of gallons. This figure was
set at $,000,000 gallons by Mr. S. K. Keller, County Water Sv,perintendent.
2. It is felt that an ar�itration clause is not advisable for �he
reason that it might constitute a delegatian of governmental sutnori.ty to
�he arbi�trators, which delegation is prohibited by law. This provision is
warranted in the City's contracts with individuals for leases and the like,
for functions of th� Gity Cpmmission in it5 prapr,ietary capacity, but the
furnishirg of water is an exercise of the City CommissionYs power in a
governmental capacity so that we feel a delegation of authoritp is not
authorized.
3. The word "downwardTM will be inserted in Paragraph 10 between the
words "ad justmentf� and 11mutuallytt.
4. The amount of time to be inserted in the blank space in Paragraph
1l� was not discussed bstween the Countp Attorney and me, but I feel that it
would be 'Tone year�T. Tn the event that during construction iG was found that
the County's program was und�r-iinanced, the City wQuld suffer no damage
whatsoever for the reason that the Citcy's credit is not pledged for tlie project,
and the City is not require� to pay anything unt3.1 the County actually s�arts
to furnish water. The financibility of the projec� is now receiving and will.
continue to receive the primary attention of the County autho�ities, the
consulting Engineers, and �he Bon3 Attorneys. It is their jab t� assure that
t�e project is fanancible and is 3ctually financed adequately before
constx'uctian begins. I see na real danger that construction might be halted
because of lack oi financing.
5. The 5th questian had to do with the possible re-negotiation of a
lower rate, in the event that the Count�r furnishes water to other cities and
by doing so lowers the over-a11 cost of water to all users, including �he
City of Clearwater. Dtiu�ing the initial period whil.e the City is paying five
cen�s per thousand gallons, increased revenues of the Count}T system rvill go
to the retirement of the revenue certi�xcates, which will bring closer the
date when a11 the certifiE'ates are paid and when the Gity and County will
z°e-negotiate for furnishing water to the Gity, at the cost of furnishing 3.t
to the City without cost of Surnishing it to other users. In additi�n, the
five-cent rate is a 1aw rate, and is the County's response to the City's
request for a fixed rate r�ther than for a rate based an uncertain costs.
It is next to impossible that furnishin� of water to other use�rs would reduce
the cost of furnishing water to the City below five cents per thousand gallons.
I think that the Gounty is correc� in feeling tr�at the City should be allowed
to purchase water during the i�,itial period, either on the basis of cost or
on the £ixed rate basis, but not on both bases. I recommend that the City
accept the five-cent rate.
b, In regard to P�ragraph 15, mp only suggestion is that the �vords
"it is anticipated thatTM, a.n the next to the last line thsreof, be strickan
so that there is a positive statement tha� �Che system is to be operated at
cost. In my opinion the paragraph captures the intent of the Commissions by
saying as accurately as it is possible to say that the Cit}* is to get water
at cost up�n any re-negotiation.
(Continued)
CZTY COMMTSSION MEE�ZNG
January 25, 1954
{Continued}
Aecause the Commission rnay wish to make some change in the foregoing, I did
not e�nbody these provisions into a new version of the contrac�t; however, at the
Special Meeting on Monday, January 25th, the City Commission map make such al�era-
tions as it deEms advisable on this sheet, and then pass a motion that the water
contract as amended be tempora^ily approved, subject �o amendmpnt to embody the
suggestions of bond attorneys, and subject to further amc:•n@ment by the parties
prior to final adoptian and signing.
Resgectfully,
CMP:d /s� Charles M. Phillips, Jr.
cc. Mr. F. C. Middleton, City Manager Gity Attorney
City Commission
City Hall
Clearwater, �lorida
Gentlemen:
3anuary 22, 195�.
3 .5�
My clients, Mr, Stewart Golding and Mr. Simon Marks, are contemplating the purchase
of the buil�i:ng and the J.ease-hold interest of Osear and Nary Hendrick, located
on Clearwater Beach, and known as the Small Eoat i4farina.
It is my understanding that the lease provides that it cannot be assigned without
the written consent of the City of Clearwater.
Attached, hereto, is a proposed conseni to the assignment of this lease, which,
if approved, I vrould be very gla� if you would authorize the pro�er oifici�ls to
execute the sarae so that this transactian can bP cansummated in a proper an3 1ega1
manner. My clients intend to cantinue the same general operation of the Small
Boat Marina with certain improvements, and also intend to spend some money in
beautifying the surraundings. They have long been impressed with the orderly groFrth
o�' the City of C].earwater and I a:�� sure they will make desirable ten%�nts for the
City.
Sincerely yours,
/s/ Lloyd �. Marks
Suite 1�07, Coachsnan Bldg.