01-09-1961 - Informal/NSB
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MONDAY, JANUARY 9, 1961, AT 8'00 P.M., INT THE CITY MANAGER'S
OFFICE, NEW SMYRNA BEACH CITY HALL, AN INFORMAL MEETING WAS HELD
FOLLOWING THE REGULAR N.S.B. COMMISSION MEETING, BETWEEN THE
COMMISSION AND THE EDGEWATER CITY COUNCIL. ACTING N.S.B. MAYOR,
WILLIAM HATHAWAY AND EDGEWATER MAYOR CRAWFORD SHAEFFER LEO THE
DISCUSSION WHICH WAS AMICABLE AND ENLIGHTING.
MRS. DUANE, MR. GUNN, MR. HUGHES, MR. BRANNAN, THE PRESS AND
MR. J.G. MENUT, ACTING AS CONSULTING ENGINEER FOR EDGEWATER.
MAYOR SHAEFFER WAS INTRODUCED AND OPENED THE MEETING BY
STATING, "THE CITY OF EDGEWATER WOULD LIKE TO TERMINATE THE CONTRACT
WITH THE CITY OF NEW SMYRNA BEACH AMICABLY." HE THEN MADE REFERENCE
TO THE LETTER SENT THE COMMISSION BY THE COUNCIL, DATED SEPTEMBER
29, 1960. THIS HAD BEEN TABLED, HOWEVER, MAYOR HANNAH BONNET HAD MADE
A CALL ON MAYOR SCHAEFFER AT HIS HOlm, HE STATED.
EDGEWATER CONTINUED AND AS MAYOR SHAEFFER CALLED ON THE
COUNCILMENM REPRESENTING THE ZONES NUMERICALLY, THEY YIELDED TO
ZONE 4, COUNCILMAN DANA ARMSTRONG, WHO MADE A LENGTHLY STUDY OF
THE SITUATION SINCE LAST APRIL (1960).
THE PRESENT CONTRACT EXPIRES MAY 1, 1966. EDGEWATER RESIDENTS
WEST OF THE F.E.C.R.R. PAY NO CHARGE, HAVING FLORIDA POWER & LIGHT
THEY PAY $20.00 DEPOSIT SIGN A CONTRACT, AND RECEIVE 6% INTEREST ON
THIER DE POSIT.
COMMISSIONER YAMBOR WANTED TO KNOW EXACTLY WHAT PROBLEMS
EDGEWATER HAD--WHAT TROUBLES? HE THEN ASKED CITY ATTORNEY, FRED
BRANNON FOR A LEGAL RULING ABOUT THE TERM SELLING UTILITIES TO
EDGEWATER STATING SUCH A SALE WOULD REQUIRE 75% OF THE REGISTERED
FREEHOLDERS VOTE AND 70% OF THOSE VOTING WOULD HAVE TO BE IN FAVOR
AND THIS WAS AN IMPOSSIBILITY. AFTER COUNCILMAN ARMSTRONG QUOTED
FROU THE WEBSTER DICTIONARY ON DEFINITION OF UTILITY AS BEING THE
POWER, NOT INCLUDING THE MEANS BY WHICH IT IS CONVEYED SUCH AS POLES,
LINES ETC. THUS IT WOULD NOT BE A SALE OF UTILITIES, ONLY SUPPLIES
OR MEANS BY WHICH UTILITY IS CARRIED SUCH AS THE COMMISSION HAD
DONE EARLIER THAT NITE WHEN THEY EXCEPTED A BID FOR SCRAP AT THE
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POWER PLANT. SINCE MR. BRANNON DID NOT COMMENT AT THAT TIME THE
DISCUSSION MOVED ON.
MR. ARMSTRONG STATED THAT FIRST THE RATE DIFFERENCE BETWEEN FLORIDA
POWER & LIGHT AND N.S.B. WAS A PROBLEM, NEXT WAS LOW VOLTAGE'S, THIRD
PROBLEM WAS FUEL AND COMMODY COST N.S.B. 20t%, THAT THE PEOPLE
FELT THEY WERE BACK TO "TAXATION WITHOUT REPRESENTATION". FURTHER
THEY DID NOT FEEL N.S.B. COULD MEET EDGEWATER'S GROWING DEMANDS.
IF THEY COULD MEET IT NOW THEY WOULD NOT HAVE NEEDED TO PURCHASE
POWER FROM F.P.&L. ALSO N.S.B. PURCHASES AND RESELLS AT THEIR RATES
WHERE THEY DO NOT HAVE THE COSTS OF PRODUCING. EAST & WEST OF THE
RAILROAD HAVE SUCH DIFFERENT RATES THE NEIGHBORS COMPARE AND THIS
IS NOT GOOD. THEY ARE PAYING EXCESSIVE RATES WITHOUT INCLUDING
THE $45.00 MINIMUM CONNECTION FEE OR WITHOUT INCLUDING EXTENSION OF
LINES. STATING THE CASES OF HAROLD & TOM REED AND DON AND J.W.
GILLESPIE, AND AGAIN STATING F.P.&L. ONLY HAS THE $20.00 DEPOSIT
AND THE CONSUMER DRAWS 6% INTEREST ON THIS.
COMMISSIONER HATHAWAY STATED HE COULD SEE WHERE THE DROPPING
VOLTAGE AND LOSSES OF POWER WOULD BE IRRITATING.
MR. DUANE STATED THAT THE TROUBLE IN EDGEWATER WAS MORE F.P.&L.
THAN OURS, THAT N.S.B. HAD CONTACTED F.P.&L. AND THEY HAD FIXED. THAT
THEY HAD LATERIAL FUZEING AND TIME BREAKERS. THAT IT HAD TAKEN A WEEK
TO 10 DAYS TO LOCATE THE CONDITION AND CORRECT IT, THAT F.P.&L.
WAS MORE EXPENSIVE THAN MANUFACTURING OURSELVES. THAT THEY HAD
ONLY 14 LEGITIMATE COMPLAINTS AND ONLY 5 CASES NEEDED CORRECTION.
AT NO TIME HAD ANYTHING WRONG BEEN LEFT UNCORRECTED. ANYTIME WE
KNOW OF ANYTHING WE CAN POSSIBLY DO FOR EDGEWATER, WE DO---
COMMISSIONER HATHAWAY: IN THE EVENT THE LINES ARE SOLD HE WISHED
TO KNOW IF EDGEWATER WOULD GO INTO BUSSINESS FOR ITSELF OR
SELL THE FRANCHISE TO F.P.&L. THAT AS "SISTER CITIES': THEY SHOULD
BE ABLE TO LEAN ON EACH OTHER AS HAS WORKED OUT SO WELL IN OTHER CITIES
CASES LIKE THIS. ONCE A CITY IS IN THE CLUTCHES OF A COMPANY IT CAN
NEVER BE RELEASED. THINK CAREFULLY. ALTHOUGH YOU MIGHT NOT BE
RECEIVING EVERYTHING YOU SHOULD BE NOW, WITHIN THE NEXT 60DAYS IT WILL
BE MUCH BETTER CONTROL. IF YOU WILL BE IN BUSINESS FOR YOURSELF, O.K.
IF F.P.&L. COUNT ME OUT, BELIEVE YOU WOULD BE CREATING A SITUATION
BETWEEN THE CITIES THAT WOULD NEVER BE OVERCOME. I BELIEVE JOINT
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OWNERSHIP BEST HE FURTHER STATED.
COMMISSIONER BOLL, SAID IF PRIVATE COMPANY OWNED FRANCHISE THEY
WOULD BE REPRESENTED AT CITY MEETINGS, AND THEY HAD A PAR ON OPERATING
COSTS." THAT ORIGINALLY A CITIES ONLY WAY OF SAVING REVENUE WAS TO GO
INTO UTILITY BUSINESS WITH HOMESTEAD EXEMPTION COSTING THEM SO MUCH,
AND THAT .N.S.B. WAS IN THE FORTUNATE POSITION OF OWNING BOTH IT'S
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OWN POWSR & WATER SYSTEMS. STATUS OF THIS COMMUNITY IS IN A MOR~ FIRM
CONDITION THAN MOST OF FLORIDA.
MR. HUGHES QUOTED FIGURES ON FUEL AND COMMODY COSTa
20t% · 17.6% SINCE LAST APRIL (1960)
1956
F.P.&L. 22.5%
N . S . B . 20. 5%'
1959-60 REBATE AS PER CONTRACT ON UTILITY SALES, NOT UTILITY TAX
$10,475.00 ESTIMATED 1960-61 $11,550.00
1959-60 , $19,856.79 (?)
COUNCILMAN GEORGE BECK STATED HE REMEMBERED EVERYTHI~G ABOUT THE
UTILITY $8,750.00
POSSUM CLUB. HE SAID HE PAID $2,600.00 IN UTILITY BILLS IN THE
THIRTEEN YEARS HE'D LIVED IN EDGEWATER UNDER N.S.B. POWER, AND HAD HE
HAD F.P.&L., THIS ENTIRE TIME HE WOULD HAVE SAVED $700.00. THAT THE
CITIZENS OF EDGEWATER ARE ENTITLED TO A REDUCTION IN RATES AND NOT
HELPING N.S.B. WITH THIER WATER PLANT. THIS BROUGHT SOME COMMENT FROM
COMMISSIONER BOLL.
COUNCILMAM ARMSTRONGa F.P.&L. 30% LOWER IN SOME CASES
MR. BRANNON STATED HE HAD BEEN EDGEWATER CITY ATTORNEY AT THE
TIME OF THE ORIGINAL CONTRACT AND FELT IT BETTER THAN ANY HE HAD
SEEN FOR THE CITY. EDGEWATER MAKING 10% PROFIT TO N.S.B.'S 20% PROFIT.
RE-ADJUSTED IN 1958. 2CUTS -- ONE COMMERCIAL, ONE RESIDENTIAL, ONE
RAISE IN 1956 or 57 --- SINCE 1949 .
MAYOR SHAEFFER THAN QUOTED WITH COUNCILMAN ARMSTRONG THE DELAND
RATES.
COMMISSIONER HATHAWAY, IN A FEW WEEKS NOW NEW ENGINES WILL BE ON
THE LINE. F.P.&L. CIRCUITS WILL STILL BE ON BUT NOT IN REGULAR USE,
AND THAT SO WITHIN 90 DAYS THE PROPER INCREASE SHOULD BE MAna. THAT
N.S.B. WOULD DISCUSS WITH ENGINEERS AND SEE IF RATE AND VOLTAGE
ADJUSTMENT CAN BE MADE. MR. DUANE STATED THAT THE $45.00 CHARGE was
ACTUAL COST OF METER, METER PAN AND WIRE. THAT THEY FAVOR 3 PHASE
USERS SINCE THEY ARE LARGEST USERS. THAT N.S.B. HAD LOST $37,000.00
ON LINES FROM "DONNA"
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MAYOR SHAEFFER THAN ASKED FOR AN ADJUSTMENT FOR THE 7 DAYS THAT
STREET LIGHTS ALONG HIGHWAY U.S.1 WERE OFF FOLLOWING "DONNA". F.P.
&L. HAS ALREADY GIVEN EDGEWATER AN ADJUSTMENT AS HAS THE TELEPHONE CO.
COST $5.00 PER DAY PER LIGHT, $1.42 OF THAT PROFIT.
COMMISSIONER BOLL TRIED TO CHANGE SUBJECT BY BRINGING UP THe BRIDGE
OVER THE COUNTY CANAL ON RIVERSIDE DR. QUOTED $7,200.00 FROM EACH CITY
tJIIX8XX* ( HARRIS SAXTON ) AND SHAEFFER SAID NO ONLY $5,000.00.
eOMMISSIONER HATHAWAY THAN TOLD MR. GUNN TO PLACE ON THE ADGENDA
OF THE NEXT REGULAR N.S.B. COMMISSION MEETING AN ADJUSTMENT ON U.S.1
LIGHTS WITH THE AGREEMENT OF ALL PRESENT, ALSO ON THE ADGENDA WILL BE
A CORRECTION OF ORDINANCES GOVERNING FEE AND CHARGES, THERE WAS NO
ACTION ON THIS MATTER. COMMISSIONER HATHAWAY. COMMISSIONERS OBLIGATIONS
ARE JUST AS GREAT TO EDGEWATER RESIDENTS IN MATTERS CONCERNING
POWER AS TO RESIDENTS OF N.S.B.
IT WAS AGREED TO MEET AGAIN IN 90 DAYS (THERE NEVER HAS BEEN A
MEETING SINCE THEN),AND THAT ALL WOULD BE DONE POSSIBLE IN THAT PERIOD
TO CORRECT PROBLEMS AND THINGS DISCUSSED. MAYOR SHAEFFER COMPLIMENTED
MR. DUANE ON HIS EXCELLENT SERVICE TO EDGEWATER AND IT'S CITIZENS.
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