NATURAL GAS AGREEMENTS (038)
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SERVICE AGREEMENT
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FOR
INTERRUPTIBLE GAS SERVICE
THIS AGREEMENT, entered into this Jt day of ~dr-~~ ,1913 by and between
the CITY OF CLEARWATER, FLORIDA, a municipal corpo 'on, hereinafter called the
"Seller" and Clearwater Linen & Uniform SUQply. Inc.. hereinafter called the "Buyer",
WITNESSETH:
WHEREAS, The Buyer wishes to obtain the special gas rate provided herein for interruptible
gas service, and the Seller is willing to sell and deliver natural gas, when available, to the
Buyer:
NOW, THEREFORE, Seller and Buyer agree as follows:
1. The Buyer hereby agrees to accept gas service under the Interruptible service rate as
set forth in the Ordinances of the City of Clearwater, Florida and to install and maintain
an alternate fuel-supply system, in good working order, for all equipment and appliances
to be served with interruptible natural gas under this Agreement, during the life of this
Agreement, at Buyer's site located at 1724 Drew Street. Clearwater. Florida
Equipment without such standby apparatus shall not be serviced with gas under this
Agreement.
2, The Seller agrees to furnish an adequate supply of natural gas to aforesaid equipment and
appliances except when necessary to interrupt said supply as provided herein.
3. Whenever a curtailment of gas delivered hereunder is required, the Seller shall issue a
curtailment order to the Buyer and the time at which such curtailment shall take effect.
When restoration of service is permissible, Seller shall similarly issue a restoration order.
A curtailment order may be issued by verbal or written notice at least two hours in
advance of its effective time, except that if curtailment or interruption is occasioned by
an event of "force majeure" affecting the Seller's System, Seller shall be obligated to
give only such notice as is practical under the circumstances.
4. Gas taken by the Buyer under this Agreement by reason of Buyer's failure to comply
with a curtailment order shall be considered as over-run gas, and Buyer shall pay for
such over-run gas at the rate of $2.00 per therm, The Seller shall have a meter reading
taken at the effective time of a curtailment order, and any gas recorded on the meter after
said time and before restoration of service shall be considered as over-run gas.
5, All gas furnished by the Seller under the terms of this Agreement shall be separately
metered by metering equipment furnished by the Seller.
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The Buyer agrees L pay Seller for a minimum of 751 therms per calendar day
regardless of actual consumption, except that there shall be no minimum consumption
charge during the periods of curtailment, or when the, Buyer's gas requirement falls
below the minimum rate due to plant closings, strikes, or electrical curtailment to Buyer
from Buyer's electrical supplier.
Billing will be on a monthly basis, The current unit price per thenn, excluding franchise
fees and taxes, is $0,56 ,This unit price may be adjusted up or down to reflect
changes in the base rate for purchased gas furnished to Seller by its suppliers. The unit
price charged to the Buyer may also be changed by the Clearwater City Commission, but
only as approved for all interruptible gas customers of the System,
7, Buyer shall pay all fees collected for the State and the City of Clearwater
, which currently are 10 % City Utilities tax, NA % franchise fee,
1 % State Gross receipts tax adjustment, 6 % State sales tax and
-L-% County Sales Tax applicable to the first $5.000 in sales,
8. Gas service under this rate schedule shall be provided during an initial term of five (5)
years from the effective date of this Agreement. After the initial term, the Agreement
shall continue on a year-to-year basis, unless either party shall, at least ninety (90) days
prior to the end of any such yearly period, give the other party notice of its intention to
terminate the Service Agreement.
9, In consideration of the service and rate structure defined herein, Buyer agrees to
relinquish any claim Buyer might have for damage to any product, process or machinery
as a result of gas service interruption or curtailment pursuant to this Agreement.
10, It is the responsibility of the Buyer to notify the Clearwater Gas System immediately if
a gas main, gas service, or gas fitting is damaged, or suspected of being damaged, All
calls shall be directed to the Gas System's emeIgency number, which is 462-6633, day
or night, weekday or weekend, The Buyer shall not attempt to correct the problem,
(a) If the problem is a gas odor, the Buyer shall at once clear the room,
building or area of all occupants. Every practical means to eliminate any
source of ignition shall be used by the Buyer. This shall be accomplished
by preventing smoking, striking matches, the operating of electrical
switches, motors or other equipment (including telephones), or opening
furnace doors, etc, , which can cause a spark. If possible, the Buyer shall
cut off all electrical circuits at a remote source to eliminate operation of
automatic switches in the dangerous area, Safety flashlights designed for
use in hazardous atmospheres should be the only light used in such
emergencies,
(b) The Buyer shall immediately notify the emergency dispatcher for the Gas
System (telephone 462-6633) from a telephone remote from the area of the
leak The Buyer shall not attempt to correct the problem,
(c) The Buyer agrees to ensure that all employees are made aware of the
procedures required to be followed as stated above. Important telephone
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numLrs are reprinted below for the convenilnce of the Buyer,
GAS SYSTEM EMERGENCY
GAS SYSTEM ADMINISTRATIVE OFFICE
SALES/CUSTOMER BIlLING OFFICE
462-6633
462-6630
462-6600
(d) The telephone numbers set forth herein are subject to change without
notice,
1 L Special provisions to this Agreement, if any, are listed below:
None
12, This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns,
13, This Agreement shall become effective for all services used on or after the 1st
day of November , 19 92 ,
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly-
authorized officials on the date set forth above,
Recommended by the Clearwater Gas System:
CITY OF CLEARWATER, FLORIDA
correctness:
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Managing Directal & Executive Officer
Attest:.. <' c_
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Witness as to Buyer:
Print Name:
Print Name: L
Title: '\.L. \ ")
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Attest:
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BECEIVED
FEB 1 7 1993
C'TY CLERK DEPT.
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CITY OF CLEARWATER
Interoffice Correspondence Sheet
TO: Cyndie Goudeau, City Clerk
FROM: Chuck Warrington, Gas System Managing Director ~
COPIES: Betty Deptula, Ass!. City Manager; J, Terry Neenan, Gas Superintendent;
Sandy Barley, Gas Sales Manager; Al Galbraith, City Attorney;
Tom Madley, Accountant II
SUBJECT: INTERRUPTIBLE GAS SERVICE AGREEMENT - CLEARWATER LINEN
& UNIFORM SUPPLY, INC., 1724 DREW ST., CLEARWATER
DATE: February 12, 1993
Attached herewith is an executed original of the subject agreement for filing.
By copy to Tom Madley, I would request that he initiate a billing adjustment to remove the
minimum billing charges for the November billing. A copy of my memo of December 24th is
attached which documents the rationale for this removal and is now backed up by a signed
Service Agreement effective with the November cycle, Please send me documentation of the
amount of the credit so that I may pass it along to our customer. Please also change the name
on this account to "Clearwater Linen & Uniform Supply, Inc, , dba Sanitary Cleaners &
Laundry" ,
If you have additional questions on this, please call me.
CSW/sh
Attachment
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CGS
CITY OF CLEARWATER
Interoffice Correspondence Sheet
FROM:
Carole Greiner, Utility Customer Support Manager
. Chuck Warrington, Gas System Managing Director MJ
TO:
COPIES:
Terry Neenan, Gas Superintendent; Jim Lewin, Asst. Gas Superintendent; Sandy
Barley, Gas Sales Manager; Greg Smith, Gas Distribution Pipefitter; Tom
Madley, UtiL Cust. Support Accountant II
SUBJECT:
CLEARWATER LAUNDRY AND DRY CLEANERS - 1724 DREW STREET
AlC #4120333001
DATE:
December 24, 1992
As we discussed on Friday, December 18th, Clearwater Linen experienced a fire which shut
down this facility on October 22nd, Their Vice-President, William Taylor, informs me that they
are projecting to re-open the facility in mid January. Therefore, they are expecting an
approximate 3 month interruption of service. In order to accommodate this they have increased
the shifts and moved all of their cleaning workload to their facility at 601 Grand Central. As
you know we serve both of these facilities on our Interruptible rate,
Mr. Taylor called on December 17th to request a review of the Drew Street account and the fact
that we were imposing the 75 therm per day minimum. billing during this outage, Upon
investigation we found that this had in fact been done and conclude that it is improper since the
full load from the subject facility has been shifted to the Grand Central location. You will note
that the billing at the Grand Central facility increased 6,420 therms (from 16,460 therms last
year in December to 22,880 therms this year), Last year the Drew Street facility used 6,360
therms,
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We would appreciate your help in rebilling the subject account for only the 40 therms which
were recorded on the meter for the December billing. Please send me the revised bill for
transmittal to the customer. By copy of this memo to Greg Smith, I am asking that he waive
the minimum billing for this account through the February billing and instead only ensure that
the minimum bill that the Grand Centra1location is at least the sum of the two (2) individual
account minimums or 325 therms per day.
This will keep us whole while still providing reasonable relief to this customer who experienced
a truly abnormal business interruption as a result of the fire, Thank you in advance for your
cooperation in this matter. If you have any further questions on this, please call me,
CSW/sh