LETTER OF UNDERSTANDING-AUTHORIZATION & AGREEMENT
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Rorida
Power
July li!-, 1982
CORPOR'ATION
Mr. Anthony L. Shoemaker
City Manager
City of Clearwater
P. o. Box 4748
Clearwater, FL 33518
Dear Mr. Shoemaker:
LETTER OF UNDERSTANDING
During the 1964 to 1966 franchise negotiations between the City of Clearwater
and Florida Power Corporation, the future ownership, operation, and mainten-
ance of certain city-owned street light facilities was discussed at length. It
was ultimately agreed that Florida Power Corporation would purchase the city-
owned street light facilities for One Dollar ($1.00) and other valuable consider..;
ations. Benefit analyses presented to the City by Florida Power Corporation
during these negotiations illustrated a benefit accruing to the City as a result
of Florida Power Corporation's assumption of the ownership and maintenance of
the city-owned street light facilities.
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In order to clarify the relationship between the sale and purchase of the city-
owned street light facilities and the electric service franchise, Florida Power
Corporation proposes the following:
1. Florida Power Corporation will not charge the City of Clear-
water a fixture Charge prior to July 5, 1996 for the following
described street light facilities:
(a) The 1,220 mercury vapor luminaires and 1,235 poles
purchased by Florida Power Corporation from the City
of Clearwater between September 10, 1964 and
December 15, 1970.
(b) The 246 mercury vapor luminaires and 132 poles, which
the City of Clearwater made a contribution-in aid-of
construction prior to August, 1975.
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Mr. Anthony L. Shoemaker
July _, 1982
Page No. 2
2. After July 5, 1996, the then applicable street light rate will be
billed to the City.
3. There appears to have been a disagreement as to the applica-
bility of the maintenance charge portion of the Street Light
Rate since August, 1975 to the 1,220 mercury vapor luminaires
previously owned by the City. To resolve this lack of
agreement, Florida Power Corporation agrees to discontinue
the maintenance charge for the 1,220 mercury vapor lumin-
aires previously owned by the City. A maintenance charge
will not be charged for these luminaires until July 5, 1996.
The maintenance charges that have been paid by the City from
August, 1975 to date on these luminaires will be refunded as a
credit on the City's electric service bill.
4. Florida Power Corporation is presently involved in a conver-
sion program designed to convert all mercury vapor street
light luminaires to high pressure sodium luminaires. The
Company plans to complete this conversion program during the
next ten years. The previously city-owned street light
luminaires will be included in the conversion program. The
progress of the conversion program will be determined by the
economics of the situation and the Company's budgetary
requirements. If the Company converts the previously city-
owned luminaires in accordance with the provisions of the
Settlement Agreement filed in PSC Docket No. 810135-EU,
dated August 20, 1981, then no fixture charge or maintenance
charge will be billed the City for these luminaires prior to July
5, 1996.
If the City decides that the previously city-owned luminaires
should be converted to high pressure sodium luminaires before
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Mr. Anthony L. Shoemaker
July _, 1982
Page No. 3
the Company's planned conversion date, the City can request
that the Company make this conversion. However, in the
event that the City does request the early conversion of these
luminaires, the Company will begin billing the City both the
fixture and maintenance charges applicable for the newly
converted luminaires.
5. The City of Clearwater and Florida Power Corporation agree
that this Letter of Understanding clarifies previously disputed
terms of the Franchise Agreement as set forth in Municipal
Ordinance No. 1091, adopted July 5, 1966. City and Florida
Power Corporation further agree that this Letter of Under-
standing reflects their current understanding of the Franchise
Agreement as it relates to owning, operating, maintaining and
conversion of the aforementioned street lighting fixtures.
If the Letter of Understanding meets with your approval, please indicate your
acceptance on behalf of the City on the space provided below.
Very truly yours,
ClJ2.--'t.J~
Carl R. Collins
Vice President
Accepted on behalf of the
City. pf Clearv>~ this
LJlfuiay of 1982.
By
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1A."~'::)A..LT~ORlzJ.O" A.ND AGREEMENT
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WORK
Ii] AUTHORIZATION
DJOB ORDER
INUMBER
7654
CUSTOMER'S NAME/TRADE NAME
City of CleaTWlt.r
REPRESENTATIVE'S NAME
Hr. Max Battle
STREET ADDRESS
r. O. lox 4748
DESCRIPTIQN or- WORK
Clearwatar
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Cit En&1neer
STATE ZIP
lL 33518
CITY
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. 'I!JCONTRACTPRICES 12.586.00 DCOST
TERMS OF PA"/'MEN'Gr,. .
, f.J IHADYANCE
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EXPL.ANATION OF ANY OTHER,TERMS OF PAYMENT
DCOST P~,US 15%
DON OR BEFORE 20 DAYS
AFTER COMPL.ETION OF PROJEC1j'<
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OWNERSHIP OF
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PROJECT
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AGREEMENT
THE UN~RSIGNED HEREBY AU:ttiORIZES AND EMPL.OYSFLORIDA POWER CORPORATION TO PERFORM THE ABOVE JOB AND TO FURNISH
L.XBOR, N){CESSARY FACIL.ITIES OR EQUIPMENT, AND/OR MATERALS FOR THE ABOVE JOB AND AGREES TO PAY IN ACCORDANCE WITH
TERMS OF PAYMENT AS NOTED ABOVE.
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SIGN",TURE OF CUST6MEROR CUSTOMER'S AGENT
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AUTHORIZATION
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04/20/82
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Authorization and f~re.ment
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APPROVED:
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Ma yor- Commis s loner
rectness:
Date:
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