NATURAL GAS REDEFINED TERRITORY FINANCIAL AGREEMENTNATURAL GAS REDEFINED TERRITORY FINANCIAL AGREEMENT
Asturia Subdivision - Pasco County
This Agreement is made and entered into as of February 18, 2016, by and
between Peoples Gas System, a division of Tampa Electric Company (successor by
merger to Peoples Gas System, Inc.), a Florida corporation ( "PGS "), and the City of
Clearwater, a Florida municipality (the "City"), d /b /a Clearwater Gas System
( "CGS "). PGS and CGS are sometimes referred to hereinafter individually as a
"Party", or collectively as the "Parties ".
WHEREAS, the Parties have jointly agreed to redefine the easterly Pasco
County natural gas service territorial boundaries as reflected in Exhibits "A"
and "C ", attached hereto and incorporated herein ( "Redefined Territory "), to
allow CGS to serve all of the new Asturia Subdivision ( "Asturia "); and
WHEREAS, CGS is willing to purchase the rights to serve those
certain lots within Asturia (as more particularly described herein) and PGS is
willing to transfer the right to serve said lots to CGS; and
WHEREAS, to that end, the Parties are actively seeking the
approval by the Florida Public Service Commission ( "FPSC "), which has
jurisdiction over natural gas territories in Florida, of an amendment to the
existing Territorial Agreement between the Parties to memorialize the
Redefined Territory (the "FPSC Territory Amendment "); and
WHEREAS, PGS is constructing, at its expense, a pipeline
to the south of Asturia in order to serve the area and provide CGS with gas
service at the natural gas interconnect along State Road 54 in Pasco County
(the "Pasco Pipeline "), so that CGS may provide reliable service to the
customers of Asturia, among others.
NOW, THEREFORE, in consideration of the premises and
the mutual covenants and agreements contained herein, the Parties hereto,
intending to be legally bound, hereby agree as follows:
1. The above recitals are true and correct and are incorporated herein as if
restated in their entirety.
2. Obligations of the Parties.
a. CGS shall purchase the rights to provide natural gas service to three
hundred eighty eight (388) lots on the eastern side of the Asturia
Subdivision as reflected in Exhibit "C" in exchange for payment to PGS in
the amount of One Thousand Seven Hundred and xx /100 Dollars
($1,700.00) per lot, totaling the amount of Six Hundred Fifty -Nine
Thousand Six Hundred and xx /100 Dollars ($659,600.00) ( "Lot
Purchase Price ").
b. CGS shall pay PGS the Lot Purchase Price in two installments as
described below:
o The First Installment of Three Hundred Twenty -Nine Thousand
Eight Hundred and xx /100 Dollars ($329,800.00) will be
invoiced by PGS to CGS at least thirty (30) calendar days prior to
the payment due date, and shall be paid on or before March 1,
2
2016. If the FPSC Territory Amendment is not approved by the
FPSC, PGS shall refund the full amount of the First Installment to
GGS within fifteen (15) days following the date on which an
order ' of the FPSC denying approval of the FPSC Territory
Amendment becomes final.
o The Second Installment of Three Hundred Twenty -Nine
Thousand Eight Hundred and xx /100 Dollars ($329,800.00) will
be invoiced by PGS to CGS at least thirty (30) calendar days prior
to the payment due date and shall be paid on or before
November 1, 2016. Approval by the FPSC of the FPSC Territory
Amendment shall be a condition precedent to CGS's payment of
the Second Installment.
c. CGS will permit and construct, at its expense, the interconnect along
State Road 54 (the "Asturia Connection Point ") where the CGS and PGS
lines meet just south of Asturia, except that PGS will install its metering
equipment for the flow to the east.
d. Each Party will purchase any natural gas flow through the Asturia
Connection Point into its respective territory at the Asturia Connection
Point in accordance with that certain Amended and Restated Natural
Gas Service Agreement (the "Interconnect Agreement ") , entered into by
the Parties as of even date herewith.
e. PGS shall construct at its expense a pipeline (the "Pasco Pipeline ")
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approximately 1.5 miles in length along State Road 54 from just west of
the Suncoast Expressway to connect to CGS's facilities at the Asturia
Connection Point just south of Asturia, to provide interconnect service
to CGS as needed from time to time. PGS may also receive gas from CGS
into PGS territory as needed and agreed to by the Parties.
f. PGS and CGS shall cooperate and, perform all functions necessary,
respectively, and execute any and all documents necessary to process
and submit the FPSC Territory Amendment (and related documents) to
the FPSC as expeditiously as possible.
3. Indemnification. The City shall at all times indemnify, defend and hold PGS
harmless from or on account of claims, losses, injuries or damages, received or
sustained by any person or persons during or on account of any negligent work
or operations engaged in by City in connection with the services provided
pursuant to this Agreement; or by or in consequence of any negligence,
excluding the sole negligence of PGS, in connection with same; or by or on
account of the use of any improper materials or by or on account of any
negligent act or omission of City, its agents, servants, or contractors. City agrees
to defend, indemnify and save harmless PGS against liability arising from or
based upon any violation of any Federal, State, County or Municipal law,
ordinance or regulation by City, its agents, servants, employees or contractors.
This indemnification provision obligates the City to defend PGS from any liability
claims and all suits and actions that may be brought against PGS resulting from
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the sole negligence of City. City shall provide for PGS's defense with outside
counsel reasonably acceptable to City by paying for all attorneys' fees, costs and
trial expenses. City's obligation to defend PGS for the acts or omissions of City,
its servants, employees or contractors shall be limited to the extent provided in §
768.28, Florida Statutes. Notwithstanding anything to the contrary contained
herein, this indemnification provision shall not be construed as a waiver of any
immunity from or limitation of liability to which City is entitled pursuant to
§768.28, Florida Statutes. Furthermore, this provision is not intended to nor
shall it be interpreted as limiting or in any way affecting any defense City may
have under§ 768.28, Florida Statutes and is not intended to and shall not be
interpreted to alter the extent of City's waiver of sovereign immunity under §
768.28, Florida Statutes. The Parties to this Agreement specifically agree to be
fully responsible for their own acts of negligence and for the acts of negligence of
their respective agents when acting within the scope of their employment, and
agree to be liable for any damages resulting from said negligence. Nothing
herein shall be construed as consent by either Party to be sued by third parties
in any manner arising out of this Agreement.
PGS shall at all times indemnify, defend and hold the City harmless from or
on account of any claims, losses, injuries or damages, received or sustained by
any person during or on account of any negligent work or operations engaged in
by PGS in connection with the services provided pursuant to this Agreement; or
by or in consequence of any negligence, excluding the sole negligence of City, in
5
connection with same; or by or on account of the use of any improper materials
or by or on account of any negligent act or omission of PGS, its agents, servants,
or contractors. PGS agrees to defend, indemnify and save harmless City against
liability arising from or based upon any violation of Federal, State, County or
Municipal law, ordinance or regulation by PGS, its agents, servants, employees or
contractors. This indemnification provision obligates PGS to defend City from
any and all liability claims and all suits and actions that may be brought against
City resulting from the sole negligence of PGS. PGS shall provide for City's
defense with outside counsel reasonably acceptable to PGS by paying for all
attorneys' fees, costs and trial expenses.
4. Limitation of Liability.
A. No Consequential or Indirect Damages. IN NO EVENT SHALL
EITHER PARTY BE LIABLE UNDER THIS AGREEMENT TO THE OTHER PARTY OR
ANY THIRD PARTY FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL,
EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR
REVENUES OR DIMINUTION IN VALUE, ARISING OUT OF, OR RELATING TO,
AND /OR IN CONNECTION WITH ANY BREACH OF THIS AGREEMENT,
REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B)
WHETHER OR NOT IT WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES
AND (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR
OTHERWISE) UPON WHICH THE CLAIM IS BASED.
B. Maximum Liability. IN NO EVENT SHALL PGS'S AGGREGATE
LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER
ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING
NEGLIGENCE) OR OTHERWISE, EXCEED AN AMOUNT EQUAL TO THE LOT
PURCHASE PRICE.
C. If Remedy Fails Essential Purpose. THE LIMITATION OF LIABILITY
PROVISIONS SET FORTH IN THIS SECTION SHALL APPLY EVEN IF THE NON -
BREACHING PARTY'S REMEDIES UNDER THIS AGREEMENT FAIL OF THEIR
ESSENTIAL PURPOSE.
6
D. Each Party acknowledges and agrees that the Parties entered into
this Agreement in reliance upon the limitations of liability set forth in this
Section, that the same reflect an allocation of risk between the Parties (including
the risk that a contract remedy may fail of its essential purpose and cause
consequential loss), and that the same form an essential basis of the bargain
between the Parties.
Miscellaneous provisions.
5. The Parties agree to comply with all applicable Federal, State, and local laws,
regulations and ordinances with respect to each Party's obligations hereunder.
6. Notices. Any notices required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been given if delivered by hand,
delivered by recognized overnight courier (such as Federal express) or received
by certified or registered mail, return receipt requested, in a postage prepaid
envelope, and addressed as follows:
If to Peoples: Peoples Gas System
Attn: Vice - President, Operations
702 North Franklin Street
Tampa, FL 33602
(813) 228 -4298
with copy to: Peoples Gas System
Attn: General Counsel
702 North Franklin Street
Tampa, FL 33602
(813) 228 -1328
If to Clearwater Gas: Clearwater Gas System
Attn: Gas System Managing Director
400 North Myrtle Avenue
Clearwater, F L 3 3 7 5 5
(727) 562 -4901
7
with copy to: Office of City Attorney
Attn: City Attorney
P.O. Box 4748
Clearwater, FL 33758
(727) 562 -4010
Notices personally delivered or sent by overnight courier shall be deemed given
on the date of delivery and notices mailed in accordance with the foregoing shall
be deemed given on the date of delivery, provided the return receipt is received.
7. Construction. This Agreement shall be governed by, and construed and enforced
in accordance with the laws of the State of Florida. Each Party to this Agreement
has participated fully in the negotiation and preparation hereof and, accordingly;
this Agreement shall not be more strictly construed against either of the Parties
hereto. In construing this Agreement, the singular shall be held to include the
plural, the plural shall be held to include the singular and the use of any gender
shall be held to include every other gender.
8. Captions. The captions of the various paragraphs of this Agreement are inserted
for the purpose of convenient reference only and shall not affect the
construction or interpretation to be given any of the provisions hereof or be
deemed in any manner to define, limit, modify or prescribe the scope or intent of
this Agreement or any provision hereof.
9. Severability. If any term or provision of this Agreement shall be determined by
appropriate judicial authority to be illegal or otherwise invalid, such provision
shall be given its nearest legal meaning or be construed as deleted as such
authority determines, and the remainder of this Agreement shall be construed
8
with full force and effect.
10. Counterparts. This Agreement may be executed in any number of counterparts,
each of which, when executed and delivered, shall be an original, but all
counterparts shall together constitute one and the same instrument.
11. Assignability. Any entity which shall merge or consolidate with either Party, or
acquire by purchase substantially all of the assets of either Party, shall be subject
to the obligations of its predecessor under this Agreement, and either Party may
assign this Agreement to such successor -in- interest or Affiliate provided such
assignee assumes in writing the obligations of its predecessor hereunder.
Except as set forth in this paragraph, neither Party shall assign this Agreement,
or its rights and obligations hereunder, without the prior written consent of the
other Party, and no assignment or transfer of this Agreement shall relieve either
Party of any obligations to the other Party incurred prior to such assignment or
transfer. For purposes of this Agreement, the term "Affiliate" shall mean any
entity that controls, is controlled by, or is under common control with, PGS.
12. Entire Agreement. This Agreement constitutes the entire understanding and
agreement between the Parties and may not be changed, altered or modified
except by and instrument in writing signed by the Parties. This Agreement shall
be binding upon the Parties hereto and their respective successors and assigns.
[signature page follows]
9
IN WITNESS WHEREOF, this agreement is executed as of this 18th day of
February, 2016.
Gceoyle t c \e65
George N. Cretekos
Mayor
PEOPLES GAS SYSTEM, a division
of Tampa Electric Company
By:
Gordon L. Gillette
President
CLEARWATER GAS SYSTEM/
CITY OF CLEARWATER, FLORIDA
By:
By:
Approved as to form: Attest:
Laura Mahony
Assistant City Attorney
10
Charles S. Warrin: '.n, Jr.
Managing Director
Clearwater Gas System
WkQQ1,444.LA . Utt44Ac.
William B. Horne II
City Manager
Rosemarie Call
City Clerk
THIRD REVISED EXHIBIT A
Clearwater Gas System /Peoples Gas System Pasco County Territorial Map
,AR
PAYAN
IL n'
A
302416 25.16
272416 262419 252416 392419
262419 27 19
352416
352417
N
042516 s, 932616
N SR 52°-'
ONF
092516 .2516
PAT ST m1
012516 062517
'14�KE'1�
52.50 Pples has ' ystem 16
Pasco County Se ice A ea
AA95 OOIOOt TA
L-0 471
IS 943516 8632518
03 SR
0.17 r
52
06251E
33.19 04 to
112516 122516 07.17 98.17
51001
092519 10.19
52
16 x J 16 I 152816
ONE NO
i NONE
212576 222516
CHIP LN
182517
pP
5E
2 16
242516
m (GLEN OAK AU;
IF 162515
V7fWDa
H,i,VANPN`'
202517 21.17
2516
23 322516
052616 04.6
ON
NE-
20820
16 282516 I 27.16
wvD
2516 352516
DECUBEL IS RD
DUSTY LA
O3xt6 022618
1022616 PlATM�t.,b
I I
97.16
05261590
9.17
ROG
VBE L1
12517 322617
NO E
p6817C -a�vat
162619 t5 -19
Serenov
Bou
`.,CEYDa (See Exhibit B)
233517 232517 262613
19 212519 92.19
282619 n 10
9.16
DR
TIKI DR
252615 302616
172816 re2616
297616 212616
153516
122616
14x18 13x76
ONE
222616
.2616
SR 54
542616
232617
282616 272616
262616 J 252616
2926„
R54 �s45a
4SR54''57050
S
2 s.
NE
32.16 332616
Pa R Coun
362616
332617 382617
0.,15
(POE)
LOTS BLVD
GSgale
Corridor
LAkFDR i
3 .322676. 332618 342618
2626.
4'KKI7N EAGLE
Pinellas County
Hillsborough County
042619 03
093619 10 19
Peoples G s System,—
l -E- EPTEpasco County ervice Area
1995 Origin I Territory
202513 212610 229419
HAORF OR
322419
-or
'Q2'D
572619 I 292610
�1.
SR Sd
26x16 .x16
3
LEONARD RD
II 352610
See EXHIBIT C
Asturia Subdivision
9
32x19 332619 34.19
COUNTY LINE RD
12 -28 -2015
EXHIBIT C
Behnke Ranch Property
Asturia Subdivision in Pasco County
Clearwater Gas System & TECO Peoples Gas Jointly Agreed Split of Lots
Between Sections 25 & 26, Township 26 South and Range 17 East
SFH 65 SFH55 SFH55
(TND) (Conventional)
PGS 58 140 23
SFH45 SFH36 TH # of Units Exchanged
(Given)
388
25 15 127
Number of Units Acquired by CGS 388
Lots per Phase
1D 7
2A 41
2B 82
3 87
4 171
Total 388
Section, Township
& Range Line
10 -22 -2015
Section, Township
& Range
ARCEL\
HASE 1A
PARCEL\
PHASE 10
CommerciaVOffice /Multife m ily
11.7 ac
Phasing and Product Summary
Sin . le Family Residential Uses
55 foot wide - TND Front Load
45 foot wide - TND Alley Load
1A
50
36 foot wide - TND Alley Load
55 foot wide - Conventional
65 foot wide - Conventional
Townhomes
Totals
18
Phase Identification
16 1C 1D 2A 2B 3
0 0 6 0 0
4 Totals
23 0 0
18 0 0 14 0 0
0 32 38 0 83 51
6 10 32 0 0 31 0
72
66
52
254
0 0 0 0 0 0 36
27 106
91 127
92 42 70 43 83 82 94
171 677
Parcel\Phase Identification
CommsrciaUMultifamily Uses
5
6 7
CommJOf loos or Multifamily
190,000 sf or 190,000 sf or
440 units 440 units
8
190,000 sf or
440 units
Light IndustrisVO(8oe•
IMMO
Figures will not exceed the maximum allowable by the MPUD.
Hines
FLORIDA DESIGN
CONSULTANTS, INC.
— THINK R. ACHIEVE IT --
RAYSOR
Transportation Consulting
To% EngMning
Dwvbo+imr Support
PRoSSERC
100,000 sf
Existing CGS /PGS
Territorial Boundary
(see exhibit A)
Proposed
Interconnect
Proposed PGS main
CGS & PGS
Agreed Line
Existing CGS /PGS
Territorial Boundary
(see exhibit A)
CGS & PGS
Agreed Line
Phasing and Product Summary Map
300 0 '50 309
03 -06-14
This pion is conceptual and all acreages, unit quantities, unit types, unit sized,
amenities, trails, street, pork and building types and locations ore approximate and
subject to change. Location and alignment of roadways and access points shown
are approximate and subject to change based on final engineering, design and
permitting requirements. Individuol roadway sections may be altered with oppropriate
justification within the allowable porameters of the Pasco County Land Development
Code during future Site Construction Plan applications. All ideas, designs. graphics
renaerings, dimensions, plans and other depictions herein are conceptual only and
are subject to change and therefore are not a guarantee of how the items will
appear upon completion.