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94-72RESOLUTION NO. 94 -72 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA, ACCEPTING THE FRANCHISE, PRIVILEGE AND CONCESSION OF THE CITY OF OLDSMAR, FLORIDA, FOR THE PURPOSE OF FURNISHING GAS WITHIN THE CITY OF OLDSMAR AND TO ITS INHABITANTS; PROVIDING AN EFFECTIVE DATE. WHEREAS, on July 10, 1984, the City of Oldsmar, Florida, adopted Ordinance 84 -16, a copy of which is attached to the original of this resolution and incorporated herein by reference, granting the City of Clearwater a franchise for the purpose of furnishing gas within the City of Oldsmar; and WHEREAS, the terms and conditions of the franchise are acceptable; now, therefore, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF CLEARWATER, FLORIDA: Section 1. The terms and conditions of the gas system franchise, privilege and concession granted by the City of Oldsmar, Florida, by the adoption of Ordinance No. 94 -16 of the City of Oldsmar on July 10, 1984, are hereby accepted, and the City Commission of the City of Clearwater does hereby agree to comply with the terms and conditions of the franchise and with all reasonable ordinances adopted by the City Commission of the City of Oldsmar not inconsistent with the franchise. Section 2. This resolution shall take effect immediately upon adoption. Upon adoption of this resolution, the City Clerk shall deliver a certified copy to the City Clerk of the City of Oldsmar. PASSED AND ADOPTED this Ist day F Septe er 1994. Rita Garvey Mayor - Commissioner Approved as to form and Attest: legal fficiency: unmet Cyn is E. Goudeau Interim City ney Cit Clerk o -7 � ° I ` n OFnOe or F. CITY Anf -'PMY CITY of ONvi'M ho no. Ion � Ylml Siple Sllnul lro1f, FIONA 33S57 'T11t_ r1l I it/2 0, q ORDINANCE 84 -16 AN ORDINANCE OF THE CITY OF OLDSMAR, FLORIDA, GRANTING TO THE CITY OF CLEARWATER, FLORIDA, A MUNICIPAL CORPORATION, A FRANCHISE FOR THE PURPOSE OF FURNISHING GAS WITHIN THE CITY OF OLDSMAR AND PROVIDING FOR AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OLDSMAR, IN SESSION DULY AND REGULARLY ASSEMBLED: Section 1. Whenever in this ordinance the words or phrases hereafter I in this section defined are used, they shall have the respective meanings assigned to them in the following definitions, unless in the given instance, the context wherein they are used shall clearly import a different meaning: (a) Grantee - the City of Clearwater, a Florida munici- pal corporation, in its Present incorporated form, or as may subsequently be reorganized, consoli- dated, or reincorporated. (b) Grantor - the City of Oldsmar, a Florida municipal corporation, in its present incorporated form, or as may subsequently be reorganized, consolidated, or reincorporated, and to all inhabitants and pro- perties therein. (c) Streets - all public streets, rights -of -way, lanes, alleys, courts, bridges (excluding the area above deck level). (d) Gas - natural gas, commingled gas, or any reason- able substitute therefor. (e) Facilities or equipment - pipe, pipeline, tube, main, service, trap, vent, vault, manhole, meter, gauge, regulator, valve conduit, appliance attach- ment, appurtenances, and any other personal. pro- perty located or to be located in, upon, along, across, under or over Grantor's streets, and used or useful in the distribution of gas. (f) Gross receipts from the sale of gas - all revenues received by Grantee as a result of the sale of gas to the Grantor. Section 2. Grantee is hereby granted a franchise, privi- lege, and concession to furnish gas to Grantor, together with the right to use Grantor's streets and easements for the purpose lof laying and maintaining pipes, or such other apparatus neces- sary to supply gas to Grantor, and to do all things reasonably necessary to supply gas to Grantor, not otherwise in conflict with any of the terms and conditions of this franchise or reason- able ordinances of Grnntor. Grantee shall loclitc all facilities and equipment so that such will not interfere with Grantor's N 1 1 e use of its streets, and shall not cause a hazard to the public health, safety, welfare, and aesthetics of Grantor, or incon- venience any of the property owners contiguous thereto. This franchise shall also constitute an interlocal agreement under Chapter 163, Florida Statutes, pursuant to which Grantor agrees that Grantee shall exercise any or all powers vested in Grantor pursuant to Chapter 180, Florida Statutes, necessary or desir- able in furnishing' gas service pursuant- to this franchise. Section 3. The franchise, rights and privileges hereby granted shall continue and be in force for the period of thirty (30) years from the date the franchise granted herein becomes effective. This franchise or any interest therein may not be assigned without the prior approval,of Grantor. Section 4. Grantee shall furnish twenty -four (24) hours of continuous daily service to each person desiring such ser- vice. Failure of Grantee to furnish gas to any such person for any cause within its control for a period of seventy -two (72) hours shall act as a default of this franchise at the option of Grantor. Grantee may be liable for damages for failure to provide service to any of its consumers, as such may be provided between individual contracts between Grantee and its consumers. Provided, however, that Grantee shall not be required to lay facilities or equipment beyond such point as it determines to be economically feasible, and unless t(Ze revenue from such addi- tional facilities or equipment shall warrant such installation on a basis of reasonable compensation or return on Grantee's Investment. Such policy shall be the same as Grantee applies within the City of Clearwater. Section 5. Grantee shall install the necessary facili- ties or equipment at its own cost and expense and that the same shall be and remain the property of Grantee, and that Grantee's facilities or equLpment and other physical properties used in orrICE or connection with the furnishLng of gas under this franchise shall E CILY AT1o0NEY CITY of tlldemaf ro su.t6v be free from ally ac( valorem and occupational licence tax o Ylmf WOO 511601 to«t, fw"Ido 31551 Grantor sn lung as sucil rematus Grantee's property. All mains 2 r n WWI! UK t ctsr artomtty City of Oldsmar Po Do. IM I Well stele 5111141 dmu, Flddd41]557 and pipelines shall be laid underground. Grantee shall repave or relay, within ten (10) days, all streets, disturbed by Gran - tee for any reason unless there is a previously agreed repair schedule. Grantee shall restore such streets with the same quan- tity and quality of material, or its equivalent, as existed prior to the commencement of such work. Grantee shall obtain a permit from Grantor, without charge, prior to the construction I or installation of any facilities or equipment, and supply Gran- tor with as- built drawings of all such facilities or equipment. Grantor shall issue such permit within twenty -four (24) hours from application therefor by Grantee. Should Grantee fail or refuse to restore or repair such property within such period of time, then Grantor, after ten (10) days written notice to Grantee, shall have such repairs and restoration done and the expenses incident thereto shall be paid by Grantee. In the event that relocation of Grantor's or Grantee's property is subse- quently required, that party requiring such relocation shall pay the other for all costs incident thereto: Section 6. Nothing herein contained shall be so con- strued as to render the Grantor anywise liable for any act- of omission or commission of said Grantee, its officers, agents or employees, in the execution or conduct of the work herein authorized. Grantee shall at all times indentify and save Gran- tor harmless against all damages, judgments, decrees and costs which may arise or accrue to Grantor from injury to persons or property caused by the carelessness or neglect in the execution or conduct of the work hereinunder authorized or by the failure of Grantee, its officers, agents or employees, to comply with any reasonable ordinance, rule or regulation relative to streets and sidewalks or other public places now in force or hereinafter enacted. In no event shall Grantor, its employees or agents, be construed as the agent of the Grantee or its employees or agents. Section 7. the gas to be furnished by Grantee shall in no case be of less quallty t•lian 1000 British 'Thermal Units per a cubic foot, and shall be conducted through the pipes at pres- OFFICE OF IC CIIY A11OaNEY cite of Oldemei VO Oo. ILA t %*M S1.10 SIMI ,.of, Florida 31551 sure sufficient to insure satisfactory operation. The Grantee shall have the privilege and option of charging reasonable prices therefor, plus a surcharge to recover cost of construc- tion of the system to serve Oldsmar, plus franchise fees accor- ding to Section 11 of this agreement. The income produced by the surcharge will pay only for construction cost of the system to serve Oldsmar. This surcharge will be: I (a) three and one -half ($0.035) cents per therm for the first five (5) years of this franchise; and (b) shall be reviewed by the Grantee at five (5) year intervals. If the income produced by the $0.035 deviates from a twenty (20) year repayment line by more than twenty percent (20%), the charge may be adjusted up or down to increase or decrease in- come to provide a twenty (20) year payoff. The maxi- mum surcharge allowed over the twenty (20) year term will be $0.065 per therm. Grantee shall have the further right and privilege of collecting reasonable service charges and connection fees; provided, how- ever, such charges and fees to be no greater than for similar services, charges and fees to any of Grantee's other consumers, plus travel expenses to be agreed to between the parties from time to time, Section 8. Grantor reserves the right at any time during this franchise to purchase the facilities or equipment or any portion thereof, as defined herein, for its fair and just value. Such value shall exclude good will but shall include the replace- ment cost of such facilities and equipment. Property shall mean the facilities or equipment located in Oldsmar. Such value shall be determined by arbitration, with each party choosing one arbi- trator and the two arbitrators choosing a.third arbitrator. Grantor shall serve its notice to exercise its option to pur- chase the system no less than six (61 months prior to the date Of such exercise. Upon payment of Lite determined price, Grantee shall transfer title to and possession of the facilities and 14 equipment, or any portion thereof so purchased, to the Crantor. Section 9. At the termination of this franchise, in the event that Grantor shall not exercise its option to purchase franchise equipment of Grantee, Grantee shall, after thirty days, have the right, privilege and option of removing said equipment. In such event, Grantee shall repair all of the Gran- tor's property to the same condition as theretofore existed. Section Id. Grantee shall at all times comply with all reasonable ordinances, rules and regulations enacted or passed by the Grantor not in conflict with the terms of this franchise. Grantee shall have the right to make, establish and maintain and enforce such reasonable regulations for the operation of its distributing system as maybe reasonably necessary and pro- per, not inconsistent with the terms of this franchise and the ordinances of the Grantor, and to protect itself from fraud or imposition. Grantee may, in its discretion, refuse to furnish gas to any customer who is delinquent for any bill rendered, or for other reasonable grounds, according to the same procedure as Grantee provides for its own consumers in the City of Clear - water. Grantee agrees that all documents relating to this fran- chise shall be and remain public records. Grantee agrees to fur- nish Grantor a list of all franchise customers upon demand. Section 11.'In consideration for the grant of this fran- chise, Grantee shall pay to Grantor: (a) four percent (If %): of the gross receipts from the sale of gas within the limits of the Grantor for the first ten (10) years of this franchise; (b) four and one -half- percent (4-1/2%) of the gross receipts from the sale of gas within the limit's of Grantor for the second ten (10) years of this franchise; and (c) five percent (5%) of the gross receipts from the ofrfcae E Cnv Arromfev sale of gas within the limits of Grantor for the city of 011111"" r0.uo.ffb final ten (10) years of this franchise. i Waf Staid st—i iinar,Naldea�Sir Grantee shall be required to keep proper books of 5 spy r,9 N account showing monthly gross receipts from the sale of gas with- in the limits of Grantor, and shall make a statement- in writing showing the receipts for each such monthly period for each and every year of this Lranchise, and based upon such statement shall make concomitant monthly payment to Grantor of the amount due. In the event that Grantor shall annex a customer of Grantee during this franchise, Grantee shall immediately include the i gross receipts of such consumers in the franchise fee payment.. Such franchise fee shall not be deemed to preempt or otherwise exclude the Grantor from levying additional utility or other taxes which Grantor may lawfully impose upon Grantee's customers. Section 12. As a further consideration of this fran— chase, Grantor further covenants and agrees to pass and adopt such reasonable ordinances and regulations as will protect the physical components of the system being installed by Grantee and also protect such employees and agents as may be working with the system following its installation. Section 13. The franchise granted herein'shall not be- come effective in whole or in part until the Grantee shall, by resolution, duly passed and adopted by its Commission, accept the franchise, privileges and concession herein granted. By said resolution, Grantee shall agree to comply with the terms and conditions of this franchise and shall agree to comply with all reasonable ordinances passed by the Grantor not in conflict with the terms hereof. upon passage of such resolution, this ordi- nance and the franchise therein provided shall, become effective for all purposes. Section 14. That all ordinances or parts of or in conflict with the provisions of this ordinance be and the same are hereby repealed. If any section or sections of this ordinance are declared invalid for any reason, such invalidity O"WC OF shall not affect the remaining sections thereof. The parties f MIT MONEY 011Y of bW,mM PRUNIM further acknowledge that cacti term and provision of this ordi- I Wo StMS MMM )mv,rfaAai 33557 nano is tuateri.al to the franchise, and default i,n the perfor -- G "IACEOF 111E CHY AriORNEY Cfty of OWfiner P O. Do. 100 lot Vloel stele 54epr OWemel, rialde 31517 mance of any such provision shall be grounds for the termination of this franchise. The parties further acknowledge that each has taken part in the preparation of this ordinance, and that no law or judicial doctrine shall be used to construe this fran- chise against the Grantor. Section 15. This ordinance shall become effective imm' diately upon final passage and adoption. PASSED AND ADOPTED BY T11r CITY COUNCIL OF THE CITY OF OLDSMAR, FLORIDA, THIS LQ4� DAY OF dul4l 1984. ayor Glcyi 1erK PA ED ON FIRST READING: PASSED ON SECOND READING: PASSED ON THIRD READING: —7 IU — sil 7