CLEARWATER GAS SYSTEM
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ORDINANCE 84-16
AN ORDINANCg OF THE CITY OFOLDSMAR, PLORIDA,
GRANTING TO THE CITY OF CLEARWATER, FLORIDA, A
MUNICIPAL CORPORATION, A FRANCHISE FOR THE
PURPOSE OF F'lmNISHING 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 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
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of laying and maintaining pipes, or such other apparatus neces-
sary to supply gas to Grantor, and to do ~ll things reasonably
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OFFICE OF
THE CITY ATTORNEY
City of OldsmBr '
P,O, BOK 100
101 West StatG Street
OldsmBr, Florida 33557
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 Grantor. Grantee shall locate all facilities
and equipment so that such will not interfere with Grantor's
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use of its streets, and shall not cause a hazard to the publiC
hea.lth, safety, welfare, and aesthetics of Grantor, or incon-
venience any of the property owners contiguous thereto. This
franchise shall also constitute an interloca1 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-
vic~. 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 Granto~. 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 the revenue from'such addi-
tional facilities or equipment shall warrant such installation
on a basis of reasonable compensation or return on Grantee's
OFFICE OF
THE ,CITY ATTORNEY
City of Oldsmar
P.O. Box 100
101 West State Street
Oldsmar, Flortda 33557
investment. Such policy shall be the same as Grantee applies
within the City of Clearwater.
Section 5. Grantee shall install the necessar~ facili-
ties or equipment at its own cost and expense and that the same
shall be and remain the property of Grant~e; and that Grantee's
facilities or equipment and other physical properties used in
connection with the furnishing of gas under this franchise shall
be free from any ad valorem and occupational licence tax of
Grantor so long as such remains Grantee's property. All mains
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and pipelines shall be laid underground. Grantee shall repave
or telay, 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
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-
q~ently 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,ruleorr-egulationrelative:to streets
and sidewalks or other public places now in force or hereinafter
enacted. In no event shall Grantor, its e~ployees or agents,
be construed as the agent of the Grantee or its employees or
OFFICE OF
THE CITY ATTORNEY
Clly of Oldsmar
P.O. Box 100
101 West State Street
Oldsmar, Florida 33557
agents.
Section 7. The gas to be furnished by Grantee shall in
no case be of less quality than 1000 British Thermal Units per
cubic foot, 'and shall be conducted through the pipes at a pres-
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OFFICE OF
THE CITY ATTORNEY
City 01 Oldsmar
P.O. BOll 100
101 West State Street
Oldsmar, Florida 33557
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sure sufficient to insure satisfactory operation. The Grantee
shall have the privilege and option of charging reasonable
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 locatedinOldsmar. 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 (6) months prior to the date
of such exercise. Upon payment of the determined price, Grantee
shall transfer title to and possession of the facilities and
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equipment, or any portion thereof so purchased, to the Grantor.
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 10. 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 may be 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 (4%)~ 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 limits
of Grantor for the second. ten (10) years .of this
franchise; and
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OFFICE OF
THE CITY ATTORNEY
City of Oldsmar
P,O. Box 100
101 West State Street
Oldsmar, Florida 33557
(c) five percent (5%) of the gross receipts from the
sale of gas within the limits of Grantor for the
final ten (10) years of this franchise.
Grantee shall be required to keep proper books of
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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 franchise, 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
dl1ring this franchise, Grantee shall immediately include the
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-
chise~ 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. _'I:'~<lt all ordinances or parts of or?inances
OFFICE OF
THE CITY ATTORNEY
City of Oldsmar
P.O, Box 100
101 West State Street
Oldsmar, Florida 33557
in conflict with the provisions of this ordinance be and the
same are hereby repealed. If any section oJ sections of this
ordinance are declared invalid for any reason, such invalidity
shall not affect the remaining sections thereof. The parties
further acknowledge that each term and provision of this ordi-
nance is material to the franchise, and default in the perfor-
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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'b~ used to construe this fran-
chise against the Grantor.
Section 15. This ordinance shall become effective imme-
diately upon final passage and adoption.
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PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
OLDSMAR, FLORIDA, THIS IOtt"-DAY OF 1984.
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PASSED ON SECOND READING: I~ - , q - 'gL/
PASSED ON THIRD READING: -, -/O-~L/
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OFFICE OF
THE CITY ATTORNEY
City 01 Oldsmar
P.O, BOll 100
101 West State Street
, Oldsmar, Florida 33557
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