CLEARWATER GAS SYSTEM (2)
'-
Clearwater Gas System
Natural & Propane Gas
RECEIVED
FEB 2 7 1995
ClfY CLERK DEPr.
Administrative Offic~
& Operations Cents
400 North Myrtle Avenu
Clearwater, Florida 3461
Telephone (813) 462-663
Fax (813) 462-663
February 17, 1995
Mr. Bruce T. Haddock, City Manager
City of 01dsmar
P.O. Box 100
Oldsmar, FL 34677
Subject:
City of 01dsmar Gas Franchise
Dear Bruce:
On July 10, 1984, the City of Oldsmar authorized Ordinance 84-16 which provided a Natural
Gas Franchise for the Clearwater Gas System to operate within the City of Oldsmar. Section
#13 of that Ordinance provided that the franchise would "not become effective in whole or in
part until the grantee shall, by resolution, duly passed and adopted by its Commission, accepts
the Franchise, privileges concessions herein granted. It Regrettably, we have been unable to
determine that this acceptance by the City of Clearwater was formally done in 1984.
In order to remedy this error, the City of Clearwater adopted Resolution 94-72 on September
1, 1994, which formally accepted your franchise which had been granted in 1984. We sincerely
regret this delay and are attaching herewith a certified copy of our Resolution for your City files.
Please note that Section #11(b) of your Ordinance 84-16 specified that the franchise rate would
increase to "4.5 % of the Gross Receipts from the sale of gas within the limits of Grantor for the
second ten (10) years of this franchise." Since the City of Clearwater's adoption of a franchise
ordinance typically occurs a month or two (2) after the receipt of an approved franchise from
a City to be served by the Clearwater Gas System, we used September 1, 1994, as the effective
date for increasing the franchise rate from 4 % to 4.5 % for the customers within the City of
Oldsmar and have rendered you franchise payments at the 4.5 % level for all service billed after
that date.
We hope this remedy is satisfactory to you and that you are in agreement to using an imputed
effective date for our franchise of September 1, 1984. You should note that we did not connect
the first service in 01dsmar until January 21, 1986, and began our franchise payments to the
City of 01dsmar in February, 1986. We felt that you would prefer to use this earlier date as
an imputed effective date so as to increase the flow of franchise funds to the City of Oldsmar.
!Tor a lieaftliier environment. . . use naturafgasl
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Letter to Mr. Bruce T. Haddock,
City Manager, City of 01dsmar
February 17, 1995
Page 2
We apologize for the delay in processing the City of Clearwater's Resolution accepting the City
of 01dsmar's Franchise and hope that you are agreeable with how we have handled the
resolution of the problem.
Thank you for the privilege of serving the City of Oldsmar!
Sincerely,
~/1) ~
<...Y=-"7A..../.....c;~~
C.S. "Chuck" Warrington, Jf.
Managing Director & Executive Officer
CSW Ish
cc: Ms. Cyndie Goudeau, City Clerk
Mr. Jim Lewin, Director of Gas Marketing & Planning
RESOLUTION NO. 94-72
A RESOLUTION OF THE CITY COMMI SSION 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 resolutlon 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
1st
, 1994.
Approved as to form
legal fficiency:
Attest:
/1 . _ ..\q-'(I~. ,-,
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Cyntr i a E. ,'50ude.,au I '
CitY' Clerk ,'\' "
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I hareobf oertifv that this is a true azJd
oorrectoopy at the origiooJ. as it
appea.zs in the files of the City of
Clearwatar. Witness my hand and
officiN. '.. 1,lJ'...t & a....w-".
~~gay ~J .)99~
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: , . . . Clerk!
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OFFICE OF
E CITY AnOANEY
Clly of ,Oldsmat
P.O. 00.11: 100
I Wosl Sial. Slroo'
,mar, FIOllda JJ551
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ORDINANCE 84-16
AN ORDINANCE OF TilE CITY OF OLDS~IAR, FLORIDA,
GRANTING TO TIlE CITY OF CLEARWATER, FLORIDA, A
~1UNICI PAL CORPORATION, A FRANCIlISE FOR TilE
PURPOSE OF FURNISHING GAS WITHIN TilE CITY OF
OLDSMAR AND PROVIDING FOR AN EFFECTIVE DATE
IlEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF TIlE CITY OF
OLDSMAR, IN SESSION DULY AND REGULARLY ASSEMBLED:
Section 1. Whenever in this ordinance the words or
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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,
ulleys, courts, bridges (excluding the area above
deck level).
(d)' Gas - natural gas, commingled gas, or allY 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 Grantorls streets, and used
or useful in the distribution of gas.
(f) Gross receipts from the sale of gos - 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
of laying and maintaining pipes, or such other apparatus neces-
sary to supply gas to Grantor, and to do ~ll things reasonably
necessary to supply gas to Grantor, not otherwise in conflict
with any of the terms and conditions of this franchise or t'eason.,.
able ordinances of Gruntor. Grontee shall locate all facilities
and equipment so that such will not interfere with Grantor's
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OFFICE OF
E CITY ATTOnNEY
CII." of Old~mll(
P.O, Doo 100
Wo!l Slale SI,oel
Jm.,. fJOIld. 33557
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 furnishini 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 furnisll 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 the 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 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 relay, within ten (10l 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
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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 (10l 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' 5 or Grantee I s property is subse-
quently required, that party requiring such relocation shall
pay the other for all costs incident thereto:
Se~tion &. Nothing herein contained shall be so con-
strued as to render the Grantor anywise liable for any Bct 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
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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
E CITY ATTORNEY
Clly 0' OId.mor
P.O. 80. 100
I Wo,' Slalo Slr..,
,ma" Florid. :lJ$$7
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
IE CITY ArrORIlEY
CIl". 01 Qld,mar
P.O. DOl 100
I 'No,t 5181e 51reel
,mar. Florida 33551
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:
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(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 (207.). 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 thermo
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 (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 Eranchise, 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 shull repair all oE the Gran-
tor's property to the same condition as theretofore existed.
Section 1d. 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 oE 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
(c) five percent .(5%) of the gross receipts from the
OFFICE OF
E CITY AnonNEY
Clly 01 OltJsmar
P.O. 00. 100
I Wo,l SIDlo Slroel
,mor, Florid. 33~~7
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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OFFICE OF
E CITY AnOANEY
elly 01 Old.mot
P.O. Box 100
I Wa,t Slale Sheet
3m.f. florid. 335.57
account showing monthly gross receipts [rom 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 frnnchise, and based upon such statement
shall make concomItant monthly paymcnt to Grantor o[ the amount
due. In the event that Grantor shall annex a customer of Grantee
during this franchise, Grantee shall immediately include the
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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 mny lawfully impose upon Grantee's
customers.
Section 12. As a ,further consideration of this fran-
chise, Grantor furt~er covenants and agrees to pass and adopt
Ruch reasonable ordinances and regulations as will protect the
physical components of the system bcing installcd by Grantee
and also protcct such employees and agcnts 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?inances
in conflict with the provisions of this ordinance be and the
same are hereby repealed. If any section o! 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 deE,ault 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 be used to construe this fran-
chise against the Grantor.
Section .15. This ordinance shall become effective imme-
diotely upon finpl passage and adoption.
PASSED AND ADOPTED BY TilE CITY COUNCIL Of TilE CITY Of
nLDSMAR, FLORIDA, TillS 10,-1- DAY OF" 1984.
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PASS,ED ON SECOND READI NG: (,; - J q - 6L/
PASSED ON TIIIRD READING: -, _/O_'[;L/
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OFFICE OF
THE CITY ATTOnNEY
Clly 01. Old, mar
P.O. Do. 100
101 Wo,l Slale SlIoel
Old.mar. Florida JJ551