CLEARWATER GAS
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ORDINANCE NO. 83- 2 7
AN ORDINANCE OF THE CITY OF TARPON SPRINGS, FLORIDA,
GRANTINGTO THE CITY OF CLEARWATER, FLORIDA, A '
MUNICIPAL CORPORATION, A FRANCHISE FOR THE PURPOSE
OF FURNISHING GAS WITHIN THE CITY OF TARPON SPRINGS.
BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE
CITY OF TARPON SPRINGS, FLORIDA:
Section I. 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 fbI/owing 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 municipal corporatibn, in its
present incorporated form, or as may subsequently be reorganized,
consolidated, or reincorporated.
(b) Grantor - the City of Tarpon Springs, a Florida municipal corporation, in
its present incorporated form, or as may subsequently be reorganized,
consolidated, or reincorporated, and to all inhabitants and properties
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 reasonable substitute therefor.
(e) Facilities or equipment - pipe, pipeline, tube, main, ser,vice, trap, vent,
vault, manhole, meter, gauge, regulator, valve conduit, appliance
, attachment, appurtenances, and any other personal property 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 ~. Grantee is hereby granted a franchise, privilege, and
concession to furnish gas to Grantor, together with the right to use Grantor's streets
for the purpose of Joying and maintaining pipes, or such other apparatus necessary 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 reasonable ordinances of Grantor. Grantee shall locate all facilities and
equipment so that sud:J will not interfere with Grantor's use of its streets, and shall
no1 cause a hazard to the public health, safety, welfare, and aesthetics of Grantor, or
inconvenience 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 desirable in furnishing gas
service pursuant to this franchise.
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DEe 12 1984
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CITY CLER
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Section 3. The franchise, rights, and privileges hereby granted shall
continue and be in force for the period of thirty 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 hours of continuous daily
service to each person desiring such service. Failure of Grantee to furnish gas to any
such person fOLany cause within its control for a period of seventy-two 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 individudl contracts between the 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 additional facilities or equipment shall warrant such installation on a basis
of reasonable compensation or return on Grantee's investment. Such pol icy shall be the
same as Grantee applies within the City of Clearwater.
Section 5. Grantee shall install the necessary facilities 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 equipment and other physical properties used
in connection with the furnishing of gas under this franchise shaJl be free from any ad
valorem and occupational license tax of Grantor so long as such remains Grantee's
property. All mains and pipelines shall be laid underground. Grantee shaJl repave or
relay, within ten days, all streets disturbed by Grantee for any reason unless there is a
previously agreed repair schedule. Grantee shall restore such streets with the same
quantity 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 Grantor with as-built drawings of all such facilities or equipment. Grantor shall
issue such permit within 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 days written notice to Grantee, shaJl 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 subsequently required, that
party requiring such relocation shaJl pay the other for all costs incident thereto.
Section 6. Nothing hereincontained shall be so construed as to render the
Grantor anywise liable for any act of omisson or commission of said Grantee, its
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officers, agents, or employees, in the execution or conduct of the work herein
authorized. Grantee shall cit all times indemnify and save Grantor 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 n.eglect in the execution or
conduct of the work hereinunder authorized or by the failure of Grantee, its officers,
agents or employees, to campi)' 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
quality than 1000 British Thermal Units per cubic foot, and shall be conducted through
the pipes at a pressure sufficient to insure satisfactory operation. The Grantee shall
have the privi lege and option of charging reasonable prices therefor, provided,
however, that in no case shall the charge therefor exceed $.035 per therm more than
the retail price of Grantee's consumers in the City of Clearwater, plus franchise fees
according to Section II of this agreement. Grantee shall have the further right and
privilege of collecting reasonable service charges and connection fees provided,
however, 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, os defined herein, for its
fair and just value. Such value sholl exclude good will but sholl include the
replacement cost of such facilities and equipment. Property shall mean the facilities
or equipment located in Tarpon Springs. Such value shall be determined by arbitration,
with each party choosing one arbitrator and the two arbitrators choosing a third
arbitrator. Grantor sholl serve its notice to exercise its option to purchase the system
no less than six months prior to the dote of such exercise. Upon payment of the
determined price, Grantee sholl transfer title to and possession of the facilities and
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
sholl, after thirty days, have the right, privilege and option of removing said
equipment. In such event, Grantee shall repair all of the Grantor's property to the
same condition as theretofore existed.
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Section 10. Grantee shall at all times comply with all reasonable
ordinances, rules and regulaNons 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 proper, 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 Clearwater.
Grantee agrees that all documents relating to this franchise shall be and remain public
records. Grantee agrees to furnish Grantor a list of all franchise customers upon
demand.
Section II. In consideration for the grant of this franchise, Grantee shall
pay to Grantor
(a) four percent (4.0%) of the gross receipts from the sale of gas within the
limits of the Grantor for the first ten 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 years of this franchise;
and
(c) five percent (5%) of the gross receipts from the sale of gas within the
limits of Grantor for the final ten years of this franchise.
Grantee shall be required to keep proper books of account showing monthly
gross receipts from the sale of gas within 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 francise, and based upon such statement shaJl 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
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 franchise, Grantor further
covenants and agrees to pass and adopt such reasonable ordinances and regulations as
wi II protect the physical components of the system being installed by Grantee and also
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protect such employees and agents as may be working with the system following its
installation.
Section 13. The franchise granted herein shall not become effective in
whole or in part until (I) the Grantee shall, by resolution, duly passed and adopted by
its Commission, accept the franchise, privileges and concession herein granted, and
(2) the electorate of Grantor ratifies the terms hereof by affirmative majority vote at
a referendum duly held thereon at the next general election to be held in December,
1983. 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 the passage of such
resolution, this ordinance and the franchise therein provided shall become effective
for a 11 purposes.
Section 14. That all ordinances or parts of ordinances 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 shall not
affect the. remaining sections thereof. The parties further acknowledge that each
term and provision of this ordinance is material to the franchise, and default in the
performance of any such provision shall be grounds for the termination of this
franchise. The porties 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 franchise against the Grantor.
Section 15. This ordinance shall not be codified into the Code of
Ordinances of the City of Tarpon Springs, pursuant to Section 1.10(4) thereof.
PASSED FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
October 11, 1983
October 18, 1983
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PASSED AND ADOPTED this IJtt:h~uay of __.___Qg,tQb,~r---_~u---.-----
1983,
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APPP, VED AS TO FORH: //
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CITY OF TARPON SPKINGS
COUNTY or F'iNELLAS
STATE OF FLOFdDA
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CO}~ISSJONER Raynard
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Ordinance 83-27