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GAS ~-~, .. !... I I INTERLOCAL AGREEMENT REGARDING GAS SERVICE BETWEEN THE TOWN OF INDIAN SHORES, FLORIDA AND THE CITY OF CLEARWATER, FLORIDA 1JJ-rI.f ~ THIS AGREEMENT, made and entered into thiS~ day Of~, .998,4<1 by and between the Town of Indian Shores, Florida, a Florida municipal corporation, by and through its Council (herein "TOWN") and the City of Clearwater, a Florida municipal corporation, by and through its City Commission (herein "CITY"). WITNESSETH WHEREAS, it is in the best interests of the citizens of TOWN to be provided gas service whenever and wherever feasible; and, WHEREAS, pursuant to Chapters 166 and 180, Florida Statutes, the CITY has the power and the present capability to provide such gas service in TOWN; and WHEREAS, TOWN and the CITY wish to set forth their agreement with respect to the provisions of such gas service to those areas within the corporate limits of TOWN, pursuant to the provisions of the Florida Interlocal Cooperation Act of 1969, as amended. NOW, THEREFORE, for value and other consideration, it is agreed: SECTION 1. INTERLOCAL AGREEMENT. The parties acknowledge that the City has the legal authority pursuant to the Florida Statutes to provide gas service and, further, that TOWN, upon appropriate exercise of its powers could also provide such service. The TOWN and CITY have determined it is in the best interests of both parties and their citizens for CITY to provide gas service within the corporate limits of TOWN as defined herein. ,I '\.' (I , .. I I SECTION 2. RECITALS. The recitals and findings contained above are hereby incorporated within this agreement in full. SECTION 3. TERM; GRANT; DEFINITION OF GAS. For a period of 30 years from the effective date of this agreement, TOWN, its successors, and assigns, do hereby agree and give and grant to the CITY its successors and assigns, the non-exclusive right and authority to exercise the power to furnish gas and to construct, operate and maintain within the corporate limits of TOWN, all facilities required by the CITY to supply gas to TOWN, its inhabitants and the places of business located within TOWN's corporate limits and other customers and areas now or hereafter supplied, or to be supplied, gas by CITY. The word "Gas" shall mean natural gas and/or commingled gas which is distributed in pipes. It shall not mean bottle gas or any other fuel; however, nothing herein shall be interpreted to prohibit CITY from engaging in the sale of liquid petroleum (propane) gas. SECTION 4. RATES. The rates, charges and fees to be charged by the CITY for gas service within the corporate limits of TOWN during the term of this agreement shall be as provided in the CITY's rate schedule now or hereafter approved by CITY's City Commission, or as modified by the City Manager, or other designated City official, to the extent City Manager, or other designated City official, is expressly authorized to approve changes to such rates, charges, and fees, or such other agency of the State of Florida as may have proper jurisdiction over such rates and charges of CITY under the general laws of the State of Florida, or CITY's charter and ordinances. Such rate schedule shall be 2 I I identical to the rate schedule applied to rate payers within the corporate limits of the City of Clearwater. SECTION 5. ANNEXATION. In the event of the annexation of any territory to the present corporate limits of TOWN, such annexed territory and all portions of the gas system of CITY located therein shall become subject to all of the terms and conditions of this agreement as of the time such annexation becomes effective. It shall be the responsibility of the TOWN to notify CITY in writing within thirty (30) days after the effective date of every such annexation. The CITY shall implement such annexation within thirty (30) days of the receipt of the notice from the TOWN. SECTION 6. EXTENSION OF SERVICE. In consideration of the rights granted under this franchise and the duration of this franchise, the CITY agrees that its facilities to be installed within the corporate limits of TOWN will be expanded to provide service to new customers on the terms and conditions hereinafter set forth. Such expansion shall occur on the following terms and conditions, to wit: A. Gas service shall be extended to customers desiring said service based on a feasibility formula. Such formula shall be the formula currently in effect system- wide as then administered by the CITY, but, at a minimum, shall be as follows: Gas service shall be extended if the construction costs expended to service such customer(s) including, but not limited to debt service, expenses, and cost of fuel, will be recovered by CITY through rates paid by customer(s) within a maximum of 7 years. If an application for gas service does not meet the 7-year payback period, then, in such event, such customer(s), may make a lump sum contribution in aid of construction to allow the 7 -year payback standard to be met. 3 . !-.~ I I B. In the event the system-wide formula provides for a formula longer than seven (7) years, that longer period shall be used. SECTION 7. FORCE MAJEURE. In the event by act of God, strike, riot, public enemy or other calamity, or restriction in the supply of gas beyond the control of CITY or its interstate supplier or by reason of regulation exerted by the Florida Public Service Commission or the Federal Energy Regulatory Commission or other regulatory body having jurisdiction in the premises, the supply of the gas should be interrupted, the CITY shall, nevertheless, continue to supply the available gas to such customers as it is possible, shall employ its full services to remedy such deficiency of gas supply, and shall resume complete gas service when that is possible. SECTION 8. COMPETITION. As a further consideration of this franchise, TOWN agrees not to engage in the business of distributing and selling gas during the life of this franchise or any extension thereof in competition with the CITY, its successors and assigns. SECTION 9. EXTENSION OF AGREEMENT. Upon expiration of this agreement, or upon expiration of any extensions provided for in this paragraph, said agreement shall automatically be renewed for five (5) year periods until such time as the TOWN provides to CITY, prior to the end of the initial term or the end of any additional five (5) year period, a six (6) months written notice of TOWN's election not to extend the agreement for an additional five (5) year period. Upon notification of non-extension, the CITY shall have, for one (1) year from the end of the term, the right, privilege and option of removing all agreement piping and equipment. In the event of the removal of such equipment, the CITY shall repair all of the TOWN's property to the same condition as theretofore existed. CITY shall also have for a period 4 ~.' I I of one (1) year after such termination, the right to sell any or all of its piping and equipment to TOWN or a third party at the time of termination or subsequent thereto. SECTION 10. FRANCHISE FEE. In consideration for the granting of this franchise and the use of the rights-of- way, easements and other public places allowed hereunder, the TOWN reserves the right to charge a franchise fee and the CITY agrees to pay such franchise fee in an amount not to exceed five percent (5%) of the gross receipts from the sale of gas within the corporate limits of the TOWN for the term of this franchise as established by subsequent ordinance of the TOWN Commission. Such amended franchise fee shall be implemented by the CITY no later than thirty (30) days from the date of the delivery of written notification to the CITY by the TOWN of such franchise fee charge, or amendment, said written notice to be accompanied by a copy of the adopted ordinance. Payment of the franchise fee by the CITY to the TOWN shall be made on a quarterly basis. SECTION 11. CONFLICT. All ordinances and parts of ordinances adopted to effectuate this agreement in conflict herewith be and the same are hereby repealed. SECTION 12. SEVERABILITY. If any section or sections of this agreement are declared invalid for any reason, such invalidity shall not affect the remaining sections thereof. SECTION 13. EFFECTIVE DATE. This agreement shall become effective upon the acceptance or this agreement by appropriate act by CITY's governing board after adoption by TOWN's governing board. 5 """ . r, I I) IN WITNESS WHEREOF, INDIAN SHORES and CLEARWATER hereto have executed this agreement on the day and year above written. TOWN OF INDIAN SHQ~ES, FLORIDA. ,. ~ /.' ,/ -- By , , ~ '. - .: ~ ~ .:: _ C Robert G. McEwen " ~ :'. -:.. - -/'. Mayor :: ......:.. _:.. - :- --:.~ .:.... ...... -- ..:..- - ...'- Attest: -' .... :~TY lEARWATER, FLORIDA Michael J. Rob~ City Manag~' Ri a Garvey Mayor-Commissioner Approved as to form: ~~ John Carassas Assistant City Attorney i.dv' Cynthia E. Got.(~eau- -. ~...' IJ - City Clerk ':- ..--: 6 -.:: - ~ ..> -..: ", , '-'