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GAS ,I I INTERLOCAL AGREEMENT REGARDING GAS SE:RVICE BETWEEN THE TOWN OF REDINGTON BEACH, FLORIDA AND THE CITY OF CLEARWATER, FLORIDA f~3~ kJlf 9~@> THIS AGREEMENT, made and entered into this ~day of ~, 1 ~ . between the Town of Redington Beach, Florida, a Florida municipal corporation, and through its Town Board of Commissioners (herein "TOWN") and the City of , Clearwater, a Florida municipal corporation, by and through its City Commission (herein 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. INTER-LOCAL 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. - - - -l~r'- (. ;~,~:- ,~-- ."'- -~---- - - -- - - -, - - - - - - - - - (1)- seCTION 2. REliT ALS. I 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, any necessary 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 here~fter 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 8S 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 Cll'Y under the general13ws of the State of Florida, or CITY's charter and ordinances. Such rate schedule shall be 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -=-=-=-= ~ -~~ - - - - - - - - - - ,-!,'-'T ____.1 .,-1..._'1 Cl':::-I~ 1 .1 . t::'1=' rTTY CTTnPN~Y'S n~FTrF :=:1': 4F.2 5425 P.04/07 i~entical to the rate SChetule applied to rate payers within the cJporate 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, to wit: conditions hereinafter set forth. Such expansion shall occur on the following terms and 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 B. In the evJnt the system-wide formula provides fir a formula longer than seven (7) years, that longer period shall be used. SECTION 7. FORCE MAJEURE. In the event by act of Gad, 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. COMPETIT10N. 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. One (1) year prior to the expiration of this agreement, or any extensions provided / for in this paragraph, City shall provide Town with written notification of its intent to renew for an additional five (5) year period. TOWN agrees to provide a written response to CITY, prior to the end of the initial ter~ or the end of any ~dditional five (5) year period, of its election not to extend the agreement for an additional five (5) year period. Town's failure to provide written notification to City not to extend shall automatically 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 4 OCT-14-1997 11:59 CITY ATTORNEY'S OFFICE 813 462 6426 P.06/07 'the removal of such eqlipment, the CITY shall repair all of thelrowN's property to the same condition as theretofore existed. CITY shall also have for a period of one (1) year after such termination, the right to sell any or all of its piping and equipment to TOWN or 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 reseli/es 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 shari not affect the remaining sections thereof. SECTION 13. EFFECTIVE DATE. 5 -'--------------------------------------------------------------------------------------------------------- OCT-14-1997 12:00 C I Tl ATTORIJE"(' S OFF I CE 813 462 6426 P. en /07 . , This agreement lall become effective upon the accePttce Of this agreement by appropriate act by CITY's governing board after adoption by TOWN's governing board. Attest: i41[~~'~0fudcZ Victoria McDonald, CMC, ME, Town Clerk IN WITNESS WHEREOF, REDINGTON BEACH and CLEARWATER hereto have executed this agreement on the day and year above written. TOWN OF REDINGTON BEACH, FLORIDA By\MJ?Q( ~ ~ MarkBeighton Mayor CITY OF CLEARWATER, FLORIDA By Jr---- Michael J. Roberto City Manager minic Amadio, Esq. Attorney for the Town of Redington Beach, Rita Garvey Mayor-Commissioner Approved as to form: ~~ John Carassas Assistant City Attorney Attest: .. ia E. GOU~;tU -. lerk .-- . Note: Approvedby.Clearwater City Connnission 'J:tily 16,1998 . 6 ---------------------------------------------------------------------------------------------------------- TOTRL P.D?