Ordinance No. 40-89-15 v ORDINANCE NO. 40-89-15
AN ORDINANCE AUTHORIZING EXECUTION
OF AGREEMENT OF FRANCHISE TO PEOPLES
GAS SYSTEM, INC. WITHIN THE CITY
LIMITS FOR A FIVE YEAR PERIOD, STATING
TERMS AND CONDITIONS THEREOF, PROVIDING
AN EFFECTIVE DATE
BE IT ORDAINED BY THE CITY COMMISSION OF ATLANTIC BEACH, FLORIDA;
SECTION 1. The City does hereby grant franchise to Peoples Gas
Systems, Inc. , a Florida corporation, for the purpose of using
right-of-ways for the delivery of natural gas and in accordance with the
terms and conditions set forth in the agreement attached hereto and
marked as Exhibit A which is adopted by reference as if set forth herein
in full. They Mayor and City Clerk be authorized to execute agreement on
behalf of the City.
SECTION 2. Effective Date. This Ordinance shall become effective
immediately upon its passage by the City Commission and upon approval by
the Mayor.
Passed on First Reading this 10th day of July, 1989.
Passed on Second and Final Reading this 4th da of august 1•.9.
I. A 14. 4 Ai
ii warn I. Gullifor."'
Mayor11/4
Approved as to form and correctness:
Stephecf Stratford, ting City Attorney
ATTEST:
Maureen King, City Clerk
Exhibit A
FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT, made and entered into between the CITY OF
ATLANTIC BEACH, a municipal corporation, hereinafter called the CITY and
PEOPLES GAS SYSTEMS, INC. , a Florida corporation, as successor to the
Jacksonville Gas Corporation, hereinafter called the COMPANY this 14th
day of August, 1989.
1. Peoples Gas Systems, Inc. , a Florida corporation (hereinafter
called Company) is hereby granted the right, privilege and franchise and
shall have the power and authority to open the ground in the streets and
highways of the City of Atlantic Beach, Florida, and to cross any
bridges, viaducts and culverts of said City for the purpose of sinking,
laying or repairing such pipes, mains and conduits and appurtenant
machinery or equipment as may be necessary and specifically, without
limiting the generality of the foregoing, the transmission, distribution
and sale of manufactured gas, liquified petroleum gas, or natural gas
under the following terms and conditions:
a) The location for the sinking and laying of such pipes,
mains and conduits and appurtenant machinery and equipment shall be
approved by the City and the construction, operation, maintenance and
repair of said pipes, mains, conduits and appurtenant machinery and
equipment shall conform to any requirements made by the City or any
department officer authorized to supervise and regulate such work for the
protection and safety of the public; and such maintenance shall at all
times conform to the requirements and standards as fixed by the American
Standard Gas Transmission and Distribution Piping Systems, Code ASA,
B.31. 1 .8-1985 and amendments thereto, and any damage or injury done or
caused to the City's streets, highways or roads, or any portion or
portions thereof, in such construction, operation, maintenance and repair
of such pipes, mains, conduits and appurtenant machinery and equipment
shall be immediately repaired or reconstructed under the supervision and
control of the City or its authorized officer. Whenever the Company
enters into any street, highway or other public place to construct,
install or maintain its facilities, the Company within a reasonable time
after the completion of that work shall restore any trees, vegetation,
streets, highway or public place to as good a condition as obtained
immediately prior to the Company's work. In the event the Grantee fails
to make necessary restoration within a reasonable period of time, or in
the event the restoration made or attempted by the Company is disapproved
by the City, or in the event the restoration made or attempted by the
Company is disapproved by the City, or in the event the restoration fails
and renders damage or depreciates the City's streets, highways or public
places within a period of two (2) years after the Company work, the City
shall notify the Company in writing of the restoration needed or of the
reasons for the City's disapproval of the restoration made or attempted
to be made by the Company. The Company shall then have thirty (30) days
after the written notice is received to make the necessary restoration
required in the notice, failing which the City shall be authorized to
make the necessary restoration and charge the cost to the Company;
b) The Company hereby assumes all liability for and will
indemnify and save harmless the City from and against all damages which
may arise or accrue to the City, from any injury to persons or property
caused by the Company or any of its employees in the construction,
operation, maintenance or repair of said pipes, mains, conduits and
appurtenant machinery and equipment and/or neglect of the Company or any
of its employees to comply with any reasonable police ordinance relative
to the use of said streets or highways or public places. The City agrees
to give notice in writing to the Company in all claims and suits against
it arising out of any such matters as soon as may be practicable after
being itself notified thereof. The Company will provide to the City
proof of minimum insurance amounts of $5,000,000 for injury or death to
any one person, $10,000,000 or injury or death to all persons where there
is more than one person involved in any one accident and $2,000,000 for
damage to property resulting from any one accident, and each of the said
minimum sums shall remain in full force and shall be undiminished during
the effective period of this Ordinance.
2. Whenever it shall be reasonably necessary for the convenience of
the City and the safety and well-being of the public that the pipes,
mains, conduits and appurtenant machinery and equipment located on or
under the streets and highways of the City be removed or reset or
relocated, upon reasonable written notice from the City to the Company,
the Company shall remove the same from such streets or highways and reset
or relocate the same as required by the City or its authorized officer,
at the expense of the Company.
3. The City reserves the right to purchase at any time, at the
option of the City, the plant, system and equipment of the public utility
for which this franchise is granted at a price to be fixed by a board of
three arbitrators, to be chosen, one by the City, one by the Company, the
two arbitrators to choose a third. In case the City should exercise its
option to purchase and the other party should refuse to choose its
arbitrator within ten (10) days after written notice of the City's
decision to exercise its option to purchase, the City Commission shall
proceed to choose all three arbitrators, and upon payment of the price
fixed by the arbitrators for the utility, the City shall thereby own the
same, and the City may enter upon and take possession of the same and
gather the rent thereof.
4. This franchise shall run to the Company, its successors and
assigns and shall extend for a period of five (5) years from the date of
August 14, 1989, with option to extend for a five (5) year period as
hereinafter stated.
5. This franchise shall be effective under the following
conditions:
a) It shall be approved by a majority vote of the members of
the City Commission.
b) The Company shall accept the same by proper authorization
consenting to the terms hereof, and the Company shall further pay to the
City a fee of five percent (5%) of gross sales sold or delivered to
customers within the City limits from the effective date hereof in
Section 4 and continue such payments for the first five (5) year term and
six percent (6%) of gross sales during the second five year term if the
Company extends this franchise. In the event the Company should not
•
accept the franchise or should fail to comply with the terms and
conditions of this franchise, this franchise shall terminate.
c) The City reserves the right at any time during the term of
this franchise to assess against the Company a franchise tax at a rate
not to exceed five (5) per centum of the gross receipts of the Company
for sales or delivery of gas in the City limits and pursuant to the
exercise and use of this franchise during the first five (5) year term
and not to exceed six percent (6%) during the second five (5) year term
if estimated by the Company.
d) The Company agrees to make its books available at and
during regular business hours of the Company at reasonable times for the
purpose of auditing the sales and deliveries made within the City of
Atlantic Beach for the purpose of determining the Franchise fees due
under this agreement.
e) The Company shall, during the term of this franchise, and
at the option of the City, sell up to 100,000 cubic feet of natural gas
per month for the use of the City of Atlantic Beach, at its delivered
cost plus 10% thereof.
IN WITNESS WHEREOF, this agreement executed this 14th day of
August, 1989.
TY 6 ATLANTIC B ; H, LORIDA
. , . •u
William I. Gulliford,
Mayor
Approved as to form and correctness:
Stephen Stratford, Acting City Attorney
PEOPLES GAS SYSTEMS, INC.
ATTEST:
e. _ C.
Maureen King, City Clerk d
• ViSOPVision Energy
3333 North Washington Blvd.
Sarasota, Florida 34234-6221
1-800-358-9987/813-365-1595
FAX: 813-355-9279
o �slo�
September 28 , 1993
Mr. Jim Jarboe, Deputy City Manager
City of Atlantic Beach, Florida
800 Seminole Road
Atlantic Beach, Florida 32233-5445
RE: VISION ENERGY FRANCHISE AGREEMENT
Dear Jim:
This letter will serve to outline the items we discussed, with
respect to the Franchise Agreement, as outlined in Ordinance
No. 40-89-15 .
1. Vision Energy will remit to the City of Jackson-
ville Beach, Franchise Fees due under the Agree-
ment as assigned on July 10 , 1989. This payment
will be for propane delivered via the subject
pipeline through August, 1993 .
2. Future payments will be made quarterly to the
City of Atlantic Beach, 800 Seminole Road,
Atlantic Beach, Florida 32233-5445.
3. Item "e" of the original Franchise Agreement
specifies that "100 ,000 cubic feet of natural
gas" will be supplied to the City at 10% over
cost.
Since natural gas is not available to the Island
and Vision Energy does not sell natural gas ,
Vision Energy will supply propane to the City
of Atlantic Beach at 18 cents per gallon over
laid in cost to Vision Energy's Jacksonville
Beach Plant.
Thank you for your time . I hope this will take care of the situa-
tion.
Sincere y, 7a
Thomas H. Rose
THR:af
cc: Al Kara
Karen Czaplewski
Don Brady