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HomeMy WebLinkAbout2001 11 26 Public Hearings E Final Reading - Ordinance 2001-53 Natural Gas Services in the City , . . --- COMMISSION AGENDA ITEM E Consent Informational Public Hearing X Regular November 26,2001 Meeting ~@ Mgr. / Dept. Authorization REQUEST: The General Services Department requests the City Commission conduct a public hearing for the adoption on final reading of Ordinance 2001-53, a Franchise Agreement between the City and Florida Public Utilities Company, which provides for natural gas services in the City. PURPOSE: The purpose of this Agenda Item is to request the City Commission conduct a public hearing for the adoption on fmal reading of Ordinance 2001-53, a Franchise Agreement with Florida Public Utilities Company allowing FPUC to provide natural gas services in the city. APPLICABLE LAW AND PUBLIC POLICY: Section 4.14 (4), Charter of the City of Winter Springs CONSIDERATIONS: 1. Ordinance 54, passed and adopted on December 21, 1970, by the Village Council of the Village of North Orlando, with a term of thirty (30) years, granted an original non-exclusive franchise to Florida Public Utilities Company to provide natural gas services within the corporate boundaries ofthe Village of North Orlando. . November 26,2001 PUBLIC HEARING AGENDA ITEM E Page 2 2. That original franchise was extended by Emergency Ordinance 2000-44 and Emergency Ordinance 2001-41 while negotiations continued on the terms of a new franchise agreement. 3. A new franchise agreement has now been finalized and is encapsulated in Ordinance 2001-53 (attached), which was adopted on first reading at the Commission meeting of November 12, 2001. FISCAL IMP ACT: Upon adoption of Ordinance 2001-53, the franchise fee immediately rises to six and one-half percent (6.5%) of gross revenues for the first fifteen (15) years of the thirty (30) year term, and rises again to seven percent (7%) at the start of the second fifteen (15) years. STAFF RECOMMENDATION: 1. Staff recommends that the City Commission adopt Ordinance 2001-53 on final reading. A TT ACHMENTS: . Ordinance 2001-53 to be provided in final form by City Attorney. COMMISSION ACTION: . CDD/November 14,2001/12:27 PM Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21 -01 3:55PM; Page 6/26 BROWN, WARD, SALZMAN & WEISS, P.A. A TTORNEYS AT LAW U~hcr L. Brown · .101111 H Ward. Gary S. SallmanQ Jefti"ey S. Weiss Suzanne D'Ab'"r~sla ^nthony A. GargnneseO Scott D. Danahy AlfrcJ Tru~:;delf Arthur R. "Randy" Drown, Jr.+ Dn:!t A. Marluwe: .klln:y P. Ruak. Kristine K Kut~ .I(1)t:ph G. Colombo Debra S. Babb Gregory A. Hass" CheyelUlc R. Young Joseph E. Rlitch T.....o LJndmark Center 225 East Robinson Street, Suite 660 Po~t Oflit;c Rox 2873 Orlando, FL J28(J2.2~73 (407) 425.9566 (407) 425.9596 FAX Email: agarganc~e(!9orJandol::lw.nct Wcb~itt;: wv..w.orlandolaw.ncl · rli)ard C~ll floo Civil 'I rllll J IIW)'CT n Goard ('c",lied Hu(ine.<< J ..tipuon l.Awycr u fJIlll1d Certified City, County &. 1.oc.1' (jovcrnmcJlr L~w · Hoard (c",lied I .\hm & Fll1l'lol'Il1Cl1tl.,3ll' Nllv~rnb~r 21, 200 1 VIA FACSlJ"fnE #407/323-4354 AND UNITED STATES M4lL Mr. Donald Kitner Florida Power Utilities Company Post Office Oox 530969 Debary. Florida 32753-0969 Re: Florida Public Utilities Company Gas Franchise City of Winter Springs - General OUf File IJ 1193 Dear Dnn: This letter is a follow-up to your telephone call today at which you requested several amendmc:nts to the gas franchise ordinance based on Chuck Stein's cnmmenK Fnclosed is a blacklined ordinance which reflects the changes that you requested und the addition of Artick XVTT. Article XVII witI provide the City of Winter Springs a most favored franchise fee status. In other words, if your company negoliates a higher franchise fee \vith any other City or County after the , ,-,.. -,. -.~,...". " r" . n ~ .-1Cl? /.l?C; qC;qc, 94% P.06 Sent By: BAOWN,WAAO,SALZMANSWEISS,P.A.; 407 425 9596; Nov-21-01 3:55PM; Page 7/26 Mr. DOl1..1ld Kitner November 21, 200 I Page 2 effective date 0 rlhe Winter Springs gas ordinance, the City of Winter Springs wi 11 receive the bene lit of the same higher franchise fee purs1l1'Jntto the tenns uf Article X VII. The City Commission will be considering second reading and tinal adoption of the Gas Franchise Ordinance with your company on Novemher 26.2001 at 6:30 p.m. I would appreciate it if you attended that meeting in the cventlhat the City Commission bas any questions. Please contact me should you have any questions. Anthony A. Gargancsc AAG:ss Enclosure cc: Andrea Loren7.o-Luaces, City Clerk (w/enclosure) nDOCSICity "fWintcr Spnng,IF,.nch"", A~r:C1l1CIll\Don Kitllcrlull-7.01 J ,'" .~- 4'""'11'7 ~l:"'''''- t:l."l ~/ P.0? Sent By: BROWN,WARO,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21 -01 3:55PM; Page 8/26 ORDINANCE NO_ 2001-53 AN ORDINANCE OF THE CITY COMl\HSSION OF THE CITY OF WINTER SPRINGS, FLORIDA RELA TING TO TIlE GRANTING OF A GAS FRANCHISE WITHIN THE CITY OF WINTER SPRINGS TO FLORIDA PUBLIC UTILITIES COMPANY; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS; PROVIDING FOR SEVERABILITV; AND PROVIDING FOR AN KF.FECTIVE DATE, WHEREAS, the City is authorized to grallt one or more non-exclusive, franchises to construct, reconstruct, operate, and maintain a natural gas system within the City; and WHEREAS: the City finds it in the public inlerest to make available within its corporate limits high-ql1.1lity and reliable natural gas service; and WHEREAS, the City finds it in the public interest to retain regulatory aUlhority over the provision of natural gas service, to the extent allowed by law, because of the overriding public health, safety and welfare considerations associated with the provision of this service; and WHEREAS, the City finds it in the public int~rest to rerain control over the use of public rights-of-way by providers of natural gas to prohibit interference with the public convenience, to promote aesthetic considerations, to promote planned andcfficienl use of limited right-of-way space. and to protect the public investment of right-of-way property; and WHEREAS, the City finds it in the public interest to ensure that high quulity natural gas service is maintained through a responsive customer service procedure; and WHERF:AS, the City Commission finds that the granting of a non-exclusive natural gas franchise is the best means of assuring that the above described interests of the City of Winter Springs arc promoted and maintained; and WHEREAS, the City, after public hearings and due evaluation, has determined that it is in the best interests of the public health, safety and welfare of the City and its residents to approve this Gas Franchise NOW, THEREFORE, THE CITY COMMISSION OF THE errv OF WINTER SPRINGS HEREBY ORDAINS, AS FOLLOWS: Section 1. Recitals. Each and all of the foregoing recitals are hereby incorporated and ~cknowledged to be true and correct. Ciry of Winter Springs O"lin"n\,c No 2001.53 I'n,gc I nf 19 t-JOU-21-.?001 16:04 407 425 9596 94% P.08 .' Sent By: BROWN,WARO,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21 -01 3:56PM; Page 9/26 Section 2. Grant of Franchise. The City ofWinlcr Springs hereby grants, in accordance wit.h the foregoing, a gas franchise to Florida Public Utilities Comp3J1Y: 1. SHORT TITLE. 1.1 111is Ordinance shall be known and may he cited as "Winter Springs Natural Gas Franchise". II. PURPOSE AND GOALS. 2.1 Purpose. The City finds th:'lt the development and maintenance of a natural gas distribution sysLcm ha.-; the potential of having great benefit and impact upon the people of the City. lhe City further finds that the public convenience, safety and general welfare can best he served by exercising regulatory powers which are vested in the City or such persons as the City shall designate. It i::; the intent of this Ordinance to provide for aml specify the means to anain the best possihle public interest and public purpose in the distribution of natural gas within the houndaries o[the City. and this finding shall be an integral part of this Ordinance. Further, the City recognizes that natural ga3 has, as a fuel source, the capilbility of providing abundant clcan-burning and efficient energy to the City's residents and commercial businesses. 2.2 Goals. contained herein: For these purpos~s. the following goals underlie the regulllti.ons and provisions (a) Natural gas should be made available to all City resldents 'and conuncrcial businesses in accordance with the Florida Public Utilities Company Natural Gas til!iff filed with the Public Service Commission and any amendments, modifications, or revisions thcreto. (b) The Natural Gas Distribution System should be cilpablc of accommodating both the cum:nt amI n:a.sonably foreseeable future energy nt=eds of the City. (c) The Natural Gas Distribution System should be improved and upgraded, if lleccs:;;ary, during the franchise term so that the new facilities necessary for the operation of this system shall be integrated to the maximum extent possible with existing facilities. elly uf Winter Spring, Ordinance N(\. 200 I-53 Page 2 "f 1(1 1""'\.'" r'j ~c Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21-01 3:56PM; Page 10/26 III. DEFINITIONS. For the purpose of this Ordinance, the following tenns and words shall have the meaning a.."icribcd to them, unless the context clearly indicates otherwise: 3.1 "Agreement" or "Fnmchise" shall mean this grantoffranchise, as amended from time to time, which shul I constitute authorization, voluntarily entered inro by the Company and granted by the City, for the purpose of providing the Company authorization to construct or operdte a Natural Gas Distribution System in rhe Franchise Area. Any such authorization, in whatever form granted, shall not mean or inc1ud~ any license or permit required for the:: privilege oftransacling and carrying on a business within the City as required by any City ordinance or resolution. 3.2 "City" means the City of Winter Springs, a Florida Municipal Corporation, its Succl;:ssors and assigns. 3.3 "Company" means Florida Public Utilities Company, a Florida Corporation, its successors and assigns as authorized hereunder. 3.4 "Franchi!lc Areas" means all of the territory within rhe incorporated City, and such additional rcrrirory as may be from time to time annexed into the City. 3.5 "Gross Annual Revenue" means all receipts derived by the Company (lirectly from the transport and sale of natural gas in the Franchise Area, excluding receipts derived from large volume commercial clIstomers utilizing in excess ofan average of500 Thcnns of Natural Gas per month (i.e., large motel. Outback restaurant). . 3.6 "Natural Gas" means natural gas in a gaseous state. 3.7 "Natural Gas Distribution System" shall mean the transmission pipelines or any related equipment, facility, or huilding necessary or desirable to the transportation or delivery or natural gas, or its treatment or storage during the course of transportation or delivery, under the control of the Company, for the transmission, distribution or sale of Natural Gas pursuant to this Ordinance, or any part thereof 3.8 "Public Ri~ht-of-Way" means the surface, the air ~pace l'lbove the surface, and the area below the surface of any public street, sidewalk, bridge. waterway, utility easement, or other public property, which shall entitle the City and the:: Company to the use thereoffor the purpose of installing and maintaining the Company's Natural Gas Distribution System. No reference herein, M in any Franchise, to the "Puhlic Right-of- Way" shall be deemed to be a representation or guarantee by the City that its title to any property is sufficient to pcm1it its use for such purpose, and the Company shall. by its use of such terms, be deemed to gain only such rights to use property in the City as the City may have the:: undisputed right and power to give. City of Winler $prings Ordinlm~c No. 200l-.'i~ Puse 3 of ]9 ''In'I_~1_-'nn. it""",' A""''''' .A'Ic:" ac::-ac 0.... o ." Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; NO'J-21-01 3:56PM; Page'1/26 J.9 "Transfer" means the disposal by the Company, directly or indirectly, by gift, ~signment, voluntary sale, merger, consolidation or otherwise, \If t" Gllty pc, CGlLt (20%) VI I/lOt" at OtlG tim~ of the ownership or controlling interest in the Company, \11 tIurly-fivc pelccut (J5%) cUlllula:ti,dy 0"_1 Un;: kllU oftI., rl.im.h~;)\. of ~mch iutl:Oldt5 to a corporation, partnership, limited partnership, trust or association, or person or group of persons acting in concert or a change in control. Transfer shall not include any transfer or assignment to a peTson controlling, controlleu by, or under the same conunon conlrol as the Company. IV, GRANT OF FRANCHISE. 4.1 Grant of Franchise. The Company is hereby granted a Natural Gas Franchise, subject to the tem1S and conditions of this Franchise. Pursuant to this Franchise, the Company may construct, operate, and maintain a Natural Gas Distribution System in, under, over, along, across or upon the Public Rights-of-Way within the City for the purpose of transmission, distribution and sale of Natural Gas for conuncrcial, industrial, and residential use, in accordance with the provisions of Chapt~r 337, Florida Statutes and subject to any right-of-way regulations which are duly adopted by law. In exercising rights pursuant herelo, the Company shall not endanger or intertere with the lives of persons, interfere \villi any structures, buildings) or facilities of the City, tlny public utility, or any othcr person permitted to use the Public Rights-of-Way, nor unnecessarily hinder or obstruct the irce W;~ of the Public Rights-of- Way. The grunt of this Franchise does not establish priority for use over other present or future pem1it, license. or utility franchise holders or the City's own use of the Public Rights-of-Way. ^II rights granted for the construction, reconstruction, mairiteilanc'e, iuid operation of the Natural Gas Distribution System shall be subject to the continuing right of the City lo approve such reconstruction or relocalion of the Natural Gas Distribution System in the Public Rights-of- Way as shall, at the sole discretion 0 f the City, be in the public interest. 4.2 Franchise Not Exclu.~ivc, Ibe grant of this Franchise shall be non-exclusive and shall not afrect the right of the City to grant t{) ibdf 01 any other person the right to: build, operate, or own a Natural Gas Distribution System; occupy or use the Public Rights-of-Way for the construction, reconstruction, mainttmance, and operation of a Natural Gas Distribution System or for any purpose whatsoever. No privilege or JXlwer of eminenl domain is bestowed on the Company by thc grant of this Franchise, but this Franchise shall not be construed to limit the Company's power of eminent domain under state law. 4.3 Event of Conflict. In the event of conflict between the terms and conditions of any agreement hdwt:en the parties and this Ordinance, (his Ordinance shall control. In all events, the Company shall comply with all laws, ordinances and rcgulations enacted hy the City pursuant to its lawful police and regulatory powers as authorizeu by law. This Franchise is hereby made Cit), "rWintcr Spring$ Ordinance No. 2001-53 f'asc 4 nf 19 Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21 -01 3:57PM; Page 12/26 subject to the general City Code provisions now in el1ect and hereafter made effective. Nothing in the franchise shall bl: u~t::med to waive the requirem~nts ofthe various codes of the City regarding pcrmi Is, laxes, and fees to be paid. . v . EFFRCTIVE DATE OF FRANCHISEj TERM. 5.1 Effective Date. The effective dale of this Franchise shall be 2001. 5.2 Term. The Lerm of this Franchise shall be for a period of thirty (30) years from the effeclive date unless :sooner terminated as provided ror in this Franchise. The Franchise shall terminate on , 2031. VI. FRANCHISE OPERATION. 6.1 Use of Public Rights-of-Way. For the purpose of operating and maintaining a NaLural Gas ~istribution System inlhe Franchise Area, the Company may crect, install, construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the public streets and ways within the Franchise Area such pipes, appurtenances, or related attachments or equipment and other property and equipment as are necessary to the operation of the Nutural Gas Distribution System; provided, however, that the Company complies with all design, construction, safety, and performance provisions contained in this Franchise, applicable local ordinances, and stale and federal law. 6.2 Right of Condemnation Reserved. Nothing herein shall limit any cighllhe City may have (0 iil:quire by eminenLdomain or otherwise any property of the Company; provided, however, that any such acquisition shall be for a price that values the CClmpany's property as allowed hy law. 6.3 City's Right to Perform Public Work'!. Nothing in this Franchise shall be in hindrance to the right of the City or any governmental authorily to perform or carryon, directly or indirectly, any public work:. ur public improvements of any description. Should the Natural Gas Distribution System in any way interfere with the construction, maintenance or repair of such public works or public improvements, the Company shall, at its own cost and expense, protect or rdocate its Natural Gas Distribution System, or part thereof, as reac;onably directed by City otlicials or any govenunental authority. 6.4 Emergency Response, The Company shall respond promptly in the case of fire, emergency, or disaster in the City. The Company shall he responsible to take all prudent actions necessary to mitigate any hazardous impact its Natural Gas Distribution System could contribute to any lire, emergency, or disaster at it's 0...1'11 expense. Cily uf Winter Springs Onlinancc No. 2001-53 rage S of 19 ._-. .""c:::" r:lC"CC 011'/ P.1;:> Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21.01 3:57PM; Page 13/26 6.5 Removal or Abandonment. lfthe Company elet.1:S to remove any portion of the Natural Gas Distribution System, the Company shall restore, in accordance with the directions and spel.:itications of all affected departments and agencies of the City and aU applicable law, any property, public or private, to its original condition prior to the removal of the Natural Gas Distribution System. . 6.6 Time Is of the Essence. \Vhenevcr this Frant.:hise shall set forth anytime for any act to be performed by or on behalf of the Company, such time shall be de~med to he of the essence. and any failurc of the Company to perform within the time allotted shall be sufficient ground for the City to invoke any applicable provision of the City Codl:: or this Franchise. 6.7 No Waiver of Rights. No course of dealing beh....ecn the Company and the City nor any delay on the part ofrhe City in exercising any rights hereunder shall operate as a waiver of any such righb oft.he City or acquiescence in the actions orthe Company in contravention of the City's rights, except to the extent expressly waived by the City in writing or expressly provided for in the Franchise. VII. TRANSFER OF OWNERSHIP OR CONTROL. 7 .1 Transfer of Franchise. This Franchise shall not be sold, TransJerre.d,leased, assigned or disposed of. including but not limited to, by forced or voluntary sale, mcrgL'T, consolidation. receivership or other means without the prior written consent of the City, and then only under ~uch reasonable conditions as the City may establish which mayJ(lclude..b.~t not ~e limited to financial guarantees to the NAtural Gas Distribution System. '~Ki'd:;;d6it~~6.t:sH'~t1!i!fr(.jVbt Dijjb~~1iw::~itRtm1a; 7.2 Transfer Threshold. The Company shall promptly notify the City of any actual or proposed change in, or Transfer of, or acquisition by any other party of, control of the Company. 7.3 City Approval. Every change, Transfer, or acquisition of control of the Company shall make the Franchise subject to canl.:ellation unless and until the City shall have consented thereto in writing. For the purpose of detcnnining whether it may consent to such change, Transfer, or acquisition of control, the City may inquire into the legal, [mancial, character, technical. and other public interest qualifications of the prospective Transferee or controlling party, or the term~ and conditions of the proposed change, transfer, or acquisition of control, and the Company shall assist the City in obtaining all required information. failure to provide all reasonable information requested by the City as part of said inquiry shall be grounds lor denial of the proposed change, Transfer or acquisition of control. 7,4 Signatory Requirement. Any approval by the City of Trans fer of ownership shall be contingcnt upon thc pro!ipective assignee becoming a signatory to the Pranchise. City nrWintcr Sprin8~ Ordinance No. 2001-53 p8j;c6or 19 ~ 11'""1' I ~. -.~,-. . . ,- . """' ,1 ,l n"" " 'iC' oco::: 1:).-1./ P 1\ ,Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21-01 3:58PM; Page 14/26 VITT. FRANCHISE FEES. 8.1 For years one (1) through fifteen (15) the Company shall pay to the City a Franchise Fee of six and half percent (6.5%) of the Gross Annual Rev~nLl~s excluding bad debts, taxe::; and fees collccted by the Company on behalf of any governmental agency. For years sixteen (16) through thirty (30) the Company shall pay to the City a Franchise Pee of seven percent (7%) of the Gross Annual Revenues excluding had debts, taxes and fees collected by the Company on behalf of any governmental agency. 8.2 Frnnchise Fees in Addition to Other Tues or Payments. Payment of the Franchise Fce made by the Company 10 the City shall not be considered in the nature of a tax, but shall be in addition to any and all taxes of general applicability which are now or may be required hereafter to be paid by any Federal, State, or local law. 8.3 Acceptance by the City. Subject to applicable law, no acceptance of any payment by the City shall be construed as a releasc Or as an accord and satisfactjon of any claim that the City may have tor further or additional sums payable as a franchise Fee under this Franchise or for the performance of any olher obligation of the Company. 8.4 Failure to Make Required Payment. [n the cvent that any Franchise Fcc or rccompul~d amount is not made on or hefore the dates specified herein, the Company shall pay a$ additional compensation an interest charge, computed from such due dale, at an annualized rate equal to the commercial prime interest rate of the City's primary depository bank during the period that such unpaid amount is owed. 8.5 Periodic Payments to Be Made. The Company shall make fee payments of monies due hereunder within thirty (30) days of the end o reach calendar quarter for Franchise Fees ~;r~~:~~~:c\!;~i~iw~'&'~lIIIlI:~iI~\I~~i Reventi<bs; Accompanying said payment, the Company shall also provide a written report of its Gross Revenues gcnerated in the Franchise Area for th~ prct.:~ding quarter's period. 8.6 City Right to Inspection. The City, at its discretion, shall have the right to inspect the Company's Gross Annual Revenue records, to audit, and to recompure any fee amounts. Inspections, audits or recomputations may bc pertonned either by the City or an independent firm selected by the City and qualified for sllch purposes. No audit of the Company's records relating to Gross Annual Revcnues shall take place later than thirty-six (36) months following the close of each of thc Company's fiscal years. Audits that result in payment of four percent (4%) or more of Franchise Pecs during the audit period, shall be at the expense of the Company. Any additional amount due to the City as a result of the audit shall be paid within thirty (30) Days of notice by the City, unless the Company disputes the results of the audit 'lne Company agrees to meet with the City and willl'lnempt in good faith to resolve any differences. Thereafter, the additional amount due City of Wi Iller Springs O"linllncc No. 2001-53 I'R!'.C 7 of 19 t~OV-21-.~001 16: 04 407 425 9596 q.1'/ P 1.1 Sent B'y: BROWN,WARD,SALZMANSWEISS,P.A.; 407 425 9596; Nov-21 -01 3:58PM; Page 15/26 shall be subject to payment within thirty (30) days after ~ajd additional amount is determined to be due by the Company and the City, or the City declares an impasse in the negotiations with the Company. 8.7 Payments Due in Event of Termination or Expiration. In the event that the Company continues the operation of any part or all of the Natural Gas Distribution System beyond the termination, revocation, or expiration of the Franchise granted herein, it shall continue to pay to the City the Franchise Fee in the manner set forth in this Franchise. This ~ection shall not bc con~trued to authoriu the operation of the Natural Gas Distribution System beyond the termination, revocation, or expiration of this franchise. 8.8 Alternative Fee Contingencies. In the event thaI the Company's obligation to pay a Franchise Fee is held invalid by a decision of any court of competent jurisdiction or due to the actions ofany legislative body, the Company shall negotiate with the City in good faith and shall agree, if permissible undeJ then applicable law, to provide compensation to the City in lieu of the hanchise Fee. The amount uf l:ompensation shall, to the extent pennitted by applicable law, as amended from time to time, be comparable to that which the Company would pay as the franchise Fee under the terms or this Franchise and shall be passed through to the natural gas customers in a mannl:r similar to the Franchise Fee. 8.9 Other Fees and Taxes. To the extent that any federal or stale law or r~gulaLion may now forhid the City from assessing any type offee or tax, upon repeal, modification, or judicial/udministrative interpretation of said law or rule that would permit the City to assess said fee or tax, the City shall have the right to assess said fee or tax to the full extent authori~t:d by law; provided, that the City shall first consult with the Company. Upon such occurrence, the parties shall meel and confer within ninety (90) days of notice from the City to in good faith negotiate Franchise provisions to implement the collection of said fee or tax. IX. ~'ORFF.ITURE OR REVOCA TION. 9.1 Grounds for Revocation. The City reserves the right to revoke any Frmchisc grantcd hereunder, pursuant to the procedure in paragraph 9.4, and rescind all rights and privileges assoc.iatcd with the Franchise in the following circumstances, each or which shall represent a default and breach of this Franchise: (a) Company has defaulted in the pt:'r[onnancc of any of the material obligations under this Franchise or any provision of the City Code not conflicting with this Franchise; (b) Company has failed to provide or maintain in full force and effect the liability and indemnification coverage as required herein; City of Winlt:r Springs Ordinance No. 2001-53 PRgc80f 19 NOV-21-2001 16:04 407 425 9596 94;~ P.15 Sent By: BROWN,WARO,SALZMAN&WEISS,P,A,j 407 425 9596j Nov-21-01 3:58PMj Page'6/26 (c) Company has violated a material provisi on of any orders or rulings 0" any regulatory body having jurisdiction over the Company relative to this Franchist: and any regulatory ordinance of the City, and the Company fails to begin eure within five (5) business days ofnotke from the City and to complete cure within a rea<;onable time after notice, as determined by the City; (d) Company has committed any act of fraud upon the City or natural gas customers; (e) Company has acted grossly negligently, as defined by general law, in maint..1ining or operating the Natural Gas Distribution Systcm provided in this Franchise; (t) or is adjudged bankrupt; Company has become insolvent, is unable or unwilling to pay its debts, (g) Company has made a material misrepresentation of fact in thc application for or negotiation of the Franchise or any extension or renewal thereof; and (h) Company has failed to pay the Franchise Fee in the manner provided in this Franchise. 9.2 Effect of Circumstances Beyond Control of Franchisee. The Company shall not be declared at fault or be subject to any sanction under any provision of this franchise in any case, in which performance of any such provision is prevented for reasons beyond lhe Company's control. For the purposes of this Franchise, causes or events beyond the Company's control shall include, v,rithOllt limitation. acts of God, floods, earthquakes, landslides, hurricanes, fires and other natural disasters, acts of public enemies, riots or civil disturbances, sabotage, strikes and restraints imposed by order of a governmental agency or court. A cause or event shall not be deemed to be beyond the Companyts control if committed by a corporation or other bu.')iness entity in which the Company holds a controlling interest whether held directly or indirectly, when such fault is due to Company's financial inability to pertorm or comply, economic hardship, or misfeasance, malfeasance or nonfeasance by any of the Company's directors, officers, employees or contractors or agents. 9.3 Effect of rendiD~ Liti~ation, Pending litigation or any appeal to any regulatory body or court having jurisdiction over the Company shall not excuse the Company from the performance of its obligations under this Franchise, unless spel,;ilically provided for by court order or by the regulatory body having jurisdiction over such matters. Failure of the Company to perform such obligations because of pending litigation or petition may result in forfeiture or revocalion pursuant to the provisions of lhis section. 9.4 Procedure Prior to Revocation. The City Manager shall notify the Company in writing of the exact nature ofrhe alleged violation constituting a ground for termination and give City ofWintet' Springs Ordinance No. 2001-53 rage 9 of 19 ......, .... o 1<=, gent By: BROWN,WARD,SALZMAN&WEISS,P.A. j 407 425 9596j Nov-21-01 3:59PMj Page 17i26 the Company thirty (30) days, or such greater amount or time as the City Manager may specify, to correct such violations or to present facts and arguments to the City Manager to refute the alleged violation ("Cure Period"). If by the end of the Cure Period the Company does not remedy the violation or convince thc City Manager lhere is no violation, the City Manager shall schedule a public meeting of the City Commission for purposes of addressing the alleged violation. The Commi~c.;ion meeting shall be held within thirly (30) days from the expiration ofthc Cure Period. The City Manager shall promptly provide the Company written notice o[the Commission meeting. During the Commission meeting, the City Manager, Company, and all interested partie~ ~hall have the right to be heard in person and through counsel, present evidence, and cross examine adverse witnesses. At the conclusion of the Commission meeling, the Commission may suspend or revoke the Franchise, ifit dctermines that thcre are sutlicient grounds which warrant sueh action; otherwise, the rranchise remains in full force and effect. The Company shall not be held in default nor suffer any penalties where non-compliance or default is caused by an event beyond the Company's control, as stated in Section 9.2. The Company shall have the right of review by a court of competent jurisdiction upon any determination by the City Commission to suspend or revoke this franchise. However, nothing contained herein shall prohibit the City from seeking an equitable remedy including but not limited to injunction relief or spccific performance. X, LIABILITY AND INSURANCE. ) 0.1 Certificate of Insurance. In no event latcr than thirty (30) days after the erfel:live date of this Franchise and thereafter continuously throughout the duration of this franchise and any extensions or renewals thereof, the Company shall furnish to the City, certificates of insurance, upproved by the City, for all types of insurance required under this section. Failure to furnish said certificates of insurance in a timely manner shall constitute a tailure to faithfully comply with this franchise. At the City's request, the Company shall furnish certificates ofinsurance which are in effect from time to time. 10.2 No Lillhility Limit. Neither the provisions of this article or any damages recovered by the City hereunder, shall be construed to limit the liability of the Company for damages under this Franchise. 10J Endorsement. All insurance policie:s maintained pursuant to this rranchise shall contain an endorsement in substantially the following form: It is hereby lUlderstood and agreed that this insurance policy may not be modified or canceled by the insurance company nor thc intention not to renew be stated by the insurance company unlil thirty (30) days after receipt by the Cit)' of Winlt-'T Springs City Manager by certified mail, of a written notice of such intention to cancel or not to renew. 10.4 State Institution. Except for self-insured policies, all insurance policies Cil)' of Winter Spring~ Ordinance No. 200 1-5J f'3g~ 10 nf II) ~ ,~.. -... -",~.-, . ~ ".. . n "" /1r.:\'/ .1 -:l,,\ qc::qc. 04% P.l? Sent By: BROWN,WARD,SALZMAN&WEISS,P,A.j 407 425 9596j Nov-21-01 3:59PM; Page 18i26 provided pursuant to this franchise shall be written by companie~ authorized by thc Florida Insurance Commissioner to do busincss in the State of Florida as an insurance company. 10.5 Named Insured. The City shall be an additional named insured for all insurance policies written pursuant to this Franchise. 10.G Changes in Polil.")' Limits. To offset the effects of inOation and to ret1ccr changing liability limits. all of the coverage, limits, and amounlS of the insurance provided for herein arc subject to reasonable increases at the end of every three (3) year period of this Franchise, applicable to the next three (3) year period. allhe City's discretion. 10.7 Commercial General Liability In~urance. The Company shall maintain throughout the tcnn of this Franchise, general liability insurance insuring the Company in the minimum of: (a) $1,000,000 for property damage single limit; and (b) $3,000,000 single limit liability for pen;onnJ bodily injury or dcath to anyone person. Such general liability insurance must incl ude coverage for all of the following: comprehensive form, premises operations, explosion and collapse hazard, undergroWld hazard, products/completed operations ha7.ard, contractual insurance, broad form property damage, and personnl injury. 10.8 Automobile Liability Insurance. The Company shall maintain throughout the term of this Franchise, automobile liability insurance for owned, non-owned, or rented vehicles in the minimum amount of: (a) $1 ,OOO,OOOsingle limit liability for bodily injury and conscquc'Tltdeath per occurrence; and (b) $1,000,000 for property damage per occurr~nce. 10.9 Worker's Compensation. The Company shall maintain throughout the tem1 of this Franchise, worker's compensation in the minimum amounl or the statutory limit for worker's compensation, as amended from time to time, XI, INDEMNIFICATION AND HOLD HARMLESS. 11.1 Indemnity and Hold Harmless. The City shall in no way be liable or responsible for any accident or damage caused by the Company that may occur in the construction, City of Winter Spril1&S Ordiolmcc No. 2001-53 rAge II of 19 ..n"" A~l:'" Oc:'oc 0.1"_' P. 1~ gent By: BROWN,WARD,SALZMAN&WEISS,P.A.j 407 425 9596j Nov-21.01 4:00PMj Page 19/26 operation. or maintenance by the Company of the Natural Gas Distribution System, and the acceptance of this Franchise on the part of the Company shall be deemed an agreement on the part (lfthe Company to fully indemnify, defend and hold harmle~!'; the City and its officers, boards and Commission, contractoni, aUomeys and City employees against the full amount of any (i) claims, (ii) liabilities, (iii) actions. (iv) suits, (v) proceedings, (vi) payments, (vii) assessments. (viii)judgments, (ix) losses, (x) damages, (xi) costs and (xii) expenses (including interest, penalties and reasonable attorneys' rct;S and disbursem~nts) claimed against the City in connection with the following: (a) To persons or property, in any way arising out of or through thc acts or omissions of the Company. its servant~, agenls or employees; and (b) Arising out of the Company's failure to comply with the provisions of any federal, slale, ur loc.allaws, ordinances, or regulations applicable to the Company in its business here\U1der. 11.2 Condition. The foregoing indemnity is conditioned upon the City giving the Company prompt notice of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this section. Nothing herein shall be deemed to prevent the City fi.om cooperating with the Company and participating in the ddense of any litigation by its own counsel at its o\Vn costs and expense. XII. DRSIGN AND CONSTRUCTION PROVISIONS. 12.1 Authorization to Commence Construction and Application Procedures. Prior to the installation or erection of any pipelines, towers, poles, conduits, fixtures, or other appurtenances thereto. other than minor or emergency excavation and maintenance, or the upgrade or rebuild of the Natural Gas Distribution System, the Company shall firsl ~ubmil to the City for review a concise description of the facilities proposed to be maintained, erected, removed, or in~tuJled. including engineering drawings, if required by the City. No erection, excavation, or installation of any part of the Natural Gas Distribution System, or any olher appurtenances thereto, shall be commenced by any person until pmpcr permits have been receivcd from the City, except in the event of an emergency. 12.2 City Maps. The City does not guarantce the accuracy of any maps showing th~ horizontal or vertical location of existing substructures or utilities. 12.3 Compliance with Construction and Technical Standards. The Company shall install or erect any pipelines, towers, poles, conduits, fixtures, or other appurtenances thereto, in accordance with commonly accepted good engineering practices and technical standards. The Company shall comply with all applicahle construction and technical codes adopted hy local, state, and federal law. City or Winler Springs Ordinance No. 2001-53 PUb'" 12 of 19 flnl-"J1_"J(>(>11<=,:(.'\-1 .1(.'\'7 01"J<:; q<:;qc; q,1i~,. P. 1'3 'Sent By: BROWN,WARD,SALZMAN&WEISS,P.A.j 407 425 9596; Nov-21-01 4:00PM; Page 20/26 12.4 Quality of Construction. Construction, installation, reconstruction, operation, and maintenance of the Natural Gas Distribution System shall be performed in an orderly and workmanlike manner, in accordance with then current technological standards. The Company shall use its best efforts to install or erect the Natw'al Gas Distributiun Sy!)lem parallel with existing other utilities located in the rights-of-way. Nothing herein shall preclude underground installation. 12.5 Underground Installation. (a) All installations of the natural gas transmission pipelines shall be underground unless otherwise approvcd by the City in \\-Titing. No paved street, alley or other paved Right-of- Way shall be cut unless approved by the Cily in writing, except in case of emergency. (b) Prior to pcrf{llming any underground construction, lh~ Company shall use its bcst efforts to locate, in advance, any water, sewage, gas, electric, cable, drainagc, or other utility lines, including compliance with Chapter 556, Florida Statutes, to the extenl applicable. Where any damages or alterations occur to said utility lines in the public right-of-way as a result of construction, reconstruction, maintenancc, or removal ofthe Natural Gas Vistribution System by the Company, its agent!> or independent contractors, the cost of such repairs including all services and materials will be the responsibility of the Company to the extent provided in Chapter 556, Florida Statutes and Jaw. 12.6 Construction Notice. Except with regard to routine mainlt:nance and emergency circumstances, the Compan)' shall give appropriatc notice to the City and residents v.ithin a reasonable period oftimc of proposed conEilruction, reconstruction, excavation, laying or stringing of the Natural Gas Distribution System under streets or on poles, but in no event shall such notice be given less than five (5) business days before such conunencemcnt. 12.7 Interference with Persons, Public and Private Property, and Ulililit:S. Tht: Company's Natural Gas Distribution System and all appurtenances shall be located, erected and maintained so that such system shall: (a) Not endanger or interfere with the health. safety or lives of persons; (b) Not tnll:.Tfere with any improvements which the City, county Of !)lale may deem proper to make; (c) Not interfere with the free and proper use of public rights-of-way, alleys, bridges, easements or other public property, except to the minimum extent possible during actual constntction or repair; (d) Not interfere with the rights and reasonable convenience of private property owners, except to the minimum extent possible during actual construction or repairs; and City of Winter Springs Ordinnncc Nil. 2001.B V_be I.. "r 1 iJ ~.Jnll-?1-?(,\(,\1 1 ~: c::t4 4c:l7 4~C:; qc:;qJ; 94:-: P.20 'Sent 8y: BROWI'J,WARO,SALZMAN&WEISS,P.A. j 407 425 9596; Nov-21-01 4:00PM; Page 21/26 (e) Not obstruct, hinder or interfere with any ga<;, cable, electric, water, wastewater, reclaimed water, stormwater drainage, telephone, or other utility facilities located \vithin t,he City. 12,~ Restoration to Prior Condition, Tn ease or any disturbance of pavement, sidewalk, driveway or other surfacing, the Company shall, at its own cost and expense, and in a manner approved by the City, replace and restore all paving, sidewalk, driveway, landscaping, or surface of any street or alley disturbed, in as good a condition ~ bdore said work was commenced nncl in a good workmanlike, timely manner in accordance with standards for stich work set hy the City or the govcrnrnmtal entity having operational and maintenance responsibility for the Public Right-of- Way. Unless otherwise approved by the City Manager, such restoration shall be undertaken within ten (I 0) hu~ine~~ days arter the damage is incurred and shall he completed as soon as possible thereafter. 12,9 Private Property, The Company shall promptly repair or replace all private property, both real and personal, damaged or destroyed as a result of the construction, installati?n~ o.~~~,?t~:~~:g~;~~,~:t;?!~~~~\~_~;!gt:~~;~i~:~Y~I;..9,~:;:Bi~~{~~~~!ggf~~;~~;:~~:i~~::,~;g~:~~~rkB~~~~-~~::""~~' hY~C9-!1m~~y..;~h~li~~ptd~:~+;a~;;~~~!~~J&llih~:~~ili~~'Eflg;:.-rt#i6t~ti~h:df~:Nkhtrai ~,bi~tribiiti off$ystem-at~llieot6Pi.ttY;.ownerjs~re'qcieSt)'! 12,10 Progress Report~, For work involving Public Right-of- Way excavation for other than in the event of an emergency, prior to commencing construction, the Company shall provide the City with a schedule for completion of said work and keep the City informed of the construction progress as reasonably necessary. 12.11 Anncx~tion. In the event of annexation of any territory to the present corpordtc limits of City, any and all portions of the gas system of Company located in said annexed territory shall be subject to ail of the terms and conditions of this franchise as though it were an exten~ion made hereunder. XIII. BOOKS AND RECORDS AVAILABLE TO CITY. 13.1 Records. With advance wriUcn request, the City shall have the right Lu inspect at any time during normal business hours, all books, records, maps, revenue statements, service complaint logs, performance test resull" and other like materials of the Company which relate Lo thl:: opl:ration and cnforc~ment of the franchise within the City. Access to the aforemenlioned records shall not be denied by the Company on the basis that said records contain "proprietary" information, unless applicable law exempts said records. 13.2 Review. The Company shull peI1uit, during the Company's l10nnal business hours, any duly authorized representative oflhe City to examine, at the City's discretion, any and all City of Winter Springs (lrdin;ll1ce No, 2001-5:\ ""Se I 4 nf 1 Q 1,ln I-:J 1 - :J(1(:1 1 1 C. : c:l.1 .1c:\? .1:JC:; qc:;qh q.1% P.::?1 ~ent By: BROWN,WARO,SAlZMAN&WEISS,P.A.; 407 425 9596; Nov-21-01 4:01PM; Page 22/26 maps and other records kept or mnintaincd by the Company or under its controll:um;~rning the operations, affairs, transactions or property of the Company relati ve to the Narural Gas Distribution System operations in the City. The examination shall take pl~ce at the Company's place of business. 13.3 Reports to Be Filed. The following tlnancial reports for the Franchise area shall be submitted to the City: (a) An annual report prepared by the Company or the parent company of the Company shall be provided annually at the time said report is published. (b) A quarterly financial report showing the Company's esti.l:htiWd quarterly woss R~venues and quarterly franchise fees collected in the Pranchise Area, pursuant to Paragraph 8.5 herein. 13.4 Other Records, The City may impose reasonable requests for additional information, records and docwnents from time to time, and the Company shall produce said records v.rithin ten (10) business days, so long as such request relates to the City's enforc~m(;nt abilities under this Franchise or [he City's ordinances or resolutions. XIV, PREFERENTIAL OR DISCRIMINATORY PRACTICES PROHIBITED. All services rendered and all nlles and regulations adopted by the Company shall have generalllPplication to all persons and $hall not subject any person to prejudice or-disadvantage on account of race. gender. religion, origin, or ethnicity. The Company shall not deny Natural Gas service to any group of potential residential customers within the City because of the income of the residents of the area in which such group resides. The Company shall not charge customers different rates for Natural Gas service for the same class or type of service, unless the different rate is approved by the Public Service Commission as part of the Company's tariff. XV. SERVICE STANDARDS ) 5.1 Operation. The Company shall maintain and operate ilS Natural Gas Distribution System and render emcicnt service in accordance with the rules and regulations us are. or may be. set forth by the City Commission of the City of Winter Springs as provided in this Franchise and by the Public Service Commissiun. 15.2 Planned Downtime. lhe Company shall provide reasonable notice to nIl City of \Vin~r Springs ()nlinllncc: No. 2001-53 P"flc 1 S nf III to)-21-2001 16: 04 407 425 9596 94% P.2,'2 . Sent By: BROWN,WARD,SALZMAN&WEISS,P,A,; 407 425 9596; Nov.21.01 4:01PM; Page 23/26 customers who will be affected by an interruption of service for the purpose of repairs to, and installation of, the Natural Gas Distribution System to customers. 15.3 Rules and Rcgulatious. Company shall hav~ the right to adopt and enforce rules and regulations with respect to the extension, initiation and rendering of gas service, provided lhe same are not im:onsistent with this Ordinance, including rutes providing [or the discontinuance of service to any customer for nonpayment of bills whcn due, or for failure to comply with the Company's other rules and regulations. All rates for gas and rules and regulations established by C:ompany from t.ime to time .':\ha] 1 be those prescribed and approved by lhe Florida Public Service Commission. XVI. MTSCF.LLANROUS PROVISIONS. 16.1 No Joint Venture. Nothing herein shall be deemed to create a joint venture or princi pal-agent relationship hetween the parties, and neither party is authorized to, nor shall either party act toward third persons or the public in any manner which would indicate any such relationship with the other. 16.2 Entire Agreement. This grant and all City Code provisions regulating the distributiun, transmission, or sale of Natural Gas are incorporated herein by reference, represent the entire understanding and agreement between the parties hereto with respect to the subject matter hereof, and supersede all prior oral n~gotiations between the parties. This grant may be amemlt:d, supplemented, modi tied, or changed only by adoption of an Ordinance by the City and execution of an instrument agreeing to said amendment, supplementation, modification, or ehange in the terms hereof by the Company. 16.3 Provisions Cumulative. The rights and remedies reserved to the City by this Ordinance are cumulative and shall be in addition to and not in derogation of any other rights or remedies which the City may have with respect to the subject matter of this grant of franchise subject to applicable law, and a waiver thereof at any time shall have no effect on the enforcement of such rights or remedies at a future lime. 16.4 Notices. All notices from the Company to lhe City pursuant to this Franchise shall he st:nt to: Cit)' Manager, City of Winter Springs, Florida, 1126 East State Road 434, Winkr Springs, Florida 32708. All notices to the Company shall be sent to: Senior Vice President, Florida Public Utilities Company, 40 I South Dixie Highway, West Palm Beach, Florida 33401. The names and addn:ss in this sccljon may be: unilaterally amended by either party at anytime by giving written notice to the other party. 16.5 Captions. Captions to sections through this Ordinance are solely to facilitate the reading and reference to the sections and provisions of the Ordinance. Such captions shall not affect the meaning or interpretation of the Franchise. City of Wimer Springs ()nlimlOLe N/'I. 2(HlI-.'i.l Pdgc I ~ of 19 t 101 1-.::> 1-.::>(l(l1 16: 8.!l .1(:17 .1::>C:: qc::q::: q.~'.' D T? ~ent By: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21 -01 4:02PM; Page 24/26 16.6 Cit).,s Rights of Intervention. 1l1e Company agrees not to oppose intervention by the City if any suit or proceeding to whieh the Company is a party. concerning or involving the Company and the City's rights under this Franchise. 16.7 Governing Law. This Franchise shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of Florida. 16.8 Jurisdiction and Venue. The parties hereto agree that the !ltale or federal courts located in the State of Florida shall have the exclusive jurisdiction over the parties and the subject matter of any litigation between the parties arising hereunder. For purpose of slale court action, venue shall lie \\;thin Seminole County, Florida, and for the pUl-pose offederal court action, venue shall lie within Orlando, Florida. THE COMPANY HEREBY WAlVES RIGHT TO TRIAL BY JURY IN ANY ACTION DROUGHT ON THIS FRANCHISE OR ON ANY MATTER ARISING IN CONNECTION WITH THIS FRANCHISE. 1 tl. 9 Attorney's Fees. In the event of any litigation or arbilrdtion arising out of this Ordinance, the prevailing pany, to the extent permilled by law, shall be entitled to an award of its reasonable attorney's fees and court coste; incurred in such action. 16.10 Franchise Costs. The Company agrees to pay the public advertising costs incurred by the City in puhlishing newspaper advertisements required by law to grant this Fmnchisc or any renewal or assignment thereof. 16.11 Reneglltiation Clause. In the event of a material change in federal or Statc law(s) or Public Service Commission rule(s) or in the eventth~ Company enters into a franchise or other agreement with Seminole County or any other City within Seminole County which provides the County or other City more favorable Franchise Fees than provided to the City under this Franchise. the City and the Company mutually agree to renegotiate those particular tcrnlS of this Franchise affected by changes in said law(s), rule(s), or franchises or agreements. This Franchise shall remain in full force and effect until any negotiated amendments have been duly approved by both the City and the Company, however, if the Company fuils to negotiate said amendments in good Taith and in a timely manner, the City shall have the right to terminate this Franchise pursuant to paragraph 9.4 herein. 16.12 Purchase System. As a condition precedent to tht::' taking effeet of this Franchise, City hereby reserves and Company hereby gives and grants to City, the right ut and after the expiration of this franchise to purchase the Natuml Gas Distribution System used by Company under this Franchise at a valuation to be detennined by negotiation between the parties. or in the event an amount cannot be negotiated, by an amount determined by a Court of competent jurisdiction. City of Winter SpriJlg.~ Ordinance Nfl 2(101-,'1) Pag< I 7 nf I Q .. .fit '_ -. t -.,..".., . 4 ,- . n ,'4 .1"")-' " -.t::'" """'~-,. 1'""1 -. ,.f Sent Sy: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; Nov-21-01 4:02prl1; Page 25i26 xw; MijSt;F.AV:QRJn?;ttt~(bMf8E~f,~~'!:&fAijtt'jS;: 1~7.f3' Ltrfilljfttons~::;S~v~~:fhni~illie:fbi'adhbt~diii)nOefth'js'paraitriiph;iiliaJI:: al' !'i~I~~~l~I~~~I~~f~~~mir~;add 1;.; ill .,~w ;f1UI~~~tM~0ii1ii~:;9:imfZ=~;t~1j1~:1 Section 3. Incorporation Tnto Code. nus ordinance sha1l no' be incorporated into the Winter Springs City Code nnd any section or paragraph number or letter and any h~a.cling may be changed or modified as necessary to effectuate the foregoing. SeCtion 4. Severability, If any section, subsection, senlence, clause, phrase, word or provision of this ordinance is for any reason held invalid or unconstitutionnl by any court of competent jurisdiction, whether for substantive, procedural, or any other rcason, such portion shall be deemed n separate, distinct ar.d independent provision, and such holding shall not nffect the validity of the remaining portions of this ordinance. Cit), of Winter Springs Ordinance No. 200 I-53 r3gc l!l of 19 NOI)-21-2001 16: 04 407 425 9596 94% P.25 Sent B~: BROWN,WARD,SALZMAN&WEISS,P.A.; 407 425 9596; ., Nov-21-01 4:03PM; Page 26;26 Which: ;ffi.is!'OtdiLfS~~i~1}itlj~.~ii~ml;iri~;:~idf IN WITNESS WHEREOF, the parties h~reto have caw;ed this Franchise to be executed as of the day and year first above written. PAUL p, PARTYKA Mayor ATTEST: ANDREA LORENZO-LUACI!:S City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only Anthony A, Gargane.se, City AUorncy First Reading: Second Reading: Ef[e~live Date: t':\DOCS\Cily (If Wjlll~r Springs\Ordil\.1l~\rINAL DRAFTS\Ga~ Frdochisc Fi~ Draflll.21~1. wpd City of Wimer Spring~ Ordinance No. 2001-53 Page 19 of 19 NOl)-,21-2881 16: 84 407 425 9596 94% P.26 ,. " ORDINANCE NO, 2001-51 AN EMERGENCY ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA EXTENDING THE TERM OF THE NATURAL GAS FRANCHISE GRANTED BY ORDINANCES NO. 54; 2000-44; AND 2001-41 UNTIL NOVEMBER 12,2001 PROVIDfNG FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS; PROVIDING FOR INCORPORA TION INTO THE CODE; PROVIDING FOR SEVERABfLITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the current natural gas franchise ordinance, originally granted on December 21, 1970, will expire on October 1, 2001; and WHEREAS, the City staff has negotiated a new natural gasfranchise ordinance with Florida Public Utilities Company, and has provided a copy of the Ordinance to Florida Public Utilities Company to review; and 'WHEREAS, the City Commission is scheduled to hold only one (1) meeting prior to the expiration of the current gas franchise, therefore, an emergency exists requiring immediate and timely action to extend the franchise to allow for review and comment by the City Commission and public; and WHEREAS, the City Commission of the City of Winter Springs, Florida, hereby finds this ordinance to be in the best interests of the public health, safety, and welfare of the citizens of Winter Springs to extend the franchise term provided in Ordinance No. 54, and extended by Ordinance No. 2000-44 and 2001-41, for a period of time set forth herein in order to provide for the requisite public hearings. NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS HEREBY ORDAINS, AS FOLLOWS: Section 1. Franchise Term Extended. The natural gas franchise term set forth in Ordinances No. 54, 2000-44, and 200] -41 is hereby extended until November 12, 2001. All other terms and conditions contained in said Ordinances No. 54, 2000-41, and/or 2001-41 shall be unchanged by this Ordinance and shall remain in full force and effect. For reference purposes only, a copy of the most current draft of the proposed gas franchise Ordinance is attached hereto as Exhibit "A" to this Emergency Ordinance. Due to the short time frame before which the original gas franchise ordinance will expire, any and all comments from the Commission, staff and Florida Public Utilities Company regarding the proposed gas franchise Ordinance may be directed to the City Attorney's Office so the same may be considered for incorporation into the Ordinance. The proposed City or Winter Springs Ordinance No. 2001-5 I P'ge I of 2 " gas franchise Ordinance shall be subject to the City Commission's approval at a later date. Section 2. Repeal of Prior Inconsistent Ordinances and Resolutions. All prior inconsistent ordinances and resolutions adopted by the City Commission, or parts of prior ordinances and resolutions in conflict herewith, are hereby repealed to the extent of the conflict. Section 3. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent provision, and such holding shall not affect the validity of the remaining portions of this ordinance. Section 4. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. A T~EST: [/ . '- It L ~j-___ ANDREA LQREtfZO:LUACES-= City Clerk ( PAUL P. PARTYKA Mayor ADOPT~D by the City Commission of the ityof meeting assembled on the 24th day of September, 200 . ed as to legal form and sufficiency for of Winter Springs only orney Effective Date: September 24, 2001 Accepted by Franchisee (Florida Public Utilities Company C~_h > ~t ,~\:. ?b~~~ Print name/title: -:::=:J:::::)c'_., l-' '-'-" ~_ ~:-.r. 1<" \ ocr- ~ s.. ,- r'l <~ :;T'-. City of Winter Springs Ordinance No. 200 I-51 Page 2 of 2 , i1 DRAFT ORDINANCE NO. AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS, FLORIDA RELA TING TO THE GRANTING OF A GAS FRANCHISE WITHIN THE CITY OF WINTER SPRINGS TO FLORIDA PUBLIC UTILITIES COMPANY; PROVIDING FOR THE REPEAL OF PRIOR INCONSISTENT ORDINANCES AND RESOLUTIONS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City is authorized to grant one or more non-exclusive, franchises to construct, reconstruct, operate, and maintain a natural gas system within the City; and WHEREAS, the City finds it in the public interest to make available within its corporate limits high-quality and reliable natural gas service; and WHEREAS, the City finds it in the public interest to retain regulatory authority over the provision of natural gas service, to the extent allowed by law, because of the overriding public health, safety and welfare considerations associated with the provision of this service; and WHEREAS, the City finds it in the public interest to retain control over the use of public rights-of-way by providers of natural gas to prohibit interference with the public convenience, to promote aesthetic considerations, to promote planned and efficient use oflimited right-of-way space, and to protect the public investment of right-of-way property; and WHEREAS, the City finds it in the public interest to ensure that high quality natural gas service is maintained through a responsive customer service procedure; and WHEREAS, the City Commission finds that the granting of a non-exclusive natural gas franchise is the best means of assuring that the above described interests of the City of Winter Springs are promoted and maintained; and WHEREAS, the City, after public hearings and due evaluation, has determined that it is'in the best interests of the public health, safety and welfare of the City and its residents to approve this Gas Franchise NOW, THEREFORE, THE CITY COMMISSION OF THE CITY OF WINTER SPRINGS HEREBY ORDAINS, AS FOLLOWS: Section 1. Recitals. Each and all ofthe foregoing recitals are hereby incorporated and acknowledged to be true and correct. City of Winter Springs Ordinance No. Page 1 of 18 Section 2. Grant of Franchise, The City of Winter Springs hereby grants, in accordance with the foregoing, a gas franchise to Florida Public Utilities Company: 1. SHORT TITLE. 1.1 Gas Franchise". This Ordinance shall be known and may be cited as "Winter Springs Natural II. PURPOSE AND GOALS. 2.1 Purpose. The City finds that the development and maintenance of a natural gas distribution system has the potential of having great benefit and impact upon the people of the City. The City further finds that the public convenience, safety and general welfare can best be served by exercising regulatory powers which are vested in the City or such persons as the City shall designate. It is the intent of this Ordinance to provide for and specity the means to attain the best possible public interest and public purpose in the distribution of natural gas within the boundaries of the City, and this finding shall be an integral part of this Ordinance. Further, the City recognizes that natural gas has, as a fuel source, the capability of providing abundant clean-burning and efficient energy to the City's residents and commercial businesses. 2.2 Goals. contained herein: F or these purposes, the following goals underlie the regulations and provisions (a) Natural gas should be made available to all City residents and commercial businesses in accordance with the Florida Public Utilities Company Natural Gas tariff filed with the Public Service Commission and any amendments, modifications, or revisions thereto. (b) The Natural Gas Distribution System should be capable of accommodating both the current and reasonably foreseeable future energy needs of the City. (c) The Natural Gas Distribution System should be improved and upgraded, if necessary, during the franchise term so that the new facilities necessary for the operation of this system shall be integrated to the maximum extent possible with existing facilities. City of Winter Springs Ordinance No. Page 2 of 18 III. DEFINITIONS. For the purpose of this Ordinance, the following terms and words shall have the meaning ascribed to them, unless the context clearly indicates otherwise: 3.1 "Agreement" or "Franchise" shall mean this grant offranchise, as amended from time to time, which shall constitute authorization, voluntarily entered into by the Company and granted by the City, for the purpose of providing the Company authorization to construct or operate a Natural Gas Distribution System in the Franchise Area. Any such authorization, in whatever form granted, shall not mean or include any license or permit required for the privilege of transacting and carrying on a business within the City as required by any City ordinance or resolution. 3.2 "City" means the City of Winter Springs, a Florida Municipal Corporation, its successors and assigns. 3.3 "Company" means Florida Public Utilities Company, a Florida Corporation, its successors and assigns as authorized hereunder. 3.4 "Franchise Areas" means all ofthe territory within the incorporated City, and such additional territory as may be from time to time annexed into the City. 3.5 "Gross Annual Revenue" means all receipts derived by the Company directly from the transport and sale of natural gas in the Franchise Area. 3.6 "Natural Gas" means natural gas in a gaseous state. 3.7 "Natural Gas Distribution System" shall mean the transmission pipelines or any related equipment, facility, or building necessary or desirable to the transportation or delivery of natural gas, or its treatment or storage during the course of transportation or delivery, under the control of the Company, for the transmission, distribution or sale of Natural Gas pursuant to this Ordinance, or any part thereof 3.8 "Public Right-of-Way" means the surface, the air space above the surface, and the area below the surface of any public street, sidewalk, bridge, waterway, utility easement, or other public property, which shall entitle the City and the Company to the use thereoffor the purpose of installing and maintaining the Company's Natural Gas Distribution System. No reference herein, or in any Franchise, to the '~Public Right-of-Way" shall be deemed to be a representation or guarantee by the City that its title to any property is sufficient to permit its use for such purpose, and the Company shall, by its use of such terms, be deemed to gain only such rights to use property in the City as the City may have the undisputed right and power to give. City of Winter Springs Ordinance No. Page 3 of 18 3.9 . . "Transfer" means the disposal by the Company, directly or indirectly, by gift, assignment, voluntary sale, merger, consolidation or otherwise, of twenty percent (20%) or more at one time of the ownership or controlling interest in the Company, or thirty-five percent (35%) cumulatively over the term of the Franchise of such interests to a corporation, partnership, limited partnership, trust or association, or person or group of persons acting in concert or a change in control. Transfer shall not include any transfer or assignment to a person controlling, controlled by, or under the same common control as the Company. IV. GRANT OF FRANCHISE. 4.1 Grant of Franchise. The Company is hereby granted a Natural Gas Franchise, subject to the terms and conditions of this Franchise. Pursuant to this Franchise, the Company may construct, operate, and maintain a Natural Gas Distribution System in, under, over, along, across or upon the Public Rights-of-Way within the City for the purpose of transmission, distribution and sale of Natural Gas for commercial, industrial, and residential use, in accordance with the provisions of Chapter 337, Florida Statutes. In exercising rights pursuant hereto, the Company shall not endanger or interfere with the lives of persons, interfere with any structures, buildings, or facilities of the City, any public utility, or any other person permitted to use the Public Rights-of-Way, nor unnecessarily hinder or obstruct the free use of the Public Rights-of-Way. The grant of this Franchise does not establish priority for use over other present or future permit, license, or utility franchise holders or the City's own use of the Public Rights-of-Way. All rights granted for the construction, reconstruction, maintenance, and operation of the Natural Gas Distribution System shall be subject to the continuing right of the City to approve such reconstruction or relocation of the Natural Gas Distribution System in the Public Rights-of-Way as shall, at the sole discretion of the City, be in the public interest. 4.2 Franchise Not Exclusive. The grant of this Franchise shall be non-exclusive and shall not affect the right of the City to grant to itself or any other person the right to: build, operate, or own a Natural Gas Distribution System; occupy or use the Public Rights-of-Way for the construction, reconstruction, maintenance, and operation of a Natural Gas Distribution System or for any purpose whatsoever. No privilege or power of eminent domain is bestowed on the Company by the grant of this Franchise, but this Franchise shall not be construed to limit the Company's power of eminent domain under state law. 4.3 Event of Conflict. In the event of conflict between the terms and conditions of any agreement between the parties and this Ordinance, this Ordinance shall control. In all events, the Company shall comply with all laws, ordinances and regulations enacted by the City pursuant to its lawful police and regulatory powers as authorized by law. This Franchise is hereby made subject to the general City Code provisions now in effect and hereafter made effective. Nothing in the City of Winter Springs Ordinance No. Page 4 of 18 Franchise shall be deemed to waive the requirements of the various codes of the City regarding permits, taxes, and fees to be paid. V. EFFECTIVE DATE OF FRANCHISE; TERM. 5.1 Effective Date. The effective date of this Franchise shall be 2001. 5.2 Term. The term of this Franchise shall be for a period of thirty (30) years from the effective date unless sooner terminated as provided for in this Franchise. The Franchise shall terminate on , 203 1. VI. FRANCHISE OPERATION. 6.1 Use of Public Rights-of-Way. For the purpose ofoperating and maintaining a Natural Gas Distribution System in the Franchise Area, the Company may erect, install, construct, repair, replace, reconstruct and retain in, on, over, under, upon, across and along the public streets and ways within the Franchise Area such pipes, appurtenances, or related attachments or equipment and other property and equipment as are necessary to the operation of the Natural Gas Distribution System; provided, however, that the Company complies with all design, construction, safety, and performance provisions contained in this Franchise, applicable local ordinances, and state and federal law. 6.2 Right of Condemnation Reserved. Nothing herein shall limit any right the City may have to acquire by eminent domain or otherwise any property of the Company; provided, however, that any such acquisition shall be for a price that values the Company's property as allowed bylaw. 6.3 City's Right to Perform Public Works. Nothing in this Franchise shall be in hindrance to the right of the City or any governmental authority to perform or carry on, directly or indirectly, any public works or public improvements of any description. Should the Natural Gas Distribution System in any way interfere with the construction, maintenance or repair of such public works or public improvements, the Company shall, at its own cost and expense, protect or relocate its Natural Gas Distribution System, or part thereof, as reasonably directed by City officials or any governmental authority. 6.4 Emergency Response. The Company shall respond promptly in the case of fire, emergency, or disaster in the City. The Company shall be responsible to take all prudent actions necessary to mitigate any hazardous impact its Natural Gas Distribution System could eontribute to any fire, emergency, or disaster at it's own expense. 6.5 Removal or Abandonment. lfthe Company elects to remove any portion City of Winter Springs Ordinance No. Page 5 of 18 of the Natural Gas Distribution System, the Company shall restore, in accordance with the directions and specifications of all affected departments and agencies of the City and all applicable law, any property, public or private, to its original condition prior to the removal of the Natural Gas Distribution System. 6.6 Time Is of the Essence. Whenever this Franchise shall set forth any time for any act to be performed by or on behalf of the Company, such time shall be deemed to be of the essence, and any failure of the Company to perform within the time allotted shall be sufficient ground for the City to invoke any applicable provision of the City Code or this Franchise. 6.7 NoW aiver of Rights. No course of dealing between the Company and the City nor any delay on the part of the City in exercising any rights hereunder shall operate as a waiver of any such rights of the City or acquiescence in the actions of the Company in contravention of the City's rights, except to the extent expressly waived by the City in writing or expressly provided for in the Franchise. VII. TRANSFER OF OWNERSHIP OR CONTROL. 7.1 Transfer of Franchise. This Franchise shall not be sold, Transferred, leased, assigned or disposed of, including but not limited to, by forced or voluntary sale, merger, consolidation, receivership or other means without the prior written consent ofthe City, and then only under such reasonable conditions as the City may establish which may include but not be limited to financial guarantees to the Natural Gas Distribution System. 7.2 Transfer Threshold. The Company shall promptly notify the City of any actual or proposed change in, or Transfer of, or acquisition by any other party of, control of the Company. 7.3 City Approval. Every change; Transfer, or acquisition of control of the Company shall make the Franchise subject to cancellation unless and until the City shall have consented thereto in writing. For the purpose of determining whether it may consent to such change, Transfer, or acquisition of control, the City may inquire into the legal, financial, character, technical, and other public interest qualifications of the prospective Transferee or controlling party, or the terms and conditions of the proposed change, transfer, or acquisition of control, and the Company shall assist the City in obtaining all required information. Failure to provide all reasonable information requested by the City as part of said inquiry shall be grounds for denial of the proposed change, Transfer or acquisition of control. 7.4 Signatory Requirement. Any approval by the City of Transfer of ownership shall be contingent upon the prospective assignee becoming a signatory to the Franchise. VIII. FRANCHISE FEES. City of Winter Springs Ordinance No. Page 6 of 18 8.1 For years one (1) through fifteen (15) the Company shall pay to the City a Franchise Fee of six and half percent (6.5%) of the Gross Annual Revenues excluding bad debts, taxes and fees collected by the Company on behalf of any governmental agency. For years sixteen (16) through thirty (30) the Company shall pay to the City a Franchise Fee of seven percent (7%) of the Gross Annual Revenues excluding bad debts, taxes and fees collected by the Company on behalf of any governmental agency. 8.2 Franchise Fees in Addition to Other Taxes or Payments. Payment of the Franchise Fee made by the Company to the City shall not be considered in the nature of a tax, but shall be in addition to any and all taxes of general applicability which are now or may be required hereafter to be paid by any Federal, State, or local law. 8.3 Acceptance by the City. Subject to applicable law, no acceptance of any payment by the City shall be construed as a release or as an accord and satisfaction of any claim that the City may have for further or additional sums payable as a Franchise Fee under this Franchise or for the performance of any other obligation of the Company. 8.4 Failure to Make Required Payment. In the event that any Franchise Fee or recomputed amount is not made on or before the dates specified herein, the Company shall pay as additional compensation an interest charge, computed from such due date, at an annualized rate equal to the commercial prime interest rate of the City's primary depository bank during the period that such unpaid amount is owed. 8.5 Periodic Payments to Be Made. The Company shall make fee payments of monies due hereunder within thirty (30) days of the end of each calendar quarter for Franchise Fees collected during the preceding quarter. Accompanying said payment, the Company shall also provide' a written report of its Gross Revenues generated in the Franchise Area for the preceding quarter's period. 8.6 City Right to Inspection. The City, at its discretion, shall have the right to inspect the Company's Gross Annual Revenue records, to audit, and to recompute any fee amounts. Inspections, audits or recomputations may be performed either by the City or an independent firm selected by the City and qualified for such purposes. No audit of the Company's records relating to Gross Annual Revenues shall take place later than thirty-six (36) months following the close of each of the Company's fiscal years. Audits that result in payment of four percent (4%) or more of Franchise Fees during the audit period, shall be at the expense of the Company. Any additional amount due to the City as a result of the audit shall be paid within thirty (30) Days of notice by the City, unless the Company disputes the results of the audit. The Company agrees to meet with the City and will attempt in good faith to resolve any differences. Thereafter, the additional amount due shall be subject to payment within thirty (30) days after said additional amount is determined to be due by the Company and the City, or the City declares an impasse in the negotiations with the Company. City of Winter Springs Ordinance No. Page 7 of 18 8.7 Payments Due in Event of Termination or Expiration. In the event that the Company continues the operation of any part or all of the Natural Gas Distribution System beyond the termination, revocation, or expiration of the Franchise granted herein, it shall continue to pay to the City the Franchise Fee in the manner set forth in this Franchise. This section shall not be construed to authorize the operation of the Natural Gas Distribution System beyond the termination, revocation, or expiration of this Franchise. 8.8 Alternative Fee Contingencies. In the event that the Company's obligation to pay a Franchise Fee is held invalid by a decision of any court of competent jurisdiction or due to the actions of any legislative body, the Company shall negotiate with the City in good faith and shall agree, if permissible under then applicable law, to provide compensation to the City in lieu of the Franchise Fee. The amount of compensation shall, to the extent permitted by applicable law, as amended from time to time, be comparable to that which the Company would pay as the Franchise Fee under the terms of this Franchise and shall be passed through to the natural gas customers in a manner similar to the Franchise Fee. 8.9 Other Fees and Taxes. To the extent that any federal or state law or regulation may now forbid the City from assessing any type offee or tax, upon repeal, modification, or judiciaVadministrative interpretation of said law or rule that would permit the City to assess said fee or tax, the City shall have the right to assess said fee or tax to the full extent authorized by law; provided, that the City shall first consult with the Company. Upon such occurrence, the parties shall meet and confer within ninety (90) days of notice from the City to in good faith negotiate Franchise provisions to implement the collection of said fee or tax. IX. FORFEITURE OR REVOCATION. 9.1 Grounds for Revocation. The City reserves the right to revoke any Franchise granted hereunder, pursuant to the procedure in paragraph 9.4, and rescind all rights and privileges associated with the Franchise in the following circumstances; each of which shall represent a default and breach of this Franchise: (a) Company has defaulted in the performance of any of the material obligations under this Franchise or any provision of the City Code not conflicting with this Franchise; (b) Company has failed to provide or maintain in full force and effect the liability and indemnification coverage as required herein; ( c) Company has violated a material provision of any orders or rulings of any regulatory body having jurisdiction over the Company relative to this Franchise and any regulatory ordinance of the City, and the Company fails to begin cure within five (5) business days of notice from the City and to complete cure within a reasonable time after notice, as determined by the City; City of Winter Springs Ordinance No. Page 8 of 18 customers; (d) Company has committed any act of fraud upon the City or natural gas (e) Company has acted grossly negligently, as defined by general law, in maintaining or operating the Natural Gas Distribution System provided in this Franchise; (1) or is adjudged bankrupt; Company has become insolvent, is unable or unwilling to pay its debts, (g) Company has made a material misrepresentation of fact In the application for or negotiation of the Franchise or any extension or renewal thereof; and in this Franchise. (h) Company has failed to pay the Franchise Fee in the manner provided 9.2 Effect of Circumstances Beyond Control of Franchisee. The Company shall not be declared at fault or be subject to any sanction under any provision of this Franchise in any case, in which performance of any such provision is prevented for reasons beyond the Company's control. For the purposes of this Franchise, causes or events beyond the Company's control shall include, without limitation, acts of God, floods, earthquakes, landslides, hurricanes, fires and other natural disasters, acts of public enemies, riots or civil disturbances, sabotage, strikes and restraints imposed by order of a governmental agency or court. A cause or event shall not be deemed to-he beyond the Company's control if committed by a corporation or other business entity in which the Company holds a controlling interest whether held directly or indirectly, when such fault is due to Company's financial inability to perform or comply, economic hardship, or misfeasance, malfeasance or nonfeasance by any of the Company's dire"ctors, officers, employees or contractors or agents. 9.3 Effect of Pending Litigation. Pending litigation or any appeal to any regulatory body or court having jurisdiction over the Company shall not excuse the Company from the performance of its obligations under this Franchise, unless specifically provided for by court order or by the regulatory body having jurisdiction over such matters. Failure of the Company to perform such obligations because of pending litigation or petition may result in forfeiture or revocation pursuant to the provisions of this section. 9.4 Proced ure Prior to Revocation. The City Manager shall notify the Company in writing of the exact nature of the alleged violation constituting a ground for termination and give the Company thirty (30) days, or such greater amount of time as the City Manager may specify, to correct such violations or to present facts-and-argurrients to the City Mariager te> refute the alleged' violation ("Cure Period"). If by the end of the Cure Period the Company does not remedy the violation or convince the City Manager there is no violation, the City Manager shall schedule a public meeting of the City Commission for purposes of addressing the alleged violation. The Commission meeting shall be held within thirty (30) days from the expiration of the Cure Period. The City of Winter Springs Ordinance No. Page 9 of 18 City Manager shall promptly provide the Company written notice of the Commission meeting. During the Commission meeting, the City Manager, Company, and all interested parties shall have the right to be heard in person and through counsel, present evidence, and cross examine adverse witnesses. At the conclusion of the Commission meeting, the Commission may suspend or revoke the Franchise, ifit determines that there are sufficient grounds which warrant such action; otherwise, the Franchise remains in full force and effect. The Company shall not be held in default nor suffer any penalties where non-compliance or default is caused by an event beyond the Company's control, as stated in Section 9.2. The Company shall have the right of review by a court of competent jurisdiction upon any determination by the City Commission to suspend or revoke this Franchise. However, nothing contained herein shall prohibit the City from seeking an equitable remedy including but not limited to injunction relief or specific performance. X. LIABILITY AND INSURANCE. 10.1 Certificate of Insurance. In no event later than thirty (30) days after the effective date of this Franchise and thereafter continuously throughout the duration of this Franchise and any extensions or renewals thereof, the Company shall furnish to the City, certificates of insurance, approved by the City, for all types of insurance required under this section. Failure to furnish said certificates of insurance in a timely manner shall constitute a failure to faithfully comply with this Franchise. At the City's request, the Company shall furnish certificates of insurance which are in effect from time to time. 10.2 No Liability Limit. Neither the provisions of this article or any damages recovered by the City hereunder, shall be construed to limit the liability of the Company for damages under this Franchise. 10.3 Endorsement. All insurance policies maintained pursuant to this Franchise shall contain an endorsement in substantially the following form: It is hereby understood and agreed that this insurance policy may not be modified or canceled by the insurance company nor the intention not to renew be stated by the insurance company until thirty (30) days after receipt by the City of Winter Springs City Manager by certified mail, of a written notice of such intention to cancel or not to renew. 10.4 State Institution. Except for self-insured policies, all insurance policies provided pursuant to this Franchise shall be written by companies authorized by the Florida Insurance Commissioner to do business in the State of Florida as an insurance company. 10.5 Named Insured. The City shall be an additional named insured for all City of Winter Springs Ordinance No. Page 10 of 18 insurance policies written pursuant to this Franchise. 10.6 Changes in Policy Limits. To offset the effects of inflation and to reflect changing liability limits, all of the coverage, limits, and amounts of the insurance provided for herein are subject to reasonable increases at the end of every three (3) year period of this Franchise, applicable to the next three (3) year period, at the City's discretion. 10.7 Commercial General Liability Insurance. The Company shall maintain throughout the term of this Franchise, general liability insurance insuring the Company in the minimum of: (a) $1,000,000 for property damage single limit; anyone person; and (b) $3,000,000 single limit liability for personal bodily injury or death to Such general liability insurance must include coverage for all of the following: comprehensive form, premises operations, explosion .and collapse hazard, underground hazard, products/completed operations hazard, contractual insurance, broad form property damage, and personal injury. 10.8 Automobile Liability Insurance. The Company shall maintain throughout the term of this Franchise, automobile liability insurance for owned, non-owned, or rented vehicles in the minimum amount of: per occurrence; and (a) $1,000,000 'single limit liability for bodily injury and'consequent death (b) $1,000,000 for property damage per occurrence. 10.9 Worker's Compensation. The Company shall maintain throughout the term of this Franchise, worker's compensation in the minimum amount of the statutory limit for worker's compensation, as amended from time to time. XI. INDEMNIFICA TION AND HOLD HARMLESS. II. I Indemnity and Hold Harmless. The City shall in no way be liable or responsible for any accident or damage caused by the Company that may occur in the construction, operation, or maintenance by the Company of the Natural Gas Distribution System, and the acceptance of this Franchise on the part of the Company shall be deemed an agreement on the part of the Company to fully indemnifY, defend and hold harmless the City and its officers, boards and Commission, contractors, attorneys and City employees against the full amount of any (i) claims, (ii) City of Winter Springs Ordinance No. Page 11 of 18 liabilities, (iii) actions, (iv) suits, (v) proceedings, (vi) payments, (vii) assessments, (viii) judgments, (ix) losses, (x) damages, (xi) costs and (xii) expenses (including interest, penalties and reasonable attorneys' fees and disbursements) claimed against the City in connection with the following: (a) To persons or property, in any way arising out of or through the acts or omissions of the Company, its servants, agents or employees; and (b) Arising out of the Company's failure to comply with the provisions of any federal, state, or local laws, ordinances, or regulations applicable to the Company in its business hereunder. 11.2 Condition. The foregoing indemnity is conditioned upon the City giving the Company prompt notice of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this section. Nothing herein shall be deemed to prevent the City from cooperating with the Company and participating in the defense of any litigation by its own counsel at its own costs and expense. 11.3 Bond. Company shall execute and file with the City Manager its bond in the penal sum of Fifty Thousand and Noll 00 Dollars($50,000.00), in satisfactory form, guaranteeing its performance of all obligations under this Franchise which bond shall be enlarged or reviewed from time to time as required by the City Commission. XU. DESIGN AND CONSTRUCTION PROVISIONS. 12.1 Authorization to Commence Construction and Application Procedures. Prior to the installation or erection of any pipelines, towers, poles, conduits, fixtures, or other appurtenances thereto, other than minor or emergency excavation and maintenance, or the upgrade or rebuild of the Natural Gas Distribution System, the Company shall first submit to the City for review a concise description of the facilities proposed to be maintained, erected, removed, or installed, including engineering drawings, if required by the City. No erection, excavation, or installation of any part of the Natural Gas Distribution System, or any other appurtenances thereto, shall be commenced by any person until proper permits have been received from the City, except in the event of an emergency. 12.2 City Maps. The City does not guarantee the accuracy of any maps showing the horizontal or vertical location of existing substructures or utilities. 12.3 Compliance with-Construction and-Technical-Standards. The Company shall install or erect any pipelines, towers, poles, conduits, fixtures, or other appurtenances thereto, in accordance with commonly accepted good engineering practices and technical standards. The Company shall comply with all applicable construction and technical codes adopted by local, state, and federal law. City of Winter Springs Ordinance No. Page 12 of 18 12.4 Quality of Construction. Construction, installation, reconstruction, operation, and maintenance of the Natural Gas Distribution System shall be performed in an orderly and workmanlike manner, in accordance with then current technological standards. The Company shall use its best efforts to install or erect the Natural Gas Distribution System parallel with existing other utilities located in the rights-of-way. Nothing herein shall preclude underground installation. 12.5 Underground Installation. (a) All installations of the natural gas transmission pipelines shall be underground unless otherwise approved by the City in writing. No paved street, alley or other paved Right-of-Way shall be cut unless approved by the City in writing, except in case of emergency. (b) Prior to performing any underground construction, the Company shall use its best efforts to locate, in advance, any water, sewage, gas, electric, cable, drainage, or other utility lines, including compliance with Chapter 556, Florida Statutes, to the extent applicable. Where any damages or alterations occur to said utility lines in the public right-of-way as a result of construction, reconstruction, maintenance, or removal of the Natural Gas Distribution System by the Company, its agents or independent contractors, the cost of such repairs including all services and materials will be the responsibility of the Company. 12.6 Construction Notice. Except with regard to routine maintenance and emergency circumstances, the Company shall give appropriate notice to the City and residents within a reasonable period of time of proposed construction, reconstruction, excavation, laying or stringing of the Natural Gas Distribution System under streets or on poles, but in no event shall such notice be given less than five (5) business days before such commencement. 12.7 Interference with Persons, Public and Private Property, and Utilities. The Company's Natural Gas Distribution System and all appurtenances shall be located, erected and maintained so that such system shall: (a) Not endanger or interfere with the health, safety or lives of persons; (b) Not interfere with any improvements which the City, county or state may deem proper to make; (c) Not interfere with the free and proper use of public rights-of-way, alleys, bridges, easements or other public property, except to the minimum extent possible during actual construction or repair; (d) Not interfere with the rights and reasonable convenience of private property owners, except to the minimum extent possible during actual construction or repairs; and City of Winter Springs Ordinance No. Page 13 of 18 (e) Not obstruct, hinder or interfere with any gas, cable, electric, water, wastewater, reclaimed water, stormwater drainage, telephone, or other utility facilities located within the City. 12.8 Restoration to Prior Condition. In case of any disturbance of pavement, sidewalk, driveway or other surfacing, the Company shall, at its own cost and expense, and in a manner approved by the City, replace and restore all paving, sidewalk, driveway, landscaping, or surface of any street or alley disturbed, in as good a condition as before said work was commenced and in a good workmanlike, timely manner in accordance with standards for such work set by the City or the governmental entity having operational and maintenance responsibility for the Public Right-of- Way. Unless otherwise approved by the City Manager, such restoration shall be undertaken within ten (10) business days after the damage is incurred and shall be completed as soon as possible thereafter. 12.9 Private Property. The Company shall promptly repair or replace all private property, both real and personal, damaged or destroyed as a result of the construction, installation, operating or maintenance of the Natural Gas Distribution System at its sole cost and expense. 12.10 Progress Reports. For work involving Public Right-of-Way excavation for other than in the event of an emergency, prior to commencing construction, the Company shall provide the City with a schedule for completion of said work and keep the City informed of the construction progress as reasonably necessary. 12.11 Annexation. In the event of annexation of any territory to the present corporate limits of City, any and all portions of the gas system of Company located in said annexed territory shall be subject to all of the terms and conditions of this Franchise as though it were an extension made hereunder. xm, BOOKS AND RECORDS A V AILABLE TO CITY. 13. 1 Records. With advance written request, the City shall have the right to inspect at any time during normal business hours, all books, records, maps, revenue statements, service complaint logs, performance test results and other like materials of the Company which relate to the operation and enforcement of the Franchise within the City. Access to the aforementioned records shall not be denied by the Company on the basis that said records contain "proprietary" information, unless applicable law exempts said records. 13.2 Review. -The-Coinpanishall permit, during the Company's normal business hours, any duly authorized representative of the City to examine, at the City's discretion, any and all maps and other records kept or maintained by the Company or under its control concerning the operations, affairs, transactions or property of the Company relative to the Natural Gas Distribution System operations in the City. The examination shall take place at the Company's place of business. City of Winter Springs Ordinance No. Page 14 of 18 13.3 Reports to Be Filed. The following financial reports for the Franchise area shall be submitted to the City: (a) An annual report prepared by the Company or the parent company of the Company shall be provided annually at the time said report is published. (b) A quarterly financial report showing the Company's quarterly gross revenues and quarterly franchise fees collected in the Franchise Area, pursuant to Paragraph 8.5 herein. 13.4 Other Records. The City may impose reasonable requests for additional information, records and documents from time to time, and the Company shall produce said records within ten (10) business days, so long as such request relates to the City's enforcement abilities under this Franchise or the City's ordinances or resolutions. XIV, PREFERENTIAL OR DISCRIMINATORY PRACTICES PROHIBITED. All services rendered and all rules and regulations adopted by the Company shall have general application to all persons and shall not subject any person to prejudice or disadvantage on account of race, gender, religion, origin, or ethnicity. The Company shall not deny Natural Gas service to any group of potential residential customers within the City because of the income of the residents ofthe area in which such group resides. The Company shall not charge customers different rates for Natural Gas service for the same class or type of service. XV. SERVICE STANDARDS 15.1 Operation. The Company shall maintain and operate its Natural Gas Distribution System and render efficient service in accordance with the rules and regulations as are, or may be, set forth by the City Commission of the City of Winter Springs as provided in this Franchise and by the Public Service Commission. 15.2 Planned Downtime. The Company shall provide reasonable notice to all customers who will be affeeted by an interruption of service for the purpose of repairs to, and installation of, the Natural Gas Distribution System to customers. 15.3 Rules and Regulations. Company shall have the right to adopt and enforce rules and regulations with respect to the extension, initiation and rendering of gas service, provided the same are not inconsistent with this Ordinance, including rules providing for the discontiilUance .. of service to any customer for nonpayment of bills when due, or for failure to comply with the Company's other rules and regulations. All rates for gas and rules and regulations established by Company from time to time shall be those prescribed and approved by the Florida Public Service Commission. City of Winter Springs Ordinance No. Page 15 of 18 XVI. MISCELLANEOUS PROVISIONS. 16.1 No Joint Venture. Nothing herein shall be deemed to create ajoint venture or principal-agent relationship between the parties, and neither party is authorized to, nor shall either party act toward third persons or the public in any manner which would indicate any such relationship with the other. 16.2 Entire Agreement. This grant and all City Code provisions regulating the distribution, transmission, or sale of Natural Gas are incorporated herein by reference, represent the entire understanding and agreement between the parties hereto with respect to the subject matter hereof, and supersede all prior oral negotiations between the parties. This grant may be amended, supplemented, modified, or changed only by adoption of an Ordinance by the City and execution of an instrument agreeing to said amendment, supplementation, modification, or change in the terms hereof by the Company. 16.3 Provisions Cumulative. The rights and remedies reserved to the City by this Ordinance are cumulative and shall be in addition to and not in derogation of any other rights or remedies which the City may have with respect to the subject matter of this grant offranchise subject to applicable law, and a waiver thereof at any time shall have no effect on the enforcement of such rights or remedies at a future time. 16.4 Notices. All notices from the Company to the City pursuant to this Franchise shall be sent to: City Manager, City of Winter Springs, Florida, 1126 East State Road 434, Winter Springs, Florida 32708. All notices to the Company shall be sent to: Division Manager, Florida Public Utilities Company, 830 W. Sixth Street, Sanford, Florida 32771. The names and address in this section may be unilaterally amended by either party at anytime by giving written notice to the other party. 16.5 Captions. Captions to sections through this Ordinance are solely to facilitate the reading and reference to the sections and provisions of the Ordinance. Such captions shall not affect the meaning or interpretation of the Franchise. 16.6 City's Rights of Intervention. The Company agrees not to oppose intervention by the City if any suit or proceeding to which the Company is a party, concerning or involving the Company and the City's rights under this Franchise. 16.7 Governing Law. This Franchise shall be governed in all respects, including validity, interpretation and effect; by the'laws df the State of Florida. 16.8 Jurisdiction and Venue. The parties hereto agree that the state or federal courts located in the State of Florida shall have the exclusive jurisdiction over the parties and the subject matter of any litigation between the parties arising hereunder. For purpose of state court City of Winter Springs Ordinance No. Page 16 of 18 action, venue shall lie within Seminole County, Florida, and for the purpose of federal court action, venue shall lie within Orlando, Florida. THE COMPANY HEREBY WAIVES RIGHT TO TRlAL BY JURY IN ANY ACTION BROUGHT ON THIS FRANCHISE OR ON ANY MA TTER ARISING IN CONNECTION WITH THIS FRANCHISE. 16.9 Attorney's Fees. In the event of any litigation or arbitration arising out of this Ordinance, the prevailing party, to the extent permitted by law, shall be entitled to an award of its reasonable attorney's fees and court costs incurred in such action. 16.10 Franchise Costs. The Company agrees to pay the public advertising costs incurred by the City in granting this Franchise or any renewal or assignment thereof 16.11 Renegotiation Clause. In the event ofa material change in Federal or State law(s) or Public Service Commission rule(s) or in the event the Company enters into a franchise or other agreement with Seminole County or any other City within Seminole County which provides the County or other City more favorable Franchise Fees than provided to the City under this Franchise, the City and the Company mutually agree to renegotiate those particular terms of this Franchise affected by changes in said law(s), rule(s), or franchises or agreements. This Franchise shall remain in full force and effect until any negotiated amendments have been duly approved by both the City and the Company, however, if the Company fails to negotiate said amendments in good faith and in a timely manner, the City shall have the right to terminate this Franchise pursuant to paragraph 9.4 herein. 16.12 Purchase system. As a condition precedent to the taking effect of this Franchise, City hereby reserves and Company hereby gives and grants to City, the right at and after the expiration of this franchise to purchase the Natural Gas Distribution System used by Company under this Franchise at a valuation to be determined by negotiation between the parties, or in the event an amount cannot be negotiated, by an amount determined by a Court of competent jurisdiction. Section 3. Incorporation Into Code. This ordinance shall not be incorporated into the Winter Springs City Code and any section or paragraph number or letter and any heading may be changed or modified as necessary to effectuate the foregoing. Section 4. Severability. If any section, subsection, sentence, clause, phrase, word or provision of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, whether for substantive, procedural, or any other reason, such portion shall be deemed a separate, distinct and independent-provision; 'andsuch. holding-shall not affect thevalidity- of the remaining portions of this ordinance_ Section 5. Effective Date. This Ordinance shall become effective immediately upon adoption by the City Commission of the City of Winter Springs, Florida. City of Winter Springs Ordinance No. Page 17 of 18 IN WITNESS WHEREOF, the parties hereto have caused this Franchise to be executed as of the day and year first above written. ATTEST: ANDREA LORENZO-LUACES City Clerk Approved as to legal form and sufficiency for the City of Winter Springs only Anthony A. Garganese, City Attorney First Reading: Second Reading: Effective Date: F:\DOCS\City of Winter Springs\Ordinances\Gas Franchise 9-18-0 I.jd City of Winter Springs Ordinance No. Page 18 of 18 DRAFT PAUL P. PARTYKA Mayor " NATURAL GAS FRANCHISE AGREEMENT THIS NATURAL GAS FRANCHISE AGREEMENT (hereinafter "Agreement") executed on this J.I" 'day of December, 200 I, is entered into by and between CITY OF WINTER SPRINGS, a Florida municipal corporation, whose address is I 126 North State Road 434, Winter Springs, Florida 32708, (hereinafter "City"), and FLORIDA PUBLIC UTILITIES COMPANY, whose address is 401 South Dixie Highway, West Palm Beach, Florida 33401, (hereinafter "Company"). WHEREAS, the City and Company desire to enter into a natural gas franchise agreement pursuant to the terms and conditions of this Agreement and the franchise that was granted by the City in accordance with Ordinance No. 2001-53 which was adopted by the City Commission of Winter Springs on November 26, 2001; and WHEREAS, the City and Company acknowledge that this Agreement is a material part of the franchise granted under Ordinance No. 200 I-53 and but for this Agreement, the City would not have approved said Ordinance and granted the franchise. NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1.0 Recital: The foregoing recitals are hereby incorporated herein and deemed a material part of this Agreement. 2.0 Franchise Accepted: The company hereby fully accepts the natural gas franchise granted by the City pursuant to Ordinance No. 2001-53. The Company agrees to comply with all the terms an conditions set forth herein and in Ordinance No. 200 I-53 and further agrees to fully and faithfully perform the obligations and responsibilities contained therein. A copy of Ordinance No. 200 I-53 is attached hereto as Exhibit "A" and hereby fully incorporated herein by this reference. Together this Agreement and Ordinance No. 2001-53 shall be known as "The City of Winter Springs and Florida Public Utilities Company Natural Gas Franchise." 3.0 Most Favored Franchise Fee Status: The terms and conditions set forth in Ordinance No. 2001-53 are hereby supplemented with the following: (a) Increased Franchise Fee. During the term of this Franchise, and any renewal or extension thereof, when and if the Company negotiates any gas franchise with any other City or County after the effective date of this Franchise, which has a franchise fee payable above that provided by this Franchise, the City shall have the right to amend this Franchise during the term hereof to provide for a franchise fee equal to that provided in the other franchise, and the Company hereby irrevocably consents to any such amended franchise fee adopted pursuant hereto. The City shall provide at least thirty (30) days notice prior to the effective date of any amended franchise fee adopted pursuant to this paragraph. Page I of 3 ... (b) Franchise Report. Annually, as of January I of each year, the Company will furnish the City a list of all of its gas franchises including the name and address of the franchisor, the date of the franchise, the percentage of the franchise fee, and the length of the tenn of the franchise. (c) Limitations. Any amended franchise fee adopted under this paragraph shall: 1. apply only to a change in the applicable franchise fee percentage and not to any change in class of service to which it applies. 11. apply only to gas franchises negotiated, in whole or in part, by the Company with any other City or County after the effective date of this Franchise and not to gas franchises acquired by the Company through acquisition, purchase or merger. 4.0 Cross-default: A default by the Company of any term and/or condition of this Agreement shall be deemed a default under the franchise granted under Ordinance No. 2001-53 and vice versa. In the event of such default under this Agreement or Ordinance No. 200 I -53, the City shall have the right to terminate and revoke this Agreement and the franchise pursuant to the procedure set forth in Section 2, Article IX, Forfeiture or Revocation, of Ordinance No. 2001-53. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of this dl J r day of December, 200 I. CITY OF WINTER SP.RINGS, FLORIDA ;(~I/J.~ RONALD W. McL~10RE~ City M~na.ger ZO-LUACES, City Clerk FLORIDA PUBLIC UTILITIES COMPANY C!u~L }JL__ CHARLES L. STEIN, Senior Vice President and Operating Officer Page 2 of 3 ~ ST A TE OF FLORIDA COUNTY OF SEMINOLE ~Tan /.Ul.'-~ :u:o ~ Sworn to and subscribed before me this IfY-/t day of Decemeer 209-:1, by RONALD W. McLEMORE, City Manager for City of Winter Springs, who ~rsonaIly known to me, or 0 who has produced as identification, and who did take an oath. STATE OF FLQRIDA , COUNTY OF pel \ f\.l B-e.otCk Sworn to and subscribed before me this J{...s {-day of December 2001, by CHARLES L. ST~IN, Senior Vice President and Operating Officer for Florida Public Utilities Company, who (t('is personally known to me, or 0 who has produced as identification, and who did take an oath. ~atc~,c1jp#, NOT ARY PUBLIC My Commission Expires: VV'\aA.-t.Vl tlJ/ moy "~,, Deborah L Gillespie . * ~ * My Commission CC920806 ~~. .".....' ExpIres March 21.2004 7 kuJ!.~J~ 'I? NOTARY PUBLIC My Commission Expires: ( e tA-CtCLlLdvk. L- ,Sa y Vy -1--- /~~';:.!'X!k'f;:',- CHAUNDRA L. SAYLOR t: ;.~ MY COMMISSION # CC 7199Tl ~.... .....iV EXPIRES: June 5 "^^" II, 0,. f\.O,,' B""""" Th . ......hI. .......... ~""'" 1\1 NoWy PlIbUc UndeIWlfl8/S Page 3 of 3