HomeMy Public PortalAboutORD 06/01ORDINANCE NO. 06/01
AN ORDINANCE GRANTING TO FLORIDA POWER & LIGHT
COMPANY, ITS SUCCESSORS AND ASSIGNS, AN
ELECTRIC FRANCHISE, IMPOSING PROVISIONS AND
CONDITIONS RELATING THERETO, PROVIDING FOR
MONTHLY PAYMENTS TO THE TOWN OF GULF STREAM
AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Town Commission of the Town of Gulf Stream, Florida
recognizes that the Town of Gulf Stream and its citizens need and desire the continued
benefits of electric service; and
WHEREAS, the provision of such service requires substantial investments of
capital and other resources in order to construct, maintain and operate facilities essential
to the provision of such service in addition to costly administrative functions, and the Town
of Gulf Stream does not desire to undertake to provide such services; and
WHEREAS, Florida Power & Light Company (FPL) is a public utility which has
the demonstrated ability to supply such services; and
WHEREAS, there is currently in effect a franchise agreement between the Town
of Gulf Stream and FPL, the terms of which are set forth in the Town of Gulf Stream
Ordinance No. 76-2, passed and adopted June 11, 1976, and FPL's written acceptance
thereof dated June 28, 1976 granting to FPL, its successors and assigns, a thirty (30) year
electric franchise ("Current Franchise Agreement"); and
WHEREAS, FPL and the Town of Gulf Stream desire to enter into a new
agreement (New Franchise Agreement) providing for the payment of fees to the Town of
Gulf Stream in exchange for the nonexclusive right and privilege of supplying electricity
and other services within the Town of Gulf Stream free of competition from the Town of
Gulf Stream, pursuant to certain terms and conditions, and
WHEREAS, the Town Commission of the Town of Gulf Stream deems it to be in
the best interest of the Town of Gulf Stream and its citizens to enter into the New
Franchise Agreement prior to expiration of the Current Franchise Agreement; NOW,
THEREFORE,
BE IT ORDAINED BY THE TOWN COMMISSION OF THE TOWN OF GULF
STREAM, FLORIDA:
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Section 1. There is hereby granted to Florida Power & Light Company, its
successors and assigns (hereinafter called the "Grantee"), for the period of 30 years from
the effective date hereof, the nonexclusive right, privilege and franchise (hereinafter called
"franchise") to construct, operate and maintain in, under, upon, along, over and across the
present and future roads, streets, alleys, bridges, easements, rights-of-way and other
public places (hereinafter called "public rights-of-way") throughout all of the incorporated
areas, as such incorporated areas may be constituted from time to time, of the Town of
Gulf Stream, Florida, and its successors (hereinafter called the "Grantor"), in accordance
with the Grantee's customary practice with respect to construction and maintenance,
electric light and power facilities, including, without limitation, conduits, poles, wires,
transmission and distribution lines, and all other facilities installed in conjunction with or
ancillary to all of the Grantee's operations (hereinafter called "facilities"), for the purpose of
supplying electricity and other services to the Grantor and its successors, the Inhabitants
thereof, and persons beyond the limits thereof.
Section 2. The facilities of the Grantee shall be installed, located or relocated so
as to not unreasonably interfere with traffic over the public rights-of-way or with reasonable
egress from and ingress to abutting property. To avoid conflicts with traffic, the location or
relocation of all facilities shall be made as representatives of the Grantor may prescribe in
accordance with the Grantor's reasonable rules and regulations with reference to the
placing and maintaining in, under, upon, along, over and across said public rights-of-way;
provided, however, that such rules or regulations (a) shall not prohibit the exercise of the
Grantee's right to use said public rights-of-way for reasons other than unreasonable
interference with motor vehicular traffic, (b) shall not unreasonably interfere with the
Grantee's ability to furnish reasonably sufficient, adequate and efficient electric service to
all of its customers, and (c) shall not require the relocation of any of the Grantee's facilities
installed before or after the effective date hereof in public rights-of-way unless or until
widening or otherwise changing the configuration of the paved portion of any public right-
of-way used by motor vehicles causes such installed facilities to unreasonably interfere
with motor vehicular traffic. Such rules and regulations shall recognize that above -grade
facilities of the Grantee Installed after the effective date hereof should be installed near the
outer boundaries of the public rights-of-way to the extent possible. When any portion of a
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public right-of-way is excavated by the Grantee in the location or relocation of any of its
facilities, the portion of the public right-of-way so excavated shall within a reasonable time
be replaced by the Grantee at its expense and in as good condition as it was at the time of
such excavation. The Grantor shall not be liable to the Grantee for any cost or expense in
connection with any relocation of the Grantee's facilities required under subsection (c) of
this Section, except, however, the Grantee shall be entitled to reimbursement of its costs
from others and as may be provided by law.
Section 3. The Grantor shall in no way be liable or responsible for any accident
or damage that may occur in the construction, operation or maintenance by the Grantee of
its facilities hereunder, and the acceptance of this ordinance shall be deemed an
agreement on the part of the Grantee to indemnify the Grantor and hold it harmless
against any and all liability, loss, cost, damage or expense which may accrue to the
Grantor by reason of the negligence, default or misconduct of the Grantee in the
construction, operation or maintenance of its facilities hereunder.
Section 4. All rates and rules and regulations established by the Grantee from
time to time shall be subject to such regulation as may be provided by law.
Section 5. As a consideration for this franchise, the Grantee shall pay to the
Grantor, commencing 60 days after the effective date hereof, and each month thereafter
for the remainder of the term of this franchise, an amount which added to the amount of all
licenses, excises, fees, charges and other impositions of any kind whatsoever (except ad
valorem property taxes and non -ad valorem tax assessments on property) levied or
imposed by the Grantor against the Grantee's property, business or operations and those
of its subsidiaries during the Grantee's monthly billing period ending 30 days prior to each
such payment will equal 5.9 percent of the Grantee's billed revenues, less actual write-offs,
from the sale of electrical energy to residential, commercial and industrial customers (as
such customers are defined by FPUs tariff) within the incorporated areas of the Grantor for
the monthly billing period ending 30 days prior to each such payment, and in no event
shall payment for the rights and privileges granted herein exceed 5.9 percent of such
revenues for any monthly billing period of the Grantee.
The Grantor understands and agrees that such revenues as described In the
preceding paragraph are limited, as in the existing franchise Ordinance No. 76-2, to the
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precise revenues described therein, and that such revenues do not include, by way of
example and not limitation: (a) revenues from the sale of electrical energy for Public
Street and Highway Lighting (service for lighting public ways and areas); (b) revenues from
Other Sales to Public Authorities (service with eligibility restricted to governmental entities);
(c) revenues from Sales to Railroads and Railways (service supplied for propulsion of
electric transit vehicles); (d) revenues from Sales for Resale (service to other utilities for
resale purposes); (e) franchise fees; (f) Late Payment Charges; (g) Field Collection
Charges; (h) other service charges.
Section 5 N. It is further provided that the Grantor shall have the option subiect to
all the terms, conditions, and limitations specified below, once every other franchise year,
to be effective on the franchise anniversa date, to increase up to a maximum of 5.9% or
decrease to a minimum of 0.9%. the percentage used to calculate the amount to be paid
by the Grantee pursuant to this Section 5 (such percentage hereinafter sometimes
referred to for pumoses of this option as the'bercentage") This option shall be exercised
if at all by an ordinance duly adopted by the Grantor in accordance with law, a certified
copy of which must be delivered to the Grantee no later than 90 days before the
anniversary of the agreement. Such ordinance shall include a Provision that the Grantor is
exercising the option provided herein and state the new percentage to be used in
accordance with and subiect to the terms conditions and limitations set forth in this
Section 5. In no event may the Grantor, in exercising this option increase or decrease the
percentage in increments of less than 1 % from the Percentage then in effect The
Grantor's option hereunder is limited solely to the percentage used to calculate the amount
to be paid by the Grantee pursuant to this Section 5 and no other section provision or
term of this franchise shall or may be altered amended or affected by the Grantor's
exercise of this option Nothing herein shall require the Grantor to exercise its option
hereunder.
Section . if during the term of this franchise the Grantee enters into a franchise
agreement with any other municipality located in Palm Beach County, Florida, the
population of which municipality is equal to or less than 15,000, the terms of which provide
for the payment of franchise fees by the Grantee at a rate greater than 6.0% of the
Grantee's residential, commercial and industrial revenues (as such customers are defined
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by FPL's tariff), under the same terms and conditions as specified in Section 5 hereof, the
Grantee, upon written request of the Grantor, shall negotiate and enter into a new
franchise agreement with the Grantor in which the percentage to be used in calculating
monthly payments under Section 5 hereof shall be no greater than that percentage which
the Grantee has agreed to use as a basis for the calculation of payments to the other Palm
Beach County municipality, provided, however, that such new franchise agreement shall
include additional benefits to the Grantee, in addition to all benefits provided herein, at
least equal to those provided by its franchise agreement with the other Palm Beach
County municipality. Subject to all limitations, terms and conditions specified in the
preceding sentence, the Grantor shall have the sole discretion to determine the
percentage to be used in calculating monthly payments, and the Grantee shall have the
sole discretion to determine those benefits to which it would be entitled, under any such
new franchise agreement.
Section 7. As a further consideration, during the term of this franchise or any
extension thereof, the Grantor agrees: (a) not to engage in the distribution and/or sale, in
competition with the Grantee, of electric capacity and/or electric energy to any ultimate
consumer of electric utility service (herein called a "retail customer') or to any electrical
distribution system established solely to serve any retail customer formerly served by the
Grantee, (b) not to participate in any proceeding or contractual arrangement, the purpose
or terms of which would be to obligate the Grantee to transmit and/or distribute, electric
capacity and/or electric energy from any third party(ies) to any other retail customers
facility(tes), and (c) not to seek to have the Grantee transmit and/or distribute electric
capacity and/or electric energy generated by or on behalf of the Grantor at one location to
the Grantors facility(ies) at any other locabon(s). Nothing specified herein shall prohibit
the Grantor from engaging with other utilities or persons in wholesale transactions which
are subject to the provisions of the Federal Power Act
Nothing herein shall prohibit the Grantor, If permitted by law, (t) from purchasing
electric capacity and/or electric energy from any other person, or (ii) from seeking to have
the Grantee transmit and/or distribute to any facility(les) of the Grantor electric capacity
and/or electric energy purchased by the Grantor from any other person; provided,
however, that before the Grantor elects to purchase electric capacity and/or electric
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energy from any other person, the Grantor shall notify the Grantee. Such notice shall
include a summary of the specific rates, terms and conditions which have been offered by
the other person and identify the Grantor's facilities to be served under the offer. The
Grantee shall thereafter have 90 days to evaluate the offer and, if the Grantee offers
rates, terms and conditions which are equal to or better than those offered by the other
person, the Grantor shall be obligated to continue to purchase from the Grantee electric
capacity and/or electric energy to serve the previously -identified facilities of the Grantor
for a term no shorter than that offered by the other person. If the Grantee does not agree
to rates, terms and conditions which equal or better the other person's offer, all of the
terms and conditions of this franchise shall remain in effect.
Section 8. If the Grantor grants a right, privilege or franchise to any other person
or otherwise enables any other such person to construct, operate or maintain electric light
and power facilities within any part of the incorporated areas of the Grantor in which the
Grantee may lawfully serve or compete on terms and conditions which the Grantee
determines are more favorable than the terms and conditions contained herein, the
Grantee may at any time thereafter terminate this franchise if such terms and conditions
are not remedied within the time period provided hereafter. The Grantee shall give the
Grantor at least 60 days advance written notice of its intent to terminate. Such notice
shall, without prejudice to any of the rights reserved for the Grantee herein, advise the
Grantor of such terms and conditions that it considers more favorable. The Grantor shall
then have 60 days in which to correct or otherwise remedy the terms and conditions
complained of by the Grantee. If the Grantee determines that such terms or conditions are
not remedied by the Grantor within said time period, the Grantee may terminate this
franchise agreement by delivering written notice to the Grantor's Clerk and termination
shall be effective on the date of delivery of such notice.
Section 9. If as a direct or indirect consequence of any legislative, regulatory or
other action by the United States of America or the State of Florida (or any department,
agency, authority, instrumentality or political subdivision of either of them) any person is
permitted to provide electric service within the incorporated areas of the Grantor to a
customer then being served by the Grantee, or to any new applicant for electric service
within any part of the incorporated areas of the Grantor in which the Grantee may lawfully
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serve, and the Grantee determines that its obligations hereunder, or otherwise resulting
from this franchise in respect to rates and service, place it at a competitive disadvantage
with respect to such other person, the Grantee may, at any time after the taking of such
action, terminate this franchise if such competitive disadvantage is not remedied within the
time period provided hereafter_ The Grantee shall give the Grantor at least 90 days
advance written notice of its intent to terminate. Such notice shall, without prejudice to any
of the rights reserved for the Grantee herein, advise the Grantor of the consequences of
such action which resulted in the competitive disadvantage. The Grantor shall then have
90 days in which to correct or otherwise remedy the competitive disadvantage. If such
competitive disadvantage is not remedied by the Grantor within said time period, the
Grantee may terminate this franchise agreement by delivering written notice to the
Grantor's Clerk and termination shall take effect on the date of delivery of such notice.
Section 10. Failure on the part of the Grantee to comply in any substantial
respect with any of the provisions of this franchise shall be grounds for forfeiture, but no
such forfeiture shall take effect if the reasonableness or propriety thereof is protested by
the Grantee until there is final determination (after the expiration or exhaustion of all rights
of appeal) by a court of competent jurisdiction that the Grantee has failed to comply in a
substantial respect with any of the provisions of this franchise, and the Grantee shall have
six months after such final determination to make good the default before a forfeiture shall
result with the right of the Grantor at its discretion to grant such additional time to the
Grantee for compliance as necessities in the case require.
Section 11. Failure on the part of the Grantor to comply in substantial respect
with any of the provisions of this ordinance, including but not limited to: (a) denying the
Grantee use of public rights-of-way for reasons other than unreasonable interference with
motor vehicular traffic; (b) imposing conditions for use of public rights-of-way contrary to
Florida law or the terms and conditions of this franchise; (c) unreasonable delay in issuing
the Grantee a use permit, if any, to construct its facilities in public rights-of-way, shall
constitute breach of this franchise and entitle the Grantee to withhold all or part of the
payments provided for in Section 5 hereof until such time as a use permit is issued or a
court of competent jurisdiction has reached a final determination in the matter. The
Grantor recognizes and agrees that nothing in this franchise agreement constitutes or shall
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be deemed to constitute a waiver of the Grantee's delegated sovereign right of
condemnation and that the Grantee, in its sole discretion, may exercise such right.
Section 12. The Grantor may, upon reasonable notice and within 90 days after
each anniversary date of this franchise, at the Grantor's expense, examine the records of
the Grantee relating to the calculation of the franchise payment for the year preceding
such anniversary date. Such examination shall be during normal business hours at the
Grantee's office where such records are maintained. Records not prepared by the
Grantee in the ordinary course of business may be provided at the Grantor's expense and
as the Grantor and the Grantee may agree in writing. Information identifying the Grantee's
customers by name or their electric consumption shall not be taken from the Grantee's
premises. Such audit shall be impartial and all audit findings, whether they decrease or
increase payment to the Grantor, shall be reported to the Grantee. The Grantors right to
examine the records of the Grantee in accordance with this Section shall not be conducted
by any third party employed by the Grantor whose fee, in whole or part, for conducting
such audit is contingent on findings of the audit
Grantor waives, settles and bars all claims relating in any way to the amounts
paid by the Grantee under the Current Franchise Agreement embodied In Ordinance
No. 76-2.
Section 13. The provisions of this ordinance are interdependent upon one
another, and if any of the provisions of this ordinance are found or adjudged to be invalid,
illegal, void or of no effect, the entire ordinance shall be null and void and of no force or
effect
Section 14. As used herein "person" means an individual, a partnership, a
corporation, a business trust, a joint stock company, a trust, an incorporated association, a
joint venture, a governmental authority or any other entity of whatever nature.
Section 15, Ordinance No. 76-2, passed and adopted June 11, 1976 and all
other ordinances and parts of ordinances and all resolutions and parts of resolutions in
conflict herewith, are hereby repealed.
Section 16. As a condition precedent to the taking effect of this ordinance, the
Grantee shall file its acceptance hereof with the Grantors Clerk within 30 days of adoption
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of this ordinance. The effective date of this ordinance shall be the date upon which the
Grantee files such acceptance.
PASSED on first reading this 9th day of Jude , 2006
PASSED on second reading this 14th day of Ju^ 1:� , 2006
PASSED AND ADOPTED on third reading this lltb day of
August , 2006
A UR
ATTEST:
,e Z�1�
TOWN CLERK
TOWN OF GULF STREAM, FLORIDA
APPROVED
AS TO
FORM
AND
LEGALITY
i
Gulf Stream, Florida
wn Att
ney,
Town
of
Clerk's Certificate
STATE OF FLORIDA )
COUNTY OF PALM BEACH)
TOWN OF GULF STREAM )
I, Rita L. Taylor, hereby certify that I am the
duly appointed and acting Clerk of the Town of Gulf
Stream, Florida; that the foregoing is an original
copy of Ordinance No. 06/01 adopted on third reading
at a Public Hearing held by the Town Commission on
August 11, 2006.
IN WITNESS WHEREOF, I have hereunto set my hand
and affixed the official seal of said Town, this 22nd
day of August A.D. 2006.
(SEAL) T44
Rita L. Taylor
Town Clerk
ACCEPTANCE OF ELECTRIC FRANCHISE
ORDINANCE NO. 06/01
BY FLORIDA POWER & LIGHT COMPANY
Town of Gulf Stream, Florida August 1, 2006
Florida Power & Light Company does hereby accept the electric franchise
in the Town of Gulf Stream, Florida, granted by Ordinance No. 06/01, being:
AN ORDINANCE GRANTING TO FLORIDA POWER & LIGHT
COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC
FRANCHISE, IMPOSING PROVISIONS AND CONDITIONS
RELATING THERETO, PROVIDING FOR MONTHLY PAYMENTS TO
THE TOWN OF GULF STREAM AND PROVIDING FOR AN
EFFECTIVE DATE.
which was passed on second reading on July 14, 2006, and passed and adopted on third
reading on August 11, 2006.
This instrument is filed with the Town Clerk of the Town of Gulf Stream,
Florida, in accordance with the provisions of Section 16 of said Ordinance.
FLORIDA POWER & LIGHT COMPANY
By:
J e artel, Vice President
ATTEST:
XV4 L'
J. . Leo Assistant Secretary
I HEREBY ACKNOWLEDGE receipt of the above Acceptance of Electric
Franchise Ordinance No. 06/01 by Florida Power & Light Company, effective August 1,
2006, and certify that I have filed the same for record in the permanent files and
records of the Town of Gulf Stream, Florida on this I Al— day of Q I zqA 0 - 1— ,
2006.
Town Clerk, Town of Vulf Stream, Florida