HomeMy WebLinkAboutOrdinance 1980-011 Florida Public Utilities FranchiseORDINANCE NO. 11-80
AN ORDINANCE OF THE VILLAGE OF NORTH PALM BEACH, FLORIDA, GRANTING TO
i FLORIDA PUBLIC UTILITIES COMPANY,'ITS SUCCESSORS AND ASSIGNS, A GAS FRANCHISE
AND IMPOSING PROVISIONS AND CONDITIONS RELATING THERETO.
NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM
BEACH, FLORIDA:
Section 1. The VILLAGE OF NORTH PALM BEACH, FLORIDA, a Municipal
Corporation (herein referred to as "Grantor") hereby grants to FLORIDA PUBLIC
UTILITIES COMPANY, a Florida Corporation (herein referred to as•"Grantee") its
successors and assigns, for the term of thirty (30) years beginning ten (10)
days after the date of the final passage of this Ordinance, the right,
privilege and authority or franchise to construct or otherwise acquire and
to own, maintain, equip and operate plants and works, and all necessary or
desirable facilities appurtenant thereto, for the purchase, transmission,
distribution and sale of natural gas, which term "natural gas" shall mean and
include either natural gas unmixed as delivered to Grantee or any mixture of
such natural gas with artificial gas or with liquefied petroleum gas or with
both (herein referred to generally as "gas"), including the right without
the payment by Grantee of any tax, assessment or charges therefor to construct,
lay, extend, maintain, renew, remove, replace, repair, use and operate gas
pipes and gas rains, and all appurtenances and appendages thereto, in, under,
on or across the present and future public streets, avenues, alleys, highways,
bridges, easements and other public places within the present or any future
corporate limits of the Grantor or its successors, for the purpose of distri-
buting, supplying and selling gas to Grantor or its successors, and to persons
1
and corporations inhabitants thereof as well as to persons or corporations
. beyond the present or future corporate limits thereof, but nothing herein
contained shall relieve Grantee from meeting all requirements of the Grantor's
Building Code and payment of any fees, licenses or ad valorem taxes.
Section 2. Grantee's facilities shall be so located or relocated and
so erected as to interfere as little as possible with traffic over said streets
avenues, alleys, highways, bridges, easements and other public places, and to
interfere as little as possible with reasonable egress from and ingress to
abutting property. The location or relocation of all facilities shall be made
under the supervision and with the approval of such representatives as the
governing body of Grantor may designate for the purpose, but not so as
unreasonably to interfere with,the proper operation of Grantee's facilities
and service. When any portion of the Grantor's property is excavated or
disturbed by Grantee in the location or relocation of any of its facilities,
the portion of the Grantor's property so excavated or disturbed shall, within
a reasonable time and as early as practicable after such excavation, be
replaced by the Grantee at its expense and in as good condition as it was at
the time of such excavation, and, in addition, such work shall be done only in
the manner and pursuant to the regulations, if any, established by the
ordinances of the Grantor. And upon failure of Grantee so to do after twenty
(20) days' notice in writing shall have been given to said Grantee by the
representative of the Grantor, the Grantor may repair such portion of the
Grantor's property that may have been disturbed by said Grantee, or replace any
excavation, and the cost of same shall be paid by said Grantee.
Section 3. Subject to the provisions hereof, Grantee shall at all
times during the term of this franchise, promptly and without discrimination,
' furnish an adequate supply of gas of standard quality and at a reasonably
;. uniform and adequate pressure to be maintained on Grantee's system, to Grantor
and its successors, and to persons and corporation inhabitants thereof who
request the same and who agree to abide by Grantee's reasonable rules and
regulations, and shall acquire, construct, maintain, equip and operate all
necessary plants, works and facilities for the purpose, transmission, supply,
peak shaving, distribution and sale of gas for the benefit and convenience
11 of Grantor and its inhabitants, and shall make promptly such extensions to
existing facilities as may be required by one or more customer, or prospective
customers; provided that if the revenues to be derived from such extensions
shall not afford a fair and reasonable return on the cost of providing and
rendering the required service, then Grantee shall be permitted to, and is
1; hereby authorized to exact from such customer or customers such reasonable
11 cash advances, contributions, minimum guarantees, service guarantees or other
11, arrangements, as will enable Grantee to earn a fair and reasonable return on
the cost of providing and rendering the required service.
Section 4. Grantee's rates for gas shall at all times be subject to
-2-
I
such regulations as may be provided by law. Grantee shall not be entitled to
claim any value on account of this franchise in the value of Grantee's
property or rate base.
Section 5. Subject to the consumer's consent, Grantee shall have the
right to install and maintain on the premises of each of its customers meters
for measuring gas sold and delivered and shall have the right of ingress and
egress to the premises of each consumer free of charge, from time to time, for
the purpose of reading, repairing, testing and maintaining Grantee's meters and
appurtenances. Such meters and appurtenances shall at all times remain the
property of Grantee, and shall be removable by Grantee at any time, by lawful
mans.
Section 6. Grantee shall have the right to adopt and enforce reason-
able rules and regulations with respect to the extension, initiation and
rendering of gas service, including rules providing for the discontinuance of
service to any customer on account of nonpayment of bills when due, or upon
failure to comply with the Grantee's other reasonable rules and regulations.
Section 7. Grantee shall indemnify and save and keep Grantor harmless
from any and all liability by reason of damage or injury to any person or
property whatsoever on account of the negligence of Grantee in the installation
maintenance, and operation of its facilities; provided Grantor shall praaptly
in each case notify Grantee in writing of any claim against Grantor on account
thereof, and shall afford Grantee opportunity to defend the same.
Section 8. Within thirty (30) days after the first anniversary date
of this grant and within thirty (30) days after each succeeding anniversary
date during the existence of this grant, the Grantee, its successors and
assigns, shall pay to the Grantor or its successors a privilege tax equal to
the ,ul&unt by which five (5) percent of the amount of its gross revenues
(gross revenues being the amount of revenues collected less adjusttttts) from
the sale of gas to residential customers within the corporate limits of Grantor
for the twelve calendar months preceding the applicable anniversary date shall
exceed the amount of any other taxes or licenses levied or imposed by Grantor
against Grantee's property, business, revenues, privileges, or operations for
the tax year preceding the beginning of the applicable privilege tax year.
Section 9. Grantee -by its acceptance hereof agrees to observe, perform
and keep all of the agreements, undertakings and conditions hereof to be
,4
observed, performed and kept by Grantee.
Section 10. Failure on the part of Grantee to comply in any substan-
tial respect with any of the provisions of this Ordinance shall be grounds for
Ill a forfeiture of this grant, but no such forfeiture shall take effect if the
reasonableness or propriety thereof is protested by Grantee until a court of
y; competent jurisdiction (with right of appeal in either party) shall have found
'I that Grantee has failed to comply in a substantial respect with any of the
provisions of this franchise, and the Grantee shall, after the final
11 determination of the question, forthwith proceed to make good the default
6 before a forfeiture shall result, the default to be cured in any event within
a period of six months with the right in Grantor at its discretion to grant
such additional time to Grantee for compliance as necessities in the case
r require.
Section 11. In any case where there is interruption or impairment of
service, or failure of supply of gas or pressure, Grantee shall promptly remedy
such condition. No interruption or impairment of service or failure of
t• supply of gas or pressure by reason of force majeure, strike, breakdown,
accident or other cause or happening beyond the control of Grantee shall
constitute a breach of this Ordinance nor subject the Grantee to liability for
damage; provided that such interruption or tapaiuitut of service or failure of
supply of gas or pressure by reason of force majeure, strike, breakdown,
accident, or other cause or happening shall be remedied promptly.
Section 12. In consideration of Grantee's undertakings hereunder as
11evidencedby its acceptance hereof, the Grantor agrees not to engage in the
1 business of distributing and selling gas during the life of this franchise or
any extension thereof in competition with the Grantee, its successors and
is
assigns.
Section 13. Grantor hereby reserves the right at and after the
expiration or termination of this grant to purchase the property of Grantee
i used under this grant, as provided by the laws of Florida in effect at the
i time of Grantee's acceptance hereof, including Section 167.22 of the Florida
Statutes, 1941, and as a condition precedent to the taking effect of this
grant, Grantee shall give and grant to the Grantor the right to purchase so
reserved. Grantee shall be deemed to have given and granted such right of
-4-
purchase by its acceptance hereof, which shall be filed with the Grantor's
Clerk within thirty (30) days after the final passage of this Ordinance.
Section 14. All of the terms, provisions and conditions hereof shall
inure to and be binding upon the,respective successors and assigns of the
Grantor and the Grantee.
Section 15. A11 gas franchise ordinances and parts of gas franchise
ordinances in conflict herewith shall be and the same are hereby repealed as
of the effective date of this ordinance.
Section 16. This Ordinance shall take effect ten (10) days after the
date of its final passage and shall be published as required by law.
PLACED ON FIRST READING THIS 8TH DAY OF MAY, 1980.
PLACED ON SECOND, FINAL READING AND PASSED THIS 22ND DAY OF MAY, 1980.
ArcbST:
/��'./"�2'-ri e,y.42.
MAYOR
/ `,.S e cz c .CI L
GORDON 0./JERAULD, Senior Vice President
Florida' Public Utilities Company
MILDRED K. HALL, Corporate Secretary
Florida Public Utilities Company
-5-