Ordinance 037 Green's Fuel FranchisePage / ~ 8
ORDINANCE #37
oRDZraANCE #37
AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTS PAIM BEACH, FLORIDA, GRALdTING
AN EXCLUSIVE FRANCffiSE TO GREEN'S FUEL OF FIARIDA CORPORATION, A FLORIDA CORPORATION, TO SELL,
OPERATE, MArmmaTN A~ DISTRIBUTE GAS IN TSE VILLAGE OF NORTH PALM BEACH; SETTING FORTS CONDITIONS
AND PRIVILEGES ACCOMPANY.iiIG THE GRANT, INDEMNITIES AGAINST DAMAGE; PROVIDING FOR RATES AND CHARGES;
FIXING ~'mn'TFGE TAX; PROVIDING FOR PENALTIES FOR THE VIOLATION; PROVIDING FOR THE PURCHASE OF
UTILITIES BY TAE VILLAGE OF NORTH PALM BEACH UNDER CERTAIN CONDITIONS; AND FOR OTHER PURPOSES.
BE IT ORDALidID BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA:
fiction 1. Short Title. This ordinance shall be known and may be cited as the
NORTH PALM BEACH GAS FRANCHLSE ORDINANCE. -
Section 2. Definitions.
(1) Tne word "Corporation" as used herein refers to Green's Fuel of Florida Corporation,
a Florida Corporation.
(2) The word "Village" as used herein refers to the Village of North Palm Beach, Florida.
Section 3. Gant of Authority. Tn consideration of the undertaking by the Corporation of
furnishing gas distribution and service to the area included in the Village, and i.n further considera-
tion of the capital expended for such gas system, the installation of mains, laterals, and bulk
storage, and maintenance of the same, and for the considerations hereinafter set forth, there is
hereby granted by the Village to the Corporation, the right acid privilege to construct, erect,
operate and maintain in and under the streets, alleys, public ways and public places now laid out
or dedicated, and all extensions thereof and additions thereto, in the Village, mains and pipes
and appurtenant fixtures necessary for the maintenance and operation in the Village of a gas
distribution systes. The right to use and occupy said streets, alleys, public ways and places for
the purposes herein set forth shall not be exclusive, and the Village reserves the right to grant
a similar use of said streets, alleys, public ways and places for any other proper municipal
purpose except that so long as this ordinance shall remain effective it shall not give such right
to any other person for gas distribution, mains or pipes.
Section 4. Compliance with Applicable Laws and Ordinances. The Corporation shall, at all
times during the life of this franchise, be subject to all lawful regulations under the police power
of the Village.
Section 5• Liability of Corporation; Indemnification. It is expressly understood and
agreed between the Corporation and the Village that the Corporation shall save the Village harmless
from all loss susts.ined by the ViLage on account of any suit, ,judgement, execution, claim or demand
whatsoever resulting from negligence on the part of the Corporation in the construction, operation
or maintenance of Sts gas system in the Village. Tae Village shall notify the Corporation's representa-
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Lives as soon as possible after the presentation of any claim or demand, either by suit ar other-
wise, made against the Village on account of any negligence, as aforesaid, on the part of the
Corporation.
Section 6. Service Standards. Tne Corporation shall operate and maintain its gas
supply and distribution system and render efficient service in accordance with this ordinance and
all reasonable requirements and regulations of the Village, it being understood that temporary
cessation of delivery of gas at any time caused by an Act of God, fires, strikes, casualties,
accidents, necessary maintenance work, breakdowns, damage to machinery or lines, civil or military
authority, or by riot or other cause beyond the control of the Corporation, shall not constitute
a breach of the provisions of this ordinance or impose liability upon the Corporation, to the
Village or to its inhabitants or gas consumers therein. All gas supplied by the Corporation under
this franchise shall have a minimwn of 81,000 BTU's per gallon.
Section 7. Meters. All gas delivered to consumers heretmder shall be metered, furnished,
installed and maintained at the cost of the Corporation.
In case the consummer shall at any time question whether ax~y meter or maters are regis'rering
correctly, the consumer shall have the right, upon making written request to the Corporation, to
have such meter or meters tested in the presence of a representative of the consumer and if, as a
result of such test, such meter or meters shall be found to be incorrect or inaccurate the same
shall be restored to an accurate condition or a new meter or meters shall be installed, at the
cost of the Corporation. if such meter or meters be found to be within three (3~) per cent of the
accurate or true reading, the cost of such test shall be borne by the consumer but otherwise shall
be paid by the Corporation. Should any test or tests show any such meter or meters to be sub-
stantially inaccurate, computations for gas previously delivered since the last preceding monthly
meter reading shall be adjusted accordingly.
7ize Corporation shall furnish and maintain at its own cost, all mains and service lines
0
to deliver gas to the CAYls'4AR2P8 at the property line. All fittings, pipes and meter systems shall
remain the property of the Corporation, and shall, at all times be accessible to it and under its
control. Tae service line from the mains to the cons~er's premises shall be laid and maintained
by the applicant at his own cost. The line shall be of ample size, of standard weight and quality,
and all cut-offs, valves and service lines furnished by the cons~er shall be maintained in good
order and condition. All gas connections required to be furnished by the applicant shall be of
such size and quality as shall be required by the Corporation and shaL1 be laid and installed in
accordance with its rules and regulations and to that end the Corporation shall be authorized to
establish reasonable rules and regulations not in violation of this ordinance.
Section 8. E~ctensions. Anything to the contrary contained elsewhere notwithstanding,
the Corporation shall be under no obligation to extend its mains, lines, appurtenances and
facilities to atXy area of the Village platted of record subsequent to the date of this franchise
unless and until there shall have been filed with the Corporation a su3ficient number of applica-
Fage / 3 O
tioavs for service by prospective consumers who will actua]_ly reside in the newly developed area,
to afford the Corporation, in its reasonable opinion, a fair a2nd reasonable rate of return upon the
investment required to extend the Corporation's facilities to such area. Prior to any such extension,
the Corporation may require a capital contribution, cash deposit, bond or other assurance from
prospective consumers applying for such extension. Provided, however, until such main extension
shall be made the Corporation shall provide service by individual tanks or block systems.
In the event the prospective consumer cannot comply with the Corporation's requirements
for the construction of said extension, the Corporation shall supply individual service to such
consumer until such extensions can be constructed according to the terms and conditions of this
franchise. Such individual service shall be bottled, tank or block systems, and the cost to such
consumer in such event shall be that usually charged to the consumer with a similar type of service.
Section 9• Penalties. A penalty of ten per cent (10~) nay be required to be paid on
all bills not paid within thirty (30) days. In the event such bills are not paid within sixty (60)
days the Corporation shall have the right to discontinue service without notice, and such service
shall not be restored until all past bills have been paid, including penalties.
Section 10. Rates. As far as it is within the power of the Village to fix rates and
charges, and subject to the provisions that all rates hereunder shall at alt times be such as to
provide the Corporation with a fair return on its investment and with funds for replacement of its
distributive systems, rates and minimum monthly charges to residential consumers of gas within the
Village shall be as fo3.locrs
(1) 'Ihe quantity of gae delivered by the Corporation shall be determined from the
meter readings made by or on behalf of the Corporation monthly and billed by the Corporation
monthly to the consumer a.s fo].1ows:
The first ten (10) gallons each month, 35¢ per gallon;
the next fifteen (15) gallons each month, 33¢ per gallon;
All over twenty five (25) gallons each month, 28.8¢ per gallon;
A monthly minimum charge of x..75 per month.
{2) Fisch such rate per gallon shall be ad3usted on October 1, 1958 (such adjustment
to be effective with respect to the months of October and November and December 1958) and in like
manner on January 1, 1959, and on the first day of each month thereafter during the term of this
franchise as follows:
There shall be added to or deducted from (as the ease may be) each month such rate per
gallon the amount by which the posted market price per gallon of liquified petroleum gas delivered
freight prepaid at the Corporation's bulk plant in Lake Worth, F'].orida, by railroad tank car on
the first day of each three months' period exceeds or is less than (as the case may be) such
posted market price per gallon on July 1, 1958; and such a,d.,justment in each such rate shall be
effective with respect to each month iss each three months' period; (Posted market price per gallon
is that advertised by the liquified petroleum industry, including Gulf, Phillips Petroleum, Texas
Natural Gasoline Company).
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Section 11. Connection Charges. Application for connection to the gas system shall be
made upon forms furnished by the Corporation in compliance with its rules and regulations. Such
application for service shall be accompanied by a meter deposit charge in the amount of Fifteen
Dollars {,5.00), to guarantee payment o£ gas bills.
Section 12. Privilege Tax. Tdit;b. respect to each twelve-months' period during the term
o£ this franchise, the Corporation shall pay to the Village or its successors a privilege tax
which shall be computed as follows:
{1) Determine the amount which is thr~ (3~) of the gross revenue received by the
Corporation during such twelve-months' period from the sale o£ gas to residential consumers
within the corporate limits of the Village.
(2) Ik.duct Prom the amount determined in paragraph (1) all taxes and licenses and Pees
(other than this privilege tax) paid by the Corporation to the Village during such twelve-months'
period with respect to property, business and operations o£ the Corporation.
(3) The resulting figure shall represent such privilege tax with respect to such
twelve-months' period. Such tax sha]1 be paid in monthly installments (as nearly equal as
practicable) during such twelve'months' period.
Section 13. `Perm of Franchise. This ordinance shall take effect and be in force from
and after the final passage hereof, as required by law, and upon filing of acceptance by the
Corporation with the Village Clerk. Such franchise shall continua in force and effect for a
term of thirty (30) years beginning with the date of such acceptance.
Section 1~+. Assignment. Tae Corporation is hereby given the right and authority to
assign this franchise and the rights, privileges and authorities granted hereby. the assignee
upon the acceptance thereof shall be bound. to the same extent as if it were originally named as
the Corporation hereunder and upon such acceptance the Corporation shall be relieved of further
liability under this franchise.
Section 15. Right to Purchase. The Village hereby reserves the right at or after the
expiration o£ this grant to purchase the property o£ the Corporation used under this grant as
provided by the laws of the State of Florida is effect at the time of the acceptance hereof,
including fiction 167.22 F.S.A., as a condition precedent to the taking effect of this grant,
the Corporation shall give and grant to the Village the right and privileges so reserved. Tae
Corporation shall be deemed to have given and. granted such right of purchase by its acceptance
hereof which shall be filed in the Village Clerk's office within thirty (30) days after this
ordinance takes effect.
Section 16. Type of Gas. The Corporation shall design and install all of the gas mains,
pipes, and distribution system so that the same shall be capable of utilizing Natural Gas; provided
that the Corporation shall have the sole right in its discretion to change its operation from the
use of Liquefied Petroleum Cas to that of Natural Gas.
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• Section 17. Additional Ordinances. 'i'he Village agrees to pass all ordinances necessary
or suitable both for the reasonable protection of the rights and property of the Corporation and to
enable the Corporation to enforce any of its reasonable rules and regulations for the management,
operation and control of the services to be rendered by the Corporation hereunder and to pass any
reasonable ordinance or ordinances that will be necessary or suitable in order to fully confirm
to the Corporation the rights herein given or intended so to be.
Section 18. Separability. 3~ any section, subsection, sentence, clause, phrase or
portion of this ordinance is for any reason held invalid or unconstitutional by any court of
' competent ,jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and such holding sha11 not ai'fect the validity of the remaining portions hereof.
FIR5T READING THE 14th day of October, 195$•
• SECOND, F~.nr. READIIQG AND PASSAGE the 28th day of October, 1958.
ATTEST:
Village Clerk
_\~~
A'fayor
The foregoing Franchise is accepted this 2$th day of NovenbEr , 1958•
L
(SEAL)
ATTEST:
/s/ Tnl.C. Ochs
is Secretary
GREEN"S FUEL OF F'1:ORIDA
By /s/ O.M. Bailey
Its President