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O-59-184 I' ORDINANCE NO.. / 81 ..;¡'¡. "'" " -~ / AN ORDINANCE GRANTING TO LAKE APOPKA NAWRAL GAS DISTRICT, ITS SUCCESSORS AND ASSIGNS, THE RIGHT, PRIV- ILEGE AND FRANCHISE TO MANUFACTURE, IMPORT, TRANS- PORT, SELL AND DISTRIBUTE GAS FOR HEATING, ILLUMINATING, AND OTHER PURPOSES IN THE CITY OF CLERMONT, LAKE COUNTY, FLORIDA, AND TO THE USE OF THE STREETS, BRIDGES, AVENUES,EASEMENTS, ALLEYS AND OTHER PUBLIC PLACES OR WAYS THEREOF FOR THAT PURPOSE. BE IT ORDAINED AND ESTABLISHED BY THE CITY COUNCIL OF ~HE CITY OF CLERMONT, LAKE COUNTY, FLORIDA: - " SECTION 1. GRANT OF AUTHORITY. There is hereby granted to Lake Apopka Natural Gas District (hereinafter called the "District), its successors and assigns, the non-exclusive right for a period of thirty (30) years after the adoption hereof, the right,.. privilege or franchise to manufacture, import, transport, distribute and sell manufactured or natural gas (herein referred to generally as "gas") for heating, illuminating, cooking and other purposes within the limits of the City of Clermont, Lake County, Florida, (herein referred to as the "City"), as the same now exists or as they may be extended in the future and for that purpose to establish the necessary facilities and equipment and to maintain a manufacturing plant, gas main, service pipes, and any other appurtenances necessary to the manufacture, sale, transportation and distribution of gas in, under, upon, across and along the present and future streets, alleys, avenues, bridges, easements or other public places or ways of such municipality, and to do all things which are reasonable, necessary, or customary in the accomplishment of this objective; subject, how- ever, to the further provisions of this franchise: provided, however, that before said District shall establish any plant in said City for the manufacture of gas, the approval of the governing body of the City of the location thereof, in the exercise of a reasonable discretion of said governing body of the City, shall be first ob- tained by said District. No such plant shall be constructed or op- erated in violation of the zoning and building ordinances of the City. ...... . SECTION 2. OBSTRUCTING STREETS. The District shall exercise its privileges herein subject at all times to the police power of the City and shall not unnecessarily or unreasonably obstruct the use of or injure any street, avenue, alley, or other public place in any way, and shall, upon the completion of any construction or repair, restore all streets, avenues, alleys or other public places or ways of the municipality which shall be opened by it or its agents or employ- ees for the purpose of laying, placing or repairing its aforesaid gas mains or service pipes to as nearly the same order and condition as they were before the excvation was made as is reasonably possible and to preserve them in this condition for twelve months. Any obstruction of any street, alley, park, boulevard, bridge or other public place or way, or any failure properly to fill and maintain a street after excavation, after proper notice of ten (10) days demanding removal or repair, as the case may be, shall be taken care of by the City and the cost thereof, plus 10% for administering and engineering expense shall be charged against the District. SECTION 3. PLATS. The District, prior to the laying or relaying of any mains under this franchise, shall present to the governing body of the City a complete plat showing the location, and size, of all proposed mains, the construction, location or re-location of all facilities or any other construction or installation made and effected by the District by virtue of this franchise ordinance shall be made under the supervision of and with the approval of such represent- atives as the governing body of the City may designate for the purposes, but not so as unreasonably to interfere with the proper operation of the District facilities and service. SECTION 4. DAMAGE CLAIMS. The District shall indemnify, keep, and hold the City, its officers, agents, and employees, free and harmless from liability on account of death, injury or damage to persons or property growing out of the construction, maintenance, re- pair, or operation of its property, or due to the negligence of the Dis- trict' its agents or employees, in operating its property, and in the event that suit shall be brought against the City, either independently or mointly with the District, on account thereof, the District upon notice to it by the City, shall defend the City in any suit, at the cost of the District: and in the event of a final judgment being obtained against the City, either independently or jointly with the District, the District shall pay such judgment with all costs, and shall hold the ,City harmless therefrom. SECTION 5. STANDARDS OF SERVICE. The District shall at all times provide and furnish an adequate, safe and continuous sup- ply of gas to the City and its inhabitants, subject, however, to the further provisions of this section. The District will sell and distribute straight natural gas throughout its distribution system, which is lo- cated in Orange and Lake Counties and in a number of the cities and towns thereof, and in the territory adjacent to and near said cities and towns. The natural gas distributed by the District will be furnished by the pipeline system owned and operated by Houston Texas Gas and Oil Corporation, (or by some other company which holds a certificate of public convenience and necessity from the Federal Power Commission to transport and sell gas in the State of Florida). That company is a "natural gas company" under the Federal Natural Gas Act, and subjects said Houston Texas Gas and Oil Corporation (or its successors or assigns) to the jurisdiction of the Federal Power Commission. (' . The District shall not be liable to the City or its inhabitants nor shall the City, or any inhabitant who is a customer of the District, be liable to the District hereunder by reason of the failure of the District -2- ) to deliver, or of the City or a customer to receive, natural gas as a result of acts of God, or the public enemy, inability of pipeliner . supplier to furnish an adequate supply due to an emergency, an order of decision of a public regulatory body, or other acts beyond the con- trol of the party affected. .. Whenever any of the occurrences named above take place, the District shall have the right and authority and it shall be its duty to adopt reasonable rules and regulations in connection with limiting, curtailing or allocating extensions of service or supplying of gas to any customer or prospective customer, and withholding the supplying of gas to new customers, provided that such rules and reg- ulations shall be uniform as applied to each class of customers, and shall be non -discriminatory as between communities receiving natural gas service from the District. The District shall have the right tot sell gas for industrial use on an interruptible basis, requiring the customer to have standby equipment for use upon notice by the District. The.District's rules, regulations, schedules or contracts for curtailing interruptible gas service shall be uniform as applied to each class of interruptible cus- tomers. If service is suspended because of any of the reasons set forth above, occurring through no fault or negligent act on the part of the District, such suspension shall not be made the basis of any action or proceeding to terminate this franchise. The quality of the gas sold in the City shall be the same as that sold to the District's other cus- tomers in its service area in the counties in which the District lies. SECTION 6. RATES. The District agrees for and in behalf of itself, its lessees, successors, and assigns that all authority and rights in this ordinance contained shall at all times be subject to all right, power and authority now or hereafter possessed by said City or any other regulatory tribunal having jurisdiction thereover to reg- ulate, fix and control just, reasonable and compensatory gas rates, taking into account the rights of, and the obligations and duties of the District to the holders of revenue bonds or other obligations of the Dis- trict hereafter issued by the District to finance the construction or acquisition of its gas system or systems. , SECTION 7. ACCOUNTING REPORTS. The District agrees to file with the City Clerk, on or before July 1 of each year, a copy of its annual report to its security holders for the preceding calendar year, together with a balance sheet and income statement for the City of Clermont, Lake County, Florida, on, allocated basis. The City or any certified public Accountant selected by the City shall have the right at all reasonable hours to examine the District's books and rec- ords for the purpose of verifying the statement of revenues furnished by the District to the City, such books and records shall be kept in such a form that they shall contain all information reasonably necessary to the 'City. -3- .. SECTION 8. FRANCmSE-PURCHASE PROPERTY OF DISTRICT, ETC. The City hereby reserves the right at and after the expiration or termination of this grant to purchase the property of the District used under this franchise, as provided by the Laws of Florida, in effect at the time of the District's acceptance hereof, including Section 167.22 of the Florida Statutes, and as a condition precedent to the taking effect of the franchise, District shall give and grant to the City the right to purchase so reserved. District shall be deemed to have given and granted such right of purchase by its acceptance hereof, which shall be filed with the City Clerk within thirty (30) days after this ordinance takes effect. SECTION 9. PAYMENTS TO CITY. The District agrees that subsequent to the commencement of operation of a system in the City that it will, in consideration of the granting of this franchise, return to the City on a pro rate basis, a certain percentage of revenues de- rived from the sale of natural gas within the City. The details and formula for the computation of such refunds shall be determined and formalized in a separate agreement and shall, when so ~ormulated, be incorporated in this franchise by reference. SECTION 10. FRANCHISE RESTRICTIONS ON CITY. During the term of this franchise, or any extension thereof, the City will not engage, directly or indirectly, in the business of transporting, dis- tributing or selling natural gas in competition with the District, its successors or assigns. SECTION 11. APPROVAL OF TRANSFER. No sales, assignment or lease of this franchise shall be effective until it is approved by the City Commission and until the vendee, assignee, or lessee has filed in the office of the City ,Clerk an instrument duly executed reciting the facts of such a sale, assignment, or lease accepting the terms of the franchise, and agreeing to perform all the conditions thereof. . SECTION 12. FORFEITURE. If the District shall be in any default in the performance of any of the material terms and conditions of this ordinance and shall continue in default for more than one-hundred- twenty (120) days 'after receiving notice from the City of such default, the governing body of the City may, by ordinance duly passed and adopted, terminate all rights granted under this ordinance to the District; pro- vided, however, that as long as any revenue bonds or other obligations of the District issued by it to finance the cost of construction or acquis- ition of a gas system or systems in Orange and Lake Counties known as the Lake Apopka Natural Gas District, or the interest thereon, remain outstanding and unpaid, no such forfeiture shall be authorized or per- mitted without the consent of the holders of such revenue bonds or other obligations of the District expressed in writing. The said notice or de- fault shall be in writing and shall specify the provisions of this ordin- ance in the performance of which it is claimed that the District is in default. Such notice shall be served in the manner provided by the laws of the State of Florida for the service of original notices in civil act- ions. The reasonableness of any ordinance so passed declaring a for- -4- feiture of the rights and privileges granted by this franchise ordin- ance shall be subject to review by any Court of competent jurisdiction. ... .' SECTION 13. PLEDGE OF REVENUES AUTHORIZED. The District shall have the right and power and is hereby authorized to hypothecate or pledge the rates, fees, rentals or other charges or in- come derived by it from the users of the services and facilities of its gas system or systems operated by the District wholly or partially within the City of Clermont, Lake County, Florida, pursuant to this franchise, to the payment of the principal of and by the District to finance the cost of construction or acquisition of a gas system or sys- tems within Orange and Lake Counties known as the Lake Apopka Nat- ural Gas District and appropriate reserves therefore. It is the ex- press intention hereof that this franchise is made for the benefit of the City, the District and the holders of any such revenue bonds or other obligations of the District and shall be binding upon and unure to the benefit of, and be enforceable by, the holders of any such revenue bonds or other obligations of the District, the City and the District, and the successors and assigns of the City and the District, and except for the holders of any such revenue bonds or other obligations of the District, the City and the District, and their successors and assigns, is not intended to and shall not confer any rights upon any other person, firm or corporation, public or private. SECTION 14. CHANGE OF GOVERNMENT. Any change of the form of government of the City as authorized by the State of Florida shall not affect the validity of this franchise. Any municipal corporation succeeding the City,shall, without the consent of the District, succeed to all the rights and obligations of the City provided in this franchise. SECTION 15. ACCEPTANCE. The District shall, within thirty, (30) days after the passage and publication of this ordinance, file with the City Clerk its acceptance of the same in writing, signed by its proper officers and attested by its corporate seal. SECTION 16. FINDING OF EMERGENCY. This ordinance is passed as an emergency measure, and the Council does, by the vote by which this ordinance is passed, hereby declare that an emergency exists, which makes it imperative that this ordinance would become effective forthwith in order that the public health, welfare and safety' might most effectively be provided for. , -------~------------------------------------------------------- . PASSED by the City Council at its Adjourned Regular Meeting held on November 16, 1959, in the City of Clermont, Florida. . =¿;- " ATTEST: A/ /d¡ -' .;; /;)t;t~ pr~i~ ~~ '/ ,,', ~,},"' C~~ '- - '/ City Council, Clermont, Florida ~ ---- ~- ------------------------------------------------------- Passed by the City Council on its first reading on -5- .. November 17, 1959. PASSED by the City Council at its second reading on November 17, 1959. PASSED by the City Council at its third reading on November 17, 1959. 'c:; < , ATTEST: - / .'...... .'", k~ Pr~~t~~ City Council, Clermont, Florida , ----------------------------------------------------------- CER TIFICA TE / I, A. M. JOHNSON, Clerk of the City of Clermont, Florida, do Hereby Certify that a copy of the foregoing Ord- inance was posted as required under the Charter and Ordinances of this City. /' --, DATED, December 1,6: 1959. / ' /,A~~ teity'Clel'k, ~ont, J Florida -------------------------------------------------------------- . .'" 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