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1989-42 8 8 : 8iß5iVED JAN ~ ~ P AGREEMENT BY AND BETWEEN THE LAKE APOPKA NATURAL GAS DISTRICT AND THE CITY OF CLERMONT, FLORIDA, RELATING TO THE MAKING OF PAYMENTS BY THE DISTRICT TO THE SAID MUNICIPALITY IN CONSIDERATION OF A FRANCHISE GRANTED BY THE MUNICIPALITY TO THE DISTRICT. e<i-()4-;L I/-/~ -Sq WHEREAS, THE LAKE APOPKA NATURAL GAS DISTRICT (hereinafter sometimes referred to as "District") has been, heretofore, duly, legally and validly created and established as a body corporate with perpetual existence by an act of the legislature of the State of Florida in session in 1959 chapter 59-556, of Florida, 1959 (hereinafter sometimes referred to as "Act"); and WHEREAS, the Act authorized the District to construct, acquire, own, finance, operate, maintain, extend and improve a gas system in portions of Orange and Lake Counties, Florida; and WHEREAS, the Act authorizes any municipality, or agency of such municipality, or any agency of the state to enter into agreements, contracts and franchises with the District; and WHEREAS, the District has constructed construction and is operating a gas system or systems in said portions of Orange and Lake Counties, Florida, by means of which it provides natural gas to customers in said Orange and Lake Counties, Florida, including customers within the incorporated areas of the various cities, towns, and other municipalities in said portions of Lake and Orange Counties, Florida; and WHEREAS, for the purpose of serving customers within the incorporated areas of the various cities, towns and other municipalities in said portions of Orange and Lake Counties, Florida, the District has been granted franchises by such cities, towns and other municipal i ties permi t ting the District to own and operate a natural gas system within the incorporated areas of said municipalities; and WHEREAS, the City of Clermont, Florida, has heretofore granted a franchise to the District by ordinance enacted on the 17th day of November, 1959, and has renewed, replaced and extended the franchise to the District by ordinance enacted on the 14th day of November , 1989, and WHEREAS, such franchise granted by the City to the District provides that the City and District shall enter into an agreement providing for the making of payments by the District to the Ci ty in consideration of the granting of such franchise; 8 8 NOW, THEREFORE, THIS AGREEMENT WITNESSETH: Section 1. That in consideration of the City granting to the District the franchise referred to in the preamble hereof, the District shall, at least quarterly, and more often if the District deems it advisable, pay to the City out of revenues derived from the sale of gas to customers of its gas system or systems such sums of money as shall be allocated to the city by virtue of the computation made pursuant to the provisions of Section 2 and Section 3 hereof. Section 2. All rates, fees, rentals or other charges or income derived by the District from the operation of its gas system or systems shall first be used by the District to pay all costs of operation and maintenance of such gas system or systems, to pay the principal of and interest on revenue bonds, if any, issued by the District to finance the cost of construction, extension, expansion, improvement, or acquisition of gas systems, to establish appropriate reserves for any such revenue bonds, to establish an extension, removal, and replacement fund for such gas system or systems and to make all other proceedings authorizing any such revenue bonds, The payments to the City of Clermont, Florida, by the District as set forth in Section 3 of this Agreement are hereby construed to be a part of the operation cost and maintenance of the gas system or systems and shall be paid to the City as an expense falling in that category and liable for payment by the District as such. Section 3. The District shall pay to the City of Clermont, Florida, a sum representing six (6) per cent of the gross revenues derived from sale of gas to all customers within the corporate limits of the City of Clermont, Florida, during the year in which such payment is due, after deduction therefrom the gross revenues derived from sale of gas to interruptible gas customers wi thin the corporate 1 imi ts of said Ci ty. The phrase" gross revenues" shall be deemed to include a flat rate customer charge or a minimum bill charge, if any, made by the District regardless of the amount of gas consumed. Section 4. This agreement is and shall be a part of the franchise granted by the City to the District, referred to in the preamble hereof, as fully and to the same extent as if set forth verbatim therein. 8 8 Section 5. This agreement shall be in full force and effect from the date of granting of the said franchise by the City to the District and shall continue in full force and effect during the term of said franchise. I N WITNESS WHEREOF, the City of Clermont, Florida, a body corporate and politic of the State of Florida, has caused this agreement to be executed by its Mayor and its corporate seal to be hereunto affixed and attested by its Clerk and the LAKE APOPKA NATURAL GAS DISTRICT, a body corporate of the State of Florida, has caused this agreement to be executed by its Chairman of the Board of Directors and its corporate seal to be hereunto affixed and attested by the Secretary of said Board, all as of the 14th day of November 1989. City of Clermont, Florida LAKE APOPKA NATURAL GAS DISTRICT B~~(SEAL) Mayor BY or:k:æ~ <1 aj]£~ (SEAL) Chairman of the Board ATTES~þV yl (SEAL) ATTEST: ÓA(#(A~~-;¡{i (SEAL) Secre ary of the oard