1989-42
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: 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;
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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.
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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.
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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