Laserfiche WebLink
Commission <br /> SJNNY Este City of Sunny Isles Beach Norman S.Edelku p, ayor <br /> 18070 Collins Avenue Isaac Aelion,Vice Mayor <br /> n Jeanette Gatto,Commissioner <br /> i Sunny Isles Beach,Florida 33160 Jennifer Levin,Commissioner <br /> _ (305)947-0606 City Hall George"Bud"Scholl,Commissioner <br /> (305)949-3113 Fax <br /> 99' \O eP (305)947-2150 Building Department Christopher J.Russo,City Manager <br /> * F t.o a 5 (305)947-5107 Fax Hans Ottinot,City Attorney <br /> o F s u N ° Jane A.Hines,CMC,City Clerk <br /> MEMORANDUM <br /> TO: Honorable Mayor and City Commission <br /> FROM: Hans Ottinot,City Attorney <br /> DATE: September 19, 2013 <br /> RE: Ordinance granting to Peoples Gas System a new Franchise Agreement <br /> RECOMMENDATION <br /> It is recommended that the City of Sunny Isles Beach (the "City") adopt the proposed Ordinance <br /> granting Peoples Gas System a non-exclusive natural gas franchise agreement. <br /> REASONS <br /> In 1998, the City previously granted to Peoples Gas System, a non-exclusive franchise agreement for a <br /> period of fifteen (15) years to construct, operate and maintain a gas system facilities in the City. The <br /> agreement has expired and the City now wishes to enter into a renewed franchise agreement with <br /> Peoples Gas System. There are no major changes between this proposed renewed franchise <br /> agreement and the original agreement from 1998. The salient features of the renewed agreement <br /> are as follows: <br /> 1. The initial term of the renewed franchise agreement shall be for ten (10) years with an <br /> additional renewal term of ten (10)years; <br /> 2. The City is granting a non-exclusive right for Peoples Gas System to use the public rights of <br /> way of the City to construct, operate and maintain a gas distribution system; <br /> 3. Peoples Gas System agrees to keep in full force during the term of this renewed franchise <br /> agreement $5,000,000.00 (five million dollars)in insurance to protect the City's interests; <br /> 4. Peoples Gas agrees to pay to the City a franchise fee equal to six percent (6%) of its gross <br /> revenue from the sale of natural gas to customers located within the City; and <br /> 5. Peoples Gas System agrees to provide a "most favored nation/parity" clause that ensures <br /> the City will receive the same percentage basis of franchise fees used in similar franchise <br /> agreements with other municipalities in Miami-Dade, Broward or Palm Beach. <br /> Agenda Item_ <br /> Date (d-n- 13 <br />