SUBJECT/RECOMMENDATION:
Title
Accept Ordinance 2018-05, an Interlocal Agreement/Franchise with the City of Belleair Beach, in order for Clearwater Gas System to continue to provide natural gas service to the citizens of Belleair Beach and adopt Resolution 18-16.
Body
SUMMARY:
On September 5, 2018, the City of Belleair Beach Council approved an Interlocal Agreement with the City of Clearwater, which provides a franchise for Clearwater Gas System to provide natural gas service in Belleair Beach.
The Clearwater Gas System has provided service within the City of Belleair Beach for the past 25 years under the current franchise agreement, which is set to expire on 9/30/18.
The effective date shall be the 1st day of the following month after the Interlocal Agreement is approved by the City of Clearwater. The Agreement provides the City of Clearwater a 15-year non-exclusive right to continue to construct, operate and maintain all facilities necessary to supply natural gas to the City of Belleair Beach. The agreement also provides for renewal options, which may be extended for an additional 15 years.
The Interlocal Agreement provides for a 6% franchise fee to be paid by the consumers of natural gas within the City of Belleair Beach. The prior franchise fee was 6%.