SUBJECT/RECOMMENDATION:
Title
Accept Ordinance 2018-10, an Interlocal Agreement/Franchise with the City of Indian Rocks Beach, in order for Clearwater Gas System to continue to provide natural gas service to the citizens of Indian Rocks Beach and adopt Resolution 18-21.
Body
SUMMARY:
On November 13, 2018, the City of Indian Rocks Beach Council is set to approve an Interlocal Agreement, on second reading, with the City of Clearwater, which provides a franchise for Clearwater Gas System (CGS) to provide natural gas service in Indian Rocks Beach.
The previous franchise with the City of Indian Rocks Beach was approved on July 7, 1988 and expired on July 6, 2018. Currently, CGS is operating on a month-to-month basis under the provisions of that franchise agreement.
The effective date of the new franchise 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 Indian Rocks 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 Indian Rocks Beach. The prior franchise fee was 5%.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A