SUBJECT/RECOMMENDATION:
Title
Accept Dunedin Ordinance 20-03, an Interlocal Agreement/Gas Franchise with the City of Dunedin, in order for Clearwater Gas System to continue to provide natural gas service to the citizens of Dunedin and adopt City of Clearwater Resolution 20-26.
Body
SUMMARY:
On May 19, 2020, the City of Dunedin Commission approved and adopted on second reading, Ordinance 20-03 which provides for an Interlocal Agreement with the City of Clearwater, setting forth the terms of a franchise for Clearwater Gas System to provide natural gas service in Dunedin.
The previous franchise with City of Dunedin was approved on May 1, 1990 and expired on April 30, 2020. Currently, CGS is operating on a month to month basis under the provisions of that franchise agreement due to unavoidable delays resulting from the COVID-19 health emergency.
The effective date of the new franchise shall be the 1st day of the month following approval of the Interlocal Agreement 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 Dunedin. The agreement also provides for a renewal option 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 Dunedin. The prior franchise fee was 5%.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A