SUBJECT/RECOMMENDATION:
Title
Accept Ordinance 536, an Interlocal Agreement/Franchise with the Town of Belleair, in order for Clearwater Gas System to continue to provide natural gas service to the citizens of Belleair and adopt Resolution 21-33.
Body
SUMMARY:
On August 17, 2021, the Town of Belleair Commission approved an Interlocal Agreement, on second reading, with the City of Clearwater, which provides a franchise for Clearwater Gas System to provide natural gas service in Belleair.
The previous franchise with Town of Belleair was approved on June 14, 1990. The thirty-year term ended on June 13, 2020, and the Franchise is currently in effect on a month-to-month basis under the provisions of the franchise agreement (as the renewal was delayed due to the COVID-19 pandemic).
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 Town of Belleair. The agreement also provides for renewal options, which may be extended for an additional 15 years.
The Interlocal Agreement provides for a 5.5% franchise fee to be paid by the consumers of natural gas within the Town of Belleair and continues to exempt industrial customer revenues. The prior franchise fee was 5.5%.
APPROPRIATION CODE AND AMOUNT: N/A
USE OF RESERVE FUNDS: N/A