Ord G-316(14-59) O~DINANCE g-316
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
DELRAY BEACH, IN PAI2~,~ BEACH COUNTY, FLORIDA,
GRANTING TO FLORIDA PUBLIC UTILITIES CO~APANY, ITS
SUCCESSORS AND ASSIGNS, A GAS FRANCHISE AND IMPO-
SING PROVISIONS AND CONDITIONS RE~.gTING THERETO.
BE IT, AND IT IS ItEREBY ORDAINED BY THE CITY COUNCIL OF THE
CITY OF DELRAY BEACH, IN PALN BEACH COUNTY, FLORIDA:
Section 1. The City of Delray Beach, in Palm Beach County,
Florida (herein sometimes called the "Grantor") hereby grants to
Florida Public Utilities Company, a Florida Corporation, (herein
called the "Grantee"), its successors and assigns, for the term of
thirty (30) years beginning thirty (30) days after the date of the
final passage of the ordinance, the right, privilege and authority
or franchise to construct or otherwise acquire and to own, maintain,
equip and operate plants and works, and all necessary or desirable
facilities appurtenant thereto, for the purchase, transmission, dis-
tribution and sale of natural gas, which term "natural gas" shall
mean and include either natural gas unmixed as delivered to Grantee
or any mixture of such natural gas with artificial gas or with
liquefied petroleum qas or with both (herein referred to generally
as Gas), including the right without the payment by Grantee of any
tax, assessment or charges therefor to construct, lay, extend, main-
tain, renew, remove, replace, repair, use and operate gas pipes and
gas mains, and all appurtenances and appendages thereto, in, under
or on or across the present and future public streets, avenues,
alleys, highways, bridges, easements and other public place~ within
the present or any future corporate limits of the Grantor or its
successors, for the purpose of distributing, supp]ying and selling
gas to Grantor or its successors, and to persons and ccrporations
inhabitants thereof, as well as to persons cr corporations beyond
the present or future corporate limits thereof, but nothing herein
contained shall relieve Grantee from meeting all recFai.ve_me:,?ts of the
City building code and payment of any fees, licenses or ad valorem
taxes,
Section ~. Grantee's facilities shall be so located or
relocated and so erected as to interfere as little as possible with
traffic over said streets, avenues, alleys, highways, bridges, ease-
ments and other public places, and to interfere as little as possible
with reasonable egress from and ingress to abutting property.
The location or relocetion of all facilities shall be made under the
supervision and with th~= approval of such repre.~en'~e, tlves as '~.he
governing body of Grantor may designate fnr th~~, pu.rpo~e, but not so
as unreasonably to interfere with the proper operation of Grantee's
facilities and service. When any portion of a street is excavated
by Grantee in the location or relocation of any of its facilities the
portion of the street so excavated shall· within a reasonable time
and as early as practicable after such excavation, be replaced by the
Grantee at its expense and in as good condition as it was at the time
of such excavation, and~ in addition· such work shall be done only
· _f any, established
in the manner and pursuant to the regulations ~
by the Grantor from time to time.
Section 3o Subject to the provisions hereof Grantee shall
at all times during the term of this franchise, promptly and without
discrimination furnish an adequate supply of gas of standard quality
and at a reasonably uniform and adequate pressure to be maintained
on Grantee's system· to Grantor and its successors, and to persons
and corporation inhabitants thereof who request the same and who
agree to abide by Grantee's reasonable rules and regulations, and
shall acquire· construct, maintain, equip and operate all necessary
plants, works and facilities for the purchase, transmission, supply·
peak shaving· distribution and sale of gas for the benefit and con-
venience of Grantor and its inhabitants· and shall make promptly such
extensions to existing facilities as may be required by one or more
customers· or prospective customers, provided that if the revenues
to be derived from such extensions shall not afford a fair and
reasonable return on the cost of providin~ and rendering the required
service, then Grantee shall be permitted to, and is hereby authorized
to exact from such customer, or customers, such reasonable cash
ad~vances, contributions, minimum guarantees, service guarantees or
other arrangements, as will enable Grantee to earn a fair and rea-
sonable return on the cost of providing and rendering the required
service.
Section 4. Grantee's rates for gas shall at all times be
subject to such regulations as may be provided by law. Grantee shall
not be entitled to claim any value on account of this franchise in
the value of Grantee's property or rate base.
Section 5. Subject to the consumer's consent, Grantee shall
have the right to install and maintain on the premises of each of its
customers meters for measuring gas sold and delivered and shall have
the right of ingress and egress to the premises of each consumer free
of charge, from time to time, for the purpose of reading, repairing,
testing and maintaining Grantee's meters and appurtenances. Such
meters and appurtenances shall at all times remain the property of
Grantee, and shall be removable by Grantee at any time, by lawful
means ·
Se:tion 6. '~rantee shall have the right to ado?+ and enforce
reasonable rule~ ar.d r¢,gulations with respect to the extension, ini-
tiation and rendering of gas service, including rules providing for
i. he discontinuance of service to any customer on account of non-pay-
ment of bills when due, or upon failure to comply with the Gre. ntee's
other reasonable rules and regulations.
Section 7. Grantee shall indemnify and save and keep Grantor
harmless from any and all liability by reason of damage or injury to
any person or property whatsoever on account of the negligence of
Grantee in the installation, maintenance, and operation of its faci-
lities; provided Grantor shall promptly in each case notify Grantee
in writing of any claim against Grantor on account thereof, and shall
afford Grantee opportunity to defend the same.
Section 8. Within thirty (~0) days after the first anniversary
date of this grant and within thirty ($0) days after each succeeding
e. nniversary d~te during the existence of this grant, the Grantee, its
s:u,:~,essors and assigns, shall pay to the Grantor or its successors a
privilege tax equal to the amount by which five (5) percent of its
gross revenues (gross revenues being all charges made to residential
customers for gas service, less adjustments for billing and/or meter
r~ading errors, leakage, over-collections and other such reasonable
adjustments permitted against gross revenues by the Florida Railroad
& Public Utilities Commission or other such governing body), from the
sale of gas to residential customers within the corporate l_mz~s of
Grantor for the twelve calendar months preceding the applicable anni-
versary date, shall exceed the amount of any other taxes or licenses
levied or imposed by Grantor against Grantee's property, business,
revenues, privileges, or operations for the tax year preceding the
beginning of the applicable privilege tax year.
Section 8-a. The City shall have access at all reasonable
hours to all of the Grantee's plans, contracts and engineering,
accounting, finances, statistical, customer and service records re-
lating to the property and the operations of the Grantee, and to all
other records required to be kept hereunder as the same pertains to
the City of Delray Beach.
Section 9. Grantee by its acceptance hereof agrees to observe,
perform and keep all of the agreements, undertakings and conditions
hereof to be observed, performed and kept by Grantee.
Section 10-a. Failure on the part of Grantee to comply in any
substantial respect with any of the provisions of this ordinance,
shall be grounds for a forfeiture of this grant, but no such forfei-
ture shall take effect if the reasonableness or propriety thereof is
protested by Grantee until a court of competent jurisdiction (with
right of appeal in either party) shall have found that Grantee has
failed to comply in a substantial respect with any of the provisions
of this franchise, and the Grantee shall have six (6) months after the
final determination of the question, to make good the default before
a forfeiture shall result with the right in Grantor at its discretion
to grant such additional time to Grantee for compliance as necessi-
ties in the case require.
Section 10-b. In any case where there is interruption or im-
pairment of service, or failure of supply of gas or pressure, Grantee
shall promptly remedy such condition. No interruption or impairment
of service or failure of supply of gas or pressure by reason of force
majeure, strike, breakdown, accident or other cause or happening be-
yond the control of Grantee shall constitute a breach of this ordi-
nance nor subject the Grantee to liability for damages, provided that
such interruption, or impairment of service or failure of supply of
gas or pressure by reason of force majeure, strike, breakdown, acci-
dent, or other cause or happening shall be remedied Promptly.
Section ll. Notwithstanding Grantee's acceptance of this
ordinance Grantee shall be under no obligation to begin the con-
struction of its plant, works and other facilities for the purchase,
transmission, distribution and sale of gas hereunder until such time
as natural gas is available for purchase by Grantee at such point of
delivery, at such price or prices and in such quantities as Grantee
shall in its sole discretion deem satisfactory and approve. Grantee
agrees to start construction, of plant, works and facilities
within three (3) months from such date as natural gas is available
as heretofore stated, and to prosecute said installation with all
possible speed as the demand requires. Unless Grantee shall notify
Grantor in writing by December 31, 1959 that natural gas is availa-
ble to Grantee as aforesaid, the franchise hereby granted to Grantee
shall become void and terminate, and both Grantor and Grantee shall
be released from all obligations hereunder. Grantee shall have the
right to surrender this franchise and salvage all of its plant, works,
and facilities in the event natural gas shall at any time cease to
be available for distribution and sale hereunder as aforesaid.
Section 12. In consideration of Grantee's undertakings
hereunder as evidenced by its acceptance hereof, the Grantor agrees
not to engage in the business of distributing and selling gas during
the life of this franchise or any extension thereof in competition
with the Grantee, its successors and assigns.
Section 15. Grantor hereby reserves the right at and after
the expiration or termination of this grant to purchase the property
of Grantee used under this grant, as provided by the laws of Florida,
in effect at the time of Grantee's acceptance hereof, including
Section 167.~.2 of the Florida Statutes, 1941, and as a condition
precedent to the taking effect of this grant, Grantee shall give and
grant to the Grantor the right to purchase so reserved. Grantee
shall be deemed to have given and granted such right of purchase by
its acceptance hereof, which shall be filed with the Grantor's
Clerk within thirty (30) days after the final passage of this ordi-
nance.
Section 14, All of the terms, provisions and conditions
'hereof shall inure to and be binding upon the respective successors
and assigns of the Grantor and the Grantee.
Section 15. All ordinances and parts of ordinances in
conflict herewith shall be, and the same are hereby repealed as of
the effective date of this ordinance.
Section 16. This ordinance shall take effect upon its
ratification at a referendum election to be called and held in
accordance with the provisions of the Charter of the City of Delray
Beach for holding bond elections.
-S-
Section 17. Upon the annexation of any territory to the City
of Delray Beach, that portion of the facilities and operations of
the Grantee of this franchise located within the said annexed terri-
tory or upon the public streets, alleys or public spaces thereof,
shall thereafter be subject to all of the terms of this grant as
fully as though this grant and franchise were expressly extended to
such annexed territory.
Section 18. At the time any request or recommendation is
submitted to the Railroad & Public Utilities Commission for any change
in the rates charged to customers in the City of Delray Beach for
gas service the Grantee shall notify the Grantor, in writing, of
their intention to ask for such change; and shall, after submitting
such request or recommendation, notify the Grantor of all action of
the Commission upon the request or recommendation.
PASSED in regular session on the second and final reading on
this the 25th day of ...... ~[ay .... ; A. D. 1959.
. '~, ~ i ~ -
First Readin~'~IA¥ 111959
Seoona " Nmy,,,,g~5~, 19,59
Affidavit of Publication
THE DELRAY BEACH NEWS-JOURNAL
Published Weekly
Delray Beach, Palm Beach Counfy, Florida
STATE OF FLORIDA
COUNTY OF PALM BEACH
Before the undersigned authority personally
appeared ._.~. ~____~t..~ ........
who on oath says that~__is~..
.................................................. of the Delray'Beach
News-Journal, a weekly newspaper published at
Delray Beach in Palm Beach County, Florida; that
the attached ~opy of advertisement, being a
...... ___~__~__.__Y..~__o~ ......................
in the matter of ...........................................................
............... --YM--~ ...... .~:....,..:~.t.~ ...............................
in the .................................................................... Court,
was published in said newspaper in the issue (s)
o~,,-~.__..~_~,._.._a~_q_ .............................. .,
Affiant further says that the said Delray Beach
News-Journal is a newspaper published at Deb'ay
Beach, in said Palm Beach County, Florida, and
that the said newspaper has heretofore been con-
tinuously published in said Palm Beach County,
Florida, each Thursday and has been entered as
second class mail matter at the post office in
Delray Beach, in said Palm Beach County, Flor-
ida, for a period of one year next preceding the
first publication of the attached copy o~adver-
tisement; and affiant further says that___.~'r~_ ....
has neither paid nor promis~'~uy person, firm
or corporation any discoujg', rebj~te, commission
or refund for the purpo~}K of se~ring this adver-
tisement for publicati e said ,wsp r. '
Sworn to and subscribed before me this~_~'_~_.~
~,, of ...... ~~ ....................... i. D.
....
(SEAL) Not~'rY ~ubli~o~/~or,~ at tarqe
~y Comm~$s~on~Exp~res No~,. 6, 1960