HomeMy WebLinkAbout4205 FPL FranchiseOrdinance No. 2010 -4205
An Ordinance of the City of Sanford granting to
Florida Power & Light Company, its successors and
assigns, a nonexclusive electric franchise,
providing for monthly franchise fee payments to the
City; providing for and imposing provisions,
procedures and conditions relating thereto,
providing for indemnification, maintenance of
books and records, the right to audit by the City and
other terms and conditions relating to the franchise
and the rights and obligations relating thereto;
providing for a most favored nations covenant
protecting the City; providing for the imposition of
restrictions on the City competing by selling
electricity; providing for the authority of the City to
generate electricity to transmit between City
facilities; providing for forfeiture of the franchise;
granting to the City the option to purchase facilities
at the end of the term of the franchise,' providing
for severability, providing for conflicts, providing
for codification and providing for an effective date.
Whereas, the City Commission of the City of Sanford, Florida recognizes that the
City of Sanford and its citizens need and desire the continued benefits of electric
service; and
Whereas, the provision of such service requires substantial investments of
capital and other resources in order to construct, maintain and operate facilities
essential to the provision of such service in addition to costly administrative functions,
and the City of Sanford does not desire to undertake to provide such services; and
Whereas, Florida Power & Light Company (FPL) is a public utility which has the
demonstrated ability to supply such services; and
Whereas, the City of Sanford is vested with jurisdiction, authority and control of
This provision was deleted from the Ordinance during the course of consideration of the Ordinance by the City
Commission of the City of Sanford acting in its legislative capacity.
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certain public rights -of -way within its corporate boundaries based upon functional
classifications under the Florida Transportation Code and is responsible for
management of such public rights -of -way and balancing the competing needs for use of
its public rights -of -way with regard to, among other matters, installing, constructing,
placing, maintaining, operating and relocating, from time -to -time, over, across, under,
above and within any public right -of -way any aerial or underground electric generating
and transmission facilities, telephone transmission facilities, telegraph transmission
facilities, electronic data transmission facilities, communication services facilities, lines,
poles, pole lines, anchors and guys appurtenant thereto; water systems facilities; sewer
systems facilities; storm drainages facilities; fire suppression systems and hydrants; gas
transmission mains, lines and appurtenances thereto; pipelines; fences; gasoline tanks
and pumps; roadway lighting systems facilities and appurtenances thereto; traffic
control systems facilities; vehicular and non - vehicular traffic including, but not limited to,
motor vehicles, bicycles, pedestrians, mass transit systems and other public utility
systems; and the City of Sanford has authority and responsibility for the promulgation
and enforcement of rules and regulations regarding the administration of public rights-
of -ways for the purposes, uses and functions as stated above; and
Whereas, on October 27, 1980 the City Commission of the City of Sanford
2 Section 334.01, Florida Statute, provides that "Chapters 334 -339, 341, 348, and 349 and ss. 332.003- 332.007,
351.35, 351.36, 351.37, and 861.011 may be cited as the'Florida Transportation Code. "'
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enacted Ordinance Number 1528 resulting in a 30 -year franchise agreement between
FPL and the City; and
Whereas, FPL accepted the 1980 agreement, in writing, on November 26, 1980
and the term of that agreement, as extended, has not yet run; and
Whereas, the City Commission of the City of Sanford finds that it is in the best
public interest to grant a new Electric Utility Franchise to FPL ( "2010 Electric Utility
Franchise ") providing for the payment of fees to the City of Sanford in exchange for and
in consideration of the nonexclusive right and privilege of utilizing the City's public
rights -of -way within the City's jurisdiction and control under the Florida Transportation
Code, as hereinafter defined, for supplying electricity and services incidental to the
supplying of electricity within the City of Sanford free of competition from the City of
Sanford, pursuant to certain terms and conditions, and
Whereas, the Grantor and the Grantee, as hereinafter identified, stipulate and
agree that the franchise fee identified herein is reasonably related to the value of the
Grantor's agreement to not compete hereunder, the extent of Grantee's use of the
Grantor's public rights -of -way (as hereinafter identified); and the value of other
consideration as set forth in this 2010 Electric Utility Franchise; and
Whereas, the City Commission of the City of Sanford deems it to be in the best
interest of the City of Sanford and its citizens to adopt the 2010 Electric Utility
Franchise.
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Now, therefore, be it enacted by the People of the City of Sanford, Florida:
Section 1. Legislative findings and intent.
The City Commission of the City of Sanford hereby finds and determines that this
Ordinance is internally consistent with the goals, objectives and policies of the City of
Sanford Comprehensive Plan and other controlling law to include, but not be limited to,
Chapter 163, Florida Statutes, and the provisions of the State Comprehensive Plan as
codified at Chapter 187, Florida Statutes.
Section 2. Grant of electric utility franchise; term of franchise.
There is hereby granted to Florida Power & Light Company, its successors and
assigns, (herein called the "Grantee ") for a period of thirty (30) years from the date of
acceptance hereof by the Grantee, the nonexclusive right, privilege, or franchise to
construct, install, locate, relocate, maintain, and operate in accordance with the National
Electrical Safety Code to the extent applicable, in, under, upon, over, and across the
present and future streets, alleys, bridges, publicly dedicated rights -of -way that have
been classified as "city streets "4 under the Florida Transportation Code and publicly
dedicated utility easements, but not including easements granted to the Grantee
3 The National Electrical Safety Code (NESC) sets the ground rules for practical safeguarding of persons during the
installation, operation, or maintenance of electric supply and communication lines and associated equipment. The
NESC contains the basic provisions that are considered necessary for the safety of employees and the public under
the specified conditions. The document is published by the IEEE which is said to be the world's largest technical
professional association.
a Section 334.03(3), Florida Statutes, defines the term "city street system" to mean " ... all local roads within a
municipality, and all collector roads inside that municipality, which are not in the county road system."
5 See footnote 1.
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(hereinafter called "public rights -of -way ") in the City of Sanford, Florida, (herein called
the "Grantor ") and its successors and assigns, throughout all of the Grantor's
incorporated areas, as such incorporated areas may be constituted from time -to -time,
and subject to any applicable Federal, State and local laws, statutes, ordinances, rules
and regulations, including the Grantor's valid regulation of public rights of way with
respect to electrical construction, installation, location, relocation and maintenance, of
electric light and power facilities (including conduits, poles, wires, transmission and
distribution lines, and appurtenances incidental thereto) installed in conjunction with and
ancillary to the Grantee's electrical generating, transmission and distribution operations
and, for the Grantee's own facility -to- facility use, telephone, telegraph and
telecommunication lines and facilities) (hereinafter called the "facilities ") for the purpose
of supplying electricity to the Grantor, and its successors, and inhabitants thereof, and
persons beyond the limits thereof ( "2010 Electric Utility Franchise ").
Section 3. Condition precedent; acceptance by Grantee.
As a condition precedent to the taking effect of this grant, the Grantee shall have
filed its acceptance hereof with the Grantor's clerk within thirty (30) days of the date this
ordinance is adopted on second reading.
Section 4. Facilities requirements.
(a). The facilities of the Grantee shall be so located, relocated, installed,
constructed and so erected as to not unreasonably interfere with the convenient, safe,
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continuous use or the maintenance, improvement, extension or expansion of any public
"road" as defined under the Florida Transportation Code, nor unreasonably interfere
with reasonable egress from and ingress to abutting property.
(b). To minimize such conflicts with the standards set forth in Subsection
4(a), the location, relocation, installation, construction or erection of all facilities shall be
made as representatives of the Grantor may prescribe in accordance with all applicable
Federal, State and local statutes, laws, ordinances, rules and regulations and pursuant
to the Grantor's valid rules and regulations with respect to utilities' use of public rights-
of -way relative to the placing and maintaining, in, under, upon, along, over and across
said public rights of way, provided, such rules and regulations shall be:
(1). for a valid municipal purpose,
(2). shall not prohibit the exercise of the Grantee's right to use said public
rights -of -way for reasons other than conflict with the standards set forth above,
(3). shall not unreasonably interfere with the Grantee's ability to furnish
reasonably sufficient, adequate and efficient electric service to all its customers while
not conflicting with the standards set forth above, or
(4). shall not require relocation of any of the Grantee's facilities installed
before or after the effective date hereof in any public right -of -way unless or until the
facilities unreasonably interfere with the convenient, safe, or continuous use, or the
maintenance, improvement, extension, or expansion, of such public "road ".
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(c). Such rules and regulations shall recognize that above -grade facilities of
the Grantee installed after the effective date hereof should, unless otherwise permitted,
be installed near the outer boundaries of the public rights -of -way to the extent possible
and such installation shall be consistent with the Florida Department of Transportation's
Manual of Uniform Minimum Standards for Design, Construction and Maintenance for
Streets and Highways.
(d). When any portion of a public right -of -way is excavated, damaged or
impaired by Grantee or any of its agents, contractors or subcontractors because of the
installation, inspection, or repair of any of its facilities, the portion so excavated,
damaged or impaired shall, within a reasonable time and as early as practicable after
such excavation, be restored to its original condition before such damage by the
Grantee at its expense.
(e). In the event that the Grantor requires removal or relocation of the
Grantee's facilities because the facilities unreasonably interfere with the standards set
forth in Subsection 4(a), and the Grantee fails to remove or relocate such facilities at the
Grantee's expense within thirty (30) days after written notice from the Grantor, then the
Grantor may proceed to cause the facilities to be removed or relocated and all of the
expenses therefore shall be charged against the Grantee.
(f). The Grantor shall not be liable to the Grantee for any cost or expense
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incurred in connection with the relocation of any of the Grantee's facilities required
under this Section, except, however, that the Grantee may be entitled to reimbursement
of its costs and expenses from others and as provided by law.
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Section 5. Indemnification of the Grantor.
Acceptance of this Ordinance by the Grantee shall be deemed an agreement on
the part of the Grantee to indemnify the Grantor, its officers, agents, servants,
employees, or contractors and hold it harmless against any and all liability, loss, costs,
damages, attorneys' fees, or expense which may accrue to or be incurred by or charged
or sought against the Grantor or any of its officers, agents, servants, employees or
contractors by reason of installation, location, relocation, construction, reconstruction,
operating, maintenance or repair of the Grantee's facilities or acts or omissions of
negligence, gross negligence or intentional torts, default or misconduct of the Grantee,
its officers, directors, agents, servants, employees, contractors or subcontractors. The
indemnity hereunder includes not only the reasonable costs, expenses and attorneys'
fees incurred by the Grantor in defense of any third party's claim (prior to and during all
phases of litigation, including trial and post trial and appellate proceedings) and also
includes the reasonable costs, expenses and attorneys' fees incurred by the Grantor in
the event it must enforce the terms of this indemnity prior to and during all litigation
including trial, post trial and appellate proceedings. This indemnity shall survive
termination of this franchise.
Section 6. Rates, rules and regulations of the Grantee.
All rates and rules and regulations established by the Grantee from time -to -time
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shall at all times be reasonable, subject to and not in conflict with such rules and
regulations as may be provided by law.
Section 7. Franchise fee; calculation; payment.
(a). As a consideration for the nonexclusive right to use the Grantor's public
rights -of -way under this 2010 Electric Utility Franchise, the Grantor's agreement to not
compete with the Grantee as set forth herein, and other valuable consideration all as set
forth herein, as well as other good and valuable consideration, the receipt and
sufficiency of which is acknowledged, the Grantee shall pay to the Grantor a franchise
fee, commencing 90 days after the effective date hereof, and each month thereafter for
the remainder of the term of this franchise, an amount which when added to the amount
of all licenses, excises, fees, charges and other impositions of any kind whatsoever
(except ad valorem tax and non -ad valorem assessments on property) levied or
imposed by the Grantor against Grantee's property, business or operations during the
Grantee's monthly billing period ending sixty (60) days prior to each such payment will
equal 6.0 percent of the Grantee's billed revenues including fuel charges, less actual
write -offs from the sale of electrical energy to residential, commercial and industrial
customers (as such customers are defined by FPL's tariff) within the incorporated areas
of the Grantor ( "Retail Customers ") for the monthly billing period ending sixty (60) days
prior to each such payment, and in no event shall payment for the rights and privileges
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granted herein exceed 6.0 percent of such revenues for any monthly billing period of the
Grantee. The Grantee shall continue to receive franchise payments under the currently
existing and effective Electric Utility Franchise during the period between the effective
date of this franchise and the first payment hereunder.
(b). The Grantor understands and agrees that such revenues as described in
the preceding paragraph are limited to the precise revenues described herein, and that
such revenues do not include, by way of example and not limitation:
(1). Revenues from the sale of electrical energy for Public Street and
Highway Lighting (service for lighting public ways and areas);
(2). Revenues from Other Sales to Public Authorities (service with
eligibility restricted to governmental entities);
(3). Revenues from Sales to Railroads and Railways (service
supplied for propulsion of electric transit vehicles);
(4). Revenues from Sales for Resale (service to other utilities for
resale purposes);
(5). Franchise fees;
(6). Late Payment Charges as described in Grantee's tariff; and
(7). Field Collection Charges as described in Grantee's tariff; and
(8). Other service charges permissible under Grantee's tariff.
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Section 8. The Grantee's books and records; audit; maintenance.
The Grantor may, at its option, upon reasonable notice within one hundred eighty
(180) days to the Grantee after each anniversary date of this franchise, at the sole
expense of the Grantor, examine the books and records of the Grantee as such books
and records relate to the calculation of the franchise fee payment to the Grantor for the
preceding such anniversary date. The Grantee shall use a system of accounts and
form of materials as prescribed by applicable law or regulation. The Grantee shall
attach to each payment to the Grantor a statement of its gross revenues against which
the franchise fee is to be calculated as to all Retail Customer accounts. Acceptance of
payment by the Grantor shall not estop the Grantor from asserting that the amount paid
is not the amount due. The Grantee shall supply all accounts and records of the
Grantee that the Grantor may reasonably request or require relative to calculating the
franchise fee. Such examination of books and records of the Grantee by the Grantor
shall be made during the regular business hours of the Grantee at the general office of
the Grantee. Records not prepared by the Grantee in the ordinary course of business
may be provided at the Grantor's expense and as the Grantor and the Grantee may
agree in writing. Information identifying the Grantee's customers by name or their
electric consumption shall not be taken from the Grantee's premises. Such audit shall
be impartial and all audit findings, whether they decrease or increase payment to the
Grantor, shall be reported to the Grantee. The Grantor's right to examine the records of
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the Grantee in accordance with this Section shall not be conducted by any third party
employed by the Grantor whose fee, in whole or part, for conducting such audit is
contingent on findings of the audit. Records shall be retained by the Grantee for a
period of five (5) years. The provisions of this Section shall survive termination of this
franchise.
Section 9. Most favored nations covenant.
If during the term of this franchise the Grantee enters into a franchise agreement
with any other municipality located in Seminole County, Volusia County, Brevard
County, Orange County or Lake County, the terms of which provide for the payment of
franchise fees by the Grantee at a rate greater than 6.0% of the Grantee's revenues for
all Retail Customers, under the same terms and conditions as specified herein, then the
Grantee, upon written request of the Grantor, shall enter into a new franchise
agreement with the Grantor in which the percentage to be used in calculating monthly
payments hereunder, utilizing the same terms and conditions as set forth herein shall be
that greater rate provided for such other municipality within Seminole County, Volusia
County, Brevard County, Orange County or Lake County; provided, however, that if the
franchise with such other municipality within Seminole County, Volusia County, Brevard
County, Orange County or Lake County contains additional benefits given to Grantee in
exchange for the increased franchise rate, which such additional benefits are not
contained in this 2010 Electric Utility Franchise, such new franchise agreement shall
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include those additional benefits to the Grantee.
Section 10. Non - competition by the Grantor.
(a). As a further consideration during the term of this franchise, the Grantor
agrees not to engage in the business of distributing and /or sale, in competition with the
Grantee, of electric capacity and /or electric energy to any Retail Customer of electric
utility service or to any electrical distribution system established solely to serve any
Retail Customer formerly served by the Grantee. The Grantor further agrees not to
participate in any proceeding or contractual arrangement, the purpose or terms of which
would be to obligate the Grantee to transmit and /or distribute, electric capacity and /or
electric energy from any third party(ies) other than governmental bodies, to any other
Retail Customer's facility(ies). Nothing specified herein shall prohibit the Grantor from
engaging with other utilities or persons in wholesale transactions which are subject to
the provisions of the Federal Power ACt.
(b). Nothing herein shall prohibit the Grantor, if permitted by law:
(i) from purchasing electric capacity and /or electric energy from any other
person, or
(ii) from seeking to have the Grantee transmit and /or distribute to any facility(ies)
of the Grantor electric capacity and /or electric energy purchased by the Grantor
from any other person; provided, however, that before the Grantor elects to
6 16 United States Code §§ 791 a -797, 798 -824a, and 824b -825r.
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purchase electric capacity and /or electric energy from any other person, the
Grantor shall notify the Grantee. Such notice shall include a summary of the
specific rates, terms and conditions which have been offered by the other person
and identify the Grantor's facilities to be served under the offer. The Grantee
shall thereafter have ninety (90) days to evaluate the offer and, if the Grantee
offers rates, terms and conditions which are equal to or better than those offered
by the other person, then the Grantor shall be obligated to purchase from the
Grantee electric capacity and /or electric energy to serve the previously identified
facilities of the Grantor at the rates, terms and conditions offered by the Grantee
that are equal to or better than those offered by the other person for a term no
shorter than that offered by the other person. The Grantor shall have a period of
sixty (60) days within which to accept the rates, terms and conditions offered by
the Grantee. In the event the Grantor fails to accept such offered rates, terms
and conditions offered by the Grantee, then such offered rates, terms and
conditions shall be deemed withdrawn and of no further force and effect. If the
Grantee does not agree to offer rates, terms and conditions which are equal to or
better than the other person's offer within the ninety (90) day period specified
above, then the Grantor may purchase such electric capacity and /or electric
energy from such other person and all of the terms and conditions of this
franchise shall remain in effect.
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Section 11. Legislative or regulatory action.
If as a direct or indirect consequence of any legislative, regulatory or other
action by the United States of America or the State of Florida (or any department,
agency, authority, instrumentality or political subdivision of either of them) any person is
permitted to provide electric service within the incorporated areas of the Grantor to a
customer then being served by the Grantee, or to any new applicant for electric service
within any part of the incorporated areas of the Grantor in which the Grantee may
lawfully serve, and the Grantee reasonably determines that its obligations hereunder, or
otherwise resulting from this franchise in respect to the franchise fee, place it at a
material competitive disadvantage with respect to such other person, the Grantee may,
at any time after the taking of such action, terminate this franchise if such material
competitive disadvantage is, in the reasonable determination of Grantee, not remedied
within the time period provided hereafter. The Grantee shall give the Grantor at least
one hundred and twenty (120) days advance written notice of its intent to terminate.
Such notice shall, without prejudice to any of the rights reserved for the Grantee herein,
advise the Grantor of the consequences of such action which resulted in the material
competitive disadvantage and the objective basis or bases of the material competitive
disadvantage. The Grantor shall then have one hundred and twenty (120) days in
which to correct or otherwise remedy the material competitive disadvantage. If such
material competitive disadvantage is, in the reasonable determination of the Grantee,
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not remedied by the Grantor within said time period, the Grantee may terminate this
franchise agreement by delivering written notice to the Grantor's City Clerk and
termination shall take effect on the date of delivery of such notice. Nothing contained
herein shall be construed as constraining the Grantor's rights to legally challenge at any
time FPL's determination of material competitive disadvantage leading to termination
hereunder.
Section 12. Default by the Grantee; forfeiture.
That failure on the part of the Grantee to comply in any material respect with any
of the provisions of this ordinance, shall be grounds for a forfeiture of this grant, but no
such forfeiture shall take effect if the reasonableness or propriety thereof is protested
by the Grantee until a court of competent jurisdiction (with right of appeal in either
party) shall have found that the Grantee has failed to comply in a material 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 the Grantor at its discretion to grant such additional time to
the Grantee for compliance as necessitates in the case require.
Section 13. Default by the Grantor.
Failure on the part of the Grantor to comply in substantial respect with any of the
provisions of this Ordinance including, but not limited to:
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(i). denying the Grantee use of public rights -of -way for an improper
reason as set forth herein;
(ii). imposing conditions for use of public rights -of -way contrary to
Florida law or the terms and conditions of this franchise; or
(iii). unreasonable delay in issuing the Grantee or its agents, contractors
or subcontractor a permit to construct its facilities in public rights -of -way,
shall constitute breach of this franchise and entitle the Grantee to withhold such portion
of the payments provided for in this Ordinance as a court of competent jurisdiction
determines to be equitable, just and reasonable under all the circumstances until such
time as a permit is issued or a court of competent jurisdiction has otherwise reached a
final determination disposition of the matter. The parties recognize and agree that
nothing in this franchise agreement constitutes or shall be deemed to constitute a
waiver of their delegated sovereign right of condemnation and that each party may
exercise such right in accordance with controlling law including, but not limited to, the
doctrine of prior public use to the extent applicable.
Section 14. Competitive disadvantage; termination by the Grantee.
If the Grantor grants a right, privilege or franchise to any other person or
otherwise enables any other such person to construct, operate or maintain electric light
and power facilities within any part of the incorporated areas of the Grantor in which the
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Grantee may lawfully serve or compete on terms and conditions which the Grantee
reasonably determines are materially more favorable than the terms and conditions
contained herein, the Grantee may at any time thereafter terminate this franchise if such
terms and conditions are not remedied within the time period provided hereafter. The
Grantee shall give the Grantor at least ninety (90) days advance written notice of its
intent to terminate. Such notice shall, without prejudice to any of the rights reserved for
the Grantee herein, advise the Grantor of such terms and conditions that it considers
materially more favorable and the objective basis or bases of same. The GRANTOR
shall then have ninety (90) days in which to correct or otherwise remedy the competitive
disadvantage complained of by the Grantee. If the Grantee reasonably determines that
such terms or conditions are not remedied by the Grantor within said time period, the
Grantee may terminate this franchise agreement by delivering written notice to the
Grantor's City Clerk and termination shall be effective on the date of delivery of such
notice. Notwithstanding the provisions of this Section, the parties recognize and accept
the fact that the Grantee has granted a franchise to Progress Energy
Section 15. Person.
As used herein, the term "person" means an individual, a partnership, a
corporation, a business trust, a joint stock company, a trust, an incorporated
association, a joint venture, a governmental authority or any other entity of whatever
nature.
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Section 16. Undergrounding of facilities.
The Grantee understands and acknowledges that the Grantor's policies strongly
favor undergrounding of utilities and improvement of safety and aesthetics. The
Grantee has filed a tariff and has adopted a Mechanism for Governmental Recovery of
Undergrounding Fees (MGRUF), along with other underground conversion tariffs. The
parties agree that they will use their best efforts to provide for undergrounding in
accordance with currently applicable and successor Grantee tariffs.
Section 17. Renewable energy.
(a). The parties recognize that it is in the best interests of the City of Sanford,
its residents, businesses and inhabitants thereof to reduce and control the growth rates
of electric consumption; to reduce the growth rates of weather - sensitive peak demand;
to increase the overall efficiency and cost - effectiveness of electricity production and use
and to encourage further development of demand -side renewable energy systems. To
that end, the Grantor and the Grantee agree to use their best efforts to cooperatively
work each with the other to promote incentives for customer -owned and utility -owned
energy efficiency and demand -side renewable energy intended to offset all or part of a
customer's electricity requirements.
(b). The Grantor may, if permitted by law:
(i) generate electric capacity and /or energy at any facility owned by the
Grantor for storage or utilization at that facility or other Grantor facilities,
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operations or equipment;
(ii) use renewable energy sources to generate electric capacity and /or
energy for use in demonstration projects or at the Grantor's facilities; and
(iii) sell electric capacity and /or energy to the Grantee or other wholesale
purchaser in compliance with applicable rules and regulations controlling
such transactions.
Section 18. Smart grid technology.
The Grantee acknowledges that the Grantor's policies strongly favor the
widespread dissemination of meters featuring "smart grid technology" which utilize an
interactive monitoring network capable of providing real time electrical energy usage
information to both the Grantee and the Grantee's Retail Customers by means of an
advanced, two -way communication device. If this technology is implemented by the
Grantee, the Grantee shall utilize its best practicable efforts to timely implement the
technology to Retail Customers located in the incorporated area of the Grantor.
Section 19. Infrastructure hardening.
The Grantee understands and acknowledges that the Grantor's policies strongly
favor strengthening electric utility infrastructure. The Grantee has filed and received
Florida Public Service Commission (FPSC) approval for a plan which includes
strengthening feeders delivering power to critical infrastructure facilities, including
feeders located within the Grantor's boundaries. Subject to continued FPSC or
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regulatory approval, the Grantee will implement its infrastructure hardening plan within
the Grantor's boundaries.
Section 20. Effective date.
This Ordinance shall take effect on the date upon which the Grantee files its
acceptance, subject to the time limitation prescribed herein.
Section 21. Severability.
That if any clause, section, provision or other part of this ordinance or any portion
thereof shall be held invalid or unconstitutional by a court of competent jurisdiction, then
said holding in no way affects the validity of the remaining portions of this Ordinance.
Notwithstanding the foregoing, it is expressly provided that if any of the provisions of
this Ordinance are held invalid or unconstitutional, the parties shall attempt in good faith
to negotiate a new lawful agreement that restores the fundamental terms of the original
agreement. In the event the parties are unable to reach a new lawful agreement, the
Ordinance shall be null and void and of no force and effect consistent with the
provisions of the newly negotiated agreement.
Section 22. Implementing Administrative Actions.
The City Manager, or designee, is hereby authorized to execute any and all
documents necessary to formalize approval of the action taken herein.
Section 23. Conflicts.
All ordinances or part of ordinances in conflict with this Ordinance are hereby
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repealed.
Section 24. Codification. This Ordinance shall be codified in the City Code of
the City of Sanford.
Passed and adopted this 24 day of May, 2010.
Attest.
City Commission of the City of
Sanford, Florida
eo
anet Dougherty, Cit Clerk Linda Kuhn Mayor
For use and reliance of the
Sanford City Commission only.
Approved as to form and legality.
h m
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ACCEPTANCE OF ELECTRIC FRANCHISE
ORDINANCE NO. 2010 -4205
BY FLORIDA POWER & LIGHT COMPANY
City of Sanford, Florida June 2, 2010
Florida Power & Light Company does hereby accept the electric franchise in the
City of Sanford, Florida, granted by Ordinance No. 2010 -4205, being:
AN ORDINANCE OF THE CITY OF SANFORD GRANTING
TO FLORIDA POWER & LIGHT COMPANY, ITS
SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE
ELECTRIC FRANCHISE, PROVIDING FOR MONTHLY
FRANCHISE FEE PAYMENTS TO THE CITY; PROVIDING
FOR AND IMPOSING PROVISIONS, PROCEDURES AND
CONDITIONS RELATING THERETO, PROVIDING FOR
INDEMNIFICATION, MAINTENANCE OF BOOKS AND
RECORDS, THE RIGHT TO AUDIT BY THE CITY AND
OTHER TERMS AND CONDITIONS RELATING TO THE
FRANCHISE AND THE RIGHTS AND OBLIGATIONS
RELATING THERETO; PROVIDING FOR A MOST
FAVORED NATIONS COVENANT PROTECTING THE
CITY; PROVIDING FOR THE IMPOSITION OF
RESTRICTIONS ON THE CITY COMPETING BY SELLING
ELECTRICITY; PROVIDING FOR THE AUTHORITY OF
THE CITY TO GENERATE ELECTRICITY TO TRANSMIT
BETWEEN CITY FACILITIES; PROVIDING FOR
FORFEITURE OF THE FRANCHISE; GRANTING TO THE
CITY THE OPTION TO PURCHASE FACILITIES AT THE
END OF THE TERM OF THE FRANCHISE,' PROVIDING
FOR SEVERABILITY, PROVIDING FOR CONFLICTS,
PROVIDING FOR CODIFICATION AND PROVIDING FOR
AN EFFECTIVE DATE..
which was passed and adopted on May 24, 2010.
I This provision was deleted from the Ordinance during the course of consideration of the Ordinance by the City Commission of
the City of Sanford acting in its legislative capacity.
This instrument is filed with the City Clerk of the City of Sanford, Florida, in
accordance with the provisions of Section 20 of said Ordinance.
FLORIDA POWER & LIGHT COMPANY
1
By �11�1 rCu l(�
Pamela M. Rauch, Vice President
ATTEST:
me oppell, Assistant Secretary
I HEREBY ACKNOWLEDGE receipt of the above Acceptance of Electric
Franchise Ordinance No. 2010 -4205 by Florida Power & Light Company, and certify
that I have filed the same for record in the permanent files and records of the City of
Sanford, Florida on this. day of June, 2010.
(SEAL) y Clerk, City of Sartfbrd, Flo da
Grantee may lawfully serve or compete on terms and conditions which the Grantee
reasonably determines are materially more favorable than the terms and conditions
contained herein, the Grantee may at any time thereafter terminate this franchise if such
terms and conditions are not remedied within the time period provided hereafter. The
Grantee shall give the Grantor at least ninety (90) days advance written notice of its
intent to terminate. Such notice shall, without prejudice to any of the rights reserved for
the Grantee herein, advise the Grantor of such terms and conditions that it considers
materially more favorable and the objective basis or bases of same. The GRANTOR
shall then have ninety (90) days in which to correct or otherwise remedy the competitive
disadvantage complained of by the Grantee. If the Grantee reasonably determines that
such terms or conditions are not remedied by the Grantor within said time period, the
Grantee may terminate this franchise agreement by delivering written notice to the
Grantor's City Clerk and termination shall be effective on the date of delivery of such
notice. Notwithstanding the provisions of this Section, the parties recognize and accept
the fact that the Grantor has granted a franchise to Progress Energy
Section 15. Person.
As used herein, the term "person" means an individual, a partnership, a
cordoration, a business trust, a joint stock company, a trust, an incorporated
association, a joint venture, a governmental authority or any other entity of whatever
nature.
191Page
J W-1877- '
MAILING ADDRESS
CITY OF SANFORD
POST OFFICE BOX 1788
SANFORD, FL 32772 -1788
PHYSICAL ADDRESS
CITY HALL
300 NORTH PARK AVENUE
SANFORD, FL 32771 -1244
TELEPHONE
407.688.5010
FACSIMILE
407.688.5011
W EBSITE
WW W.SANFORDFL.GOV
CITY COMMISSION
JEFF TRIPLETT
MAYOR
MARK M
DISTRICT 1
VELMA H. WILLIAMS
DISTRICT 2
RANDYJONES
DISTRICT 3
PATTY MAHANY
DISTRICT 4
CITY MANAGER
NORTON N. BONAPARTE, JR.
OFFICE OF THE CITY CLERK
February 1, 2012
Mr. Patrick Bryan, Esq.
Florida Power & Light Company
700 Universe Blvd.
Juno Beach,FL 33408
Dear Mr. Bryan:
Please find attached a corrected page 19 to be inserted in Florida
Power & Light Company's copy of the City of Sanford (Franchise)
Ordinance No. 4205. The word "Grantee" has been corrected to
"Grantor" in the last sentence of Section 14.
This correction has been made and is being sent to the Florida
Power & Light Company per direction given to me by Lonnie N.
Groot, Assistant City Attorney for the City of .Sanford.
If you have any questions, please do not hesitate to contact me. I
can be reached at 407.688.5013 or doughed0sanfordfl.gov
Sincerely,
? 'e•
Janet R. Dougherty, CIVIC
City Clerk
Attachment
"The Friendly City"