Title
Natural Gas Franchise Agreement (B)
Staff recommends entering into a Natural Gas Franchise Agreement with the City of High Springs, Florida.
Explanation
Staff has determined that there is considerable interest within the City of High Springs to receive natural gas service as an alternative to propane and/or electric energy. Expansion of the natural gas system into this community would be in keeping with the long term growth strategy for the utility. Staff negotiated the terms and conditions of a Natural Gas Franchise Agreement with the City of High Springs. On May 11, 2006 the High Springs City Commission adopted Ordinance 2006-12 which grants to the City of Gainesville a non-exclusive right, privilege, and franchise for the distribution and sale of natural gas within their corporate limits. The Agreement provides for an initial term of twenty five years and a franchise fee of six percent.
Recommendations
The City Commission authorize the Interim General Manager to execute a new Natural Gas Franchise Agreement with the City of High Springs, subject to approval of the City Attorney as to form and legality.
Fiscal Note
The proposed Natural Gas Franchise Agreement may result in recurring annual revenue to the City of utility. Expansion of the natural gas system will be realized only when a cost effective customer base has been identified. Funds to expand the natural gas system are available in the FY 2006 and the proposed FY 2007 Capital budgets.
Drafter
Prepared by: David E. Beaulieu, AGM/Energy Delivery
Submitted by: Karen Johnson, Interim General Manager