Fv\

Item No: 5H.

Meeting Date: November 26, 2012

From: Jack Rogers, Gas Director

Subject: Ordinance amending City Code Chapter 22, Article 1, Section 22-5, pertaining to City of Leesburg electric and natural gas franchise agreements.

Staff Recommendation:

Staff recommends approval of the attached Ordinance amending City Code Chapter 22, Article 1,
Section 22-5 pertaining to City of Leesburg electric and natural gas franchises.

Analysis:

Section 22-5 of the City of Leesburg Code of Ordinance, provides that the city is the exclusive supplier of electric and natural gas utility services within the corporate limits of the city unless a franchise is granted by the city. This section has always been intended to provide for franchises to third party utility providers only in those areas annexed into the City which were being served by those third party providers prior to annexation. The amendment provides protection of the city’s utility area by more clearly specifying the intent of this section.

Options:

1. Approve the Ordinance amending City Code Chapter 22, Article 1, Section 22-5; or,

2. Such alternative action as the Commission may deem appropriate

Fiscal Impact:

This change ensures that the Electric and Gas utility receive revenue for services within the utility area.

Submission Date and Time: 11/21/2012 7:11 PM____

Department: __Gas__ Prepared by: ___Jack Rogers_____ Attachments: Yes____ No _X____ Advertised: ____Not Required _X___ Dates: __________________________ Attorney Review : Yes_X__ No ____ _________________________________ Revised 6/10/04

Reviewed by: Dept. Head _JR_____ Finance Dept. __________________ Deputy C.M. ___________________ Submitted by: City Manager ___________________

Account No. _________________ Project No. ___________________ WF No. ______________________ Budget ______________________ Available _____________________

ORDINANCE NO.

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, AMENDING §22 – 5 OF THE CODE OF ORDINANCES PERTAINING TO FRANCHISES FOR ELECTRIC OR NATURAL GAS UTILITIES, TO CLARIFY THE INTENT OF THE ORDINANCE WITH RESPECT TO THE AREAS WITHIN WHICH SUCH FRANCHISES MAY BE GRANTED AS BEING LIMITED TO THOSE AREAS ANNEXED INTO THE CITY OF LEESBURG WHICH ARE ALREADY BEING SERVED BY THE FRANCHISEES; REPEALING CONFLICTING ORDINANCES; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, §22 – 5 of the Code of Ordinances of the City of Leesburg governs the granting of franchises under which providers other than the City may serve customers within the municipal limits of the City with electrical or natural gas utilities; and

WHEREAS, §22 – 5 has always been intended to provide for franchises to third party utility providers only in those areas annexed into the City which were being served by those third party providers prior to annexation; and

WHEREAS, the City Commission has determined that it would be appropriate to amend the ordinance to make clear that it is intended only to provide for franchises to third party utility providers only in those areas annexed into the City which were being served by those third party providers prior to annexation, and not to authorize the granting of franchises within any other areas of the City;

NOW THEREFORE, BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

SECTION I.

§22 – 5 of the Code of Ordinances of the City of Leesburg, Florida, is hereby amended to read as set forth below:

SEC. 22 – 5. Franchises for Electric or Natural Gas Utilities.

(a) No person or entity may sell or provide electric utility service or natural gas utility service to any customer within the corporate limits of the city, as those corporate limits may be extended from time to time, without first obtaining a franchise from the city. Such franchises will permit the person or entity to sell or provide electric utility services or natural gas utility services, as specified more particularly in the franchise itself, within designated geographical areas of the city's corporate limits, and to designated service locations. Granting of electric and natural gas franchises will be restricted to areas already served by a provider of such utility services prior to annexation of the franchise area into the city limits. If granted, the franchise shall contain, at a minimum and at the discretion of the city, the term of the agreement, the specific type of service the franchisee is authorized to provide within the city limits, the franchise fee or other consideration that is to be paid to the city for the franchise, the geographical areas and service locations to be served, appropriate terms and conditions of service including provisions and conditions for the utilization of the city's streets, easements and rights-of-way, and appropriate health and safety regulations. However, the terms of the franchise agreement shall not be construed to limit the city's ability to require permits for the construction or maintenance of any electric or natural gas utility facilities. Any fees required by the city for such permits will be in addition to the franchise fee. The form of the franchise agreement shall be prescribed and approved by the city commission at the time the franchise is granted.

(b) Existing electric or natural gas utility facilities and infrastructure situated within the corporate limits of the City of Leesburg, Florida, may not be extended or modified without the approval of the city and not until such time as the owner or operator of any such utility facilities or infrastructure enters into a franchise agreement with the city, for the area of the proposed extension, as provided above.

(c) Occupation of the city's streets, easements and rights-of-way by providers of electric utility service or natural gas utility service may be subject to the payment of rent in addition to any payments required pursuant to a franchise agreement. The rental fee for occupying the city's streets, easements and rights-of-way shall be determined by the city commission.

SECTION II.

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

SECTION III.

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

SECTION IV.

This Ordinance shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the day of , 2012.

THE CITY OF LEESBURG, FLORIDA

BY:

SANNA HENDERSON, Mayor

Attest:

BETTY RICHARDSON, City Clerk