Fort Walton Beach Council minutes — 06-28-11 special franchise agreement — reading text

109 Final Minutes — City of Fort Walton Beach Special Meeting of the City Council of Fort Walton Beach Tuesday, June 28, 2011 5: 00 PM 107 Mlrade Strip Farkw, Fort Walton Beacb, I 32548 1 CALL TO ORDER 5: 00 PM Meeting was called to order on June 28, 2011 at Council Chamber, 107 Miracle Strip Parkway, Fort Walton Beach, FL. Attendee Name Title Status Arrived Mike Anderson Mayor Present Bobby Griggs Council Seat 1 Present Joyce gossom Council Seat 2 Present Dennis Reeves Council Seat 3 Present 5: 16 pm Trey Goodwin Council Seat 4 Present Bobby Nabors Council Seat 5 Present 5: 10 pm Bull Rigdon Council Seat 6 Present Dick Rynearson Council Seat 7 Present 2. PLEDGE OF ALLEGIANCE The Mayor led in the Pledge of Allegiance. 3. PRESENTATION The Mayor introduced Suzanne Brownless, the City's franchise attorney. The City Manager presented background on the franchise agreement the City has with Gulf Power and advised it will expire on October 13, 2011. 1. Gulf Power Franchise Agreement Suzanne Brownless, Franchise Attorney, will be at the meeting to provide an update to Council on the negotiations with Gulf Power and to request direction on said negotiations. ( Executive Assistant) Ms. Brownless informed the City's franchise agreement with Gulf Power Company was adopted as Ordinance 1324 on February 25, 1997, for a 15 -year term, and contains relevant provisions including a 15 -year term; definitions of "electric utility service' and " Grantee revenue;" the right of the City to purchase the electric utility system necessary to provide electric service to the City located within the City limits at the expiration of the franchise term; the 6% franchise fee; and the ability to renegotiate the term of the franchise, except the term and franchise limits, at any time by mutual consent. Gry r' mnm(! of Port W it on Beach Page I 110 Special Meeting Minutes June 28, 2011 GULF POWER FRANCHISE ( CONT) Ms. Brownless also reported the electric utilities in Florida are experiencing difficulties due to the economy Ms. Brownless presented her recommendations with regard to the franchise issues she previously identified. Dean Covey, 270 Brooks Street, received clarification that an agreement could be negotiated should another entity ever offer electrical services. Mr. Rynearson moved to accept the recommendations of the franchise attorney as follows: 1) Retain a 15 -year franchise term; 2) Include clear definitions in the agreement regarding what revenues are included in the base amount to which the franchise fee percentage is applied; 3) Retain the right of purchase; 4) Leave the franchise fee at 6%; and 5) Retain the unilateral right to reopen the franchise agreement in the event that there are significant regulatory changes at the state or federal levels, such as deregulation of the electric utility industry. Mr. Goodwin seconded motion and it carried unanimously with Griggs, gossom, Reeves, Goodwin, Nabors, Rigdon, and Rynearson in favor. The meeting adjourned at 5: 25 pm 4. ADJOURNMENT: 5: 25 pm Approved: U// JJ! Mayor: / ' 6z -, ' Attest 1 City Clerk City Cm""'/ gfrart Wabon Beach Page 2 Printed 612912011