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Ordinance 03-2016 FranchisesORDINANCE NO. 03-2016 AN ORDINANCE GRANTING TO FLORIDA PUBLIC UTILITIES COMPANY, ITS SUCCESSORS AND ASSIGNS, A NON-EXCLUSIVE FRANCHISE FOR A PERIOD OF 25 YEARS TO SELL, DISTRIBUTE, TRANSPORT, AND TRANSMIT NATURAL OR MIXED GAS IN THE TOWN OF PALM BEACH, FLORIDA; PRESCRIBING THE TERMS AND CONDITIONS UNDER WHICH SAID FRANCHISE MAY BE EXERCISED; MAKING FINDINGS; PROVIDING SEVERABILITY; PROVIDING AN EFFECTIVE DATE UPON FINAL PASSAGE; AND REPEALING PRIOR ORDINANCES. WHEREAS, the Town of Palm Beach, Florida owns and/or exercises control over the Town's Rights -of -Way and other Rights -of -Way (as both are defined herein); and WHEREAS, the Company (as defined herein) has requested permission from the Town to erect, construct, operate, and maintain a gas system; to import, transport, sell and distribute Gas (as defined herein) within the Town; and for these purposes to construct and install facilities and equipment, and to lay and maintain gas mains, service pipes, and any other appurtenances, as are necessary, used or useful in the sale, transportation and distribution of Gas within the Town's Rights -of -Way and other Rights -of -Way; and WHEREAS, the Town's Rights -of -Way to be used by the Company are public properties acquired and maintained by the Town at expense to the Town's taxpayers, and the right to use the Town's Rights -of -Way is a property right without which the Company would be required to invest capital and incur property acquisition costs; and WHEREAS, the Town desires to insure that the Town's Rights -of -Way and other Rights -of -Way used by the Company are used safely and properly, and when such Rights -of - Way are disturbed, to insure that they are promptly restored to a safe and secure condition to protect the health, safety, and welfare of the citizens and residents of the Town; and WHEREAS, state statutes and Town ordinances authorize the Town to grant a franchise for the purposes set forth herein; and WHEREAS, the Palm Beach Town Council finds that it is in the public interest of its citizens to enter into this Franchise Agreement (as defined herein) with the Company. NOW, THEREFORE, BE IT ENACTED BY THE TOWN COUNCIL OF THE TOWN OF PALM BEACH, FLORIDA: 1. Definitions. For the purposes of this Franchise Agreement, the following terms, phrases, words, and their derivatives shall have the meanings given herein. When not inconsistent with the context, words used in the present tense include the future and past tenses, words in the plural include the singular, and words in the singular include the plural. A. "Affiliate" means, with respect to any particular Person means any other Person controlling, controlled by or under common control with such Person. For purposes of this definition, "control" (including the terms "controlling," "controlled by" and "under common control with") means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise, and such "control" will be conclusively presumed if any Person owns 10% or more of the voting or other ownership interests, directly or indirectly, of any other Person. B. "Business Day" means a day other than a Saturday or Sunday or a day on which commercial banks located within the Town are closed. C. "Commission" shall mean the Florida Public Service Commission. D. "Company" shall mean Florida Public Utilities Company, a Florida corporation, its successors, and assigns. E. "Customer" shall mean any Person supplied with Gas service by the Company within the Town Limits. F. "Distribution System" shall mean any and all transmission pipe lines, main pipe lines, and service pipe lines, together with all necessary and desirable appurtenances, including, but not limited to, all tubes, traps, vents, vaults, manholes, meters, gauges, regulators, valves, conduits, attachments, and structures, as are used or useful in the sale, importation, distribution, transportation, and transmission of Gas within the Town Limits. G. "Effective Date" shall mean the date this Franchise Agreement becomes effective as described in Section 3 below. H. `Expenses" means court costs, including taxed and untaxed costs, and reasonable attorneys' fees, whether suit be brought or not, and includes, without limitation, expenses incurred in any appellate or bankruptcy proceeding (including reasonable legal and investigative expenses). I. "Franchise" or "Franchise Apareement" shall mean this ordinance as adopted by the Town and accepted by the Company. J. "Franchise Fee shall mean an amount equal to six percent (6.0%) of the Company's Gross Revenues. 0 K. "Gas" shall mean natural gas and/or manufactured gas and/or a mixture of natural and manufactured combustible gases that are distributed in pipes and measured by meter on the Customer's premise. It shall not mean propane gas or liquefied petroleum gas (commonly referred to as "LP gas" or "bottled gas"), nor shall it mean hydrogen gas. L. "Gross Revenues" shall mean all revenues received by the Company from any Customer other than an Interruptible Customer, excluding deposits, prepayments, turn on/off charges, meter installation charges, and any other revenue not generated directly and solely from the sale, distribution, transportation, and transmission of Gas. M. "Industrial Customer" means a Customer whose principal business activity is categorized within Standard Industrial Classification codes 12, 13, 14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, or 39. N. "Interruptible Customer" means a Customer served under the Company's Rate Schedule IS, Interruptible Service, or Rate Schedule ITS, Interruptible Transportation Service, in the event that such Rate Schedules, which are presently closed to new business, are re -opened to allow new Customers to take service thereunder. O. "Party" shall mean the Town of Palm Beach or Florida Public Utilities Company, which maybe referred to collectively herein as the "Parties" to this Franchise Agreement. P. "Person" shall mean any individual, firm, partnership, estate, corporation, company or other entity, including, but not limited to, any government entity. Q. "New Industrial Customer" means any Industrial Customer that (i) was not a Customer as of the Effective Date or (ii) was a Customer as of the Effective Date but has since relocated any of its facilities within the Town Limits. R. "Rights -of -Way" shall mean the Town's Rights -of -Way and all other publicly -owned rights-of-way, private roads, and easements, including utility easements, that are (i) publicly held or dedicated for public use, including for use in providing utility services, or (ii) presently opened or to be opened to public use for motor vehicular, bicycle, or pedestrian movement, or both (i) and (ii) above. S. "Town" shall mean the Town of Palm Beach, Florida, a municipal corporation organized and existing under the laws of the State of Florida. T. "Town Clerk" means the Person appointed, hired or otherwise designated or charged by the Town to accept, organize, maintain and/or keep records of the Town. U. "Town Engineer" means the Person appointed, hired or otherwise designated or charged by the Town to perform professional and technical engineering duties for the Town which may include, by example, performing supervisory and administrative duties in planning and coordinating the operation of engineering services on behalf of the Town. V. "Town Limits" shall mean the incorporated limits of the Town, including any such territory as may be hereafter added or annexed to, or consolidated with, the Town. W. "Town Manager" means the Person appointed, hired or otherwise designated or charged by the Town to implement municipal policy and/or otherwise serve as the administrator for the Town in connection with day- to-day functions, including, in the absence of the Town Manager, the Acting Town Manager. X. "Town's Own Use" means the consumption of Gas by the Town in the operation of its governmental facilities. Y. "Town's Rights-of-Wav" shall mean all rights-of-way, streets, alleys, highways, waterways, bridges, sidewalks, easements and other ways or places: (i) in or with respect to which the Town has the legal right to grant the Company a franchise to use such spaces for the purpose of conducting its business in the Town; (ii) that are publicly held or dedicated for public use; and (iii) that are presently opened or to be opened to public use for vehicular or pedestrian movement; provided, that the "Town's Rights -of - Way" shall include the space at the surface of and below the right-of-way places located within the Town Limits. 2. Grant of Authority. The Town hereby grants to the Company the non-exclusive ................................. . right, privilege, and franchise to erect, construct, operate, and maintain in, on or under any of the Town's Rights -of -Way, as they now exist or may be hereafter constructed, opened, laid out or extended within the Town Limits, a Distribution System. This Franchise Agreement shall not be interpreted or construed to allow for the installation of any above -ground facilities in, on, or under any Town property or in any location or manner where such installation would unreasonably interfere or create a hazardous condition with respect to motor vehicular, bicycle, or pedestrian traffic or movement. In the event that the Town closes, vacates or otherwise abandons any of the Town's Rights -of -Way, the Town shall provide to the Company an easement for the Distribution System already located in such rights-of-way in such form and content as is reasonably acceptable to the Company. 3. Term. This Franchise Agreement shall take effect and be in force from and after the first day of the month following the date upon which the Company files its acceptance of this Franchise Agreement with the Town Clerk (the "Effective Date"). Except as provided in Section 4 herein, the Franchise hereby granted by the Town to the Company shall be twenty-five (25) years from the Effective Date (the "Initial 11 Term"). Upon expiration of the Initial Term, this Franchise Agreement shall continue on the same terms then in effect at the expiration of the Initial Term on a month-to- month basis, and the Company expressly agrees that the Franchise Fee provided for herein constitutes fair and just compensation to the Town in return for the Town's maintaining the Town's Rights -of -Way and malting the Town's Rights -of -Way available to the Company for the Company's use in selling Gas to Customers free of competition by the Town. 4. Termination. A. In the event that the Company commits, at any time, a material breach of any of the material covenants, terms, and conditions of this Franchise Agreement, the Town may terminate this Franchise Agreement, provided that the Town shall first have served the Company with a written notice pursuant to Section 22 herein, setting forth in reasonable detail all matters pertinent to such material violation or default, and the Company shall have failed, within sixty (60) days after service of such notice or within such longer period of time as may be reasonably necessary, to either cure such violation or default, or to present a plan to the Town to effect such cure pursuant to such plan within a reasonable period of time after the Town's approval of the plan. Approval of the plan by the Town shall not be unreasonably withheld, conditioned or delayed. B. In the event that the Town commits, at any time, a material breach of any of the material covenants, terms, and conditions of this Franchise Agreement, the Company may terminate this Franchise Agreement, provided that the Company shall first have served the Town with a written notice pursuant to Section 22 herein, setting forth in reasonable detail all matters pertinent to such material violation or default, and the Town shall have failed, within sixty (60) days after service of such notice or within such longer period of time as may be reasonably necessary, to either cure such violation or default or to present a plan to the Company to effect such cure pursuant to such plan within a reasonable period of time after the Company's approval of the plan. Approval of the plan by the Company shall not be unreasonably withheld, conditioned or delayed. C. Either Party, in its sole discretion, may terminate this Franchise Agreement without cause at any time after the expiration of the Initial Term. D. At such time as this Agreement is terminated and the Company ceases the sale and transporting of Gas to Customers, the Company's obligations to pay the Franchise Fee shall terminate. (This Section 4(D) shall not be applicable in the event of the expiration of the Initial Term and the continuation of this Franchise Agreement on a month-to-month basis pursuant to Section 3 above.) 5. Non-exclusive Franchise. The right to use and occupy the Town's Rights -of -Way for the purposes set forth herein shall not be exclusive, and the Town reserves the right to grant a similar use of the Town's Rights -of -Way to any Person at any time during the period of this Franchise, so long as such grant shall not interfere with the Company's rights granted hereunder. This Franchise shall grant the privilege of carrying on the Company's business in all of the Town or in part of the Town, with no promise that there will be no competition by entities other than the Town, which expressly agrees not to compete against Company during the term of this Franchise pursuant to Section 6 herein. In the event the Town grants a franchise to a competitor of the Company, the grant shall not interfere with the Company's rights granted hereunder, including physical location of improvements, except as to matters that occur as a result of competition. 6. Competition. As further consideration for this Franchise Agreement the Town hereby agrees that during the term of this Franchise it shall not engage in the business of selling, importing, distributing, transporting, delivering, or transmitting Gas to any Person located within the Town Limits, and that it shall not otherwise compete with the Company within the Town Limits; provided, however, that neither this provision nor any other provision of this Franchise Agreement shall be construed to prohibit the Town's legal ability to generate or produce its own Gas for the Town's Own Use, and the Town's generation or production of Gas for the Town's Own Use shall not be construed to be in competition with the Company. 7. Assignment. Except as set forth below, this Franchise hereby granted shall not be sold, leased, assigned or otherwise alienated or disposed of (any such event a "Transfer") except with the prior written consent (the "Consent") of the Town Council, which shall not be unreasonably withheld or conditioned or unduly delayed. In the event that the Town neither grants nor denies the Consent within seventy-five (75) days after the Company's written request for Consent delivered pursuant to Section 22 below, then the Consent shall be deemed to have been granted by the Town to the Company. No Transfer shall be effective until the Person to whom the Franchise is Transferred files a duly executed instrument reciting the fact of the Transfer, accepting the terms of the Franchise, and agreeing to perform all the conditions thereof, in the office of the Town Clerk, whereupon the transferor shall be released of any further obligations under this Franchise Agreement without the necessity of any further action by any Person. Notwithstanding the foregoing, the Company may in its sole and absolute discretion, without any requirement to obtain the Consent, Transfer this Franchise (i) to an Affiliate to which, and in connection with which, the assets comprising the Distribution System are transferred or conveyed, or (ii) in connection with (A) the sale of all or substantially all of the Company's assets or of the business unit of which this Franchise is a part; (B) the merger of the Company with or into any other Person or other transfer by operation of law; or (iii) the pledge or mortgage of this Franchise and the assets comprising the Distribution System for the purpose of securing payment of monies borrowed by the Company. g. Compliance with Applicable Laws. M A. Subject to Section 10 below, the Company shall abide by all reasonable rules, regulations, and ordinances which the Town has passed or might pass in the future, including, without limitation, the most current edition of the Town's "Standards Applicable to Public Rights -of -Way and Easements Within the Town of Palm Beach," promulgated by the Town's Department of Public Works, Engineering Division, and commonly referred to as the "Town's Right -of -Way Manual" (the "Manual" and all such reasonable rules, regulations, and ordinances being referred to as the "Town's Legal Reauirements"). As of the date of this Franchise Agreement, the current version of the Manual is dated May 1994 as Revised through December 26, 2012. The Company shall also comply with the rules and regulations promulgated by the Commission applicable to the safety of the Company's system and facilities, and with any rules and regulations promulgated by the Florida Department of Transportation or the U.S. Department of Transportation, provided that, in the event of any conflict between the Town's Legal Requirements and those of the Commission or any other agency, then, unless the Town's Legal Requirements are expressly preempted by such other agency's rules or regulations, the Town's Legal Requirements shall control. B. For purposes of Section 8(A) above, this Franchise shall be construed and applied such that, with respect to any item of work, project or other matter for which the Town has issued a permit (to whomever issued if the Company is to perform or otherwise assist in connection with the same, each a "Permitted Proiect"), the Company shall be entitled to proceed with such Permitted Project based on the Town's Legal Requirements, including the version of the Manual, that were in effect on the date upon which the permit related to the Permitted Project was issued. C. All changes to the Town's Legal Requirements shall apply prospectively and in no event shall the Company be obligated to remediate or otherwise take any action with respect to any portion of the Distribution System or Permitted Project that no longer complies with the Town's Legal Requirements due to a subsequent change in the Town's Legal Requirements, provided, however, that if the Town makes a determination at a public hearing duly noticed that the application of the subsequent change in the Town's Legal Requirements to the previously existing Distribution System is necessary to protect the health or safety, or both the health and the safety, of persons, then such changes in the Town's Legal Requirements shall be applicable to the previously existing Distribution System, provided further that the Company shall have such time to comply with such changed Town's Legal Requirements as is reasonable and appropriate considering all circumstances, including the cost of compliance and the potential risk of harm to the health or safety of persons. 9. Deregulation. 7 A. In the event the Company or any aspect of the Gas trade, as contemplated hereunder, is deregulated, the Company shall maintain and operate its Distribution System and render efficient service in accordance with such rules and regulations as are, or may be, promulgated by the Town. B. In the event the Town has not promulgated rules and regulations at the time of deregulation, then, the Company shall maintain and operate its Distribution System in compliance with the rules and regulations by which they were governed prior to deregulation until such time as the Town has had an opportunity to promulgate rules and regulations or pass an ordinance governing those items regulated by the Commission, governing service standards, safety standards, and quality controls. In all cases and events, the Company shall maintain and operate its Distribution System in accord with good utility practices, good engineering practices, and with due care for the public health, safety, and welfare. 10. Changes to Current Town Requirements: Deregulation Ordinances. A. In no event shall the Company be required to abide by or be subject to any changes, amendments, or modifications to the Town's Legal Requirements, or to any new rules, regulations, ordinances, standards, future exercises of the Town's police power or other Town actions, including, without limitation, any rules, regulations, or ordinances related to deregulation of any aspect of the Gas trade, to the extent that any such changes, amendments, modifications, or new requirements: i. are preempted by Florida law or by any rules, regulations, or other requirements of the Commission, the Florida Department of Transportation, or the U.S. Department of Transportation; or ii. will have a disproportionate or discriminatory effect on the Company as compared to other Persons utilizing or accessing the Rights -of -Way or are not likely to be applied (or are not in fact applied) uniformly among all Persons utilizing or accessing the Rights -of -Way. B. Notwithstanding anything to the contrary contained in this Franchise Agreement, the Company shall be entitled to proceed with any Permitted Project on the basis of the Town's Legal Requirements in effect on the date upon which the permit was issued. C. The Town will provide to the Company a copy of each new edition of the Manual promptly after any such new edition is approved by the Town Council for implementation. 11. Distribution Svstem. The Distribution System shall be erected, placed, laid, and maintained in a manner consistent with the following; provided, however, with respect to Permitted Projects, the Company's obligation to comply with the Town's Legal Requirements shall be as in effect as of the date of issuance of the applicable permit): A. The Town, through its Town Manager, Town Engineer, or other designee, shall have the authority, but shall not be required, to supervise all construction, location, restoration, relocation and installation work. B. The Company shall install and maintain its Distribution System in a manner that provides reasonable egress from and ingress to abutting property. C. While allowing the functioning of the Distribution System, the Distribution System shall be located in the Rights -of -Way, including the Town's Rights -of -Way, in compliance with the Manual and in a manner that will not unreasonably obstruct, disturb, interfere, or create a hazardous condition, on a permanent basis, with any motor vehicular, bicycle, or pedestrian traffic, water flow, water pipes, sewers, drains, catch basins, pavement, sidewalk, driveways, or any other structures installed or, any other function of said structures of the delivery of municipal services by the Town. Any temporary obstructions, disturbances, or interference with any of the foregoing shall only be allowed in compliance with the Manual and shall, to the extent practicable and commercially reasonable, be limited in reasonable degree and extent, and for a reasonable amount of time, necessary to accomplish the Company's work that necessitated such obstructions, disturbances, or interference. D. In the event that drains, sewers, catch basins, water pipes, pavements or other like improvements, or the function of said improvements are materially damaged by erecting, placing, laying or maintaining the Distribution System, the Company shall repair the damage at its sole cost and expense to a condition that is better than or substantially equal to that which existed prior to said damage. In this regard, the Town shall give written notice to the Company pursuant to Section 22 herein, of deficiencies that need to be cured by the Company. Said notice shall set forth a reasonable period of time, under the circumstances, in which the Company shall effect such repair. E. Notice of construction, location, restoration or relocation of the Distribution System shall be given to the Town Engineer or his designee in compliance with the Manual, and the Town will process the Company's notice or request for authorization to conduct such work as provided for in the Manual, and as expeditiously as is reasonably practicable under the circumstances. As soon as practicable, but no more than fifteen (15) Business Days after completion of the work, the Company shall submit as - built drawings in such form and format as may be reasonably required by the Town to the Town Engineer or his designee, following which submission the Town shall, pursuant to the Manual, review and either I approve such work or provide notice to the Company of any defects or violations requiring correction, after which the Company shall make such corrections consistent with the provisions of the Manual. F. In the event that, at any time during the period of this Franchise the Town shall lawfully elect to alter, or change the grade of the Town's Rights -of - Way, the Company, upon reasonable written notice from the Town, shall remove, relay, and relocate any portion of the Distribution System as is necessary at the Company's own cost and expense. 12. Right to Inspect. During the term of this Franchise Agreement, the Town, through its designated agent, shall have the authority to inspect the Distribution System at a reasonable time and upon reasonable prior notice to insure compliance with governing law and the Commission's regulations at the Town's own cost and expense. 13. Franchise Fee. The Company shall pay the Franchise Fee to the Town quarterly on January 1, April 1, July 1, and October 1 of each year during the term of this Franchise unless otherwise agreed. In the event that the Franchise Fee is more than thirty (30) days delinquent, the delinquent amount shall accrue interest at the highest rate allowable by law. In the event the Company makes any Franchise Fee payment in excess of the Franchise Fee due and owing to the Town under this Franchise Agreement or if the Town is otherwise indebted to the Company, the Company shall have the right to offset such overpayment and/or indebtedness against future payments of the Franchise Fee. Notwithstanding anything to the contrary contained in this Franchise Agreement, in no event shall Company have any obligation to collect from any New Industrial Customer and remit to the Town any Franchise Fee in connection with any Gas provided to such New Industrial Customer if such New Industrial Customer states to the Company in a writing signed by a corporate officer having the authority to render such a statement, that such New Industrial Customer will not become a Customer or continue to be a Customer at its facility that has been relocated within the Town Limits if the Franchise Fee is imposed on Gas provided to it by the Company. 14. Other Fees and Taxes. Except as otherwise provided for herein, the Company shall pay to the Town all legally authorized fees, taxes, assessments, and costs levied, imposed or validly adopted by the Town during the term of this Franchise Agreement, which shall include, but are not limited to public service taxes, ad valorem taxes (intangible, personal, and real), other ad valorem and non -ad valorem assessments on any property, occupational taxes, licensing fees, permitting fees, development review fees, and inspection fees. 15. Franchise Parity. A. If, during the term of this Franchise Agreement, the Town, by franchise agreement, ordinance or otherwise, allows other Persons who sell, import, distribute, transport, and transmit Gas (the "Alternate Gas Providers") the 10 right, privilege or franchise to erect, construct, operate, and maintain in, on or under any of the Town's Rights -of -Way, as they now exist or may be hereafter constructed, opened, laid out or extended within the Town Limits, a Distribution System for the purpose of supplying or delivering Gas to Persons located within the Town Limits or receiving such Gas from a Person other than the Company within the Town Limits, and imposes a franchise fee, rate or either of their equivalent on such Alternate Gas Provider(s) for any Gas customer or class of customer within the Town Limits that is less than that imposed with respect to the same Customer or class of Customers under this Franchise Agreement, the Franchise Fee percentage rate under this Franchise Agreement shall be automatically reduced so that the Franchise Fee percentage rate to be paid by any such affected Customers is no greater than the fee or rate imposed on the Alternate Gas Provider(s) with respect to such Customers. In the event that the Town does not impose a franchise fee, rate, or their equivalent, or any similar charge, on said Alternate Gas Providers, the Company's obligation to pay the Franchise Fee under this Franchise Agreement with respect to Gross Revenues derived from the provision of service by the Company to the comparable class of customers served by such Alternative Gas Provider thereafter shall be extinguished. This section shall not apply to the Town, to the extent that the Town generates or produces its own Gas for the Town's Own Use, and in such capacity, the Town shall not be an Alternate Gas Provider. B. If, during the term of this Franchise Agreement, the Company enters into a franchise agreement for the provision of Gas with any other municipality located in Florida, the terms of which provide for the payment of franchise fees by the Company on a percentage basis at a percentage rate greater than six percent (6.0%), the Franchise Fee percentage rate due and payable pursuant to this Franchise Agreement shall be automatically increased to the same percentage rate that the Company has agreed to pay to the other municipality. 16. Reciprocal Indemnification. A. The Company shall indemnify and save the Town, its servants, agents, employees, licensees, contractors and invitees, harmless from and against any and all liability, actions, demands, claims, damages, losses and Expenses, which may be brought against or suffered, sustained, paid or incurred by the Town, its servants, agents, employees, contractors, licensees and invitees, arising from, or otherwise caused by: i. any breach by the Company of any of the provisions of this Franchise Agreement; or 11 ii. the negligence or willful misconduct of the Company, or any of its servants, agents, employees, licensees, contractors or invitees in carrying on its business within the Town Limits. B. Subject to the provisions and limitations set forth in Section 768.28, Florida Statutes (2013) or any successor statute, the Town shall indemnify and save the Company, its servants, agents, employees, licensees, contractors and invitees, harmless from and against any and all liability, actions, demands, claims, damages, losses and Expenses, which may be brought against or suffered, sustained, paid or incurred by the Company, its servants, agents, employees, contractors, licensees and invitees, arising from, or otherwise caused by: i. any breach by the Town of any of the provisions of this Franchise Agreement; or ii. the negligence or willful misconduct of the Town, or any of its servants, agents, employees, licensees, contractors or invitees, in carrying on the business of the Town. C. Notwithstanding anything to the contrary herein contained, in no event shall the Town or the Company be liable under this Franchise Agreement, in any way, for any reason, for any indirect, special or consequential damages (including damages for pure economic loss, loss of profits, loss of earnings or loss of contract), howsoever caused or contributed to. D. Indemnification is conditioned upon the indemnified Party providing written notice to the indemnifying Party pursuant to Section 22 herein, within thirty (30) days after the indemnified Party knew or should have known of the claim. E. Nothing herein is intended to act as, nor may any provision of this Franchise Agreement be construed to create or imply in any way, a waiver of the Town's rights, privileges, and immunities under the doctrine of sovereign immunity and/or limits of liability set forth in Section 768:28 of the Florida Statutes (2013) or any successor statute. F. The provisions of this Section 16 shall survive this Franchise Agreement for the shorter of (i) five (5) years or (ii) the period of the statute of limitations applicable to any claim against which the Company indemnifies the Town pursuant to this Franchise Agreement. 17. Insurance. The Company shall carry in full force and effect during the entire term of this Agreement, and any extension period thereof, the following insurance coverages: A. Comprehensive General Liability Insurance, including products, contractual, and hazard, with a minimum combined single limit of Ten Million Dollars ($10,000,000.00). Current insurance certificates shall be 12 submitted to the Town by the Company, and each insurance policy shall name the Town as an additional named insured. B. Workers Compensation Insurance. Current insurance certificates shall be submitted to the Town by the Company, and each insurance policy shall name the Town as an additional named insured. C. Comprehensive Automobile Liability Insurance as required under the Florida Statutes for the benefit of the employees of the Company. Additionally, with respect to all automobile liability insurance policies, current insurance certificates shall be submitted to the Town by the Company, and each such insurance policy shall name the Town as an additional named insured. 18. Records. The Company shall maintain accounts and records in a manner consistent with Section 368.108 of the Florida Statutes and Chapter 25-7 of the Florida Administrative Code, and in a manner that permits the Company's Gross Revenues within the Town Limits to be calculated promptly and accurately. During the term of this Franchise Agreement, and for a period of six (6) months thereafter, the Town may, upon not less than 30 days' written notice to the Company, but not more than once in any calendar year, examine, audit, and make photocopies of, the Company's books of account and other business records solely as they relate to the Company's Gross Revenues within the Town Limits. Such examination of books of account shall be at the Town's sole expense; provided, however, in the event any such audit reveals an error or series of errors that in the aggregate for the period so audited (which period shall not be less than one year) that the Company has underpaid the Franchise Fees due to the Town in an amount in excess of five percent (5%), then the Company will reimburse the Town for its reasonable out-of-pocket costs of conducting the audit. Further, in the event that an audit finds that there are systemic defects or deficiencies in the Company's accounting processes, Company agrees to take commercially reasonable actions to correct such processes as soon as reasonably practicable to the extent necessary to avoid any such defects or deficiencies on a going -forward basis. To the extent consistent with Florida law, and upon the Company's request, such examination, audit, and photocopies of such books and records shall be subject to the Town's execution and delivery of a confidentiality agreement. 19. Governiniz Law. Venue; TURF TRIAL WAIVER. This Franchise Agreement is made pursuant to and shall be governed by and construed in accordance with the laws of the State of Florida, without regard to the conflict of laws principles thereof. The Parties hereby irrevocably submit to the exclusive jurisdiction of the courts in the State of Florida (state or federal), with venue in the county in which the Town is located, over any dispute arising out of this Franchise Agreement, and the Parties agree that all claims in respect of such dispute or proceeding shall be heard and determined in such courts. The Parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection that they may have to the venue of such dispute brought in such court or any defense of inconvenient forum for the 13 maintenance of such dispute. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AFTER CAREFUL CONSIDERATION AND AN OPPORTUNITY TO SEEK LEGAL ADVICE, WAIVE THEIR RIGHT TO HAVE A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF OR IN ANY WAY CONNECTED WITH ANY OF THE PROVISIONS OF OR MATTERS RELATED TO THIS FRANCHISE. 20. Entire ALyreement. This Franchise Agreement, and the schedules and exhibits hereto, contain the entire understanding and agreement of the Parties relating to the subject matter of this Franchise Agreement, and the written terms of this Franchise Agreement supersede all prior and contemporaneous representations, discussions, negotiations, understandings, and agreements relating to the subject matter of this Franchise Agreement that are not contained herein. 21. Attorney's Fees and Expenses. In the event either Party initiates action to enforce its rights hereunder, the substantially prevailing Party shall recover from the substantially non -prevailing Party its reasonable Expenses. All such Expenses shall bear interest at the highest rate allowable under the laws of the State of Florida from the date the substantially prevailing Party pays such Expenses until the date the substantially non -prevailing Party repays such Expenses. Expenses incurred in enforcing this Section shall be covered by this Section. For this purpose, the court is requested by the Parties to award actual costs and attorneys' fees incurred by the substantially prevailing Party, it being the intention of the Parties that the substantially prevailing Party be completely reimbursed for all such costs and fees. The Parties request that inquiry by the court as to the fees and costs shall be limited to a review of whether the fees charged and hourly rates for such fees are reasonable for the services provided and consistent with the usual and customary fees and costs charged by competent attorneys for similar services. 22. Notices. All notices and other communications under this Franchise shall be in writing and shall be deemed given when (a) delivered personally to the receiving Party, (b) sent by facsimile transmission (with electronic confirmation) to the receiving Party at the facsimile number for that Party set forth below, (c) on the fifth (5th) Business Day after being mailed by certified mail (postage prepaid and return receipt requested) to that Party at the address for that Party set forth below, or (d) on the day delivered by Federal Express or any similar express delivery service for delivery to that Party at that address, as such delivery date is confirmed by the written records of such express delivery service. All notices shall be addressed as follows: If to Company: Florida Public Utilities Company 780 Amelia Island Parkway Fernandina Beach, FL 32034 Attention: Director, Natural Gas Operations Facsimile: with a copy to: Florida Public Utilities Company 14 780 Amelia Island Parkway Fernandina Beach, FL 32034 Attn: Director of Regulatory Affairs Facsimile: (561) 366-1525 with a copy to: Balser & Hostetler LLP 200 S. Orange Avenue, Suite 2300 Orlando, Florida 32801 Attention: Jeffrey E. Decker Facsimile: (407) 841-0168 If to Town: Town of Palm Beach 360 South County Road Palm Beach, FL 33480 Attention: Town Manager Facsimile: (561) 838-5411 with a copy to: Jones, Foster, Johnston & Stubbs, P.A. 505 South Flagler Drive, Suite 1100 West Palm Beach, FL 33402 Attention: John C. Randolph, Esquire Facsimile: (561) 650-0465 Any Party may change its facsimile number or address for notices under this Franchise at any time by giving the other Party notice of such change delivered in conformity with this Section 22. 23. Force Maieure. Any prevention, delay or stoppage of work or other obligations to be performed by either Party that are due to strikes, labor disputes, inability to obtain labor, materials, equipment or reasonable substitutes, acts of nature, acts of God, governmental restrictions, regulations or controls, judicial orders, enemy or hostile government actions, civil commotion, fire or other casualty or other causes beyond the reasonable control of the Party shall excuse performance and other obligations by the Party for a period equal to the duration of that prevention, delay or stoppage. In no event shall any material default by Company due to any of the foregoing constitute grounds for termination of this Franchise. In no event shall economic hardship experienced by either Party constitute a force majeure event under this Franchise Agreement. No Force Majeure event shall excuse a Party's obligation to pay money pursuant to this Franchise Agreement. If either Party shall be prevented by a force majeure event from performing any of its obligations other than to pay money pursuant to this Franchise Agreement, then the Party unable to perform shall: (a) promptly notify the other Party in writing of the act, event, or condition that such Party asserts constitutes a force majeure event; (b) specify the basis for its claim; (c) undertake all commercially reasonable actions to mitigate and eliminate the adverse effects of the claimed force majeure event; (d) describe the actions that the Party is taking to overcome and eliminate the adverse effects of such force majeure event; and 15 (e) keep the other Party informed of its progress in restoring its ability to perform its obligations under this Franchise Agreement. The Party asserting its inability to perform due to a force majeure event shall have as much time as is reasonably sufficient, under the circumstances, to restore its ability to perform. 24. Non -waiver. The failure of any Party to insist in any one or more instances upon the strict performance of any one or more of the terms or provisions of this Franchise Agreement shall not be construed as a waiver or relinquishment for the future of any such term or provision, and the same shall continue in full force and effect. No waiver or relinquishment shall be deemed to have been made by either Party unless said waiver or relinquishment is in writing and signed by both Parties. 25. Severabilitv. If any provision of this Franchise Agreement or application to any Party or circumstances shall be determined by any court of competent jurisdiction to be invalid or unenforceable to any extent, the remainder of this Franchise Agreement or the application of such provision to such Party or circumstances, other than as to which it is so determined invalid or unenforceable, shall not be affected thereby, and each provision shall be valid and shall be enforced to the fullest extent permitted by law. In the event that any material provision of this ordinance is thus declared to be invalid, the Town and the Company will negotiate in good faith to amend this Agreement so as to restore, to the maximum extent legally permissible, the original economic bargain embodied in this ordinance. 26. Scrivener's Errors. Sections of this Franchise Agreement may be renumbered or re - lettered, and the correction of typographical and/or scrivener's errors which do not affect the intent may be authorized by the Town Manager or his designee, without need for a public hearing, by filing a corrected or recodifred copy of same with the Town Clerk. 27. Ordinances Revealed. All provisions of the Town's ordinances in conflict with the provisions of this Franchise Agreement are not applicable to the Company or to this Franchise Agreement as of the Effective Date. PASSED AND ADOPTED in a regular, adjourned session of the Town Council of the Town of Palm Beach on first reading this 9th day of February, 2016, and for second and final reading on this 8th day of March, 2016. aA X '�� Gai o iglio, Mayo r ATTEST: san A. Owens,own Clerk Michael . Pucillo, Council President 12-Ij Richard M. Kle 1411 Council President Pro Tem Bobbie Lindsay, Town Coury41 Mem Danielle H. Moore, Town Council Member 2Margar A. Zeidm, Town Council Member 17 UNCONDITIONAL ACCEPTANCE BY THE COMPANY I, the undersigned official of Florida Public Utilities Company, am authorized to bind the Company and to unconditionally accept the terms and conditions of the foregoi g Franchise (Ordinance No. P3-Loi6 P3-Lotwhich are hereby accepted by the Company this day of � �A " V-, , 2016. Floridai} blic Utilities Company By: Name: Title: Subscribed and sworn to before me this day of 14a'a . , 20�,. Notary Public in and for the State of Florida My commission expires 36aoAiovuy J" Cd-totSl / '4' 'Y "`"'-5&"L Received on behalf of the Town of Palm Beach this Name: ��ja PeY� �(jY�-1 in����Z Title: 18 day of M a rel) , 20 kn. e-,Pu4-u —Town 0,1 e, KA,