HomeMy WebLinkAboutM-91-0716CITY OF MIAMI, FLORIDA :1 0
INTER -OFFICE MEMORANDUM
�O Honorable Mayor and Members
of the City Commission
ROB' d4
Cesar H. Odio
City Manager
DATE FILE
E►= S2 5 19 91
SUBJECT
REFERENCES
ENCLOSURES
Commission Agenda
It is recommended that the attached ordinance granting to Peoples
Gas System, Inc., its successors and assigns a gas franchise;
imposing provisions and conditions relating thereto; containing a
repealer provision, severability clause, and an effective date,
be approved.
Ordinance 6917 of September, 1961 granted to Florida Gas
Utilities Companies a gas franchise for thirty years, which was
later assigned to Peoples Gas System by Ordinance 8954 of June
1979.
It is recommended that a new gas franchise agreement be granted
to Peoples Gas System, Inc., for an original period of 15 years
with a renewal option for one 15-year period.
The new franchise fee of 6%, compared with 3% for the old
agreement, is expected to produce approximately $700,000 in
annual revenues to the City. In addition, the City would have
the right to increase the franchise fee if Peoples Gas were to
agree to pay more than a 6% franchise fee to any local government
with a population in excess of 50,000.
Other benefits to the City provided by this new agreement are:
New agreement is non-exclusive.
New main pipe lines will be laid at least 4 feet, and
lateral pipe lines not less than 3 feet, below street grade.
Previous requirements were 2 feet and 18 inches for main and
lateral pipes, respectively.
Commercial insurance requirements have been increased from
$1,000,000 to $5,000,000.
Performance bond has been increased from $100,000 to
$500,000.
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