HomeMy WebLinkAboutSR Summary FormDate: 3/16/2006
Second Reading Ordinance
AGENDA ITEM SUMMARY FORM
FILE ID: C )L ,
Requesting Department: Public Works
Commission Meeting Date: 4/6/2006 District Impacted:
Type: ❑ Resolution 1Z Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Ordinance approving termination of Franchise Agreement between the City of Miami and
TECO Thermal Systems. Inc.. formerly known as FPL Thermal Systems. Inc.
Purpose of Item:
An Ordinance approving the termination of that certain 37-year franchise agreement by and between
the City of Miami and TECO Thermal Systems, Inc., formerly known as FPL Thermal Systems, Inc.
Background Information:
SEE SUPLEMENTAL PAGE
Budeet Impac„jAnaJxiis
YES Is this item related to revenue?
NO Is this item an expenditure? If so, please identify funding source below.
General Account No: 000
Special Revenue Account No: 000
GP Project No: 000
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost: $0.OQ
Maintenance Cost: $0.00
Total Fiscal Impact: $2,0Q'
Final Approvals.
(SIGN AND DATE),
CIP Budget
If using or receiving capital funds Risk
Grants
Purc Dept. Director
Chic . City Manager
Page 1 of 1
SUPPLEMENT TO AGENDA ITEM SUMMARY FORM
BACKGROUND INFORMATION
The City of Miami, Florida and FPL Energy Services, Inc., a subsidiary of Florida Power
and Light Company, entered into a Franchise Agreement dated June 8, 1998. The
interest of FPL Energy Services, Inc. in the Agreement was subsequently assigned to FPL
Thermal Systems, Inc., a Florida corporation, by an Assignment and Assumption
Agreement dated September 1, 2001. FPL Thermal Systems, Inc. is now known as
TECO Thermal Systems, Inc.
TECO Thermal has contracted to sell the System Facilities to Miami -Dade County,
Florida and has by a letter to the City of Miami, dated and delivered on February 8, 2006,
provided the notice required under the Agreement. In connection with the sale by TECO
Thermal to Miami -Dade County, TECO Thermal has requested that the City of Miami
agree to termination of the Agreement.
The City of Miami and TECO Thermal have negotiated termination of the Agreement
and a termination fee of One Million One Hundred Thousand Dollars ($1,100,000.00) to
be paid by TECO Thermal to the City of Miami for such termination and have reached an
understanding with respect thereto.