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HomeMy WebLinkAboutO-2002-013 ORDINANCE NO. 2002-013 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA GRANTING TO FLORIDA POWER AND LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE; IMPOSING PROVISIONS AND CONDITIONS RELATING TO SUCH FRANCHISE; PROVIDING FOR MONTHLY PAYMENTS TO THE CITY OF DANIA BEACH; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, there is currently in effect a franchise agreement between the City of Dania Beach, Florida and Florida Power & Light Company, the terms of which are set forth in City of Dania Ordinance No. 173, passed and adopted June 13, 1978, and Florida Power & Light Company's written acceptance thereof dated June 28, 1978, granting to Florida Power & Light _Company, its successors and assigns, a thirty (30) • year electric service franchise (the "Current Franchise Agreement," a true copy of which is attached hereto as Exhibit "A"); and WHEREAS, the City of Dania Beach filed a complaint against Florida Power Light Company in that certain cause styled City of Pompano Beach, Florida, et al. v. Florida Power& Light Company, In the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida, Case No. 01-008883 (03) (the "Lawsuit," a true copy of which is attached hereto as Exhibit "B"); and WHEREAS, the Lawsuit challenged the amount of franchise fees payable by Florida Power & Light Company to the City under Section 6 of the Current Franchise Agreement, and asked the Court to reform the Current Franchise Agreement to increase the amount of franchise fees payable thereunder; and WHEREAS, Florida Power & Light Company vigorously disputed the allegations and claims in the Lawsuit; and 1 ORDINANCE NO. 2002-013 • WHEREAS, the City of Dania Beach and Florida Power & Light Company desire to settle the Lawsuit by entering into a new thirty (30) year franchise agreement with the terms set forth below ("New Franchise Agreement") prior to expiration of the Current Franchise Agreement, and dismissing all of the City of Dania Beach's claims against FPL in the Lawsuit with prejudice; and WHEREAS, the New Franchise Agreement is intended to settle and bar any and all claims by the City of Dania Beach relating in any way to the amount of franchise fees payable by Florida Power & Light Company to the City, including without limitation any and all claims relating to the amounts and revenues used to calculate and pay such franchise fees, including but not limited to any and all claims that were or could have been asserted in the Lawsuit and any and all claims under Section 5 of the New ® Franchise Agreement, including without limitation any and all claims relating to the amounts and revenues used to calculate the franchise fee under that section; and WHEREAS, the City of Dania Beach understands and agrees that the revenues described in Section 5 of the New Franchise Agreement are limited to the precise revenues described therein, and that such revenues do not include, by way of example and not limitation: (a) revenues from demand charges, (b) revenues from the sale of electrical energy for Public Street and Highway Lighting (service for lighting public ways and areas); (c) revenues from Other Sales to Public Authorities (service with eligibility restricted to governmental entities); (d) revenues from Sales to Railroads and Railways (service supplied for propulsion of electric transit vehicles); (e) revenues from Sales for Resale (service to other utilities for resale purposes); (f) franchise fees; (g) Late Payment Charges; (h) Field Collection Charges; (i) other service charges; and 2 ORDINANCE NO. 2002-013 WHEREAS, the New Franchise Agreement will provide substantially increased benefits to the City of Dania Beach; and WHEREAS, the City Commission of the City of Dania Beach deems it wise and in the best interest of the City and its citizens to enter into the New Franchise Agreement prior to expiration of the Current Franchise Agreement; and WHEREAS, the City Commission of the City of Dania Beach has had advice of its attorneys as to the meaning, intent, purpose and legality of the New Franchise Agreement; WHEREAS, the City Commission of the City of Dania Beach ("City") recognizes that the citizens of the City need and desire the benefits of electric service; and WHEREAS, the provision of such service requires substantial investments of capital and other resources in order to construct, maintain and operate facilities essential to the provision of such service in addition to costly administrative functions, and the City does not desire to undertake to provide such services; and WHEREAS, Florida Power & Light Company is a public utility which has the demonstrated ability to supply such services; and WHEREAS, Florida Power & Light Company and the City desire to enter into a franchise agreement providing for the payment of fees to the City in exchange for the nonexclusive right and privilege of supplying electricity and other services within the City free of competition from the City, pursuant to certain terms and conditions; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. There is hereby granted to Florida Power & Light Company, its • successors and assigns (herein called the "Grantee"), for the period of 30 years from the 3 ORDINANCE NO. 2002-013 effective date hereof, the non-exclusive right, privilege and franchise (herein called "franchise") to construct, operate and maintain in, under, upon, along, over and across the present and future roads, streets, alleys, bridges, easements, rights-of-way and other public places (herein called "public rights-of-way") throughout all of the incorporated areas, as such incorporated areas may be constituted from time to time, of the City of Dania Beach, Florida, and its successors (herein called the "Grantor"), in accordance with the Grantee's customary practice with respect to construction and maintenance, electric light and power facilities, including, without limitation, conduits, poles, wires, transmission and distribution lines, and all other facilities installed in conjunction with or ancillary to all of the Grantee's operations (herein called "facilities"), for the purpose of supplying electricity and other services to the Grantor and its successors, the inhabitants thereof, and persons • beyond the limits thereof. Section 2. The facilities of the Grantee shall be installed, located or relocated so as to not unreasonably interfere with traffic over the public rights-of-way or with reasonable egress from and ingress to abutting property. To avoid conflicts with traffic, the location or relocation of all facilities shall be made as representatives of the Grantor may prescribe in accordance with the Grantor's reasonable rules and regulations with reference to the placing and maintaining in, under, upon, along, over and across said public rights-of-way; provided, however, that such rules or regulations (a) shall not prohibit the exercise of the Grantee's right to use said public rights-of-way for reasons other than unreasonable interference with motor vehicular traffic, (b) shall not unreasonably interfere with the Grantee's ability to furnish reasonably sufficient, adequate and efficient electric service to all of its customers,,and (c) shall not require the relocation of any of the Grantee's facilities • installed before or after the effective date hereof in public rights-of-way unless or until 4 ORDINANCE NO. 2002-013 widening or otherwise changing the configuration of the paved portion of any public right- of-way used by motor vehicles causes such installed facilities to unreasonably interfere with motor vehicular traffic. Such rules and regulations shall recognize that above-grade facilities of the Grantee installed after the effective date hereof should be installed near the outer boundaries of the public rights-of-way to the extent possible. When any portion of a public right-of-way is excavated by the Grantee in the location or relocation of any of its facilities, the portion of the public right-of-way so excavated shall within a reasonable time be replaced by the Grantee at its expense and in as good condition as it was at the time of such excavation. The Grantor shall not be liable to the Grantee for any cost or expense in connection with any relocation of the Grantee's facilities required under subsection (c) of this Section, except, however, the Grantee shall be entitled to 'reimbursement of its costs • from others and as may be provided by law. Section 3. The Grantor shall in no way be liable or responsible for any accident or damage that may occur in the construction, operation or maintenance by the Grantee of its facilities hereunder, and the acceptance of this ordinance shall be deemed an agreement on the part of the Grantee to indemnify the Grantor and hold it harmless against any and all liability, loss, cost, damage or expense which may accrue to the Grantor by reason of the negligence, default or misconduct of the Grantee in the construction, operation or maintenance of its facilities hereunder. Section 4. All rates and rules and regulations established by the Grantee from time to time shall be subject to such regulation as may be provided by law. Section 5. As a consideration for this franchise, the Grantee shall pay to the Grantor, commencing 90 days after the effective date hereof, and each month thereafter for the remainder of the term of this franchise, an amount which added to the amount of all 5 ORDINANCE NO. 2002-013 licenses, excises, fees, charges and other impositions of any kind whatsoever (except ad valorem property taxes and non-ad valorem tax assessments on property) levied or imposed by the Grantor against the Grantee's property, business or operations and those of its subsidiaries during the Grantee's monthly billing period ending 60 days prior to each such payment will equal 5.9 percent (5.9%) of the Grantee's billed revenues, less actual write-offs, from the sale of electrical energy to residential, commercial and industrial customers within the incorporated areas of the Grantor for the monthly billing period ending 60 days prior to each such payment, and in no event shall payment for the rights and privileges granted herein exceed 5.9 percent (5.9%) of such revenues for any monthly billing period of the Grantee. Section 6. As a further consideration, during the term of this franchise or any extension thereof, the Grantor agrees: (a) not to engage in the distribution and/or sale, in competition with the Grantee, of electric capacity and/or energy to any ultimate consumer of electric utility service (herein called a "retail customer") or to any electrical distribution system established solely to serve any retail customer formerly served by the Grantee, (b) not to participate in any proceeding or contractual arrangement, the purpose or terms of which would be to obligate the Grantee to transmit and/or distribute, electric capacity and/or energy from any third party(ies) to any other retail customer's facility(ies), and (c) not to seek to have the Grantee transmit and/or distribute electric capacity and/or energy generated by or on behalf of the Grantor at one location to the Grantor's facility(ies) at any other location(s). Nothing specified herein shall prohibit the Grantor from engaging with other utilities or persons in wholesale transactions which are subject to the provisions of the Federal Power Act. ® Nothing herein shall prohibit the Grantor, if permitted by law, (i) from purchasing 6 ORDINANCE NO. 2002-013 • electric capacity and/or energy from any other person, or (ii) from seeking to have the Grantee transmit and/or distribute to any facility(ies) of the Grantor electric capacity and/or energy purchased by the Grantor from any other person; provided, however, that before the Grantor elects to purchase electric capacity and/or energy from any other person, the Grantor shall notify the Grantee. Such notice shall include a summary of the specific rates, terms and conditions which have been offered by the other person and identify the Grantor's facilities to be served under the offer. The Grantee shall thereafter have 90 days to evaluate the offer and, if the Grantee agrees to meet or beat the other person's offer, the Grantor shall be obligated to continue to purchase from the Grantee electric capacity and/or energy to serve the previously-identified facilities of the Grantor for a term no shorter than that offered by the other person. If the Grantee does not agree to meet or beat the other person's offer, all of the terms and conditions of this franchise shall remain in effect. Section 7. If the Grantor grants a right, privilege or franchise to any other person or otherwise enables any other such person to construct, operate or maintain electric light and power facilities within any part of the incorporated areas of the Grantor in which the Grantee may lawfully serve or compete on terms and conditions which the Grantee determines are more favorable than the terms and conditions contained herein, the Grantee may at any time thereafter terminate this franchise if such terms and conditions are not remedied within the time period provided hereafter. The Grantee shall give the Grantor at least 60 days advance written notice of its intent to terminate. Such notice shall, without prejudice to any of the rights reserved for the Grantee herein, advise the Grantor of such terms and conditions that it considers more favorable. The Grantor rshall then have 60 days in which to correct or otherwise remedy the terms and conditions 7 ORDINANCE NO. 2002-013 complained of by the Grantee. If the Grantee determines that such terms or conditions are not remedied by the Grantor within said time period, the Grantee may terminate this agreement by delivering written notice to the Grantor's Clerk and termination shall be effective on the date of delivery of such notice. Section 8. If as a direct or indirect consequence of any legislative, regulatory or other action by the United States of America or the State of Florida (or any department, agency, authority, instrumentality or political subdivision of either of them) any person is permitted to provide electric service within the incorporated areas of the Grantor to a customer then being served by the Grantee, or to any new applicant for electric service within any part of the incorporated areas of the Grantor in which the Grantee may lawfully serve, and the Grantee determines that its obligations hereunder, or otherwise resulting from this franchise in respect to rates and service, place it at a competitive disadvantage with respect to such other person, the Grantee may, at any time after the taking of such action, terminate this franchise if such competitive disadvantage is not remedied within the time period provided hereafter. The Grantee shall give the Grantor at least 90 days advance written notice of its intent to terminate. Such notice shall, without prejudice to any of the rights reserved for the Grantee herein, advise the Grantor of the consequences of such action which resulted in the competitive disadvantage. The Grantor shall then have 90 days in which to correct or otherwise remedy the competitive disadvantage. If such competitive disadvantage is not remedied by the Grantor within said time period, the Grantee may terminate this agreement by delivering written notice to the Grantor's Clerk and termination shall take effect on the date of delivery of such notice. Section 9. Failure on the part of the Grantee to comply in any substantial respect with any of the provisions of this franchise shall be grounds for forfeiture, but no 8 ORDINANCE NO. 2002-013 such forfeiture shall take effect if the reasonableness or propriety thereof is protested by the Grantee until there is final determination (after the expiration or exhaustion of all rights of appeal) by a court of competent jurisdiction that the Grantee has failed to comply in a substantial respect with any of the provisions of this franchise, and the Grantee shall have six months after such final determination to make good the default before a forfeiture shall result with the right in the Grantor at its discretion to grant such additional time to the Grantee for compliance as necessities in the case require. Section 10. Failure on the part of the Grantor to comply in substantial respect with any of the provisions of this ordinance, including: (a) denying the Grantee use of public rights-of-way for reasons other than unreasonable interference with motor vehicular traffic; (b) imposing conditions for use of public rights-of-way contrary to Florida law or the ® terms and conditions of this franchise; (c) unreasonable delay in issuing the Grantee a use permit, if any, to construct its facilities in public rights-of-way, shall constitute breach of this franchise and entitle the Grantee to withhold all or part of the payments provided for in Section 5 hereof until such time as a use permit is issued or a court of competent jurisdiction has reached a final determination in the matter. The Grantor recognizes and agrees that nothing in this franchise constitutes or shall be deemed to constitute a waiver of the Grantee's delegated sovereign right of condemnation and that the Grantee, in its sole discretion, may exercise such right. Section 11. The Grantor may, upon reasonable notice and within 90 days after each anniversary date of this franchise, at the Grantor's expense, examine the records of the Grantee relating to the calculation of the franchise payment for the year preceding . such anniversary date. Such examination shall be during normal business hours at the Grantee's office where such records are maintained. Records not prepared by the 9 ORDINANCE NO. 2002-013 Grantee in the ordinary course of business may be provided at the Grantor's expense and as the Grantor and the Grantee may agree in writing. Information identifying the Grantee's customers by name or their electric consumption shall not be taken from the Grantee's premises. Such audit shall be impartial and all audit findings, whether they decrease or increase payment to the Grantor, shall be reported to the Grantee. The Grantor's right to examine the records of the Grantee in accordance with this section shall not be conducted by any third party employed by the Grantor whose fee for conducting such audit is contingent on findings of the audit. Section 12. The provisions of this ordinance are interdependent upon one another, and if any of the provisions of this ordinance are found or adjudged to be invalid, illegal, void or of no effect, the entire ordinance shall be null and void and of no force or ® effect. Section 13. As used herein "person" means an individual, a partnership, a corporation, a business trust, a joint stock company, a trust, an incorporated association, a joint venture, a governmental authority or any other entity of whatever nature. Section 14. Ordinance No. 173, passed and adopted June 13, 1978, and all other ordinances and parts of ordinances and all resolutions and parts of resolutions in conflict herewith, are hereby repealed. Section 15. As conditions precedent to the taking effect of this ordinance, (a) the Grantor shall have served and filed its Notice of Dismissal With Prejudice of its action and claims against Grantor in that certain cause styled City of Pompano Beach, et al. v. Florida Power & Light Company, in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida, Case No. 01-008883 (03), identical in all material respects to Exhibit "C" hereto, prior to March 29, 2002; (b) the Grantor shall have executed and 10 ORDINANCE NO. 2002-013 delivered to Grantee a Release And Waiver Of All Claims identical in all material respects to Exhibit "D" attached hereto, prior to March 29, 2002; the Grantee shall have filed its acceptance hereof with the Grantor's Clerk identical in all material respects to Exhibit "E" attached hereto, on or before March 29, 2002. If all of the foregoing conditions precedent have been performed, the effective date of this ordinance shall be March 29, 2002. PASSED on first reading on March 12, 2002 PASSED AND ADOPTED on n rea ing on March , 2 ATTEST: ROB RT H. CHUNN, J ALP 44,_� MAY R — COMMISSIONER CHARLENE J NSON CITY CLERK ROLL CALL: COMMISSIONER BERTINO - YES COMMISSIONER MCELYEA - _Y€S= ABSENT COMMISSIONER MIKES - YES VICE-MAYOR FLURY - YES MAYOR CHUNN - YES APPROVED AS rORM AND CORRECTNESS: BY: 1 THOMAS'J. ANSB U CITY ATTORNEY 11 ORDINANCE NO. 2002-013 ORDINANCE NO. 173 AN ORDINANCE OF THE CITY OF DANIA, FLORIDA, GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS AN ELECTRIC FRANCHISE FOR A PERIOD OF THIRTY (30) YEARS, IMPOSING PROVISIONS AND CONDITIONS RELATING THERETO, AND PROVIDING FOR MONTHLY PAYMENTS TO THE CITY, AND PROVIDING• THAT ALL ORDINANCES OR PARTS OF ORDINANCES AND ALL RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH BE REPEALED TO THE EXTENT OF SUCH CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA, FLORIDA: Section 1. That there is hereby granted to Florida Power & Light Company (herein called the "Grantee") , its successors and assigns, the non-exclusive right, privilege or franchise to construct, maintain over and across the present and future and operate in, under, upon, streets, alleys, bridges, easements and other public places in the City of Dania, Florida (herein.called the "Grantor") and its successors, in accordance with established practice with respect to electrical construction and maintenance, for the period of thirty (30) years from he date of acceptance hereof, electric light and power facilities & (including copduits,ipoles, wires and transmission lines, and, for its own use, telephone and telegraph lines) for the purpose of supplying electricity to Grantor, and its successors, and inhabitants thereof, and persons and corporations beyond the limits thereof. cedent to the taking effect of this Section 2. As 'a condition pre grant, Grantee shall have filed its acceptance hereof with the Grantor's Clerk within thirty (30) days hereof. Section 3. That the facilities shall be so located or relocated and so erected as to interfere as little as possible with traffic over said streets, alleys, bridges and public places, and with reasonable The location or relocation egress from and ingress to abutting property. of all facilities shall be made under the supervision and with the approval of such representatives as the governing body of Grantor may se, but not so as unreasonably to interfere with designate for the purpo the proper operation of Grantee's facilities and service. That when i reet is excavated by Grantee in the location or any portion of a st r^location of any of its facilities, the portion bf the street so aced shall, within a reasonable time and as early as practicable f�a such excavation, be replaced by the Grantee at its expense and in as good condition as it was at the time of such excavation. Section 4. That Grantor shall in no way be liable or respon- -.ible for any accident or damage that may occur in the construction, operation or maintenance, by Grantee of its facilities hereunder, and the acceptance of this ordinance shall be deemed an agreement on the part of the Grantee, to indemnify Grantor and hold it harmless against any and all liability_ ; loss, cost, damage or expense, which may accrue to Grantor by reason of the neglect, .default or misconduct of Grantee in the construction, operation br,maintenance of its facilities here- under. Section 5. . That all rates and rules and regulations established by Grantee from time to time shall at all times be reasonable and Grantee's rates for electricity shall at all times be subject to such regulation as may be provided by law. is Section 6. That no later than sixty (60) days after the first anniversary e of this grant and no later than sixty (60) days after each succeeding anniversary date of this grant, the Grantee, its successors and assigns, shall have paid to the Grantor and its successors an amount which added to the amount of all taxes as assessed, levied, or imposed (without regard to any discount for early payment or any interest or penalty for late payment) , licenses, and other impositions levied or imposed by the Grantor upon the Grantee's elec- tric property, business or operations, and those of Grantee's electric subsidiaries for the preceding tax year, will equal six per cent (6%) of Grantee' s revenues from the sale of electrical energy to residential, commercial and industrial customers within the corporate limits of the Grantor for twelve (12) fiscal months preceding the applicable anniversary date. -2- Section 7_ Payment of the amount to be paid to Grantor by •antee under the terms of Section 6 hereof shall be made in ad- �ce by estimated monthly installments commencing ninety (90) days after the effective date of this grant. Each estimated monthly installment shall be calculated on the basis of ninety per cent (90%) of Grantee's revenues (as defined in Section 6) for the monthly billing period ending sixty (60) days prior to each scheduled monthly payment. The final installment for each fiscal year of this grant shall be adjusted to reflect any underpayment or overpayment resulting from estimated monthly installments made for said fiscal year. Section 8.- As a further consideration.of this franchise, said Grantor agrees not to engage in the business of distributing and selling electricity during the life of this franchise or any extension thereof in competition with the Grantee, its successors and assigns. Section 9. That failure on the part of Grantee to comply in any substantial respect with any of the provisions of this ordinance, shall be grounds for a forfeiture of this grant, but no such forfeiture shall take effect if the reasonableness or propriety thereof is lootested by Grantee until a court of competent jurisdiction (with right of appeal in either party) shall have found that Grantee has failed to comply in a substantial respect with any of the provisions of this franchise, and the Grantee shall have six (6) months after the final determination of the question, to make good the default before a forfeiture shall result with the right in Grantor at its discretion to grant such additional time to Grantee for compliance as necessities in the case require. Section 10. This franchise as provided by this ordinance shall take effect on the date upon which Grantee files its acceptance with Grantor. Section 11. Should any section or provision of this ordinance or any portion hereof be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the re- mainder hereof as a whole or any part hereof, other than the part declared to be invalid. -•3- Section 12. That if for any reason this ordinance shall be 0-ound to be invalid, then, in such event, it is the declared intent of the City Commission that this ordinance shall be inoperative and void as of the time when it was first introduced and that Ordinance No. 308, effective on October 23, 1953, shall be and remain in full force and effect as though this ordinance had not been enacted. Section 13. That all ordinances or parts of ordinances and all resolutions or parts of resolutions in conflict herewith be and the same are hereby repealed to the extent of such conflict. Section 14: That this ordinance shall be in force and take effect immediately upon its passage and adoption. PASSED and ADOPTED on First Reading on, the 23rd day of May 1978. PASSED and ADOPTED on Second and Final Reading on the 13th day of June 1978• o /- CO S R ATTEST: CITY CLERK'- AUDITOR APPROVED FOR FORM AND CORRECTIVENESS BY FRANK C. ADLER, City Attorney City of Dania, Florida -4- ORDINANCE No 308 i AN ORDINANCE GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELEC, THIC FRANCHISE, AND IMPOSING PROVISIONS AND CONDITIONS RELATING TIIERETO: ORD4IP�r.D BY THE CITY CO2iLSSION OF THE C�'Y OF DA,�IA .GE IT—._.._..�...----- --- --_._—_.--__...-- ---------- ---- —_) —_.._.�_.._—..—.FLORIDA:— Section 1. That there is hereby granted to Florida Power&Light Company (herein called the "Granted'), its successors and as• signs,the non<xclusive riglu,privilege or franchise to construct,maintain and operate in,under,upon,over and across the present and fu- ture streets,allevs bridges,casements and other public places of the...l�.it�..—of---J)anla1• ...Florida, (herein called the "Grantor") and its successors, in accordance with established practice with respect to electrical construction and maintenance, for the period of thirty yearn from the date of acceptance hereof,electric light and power facilities (including conduits, poles, wires and trans- mission lines, and.for its own use, telephone and telegraph lines) for the purpose of supplying electricity to Grantor,and its successors, the inhabitants thereof, and persons and corporations beyond the limits thereof. Section II. That Grantor hereby reserves the right at and after the expiration of this grant to purchase the property of Grantee used under this grant,as provided by the Laws of Florida, in effect at the time of Grantees acceptance hereof, including Section 16722 of the Florida Statuses of IM,and as a condition precedent to the taking effect of this grant.Grantee shall give and grant to the Grantor the right to purchase so reserveJ. Grantee shall be deemed to have given and granted such right of purchase by its acceptance hereof, which shall be filed with'the Grantors clerk within thirty (30) days after this ordinance takes effect. Section F.I. That the facilities shall be so located or relocated and so erected as to interfere as little as possible with traffic over said streets,alleys,bridges and public places and with reasonable egress from and ingress to abutting property. The location or relocation of all facilities shall be made tinder the supervision and with the approval of such representatives as the governing body of Grantor may designate for the purpose,but not to as unreasonably,to interfere with the proper operation of Grantee's facilities and service.That when any portion of a street is excavated by Grantee in the location or relocation of any of its facilities,the portion of the street to excavated shall,within a reasonable time and as early as practicable after such excavation,be replaced by the Grantee at its expense and in as good condition as it was at the time of such excavation. Section IV. That Grantor shall in no way be liable or responsible for any accident or damage that may occur in the construction, operation or maintenance by Grantee of its facilities hereunder, and the acceptance of this ordinance shall be deemed an agreement on the part of Grantee,to indemnify Crantor.and hold it harmless against any,and all liability,loss, cost, damage or expense,which may accrue to Grantor by reason of the neglect,default,or misconduct of Grantee in the construction, operation or maintenance of its facilities hereunder. Section V. That all rates and rules and regulations established by Grantee from time to time shall at all times be rensonaLle and Grantee's rates for electricity shall at all times he subject to such regulation as may be provided by law. Section VI. That within thirty days after the first anniversary date of this grant and within thirty days after each succeeding an- iversary date of this grant,the Grantee,its successors and assigns,shall pay to the Grantor and its successors an emg�rJ �I`'��Cadded to 0count of all taxes, licemes, an�otthCCr� rytposi:ions levied or imposed by the Grantor upon the Grantee, __rttyy,.business, of ions, and those of Grantae't 3u7iatdsartes for the preceding tart year, will equal 69b of Grantees revenues from the sale of electrical energy to residential and commercial customers within the corporate limits of the Grantor for the twelve fiscal months prated• ing the applicable anniversary date. Section VIL As a further consideration of this franchise said Grantor agrees not to engage in the business of distributing and selling electricity during the life of this franchise or any extension thereof in competition with the Grantee,its successors and assigns. Section VIII. That failure on the part of Grantee to comply in any substantial respect with any of the provisions of this ordinance, Shull be grounds for a forfeiture of this grant,but no such forfeiture*hull take effect if the reasonableness or propriety thereof is pro- tested by Grantee until a court of competent jurisdiction (with right of appeal in either party) shall have found that Grantee has failed to comply in a substantial respect with any of the provisions of this franchise,and the Grantee shall have six (6) months after the final determination of the question,to make Rood the default before a forfeiture shall result with the right in Grantor at its discretion to grant evch additional time to Grantee for compliance as necessities in the case require. Section IX. This ordinance shall take effect in accordance with the provisions of the Charter of the City of Dania, Florida (Chapter 25768, Laws of Florida, Acts of 1949, as amended). Section X. That all ordinances and parts of ordinances in conflict herewith be and the same are hereby repealed. PASSED AND :ADOPTED this........2,..._..__ _......day "L..---September - `------ — -__ ^ � S3 �,u r%X_> .•... 0.'1` _ ridr._i-1� or_Ccr±rissioner - : ........................:----------------....._. __...-- __-------- �"'�•. ior•;Coing Drdin::!:�'c a,�pr..v,.d un the �J' .. 19 - --2,1 A1aj°` Cormi.ssioners 1'.. k-1 Stpte...her. 1931. ACCEPTANCE OF ELECTRIC FRANCHISE ORDINANCE NO. 173 BY FLORIDA POWER & LIGHT COMPANY City of Dania June 28, 1978 Dania, Florida i Florida Power & Light Company does hereby accept the electric franchise in the City of Dania, Florida, granted by Ordinance No. 173, being: "AN ORDINANCE OF THE CITY OF DANIA, FLORIDA, GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS.AND ASSIGNS AN ELECTRIC FRANCHISE FOR A PERIOD OF THIRTY (30) YEARS, IMPOSING PROVISIONS ,AND,,CONDITIONS. RELATING THERETO, AND PROVIDING FOR MONTHLY PAYMENTS TO THE CITY, AND PROVIDING THAT, ALL ORDINANCES OR PARTS OF ORDINANCES AND ALL .RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH BE REPEALED TO THE EXTENT OF SUCH. CONFLICT; AND PROVIDING FOR AN EFFECTIVE DATE." which was passed and adopted on June 13, 1978. This instrument is filed with the City Clerk of the City of Dania, Florida, in accordance with the provisions of Section 2 of said ordinance. FLORIDA POWER & LIGHT COMPANY B}� Vice President ATTEST: v Secre ry I HEREBY ACKNOWLEDGE receipt of the above Acceptance of Electric Franchise Ordinance No. 173 by Florida Power & Light Company, and certify that I have filed the same for record in the permanent files and records of the City of Dania, Florida on this 28th day of June, 1978. City Clerk of the City of Dania, Florida STATE OF FLORIDA ) COUNTY OF BROWARD ) CITY OF DANIA ) I, Mary Thornhill, duly appointed and acting City Clerk of the City of Dania, DO HEREBY CERTIFY that the foregoing is a true: and. correct .copy of Ordinance No. 308, of the ordinances of the City of Dania, Florida, passed and adopted by the City Commission of the City of Dania, Florida, on September 21, 1953• Dated this 24th day of September, 1953- ' i phi (j City Clerk City of Dania, Florida SEAL. VISIONS AND CONDITIONS RELATING THERETO," and certify that I have filed the same for record in the per- manent files and records of the City of Dania, Florida, this day of October, 1953- (fCity Clerk � 1 ACCEPTANCE OF CITY OF DANIA 0$ • ELECTRIC FRANCHISE ORDINANCE N0. October 21, 1953 City of Dania Dania, Florida The Florida Power & Light Company does hereby accept Ordinance No. 30$, it being: 1iAN ORDINANCE GRANTING SUCCESSORS IAND DA PASSIGNS, LIGHT COMPANY, IOWER & TS AND AN ONTRIC FRANCHISE AND VLSIS CONDITIONS RELATINGSTHERETO." This instrument is filed with the City Clerk of the City of Dania, Florida, in accordance with the provi- sions of Section II of said Ordinance. FLORIDA POWER & LIGHT COMPANY By Fullerton, Vice President R. C. ATTEST: pl. g, McDona d, Secretary ledge receipt of the above Acceptance acknowledge I hereby Light Company of Ordinance No. 308, it by the Florida Power & being: 'TAN ORDINANCE GRITSING SUCCESPOWER & SORSIA DA D ASSIGNS, LIGHT COMPANY, AND JlIpOSING PRO- AN ELECTRIC FRANCHISE, VISIONS AND CONDITIONS RELATING THERETO," rd in and certify that I have filed the sanoffor re oFloridahethis- manent files and recor of ds City City Clerk ORDINANCE NO. 77- 50 EXPIRES : 6-27-2007- CITY OF POITANO BEACH Broward County, Florida AN ORDINANCE GRANTING TO FLORIDA POWER & LIGHT CDIPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, IMPOSING PROVISIONS AND CONDITIONS RELATING TIE;REM; PROVIDING FOR MONTHLY PAYM3qTS TO THE CITY; PROVIDING A SAVINGS CLAUSE; PROVIDING A REPEALING CLAUSE; PROVIDING AN EFFECTIVE DATE. WHEREAS, there is currently in effect ordinance No. 438 of the City of Pompano Beach, Florida, passed and adopted August 24, 1948, whereby the City of Pompano Beach did grant to Florida Power $ Light Company, its successors and assigns, a thirty (30) year electric utility franchise; and WHEREAS, in consideration of the granting by the City of Pompano Beach of a new thirty (30) year franchise prior to expiration of the franchise granted by said Ordinance No. 438, Florida Power & Light Company has offered to include industrial revenues in the franchise fee calculation, and to remit franchise fee payments to the City in estimated monthly installments rather than on an annual basis as provided in said Ordinance No. 438, thereby providing substantially increased benefits to the City; and • WHEREAS, the City Commission of the City of Pompano Beach therefore deems it wise and expedient and in the best interest of the City to enter into a new franchise agreement with Florida Power & Light Company prior to expiration of the franchise granted by said Ordinance No. 438; and WHE AS, pursuant to law, seven (7) days' notice has been given by publication in a paper of general circulation in the City, notifying the public of this proposed ordinance and of a public hearing in the Commission ;Meeting Room of the City of Pompano Beach, Florida; and WHEREAS, a public hearing before the City Commission was held, pursuant to the published notice described above at which hearing the parties in interest and all other citizens so desiring had an opportunity to be and were in fact heard; now, therefore BE IT ENACTED BY THE CITY OF PONTANO BEACH, FLORIDA: SECTION 1: That there is hereby granted to Florida Power $ Light Company (herein called the "Grantee") , its successors and assigns, the EXHIBIT N d A non-exclusive right, privilege franchise to construct, maintain and, operate in, under, upon, over and across the present and future streets, alleys, bridges, easements and other public places of the City of poTyTpanc Beach, Florida (herein called the "Grantor") and its successors, in ® accordance with established practice with respect to electrical con_stz-uct and maintenance, for the period of thirty years from the date of acceptan, hereof, electric light and power facilities (including conduits, poles, ` wires and transmission lines, and, for its own use, .telephone and telegra lines) for the purpose-of supplying electricity to Grantor, and its successors, and inhabitants thereof, and persons and corporations beyond the limits thereof. SECTION 2: As a condition precedent to the taking effect of the grant, Grantee shall have filed its acceptance hereof with the Grantor's clerk within thirty (30) days hereof. SECTION 3: That the facilities shall be so located or relocated and so erected as to interfere as little as possible with traffic over said streets, alleys, bridges and public places, and with reasonable egres from and ingress to abutting property. The location or relocation of all facilities shall be made under the supervision and with the approval of ® such representatives as the governing body of Grantor may designate for o the purpose, but not so as unreasonably to interfere with the proper opera-. of Grantee's facilities and service. That when any portion of a street is excavated by Grantee in the location or relocation of any of its facilities the portion of the street so excavated shall, within a reasonable time and as early as practicable after such excavation, be replaced by the Grantee a its expense and in as good condition as it was at the time of such excavati SECTION 4: That Grantor shall in no way be liable or responsible for any accident or damage that may occur in the construction, operation or maintenance by Grantee of its facilities hereunder, and the acceptance of t ordinance shall be deemed an agreement on the part of the Grantee, to indem Grantor and hold it harmless against any and all liability, loss, cost, dam or expense, which may accrue to Grantor by reason of the neglect, default o misconduct of Grantee in the construction, operation or maintenance of its facilities hereunder. 2 SECTION 5: That all rates ,d rules and regulations established by Grantee from time to time shall at all times be reasonable and Grantee's rates for electricity shall at all times be subject to such regulation as may provided by law. SECTION 6: That no later than sixty days after the first anniversa- date of this grant and no later than sixty days after each succeeding annive: date of this grant, the Grantee, its successors and assigns, shall have paid to—the Grantor and its successors, in consideration hereof, an amount which added to the amount of all taxes as assessed, levied, or imposed (without rega- to any discount for early payment or any interest or penalty for late payment) licenses, and other impositions levied or imposed by the Grantor upon the Grantee's electric property, business, or operations, and those of Grantee's electric subsidiaries for the preceding tax year, will equal 6% of Grantee's revenues from the sale of electrical energy to residential, commercial and industrial customers within the corporate limits of the Grantor for the twelve fiscal months preceding the applicable anniversary date. Payments made by the Grantee to the Grantor pursuant to this Section shall not be considered in any manner to be .in the nature of a tax. SECTION 7: Payment of the amount to be paid to Grantor by Grantee under the terms of Section 6 hereof shall be made in advance by estimated monthly installments commencing ninety days after the effective date of this grant. Each estimated monthly installment shall be calculated on the basis of ninety percent (90%) of Grantee's revenues (as defined in Section 6) for the monthly billing period ending sixty days prior to each scheduled monthly payment. The final installment for each fiscal year of this grant shall be adjusted to reflect any underpayment or overpayment resulting from estimated monthly installments made for said fiscal year. SECTION 8: As a further consideration of this franchise. saiii Grantor agrees not to engage in the business of distributing and Sellhil, electricity during the life of this franchise or any extcnsicn therrof in competition with the Grantee, its successors and assigns. 3 SECTION 9: That failure a. ne part of Grantee to comply in _ any substantial respect with any of the provisions of this ordinance, shall be grounds for a forfeiture of this grant, but no such forfeiture shall take effect if the reasonableness or propriety thereof is protested by Grantee until a court of competent jurisdiction (with right of appeal in either party) shall have found that Grantee has failed to comply in a substantial respect with any of the provisions of this franchise, and the ` Grantee shall have six (6) months after the final determination of the questio to make good the default before a forfeiture shall result with the right in Grantor at its discretion to grant such additional time to Grantee for compliance as necessities in the case require. SECTION 10: If any section or provision of this ordinance shall be held invalid, such holding shall not affect or invalidate any other section or provision which is not of itself invalid. SECTION 11: That Ordinance No. 438 and all other ordinances and parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 12: This Ordinance shall take effect on the date upon which Grantee files its acceptance pursuant to Section 2 hereof, upon receipt of ® which the City Clerk is hereby directed to attach said acceptance to this Ordinance, said acceptance to be thereafter incorporated herein by reference as if set forth in full. PASSED FIRST READING this 14th day of June 1977. PASSED SECOND READING this 21st day of Jane 1977. K.��fiAXIM R ER, Mayor LoTZE u NZ; .`- City Clerk DCR/lc 5/20/7 N 21 S 4 IN THE CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA CASE NO.: CITY OF POMPANO BEACH, FLORIDA, CITY OF COCONUT CREEK, FLORIDA, CITY OF DANIA BEACH, FLORIDA, CITY OF MARGATE, FLORIDA, and CITY OF TAMARAC, FLORIDA, iZ�Y V. uPlaintiffs, FLORIDA�POWER & LIGHT COMPANY, A Florida corporation, 6 � � Defendant. COMPLAINT E. Plaintiffs, CITY OF POMPANO BEACH, FLORIDA, CITY OF COCONUT CREEK, FLORIDA, CITY OF DANIA BEACH, FLORIDA, CITY OF MARGATE, FLORIDA, and CITY OF TAMARAC, FLORIDA, by undersigned counsel, complain against defendant, FLORIDA POWER & LIGHT COMPANY, a Florida corporation, as follows: Jurisdiction, Parties and Venue 1. This is an action for declaratory judgment and unjust enrichment,, over which this Court has exclusive subject matter jurisdiction. 2. Plaintiffs. CITY OF POMPANO BEACH, FLORIDA ("Pompano Beach"), CITY OF COCONUT CREEK.. FLORIDA ("Coconut Creek"), CITY OF • DANIA BEACH, FLORIDA, formerly known as Dania, Florida ("Dania Beach"), CITY EXHIBIT d WEISS SER 3 GUEDES, P.A. 3107 371RLING ROAD, SUITE 300. FORT LA • TEL. (954)763-4242 • FAX (954)764-7770 OF MARGATE, FLORIDA ("Margate"), and CITY OF TAMARAC, FLORIDA are munici municipalities duly chartered and incorporated under Florida law, and ("Tamarac"), P Y situated in Broward County, Florida. Plaintiffs will collectively be referred to as the "Cities." 3. Defendant FLORIDA POWER & LIGHT COMPANY ("FPL") is a Florida corporation, that does substantial business in, owns real property located in, and maintains corporate offices in Broward County, Florida. 4. FPL supplies electricity throughout' each of the Cities pursuant to franchises granted to FPL by the Cities, as more particularly set forth below. 5. FPL, as the owner of real and personal property in each of the Cities, is legally obligated under the Florida Constitution and Florida law to pay each of the Cities those real and personal property taxes levied on FPL by the Cities each year. 6. This cause of action occurred and continues to occur in each of the Cities in Broward County, Florida. 7. Venue is proper in Broward County, Florida, pursuant to Chapter 47, Florida Statutes. Conditions Precedent and Authoritv for Suit S. The governing bodies of each of the Cities authorized the filing of this action. 9. All applicable conditions precedent to the bringing of this action have either been satisfied, performed or waived. WEISS SEROTA HELFMAN PASTORIZA& GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 33312 • TEL. (954)763-4242 • FAX(954)764-7770 COUNT I: DECLARATORS' JUDGMENT • 10. The Cities repeat and reallege paragraphs 1 through 9 as if set forth at length herein. 11. This is an action for a declaratory judgment pursuant to Chapter 86, Florida Statutes, and for such further relief that the Court deems just and proper. The Leaal Controversy 12. A significant legal controversy has arisen between the Cities and FPL relating to each of the Cities' electric franchise ordinances (the "Franchise Ordinances"). 13. The Franchise Ordinances each grant to FPL thirty (30) year electric service franchises in each-of the Cities, and also purportedly grant to FPL indirect real, and personal property tax exemptions. 14. The Cities believe that such indirect property tax exemptions are ® impermissible under the Florida Constitution and applicable state law, and are consequently ultra vires, invalid and void. FPL disagrees. 15. As a direct result of the foregoing, and as more particularly set forth below, the Cities are in doubt as to their rights under the Franchise Ordinances. Specifically; the Cities are in doubt as to the validity and enforceability of the purported property tax exemptions contained in Section 6 of each of the Franchise Ordinances, the present effect of which is to allow FPL to offset hundreds of thousands of dollars per year in property taxes against the six percent (6%) franchise fees, thereby adversely impacting the financial position of the Cities and consequently all of their taxpayers. WEISS SEROTA HELFMAN PASTORIZA & GUEDES, P.A. 31G7 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 33312 • TEL. (954)763-4242 FAX (954) 764-7770 The Franchise Ordinances 16. On June 21, 1977, the Pompano Beach City Commission enacted Ordinance No. 77-50 that granted to FPL an electric franchise for a thirty (30) year term, to deliver electricity throughout Pompano Beach's boundaries on the terms and conditions stated therein. A true copy of the Pompano Beach Franchise Ordinance is attached hereto as Exhibit "A." Shortly thereafter, FPL consented to the terms of the Pompano Beach Franchise Ordinance. 17. On June 23, 1977, the Coconut Creels City Commission enacted Ordinance No. 300.03 that granted to FPL an electric franchise for a thirty (30) year term, to deliver electricity throughout Coconut Creek's boundaries on the terms and conditions stated therein. The Coconut Creek Franchise Ordinance is in all material aspects the same as the Pompano Beach Franchise Ordinance, attached hereto as Exhibit "A." Shortly thereafter, FPL consented to the terms of the Coconut Creek Franchise Ordinance. 18. On June 13, 1978, the Dania City Commission enacted Ordinance No. 173 that granted to FPL an electric franchise for a thirty (30) year term, to deliver electricity throughout Dania's boundaries on the terms and conditions stated therein. The Dania Franchise Ordinance is in all material aspects the same as the Pompano Beach Franchise Ordinance, attached hereto as Exhibit"A." Shortly thereafter, FPL consented to the terms of the Dania Franchise Ordinance. 19. On August 2, 1978, the Margate City Commission enacted Ordinance No. 78-23 that granted to FPL an electric franchise for a thirty (30) year term, to deliver electricity throughout Margate's boundaries on the terms and conditions stated therein. 4 WEISS SEROTA HELFMAN PASTORIZA& GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 33312 • TEL. (954)763-4242 • FAX (954)764-7770 The Margate Franchise Ordinance is in all material aspects the same as the Pompano Beach Franchise Ordinance, attached hereto as Exhibit "A." Shortly thereafter. FPL consented to the terms of the Margate Franchise Ordinance. 20. On January 12, 1977, the Tamarac City Commission enacted Ordinance No. 76-57 that granted to FPL an electric franchise for a thirty (30) year term, to deliver electricity throughout Tamarac's boundaries on the terms and conditions stated therein. The Tamarac Franchise Ordinance is in all material aspects the same as the Pompano Beach Franchise Ordinance, attached hereto as Exhibit "A." Shortly thereafter, FPL consented to the terms of the Tamarac Franchise Ordinance. The Franchise Fee and the Improper Indirect Tax Exemption 21. As consideration for the right to use the Cities' streets and public rights-of- • way and as consideration for the thirty-year franchises, Section 6 of each of the Franchise Ordinances provides, inter alia, that FPL shall pay to each of the Cities an annual franchise fee of six percent (6%) of FPL's revenues from the sale of electrical energy to residential, commercial, and industrial customers within the corporate limits of each of the Cities. However, Section 6 of each of the Franchise Ordinances also purportedly allows FPL to offset against this franchise fee an amount equal to all taxes assessed or levied on FPL's electric property, business or operations in the respective city. 22. Section 6 provides, in total': No later than sixty (60) days after the .first anniversary date of this grant, and no longer than sixty (60) days after each succeeding anniversary ' The "Grantee" in the Franchise Ordinances is FPL and the "Grantor" is each of the • respective Cities. 5 WEISS SEROTA HELFMAN PASTORIZA & GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 33312 • TEL. (954)763-4242 • FAX(954) 764-7770 date of this grant, Grantee, its successors and assigns, shall have paid to the Grantor and its successors an amount which added to the amount of all taxes as assessed levied or imposed (without regard to any discount for early payment or any interest or penalty for late payment), licenses, and other impositions levied or imposed by the Grantor upon Grantee's electric property, business, or operations and those of Grantee's electric subsidiaries for the preceding tax year, will equal six percent of Grantee's revenues from the sale of electrical energy to residential, commercial and industrial customers within the corporate limits of the Grantor for the twelve (12) fiscal months preceding the applicable anniversary date. (Emphasis added). The underlined language, which creates the improper indirect. tax exemption, will . hereafter be referred to as the "Tax Exemption Language." FPL's Use of the Improper Indirect Tax Exemption 23. Relying upon the Tax Exemption Language, FPL claims, and has claimed, that it has the absolute legal right to "offset" annually all ad valorem real property taxes and personal property taxes levied on FPL by each of the Cities from the six percent (6%) franchise fee. 24. In fact, acting pursuant to its purported "legal rights" under the Franchise Ordinances, each and every year since each of the Franchise Ordinances was adopted, FPL has offset property taxes levied on FPL by each of the Cities from its annual 6% franchise fee. No other taxpayer in any of the Cities enjoys such an indirect, dollar for dollar property tax exemption. 6 WEISS SEROTA HELFMAN PASTORIZA 8c GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 333-12 • TEL. (9S4)763-4242 • FAX (954) 764-7770 25. Moreover, each and every year since each of the Franchise Ordinances was adopted, FPL has also taken advantage of the discounts for early payment of assessed ad valorem taxes as provided by Section 197.162, Florida Statutes. Accordingly, FPL offsets the entire amount of taxes actually levied on it by each of the Cities, rather than the actual amount of taxes paid by FPL, from the six percent (6%) franchise fee owed by FPL to each City,under the Franchise Ordinances. 26. FPL is recovering every dollar, and more, of the property taxes it pays to each of the Cities each and every year, the result of which is an inequitable; disparate, onerous and'unconscionablel annual loss.of the revenues to the Cities, which, in turn, must be absorbed by all of the other property taxpayers in the Cities. The Indirect Tax Exemption is Ultra Vires and Void ® 27. At the time the Cities approved the Franchise Ordinances, and at all other times material hereto; the Cities were not authorized by the Florida Constitution or any other law to provide a tax exemption to FPL. Article VII, Section 2 of the Florida Constitution provides in relevant part, that "all ad valorem taxation shall be at a uniform rate within each taxing unit..." Article VII, Section 3, provides for certain limited property tax exemptions, none of which apply here. Article VII, Section 9, authorizes cities and other governmental entities to levy ad valorem taxes but does not authorize any property tax exemptions. 28. In addition, Section 196.001, Florida. Statutes, provides in relevant part that: Unless expressly exempted from taxation, the ® following property shall be subject to taxation in the 7 WEISS SEROTA HELFMAN PASTORIZA& GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE. FLORIDA 33312 • TEL. (954)763-4242 • FAX(954) 76a-7770 manner provided by law: (1) .All real and personal property in this state and all personal property belonging to persons residing in this state... Chapter 196 contains numerous exemptions, none of which apply to FPL's real and personal property. This was true under Florida law at the time the Franchise Ordinances were adopted and it continues to be true today. 29. The subject portion of Section 6 of the Franchise Ordinances provides FPL with a set-off against its franchise fee equal to all taxes paid by FPL. Florida law is well- settled that such a set-off constitutes an indirect tax exeption, and is not permitted unless authorized by the Florida Constitution. Thus, the Tax Exemption Language contained in Section 6 is ultra vires and.void. The Severance Provision 30. The Franchise Ordinances contain general severance provisions. For example; Section 10 of the Pompano Beach Franchise Ordinance provides: If any section or provision of this ordinance shall be held invalid, such holding shall not affect or invalidate any other section or provision which is not of itself invalid. 31. Thus, the parties agreed and intended that, if this type of problem arose and one section were declared invalid, all remaining portions of the ordinance would remain in effect. Thus, the best way to match the parties' intent is to enforce the severability provision, reforming the Franchise Ordinances to require the payment of a franchise fee of 6% with no improper offset. 8 WEISS SEROTA HELFMAN PASTORIZA& GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 33312 • TEL. (954)763-4242 FAX (954)764-7770 32. As a result of this provision, if the Court declares the Tax Exemption Language to be ultra wires and invalid, it should also.provide that the remaining portions of Section 6 and the remaining sections of the Franchise Ordinances remain in full force and effect. This is what the parties agreed would happen if any words or phrases were declared invalid. FPL's Continued Insistence to Take Advantage of the Improper Tax Exemption 33. Some of the Cities have attempted, in good faith, to obtain FPL's consent to cease use of the improper tax exemption and to amend the Franchise Ordinances. FPL . has refused. 34. Accordingly, unless the Court grants the declaratory relief sought by this action, FPL will continue to be the only taxpayer in each of the Cities to enjoy what the Cities believ e to be an illegal ultra vires, and void indirect real and personal property tax �., exemption. WHEREFORE, the Cities respectfully demand judgment under Chapter 86, Florida Statutes, declaring that: (a) the Tax Exemption Language contained in Section 6 of the Franchise Ordinances constitutes an indirect tax exemption; (b) each of the Cities lacked and lacks the legal power to contract away, directly or indirectly, their ad valorem taxing power; 9 WEISS SEROTA HELFMAN PAS70RIZA & GUEDES, P.A. 3107 STIRL:NG ROAD, SUITE 300, FORT LAUDERDALE. FLORIDA 33312 • TEL. (954)763-4242 • FAX (954)764-7770 (c) the Tax Exemption Language contained in Section 6 of each of the Franchise Ordinances is therefore void, ultra vires and unenforceable under the Florida Constitution and applicable Florida law; (d) because of the severability provision, the remaining portions of Section 6 (other than the Tax Exemption Language) and all other Sections of the Franchise Ordinances remain in full force and effect, and (e) further granting to the Cities costs and any other relief the Court deems to be just and proper under the circumstances. COUNT,II: UNJUST ENRICHMENT/RESTITUTION 35. The Cities repeat and reallege paragraphs 1 through 9, 12 through 14 and 16 through 34, as if set forth at length herein. ® 36. This is an action for unjust enrichment/restitution to recover all sums improperly withheld by FPL from the Cities under the ultra vires and void Tax Exemption Language, and for such further relief that the Court deems just and proper. 37. FPL, and all other owners of real and personal property in each of the Cities, is legally obligated to pay to the Cities all real and personal property taxes levied by each of the Cities each year. 38. Each year, FPL has improperly offset a portion of the real and personal property taxes that it owed to each of the Cities, relying on the Tax Exemption Language contained in Section 6 of the Franchise Ordinances. 10 WEISS SEROTA HELFMAN PASTORIZA & GUEDES, P.A. 3107 STIRLING ROAD, SUITE 300, FORT LAUDERDALE, FLORIDA 33312 • TEL. (954)763-4242 FAX(954) 764-7770 39. FPL has been unjustly enriched at the expense of each of the Cities an amount equal to the full amount it has offset in taxes as a result of the Tax Exemption Language. FPL's enrichment has been at the direct expense of each of the Cities. WHEREFORE, the Cities respectfully demand judgment against defendant FPL in an amount to be determined at trial, and further granting to each of the Cities its costs incurred in this action and any other relief the Court deems to be just and proper under the circumstances. DATED: May 15, 2001 Respectfully submitted, WEISS SEROTA HELFMAN PASTORIZA & GUEDES, P.A. Counsel for Plaintiffs 3107 Stirling Road, Suite 300 Fort Lauderdale, FL 33312 Telephone: (954) 763-4242 Telecopier: (954) 764-7770 By: J 6ie Alan Cole Florida Bar No.: 767573 11 WEISS SEROTA H'ELFMAN PASTORIZA& GUEDES, P.A. 3107 STIRLING ROAD. SUITE 300, FORT LAUDERDALE, FLORIDA 33312 - TEL. (954)763-4242 • FAX(954) 7G4-7770 Mary01-02 05:30pm From-SH&D LLP 4 365 577 7001. T-d3u r.uio r-aai IN THE CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA CASENO. 01-008883 (03) CITY OF POMPANO BEACH,FLOK DA, et al., Plaintiffs, V. FLORIDA POWER&LIGHT COMPANY, a Florida corporation, Defendant. PLAINTIFF, CITY OF DANIA.BEACH'S NOTICE OF'VOLUN rARY DISMISSAL WITH PRE,ITJDXCE Plainta. City of Dania Beach,Florida,pursuant to Florida Rule Of Civil Procedure 1.420(a)(1),hereby voluntarily dismisses with prejudice the entirety of its action and all claims it has asserted herein against Defendant Florida Power&Light Company•' Dated-tlus day of March,2002. WEISS SEROTA HELFMAN PASTORIZA & GUEDES, P.A. Attorneys for Plaintiff, City of Dania Beach 3107 Stirling Road, Suite 300 Fort Lauderdale,Florida 33312 Telephone: (954) 763-4242 Telecopier: (954) 764-7770 By: Jamie Alan Cole Florida Bar No. 767573 ' This notice voluntarily dismmsses with prejudice the entire action and all claims filed herein by the City of Dania Beach,but does not affect the actions and claims filed herein by the ® other plaintiffs in this case. EXHIBIT N d d RELEASE AND WAIVER OF ALL CLAIMS KNOW ALL PERSONS BY THESE PRESENTS: That for value received and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the CITY OF DANIA BEACH ("CITY"), a Florida municipal corporation, does hereby, for itself and its agencies, subdivisions, departments, divisions, representatives; successors, assigns, officers, officials, agents and employees, their heirs, executors, administrators, personal representatives, successors and assigns, and any person or entity claiming by,.through or for or succeeding to the right of any of the foregoing (hereinafter sometimes,referred to as the "Releasor"),release, remise; acquit; satisfy; waive and forever discharge FLORIDA POWER & LIGHT COMPANY ("FPL"), a Florida corporation, its parents, subsidiaries, affiliates, directors, employees, officers, stockholders, agents, insurers, reinsurers, sureties, attorneys, successors and assigns, the heirs, executors, administrators, personal representatives, successors and assigns of any of the foregoing, and any person or entity acting for, by or through any of the foregoing (hereinafter referred to collectively as "Releasees") of and from any and all manner of actions, causes of action, suits, debts, costs, attorney's fees, sums of money, accounts,reckonings, bonds, bills, specialties, covenants, controversies, loss of services, obligations, liabilities, agreements, promises, variances, disputes, torts, trespasses, damages, property damage, losses, liens,judgments, executions, complaints, claims, counterclaims, cross-claims, injunctive relief and all demands whatsoever, in law or in equity, whether known or uriknown, whether liquidated, fixed or contingent, whether mature or not, whether disputed or undisputed, whether foreseen or unforeseen, whether foreseeable or not, and whether discoverable or not (hereinafter referred to collectively as "All Claims"), which Releasor EXHIBIT d D D ever had, now has or hereafter can, may or shall have, or might in the future have or claim to have, directly or indirectly, against Releasees: (1) on account of, in connection with or in any way arising out of or relating to that certain franchise agreement between FPL and the CITY, the terms of which are set forth in City of Dania Ordinance No. 173, passed and adopted June 13, 1978, and FPL's written acceptance thereof dated June 28, 1978 ("Current Franchise Agreement"), a true copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, including but not limited to All Claims relating in any way to the amount of franchise fees payable by FPL to the CITY under the Current Franchise Agreement, including without limitation All Claims relating to the amounts and revenues used to calculate and pay such franchise fees, including but not limited to All Claims that were or could have been asserted in that certain cause styled City of Pompano Beach. et al. v. Florida Power & Liaht Company, In the 17th Judicial Circuit in and for Broward County, Florida, Case No. 01-008883 (03) (such cause being hereinafter referred to as the "Lawsuit"), provided, however, that the claims released and waived under this subsection (1) do not include any claim CITY may have against FPL under Section 4 of the Current Franchise Agreement that accrued on or before the date of this Release And Waiver Of All Claims; and (2) All Claims relating in any way to the method of calculating the franchise fees payable by FPL to the CITY under the terms of the new franchise agreement agreed to by and between FPL and the CITY in consideration of the settlement of the Lawsuit, a copy of which is attached hereto as Exhibit "B" ("New Franchise Agreement"), including but not limited to All • Claims relating to which revenues are used to calculate the franchise fee under Section 5 of the -2- New Franchise Agreement, provided, however, that the claims released and waived under this subsection (2) do not include any claim that could not possibly have accrued until after the New Franchise Agreement goes into effect, such as a claim that the agreed upon method for calculating the franchise fee has,not been followed or that the amount of the,franchise fee has been calculated incorrectly under the agreed upon method. The undersigned represents and warrants that no claim which the Releasor has or might have had against Releasees has-been assigned or transferred to any other person or entity, and, to the maximum extent permitted bylaw, agrees:to indemnify,Releasees and hold Releasees .. harmless from any and all liability or expense resulting from the assignment or transfer of any such claims. The Releasor acknowledges and agrees that this release is given for the compromise of doubtful and disputed claims, that the payment made is not to be construed as an admission against interest or admission of liability on the part of Releasees as to any claim, demand, controversy, dispute, defense, cause of action, counterclaim, matter or thing alleged in the Lawsuit or mentioned herein and compromised and settled hereby, and that Releasees deny liability therefor and intend merely to avoid the costs of litigation. The Releasor acknowledges that it has read this Release And Waiver of All Claims and Imows its contents, that it has had the advice of counsel as to its meaning and intent, that it is executing this Release And Waiver of All Claims freely and voluntarily for the purposes expressed herein, that no promise, inducement or agreement not expressed herein has been made to it, and that the terms of this Release And Waiver of All Claims are contractual and not a mere recital. If any provision of this Release And Waiver of All Claims or the application thereof to any circumstance is void, invalid or unenforceable for any reason,the remainder hereof,or the application of such provision to circumstances other than those to which it is held void, invalid or unenforceable, shall not be affected thereby but shall remain in full force and effect, and each provision hereof shall be valid and enforced to the fullest and broadest extent permitted by law. IN WITNESS'WHEREOF,'the CITY OF DANIA BEACH has caused this Release And Waiver Of All Claims to be executed in its name and its seal to be affixed, by its proper and fully authorized representative, this day of March, 2002. ATTEST: CITY OF DANIA BEACH, a Florida municipal corporation By: City Cleric , City Manager (SEAL) APPROVED AS TO FORM AND LEGALITY: ,City Attorney -4- STATE OF FLORIDA SS: COUNTY OF BROWARD I HEREBY CERTIFY that on this date, before me, an officer duly authorized in this State and County to take acknowledgements; personally appeared , City Manager of the City of Dania Beach, a Florida municipal corporation, named in the foregoing Release And Waiver Of All Claims, who is personally known to me or who produced the following as identification , and that he acknowledged executing the foregoing Release And Waivert Of All Claims freely.and voluntarily.,in the presence of the City Clerk and City Attorney under authority duly vested in him by the City of Dania Beach and that the seal affixed is the true seal of the City of Dania Beach. ® WITNESS my hand and official seal in the County and State last aforementioned this day of March, 2002. (signature) Commission No. (print name) My Commission Expires: Notary Public 119 State of Florida -5- SUN- SENTINEL PUBLISHED DAILY NOTICE OF FORT LAUDERDALE, BROWARD COUNTY, FLORIDA BEFO EBLICITYARINO COMMIS- BOCA RATON, PALM BEACH COUNTY, FLORIDA CITTYN OF DANIA BEACH, FLORIDA REGARDING MIAMI, MIAMI DADE COUNTY, FLORIDA ADOPTION OF THE FOL- LOWING PROPOSED ORDI- NANCES NOTICE IS HEREBY GIVEN STATE OF FLORIDA that the Clty Commission of the City of Dania Beach, COUNTY OF BROWARD/PALM BEACH/MIAMI DADE (Florida, on March 26, BEFORE THE UNDERSIGNED AUTHORITY, PERSONALLY APPEARED soon thereatte mas the matter may be heard,will. &Oil /L conduct a public hearing] WHO, ON OATH, SAYS THAT in the City Commission HE/SHE IS A DULY AUTHORIZED REPRESENTATIVE OF THE CLASSIFIED Bea hhers City Hof he Dania all,100 West DEPARTMENT OF THE SUN-SENTINEL, DAILY NEWSPAPER PUBLISHED Dania Beach Boulevard, lorida to IN BROWARD/PALM BEACH/MIAMI DADE COUNTY, FLORIDA, AND.THAT THE consider' the Fproposed adoption of the following ATTACHED COPY OF ADVERTISEMENT, BEING A: Ordinances entitled: AN ORDINANCE OF THE CITY OF DANIA BEACH, ADMINISTRATION FLORIDA, PERTAINING TO CHAPTER 2 OF THE CITY CODE OF ORDINANCES, IN THE MATTER OF: WHICH CHAPTER IS ENTI- TLED -ADMINISTRATION'- AMENDING THE CODE OF Administration ORDINANCES,BY AMEND- ING SECTION 2-12, ENTI- TLED -ISSUANCE OF IN THE CIRCUIT COURT, WAS PUBLISHED IN SAID NEWSPAPER IN THE PROMISSORY OBLIGA- TIONS,' BY INCREASING ISSUES OF: THE TOTAL AMOUNT OF GENERAL SOLID PRINCI- PAL OBLIGATIONS OUT- STANDING. AT ANY ONE 3/15 FROM S3,000, 10813490 TO TIME 00,000.00;0 PRO- VIDING FOR CONFLICTS PROVIING AFFIANT FURTHER SAYS THAT THE SAID SUN-SENTINEL IS.A NEWSPAPER ANCE DFURTH RI,PROVED- PUBLISHED IN SAID BROWARD/PALM BEACH/MIAMI DADE COUNTY, FLORIDA, ING FOR AN EFFECTIVE DATE AND THAT THE SAID NEWSPAPER HAS HERETOFORE BEEN CONTINUOUSLY AN ORDINANCE of THE CITY OF DANIA BEACH , ® PUBLISHED IN SAID BROWARD/PALM BEACH/MIAMI DADE COUNTY, FLORIDA, FLORIDA GRANTING To EACH DAY,AND HAS BEEN ENTERED AS SECOND CLASS MATTER AT THE LIGHTFLORIDA POWER AND LIGHT COMPANY,ITS SUC- POST OFFICE IN FORT LAUDERDALE, IN SAID BROWARD COUNTY, FLORIDA, CESSORS AND ASSIGNS, FOR A PERIOD OF ONE YEAR NEXT PRECEDING THE FIRST PUBLICATION OF MPOSINCRIc PROVISIONS ATTACHED COPY OF ADVERTISEMENT;AND AFFIANT FURTHER SAYS THAT AND CONDITIONS ING TO SUCH FRANCHISE; HE/SHE HAS NEITHER PAID, NOR PROMISED,ANY PERSON, FIRM, OR PROVIDING FOR MONTHLY CORPORATION,ANY DISCOUNT, REBATE, COMMISSION, OR REFUND, FOR THE OFYDAN A BEACHMENTS TO : PRO I PURPOSE OF SECURING THIS ADVERTISEMENT FOR PUBLICATION IN SAID PROM FOR CONFLICTS- PROVIDING FOR SEVER- N�PE ANCE; FURTHER, PROVIDPROVID- ING FOR AN EFFECTIVE f/ DATE. (�(�� A cosy of these Proposed Ordinances are on file in (SIGNATURE Olz P FIANT) the Office of the city Clerk,City Hall, 100 West Dania Beach Boulevard, SWORN TO AND SUBSCRIBED BEFORE ME Dania Beach,Florida,and may be inspected by the ON: 15-March-2002 , A.D. public during normal working hours. Interested parties may ap- pear at the aforesaid meeting and be heard with respect to the pro- posed. Any person who (SIG ATURE OF NOTARY PUBLIC) decides to appeal any de- ``p++�tj"r�,, Barbara Strickla li cision made by the City Commi�gaion#CC 94-4074 Commission with respect: to any matter considered •: 2004 at this hearing will need a y�?, ra: J�� 4' record of the proceedings �9j�;•+... � Bonded ThP1 FLU+� �es-:c Bonding Co,inc and for such purpose may need to ensure that a ver- batim record of the pro- (NAME OF NOTARY,TYPED, PRINTED, 0 STAMPED) reedings.is made, which record includes the testi- mony and evidence upon which the appeal is to be PERSONALLY KNOWN OR basIn eccordance with the American with Disabilities ® PRODUCED IDENTIFICATION Act, persons needing as- sistance to participate in any of the proceedings) should contact Charlene; Johnson, City Clerk, 1001 'west Dania Beach Boule-i vard,Dania Beach,Floridai 33004. (954) 924-3622 at' least 48 hours prior to the meeting. /s/Charlene Johnson City Clerk March 15,2002 CITY OF DANIA BEACH MEMORANDUM TO: Mayor and Commissioners cc: Ivan Pato, City Manager FROM: Tom Ansbro, City.Attorney DATE: March 21, 2002 RE: Ordinance Adopting Proposed New Florida Power and Light Franchise Agreement; Comparison of Proposed and Current Agreements The proposed new FP&L Franchise Agreement has been agendaed for City Commission adoption by ordinance (second reading) for the March 26, 2002 meeting. Two modifications have been made to the ordinance since its first reading. The "severability" provision has been revised to expressly state that if any provision in the Agreement is found to be invalid, illegal, void or of no effect (by a court), then the entire ordinance shall be considered null, void and of no further force or effect. It is the position of FP&L that the new Agreement provisions are so "interdependent" that, if a court were to effectively remove one or more provisions because of invalidity or illegality, it would affect the entire ordinance and Franchise Agreement. The other change is merely a minor typographical revision (change "In" to "in" in one sentence as requested by FP&L attorneys). The current thirty (30) year Franchise Agreement was adopted by ordinance on June 13, 1978 (Ordinance No. 173) and is set to expire in 2008. The new Agreement also provides for a term of thirty (30) years, expiring in 2032. Both Agreements give FP&L a "non- exclusive" right to supply electricity, and each contains an agreement by the City that it will not compete with the Company by engaging in the business of distribution or sale of electricity. In the proposed new Agreement, a number of recitations are made about the factual • background of the proposed settlement of the pending litigation between the Company and the City (in the first three (3) pages of the Agreement, which contain the recitals or "WHEREAS" clauses); the Agreement currently in effect does not, of course have corresponding provisions. 'Mayor and Commissioners March 21, 2002 Page 2 In nearly all other respects, the proposed Agreement is substantially similar to the 1978 Agreement. The most significant change in the Agreement is the provision specifying that the current franchise fee paid to the City of 6% of the company's revenues will be altered to a figure of 5.9%, but no "offset" for ad valorem taxes (real estate or property taxes) will be applied against that franchise fee payment. That provision is included as a direct result of the ` claims by the City in the pending lawsuit, and will result in substantial additional revenue to the City. The new Agreement also contains new provisions which recognize that if a competitor of FP&L seeks to sell electric power to the City, the City will afford FP&L an opportunity to "meet or beat" the competitor's offer. If FP&L does not do so, the City is free to purchase power from the competitor, and the Agreement still remains in effect. Another new provision specifies that if the City gives a competitor a franchise that FP&L finds to contain terms more favorable than those in the new proposed Agreement, then FP&L may terminate its franchise with the City. A similar provision is also included within the new Agreement, allowing for termination by the Company if the.United States government, State of Florida or any of their respective agencies allow a competitor to provide service in the City which puts the Company at a "competitive disadvantage". In that event, unless terms are negotiated with such competitor within ninety (90) days from the date FP&L expresses its intent to terminate because of the anticipated competition and disadvantage, and matters cannot be rectified to ® address this type of "competitive disadvantage", then the Company could terminate the Agreement. The new Agreement also provides the City with the right to audit the Company's records; the current Agreement does not contain such a provision. Lastly, the current franchise contains the standard "severance" or "severability" clause which allows for the franchise Agreement to remain intact even if a court decides that a portion of the Agreement is illegal or invalid. As mentioned above, the new Agreement has a provision which would render the entire Agreement void if a part of it were declared to be illegal, invalid or of no effect. As mentioned above, other provisions, such as indemnification of the City for the Company's actions and restoration of a work site after excavation, are substantially the same in both Agreements. This is now ready for Commission consideration and adoption at the March 26, 2002 City Commission meeting. TJA:slw Attachment ACCEPTANCE OF ELECTRIC FRANCHISE ORDINANCE NO. 2002 - 013 BY FLORIDA POWER & LIGHT COMPANY City of Dania Beach Dania Beach, Florida March 29, 2002 Florida Power & Light Company does hereby accept the electric franchise in the City of Dania Beach, Florida, granted by Ordinance No. 2002 - 013, being: "AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE; IMPOSING PROVISIONS AND CONDITIONS RELATING TO SUCH FRANCHISE; PROVIDING FOR MONTHLY PAYMENTS TO THE CITY OF DANIA BEACH; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE." • which was passed and adopted on March 26, 2002. This instrument is filed with the City Clerk of the City of Dania Beach, Florida, in accordance with the provisions of Section 15 of said Ordinance, to become effective on March 29, 2002 on condition that the City of Dania Beach shall have filed and served prior to March 29, 2002 the Notice of Voluntary Dismissal With Prejudice described in said section. FLORIDA P ' E & LIGHT COMPANY By ice Preside ATTEST: C:51sistant Secretary I HEREBY ACKNOWLEDGE receipt of the above Acceptance of Electric Franchise Ordinance No. 2002-013 by Florida Power & Light Company, and certify that I have filed the same for record in the permanent files and records of the City of Dania Beach, Florida, on this day of March, 2002. City Cler o the City of Dania Be ch, Florida