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City Commission <br />Special Workshop Presentations <br />Investor Owned Electrical Providers <br />Page 26 <br /> <br />that would cover those areas. <br /> <br />PRONOVOST: Commissioner Doerner <br /> <br />DOERNER: And to follow up a little, taking a little bit different turn because I know that <br />Longwood is going to get a much better deal than we are. They have good negotiators. But we <br />keep talking about a thirty-year deal and this is where the issues that was brought up last night in <br />Longwood by OUC and some of the other municipality utilities, that there is no fixed thirty years. <br />Thirty years is really kind of arbitrary, it is quite long actually. <br /> <br />RALEY: Actually Commissioner Doerner, we have requested new franchises for longer than <br />thirty years because cities enjoy the guaranteed revenue stream that a franchise can provide them. <br />A lot of debt holders also require the city to have long term franchises, again for that revenue <br />stream protection. We have offered shorter franchises. We have signed a shorter franchise just <br />recently, a ten-year franchise deal, it did not include the purchase provision. That is certainly <br />something that we are willing to discuss with the City. We have offered a convertible, which is a <br />ten-year and if you choose to go to a thirty or the purchase, that is available. Lake Mary is <br />evaluating that franchise now. So I think we have options there. What we don't want to do is <br />enter into a short term agreement, just like you wouldn't want to put your water system up for <br />sale every five years, or put your water system at risk every five years. Mr. Segreto and I have <br />gone through this, it is not in the best interest of the owner or the service providers, so we <br />wouldn't want to do that and I don't think you would either. So that is why we want that <br />purchase option on a longer term, but we have flexibility in those franchise terms. <br /> <br />[}OERNER: Ok, because one of the problems is that this has been very distasteful and I, you <br />know, if things had gone well and the process had been good, perhaps we wouldn't be looking at, <br />assuming that we do go back with Florida Power, Progress Energy, we have to be very careful to <br />make sure that we are not in a bad position. <br /> <br />RALEY: Commissioner Doerner, I would certainly hope that it is not that if you do but when <br />you do and when we do and we enter into that agreement, so I anticipate that we can do that and I <br />look forward to that. <br /> <br />PRONOVOST: Final question with regard, touching on some of the things that you were <br />talking about Mr. Segreto and others, and that is with regard to the franchise fees. As you know, <br />not necessarily your doing, but early on Florida Power, Progress Energy now, indicated that not <br />only the purchase option will not be in any future agreement, but also did not have to live up to <br />that purchase option in the existing agreement. That was kind of standard throughout, not just in <br /> <br /> <br />