CC Minutes 05/12/2003 - Laserfiche WebLink

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City Commission Meeting May 12, 2003 Page 11 Staff Presentation: The City Manager presented an electric franchise ordinance and settlement agreement from Progress Energy Florida dated April 28, 2003. Based on direction from the City Commission, the staff has met with Progress Energy and and the following options regarding the ordinance and settlement agreement from Progress Energy are offered for Commission discussion: 1. Adopt Ordinance 03-1086 on first reading as submitted Adoption of Ordinance 03-1086 with modification of specific terms as proposed within the ordinance and/or settlement agreement. 3. Rejection of Ordinance 03-1086 and/or settlement agreement. Audience Input: 1. Mr. John Casselberry, 700 South Lost Lake Lane, Casselberry, Florida, expressed concern regarding the amount of money the City has expended on legal fees to preserve its right to purchase option. He also suggested a shorter franchise term, less than a thirty year agreement. He also expressed concerns about Progress Energy operating in a service area without a franchise agreement. In response to Mr. Casselberry's inquiry regarding Progress Energy operating in a service area without a franchise, the City Attorney stated that Progress Energy was a regulated industry and governed by the PSC requirements which would apply in this instance. 2. Mr. John Eckbert, Vice Mayor for the City of Winter Park, 1414 Grove Ten'ace, Winter Park, Florida, outlined the goals and objectives that the City of Winter Park had experienced in their process of exercising their purchase option with Progress Energy. Reliability, establish accountability mechanisms, including incentives for improving reliability as well as penalties for unreliable power. He said a major concern in the City of Winter Park was that the City would create a funding mechanism for under grounding power lines that would be owned by Progress Energy. Mr. Eckbert enumerated on the difficult process being undertaken in Winter Park on their negotiations with Progress Energy. He spoke in opposition to Casselberry entering in a franchise agreement stating that it would fail to provide the citizens of Casselberry a mechanism to hold its electric service provider accountable for a reliable standard. It would also fall short of allowing the powerful impact of a competitive bid process.