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Commission adopts 30‑year natural‑gas franchise with Florida Public Utilities, codifies 6% fee and new audit rights
Summary
The commission adopted Ordinance 51‑48‑25 on second reading to grant Florida Public Utilities a 30‑year nonexclusive franchise, set franchise fees at 6% of gross revenue (no credit for ad valorem/tangible taxes), and add audit and penalty provisions to address prior disputes.
City Administrator Faye Johnson and staff reviewed the city’s expired 1989 franchise ordinance and the multi‑year dispute with Florida Public Utilities (FPU) over whether ad valorem and tangible taxes should reduce the franchise fee. The proposed ordinance replaces the expired ordinance, grants a 30‑year nonexclusive franchise with a 10‑year renewal option, and sets a flat franchise payment equal to 6% of FPU’s gross revenue without credit for ad valorem/tangible taxes.
Johnson said staff added auditing rights, an annual backup documentation requirement, and penalties for late or improper payments (a 12% late penalty and a 15% penalty if FPU is found to have underpaid). Staff noted the city has not collected consistent franchise fees in the intervening years and is working to obtain bank records to resolve a dispute over past payments; the city projects approximately $150,000 would be owed for the upcoming quarter if the ordinance takes effect. The ordinance passed unanimously.
