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ITEM: ORDINANCE NO. 2024-24 (GRANTING AN ELECTRIC FRANCHISE TO FLORIDA POWER & LIGHT COMPANY)
AN ORDINANCE OF WELLINGTON, FLORIDA'S COUNCIL GRANTING TO FLORIDA POWER & LIGHT COMPANY, ITS SUCCESSORS AND ASSIGNS, AN ELECTRIC FRANCHISE, IMPOSING PROVISIONS AND CONDITIONS RELATING THERETO, PROVIDING FOR MONTHLY PAYMENTS TO THE VILLAGE OF WELLINGTON, PROVIDING FOR CONFLICT; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
REQUEST: Approval of Ordinance No. 2024-24 granting an electric franchise agreement to Florida Power & Light Company.
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EXPLANATION: On June 25, 1996 Wellington entered into a Franchise Agreement with FPL for the provision of electricity and other services to Wellington residents and businesses through the adoption of Ordinance No. 96-17. The term of the agreement was 30 years. In 1997, Wellington exercised its option to increase the franchise fee to be paid by FPL under the agreement to 5%. The current annual revenue to Wellington generated from the franchise agreement is $4.4 Million.
The agreement is set to expire in June, 2026 and in anticipation of that event, staff and FPL have negotiated a new franchise agreement, the term of which would extend for 30 years from the date of adoption. A summary of the changes in the new franchise agreement is attached.
Staff expects to receive an additional $900,000 in annual franchise fees under the new agreement, for a total annual income of $5.3 Million. Staff recommends approval of the new franchise agreement to provide for the payment of franchise fees to the Village of Wellington in exchange for the nonexclusive right and privilege of supplying electricity and other services within the Village of Wellington free of competition from the Village of Wellington, as set forth in the Ordinance.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: YES QUASI-JUDICIAL: NO
FIRST READING: YES SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: The New Franchise ...
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