Authorizing Negotiation of Electric Franchise - City of New Smyrna Beach - 02-08-1946
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RESOLUT!ON
The Town Council of Edgewater has received and duly considered
the Resolution of the City Commission of New Smyrna Beach adopted
December 13, 1945. It requests a twenty year franchise ~o fur-
nish electricity to the inhabitants of Edgewater, and states that
UWithout such agreement, or franchise, neither the Town of Edge-
water nor its residents, nor the City of New Smyrna Beach, is
obligated to the other in any respect whatever for the delivery
or issuance of electric current.M
~ter due consideration and deliberation, the Town Council de-
clines to grant a franchise to New Smyrna Beach for the follow-
ing reasons:
1. The electric service heretofore furnished by the
City of New Smyrna Beach to the Town of Edgewater has
been woefully inadequate. It has been constantly inter-
rupted for protracted periods of time and the voltage
during the time that electricity is furnished is too low,
resulting in poor lighting and damage and destruction
of countless motors and electrical appliances.
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Moreover, the policy of New Smyrna Beach seems to
be to deny responsibility for .damages due to their
inability or failure to furnish service, for Sec. 22.19
of the New Smyrna Beach code provides:
ttThe City does not guarantee to furnish continu-
ous and uninterrupted service, and reserves the right
to shut off the supply of current without notice for
repairs or for -want of supply."
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2. The Town of Edgewater and its inhabitants
have been damaged and have lost thousands of
dollars, by reason of damage and destruction of
electrical appliances, loss of meat and other
perishable commodities, and loss of profits on
business which would and could have been done
had adequate electric service been furnished.
To enter into a franchise under a code provision
allowing the City to shut off the supply wi thout
notice, would perhaps make it impossible for the
inhabitants to recover for damages suffered in the
future.
3. The rates now being charged Edgewater and its
residents and those called for by the proposed
resolution are excessive and are much higher than
the rates of the Florida Power & Light Company in
1".. l this vi cini ty, as the following comparison of rates
shows:
TYPE OF SERVICE EXISTING RATE F.P.L.CO. RATE
Residential monthly use 50 KWH 6.12 3.53 Minimum 1.25
Residential monthly use 100 Kim 6.00 5.03 lit 1.::25
Resi~entia1 monthly use 300 KWH 12. 50 8.78 It 1.,25
Commercial monthly use 100 KWH 11.12 6.53 u 1.:25
Commercial monthly use 300 KWH 29.62 18.53 "It 1..25
Industrial monthly use 1000 KWH 40.00 32.60 (Minimum power
according to
Industrial monthly use 10,000 nm 400.00 220.38 connected Load)
Present residential minimum 2.00 1.-25
Present commercial minimum 5.00 1.25
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4. The Town o:f'Edgewater has called upon the Fl.orida
PovTer & Light Company to furnish it and the Edgewater
residents vnth electricity under the 30 year franchise
granted by Edgewater to the Florida Power & Light Com-
pany on June 15, 1926, and accepted by that company on
June 25, 1926, and will insist that it perform its duty
as rapidly as possible. The Florida Power & Light C~pany
prefers not to construct a distribution system parallel-
ing and duplicating the existing one, but if it did so
wi th or without a Court order, the value of the exist-
ing system would be reduced to a salvage value, irrespec-
tive of its ownership.
The distribution system lines located in and on the streets of
Edgewater are the property of the Town of Edgewater. No fran-
chise or other document authorized their being l.aid on Edgewater's
property, a nd the City of New Smyrna Beach has never cl.aimed owner-
ship by returning it as their property for taxation and paying taxes
thereon. The expense of service connections and extensions has
been paid by the individual. Edgewater customers to New Smyrna
Beach under Sec. 22.l.9 of the New Smyrna Beach code. However,
we understand New Smyrna Beach claims ownership of, or an interest
or equity in, the system. For the above reasons, we do not feel
that any such ownership, interest or equity exists; but, recog-
nizing that New Smyrna Beach claims it does, and in' a spirit of
amicably settling a matter which is the subject of dispute, the
Tovm of Edgevreter offers the City of New Smyrna Beach a sum of
money to be agreed upon, for a release and quitclaim of whatever
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title, interest or equity New Smyrna Beach feels it has in or
to said distribution system in the Town of Edgewater, based
upon the present depreciated value of the system.
It has come to our attention that the City Manager of New Smyrna
publicly referred to the .very serious condition of the power
plantn in a newspaper article appearing in the NEW SMYRNA BEACH
NEWS of January 31, 1946. The article appeals to the people of
New Smyrna Beach to curtail the use of electricity between 5:30
and 8:00 p.m., and states that if the necessary cooperation is
not given, various power lines now in use may have to be cut
off. We call attention to the fact that Edgewater has upon
numerous occasions been cut off in the past. It has also come
to our attention that the City of New Smyrna Beach has requested
the Florida Power & Light Company to furnish a supplementar,y
supply of electricity to New Smyrna Beach, and that the Florida
Power Be Light Company is willing to not only serve Edgewater
independently, but also to let New Smyrna Beach have an additional
400 KW of current (until the engine on order arrives and is
installed), thus lightening the load and increasing the capacity,
and in this way enabling New Smyrna Beach to furnish better service
to its people during the present critical emergency. We respect-
fully submit that this would be a present practical solution to
the problem which would be beneficial to both New Smyrna Beach
and Edgewater, and would enable the people of both communities
to get light and power when they want it, and would lessen the
danger of a general breakdown in the New Smyrna Beach plant.
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We cannot help but feel that neither the City Commission nor
the people of New Smyrna Beach want the people of Edgewater
or New Smyrna Beach to suffer further because of inadequate
power supply, or for New Smyrna Beach to get the reputation
of being a community unable to maintain an adequate and uninter-
r~ted supply of electricity, and still be unwilling to accept
an immediate practical sol utlon to the present unsatisfactory
situation.
We also feel that with the inevitable increase in electrical
appliances which the people of New Smyrna Beach proper will
obtain as soon as available, the load on the electric plant will
become larger and larger, and that the engine on order, when in-
stalled, will not be sufficient to take care of the increase in
prospect, -and that it will only result in further interruption
of current and further dissatisfaction for it to attempt to do so.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL 0]' THE TOWN
OF EDGEWATER, FLORIDA:
Section 1. That the Town Council of the Town of Edgewater,
Florida, does hereby decline to grant a franchise to the City
of New Smyrna Beach, Florida.
Section 2. That the Town Council of the Town of Edgewater,
,
Florida, stands ready to meet with the City Commission of the
City of New Smyrna Beach, Florida, to work out the practical
prOblems -involved. .
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Section 3. The To~n Council of the To~n of Edgewater is determined
to obtain electricity from the Florida Power & Light Company under
the existing franchise, and the Mayor and City Attorney are hereby
authorized to obtain same by negotiation, if possible, and by
litigation, if necessary.
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The above Resolution was read in ~ull and passed by the unani-
mous vote o~ the Tm~ Council o~ the Town of Edgewater, Florida,
at a special meeting on the 8th day o~ February, A. D. 1946.
Upon Motion duly made, seconded and unanimously carried, the
requirement of' reading said resolution upon second reading was
waived, and this Resolution ~s ordered put upon its ~inal
passage.
Passed by the unanimous vote o~ the Tmvn Council of the To\vn
of Edgewater, Florida, 8.t a special meeting of said Council
held this 8th day of February, A. D. 1946, and approved as
provided by law, the vote of said Council on roll call being
as follows:
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M Q -co~n
U~.-,&_
Councilnian
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Attest:
:t~. 7&~.
T Clerk
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Approved this 8th day of February, A. D. 1946.
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RE:,OLUTION
A REaOLUTIJN AUTHORIZI:.G T~:E NEGOTIATION
OF AN ELECTRIC FRANCHIJE..ITH THE TOWN
OF EDGEvJA TER, FLORI DA
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WHEREAS The City of New Jmyrna ~each has for many years
furnished electr1c current to the Town of Edgewater, Florida
through ita own transformer 11nos, and to residents of
said To.-:o, and
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WHEREA3 The former C1ty Commission of the City of New
3~yrna Beach requested the former Town Council of said
Town for.an Agreement, or Franch1se covering the further
supply of current to said Town and its residents, which such
request was never acted upon, and
~HEREA3 without ouch Agreement, or Franchise neither the
Town of Sdgewater nor its residents, nor the City of New
Smyrna Beach is obliga ted to the other in any respect l.,hat-
ever for the delivery or issuance of electric current, and
~'!HEREAS The Ci ty Comm1ssion of the C1 ty of Nc\</ Smyrna Beach
deems it to be to the mutual advantage of both municipalities
that a definite Franchise be agreed to covering future
supply of current by said Clty of New SmyrnaBeach,
NJi'i, THERSFORE, BE IT RE30L VED BY 1'l:m C1 TY COll,j.a .331 ON OF
TP8 CITY OF NEW SMyaNn B~ACH, FLORIDA:
1. That the City of New Smyrne Peach, FlJr1da, upon the
granting of such franchise, heroby'agrees and offers to
supply electric current to the Tawn of Edgewater and the
residen ts of said To','n as adequn teIy and eff1cien tly as
p:>B8i bIe, pr,)per prov1 alon for such supply having heretofore
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been made by sald City of New Smyrna Beach, for a term
of 20 years beginning on the let day of January, A.D. 1946.
2. That during the term of this proposal, if accepted, the
rates for the supply of said current and for all services
connected therewith shall be as follows: The same schedule
8S applicable from time to time to the City of New Smyrna
Beach during the term of s~id franchise.
BE IT FURTHER RE30I..VED That this offer shall immediately be
transmitted to the Town Council of Edgewater, and shall re-
~~in open until January lat, 1946/
The above and foregoing Resolution was introduced by
Com~18sioner Pierson who moved its adoption, which said
~otl~n was duly seconded by Commissioner Guntharp and
upon a roll call vote the aame was declared carried at
a Regular Meeting of the City Commission of the City of
New Smyrna Beach, Florida held this 13th day of December,
A. D. 1945.
The vote of said Commission upon said roll call being ss
Follows:
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Attest:
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Trezevant Holmes. Jr.
Ci ty Clerk-
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J. A. SAPP
Mayor-Commissioner
Yea
O. M. Poole
Commissioner
Yea
Geor~e O. Guntharp
Commissioner
Yea
Hugh K. Pierson
Commissioner
Yea
E. E. Altman
Commissioner
Yea
Authenticated as required by law this 13th day of December, A. D.
1945.
J. A. Sapp
Mayor