Agenda 02/11/2014 Item #11B 2/11/2014 11 .B.
EXECUTIVE SUMMARY
Recommendation to review the staff analysis of a proposed Natural Gas Franchise in Northeast
Collier County and provide direction.
OBJECTIVE: To provide information regarding staff's analysis of a proposed natural gas
utility franchise in the Immokalee area.
CONSIDERATION: Florida counties have the authority to establish franchise agreement
requirements and charge franchise fees to the various utilities that operate within their
unincorporated area. Franchise agreements ensure that counties will not compete against the
utility service providers and the fees collected from the utilities serve as a payment for the use of
the counties numerous rights-of-way and easements. These various utilities require access to
property in order to place transmission and distribution systems that serve their customers.
Collier County does not currently require or have any franchise agreements in place for any
electric or natural gas utility provider.
At the November 12, 2013 County Commission meeting, the Board heard a public petition
request for an award of an exclusive franchise agreement to provide natural gas services to the
greater Immokalee area. The Board directed the County Manager and the County Attorney to
review the potential for natural gas utility opportunities in the Immokalee area.
As a result of this direction, staff has met/had discussions with Mr. Burt Saunders, legal counsel
for the interested natural gas utility provider (ING), and John Knight and Doug Cates, ING
owners, to discuss their request to acquire an exclusive natural gas utility franchise in Northeast
Collier County, to include Immokalee, Ave Maria, and the surrounding agricultural areas (see
attached map). There are currently no known natural gas utility providers within this area.
ING is a privately held start-up company that is owned by Doug Cates and John Knight of All
American Energy Company, a pool management/marketing company for natural gas. Because
ING is a start-up company, the financial information that was provided by their counsel was
limited to a bank letter pertaining to the account balance of ING's single investor(attached), and
there was no individual financial data on ING, Cates, or Knight made available for staff review.
Staff has discussed this matter with the County Attorney's Office and the County's outside
counsel (Neighbors, Giblin, and Nickerson P.A.). Outside counsel has advised that the Board
may want to consider adoption of an enabling ordinance that would require natural gas utility
providers interested in providing service in Collier County to apply for a County Franchise
Agreement.
Should the Board desire to enter into a Natural Gas Utility Franchise Agreement with ING or any
other natural gas utility provider, staff recommends the following actions:
1. Adopt an enabling ordinance that would require a franchise agreement for this service
area.
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2/11/2014 11 .B.
2. Open a public comment period so that consumers and other interested parties could
express their concerns and comments.
3. Prepare a publicly advertised solicitation so other interested vendors, if any, can openly
compete to ensure our citizens get the best value, price, and assurances in the franchise
agreement.
4. Require the utility service provider to adhere to all requirements identified by the Florida
Public Service Commission, as defined within the Florida Administrative Code.
5. Require that the utility enter into a franchise agreement with the County, at the sole
discretion of the Board.
a. Under this franchise agreement, matters such as service area, exclusivity, system
expansion, franchise fees, term of agreement, bonding and insurance
requirements, record keeping,reports, and quality of service would be addressed.
FISCAL IMPACT: There is no fiscal impact with this request. However, should the Board
consider moving towards granting a Natural Gas Utility Franchise, further analysis regarding
customer base, potential franchise fees, County oversight, etc. will be required.
GROWTH MANAGEMENT IMPACT: There is no growth management impacts associated
with this item.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is
approved as to form and legality, and requires majority vote for action. It is the opinion of the
County Attorney that if the Board wishes to move forward with this matter, that given the
specific facts and circumstances, that it direct staff to negotiate a non-exclusive franchise. -JAK
RECOMMENDATION: That the Board direct the County Manager and the County Attorney
to prepare a natural gas utility enabling ordinance for Board review and deliberation.
Prepared By: Jamie French, Director, Operations and Regulatory Management
Growth Management Division, Planning and Regulation
Attachments: 1) Map
2) Letter from the Bank
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2/11/2014 11.B.
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.B.
Item Summary: Recommendation to review the staff analysis of a proposed Natural Gas
Franchise in Northeast Collier County and provide direction.
Meeting Date: 2/11/2014
Prepared By
Name: PuigJudy
Title: Operations Analyst, Community Development&Environmental Services
2/3/2014 4:31:07 PM
Submitted by
Title: Director-Operations Support, Operations&Regulatory Management
Name: FrenchJames
2/3/2014 4:31:08 PM
Approved By
Name: PuigJudy
Title: Operations Analyst, Community Development&Environmental Services
Date: 2/3/2014 4:54:41 PM
Name: MarcellaJeanne
Title: Executive Secretary, Transportation Planning
Date: 2/4/2014 8:00:47 AM
Name: FinnEd
Title: Management/Budget Analyst, Senior,Transportation Engineering&Construction Management
Date: 2/4/2014 10:33:25 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 2/4/2014 11:52:19 AM
Name: OchsLeo
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2/11/2014 11 .B.
Title: County Manager, County Managers Office
Date: 2/4/2014 4:54:05 PM
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2/11/2014 11 .B.
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C1t1eSBANK
January 13, 2014
Leo E. Ochs, Jr., County Manager
Collier County Manager's Office
3299 Tamiami Trail East, Suite 202
Naples, FL 34112-5746
Dear Mr. Ochs:
I have had an eight figure deposit relationship with Randall A. Bono and related
entities for the past two years. During this time frame, I provided financing for a
significant real estate project. That project was successful and the loan was handled
as agreed.
Based upon my past experience, the Mr. Bono has the financial capability to handle
your proposed project.
Sincerely,
Thomas G. Quale
Market President
2033 Main Street Suite 100 Sarasota,Florida 34237
Tel:(941)552- .s-bank.com
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