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Ord. No. 22-90-1462ORDINANCE NO.22-90-1462 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA ACKNOWLEDGING AND APPROVING THE TRANSFER OF THE FRANCHISE OF ELIZABETHTOWN GAS COMPANY'S RIGHTS THEREUNDER TO NUI CORPORATION PURSUANT TO A NATURAL GAS FRANCHISE FROM THE CITY OF SOUTH MIAMI,FLORIDA;PROVIDING FOR SEVERABILITY;PROVIDING FOR ORDINANCES IN CONFLICT;AND PROVIDING AN EFFECTIVE DATE. WHEREAS,the City ofSouthMiami,Florida (the"City")by Ordinance Nos.468,478and526grantedanaturalgasfranchise (the"Franchise)toCityGasCompanyofFlorida("CityGas"),a Florida Corporation ;and WHEREAS,by Ordinance Nos.526-A and 526-B,the City approved the merger of City Gas,a division of Elizabethtown Gas Company ("Elizabethtown"),aNew Jersey corporation anda wholly owned subsidiary ofNUI Corporation ("NUI"),a public utility holding company alsobasedinNewJersey,into Elizabethtown;and WHEREAS,pursuant to the Franchise,the approval ofa transfer of rights underthe Franchise mustbe given by Ordinance;and WHEREAS,the City desires to reaffirm and ratify its prior approval of the merger of City Gas into Elizabethtown and to grant its approval of the transfer of the Franchise or Elizabethtown*s rights thereunder,to its parent,NUI,by Ordinance; NOW,THEREFORE,BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA: Section 1.The City hereby reaffirms and ratifies the City's prior approval of the merger of City Gas into Elizabethtown. Section 2.The City hereby acknowledges that,asofthe date hereof,the Franchise is in full force and effect and is heldandownedby Elizabethtown andthe rights and privileges granted thereunder inuretothe benefit of Elizabethtown,its successors and assigns. Section 3.The City hereby approves any transfer of the Franchise or rights thereunder to NUI,effective upon the consummation of the meraer of Elizabethtown into NUI. Section 4.In the event the meraer is not effected,for any reason,the terms and conditions of the Franchise shall remain in full force and effect as to the franchisee, Elizabethtown. Section 5.If any section,clause,sentence,or phrase of this Ordinance is held tobe invalid or unconstitutional by any court of competent jurisdiction,then said holding shall inno way affect the validity of the remaining portions of this Ord inance. Section 6.All Ordinances or parts of Ordinances in conflict herewith be,and the same hereby are,repealed. Section 7.This Ordinance shall take effect immediately at the time of its passage. PASSED AND ADOPTED this6thdayof November ,1990. APPROVED: ATTES MAYOR L~' READ AND APPROVED AS TO FORM CITY ATTORNEY CITY GAS COMPANY OF FLORIDA 955 EAST 25th STREET /HIALEAH.FLORIDA 33013-3498 /[305]691-8710 /FAX [305]691-7112 August 13,1990 Martin Berg,City Attorney City of South Miami 6130 Sunset Drive Miami,Florida 33143 Dear Mr.Berg: Asyouare aware,our company,CityGasCompanyof Florida ("City Gas")hasa Natural Gas franchise withtheCity ofSouthMiami(the"City")effective through September 18,1992 (the "Franchise").TheFranchisewasgrantedunderyour Ordinance Nos.468,478,526on September 18,1962.In July 1988,CityGasmergedwith Elizabethtown GasCompany ("ETG"),a wholly owned subsidiary of NUI Corporation ("NUI"),a public utility holding company based inNew Jersey.The merger ofCity Gas,adivisionof ETG,intoETGwasapprovedbyyourOrdinance Nos.526-A and 526-B on April 5 and September 6,1988, respectively.Wehavebeen informed thatETGisexpectedto mergewithits parent,NUI,bytheendofNovember 1990,but thatallapprovalsmustbeobtainedbeforeSeptember 30,1990. The Franchise requires approval bythe City by ordinance in the event the Franchise or any rights under the Franchise are "transferred".Under Florida law,ETG's interest in the Franchise will automatically vest in NUI upon the merger.Ratherthandebatewhetheramergerconstitutesa "transfer"forpurposesofthe Franchise,weherebyrequestthat theCityapproveany"transfer"oftheFranchisewhichmay result,effective upon the consummation ofthe merger ofETG into NUI./The Franchise also requires that written notice of the transfer be given tothe City Clerk 60days before the transfer./Accordingly,by means ofa copy of this letter we herebynotifytheCityClerkofanytransferwhichmay result. All the terms and conditions of the Franchise will remain the sameand continue through the expiration date.The merger of ETGintoNUIisnot expected tochangethe services provided under the Franchise.City Gaswill retain itsname,its management,andwillcontinuetooperateasithasforthepast 40 years. Pleaseplace City Gasontheagendaforreviewbythe City in order to obtain the City's approval as soon as possible.Weenclosea draft ordinance for approval bythe An MEff Company Mr.Martin Berg August 13,1990 Page -2- City upon following the necessary procedures for passage of the ordinance.Duetotimerestrictionsitisveryimportantthat City Gas be put on the agenda even though the enclosed ordinance may need to be changed later.Your immediate attention to this request will be appreciated.Do not hesitate to call if you have any questions or need any further information. Very truly yours, CITY GAS g6mPANY OF FLORIDA MTC/1137 Enclosure cc:City Clerk CERTIFIED MAIL #P 900 395 201 RETURN RECEIPT REQUESTED Langer \ residentl^)