Lake Apopka Natural Gas District was established pursuant to the provisions of Chapter 59-556, Laws of Florida, Acts of 1959, which became law on June 20, 1959, to provide natural gas within its defined area of service. The District operates under a commission form of government with the commissioners being appointed by the District's member municipalities of Apopka, Winter Garden and Clermont.

THE BEGINNING

Officials of Apopka, Clermont and Winter Garden and certain investment bankers and engineers, recognizing the great growth potential of West Orange and East Lake Counties, began in 1957 to study the possibility of bringing natural gas into the area. The proposed natural gas system was to be built for the comfort and convenience of the public and to add to the general economic growth of the communities. Because of the relatively low earnings potential, the project was not attractive to private enterprise investors. The area to be served had not been sufficiently developed economically or population-wise in the late 1950's to the extent that the project did not contain considerable risk to the investors. The main factors under consideration were the relatively large investment per customer and the necessity of competitive rates in relation to other forms of energy. In order to attract investors, a tax free body was proposed wherein authority would be vested to finance, construct and operate the proposed natural gas project.

LEGISLATIVE PETITION AND ESTABLISHMENT

Each of the three member municipalities entered into a 30-year franchise agreement granting the District the right to construct and operate a gas distribution system within the confines of the respective member municipalities. Further, the franchise agreements provided for the payment of an annual fee equal to 6% of the gross revenue received by the District from gas sales within a specific member municipality's boundaries excluding income from sale to interruptible (excess gas at reduced rates) customers. In addition to the franchise granted by member municipalities, the district was also granted franchises by non-member municipalities within the area it operates. These include Montverde, Mascotte, Minneola, Groveland and Windermere (and now Ocoee as well). These franchises also provide for an annual payment of 6% as outlined for the member municipalities. In addition to the incorporated municipalities, the District provides service for customers located outside the corporate limits of various municipalities.

Immediately after the appointment of the original board, they retained the engineering firm of Harry Hendon & Associates to design the system, estimate its cost and arrange for construction and a gas supply. After the engineering work and the contractual arrangements with Florida Gas Transmission Company for a gas supply had been completed, the financing stage of the project began. A fiscal agency contract was signed with Leedy, Wheeler and Allerman and preparations were made for the sale of $3,900,000 Principal Amount Natural Gas Bonds. These bonds were to bear 5¼% interest, with the principal amount to be retired over a period of 35 years beginning in 1968. These bonds were secured by a bond resolution approved by the District's original board of directors on October 17, 1962, on authority granted by the legislature of the State of Florida. There were a number of delays before the financing was completed. Subsequently, upon sale of the bonds in late 1962, the bond resolution and documents of authority constituted a legal and binding contract between the District and owners of the bonds.

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