Clearwater council advances 30‑year Duke Energy franchise after public debate over municipal power

The Clearwater City Council unanimously approved on first reading an ordinance to grant Duke Energy Florida LLC a 30‑year electric franchise, moving the ordinance to a second reading after extensive public comment and council debate.

The ordinance (No. 9929‑26) was read into the record and council heard more than 20 public speakers during an extended public‑comment period. Brian Unks, speaking on behalf of Duke Energy, framed the agreement as a continuation and improvement of a long‑standing relationship and thanked the council and staff for the negotiation process. “We’re here really mostly on behalf of the Duke Energy team, our citizens of Clearwater who happen to work for Duke Energy and live in the city of Clearwater,” Unks said.

Dozens of residents opposed the franchise term and urged the council to consider municipal ownership. Jorge Vasquez and multiple other speakers cited the city’s feasibility study and an independent appraisal that they said show potential consumer savings of 10–30 percent under a municipal utility. “We have the opportunity today to do something that is incredible for the locals here,” Vasquez told the council.

Council members framed the decision as weighing potential long‑term savings from municipalization against financial, legal and operational risks. Council Member David Albritton asked detailed questions about staffing, specialized training, hurricane restoration capacity and the cost and timeline of eminent‑domain litigation. “If litigation delayed operations for 5 or 6 years, what effect would that inflation and rising operational costs have on electric rates?” he asked.

Staff summarized the memorandum of understanding (MOU) that accompanies the franchise proposal and described several investments Duke would make if the MOU is executed: a 6 percent franchise fee to the city, $20,000 annually for a five‑year community action plan, five $30,000 installments for a downtown retail strategy, six annual donations of $100,000 to support infrastructure resiliency, five $20,000 installments for North Greenwood CRA economic development, annual GIS updates, and naming‑rights and sponsorship support for park improvements. Assistant City Manager Al Battle told council the MOU also includes coordination on site‑readiness reviews, continued use of certain Duke‑adjacent property for parking, and annual Duke presentations to council on resiliency plans.

Supporters of the MOU and the franchise stressed continuity and risk management. Council Member Mike Menino and other members said the feasibility study produced useful information but that the city faces uncertain revenue risks, including a possible statewide property‑tax referendum, and that the MOU provides tangible community benefits while preserving service continuity.

After deliberation the council voted to approve the ordinance on first reading and send it to a second reading; the mayor announced the vote was unanimous. The city will consider the ordinance again at the scheduled second reading before making a final decision.

What happens next: Council approved the ordinance on first reading; the MOU itself was discussed but not adopted at the meeting. The council will take a final vote at the second reading, after which any executed MOU and franchise agreement would be posted in accordance with city procedures.