AGENDA MEMORANDUM

 

 

Meeting Date:     September 14, 2009

 

From:                    Jack Rogers, Gas Director

 

Subject:                Resolution authorizing execution of the Seventh Amendment of the Depository Trust Agreement to conform the City’s depository account for Florida Gas Utility, and approving the Signing Parties to the Agreement

 

 

Staff Recommendation:

Staff recommends approval of the Seventh Amendment to the Depository Trust Agreement to conform the City’s depository account for Florida Gas Utility to the latest requirements for the amount to be held in escrow, and authorization of the addendum to the Agreement dated February 25, 2002, authorizing the Signing Parties to the Agreement.

 

 

Analysis:

The City of Leesburg obtains natural gas from Florida Gas Utility for resale to customers of the City.  As a condition of providing natural gas to the City of Leesburg, Florida Gas Utility requires the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently $782,000.00.  Based on periodic review of natural gas pricing, the volume of gas utilized by the City of Leesburg and other variable factors, Florida Gas Utility has now decreased the required amount in the fund to $441,000. The City of Leesburg will receive a refund of $341,000.  In addition, Sun Trust has requested that Leesburg execute the attached addendum authorizing the Signing Parties to the Agreement. 

 

 

 

Options:

1.  Approve the Seventh Amendment of the Depository Trust Agreement and the Signing Parties to the Agreement; Or

2.  Such alternative action as the Commission may deem appropriate

 

 

 

 

 

 

 

 

Fiscal Impact

$341,000 will be refunded to the gas fund.

 

 

 

Submission Date and Time:    9/10/2009 10:47 AM____

 

Department: ___Gas______________

Prepared by:  __JR__________________                     

Attachments:         Yes _X__   No ______

Advertised:   ____Not Required _X____                     

Dates:   __________________________                     

Attorney Review :       Yes_X__  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head __JR____

 

Finance  Dept. ____________JB____                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

RESOLUTION NO.___________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SEVENTH AMENDMENT OF THE DEPOSITORY TRUST AGREEMENT NECESSARY TO CONFORM THE CITY'S DEPOSITORY ACCOUNT, MAINTAINED FOR THE BENEFIT OF FLORIDA  GAS UTILITY, TO THE LATEST REQUIREMENTS FOR THE AMOUNT OF THE DEPOSIT TO BE HELD IN ESCROW; AUTHORIZING THE ADDENDUM TO THE AGREEMENT DATED FEBRUARY 25, 2002, AUTHORIZING THE SIGNING PARTIES TO THE AGREEMENT;  AND PROVIDING AN EFFECTIVE DATE.

 

Whereas, The City of Leesburg obtains natural gas from Florida Gas Utility for resale to customers of the city; and

 

Whereas, as a condition of providing natural gas to the City of Leesburg, Florida Gas Utilities requires the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently $782,000; and

 

Whereas, based on its periodic review of natural gas pricing, the volume of gas utilized by the City of Leesburg, and other variable factors, Florida Gas Utility has determined that it should require the city to decrease the deposit to $441,000.00; and

 

Whereas, it is in the best interest of the City of Leesburg, its citizens and natural gas customers, to comply with the decreased deposit requirement of Florida Gas Utility,

 

            BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG,                                                                                 FLORIDA:

 

That the Mayor and City Clerk are hereby authorized and directed to execute the Seventh Amendment to the Depository Trust Agreement with SunTrust Bank whose address is 300 South Orange Ave., Suite 1600,Orlando, FL, 32801, as Trustee, this Deposit Trust Agreement with Florida Gas Utility, and such other documents as are necessary to effectuate a decrease in the city’s deposit to the required level of $441,000.00, and to withdraw from the depository account the funds needed to achieve the required amount of deposit

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _14th____ day of __September____, 2009.

 

                                                                        

            ______________________________

                                                                                    Mayor

ATTEST:

 

__________________________________

City Clerk