AGENDA MEMORANDUM

 

 

Meeting Date:           August 9, 2010

 

From:                          Jerry Boop, Finance Director, CPA, CGFO

 

Subject:                      Resolution authorizing execution of an agreement with TD Bank, NA to provide certain banking services in conjunction with the City's not to exceed $20.0 million Electric System Revenue Note, Series 2010 to finance the City's Capital Improvements to the Electric System.

 

 

Staff Recommendation:

Staff recommends authorization of the banking services agreement with TD Bank, NA.

 

Analysis:

As previously disclosed to the Commission at its regular meeting of July 26, 2010 the Electric Utility is required to maintain a deposit with TD Bank, NA an amount equal to one year of Maximum Annual Debt Service, (MADS) totaling $1,200,000.  TD Bank, NA is a qualified public depository pursuant to Chapter 280, Florida Statutes, otherwise known as the Florida Security for Public Deposits Act. As such, TD Bank, NA is authorized to receive public deposits as defined in Subsection 280.02(13), Florida Statutes.   When public deposits are made in accordance with this chapter, there shall be protection from loss to public depositors, as defined in s. 280.02, in the absence of negligence, malfeasance, misfeasance, or nonfeasance on the part of the public depositor or on the part of his or her agents or employees.  The Finance Department will be working with the City’s Investment Advisor, Julie Hughes of Davidson Fixed Income Management, (DFIM) as to the best investment vehicle to use.

 

Options:

1.  Authorize execution of an agreement with TD Bank, NA; Or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

There will be a transfer of $1,200,000 from the Electric Utility’s working cash operating account to TD Bank, NA.  No banking fees are associated with this account. 

 

 

 

 

 

Submission Date and Time:    8/5/2010 4:35 PM____

 

Department: ___Finance____________

Prepared by:  __Jerry Boop_________                     

Attachments:         Yes_x__   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head _JB_____

 

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 EXECUTION OF AN AGREEMENT WITH TD BANK, NA TO PROVIDE CERTAIN BANKING SERVICES IN CONJUNCTION WITH THE CITY’S NOT TO EXCEED $20.0 MILLION ELECTRIC SYSTEM REVENUE NOTE, SERIES 2010 TO FINANCE THE CITY'S CAPITAL IMPROVEMENTS TO THE ELECTRIC SYSTEM; AND PROVIDING AN EFFECTIVE DATE.

 

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

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement  with TD Bank, NA whose address is 2333 Ponce De Leon Blvd., Suite 303, Coral Gables, FL 33134,  for  certain banking services.

 

             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 9th day of August 2010.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk