AGENDA MEMORANDUM

Meeting Date:           June 27, 2011

From:                          Paul Kalv, Electric Director

Subject:                      Resolution  authorizing  an Amended and Restated Territorial Agreement with Sumter Electric Cooperative, Inc. (SECO)

Staff Recommendation:

Staff recommends approval of the Amended and Restated Territorial Agreement with Sumter Electric Cooperative, Inc..

Analysis:

Electric utilities in Florida are required to maintain service territory agreements with neighboring electric utilities in an effort to reduce uneconomic duplication of service facilities.  The original Territorial Agreement between Leesburg and SECO, dated February 15, 1991, delineated the service boundary between the utilities and the Agreement was then submitted to the Florida Public Service Commission (FPSC) and became effective on the date approved by the FPSC.

With oversight from their respective legal counsel, Leesburg and SECO staff have reviewed the locations currently served by each utility and find it is in the best interests of both utilities to adjust the current service territory boundary to more accurately reflect currently served customers and to minimize the number of customers transferred from one utility to the other.

Changes resulting from the revised boundary are as follows:

1. Leesburg to retain 17 residential customers on Spring Lake Road north of CR 466A.

2. SECO to retain 13 residential customers on Harris Road

3. SECO to transfer 3 residential customers to Leesburg

a. Two customers on CR 466A (one location is currently inactive)

2. One customer on Radio Road

The attached map further clarifies the general locations of these customers.

Options:

1.  Approve the Amended and Restated Territorial Agreement, or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Leesburg will extend distribution facilities to serve the two active residential locations.  Line extension costs to serve new customers are included in the current budget.

Submission Date and Time:    6/22/2011 5:58 PM____

Department: __Electric_______________ Prepared by:  __Paul Kalv____________                      Attachments:         Yes__X__   No ______ Advertised:   ____Not Required __X____ Dates:   __________________________                      Attorney Review :       Yes_X__  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head __Paul Kalv_ 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 AN AMENDED AND RESTATED TERRITORIAL AGREEMENT WITH SUMTER ELECTRIC COOPERATIVE, INC. (SECO); 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 Amended and Restated Territorial Agreement with SUMTER ELECTRIC COOPERATIVE, INC., whose address is P.O. Box 301, Sumterville, FL 33585-0301.

 THAT this resolution shall become effective immediately upon execution.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the __27th___ day of _       June_____, 2011.

                                                                            __________________________

                                                                             Mayor

ATTEST:

____________________________________

City Clerk