AGENDA MEMORANDUM

Meeting Date:           June 27, 2011

From:                          Paul Kalv, Electric Director

Subject:                      Resolution  authorizing  an Electric Franchise Agreement with Sumter Electric Cooperative, Inc. (SECO)

Staff Recommendation:

Staff Recommends approval of the Electric Franchise Agreement with Sumter Electric Cooperative, Inc.

Analysis:

Leesburg’s current electric franchise with SECO was effective January 14, 2008 and will expire June 30, 2011.  Leesburg Staff has reviewed the proposed non-exclusive franchise agreement, which among numerous other provisions, gives SECO permission to occupy Rights-of-Way in the City of Leesburg for the purpose of providing electric service from the date of execution through August 1, 2020.  In return, Leesburg will receive a monthly franchise amount which will equal six percent (6%) of SECO’s base revenues collected from customers within the corporate limits of the City of Leesburg.

Options:

1.  Approve the Electric Franchise Agreement, or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Approval of the franchise agreement will provide for continuation of SECO’s franchise payment to Leesburg.  Franchise payments from SECO are anticipated to total $46,144.29 for the 12 months ending May, 2011.

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. ______DD___________                                          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 ELECTRIC FRANCHISE 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 Electric Franchise 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 adoption.

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