AGENDA MEMORANDUM

 

 

Meeting Date:           September 12, 2011

 

From:                          Jack Rogers, Gas Director

 

Subject:                       Resolution authorizing the Eighth Amendment of the Depository Trust Agreement to conform the City’s depository account for Florida Gas Utility.

 

 

Staff Recommendation:

Staff recommends approval of the Eighth 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.

 

 

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 $441,000.  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 $364,000. The City of Leesburg will receive a refund of $77,000

 

Options:

1.  Approve the Eighth Amendment of the Depository Trust Agreement; or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

$77,000 will be refunded to the gas fund.

 

Submission Date and Time:    9/8/2011 7:34 PM____

 

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 ________

 

Finance  Dept. _______JB_________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _042-0000-159-2200___

 

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  EIGHTH AMENDMENT OF

DEPOSITORY  TRUST  AGREEMENT, WHICH IS NECESSARY

TO CONFORM THE CITY’S DEPOSITORYACCOUNT,  MAINTAINED FOR THE BENEFIT OF FLORIDA GAS UTILITY, TO THE LATEST REQUIREMENTS  FOR THE AMOUNT  OF THE DEPOSIT TO BE HELD IN ESCROW AND TO PERMIT A REFUND OF A PORTION OF THE DEPOSIT CURRENTLY HELD IN THE ESCROW ACCOUNT; 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 Utility requires that the City maintain a depository trust account with SunTrust Bank, as Trustee, which is currently in the amount of $441,000.00; 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 the City may decrease the deposit to $364,000.00; 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, and to obtain a refund of a portion of the deposit currently being held in the depository trust account.

 

NOW, THEREFORE, 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 Eighth Amendment to the Depository Trust Agreement with SunTrust Bank, 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 $364,000.00, and to receive a refund in the amount of $77,000 that is currently held in the depository trust account.

 


THIS RESOLUTION shall become effective upon its passage  and adoption according to

law.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a

regular meeting held the _12th____ day of __September_____, 2011.