Item No: 4.C.1
Meeting Date: September
10, 2012
From: Jack
Rogers, Gas Director
Subject: Resolution
authorizing the Ninth Amendment to the Depository Trust Agreement to conform
the City’s depository account for Florida Gas Utility.
Staff Recommendation:
Staff
recommends approval of the Ninth 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
$364,000. 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 $256,000. The
City of Leesburg will receive a refund of $108,000.
Options:
1. Approve the Ninth Amendment of the Depository
Trust Agreement; or
2.
Such alternative action as the
Commission may deem appropriate
Fiscal Impact:
The
Gas department will receive $108,000 which will be added to a restricted account
within the gas fund.
Submission Date and Time: 9/6/2012 11:42 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. __________________ Deputy
C.M. ___________________ Submitted
by: City Manager ___________________
|
Account
No.042-0000-159.22-10 ___________ Project
No. ___________________ WF No.
______________________ Budget ______________________ Available
_____________________ |
RESOLUTION NO._______________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG,
FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE NINTH 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; 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 $364,000.00; 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 $256,000.00; 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 Ninth 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 $256,000.00, and to receive a
refund in the amount of $108,000 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 _10th____ day of __September___, 2012.
__________________________
Mayor
ATTEST:
__________________________
City Clerk