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 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.
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.
1. Approve the Ninth Amendment of the Depository Trust Agreement; or
2. Such alternative action as the Commission may deem appropriate
The Gas department will receive $108,000 which will be added to a restricted account within the gas fund.
Prepared by: _______JR_______________
Attachments: Yes_x___ No ______
Advertised: ____Not Required __x____
Attorney Review : Yes_x__ No ____
Reviewed by: Dept. Head __JR____
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No.042-0000-159.22-10 ___________
Project No. ___________________
WF 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
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a
regular meeting held the _10th____ day of __September___, 2012.