Item No: 4.C.4

Meeting Date: November 26, 2012

From: Paul Kalv, Electric Director

Subject: Resolution authorizing a revised agreement with Florida Municipal Power Agency (FMPA) to represent Florida Cities in settlement discussion with Progress Energy Florida (PEF) regarding the Crystal River Unit 3 (CR3) nuclear power plant negotiations.

Staff Recommendation:

Staff recommends authorizing the revised agreement with Florida Municipal Power Agency (FMPA) to represent Florida Cities in settlement discussion with Progress Energy Florida (PEF) regarding the Crystal River Unit 3 nuclear power plant negotiations.

Analysis:

The Florida Municipal Power Agency (FMPA) is currently working on behalf of the City of Leesburg and other municipal owners (individually “Florida City” and collectively “Florida Cities”) of the Crystal River Unit 3 (CR3) nuclear power plant in negotiations with the operating owner Progress Energy Florida to support our non-operating owner interests in the ultimate decision to complete the repairs needed to bring the plant to full operation or decommission the facility.

At this point the attached Agreement between FMPA and Leesburg is required to continue these discussions with PEF.

The initial FMPA budget for these discussions has been set at $250,000 and Leesburg’s ownership share is 10.15% for a not to exceed amount of $25,375.

Attached are the following additional documents in support of this request:

· Memorandum from FMPA to Florida City representatives, dated October 17, 2012

· Exhibit A – First Amended Confidentiality Agreement with respect to Settlement Negotiations, dated September 10, 2012

· Exhibit B – Proposed member cost allocation for CR3 negotiations with Progress Energy

Options:

1. Authorize agreement as presented; or,

2. Such alternative action as the Commission may deem appropriate

Fiscal Impact:

The City of Leesburg’s portion should not to exceed $25,375.00. Funds are available in the current Electric budget.

Submission Date and Time: 11/21/2012 7:11 PM____

Department: _Electric___________ Prepared by: _Sabrina Hubbell___ 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. __________________ Deputy C.M. ___________________ Submitted by: City Manager ___________________

Account No. _041-1062-531-3110___ Project No. ___415880_________ 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 A REVISED AGREEMENT WITH FLORIDA MUNICIPAL POWER AGENCY TO REPRESENT FLORIDA CITIES IN SETTLEMENT DISCUSSIONS WITH PROGRESS ENERGY FLORIDA (PEF) REGARDING CRYSTAL RIVER UNIT 3 (CR3) NUCLEAR POWER PLANT NEGOTIATIONS; 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 agreement with Florida Municipal Power Agency, whose address is 8553 Commodity Circle, Orlando, Florida 32819-9002, for agreement to represent Florida Cities in settlement discussion with Progress Energy Florida.

THAT this resolution shall become effective immediately.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 26^th day of November, 2012.

__________________________

Mayor

ATTEST:

____________________________________

City Clerk