Item No: 4.C.7.
Meeting Date: July 8, 2013
From: Patrick Foster, Deputy Electric Director
Subject: Resolution authorizing additional funds to Florida Municipal Power Agency to represent Florida Cities in settlement discussions with Duke Energy Florida, Inc. (Progress Energy Florida, Inc.) regarding Crystal River Unit 3 Nuclear Power Plant negotiations.
Staff recommends authorizing additional funds to Florida Municipal Power Agency (FMPA) to represent Florida Cities in settlement discussion with Duke Energy Florida, Inc. (Progress Energy Florida, Inc.) regarding the Crystal River Unit 3 nuclear power plant negotiations.
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”) in the Crystal River Unit 3 (CR3) nuclear power plant negotiations with the operating owner Duke Energy Florida, Inc. to support our non-operating owner interests in the ultimate decision to complete the repair needed to bring the plant to full operation or decommission the facility.
Due to the numerous complicated legal and technical issues involved in this matter an additional $250,000 is required for ongoing settlement efforts. The City of Leesburg’s ownership share is 10.15% or an additional $25,375.
1. Authorize the additional funds as presented; or,
2. Such alternative action as the Commission may deem appropriate
With the additional $25,375 the total cost for the City of Leesburg paid to Florida Municipal Power Agency will be $50,750.
Prepared by: Sabrina Hubbell________
Attachments: Yes_X__ No ______
Advertised: ____Not Required _X____
Attorney Review : Yes_X_ No _____
Reviewed by: Dept. Head Patrick Foster
Finance Dept. _BLM,____________
Deputy C.M. ___________________
City Manager ___________________
Account No. _041-1062-531-3110__
Project No. ___CR3SET___________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT FOR ADDITIONAL FUNDS TO FLORIDA MUNICIPAL POWER AGENCY TO REPRESENT FLORIDA CITIES IN SETTLEMENT DISCUSSIONS WITH DUKE ENERGY FLORIDA, INC. (PROGRESS ENERGY FLORIDA, INC.) REGARDING CRYSTAL RIVER UNIT 3 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 of additional funding to represent Florida Cities in settlement discussions with Duke Power Florida, Inc. (Resolution 9118 gave first authority for funds).
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 8th day of July, 2013.