Item No: 5C.
Meeting Date: August 26, 2013
From: Jack Rogers, Gas Department Director
Subject: Resolution authorizing execution of a Settlement Agreement with Cutrale Citrus Juices USA., Inc.
Staff recommends approval of a Settlement Agreement with Cutrale Citrus Juice, USA, Inc.
The City of Leesburg and Cutrale Citrus Juice are parties to a Gas Transportation Agreement under which the City provides natural gas transportation services to Cutrale. It has come to the attention of the parties that Cutrale has been overcharged for those services for a period of five years due to a calculation error previously not known to either Cutrale or the City. As a result of that error the parties have entered into negotiations for the amount owed and the terms of the settlement. The parties agree that under the Settlement Agreement the amount to be paid to Cutrale by the City is $1,056,029 in overcharges and $123,979 in interest for a total of $1,180,008. The agreement further states that under the terms of the agreement, no further claims will be asserted by Cutrale against the City for any sum paid by Cutrale prior to the date of this Settlement Agreement.
1. Approve the Settlement Agreement with Cutrale Citrus Juices, USA, Inc.; or
2. Such alternative action as the Commission may deem appropriate
A budget adjustment will be necessary to appropriate $1,180,008 from the Gas Fund Balance.
See the attached cash graph for the effect this payment will have on the Cash balance.
Prepared by: ___JR_________________
Attachments: Yes_X__ No ______
Advertised: ____Not Required _X____
Attorney Review : Yes_X_ No ____
Reviewed by: Dept. Head __JR____
Finance Dept. _BLM,____________
Deputy C.M. ___________________
City Manager ___________________
Account No. _042-2088-532-4920___
Project No. ___________________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A SETTLEMENT AGREEMENT BETWEEN THE CITY OF LEESBURG AND CUTRALE CITRUS JUICES, USA, INC. FOR THE PURPOSE OF RESOLVING A DISPUTE OVER THE AMOUNT PAID PREVIOUSLY BY CUTRALE TO LEESBURG UNDER THE GAS TRANSPORTATION AGREEMENT BETWEEN THE TWO AND RELEASING LEESBURG FROM FURTHER LIABILITY FOR ANY CLAIMS PREDATING THE SETTLEMENT AGREEMENT, 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 and directed to execute a Settlement Agreement between the City of Leesburg and Cutrale Citrus Juices, USA, Inc., for the purpose of resolving a dispute over the amount paid previously by Cutrale to Leesburg under the Gas Transportation Agreement between the two and releasing Leesburg from further liability for any claims predating the settlement agreement.
THIS RESOLUTION shall take effect upon its passage and adoption according to law.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the 26th day of __August__, 2013.
THE CITY OF LEESBURG, FLORIDA
DAVID KNOWLES, Mayor
BETTY M. RICHARDSON, City Clerk