Description: AGENDAHED.JPG
  

 

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 Recommendation:

Staff recommends approval of a Settlement Agreement with  Cutrale Citrus Juice, USA, Inc.

 

Analysis:

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.  

 

Options:

1.  Approve the Settlement Agreement with Cutrale Citrus Juices, USA, Inc.; or

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact: 

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.

Submission Date and Time:    8/21/2013 2:11 PM____

 

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. _BLM,____________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _042-2088-532-4920___

 

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 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

 

 

 

                                                                                    BY:                                                                 

                                                                                                DAVID KNOWLES, Mayor

 

 

 

Attest:                                                             ______

            BETTY M. RICHARDSON, City Clerk