AGENDA MEMORANDUM

 

 

Meeting Date:           August 28, 2006

 

From:                          Jack Rogers, Gas Director

 

Subject:                      RA resolution authorizing the Mayor and City Clerk to execute Aamendmenting No. 1 to the current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc. 

 

 

Staff Recommendation:

Staff recommends approval of a resolution authorizing execution of Amendment No. 1 toamending the current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc.

 

 

Analysis:

The current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc. will expire September 30, 2006.  Cutrale has requested a two year extension of the current agreement.  The proposed amended agreement provides for this two year extension at the current rate for service and provides for a minor change for the purpose of clarity in the contract language in Article V.  In addition, the agreement will renew annually thereafter unless cancelled by either party. 

 

Included also in the amendment is a change to Article VII defining the meters that are used to calculate gas usage in the event the primary meter used for measurement fails.  The change in Article VII is required because of the acquisition of the Newell Hill station by the City of Leesburg, removal of Florida Gas Transmissions meter, and the installation of a new City meter for this purpose.  

 

The City Attorney has reviewed the amendment. 

 

 

 

 

 

 

Options:

1.  Approve the resolution authorizing the Mayor and City Clerk to execute Amendment No. 1 amending the Gas Transportation Agreement with Cutrale Citrus Juices,       USA, Inc.

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

The natural gas capacity used by this contract will increase the natural gas system load factor and thus reduce the cost of gas to the remaining retail customers by approximately five cents ($0.05) per therm.  Assuming a normal fruit season, net revenue for the coming fiscal year will beshould approximately two hundred thousand dollars ($200,000)

 

 

Submission Date and Time:    8/23/2006 7:05 PM8/23/2006 1:14 PM8/21/2006 4:01 PM8/18/2006 9:25 AM8/18/2006 8:51 AM8/17/2006 11:33 AM____

 

Department: ___Gas____________

Prepared by:  _Jack Rogers____________                     

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. __________________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager _________RS__________

 

Account No. _042-0000-343-26xx____

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY  OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 1 TO THE CURRENT GAS TRANSPORTATION AGREEMENT WITH CUTRALE CITRUS JUICES, USA, INC. TO PROVIDE NATURAL GAS TRANSPORTATION SERVICES; 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 Amendment No. 1 to the amend the current agreement with Cutrale Citrus Juices, USA, Inc., whose address is P.O. Box 247 Auburndale Fl. 33823-0247, for the purpose of providing natural gas transportation services to Cutrale at theits Leesburg plant on Cloud Street

 

             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 _28th____ day of _August________ 2006

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk