recommends approval of a resolution
the current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc.
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.
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.
Attorney has reviewed the amendment.
1. Approve the resolution amending the Gas Transportation Agreement with Cutrale Citrus
2. Such alternative action as the Commission may deem appropriate
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 be approximate ly
two hundred thousand dollars ($200,000 ).
Prepared by: _Jack Rogers____________
Attachments: Yes_ X__ No ______
Advertised: ____Not Required __X____
Attorney Review : Yes_X__ No ____
Reviewed by: Dept. Head __JR__
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _042-0000-343-26xx____
Project No. ___________________
WF No. ______________________
A RESOLUTION AUTHORIZING AMENDMENT TO THE CURRENT GAS TRANSPORTATION AGREEMENT WITH CUTRALE CITRUS JUICES, USA, INC.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to
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 its 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 _____ day of _________ 2006