Staff Recommends approval of a resolution to conform the City’s depository account, maintained for the benefit of Florida Gas Utility, to the latest requirement for the amount of the deposit to be held in escrow.
The City of Leesburg obtains natural gas from Florida Gas Utility for resale to customers of the City. As a condition of providing natural gas to the City of Leesburg, Florida Gas Utility requires the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently for $565,000.00. Based on the periodic review of natural gas pricing, the volume of gas utilized by the City of Leesburg and other variable factors, Florida Gas Utility now requires the City of Leesburg to increase the deposit to $657,000.00.
1. Approve the resolution to conform the City’s depository account; or
2. Such alternative action as the Commission may deem appropriate
There is no fiscal impact to the operating budget. The City of Leesburg retains ownership of the trust fund and Florida Gas Utility can only access the funds if the City fails to make timely payments for gas purchases.
Prepared by: _Jack Rogers____________
Attachments: Yes _X__ No ______
Advertised: ____Not Required _X___
Attorney Review : Yes _X__ No ____
Reviewed by: Dept. Head __X_____
Finance Dept. ___wp_______________
Deputy C.M. ___________________
City Manager ________RS___________
Account No. _________________
Project No. ___________________
WF No. ______________________
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FOURTH AMENDMENT OF THE DEPOSITORY TRUST AGREEMENT NECESSARY TO CONFORM THE CITY'S DEPOSITORY ACCOUNT, MAINTAINED FOR THE BENEFIT OF FLORIDA GAS UTILITY, TO THE LATEST REQUIREMENTS FOR THE AMOUNT OF THE DEPOSIT TO BE HELD IN ESCROW; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Leesburg obtains natural gas from Florida Gas Utility for resale to
customers of the city; and
WHEREAS, as a condition of providing natural gas to the City of Leesburg, Florida Gas Utilities require the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently for $565,000.00; and
WHEREAS, based on its periodic review of natural gas pricing, the volume of gas utilized by the City of Leesburg, and other variable factors, Florida Gas Utility has determined that it should require the city to increase the deposit to $657,000.00; and
WHEREAS, it is in the best interests of the City of Leesburg, its citizens and natural gas customers, to comply with the increased deposit requirements of Florida Gas Utility,
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Leesburg, Florida:
That the Mayor and the City Clerk are hereby authorized and directed to execute the fourth amendment to the depository trust agreement with SunTrust Bank, as Trustee, this Deposit Agreement with Florida Gas Utility, and such other documents as are necessary to effectuate an increase in the city's deposit to the required level of $657,000.00, and to place into the depository account any additional funds needed to achieve the required amount of deposit.
THIS RESOLUTION shall become effective immediately.
PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held the __23rd____ day of __October _, 2006.