AGENDA MEMORANDUM

Meeting Date:           September 24, 2007

From: Jack Rogers, Gas Director

Subject:                      Resolution authorizing execution of the Fifth Amendment of the Depository Trust agreement to conform the City’s depository account for Florida Gas Utility

Staff Recommendation:

 Staff recommends approval of the Fifth Amendment to the Depository Trust agreement to conform the City’s depository account for Florida Gas Utility to the latest requirements for the amount to be held in escrow.

Analysis:

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 $657,000.00.  Based on 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 $687,000.000

Options:

1.  Approve the resolution to conform the City’s depository account; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

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.

____ Submission Date and Time:    9/24/2007 11:49 AM9/19/2007 3:58 PM

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 _X_______ Finance  Dept. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ 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 the Fifth 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 for 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 requires the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently $657,000.00; 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 $687,000.00; and

Whereas, it is in the best interest of the City of Leesburg, its citizens and natural gas customers, to comply with the increased deposit requirement of Florida Gas Utility,

Now, Therefore, 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 the Fifth Amendment to the Depository Trust Agreement with SunTrust Bank, as Trustee, this Deposit Trust 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 $687,000.00, 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 by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _24^th  day of _September__ 2007.                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk