AGENDA MEMORANDUM

Meeting Date: January 14, 2008

From:                          Edward F. Smyth, Jr., Deputy City Manager

Subject:                      Resolution Authorizing Execution of an Electric Franchise Agreement with Sumter Electric Cooperative, Inc. (SECO)

Staff Recommendation:

Staff recommends approval of a renewal of the Franchise Agreement with Sumter Electric Cooperative, Inc. (SECO).

Analysis:

In October 2002, the City of Leesburg entered into a franchise agreement with SECO due to the City’s then recent annexations extending into their service territory.  SECO is providing electric services to customers within the corporate limits of the City of Leesburg, and in territory and right-of-way of the City.  This agreement was for a term of five years and expired October 14, 2007.

The new franchise agreement is for a term of four years, expiring on October 9, 2011.  This term and expiration are meant to coincide with the term and expiration of the Territorial Service Agreement which will expire on the same date.  The co-terminus dates are meant to avoid any legal entanglement that might arise if either agreement were in force or if the City wanted to pursue negotiations for acquisition of the SECO territory within the corporate limits at that time.

Options:

1.  Approve the contract with Sumter Electric Cooperative, Inc., or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

The General Fund will realize revenue of six percent (6%) of the billings for any service provided by SECO to customers within the City limits.  In addition, the City will continue to realize revenues from the Utility Service Tax of ten percent (10%) from these customers as well.  In FY 2006-07 the franchise fee generated $ 25,498.07 and the UST generated $ 25,181.78.

Submission Date and Time:    1/10/2008 9:47 AM____

Department: Administration Prepared by:  E.F. Smyth, DCM Attachments:         Yes X    No ______ Advertised:   ____Not Required  X                       Dates:   __________________________                      Attorney Review :       Yes X   No ____ Revised 6/10/04

Reviewed by: Dept. Head ________ 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 AN ELECTRIC FRANCHISE AGREEMENT WITH SUMTER ELECTRIC COOPERATIVE, INC.; AND PROVIDING AND 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 an agreement  between the City of Leesburg, Florida and Sumter Electric Cooperative, Inc., whose address is P.O. Box 301, Sumterville, Florida 33585-0301, for providing an electric franchise (A copy of the agreement is attached).

 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  14^th  day of January  2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk