Staff recommends approval of a renewal of the Franchise Agreement with Sumter Electric Cooperative, Inc. (SECO).
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.
1. Approve the contract with Sumter Electric Cooperative, Inc., or
2. Such alternative action as the Commission may deem appropriate
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.
Prepared by: E.F. Smyth, DCM
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Deputy C.M. ___________________
City Manager ___________________
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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 14th day of January 2008.