AGENDA MEMORANDUM

Meeting Date:           May 27, 2008

From: Paul Kalv, Electric Director   

Subject:                      Resolution authorizing an Ownership and Operating Agreement for Leesburg Airport Substation      

Staff Recommendation:

Staff recommends approval of the Ownership and Operating Agreement for the Leesburg Airport Substation with Progress Energy Florida (PEF.)

Analysis:

The Airport Substation was designed and constructed to accommodate dual sources from the PEF 69 kV transmission line.  The initial connection to the transmission line was installed during the early 1980s and only one source was connected because of the reduced cost compared to installing two connections.  The proposed Agreement adds the second source from the transmission line and establishes the delineation of operational duties between the City and PEF.  PEF proposes to construct the second source at their expense to loop the connection “in and out” of the substation which will eliminate the single contingency failure point that exists today with the single source.  PEF will own both connections to the line side of the City owned 69kV switches L12001 and L12003 at the Airport substation.

Options:

1.  Approve the Ownership and Operating Agreement

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

None

Submission Date and Time:    5/22/2008 11:48 AM____

Department: ___Electric___________ Prepared by:  ___P. D. Kalv__________                      Attachments:       Yes__X__   No ______ Advertised:   ____Not Required __X___ Dates:   __________________________                      Attorney Review :     Yes_X__  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head _Kakv__ 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 OWNERSHIP AND OPERATING AGREEMENT FOR THE LEESBURG AIRPORT SUBSTATION WITH PROGRESS ENERGY FLORIDA; AND PROVIDING AN 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 with Progress Energy Florida whose address is 3300 Exchange Place, Lake Mary, FL 32746, for the installation of a second source from the Progress Energy Florida 69 kV transmission line looped in and out of the Airport substation and agrees to the delineation of operational duties established in the agreement.

 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 __27th___ day of __May_______ 2008.

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk