Staff recommends approval of a resolution authorizing the execution of Amendment No. 2 to the current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc.
The current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc. will expire October 1, 2008. Cutrale has agreed to a two year extension of the current agreement. The proposed amended agreement provides for this two year extension at the current rate for service. In addition, the agreement will renew annually thereafter unless cancelled by either party.
The natural gas capacity used by this contract will increase the natural gas system load factor and thus continue to reduce the cost of gas to the remaining retail customers by approximately five cents ($0.05) per therm. Assuming a normal fruit season, net revenue for the coming fiscal year should approximate two hundred thousand dollars $200,000.
Submission Date and Time: 9/17/2008 5:44 PM____
Prepared by: _Jack Rogers____________
Attachments: Yes_ X__ No ______
Advertised: ____Not Required __X____
Attorney Review : Yes_X__ No ____
Reviewed by: Dept. Head __JR__
Finance Dept. ___________JB_____
Deputy C.M. _________EFS_______
City Manager _________J_________
Account No. _042-0000-343-26xx____
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 2 TO THE CURRENT GAS TRANSPORTATION AGREEMENT WITH CUTRALE CITRUS JUICES, USA, INC. TO PROVIDE NATURAL GAS TRANSPORTATION SERVICES; 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 Amendment No. 2 to the current agreement with Cutrale Citrus Juices, USA, Inc., whose address is P.O. Box 247 Auburndale Fl. 33823-0247, for the purpose of providing natural gas transportation services to Cutrale at the Leesburg plant on Cloud Street.
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 _22nd__ day of _September_ 2008.