AGENDA MEMORANDUM

 

Meeting Date:           September 22, 2008

 

From:                          Jack Rogers, Gas Director

 

Subject:                      Resolution authorizing the execution of Amendment No. 2 to the current Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc.

 

 

Staff Recommendation:

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.

 

Analysis:

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. 

 

Options:

  1. Approve the resolution authorizing execution of Amendment No. 2 amending the Gas Transportation Agreement with Cutrale Citrus Juices, USA, Inc.; or
  2. Such alternative action as the Commission may deem appropriate

 

Fiscal Impact

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____

 

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 __JR__

 

Finance  Dept. ___________JB_____                                     

                              

Deputy C.M. _________EFS_______                                                                         

Submitted by:

City Manager _________J_________

 

Account No. _042-0000-343-26xx____

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


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.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk