Staff recommends approval of the Sixth Amendment to the Depository Trust agreement to conform the City’s depository account for Florida Gas Utility to the latest requirements for the amount to be held in escrow.
The City of Leesburg obtains natural gas from Florida Gas Utility for resale to customers of the City. As a condition of providing natural gas to the City of Leesburg, Florida Gas Utility requires the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently $687,000.00. Based on periodic review of natural gas pricing, the volume of gas utilized by the City of Leesburg and other variable factors, Florida Gas Utility now requires the City of Leesburg to increase the deposit to $782,000.000.
1. Approve the resolution to conform the City’s depository account; or
2. Such alternative action as the Commission may deem appropriate
There is no fiscal impact to the operating budget. The City of Leesburg retains ownership of the trust fund and Florida Gas Utility can only access the funds if the City fails to make timely payments for gas purchases.
Prepared by: _Harmon Bynum_________
Attachments: Yes__X_ No ______
Advertised: ____Not Required ___X__
Attorney Review : Yes_X_ No ____
Reviewed by: Dept. Head ___X____
Finance Dept. ___________JB_____
Deputy C.M. _______EFS_________
City Manager ___________________
Account No. _________________
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SIXTH AMENDMENT OF THE DEPOSITORY TRUST AGREEMENT NECESSARY TO CONFORM THE CITY'S DEPOSITORY ACCOUNT, MAINTAINED FOR THE BENEFIT OF FLORIDA GAS UTILITY, TO THE LATEST REQUIREMENTS FOR THE AMOUNT OF THE DEPOSIT TO BE HELD IN ESCROW; AND PROVIDING AN EFFECTIVE DATE.
Whereas, The City of Leesburg obtains natural gas for Florida Gas Utility for resale to customers of the city; and
Whereas, as a condition of providing natural gas to the City of Leesburg, Florida Gas Utilities requires the city to maintain a depository account with SunTrust Bank, as Trustee, which is currently $687,000.00; and
Whereas, based on its periodic review of natural gas pricing, the volume of gas utilized by the City of Leesburg, and other variable factors, Florida Gas Utility has determined that it should require the city to increase the deposit to $782,000.00; and
Whereas, it is in the best interest of the City of Leesburg, its citizens and natural gas customers, to comply with the increased deposit requirement of Florida Gas Utility,
Now, Therefore, Be it Resolved by the City Commission of the City of Leesburg, Florida:
That the Mayor and City Clerk are hereby authorized and directed to execute the Sixth Amendment to the Depository Trust Agreement with SunTrust Bank, as Trustee, this Deposit Trust Agreement with Florida Gas Utility, and such other documents as are necessary to effectuate an increase in the city’s deposit to the required level of $782,000.00, and to place into the depository account any additional funds needed to achieve the required amount of deposit
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.