AGENDA MEMORANDUM

Meeting Date: December 8, 2008

From:                          Jack Rogers, Gas Director

Subject:                      Resolution authorizing execution of a Gas Service Agreement for installation of natural gas service to Plantation Plaza

Staff Recommendation:

Staff recommends approval of a resolution authorizing execution of a Gas Service Agreement for installation of natural gas service to Plantation Plaza.

Analysis:

Cornerstone Development of Lake County is constructing a business development known as Plantation Plaza on US Highway 27, south of Leesburg.  The developer has requested natural gas service for four restaurants to be constructed within the plaza.  The developer is unable to determine when these restaurants will occupy the plaza or what their total annual gas consumption will be. For this reason, the developer is willing to provide the initial funding of nine thousand dollars ($9,000) for installation of the gas main and services.  In return, the City will reimburse a portion of the funds provided by the developer, based on the estimated first year gas consumption of each restaurant that occupies the plaza.  As provided for in the agreement, the reimbursement will not exceed two thousand dollars ($2,000) for each connected restaurant, and eight thousand dollars ($8,000) total for the development.

Options:

1.  Approve the resolution authorizing execution of a gas service agreement to install natural gas service to Plantation Plaza.

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact:

The  project is developer funded.  The City will be able to recoup the funds that are returned to the developer, through the sale of gas, within the first year of operation of each restaurant.

Submission Date and Time:    12/4/2008 4:20 PM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. __________JB______                                    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 AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A GAS SERVICE AGREEMENT TO INSTALL NATURAL GAS SERVICE TO PLANTATION PLAZA; 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 Cornerstone Development of Lake County, LLC, whose address is 1316 Bowman St, Clermont Florida, 34711, for the installation of gas service to Plantation Plaza.

 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 _8th____ day of December_______ 2008

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk