AGENDA MEMORANDUM

Meeting Date:           February 23, 2009

From:                          Jack Rogers, Gas Director

Subject:                      Resolutions authorizing execution of a Professional Service Agreement with Southwinds Partners, L.L.L.P., to provide natural gas service to Southwinds Cove Phase 1, and approval of the Memorandum of Natural Gas Agreement.

Staff Recommendation:

Staff recommends approval of a Professional Service Agreement with Southwinds Partners, L.L.L.P., to provide natural gas service to Southwinds Cove Phase 1 and approval of the Memorandum of Natural Gas Agreement.

Analysis:

Section 22-7 of the Code of Ordinances requires developer funded natural gas main and service installations in all new residential developments of more than five units.  Southwinds Partners, L.L.L.P. is building town homes known as Southwinds Cove Phase 1 located on South Street, south of Hwy 44.  Of the 112 planned units, 112 units will, at a minimum, have natural gas water heaters and furnaces.  In accordance with the above referenced ordinance, the developer will place in escrow $123,695 which will be used to fund the gas installation project in its entirety. 

The purpose of the Memorandum of Natural Gas Agreement is to place on notice the public, potential purchasers and others who may acquire any interest in the Development or any portion thereof, of the requirements imposed by the Gas Service Agreement.

Options:

1.  Adopt resolutions approving the Professional Service Agreement with Southwinds Partners, L.L.L.P. to provide natural gas service to Southwinds Cove and the Memorandum of Natural Gas Agreement; or

2.  Such alternative action as the Commission may deem appropriate.

Fiscal Impact: 

The capital outlay estimated at $123,695 will be funded through a customer contribution which will be placed in escrow.

Submission Date and Time:    2/23/2009 4:13 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 ___________________

Account No. _                           ____ Project No. ___________________ WF No. ______________________ Budget  ______________________ Available _____________________