Description: AGENDAHED.JPG
  

Item No:                    4.C.1.

 

Meeting Date:           August 12, 2013

 

From:                          Jack Rogers, Gas Director

 

Subject:                      Resolution authorizing execution of the Tenth Amendment to the Depository agreement to conform the City’s depository account for the Florida Gas Utility     

 

 


Staff Recommendation:

Staff recommends approval of the Tenth 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. 

 

Analysis:

The City of Leesburg purchases natural gas through 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 $256,000.  Based on periodic reviews of natural gas pricing, the volume of gas utilized by the City of Leesburg and other variable factors, Florida Gas Utility has now increased the required amount to be held in the fund to $322,000. The City of Leesburg will deposit $66,000 to the account

 

Options:

1.  Approve the Tenth Amendment of the Depository Trust Agreement; or

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

 

Fiscal Impact: 

The Gas department will deposit $66,000 to the Sun Trust Bank account from a restricted account within the gas fund.

 

Submission Date and Time:    8/12/2013 10:19 AM____

 

Department: ____Gas__________

Prepared by:  ___JR___________                     

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. BLM,_____________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _042 000 159 2210___

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available __$108,000________

 

RESOLUTION NO._______________

 

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE TENTH 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 from 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 Utility requires that the City maintain a depository trust account with SunTrust Bank, as Trustee, which is currently in the amount of $256,000.00; 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 the City must increase the deposit to $322,000.00; 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, and to increase the current amount of $256,000.00, by $66,000.00, making the total deposit in the depository trust account $322,000.00.

 

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 Tenth Amendment to the Depository Trust Agreement with SunTrust Bank, as Trustee, the 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 $322,000.00.

 

THIS RESOLUTION shall become effective upon its passage and adoption according to law.

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the _12th____ day of __August ___, 2013.

 

                                                                            ________________________________

                                                                            Mayor

ATTEST:

 

________________________________

City Clerk