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 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.
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.
1. Approve the Tenth Amendment of the Depository Trust Agreement; or
2. Such alternative action as the Commission may deem appropriate.
The Gas department will deposit $66,000 to the Sun Trust Bank account from a restricted account within the gas fund.
Prepared by: ___JR___________
Attachments: Yes_X_ No ___
Advertised: ____Not Required __X___
Attorney Review : Yes_x_ No ____
Reviewed by: Dept. Head ___JR___
Finance Dept. BLM,_____________
Deputy C.M. ___________________
City Manager ___________________
Account No. _042 000 159 2210___
Project No. ___________________
WF 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.