Title
Amendment to the Florida Gas Utility Interlocal Agreement (B)
Explanation
Florida Gas Utility (FGU) was formed in September 1989 by Interlocal Agreement among five (5) original member utilities: The Kissimmee Utility Authority and the following Cities: Gainesville, Homestead, Sebring and Starke for the purpose of jointly purchasing and scheduling of natural gas supply for the use of its members to take advantage of open access to transportation on the Florida Gas Transmissions (FGT) pipeline. FGU currently represents sixteen (16) municipal members consisting of both electric generating utilities and local distribution companies. Following several years of inactive membership in FGU, in August, 2006, the City Commission authorized staff to reinstate its FGU membership to allow participation in long term natural gas acquisition contracts in an effort to reduce customer exposure to volatile pricing.
GRU staff has determined it is in the best interest of our customers to maintain its membership status with FGU and therefore recommend approval of the amended Interlocal Agreement.
Recommendation
The City Commission: 1) adopt the Resolution incorporating by reference Approving the Execution of the Third Amended and Restated Interlocal Agreement to be Executed among the Members of Florida Gas Utility; providing certain authorizations; providing an effective date; and providing certain other details with respect thereto; and 2) authorize the Clerk of the Commission, the General Manager and other Authorized Officers of the City (as defined in the Resolution) to execute such documents as may be necessary to execute the Third Amended and Restated Interlocal Agreement with Florida Gas Utility, which is attached in substantially the form hereto subject to the approval of the City Attorney as to form and legality.
Fiscal Note
Fuel savings achieved as a result of long term natural gas supply transactions with FGU will be passed on to the customers.
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