Title
Florida Municipal Power Agency (FMPA) Costs and Expenses for Crystal River Unit 3 Negotiations (B)
Explanation
FMPA has thus far represented the City of Gainesville, d/b/a Gainesville Regional Utilities (GRU), as GRU's and other municipal joint owners and wholesale purchasers' agent in negotiations with Duke Energy Florida, Inc. ("Duke") concerning Duke's failed Crystal River Unit 3 ("CR3") plant. There are numerous complicated legal and technical issues involved in these negotiations, and despite this, the negotiations are moving in a productive direction and FMPA believes there is a possibility that it may be able to settle some or all of the potential claims against Duke.
Fiscal Note
Funds are available in GRU's FY 2013 budget.
Recommendation:
The City Commission (1) authorize the General Manager, or his designee, to pay FMPA up to a total of $110,000 for FMPA's efforts on GRU's behalf, inclusive of all amounts already incurred and paid by GRU for the CR3 negotiations with Duke; and (2) authorize the General Manager, or his designee, to execute the Authorization for Increased FMPA Costs and Expenses, agreeing to pay up to $110,000 to FMPA on GRU's behalf.