Title
Consider adopting Ordinance No. 3418 granting a franchise to Atmos Energy Corporation, Mid-Tex Division, for a term of 20 years to provide gas utility services within the City of Farmers Branch and providing for compensation for use of the City’s right of way; and take appropriate action.
Body
BACKGROUND:
On September 9, 1996, the City Council adopted Ordinance No. 2148 granting Lone Star Gas Company a franchise to furnish, transport and supply gas to the general public in the City of Farmers Branch, effective October 1, 1996. The franchise agreement provided a term of twenty years. The agreement was subsequently assigned to Atmos Energy Corporation upon the acquisition of Lone Star Gas. On September 6, 2008 the agreement was amended to increase the franchise fee from 4% to 5%. There was no extension of the term of the agreement in the amendment.
DISCUSSION:
The franchise agreement with Atmos expired in October 2016, and staff has been in discussions with the Atmos Manager of Public Affairs to create a new franchise agreement. The City and Atmos Energy Corporation have negotiated a new franchise agreement that would expire on December 31, 2036. The franchise fee will remain at 5% of gross revenues, which is consistent with that of the cities of Addison, Carrollton, and Coppell.
RECOMMENDATION:
City Administration recommends adoption of Ordinance No. 3418 granting a franchise to Atmos Energy Corporation, Mid-Tex Division, for a term of 20 years to provide gas utility services within the City of Farmers Branch and provide for compensation.
POSSIBLE COUNCIL ACTION:
1. I move to adopt Ordinance No. 3418 granting a franchise to Atmos Energy Corporation, Mid-Tex Division.
2. I move to adopt Ordinance No. 3418 granting a franchise to Atmos Energy Corporation, Mid-Tex Division, with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENTS:
1. Ordinance No. 3148