File #: 18-2734    Version: Name: Ordinance - Second Reading of an Ordinance Granting to Atmos Energy Corporation, a Texas and Virginia Corporation, its Successors and Assigns, a Franchise to Construct, Maintain, and Operate Pipelines and Equipment in the City of Mansfield, Tarrant County
Type: Ordinance Status: Passed
File created: 5/4/2018 In control: City Council
On agenda: 11/26/2018 Final action: 11/26/2018
Title: Ordinance - Second Reading and Consideration of Final Passage of an Ordinance Renewing a Franchise to Construct, Maintain, and Operate Pipelines and Equipment in the City of Mansfield, Tarrant County Texas, granted to Atmos Energy Corporation, a Texs and Virginia Corporation, its Successors and Assigns, for the Transportation, Delivery, Sale and Distribution of Gas in , out of, and Through Said City; Providing for the Payment of a Fee or Charge for the Use of the Public Right-of-Way; and Providing that Such Fee Shall be in Lieu of Certain Other Fees and Charges
Sponsors: Joe Smolinski, Jeff Price
Attachments: 1. Ordinance

Title

Ordinance - Second Reading and Consideration of Final Passage of an Ordinance Renewing a Franchise to Construct, Maintain, and Operate Pipelines and Equipment in the City of Mansfield, Tarrant County Texas, granted to Atmos Energy Corporation, a Texs and Virginia Corporation, its Successors and Assigns, for the Transportation, Delivery, Sale and Distribution of Gas in , out of, and Through Said City; Providing for the Payment of a Fee or Charge for the Use of the Public Right-of-Way; and Providing that Such Fee Shall be in Lieu of Certain Other Fees and Charges

Requested Action

Second reading and consider approval of ordinance.

Recommendation

Approve ordinance.

Description/History

The City's franchise agreement with Atmos Energy Corporation expired in October of 2017. Since then, staff has been working with Atmos to negotiate a new franchise agreement. The Franchise Ordinance grants Atmos Energy Corporation the right to use and occupy the City rights-of-way for the purpose of delivering and selling gas within the City of Mansfield. In

Return, Atmos will pay a franchise fee equivalent to five (5) percent of their gross revenues.

The franchise agreement has a ten year term with two optional five-year renewals.

Justification

Chapter 121 of the Texas Utilities Code authorizes municipalities to adopt ordinances that establish conditions for mapping, inventorying, locating, or relocating pipelines over, under, along, or across a public street or alley or private residential area within the boundaries of the municipality.

Funding Source

N/A

Prepared By

Jeff Price, Director of Water Utilities

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