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
817-728-3602