Title
Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Granting Atmos Energy Corporation a Non-Exclusive Franchise to Use Public Rights-of-Way for the Purpose of Constructing and Operating a Gas Distribution System
Summary
COUNCIL GOAL: Financially Sound Government
MEETING DATE: January 5, 2016
DEPARTMENT: Financial Services
CONTACT: Rodney Rhoades, Chief Financial Officer
RECOMMENDED CITY COUNCIL ACTION:
• Conduct a public hearing.
• Although a public hearing has already been held, staff inadvertently missed the publication notice as required. As such, a new first public hearing is required.
ITEM SUMMARY:
• This ordinance grants Atmos Energy Corporation the non-exclusive right to use and occupy rights-of-¬way within the City of McKinney for the construction and operation of a gas distribution system.
• This agreement is for a term of ten (10) years and expires on March 21, 2026. The agreement allows for an automatic five (5) year renewal unless a sixty (60) day written notice of cancelation is given by either party.
• This ordinance requires two public hearings. The first public hearing is being held tonight, January 5, 2016. The second and final public hearing will be held on February 16, 2016 in accordance with Section 118 of the City of McKinney Charter.
BACKGROUND INFORMATION:
• The City and Atmos Energy mutually agree to accept the terms as listed in the ordinance.
• No existing terms change with the exception of the expiration date.
FINANCIAL SUMMARY:
• The ordinance sets the franchise fee at five percent (5%) of gross revenues.
BOARD OR COMMISSION RECOMMENDATION: N/A