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CITY COUNCIL AGENDA ITEM BRIEFING SHEET <br />Submittal Date: <br />Originating Department: <br />Presented By: <br />Agenda Item No.: <br />6/18/08 <br />Council Date: <br />Finance <br />Gene Anderson <br />15. <br />6/23/08 <br />RECOMMENDED MOTION: <br />Motion to approve an ordinance amending the existing gas franchise between the City of <br />Paris and Atmos Energy Corporation, and authorizing the City Manager to negotiate and <br />execute all necessary documents. <br />POLICY ISSUE(S): <br />Fiscal Management; Right-of-Way Management. <br />BACKGROUND: <br />In September 2007, Atmos notified cities of their intent to raise natural gas rates <br />throughout their system. Paris and other cities suspended the proposed rate increase in <br />order to review the proposed rate hike utilizing the Atmos Cities Steering Committee to <br />coordinate those efforts. Through negotiations conducted by the Atmos Cities Steering <br />Committee and the resulting settlement agreement which decreased the proposed rate <br />hike, Atmos will approve an amendment to the City's franchise agreement to increase <br />franchise payments from 4% to 5%. The franchise payment will be calculated on gross <br />revenue from the prior quarter, with the payment being made for the privilege of gas <br />operations during the current period. <br />The impact of this franchise rate change on the average residential customer will be <br />between 50 and 60 cents per month. The estimated increase in revenue to the City is <br />$100,000. <br />BOARD/COMMISSION RECOMMENDATION: <br />N/A <br />EXHIBITS: <br />Ordinance changing franchise tax rate. <br />ACTION: <br />BUDGET INFO: <br />❑ Financial Report ❑ Minute Order <br />Expense <br />N/A <br />❑ Deparnnent Report <br />❑ Resolution <br />gudgeted Amt. <br />$470 <br />815 <br />❑ Presentation <br />~ Ordinance <br />, <br />❑ Public Hearing ❑ Other <br />YTD Actual <br />$236,327 <br />Acct. Name <br />Atmos Gas Franchise Fee <br />Acct. Number <br />01-7320-00-00 <br />FISCAL NOTES: <br />The estimated increase in revenue to the City is $100,000. <br />REVIEWED AND APPROVED BY: <br />~ Administration E City Clerk ❑ Community Development ❑ EMS/IT E Finance ❑ Fire <br />❑ Municipal Court N Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities <br />City of Paris Revised 2/04/08 <br />- 000063 <br />