15 Motion to approve an ordinance amending the existing gas franchise between the City of Paris and Atmos Energy Corp.CITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date:
Originating Department:
Presented By:
Agenda Item No.:
6/18/08
Council Date:
Finance
Gene Anderson
15.
6/23/08
RECOMMENDED MOTION:
Motion to approve an ordinance amending the existing gas franchise between the City of
Paris and Atmos Energy Corporation, and authorizing the City Manager to negotiate and
execute all necessary documents.
POLICY ISSUE(S):
Fiscal Management; Right-of-Way Management.
BACKGROUND:
In September 2007, Atmos notified cities of their intent to raise natural gas rates
throughout their system. Paris and other cities suspended the proposed rate increase in
order to review the proposed rate hike utilizing the Atmos Cities Steering Committee to
coordinate those efforts. Through negotiations conducted by the Atmos Cities Steering
Committee and the resulting settlement agreement which decreased the proposed rate
hike, Atmos will approve an amendment to the City's franchise agreement to increase
franchise payments from 4% to 5%. The franchise payment will be calculated on gross
revenue from the prior quarter, with the payment being made for the privilege of gas
operations during the current period.
The impact of this franchise rate change on the average residential customer will be
between 50 and 60 cents per month. The estimated increase in revenue to the City is
$100,000.
BOARD/COMMISSION RECOMMENDATION:
N/A
EXHIBITS:
Ordinance changing franchise tax rate.
ACTION:
BUDGET INFO:
❑ Financial Report ❑ Minute Order
Expense
N/A
❑ Deparnnent Report
❑ Resolution
gudgeted Amt.
$470
815
❑ Presentation
~ Ordinance
,
❑ Public Hearing ❑ Other
YTD Actual
$236,327
Acct. Name
Atmos Gas Franchise Fee
Acct. Number
01-7320-00-00
FISCAL NOTES:
The estimated increase in revenue to the City is $100,000.
REVIEWED AND APPROVED BY:
~ Administration E City Clerk ❑ Community Development ❑ EMS/IT E Finance ❑ Fire
❑ Municipal Court N Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities
City of Paris Revised 2/04/08
- 000063
DRAFT
Attorney\Ordwork\Current\ATMOS-Amending Franchise Ord 2008
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS,
AMENDING THE EXISTING GAS FRANCHISE ORDINANCE BETWEEN THE
CITY OF PARIS, TEXAS AND ATMOS ENERGY CORPORATION TO
PROVIDE FOR A FIVE PERCENT FRANCHISE FEE; PROVIDING FOR
ACCEPTANCE BY ATMOS ENERGY CORPORATION; AND FINDING AND
DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Atmos Energy Corporation ("Company") is engaged in the business of
furnishing and supplying gas to the general public in the City of Paris, including the
transportation, delivery, sale, and distribution of gas in, out of, and through the City for all
purposes, and is
using the public streets, alleys, grounds and rights-of-ways within the City for that purpose
under the terms of a franchise ordinance duly passed by the governing body of the City and
duly accepted by Company or its predecessor in interest; and
WHEREAS, the City and Company desire to amend said franchise ordinance to
provide for a different consideration;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
PARIS, TEXAS THAT:
Section 1. The consideration payable by Company for the rights and privileges
granted to Company by the franchise ordinance duly passed by the governing body of this
City and accepted by Company or its predecessor in interest is hereby amended to be five
percent (5%) of the Gross Revenues, as defined in the franchise ordinance.
Section 2. Franchise payments shall be made on the dates prescribed in the
existing franchise and shall be for the rights and privileges of the respective period during
which the payment is made.
Section 3. This ordinance shall take effect on May 1, 2008. Company shall, within
thirty (30) days from the receipt of this ordinance, file its written acceptance of this
ordinance with the Office of the City Secretary in substantially the following form:
To the Honorable Mayor and City Council:
Atmos Energy Corporation, acting by and through the
undersigned authorized officer, hereby accepts in all respects,
on this the _ day of . 2008, Ordinance No.
OOCl0064
amending the current gas franchise between the City
and Atmos Energy Corporation.
ATMOS ENERGY CORPORATION
By
Vice President, Mid-Tex Division
Section 4. In all respects, except as specifically and expressly amended by this
ordinance, the existing franchise ordinance heretofore duly passed by the governing body
of the City shall remain in full force and effect.
Section S. The City shall provide a copy of this Ordinance to Mr. David Park, VP
of Rates and Regulatory Affairs, Atmos Energy Corp., 5420 LBJ Freeway, Suite 1800, Dallas,
Texas 75240, no later than ten (10) business days after its final passage and approval.
Section 6. Introduced, read, and passed on first reading on May 12, 2008, at a regular
meeting of the City Council of the City of Paris; read and passed on second reading on May 27,
2008, at a regular meeting of the City Council of the City of Paris; and, read and passed on third
and final reading on June 23, 2008, at a regular meeting of the City Council of the City of Paris,
the same being three (3) separate regular meetings of the City Council of the City of Paris, and
the last reading being not less than thirly (30) days from the first.
Section 7. This ordinance shall become effective in accordance with the terms and
provisions of the City Charter of the City of Paris, and shall be effective for a period of time as
stated herein.
Section 8. It is hereby officially found and determined that the meeting at which
this Ordinance is passed is open to the public as required by law and that public notice of
the time, place and purpose of said meeting was given as required.
PASSED AND APPROVED by the city Council of the City of Paris, Texas, this the
23rd day of June, 2008, at which meeting a quorum was present and voting.
Joe McCarthy, Mayor Pro Tem
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
- 0 0 V ~~6 15