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HomeMy WebLinkAboutORD 2011-08 - ATMOS Election LetterORDINANCE NO. C90 1 1 - 0 g AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS ("CITY") PERTAINING TO THE ELECTION LETTER TO ATMOS ENERGY CORPORATION AS TO FRANCHISE FEES ON FRANCHISE FEES; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Atmos has submitted an election letter, attached as Exhibit "A" pertaining to franchise fees, which the City Council has determined will have a minor impact on rates to citizens within the City of Georgetown; and WHEREAS, the City deems the answers to the Atmos questions as "yes." NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: Section 1. The facts and opinions in the preamble are true and correct. Section 2. The City approves the Election Letter to Atntos Energy Corporation attached as Exhibit "A" with the answer being yes as to the questions posed as denoted in Exhibit "B." Section 3. The Mayor is hereby authorized to sign this ordinance, the letter, and the City Secretary to attest. This Ordinance shall become effective and be in full force on March 31, 2011. PASSED AND APPROVED on First Reading on the day of 2011. PASSED AND APPROVED on Second Reading on the Or)._ day of 2011. Atmos Election Letter Ordinance Pagel Oro(-1±,00(1-CC ATTEST: ica Brett le, City Secretary APPROVED AS TO FORM: S-r11`4' THE CITY OF GEORGETOWN Mark Soko low, City Attorney By: Atmos Election Letter Ordinance Page 2 rd 4t-,D 0 Oe Exhibit A Atmos Election Letter Ordinance Page 3 Y or N On or Before March 31, 2011 Mr. David Park Vice President Rates and Regulatory Affairs Atmos Energy Corporation, Mid -Tex Division 5420 LBJ Freeway, Ste. 1862 Dallas, TX 75240 RE: Franchise Fees on Franchise Fees Dear Mr. Park: To the extent that the following paragraphs are applicable, the selections below indicate the City's interpretation of the franchise agreement between the City and Atmos Energy Corporation ( "Atmos ") as well as the election of the City to receive an additional payment consistent with the City's historical interpretation of the franchise agreement. The City has selected 'Y' to indicate agreement or 'N' to indicate disagreement. Franchise Fees other than on Value of Gas Transported The City intends that all amounts billed to and collected from customers for franchise fees (other than those assessed on the value of transported gas) be added to the revenue amount that Atmos uses to calculate the City's franchise fee payment. Y or N The City elects to receive an additional payment for the period of time beginning with January 1, 2009 that franchise fees (other than those assessed on the value of transported gas) were not included in the calculation of the City's franchise fee payment. Y or N Y or N Franchise Fees on Value of Gas Transported The City intends that the amount billed to and collected from transportation customers for franchise fees assessed on the value of gas transported on behalf of the customer be added to the revenue amount that Atmos uses to calculate the City's franchise fee payment. The City elects to receive an additional payment for the period of time beginning with January 1, 2009 that franchise fees on the value of transported gas were not included in the calculation of the City's franchise fee payment. It is understood that by indicating agreement to any or all of the above statements, the City explicitly agrees that any additional franchise fee amounts paid to the City by Atmos are recoverable by Atmos from Company's customers within the City, It is also understood that by indicating disagreement with or choosing not to select any or all of the above statements, the City is explicitly releasing Atmos from any future claims with respect to those items. The City understands that this election letter must be returned to David Park at the address above and postmarked on or before March 31, 2011 after which the City shall be deemed to have rejected the options contained herein. Sincerely, Signature Printed Name Date Title City Exhibit j' or N OYorN 0:2or N (Por N On or Before March 31, 2011 Mr. David Park Vice President Rates and Regulatory Affairs Atmos Energy Corporation, Mid -Tex Division 5420 LBJ Freeway, Ste. 1862 Dallas, TX 75240 RE: Franchise Fees on Franchise Fees Dear Mr. Park: To the extent that the following paragraphs are applicable, the selections below indicate the City's interpretation of the franchise agreement between the City and Atmos Energy Corporation ( "Atmos ") as well as the election of the City to receive an additional payment consistent with the City's historical interpretation of the franchise agreement. The City has selected `Y' to indicate agreement or `N' to indicate disagreement. Franchise Fees other than on Value of Gas Transported The City intends that all amounts billed to and collected from customers for franchise fees (other than those assessed on the value of transported gas) be added to the revenue amount that Atmos uses to calculate the City's franchise fee payment. The City elects to receive an additional payment for the period of time beginning with January 1, 2009 that franchise fees (other than those assessed on the value of transported gas) were not included in the calculation of the City's franchise fee payment. Franchise Fees on Value of Gas Transported The City intends that the amount billed to and collected from transportation customers for franchise fees assessed on the value of gas transported on behalf of the customer be added to the revenue amount that Atmos uses to calculate the City's franchise fee payment. The City elects to receive an additional payment for the period of time beginning with January I, 2009 that franchise fees on the value of transported gas were not included in the calculation of the City's franchise fee payment. It is understood that by indicating agreement to any or all of the above statements, the City explicitly agrees that any additional franchise fee amounts paid to the City by Atmos are recoverable by Atmos from Company's customers within the City. It is also understood that by indicating disagreement with or choosing not to select any or all of the above statements, the City is explicitly releasing Atmos from any future claims with respect to those items. The City understands that this election letter must be returned to David Park at the address above and postmarked on or before March 31, 2011 after which the City shall be deemed to have rejected the options contained herein. Sincerely, Signature Printed Name Date Title City