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Home My WebLink AboutORD 2008-30 - ATMOS Franchise FeeSTATE OF TEXAS § COUNTY OF ! CITY OF ! `' 1, Sandra D. Lee, being the City Secretary of the City of Georgetown, Texas, do hereby certify that the attached is a true and correct copy of Ordinance 2008-30 adopted by the City Council on May 27, 2008. Witness my hand and seal of office this 12th day of August, 2008. Sandra D. Lee City Secretary AN ORDINANCE •; OF OF GEORGETOWN, GEORGETOWNBETWEEN THE CITY AND ATMOS ENERGY CORPORATION FOUND AT CHAPTER 14 OF THE •'i TO PROVIDE FOR DIFFERENTi D • PROVIDING BY ATMOS ENERGY CORPORATION; AND FINDING AND DETERMINING AT WHICH THIS ORDINANCE PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; REPEALING CONFLICTING ORDINANCES, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Atmos Energy Corporation is the successor in interest or assignee of the franchise agreement between the City of Georgetown (the "City") and TXU Lone Star Gas, which is codified in Chapter 14.04 of the City of Georgetown Code of Ordinances; and WHEREAS, the City is a member of Atmos Texas Municipalities ("ATM"), which actively intervened in the "Statement of Intent Filed by Atmos Energy Corporation to Increase Utility Rates Within the Unincorporated Areas Served by the Atmos Energy Corp., Mid -Tex Division," Railroad Commission of Texas GUD Docket No. 9762; and WHEREAS, on or about February 11, 2008, Atmos Energy Corp's Mid -Tex Division ("ATMOS") and ATM came to a settlement agreement pertaining to "Statement of Intent Filed by Atmos Energy Corporation to Increase Utility Rates Within the Unincorporated Areas Served by the Atmos Energy Corp., Mid -Tex Division," Railroad Commission of Texas GUD Docket No. 9762 (the "Settlement Agreement"); and WHEREAS, the City Council of the City of Georgetown, Texas, approved the settlement agreement at its regular meeting on February 26, 2008 and now desires to revise the franchise fee (previously set at 4% of Gross Revenues) as allowed and contemplated by the Settlement Agreement; WHEREAS, Section 24 of the Settlement Agreement provides in part that that "Atmos agrees that it will accept and approve a request pursuant to this Agreement by any municipality that is currently receiving franchise payment from the Company to execute or amend that municipality's applicable franchise agreement to increase the franchise fee payable by the Company under the terms of the municipality's franchise fee agreement to not more than 5% of Gross Revenues (as that term is defined in the applicable franchise.... " Ordinance No. A00 F- 3D Amending Chapter 14.04 — Franchise Fee for ATMOS Pagel of 4 WHEREAS, notice of the increased franchise fee was provided to Atmos on or about February 28, 2008 in compliance with Section 24 the Settlement Agreement through the Law Offices of Jim Boyle; and WHEREAS, the City Charter contains the following provisions related to the procedures for amendment of franchises: Sec. 8.03. Franchise; power of the City Council. The City Council shall have the power by ordinance to grant, amend, renew and extend, all franchises of all public utilities of every character operating within the City of Georgetown. All ordinances granting, amending, renewing, or extending franchises for public utilities shall be read at two (2) separate regular meetings of the City Council, and shall not be finally passed until thirty (30) days after the first reading; and no such ordinance shall take effect until thirty (30) days after its final passage; and pending such time, the full text of such ordinances shall be published once each week for four (4) consecutive weeks in a newspaper of general circulation published in the City of Georgetown, and the expense of such publication shall be borne by the proponent of the franchise. No public utility franchise shall be granted for a term of more than twenty (20) years; no public utility franchise shall be transferable except with the approval of the City Council expressed by ordinance. WHEREAS, the requisite publications have been duly made per the terms of the City Charter; and WHEREAS, the City Council finds that it is in the best interest of the public and the ratepayers to adopt an ordinance increasing the franchise fee as allowed in the Settlement Agreement. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY CM GEORGETOWN, SECTION 1: Subsection 14.04.80 of the City Code of Ordinances is hereby revised to provide as follows: Sec. 14.04.080. Annual Consideration A. The consideration payable by TXU Gas for the rights and privileges granted to TXU Gas by the franchise ordinance heretofore duly passed by the governing body of this City and duly accepted by TXU Gas is hereby changed to be five percent (5%) of the Gross Revenues, as defined in Section I.B. below, received by TXU Gas. B- F. No changes Ordinance No. AP01- 30 Amending Chapter 14.04 — Franchise Fee for ATMOS Page 2 of 4 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 Khorized officer, hereby accepts in all respects, on this the day ofr— , 2008, Ordinance No. -3 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 5: 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: 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. SECTION 7e All Ordinances and Resolutions, or parts of Ordinances and Resolutions that are in conflict with this Ordinance are hereby repealed, and no longer in effect. Ordinance No. Amending Chapter 14.04 — Franchise Fee for ATMOS Page 3 of 4 SECTION 8: If any provisions of this Ordinance or application thereof to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or applications thereof, of this Ordinance which can be given effect without the invalid provision or application and to this end the provisions of this Ordinance are hereby declared to be severable. SECTION 9: The Mayor of Georgetown is hereby authorized to sign this Ordinance and the City Secretary to attest. This Ordinance shall become effective and be in full force and effect in accordance with the terms of the City Charter. A OL PASSED AND APPROVED on First Reading on the224, day of 2008. 441 PASSED AND APPROVED on Second Reading on the day of C 2008. ATTEST: aY 4, A/ Sandra Lee City Secretary APPROVED AS TO FORM: Patricia E. Carls, City Attorney Ordinance No. o9 -00r-30 Amending Chapter 14.04 - Franchise Fee for ATMOS Z:' Page 4 of 4 THE CITY OF GEORGETOWN: By: Mayor