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HomeMy Public PortalAboutOrdinance No. 1115-08 05-13-2008 ORDINANCE NO. 1115-08 AN ORDINANCE AMENDING THE EXISTING GAS FRANCHISE BETWEEN THE CITY AND ATMOS ENERGY CORPORATION TO PROVIDE FOR A DIFFERENT CONSIDERATION; PROVIDING AN EFFECTIVE DATE; 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. WHEREAS, Atmos Energy Corporation ("Company") is engaged in the business of furnishing and supplying gas to the general public in the City, 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 purposes 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, pursuant to the 2002 Ordinance amending the franchise (the "Franchise Amendment"), if Atmos agrees to a new municipal franchise ordinance, or renew an existing municipal franchise ordinance, with another municipality, which municipal franchise ordinance determines the franchise fee owed to that municipality for the use of its public rights-of--way in a manner that, if applied to the City of Richland Hills, would result in a franchise fee greater than the amount otherwise due Richland Hills under this Ordinance, then the franchise fee to be paid by Atmos to Richland Hills pursuant to the Ordinance shall be increased so that the amount due and to be paid is equal to the amount that would be due and payable to Richland Hills were the franchise fee provisions of that other franchise ordinance applied to Richland Hills; and WHEREAS, Atmos has agreed to a new franchise ordinance which provides for a five (5) percent franchise fee; and the City desires to exercise the right under the Franchise Amendment and ~ amend the franchise ordinance accordingly; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF RICHLAND HILLS, TEXAS: 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 changed 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 as set forth in the existing franchise. Page 1 it 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, II!, hereby accepts in all respects, on this the day of , 2008, ' Ordinance No. 1115-08 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. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF RICHLAND HILLS this the 13th DAY OF May , 2008, at which meeting a quorum was prese~py~,0~,~1 voting. ~ ~~e~ N ~ ~ N ~ yi ~ ~ m _ E HONORABLE VID L. RAGAN, MAYOR ~ / '~i;~„ Page 2 i ATTEST: DA ANTU, CITY SECRETARY EFFECTIVE DATE: ~ ~ ~ ~ APPROVED T FORM AND LEGALITY: i i TIM G. SRALLA, CITY ATTORNEY Page 3