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.
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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.
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~ ~ m _ E HONORABLE VID L. RAGAN, MAYOR
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ATTEST:
DA ANTU, CITY SECRETARY
EFFECTIVE DATE: ~ ~ ~ ~
APPROVED T FORM AND LEGALITY:
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TIM G. SRALLA, CITY ATTORNEY
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