M&C Review


COUNCIL ACTION:  Approved on 10/10/2017 - Ordinance No. 22952-10-2017

DATE: 10/10/2017 REFERENCE NO.: **C-28418 LOG NAME: 21PMD SIENERGY FRANCHISE
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt Ordinance Granting Franchise to SiENERGY, L.P., for the Use of Public Rights-of-Way in the City of Fort Worth for the Purpose of Constructing, Maintaining and Operating a System of Pipelines and Other Facilities for the Provision, Distribution and Transportation of Gas to Customers in the City of Fort Worth (ALL COUNCIL DISTRICTS)

RECOMMENDATION:

It is recommended that the City Council:

1.  Adopt the attached ordinance granting a franchise to SiENERGY, L.P., for the use of public rights-of-way in the City of Fort Worth for the purpose of constructing, maintaining and operating a system of pipelines and other facilities for the provision, distribution and transportation of gas to customers in the City of Fort Worth; and

2.  Authorize the City Manager or his designee to execute a Franchise Agreement with SiENERGY, L.P., to construct, install, maintain, repair and operate a system of pipelines and other facilities for the provision, distribution and transportation of gas in, over, under, along and across the public rights-of-way in the City of Fort Worth.

 
DISCUSSION:

SiENERGY, L.P. (Company), a gas utility company, has made application for a franchise Agreement with the City in order to provide gas service to customers within the City of Fort Worth.  The Company has franchise Agreements with several Texas cities and currently serves over 15,000 customers throughout the state and now seeks to expand its service to Fort Worth.  Most recently the Fort Worth Transportation Authority selected SiENERGY as its natural gas provider.

Under the terms of the proposed ten year franchise ordinance, the Company will pay the City a fee of five percent of the following:

(a)  gross revenue  received by the Company from the sale of gas to all classes of customers within the City;

(b)  all revenues received by the Company from the transportation of gas through the Company's facilities within the City to Customers located within the City.

Other major provisions in the franchise agreement include:

(a)  a provision that the Franchise is non-exclusive and the City reserves the right to grant other and future gas franchises to other entities;

(b)  the Company will be responsible for the cost to disconnect, remove  and relocate its facilities from the public rights-of-way  due to street construction, or reconstruction, or relocation of City-owned utilities; and

(c)  a provision that should the Company renew or execute a new municipal franchise ordinance with another municipality that results in a franchise fee greater than the fee to be paid to the City, the franchise fee under this ordinance  shall be increased to match.

The term of the ordinance is for ten years from its effective date.  

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that the Property Management Department is responsible for the collection and deposit of funds under this Agreement.

TO
    Fund Department
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Account Project
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Program Activity Budget
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Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Steve Cooke (5118)
Additional Information Contact:
Roger Venables (6334)

 
 
ATTACHMENTS
  Exhibit 1 - Franchise Agreement - SiENERGY.pdf
  Ordinance - Franchise Agreement- SiEnergy (2).doc
  SiENERGY Form 1295.pdf