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CITY COUNCIL AGENDA MEMO |
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| | | | | | | | | MEETING DATE: | 11/27/2023 | | DEPARTMENT: | Gov Relations | | DIRECTOR: | Andrew Fortune, Director of Policy & Government Relations | | AGENDA ITEM: | A second reading of an Ordinance to extend the current Franchise Agreement between CoServ Gas and the City of Plano. | | RECOMMENDED ACTION: | Items for Individual Consideration |
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| | | | | | | | ITEM SUMMARY Second Reading and consideration of an Ordinance to amend Section I of Ordinance No. 2014-6-11 to extend the non-exclusive franchise granted to CoServ Gas, Ltd., a Texas limited partnership d/b/a CoServ Gas, to furnish and supply gas to the general public in the City of Plano, Collin and Denton Counties, Texas, for the transporting, delivery, sale, and distribution of gas in and out of, and through said municipality for all purposes; and providing a repealer clause, a severability clause, a publication clause, and an effective date. (First reading was held at the October 9, 2023, City Council meeting.) Second reading and adoption of Ordinance No. 2023-11-9 |
| | | | | | | | PREVIOUS ACTION/PRESENTATION The first reading of the Ordinance was held at the October 9, 2023 City Council meeting. |
| | | | | | | | BACKGROUND The City of Plano and CoServ Gas agree to extend the term of the existing Franchise Agreement for a period of five years until December 31, 2028.
As required by City Charter, a first reading was held at the Monday, October 9th City Council meeting, and the second reading will be held at the Monday, November 27th City Council meeting. After the second reading, the Ordinance will be published for four consecutive weeks in the official Plano newspaper, and conditioned upon written acceptance by CoServ Gas. |
| | | | | | | | FINANCIAL SUMMARY/STRATEGIC GOALS The extension of this Franchise Agreement will produce an indeterminable amount of revenue, attributable to a quarterly franchise fee based on 5% of the Gross Revenues during the preceding quarter, as defined in the agreement. As a point of reference, anticipated CoServ Gas Franchise Fee Revenue to be received in FY 2023-24 is approximately $186,000.
Approval of this extension relates to the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government. |
| ATTACHMENTS: | | Description | Upload Date | Type | | Ordinance | 10/24/2023 | Ordinance |
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