O-2752-7-08ORDINANCE NO. 2752-7-08
' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, AMENDING ORDINANCE NO. 2405-5-05, THE
EXISTING FRANCHISE GRANTED TO ATMOS ENERGY
CORPORATION, MID-TEX DIVISION; BY INCREASING THE
FRANCHISE FEE PAYABLE BY ATMOS ENERGY CORPORATION, MID-
TEX DIVISION, FOR USE OF PUBLIC RIGHTS-OF-WAY IN THE CITY OF
ALLEN; PROVIDING A REPEALING CLAUSE; PROVIDING A
SEVERABH.ITY CLAUSE; PROVIDING AN EFFECTIVE DATE; AND
PROVIDING FOR ACCEPTANCE BY ATMOS ENERGY CORPORATION,
MID-TEX DIVISION.
WHEREAS, on December 24, 1953, the City Council of the City of Allen ("City") granted a gas
franchise to Lone Star Gas Company to own, operate, and maintain a gas distribution system in City;
and,
WHEREAS, the original franchise ordinance expired June 30, 2005, but on June 28, 2005, the City
Council of the City of Allen granted a five year gas franchise to Atmos Energy Corporation, Mid -
Tex Division to own, operate, and maintain a gas distribution system in City; and,
' WHEREAS, Atmos Energy Corporation, Mid -Tex Division ("Company") is the current holder of
this gas Franchise in City, and has been engaged in the gas distribution business in the State of Texas
and the City of Allen and, in furtherance thereof, has constructed and maintained portions of its
physical plant in the City; and,
WHEREAS, the City wishes to increase the franchise fee payable pursuant to the Franchise from
four percent (40/6) to five percent (5%) of the Gross Revenues received by Company; and,
WHEREAS, City Council finds that it is appropriate to amend the Franchise to reflect this change.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ALLEN, TEXAS, THAT:
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 Section 8.1(A) of the franchise ordinance.
SECTION 2. Franchise payments shall be made on the dates prescribed in the existing franchise,
according to Sections 1.10 and 1. 11, 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 October 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, hereby accepts in all respects, on this the day
of , 2008, Ordinance No. amending
the current gas franchise between the City and Atmos Energy
Corporation.
Atmos Energy Corporation
By
Vice President, Mid -Tex Division
SECTION 4. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this
ordinance be adjudged or held to be void or unconstitutional, the same shall not affect the validity of
the remaining portions of said ordinance which shall remain in full force and effect.
SECTION 5. All provisions of the Ordinances of the City of Allen, Texas, in conflict with the
provisions of this Ordinance, be, and the same are hereby, repealed, and all other provisions not in
conflict with the provisions of this Ordinance shall remain in full force and effect.
SECTION 6. 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.
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN,
COLLIN COUNTY, TEXAS, ON THIS THE 22ND DAY OF JULY, 2008.
APPROVED:
gtepfign lerrell, MAYOR
APPROVED AS TO FORM ATTEST: (�Q� ,.,�
W P4e ° l lY�-�---��
t,,Snfith, C Y A TORNEY Shelley B. Georg ITY SE ARY
Ordinance No. 2752-7-08, Page 2