AGENDA CAPTION:
Title
Consider approval of Ordinance 2023-51, on the second of third readings, granting to Universal Natural Gas, LLC d/b/a Universal Natural Gas, Inc., the right, privilege and franchise to construct, install, extend, remove, replace, abandon, operate and maintain its facilities within the public rights-of-way of the City of San Marcos, Texas for the transportation, delivery, sale and distribution of natural gas; containing other provisions relating to the foregoing subject; providing for severability; including procedural provisions; providing for approval on three readings of the ordinance; and providing an effective date.
Body
Meeting date: August 1, 2023
Department: Legal
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: The city council approved the ordinance on first reading on July 3, 2023.
City Council Strategic Initiative: [Please select from the dropdown menu below]
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Goal #8 Provide efficient & effective delivery of services
Goal #5 Maintain & Improve City's Infrastructure
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Background Information:
UniGas has operated as a local gas distribution utility for over 30 years, providing natural gas services to more than twenty-nine thousand residential, commercial, and industrial customers across the greater areas of major cities in Texas.
Approval of this franchise agreement and ordinance will enable UniGas to deliver natural gas services initially in the Highbranch, Riley's Point, and Riverbend Ranch developments.
As with other gas franchises in the City, the company will pay to the City quarterly during the continuance of the franchise a sum of money equal to 5% of the company's in City gross receipts for the preceding calendar.
In conjunction with the natural gas franchise, Centric Fiber, an affiliated company, will also seek a license to co-locate fiber optic internet lines with the natural gas infrastructure to serve the same areas covered under the franchise agreement.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval.