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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Appropriation <br />Agenda Date Requested: June 24, 2019 <br /> <br />Source of Funds: <br />Requested By: <br />Corby Alexander, City Manager <br /> <br />Department: <br />CMO <br />Account Number: <br /> <br />Amount Budgeted: <br />Report Resolution Ordinance <br /> <br /> <br /> <br />Amount Requested: <br />Exhibits: Proposed Ordinance 2019-3746 <br /> <br />Budgeted Item: Yes No <br /> <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />CenterPoint Energy is coming forward to renew their gas franchise ordinance. This will be the first <br />reading, and the second reading and final approval expected for the August 12 meeting (30 days <br />minimum between readings, per the City Charter, Sec. 7.01). <br /> <br />This franchise ordinance allows CenterPoint Energy to use City right-of-way to deliver natural gas to its <br />customers. In exchange for having this right granted, CenterPoint Energy pays the City 4.5% of its gross <br />receipts for gas sold in La Porte and 7¢ per Mcf for natural gas transported by CenterPoint for its <br />Transport Customers quarterly. <br /> <br />City Charter 7.01. - Enfranchisement. <br />a. Power of council. City council shall have power by ordinance to grant, amend, renew and extend <br />all franchises of all public utilities of every character operating within the city. All ordinances granting, <br />amending, renewing or extending franchises for public utilities shall not be finally passed until thirty (30) <br />days after the first reading; and no such ordinance shall take effect until sixty (60) days after its final <br />passage; and pending such time, the notice and caption of such ordinance, noting the place where the <br />full text may be examined by the public, shall be published once each week for four (4) consecutive <br />weeks in the official newspaper of the city, and the expense of such publication \[is\] to be borne by the <br />proponent of the franchise. No public utility franchise shall be transferable except with the approval of <br />council expressed by ordinance. <br />ACTION REQUIRED BY COUNCIL <br />No motion needed unless the intent is to direct staff or for some other reason. Second reading is <br />anticipated for the August 12 meeting. <br />Approved for the City Council meeting agenda <br /> <br />