Title
Approving an ordinance on second reading with the caption reading: An Ordinance of the City of Pflugerville, Texas, granting to Universal Natural Gas, LLC (dba Universal Natural Gas, Inc.) a franchise to furnish and supply gas to the general public in the City of Pflugerville, Travis County, Texas, and to transport, deliver, sell, and distribute gas in and out of and through said municipality for all purposes; providing for the payment of a fee or charge for the use of the streets, alleys, and public ways; and providing a severability clause, a penalty clause, and an effective date.
Summary
Universal Natural Gas, Inc. (UniGas) is planning to provide gas service to at least one new development within the City of Pflugerville. In January 2025, UniGas submitted a proposed franchise agreement for the City’s review. The purpose of implementing a franchise agreement is to set parameters for the Company’s use of the Public Rights-of-Way in its provision of gas service within the City. In exchange for the use of the Public Rights-of-Way, the Company is required to pay the City a franchise fee.
This agreement proposes a 10-year term, 5-percent of gross revenue franchise fee, and requires the company to comply with all city ordinances and permitting requirements.
The City retained outside counsel with Lloyd Gosselink Rochelle & Townsend, P.C., to review the agreement, recommend changes, and negotiate with the Company. The franchise agreement attached is the draft recommended for adoption. There is an attached memo from outside counsel with an overview of the agreement.
Prior City Council Action
City Council approved the franchise agreement on first reading at August 12, 2025.
Deadline for City Council Action
Staff is requesting action at the August 12, 2025 City Council meeting.
Funding Expected: Revenue 5% franchise fee Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A __
Budget Source: ____________
Amount: ________
1295 Form Required? Yes __ No __
Legal Review Required: N/A __ Required _X_ Date Completed: July 25, 2025
Supporting documents attached:
Summary Memo
Proposed Franchise Agreement
Recommended Action
Staff recommends approval of the franchise agreement on second reading.