Title
Approving an ordinance on third reading with the caption reading: AN ORDINANCE OF THE CITY OF PFLUGERVILLE, TEXAS, GRANTING TO THE CITY OF AUSTIN A FRANCHISE TO CONSTRUCT, MAINTAIN, OPERATE, AND USE A TRANSMISSION AND DISTRIBUTION SYSTEM IN THE CITY OF PFLUGERVILLE TO PROVIDE ELECTRIC UTILITY SERVICE.
Summary
The Austin City Council has approved the payment of a 3% franchise fee from Austin Energy (AE) to the cities that include AE customers within their city limits. The portion of the City of Pflugerville that is included in the AE territory is roughly south of Settlers Valley Drive. This franchise agreement establishes the parameters of the payments to the City of Pflugerville. AE is including one representative from the local governments that are served by AE on their current rate review committee.
This ordinance has been reviewed by the City Attorney.
Deadline for City Council Action
There is no deadline for City Council action. The franchise fee will begin when the ordinance is approved.
Prior City Council Action
The ordinance was approved on first reading on April 26, 2011 and second reading on May 10, 2011.
Projected Future City Council Action
By City Charter, a franchise fee ordinance must be read three times.
Fiscal Impact
It is estimated that AE will remit $19,000 per year to the City of Pflugerville for this franchise. AE has decided at this time to not pass this franchise fee onto the affected customers. It will be considered an operating cost of the entire AE system.
Staff Recommendation
Approve the ordinance on third and final reading granting the City of Austin franchise.
Drafter
Lauri Gillam
Assistant City Manager