Title
Approving an ordinance on second reading with the caption reading: An Ordinance of the City of Pflugerville, Texas, granting to SiEnergy, L.P. 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
SiEnergy Gas, LLC currently provides gas service within the City of Pflugerville under a franchise agreement that was approved originally May 12, 2015 by Ordinance No. 1219-15-05-12. That agreement expired in July 2025. The purpose of implementing a franchise agreement with SiEnergy 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 previous agreement had a 4-percent franchise fee.
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 presented here is the draft recommended for adoption. There is an attached memo to provide an overview of the key terms in the recommended agreement.
Prior City Council Action
City Council approved the ordinance on first reading at the August 12, 2025 meeting.
Deadline for City Council Action
Staff is requesting action at the August 26, 2025 City Council meeting.
Funding Expected: Revenue 5% franchise fee Expenditure __ N/A __
Budgeted Item: Yes __ No __ N/A __
Budget Source: ____________
Amount...
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