Title
Consider and take action on ordinance amending Ordinance 2023-24 to expand the limited franchise with Universal Natural Gas, LLC (d/b/a Universal Natural Gas, Inc.) to operate and maintain a gas distribution system for the transportation, distribution and/or sale of gas to customers in League City through the use of public rights-of-way - Third Reading (City Manager)
Council approved first reading 7-0-0 on April 22, 2025.
Council approved second reading 8-0-0 on May 13, 2025.
Background:
Approval of this agenda item will authorize the third (and final) of three required readings of an ordinance expanding the limited gas franchise to Universal Natural Gas, LLC which operates and maintains a gas distribution system for the transportation, distribution and/or sale of gas to customers in League City through the use of public rights-of-way. Specifically, this franchise expansion will allow service to the Legacy Development in League City. Per Article IX of the League City Charter, any ordinance granting or amending a public utility franchise must have 3 readings before the City Council.
Franchise fees are the rental costs paid by utilities that use the city’s rights-of-way or other city property to transmit their services. Rights of way, just like other land interests, are valuable to a city and cannot be given away to private companies free of charge as required under Article III, Section 52 of the Texas Constitution.
Universal Natural Gas, LLC., (UNIGAS) is a regulated natural gas distribution entity on file with the Texas Railroad Commission. UNIGAS has been around since 1993 and operates all over the State of Texas primarily in areas outside of Houston, DFW, San Antonio, and Austin. Their goal is to provide safe, reliable, and economical natural gas services to residential and commercial customers (unigas-tx.com).
UNIGAS proposes to pay League City a franchise fee of 5% of its gross receipts. The fee is based off of gross receipts or gross revenue ...
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