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Consent

Brentwood City Commission Agenda

Meeting Date:	01/12/2021
Ordinance 2020-10 - Granting a Franchise to Piedmont Natural Gas Company, Inc.
Submitted by:	Kristen Corn, Legal
Department:	Legal

Information

Subject

Ordinance 2020-10 - Granting a Franchise to Piedmont Natural Gas Company, Inc.

Background

On December 11, 1995, the City granted a franchise for the right, privilege, authority, and consent to place, construct, and manage gas lines within the City limits to Nashville Gas Company, a division of Piedmont Natural Gas Company, Inc. ("Piedmont"). That franchise agreement had a term of 25 years, and it is now expiring.

Staff has worked with Piedmont to draft a new franchise with substantially similar terms as the original. Specifically, Piedmont has the right to install, repair, maintain, and inspect its pipes within the City, and they will repair such areas to the original condition to the best of their ability. Piedmont will also file any construction plans with the City prior to any non-emergency work. (It is important to note, however, that Piedmont has essentially built out its lines to the extent necessary within the City limits.) The proposed franchise also adds a provision for Piedmont to endeavor to work with the City to relocate its pipelines in a timely manner for City road projects, with the City agreeing to avoid the necessity of such whenever the design of a project makes that feasible.

The proposed franchise retains the option for the City to collect from Piedmont an amount of up to five percent of the annual gross revenues collected by Piedmont from its customers within the City limits. As was the case for the original franchise, the City would have to pass a resolution calling for this payment to be required.

After second and final reading on January 12, 2021, the franchise will have to be approved by the Tennessee Public Utility Commission and will become effective after that approval.

Please contact the City Manager or City Attorney if you have any questions about the proposed ordinance.

Staff Recommendation

Staff recommends passage of Ordinance 2020-10.

Previous Commission Action

Ordinance 2020-10 was passed unanimously on first reading at the December 14, 2020 meeting.

Fiscal Impact

Attachments
Ordinance 2020-10
Signed Ordinance