Memorandum

City of Lawrence

Department of Legal Services

TO:	David L. Corliss, City Manager Diane Stoddard, Assistant City Manager Cynthia Boecker, Assistant City Manager
FROM:	Toni Ramirez Wheeler, Director of Legal Services R. Scott Wagner, Management Analyst
Date:	February 19, 2008
RE:	Atmos Energy – Franchise Agreement

Attached for City Commission consideration is Ordinance 8237 adopting a new franchise agreement with Atmos Energy Corporation. The proposed agreement is similar to the existing franchise agreement the City has with Aquila (previously Kansas Public Service) Ordinance 7155. The primary difference between the two agreements is that the Atmos agreement is based on a franchise fee of 5% of gross receipts, whereas the Aquila agreement is based on a volumetric rate. However, pursuant to Section 7 (B), if Atmos begins providing service to ten (10) or more customers, both parties agree to amend the franchise by separate ordinance to a volumetric sales basis. Currently, Atmos serves, inside the City limits, the East Hills Business Park and areas east of Franklin Road (see attached map).

Action Recommended:

City Legal Staff recommends adoption of Ordinance 8237.