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Res 041-2010 4/6/2010 RESOLUTION NO: 41-2010 Resolution Authorizing The City Manager To Execute A Pipeline Agreement With Atmos Pipeline-Texas, Authorizing Said Company To Maintain A 10" Natural Gas Pipeline Along Fairway Boulevard And Across Barnett Road, And Permitting Said Pipeline To Provide Natural Gas Service To The Signal Hill Electric Generation Facility At 4511 Allendale Road and to 4515 Allendale Road WHEREAS, local industries that receive natural gas service through natural gas distribution lines within the City must pay a 5% franchise fee for natural gas distributed to said entities in the City limits; WHEREAS, local industries that receive electric service from electricity distribution facilities must normally pay a franchise fee on electricity consumed within the City limits; WHEREAS, on January 1, 2010, the City of Wichita Falls annexed the Signal Hill Electric Generation Facility at 4511 Allendale Road ("Power PIanY') into the city limits, and such annexation creates the potential for franchise taxation of both the primary input and the sole output of the Power Plant, reducing its cost-competitiveness on the wholesale power market; and WHEREAS, to encourage capital investment in the electricity production infrastructure and avoid the capital investment disincentive of double-taxation at this time, the City desires to allow said Power Plant to continue to receive its natural gas directly through a 10" natural gas pipeline along Fairway Boulevard and across Barnett Road rather than through the normal franchise-taxed infrastructure of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS: The City Manager is authorized to execute a Pipeline Agreement with Atmos Pipeline-Texas to allow said company to maintain a presently existing 10" Natural Gas Pipeline along Fairway Boulevard as depicted in the attached Drawing and across Barnett Road, and permit said Pipeline to provide natural gas service to the Signal Hill Electric Generation Facility at 4511 Allendale Road and to 4515 Allendale Road, subject to a 5% permit fee on gas provided to facilities other than electricity generating plants. Said Pipeline Agreement may have an initial term of up to 5 years and shall be in a form to be approved by the City Attorney. PASSED AND APPROVED, this the 6 th day of April, 2010. 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