The Natural Gas Franchise Agreement was approved by City Council on April 24, 2006.  The original agreement was for a ten (10) year term. The agreement allows for two (2) five (5) year extensions exercised at the discretion of the Franchisee (The City of Sparks). The first five (5) year renewal was approved by Council on April 11, 2016.  The City collects a five percent (5%) franchise fee from the Natural Gas Franchise Agreement of which fees in excess of two percent (2%) up to the five percent (5%) maximum allowed by state law are allocated to fund 1401 (Road Fund) and 1402 (Parks and Recreation Fund).

On May 22, 2017 Council approved the FY 18 budget with direction to reallocate the franchise fees to provide one third of the fees to fund 1401 (Road Fund) and two thirds of the fees to fund 1402 (Parks and Recreation Fund) for one year.  Currently two thirds of the franchise fees received from the natural gas franchise agreement are allocated to fund 1401 and one third of the fees go to fund 1402.

Two of the artificial turf fields at Golden Eagle Regional Park are deteriorating and in need of replacement during FY 18.  Financial resources within fund 1402 are insufficient and additional funding is needed to replace the turf.  This amendment will allow the City to replace the two deteriorating turf fields within FY 18.

Bill No. 2722 was read into the record by the City Clerk on August 14, 2017 and the date for the Public Hearing was set for August 28, 2017.

This amendment to Chapter 12.46 of the Sparks Municipal Code, will provide flexibility in dedicating revenue generated by the natural gas franchise fees.  This will assist the City of Sparks in maintaining both the City’s parks and its roads.

1. The City Council may choose to reject the amendment to the Ordinance and provide direction to the City Manager.

I move to adopt Bill No. 2722, an Ordinance amending Chapter 12.46 of the Sparks Municipal Code.