Midlothian council renews electric and gas franchises, approves development communications contract and several utility contracts

The Midlothian City Council on Aug. 12 approved multiple consent and regular-agenda items, including franchise renewals for electric and natural gas utilities, a $76,000 communications contract for the Midlothian Community Development Corporation (MCDC), two utility construction contracts and several board nominations. All votes on the listed items were unanimous, 7-0.

Franchise renewals: The council adopted an ordinance extending a natural gas franchise to Universal Natural Gas LLC and approved an ordinance granting Encore Electric Delivery Company LLC a nonexclusive franchise to use city rights-of-way. Council members asked questions about rates and the franchise-fee formula; Kirk Bradford of Encore explained that the franchise rate components and per-kilowatt-hour charges are set through the state process overseen by the Public Utility Commission (PUC). “That is set by the PUC,” Bradford told the council, distinguishing retail electric provider charges from Encore’s tariffed components.

Bradford outlined franchise-fee components as described to council: a consumption-based factor derived from historical consumption (established in the late 1990s), DD fees (a tariff component he described as producing a 4% factor on certain non-consumption charges), and a per-kilowatt-hour component that is recovered as part of the wires charge on customer bills. He told the council city franchise payments are calculated from consumption inside the city, and that franchise fees are recovered through charges passed to ratepayers.

MCDC strategic communications plan: The council approved a resolution authorizing a $76,000 expenditure by the Midlothian Community Development Corporation (MCDC) to Holmes Millet for development of a strategic communications plan. Melissa, a city presenter, said the plan will integrate MCDC’s brand and values into communication tools and messaging, help volunteers and the board convey the corporation’s role to residents and businesses, and include benchmarks and an annual assessment to measure success. The contract was moved by Councilman Weaver and seconded by Councilman Sheffield; the measure passed 7-0.

Utility project contracts: The council awarded a base bid of $657,009.60 plus a 10% contingency (total not to exceed $723,007.56) to Atkins Bros Equipment for the 2024–25 Midlothian utility package project, and awarded a base bid of $305,008.86 plus a 5% contingency (total not to exceed $321,180.30) to Services LLC for the Highway 287 Firefly Loop 16-inch waterline project. Staff said the waterline work will loop the system to improve flow and water quality and anticipates future roadway widening in that corridor.

Board appointments: The council approved nominations recommended by the board nominations committee: Greg Wilhelm and Tim Toby to the Midlothian Economic Development board; Bobby Worley moved from the Utility Advisory Board to the parks board; and Valencia Daniels to the Utility Advisory Board. Councilman Rogers made the motion, seconded by Mayor Pro Tem Wickliffe; the vote was 7-0.

Executive session and other items: The council convened in executive session on a single real-estate matter under Texas Government Code Section 551.072. The meeting returned to open session with no action taken from executive session and adjourned at 6:50 p.m.

Ending: Council members said staff will return with follow-up details as needed; all listed items were approved unanimously and will move forward under the contracts and ordinance terms voted on Aug. 12.