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Resource Management Commission presses for public input as city staff readies Texas Gas Service franchise negotiations
Summary
After a staff briefing on gas franchise timelines for Texas Gas Service, commissioners asked for more public hearings and for staff to share the negotiation framework so the Resource Management Commission and customers can provide meaningful input.
City staff briefed the Resource Management Commission on the upcoming natural gas utility franchise renewals and requested policy priorities from the Commission for the Texas Gas Service (TGS) franchise negotiation.
City staff summarized the typical franchise terms and oversight provisions: franchise agreements grant non‑exclusive rights to construct, operate and maintain gas infrastructure in city rights of way, typically carry an initial 10‑year term with an additional 10‑year renewal, and include a 5% franchise fee on gross revenues for operations within city limits (paid quarterly and recoverable through rates), according to the staff presentation.
Staff also shared a proposed timeline for the TGS renewal process: departments provided requested franchise amendments by the end of the month and staff aimed to finalize a franchise agreement for city council consideration in July 2026. Staff said the ordinance adoption will require three council readings and that staff requested RMC priority recommendations be approved by council no later than November for consideration in franchise negotiation.
Commissioners said they wanted broader public engagement. Vice Chair Robbins and others urged staff to hold public hearings or other mechanisms to collect input from TGS customers beyond the commission’s six to ten members. Commissioner Lukey asked whether the RMC can hold public hearings and asked for clarity on how customers can participate; staff said there were no stakeholder‑facing public sessions scheduled and agreed to discuss options with legal and other departments.
Several commissioners asked staff to disclose the negotiation framework—including the specific issues and parameters staff expects to negotiate—so the RMC and public can provide focused policy input. Commissioner Sullivan suggested postponing the RMC’s formal recommendations until early 2026 to give volunteer commissioners and members of the public reasonable time to participate; staff said it would review how that adjustment would affect negotiations.
City staff also noted franchise provisions that permit city inspection and audit of franchise fees and allow the city to request management audits of company operations; the cost of such audits is charged to and recoverable from the company under the agreements, staff said.
No formal commission action was taken; commissioners asked staff to return with options for broader public outreach and with a framed list of negotiation topics so the RMC can provide informed recommendations.
