Title
Invitation for Bids to Qualified Natural Gas Public Utility Service Providers for Non-Exclusive Franchise to Construct, Maintain, and Operate a Natural Gas System within the Public Streets and Public Rights-of-Way in the City of Hampton for the Purpose of Providing Natural Gas Public Utility Services to Citizens of the City
Purpose
PURPOSE/BACKGROUND:
Virginia Natural Gas, Inc.(VNG), a natural gas public utility service provider, contacted the City of Hampton (the “City”) and advised that VNG can better serve the citizens of the City by having a franchise to use and occupy the public streets and public rights-of-way located within the City for the purpose of providing Natural Gas Public Utility Services. Pursuant to the Constitution of Virginia and the Virginia Code, the City has the authority to grant franchises and other authorizations for the use and occupancy of the public streets and public rights-of-way. Pursuant to the provisions of §15.2-2100 et. seq. of the Code of Virginia, 1950, as amended, the City agreed to offer franchises to qualified providers by publicly inviting bids for a non-exclusive franchise agreement, subject to the terms and conditions set forth in the City’s proposed ordinance (the “Ordinance”) attached hereto which includes an Agreement attached as “EXHIBIT 1” to the said Ordinance. The Public Notice for the invitation for bids for the franchise and for the subsequent adoption of the Ordinance was run in the Daily Press once a week for two successive weeks as required by the Code of Virginia. The bids are being received and opened at this Council meeting (March 25, 2026) and the granting of a franchise to successful qualified bidder(s) will occur at the April 8, 2026 Council meeting after a public hearing. The successful bidder(s) shall reimburse the City the cost of the advertisement involved in this matter. The successful bidder(s) shall comply with all requirements set forth in §15.2-2100 et. seq. of the Code of Virginia, 1950, as amended. The City reserves the right to reject any and all bids.
Per the requirements of §15.2-2101 and §15.2-2102 of the Code of Virginia, 1950, as amended, procedures are required to be followed for the receiving and opening of bids. The following is required:
1) The bids shall be in writing and delivered upon the day and hour named in the advertisement (no later than 9:00 a.m. on Friday, March 20, 2026);
2) The bids shall be opened in public session and marked for identification by the Clerk of Council;
3) The Mayor shall read aloud, or cause to be read aloud, a brief summary of each of the bids that have been received, for public information;
4) The Mayor shall then inquire if any further bids are offered;
5) If further bids are offered, they shall be received;
6) The Mayor shall thereafter declare the bidding closed; and
7) The Mayor shall advise the public that City staff will review all bids received and give their recommendations at the Public Hearing to be held during the Council meeting on April 8, 2026.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
That City Council receive and open bids for the said non-exclusive natural gas service franchise during the Council meeting on March 25, 2026 in accordance with the Code of Virginia and conduct a Public Hearing during the Council meeting on April 8, 2026 to consider the bids received, award the referenced franchise to the successful qualified bidder(s), and adopt the appropriate ordinance(s) to grant the referenced franchise.
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