Title
Ordinance Accepting the Bid Submitted by Virginia Natural Gas, Inc. for a Non-Exclusive Franchise Agreement to Occupy and Use the Public Streets and Public Rights-of-Way Located in the City of Hampton for Providing Natural Gas Public Utility Services
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, but if the franchise is for a period greater than five years, then the City must go through the bid process set forth in the Virginia Code. 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 and Agreement attached as “EXHIBIT 1” thereto. The Public Notice for the invitation for bids for the franchise and for the subsequent adoption of the Ordinance was run in the newspaper as required by the Code of Virginia. At the March 25, 2026 City Council Meeting, one bid from VNG was received and opened.
City staff recommends accepting VNG's bid and granting VNG the non-exclusive franchise as set forth in the aforesaid "EXHIBIT 1." As required by the Virginia Code, a public hearing has been scheduled for the April 8, 2026 City Council Meeting.
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Hold public hearing, accept bid, and approve the Ordinance.
Body
WHEREAS, during the City Council meeting on March 25, 2026, pursuant to the provisions of §15.2-2100 et. seq. of the Code of Virginia, 1950, as amended, the City offered franchises to qualified natural gas service providers to provide Natural Gas Public Utility Services to citizens of the City, by publicly inviting bids for a non-exclusive franchise, subject to the terms and conditions set forth in that certain Natural Gas Service Non-Exclusive Franchise Agreement (the “Agreement”) attached hereto as “EXHIBIT 1” and made a part hereof to this Ordinance;
WHEREAS, Virginia Natural Gas, Inc. (“VNG”), a Virginia corporation, was one of the highest, qualified, responsible bidders;
WHEREAS, the requirements of §15.2-2101 and §15.2-2102 of the Code of Virginia, 1950, as amended, having been met and after careful consideration of the bids submitted, the bid of VNG should be accepted by City Council; and
WHEREAS, the City should grant the aforesaid non-exclusive franchise to VNG subject to the execution of the Agreement in substantially the same form as attached hereto as “EXHIBIT 1” by the parties.
NOW, THEREFORE, BE IT ORDAINED, by the Council of the City of Hampton, Virginia as follows:
1. That the bid of Virginia Natural Gas, Inc., a Virginia corporation, is hereby accepted; and
2. That the City Manager, or her authorized designee, is hereby authorized to execute the Agreement attached hereto as “EXHIBIT 1”, in substantially the same form as set forth in this Ordinance, and to take any and all actions necessary to carry out the purposes of this Ordinance, subject to approval by the City Attorney.