Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Franchise Agreement topic
No spam. Unsubscribe anytime.
Council discusses natural‑gas franchise agreement; staff to propose 10‑year term and draft ordinance language
Summary
Council reviewed a proposed natural‑gas franchise agreement and instructed staff to pursue a shorter term, with several members favoring a 10‑year contract, inclusion of a franchise‑fee authority clause and updated insurance language; staff will schedule a public hearing before the agreement’s September expiration.
The Kasson City Council on April 1 reviewed a draft franchise agreement with the local natural‑gas provider and gave staff direction to pursue a shorter contract term and to bring back ordinance language for council consideration and a public hearing before the current agreement expires in September.
Staff reported the gas company is open to a shorter term; company representatives frequently use 15‑ and 20‑year contracts and some have used 25 years, but they indicated flexibility on length. Several council members said a 10‑year term would be more appropriate to allow future councils flexibility given possible ownership changes at the utility; staff confirmed they will return with draft language reflecting a 10‑year term for council consideration.
Council also discussed whether to include a clause preserving the city’s authority to charge a franchise fee in future (without immediately imposing a fee) and staff and another councilmember encouraged adding standard insurance requirements from the League of Minnesota Cities model franchise ordinance. Council directed staff to work with the utility on the revised term and to schedule a public hearing on an updated ordinance before the current franchise expires in September.
No formal vote was taken on a final ordinance; staff said they would bring back the 10‑year draft and related insurance/franchise‑fee language and then schedule the required public hearing.
