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Committee backs 5-year franchise with Mountaineer Gas paying $60,000 a year
Summary
The Administration and Finance Committee voted to forward to full council a five-year franchise agreement with Mountaineer Gas Company that would pay the city $60,000 annually for use of city rights-of-way and preserve inspection and repair standards.
The Administration and Finance Committee on June 23 voted to forward to full council with a favorable recommendation a five-year franchise agreement with Mountaineer Gas Company that would pay the City of Huntington $60,000 per year for use of city rights-of-way.
The franchise would allow Mountaineer Gas to use streets, sidewalks and other city property under a recurring-fee arrangement rather than requiring a permit each time the utility excavates the right-of-way; it also preserves city inspections and repair standards, city officials said.
Scott Damron, city attorney, told the committee, "Mountaineer Gas will pay the City $60,000 per year for the agreement. It's a 5 year agreement with potential for renewal upon written agreement of the parties." He said the franchise compensates the city for use of the right-of-way and the inspections that must take place while relieving the utility of repetitive permitting. Damron added that the agreement "does not obviate the inspections process. There's still an inspection to make sure that the streetways or the sidewalks are put back to where they should be." The ordinance also requires indemnification and insurance by Mountaineer Gas and includes standards for street repairs, including replacement of brick streets with matching brick, and protections for trees and green space.
Damron said the city's previous franchise with Mountaineer dated to the early 2000s and paid $30,000 per year. He also told the committee the city presently has one other franchise with Comcast and plans in the future to seek franchises with the water and power companies. In committee discussion, members asked whether other West Virginia municipalities used similar franchise agreements; Damron said such agreements are less common in West Virginia and more typical in larger cities or other states where utility-franchise revenues can be higher.
The committee motion to forward the ordinance to full council "with a favorable recommendation" was made by Miss Holly and seconded by Peter Rumbaugh; the committee approved the motion by voice vote.
The measure will next be considered by the full Huntington City Council.
