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Montgomery council approves gas franchise ordinance with 5% fee
Summary
The council approved an ordinance granting C Energy LP a gas franchise for the city, amending the draft to specify a 5% franchise payment in the contract language before final adoption.
The City of Montgomery City Council voted March 25 to approve an ordinance granting C Energy LP a franchise to supply and distribute gas within the city, adopting a change to specify a 5% franchise payment in the contract language.
Council considered an ordinance drafted as proposed ordinance 2025-09. During discussion a council member noted ambiguity in the draft on the franchise-fee percentage in section 10 (page 9). The attorney and staff confirmed the standard franchise fee used in other cities is 5% and that the draft uploaded to the agenda management system had not contained the finalized insertion. A council member moved to amend the motion to include the 5% language on page 9, section 10; the amendment was accepted.
The council then voted to accept item 12 as presented with the 5% change. The mayor announced the ayes had it and the motion carried. The ordinance grants C Energy LP the franchise rights described in the ordinance text, including provisions for payment of a fee for use of streets, alleys and public ways and standard severability and penalty clauses. The ordinance number recorded for the draft was 2025-09.
