Baker City council adopts updated franchise agreement with Cascade Natural Gas

Baker City — The Baker City Council on Jan. 14 adopted Ordinance No. 3406, renewing the city's nonexclusive franchise with Cascade Natural Gas Corporation to construct, maintain and operate a natural gas distribution system within Baker City's public rights-of-way.

The ordinance, read in full at the meeting and approved by unanimous vote, sets a five-year primary term and provides that the franchise will automatically renew for successive two-year periods unless either party gives written notice at least 90 calendar days before the end of the then-current term. The ordinance specifies insurance minimums, customer-service requirements and compensation terms the company must pay to the city.

City Manager Barry (first reference uses only given name in the record) presented the ordinance and said he had incorporated council input and Cascade’s review into the draft. Greg Watkins, identified at the meeting as representing Cascade, thanked council after the vote: “I just wanna thank you for having me at the meeting, Mayor Doherty and city council. I appreciate it. And, I've really enjoyed working with Barry through this process and, getting this amended.”

Under the ordinance, Cascade must maintain toll-free customer service and emergency numbers, keep records of utility plant assets, and furnish those records to the city on request for limited inspection related to verifying compensation payable to the city. The ordinance requires minimum insurance limits (including $1,000,000 per occurrence general liability and $1,000,000 auto liability) and sets procedures for excavation, restoration and relocation of facilities when the city undertakes public improvements.

The franchise includes provisions governing transfer or assignment of the grantee's rights, preservation of statutory and charter authority for the city, and a purchase clause allowing the city to acquire Cascade's local distribution facilities under a specified process with appraisal, arbitration and voter approval if bonds are needed to finance acquisition. The ordinance also contains a 120-day acceptance deadline: the grantee must file written acceptance within 120 days or the ordinance becomes null and void.

Councilors made no public amendments during the Jan. 14 meeting; after the ordinance was read and motions were made and seconded, council voted in favor of first reading and later approved the ordinance by title on second reading and final passage. The council opened a public hearing before the first reading but received no public testimony specific to the franchise.

Because the franchise touches public safety, utilities and city fiscal interests, the ordinance also spells out inspection rights and limits on the scope of any city audit of grantee records to those necessary to verify compensation owed to the city.

The franchise replaces or updates terms from the city's earlier ordinance 3251 (referenced in the new text), and councilors said they had discussed the evergreen renewal language and other routine clarifications during prior meetings.

Council approved the ordinance on the council floor without recorded dissents; city staff and Cascade indicated they will proceed with the acceptance and administrative steps required by the ordinance.