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Council tables gas-franchise renewal after public questions about passing costs to customers
Summary
Ordinance 15-31 — proposing a franchise fee increase from 3% to 6% for the natural gas franchise — was discussed but tabled for further research; staff noted the existing franchise was signed 06/19/2006 and may expire 06/19/2026, and that a 6% cap is state-sanctioned.
Council opened discussion on Ordinance 15-31 to renew the natural gas franchise and consider raising the franchise fee from 3% to 6% to match other utilities. Staff said the current franchise was signed 06/19/2006 and that a 20-year term meant the contract's expiration raises a timing question; staff also noted the state sanction amount is 6% and that the fee goes to the general fund rather than the utility.
Residents and councilors asked whether the full fee would be passed to customers; staff and council agreed the fee is paid by the utility and is commonly passed through in bills, though the contractor relationship affects visibility on customer bills. After discussion and public comment the council decided to take no action at this meeting and table Ordinance 15-31 for further research and notice requirements.
