Subject
This ordinance affirms the terms by which Cascade Natural Gas is allowed to use city street rights of way to provide this valuable service to customers in Hermiston.
Summary and Background
City Staff, and our utility franchise specialist attorneys from Cable-Huston, LLP, have been negotiating a renewal of Cascade Natural Gas' franchise agreement to operate within the city since 2019.
The main components of the franchise remain unchanged from previous franchise agreements.
Tie-In to Council Goals:
Goal 6- Plan for city facilities that meet current and future needs.
Fiscal Information
In exchange for utilization of City-owned street rights of way, Cascade pays the City a fee equal to 5% of the company's gross revenues earned from serving customers within the City. This fee is directly in-line with what most other Oregon cities charge. City Council raised this fee from 3% to 5% in 2017, specifically to increase funding for street maintenance.
Cascade's customers in Hermiston pay approximately $140,000 per year to the City in the form of franchise fees.
Alternatives and Recommendation
Alternatives
1. Approve Ordinance #2321.
2. Recommend changes to Ordinance #2321 & direct staff to consult with Cascade on proposed changes.
Recommendation
Approve Ordinance #2321 as presented.
Requested Action/Motion
Motion to approve Ordinance #2321 as presented.
Submitted By: Mark Morgan