Council Communication

Avista Corporation Gas Franchise Renewal
Meeting Date:	September 6, 2005		Primary Staff Contact:	Michael Franell 488-5350
Department:	Legal		Email:	franellm@ashland.or.us
Contributing Departments:			Secondary Staff Contact:
Approval:	Gino Grimaldi		Email:
Estimate Time:

Statement: The Avista Corporation natural gas franchise expired this year. The attached franchise with Avista comprehensively addresses the terms and conditions of their right to use the public rights of way within the city. The franchise addresses the fees to be charged, the information to be provided to the City concerning their facilities, relocation responsibilities and liability responsibilities. The proposed franchise is for a ten year term. Under the franchise, Avista will pay 5% of their gross revenues generated from delivery of natural gas to customers inside the City.
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Background: Avista provides natural gas to customers within the City of Ashland. Most of the gas lines used to deliver gas to customers are located within the public rights of way. Avista has a franchise agreement with the City for the location of their lines and facilities within the public rights of way. The ten-year franchise agreement expired this year. We have negotiated a new agreement with Avista covering their rights and responsibilities within the public right of way. Attached is the proposed new franchise agreement.
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Related City Policies: The proposed franchise subjects Avista to the right of way excavation requirements found in Ashland Municipal Code Title 13, Chapter 12.
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Council Options: The Council can accept the franchise renewal by passing the attached ordinance on first reading. The Council could direct staff to negotiate further with Avista, providing staff specific direction on additional desired terms.
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Staff Recommendation: Staff recommends the Council adopt an Ordinance Of The City Of Ashland, Oregon, Granting A Franchise To Avista Corporation For The Construction, Operation, And Maintenance Of Natural Gas Facilities Within The City Of Ashland, Oregon, on first reading by title only.
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Potential Motions: I move the Council adopt Ordinance No. _____, an Ordinance Of The City Of Ashland, Oregon, Granting A Franchise To Avista Corporation For The Construction, Operation, And Maintenance Of Natural Gas Facilities Within The City Of Ashland, Oregon, on first reading by title only.
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Attachments: 1)  An Ordinance of the City of Ashland, Oregon, Granting a Franchise to Avista Corporation for the Construction, Operation, and Maintenance of Natural Gas Facilities within the City of Ashland, Oregon. Click on the PDF file link below to view the following attachments:    • Expired Franchise Ordinances

Avista_Attachments.pdf (391.2KB)

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