Subject: General Business
Title
First Reading: An Ordinance of the Board of Trustees of the Town of Erie Granting a Natural Gas Franchise to Black Hills Colorado Gas, Inc. d/b/a Black Hills Energy
Body
Department: Public Works
Presenter: Todd Fessenden, Public Works Director
Time Estimate: 15 minutes
only required for non-consent items
Staff Recommendation:
Recommendation
Approve the first reading of the Ordinance adopting the Franchise Agreement with Black Hills Energy.
End
Staff has been working with Black Hills Energy (BHE) since the fall of 2019 to negotiate a franchise agreement that includes a 3% fee that BHE will pay to the Town as compensation for BHE's use of Town right-of-way. The agreement proposed has a 15-year term. This issue was brought to the Board of Trustees April 27, 2021 where it received a majority vote in favor. This item then moved forward to a subsequent meeting on June 22, 2021 for a second reading and failed. A study session occurred on July 14 to provide more information and address key concerns such as the cost to residents for franchise fees and safety considerations. The fees associated with this franchise agreement are in line with fees currently in effect with other natural gas providers, and consistent with other localities. Also, certainty around our mutual interests is in the interest of Erie residents at a nominal cost of less than two dollars per month under current estimates.
This is the first agreement with Black Hills Energy even though the company has been providing gas service to customers in Town through its existing gas utility infrastructure. The utility is responsible for complying with C.R.S. 31-32-101 through 103 as part of getting approval and therefore the ordinance shall be read at least twice in full. Representatives from Black Hills Energy will provide a brief presentation and answer questions. The second reading of the ordinance will be on November 9, 2021.
Fiscal Impact: N/A
Board Priority...
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