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Item 5.
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| City Council Regular | |
| Date: | 03/08/2021 |
| Title: | Public Hearing and First Reading on Ordinance Granting Franchise to Montana-Dakota Utilities, Co. to Provide Gas Distribution Services |
| Presented by: | Gina Dahl |
| Department: | Legal |
| Presentation: | No |
RECOMMENDATION
Staff recommends that Council adopts on first reading the proposed ordinance granting a non-exclusive franchise to Montana Dakota Utilities Co. ("MDU") for the operation of a gas distribution system.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
MDU was provided a franchise to operate a gas distribution system within the City of Billings via Ordinance 4232 in 1979. That franchise was renewed on April 24, 2005 via Ordinance 05-5325 for 15 years which expired May 9, 2020.
The proposed franchise is a non-exclusive franchise to operate for 15 years that addresses issues related to relocation, system development, and other key operational areas. City staff worked with Brandon Lance, Regional Director of MDU in Billings to ensure there were no issues which needed to be addressed in the language of the proposed ordinance. The proposed ordinance has been reviewed by both Legal and Public Works and there have been no substantive changes made to the Ordinance granting the franchise.
Montana law provides that utilities may assert some statutory rights to use public rights-of-way for utility lines and facilities. This ordinance simply allows the City to regulate MDU's use and to establish terms and conditions of MDU's use of the public rights-of-way.
The proposed franchise is a non-exclusive franchise to operate for 15 years that addresses issues related to relocation, system development, and other key operational areas. City staff worked with Brandon Lance, Regional Director of MDU in Billings to ensure there were no issues which needed to be addressed in the language of the proposed ordinance. The proposed ordinance has been reviewed by both Legal and Public Works and there have been no substantive changes made to the Ordinance granting the franchise.
Montana law provides that utilities may assert some statutory rights to use public rights-of-way for utility lines and facilities. This ordinance simply allows the City to regulate MDU's use and to establish terms and conditions of MDU's use of the public rights-of-way.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve. Regardless of the approval of this franchise, a public utility must have the ability to use the public right-of-way for utility lines and facilities and this grant of franchise allows the City to set terms and conditions for MDU's use of the public right-of-way.
FISCAL EFFECTS
None
SUMMARY
This ordinance allows the City to set terms and conditions for MDU to use the public right-of-way as approved by the City pursuant to this franchise and city ordinances.