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Home My WebLink AboutR-2005-150 Submittal of Special Election RequestRESOLUTION NO. R-2005-150 A RESOLUTION providing for the submittal to the electors of the City of Yakima, Washington, at a special election to be held in conjunction with the State General Election on November 8, 2005, of a proposition as to whether or not a franchise shall be granted to Cascade Natural Gas Corporation, a Washington corporation, and requesting the Auditor of Yakima County, Washington, to hold a special election. WHEREAS, on September 20, 2005, the City Council of the City of Yakima duly enacted Ordinance No. 2005-51, entitled "An Ordinance granting a non-exclusive franchise to Cascade Natural Gas Corporation to construct, operate and maintain a natural gas transmission/distribution system/facility(ies), with all necessary facilities, within the City of Yakima, Washington; setting forth provisions, terms and conditions accompanying the grant of this franchise; providing for City regulation of construction, operation, maintenance and use of the natural gas transmission/distribution system/facility(ies); prescribing penalties for the violations of its provisions; and setting an effective date," which Ordinance cannot become effective unless approved by a majority of electors of the City of Yakima voting on said franchise, all as required by Article XI, Franchises, of the City of Yakima; and WHEREAS, a special municipal election is required to be held in the City of Yakima in conjunction with the State General Election on November 8, 2005, in order that the aforesaid franchise ordinance may be submitted to a popular vote of the electors of the City of Yakima, all as provided by the City of Yakima Charter; and WHEREAS, the City Council finds and declares that an emergency exists requiring the special election be held as provided by this resolution; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. That a special election be held in the City of Yakima in conjunction with the State General Election to be held on November 8, 2005, all in accordance with applicable laws, for the purpose of submitting to the electors of the City of Yakima for their approval or rejection a proposition as to whether or not a franchise shall be granted to Cascade Natural Gas Corporation, a Washington corporation, all as provided for by the aforesaid franchise ordinance, a copy of which ordinance is attached hereto and by reference made part hereof. Section 2. That the ballot title for the aforesaid proposition shall be as follows: PROPOSITION Shall Cascade Natural Gas Corporation, a Washington corporation, be granted a non- exclusive franchise to construct, operate and maintain a natural gas transmission/distribution system/facility(ies), with all necessary facilities, within the City of Yakima? Yes No Section 3. That the County Auditor of Yakima County, Washington, is hereby requested to hold a special election in conjunction with the State General Election on November 8, 2005, all in accordance with the provisions of this resolution, and the Clerk of the Council is hereby directed to notify the County Auditor of Yakima County, Washington, of the passage of this resolution and to do all other things necessary in the time and manner required by law to the end that the proposition set forth hereinabove shall be submitted to the electors of the City of Yakima, Washington, as aforesaid. ADOPTED BY THE CITY COUNCIL this 20+1'day of September, 2005. ATTEST: 44.tft— T2s—c.4..r.� City Clerk 2 Paul P. George, Mayor CITY OF YAKIMA FRANCHISE PROPOSITION NO. CASCADE NATURAL GAS CORPORATION FRANCHISE Official Ballot Title: Shall Cascade Natural Gas Corporation, a Washington corporation, be granted a non- exclusive franchise to construct, operate and maintain a natural gas transmission/distribution system/facility(ies), with all necessary facilities, within the City of Yakima? Explanatory Statement: The current franchise ordinance under which Cascade Natural Gas Corporation operates its natural gas transmission and distribution system expires on November 17, 2005. Passage of this Proposition would grant a ten-year non-exclusive franchise to Cascade Natural Gas Corporation that would allow it to continue its business of transmission and distribution of natural gas in the City of Yakima under the terms and conditions contained in the franchise ordinance. The full franchise agreement is contained in Ordinance No. 2005-51, passed by the Yakima City Council on September 20, 2005. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of September 20, 2005 ITEM TITLE: Consideration of an ordinance relating to the granting of a franchise to Cascade Natural Gas Corporation ("CNG") for a period of ten years; and consideration of a resolution providing for the submittal to the electors at a special election on November 8, 2005, of a proposition as to whether the franchise shall be granted to CNG. SUBMITTED BY: Finance Department CONTACT PERSON/I'ELEPHONE: Rita Anson, Finance Director, 575-6070 Randy Beehler, Community Relations Manager, 575-6092 SUMMARY EXPLANATION: This agenda item contains one ordinance and one resolution as follows: (1) An ordinance granting a non-exclusive franchise to Cascade Natural Gas Corporation ("CNG") to construct, operate and maintain a natural gas transmission/distribution system/facility(ies), with all necessary facilities, within the City of Yakima, Washington (the "City"); setting forth provisions, terms and conditions accompanying the grant of this franchise; providing for City regulation of construction, operation, maintenance and use of the natural gas transmission/distribution system/facility(ies); prescribing penalties for the violations of its provisions; and setting an effective date; and (2) A resolution providing for the submittal to the electors of the City of Yakima, Washington, at a special election to be held in conjunction with the State General Election of November 8, 2005, of a proposition as to whether or not a franchise shall be granted to Cascade Natural Gas Corporation, a Washington corporation, and requesting the Auditor of Yakima County, Washington, to hold a special election. Resolution X Ordinance X Other (Specify) (Continued on Page Two) Contract Mail to (name and address): Phone: Funding Source APPROVED FOR SUBMITTAL: City Manager STAFF RECOKMENDATION: Staff respectfully recommends that City Council pass the Ordinance and adopt the Resolution. BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: ( age Tin) This ordinance and resolution are being presented to the City Council following negotiations with Cascade AT.,+,,.•.,1 Gas Corporation ("CNG") regarding `i-- franchise. The ordinance �, franchise Natural regarding the ordinance is the franchise itself. This franchise is for a period of ten years. This franchise Ordinance is to be submitted to a vote of the electors of the City on the November 8, 2005 general ballot pursuant to Article XI of the Yakima City Charter. This franchise Ordinance shall become effective if approved by a majority of such electors voting on the franchise at said election, provided that CNG, within thirty (30) days of said election, files with the City Clerk a written acceptance pursuant to Section 9.10 of the franchise Ordinance Cascade Natural Gas Corporation has operated in the City of Yakima for many decades. The current franchise Ordinance with Cascade Natural Gas C'nrnnration terminates November 17 2005, pursuant to Section 2 of Ordinance No. 2438. ` ___..� ___4___., on November . _asa , __ _ , , Because RCW 35.21.860 currently does not allow the City to continue to impose the current 2% franchise fee on a gas distribution business, it is anticipated that an ordinance will be presented to the City Council for consideration at its business meeting on October 4, 2005, which would amend the utility tax on CNG's business to adjust the utility tax by 2% on the furnishing or selling of natural gas to maintain revenue neutrality. This amendment will maintain the status quo in terms of revenue to the City from CNG's business activities in the City of Yakima. A similar adjustment was made in Section 5.50.050 of the Yakima Municipal Code in past years from a 2% franchise fee to a 2% additional utility tax on telephone and electric utilities (Pacific Power). The attached resolution calls for a special election to be held November 8, 2005, so the proposed franchise may be voted on by the citizens of the City of Yakima, as required by Article Xi of the Yakima City Charter.