City goes ahead with franchise agreements

Hearing no concerns from the citizens of Sundance, the city council will move ahead with its idea to introduce formal franchise agreement requirements with utility companies that serve citizens within town limits. The move was suggested in the light of looming budget cuts from the state, as a way to add a little more revenue for the city.

“The revenue picture is not any better,” said Mayor Paul Brooks, referring to the council’s decision to take a month to think about the idea. In that month, he added, nobody has contacted the council or city staff to express concern.

“I don’t want to see the growth of the town stalled by the budget constraints coming from the state,” Brooks said, asking the council for a decision on moving ahead.

When the topic was initially raised last month, it was pointed out that franchise agreements do already exist in Sundance, allowing utilities to make use of the city’s rights-of-way to install the necessary equipment to serve their customers. However, they have tended not to reflect the usual way of doing things.

In other municipalities, franchise agreements often involve a small percentage of the gross revenue generated within town limits. In Sundance, however, existing franchise agreements have come in the form of in-kind work, such as upgrades to city equipment.

The topic came up because Visionary has recently expressed interest in a franchise agreement. Clerk Treasurer Kathy Lenz told the council that they have proposed 3% of gross revenue raised in Sundance.

After thinking about it for a month, the council put forth a motion to institute franchise agreements. The motion was unanimously approved.