Council reviews proposed franchise agreement with Western Co-op, weighing fee, audit and reporting changes

City staff presented a draft franchise agreement update for Western Co-op that would replace language from a 2006 contract. Key topics discussed included the fee percentage (the previous agreement specified 4 percent), a clarified definition of gross receipts (adjusted for refunds, write-offs and regulatory adjustments), proposed monthly transfers instead of semiannual payments, and a 90-day notice requirement for boundary changes.

Staff also highlighted a new audit provision allowing the city to audit Western Co-op's reported revenue; if an underpayment is discovered that exceeds 2 percent, the proposed draft would require the utility to pay the audit costs. Council members noted rising industry practices such as peak-hour rate changes and asked for additional detail on how the percentage and gross-receipts calculations would affect municipal receipts.

No motion or vote was taken; council members asked staff to continue negotiations and to provide options on percentage rates, term lengths and the practical effect of the audit clause.

Next steps: staff to return with recommended percentage options, term proposals and clarifications on audit mechanics and boundary-notice processes.