Lago Vista council tells electric cooperative it will sign new franchise only with stronger permitting, reporting and shorter term

The Lago Vista City Council on July 16 set conditions it wants included in a renewed franchise agreement with the local electric cooperative before it will sign: a five‑year contract term with no automatic renewal, a clear permitting/notification process for right‑of‑way work and an annual franchise fee reporting requirement.

Councilor Prince moved the directive after months of staff negotiation and public discussion. His motion asked staff to communicate that the council is ready to sign only if the cooperative agrees to: a five‑year duration without automatic renewal; a permit requirement or immediate notification for excavation and right‑of‑way work (with an emergency notification carve‑out for storm response); and an annual report showing gross revenue used to calculate franchise fees. Councilor Prince said the changes are intended to preserve the city’s ability to audit and verify franchise calculations and to protect the public right‑of‑way.

City Manager Charles West confirmed the current agreement in place remains binding until a new agreement is executed; he also said staff can return to the cooperative with the council’s conditions. Councilor Chabria and multiple residents raised concerns about automatic renewal language and about ensuring the city is informed when subcontractors or crews dig in narrow pavement zones where shallow cuts can damage private utilities.

Council discussed franchise fee policy and transparency. Staff said the 4% fee is the rate currently reflected in the city’s budget. Councilors debated whether the fee is effectively a pass‑through to customers and whether the city should insist on audit rights and specific restoration standards; several council members asked staff to require a reporting mechanism to trace gross receipts so the 4% calculation can be verified.

The council approved the motion 5–1, instructing staff to convey the conditions to the cooperative and to return a final agreement to council for adoption.

Next steps: Staff will transmit the council’s conditions to the cooperative and request annual franchise fee reporting; staff will return with a negotiated agreement for council adoption.