AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title[AH1]
Franchise Agreement with Public Service Company of North Carolina, Inc. for Natural Gas Utility Services
presenter[AH2]
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Ted Voorhees, Town Manager, Manager's Office
STAFF RECOMMENDATION*
Staff recommends that Council approve the attached Franchise Agreement with PSNC Energy for the provision of natural gas utility services within the Town of Chapel Hill.
body[AH3]
ACTION/DECISION POINTS*
Council must approve or reject the proposed Franchise Agreement with PSNC Energy. Approval requires two readings, scheduled for November 12, 2025 (first reading) and November 19, 2025 (second reading).
LEGISLATIVE CONTEXT*
North Carolina General Statute ? 160A-76(a) requires Council approval of utility franchise agreements by ordinance, with two readings at separate meetings.
BACKGROUND AND CONTEXT*
* The Town's previous franchise agreement with PSNC Energy is expiring.
* Town staff have negotiated a new agreement reflecting updated terms and best practices, including provisions for public safety, liability, and coordination.
* The proposed agreement grants PSNC Energy the right to use public rights-of-way for a period of thirty (30) years, with annual renewal up to sixty (60) years, unless terminated by either party with one year's notice.
* The agreement includes updated requirements for notification of annexation, annual coordination meetings, and emergency contact protocols.
ATTACHMENTS
Franchise Agreement Ordinance
end[AH4]
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