052-14 - Cascade Natural Gas Corporation - Correspondence 3-3-2017 NoticeCITY OF PORT ORCHARD
City Clerk's Office
216 Prospect Street, Port Orchard, WA 98366
Voice: (360) "-4407 ■ Fax: (36o) 895-90�9
cityc1erk@cityofportorchard.us
www.cityofportorchard.us
March 3, 2017
Cascade Natural Gas Corporation
Director, NW Region
6313 Kitsap Way
Bremerton, WA 98312
Dear Director:
As you may know, the City of port Orchard and Cascade Natural Gas Corporation (CNG)
entered into a Franchise Agreement in 2014. A copy of that Agreement is enclosed for
Your reference. In Section 12 of that Agreement ("Gross Earnings — Excise Tax"), the
City reserved the right, upon adequate notice, to increase the excise tax CNG pays on its
gross earnings from the sale of natural gas in the City up to the maximum amount
allowed by law.
City staff has been in contact with staff at CNG to clarify the meaning of "adequate
notice" of the City's intent to increase this excise tax. Chris Bossard, District Manager
III, stated that it is CNG's position that 3o days is adequate notice for this increase.
Therefore, the City is providing CNG with this notice of its intent to increase the excise
tax that CNG pays on its gross earnings from the sale of gas in the City from 2% to b%
per month. A proposed Ordinance reflecting this increase will be presented to the City
Council at their April 11, 2017, regular meeting for action. Enclosed is a copy of the
Ordinance being presented to the Council.
In the meantime, if you have any questions or concerns please let me know.
Sincerely,
CITY OF PORT ORCHARD
Bran y Rinearson, CMC, CPRO
City Clerk/Asst. to the Mayor
Encl: Agreement; Proposed Ordinance
c: Mayor and City Treasurer
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Director, NW Region
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Bremerton, WA 98312