Tuesday, June 22, 2010 • Commission approves expansion of city’s natural gas enterprise services

Publisher’s note: This story originally appeared in the Tuesday, June 22, 2010 edition of the Lassen County Times.

The Lassen County Local Agency Formation Commission approved a resolution authorizing an out of agency service agreement that will allow the city of Susanville to sell natural gas outside of its jurisdictional boundaries but within its sphere of influence.

The agreement was approved 3-0 with aye votes coming from commissioners Lassen County District 3 Supervisor Lloyd Keefer, Susanville City Councilman Joe Franco and Chairman and public member Todd Eid.

The city adopted a resolution on May 5 that resulted in an official application to LAFCO.

According to the LAFCO staff report, the proposal is justified because the city’s natural gas line exits beyond the city’s boundaries and the city has the ability to service customers in close proximity to this and offer them a cheaper, cleaner alternative to other fuels.

The expansion of the city’s natural gas service is presumed exempt from a California Environmental Quality Act review “since no environmental impacts would or could occur as a result of customers coming on line to receive natural gas services as a cleaner and more affordable substitute for other energy services,” according to the LAFCO staff report.

The commission also approved the resolution even though the new territory will not be annexed by the city in the near future.

John Benoit, LAFCO’s executive director, said this was “a blanket agreement” that would allow the city to expand its natural gas services without having to come back to the commission each time it signs up a new customer.

“That would be quite counterproductive for lots of reasons,” Benoit said. “The natural gas service is considered a miscellaneous business or enterprise service. We would not apply this to water … If someone needed water, it would probably be a health and safety reason that they would need water outside of the city limits. That’s not the issue here today.”

“It looks like we’ve covered all the issues and concerns that have been expressed, and I’m ready to move forward with it,” Keefer said.

Franco asked Benoit if all the legal issues regarding a blanket agreement had been addressed, and Benoit said, “Yes.”

“Then I have no problem moving this forward,” Franco said.

Commissioner and Lassen County District 5 Supervisor Jack Hanson said he’s supported the city’s expansion of its natural gas services from the beginning and called this “a win/win” situation.

Other business
The commission elected new officers for the 2010-2011 year.

Eid will serve another term as chairman, and Franco was elected vice-chairman.

The commission approved a final budget for fiscal year 2010-2011. The city and the county’s contribution to LAFCO will decrease slightly because of a budget surplus. Each agency will contribute $24,918.76 to fund the commission.

The commission also approved a Calafco bylaw amendment that could increase representation for north state counties.

In addition, the county also approved a contract for staff services by Benoit. The amount of the contract remains unchanged from last year.

Benoit will be paid $600 per day for each day he is in Lassen County on LAFCO business. For all other services, Benoit will be paid $85 per hour. Clerical and graphics charges will be $35 per hour, and Benoit can collect other reimbursements for mileage, photocopies, office supplies, postage, telephone and overnight delivery service.