by Richard Uhlhorn
When PUD Commissioner Kelly Allen encouraged residents to attend a County Commission meeting because they would be discussing revising their Franchise agreements with various agencies and organizations, I was confused. I didn’t know what a Franchise agreement was. Allen stated in a Facebook post that if the County Commission revised their agreements, it could cost the PUD $2 to $4 million dollars, and therefore, possibly raise PUD customers electricity rates.
So being curious, I called County Commissioner Brad Hawkins for some insight. My telephone conversation with Hawkins covered several topics facing the County.
FRANCHISE AGREEMENTS:
A Franchise Agreement is an agreement wherein different organizations can use another organizations easements to conduct maintenance work on infrastructure; i.e. PUD using County easements to maintain power lines etc.
Hawkins explained that the County has a 25 year agreement with the PUD for use of their easements. “Both parties signed a 25 year agreement and are in the process of developing a compensation proposal,” said Hawkins.
Staff from both agencies are developing a draft code to implement franchise compensation. Before any decision is made a public hearing will be held. Hawkins doesn’t expect an agreement between utilities to be ready for 2027.
2026 BUDGET:
“We will have to look at new revenue sources,” said Hawkins. When the County began working on its 2026 budget, they were in a $6+ million dollar deficit. “We’ve done a lot of work,” Hawkins stated. The commissioners have been able to reduce that deficit to $1.9 million.
Reductions came from a variety of decisions… 100 smaller decisions including unfilled positions, a hiring freeze, trimming a lot of expenditures and retirements.
LODGING TAX DISBURSEMENTS:
Hawkins said that the County’s Lodging Tax Advisory Committee has allocated $420,000 to the Lake Chelan Chamber of Commerce based on the County receiving $2.1 million in lodging tax revenue in 2025.
“This formula is included in the current framework funding allocation recommended by the Lodging Tax Advisory Committee,” Hawkins explained. He said he is trying to revise participation in lodging tax allocations to include unincorporated areas of the County like Cashmere and Manson, along with incorporated Entiat. “I want to support Manson, but there are strings attached.”
BARGE TERMINAL:
The process of permitting MBS (barge services) for a terminal at Moonlight Bay is in the hands of the County’s Planning Department. “The Planning Department will render a decision soon,” said Hawkins. “We (the commissioners) are not the decision makers. There is a process.”
Lake Chelan’ barge service has been operating without difficulty on the lake for 50 years. The desire to move to its property on Moonlight Bay on the South Shore has been in the process since MBS received a temporary permit to operate three during the 2024 Pioneer Fire.
Many new comers to the Valley do not have a historic perspective on just how important this service is to the up-lake region.
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