Bee Cave City Council considers bringing natural gas service to the area

The City of Bee Cave is considering bringing natural gas service to the area.

On Feb. 14, Bee Cave City Council voiced initial support for a franchise agreement with Texas Gas Service to provide natural gas service within city limits. City Administrator Frank Salvato said he wanted to get council's comments before he sent the franchise agreement, which is necessary to bring natural gas to the city, to Texas Gas Service for approval.

Texas Gas Service was approached by developer Taylor Morrison to bring natural gas to its Ladera subdivision, Salvato said.

The Ladera subdivision, which will be east of the Falconhead Golf Course near The Home Depot and the Backyard at Bee Cave, will eventually include 260 single-family lots. Ladera's first lots are expected to be available in early spring 2012.

Franchise fee

City Council also gave initial support for levying a 2 percent franchise fee on natural gas. The fee would be passed on to the natural gas customers.

Councilman Mike Murphy said a 2 percent franchise fee would be fair and help bring needed additional revenue to the city.

"Two percent, I think, is plenty," he said. "I'm not looking to soak anybody here."

If Texas Gas Service approves the franchise agreement, it will be brought back to City Council for approval. Parts of the franchise agreement and fee could be changed, Salvato said.