The Dalles City Council approved a franchise agreement with the Chenowith Water PUD to formalize the district’s continued occupancy and use of the City right-of-way. City officials said the two parties have been working on the agreement for months. The agreement does not require the District to build its water system to City water-system design standards, but addresses work that takes place in the municipal right-of-way. City Manager Matthew Klebes says the agreement will take effect July 1, and will gradually increase the percentage of gross revenues the Chenowith district will pay the City, starting at 1% in the upcoming fiscal year, and going up to 5% over the next five years. The City Council approved the agreement unanimously, and the Chenowith Water PUD board approved it last week.