Council feels backed into corner over Atmos agreement

Lack of provision gumming up the gas works

The Crested Butte Town Council is continuing to mull over how to handle the proposed franchise agreement between the town and gas provider Atmos Energy. The public hearing scheduled for the issue on January 3 was continued to the January 18 meeting.

Mayor Leah Williams wanted town attorney John Belkin at the discussion since his concern over the town not being listed as “additionally insured” on the Atmos Energy policy has extended the negotiations. Belkin was on vacation during the January 3 meeting.
But the council held some discussion on the matter anyway. Williams asked acting town attorney Rod Landwehr, who fills that position in Gunnison and Mt. Crested Butte, for his perspective. Both Gunnison and Mt. Crested Butte recently signed a franchise agreement with Atmos.
Landwehr explained the agreement is a good thing to have so the utility and town have a good, cooperative working relationship. The franchise agreement also provides for a franchise fee that is passed on to the municipalities. “Realistically, the town is not in a great bargaining position,” he said. “There is not a line of people waiting to distribute gas to the people of town. If you let the franchise agreement lapse, there may or may not be another utility ready to come in. It gives us some problems. It is difficult to negotiate from a position of strength. And I understand John’s concerns. You seem to be going through the same struggles we did in Gunnison and Mt. Crested Butte. But ultimately we want gas so you probably also want some control over what they do on your streets and you want to collect the fee.”
Town manager Susan Parker is investigating cases of municipalities working with utilities without a franchise agreement. She will look into the ramifications of such a situation.
Councilperson Jim Schmidt asked her to see if all other utilities providing gas in the state exclude the insurance provision the town is asking for.
“We feel like we are backed into a corner and it’s not a negotiation,” said councilperson Reed Betz.
“You are absolutely right,” responded Landwehr.
The discussion will continue January 18 when Belkin and representatives of Atmos Energy will be at the meeting.
In the meantime, the town is working without an executed franchise agreement but both Atmos and the town are working under conditions of the previous ordinance.