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Josephine council delays vote on Atmos Energy franchise amid contract concerns
Summary
Council heard a presentation from Atmos Energy on a proposed 25-year franchise ordinance maintaining a 5% gross-revenue fee but postponed a decision after council members raised multiple contract, revenue and liability questions and asked for additional legal review.
The Josephine City Council on Oct. 4 delayed action on a proposed franchise ordinance with Atmos Energy after council members raised questions about contract terms and revenue calculations.
City staff introduced the proposal as a standard franchise ordinance that would renew Atmos's right to deliver natural gas within the city and maintain a 5% franchise fee on gross revenues. Atmos public affairs representative Eva Hummel described the document as a standard ordinance used with other municipalities and said Atmos's franchise attorney would respond to any legal questions submitted by the city.
Dr. Pam Sardo pressed for more time to consult with counsel and for clarity on specific contract clauses, including which party would be the authorized agent, whether Atmos would be required to pay for street cutting or excavation, how revenue reductions tied to subcontractor or affiliate arrangements would be calculated, and how governmental-customer accounts would affect gross-revenue calculations. Dr. Sardo said she wanted at least a 30-day pause to review those provisions with the city attorney.
City staff suggested council members forward written questions to staff to avoid Open Meetings Act problems and noted staff would obtain written responses from Atmos's franchise attorney. Atmos's Hummel reiterated that the agreement was standard but agreed to receive questions and provide clarifications.
After discussion, a council member moved to postpone the item to the next meeting to allow time for legal review and follow-up; the motion carried 4-0.
Next steps: Council asked staff to collect members' questions and transmit them to Atmos and the franchise attorney and to place the matter back on the agenda once answers and any recommended edits are available.
