The Addison Township Board of Trustees unanimously approved a new franchise agreement for SEMCO Energy Gas Company at the special August 21 meeting. The agreement will allow the company to provide service to residents in sections 1, 12, 13, 24, 25 and 26, town 5 north, range 11 east, of Addison Township.
The request for a franchise was first presented to the board during the regular meeting on August 4 by soon-to-be resident John Rosenburg.
“Basically, I’m here because I’m building a house on Dequindere and SEMCO is right across the road,” explained Rosenburg. “The next nearest utility is about $20,000 away.”
Rosenburg told the board that Consumers, which has no plans to expand into that area of Addison Township, actually suggested he contact SEMCO.
“I believe this is the first time Addison Township has been asked to go through this process,” said Clerk Pauline Bennett during that meeting.
During the August 4 meeting, the board decided to hear a presentation from SEMCO before approving any franchise agreements. Also, several board members wanted certain points in the blanket franchise specified for Addison Township.
At the August 21 meeting, SEMCO representative Tim Lubbers gave the board a brief presentation on the company and a review of the process Mr. Rosenburg would have to complete to get service.
“First we have to get a franchise from the township, and then we have to go to the Michigan Public Service Commission for an Act 69,” explained Lubbers. “This can take some time.”
He also stated that serving the one or two customers in the Dequinder area is not and will not create any problems with Consumers. In fact, like Consumers, SEMCO is not looking to actively expand into Addison Township.
“We have good relations with them,” said Lubbers. “We’re simply here today because our main is across from one of your residents.”
The only concern to come forward during discussion of the franchise was over the three words “for all purposes” in the second paragraph of the agreement. Township Supervisor Bob Koski spoke about his concerns when considering all the options this one phrase could make available to the company.
“I’m just very concerned by that language,” he stated. “We’ve already been burned once because of language like that. It would be so easy to scratch it. I don’t think it would really change much.”
Lubber told trustees that he would prefer the board to approve the agreement “As Is,” since his company has already spent a good deal of funds on attorneys reviewing the document. He was unsure whether the company would pay to have its attorney review the agreement yet again.
“This has been reviewed already on both sides, and I’m not sure the company would be interested in pursuing this further if more money needs to be spent,” he stated. “For us, franchises are fairly common place, fairly boiler-plate.”
Mr. Rosenburg voiced his concern that if the board changed any language at this point, being able to get gas to his home may become even more difficult, if not impossible.
“I’m on a tight deadline, I only have a month and it’s already been delayed a week,” he told trustees.
Trustee Pat Eisenhardt made a motion to accept the agreement “as is;” however, no one seconded. Supervisor Koski motioned to accept the agreement with the removal of the phrase “for all purposes,” and Treasurer Dan Alberty seconded.
The company now has 30 days in which to either accept or reject the approved franchise agreement.