Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, August 23, 1993 TAG: 9308230133
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: DANIEL HOWES and JOEL TURNER STAFF WRITERS
DATELINE: LENGTH: Long
Mayor David Bowers, in a hastily called 10 p.m. news conference, described "an unpleasant accord" that will extend the company's franchise agreement 180 days beyond its Aug. 30 expiration in order for both sides to negotiate a new agreement - this one without a takeover clause.
The announcement is a clear victory for Roanoke Gas, which launched a relentless media campaign on Aug. 13 that seized the attention of the Roanoke Valley and didn't seem to let go. Five days elapsed before city officials counterattacked, but by then public sentiment appeared to back the gas company.
Sunday's announcement - which is expected to be affirmed by council today - also appears to avert a public outcry that seemed likely at today's City Council meeting. City officials had moved the meeting to the Roanoke Civic Center in anticipation of a large crowd, but now council will meet in chambers at 2 p.m.
Roanoke Gas released a statement after the late evening news conference saying it would "recommend that its board of directors approve the proposed agreement, which would eliminate the possibility of the city's acquiring Roanoke Gas Co. If council and our board approved the agreement, this will put an end to the controversy."
Company officials, citing federal securities laws, declined further comment. The Roanoke Gas board has a regularly scheduled meeting at 12:30 p.m. today; additional public remarks are likely afterward.
The late-night accord came after a day of discussions between city and company officials. Bowers was awakened at 6 a.m. Sunday by a call from Roanoke Gas President Frank Farmer, who apparently was seeking a mutually acceptable solution. Their talks finished, Bowers left for Smith Mountain Lake and Farmer went horseback riding.
At 3 p.m., City Manager Bob Herbert began meeting with City Attorney Wilburn Dibling in an effort to craft the accord. They were later joined by Bowers and Councilman James Harvey, who said he "initiated some of the discussions."
The city, which has a 20-year franchise agreement with Roanoke Gas, had been quietly exploring a clause in the contract that allowed it to acquire the company's assets. Roanoke Gas officials say they learned of the plan on July 23, and were given only nine working days either to extend the franchise agreement or to have the city pursue acquisition.
"The people of Roanoke have spoken," Bowers said, "and they have spoken loud and clear. There has been tons of misinformation in the past week. The gas company has been unyielding. Under the circumstances, [this] is the best deal possible."
Speaking in a somber, measured tone, the mayor said both sides had been working toward an agreement on Thursday, "but the city's bargaining position collapsed around us due to several circumstances."
Bowers would not elaborate. But Friday, he denounced Vice Mayor Beverly Fitzpatrick Jr. for announcing publicly his intention to vote against any steps that could lead to acquisition of Roanoke Gas. He accused Fitzpatrick, his longtime rival, of breaking his word to fellow council members and having "cut the legs out from under the [city's] bargaining position."
Harvey, the only other council member to attend Sunday's news conference, also refused to say whether he blamed Fitzpatrick's remarks for the city's capitulation.
Instead, Harvey said he is "quite amazed at the public willingness to take the side of private company without hearing from their elected officials. I can tell you, I'm not a happy camper with Roanoke Gas. They turned what should have been a private negotiation into a public charade."
Harvey - evidently weary from the bruising public campaign and the sudden illness of his friend and colleague, Councilman Howard Musser - said, "The price in this has been much too much for me."
Harvey also seized the opportunity to rebut House Majority Leader Richard Cranwell of Vinton, who promised to seek elimination of franchise agreements between cities and utilities and to speed legislation through the General Assembly that would stop any city acquisition of Roanoke Gas.
"If Cranwell does what he says he's going to do, it could cost the cities [in Virginia] hundreds of thousands in franchise fees," Harvey said. Asked if Cranwell's public remarks influenced his decision to drop the acquisition clause from the franchise agreement, Harvey said:
"I've let Mr. Cranwell threaten me and coerce me into one decision and he'll never do that again," the councilman said, referring to Cranwell's role in forcing the city to relinquish ownership of Roanoke Regional Airport to a joint city-county commission.
Harvey also made clear his disdain for the unanimous opposition voiced by other Roanoke Valley legislators, who in recent days have indicated their support for Cranwell.
Del. Victor Thomas, D-Roanoke, described the city's plan as "ill-conceived from the start" and said he did not blame Cranwell for erupting in anger over the proposal.
"Gosh, dog, that flies in the face of everything that I believe in, just taking over a company that has been in operation for 110 years," Thomas said. "I don't know who came up with the idea but he ought to be moved out."
Del. Clifton Woodrum, D-Roanoke, also flared at Harvey's contention that the city had been abandoned by its legislative delegation. He said members of the Roanoke Valley delegation independently reached the conclusion that the takeover was unwarranted.
"I thought it was a bad idea because we have a company almost as old as the city itself that has been providing the service adequately to customers both within and without the city," Woodrum said.
City Council's decision to embrace the 11th-hour agreement was unanimous, with each being contacted separately by Bowers. A formal vote to affirm the agreement is expected today.
All members except Howard Musser - who was hospitalized Saturday with a stroke - said Sunday night they agreed with the decision not to ask the State Corporation Commission to value the gas company's assets in the city.
Each member cited the strong public opposition as a major factor in their decision. "The citizens didn't want it," Harvey said. "Ninety-five percent of the people I talked to opposed it."
"The citizens have spoken. No question about it, this is the right decision," Fitzpatrick said in an interview. The vice mayor declined to respond to Bowers' insinuation that talks between the city and Roanoke Gas collapsed because of Fitzpatrick's public opposition.
"It is unfortunate that the mayor has chosen to make this a personal issue," Fitzpatrick said. "I won't participate in any personal attacks. I don't think my statement had anything to do with what happened today." Said Councilwoman Elizabeth Bowles: "We still think it was a good idea to explore the possible acquisition, but there were so many people against it."
Councilman Delvis "Mac" McCadden agreed: "Our original intent was to get a new franchise, but that got lost along the way."
Staff writer Carolyn Click contributed to this report.
by CNB