Meeting on Oct. 14
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Facing a lawsuit filed Oct. 3 in U.S. Western District Court, the Gallatin Board of Aldermen will consider the repeal of an ordinance limiting new installation of propane gas tanks within the city limits during the upcoming meeting scheduled for Tuesday evening, Oct. 14.
City Administrator Toby Dougherty confirmed that the matter is on the meeting’s agenda, and that he will recommend the ordinance’s repeal. The ordinance was approved Sept. 22, without prior notice to the public, as a means to make the municipal natural gas utility more attractive for investors.
The Missouri Propane Gas Association, on behalf of area propane, filed the lawsuit. They are prepared to argue that the city is in violation of anti-trust laws by acting as a monopoly.
Administrator Dougherty now says the city’s ordinance is based on a misinterpretation of Missouri statutes.
State law gives cities the power to create utilities to provide electricity, water, sewer and gas service to its residents. Other statutes, not considered when putting the ordinance into effect, then go on to give cities the right to act as a monopoly with regard to water, sewer and electrical service but they do not expressly give cities the right to act as a monopoly with regards to a municipally owned natural gas system.
“I proposed the ordinance thinking natural gas was like all other utilities,” Mr. Dougherty said. “But, in short, the city can create a natural gas utility but it cannot operate it like a utility.”
More details about the ordinance limiting new installation of propane tanks in Gallatin and whether or not this ordinance is repealed will appear in next week’s edition following the board meeting next Tuesday night.