The URL can be used to link to this page

Home My WebLink About1982-02-08 Info Packet�L.1 City of Iowa City MEMORANDUM DATE: February 5, 1982 TO: City Council FROM: City Manager RE: Informal Agenda and Meeting Schedule February 6 1982 Saturday 8:30 A.M. - Highlander Inn Meeting of Council Legislative Committee with area legislators February 8 1982 Monday 4:30 - 6:30 P.M. Conference Room 4:30 P.M. - Meeting of City Conference Board to appoint School District representative to City Assessor's Examining Board. 4:40 P.M. - Special City Council Meeting BUDGET DISCUSSION 4:45 P.M. Decisions on Capital Improvements Program for FY 83-87 February 15 1982 Monday NO INFORMAL COUNCIL MEETING - HOLIDAY - CITY OFFICES CLOSED February 16 1982 Tuesday 7:30 P.M. - Regular Council Meeting - Council Chambers Adjourn to Informal Session to discuss redevelopment plans for Parcel 64-1 February 17 1982 Wednesday 4:00"- 8:00 P.M. Highlander Inn 4:00 P.M. - Annual Meeting of City Council with chairpersons of boards and commissions 7:00 P.M. - Dinner ti mirCOr II mrn PV ' 1" "JORM. "MICR+LAB _J .. � Il I CEDAR RAPIDS • DES MOINES l J G 1 City Council February 5, 1982 Page 2 PENDING LIST Economic Development Program Meet with Parks and Recreation Commission regarding parkland acquisition Inspection Policy, owner -occupied duplexes Parking for Senior Center Volunteers Southwest Area Study Meeting with Committee on Community Needs Historic Preservation Task Force Update Meeting with Airport Commission on Master Plan Residential Mobile Home Park Zone Use of Hickory Hill Park north of the dam Film on WaveTek Pool Electrical, Plumbing, Mechanical Permit Fees Meet with Mercy Hospital Staff regarding Expansion Project Report from John Hayek on Pending Litigation (executive session) Appointment to Board of Examiners of Plumbers - February 16 Appointments to Committee on Community Needs, Airport Commission, and Broadband Telecommunications Commission - March 2, 1982 Appointments to Airport Commission, Mayor's Youth Employment Program, Human Rights Commission, Housing Commission, Civil Service Commission, Resources Conservation Commission, Planning and Zoning Commission,.and,Board of Police and. Fire Trustees - March 16, 1982 r�— I r i/ -' i IAIf DAL 11 MfA AV I � -J 1 JORM --MIC R#CA B" I CEDAR RAPIDS • DES MDf YES i i y it AGENDA SPECIAL COUNCIL MEETING FEBRUARY 8, 1982 Item No. 1 - MEETING TO ORDER ROLL CALL Item No. 2 - NG CLASS C LIQUOCENE FOR VANESSA'1SMOFIIOWA ON PCITY IINC. DBA VANESSARSI,I118SEAST COLLEGE (NEW) ACTION: Item No. 3 - ADJOURN TO INFORMAL SESSION I, F IA rpnr I. MPO RP w. `JORM:"MICR#LAB-` 4. CEDAR RAPIDS DES MOINES I j f a�3 i �I l - i t 1 I , a�3 Pc er- a-5- City -S City of Iowa City MEMORANDUM DATE: February.5, 1982 TO: City Council PPV FROM: Rosemary Vitosh, Director of Finance r RE: Operating Budget Changes The attached information recaps the changes to expenditures as decided by Council at last Wednesday night's budget meeting (Feb. 3, 1982). Total expenditures were increased by $107,954 over the Proposed Budget. The available funding for this amount is also detailed out. In addition, the decision was made to increase the monthly refuse fee from $2.00 to $3.00. The additional revenue earned from this increase is to be used to decrease property tax askings.' The attached also provides information on the subsequent change in the tax levy and the affect this change will have on the property tax, in dollars, for the average residential property and the average commercial property. i 1^ f 1 IA If000 Il UCO PV ' 1-�.- 'DORM- MICR+LfIB- CEDAR RAPIDS • DES MDIYES k ( Il i L r,v CHANGES TO EXPENDITURES: Broadband Telecommunications: Prior Funding Payback - Original Proposed (6 Years) Commission Proposal (12 Years + Interest at 9%) Human Service Agencies: Ongoing Agencies Contingency: 2% $ 2,658 Fairmeadows 3,200 enc $ 5,858 Additional Contingency y per Council 1,996 Original Proposed Budget Amount Library: Library Board's First Priority - Restore service levels which existed at opening of new building (alternate option) Sunday Service - Already included in original Proposed Budget Police: 2 Patrol Officers; Includes salary, benefits, equipment, uniforms and training costs Park Trust Fund: Reserve Amount in General Fund Balance Cemetery/Forestry: The City Council decided to reserve $10,000 for a future decision on the position of Forester. However, there currently is a vacant position of Sr. Maintenance Worker in the Parks Div. This position will not be filled until a decision is made about the Forester. If a decision is made to employ a Forester, the Sr. Maintenance Worker position could be reclassified to Forester. Therefore, it is not necessary to reserve an additional $10,000 for the position of Forester. Finance: Professional Accounting Position Senior Center: Increase Postage Budget 1.11 ranr 11 Yrn NV jl DORM" - MIC R#C.,4B CEDAR RAPIDS • DES MOINES I $ 8,107 5,463 $ 2,644 $ 132,884 7,854 $ 140,738 130,738 10,000 22,515 46,710 10,000 16,000 1,000 aid Eliminations in Capital Outlay Budgets Due to Utilization of Surplus Equipment from Old Library: City Clerk - Table (175) Public Works Admin. - Chairs (360) Transit - File Cabinet (250) (785) Elimination in Capital Outlay Budget Due to Reassessment of Need: Cemetery - Used Typewriter (130) ADDITIONAL FUNDING NEEDED $ 107,954 AVAILABLE FUNDING: Additional Federal Revenue Sharing $ 67,000 Excess Salary Amount Available to be Reallocated 28,000 Airport - Land Easement; will fund with - other Master Plan Improvements (GO Bonds) 5,000 $ 100,000 Equipment: Reduce Capital Outlay to $400,000 Will provide needed amount at a minimum. 7,954. The equipment scheudle and operating costs will be reviewed. 9R M I " 77 7 -JORM -MICR+L'AB 0 NES .1 --CEDAR RAPIDS •DES M 1 21 CHANGES IN FEES AND TAXES: Increase refuse fee to $3.00 per month. This will provide additional revenue of $124,800 and will allow for a decrease in property taxes of an equal amount. The property tax request will be revised as follows: FY82 #1 REVISED PROPOSAL** #2 REVISED PROPOSAL ---------- -------------------- --------------------------- ssessment Assessment Assessment Dollars Per $1,000 Dollars Per $1,000 Dollars Per $1,000 General Fund 5,169,872* 8.100 5,594,634* 8.100 5,594,634* 8.100 Tort Liability 258,126 .407 253,030 .369 253,030 .369 Debt Service 1,409,065 2.222 1,786,481 2.602 1,786,481 2.602 Trust & Agency 958,634 1.512 1,210,286 1.763 1,085,486 1.581 j 7,795,697 12.241 8,844,431 12.834 8,719,631 12.652 j Ag: Bldgs. & Land 5,825 3.004 7,752 3.004 7,752 3.004 TOTAL 7,801,522 8,852,183 8,727,383 *Includes monies and credits of $20,500 and military credit of $13,800. **01-18-82 proposal based upon revised (increased) assessed valuation figures. This revised property tax projection will provide funding for $166,917 for health insurance from the General Fund Tax Levy. Therefore, only $142,943 I or 46% of total insurance costs will need to be funded by the Trust & Agency 1 Tax Levy in FY33. The following computations show the property tax projected for the average residential property and the average commercial property. i AVERAGE RESIDENTIAL PROPERTY ------PROPOSED FY83------ FY81 FY82 1ST ESTIMATE REVISED Average Residential Property Value $ 51,938 $ 51,876 $ 56,730 $ 56,730 Rollback Factor X.643801 X.667355 X.647793 X.647793 Taxable Valuation $ 33,437 $ 34,620 $ 36,750 $ 36,750 1,000 y 1,000 1,000 1,000 $ 33.437 $ 34.620 $ 36.750 $ 36.750 Tax Levy X 12.519 X 12.241 X 12.834 X 12.652 TAXES $ 418.60 $ 423.78 $ 471.65 $ 464.96 I + $5.18 + $47.87 + $41.18 + 1.2% + 11.3% + 9.7% 2 YEAR ANNUAL AVERAGE INCREASE + 6.3% + 5.5% I i r" r � i �. ! MICRnrnMrn RV i "DORM MIC R+LAB' ,Jf1 I CEDAR RAPIDS • DES MOINES i AVERAGE COMMERCIAL PROPERTY ------PROPOSED FY83------ FY81 FY82 1ST ESTIMATE REVISED Average Property Value $151,589 $ 159,344 $ 176,438 $ 176,438 Rollback Factor X.889872 X.931854 X.878423 X.878423 Taxable Valuation $ 134,895 $ 148,485 $ 154,987 $ 154,987 1,000 1,000 1,000 1,000 + $ 134.895 $ 148.485 $ 154.987 $ 154.987 Tax Levy X 12.519 X 12.241 X 12.834 X 12.652 TAXES $1,687.50 $1,817.60 $1,989.10 $1,960.90 +$130.10 +$171.50 +$143.30 + 7.7% + 9.4% + 7.9% i 2 YEAR ANNUAL AVERAGE INCREASE + 8.9% + 8.1% i I 1 i 1 ' I I � 7 L if ' � MIf0�F11 MCA PV t ' 'JORM'-MIC R(#/LAB- I CEDAR RAPIDS DES MOINES L IF City of Iowa City MEMORANDUM DATE: February.Z, 1982 TO: City Council I FROM: Rosemary Vitosh, Director of Finance RE: Receipts Listing By Activity Attached is a listing of receipts by activity as requested by several Council members for all General Fund activities. All property tax and general revenues.such as liquor profits, municipal assistance, etc which are not derived from the specific operations of any City Depart- ment are listed under 11310, Finance Administration." This listing does not include any changes decided upon at last Wednesday's budget meeting (Feb. 3, 1982) but does correspond to the printed Proposed Budget. w ronrumrn Rv 1 1- JORM "MICR#LAB CEDAR RARIDS •DES MDINES a/5 ■-1 _io I I i i i i i iF, CITY OF IOWA CITY FY83 BUDGET RECEIPTS BY ACTIVITY RECEIPT TYPE FY81 FY82 FY83 ACTUAL ESTIMATE PROPOSED 11110 CITY COUNCIL FEIDCELERAb SHARING SUBTOTAL 11120 CITY CECLERK__��_�� MISLLANEOUS SUBTOTAL 11130 CITY ATTORNEY��_ MISCELLANEOUS CHARGEBACK SUBTOTAL 11210 CITY MANAGER��........ MISCELLANEOUS SUBTOTAL 11220 HUMAN RELATIONS ---------------- MISCELLANEOUS SUBTOTAL 11230 BROADBAND TELECOMMUNIC MISCELLANE:OTV USI4UE SUBTOTAL 110,623 116,1350 130,738 25 __110,638 ...116,135 130,763 49 .0 50 ........49 ........50 1'059 2'000 3'135 1 0612x000 3,535 753 0 500 .......;153 .......... .......... 0 ---------- 475 0 0 ................. 475 4,876 48,000 55,000 297 5,163 48,000 . 55,000 t4tranFumm av IJORM;-MICR+LA B` CEDAR RAPIDS • DES MOINES I CITY OF IOWA CITY FY83 HUOGET RECEIPTS BY ACTIVITY RECEIPT TYPE 11310 FINANCE .ADMINISTRATION ............................ PROPERTY TAX MONIES 6 CREDITS MILITARY CREDIT STREET USE LICENSES FOOD 6 LIQUOR LICEN 6 PERMITS MAGISTRATES COURT PARKING FINES ADMIN EXPENSE CHARGEBACK LIQUOR PROFITS BANK FRANCHISE TAX MUNICIPAL ASSISTANCE INTEREST INCOME MISCELLANEOUS REVENUE INTERFUND LOAN REPAYMENT CABLE TV CHARGEBACK MISCELLANEOUS SUBTOTAL 11320 ACCOUNTING G REPORTING ............................. FEDERAL GRANT CHARGEBACK INTERFUND LOAN MISCELLANEOUS SUBTOTAL 11330_ CENTRAL _PROCUREMENT �S_ MISCELLANEOUSUE SHARING SUBTOTAL 11340 TREASURY ----------------------------- MISCELLANEOUS SUBTOTAL FY81 FYB2 FY83 ACTUAL ESTIMATE PROPOSED 51244,874 5,442,252 6,193;117 20,500 20,500 20,500 13,808 13,800 13,BOO 5,690 14,100 5,350 ' 71,911 68,200 74,900 76,982 70,000 78,000 115,120 122,500 144,000 287:036 329,966 349,372 296,858 296,934 323,251 91,434 11,928 50,100 317,475 324,153 339,919 138:065 102,000 1201000 37,5b0 38 107 28:11000 7 372,465 7,180 3,110 7,089,799 6,861,620 7,750,224 2,000 3,000 2,500 199, 79 0 50 .......... 196,279 .......... 3,000 .......... 2,550 12,250 420 400 .......... 420 ---------- 12,750 ---------- 400 7,428 6,700 7,050 .......... .......... .......... 7,428 6,700 7,050 wrononMrn nv I JORMMIC R#GAB CEDAR RAPIDS DES MOINES all C� ��1 CITY F FY83 BUDGET RECEIPTSCBYYACT'IVITY RECEIPT TYPE 11350 RISK MANAGEMENT PkOPE:RTY TAX SUBTOTAL 11360 WORD PROCESSING MORD PROCESSING CMARGEBACK MISCELLANEOUS SUBTOTAL 11500 GOVERNMENT BUILDINGS ....... .....------ m.......... BUILDING RENTALS MISCELLANEOUS SUBTOTAL 12110 P.P.D. ADMINISTRATION MISCELLANEOUS SUBTOTAL 12120 URBAN PLANNING 6 DEVEL BUILDING & DEVELOPMENT FEES MISCELLANEOUS SUBTOTAL 12130 URBAN DEVELOPMENT COMMUNITY OEVEL BLOCK GRANT MISCELLANEOUS F'Y81 FY82 FY83 ACTUAL ESTIMATE PROPOSED 112,318 258,126 253,030 112318 258- --- 126 253-030 --- 16,07755 16,000 17,500 0 50 �16�16116,000 17 550 ...... . . .... ..... ..... 3,66261 3,800 4,200 0 50 -3,687 800 .......-- ........ 250 213 0 50 3,445 3,050 5,875 58 0 50 3,503 -----3050 -----5925----- 17 10,160 0 U ..nonrn urn nv ,I JORM.'V'MICR�L'AB" CEDAR RAPIDS DES MOIYES CITY OF IOWA CITY FY83 BUDGET RECEIPTS BY ACTIVITY RECEIPT TYPE FY81 FY82 FY83 ACTUAL ESTIMATE PROPOSED SUBTOTAL 12200 ENGINEERING LICENSES & PERMITS MISCELLANEOUS SUBTOTAL 12300 PUBLIC WORKS�ADMINISTR MISCELLANEOUS (HARGEBACK• •� SUBTOTAL 12400C.B.D. MAINTENANCE---- LICENSES•6 PERMITS MISCELLANEDUS SUBTOTAL I` 12500 ENERGY CONSERVATION --- MISCELLANEOUS SUBTOTAL 12600 JCCOG PROPERTY TAR LOCAL GOVERNMENTAL AGENCIES FEDERAL GRANTS FEDERAL REVENUE SHARING MISCELLANEOUS .......... __17 30,160 0 00 844 1 445 00 475 1,472 1,7451,175 .......... .......... 21.358 18,639 32,774 47 _.-0 ......._50 21,405 18,639 32,824 .......... .......... .......... 158 0 1,500 1,687 500 1:300 1,845 500 2,800 30 0 0 30 0 0 .......... .......... ...:...... 0 66,927 63,720 51,635 52,013 56,129 43,696 20,0000 27,5000 373 0 0 u'rnnni urn ov JOR M.... MICR _�LAS... CEDAR RAPIDS •DES MDI4ES {Ii ■7 LI ■ IF CITY OF IOWA CITY F'Y83 BUDGET RECEIPTS BY ACTIVITY RECEIPT TYPE SUBTOTAL 13110 POLICE ADMINISTRATION .............. � MISCELLANt:OUS SUBTOTAL 13120 PA'IRUL ------------- SALE OF' VEHICLES FEDERAL REVENUE SHARING MISCELLANEOUS i ----------------------------- - __-_-_ _ SUBTOTAL 13130 CRIMINAL_ INVESTIGATION MISCELLANEOUS SUBTOTAL 13140RECORDS �6�IOENTIFICATI LICENSES 6 PERMITS MISCELLANEOUS SUBTOTAL 13150 SCHOOL SAFETY 6 EMERGE MISCELLANEOUS SUBTOTAL ju k FY81 FY82 FY83 ACTUAL ESTIMATE PROPOSED 957704 138,940 147.349 423 6,830 4,200 .......... 423 .......... b,830 .......... 4,200 5 079 0 0 0 90:000 0 4,628 1,200 700 .... ..... .....4.628 .......200 700 .......... 515 200 375 .......... .......... .......... 375 .......515 .......200 m.... 2,021 2,300 1,950 .......... .......... .......... 2,049 2,300 1,950 .......... .......... 5,079 0 0 ......;... .......... .......... 5 079 0 0 I. u�roncn urn av ! '"JOB M --"MIC RCA Ei" ' ti.. CEDAR RAPIDS • DES MOINES � IF I CITY OF IOWA CITY FY83 BUDGET RECEIPTS BY ACTIVITY RECEIPT TYPE 13200 F1kE UNIVERSITY FIRE CONTRACT MISCELLANEOUS SUBTOTAL 13300 ANIMAL CONTROL -------------- ANIMAL LICENSES ANIMAL IMPOUNDING 6 HOARDING FEDERAL REVENUE SHARING MISCELLANEOUS SUBTOTAL 13410 H.I.S. ADMINISTRATION MISCELLANEOUS SUBTOTAL 13420 BUILDING INSPECTION LICENSES 6 PERMITS BUILDING PERMITS & INSPECTIONS PLAN CHECKING FEE MISCELLANEOUS SUBTOTAL 13430 FIRE PREVENT 6 SAFETY LICENSES 6 PERMITS RENTAL PERMITS 6 INSPECTIONS MISCELLANEOUS SUBTOTAL FY81 FY82 FY83 ACTUAL ESTIMATE PROPOSED 246,027 270,000 286,965 1,166 2,615 165 247,213 272,615 287,130 16,689 17,000 17,025 7,065 10,500 7,000 2,000 0 0 4,944 3,300 3,875 30,698 30,800 27,900 582 0 150 .......582 0 .......150 30,466 30,600 34,100 51,286 61,000 60,000 23,633 14,000 25,000 11522 2,100 2,450 106,907 1077700 121,550 12,813 50,000 50,000 192 0 0 13,458 50,200 50,100 i uironcu urn nv 1. 1 -"JORM""MIC R(�LAB" -� CEDAR RARIDS DES MOIYES 1 CITY OF IOWA CITY FY83 BUDGET RECEIPTS BY ACTIVITY RECEIPT TYPE 14100 T'RAFF'IC ENGINEERING ROAD USE TAX MISCELLANEOUS SUBTOTAL 14300 STREET SYSTEM MAINTENA ------------- ROAD USE T'AX MISCELLANEOUS SUBTOTAL 15200 CEMFT'EHY/FORESTRY ----------------------------- INTERNMENT FEES CEMETERY LOT SALES PERPETUAL CARE. INTEREST INCOME MISCELLANEOUS SUBTOT'Al, 16100 RECREATION RECREATION FEES POOL ADMISSIONS RECREATION RENTALS RECREATION RESERVATIONS MISCELLANEOUS SUBTOTAL 16200 PARKS RECREATION RENTALS MISCELINTENANCE CHARGEBACKS FY81 FY82 FY83 ACTUAL ESTIMATE PROPOSED 259,868 141,283 139,946 8,415 4,622 5,714 268,283 145,905 145,660 58,903 52,972 54,300 986,502 1,394,154 1,443,869 25,931 6,350 4,550 1,012-433 1,400,504 1,448,419 8,098 8,000 9,964 12-535 12,500 12,500 550 8075 1,569 737 21,865 28,050 30,539 58,903 52,972 54,300 72,619 64,700 87,500 8,181 6,170 8,070 3,335 2,615 3,300 4,339 3,150 2,550 147,377 129,607 1550720 304 350 760 0 3,268 3,496 4,353 3,300 3,300 r uvonon urn vv i _.. ...� '-JORM""MIC R(�LAB" CEDAR RAPIDS • DES MOIRES I I I C7 J� CITY OF IOWA CITY FY83 BUDGET kECEIPTS BY ACTIVITY I165000�PARKS �&�RECREATION 7ADM � MISCELLANEOUS SUBTOTAL 16700 SENIOR CENTER .......................... MISCELGOVERNMENTAL AGENCIES SUBTOTAL GENERAL FUND TOTAL i I 35 FYSI FYB2 FY83 RECEIPT TYPE ACTUAL ESTIMATE PROPOSED 4 6 7 SUBTOTAL ,657 - _---0- -_----556 --------- 16300 LIBRARY ---------- __•__••___ 105 27,763 27-000 ...27.76. ....27.000 LICENSES & PERMITS 19x433 20:000 24620 LIBRARY FINES LIBRARY SERVICES 60,2950 72:930 513 88x, MISCELLANE(OUSGEBACK 3,535 4,494 4,700 SUBTOTAL -0-083:285 ---297-424 _0_118:833 I165000�PARKS �&�RECREATION 7ADM � MISCELLANEOUS SUBTOTAL 16700 SENIOR CENTER .......................... MISCELGOVERNMENTAL AGENCIES SUBTOTAL GENERAL FUND TOTAL i I 35 --------- m 35 -------- .o 0 ..62.6..'0 0 27,7630 27,000 105 " " "._0_ ---------- __•__••___ 105 27,763 27-000 ...27.76. ....27.000 _9_618,012 _9,910,181 10_842_807 r 1, ice. % u�ronrn urn ov i .__.._ " "MIC R+CA' [i - CEDAR RAFT 'JOA MDS DES MOIYES lid- , . � _ _._ .� , - r:•-, \ _r4�i_ Z ■ February 4, 1982 Ms. Jan A. Redick, Chairperson Airport Commission 402 Brookland Place Iowa City, Iowa 52240 Dear Ms. Redick: The City Council will be holding a public hearing on Hospital Facility Revenue Bonds for the Mercy Hospital Project on March 16, 1982. This project includes a proposal for a new three-story addition fronting on Bloomington Street immediately• west of the existing facility (400 block of East Bloomington) with a Helistop on the roof. I am requesting on behalf of Council that the Airport Commission review this concept and provide some input regarding the following: 1. How will air traffic to and from this location impact upon or interface with general air traffic patterns over Iowa City as these relate to the Municipal Airport and the University of Iowa Hospitals Helipad? 2. Which approach corridor(s) would you recommend as best suited for the Mercy Helistop based upon surrounding land uses, general air traffic patterns, noise considerations, and other relevant concerns? 3. What information does the Federal Aeronautics Administration normally provide to the City or to the Airport Commission regarding its consideration and approval/disapproval of this type of application, or is it necessary that we request such information? Mercy Hospital had FAA approval for a helistop severaly ears ago but that approval has expired. They are in the process of filing a new application. i 4. What proper avenue of appeal exists for the City if we do not agree with the FAA decision regarding this matter? 5. Are there other considerations which the Airport Commission would advise Council to take into account in addressing this proposal? I have had some preliminary discussions regarding these questions with the Airport Manager and he has indicated that he will be able to 1 - wronniucn ov 14 ._. -� 1.. I-"JORM* MICR#LAB- ._1 / CEDAR RAPIDS DES MOINES I J Ms. Jan A. Redick, Chairperson Airport Commission February 4, 1982 Page 2 provide you with more specific information at the time this matter is discussed by the Commission. The City Council would appreciate having your input relating to the above issues before the March 16, 1982, public hearing, if possible. Thank you for your attention regarding this matter. Sincerely, Dale E. Helling Assistant City Manager bdw/sp cc: City Council Airport Commission Members City Manager Airport Manager Mercy Hospital j __ a►� Iutranru urn av j JORM "-MICR16UAB-- 1 CEDAR RAF]DS • DES MOIRES r 1 City of Iowa Cib-111 MEMORANDUM Date: February 4, 1982 To: Michael Kucharzak From: Glenn Siders ALL- Re: Quik Trip Stores Mike, this memorandum is a response to a departmental referral brought to my attention concerning the various Quik Trip stores in Iowa City and their, compliance status with the tree ordinance. On May 7, 1974, a building permit was issued to erect a Quik Trip store at 123 W, Benton Street. At that time the tree ordinance was not in existence and trees were not required therefore this store is in compliance. On July 21, 1975, a building permit was issued to erect a Quik Trip store at 225 S. Gilbert Street. At that period of time the tree ordinance was not in existence therefore this store is in compliance. i On April 9, 1980, a building permit was issued to erect a Quik Trip store at 301 E. Market Street. At this period of time the tree ordinance was not only in i existence but a complete revision to that tree ordinance was drafted and passed by Council. This store does have to adhere to the tree ordinance however, due to the uniqueness of the layout with the proximity of intersections, driveways, alleys and so forth and,with the exceptions provided in that ordinance no trees had to be planted therefore this structure is in compliance. It may be footnoted that some landscaping has been provided at the option of the owners of that property. On May 6, 1981, a building permit was issued to erected'a Quik Trip store at 955 ` Mormon Trek Boulevard. The tree ordinance again is applicable to this store. Because the stalls of parking is less than 18, right of way or frontage trees are the only requirement and they are provided, therefore, this store is in compliance. It may be noted that in this store the trees are not planted in the right of way because of distances from sidewalks and to curbs, however, they do provide trees on the north and south boundaries of this store. On September 22, 1981, a building permit was issued to erect a Quik Trip store at 25 W. Burlington Street. Again the tree ordinance is applicable and again the only requirement is for two frontage trees. These trees have been installed and it is my opinion that this store is in compliance with the tree ordinance. If you should have any further questions concerning this *referral. Please do not hesitate to bring it to my attention. tpl/12 wronrn urn nv "JORM MICR¢LAF3 j CEDAR RAPIDS • DES MDIYES ' IF City of Iowa city MEMORANDUM DATE: February: 3, 1982 TO: Chairpersons, Boards and Commissions FROM: Mary C. Neuhauser, Mayor RE: Annual Meeting of City Council and Chairpersons of Boards and Commissions The annual meeting of the City Council members and the chairpersons of all boards and commissions has been planned for February 17, 1982, at 4:00 P.M., at the Highlander Inn. Each board and commission chairperson should be prepared to give a five- minute presentation on the accomplishments of the board/commission and the goals and objectives being pursued this fiscal year. A dinner is planned for 7:00 P.M. Please contact Lorraine Saeger (356-5010) concerning your attendance at this meeting no later than February 12, 1982. cc: City Council City Staff a�8 r ; Iq ! L wrcncnurn ev JORM:`MI CR�CAB" J L I CEDAR RAVIDS •DES I401YE5 I/ all 4 qq� 3 4 1 J� r mo Forget.blame, team up get to work President Reagan'.recently, .stated that, he, should not be blamed for the current recession,: -_y but that the recession was Jimmy Carter's fault.' Mary Neuhauser That statement took me back to my childhood.` My brother and I' used to have heated discussions, and one day, in the middle of such a debate, somehow a lamp fell over and landed with a crash on the floor. The noise resounded to the upper reaches of the house, where my father was listening to the Brooklyn Dodgers on the radio. Before we could make our getaway, Dad was on .. periodic observations from some thoughtful! Eastern 'Iowans invited to express themselves here. The topics are unlimited. The views are theirs. Mary Neuhau- ser of Iowa City, a law student at the University of Iowa, Is mayor of Iowa City and has served on the City Council since 1975. She is vice president of the League of Iowa Municipalities. the scene. Simultaneously I blamed Billy for the accident and he blamed me. Of course, like all good fathers, Dad walloped us both and sent us to our rooms until supper, where we were supposed to consider the error of our ways. 1 would have to say that this scene, or one like it, was repeated more than once, but eventually we discovered that blaming each other just got us both in trouble and didn't Rx the lamp. In Iowa City for several years we had a public works director who was much respected by those who knew him. A public works director Is responsible for a lot of the unglamorous nuts and bolts of city government: snow removal, garbage collection, traffic signals and street repair. When something goes amiss in one of those areas, the citizens howl at the City Council and the City Council Is likely to howl at the public works director. I� Now you would think that the public works director would find someone to blame, In the - fashion of some government employees. This particular man, however, woulll just say — and say in public — that it was his fault. Then he would do his best to straighten out whatever the mess was, and that -was the end of the matter. No reproaches and no recrimination. Of course, he may have gone home and kicked .the dog that night, but the point is, he took the blame. My father would like that. One of the biggest problems In our society today is that so few people are willing to take the blame. We spend more time pointing the finger at the other guy for not solving problems than we do getting In there and helping to solve them. It's Particulaily true In government, where It Is almost unheard of for a member of one political party to commend the Efforts of a member of the'other party. All the rhetoric Is to disparage rather than to encourage constructive effort. We can no longer afford this sort of disparagement. Our communities are just begin• ning to feel the results of budget cuts at the federal .level. Although general revenue sharing, community development block grants and, transit subsidies have not been rut for this year, serious problems are developing. Even In prosperous Iowa towns, families don't have enough to eat. In this difficult winter families can't' pay their heating bills. It appears that they have fallen through that famous safety net. Right now is not too soon to make sure we have the help available for those who need It. Volunteer agencies and local governments will have to meet those needs. A wise woman of Coralvllle once said, "When times get tough you have to move in with your mother-in-law." Well, In these times that's not bad advice. Pooling -resources of the public and private sectors_ Can provide- help efficiently. Just as living with your mother-in-law requires accommodating to her Irritating habits and she accommodating to yours, with a little effort both sides can make the arrangement work, More inportant is that together both take responsibility for solving the problems In our communities without wringing hands and blaming somebody, else for our, troubles. 1 wron_nnArn nv JORM MICR46LAB CEDAR RAPIDS •DES 1401:JE5 FM 1 IF ■ G n Space Needs Study and Program for t Iowa City he City of Projected through year 2000 Prepared by: R. Neumann Associates Architects - Iowa City, Iowa uvonru urn ov —JORMMICR+LAB CEDAR RAP1D5 •DES MDIVES I ,f _._ IF 1'. I STATEMENT OF PURPOSE II STUDY PROCEDURES III EXISTING SPACE USE EVALUATION IV PROGRAM OF SPACE REQUIREMENTS V EVALUATION OF EXISTING SPACE RESOURCES VI ALTERNATIVES VII CONCLUSIONS AND RECOMMENDATIONS ! �r uirunrumm nv - .DORM-'MICR#L"AB"- CEDAR RAPIDS •DES MDIYES i i.. j I, i � i 1 j 1 Ii r r•. STATEMENT OF PURPOSE The most significant benefit of establishing a long-range masterplan for facilities development is the opportunity to minimize the financial and functional consequences of short-term (remodeling) modifications to those facilities. The purpose of this study is to examine the projected (20 - year) administrative space requirements for the various city staff functions and to propose several alternatives which will satisfy the identified space needs. This charge involves consideration of the following objectives: 1. The documentation of current space use and space -related deficiencies. 2. The review.and analysis of proposed departmental space requirements. 3. The examination of the implications of various functional space ar- rangements. 4. The evaluation of the potential of various city -owned facilities which are not currently utilized or which may be subject to future remodeling. 5. The determination and analysis of various site considerations - zoning, parking, service, utilities and energy conservation - re- lated to the various alternatives proposed. It must be recognized at the outset that the tenuous economic situation as well as the development of new services and functions assigned to municipal government will certainly have a significant impact on future administrative space requirements. Thus the master plan process, which this study repre- sents, must of necessity remain flexible and subject to updating on a periodic basis. 1 1 , i' wrPnrij 1rn RY 1.- I CEDAR RAPIDS • DES MDIRES I I a as J:� L STUDY PROCEDURES The space evaluations and alternatives presented in this study are based on information and other data developed in the following manner. . The first task was to survey and document existing space utilization in each of the city -owned facilities included in this study. Original construc= tion documents were examined and site inspections by the Architect were conducted to verify existing space use and evaluate potential for future space use flexibility. Following the initial building surveys, interviews were conducted with staff department heads to identify space deficiencies and document conflicts in functional space relationships. The second task involved the review and verification of the 20 -year projected space requirements developed by the various department heads and reviewed by the city manager. This review required the consideration of the following factors; 1. The historical and projected growth in personnel for the various departments. 2. The anticipated document storage requirements. 3. Anticipated technological impacts (i.e. Computer, word processing and micro -film operations). 4. Projected growth due to creation of new services and functions for municipal government. The projected growth is incorporated in the Program of Space Requirements included in this study. The third task required is the evaluation of the potential of existing space resources for space use flexibility and expansion to meet future needs. Consideration must here be given to maintaining desirable interdepartmental functional relationships as well as assessing the financial impact of the 1 �' Ir illVlli I4IrRnF11Mrn RV f IJORM ` MICR#LAB - 1 CEDAR RAPIDS • DES MOINES F i' J J� C I various alternatives proposed for review. In all cases the assumptions, projections and other information generated for this study were reviewed by the city manager and the appropriate de- partment heads. _.. mvanrum n av 1 1 JORM ":MICRLAB I CEDAR RAPIDS • DES MOINES J'4� _y Study Procedure SUBMIT STUDY REPORT PRESENT CONCLUSIONS AND RECOMMENDATIONS, 1: r �s, I4EET WITH CITY COUNCIL AND PREPARE DEVELOPMENT PLANS FOR ALTERANTIVES. EVALUATE CONCEPTS, PREPARE COMPARATIVE ANALY— SIS REGARDING FLEXIBILITY, EXPANDABILITY AND COST. j FORMULATE ALTERNATIVE CONCEPTS WHICH SATISFY PROJECTED SPACE NEEDS. i. I COMPARE PROJECTED SPACE NEEDS WITH EXISTING SPACE USE AND DEVELOP A PROGRAM OF SPACE REQUIREMENTS. ` DEVELOP CURRENT PLAN LAYOUT FOR EACH FACILITY UNDER CONSIDERATION 3 . OBTAIN SITE INFORMATION AND DOCUMENT WITH PHOTOGRAPHS.' START ESTABLISH OPERATIONAL METHOD, LINES OF COMMUNICATIONS AND EXCHANGE INFORMATION. eu q 17 ' ee `` j� ■ utrnn[n urn ov `. "DORM --MIC RLAB j I CEDAR RAR1D5 •DES M019ES i k I ;— EXISTING SPACE USE EVALUATION The two buildings housing administrative staff offices are the Civic Center (city -owned) and the Davis Building (rental space). It was necessary to ac- quire space in the Davis Building due to inadequate available space in the Civic Center to accomodate the functions of the assisted Housing Program and the Planning and Program Development Department. While the space available for these functions is generally adequate, it must be noted that it presently costs the city approximately $30,000 per year in rent and utilities to maintain that space. 1 The Civic Center accommodates most of the administrative staff office space required. Functions currently housed there include: The Police and Fire Departments, Finance Department, City Clerk's Office, Legal Department, Human Relations Department, Housing and Building Inspections Department, as well as space for Cit,v Council and Manager functions, (A comparison of the current space use and projected space requirements can be found in the next section). In general, the building supports the functions mentioned because it must. However, it is apparent, even to the casual observor, that signi- ficant space -related deficiencies exist. { The most serious space inadequacies involve the Fire Department, Police De- partment and Finance Department. The Fire Department is operating under significant handicaps as a result of insufficient space. Engine access into Gilbert Street is undesirable. The lack of space in the engine room requires that frontline equipment be stacked in the bays. I.S.O.'recommen- dations include increasing the manpower on pumper and aerial ladder trucks by I man each. However, dormitory space is presently inadequate by half- I dozen spaces at present. Both maintenance and training space is also in- adequate. The space allocated to the Police Department was probably inadequate in 1960 and the department has added 30 personnel since then. The 5 aao C F UIf POmmm AV �.. 1. ..-JORM. MICR#LA9- _1 LCEDAR RAPIDS • DES MOINES. _y 1 JV F/I administrative and control area has been remodeled, however, functional relationships in the area remain awkward. Visual control is sacrificed. The booking area is inadequate and interview space is practically non- existent. Space for investigative activities is totally inadequate and squad rooms and training areas are also insufficient. The Finance Department is presently short of space. Time will aggravate this condition because this department will probably be subject to expansion in programs and space in the future. Current needs include the expansion of the document retention area, the addition of conference/meeting space and the expansion of office space and storage areas for central services. It should be emphasized that the expansion of receiving and storage facilities within the Civic Center is necessary to satisfy the needs of all departments. Staff functional areas could be better organized and related if additional space were available. This would allow for increased work efficiency. The fact that PPD and Housing assistance functions are located in the Davis Building is a compromise of their functional relationship to other staff operations. Conference space is generally inadequate, and the location of these rooms forces compromises in the security of work areas during "after- hours" meetings. The Civic Center building, itself, contributes to organizational dysfunction. Due to overcrowding there is little flexibility remaining in the existing interior space configuration. However, the structure retains considerable remodeling flexibility. In addition, the building is not accessible to the handicapped as required by law. � inlrunmMcn qv JORM-MICR6LAB - -! J CEDAR RAPIDS • DES MOINES 0 a 01 7"! i 4 t PROGRAM OF SPACE REQUIREMENTS In the previous section, several space related deficiencies were identified. The next step is the development of a Program of Space Requirements. Such a program must first compensate for existing space deficiencies; and second, it should include space needs projected on the basis of a realistic twenty- year growth pattern. It is relatively easy to establish current space needs which will compensate for identified deficiencies. Itis more difficult to project, over a long time period, the manner and extent to which municipal government will grow and change. Nevertheless, it is imperative to develop realistic estimates as a basis for future master plan decisions. The actual growth in city population and the increased demand for new services provide some clues to future trends. 70,001 60,001 50,00( 0 40,001 J 00 30,00( 20,00( 10,00C YEARS PROJECTED POPULATION GROWTH FOR IOWA CITY 1 mir.Fnr Timm RY 1. 1' I" DORM MICRIJLAS' _J J CEDAR RAPIDS • DES MOVES F _�o ---O-MMMM- -'-.--.--- .--.--..-. ..-......M ..-----.-. YEARS PROJECTED POPULATION GROWTH FOR IOWA CITY 1 mir.Fnr Timm RY 1. 1' I" DORM MICRIJLAS' _J J CEDAR RAPIDS • DES MOVES F _�o / i I / V Y I In determining functional space requirements, the intent is to identify the extent of space necessary to support: 1) the furniture of the appropriate work stations and other occupants; 2) the associated storage requirements; and 3) the functional processes or activities which must take place during the workday. While a visual inspection of work areas may serve to identify general space -related problems, a program of current and projected space needs must be developed and compared with existing j available space to define the precise limits of the problem. i 1 i . Presently the administrative staff occupies approximately 12,000 S.F. (net) j i in the Civic Center and another 3,200 S.F. (net) of rental space in the J Davis Building. The Police and Fire Departments occupy approximately 11,600 + ji S.F. (net) in the Civic Center. i v l As indicated in the previous section, there are several departments which have significant current space needs. Among the administrative staff departments the following additional area is required to support present functional activities. i FINANCE DEPARTMENT Document Retention 800 S.F. General Storage (paper & supplies) 700 S.F. Office -Space 400 S.F. Conference/Meeting Room 300 S.F. 2,200 S.F. PUBLIC WORKS Conference/Meeting Room 300 S.G. Public Reception Area 80 S.F. i Office Space (Engineering) 120 S.F. L 500 S.F. HOUSING & INSPECTION SERVICES Public Reception Area 150 S.F. Plan Review Area 150 S.F. `j Office Space 200 S.F. 500 S.F. E F wnnnnmrn nv i --DORM-��MIC R#LAB- , \ CEDAR RAPIDS DES IdeIYES M& IF The Police Department requires an additional 2,350 S.F. in support of the following functions: Booking and Interrogation, Control Desk, Evidence Storage & Examination, Investigations Room, and Squad Room/Meeting Room. ` The Fire Department has a critical space need when compared with similar departments in support of center city areas. 7,650 S.F. in addition to present space is required to support adequate training and maintenance facilities, quartering of shift personnel, storage of equipment and admin- istrative office space. Thus, it can be seen that present available space is more than 11,000 S.F. short of meeting current functional needs. A program of space requirements through the year 2000 has been included at the end of this section. Also a recap of the comparison of existing space to current and projected space needs is presented in Figure IV -I. - uironan urn ov 1 JOR M;MICR+CAB- ....1 CEDAR RAP1D5 DES MDIYES I � I i 0" D 1 �1 Figure IV -I EXISTINGVSPACEUSE CURRENT AND PROJECTED SPACE NEEDS Function Manager/Council Human Relations Legal Department City Clerk Finance Department Administration Treasury Division Accounting Division Central Services Word Processing *Planning & Program Development Public Works Director Engineering *Housing & Inspection Services SUBTOTAL (Admin. Staff) Police Department Fire Department Existing Space Utilization (Net S.F.) 2,650 400 1,020 730 4,270 (950) (1,085) (835) (1,075) (325) 2,570 2,085 (330) (1,755) 1,675 15,400 S.F. 5,250 S.F. 6,350 S.F. *Includes space in Davis Building. (3,200 S.F. Total) Projected Space Needs Net S.F. 2,878 800 1,100 900 7,403 (2,025) (1,190) (1,650) (1,810) (728) 2,819 3,496 (612) (2,884) 3,769 23,165 S.F. 9,000 S.F. 18,000 S.F. • uvcnnimrn av I-JORM-... MICRbLAB._ j 1 CEDAR RAPIDS • DES MOINES � I I Current Additional Space Needs Net S.F. i 2,200 (1,500) (700) 500 t (300) (200) 500 i 3,200 S.F. 2,350 S.F. 7,650 S.F. 1 9 10 aao 1 aao 1 IF Functional Space Requirements aao i utrunrnurn qv tI DORM".MICR+LAE§- CEDAR RAPIDS • DES MOINES I Ii ! f i CITY .OF IOWA CITY - SPACE STUDY DEPARTMENT: CITY MANAGER EXISTING SPACE 1170 S.F RESTRM. - KITCNENE7TE 61 % 12' • 72 S.F. ❑❑ .OFFICES (2) 10' %10' s 200 S.F. ASST. CITY MANAGER 12' % 12' = 144 S.F. SECRETARY - RECEP. 12, X 16� = 192 S.F. CITY MANAGER 15' X ISS - 270 S.F. CONFERENCE ROOM 26X 25' 500 S.F. i S 1 PROJECTED SPACE REQUIRED = 1376 S. F. 1 mironG➢M[= RV 1' DORM-MICR#LAB` .) � [CEDAR RAPIDS • DES MOINES j aao -w i i i S 1 CITY OF IOWA CITY - SPACE STUDY DEPARTMENT ; COUNCIL CHAMBERS i EXISTING SPACE 1400 S.F. PROJECTED SPACE REQUIRED = I500 S. F. i uvonniorn ov .I JORM--MICRALAB , CEDAR RAPIDS • DES MOINES I /� CITY OF IOWA CITY SPACE STUDY DEPARTMENT HUMAN RELATIONS EXISTING SPACE 400 S.F. RECEPTION FILING id X 15, a 150 S.F. DIRECTOR'S OFFICE to' X to' = 100 S.F. LIBRARY FILES to' x Id • 100 S.F. CONFERENCE ROOM to' x to' ■ 100 S.F. OFFICE 10'X 10 100 S.F. OFFICE to' X to' = fOO S. F. F-1 OFFICE T.5, X to' ■ 75' S.F. F7 OFFICE T.5, X to' = 75 S. F. PROJECTED SPACE REQUIRED = 800 S.F. ,L 1l CEDAR RAP uc MICFl+L_A8'_ ■ C CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: LEGAL ATTORNEY OFFICE ATTORNEY OFFICE EXISTING SPACE = 1020 S.F. ATTORNEY /PARALEGAL SECURE FILE STORAGE INTERN OFFICE SECRETARY - RECEPTION 10' X 12, = 120 S.F. 101 X 12' s 120 S.F. IOC X 12' ■ 120 S. F. 5'-X 10, = 50 S.F. 10$ X 20 s 200 S.F. 15' X 2d f 300 S.F. LIBRARY / CONE ROOM 20'X 20' 400 S.F. y PROJECTED SPACE REQUIRED = 1100 S.F. Pao I e ut rCnc 11 urn nv JORM'"MICR�LAB- ..1 CEDAR RARIDS •DES MOIRES + ti 1 7 � LIBRARY / CONE ROOM 20'X 20' 400 S.F. y PROJECTED SPACE REQUIRED = 1100 S.F. Pao I e ut rCnc 11 urn nv JORM'"MICR�LAB- ..1 CEDAR RARIDS •DES MOIRES + i 1 / I i I II / I r^� CITY OF IOWA CITY - SPACE STUDY DEPARTMENT : CITY CLERK i EXISTING SPACE CLERKS OFFICE DEPUTY CLERK OFFICE WORKTABLE /CODE SUPPLEMENTS COUNTER/ CLERK - TYPIST VAULT STORAGE i MISC. STORAGE PROJECTED SPACE REQUIRED e-61 = 730 S.F. 101X 121 • 120 S.F. 101 X 121 ■ 120 S.F. 101X121 ■ 120 S.F. 101X 121 ■ 120 S.F. 101 X 161 = 160 S. F. 101X16•• 160 S.F. I01 X 101 a 100 S.F. 900 S.F. aaa 1a lronrn lnrn Ry .I JORM" MICR46LA13- CEDAR RAPIDS • DES MOINES I I, I / I i 1 I CITY OF IOWA CITY - SPACE STUDY DEPARTMENT : FINANCE ( FINANCE ADMINISTRATION) i EXISTING SPACE 2 950 S.F. COATS AND COPIER AREA 51X15' ■ 75 S.F. DIRECTORISOFFICE 15' X ISI a 225 S.F. SECRETARY/ RECEPTION 10' X 20' z 200 S.F. CONFERENCE ROOM 15' X 201 ■ 300 S. F. DOCUMENT RETENTION ROOM 35' X 35' c 1`225 S. F. PROJECTED SPACE REQUIRED -- 2025 S.F. 11 mtranru Mrn av I'-- - JORM.- MICR+LAB*' I CEDAR RAPIDS • DES MOINES ' I 1 I 1 I i i I f 3 IF G • Cy 1 CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: FINANCE ( TREASURY DIVISION) EXISTING SPACE _ 1085 S.F. CDTREASURER'S OFFICE 10' X 12' ■ 120 S. F PUBLIC COUNTER AREA 21'X 10' ■ 210 S.F. VAULT STORAGE 8' X 10' a 80 9. F. DIVISION STAFF 26'X 30' 2 780 S.F. PROJECTED SPACE REQUIRED = 1180 S.F. f l rICROF11mm Ry :JORM-MICRLA�B. _., CEDAR RAPIDS • DES MOINES I • r I CITY OF IOWA CITY - SPACE STUDY DEPARTMENT : FINANCE ( ACCOUNTING DIVISION) NG SPACE 835 S.F CONTROLLERS OFFICE 10/X12/ • 120 S.F. INFORMATION SPECIALIST 10/ X 12/ ■ 120 S.F RECORD STORAGE 5/ X 12/ = 60 S.F. COMPUTER ROOM 15/ X 20/ = 300 S. F. DIVISION STAFF 30'X35' -z 1050 S.F. PROJECTED SPACE REQUIRED / MI CROF II tan RY 1 JORM MICR#LAB 1 --CEDAR RANIDS •DES MD18LS !!i 1 z 1650 S.F. r": aao i CITY OF IOWA CITY - SPACE STUDY DEPARTMENT : FINANCE ( CENTRAL SERVICES ) 1< PURCHASING AGENT BUYER'S OFFICE SR. CLERK -TYPIST CLERICAL / FILING PAPER STORAGE MAIL ROOM CENTRAL SUPPLY PRINT SHOP EXISTING SPACE = IOT5 S.F. 10•X 10' a 100 S.F. 10'X Id a 100 S:F 8' X 10' a 80 S.F. 8' X lo' = so S. F IdX15' a I50S.F. 10' X Id = 100 S.F. PROJECTED SPACE REQUIRED f.__.___.._—._..._._._ _..... __..... ...... m ironPI1mm pY 1 JORM ' MICR#LAB I` I CEDAR RAPIDS DES MOVES I 20' X 30' = 600 S. F. 20' X 30' - 600 S.F. i 1 = 1810 S.F. a ao JJ CITY OF IOWA CITY - SPACE STUDY DEPARTMENT : FINANCE ( WORD PROCESSING) EXISTING SPACE = 325 S.F. SUPERVISOR'S AREA 8'X 10' ■ 80 S.F. RECEPTION 6' X 8' • • 46 S.F. OPERATOR'S WORKSPACE 16' X 20' a 320 S.F. EQUIPMENT AREA 14'X 20' ■ 280 S.F. PROJECTED SPACE REQUIRED = 728 S.F. Iu�ronrn urn ev JORM'-"MICRf L-A B" CEDAR RAPIDS •DES MDIYES ' r' I 1 I 1 aao GRAPHICS AREA 400 S.F.- PROJECTED SPACE REQUIRED 2819 S.F. f•- - i 1 ufronnEurn ov I—JORM _MICR4ILAM CEDAR RAPIDS DES MOINES 1 JV CITY OF IOWA CITY - SPACE STUDY DEPARTMENT : PLANNING a PROGRAM DEVELOPMENT DAVIS BLDG ■ EXISTING SPACE 25TO &F. DIRECTORS OFF 12'X12 IO�XIO� 244 S.F. HUMAN SERV. PLNR. i SECRETARY 5 FILES 10 X 17 8�X10� 10'X 10� 350 S F. LIBRARY PLAN ADMINISTRA. IO X 12IO XIOIO�X 10 320 S.F. i COBG PROGRAMS IOX12 10'XIO� 10'XIO 320 S.F. DEVELOPMENT, IOC X 12IO X IOC 220 S.F. PROGRAMS TRANSPORTATION IO�X12� IO�XIO� 220 S. F. PLANNING RURAL PLANNING 220 S.F INTERNS OFFICE 225 S. F. i ' I CONFERENCE RM. IS' X 20' 300 S.F. i GRAPHICS AREA 400 S.F.- PROJECTED SPACE REQUIRED 2819 S.F. f•- - i 1 ufronnEurn ov I—JORM _MICR4ILAM CEDAR RAPIDS DES MOINES 1 JV CITY OF IOWA CITY - SPACE STUDY DEPARTMENT :PUBLIC WORKS DIRECTOR EXISTING SPACE = 330 S.F. SECRETARY- RECEPTION DIRECTOR'S OFFICE CONFERENCE ROOM PROJECTED SPACE REQUIRED 14' X 12' = 166 S. F. 12' X 12' = 14 4 S. F. I5'X20' = 300 S.F. f---- ------- - MIfO�FiI YCO AV 1 -JORM:1 MICR+LA[i` CEDAR RAPIDS • DES MOINES I I = 612 S.F. ago J� I { ago J� r CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: ENGINEERING 1:1 D EXISTING SPACE 1755 S. F. romminim SECRETARY / RECEPTION CITY ENGINEER OFFICE ASST. CITY ENGINEER CIVIL ENGINEER OFFICE CIVIL ENGINEER OFFICE CHIEF INSPECTOR INSPECTORS OFFICE LIBRARY / CONE RM. BLUEPRINT ROOM FILING ROOM DRAFTING ROOM LAB AND EQUIP. STOR. 20, X 20 400 S. F. 12, X 15, = ISO S.F. 12' X 12' = 144 S. F. 10' X 10' = 100 S. F. 10' X Id = 100 S. F. 8, X 10, = 80 S. F. 8, X 10, - 80 S. F. 10'X 14' = 140 S.F. 10'Xid a 100 S. F. 12, X 3d = 360 S. F. 24'X 3d - 720 S.F. 16' X 30'• = 480 S. F PROJECTED SPACE REQUIRED = 2884 S.F. aaa r ruronon urn av >> JORM MICR46LA6 I I CEDAR RAPIDS - DES MOINES J� 1 CITY OF IOWA CITY - SPACE STUDY DEPARTMENT 1 HOUSING AND INSPECTION SERVICES EXISTING SPACE DIRECTOR'S OFFICE • 1075 S. F. 15'X 15' = 223 S.F. SUPERVISOR 8 PLAN REVIEW 15'X16' = 240 S.F. ` SUPERVISOR'S OFFICE J2' X 12' = 144 S.F. SECRETARY 8 COUNTER 10' X 20' = 200 S.F. FILE CLERK 101X 10' = 100 S.F. BUILDING INSPECTORS 12.5 X 32 = 400 S.F. HOUSING INSPECTORS 18'X 32' = 576 S.F. • PROJECTED SPACE REQUIRED = 2235 S.F. i 1 � MIf00C II 'ACO AV !+ I"JORM-" MICR+LAB- CEDAR RAPIDS DES MOINES ' �� it —Y CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: HOUSING ASSISTANCE a REHABILITATION EXISTING SPACE ( DAVIS BLDG.) ■ 600 S. F. i j COORDINATOR 12 12' ■ 144 S.F. PUBLIC RECEPTION 12!X15' ■ 180 S.F. SECRETARY 20, X 25! = 300 S.F. HOUSING SPECIALISTS (2) 12'X 15' - 360 S.F. HOUSING REHAB. OFFICE PROJECTED SPACE REQUIRED 14 X 25' c 350S.9 jutroncn Mrn av �l. J "JORM-MICRI�LAB - -{ CEDAR RAPIDS DES MOIRES c 1534 S.F. aao CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: FIRE DEPARTMENT ME ! i� NEW ENGINE ROOM 100' X 60' = 6,000 S.F. utrgnmorn I-nv JORM MICR*6LAB CEDAR RAPIDS • OES tdOINES m ®l ir i i CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: FIRE DEPARTMENT ( CONT. ) -- _y MENS LOCKER ROOM 46 X 3.d = 1400 • S.F. 1^ i myronnl Mrn ov JORM:""MICR+CAB- -� CEDAR RAPIDS • DES MOINES = 1080 S. F. I- i = 240 S.F. I g' = 924 S. F i I CITY OF IOWA CITY - SPACE STUDY DEPARTMENT: FIRE DEPARTMENT (CONT ) HOSE TOWER 8'X 11, = 88 S.F. EXCERCISE AREA 36X 30'. = 900 S.F. STUDY AREA AND CLASSROOM WATCH DESK AND ALARM CENTER 25'X 20" = 500 S.F. 17' X 14� ■ 238 S.F. RECORDS STORAGE 20, X 20" ■ 400 S.F. BATT. CHIEF OFFICE 15'X 15' = 225 S.F. BATT. CHIEF DORM 25'X 10' = 250 S.F. ❑ JANITOR 6' X 7' = 42 S. F. MSA REPAIR 20"X 15'• = 300 S.F. CHIEF'S OFFICE 15' X 12' = 180 S.F. SECRETARY 15' X 12' = 180 S.F. FIRE MARSHAL 15'X 12' = 180 S. F. TRAINING OFFICER 15'X 12' = 180 S.F. a TOTAL PROJECTED SPACE REQ'D 14, 907 S.F. aao f, +� mirmrvl ucn nv JORM " MICR#LAB - ' 1 CEDAR RAPIDS • DES MOINES II r Jd I' I I 1 I r� 1 EVALUATION OF EXISTING SPACE RESOURCES The discussion in previous sections of this study has indicated that } serious space deficiencies exist for several city departments or offices. i Since the Civic Center does not contain sufficient space to meet even current needs, other resources must be considered in providing for the necessary expansion. These resources could include the acquisition of additional rental space, the re -use of other city owned facilities, and/or I the construction of new facilities. IRental space is often economical when the demand for additional space not constant or will be short-lived. The annual cost for rental space i @ $8/S.F.-/year will be comparable to the annual cost of new construction @ $60/5.F. (assuming interest costs @ 10%) prorated over 20 years. Some Potential disadvantages exist with rental space. Satisfactory area in the configuration required is often not available within an acceptable distance. Often, some initial basic work must be done to render the space functionally i suitable. In addition, future expansion potential is usually limited. i I � On the other hand, new construction can be designed to the actual require- ments for a functional, efficient layout. Flexibility of construction can ` also be incorporated allowing remodeling and expansion with a minimum of alterations. And consideration must be given to the fact that the useful life of new construction should be' expected to be 40-50 years. Thus, new construction encompasses the advantages of initial efficiency of layout, accommodation of future expansion and long-range cost effectiveness. jThe alternative to leasing and new construction is the re -use of existing City -owned buildings. Finished space on the third floor of the Senior Center (Old Post Office Building) is currently not utilized. Unfinished space is available in the City -awned "U -Smash -Em" Building; and space may become i available in the old wastewater treatment plant in the future. i 12 aao V—.ronr11 urn nV i JORM I CEDAR RAPIDS • DES MDI4E5 J ■ i 1 Approximately 3,000 S.F. of office space is available in the Senior Center. This is basically prime, finished space ready for immediate occupancy. How- ever, this area may be available for the short term because senior citizen activities are currently scheduled for expansion into this area on a priority basis. The "U -Smash -Em" Building is presently used for miscellaneous storage (stolen bicycles, parking meters, etc.). The quality of interior space is poor and deteriorating. A considerable investment ($200,000 or more) would be required to renovate the building for administrative office space. Its potential for warehousing is greater. Hovever, even this function would require structural renovation, roof replacement and installation of mechanical and electrical support systems. Obviously the high initial investment to make the building habitable is not consistent with short term use. Therefore the primary value of the site lies in the demolition of the building and the re -use or re -sale of the site. The wastewater treatment building incorporates a vehicle storage and main-. tenance garage and administrative support areas for various pollution control functions. The original building (minus the garage addition) was constructed on several levels and the configuration of the stairs makes circulation difficult and handicapped accessibility impossible. Modification of this i structure for administrative office space would probably not be cost effective. Installation of an elevator, replacement windows, interior finishes and remodeling of the garage would result in construction costs in excess of $200,000 for 5,000 S.F. This building is probably better suited to a maintenance and/or storage type function, and could be easily converted to that use. A consideration in evaluating the viability of rental and re -use options is the introduction of fragmented, decentralized office locations for functionally related departments. Separation of related functions can result in ineffective and insufficient communication as demonstrated in the separation of offices between the Civic Center and the Davis Building. Thus, it appears that 13 1 utronniurn av 11- "JORMR�LA[i` CEDAR RAPIDS • DES'MO I r' - i �1 i neither the rental space option nor modification of existing' facilities' for re -use presents any desirable long-range alternatives for satisfying existing additional space requirements. If we then look to new construction to satisfy expansion needs, the following options must be considered. In the case of outdated inflexible existing facilities, construction of totally new replacement spacC with built-in expansion capability must be considered. If existing facilities are reason- ably functional and flexible to the extent that remodeling and expansion possibilities exist, then consideration should be given to the construction of expansion space and remodeling as required to maintain functional space use. The Civic Center must be examined with remodeling and new construction in mind to fully explore these options. While the Civic Center has some critical problems, the building and site offer several advantages. 1) The site allows for building expansion. 2) City -owned parking areas adjacent to the building could be made available for appropriate future development. 3) The existing building design is reasonably functional and flexible enough to allow remodeling. 4) The building life span should extend another 20-30 years with reasonable maintenance. 5) The building presents a suitable, attractive image for municipal administrative functions. The difficulties with the present building center around expansion of the Fire and Police Departments. This part of the building cannot be effectively expanded in any functional manner, yet it represents the largest current space need. Except for inadequate space in general, other less critical problems include location of the building in the Ralston Creek floodplain and inaccessibility of the interior offices to the handicapped. u,ronauurn av JORM MICR#LAS.. 1 ' CEDAR RAPIDS DES MOINES I 14 aao i Y 1 JV In considering the planning strategy for new construction, the following objectives should be achieved. 1. Ultimately, the additional space provided should satisfy the need and be flexible enough to accommodate the appropriate functional relationships and allow for future expansion. 2. All administrative functions should be centralized in one facility to encourage efficient interdepartmental communication and public accessibility. 3. All facilities should be accessible to the handicapped in accordance with Federal law. 4. New construction should be firmly based on sound principles of energy conservation. Several alternatives involving various degrees of new construction will be presented in the next section. 15 Fp Mironcnurn ay. /I _..._..`. I._�... .. M -JOR. MICR#LO A. I CEDAR RAPIDS OES MDIYES aao I i i i aao gi 0 0 CIVIC CENTER - LOWER FLOOR 68 % NET USABLE SPACE ( 5,280 S. F. D uvonrfnarn ov JORM - MIC R#LAB- CEDAR RAPIDS • DES MOIYES I �� CIVIC CENTER - UPPER FLOOR 75% NET USABLE SPACE ( 5,843 S.F.) b 0 F i uvonan Mcn nv JORM . MICR#LAB 1 { 1 I CEDAR RAPIDS DES MOINES / J� • 1 i CONTROL AND INVESTIGATORS j COMMUNICATION ROOM CENTER CHIEF S OFFICE rEV SUP CRVIS ORS 0 FFICE MEETING CE ROOM INTER• LOC VIEW REST NCE,. ON STOAGE SHADED AREAS INDICATE SPACES AVAILABLE FOR ALTERNATE USE ■ GARAGE SHAKE DOWN R RG[INING UPPER FLOOR PLAN CIVIC CENTER PROPOSED POLICE DEPT EXPANSION � �II i Mirpmimm Rv 1 �- JORM MICRL A 8 .1 J CEDAR RAPIDS • DES NOIRES I I � i i CORDS NORTH SCALE 1/16 ?1••0" 16 '1 ALTERNATIVES The existing facilities have been evaluated, deficiencies have been identified and various corrective strategies have been discussed in terms of the planning objectives. The next step in the study process is the development of several comparative alternatives for consideration. In any list of alternatives there is always the option -to do nothing. Since the objective of this study is to address existing problems, which are not likely to be reduced with the passing of time, doing nothing is not a responsible solution. The other extreme would be to vacate existing facilities and select a new site upon which to build a new City Adminis- trative and Public Safety building. This alternative, while it may have some long-range (40-50 years) economical benefits would require a significant initial investment. Construction cost for such a project (50,000 S.F. @ 360/S.F.) would approach $3,000,000. In addition, the present building would have to be disposed of in some manner (demolition or resale) and a site capable of supporting such a new facility j. would have to be purchased. Given the current economic climate, this approach would probably have the same result as the "do nothing" approach. Certainly the practical solution lies somewhere between the two extremes just cited. The following alternatives were developed in response to the documented need for facilities expansion and in accordance with the planning objectives included in the previous section. It is the intent that consideration of these alternatives, in conjunction with the information included in this study, will contribute to a better understanding of the space -related problems and opportunities facing Iowa City. 4 17 aao f wronriii4 n Rv "JCRM - MICR46LAS 1 1� CEDAR RAPIDS DES MOINES i i r 7 JJ v ALTERNATIVE NO. -I This alternative is based on the immediate construction of a new Public Safety Building with space for the Police and Fire Departmnets. The site required for such a facility would need to be near the City center area in order to provide adequate fire protection services. The vacated space in the Civic Center would then be available for remodeling for administrative office expansion. Advantages: I. Construction of facilities for the Police and Fire Department would satisfy the largest current space need. 2. The Fire Department would be relocated from the Civic Center. 3. The space vacated in the Civic Center would be adequate for expansion of administrative staff depart- ments into the future. Disadvantages: 1. Financing the construction of a Public Safety Center would require a substantial Bond referendum. 2. The City does not presently own a site which would be suitable for a Public Safety Center. 3. The vacated space in the Civic Center exceeds the current space needs for staff office expansion and the remodeling costs associated with the jail area will be relatively high. Financial Data: Construction of new Public Safety Center. 28,000 S.F. @ S60/S.F. $1,680,000 Site Cost 600,000 Remodel Police/Fire Dept. (7850 S.F.) 275,000 ,n rnnrn urn ev 11--I"JORM--'MICR( LAB` Ij CEDAR RAPIDS DES MOIYES r>_ 18 ALTERNATIVE NO. 2 This alternative envisions the expansion of the Civic Center Building with a multi -story addition capable of satisfying all current space required as well as providing for future expansion flexibility. Advantages• 1. Facilities for all municipal staff functions including Police and Fire Departments would be centralized at one location. 2. Construction could be phased to allow future expansion for administrative staff functions at a future date. 3. P. new site would not be required for additional construction. Di sadvantages : 1. Existing parking in the lot north of the Civic Center would be severely reduced. 2. The total available site is minimal for con- struction of a new fire station. 3. There would be inefficient site utilization during the time between construction of the Fire Station and later construction of additional administrative staff space. Financial Data: Construction of Fire Station 18,000 S.F. @ $50/S.F. $900,000 Remodeling of Existing Police/ Fire Department 275,000 Construct Administrative Office Addition to Civic Center 14,000 S.F. @ $60/S.F. 840,000 II1 Mir Cnnulrn nv 1 1 " JORM�" MICROLA9 CEDAR RAPIDS DES MOINES 19 -r. I t 1 1. i I 1 aao 1 ALTERNATIVE N0. 3 The practical limits of the City's financial capability may be best served by an alternative which lends itself to phased completion. This proposal recommends the construction of a new Fire Station on a separate site and the remodeling of the vacated area in the Civic Center to satisfy current space needs. A future addition could provide for necessary expansion of administrative office space. Advantages: 1. The Fire Department could be constructed in the near future in response to the most critical current need. 2. The remote location of the Fire Department does not encumber the present Civic Center site. . 3. Phased completion of new construction and re- modeling allows financing to be closely related to current and future space needs. Disadvantages: I. Site selection for the new Fire Station is the most significant problem. The following City -owned properties were considered as potential sites; however, each has disadvantages. Gilbert Street Waterpipe Storage Lots are too small and access is too restrictive. "U -Smash -Em" Building Site would also restrict access, and proximity of flood plain makes site development difficult. 'The location of the Wilson Building and the electrical substation also restrict the potential of the site. tevonru urn av I JORM MICR#CAB...1_ -t CEDAR RAPIDS • DES MOINES C i 20 01010 1 JV I /• i I 1 d j• i Benton Street Park Site contains sufficient area; i however, the configuration of streets and railroad r, tracks in the area could significantly reduce accessibility to the center -City area. Alternative site options should be developed if this alternative is pursued. Financial Data: - Construction of new Fire Station 18,000 S.F. @ $50/S.F. $900,000 r Site Cost 400,000j Remodeling of existing Police/ Fire Department (7850 S.F.) 275,000 i Addition to Civic Center (Future Phase II) I jj I i i i • i j I 21 I t aa0 F IAI f.ROF 111AF0 Rv "-JORM 'MICR#LAB- CEDAR RAPIDS DES MOINES ' r rel ALTERNATIVE 4 This alternative proposes to satisfy existing space needs by acquiring additional rental space and utilizing existing facilities ("U -Smash -Em" Building and Waste Water Treatment Plant) to be remodeled for future expansion requirements. Advances: 1. The securing of rental space does not require the approval of Bond financing that new construction would. 2. Rental space can be secured in response to actual current needs. ties can be re -used. 3. Existing facili Disadv�e5 appropriate 1. It may be difficult to secure the appro P rental space at the time it is needed, and scattered facility locations will probably result if rental space is relied on for future expansion requirements. 2. Decentralized office space may result in in- efficient coordination and communication between related department functions. 3. None of the existing facilities is suitable for satisfying the Fire Station needs and that is the most serious current problem. Financial Rental space is usually less economical to operate and maintain than city -owned facilities. Initial construction work to make rental space suitable or functional for the intended occupancy may result in significant additional cost. i mrpnrii MFn RV IJORM MIC R#CAB- CEDAR RAPIDS DES MOINES 22 c 11� Renovation costs for the "U -Smash -Em" and Waste Water Treatment Plant could exceed $200,000 each depending on the extent of remodeling. However, neither of these buildings present particularly suitable or cost effective space for administrative expansion. I Mironr Il Pan RV tI JORM"..MlCR#C:"AB" l CEDAR RAPIDS •DES MDI4E5 I � I 23 aao F 1 I I - • r Y 23 aao CONCLUSIONS AND RECOMMENDATIONS In selecting the best alternative among those presented, the following considerations must be weighed. ! 1. ,Does the proposal satisfy the programmed space requirements in a functional, efficient manner? 2. Are the funding requirements compatible with the financial capability and disposition of the community? f Alternative Number One would certainly satisfy the functional space requirements for the Police and Fire Departments assuming a satisfactory site is available. The vacated area in the Civic Center would more than satisfy the current administrative space needs. However, there is probably not enough space available for long-term expansion; and the functional relationship of the vacated area to the rest of the Civic Center, together with handicapped accessibility requirements, make this concept less than I optimum. Alternative Number Four does not satisfy the current spare requirements for the Fire Department; and the securing of additional rental space is more a "stop -gap" remedy than functional master planning. As such, Alternative Number Four contains little to recommend it, except perhaps a lower initial cost. Alternatives Number Two and Three are very similar in response to satisfying iboth current and future function space requirements. The expansion program can be tailored to the appropriate requirements for each phase. The advantage of Number Three is that the Civic Center site is less drastically i affected; and hopefully, a less restrictive site can be acquired fo'r construction of a new Fire Station serving the Center City area. Thus, it is the reconamendation of R. Neumann Associates that the City Council consider meeting the future functional space requirements as outlined in i Alternative Number Three. 24 P to if 011t II IACD "V ' �. i. `JORMMIC RALAB � CEDAR RAPIDS • DES MOINES I r_-'.. En 0 r Jd r THE IOWA -ILLINOIS ELECTRIC FRANCHISE INTRODUCTION General Background Any private enterprise which holds itself out to provide a service vital to the welfare of the public is subject to regulation of prices and service. This has been established since the early English common law. The idea behind the rule is that since the service is vital it is the responsibility of the government to either provide the service itself or, if it is determined that the public would be adequately served by a private provider in terms of price and adequacy of service, to allow private provision. In England the instrument allowing a private individual or corporation to provide a necessary service was a charter; in the United States under federal i or state regulation it is a certificate of public convenience and necessity, l while under local regulation it is a franchise. At the local level the issuance of a franchise is predicated upon a determination by the municipality that the service is "necessary" and that it is "convenient" to have it provided privately. The franchise then lays out the terms wherein the city, in exchange for its right to provide the service itself, specifies the municipal powers and rights to be transferred to the private supplier and, in the absence of state commission regulation of rates, sets maximum prices and standards of adequate service. ' Because local franchises for a variety of municipal services --street railways, water, natural gas, light and power and others --entailed rights and privileges of great value, in the early years of this century the competition for these franchises led private interests to engage in a variety of unscrupulous activities to influence city councils to grant franchises with 1 i MICAU1IMPn RY � / �, 4• JORM "MICR6LAB' CEDAR RAPIDS • DES MOINES I !� n J� preferential terms. The situation deteriorated to such an extent that the Progressive Movement was born at least partially in response and came to power n in an atmosphere of public outrage, brought about by the writings of Henry Demarest Lloyd (Wealth Against Commonwealth), Ida Tarbell (The Standard Oil Trust), and Lincoln Steffens (The Shame of the Cities), among others. n The upshot was a series of municipal reforms resulting, inter glia, in 1 the large scale adoption of the city manager form of government (an attack on boss control of the city administration and in the movement to replace �1 private operation, under franchises obtained through corrupt practices, with direct public operation of public utilities, especially water and "traction" (street railways). The high point of this movement was reached before the outbreak of the First World War and before the rapid expansion of electric power and certainly p before the invention of natural gas. Even today while most American cities operate their own water departments the proportion with municipal electric systems is mu h lower, even though the theoretical arguments pro and con are Q the same for each. During the 1920s electricity became a normal and necessary part of city living. It was supplied, for the most part, by small, locally -owned companies r, along with a smattering of municipally -owned systems. Generation of power was done locally and each system maintained sufficient capacity to meet its own peak load. L Though the industry was basically organized on a local basis in the teens and early twenties there was movement afoot to buy up and consolidate these local systems into vast holding companies with centralized generating facilities. Led by men like Samuel Insull, large scale holding companies came into existence. These were able to substantially lower costs by centralizing 2 I ? 1n f IIr MIf ROF❑IAPn Ry JCRMMIC R#LABJ CEDAR RADIOS • OES MOIYES ' 1 I � J� �r OIN a supply to take advantage of economies of scale on the one hand and load diversity on the other.* The reduction in costs effected by these large multijurisdiction generation systems were passed on in part to customers, thereby encouraging an expansion of demand and a further expansion of scale in generation, with further cost reductions, etc. The difficulty arose when the business leaaers directing this movement were not satisfied with a reasonable rate of return and attempted, through a mare's nest of internal pricing schemes between the various levels of holding companies built on top of the local operating entities, to evade local regulation and defraud the public. Activities of this sort were facilitated by two factors: 1) local municipal regulators only had jurisdiction over the local operating subsidiary of the first level holding company (and not over any of the higher level entities in the chain of control;** and 2) the higher level holding companies, i.e. the entities at which actual effective control of the provision of service existed, were free of any control at either the state or federal levels as well. *Consider in illustration two towns each with separate electric generation systems and peak load of 400 MW. To cover this each town will have to have a minimum of 400 MW of installed capacity, for a total of 800 MW installed capacity between them. Assume (for the sake of this illustration) that when one town is at its peak, the other town is at its trough (maximum diversity of load). In such a situation a centralized generation system would not have to have 800 MW of installed capacity but only a sufficient amount to cover the coincident demand of the two towns. If the two were perfectly out of sync and had troughs at zero then approximately 400 MW of installed capacity would be sufficient to serve both towns. **Which meant, for example, that the next higher level could require the local company to buy equipment at exorbitant prices. The prices paid were then simply passed on --plus a charge for profit --to local customers. Since local regulators had no access to the books of the higher level companies, it was virtually impossible to determine what were reasonable rates. Since the higher level companies made exorbitant profits on equipment sales and the local operating companies were able to show higher levels of capitalization (upon which allowed rates of return are based) customers were fleeced both going and coming, while local regulators were left powerless. 3 i wrnnrufAM Rv 1MOINES JORM MICR#LAB --CEDAR RAPIDS • DES j aai fM iy [O 10 O C It was in the face of these problems that both state and federal govern- ments, in the teeth of the most bitter opposition from the holding companies,* acted to provide both active regulation and some measure of competition. At the federal level the Securities and Exchange Commission was created in mid -1934 to enforce the Securities Exchange Act. In 1935, partly in response to corrupt political practices on the part of the electric holding companies before C^n ress, the Congress passed the Public Utility Holding Company Act. This eliminated second level and higher utility holding companies via the so-called 'Death Sentence" provision of the Act and required substantial reform of inter -subsidiary accounting practices. In addition, the federal government 1) moved to establish the power program of the TVA; 2) provided funding for rural electric coops under REA; and 3) provided grants and credits for the creation of municipal systems through both the PWA and the WPA. At the state level many governments acted to establish public utility commissions with the authority and the capability of regulating integrated power systems which had branched beyond purely local service. While many states established commissions with statewide powers, many states did not. Tennessee, with access to cheap federal preference power from TVA, went 100% municipal; Nebraska avoided the need for state regulation of private companies by abolishing private provision altogether. Iowa, refusing to be caught up in the momentary fads of the thirties and forties, put off adopting general commission regulation until 1963. Rather, the response to the long history of *For example, the President of the holding company controlling the better part of the Tennessee Valley, Wendell Wilkie, after losing the struggle against the TVA, became the Republican presidential candidate in opposition to Franklin Roosevelt in 1940. 4 j uvoncnrecn av JORM"-'MICRALAB j CEDAR RAPIDS • DES MOIRES 1 � � _�O n ie) '-1 abuses by the private power companies in Iowa was, in general, the large scale adoption of cooperative and municipal provision of power to such an extent that Iowa still leads the nation in the number of municipal electric systems. The adoption of general commission regulation in Iowa is important in our context for two reasons: 1) Commission regulation entails the preemption of municipalities' power to set rates; and 2) while the I wa Code has always prohibited municipalities from issuing exclusive franchises, the Commission as granted exclusive electric service districts to each of the seven Iowa investor—owned utilities. This has had the effect of virtually eliminating the power of the city council to choose the company which will serve the city. The rationale for Commission control is fivefold. 1. Natural Monopoly --the relationship of scale of production and size of market in the electric power industry implies that power can be provided more cheaply by a single large generating facility rather than by a series of smaller ones competing in the same area. Associated with this rationale is the argument that more than one supplier competing in an area would entail unnecessary duplication of lines and other facilities. 2. Precedent --by 1963 Iowa had lagged behind virtually every other state in the nation in not having adopted statewide regulation.* In catching up, Iowa adopted exclusive service districts along wih the remainder of the standard regulatory package in use in most states at that time.** *The Commission had regulated the provision of electricity in unincorpor— ated areas for some time previously. **Statewide exclusive districts were orformally adopted by the Commission in 1976. 5 lr^ � + I.n ronr t{Itrn nv l" I"_JORM - MICR6LA13 if CEDAR RAPIDS • DES MOINES aai —`r 3. Security and simplicity--favoring electric companies with exclusive ,1 service districts reduced the business risks of the companies involved and created the necessary conditions for them to plan and rationalize the provision of services. From the ISCC's point of view it simplified regulation i n in comparison to a situation of many companies all struggling with one another in the same area. i 4. Cream Skimming--at the time of the formation of the REC's in Iowa in the 30s and 40s (and to a lesser extent later) a great deal of ill feeling 1 arose over the issue of "cream skimming" on the part of the private companies. In those days it was not uncommon for a private company which wanted to i �ra prevent the establishment of a rural electric coop in what it considered to be "its" backyard to establish service to rural areas with higher concentrations i of users along specific routes while refusing to provide service to rural i Q areas generally. Such activities--cream skimming--not only did not provide service to all rural users but prevented the establishment of REC's--which Would have served all users--by despoiling the service region of the best G areas. Any service area involves customers some of which are easier and more profitable to serve and some of which are more costly to serve. In such a i situation it could well be argued that the prevention of this sort of ongoing r piracy would be in the public interest, especially in a state fully committed to rural electrification. 5. Control of Statewide, Interstate and National Companies --the argument ! i u was advanced that franchise—granting municipalities, esepcially the smaller i ones, do not have the resources to supervise large multi—jurisdiction I I + utilities. A statewide regulatory body on the other hand would have a permanent staff which would be able to develop an expertise in this increasingly complicated and difficult area. i 6 r--- - r I L miron_rn ran ov JORIVA MICR#IAB ,I I CEDAR RAPIDS DES MOINES i i J h i +1 Franchise History of Iowa City Iowa City has a long and colorful history in franchise matters. In a very early case a national precedent was set when the courts prevented Iowa City from physically ejecting the holder of a gas light franchise from the city streets after the company had broken the terms of the franchise.* The first electric franchise was (as far as I can find) issued in 1909 to the Iowa City Light and Power Company (ICLP). Notwithstanding its local name, ICLP was a subsidiary of United Light and Railway Company of Delaware, itself a subsidiary of the United Light and Power Company, presumably also a Delaware corporation. United Light had acquired Iowa City Light and Power in an earlier transaction from Tri -City Railway and Light Company, a corporation whose antecedents have slipped into the murk of financial history. The franchise issued in 1909 to Iowa City Light and Power was to run for 25 years, expiring in October 1934. A special franchise renewal election was called for October 1932, but local antagonism, rooted in.high rates, resulted in an overwhelming vote (3-1) rejecting the franchise. Thus encouraged, the Company found that its rates had perhaps been somewhat higher than warranted by its costs, and ordered an immediate reduction. On April 17, 1934 the electorate in a special election approved an ordinance to establish a municipally -owned power plant. Later in 1934 the city applied for a PWA loan to finance construction. Further encouraged in this manner, the Company found in possible to enact another rate reduction while still maintaining an attractive rate of return. After pro -company city councilmen were defeated in the March 1935 city elections, the city accepted PWA financing of $917,000 for the new faciltiies. *The court arguing that some alternative had to be provided before an existing supplier could be ordered out. 7 aai In , I -JORM MICR4LAB CEDAR RAPIDS DES MOINES J r, 4 Mironanmrn nv I 1. JORM"-MIC R#LAB- _- ~ ] I CEDAR RAPIDS • DES MOINES I �� The company offered to further reduce rates if the council would reject the municipal system. By August 1935 the Company had created a trust fund to r! Y accumulate the difference between existing rates and the sharply lower rates promised by the Company if the voters were to reject municipal power and renew I N the franchise. Not content with these efforts, the Company opened a second front in the courts. It brought suit in Iowa District Court (Abbott v. City of Iowa City, 1 224 Iowa 698, 277 N.W. 437 (1938)) to invalidate the 1934 election approving a municipal system while, at the same time, bringing suit in the federal courts challenging the constitutionality of the P{1A's offer of financing for the i 1 Sff i construction of the new municipal system. The continuing delays in the 1 litigation saw the arrival of the March 1937 city council elections without i resolution of the cases. In its contribution to clean politics, the Company Q offered to distribute the contents of its trust fund to individual customers in proportion to past usage if the pro -muni candidates were defeated. The i anti -muni candidates were elected by a plurality but the election was challenged in court on the grounds of bribery by the company. (Vaud der Zee 1 v. Means, 225 Iowa 871, 281 N.W. 460, (1938)). While the case was being considered, the Company made a new offer of further reduced rates in addition ' to the $94,000 in rebates previously promised if the newly elected council would cancel plans for the municipal system. By a 5-2 decision the Iowa Supreme Court held that since the anti -muni candidates had not acquiesced in +'✓ the Company's bribery the election was valid (the decision was rendered over ; f the stirring objections of the two dissenters). In June, 1937 the Company's suit challenging the legality of the 1934 election was rejected by the Iowa courts. In January, 1938 the U.S. Supreme i iCourt / I dismissed ICLP's suits attempting to restrain the PWA from making the f i 8 r, 4 Mironanmrn nv I 1. JORM"-MIC R#LAB- _- ~ ] I CEDAR RAPIDS • DES MOINES I �� H loans. The anti -muni council, however, reversed the city's stance and issued a new franchise (evidently to expire in 1954) which apparently won approval at the polls (though I have found no record of the election). In 1940 enter Peoples Light and Power Company (the name was changed to Iowa -Illinois Gas and Electric company in 1941) effecting a reorganization of the Iowa and Illinois subsidiaries of United Power and Light of Delaware, probably under the mandate of the Public Utility Holding Company Act (though I have not researched the point in detail). The companies combined were Cedar Rapids Gas Company, Fort Dodge Gas and Electric, Iowa City Light and Power, Moline -Rock Island Manufacturing Company, Ottumwa Gas Company, Peoples Light Company, Peoples Power Company, Tri -City Railway (Illinois), Tri -City Railway (Iowa), and United Power Manufacturing Company. Having effected this reorganization, United Light and Railways Company was dissolved, with its common shareholders being compensated with Iowa -Illinois G b E stock. For reasons which I have been unable to divine, Iowa -Illinois' franchise with Iowa expired in 1954. However, no effort was made to renew the franchise u^til 1959 when the Company indicated that the possession of a valid franchise was necessary for its effort to attract financing (an interesting point in itself). The need for franchise renewal on expiration was evidently not thought to be pressing absent an ouster attempt. The elections scheduled for 1959 resulted in overwhelming (8-1) approval of the franchise agreement. The term of the 1959 franchise runs until October 8, 1984, which brings us up to the process of franchise renewal we are currently involved in. 9 I II IfgOL II NCO qV I �" 'JORM,- MICR6LAS CEDAR RAPIDS DES MOINES Q 01 _y �r r, ECONOMIC ASPECTS OF ELECTRIC SERVICE Though by law franchises cannot be exclusive, companies were almost invariably monopolies in their service areas. The argument was the familiar one that economies of scale and non -duplication of facilities entailed savings which outweighed the adverse effects of monopoly. The investor-owned companies had an easy time of maintaining their monopoly position for several reasons: 1) sufficient expertise did not exist at the local government level to provide an effective check on large power companies; 2) before 1935 no "benchmark" existed upon which to measure the performance of the private utilities; 3) before the New Deal it was very difficult to find funds for the creation of municipal electric systems; 4) many states had laws on the books requiring potential municipal systems to be funded through the mechanism of general obligation bonds;* and finally 5) until the federal river basin projects got well established, both legally (Ashwander v. TVA X) and in terms of production, most municipal systems were at the mercy of the companies which they had just displaced for wholesale power supplies. The possibilities of price -squeeze were well known and used most expertly by companies in this situation. The local financing situation was sharply improved by the passage of the "Simmer Law" (over ferocious opposition by the power companies) by the Iowa legislature in 1923 which, with many amendments later, enabled Iowa municipalities to finance municipal power systems by means of revenue bonds. This provided a substantial opening for "Munis" since bonds secured only by *For Iowa this meant that regardless of cost-effectiveness of the new municipal system it had to be financed within the 5% total assured value constitutional limit on G.O. bonding then in effect. 10 i. -DORM-MIC R�L AB' CEDAR RAPIDS • DES R01RES _ I I aal i JJ 0 0 C9] 'J 'J the revenues of the project constructed do not count as "debt" within the constitutional meaning. The second major stumbling block to breaking up the monopoly in power supply was the ability of the private systems, through joint projects, holding companies, pools, and other sorts of mechanisms to aggregate sufficient load to make large scale facilities worthwhile. At the same time, municipal systems in Iowa were effectively prevented from combining in similar fashion by a series of restrictive laws which effectively prohibited joint projects by groups of munis. The legislature in the 1980 session took some steps toward reform of these provisions but the resulting legislation specifically excludes new municipal systems from the scope of its protections (Senate File 48, i 1981). The remaining possibility for injecting some competition at the wholesale level has been the availability of some cheap federal hydroelectric ; "preference" power to "munis" located within range of federal projects. A number of municipal systems in northwest Iowa are able to draw this type of power from federal dams on the Upper Missouri, but the rest of the state is effectively out of range (and too late). It should be added that the local private wholesalers of power have almost uniformly refused to "wheel" power (i.e. transmit power from a producer of power other than themselves to a municipal system within "their terri- tory"). A major case requiring them to do so on anti—trust grounds was Otter Tail Power Co. v. U.S., 410 U.S. 366 (1973), but the condition persists f nonetheless. 11 � I i mirpnpn IAPn Ry `-JORM.-MICR+LAB'. I CEDAR RAPIDS DES MOINES I I J� 1 e1 O .v LEGAL FRAMEWORK* A franchise is made up of different categories of provisions. Power Conferring Provisions: These are straightforward: "A city may grant to any person a (non-exclusive) franchise to erect, maintain and operate plants and systems for electric light and power . . , within the city for a term of not more than twenty-five years." (Iowa Code 364.2(4)(a)1981). "A (city) may, for the purpose of providing electrical . . . service, confer the power to appropriate and condemn private property upon the person franchised." (Iowa Code 364.2(4)(e)1981). Regulatory Provisions: The regulatory provisions usually comprise the bulk of the franchise." They follow from the power of the City to grant a franchise and from the Iowa Code. "The franchise ordinance may regulate the conditions required and the manner of use of the streets and public grounds of the city." (Iowa Code 364.2(4)(e)1981). The Commerce Commission (ISCC) also has been granted broad regulatory powers by the legislation arising from the reforms of 1963 (Iowa Code 476.2, 1981). These include the power to regulate rates and services of public utilities (Iowa Code 476.1, 1981). Fortunately (or unfortunately, according to your point of view) the municipalities, pre - 1963 power to regulate rates has been pre-empted by the Commerce Commission. The passage of the 1963 legislation without the repeal of the pre- existing local franchise legislation has left the regulatory powers of cities (aside from rate making) in question. One issue is how much control may a city exercise over the construction, operation and maintenance of public *I would like to make it quite clear that I am not undertaking to give legal advice to the City. I have drawn the information in this section from my investigation of the economic and institutional aspects of franchises and rates in Iowa and I employ it here only as background to the discussion below of the policy and economic aspects of the franchise. 12 f' Mif DAF 11 NCO qY 1 I--JORM MICR+LAB- --, CEDAR RA RIDS • DES MOINES aai n �J utility facilities within its boundaries, before it comes into conflict with the ISCC. The lack of definition in some areas between the powers of the city and the powers of the ISCC provide a fertile ground for the utility in question to play one off against the other. (Refer to the discussion below of City of Des Moines v. ISCC for a good example of such a situation.) Legal Clarification Provisions: These simply define and clarify the legal relationships of the parties. Beneficial Provisions: These constitute the crux of the matter. The beneficial provisions lay out the company's "quid" for the city's "quo" in granting the company property rights in the streets and alleys of the city and the grant of the public power to condemn private property in furtherance of its private operations. The rights and powers being granted by the city are clearly valuable (consider the cost were the company to attempt to provide service without these rights) and the city can legitimately expect a return of some sort. The difficulty is that the types of benefits which have traditionally been included in franchises are being viewed either as entailing illegal price discrimination or consisting of purely local costs which should be paid by intra—city utility customers and not by the customers of the utility at large. For example, many small towns in Iowa have been able to bargain for free municipal lighting, the maintenance of a local service office and other sorts of relatively minor benefits in exchange for the franchise grant. Larger cities, for example Des Moines (Iowa Power), successfully bargained for an annual cash payment in exchange for the franchise. Des Moines' cash payment was, for every year up until 1979, simply included as another cost of doing business for Iowa Power at large and was amalgamated into the rates of all their customers. 13 wrDncuMrn av I"ORM "MICR+LAB 1 --CEDAR RAPIDS • DES MOIYES aal ti I i l J I This semi -informal process of deciding on beneficial provisions (often in the case of smaller towns the agreements were oral) reached a watershed in 1979 when Iowa Power refused to meld its Des Moines franchise fee into its overall rate structure but insisted instead on levying the fee only against its customers in Des Moines. This resulted in a major clash between the City of Des Moines and the Commerce Commission (which had approved the Iowa Power plan) which found resolution before the Iowa Supreme Court in City of Des Moines v. ISCC, 285 N.W. 2d 12 (Iowa 1979). In Des Moines the court upheld an ISCC ruling that it is reasonable for the franchise fees collected by a city from an electric utility to be imposed solely upon electric customers within that city rather than being spread over the utility's entire service area. The court noted that this method of collecting the franchise fee did not impair any of the franchise rights of the city (285 N.W. 2d at 16); but whether the ruling was due solely to the fact that the franchise agreement did not specify how the fee was to be collected was also because the court felt that no right existed to have general collection is unclear. The ruling in Des Moines raises more issues than it resolves. For example, would the regulatory powers of the Commerce Commission support an effort of the ISCC to alter beneficial provisions of an agreed-upon franchise in an area not directly related to rates? The only hint given by the Court was that the ISCC "found it would be discriminatory to impose (charges to cover franchise fees) on non-residents of (a) city who did not benefit from (the changing city's) services." (285 N.W. 2d at 16). If beneficial provi- sions of franchises collected systemwide were to be viewed by the ISCC and the courts as "discriminatory" then such a provision would be covered by the Iowa Code, "(N)o such public utility shall make or grant any unreasonable prefer- ences or advantages as to rates or services to any person or subject any 14 r•---------.._.._. r IA1fGOFII MCA AV 1 I""JORM "MICRE/LAB - _- CEDAR RAPIDS • DES MOINES ' MV 1 I � I I I i a JV s person to any unreasonable prejudice or disadvantage," (Iowa Code 476.5,' 1981). Apparently what upset the ISCC in the Des Moines case was the magnitude of the fee and not the principle underlying systemwide collection of the costs i 7 of beneficial provisions, discriminatory or not. The Des Moines franchise fee for 1975, for example, was over a million dollars which is certainly a i i cognizable amount in terms of rate case. On the other side, Iowa Power (and i others of the Iowa 7 as well presumably) had agreed to provide benefits to a series of small communities within its service area without localizing the costs. The total of these benefits, however, were estimated to aggregate to less than $25,000 per annum and so may have escaped the notice of the ISCC on the theory that justice does not concern itself with trifles. IAlternatives � � Though the focus of the Iowa City Council will no doubt be on the bene- ficial terms which could be negotiated, two other legal options exist: 1) the - City could elect to find another company to provide service instead of Iowa - Illinois; or 2) the City might consider setting up a municipal system. 1 Establishing a Franchise with Another Public Utility: Though theoreti- cally possible, in practice such an attempt would be certain to fail. The Iowa Code, in the same sections establishing the powers of the ISCC, grants i exclusive service areas to private utilities. Iowa -Illinois has a Commission - granted exclusive privilege to serve Iowa City. To attempt a major alteration in the existing system of exclusive districts would entail obtaining Comission approval. k v An exclusive service district can be modified by the "Commission, on its own motion or at the request of an electric utility or municipal corporation if this modification, including the factors noted (below), is found to 15 Ala _.. r. •• uironrri urn av -UORM - MICR( LAB ,•, I' I CEDAR RAPIDS •DES MDIYES I � be in the public interest." The factors to be considered are how the changes would fit into existing service areas, whether the changes would avoid unnecessary duplication of facilities, and natural and physical barriers (Iowa Code 476.25(1)1980). To alter the current system of provision, ' any municipal corporation, after being authorized by a vote of the people, or any electric utility may file a petition with the Commission requesting a certificate of authority to furnish electric service to the existing point of delivery of any customer already receiving electric service from another electric utility . . . (I)f the commission determines that service to the customer by the petitioner is in the public interest, including consideration of any unnecessary duplication of facilities, it shall grant this certificate in whole or in part, upon such terms, conditions, and restrictions as may be justified . . . (A)ny certificate issues shall require that the petitioner pay to the electric utility presently serving the customer the reasonable price for facilities serving the customer (as determined by the Commission).* It seems clear that the ISCC would not only have to take into consider- O ation the wishes of Iowa City but would also have to consider what impact the 1 removal of such a relatively large segment of Iowa-Illinois system and load would have both on the Company and the remainder of its customers. Under \ 1 these conditions it is unlikely that the Commission would decide the change would be in the public interest--especially given the fact that the Commission would have already certified that Iowa-Illinois' rates are fair and equitable. An additional problem would be attracting another company that would be willing to provide service under such circumstances. It is probably unlikely that any one of the existing seven Iowa investor-owned utilities would be ,L Iv • fj � *On the other hand 476.23 goes on to say: v "If not inconsistent with the provisions of this division all rights of municipal corporations under Chapter 364 to grant a person a franchise to erect, maintain, and operate plants and systems for electric light and power within the corporate boundaries, and rights acquired by franchise or agreement shall be ppreserved in these municipal corporations," (Iowa Code 476.230 (a), 1981). 16 .LoZ r II ! Mvoncn ucn nv ] I"JORM - MICR41LAEl- -1 J CEDAR RAPIDS • DES MOINES i I willing to negotiate and so it might be necessary to attempt to attract an outsider. It is hard to imagine a situation where the expected benefits from such a plan would be worth the extraordinary efforts which would probably be called for. Establishing a Municipal Utility: Mother alternative to renegotiation is the establishment of a municipal utility. Under Iowa law there exists a hierarchy of methods for acquiring a private utility's facilities in order to establish a municipal utility. In all cases the city must be authorized to make the acquisition by an affirmative vote of the electorate. The least complicated method of buying out a private utility occurs when the utility in question is agreeable to the sale. It would also seem to be the case, at first glance, that when a buy-out option has been included in the franchise the transition ought to be a smooth one, but this has not proven to be the case empirically (the 1934-38 franchise fight is a good example of this). In terms of the Code such a purchase agreement would be contractual; and the ISCC must approve the contract if it finds that the contract will "elminate or avoid unnecessary duplication of facilities, will provide adequate electric service to all areas and customers affected, will promote efficient and economical use and development of the electric systems of the 1 contracting electric utilities, and is in the public interest" (Iowa Code 476.25(2), 1981). y The next -least complicated situation is where the utility's franchise has expired or has been surrendered and the city and the utility cannot agree on terms of purchase. In this situation the city, after obtaining a certificate of authority and determination of damages (conclusive evidence) from the ISCC under Iowa Code 476.23(4)(d)(1981) (described above), may institute i condemnation proceedings under Iowa Code 472.46(1981). 17 oar � Mif OMC 11 MCA AV j JORM-MICR6LAB` CEDAR RA RIDS DES MO IN ' E 0 Io rJ 1-1 L r:t /"1 The worst situation for the city would arise were the city to attempt to establish a municipal utility other than at a time of franchise expiration and without having had the foresight to include a purchase option in the existing franchise agreement. In such a situation (included here so as to key the city to the need to write-in these sorts of protections in the current round of negotiations) the City would still have to obtain a certificate of authority from the ISCC under Iowa Code 476.23 (1981). This is the same as in the second -least complicated situation described above; the difference, however, would seem to be that in this case the city would in essence be petitioning the Commission to use the Commission's own powers to alter a service area rather than simply obtaining Commission authority for the city to act using its own condemnation powers. The Code seems to be saying that the city cannot condemn property being held and used under a valid franchise. This seems counter -intuitive and might be a point meriting special attention from the city attorney should the city choose to initiate a further investigation of this option. 18 1' 11 1 alrcnnirlrn av I 1 1. _ JOR M�-MIC RIJC A[!� CEDAR RANDS DES FIDINES I I G � l .Y , SURVEY OF IOWA FRANCHISES Specific language from a number of franchises granted by Iowa municipalities are presented below by type, according to the following index. y' I Power Conferring Provisions i Eminent Domain Trimming Trees Use of Streets and Operating Within City Regulatory Provisions City's Authority I Constant supply of Electricity 1 Construction of Electric Utilities Emergencies Extension of Service Movement of Buildings Removal of Equipment Repair of Street Reports and Maps Legal Clarification Provisions Assignment of Franchise j i Authority Retained Indeminification of City 1 Renegotiation of Franchise 4 t Severability Termination of Franchise t 4 i , . y 19 Cao1I 1 PAIMFnMFR Ry 1 l "JOR M'' -MIC Rf�L AO �� CEDAR RAPIDS • DES ROI4ES rag n Vl l Beneficial Provisions Franchise Fee Free Electricity Right to Purchase Use of Poles Power Conferring Provisions Eminent Domain --As hereinafter provided, Grantee shall have the power to condemn private property for the purpose of providing electrical service to the extent necessary to serve.a public use and in a reasonable relationship to an overall plan of transmitting electricity in the public interest upon approval of the City Council. The Grantee must establish the necessity for each taking of private property, and when so established, the City Council may approve the condemnation of the private property by resolution. Sioux City (1977). Trimming Trees --That the Grantee shall have the right to trim the trunks or branches of trees along or over the streets, roads, alleys, sidewalks, squares, bridges, and other public places in the City wherever the same are likely to come in contact with the Grantee's equipment, so as to enable the Grantee to erect and maintain its equipment in a regular and consistent form and manner, to reduce the likelihood and possibility of damage to property and injury to persons, and to enable it to provide the most efficient and continuous service that the circumstances will permit; provided, however, that the Grantee shall do all such trimming in neat and workmanlike manner, and at the Grantee's expense. Fort Madison (1959). Use of Streets an Operating within City --That Iowa Power and Light Company, a corporation, its successsors and assigns, be and it is hereby granted and vested with the right, franchise and privilege for a period of 20 mrROFII mrn RY 1. - JORM " MICR+LAB` j CEDAR RAPIDS DES M014ES f � J� 1 twenty—five (25) years from and after the adoption and approval hereof, as provided by law, to acquire, construct, maintain or operate in the city of Des Moines, Iowa, the necessary facilities for the production, distribution, I • transmission or sale of electric energy for public and private use and to 7 construct and maintain along, upon, across or under the streets, highways, avenues, alleys, bridges and public places the necessary fixtures and � 1 I equipment for such purposes. Des Moines (1960). ! Regulatory Provisions City's Authority --That the Iowa Power and Light Company, its successors and assigns, shall at all times during the term of this franchise, conform with, submit to, and carry out any and all ordinances relating to any person, ° firm, or corporation furnishing electric light and power now in force or that may hereafter be enacted and not inconsistent herewith. Des Moines (1960). 1 Constant Supply of Electricity --The Grantee shall at all times, unavoidable circumstances only excepted, hold itself in readiness to furnish, = and shall furnish, all electric energy required by the said City of Mason ` City, Iowa. Mason City (1961). I Construction of Electric Utilities --The construction of said transmission and distribution systems shall be in accordance with the specifications of the National Electrical Safety Code issued by the United States Department of Commerce, Bureau of Standards, in force at the time of said construction. All poles, posts, wires, cables, conduits and other equipment, apparatus and construction connected therewith shall be located, erected, adjusted and j ! maintained so as not to endanger g persona or property or unreasonably interfere with any improvement the city may deem proper to make, or to unnecessarily hinder or obstruct the free use of the streets, avenues, alleys, highways, bridges or private or public property. Marshalltown (1961). 21 � I F i - I I "MIC.ROFIion RY JORM-MICR� LA9` CEDAR RAPIDS DES MOINES h I J. !� - - r -Add' " 9 All Electric Utilities shall be constructed or reconstructed in conformance with applicable rules and regulations imposed upon the Grantee or 'ordered by the Federal or State government and the applicable ordinances of The City in effect at the time of the construction or reconstruction. Sioux City (1977). Emergencies --When, in the conduct of fighting a fire, it is deemed necessary by the officer in charge to cut or remove any poles or wires of the Grantee in order to protect persons or property, such wires or poles may be cut or removed without any claim by the Grantee against the City. But in all such cases the fire department shall be deemed to act as the agent of the City and not the agent of the Grantee. Mason City (1961) note: could apply to other emergencies. Extension of Service --The Grantee shall extend its overhead transmission and distribution lines 150 feet for each applicant for light, power or electric current. Mount Vernon (1978). Movement of Buildings --If the movement of any building or property upon or across any streets, avenues, or alleys of the City, and such building or property is of such type or size as to interfere with the transmission or distribution system of the Grantee, the Grantee shall remove such part of its transmission or distribution system as may be necessary to allow the free movement of such buildings; provided the time for such movement through or under said transmission or distribution system shall not exceed five hours; and provided further the Grantee shall not be required to remove or change its transmission or distribution system prior to eight o'clock in the morning nor later than three o'clock in the afternoon. The Grantee shall be given by the City in every such case forty-eight hours written notice of the time and place for such change or removal before being required to comply. In every such ON J I: MICROFILMfD RY JOR M MIC R+CAB - -� CEDAR RAPIDS DES MOINES i I + aa► Id 1 IF, agents of The City to the extent The City is obligated to defend, save harmless and indemnify by law. Sioux City (1977). Renegotiation of Franchise --This franchise shall be effective for a twenty-five (25) year period but the municipality may during the last thirty (30) days of the fifteenth (15th) year review said franchise and if deemed desirable renegotiate the terms thereof which shall upon passage by the municipality and acceptance by the Grantee amend or replace the present franchise. Council Bluffs (1969). Severability --That if any provisions of this Ordinance, or the application of such provision to particular circumstances, shall be held invalid, the remainder of this Ordinance, or the application of such provision to the circumstances other than those as to which it is held invalid, shall not be affected thereby. Fort Madison (1959). The provisions of this franchise shall not be deemed severable and if any part be held invalid the entire franchise shall be deemed invalid. Des Moines (1960). Termination of Franchise --The City Council expressly reserves the right to terminate the franchise granted herein at any time for non-use or a substantial breech of any franchise agreement but there shall be no forfeiture of this franchise without the City first serving notice in writing upon the Company in the same manner as in the service of original notices, specifically setting forth requirements and giving a reasonable time in which to comply with said requirements. Fort Madison (1959). Beneficial Provisions Franchise Fee --There is hereby imposed upon Grantee, and by its acceptance of this franchise it agrees to pay The City a fee equal to two percent (2%) of the gross revenue derived from the sale of electricity made to 25 i 141 CRnF I I.MFn Ry JORM MICRALAB CEDAR RAPIDS • DES MOINES I � a a I --------- - _io J� r'1 consumers within the corporate limits of The City during the term of this franchise in order to compensate The City for the Grantee's use of the streets, alleys and public ways for its poles. overhead wires, underground conduits and other Electric Utilities. The City may, by ordinance adjust the fee imposed upon Grantee from time to time, but in no event shall the fee exceed two percent (2%) of the gross revenue derived from the sale of electricity made to consumers within the corporate limits of The City during the term of this franchise. The Grantee shall certify to The City, in a form acceptable to The City, records establishing such gross revenues for each month and shall pay the franchise fee to The City within thirty (30) days J followingthe 1st da of the y preceding month. Sioux City (1977). Free Electricity --That the Grantee shall furnish to the City, free of charge, electric energy sufficient for the proper lighting of the City - offices, fire stations and other City buildings, as the Council may elect, and iin addition, for air conditioning of eight and one-half (8 1/2) tons capacity installed in City buildings at the date hereof, and for electric energy for i necessary police signals and fire alarms; provided, however, that nothing in this section shall be construed to mean that the Grantee shall provide electric energy, free of charge, for any other purpose other than those specifically set out above for free service. Fort Madison (1959). Right to Purchase --The Grantee, by the acceptance of this Ordinance, i agrees to and does grant unto the City the right, during the fifteenth year of the term of this franchise, to purchase and take over, free and clear of all liens and encumbrances, the entire electrical system of the said Grantee, which may be owned, used and maintained by it in carrying out the terms and conditions of this Ordinance, including all property which shall constitute the electrical system of the said Grantee, whether located within or without 4 26 � sal F mircoFnmr1 RY "JORM -"MICR6LAB " L.� r CEDAR RAPIDS • DES MOINES I 1 a l —y Ili the corporate limits of The City, both at this time and at the time when such ^ right of purchase shall accrue to The City, together with all renewals, improvements, betterments, repairs and additions thereto, and including all I rights and claims of every kind, character and description then owned by the Grantee and used in connection with its electrical system and used or employed in rendering the service required under the provisions of this Ordinance. Such purchase shall be subject to any existing contracts for electricity entered into previously in good faith. In the event said City shall elect to purchase under the provisions of this franchise, it shall serve written notice of its election so to do upon the said Grantee at least six (6) months before the exercise of such option. If at the time of the exercise by The City of such right to purchase the Grantee and The City are able to agree upon the purchase price, then such property shall be transferred to The City upon the J payment of the agreed purchase price; but if the Grantee and The City, at such time, are unable to agree upon such purchase price, then the amount to be paid by The City of Sioux City for said property shall be determined in accordance with the provisions of Section 472.46 to 472.51, both inclusive, Chapter 472, of the 1975 Code of Iowa and all other amendments and substitutions which may be in force in the State of Iowa, at the time of said purchase, provided, however, that in determining said purchase price, the said appraisers or arbitrators appointed under and by virtue of said statutes shall place no value upon the franchise herein granted. Sioux City (1977). Use of Poles --Use of Facilities by City. The Company shall grant to the City, free of expense, joint use of any and all poles and underground electrical facilities owned or controlled by it for any proper municipal purpose to the extent that such use shall not interfere with their use by the Company, and the city shall hold the Company harmless from any and all 27 of a R l 1 I MCPAFMAFn RY f 1. _ JORM -"MIC R+CA B" ] ( I CEDAR RAPIDS • DES M0114ES i /1 l� actions, causes of action or damage caused or accruing directly or indirectly by or through the negligence of the City by the placing of the City's wires or appurtenances upon the poles of the grantee. Proper regard shall be given to all existing safety rules governing contruction and maintenance in effect at the time of construction. Davenport (1969). t { 1 I I I I I .J I i l� actions, causes of action or damage caused or accruing directly or indirectly by or through the negligence of the City by the placing of the City's wires or appurtenances upon the poles of the grantee. Proper regard shall be given to all existing safety rules governing contruction and maintenance in effect at the time of construction. Davenport (1969). t { I I I I i` mironOIt MCn RY �. __-.._1 ... .. DORM" -MIC Rf�L.40�- CEDAR RAPIDS • DES MOINES u. E. r't .7 �y ANALYSIS of oFI'IONS At this point a general analysis of three strategic options is presented: replacement of Iowa—Illinois by another private company; creation of a municipal utility; and renegotiation of the franchise with an eye to the incorporation of a strong set of beneficial provisions and maintenance of city options over the near and mid—future. Each will be discussed in turn. rj Replacement of Iowa—Illinois Since replacement of Iowa—Illinois with another company would be quite difficult to accomplish and entail high transactions costs and few if any benefits, no further attention will be devoted to this option at this time. If the Council would like a full analysis of this option I would be happy to provide one at a later date. '.J r, Creation of a Municipal System Iowa has more municipally—owned electric systems than any other state in the Union. The Des Moines Register early last fall reported that the rates of these municipal systems are, on the average (and taking into consideration differences in property tax payments) approximately 10% lower than for equivalent services provided by the average private utility in Iowa. The ability of municipalities to operate at lower cost is due to a number of factors. 1. Shared administration --Since the city must maintain a city attorney, a city engineer, a finance department, etc., with or without the existence of a mu^icipal utility, the additional costs of handling the work of a municipal electric department would be much lower than those for a private utility which would have to fund such offices just to handle utility matters. (If this seems unreasonable, compare the savings in terms of attorneys, managers, W 1 ulronrn Mrn av iJOR MMIC R�L. A I -CEDAR RAPIDS • DES MDIYES I '... _ J aaq r JV IN O engineers, space, etc., if the city water department were sold to a private company who had to fund all those functions just for the provision of water). 2. Finance --Since the city has access to tax-free bonds its marginal cost of capital is lower than that of any Iowa utility. 3. Goldplating--City department heads don't require and aren't paid salaries anywhere near the salaries paid to utility executives. Neither are country club memberships, private aircraft, business lunches and all the other panoply of large corporations tolerated at the municipal level. 4. Advertising --Municipal utilities have no need to advertise. 5. Overcapitalization --Since municipal utilities are not rate regulated by the Commerce Commission, they are not affected by what economists call the Averch-Johnson Effect* and so tend to have a less costly mix of capital and labor. 6. Small Scale Power Production --A municipal utility would be able to take advantage of local small scale power resources in a way that private non-utility entrepreneurs are unable to do and the major utilities (including Iowa -Illinois) with their large amounts of existing and planne' ^xcess capacity are unwilling to do. For example, the Corps of Engineers rates Coralville Dam at over megawatts of potential power which must be made available to municipal systems on a preferential basis. Both Iowa -Illinois and Continental Hydro have declined to take advantage of this potential (Iowa - Illinois presumably because it has excess capacity with more to come in the future and Continental Hydro presumably becuase it has financing problems). Iowa -Illinois has no interest in the development of cost effective local 7 *Since private utilities are paid a profit under regulation only on their capital investment and not on operating costs (for which they are simply reimbursed), there is strong predilection to overemphasize capital investment / and thus force up rates. 30 � I MIfonrittAPn RY JORM:' MICR+LAB- i CEDAR RAPIDS • DES MOIRES aa. i it ��l n C47 O O supplies of energy because such a policy would exacerbate its problems with excess capacity and debt repayment. 8. Joint Services --Since Iowa -Illinois is only engaged in the provision of electric and gas service, the possibility of many sorts of joint projects are lost to the city compared to what the situation would be if such services were provided by the municipality. For example, the generation of electric power produces a great deal of heat. For Iowa -Illinois this heat is a problem requiring extensive investment in cooling apparatus of various sorts. Compare this to the University's power plant, for example, which not only produces electricity but uses the incidentally produced steam to heat the University (or vice -versa according to your point of view). Two more examples are the city's plan to dispose of sewage sludge by burning it in the University's power plant and, as is currently done in Ames and elsewhere, using refuse otherwise slated for the lan'fill dump as boiler feed, thus converting a problem (refuse) into an asset. (It might be added here that Ames has had some problems with its plant because it was sized so large that not enough refuse is available even when including all surrounding communities.) A final example is the possibility of using digesters both for sewage sludge and refuse to produce methane gas for local heating purposes. There are the advantages, and I believe they are substantial and well documented. I am also willing to argue that in the long run Iowa City would be better off with a city -run utility; basically because there is a greater harmony of interests between a city -owned utility and the energy needs of the community.* *For those who are skeptical of these arguments I recommend a study of Iowa City's Water Department. Up until sometime in the 20s, Iowa City's water supply was in private hands, yet who would sell it now? 31 IA1CAnritmrn AV 1. I" -JORM MICR ¢LAB_ CEDAR RAPIDS • DIES MOMES I I III 1 aa.► JA Though those arguments seem to me to be well taken, financing for such a ry changeover, under current conditions in the bond market, would be prohibitive- ly expensive. Using the approximate figures below, consider Iowa -Illinois' capital structure. IOWA ILLINOIS GAS AND ELECTRIC APPROXIMATE CAPITAL STRUCTURE Category Average Cost Proportion Weighted 1 Longterm Debt 0.0780 0.466 0.036348 Preferred Stock 0.0598 0.033 0.0019734 Preference Stock 0.1058 0.120 0.012698 Equity 0.18 0.381 0.06858 Weighted Return 0.1195 Note that, on the average, debt is only receiving an embedded return of 7.8%. Even when this is melded into a requested rate of return on equity of 18% the result is an average overall rate of return of less than 12% (which in absolute terms is quite high enough, and in fact based.on the 18% ROE, quite extraordinary. On the other hand, it is Iowa City's policy to refuse to issue bonds at any rate over 10%. Considering the market for bonds, it is not possible to sell city bonds for much less than 12% and certainly not less than 10% at this time and probably not at any time in the near future. This would make the acquisition of Iowa -Illinois' capital facilities in Iowa City, valued very approximately by the Iowa Department of Revenue at $20.6 million, unacceptable on its face. Yet this is not the crux of the matter. Iowa -Illinois now provides electric service to Iowa City for a return somewhat less than 12% overall. This is the measure which has to be bettered if a municipal utility 32 r 141CPAF11 MFn RY -- JORM--MICR#LAB- 1 CEDAR RAPIDS • DES M014ES were to be cost effective. Yet the difficulty is that in order to buy out Iowa -Illinois, Iowa City would, in essence, have to "refinance" Iowa -Illinois' capital structure at the City's cost of capital. If this is around 12% (and Iowa -Illinois is likely to have its 18% rate of return on equity disallowed at least in some amount), then the City's cost of capital would be higher than the Ccr-pany's embedded cost of capital. This means that one of the major advantages of a municipal system is being held in abeyance by the current round of record-breaking bond rates. And since the effort to finance the projected series of $100 billion federal deficits for the next few years is likely to keep bond rates at very high levels, it does not look as though acquisition is going to be financially feasible during the period over which these conditions prevail. It should be kept in mind, however, that Iowa -Illinois' heavy construc- tion program and emphasis on (high risk) nuclear power is likely to result in a rapid expansion of long-term debt at high rates. This will mean that over the next several years the Company's embedded long-term rate should rise sub- stantially. If rates were then to fall for tax-exempt bonds, a situation might well occur where acquisition would become financially attractive and result in lower rates. The city should consider this possibility by includ- ing, in the new franchise renegotiation, "option to purchase" or "cancellation option" clauses in order to maintain maximum flexibility in this regard. Franchise Renegotiation Franchise renegotiation is probably the most appropriate of the three options facing the council. The problem can be divided into a consideration of the several categories of provisions within the franchise: power provisions, regulatory provisions, administrative provisions, and beneficial provisions. 33 7aI r 1 ' i M1r..ROF11MFn Ry I "JORM MICR+LAB CEDAR RAPIDS DES MOINES Power Provisions --These are the provisions granting the Company the right to use the streets, the power of eminent domain, etc. I have no specific recommendations at this point other than to emphasize that the power provi- sions are the valuable considerations being conveyed to the Company for which the City can expect something in return in terms of the beneficial provisions. Regulatory Provisions --The regulatory provisions specify the rules under which the Company can make use of the streets, exercise eminent domain, trim trees, etc. Several suggestions are in order in this area: 1. Undergrounding of lines in areas so zoned by the council. 2. Energy audits for all new houses to be charged as part of the hookup fee. Administrative Provision --There were provisions in the last franchise requiring the Company to file a copy of its annual report with the City. These requirements have unfortunately been met only in the breach. The city needs to have better information on the Co pany in order to deal in a more informed manner with both electric and natural gas price increases in the future. The following information ought to be required from the Company: 1. Annual Report to Stockholders 2. Form 1, Annual Report, Electricity (FERC) 3. Form 2, Annual Report, Gas (FERC) 4. Form 5, Monthly Statement of Operating Revenue and Income, Electric (FERC) 5. Form 11, Monthly Statement of Operating Revenue and Income, Gas (FERC) 6. Form 15, Annual Report of Gas Supply (FERC) 7. Form 16, Gas Supply and Requirement Report (FERC) 8. Form 423, Monthly report of cost and quality fuels for electric plant (FERC) 9. Form 3, Typical Monthly Electric Bills (FERC) 34 { 1 IAlf4n G111AGR RY r 1"JORM" MICR+LAB 1 1 I CEDAR RAPIDS •DES MOIYES aaI ti n I 10. IOK. Annual Report (SEC) 11. Prospecti for All Stock Issues 12. A copy of the Company's current rate manual plus updates as they occur. 13. Timely notice of any rate increase requests filed by the Company before either FERC or the LSCC. te ase 14• A copy of the before either the pISCC soraFERC se ndelivered chief rtonthe acity natethe time osed they are served on FERC or ISCC. In the section on Administration the City may also want to include provisions relating to early termination of the franchise, buyout, and renegotiation. The City may also want to have a provision which cancels the entire franchise should the Company be successful in overthrowing before the ISCC or the courts any of the beneficial provisions. Beneficial Provisions --The beneficial provisions pose a particular set of problems. The main difficulty is that any beneficial provision is open to challenge before the ISCC on the grounds that such provision entails "unreas- onable" discrimination. Such an objection has in the past arisen when a utility was "forced" to concede such a beneficial provision in order to obtain franchise renewal and then sought to recoup the situation by having the state commission invalidate the provision on the grounds of illegal discrimination. Iowa City should take precautions in formulating such beneficial provisions to make them more defensible and also should include a provision which cancels the franchise if the ISCC or the courts rule against any subset of provisions (as noted above).* *Such a provision would require the renegotiation of the franchise and stuk with alllitsvbeneficialsprovisions fbut venforceable ing the ywithcrespect atorthe cityaniseseorn of grants to the Company. 35 i 141MA iI MCP AV " JORM MICR6CAB- CEDAR RAPIDS DES I-001 YES a . " J i I 1 I 1 a . " J n L In formulating the beneficial provisions, it is important that they be justified in terms of the property rights being granted by the city (for example the use of the streets). In the case of a provision entailing some benefit to the city which is to be borne by the Company generally, i.e. not charged back to Iowa City customers uniquely, the provision needs to provide some rationale, at least implicitly, for such a recoupment procedure on the part of the Company.* Review of Specific Provisions Franchise Fees --Many cities in Iowa, most notably Sioux City and Des Moines, extract a franchise fee in consideration of their isssuance of the franchise. As discussed above, the Des Moines fee was integrated into Iowa Power's statewide cost structure and recouped through generally increased rates. The revenue in 1979 was in excess of one million dollars. The Sioux City fee, on the other hand, has always been collected through increased rates paid solely by customers within the city. The Sioux City fee is 2% of the Company's gross revenues from its operations within Sioux City.** This generated $676,404 from the electric franchise for the fiscal year ending in July, 1981, and $369,541 in gas franchise revenues for the same period. Given that Sioux City has a population of approximately 85,000, about 35% *The Company's street light offer struck me at first glance as potential— ly involving illegal discrimination, i.e. if the lights are being provided at a cost below that at which they are supplied to other similarly situated cus— tomers, either someone else covers the differential or all other street light customers are being charged excessive rates. If, on the other hand, everyone else enjoys such low rates as a matter of right, then Iowa City should also receive the reduction as a matter of right. Since early franchise renewal has no obvious relationship to lower street light costs to the Company, the basis for the offer is unclear. I would suggest that the City's negotiators subtly inquire as to why discrimination on this matter is "reasonable" with eye toward using the same rationale for other of the beneficial provisions. **It is unclear if it could be levied on IPS' total statewide sales. 36 AXI I utrnnrni urn av ...__ 1 t�-'"JORM -MIC REILAB CEDAR RAPIDS •DES MOIVES ' _�O greater than that of Iowa City, a pro rata adjustment would have Iowa City earning roughly $440,000 on the electric side and $240,000 on the gas side, for a total of approximately $700,000, were the City to adopt a fee on the same terms. Three aspects of this bear thinking about, two political and one economic. The first political issue assumes that the fee would be collected only from Iowa City customers of Iowa -Illinois.* If this were to be the case the franchise fee would be in part an indirect "tax" on Iowa City electric users and in part a "tax" which would be paid by Iowa-Ilinois.** Regardless of the distribution of the payments, however, the salient factor is that Iowa -Illinois will be the proximate collector of the "tax."*** The second political point is that, were the city to earmark some substantial portion of the proceeds to some use which helped either the city or the citizenry to reduce their energy bills in the fu'ure, the fee would be much more palatable. The economic aspect of the problem is that the city should include as a part of the provision a covenant specifying that Iowa -Illinois is to collect the tax in the form of a charge proportional to usage and not as a fixed charge per customer or as a set percentage of the bill, as the former would be exeedingly regressive, and the latter would discriminate against small and residential users.* *In the face of Des Moines v. ISCC no other conclusion is possible. **What proportion of the fee Iowa -Illinois wi 1 be able to pass through to Iowa City customers will depend upon three factors: the price elasticity V of demand, the form of the charge, and the alternatives viable to Iowa City customers. ***I have "tax" in quotes because the franchise fee is in reality a rental charge for the use of city property and not a tax (which would need legislative approval). Refer to Appendix 1 for a full discussion of this point. 37 .. _. --JORM IMICR6LAB-- Lfj I CEDAR RAPIDS • DES MDIRES I I There is also, I might add, the faint possibility of making a case for a n franchise fee to be collected over the utility's entire service area, though I'm not optimistic. If the Council would like further work done in this area I would be happy to do a preliminary study. 0 0 Small Scale Power Production and Cogeneration If, as Chairman Varley of the ISCC estimates, natural gas rates double in the not -too -distant future and the price of electricity continues to climb at its current rate (all indications are that it is going to get worse on an accelerating basis), at some point it might become worthwhile for the city to produce either natural gas, heat, electricity or some combination of the three from local resources in order to offset local energy costs. Under the public Utility Regulatory Policy Act of 1978 the service utility is required to buy excess electricity from such projects at rates "to be determined." The Com- merce Commission has outlined general rules covering the sale of power by non - utilities to utilities. In the case of relatively small amounts of power, the rules simply specify that the Co mission will allow private agreements setting rates to stand unless one party or the other brings a complaint before the Commission. There are several possible areas in which the City might, over the space of the next franchise, become interested in either small scale power production or the conversion of some municipal activity to bring its co- generation potential to bear.* Unfortunately, despite PURPA and other legislation, the Iowa utilities, like their brethren nationwide, have not rushed headlong to encourage local small scale power production and cogeneration. In fact, their response has *I am making a further inquiry into the details of franchise fee collection elsewhere in the state, which should be ready momentarily. 38 i mironrit-mrn nv �- I__JORM "MICR46LA13 CEDAR RAPIDS DES MOINES AW E r it r) G 1 been one of notable recalcitrance and, even when pressed, only grudging acquiescence. In this context, it would seem to be appropriate to set the general terms of a Small Scale Power Production -Cogeneration Agreement now, at the point of maximum leverage, rather than waiting until after the franchise grant when the shoe will be on the other foot. Lights and Other Local Services—In addition to the special price on street lights being offered by Iowa -Illinois, the City should compose a shopping list of similar requests. If such a list were made available I will provide a comparative analysis of how other cities are treated vis-a-vis these specifics in addition to the more general work above. *Appendix 2 presents several articles on recent experiences of other utilities in this area. 39 r t mrRnrumrn RY I DORM-'MICR+LA6 ' CEDAR RAPIDS • DES MOINES ' J ti ir j CONCLUSION n I have discussed these matters briefly with Roger Tinklenberg and at greater length with Ms. Nerenstone. This report is to be considered a general preliminary background study to set the stage for a detailed discussion of options by the City's franchise committee. Once the city's directon has been set I would be happy to recommend specific provisions to the Committee, or pursue further research into these auestions at the ra-mtrroo a aa.� .a 40 miranrnmrn av I� ~ I- '-JORM "MICR#LAB- CEDAR RAPIDS DES MOINES . L I I 1 I i 1 i I.J 1 1 40 miranrnmrn av I� ~ I- '-JORM "MICR#LAB- CEDAR RAPIDS DES MOINES . L I I IF APPENDICES f I. Iowa Model Ordinances --Compensation For the Use of City Property by Public Utilities i II. Articles on Small Scale or Local Power Production i III. "Utility Franchises Reconsidered" IV. City of Des Moines v. ISCC ( ) V. Materials from the 1934-38 franchise renewal controversy --two chronologies, bribery case I I� VI. Copies of Franchises IN i0 10 _:) 41 r M7CCOFn wn RY -`" I JORM--MICR+LAB'- OINCEDAR RAPIDS -DES M '- Jt r. aal j I( i aal it ■ APPENDIX I Iowa Model Ordinances --Compensation For the Use of City Property by Public Utilities i i r i I ' 1 uironrti urn nv " DORM -M 6 ICR#LA' +I ,I CEDAR RAPIDS •DES MDINES f ,J i i I`J i r 1 APPENDIX I Iowa Model Ordinances --Compensation For the Use of City Property by Public Utilities i i r i I ' 1 uironrti urn nv " DORM -M 6 ICR#LA' +I ,I CEDAR RAPIDS •DES MDINES . . 7 y -1 r' iOWA MODEL 0- UPINANJUS . I i i i i • i i i J. g-` t COMPENSATION FOR THE USE OF CITY PROPERTY BY PUBLIC UTILITIES 1 f 1 j i t � . i f 1 i . I , Institute of Public Affairs/The Uriversity of Iowa , In cooperation wit-*, Unlversliy of Iowa I `! League of Iowa Municif alities Division of Municipal Affairs, office for Plonning and Programming OGI 12 1981 i state of Iowa LAW LIBRARY i MIrnnrtl Mrn RV _ _ JORM I CEDAR RAPIDS •DES MDI NES J= �r INTRODUCTION Public utilities generally occupy a substantial. amount of city -owned property. While this is convenient for pub- lic utilities, it can be inconvenient for the public by, among other things, interfering with the proper use of city property. Also, the city has effectively been dis- possessed of that property;1 in other words, the city has been obliged to relinquish some of its property rights. This model ordinance is designed to allow a city to exact some compensation or rental fee in return for per- mitting a public utility to occupy city property. Included- are ncludedare five alternative methods for computing this rental fee. Each alternative has its advantages and disadvantages, so a city should study them carefully before selecting one. Also, although this model ordinance is drafted to cover only elec- tric utilities, it can easily be adapted to cover other types of public utilities. There is no intention to single out electric utilities for extraordinary treatment. Before adopting an ordinance such as this every city should be forewarned. The question of whether cities have the power to demand a rental fee from public utilities is not without some controversy. An effort to answer this question can be made through an analysis of municipal home rule powers. -. Under municipal home rule,2 cities have plenary author- ity over their local affairs and government, except where the exercise of a city power is inconsistent with state law. Also, in order to impose any tax, cities must have a grant of authority from the legislature. it can be argued that an ordinance exacting a rental. fee from public utilities has met these conditions. i ps i First, control and regulation of the use of city property is ostensibly a local affair which comes within the constitu- tional grant of home rule powers. Similar authority has been granted by the legislature. Code, Section 364.12(2) (1979) states in part, "A city is.responsible for the care, supervision, and control of public grounds [and] streets... ' and the city shall keep all public ways, squares, and commons open, in repair, and free from nuisance..."" i once a city's duty and authority to control city !•� property is established, the nexc step is to argue that included in this power is the ability to demand a rental fee in return for permitting a public utility to occupy city property5 In other words, a city which has the power tuunrnrrn Re l_ DORM MICR+LAB I I CEDAR RAI -IDS • DES MD18ES 1 : � _y J 2 I 1 to exercise control over its property should be able to require that a public utility submit to the city's terms ti regarding the occupation of that property. Second, there appear to be no conflicts between this j model ordinance and the City Code of Iowa6 which would cause this ordinance to be invalid. Neither do there appear to be any important conflicts with the statutes governing the Iowa State Commerce Commission, although an argument { can be made that by these statutes the state has pre-empted the entire field of utility regulation, including the ques- tion of charging rental fees. Such an argument does not j seem to be insurmountable.D ' Finally, a strong argument can be made that a fee i such as the one provided in this model ordinance is not a j tax, but rather is in the nature of a rental.9 A tax is "a charge to pay the cost ofgovernment without regard to special benefits conferred.il It can be asserted that the fee contemplated by this ordinance is not "a charge to pay the cost of government," but instead is solely a demand of proprietorship. Also, there are "special benefits con- ferred" upon public utilities, the opportunity to occupy city property. Therefore, a city could probably charge this rental fee without authority from the legislature. j However, cities should heed two important warnings with regard to that conclusion. First, the size of the rental fee could prompt a court to invalidate it. If the i amount of money collected is large the provision might be- gin to look more and more like a measure solely designed to raise revenue,t1 in other words a tax. Also, a large fee might be struck down as unreasonable.12 The second warning is that the method of computing the rental fee might itself prompt a court to construe the provision as a taxing measure. A figure which has no basis in or connection to the amount of city property occupied by the utility might lose its characteristics as a rental and, therefore, actually be a tax not authorized by the legislature.13 Thus, a city is well-advised to carefully tailor its ordinance so that the size and method of computing the rental fee do not tend to make it resemble i a tax. It appears, therefore, that there are strong bases for arguing that this model ordinance meets the criteria for a valid exercise of municipal home rule powers. How- ever, any city contemplating the adoption of an ordinance such as this one would be wise to consider carefully the warnings outlined above. 7 � IA if RO[11 Mfll RY i I_ -JORM MICR#LAS .) CEDAR RAPIDS DES MOIRES as � 1 I I I' _V �r ; A 3 In addition, there are two further caveats, not con- nected with the home rule analysis. First, the Contact Clause of the U.S. Constitution bars states from "impairing the Obligation of Contracts."14 Some courts have decided that where a utility franchise is already in effect the later imposition of a rental fee is an impairment of con- tract.15 However, following the 1930's, the Contract Clause fell into great disuse, until the United States Supreme Court invoked it again in two recent cases.lr, Its applica- tion today is uncertain. Finally, cities should be aware that utilities may pass the cost of a rental fee back to customers within the city by attaching a surcharge to those customers' bills.17 If this is done, the net effect is the same as if the city were directly taxing utility customers within the city. Those consumers would, in effect, be paying the city to allow the utility to use city property. Recognizing this seemingly paradoxical result, a city council may want to think twice before enacting an ordinance such as this. REFERENCES For explanation of abbreviations used in footnotes, see "Abbreviations," page iii. !City of St. Louis v. Western Union Telegraph Co., 148 U.S. 92, 99 (1893). 21owa Const., art. III, sec. 38A. 3See Green v. City of Cascade, 231 N.W. 2d 882, 885 (Iowa 1975): "Street construction and repair...manifestly constitute local affairs, and the (home rule) Amendment gives cities authority to handle such matters." 4see also Code, sec. 364.1 (1979). SCity of St. Louis V. Western Union Telegraph Co., - 148 U.S. 92 (1893), aff'd on rehearing, 149 U.S. 465 (1693); Western Union Telegraph Co. v. City of Richmond. 224 U.S. 160 (1912); City of Alemphis v. Postal Telegraph Cable Co., 145 F. 602 (6th Cir. 1906). Code, chs. 362, 364, 368, 372, 376, 380, 384, 388, 392 (1979) . 7Code, chs. 474-479 (1979). However, where telephone companies are involved there are potential conflicts with Code, section 447.1 (1979). Under that section, companies that built'telephone lines prior to 1897 have perpetual franchises from the state. City of Emmetsburg v. Central Iowa Telephone Co., 250 Iowa 768, 96 N.W. 2d 445 (1959). Because of this legislative grant cities cannot charge a i u,ron_rnurn nv i JORM� MICR#LA13- l CEDAR RAPIDS • DES M014E5 II i 1 I 1 i i 1 A;Q 4 rental fee to such companies. city of Des Moines v. Iowa Telephone Co., 181 Iowa 1282, 162 N.W. 323 (1917). Also, with regard to electric utilities, the statute dealing with assigned areas of service, Code, sections 476.22-.26 (1979), would appear to erect no obstacles, although the extent of 1 its effect is unclear at this time. 6see Code, sec. 364.2(2) (1979): "A city may exercise its general powers subject only to limitations expressly im- posed by a state or city law."; Code, sec. 364.2(3) (1979): "An exercise of a city power is not inconsistent with a stat) law unless it is irreconcilable with the state law." 'City of St. Louis v. Western Union Telegraph Co., 148 U.S. 92, 97 (1893), aff'd on rehearing, 149 U.S. 465 (1893); City of Memphis v. Postal Telegraph Cable Co., 145 F. 602, 606 (6th Cir. 1906). IoNewman v. City of Indianola, 232 N.W. 2d 568, 573 (Iowa 1975). "See City of Des Moines v. Iowa Telephone Co., 181 Iowa 1282, 1310, 126 N.W. 323 (1917) (in dictum the court stated that a fee of $1 per pole and $1 per mile of wire was "clearly a revenue measure"). `City of St. Louis v. Ir'estern Union Telegraph Co., 63 F. 68 (E.D. Mo. 1894), aff'd, 166 U.S. 388 (1897) (fee was much greater than the value of the average adjoining prop- erty). 13A possible example is a fee based on a percentage of gross receipts. See City of Chicago Xeiyhts v. Public Ser - .vice Co., 408 I11. 310, 318, 97 N.E. 2d 268 (1951) (dictum). 14U.S. Const., art. I, sec. 10. ISBoise Artesian Hot & cold Water Co. v. Boise City, 230 U.S. 84 (1913); City of St. Louis v. Western Union Tele- graph Co., 63 F. 68 (E.D. ,Mo. 1894), aff'd,166 U.S. 388 (18 �0 nited States Trust Co. v. New Jersey, 431 U.S. 1 e (1977); Allied Structural steel Co. v. Spannaus, 438 U.S. 234 (1978). 17City of Des Moines v. Iowa State Commerce Commission, 285 N.W. 2d 12 (Iowa 1979). 1 IdifRnFIltArn RY i 1-CEDAR JORM MICR6LAB'RAPIDS • DES MOIVES A C C b n it c t. si w b- b. J ., 1 1 1 I; "t �I 4 rental fee to such companies. city of Des Moines v. Iowa Telephone Co., 181 Iowa 1282, 162 N.W. 323 (1917). Also, with regard to electric utilities, the statute dealing with assigned areas of service, Code, sections 476.22-.26 (1979), would appear to erect no obstacles, although the extent of 1 its effect is unclear at this time. 6see Code, sec. 364.2(2) (1979): "A city may exercise its general powers subject only to limitations expressly im- posed by a state or city law."; Code, sec. 364.2(3) (1979): "An exercise of a city power is not inconsistent with a stat) law unless it is irreconcilable with the state law." 'City of St. Louis v. Western Union Telegraph Co., 148 U.S. 92, 97 (1893), aff'd on rehearing, 149 U.S. 465 (1893); City of Memphis v. Postal Telegraph Cable Co., 145 F. 602, 606 (6th Cir. 1906). IoNewman v. City of Indianola, 232 N.W. 2d 568, 573 (Iowa 1975). "See City of Des Moines v. Iowa Telephone Co., 181 Iowa 1282, 1310, 126 N.W. 323 (1917) (in dictum the court stated that a fee of $1 per pole and $1 per mile of wire was "clearly a revenue measure"). `City of St. Louis v. Ir'estern Union Telegraph Co., 63 F. 68 (E.D. Mo. 1894), aff'd, 166 U.S. 388 (1897) (fee was much greater than the value of the average adjoining prop- erty). 13A possible example is a fee based on a percentage of gross receipts. See City of Chicago Xeiyhts v. Public Ser - .vice Co., 408 I11. 310, 318, 97 N.E. 2d 268 (1951) (dictum). 14U.S. Const., art. I, sec. 10. ISBoise Artesian Hot & cold Water Co. v. Boise City, 230 U.S. 84 (1913); City of St. Louis v. Western Union Tele- graph Co., 63 F. 68 (E.D. ,Mo. 1894), aff'd,166 U.S. 388 (18 �0 nited States Trust Co. v. New Jersey, 431 U.S. 1 e (1977); Allied Structural steel Co. v. Spannaus, 438 U.S. 234 (1978). 17City of Des Moines v. Iowa State Commerce Commission, 285 N.W. 2d 12 (Iowa 1979). 1 IdifRnFIltArn RY i 1-CEDAR JORM MICR6LAB'RAPIDS • DES MOIVES A C C b n it c t. si w b- b. J ., f W : v,W8 ro, AN ORDINANCE REQUIRING ELECTRIC UTILITIES THAT ARL• OCCUPYING with CITY PROPERTY TO COMPENSATE THE CITY FOR THE USE OF THAT 1979),, CITY PROPERTY; AND PRESCRIBING PENALTIES FOR VIOLATIONS. t of !rcise Be It Enacted by the Council of the City Iowa: im- :79): SECTION 1. Purpose. It is the purpose of this ordi- state nance to require Those utilities which are occupy- ing city property with their facilities to compensate the 148 city for the use of that city property. SEC. 2. Scope. The provisions of this ordinance shall apply to all Companies, as defined in section 3 of this ordinance. 1rt e 63 was 1'op- ." of Ser— �tum) . .S. J J L� 5 SEC. 3. Definitions. For the purposes of this ordinance, the following terms, phrases, words, and their derivations shall have the meaning given herein. When not inconsistent with the context, words used in the present tense include the future, words in the plural number include the singular num- ber, and words in the singular number include the plural num- ber. 1. "City" shall mean the City of a municipal corporation of the State of Iowa. 2. "Company" shall mean any individual, partnership, co-op- erative, business association, or corporation owning or opera- ting, within the corporate limits of the City, any facilities for furnishing electricity to the public for compensation. 3. "Council" shall mean the City Council of the City of Iowa. 4. "Facilities" shall mean any overhead or underground electrical transmission or distribution line, along with re- lated equipment and appurtenances. 5. "Person" shall mean an individual, partnership, co-op- erative, association, organization, corporation, or any lawful successor, transferee, or assignee of said individual, partner- ship, co-operative, association, organization, or corporation. 6. "Shall" is mandatory and not merely directory. SEC. 4. Payment to the City.I (Alternative 1). Each Company shall pay to the City an annual rental fee in the amount of $ for each pole or support structure and $ for each feet of distribution or transmission wire or cable, whether overhead or underground, maintained within the corporate limits of thu City. The Company shall i wranru"on av I"JORM - MICR46L AB CEDAR RAPIDS • DES M014ES r'_ aal 11 r - � � 1 G file with the [city clerk],2 on or before of each year, a sworn statement showing the number and location of all poles and support structures maintained and the number of lineal feet and location of all overhead or underground wires or cables maintained. The fee shall be paid to the City, at its [offices],3 on or before of each [year].4 Such payment shall be in addTtF on toto any other payment charges'or fees owed to the City by the Company and shall not be construed as payment in lieu of personal or real property taxes levied by state, county, or local au- thorities.5 (Alternative 2). Each Company shall pay to the City an annual rental fee in an amount equal to the fair rental value of the City property occupied by the Company's facili- ties. This fee shall be $ and may be changed from time to time by the Council. The fee shall be paid to the City, at its [effices],6 on or before of each [year].? Such payment shall be in addition to any other payment charge or fees owed to the City by the Company and shall not be construed as payment in lieu of personal or real property taxes levied by state, county, or local authorities. (Alternative 3.) Each Company shall pay to the City a rental fee in an amount equal to percent of the gross revenues derived by that Company from the distribution and sale of electricity to consumers within the corporate limits of -the City. The fee shall be paid to the City, at its [offices], within days following the last day of each [month].9 At the time the fee is paid, the Company shall also certify to the City, in a form acceptable to the Counci: records establishing such gross revenues for that [month]. Such payment shall be in addition to any other payment charge or fees owed to the City by the Company and shall not be con• strued as payment in lieu of personal or real roperty taxes levied by state, county, or local authorities.5 (Alternative 4). Each Company shall pay to the City a rental fee in an amount equal to $ for each kilowatt- hour of electricity sold by that Company to consumers within the corporate limits of the City. The fee shall be paid to the City, at its [Offices],1' within days following the last day of each [month].12 At the time the fee is paid, tht Company shall also certify to the City, in a form acceptable to the Council, records establishing the kilowatt-hours of electricity sold that [month]. Such payment shall be in addition to any other payment charges or fees owed to the City by the Company and shall not be construed as payment in lieu of personal or real property taxes levied by state, county, or local authorities.) 0_0 r IAfrCOG 11"Cn PV I -JORM MIOR6LAB- 1� CEDAR RAPIDS A DES MOINES 1 cit; ing with shal Road I ther addi by t lies; coup of t impr not or 1 con:. ; val: vise 3 tut_ part i thin' i elft f as and ' Att, For "Ab _y n i o giber 1 and i i .he I 'and i.r :u - .)y �..)y 1 rc a 1 :cili-' ,m time 'ity, 7 ._charge .e ty ty a oss and units each 11 until h1. charge con - taxes i ty a tt- i thin d to yl the -)'the table i of n 1e It in i 7 (Alternative 5.) Each Company shall, at no cost to the City, install, maintain, and provide energy for street light- ing in that portion of its service area which is located within the corporate limits of the City. All street lighting shall conform to the [American National Standard Practice for RoadwayLighting RP -8 (ANSI -D.12.1-1972)] and revisions thereof .14 The provision of street lighting shall be in addition to any payment charges or fees owed to the City by the Company and shall not be construed as payment in lieu of personal or real property taxes levied by state, county, or local authorities.15 SEC. 5. Penalty. Any person violating any provision of this ordinance shall, upon conviction, be subject to imprisonment not exceeding thirty (30) days, or a fine not exceeding $100. SEC. 6. Severability. If,any section, provision, or part of this ordinance shall be adjudged invalid or un- constitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, pro- vision, or part thereof not adjudged invalid or unconsti- tutional. SEC. 7. Ordinances repealed. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. These are:17 SEC. 8. When effective. This ordinance shall be in effect after its final passage, approval, and publication as provided by law.18 Passed by the Council the _ day of , 19_, and approved this _ day of , 19_ Attest: CLERK MAYOR REFERENCES For explanations of abbreviations used in footnotes, see "Abbreviations," page iii. i uvoncn urn nv I`DORM "MICR+LAB- CEDAR RANI DS • DES MDI4ES I 11 412 I I r ti J ti r---------- ---.__--.... _.. __._...._._..-- f ,n vonnl urn av i j, -JORMMIC R#LA-- [?� 1-CEDAR RAPIDS • DES MOIYES B 1 1A city can choose from the five alternative methods = 5 listed in this section. ZAnother city officer could be designated in place of the city clerk. i 3A specific city office could be designated, such as j the city clerk's office. I 4Instead of one yearly payment, it could be split into monthly or quarterly payments. 5An advantage of this alternative is that the method of computing the rental fee has some relationship to the amount of city property occupied by company facilities. 6see footnote 3 above. 7See footnote 4 above. Dsee footnote 3 above. 9In the alternative, the rental fee could be made payable at some other interval, such as at the end of each quarter or at the end of each company billing period. I 16see the text accompanying footnote 13 to the intro- i I duction of this ordinance. lisee footnote 3 above. footnote 9 above. i12See 13See the text accompanying footnote 13 to the intro- duction of this ordinance. 14Any standard suitable to the city could be listed. This standard has been promulgated by the American National' Standards Institute. For the adoption by reference of standard codes see Code, sec. 380.10 (1979) and Iowa Model ordinances, introductory ch. 4, "Incorporation by Reference. L 15The provision of other types of in-kind services could also be included. However, cities should be warned that thi alternative creates a potential conflict with the rate- and service -making authority'granted to the Iowa State Commerce Commission in Code, ch. 476 (1979). "This is the maximum penalty authorized by Code, sec. ' 364.3 (1979). see Iowa Model ordinances, Introductory ch. 3 "Penalty Clause." 17AIl ordinances or parts of ordinances that are repeale i by this ordinance should be listed. see Iowa Model Ordinanc ?..j Introductory ch. 3, "Repealer Clause." I IOSee Iowa Model ordinances, Introductory ch. 4, "Adopti j of an Ordinance." , I 1 t i 't r---------- ---.__--.... _.. __._...._._..-- f ,n vonnl urn av i j, -JORMMIC R#LA-- [?� 1-CEDAR RAPIDS • DES MOIYES I n APPENDIX II Articles on Small Scale or Local Power Production N1PpOC 11 NCO pV JORM-"'MIC R#LAB- _' j11 CEDAR RAPIDS DES MD]MES 1 III I ti i - I 7 j j I .. I i I I e u r BURLINGTJN'S WOOD /l_AD INITE r r I n„ of (hr 10•nnr' units it lhrrlinetnus dloran Generating Staii,ut non• rnrn'rRrd m wood-hwnine Reneralors in 1977 and 1979. Both ,,,el and uvnvl rhipr un• nn bund at the plant einer the third M."It, unit is sill a ( md-fired unit. llurlinebrn ne•rivril .rime approval in .Vepiember r) go ahead mi Ur anuthrr 50-nov mond-burning plum—/oyph C. due.%,til Crnrr "ing Staff ..1. Phmuc by aim Cronin by A A 11 E A N Il E R S 0 N Contributing editor, toutt(•pon'uR, and APPA energy conservation numagcr \ I.I1N(;ShANDIN(; TRADITION of local iudcpcudence. Old-fashioned Yankee ingenuity. Hard -treaded energy eco- nomics. Combine them and you have the ingredients of energy services plan- ning, Burlington, V(. -style. "Backyard generation" is the term ;ted by Burlington Electric Manager not, Young, hilt "backyard" is hardly descriptive of the full range of projects planned by the 76 -year-old Burlington public power system. This fall, financ- ing will start for major projects that ;rill aunount to more than three Boles the utility's current net wort h—includ- mg funds for the largest wood -burning electrical generating facility in the United States, a joint -action hydro project on the nearhv Winooski River, load management and an individual- ized conservation program. rhe 365 million needed for these al- lernadve energy projects was approved last March by local voters by a 70 per- cent margin. When completed, the projects will diversify power supply C t� mix and place Burlington in a good power supply position for more than a decade. Located in northwest Vermont on the eastern shore of Lake Champlain, Burlington has always been conscious of its vulnerability. It Is at tile end of transportation supply networks. Im- ported oil conics in by truck, unit train or barge—when weather permits. Coal is hauled long distances front Ohio and West Virginia. Natural gas is brought down from Canada via pipeline. Costs Impeller) Change The price tends of these imported fuels have been less than reassuring. Five years ago natural gas was avail. able for 40 cents per thousand cubic feet; now the price is $4.60 and the sup. ply is interruptible. The price of No. 2 fuel oil jumped from 12 cents per gal- lon in 1972 to 31.09 in 1981, while the cost of delivered coal increased four. fold over the same period. Burlington Electric's focus cot local i uvonni urn Dv 1 JORM MICROLAB C[mnn RAI, 1DS • DES 6OMES generation stems from the strong feeling that it is [lie only way to get a firm handle on costs. The utility's cur- rent supply mix is approximately one- third hydro from the Power Authority of the State of New York (PASNY); one- third nuclear from Vermont Yankee; one-sixth coal from New Hampshire's Merrimack station; and one-sixth local generation from coal, oil, natural gas and wood. The future supply mix, if all goes as planned, will be onc-quarter wood from the 50 -mw McNeil facility undo way at Intervale, one-quarter hydro from PASNY and the new 10-msv Chase hydro site on the Winooski River, one- quarter nuclear from the Vermont Yankee plant and one-quarter from coal and other sources. A minimum two mw from the con- servadon/load management program will help offset the 4 percent annual growth rate and give Burlington Elec- tric time to get the new projects on line. "The %%hole game plan," said Ed 41 vi.Ill u nna rX November December 19X1 aa( J r Nurse, assistan. g:ncral manager, "is to end up with he right mix of sources. The utility bu.'n:ss of the future is going to require a diverse fuel mix." Norse may make it sound easy, but there is widespread recognition among the utility's top management of the contingencies that must be anticipated. There is concern that the utility might lose all or pan of its PASNY power allo- cation after 1985. The vulnerability of coal-fired generation to rapid increases in freight rales is another worry, as Burlington is a long way from West Virginia and Ohio coal fields. Oil prices are high now and there is fear that cost of Canadian natural gas will track the price of oil. All of these factors convinced Young and his staff they had to investigate inflation -proof energy sources—and the investigation led straight to fuel sources native to Vermont; wood and water. In the fall of 1977 the utility decided to see for itself whether a wood -fuel generation program was feasible. Us- ing its own funds and staff, Burlington Electric converted one of the three coal-fired units at the 30 -mw Moran generating station to burn wood chips. Much of the coal -handling equipment proved suitable for adaptation to wood but some of the specialized needs— ductwork, feeders, augers between the bunkers and the traveling grate boiler chute—were designed and built on-site by Burlingion Electric personnel. The do-it-yourself project was com- pleted in a few months for $25,000— half the budgeted amount. In a matter of weeks power was being produced with a mixture of 75 percent wood chips and 25 percent fuel oil at the low rate of 2.3 cents per kwh.' A second unit was converted soon afterwards. ' The people that put the project to- gether—especially Thomas Carr, Mor- an plant superintendent and the man in charge of the new Intervale project— The Moran conversion program gas' Burlington Electric Department unique opportunity to de -bug the bun: ing wood -process. The staff learne quickly that reliance on wood local. moving into areas previously beyon electric utility experience. They Iearnr how to purchase wood, modify cm; bunkers for conveying wood chips r the furnace, handle wood deliveries I the field and at the station and how i store wood chips. Currently, they at modifying their transport system fo moving the chips from outdoor storag into the converted coal hoppers. A full-time staff forester, Bill Kropc lin, was hired in 1980 to manage the do 'Some of the specialized needs of the wood -fuel plant were designed and buil) on -rile by Burlington Fleclric personnel.' scent less surprised with the success of velopment and monitoring of woo, the project than with the national me- procurement from whole trees, chip dia attention it attracted. NEWSWEEK, and residue from sawmills. There is 111E WALL s'rRer:T JOURNAL, other alit- readily available long-term supply o ities and even the Department of Eli wood within a 50 -mile radius of Burl orgy besieged the small municipal with ington for plants the size of the nes requests fur details. McNeil station in Intervale, it 400 -ace, 1Sce "New Wnud-Fired Getivradllg Unit city -owned lowland area about ou- Miugs Sayings," by Tiuunhy S. Cronin, toile north of downtown Ilurlinglun mau it Pontis, January-Februar , 1978, p. ("Inlervale" is an old New Englmi, 32. term for "bottom land.") Only abou The Win un,hi Rirr•r which ran,' benrretl lhnlir w(ut and I4'ino.,aki will be the rite of the ('herr Atill llydroeleerrir Project, it .vnnll- srale IJ-ntn' hydn, fmilily. Thr twiliry•.,dleady dr,ienrd and opprorrd by the niters, roluirev it hydro license Iran the Federal Enrrgy Itrculntury ('on n;isaiarl before projerl development. 4e1'I. YI I,'n„u, y %......•..... n.,......,..., i,1, r �'M-Yirxti-1+r �i tl'` ri� I.O�i�A4u�.yf ' •vri r god J uironr Tt I urn nv JORM MICR6LAB CEDAR RAPIDS • DES M014ES J _y ,lt acres are needed for the wood plant cool the city hopes to develop the re. maining acreage for -recreational pur- poses. Wood -burning for electric gencra- tion requires only the lowest grade of wood available. The Moran plant uses (and the new Intervale station will use) an otherwise unmarketable grade of timber. The timbering operation in- volves removal of broken and spindly Trees out of the forest. This process of selective thinning of about one-third of the limber permits other trees of higher value to develop to greater market value, or become a fuller stand of larger trees for recreational use. Kropelin said a policy decision was reached early on not to contract with any timbering organization to do clear cutting, as that process is unacceptable in the area. Looking toward the future, Kropelin has established the Burlington Electric "tree -farm family" program. Burling- ton Electric provides on request profes- sional forest management services for Vermont woodland owners with 10 acres or more. The foresters recom- mend sound conservation principles, help landowners find a buyer for mer- chantable forest products (if they want to sell), and guarantee a market for whole -tree chips at Burlington Electric. If a Vermonter elects to sell wood chips n the public power system, Burlington will supervise the harvesting to insure that only undesirable waste wood is removed. The problems encountered since 1977 in burning wood have all been manageable and the utility expects that the McNeil facility will be able to oper- ate with IW percent wood fuel. After the McNeil station is completed in 1984 or thereabouts, the department plans to reconvert the Moran station back to coal, a process that will take only about two weeks per unit. The Moran station is being reno- vated and improved with new stack pre- cipitators and is expected to serve [lie utility many more years. The plant is 30 years old and would normally be ex- pected to have been in the phase-out period by now. Considering the plant's strategic location at the shore of Lake Champlain and the tenure economics Of cualhurniug, the department de- cided it would he more economical to sucich out the expected life of the plant rather than decontni.ssiun it. Some oppose Wood Plant Opposition to construction of the wood -fired facility has come chiefly from the neighboring town of Wi- nooski, whose residents expressed con. cern about transportation of fuel for the plant through their city. Burlington commissioned a traffic study which found the impact of additional traffic would be less than 1 percent, but this has not wholly satisfied the citizens of Winooski. Before the plant could be built, a certificate of public good was needed from the Vermont Public Service Board. The state attorney general's office, in testimony suhnhilled ur the board, concluded that the plant "is not required at present or any time prior to 198'l." The attorney general's report stated that the demand for electricity is increasing more slowly than projected and that the plant is nut needed at present. Questioned on this point, Burlington Electric's public relations chief Tim Cronin said: "We did extensive studies of our own on the supply situation and we just came to totally different con- clusions." He said two contingen. cies—IONS of PASNY power Or delay of baseload electric facilities (mostly nu- clear) in other parts of New Eng- land—"would make this Intervale And move ahead into construction is exactly what Burlington did this fall when the Vermont Public Service Board gave the plant a green light. Joint Hydro Effort The proposed Chase Mill Hydroelec. tric Project on the Winooski River is a joint undertaking of Burlington and Green Mountain Power Corp. The project is currently awaiting a license by the Federal Energy Regulatory Commission (FERC). The long-term economic advantages of the plant are considerable—no fuel cost, relatively low maintenance cost and long life of equipment. A high first cost related to the large amount of construction in. volved is the only disadvantage. The present estimate, based on 1984 dol- lars, is that the plant will produce peaking power at b to 8 cents per kwh. Barring unforeseen delays by FERC, the project could begin generation in 1983. Last March Burlington voters were asked by referendum if they wanted to spend $2 million to improve the energy efficiency in their homes, offices and factories. The town said "yes" and Burlington Electric set in motion plans to finance its conservation and load management program. Half of the $2 million revenue bond issue will provide four energy con. 'IIair of the $2 million revenue bond issue will provide four energy conser- vation devices or applications in homes.' plant look like the greatest bargain since 30 cent -per -gallon gasoline." Environmentalists have expressed concern about depletion of forests and use of wood as fuel for the power plant, considering that Iwo -thirds of all Vermonters use wood for heating in some fashion. Cronin acknowledges that wood for McNeil will in sonic cases compete with the firewood mar- ket, but he does not see any possibility of endangering firewood supply. The price of wood will certainly rise hot that is happening anyway as the cost of competing conventional fuels esca- lales, Cronin said. "There is nothing you can do in terms of power generation that does not have sone kind of effect on some- one or the environment," he .said. "At some point, we must move ahead and stark to develop ahemve fuel sources. 1' ugonrii rnrn av "JORM MICR#LA6 CEDAR RAPIDS •DES t4011tE5 servation devices or applications in homes. Water heating is the major resi- dential electric use in Burlington and the program is aimed at cutting water heating costs by (1) turning down tem. peratures on hot water tanks to 140 F for households with dishwashers and 120 F for homes without dishwashers; (2) installing insulation jackets on water Theaters; and (3) installing flow controllers on sink faucets and shower - heads. The utility will also install gas- kets on electrical outlets to help reduce space heating costs. The other $1 million will pay for a new load management system which will allow Burlington Electric to con- trol system load by selectively turning off wafer Ihcalers during times of peak system demand. The department plans to study several systems and methods of controlling load, looking particu- A! r•um It ",,%I R NOVCm.brr-Derralbrr 1991 a co;,/ 7 _V i J� r n larly at expected maintenance cost'"Il` liability, life span and flexibility or update of equipunenl. Robert Collins, energy management specialist at the utility, said the four conservation measures will be available to all electric customers regardless of whcdner they use electricity for water and space heating. There is no direct cost to customers participating in the program. The utility conservatively es- timates that each customer can save as much as $75 to SI 12 annually through the program. System savings, assuming a mini- mum 20 percent participation rate or a maximum IW percent participation, would range from 1.94 million kwh to 9.7 million kWh annually. In selling the bond issue, Burlington Electric emphasized the program would be totally voluntary and would save customers money. The depart- ment pointed out to customers who had already installed such measures that citywide implementation of the program would mean long-term energy savings to every customer/owner. Sig- nificant savings, voters were reminded, could not be achieved without wide. spread participation and support. The cost of the new capacity for Burlington is about S1,500 per kw; the full conser- %aiion program is equivalent to new generation ;it about $500 per kw. Employees Were Guinea Pigs Before venturing into homes of their customers Burlington conducted a pilot program. The utility commission- ers and employees' homes were wcath- crized in June. The pilot program pro- vided valuable onsite training for the two -person installation teams and en- abled the utility to spot problems with materials, personnel or procedure. "We were lucky to run the program first with our employees," said Collins. "We'd rather make our mis- takes with them .... They're more understanding. ... and they provide very honest feedback." In the scaled -up program Burlington uses six teams of private contractors who work for an hourly rate that in- cludes transportation, tools and labor. The utility supplies materials and uni- forms for crews. As contractors to the utility, the crews are expected to carry their own liability, workers' compensa- tion and auto insurance. Collins has insisted his contractors understand that quality of work is IVh,dr lrrrr fur redured w Inawhlrunkai..r chips which nn• thra hnlrlyd hr toilers fu file v..... 1 -burning phut. more important than number of in- stallations. Still, contractors' familiar- ity with the routine has led to an in- crease in the number of jobs performed each day. The crews are now up to roughly one job every hour. Travel time is minimized because jobs are scheduled close together; Burlington selectively mails promotional materials to just one section of the city al a time. Customers who receive Burlington's invitation to participate in the program arc asked lu fill out it postage -paid cord that provides basic information about their home and weatherizing needs. In- formation is requested on the zi/c of the home, whether there isa dish. washer, whether the respondent owns or rents (if the later, [here is a space for a landlord's signature), the size of the water lank and intensity of the water pressure. %lust customers choose all four conservation applications. After the job is completed contrac- tors leave the homeowner with it letter fro, the utility which asks the Cos - tomer to call if any problems or ques- tinns arise. So far there have been no complaints. Collins is "somewhat disappointed" with the 23 percent response rate the utility had to its first mailing to 3,000 customers. Although 23 percent is as- lonishingly high in terms of normal di- rect mail response rates, Collins had hoped for 40 percent to 50 percent. Summer vacation season accounted for some of the difference, as did the lack of publicity about the program. Re- urronrn urn uv IJORM MICROLAS CEDAR RAPIDS • DES M0I4ES cenlly, however, a local TV station covered the innovative program on its nightly news show and customers im- mediately began calling. One might think that three major projects such as the McNeil wood - burning plant, Chase hydro facility and conservation/ load management program would be more than enough In keep one small city and its municipal utility busy. But the people at Burling - ion 111ceiric are brimming with new ideas. Bob Young is pushing the idea of preheating city water in winter in the Moran plant condenser cycle. The water would slay warm because the city water pipes are deeply buried. Burling- lun officials are also considering a mu- nicipal solid waste plant to generale electricity and/or steam for a district heating system to serve the University of Vermont. The economics seem to favor electric generation because the piping required to bring hot water or steam from the plant -o the university is coolly and prospects for outside fi- nancial assistance are poor. "Energy services" is proba'Ay not the term Burlington Electric Depart- ment would use to describe its innova- tive attempts to meet the growing energy needs of the city by use of n wide variety of supply/demand al- ternadves—some non-traditional— and choosing the most cost-effective. But the end results—an energy -secure and economically healthy commu- nity—is what energy services planning and delivery is all about. * 45 pPpl a POW1.11 ymembef-December 1991 1 r - J _10 •�:... arm:$.. r• ! I _ •r F ar-aI � 1��5: `'.%S .r .�• `—=Ir 7 r t '. r ::.' '•"'"+.{�.H4-fie', 'v diT' ark a I by DON VON RAESFELD SANTA CLARA'S NEW COGENERATION project represents the first lists Of Iwo gas-fired Combustion Cur- project possible. ` accom- plishmeni in our city's to develop bine generators, which combined pro- We have a strong belief than our mil plan its own electric generation facilities. duce 5.8 now of clectricily. II will supply electricity for about 8.000 ity should control generation in unr Dedicated last December, the plant also contributes to the homes. Our peak load currently is 265 City. As a result, our ciiy council was progressive enough to direct this ptoj- national goals of natural resource conservation and mw; the cogeneration project repre- sentsa small beginning step• cc[ so the city becmne the seller or energy independence. We in Santa Clara look at cogeneration as a The walk heat 1'111111 the Itn'biues ste:un, rather that the purchaser of clech'icity from a privately cumn'ucta•d - prime conservation resource. produces 38,000 pounds of steam per project. The term "cogeneration" has been hour, which closely matches the Cali- fornix Paperboard Co. profess. Slip- We use natural gas (with oil as back lip) burned around for many years and defines a process which generates two different plemcmal firing m the two base -load with air, passed through a turbine to generate the electricity.:\ types of energy. Our plant units has been installed to boost steam waste heat recovery boiler raises the generates electricity which is used in our output to 65,000 pounds per hour, sicam. The steam is fed to the papCI- ; electric utility system, and steam for use in the We have made provisions for adding board plant and the electricity gots roccss of the California Paperboard a third gas turbine generator. If and when Ihis addition is nlnde it boost into the city's utility system. Low Kilo. heat is CoPipermaking will perature waste e\hausted up the Plant was under cunslruftilon total plant output to more than 10 if stack, after the useful heat energy 11a, for less than one year. The sant fon• p the dual-1'htid cycle is used, and boost beat esiracted. Ilse base load .steam output to 65,560 the have imestlgaied other fogenci. Von Raesfeld is city manager in .Suns pounds per hour. ;pion possibilities in our conununiq. Clara, Cal. This article isadapredfrom his California Paperboard Co. is one of Owens Conning Fiberglas ;olid allothcr presentation atrhe.aPPAannual conference our older stable industries, Like other paperboard manufacturer, Container in .Sun PrancAvi, in Jurat n•hcrr Santo Clara industries sauce/ed by inti;uion and in. Corp. of America, provide prime received an APPA F.neriov lnnornlor Alward on the basis of its cogeneration creased costs it is energy intensive. Its pros. pects for additional cogeneration units. plant described here. management is progressive mid far. sighted; their cooperation made our \lrhy Wrn this innovation under• taken? The city was convinced thal 36 1-1, m Ir putt r u Nmrmhrr•De.rmher Post rte__..._. ._____.._._ ... .. ..___-.....__ -•.. Ierronruurn ov "-JORMMICRLAB I {j CEDAR RAPIDS •DES MOINES II r .� Steam piper conneet Santo Clarn, Cal.'s new eneenernlion plant (h•/l) with lir f'ali/urnin Paprrhuard Cu. Jnr ...y which re, 4, r.s 3S',000 palurdr ul .vrant per Naar while thr city prudurcr dertrivily for ahem 8,000 homes. cveu with our strong conservation cf- forts there was a need and it potential it, increaw dee efficiency' with which cunventiomd nlm-rencwuble fuel re. sources are uvcd. We had just such :un OppurninitY with California Paper- board in its papermaking processes to Let thad use out of a Biel that was el- rcaJy heing expended in our aunnut- nity. The studies that we had conducted on feasibility indicated that significant cost savings could be realized by both the city and California Paperboard in a cooperative project. Our original feas- ibility study was begun in April 1977 when we contracted for an engineering study by Slinger and Associates, now SAI Engineers, to analyze the technical and financial feasibility of a project jointly with California Paperboard Co. This study proved the feasibility and the city council authorized the staff to continue with the project. The biggest problem we faced was a site location which would be close to California Paperboard so as to mini - mize the cost and assure maximum ef- ficiency. We had several options. One was to locate it on California Pa- perboard's property. This would have posed a significant problem for the company, requiring it to give up val- uable needed space. The other possibility was to look around for available sites. Since this arca of our city is already developed, "virgin" site availability was limited. We ended up acquiring a developed site of slightly more than one acre, in- cluding a 15,000 -plus square feet in. dustrial building, which we now have leased out. In projects such as this one the land costs, even though high, are insignificant in the long run. We spent $480,000 for the land and building to secure the best site. With the site located and the feasi- bility assured, the city staff negotiated a contract with California Paperboard for purchase of process steam that would be generated. Under this con- tract California Paperboard will save approximately 8 percent of its steam costs. In 1978 the city awarded a contract to Burns & Roc Pacific, Inc. for the de- sign of this lirst cogeneration plant III this and future projects. The city has acquired a 10 percent in- terest in a gas development partnership in theSacramento Valley and a 50 per- ccnl interest in another exploration partnership. From two successful wells to date, the city owns approximately 12 Percent of the two million cubic feet of gas required daily for the cogeneration plant. Further development of this field is expected to bring that percent- age up to about 25 percent. In addition, we have first call on another 15 percent to 20 percent from this area. Gas discovered in this Bel- laire field will likely be delivered to Santa Clara at about SI to $1.50 less than PG&E's retail rates per million Btu of energy. That's the good news. The bad news is we drilled our first "dry" hole in another prospect at a cost or about $150,000. Some of the benefits that will accrue from our efforts in natural gas, cogen- eration and other similar projects are: (1) Electric power will be generated at a cost below that of power pur- chased from the private power com- pany in our area; thus, our customers and citizens will benefit from reduced electric rates. (2) The cost of steam purchased by California Paperboard Co. would be less than it would cost them to generate the steam as they have done in the past. 'Municipal oe'ncrship of cogeneration can add benefits by speeding up the process, reducing overall costs and creating a gond atmosphere of cooperation.' the city. Specifications for the major equipment items that had long lead time were completed in February 1979, allowing us to proceed with procure- ment of those items. Acetal construc- tion of the plant began in April 1980 and was largely completed by Decem- bcr 1980. The $3.75 million cost of this project was financed entirely from electric utility revenues. The estimated pay- backperiod for this investment is eight years, based on the proceeds from steam sales to California Paperboard and the reduced cost of electric power that will be generated by the plant. This payback period may be shortened as a result of a new innovative venture, the city -owned natural gas supply for (3) The amount of fossil fuel, nat- ural gas in our case, required to gen. crate this power for the city and steam for California Paperboard Co. would he less than the amount required if each were performed separately, as they h:rve been prior to this pru;ect. ('['his is truly conservation of non-re- newable resources and will serve both local and national goals.) (4) Our city has taken the initial step through this project and that therefore gets us one step closer to en- ergy self-sufficiency and a better ability to control our future destiny. (5) Air pollution will be reduced in thecommunity. (G) The technology and experience uvonn, urn Its, I JORM MICR46LAB CEDAR RAPIDS • DES MOINES I a0,1 I,, 91 r l SANTA CLARA COGENERATION PLANT # I FUEL/AIR EXHAUST THROUGH STACK COMBUSTION CHAMBER NOT gained from this project will provide a foundation upon which other energy- saving cogeneration projects may be planned and installed within our city. (7) Perhaps this completed project can become a model for other utilities to step out on this true conservation experience. In the past, emphasis has been placed on private industry establishing its own cogeneration projects. We in Santa Clara believe that the utility is in the best position to provide the leader- ship and construct and manage the project. By doing this we overcome one TO WASTE HEAT RECOVERY BOILER Of the major impediments to industri- ally owned cogeneration plants, which is the matching of steam demand to electric demand. In our particular case the first project was sized lu match California Paperboard's steam needs. The city utility needs for elect rie energy are far greater than any one Cus- tomer's, so the utility easily absorbs the output of any cogeneration project into its system. In some cases industry will not find it economical fo build cogeneration Plants. On the other hand, the utility can find the cogeneration plant it) he Sarva Clara hoc Inne brra a raulanal frader in applicatiwr uJ new rechnalq@'• Tlrr Santa Clara C"la"Itmlry' Renta/inn Crnh•r u•ac onr nJ I/W &611 11 ...... larpa• bnildinec in th....... 1r1 to be both heated nrnl air "I'dirioned by.udar enrrgy. I•hnm by V;, Nnnvmo / AA'4r 1, I...............__.._......... -"-1P • Nei �. _ � .. 38 149L1C row hN Nmemhcr•Deccmber 19X1 lower in cost than its marginal cosi• and thus economical to build all operate. Municipal utility ownership of cv generation can add benefits by specLi ing up the process, reducing ovcrl costs and creming it good atnosphcr orcooperation. You can also develop, closer relationship between a munici Pelity and its industrial customers. '1'h relatively small size of municipal utili lies affords file polcntinl for personal ized service. The sell' -regulation of . City council or local board or commis Sion can shorten and simplify tilt coordination and the approval process In addition, municipalities mev hn" the ability t) find capital at low•et interest rates, tlfhough cogenerwim. Projects lend themselves to innovative financing approaches. Since our project was conceived rout years ago, the Public Utility Regula tory Policies Act (PURPA) came into being. Its intent was to improve incen. lives for industrial cogeneration and take away some of the advantages I have cited. I truly believe that it is :f step in fife wrong direction; while it may speed construction of cogencra lion in the industrial sector in my judgment it will cost our consumers far more in the long term. Had utilities aggressively pursued cogeneration in the model that we have the regulatory approach to produce greater private incentives and a long• term increased Cost Ir customers proh- ably would never have come about. Maybe we can turn this around and again develop these projects for con. servation in a manner which will ulli- mately stabilize and even reduce our customers' energy costs. Barry Flynn. our director of electric utilities, and his staff have a great deal of knowledec Than thevare more (hall willing ill share with interested patties in file hope tit spreading this type of conservation el' - rot. 1(111.1.I(S.ssu M.SOC. INC. INDEPENDENT FINANCIAL SPECIALISTS Longterm capital Imancin0 for utfules urnnnr n urn a. i JORM VMICR�CAB" CEDAR RAPIDS •DES MDI;JES I 507 Marquette Avenue Mlnne.1pnlis, Mlnnnsola rc5.102 tuluphone: 1612)909.8291 aa/ 1 J r r public IMAGINATIVE. VERSATILE, ADAPTIVE these words describe the public power innovators Of 1981. The 609 in- novative activities among these locally owned utilities—more than double those reported last year—have estab- lished a new peak. These innovations are a reflection not only of the imagination and initia- tive of people associated with local public power systems; they are also an indication of the ability of public power employees to respond with new ideas and techniques to the challenge of fast -changing conditions in energy supply and use. This second annual listing of public power innovations (see also the May - June 1980 issue of PUBLIC POWER) is an impressive demonstration of lite broad scope of creative energy-related ser- vices that can be provided through local ownership of utilities. An asterisk (•) denotes winners of APPA's Energy Innovator Award at the 1981 annual conference, the theme of which was "Public Power, Innovator of the 1980s." The first listing of public power in- novations more than a yea., ago at- tracted wide interest both in the United States and abroad. This new listing also should be of great benefit in dem- onstrating the wide variety of innova- tive responses to the current energy sit- uation, and in providing a guide to others as to the type of new energy pro- grams that might be undertaken. Although every effort has been made to provide as cnmprehcnsive a listing of innovations as possible, there arc undoubtedly omissions. If your util- ity's innovations are not included, or if you have questions or amendments to this list, please tell me or Eric Leber, director of APPA'S energy research and DEED (Demonstration of EnergyEffi- dent Developments) programs. APPA is indebted to him for his imaginative contributions to the development of energy-efficient and cost-effective pro- grams, and to him and Jacquic Cuch- ran for compiling this list. Alex Radin, executive director American Public Power Associatior 14 eusticro%'ra Nosember-Decemtnt 1981 r, power solar energy Healing and Cooling PLATTE RIVER POWER AUTHORITY, Port Collins, Colo., has designed, built and is monitoring performance of a combined active solar and computer-generated heat reclamation system used to help heat the authority's headquarters. A computer-assisted data logging system will begin monitoring next spring. This project is funded by APPA's DEED (Demonstration of Energy -Efficient Developments) program. Bill Emslie. 101/226-4000. Reject dquarterrr nn air-conditioned Fort Collins. Colo..tsupplements Ire solaPlatte r heat captured by the panels. uy SACRAMENTO. CAL., gave its first "Certified Passive Solar Home Award" to Jim Strong, a Sacramento builder who designed and built a passive solar home that exceeds the Sacramento municipal utility's standards. The standards set by Sacramento call for at least a 50 percent reduction in heating and coaling requirements and a 10 percent reduction in peak -cooling de. man compared to conventional homes. En- couragiug energy conservation Ihruugh use of improved design in new residential construction is the goal or Sacramento's passive solar home PALO ALTO, CAL., has seven solar heating and cooling projects. They are: (1) solar hot line. telephuue consultation service for utility customers to learn more about solar energy (technical and general information), its prac- tical use in Palo Alto, and utility services available; (2) low-interest 8 percent loan pro- gram (March 1981) to help city residents over- come high initial coq or a solar system, which may finance as many as 1,500 solar systems by 1985: (1) solar classes—evening courses to teach design and purchase of a solar system; (4) rate incentive—lo percent discount on elec- j, i uronri, urn ov JORM MICRbLAB CEDAR RAPIDS • DES 1401NES program, where participating builders receive free computer analysis and review of home designs to Identify energy-saving opportunities. Builders who qualify receive awards for their cnergy-efficient designs and earn the right to promote this distinction. Sacramento also established a clearinghouse for distribution of solar and conservation -related information, and has undertaken a water heating, as well as a space cowling, demonstration in the city. William Walbridge, 916/452.1211. Eric bills of residents with eligible solar systems; (5) solar building plan review by the utility; (6) solar dculonslmtinm—city swimming Pool nod golf course clubhouse arc used to demonstrate the practicality of solar energy; and (7) solar fact sheets—available at various city facilities, The program goal is the use of solar energy by 10 percent of the utility's customers within rive years, Palo Alto alsn hopes to modify utility rides and city rcgularinns to encourage ap- propriate uses of solar energy. Rick McClure, 4 5/729.2417.• t� I J _w r innovation NLAPILE. w'Asu., participated in a dcmumtra- thin project to install and monitor the per- formance of a solar space- and water -heating system using both active and passive features installed in a local children's clinic. Consultant studies are under way to determine siting Potential for solar power plants in the Bon. neville Power Administration UIPAI service area and to determine potential sites for solar in. stallations in the city. Several monitoring pro- grams are assessing the performance of solar water -healing systems. Joseph Recchi, 206/625.3000. SPRINGFIELD, ILL, completed a solar home design competition in September 1981. The winning plan, developed by Ferry & Henderson Architects, could reduce utility bills by 5400 to 5600 a year. The Illinois Institute of Natural Resources is helping Springfield finance con. struction and monitoring of the building, which will cost an estimated S82d100 to build. The home, which will be sold after two years of monitoring, will demonstrate passive solar con- struction techniques and be used to check per. formance of such homes in central Illinois. Paul Bonansinga, 217/789-2060. SANTA CLARA. CAI.., has installed a closed-loop central hot water heating system in a newly built 28 -unit townhouse development. The .y,len4 31 square feet of solar cullcuros and 2,1100 gallons of storage, preheats and reheats water in the closed loop. The city also uses solar energy In heat and cool a municipally owned recreation center and heat three city swimming pools. Robin Saunders, 408/984.3183.• RISSISIMEg.I I.A., is rebating to customers 20 percent of the cost of approved solar and other Cotnervalioll measure, In residential and com. mercial buildings. Solar items approved for „j rebates include water and swimming pool heaters. Bob Miller, 305/847.2821. Cl, COUNTY PLO, Vancouver, Wash., is giv. ing solar awards for designs of residential buildings that incorporate passive solar design standards for part of the space healing te- .VI quirements. Craig McCollom, 206/699.3358, IR)NNEVILLE POW1114 ADMINISTRATION, Portland, Orr„ in cooperation with several public utilities, is investing between SI million and S2.5 million in several hundred domestic solar water heating systems and their evaluation. IIPA J has Constructed a novel energy system at its Ross substation In Vancouver, Wash. The system uses solar energy to drive an absorption chiller to air-condition the building in the sum. mer and obtains waste heat from a power transformer to heat the building in the winter. Mary Lawrence, 503/234.3361, SALT RIVER PRUIECT, PhocnlA, Ariz., is one of four participants in a solar water heating assessment program evaluating performance of various solar water heating systems on the market. Jim Grady, 602/273.5578. Salt River Project also has two APPA -assisted demonstra. tion installations of a solar Rankine air condi. tioning system. One is a three -ton residential - size system which was installed on a model home in July 1981. The other is a 50 -ton commercial -size system which consists of two ""on chillers, each powered by a turbine in tandem with a motor -generator which chives a four -cylinder compressor. Their main purpose is cooling, but these Rankine systems can also Perform some heating and generale power for feedback into the grid system. Graydon Peoples, 602/273.2868. A three -ton Rankine unit, assisted by solar rollrriors on the rnnf of this model home in Chandler. Ariz., provides.sparr heating and di n fulic hue water and—when cooling isn't needed —produces electricity, Salt River Project began testing the unit fit August. LOS ANGELES, CAL., is providing interest-free loans to residential customers who augment their electric water heaters with solar water heaters. Los Angeles is monitoring and record. ing solar and microclimatic data in six loca. tions within the city to ascertain how much solar energy is available and the performance of solar systems. Los Angeles also is par. ticipating in a project to design, construct and operate a 10 -mw plot solar -thermal power plant at Daggett, Cal. A 100 -acre field of sun. tracking heliosmis will focus the sun's rays on an elevated beat exchanger to produce steam and drive a conventional lurbine-gencrator unit. Melvin Frankel, 213/4914104, NASIIVILLE, TITIN, has constructed and made available to 1=1 cilirens an energy efficient technology demonstration home which includes both solar and wind systems, Paul Hembree, 615/747.3831.• ANCIIll ONAGE, ALASKA, received funding from nrA for installation and dcmonsration of an active solar domestic water heater in the municipal public works building, Thonsas Stahl, 907/279.7671. II Mlfanrilnrn ay JORM MICR6LA9 CEDAR RAPIDS • DES MOINES MEMPIUS, TENN.. has installed 1,000 solar water heaters financed by TVA low-interest loans in local residences. Memphis is also conducting solar surveys in its customers' homes. Solar retrofits are also financed (up to $3,400) by TVA. Paul Harris, 901/528.4748. COLORADO SPRINGS, COLO., Is Involved with a project it calls the "Phoenix of Colorado Springs." This project is a demonstration of solar-OPlimized heal Pump heating in a single family residence, James Phillips, 303/636.5388, OMAHA PUBLIC POWER DISTRICT, Omaha, Neb.. uses a "Solar Pathfinder" to measure the percentage of available sunlight at a customer's home, which enables auditors to diagram solar access for a given location. It provides a "prime solar fraction" which shows the average annual fraction of solar energy available. Lloyd Keller, 402/5364000, TENNESSEE VALLEY AUTHORITY, Knoxville, Tenn., is involved in a large-scale demonstra. tion program to determine the suitability of both active and passive solar units on residen. 15 PURLICPOw'F.R November-December1981 J r O tial and commercial buildings. There is Its. an incentive program to support the installation of solar units on some 6,000 homes. Mike High, 615/755-6848. MADISON, S.O., is involved with a program using solar energy to dry grain. Virgil Schaller], 605/2564872. LINCOLN, NEB., is involved with the demonstra. tion of solar -assisted heat pumps for heating purposes, as well as an investigation of thermal storage to extend the capabilities of solar in the region. Tom Arkfeld, 402/475-4211. Solar Thermal Electric IAS ANUELLS, CAL., plans to design, construct and operate a demonstration solar power plant at Owens Lake about 200 miles north of Los .Angeles. The 210 -kw project would be a cooperative venture of the Los Angeles Depart. ment of Water and Power, California State Lands Commission, and Inyo County to generate electricity using the sun's heat col. lected by a saline 15 -acre pond. If the project receives final approval, it would be the first one of its kind in the United States. Smaller plants have been built at the Dead Sea and Yavnc in Israel. Melvin Frankel, 213/481-4104. SALT RIVER PROJECT, Phoenix. Ariz.. served as utility consultant on the design of a I00 -mw combination solar and fossil generating station. Wind Power THE CALIFORNIA DEPARTMENT OF WATER RESOURCES, Sacramento, Cal., has completed a 50 -kw wind -powered generator installation near San Luis Dam about 70 miles from San Flan. cisco. The goal is to have 100 mw of wind• powered generating capacity in the system by the year 2000. Frank Hahn, 916/445-,6117. BONNEVILLE POWER AUTHORITY. Portland, Ore., is funding wind research by Oregon State University to continue BPA's search for areas in the Northwest which could Support wind energy farms. Seven sites already identified by the university since it began wind energy he in 1976 could produce about 1.000 mw of power. Mike Berger, 503/234.3361, cal. 5326. EUGENE, ORE., with partial funding from APPA, is testing the salue, reliability, costs and impact on the utility system of a 501 (or greater) Darrieus-type vertical axis wind turbine (VAWT). The VAWT responds to wind from any direction, needs no feathering device to keep it from producing more power than the rated capacity of its generator and does not re- quire a complex tower structure because generating equipment is placed at ground locl. Participants in the project (all in Oregon) in. CIUde: CANBY. EUGENE, CENTRAL. LINCOLN PL'D. I A ISKANII 1-111). MAIN, NOM 1111 MF %ASI n COUNTY PW. 11LLAMOUK PUU. ASHLAND, HANLON, FOREST GROVE, MCMINNVILLP.. SULTON.1'RLF WATER, SPMIN14 tI D and COm1.Curry MCCIriC Cooperative. Ken Rinard (Eugene) 503/ 484.2411. 16 Puns it Puw nx Novrnlbcl December 1981 TACOMA. WASH., has installed an active solar thermal water heating system in its Bicentennial Pavillion. Art Herstrom, 206/593-8318. NORWICH. CONN., is assessing economic feasibili- ty of renting solar water heaters to residents. Richard E. Dorochcs, 203/887.2555. GAINISVILLE, FLA., has Installed a solar heating and cooling system on its airport terminal building, making it the nation's first solar - powered air terminal. Jerry Sealy, 904/374.2176. sap is presently serving on the utility advisory boards of two proposed solar repowering proj. ects. They involve adding a solar energy coffee. lion system to tet existing power plans which presently burns oil or gas so that daytime power production can be enhanced with solar energy. Richard Durning, 602/273.5394. AUSTIN. TEXAS; SEATTLE. W'ASIL; BPA and IB other electric systems have formed a con. sortium to assist and assess an adva h • d s lar - querque, N.M. Public Service Co. of New Mexico will be lead utility in the project. The plant will use air, rather than water, as the heat transfer fluid. Operation of the experiment is scheduled to begin by mid -1982. John Digger (EPRI), 415/855.2178. BRIDGEPORT. TEXAS, is considering the addition of solar electric generation to its grid. Herman Harwood, 817/683.2275. nURKE. S.O.; CHENEY. WASH.: USAGE COY. KAN.: AND WICKENBURG. AM. are Involved In the Department of Energy (DoE) experimental small community solar thermal electric power generating project. The overall program plans to develop and test a modular parabolic dish solar system for small electric power applim- lions. When developed, each mudule will pro- duce approximately 20 kw of electricity, per- mitting small communities or utilities to select the appropriate number ill' modules and add to them incrementally to meet their growing ncctIS for electricity. PARMINOTIIN. NAI; VINELAND. N.J.: NEW SMYRNA BEACH. FIA. and members of the KANSAS MUNICIPAL unLITIPC were miners among applicants for participation in this pro. gram. George Dennis (xns. Albuquerque, N.M.), 505/844-6938. I ee o thermal power generation experiment funded EASTON. MD. and SEBRING. FLA.. have been IIP by the Electric Power Research Institute. The volved with General Electric Co. and DOE in project will demonstrate a hybrid system that will generate electricity from solar energy when the sun is shining and from fossil fuels during cloudy periods. The lest will be conducted at IX)F's Central Receiver Test Facility near Albu- specifying an optimum solar system for im. proving the performance of an electric generator. William Corkran, 301/112'_•6110 (Easton) and James Phillips. 813/395.0191 (Sebring). PUERTO RICO ELECTRIC POWER AUTHORITY. San Juan, P.R., is participating with not: in a demonstration of a wind turbine in the 200•kw MEADE,KAN., SEATTLE, WASH.and LINCOLN.N. EBrave Alb B V 809/7+—I were among 18 localities selected last year by the Department of Energy to test wind energy equipment. Douglas Fisher (Meade), 316/873-2091; Joseph Rccchi (Seattle), 206/625.3000; Tom Arkfeld, 402/475.4211 (Lincoln). PLA 1'I F RIVER I'll WIiit AU r1ORI rY, ('ort Collins, Colo., is evaluating several sites for a wind power unit to produce hydrogen. Bill Emslie. 1100 303/226.4. TRbSTATECATASSOCIATION. Denver, Colo., will, a grant from APPA, is studying the economic potential of wind as a resource for electric power production. Clarence Coyn, 303/452-6111. NEBRASKA PUBLIC POWER DISTRICT. Columbus. Neb., is helping gather local wind data to aid in turbine siting. Byrne Gross, 402/563.5539. POW'FR AU111ORITY OI' TILE STATE OF NEW YORK IPASN1Ihm selected seven sites from a group of 40 previously surveyed which will be evaluated for three months to determine which qualifies as the lui1IIc site for PANNY'S first wind. Powered generator. Average wind speed at each of the sites ranges from 11 to 20 mph; the sludics will esliluafc Imng leu] wind speed averages. John Dyson, 212/397-62(X). SANIA1 I AM 1. 1'At , le Plaolllllg a wllld 111111DIC energy Project in the nearby coastal mountain range. Dennis Dudrik. 40N/984.1044.' g . crlo runo ega, .$ 23... KANSAS MUNICIPAL. UTILITHIS, McPherson. Kan.. and its members have supported a detailed in- vestigation of the wind resource potential in the stale. Louis Stroup, Jr., 316/241.1423. PRINCFTON. MAce., is completing a wind energy survey with the hope of Installing and operating a 500 -kw generating system. Richard F. Wheeler, 617/464--2815. LIS ANGELES. CAL., is proceeding with plans In determine Mlitahlc sites fur wind•powecd generation installations in and near the mown. ]moots areas of southern California. Melvin Frankel, 213/481.4104. LINCOLN, NEB., has secured a small wind energy system and interconnected it with the municipal electric distribution system. Tom Arkfeld, 402/475.4211. W'ASHINU I TIN I10IIL1C PUWER SUPPLY SYSTLAI, Richland, Wash. is evaluating the potential for willing wind power to its generation base in e:Nlcro Washington. Via Julmmun, 509/3753000. q INIRAI NI IIRASK A 1'11111 W 1111"1 R AND IRRIGA I umN DIAIRu'L Iloldrege. Neb., ham been mnniroring the wind condition at Ringsley Dam .IIIc' 1976 under a atom rlel wish Isis .'I lie fill' I% being cumidered for placement of an ex. perimental wind turbine generator. E. L, Monition, 1011/995:9IAI. r' 1 MIf.ROFII141'0 RY IJORM MICR46LAO I CEDAR RAPIDS r DES MOINES _V f SALT RIVER PROIECr, Phoenix, Ariz.. Is 'Jare feel of roof area of a 1,500 Square fool, r Pholovollaies demonstrating a residential system connected to .tree -bedroom unoccupied model home in ' its electrical grid and capable of meeting the Phoenix. It also uses photovoltaic power to needs of the residence and feeding back excess operate a small, deep well which could be ap• SM RAntPNTo. cot.., has submitted a proposal to Power to the system. This installation consists plicable to remote locations not .served by a of 7,200 four -inch -diameter single-crynal DUE which would result In construction of a power grid system. Graydon Pcoples• silicon photovoltaic cells mounted on 1,010 602/273-2868. IW -mw solar photovoltaic power plant. The entire plant would be built over a 12 -year The Salt River Pro g g Project, Phoenix, Ariz., has installed and is testis a rid -connected period but the first megawatt would become residential solar photovoltaic generating system. operational 18 months after the project is ap- proved. A 1.100 -acre site adjacent to Sacramento's Rancho Seco nuclear power plant %add (souse the solar facility. Sacramento is seeking state and federal funding to aid in '''":✓ financing the world's first commercial -size �I �a-•,{:"-,.ri„•$' Hrlar photovoltaic pow'e'r plate[. William ^ ��,�^'�':;�N,^,+• Walbridge, 916/452.3211. ��+�,. a n _ snsr.A c1.Axn, CAL., is seeking federal assistance ' - fora large-scale Photovoltaic demonstration at _ \ •.,�� is nnnuuutily Icereation center. Barry Flynn. 4031984.3161., ilY :;>^ .� - �_ '-- ,-'moi : vrzc : ry _ _ � : ern• aJ - -. \tl-Mt, mu. ha, participated In a fe'de'ral demonstration of the use of photovoltaics in an I - irrigation system. Clifford Hayford, +1x1 n F. %ASIL, in conjunction with the city's_ 1411, for An” program, has undertaken a • -tt photovoltaic demonstration project. Solar cells i- _ help power a neon artwork installed on the � • roof of the City Light Building. Joseph Recchl "i,l?>. 21Hr/tv$•JIXNi, I •?-1.4?i: Nr , I LAVION• N.M., is participating in the federal wind demonstration program with a turbine. Low -Head Hydroelectric pistoled heluw in Ihe20Nkkw range. Manson Vd. , mondson, 505/374-2711. Its NIASSAC'II(ISIZ"S xIIINII'II'Al. WHO( L\AI 1: 111ll'IRIC' co., Ludlow, plass., has begun licensing pro. cedures and preliminary engineering on three hydroelectric projects in Massachusells and Cunneclicul. SOIwi c is negolialing with the Windsor Lt%ks Canal Co. Toward the devclOp. mem of a 3 -mw hydroelectric facility oil the canal in Windsor Locks, Conn. The joint ac• tion agency is working with Ills Connecticut Municipal Electric Energy Cooperative on this project and on plans to construct a 50 -mw facility on The Connecticut River at Warehouse Point, just uPsOcann front the canal. sisio rc has also begun licensing procedures and preliminary engineering on a hydroelectric site on The Deerfield River in Massachusetts. The Proposed facility would include an I I -mw powerhouse and dam. Negotimlow toward development agreements are also progressing for hydro sites on the Merrimack River. A facility in Lowell, plass. could produce 23 mw of Power and another in Moore's Falls, N.H., could produce 21 mw. Caren Piemonte. 413/589.0801. SEATTLE AND TACOMA, WASIL, will share equally the Power output of six small hydroelectric Plants to be developed on The Columhin Riva irrigation system, the first of which was dedicated In August 1981. The Russell D. Smith Power Plain, with a capacity of 6,101 kw, is the first hydro Project built on an irriga• tion system in Washington since the 1940s. Joseph Recchi (Seattle), 206/625.7005, s•; Janes Thompson (Tacoma). 2051593.8203. Atronr 11 urn nY JORM MICR41LAB CEDAR RAPIDS • DES MOINES Seven Public power syuems obtained separate Icdcrul permits in Nay 1981 to study The feasibility of hydroelectric Projects. They in. CIndC: M(1HLSN), CAL., IRRIGATION DISTRICT: NASSAC I II'll:11% SHIN( 11•Al. w IVATSAI.h ELECTRIC i U, Ludlow, \lass. INudying 2 pnsjccisll'AR. MINWON, N.M; LNDIU111, N.Y: 11RAr.US RIVER AIII1101111%. Waco, Texas: \IASIINCO PUUNO. I. WASH: and IIID Nu. 101 I'I Irl AN ((tl IN I V. W ASH. In addition, the (own of Vidalia. La., has ap. plied to ITRc for a license for the 86 -mw Old River Hydroelectric Irn!Iccl whist, "mild he located near the Army Corps of Engineers Old River C'omrol Structure on the Mississippi River. Antic Nlarie Gibbons (APPA). 202/775.8300. C'IIIA.AN COUNTY PUO rh Wenatchee, Wash., Is studying The application of small bulk -type for. bines in the range or 2,001 kw for the Tum• water and Dryden Hydroelectric Projects or. the Wenatchee River. The estimated capacity for hydro generation at each of these facilities is four mw. Portions of The existing structure would be reconstructed in order to add the new facilities. Wayne Stewart, 509/663-8121. LMLRALD VLOI'LLS' UTILIT Y DIST MCI, Pleasant Hill, Ore., with partial funding from APPA is studying 80 possible small-scale hydro sites. The favorable sites, with equipment and elec. trical generating potential, will be combined in. to a distributed micro -hydro generation grid plan. Enid Smith, 503/746.1583, or 746.5774. 17 IT,IU 0 Pox 1. R Novcmbcr-Deccntber 1981 1 J r CENTRAL NEBRASKA PUBLIC POWER AND IRRIGA- TION DISTRICT, Holdrege, Neb., has developed the Kingsley Hydroelectric Project, a 50 -mw plant with a 120 -foot head near Ogallala, Neb. The dam was built for storage of irrigation water but increasing fossil fuel costs made generation economically feasible. Through tem• porary storage of water in Lake Ogallala downstream, load following and peaking operations of the hydro plant will be possible. Richard Dirmeyer, 308/995.8601. THE CALIFORNIA DEPARTMENT OF WATER RESOURCES, Sacramento, Cal., is studying the feasibility and cost effectiveness of equipping existing dams and hydraulic structures in California with electrical power generating facilities. Ed Herhaar, 916/445-6687. MARTINSVILLE. VA., is involved in development of a hydro facility to serve the city and the sur• rounding areas. Robert Corckin• 703/638.3971. GONZALES, TEXAS, has received S2 million from DoE to aid in construction of generating facilities at a dam on the Guadalupe River. Carlos Smith, 512/672-2815. IDAHO FALLS, IDAHO, is redeveloping three tow- head hydroelectric sites on the Snake River. Expected to be completed in 1982, the project will increase local generation capabilities from 5 percent to 30 percent. Steve Harrison, 208/529.1430, PATERSON. N.J., will obtain 7.5 -mw Of electricity through a $9 million rehabilitation of its hydroelectric plant on the Great Falls of the Passaic River. Citizen interest is high in the $2 million in bonds which the city plans to sell in S500 denominations. George Tuttle. 201/881.3380. GLASGOW, Ky.. has received a preliminary per- mit from the Federal Energy Regulatory Com- mission for a feasibility study of low -head hydro at Barren River Dam, and has applied for permits on Nolan River Data, Green River Dam and Rough River Dam. All four dams, built by the Corps of Engineers, are within 50 miles of Glasgow. Paul White, 502/651.8341. LOS ANGELES, CAL., has a task force of engineers who are assessing the feasibility of • building small hydroelectric energy recovery plants at various sites on the city water system. Melvin Frankel, 213/481.4104, SEWAR:, ALASKA. is exploring the possibility of reducing its dependence on purchased power by installing a low -head hydro plant at the city's water works. Clarence Johnson, 907/224.5215. PETEMBURG, ALASKA. has received a SI.2 million federal grant to aid in construction of a dam on City Creek on Mitkof Island. William Mearig, 907/772.4203. NEBIUSJKA MUNICIPAL. POWER PWD., Lincoln. Neb.. is looking at a series of seven dams along A 65 -mile $trach of the Big Blue River, all of which would be equipped with upgraded hydroelectric facilities. 11 is projected that this would add an estimated J.2 -mw of low-cost capacity to the pool. Sine Wacker, 402/4744159. IS Put LICPOWER NOsenrber-Dccem6a 1991 CARLYLE, ILL., Will install a new eight -mw low- head hydro facility at the reservoir dam on the ktvtl!ij:�l;::C Kaskaskia River. Carlyle received S7.8 million Ir'/rile 1 " �.yrl from DoE to assist in this project. Edward D �j ' Klcber, 618/594.3321. ! �v✓ PUERTO RICO ELECTRIC B'OW'ER AUTHOR I it. San ( Juan, P.R., is studying feasibility of using 1. , power from the Patillas Reservoir to reduce its dependence on imported oil. Alberto Bruno -•.y,. v'• "W'Sk;I Vega, 8139/725-4232. _ .,a�T,.y ..� V. - CONNECTICUT MUNICIPAL ELECTRIC ENERGY COOPERATIvE, Groton, Conn., is participating in a joint feasibility study with Massachusetts municipals for construction of a 50 -mw to 75. mw hydroelectric power plant in the Enfield Windsor Locks area on the Connecticut River. The cooperative and the Norwich, Conn., municipal utility received preliminary approval of a $50,000 DoE loan for studying the redevelopment of a small low -head hydro facility at existing sites on the Yanlie River in Norwich, Conn. A similar DOE loan application is pending for another hydra site at Ashland Pond in Jewett City. Walter Truitt, Jr., 203/446-0624. SALT RIVER PROJECT, Phoenix, Ariz., is install. ing a 1,400•kw, 35 -fool small-scale hydroclec- Iric plant on one of its irrigation canah. This is one of seven DUE hydroelectric demonstration projects. This South Consolidated Hydroclec• tric Project will be near a former hydro plant retired in 1950. The DOE grant will cover ap• proximately 25 percent of the installed cost. The annual six million kwh expected to he generated in this effort represents a savings of the equivalent of 11,000 barrels of oil per year. Gene Lauerman, 602/273.5594. OKANOGAN COUNTY ['Up, Okanogan, Wash., may review hydroelectric generation at Enloe Dam. This would involve replacing the existing generators with two 1.9 -mw turbines which would produce roughly 25 million k.h per year. Harold Brazil, 509/422.3310, TALLAIIASSEE. FLA., is Investigating the POSSibil• fly of reinstalling a turbine at a site on the Ochlockonee River. This Jackson Bluff Power House would have an average capacity of about 10 mw developed from a 33 -fool head. DOE awarded Tallahassee 51.75 million for this project. Kenneth Morgan, 904/576.1171. ROCHESTER• MINN., is considering adding a third generating unit to its Zumbm Dam. This addi• tional turbine would increase the utility's hydro power capacity by 1.2•mw. John Cobb, Jr.. 507/285.8940. CHICOPEE. MASS., proposes to install a turbine generator at a dam in the heart of the city's business district. This would use a 25 -foot head and represent roughly three mw of additional capacity. Nerve Plasse, 413/598-8311. PLATTE RIVER POWER AUTHORITY. Fort Collins, Coln., has applied for a license for its Billson Rock hydroclectric project. Hill Elastic, 3031226.4000. IRAVI RSL CII 1, kilt 11, is engaged in a piograin to upgrade Iow.hcad hydro facilities on the Boardman River. William Shoot, 616/941.2309. 1 MirpArll14r0 RY 1 JORM MICRO 1-A6 CEDAR RAPIDS • DES MOINES .:hen :r•� y�1 ,h. C.•a Kenne6wlk, Afainei 300 -kw hydro project includes a 48 -inch water pump which nin.s in reverse as a turbine. KLNNLUUNK. MAIN& is running in reVerse a %lan dard 48 -inch water pump (like those used in power plants for coaling) as a turbine at a 300 -kw hydroelectric project. The small hydro project also uses an induction generator rather than a standard synchronous generator to help keep operating costs down and make the proj. at easier to lake on and aft line. Phillip R. Davis, 207/985-3311. I/IBRING. MINN.. see entry under "Energy Storage." TACOMA. WASH, has designed a 750•kw impulw turbine that operates in parallel with a pressure.reducing valve on a local reservoir. The generator, which will cost approximately 51.7 million, is expected to come on-line in 1983. Ted Coates, 206/593-8201. COLUMBUS. 01110, is modifying two dams oil Ilse Scioto River. They will supply low -head hydroelectric (.ower to the city and its service area. Columbus received $4,8 million front wi: to redevelop the O'Shaughnessy Dam. henry Bell, 614/222.8371. St . CHARLES, O.L., is involved with rehabilimtion of a private hydroelectric facility at a local hotel. If successful, this project would cam• pletely meet the hotel's electric requirements which cost about $22,000 per year. Patrick Hayle. 312/584.2700. PIQUA. moo, proposes to supplement its electric power sources with a small hydroelectric facil- ity acibity with only an eight -foot head. It would have a capacity of roughly 800•kw and he can. vtrucled at the municipally owned Piqua Dann. H. E. Hastings, 513/773-1424. a Ll It J r r•w, I URLOCK IRRIGATION DISTkILT, Turlock, Cal: has completed two of its I I planned small hydro projcels uu irrigation canals. They will eventually add 24 mw to its electrical system capacity. The first project is harnessing the energy in its main canal by directing the irriga. tion water past two 500 -kw turbine generators on its way to the farms of central California. The power produced by the Hickman Powerhouse is enough to serve approximately 1,000 homes, saving the equivalent of 8,000 Ellomaku MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO.. Ludlow, Mass. and CONNECTICUT MUNICIPAL ELECTRIC ENERGY COOPERATIVE, Groton, Conn., are negotiating with the Bur- lington (Vt.) Electric Dept. for ownership in. lelv%t in a 50anw world chip -fired facility Harl- ington is planning. Caren Piemonte (MSIWEC). 413/589-0801: Robert Naylor (CSIEEC), 203/446.0620. STARKE. FLA., is attempting, after an initial failure. to convert its existing power plant to a wnud-burning operation and, if successful, plans to add new equipment to chip wood w'astofor use in the plant. Merrell Dees, ')01/964-5027. LAs1AR. COLO., plans to Construct a large-scale biuconversion facility which will produce methane gas from the manure of approximately 50.000 feedlot cattle. It is estimated that Through anaerobic digestion about one million cubic feet of gas will be produced every day. Kevin Wailes, 303/336.7456. SEATTLE, WASH., is in the fourth year of its five- year evaluation of the growth of red alder and black colmnwond in biomass plantations ao cording to variations in soil, spacing, rotation length, species mixture, irrigation, fertilization and cultivation, in order to analyze the feasibility of commercial energy farming. Seat- tle recently received a S120,000 grant renewal front the WE to continue its biomass project. In 1978 Seattle established two plantations for Thr project, in the Ccdar River watershed near North Bend and at the University of Washington's Lcc forest near Woodinville. I "Ada Su11ill Dulam, 200/625-303. nmRI.INGWN, Vt.. has been using wood chips from forest residue since 1977 to fire its 10. nlw J. Edward Moran Generation Station. The city plans a 50 -mw wood -fired facility. Robert Young, 802/658-0300. LEWIS COUNIV PUD n. Chehalis. Wash., has found that construction of a 25 -mw wood. burning electric generating plant would be olnomically feasible, according to the conclu. sill"., of a S50.Od0 study commissioned by the rum, Bonneville Power Administration, the Electric Power Research Institute and eight lumber mills which would supply the wood waste for fuel. This study Indicated that the cost of producing electricity from the wood. burning plant would be about 40 mills per kWh during the first year of operation. Building the plant over the next four Years would represent a capital expenditure of about S46 million. Gary Ralich, 206/748.9261. barrels of oil a Year in the process. Moreover, this electricity is available when it is needed most—in the hot summer months when the utility experiences its peak demand. Its second project, the S4.4 million, 3.3 mw Turlock Lake Powerhouse is the first WE small-scale hydroelectric power demonstration project to go an line. Turlock is also evaluating advanced concepts in lift-iranslamr hydroelectric technology. Ernest Geddes, 209/632.3861. OTTAWA. KAN., is looking into feasibility of us- ing waste heat from 2.6 -mw dual -fuel diesel engine to produce 190 -proof alcohol. Early estimates on this project indicate that a plant capable of producing 15 million to 20 million gallons of alcohol a year could he erected at a cost of S2 million to S3 million. It is an. licipaicd that annual revenues to the city from the sale of the alcohol fuel and fermeruadon residuals, which can be used as cattle feed, could exceed S3 million. lack Davis, 913/242.2190. TACOMA. wASIL, is evaluating the feasibility of a wood -waste, refuse and coal-fired cogencta. tion plant in Tidellats industrial area. James Thompson, 206/593-8203. TENNESSEE VALLEY AUTHORITY. Knoxville, Tenn., is making $109,000 worth of interest. free loans available to local residences for the installation of wood -burning staves. Mike High, 615/755.6848. JNNEVILLE POWER ADMINISTRATION. Portland, Ore., is testing methanol -blended gasohol in five compact cars to detemine costs and operating charaneristics. RPA plans to expand the program as some of the problems associated with gasohol storage are resolved. Harry Hurless, 503/234.3361. EUUIivE. ORE., is collaborating with the Weyerhaeuser Co. in the generation of 51.2. mw of electricity from steam supplied by boilers fueled with a by-product of The pulp and paper process. The Water and Electric Board is also operating a wood -fired district heating system that serves 150 customers in town. (Also see Eugene entry under "District Heating and Cooling.") Ken Rinard, 503/484-2411. GRAND HAs•EN.6mCH., has evaluated and found satisraciory the me of wood chips in its 20 -mw 1.13. Sinls Generating Station. Rowan Dawsan, 616/846.6250. 1 OGANSPORI. INTI., has found it can burn up to 25 percent agricultural waste with its coal to generate clean electricity. Edwin McDivitt. Jr., 219/7536119. PRATT. KAN.. will use feedlot waste to generate methane for generation of electricity by its public utility. Arlyn Bradford, 316/672.2022• TACOMA. WASH., See entry under "Municipal Solid Waste." IOWA ASSOCIATION OF MUNICIPAL UTILITIES, Des Moines, Iowa, see entry under "Advanced Heat Engines." Corncobs are converted into char in the .ensifrttaion projerr bring re•.ned by Cowl Rapids, Imre. The.e,rrifrr pnn'ider 75 prreenr ur inure of the Jgel requircet by the firsel rllgfrle. A .wore ;s• he the I0n•n .Lsna•iolhol uJ Alrmiripnl IAililirc found more than 70 Alidnrsl cAannuadlfrr with 300 inti of hind Ji tirl rnpnrity, nom lialfmd u, peaking and emergency generation, whir/ 1.011111 br conralyd In uAr the re•gfuri s ahundnnl eunleabt. 'k .1 `% h e F. ,(� it Bl •i'^ a .° f f I4If ROF 111Ar0 RY ' j DORM MICRbLAB j I CEDAR RAPIDS • DES MOINES i 19 PUnLIC POWER November -December 1981 42 a.i 1 J r �rROG' ESS energy capability andwrt market potential. The load duration curve submodel uses a newly developed algorithm to forecast a continuous curve which matches exactly the re- quirements and peak demand forecast. The dispatching submodel, a key element of the system, is a deter- ministic model that simulates every plant and resource available to the utility in a two-phase annual dis- patch. Emphasizing the importance of the production simulation, Dodd said, "We are very encouraged by our early experience with the model. The results of the dispatching and fuel cost submodels compare favorably with our detailed produc- tion simulation model results." The capital expansion sector of the model determines future genera. tion requirements by type of capacity and simulates construction costs, construction work in progress, and allowance for funds used during construction for generation, trans- mission, distribution, gas supply, and other facilities. This sector of the model can operate in two ways. A fixed 20 -year plan and construction budget can be input for simulation and testing, or the model itself can select capacity additions. Again, some of the first results from the model "came very close to reproduc- ing our existing expansion plan," said Dodd. The financial sector of the model calculates depreciation, taxes, net income, dividends, and new financ- Detroit Solid Waste Disposal Plant to \` Generate Energy �j Mayor Coleman A. Young, Walter J. McCarthy, Jr., Detroit Edison Company chairman of the board, and James F. Calvert, vice president — operations of Comhus- tion Engineering, Inc., have an- nounced plans to build a 5300 mil- lion solid waste disposal project in the city of Detroit. The plant will be capable of processing Detroit's 3.000 tons per day of municipal solid Waste and producing energy from the com- bustion of waste to generate bull, steam and electricity, which Will be sold In Detroit Edison. ing based on specified corporate policies on dividends and capitalization structure. '['his sector simulates all accounts of the Federal Energy Regulatory Commission in- come statement, balance sheet, and changes in financial position state- ment. All accounts are based on the actual accounting procedures in use by CIPS. The sector also includes CIPS' dividend reinvestment plan. The rue sector determines if a rue case is needed and, if so, simulates the resulting allowed rcvenuc. A cost -of -service submodel then develops new electric and gas rates that are used in the following year's simulation of the demand sub - model. If it rate case docs not occur, a IIIc[ adjustment clause passes furl expenses through to rates. The output of an entire run of the model is a set of reports: income statement, balance sheet, sources and uses of funds statement, sum- mary of operations, and several specialized reports ul1 taxes, the rates case, and plant statistics. The model can be operated either by us- ing prompting routines that have been prepared for commonly asked questions or by direct control. Dodd said that the model is extremely easy to operate: it requires no computer programming expertise and runs on a terminal in the planning depart- ment offices. The turnaround time for the model, tine of the major design con- siderations, is often a matter of minutes. "We keep a log of the time Combustion Engineering experts to begin construction of the facility in spring, 1982, on a 17.5 -acre city of Detroit -owned site near Russell and Ferry Streets, after financial and other contractual arrangements are completed. Commercial operation is planned for 1785. "The $300 million project will be financed by the sale of revenue bonds plus equity participation by private investors, said Mayor Young. "'I'hc plant is financially self-supporting," the Mayor added, "Willa revenues generowd by dis- posal fees paid by the city, Which now go outside Detroit, and by Detlnit Edison payments for tic Want Mid electricity by-products. "The substantial suburban land - it takes to solve a problem from the moment the problem is posed to completed reports. Some of nor studies have taken only a few minutes and none has taken more than an hour," said Dodd. The model has several important feanres which Dodd reels make it a significant advancement in the tools ;n•nilable to strategic planners. First, the price feedback mechanism is very important. Since demand is af- fected by rates a good planning model must capture the loop from demand to costs to rales to demand. Second, the comprehensiveness of the model means that it wide range of strategic planning issues can be analyzed. Third, since the model is carefully tailored to CIPS's nerds, important features of their utility are emphasized in the model. Fourth, hands-on :access to the model means that CIPS's staff is able to Icon the model in detail, and use it and modify it itself. Dodd views the model ;as evolutionary;tad experts til be enhancing it and finding new problems to analyze. Because of its modular structure, it is easy to alter individual pieces of the model. Dodd indicated his enthusiasm for the model. "We are very pleased with our early experience with the model," he said. ""Ito rapid turn- around time will enable us to take a new approach to analyzing problems. We anticipate that the model will help its gain some in- sights into what issues are really ill - portant to CIPS." fill requirements of Detroit will be significantly reduced," Young said, "while throwaway resources within the city are recovered and construc- tively reused. In addition, %(lane 750 jobs will be created in Detroit during the peak construction period and 74 permanent positions during plant operation." Detroit Edison Chairman and Chief Executive Officer Walter J. McCarthy, Jr., pointed out that ,herr :arc benefits m Detroit Edison ;and its central heating system 'cu'loolV s as well. "In the early 1970s," McCarthy said, "Detroit Edison converted most of the core. p;Iny's coal-fired xtc•ana-genre ling plants serving downtown Detroit to more expensive neural gas and nil RI IRI Ir IITII ITIFq Fr1RTNIn MTI y—nFr.PMRFR 17 10111 XII rte_... _. ...._ _. _..._ .. ... __ ..,. 1 IA1f0tit 11 Rrn RV 1 ' I JORM MICR#L AB I CEDAR RAPIDS • DES MOINES ' f J r INDUSTRIAL M"ESS CESS country. The sysu•nh will be capable of carrying up to 100.0ft0 conversa- tions simultaneously. AT&T said it made the selection for the New York -Cambridge h•g after reviewing proposals submitted by eight domestic and foreign firms and considering concerns raised in government circles about so critical a communications artery being prodded by a foreign vendor. Reber[ \\'. Kleinert, president of AT&T's Lung Lincs Ocp "Iditol. said. "After serious consideration of the issues raised, we agree that it is in the national interest it, use American suppliers for this initial lightwave systrm. which is Sri vital a link in the naliun's backbone com- munications network." Ile added: "It is critically impur- Iant fur the United Stairs uI Inain- tain its position at the leading edge of lightwave technology. This signifi- can1 dcvelupnhent in elcetrunics oyer time will open Pnonnous markets for a v;Iricly of wrudurx — hunt furrigu and domestic." Construction "I. the New York-tu- Cnmbridge system is subject to ap- proval of till: Federal Cmnmunica- liuus Cuuuuission. The link will br juinly owned by ATSZ1' Lung Lines and New• England TvIcphunc ;Ind Telegraph Company. 11 is (Ill(- fur (ouhplrlion in 1994. Work Ilcg;m last )tole utt anulhrr ,ection of the project brtwcen New fork city and liVashing[on, I). C. It I,, scheduled to be in operation by Ilml. :\ third section. front \V;Iihinglon 10 \looney. is srbrdull•rl fur votnplelinn in 1984. \•I'&•T said that [his lightwacr system is the most economical way to provide additional call -carrying capacity between its a!I-digital electronic switching systems in the Northeast. The entire projcel is ex- pn•u•d to rust ;Ihuut 5125 million. for environmental reasons. This project will provide I)ctroit Edison central heating customers with a reliable and economically c0m- petitive supply of steam." "Combustion Engineering will be building a waste -burning power plant," said ,James F. Calvert, do- company's ecompany's executive vice president — operations. "It is a design incor- porating field proven equipment with built-in redunrlancv fur reliability and efficiency. Fur rx;un- ple, the plant will have three in- dependent automated waste separator -shredder lines whit, can independently service any one of, of. combination of, three hnilrrs lu generate the steam, rather than a single, large system. "Approximately 40 per rent of rile Free World's thermal grncr;ued power is produced by systems of Combustion Engineering's design or supply," Calvert concluded, "and we see the 1)ctmil pmjerl as con. tinuing our r(Jill nhiunclu nr new and reliable energy systems." Lightwave Communications System Plans Outlined The American 'telephone and Telegraph Company has announced that i1 will use a rumbinaliun ref 1Yestern E.h-vine Comp:my and another domestic m;mufarturry ur manufacturers for its high-capacity digital lightwave communications systrm between Ncw• York rife ;Ind Cambridge, %lassarbusclls. The non•1\'ester❑ Electric source ur sources will supply large qu;uuilies of critical glass fibers for the project. The system uses the most ad. vanced telephone. transmission technology yet developed. pulses of laser light carry telephone messages through hair -thin strands of glass rather than copper wire. *Ile glass is so purr: that if water were as clear, the bottom of the deepest ocean would he visible from the surface. \\hen completed in 1984. the 776 - mile Northeast Corridor lightwave system will run from Cambridge It, \loseley. Virginia, near Richmond, alnng one of the most heavily used railing routes in the nation. Telecommunications usage has brrn growing m it rue of up to I; per (rill per year in 1hm sccfiun of till 70 Gas Analysis Service introduced A gas analysis service that ;lids users of gas-inahLoed rlrrrrirsl (Gill) equipment uh assure rrhi;tbility of service. spot pntcnti;d rquipmrul m:dluorliuns slily. monitor gas leakage•, and improve sairI% 11.1, brrn iovoduord hw Allied Chemical Corporation. The gas UNITED STATES NUCLEAR REGULATORY COMMISSION DOCKET NOS. 50-443A AND 50-444A PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE, ET. AL. Notice of Receipt of Additional Antitrust Information: Time For Submission of Views On Antitrust Matters Public Service company of Now Hampshire, et. al.'. pursuant to Section 103 of the Atomic Energy Act of 1954, as amended, has filed information requosled by the Anorney General for antitrust review as required by 10 CFR Part 50. Appendix L. This information concerns a proposed ad- dilional ownership participant, the Canal Electric Company (Canal) in the Seabrook Station. Units I and 2. The change involves the transfer of ownership from the Com- monwealth Electric Company to Canal. The information was filed in connection with the application submitted by the con- struction permit holders for operating licenses for two pressurized water reactors. Construction was authorized on July 7. 1976 al the Seabrook site located in Rockingham County, New Hampshire. The original application was docketed on July 9. 1973, and the Notice of Receipt of Application for Construction Permits and Facility Licenses and Availability of Appli- cants' Environmental Report: Time for Sub- mission oI Views on Antitrust Matters was published in the Federal Register on August 9, 1973 (38 F.R.. 21522)• the Notice of Receipt of Application for Facility Operating Licenses; Notice of Availability of Appli- cants' Environmental Report; and the Notice of Consideration of Issuance of Facility Operating Licenses and Notice of Oppor- Federalfor RegsterHeating on October 19e1981 the 6 F,R. 51330). A copy of the above documents are available for publto examination and copy- ing for a lea al the Commission's Public Document Room. 1717 H. Street, N.W.. Washington, D. C. 20555 and at the Exeter Public Library. Front Street. Exeter, New Hampshire 03883. Information in connection with the an- tilrusl review of the Canal Electric Company may be obtained by writing to the U. S. Nuclear Regulatory Commission. Washington, D.C. 20555. Ananllon: Chief, Antitrust and Economic Analysis Branch, Division of Engineering, office of Nuclear Reactor Regulation. -The current applicants for the operating licenses for Seabrook Station are: Bangor Hydro -Electric Company'. Central Maine Power Company. Central Vermont Public Service Corporation, Commonwealth Energy puny, Fitchburg GastB tElectrric Light Com - party, Maine HudsonLight LSery c Power Company, r1 Masl- sachusens Municipal Wholesale Electric Company, Montaup Electric Compnny, Now England Power Company, Public Service Company of Now Hampshire. Taunton Municipal I.Ighlinq Plnnl, The Unilad Illuminating Company, and Vermont Electric Cooperative, Inc. PUBLIC UTILITIES FORTNIGHTLY—DECEMBER 17 1 Lnranrtiarn ay IJORM-MICREsLAE3 CEDAR RAPIDS r DES MOINES 1 J IF n APPENDIX III "Utility Franchises Reconsidered" MicunauNcn av JORM""MICRLAB" CEDAR RAPIDS • DES MOINES 111 aai ,i j i I i i i 1' 1 1 - r 1 I aai r Chicago's utility franchise policy i.r lenient compared with that al non-amnopoly business. In 1948 Qmtnouwcalth Edison paid only $32 million to sell electricity in Chicago until 1990; only 4 percent of Cron Ed's revenues goes to the city. Thom by Kce T. Chang, Chicago Association of Commerce and Industry by B ET H A N Y W El DN HIR research director of the National Public Power Institute "The potent force making for municipal ownership in this country has not been the reduction of profits due to virile enforce- ment of franchise provisions. The tendency toward municipal ownership has been due almost solely to the fact that municipal ownership has been the only weapon with which the American city could successfully abate the evils arising from having its most important public needs and service per- formed by corporations over which it had no effective means of control." —'I IIL• HLUULA IION Ub AIUNII IPAI. U IIA TICS, C. L. King, 1912 LET'S SAY YOU WANT TO SELL hamburg- ers to the fast-food lovers of Chicago, III., under a sign reading "Burger King." To get a Burger King franchise, you would pay a one-time fee of $40,000— about half a year's pretax income, ac- cording to FORTUNE. You would also agree to pay the Burger King Corp. (a subsidiary of Pillsbury) from 7.5 per- cent to 16 percent of your revenues an- nually. You would have to agree not to own any other fast-food business, and 46 PUnLICPOwER November•Decemberl981 to live within an hour's drive of your store. Even with the franchise in hand, you would have to compete with other fast food outlets. But what if you wanted to sell elec- tricity to those same Chicagoans? Getting a public utility franchise would be a snap, compared to gelling a Burger King franchise. In 1948 Com- monwealth Edison Co. paid about $3 million—less than one-tenth of that year's pretax income—to sell electricity to the people of Chicago for 42 years. All Com Ed has to do to meet the terms of its franchise is pay the city of Chicago 4 percent of its revenues annu- ally. All of this may be passed directly to the customers, since no other electric utility is franchised to operate in Chicago. Burger King, in short, lakes the atti- tude that its franchise is not only a privilege, but a valuable privilege. The corporation uses its franchise to obtain two things from its franchisees: a sig- nificant share of the profits and con- trol over their activities, in sharp con- trast with Chicago's franchise arrange- ment with Com Ed. P41 ranr Iun nv JORM MICROLAB CEDAR RAPIDS • DES M014ES Chicago Franchise Typical Com Ed's Chicago franchise is typical of the arrangements that allow inves- tor-owned utilities (sous) to operate in cities and towns throughout the United States. In Chicago, as in most other cit- ies, the people derive little financial benefit from their franchise, nor does the franchise contain any significant provisions regulating the IOU. What the Chicago franchise does of- fer, however, is an alternative to Com Ed itself. Since 1948, the Chicago fran- chise has specified that the city, upon a year's written notice, may take over Commonwealth Edison's Chicago op- erations. Most franchises possess a similar feature. It is this power to choose an alternative that makes the franchise a critical tool for people frus- trated with IOU operations in their communities today. Communities that have turned an in- dispensable service over to a private company organized for profit have always encountered problems. From the beginning, the question has been: Will the utility serve the public—or will the public serve the utility? The history a a- i J _V J Chicago's utility franchise policy i.r lenient compared with that al non-amnopoly business. In 1948 Qmtnouwcalth Edison paid only $32 million to sell electricity in Chicago until 1990; only 4 percent of Cron Ed's revenues goes to the city. Thom by Kce T. Chang, Chicago Association of Commerce and Industry by B ET H A N Y W El DN HIR research director of the National Public Power Institute "The potent force making for municipal ownership in this country has not been the reduction of profits due to virile enforce- ment of franchise provisions. The tendency toward municipal ownership has been due almost solely to the fact that municipal ownership has been the only weapon with which the American city could successfully abate the evils arising from having its most important public needs and service per- formed by corporations over which it had no effective means of control." —'I IIL• HLUULA IION Ub AIUNII IPAI. U IIA TICS, C. L. King, 1912 LET'S SAY YOU WANT TO SELL hamburg- ers to the fast-food lovers of Chicago, III., under a sign reading "Burger King." To get a Burger King franchise, you would pay a one-time fee of $40,000— about half a year's pretax income, ac- cording to FORTUNE. You would also agree to pay the Burger King Corp. (a subsidiary of Pillsbury) from 7.5 per- cent to 16 percent of your revenues an- nually. You would have to agree not to own any other fast-food business, and 46 PUnLICPOwER November•Decemberl981 to live within an hour's drive of your store. Even with the franchise in hand, you would have to compete with other fast food outlets. But what if you wanted to sell elec- tricity to those same Chicagoans? Getting a public utility franchise would be a snap, compared to gelling a Burger King franchise. In 1948 Com- monwealth Edison Co. paid about $3 million—less than one-tenth of that year's pretax income—to sell electricity to the people of Chicago for 42 years. All Com Ed has to do to meet the terms of its franchise is pay the city of Chicago 4 percent of its revenues annu- ally. All of this may be passed directly to the customers, since no other electric utility is franchised to operate in Chicago. Burger King, in short, lakes the atti- tude that its franchise is not only a privilege, but a valuable privilege. The corporation uses its franchise to obtain two things from its franchisees: a sig- nificant share of the profits and con- trol over their activities, in sharp con- trast with Chicago's franchise arrange- ment with Com Ed. P41 ranr Iun nv JORM MICROLAB CEDAR RAPIDS • DES M014ES Chicago Franchise Typical Com Ed's Chicago franchise is typical of the arrangements that allow inves- tor-owned utilities (sous) to operate in cities and towns throughout the United States. In Chicago, as in most other cit- ies, the people derive little financial benefit from their franchise, nor does the franchise contain any significant provisions regulating the IOU. What the Chicago franchise does of- fer, however, is an alternative to Com Ed itself. Since 1948, the Chicago fran- chise has specified that the city, upon a year's written notice, may take over Commonwealth Edison's Chicago op- erations. Most franchises possess a similar feature. It is this power to choose an alternative that makes the franchise a critical tool for people frus- trated with IOU operations in their communities today. Communities that have turned an in- dispensable service over to a private company organized for profit have always encountered problems. From the beginning, the question has been: Will the utility serve the public—or will the public serve the utility? The history a a- i J _V ,n _ e452- L .. MOPP can-- -= - "Burger King takes the attitude that its franchise is a valuable privilege. The corporation uses its franchises to obtain urn things from its franchisees: a share of the profits and control over their activities." rnmo by sieve Reinema of the electric utility franchise explains how its force resides in its potential for revocation in favor of municipal own- ership. Fees Melded Into Rales The earliest franchises were disposed of for a song, or given away outright. Few people realized the actual or po- tential value of the franchise. It not only carried the right to use public streets and roadways for private profit, but also guaranteed a monopoly mar- ket of customers anxious to add cicc. tric power to their rising standard of living and close enough together to be easily and profitably served. The value of the franchise became obvious as the new franchise holders began to reap secure and substantial profits. This prosperity led to a de- mand that franchises be sold to the highest bidder in order to secure a share of the profits for the local community. The fees established at that time smoothed relations between investor-owned utilities and municipal governments for many years. Gradually, however, sous began to L add the annual franchise fee to the rates they charged their customers. In- stead of sharing in the profits, the com- munity paid the private utility's fee. A lack of vigor in behalf of the public by state regulatory commissions permitted this transformation of the franchise fee into a hidden tax. Where the regulatory commission has acted on the pass-through question the usual result has been to deny mu- nicipalities any income from the fran- chise. As a consequence at least one Florida community, Fernandina Beach' plans to terminate its relationship with the company that now distributes its electricity (the 30 -year franchise expires in 1983) in favor of its own utility. A study by R. W. Beck and Associ- ates estimated the city could save about SI million a year over each of the next 10 years by switching to public power. As City Manager Grady Courtenay said, "Now that we can't get a decent franchise fee, it's to our advantage to do the distribution ourselves." The first franchises awarded in this country were not exclusive. The hope utranni urn nv 1 IJORM MICR46LAB CEDAR RAPIDS • DES MOMES was that competition would ensure sat- isfaction—good service, low rates and efficient allocation of resources. The result was not competition, however, but consolidation of would-be compet- itors into local monopolies (as in Con- solideled Edison, for example). Mo- nopoly profits often accompanied a cavalier disregard for community needs. With the appearance of monopoly behavior, municipalities began to look to the franchise as a means of control. Many cities drew up franchises that tried to regulate. They specified quality of service; fixed rates and provided for their adjustment; and required open books. As one pair of economists writ- ing in the early 1930s observed, " the company enjoying a monopoly in an indispensable service and the grantee of special privileges in the city streets should have nothing to conceal from the municipal authorities." Regulating utilities through the fran- chisc turned out to be impossible. Communities simply lacked the ma- chinery to draw up and enforce effec- tivc franchise provisions. The utility 47 runticrowrR November -December 1981 M 9 r r m L. iAL�_ companies pitted their well-paid ex- perts against untried city council mem- bers to come up with franchises that left the IOUs free to operate as they pleased. If the city did hire experts to draw up the franchise, municipal officials found themselves unable to administer strict provisions with the flexibility or the strength needed to protect the com- munity and keep pace with change in the industry. Eventually, state commis- sions took over the task of supervising service, rates, accounting and other matters. Preserving Municipal Alternative Although state regulation attempted to cover day-to-day matters, the munici- palities carefully retained for them- selves a formidable means of protec- lion—the power to terminate the franchise and take over the property of the private company for public owner- ship and operation. Moreover, most commentators believed that without a "virile" power of public ownership, state regulation itself would deteriorate into mere ratification of lou inten- tions. A strong public ownership move- ment did emerge in the 1930s and '40s. A thoroughgoing federal investigation in 1928 had revealed many improper fi- nancial and political practices by the IOUs. The revelations ushered in a 20 - year period of change, with active con- frontation between publicly owned utilities and Ions leading many com- munities to terminate their private elec- tric suppliers and replace them with local publicly owned systems. Ions mel the challenge of expanded public own- ership in the 1950s and '60s by lower- ing rates and adopting more responsive service policies. Now, in the 1980s, conditions sug- gest that we are again entering an era of great change. The public appears to be at odds with utilities over questions of economics, rate structures, conser- vation and decentralization. For some communities, replacing private owner- ship with local public ownership may be advantageous. The franchise offers a powerful tool in this respect. Even in cases where the community decides that it will not in- voke its power to terminate a fran- chise, the lively possibility of municipal JR runt wVowels November -December 1981 operation should challenge the IOU to be more responsive to the community's interests. In order for the benefit of the fran- chise to be realized, the community and the corporation must be fully aware that people can with relative ease dispense with private ownership and operate their own utility—a right which communities have had since the beginning of central station service, and which thousands of communities have exercised. If the option of public ownership is to have teeth, however, it must be a real and likely option. This situation exists where the community possesses or adopts a franchise containing clear provisions relating to duration, termi- nation procedures and financing. Franchise Duration Perpetual and long-term (50 years or more) franchises were abandoned early. They obviously deprived the mu- nicipality of any meaningful alterna- tivc to the existing franchise and thus lost their regulatory power. Instead, communities adopted limited term and "indeterminate" franchises. 5 -DAY FACILITATOR TRAINING COURSES (MONTHLY IN MAJOR CITIES) entire training package - $t 950. •A facilitator Training Manual -6 Leader end Instruction Manuals •50 Member Manuals •50 Booklets: "Quality Circles. -Answers to 100 Frequently Asked Questions" • 100 "TAe Quality Circle- Who I You Should Know About Ir" •8 Audio Visual Training Modules • 120 Slide Introduction to Quality Circles -An Overview -Handouts, Diploma -Class Picture Am inironr is nv JORM MICROLAB CEDAR RAPIDS • DES 1401NE5 aai J r n 1_-' The limited (or short-term) frari, ..se allows for a periodic readjustment of the relations between a city and the utility. The community can take into account at intervals the progress of the industry, changes in economic condi- tions and revision of prevailing ideas as to the measures necessary for effective control over utilities. A dynamic com- munity might decide that changes since the franchise was granted made it ad- vantageous for the municipality to pro- vide its own utility service. Many states require that franchises be indeterminate. This type of fran- chise, which runs until terminated by the community, emerged from the rec- ognition that the franchise was import- ant mainly as a means of preserving the competitive pressure of the municipal alternative. The idea underlying the in- determinate franchise is that the tenure of the utility company is conditioned on its performance and that the people, not the company, decide whether the utility is being operated in the public interest. Termination Procedures In order to maintain the competitive force of the franchise, the process for adopting municipal ownership and op- eration must be simple and straightfor- ward. Historically, a majority vote of the community has been sufficient to terminate a franchise in most commu- nities. Not surprisingly, as private power companies grew in economic and polit- ical strength, they maneuvered to stay the communities' hand. Some fran- chises placed greater burdens on the community, requiring large numbers of signatures on a petition to consider termination; giving veto power to the mayor or city council; requiring that more than a majority of voters ratify the decision; or all three. 0y far the gravest threat to a munici- pality interested in terminating a fran- chise now comes from laws fixiltg ser- vice territory. The Indiana legislature in 1980 fixed the territorial boundaries of all electric utilities providing retail service and eliminated the authority of municipalities to take over lou oper- ations. Maryland and Idaho have similar laws tying the hands of a community interested in local ownership or energy independence. Such laws reverse The historical relationship between the community and the utility that serves it;, the utility is no longer constrained Now... change traveling water screen sections in only minutes and save money, too! 4� First quality Ludlow -Saylor traveling water Sr screen sections fit your frames immediately.IA You save the time and grief of cutting themyourself.They're already precision -sheared for exactlength and width, accurately bent and pre -notched. All you do is bolt or weld them in.Ludlow-Saylor screens are all top American quality for reliability and long life, too. And you save money because wa ship direct from our large midwestern inventory. In 1/4:'3/8:'or 1/2" opening. copper. stainless. galvanized, brass, bronze or monel. Find out more. From the Screen Pros SEND OR CALL FOR CATALOG 4 MYWR AND PRODUCT BULLETIN. LWLOW ' Dry Slwll Ivluilnei.lOe of DD1. S1 B.N Oelpprl DL sl lwn Mgfoun W Il. Toe NI w ISS( II $300,0007000 Intermountain Power Agency la political subdivision of the State of Utah) Power Supply Revenue Bonds, 1981 Series C The undorsigned acled as Imanr-ial advisor It, Ill., 111Wfmow,fa n Pmvrl A(Imicy ,vllh wspecl W Iho sale of I1115 issuo ul ponds Goldman, Sachs & Co. �01(�man New York Boston Chicago Dallas Detroit �r S Houston Los Angeles Memphis Miami Philadelphia St. Louis San Francisco London Tokyo Zurich r , l nlrane111A[n nv DORMMICR#LAB- -I CEDAR RAPIDS • DES MDIBES I I I 49 renl.lc eowl:x November -December 1981 ;t 011 I _10 a JV r L.. r I! ry r either by competition or even indirectly by the power of the community which provides the customers. Financing A Takeover The issue of payment for facilities to be taken over upon termination of a fran- chise is critical. This point was rec- ognized in the 1930s, but not all Fran- chises contain provisions relating to purchase, or provide a realistic pro - I cedu•e for determining price. The Chi- cago franchise is one of the few that fixes payment—at no more than Cont Ed's actual investment and no less than that amount minus depreciation. One way to finance a takeover would be to include the requirement that a sinking and amortization fund be amassed out of earnings, so that at the end of the franchise period, or when the community decides to buy the utility, the city will have available, without bond issues, funds necessary for purchase of the system. Without such a fund, an IOU faced with termi- nation can frighten the community with statements that the cost to buy it out would destroy the financial advan- tages of public ownership, at least in the short term. That is what happened in Daytona Beach, Fla., where the question of how to pay may have cut off the commu- nity's chance for energy self-suffi- ciency. The Florida Power and Light (FP&L) franchise to serve Daytona Beach was to expire in late 1977. FP&L had embarked on an unprecedented construction program, anticipating growth that did not come. But al- though demand had not caught up with FP&L, costs had; the utility began asking for increasingly large rate increases. In 1976 Daytona Beach officials an- nounced that the city could do better providing its own service than sticking with FP&L. A poll later that year showed Daytonans about evenly split on the question: 36 percent favored private ownership; 33 percent favored public ownership; and 31 percent were undecided. service alone would cost the average customer $12.60 per month. FP&L's saturation TV advertising a month after the debt "revelations" was fol- lowed by the mayor's announcement that he no longer felt the municipal option was financially feasible. When the vote came in June, the company won renewal by the slim margin of 3,341 to 3,116. The economics and technology of electric utilities changed profoundly during the formative years of the in- dustry. The people of the country were able to keep pace with the changes and protect the public interest because the industry itself was fluid and subject to public decisions. For some communities, replacing private ownership with local public ownership may be advantageous. The franchise offers a powerful tool in this respect.' When the vote came six months later, FP&L got its franchise renewed. The utility's "communications coordi- nator" credited the debt issue with giving the company the fastest impact on public consciousness. An FP&L ad in the DAYTONA NEWS JOURNAL pre- sented a chart showing that city debt would jump eightfold if the city in- vested S50 million in the power bus- iness. The local radio gave heavy cov- erage to FP&L'S estimate that debt Utilities today face similarly pro- found alterations in economics, tech- nology and operations. To tie the public to systems developed according to a different set of conditions would be a grave mistake. The franchise was intended as a means of keeping private utility service in line with public needs. Where public needs and private utility aims have diverged, limited -term and indeterminate franchises offer the op- portunity to rectify the problem.* Terns and Conditions of Private Electric Utility Franchises IOU FRANCHISE TERMS and expiration dates, and utilities subject to indeter- minate franchises, are listed below. No agency or firm collects such information on a systematic basis. This list is based on correspondence and interviews this year with state and local officials and use of the 1980 MOODY's PUBLIC UTILITY MANUAL, a reference found in many libraries. States which by law require all fran- chises to be of indeterminate duration (and therefore subject to revocation at any time) arc noted by an asterisk. Other states require limited -term franchises or do not specify length of franchise. The page number in the "comments" column refers to the page in the 1980 edition of m000rs PUuHC UTILITY MANUAL on which the comments appear. Franchises expire at various dates in the year listed; the month of expiration is often listed in MoouY:s. Some utilities du not list franchise expiration dates for SO PUBLIC POWER November -December 1981 small towns. in most states municipalities also possess the power of eminent domain which (with due process) authorizes them to condemn IOU facilities and establish a municipal system. States not listed—in some cases because utilities operating there do not discuss franchises in material prepared for m000r's—Include Alaska. Hawaii, Nebraska, New Hampshire, Rhode Island, Tennessee, Utah and Vermont. In Alaska franchises as such do not ex- ist. The few communities served by rous do so by virtue of certificates of conve- nience and necessity obtained from the state regulatory commission. In Hawaii the state legislature awards non-exclusive contracts to operate electric facilities, according to the state regulatory commission there. No Hawaiian law preventsa municipality from buying an existing too. Nebraska has no Ious and Mlranrlllrn Ry I JORM MICR6LAS j CEDAR RAPIDS • DES NDIAES Tennessee has one, Kingsport Power Co. Franchises in Rhode Island and New Hampshire are indeterminate. In Utah, according to the state utility regulatory commission, most communities served by Utah Power & Light Co. (the only IOU headquartered in the state) are granted SO - year franchises, many of which have been renewed since 1960. In Vermont all utilities must obtain a "certificate of public good" from the state regulatory commission. State law provides that a community may, by a three-fifths vote, acquire the investor- ownrd system that serves it. However, when the town of Springfield, Vt., in. itiated a referendum to create a municipal .system Central Vermont Public .Service Corp., which serves the area, protested, arguing among other things that the "public good" of all customers in the i stare must be considered. The dispute is still in the courts. aal 1 J J C P SI PUBLICPOWE& November -December 1981 Aai I 11 �I I4lr.onrll MCG RY _ JORM - MICR+LA13 - CEDAR RAPIDS • DES MOINES /"fix I Place Franchise Exph. i utility 1 Comments ALABAMA Alabama Power Co. A large majority of franchises are without time (controlled by the Southern Co.) limit. M000r•s, p. 2724 ! ARIZONA Phoenix 2004 Arizona Public Service Co, South Tucson 1991 Tucson Electric Power Co. u000r•s, p, 993 ' Tucson 2001 i Citizens Utilities Co. MOODY�s, p. 3499 Operates systems in Arizona (and elsewhere); lists no franchises. M000r's, p. 324 I - p ARKANSAS' Fayetteville Springdale Indeterminate Indeterminate Southwestern Electric Power Co. (controlled by Central ( y Franchises of this company In p Y j Rogers W Texarkana Indeterminate 85outhweslern Co.) Arkansas are unlimited subject to termination by municipality's F Indeterminate acquisition of property. M000rs, p. 284 l Z Arkansas Power B Light This company"holds Indeterminate i j (controlled by Middle South Utilities) franchises for Its municipalities." I - WOWS. P. 2212 CALIFORNIA Santa Barbara Beach 1984 2031 Southern California Edison Co.Long -Company claims perpetual franchises under Allolhers Indeterminate the stale consitltution of October 1911, authorizing the installation and maintenance of facilities for supplying illum- ... . inaling light "Under California laws, utility districts may be formed and such districts as well as municipalities may construct. purchase or condemn and operate electric facilities, and a municipality may dispose of electricity - - outside its boundaries. I "Competition is fell by the company when a municipal system annexes adjacent terri- tory which the company has theretofore Alpine County 1996 Sierra Pacific Power Co. served." u000r•s, p. 3394 El Dorado County 2027 M000r•ep. 2705 Loyallon 1988 Mono County 1996 Nevada County 2024 " Placer County 2027 - PlumesCounty 2014 Poriola 2014 - Sierra County 2029 South Lake Tahoe 1993 ` Nolisling Pacific Gas and Electric Co. "The constitutional franchises and many of the francises granted by munlcipalilies and - counties to PG&E are perpetual: Most of the other franchises are for long terms and - company has been generally successful In securing renewals of expiring franchises." MDoor•s, p. 3258 COLORADO ,I According to the slate public ufill ly com- I! mission, franchises normally Include a pro- vision that al live -year intervals, by a vote of i the people, the municipality can purchase the electric system. i ' CONNECTICUT* i No time limit United Illuminating Co. "Company's franchise perpetual." (� No time limit Hartford Electric Light Co. M000r•s, P. 3506 "Company's franchises are unlimited as to (controlled by Northeast Utilities) time. They are... subject to alteration, j. amendment, and repeal." MOODY•a,p.2372 DELAWARE I' i Delmarva Power Co. Franchises are for the most part unlimited, Ij MDODY•S,P•1192 j SI PUBLICPOWE& November -December 1981 Aai I 11 �I I4lr.onrll MCG RY _ JORM - MICR+LA13 - CEDAR RAPIDS • DES MOINES 1 r I Place i, FLORIDA Coral Gables li Daytona Beach FI. Lauderdale n Miami Miami Beach Palm Beach i Sarasota St. Augustine W. Palm Beach Auburndale Dade City -' Eagle Lake Lake Alfred City Mulberry Hillsborough Co. Oldsmar Pasco Counly _ Pinellas Co. - Plant City Polk County San Antonio Tampa Temple Terrace Winter Haven No listing GEORGIA J IDAHO American Falls Blackfoot Boise Buhl Caldwell _ Chubbock Emmet Fruitland Garden City Gooding Jerome Ketchum McCall Meridian Mountain Home Nampa Payette Pocatello Salmon Twin Falls j Bonnets Ferry Coeur d'Alene Lewiston Moscow Sandpoint — --- --16 - Franchise Expiration Utility Comments 1997 2007 2009 1984 1982 1981 1983 2009 1988 1991 1980 1989 1986 1982 Indeterminate 1994 2023 Indeterminate 2008 1984 1983 1995 1989 2005 2023 2010 No time limit No time limit 2001 2001 2001 1999 2000 No lime limit 2010 1997 1994 2021 2004 2000 2020 1990 2020 2001 1988 2028 1999 1998 2002 Florida Power 8 Light Co. Mooers. P. 510 Tampa Electric Co. M000r's, p. 3427 Florida Power Corp. Georgia Power Co. "With minor exceptions, all franchises of company are without time limit. During 1979 the company continued to enter into new franchises with more than 400 cities. and towns ... Approximately 90 percent of these agreements are definite term con. _ tracts for 35 years or more." M000v's, p. 2738 Idaho Power Co. "Franchise rights ... are granted by the statutes of the stales of Idaho and Oregon without limitation as to time to any electric utility which complies with the provisions of such statutes." Mooers, P. 584 Washington Water Power Co. ILLINOIS Peoria 2017 Central Illinois Light Co. Canton 20t I Central Illinois Public Service Corp. C b at ondafe 2008 Charleston 2016 Effingham 2008 Harrisburg 2008 Herrin 2011 Macomb 2007 Marian 2019 52 PuuLlc Pnwnx November•Dncmther I9NI M000r's, p. 3556 M000rs p. 1076 01267 Incorporated communities ciPsco serves, it had electric franchises in 365. Thirty-seven franchises (including gas) expire before 2000. List represents "larger communities," M000r's, p, 216 Mtronrt, Mrn xv ! JORM MICR#LAB'- I I CEDAR RAPIDS • DES MOINES 7 aai , i I i aai IN Place Franchise Er, Utility Mattoon 2008 Murphysboro 2015 Olney 2008 Paris 2010 Quincy 2010 Taylorville 2008 W. Frankfort 2012 Addison 2009 Commonwealth Edison Co. Arlington His. 1999 Aurora 2003 Berwyn 1996 Bolingbrook 2018 Burbank 2020 Chicago 1990 Cicero 2010 Calumet City 2012 DeKalb 2025 ' Des Plaines 2010 Dolton 2017 Downers Grove 2018 Elk Grove 2007 Elmwood Park 2013 Elgin 2016 Evergreen Pk. 2015 Elmhurst 1996 Evanston 1996 Freeport 2022 Glenview 2017 Harvey 2008 Highland Pk. No time limit Hoffman Estates 2009 Joliet 2013 Kankakee 2008 Lansing 2005 Lombard 1984 Morton Grove 1024 Mt. Prospect 2013 Maywood 1997 North Chicago 2024 Northbrook 2023 Niles 2008 Oak Park 2010 Oak Lawn 2014 Palatine 2000 Park Forest 2007 Park Ridge No limit Rockford 2012 Schaumburg 2006 Skokie 1985 Soulh Holland 2011 Villa Park 2014 Waukegan 2023 Wheaton 2010 Wilmette 1981 Belleville 2022 Illinois Power Co. Bloomington 2005 Cahokia 2016 Centralia 2000 Centreville 2018 Champaign 2018 Collinsville 1994 Danville 1995 Decatur 2010 Edwardsville 2014 Galesburg 2018 Granite City 2029 Jacksonville 2024 Kewanee 2020 La Salle 2029 Monmouth 2012 MI. Vernon 1994 Normal 1997 011owa 1994 Urbana 2019 Wood River 2013 iurrenru urn ov 1 J JORMMICR#L,rCO- CEDAR RAPIDS DES MOINES 1 'Comments Chicago franchise continues in force until December 1990, and thereafter until termi. noted by either party on one year's notice. Franchise provides that at any time on one year's notice city may purchase company's facilities for a cash consideration equal to depreciated reproduction cost with an upper limit of undeprecialed investment and a lower limit of depreciated Investment. In event of municipal acquisition, city has the right to terminate the franchise on one year's notice. Upon demand of either party a three-man board of independent engi- neers may be appointed ... to propose amendments (which may not affect terms or provisions with respect to municipal com- pensalion or acquisition). Communities with more than 25,000 population listed. MOoovs, P. 362 Ix provides electric service to 312 Incorporated communities with franchises as follows: one has no franchise; 162 expire 1994.2004; 83 expire 2005.15; 62 expire 2016-29. Four customers are served wholesale. List represents "more Important" com- munilles. MOoor•s, P. 1384 all F l 57 Punr.lc Pnwt R Novembcr-December 1981 aa� I F i r, IOWA Francaise Clinton w Place Expiralion utibly Coarmenis INDIANA' Indiana& Michigan Electric In Indiana, indeterminate permits conlinue Co. (subsidiary of in force until the municipality served exer. American Electric Power Co.) cises its rights to purchase, condemn or Indianapolis Power & Light Co. otherwise acquire the company's property 1999 in nicip Northern Indiana Public Service Co. llittolauntilotherwisete(- msuchm aledPublic Service Company of Indiana However, the Indiana fegislalure, effec- 1995 tive March 1, 1980, enacted new mapping Eldora procedures for the establishment of fixed territorial boundaries for all electricity sup- 2002 pliers providing retail electric service and Iowa Falls removed the authority of municipals to con- demn electric utility systems. i r, IOWA Clinton Date not given Interstate Power Co. ipc holds 186 electric franchises, mostly for Dubuque 25 -year terms. Renewal is a continuing pro - Mason City cess. M000rs. p. 1421 Anamosa 1982 Iowa Electric Light& Power Co. Slate law lorbids franchises over 25 years Boone 1999 duration. LIE! represents communities over Cedar Rapids 1985 3 n00. M000rs, P. 608 De Will 1995 Eldora 1987 Fairfield 2002 Iowa Falls 1887 Jefferson 1984 Manchester 2004 Marshalltown 1986 Marion 1996 Monticello 2004 Mi. Vernon 1994 Nevada 1993 Perry 1998 Spirit Lake 1994 here's a continuous duty, helical gear winch that will pull all day... or into the night! When you need a rugged winch that can it ;1-, [�3>f q*tv ,p" r's"• ti+r '°P�"��'','t`'h.>�'�r. ,, deliver under heavy duty continuous service h Jllry1�,111arltirr 4F -'Ira xCSf ,13 x roty a�Cc ��yyMMe conditions, count on Adams CD winches. 1I4�M1.eer 1Ynr ttig4 1, tk f�, Etl °� ;' " ;1J These field proven system design winches Y1M'aMrrYersMllr t J ti r{, 'i � '��f f� `, i !" t ' are rated at 20,000 lbs. and feature a helical n` p0.r°A> M°''1h^a+'� t `� L 'w gear design for maximum efficiency even in ••' ti;:';;xr the most demanding service. They can be t=4 44".. iK4„� accessorii sed .IW ite for Bulletin 76vel-wind and 0 Adams Equipment. 325 Andrews Rd., Trevose, Pa. 19047. (215) 355-3500. aa44 t P J 1 t e , . complers lim of linel,n M Indu.lr% y4S y S• Iv� Adams Equipment 4:T1. .emltlon or .w'G/1� 1 �ti' ':'M•yrd rr ak/1t r..v��.l y1 ,F�.. r1pr�.�j'li-11 lj ' 'a1i.54 f'1 `f{ rPoi) i op +t�p/Ij 'SII v •fT•i1L.1�M11Yflr r -x �r y°,Y.tyt. =;y rnr}i°va x..11nrayM�-tYrwllwllM •� i.,. 54 runlJPrnwnx November. Dcccinberl4&I tl. miranrtlmm nv JORM MICR#LAS CEDAR RAPIDS • DES MOVIES aa) 1 _V 7. J N l No listing No listing Keokuk Expired and not renewed KANSAS Andover Arkansas City Belle Plaine Buhler Caney Cheney Cheriyvale Clearwater Derby Douglass Eastborough EI Dorado Fort Scott Frontenac Goddard Halstead Haysville Hesston Humboldt Independence Maize Newlon N. Newton Pittsburg Sedgwick Towanda Valley Center Wichita Yates Center Abilene Atchison Emporia Hutchinson Junction City Lawrence Leavenworth Manhattan Parsons Salina Topeka KENTUCKY No listing 1997 1998 1981 1981 1982, 1984 1990 1981 1983 1982 1982 1998 1998 1981 1984 1981 1983 1981 1994 1990 1981 1983 1984 1998 1981 1981 1987 1984 1994 1986 1982 1986 1984 1986 1992 1983 1988 1996 1987 1988 Ufflify Iowa -Illinois Gas and Electric Co. Iowa Power and Light Co. (controlled by Iowa Resources, Inc.) Iowa Public Service Co. Iowa Southern Utilities Co. Union Electric Co. Kansas Gas 8 Electric Co. Kansas Power 8 Light Co. Louisville Gas 8 Electric Co. Mlrnnrll Mrn RY 1—JOR-"-MICR+LA M, CEDAR RAPIDS • DES MOINES comments List represents "more important - communities.- .M000Y•s, p. 620 IPSL's other franchises are of 25 years duration expiring through 2005. u000Y•s. P. 608 Franchises granted by referendum subject to 25 -year limit. IPsc served 156 communi- ties with electric franchises as011979.Five i franchises were approved in 1979. M000Y's, P. 632 Franchises expire through 2004. MOODY S. P. 1442 In the opinion of counsel, lack Of franchise does not materially aflecl companv's opera. lion in such municipality." Mocors, P. 1421 Listing represents cities with more than an•s, p. 657 1,000 population. State law provides that any municipality may purchase private facilities at fair cash value, the price to be determined, subject to jUdl- clal confirmation, by commissioners. ionefs, p. 1458 i �I r State constitution(1891) prohibits granting of franchises for more than 20 years—ex- cept Louisville where company claims per- petual franchise. Louisville sued in 1939, saying ordinance of 1890 did not grant any franchise at all. Suit has been dormant since 1945. M000Y's, P. 1477 continued on page 58 55 PUBLIC POWER November-Deccmber 1961 aaI r JI Franchise Place Expiration ew i Tama 1895 Bettendorl 1983 Davenport 1994 East Moline Indeterminate Fort Dodge 1989 Iowa City 1984 Moline 1994 Rock Island 1992 Council Bluffs 1984 Des Moines 1985 No listing No listing Keokuk Expired and not renewed KANSAS Andover Arkansas City Belle Plaine Buhler Caney Cheney Cheriyvale Clearwater Derby Douglass Eastborough EI Dorado Fort Scott Frontenac Goddard Halstead Haysville Hesston Humboldt Independence Maize Newlon N. Newton Pittsburg Sedgwick Towanda Valley Center Wichita Yates Center Abilene Atchison Emporia Hutchinson Junction City Lawrence Leavenworth Manhattan Parsons Salina Topeka KENTUCKY No listing 1997 1998 1981 1981 1982, 1984 1990 1981 1983 1982 1982 1998 1998 1981 1984 1981 1983 1981 1994 1990 1981 1983 1984 1998 1981 1981 1987 1984 1994 1986 1982 1986 1984 1986 1992 1983 1988 1996 1987 1988 Ufflify Iowa -Illinois Gas and Electric Co. Iowa Power and Light Co. (controlled by Iowa Resources, Inc.) Iowa Public Service Co. Iowa Southern Utilities Co. Union Electric Co. Kansas Gas 8 Electric Co. Kansas Power 8 Light Co. Louisville Gas 8 Electric Co. Mlrnnrll Mrn RY 1—JOR-"-MICR+LA M, CEDAR RAPIDS • DES MOINES comments List represents "more important - communities.- .M000Y•s, p. 620 IPSL's other franchises are of 25 years duration expiring through 2005. u000Y•s. P. 608 Franchises granted by referendum subject to 25 -year limit. IPsc served 156 communi- ties with electric franchises as011979.Five i franchises were approved in 1979. M000Y's, P. 632 Franchises expire through 2004. MOODY S. P. 1442 In the opinion of counsel, lack Of franchise does not materially aflecl companv's opera. lion in such municipality." Mocors, P. 1421 Listing represents cities with more than an•s, p. 657 1,000 population. State law provides that any municipality may purchase private facilities at fair cash value, the price to be determined, subject to jUdl- clal confirmation, by commissioners. ionefs, p. 1458 i �I r State constitution(1891) prohibits granting of franchises for more than 20 years—ex- cept Louisville where company claims per- petual franchise. Louisville sued in 1939, saying ordinance of 1890 did not grant any franchise at all. Suit has been dormant since 1945. M000Y's, P. 1477 continued on page 58 55 PUBLIC POWER November-Deccmber 1961 aaI r JI I � rxifROF 11 MCA NV � JORM' MICR46L'A9- CEDAR RAPIDS •DES I401NES I Holds franchises expiring from now to 2036 in these communities. M000Y's, p. 232 M000ys. p. 284 MOODY's, p. 2242 MOODY's, p. 535 MOODrs, p•2224 Rai Franchise /1 Place Expiration Uflllfy fommenh Ashland 1989 Kentucky Power Co. Municipality mustattemptto purchase Hazard 1988 (controlled byAmerican existing electric property ifitdecidesloac- Pikeville 1991 Electric Power Co.) quire an electric property. List represents Bunkie Notgiven "largest cities." MOODY•s, p. 971 Campbellsville 2000 Kentucky Utilities Co. List represents "larger cities," Danville 1996 Not given MOODrs, P. 670 Elizabethtown 2000 Notgiven Georgetown 2000 Notgiven Lexington 2000 Nolgiven Maysville perpetual Notgiven Morehead 1995 Notgiven Middlesboro 1988 Nolgiven Paris 1997 Notgiven Radcliff 1993 Nolgiven Richmond 2000 Notgiven Somerset 1986 Nolgiven Winchester 2000 Nolgiven I � rxifROF 11 MCA NV � JORM' MICR46L'A9- CEDAR RAPIDS •DES I401NES I Holds franchises expiring from now to 2036 in these communities. M000Y's, p. 232 M000ys. p. 284 MOODY's, p. 2242 MOODY's, p. 535 MOODrs, p•2224 Rai LOUISIANA Abita Springs Notgiven Central Louisiana Electric Co. Baldwin Not given Basile Nolgiven —� Berwick Nolgiven Bunkie Notgiven Camptl Notgiven Colfax Not given Coushatta Notgiven Cheneyville Notgiven Covington Nolgiven Crowley Notgiven .� Dequincy Notgiven Deridder Nolgiven Eunice Notgiven Glenmora Nolgiven Jeanerette Notgiven Kinder Nolgiven Lacomb Nolgiven Lecompte Notgiven Loreauville Notgiven Frankllnlon Nolgiven Breaux Bridge Nolgiven Leesville Nolgiven Mandevilte Nolgiven Mamon Nolgiven Mansura Nolgiven Mansfield Notgiven Merryville. Nolgiven Many Notgiven New Iberia Notgiven Oakdale Notgiven Pearl River Notgiven Pineville Notgiven Pleasant HIII Not given { St. Landry Notgiven J Simmesport Notgiven Slidell Notgiven Ville Platte Notgiven Washington Notgiven Pollack Nolgiven Zwolle Not Given Bossier City 1980 Southwest Electric Power Co. Shreveport 1987 (controlled by Central& Southwest Corp.) Now Orleans Indeterminate Now Orleans Public Service Co. Baker 2032 Gull States Utilities Baton Rouge 1988 Denham Springs 2032 Jennings 2032 Gonzales 2034 .J Lake Charles 2031 Port Allen 2032 Sulphur 2032 Zachary 2034 Amite 1999 Louisiana Power& Light Co. S Arcadia 2003 (controlled by Middle South Utilities) Bastrop 2001 I" 38 PUBLIC POWER Novembcr•December 1981 I � rxifROF 11 MCA NV � JORM' MICR46L'A9- CEDAR RAPIDS •DES I401NES I Holds franchises expiring from now to 2036 in these communities. M000Y's, p. 232 M000ys. p. 284 MOODY's, p. 2242 MOODY's, p. 535 MOODrs, p•2224 Rai Place Franchise Expiration Utility Comments Bogalusa 2005 Delhi 1999 Donaldsonville 1987 Ferriday 2001 Grambling 1995 Grammercy 1997 Golden Meadow 1984 Gretna 2003 Grand Isle 2003 Hammond 1988 Harahan 1997 Haynesvllle 1988 Homer 2037 Jena 1991 Kenner 1998 Kentwood 1998 Lake Providence 2036 Lutcher 1997 Marksville 1986 New Orleans (a section) Indeterminate Ponchatoula 1996 Rayville 2039 Springhill 2000 Tallulah 1999 Thibodaux 2036 West Monroe 1991 Weslwego 1986 White Castle 1988 Winnsboro 1986 MAINE' Indeterminate Bangor Hydro•Eleclric Co. Rights to engage In business as a public No listing Indeterminate Central Maine Power Co. utility are regulated by municipalities from whom the company has obtained locations covering existing line. cMPc slates all Iran. chisesare indeterminate. MDODY's, p. 242 MARYLAND Baltimore No listing No time limit Baltimore Gas B Electric Co. Potomac Edison Co. MASSACHUSETTS* Indeterminate Boston Edison Co. Indeterminate Eastern Edison Co. (controlled by Eastern Utilities Associales.) Not listed Fitchburg Gas 8 Electric Lighl Co. MICHIGAN Not given Indiana 8 Michigan Electric Co. (controlled by American Electric Power Co. ) No lisling Consumers Power Co. No listing Detroit Edison Co. All franchises in communities served have no time limit. M000rs, p. 1014 "Franchises extend over a period of years.:." MOooY•s, P. 915 Company operates under charter granted by slate, with unlimited time service in com- munities. Municipalities may provide their own service upon a formal vote of municipal authorities and upon referendum in cities. Slates statutes require the I a municipality that decides to provide its own electric ser- vice buy existing lou properly at prices fixed by the Massachusetts Department of Public Utilities. MOODY -S. P. 190 MOODY S. P. 448 "Under laws of Massachusetts a municipality by appropriate vote may enter into. . . Ine electric business and purchase the facilities of the utility serving such municipality." MOODY s. p. 1249 MOODY's. P. 959 MOODY15, P. 1165 Holds live franchises running for 20 years; remaining were granted for 30 years and now have "various periods" left to run. moony -s. p. 1204 59 PUBLIC Powcx November -December 1981 aa� 1 Mlrhnr111xPn Av DORM""`MICRf�CAiO - { CEDAR RAPIDS •DES MOINES E - r NEVADA Franchise 2004 f Pk Place Excitation Utility _.mments Nye County MINNESOTA Carson Cily/Co. 1961 / 1990 Douglas Co. d ii Crystal 1985 Northern Stales Power Co. Minnesota statutes provide that any city or Gabbs Cottage Grove 1988 (Minn.) village may purchase ... the electric prop - November -December 1991 Eagan Twp. 1994 allies of utility companies at the end of Golden Valley 1999 every five-year term of a franchise grant Faribaull 1985 upon the approval of a Iwo -thirds majority of Hopkins 1986 the electorate... Minneapolis... provides Inver Grove Hts. 1989 for payment of 3 percent of gross revenues �I Mankato 1993 derived from sale of electricity within corpo• I Maplewood 1998 rate limits of city. Company has adjusted its i� Minneapolis 1991 rales in Minneapolis to cover additional New Brighton 1998 charge. St. Paul permit provides for pay - Northfield 1990 menl to city of annual license fee of 8.7per- Red Wing No time limit cent of gross earnings derived within corpo- Q St. Claud 1987 rate limits and specifies rales for such utility St. Paul 1984 services. Insoles instances, operations are ' Winona 1982 being carried on in communities where Iran-, 7 chises have expired. M000rs, p. 3203 Albert Lea Not given Interstate Power Co. Moours. p. 1421 1 MISSISSIPPI r� Biloxi 1996 Mississippi Power Co. Company holds non-exclusive franchises in Gulfport 1996 (subsidiary of Southern Co.) 52 incorporated municipalities in which it Hattiesburg 1996 operates. Such franchises expire In 1996. Laurel 1996 List is "principal cities served." Meridian 1996 M000Y•s. P. 2759 Pascagoula 1996 MISSOURI O Kansas City No time limit Kansas City Power d Light Co. Other KCP&L franchises expire in various years from now to 1999. M000rs. P. 1421 Boonville 1983 Missouri Power B Light Co. Incorporated communities have authority to - Brookfield 1997 (controlled by Union Electric Co.) grant fraanichises for a term not more than 20 Jefferson City 1981 years. Upon expiration of franchise. Kirksville 1996 municipality has no direct statutory authority to Mexico 1997 acquire exlsling facilities by condemnation, .� Moberly 1983 however, it can under certain circumstances - force a utility to remove Its properly from the streets. M000rs. p. 290 ' - SI. Joseph No time limit St. Joseph Light & Power Co. Holds franchises in 52 other communities with expiration dates before 1999. .. MOODY,& p. 3360 Belton 1986 Missouri Public Service Co. List shows 10 largest communities Blue Springs 1990 served by company. M000Y•s. p. 2263 j Grandview 1982 Kansas City (part) 1991 Lee's Summit 1982 Liberty 1988 Nevada 1984 L:) Sedalia Warrensburg 1990 No lime limit St. Louis No time limit Union Electric Co. MOODY S. p. 2887 E. St. Louis 2007 _ Joplin No lime limit Empire District Electric Co. u000Y•s. p. 1242 MONTANA V Kalispell No lime limit Pacific Power 8 Light Co. M000Y•s, p. 2501 No listings Montana Power Co. Claims perpetual rights, per slate law of March 7, 1907. M000Y•s. P. 2274 NEVADA Las Vegas 2004 N. Las Vegas 2005 p Clark County 2004 Henderson 1999 Nye County 1981 Carson Cily/Co. 1961 / 1990 Douglas Co. d Town of Minden 2005 Eureka Co 2012 Gabbs 2019 J 60 Pum Ir PowPR November -December 1991 Nevada Power Co. Sierra Pacific Power Co. i Mlrenr Ti MFn RY JORM:' MICR6LA9 CEDAR RAPIDS • DES M014ES M000Y's. p. 2290 Company has non-exclusive franchises or revocable permits, in fact by grant in most cases for specified terms of years, or in el- lucl by aequloncunsu to carry on bualnuus in the localities In which the respective opera - as i ti n G Place Humboldt Cc Lander Co. Lovelock Lyon Co. Mineral Co. Pershing Co. Reno NEWJERSEY• NORTH CAROLINA Franchise Albany Expiration Utility Imments Ouarterly business license lions are now conducted ... Franchise 2018 requirements of the various cities and 2019 counties provide forve in 2020 based on gross revenues or nal prolils from a or prows 2000 operations... M000Y•s. p. 2705 2019 New York State Electric 2005 the towns In which it operates. List repre- 1981 Norwich 1982 sents "most Important communities." NEWJERSEY• NORTH CAROLINA Albany Atlantic City Wlldwood 2005 2015 Atlantic City Electric Co. Company derives Its right to engage in All others No time limit No time limit business from two acts of the New Jersey Rochester No time limit Rochester Gas d Electric Corp. legislature and has obtained consents in all 2009 New York State Electric Lockport the towns In which it operates. List repre- 8 Gas Corp. Norwich 2001 sents "most Important communities." All others No time limit M000Y•s, p. 176 NEW MEXICO Williston 1988 Carlsbad Clovis 1992 1990 Southwestern Public Service Co. M000rs, p. 3417 Roswell 1986 (Minn.) Las Cruces Hatch 1993 1993 EI Paso Electric Co. M000rs, p. 1230 Luna Co. 1992 Ohio Edison Co, . Mesllla 1986 than 25 years. M000Y•s, p. 2441 Otero Co. 1981 No list Jersey Central Power 6 Light Co. ' 62 PUILICPOWER November•Deccmber 1981 (controlled by General Public Utilities Corp.) NEW YORK• NORTH CAROLINA Albany No time limit Niagara Mohawk Power Corp. Buffalo No time limit Syracuse No time limit M000rs, P. 2918 Rochester No time limit Rochester Gas d Electric Corp. Geneva 2009 New York State Electric Lockport 2005 8 Gas Corp. Norwich 2001 M000y,s, p. 3140 All others No time limit No listing Long Island Lighting Co. No listing Central Hudson Gas 6 Electric Corp. No listing Consolidated Edison Company of New York MOODY's, p. 2319 M000rs,p.3344 In the opinion of company counsel the company has valid franchises from the mu- nicipalities In which It renders service, with- out material restrictions. m000rs, P. 3191 "Company Is confident of Its ability to obtain renewals or extensions of franchises atexpiratlon,..." M000Y's, p. 692 Company claims 0nlint tied duratlon french lees for all communities in an area 10 ml les south of Albany to 30 miles north of New York City. MOooY•s, p. 204 MrronrnMrn nv I IJORM "MICR## AE1 ' CEDAR RAPIDS • DES MOINES NORTH CAROLINA Roanoke Rapids 1989 Virginia Electric and Power Co. Ahoskle 1997 M000rs, P. 2918 Williamston 1986 ID NORTH DAKOTA Dickinson 1985 Blsmark 1987 Montana Dakota Utilities Co. M000y,s, p. 3140 Mandan 1991 Williston 1988 Fargo 0 limit Grand Forks 1908 1988 Northern Slates Power Co. M000rs, p. 3202 J 7 Minot 1992 (Minn.) OHIO i i Akron No time limit Lorain Notimelimlt Ohio Edison Co, Ohio franchises customarily run not more ' Mansfield No time limit than 25 years. M000Y•s, p. 2441 Springfield 1985-'""""-"" r 62 PUILICPOWER November•Deccmber 1981 I MrronrnMrn nv I IJORM "MICR## AE1 ' CEDAR RAPIDS • DES MOINES ■. H Franchise Place Explrallon Warren 1976' Youngstown 1994 *Under negotiation Toledo Indeterminate Findlay Fostoria Ironton Portsmouth Canton E. Liverpool Fremont Lancaster Lima Newark N. Canton New Philadelphia Steubenville Tiffin Wooster Zanesville Columbus Dayton Cincinnati No list OKLAHOMA Ada Alva Ardmore Bethany Bristow Del City Durant El Reno Enid Guthrie Holdenvllle Midwest Clly Moore Muskogee Nichols Hills Norman Oklahoma City Pauls Valley Poteau Sapulpa Sulphur Shawnee Seminole The Village 1984 1992 1999 1975 Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate Indeterminate No time limit No time limit 2003 1994 1987 1991 1985 1997 1997 2000 1998 1998 2004 1992 1989 2001 2002 1996 2001 1985 1986 1984 1993 1980 1990 2002 utility Toledo Edison Co. Ohio Power Co. (controlled by American Electric Power Co.) Columbus 6 Southern Ohio Electric Co. (controlled by American Electric Power Co.) Dayton Power and Light Co. Cincinnati Gas 8 Electric Co. Cleveland Electric Illuminating Co. Oklahoma Gas and Electric Co. Comments In the opinion of counsel franchises exist as long as parties mutually agree thereto, sub. jecl to the General Code of Ohio, pursuant to which a public utility cannot abandon ser. vice at expiration of a franchise granted after May 16, 1919 without consent of Public Utility Commission of Ohio and a public Lill. ity cannot be ousted from rendering service after expiration of Its franchise except with consent of Puc. M006Y's, P. 3477 Indeterminate franchises were granted prior to 1909 and have been held by the Supreme Court to be loran unlimited time and not subject to termination at 'more will' of grantor municipality. List represents cities of 15,000 or more. M000Y's, p. 980 MbooY•a, p. 950 MOODY•s, P. 1180 Monors, p. 1096 " . franchises granted by state of Ohio and by consent of municipalities." M000Y's, P. 333 M000Y's, P. 2467 �. Warr Acres 2001 Woodward 2DD2 Wewoka 1896 Je Bartlesville Broken Arrow 20DO 2000 Public Service Company of I" Company "oporerved... franchise {' Chickasha Clinton 1985 and Southwestern Corp.)Central and Southwestern Cop. repre principalcitiesImportant oerved...."Listrepro- senls more Important elites. M000Y•s, P. 273 j Duncan' 1998 y 199 Henry enryolle 19011 I! 63 PUBLIC POWER November -December 1981 h � If I Minanrll Mrn BY -JORM - MICR�LA9- ---J LCEDAR RAPIDS •DES MOINES ' - Philadelphia tiancrose u000ys, p. 3203 Place Expiration Hugo 1998 � M Idabel 1993 Expiration dates are forcommunitles of { Lawton 1998 McAlester 1999 2008 Okmuigee 1999 Dayton Sand Springs 2002 j Tulsa 2000 Vinita 2003 r'1 'Competes with city Charleston 1992 OREGON No lime limit ". No listing Astoria 1990 Albany No time limit 1 Bend No time limit Orange Coos Say 1991 Corvallis 1986 Grants Pass 1988 - 1 Klamath Falls 1982 Medford 1982 Pendleton No time limit Portland 1986 Roseburg 1996 Portland No time limit Salem No time limit - Nyasa 1998 Ontario 1990 PENNSYLVANIA* Greenville No time limit New Castle No lime limit Sharon No time limit Sharpesville No time limit - Philadelphia No time limit u000ys, p. 3203 Pittsburgh No time limit "Others" After 1980 Beaumont Boyertown Gulf States Utilities Co. Expiration dates are forcommunitles of { No list 2020 Buller 1989 2008 Clarion 1988 Dayton Kittanning - 1998 j Lear: uig 1994 Waynesburg 1988 SOUTH CAROLINA Charleston 1992 . Columbia No lime limit ". No listing Navasota Utility Pacific Power d Light Co. Portland General Electric Co. Idaho Power Co. Pennsylvania Power Co. (controlled by Ohio Edison Co.) Philadelphia Electric Co. Duquesne Light Co. Metropolitan Edison Co. Pennsylvania Electric Co. West. Penn. Power Co. (controlled by Allegheny Power System) South Carolina Electric 8 Gas Co. Duke Power Co. No lisling Carolina Power d Light Co Comments M000Y•s, p. 2501 M000Y•s, p. 3308 State statutes require ipc to get consent from counties. MOODY•s, P. 584 MOODY•s.p. 2457 MOODY,%p. 2560 MOODY•s. P. 1217 Municipality has the "right to purchase facilities at any lime, at a price set by the assessor...." MOODY•s, P. 1279 MOODY•s, P. 1290 Has non-exclusive and unlimited charter rights in 43 municipal divisions, except for (hose listed. McooY•s, p. 925 M000Y•s, p. 3368 "Most franchise rights inured to the company by virtue of franchise rights of subsidiaries since merged. Electric fran- chises of the company are non-exclusive." MOODY•s, p. 424 -gal SOUTH DAKOTA Sioux Falls Rapid Cily No time limit Northern Slates Power Co. (Minn.) Black Hills Power and Light Co. u000ys, p. 3203 1 TEXAS Beaumont 1996 Gulf States Utilities Co. Expiration dates are forcommunitles of { Bridge City 2020 more than 5,000 population. M000vs, p. 535 Conroe 2008 Dayton 2007 j Groves 2009 Huntsville 2008 Madisonville 2007 i Navasota 2008 Nederland 2009 Orange 2010 Mlrtinrtl up RY JORM"MICR AI3' - 1--� CEDAR RAPIDS DES MOINES 63 PUBLlc PowEit November.December 1981 I Franchise r•'°"w },y Place Expiration Utility .:emments Port Arthur 2014 Port Neches 2008 Silsbee 2008 Vidor 2010 West Orange 2010 Cleveland 2008 '- Alice Corp CorpusChristi 2007 2000 Central PowerBLighl Co. List gives more Important communities. Dal (controlled by Central B Southwest Corp. Edinburg 1994 M000vs, p. 266 Harllnlon 200E 2004 n • Laredo 1992 i' Kingsville 2007 McAllen 2000 rl San Benito 1999 i Victoria 2008 Abilene Alpine 1986 2023 West Texas Utilities Co. Company holds non-exclusive franchises In Ballinger .1990 (controlled by Central B Southwest Corp. 81 Incorporated communities. Expiration Childress 1891 dates are for•more important communities.' Cisco 1991 M000vs, p. 292 San Angelo 1986 -' Stamford 1991 Vernon 1991 Henderson Kilgore 1996 Southwest Electric Power Co. ' Longview 2001 (controlled by Central Corp.) M000r•s, p. 284 Marshall 1994 2002 Mt. Pleasant 1984 +J Texarkana 1982 Anthony 1983 EI P ; I EI Paso 2001 aso E ectric Co. M000vs, p. 1230 L - { Van Horn 1983 $ 100,000,000 Massachusetts Municipal Wholesale Electric Company Power Supply System Revenue Bonds 1981 Series B The nndersi,enrel arted na Rnnnrial:ldri.mr to the I Lrsnrhrurlr..I Municipal II'ho/cwdr h7rrtrir Cunrpun r in this transaction. LAZARD FRA RES & Coo 66 cPOweR November-December19Bl _.._..._....._____ MlroArp Mrn nV JORM' MICR#LAE1 I CEDAR RAPIDS •DES KDIYES I all if r - W Place Franchise Expiration No listing Houston Lighting and Power Co, ' Amarillo 1988 Borger 1998 Lubbock 1984 Pampa 1999 Plainview 1982 Addison 2003 Allen 2003 Athens 1994 Balch Springs 2004 Bedford 2003 Beflmead 2004 Balton 1985 Bonham 1991 I Brownwood 19115 Cameron , 2000 Carrollton 2013 I Cedar Hill 1989 Clarksville 2003 Cleburne 1987 Colleyville 2006 The Colony 2027 Comanche 1988 Commerce 1998 Copperas Cove 2013 Corsicana 1993 Crockett 1993 Decatur 20DO 1988 iDenison DeSoto 1999 Diboll 1987 Duncanville 1997 i 1 Utility .+.. Comments ` Houston Lighting and Power Co, ' Holds 50 -year non-exclusive franchises in (controlled by Houston Industries) 84 communities: none expire before 2007. - u000rs, P. 564 , Southwestern Public Service w000rs, p. 3417 Texas Power a Light Co. Company has franchises to operate in 263 cities and towns: these are free from un- usual or burdensome requirements. In Bon- ham, Temple, Tyler, Taylor, Paris and Sulphur Springs right is reserved to cities to purchase company's properly within said cities al certain specified periods or at ex- piration of franchises, generally at the then , lair value of the property. The majority of ! •I the franchises extend beyond maturity of outstanding bonds. List represents Incorpo- rated municipalities with a population of �, I more than 4,000. u000rs, p. 2851 } $7501000,000 continued on page 70 Washington Public Power Supply System $315,000,000 Nuclear Project No. 1 Revenue Bonds, Series 1981D $210,000,000 Nuclear Project No. 2 Revenue Bonds, Series 1981A $225,000,000 Nuclear Project No. 3 Revenue Bonds, Series 19818 The undersiFnrd acted as Financial Adri.sor to the Supply System in this transaction. LAZAM) FRkRES & CO. 67 Pua1.1c POWER November -December 1981 aai r Crerronrnurn av [JORM..._MICR+LAB'.. j CEDAR RAPIDS DES MOINES I1 I i r J� __a. 1 1 _w Franchise 1 , Place Expiration Unary wmments 70 PUEUCPow ER Novembcr•Deccmbcr 1991 Virginia Electric and Power Co. Appalachian Power Co. (controlled by American Electric Power Co.) List shows Incorporated communitles with population of more than 5,OOD. MooerS,p.2498 MlfaeFll lArn RV JORM--MICR+CAB" -� CEDAR RAPIDS • DES MOINES Moonrs, P. 942 aa� Elgin 1996 Ennis 1985 r Euless 2003 i Farmers Branch 1991 Galnsv)lle 2009 O Garland Grapevine 1990 2010 Harker Heights 2011 Hewitt 2010 - Hillsboro 1995 Irving 1990 Jacksboro 2011 • Kaufman 2010 Killeen 1988 Lancaster 2004 Lufkin 2010 McGregor 2000 i McKinney 1993 Newport News Mesquite 1990 Unlimited' Mineral Wells 2005 :. Nacogdoches 1988 Palestine 2005 - - Paris 1997 Plano 2003 Richardson 2003 Robinson 2005 Rockdale 2002 . Rockwall 1009 Round Rock 2013 Rowlett 1987 ' In the opinion of company counsel. Seagoville 2013 Lynchburg - Sherman 2004 2001 Stephenville 2010 Sulphur Springs 1985 Taylor 1991 Temple 1985 . Terrell 1994 Tyler 1988 • J Waco 1991 Waxahachie 1983 Woodway 2004 70 PUEUCPow ER Novembcr•Deccmbcr 1991 Virginia Electric and Power Co. Appalachian Power Co. (controlled by American Electric Power Co.) List shows Incorporated communitles with population of more than 5,OOD. MooerS,p.2498 MlfaeFll lArn RV JORM--MICR+CAB" -� CEDAR RAPIDS • DES MOINES Moonrs, P. 942 aa� VIRGINIA . Alexandria 1990 Buena Vista 1999 ij -Charlottesville Unlimited' Chesapeake Unlimited' Clifton Forge 1999 Colonial His. 1989 Covington 2006 - j Emporia 1985 Fairfax 1982 _ Farmvllle 1992 Fells Church �. 1993 Fredericksburg 1998 Hampton Unlimited' Hopewell 1987 Leesburg Unlimited' i Lexington 1995 Newport News Unlimited' . Norfolk Unlimited' "•� Petersburg Unlimited' :. Poquoson 1983 Richmond 1987 - - South Boston 1980 Portsmouth Unlimited' Staunton 1995 Suffolk 2005 Vienna 1982 .J Virginia Beach 1993 Waynesboro Unlimited' Williamsburg 2007 ' In the opinion of company counsel. Roanoke Perpetual Lynchburg 1996 Pulaski 2001 70 PUEUCPow ER Novembcr•Deccmbcr 1991 Virginia Electric and Power Co. Appalachian Power Co. (controlled by American Electric Power Co.) List shows Incorporated communitles with population of more than 5,OOD. MooerS,p.2498 MlfaeFll lArn RV JORM--MICR+CAB" -� CEDAR RAPIDS • DES MOINES Moonrs, P. 942 aa� ti WEST VIRGINIA Franchise Place Explratlon Comments WASHINGTON I i I Yakima 1994 Paclllc Power&Llghl Co. M000Y's, P. 2501 Walla Walla 1994 ' Anacortes 1996 Puget Sound Power &Light Co. Communities with population of 5,000 or Auburn 2001 more are listed. M000Y•s, p. 2666 Bellevue 1985 Bellingham 1998 Madison Gas B Electric Co. M000Y,s. p. 3101 Bothell 1993 Northern States PowerCo. Investor-owned utilities operating in the - Bremerton 1987 (Wis.) slate of Wiscousin are subject to permits Des Moines 1990 which have no definite term but continue in Kent 1991 force until terminated according to taw or by Kirkland 1993 purchase of the company's properties therein Mercer Island City 1990 by the city or village. Each community served Mt. Vernon 1994 has the right to purchase the property for Oak Harbor 2001 such compensa lion and on such terms and Olympia 1987 condil ions set by the Public Service Com. Port Townsend 1999 mission of Wisconsin. M000Y•s. P. 3216 Puyallup 1984 Redmond 1993 Renton 1998 Sedro Woolley 1991 Clarkston 2000 Washington Water Power Co. Under laws of Washington and Idaho, Colfax 1999 control of the use of streets,alleysandpub- Colville 2001 tic places In an Incorporated municipality Is Pullman 2000 vested In the municipality and Its consent Spokane 1987 by way of franchise Is necessary to the use and occupancy thereof. wwP franchises rep. resenting 90 Incorporated communities range from 15 to 20 years. List represents termination dates in some of the larger com- munities. M000Y•s. p. 3556 WEST VIRGINIA Beckley pending Appalachian PowerCo. The list represents communities with Bluefield 1983 (controlled by American Electric population of more than 5,000. - Charleston 1996 PowerCo.) MooDy,s, p. 942 Huntington No time limit ' St. Albans 1981 South Charleston 2019 WISCONSIN* Indeterminate Madison Gas B Electric Co. M000Y,s. p. 3101 Indeterminate Northern States PowerCo. Investor-owned utilities operating in the - (Wis.) slate of Wiscousin are subject to permits which have no definite term but continue in force until terminated according to taw or by purchase of the company's properties therein by the city or village. Each community served has the right to purchase the property for such compensa lion and on such terms and condil ions set by the Public Service Com. mission of Wisconsin. M000Y•s. P. 3216 Indeterminate Wisconsin Public Service Corp. No list Wisconsin Power& Light Co. M000Y•s, P. 3003 M000Y's, P. 2989 WYOMING Casper 1998 Pacific Powe r& Lfght Co. M000Y4, P. 2501 Laramie 2001 Rock Springs Notlmelimit Sheridan 2005 Sheridan 2005 Montana -Dakota Utilities Co. M000rs, p. 3140. ! MICROFn F1rit RY 1 -DORM MICR46LAO" CEDAR RAPIDS • DES MOINES 71 ruar.rcrowER November-Decemberl9al , -y J� r ral .] .J (� APPENDIX IV City of Des Moines v. ISCC _. IA ICROF1161F11 RY �. j JORM"-MICR+CAO- 2 t CEDAR RAPIDS • DES MOINES M %FIR , IT wrom, 11 mrn ny -DORM MICR46LAE CEDAR RAPIDS - DES . MOIINES- W 12 Iowa 285 NORTH WESTERN REPORTER. 2d SFRIES decree, an attorney's mpresentation ileus Affirnicil on appeal, and cross-appeal Ph Moin• not. We are a mobile society, whose mem- dismissed. Kara:for benregularly move from place to place. al Add to this the extended interval which frequently occurs between divorce and moil. 1. Electricity 011.3(7) Jin ification.'and it becomes clear this notice Supreme Court review of decision of Diane i was not the kind calculate([ to afford Ste- State Commerce Commission on major Lur- Joh! ven an opportunity to appear and resist.iff revision proposal filed by electric utility and V That it (lid so in this case is merely rortui- was tic novo but, rather, was limited to Proctc lows and does not remove the fatal defiCien- record made before Commission, as W;Ls also verior• cy in the procedure followed. The special the review by the district court. I.C.A. appearance should have been sustained.§§ 17A.1 et ;eq., 17A.19, solid. 2. 17A.20. Con; REVERSED AND REMANDED FOR McG ENTRY OF ORDER ACCORDINGLY. 2. Electricity c-4. 11.3(1) The i Only rights which city had under Fran- ; chile agreements with electric utility were wheth, I ra\� 0 REINUMEHR561im those provided by franchises themselves, nor lo; " and record permitted finding by Commerce Power I Iowa (I Commission that it was not intended that franchise agreements be predicated on sys- Iowa -1j tem -wide recovery of fees which, under the whethe CITY OF DES MOINES. Iowa,agreement, were to be paid by electric utili- ty to city. I.C.A. §§ 476.1 et seq.. 476.,; Power V. CMe 1915, §§ 490AJ a seq.. 4911A.'_23. Comme the dis The IOWA STATE COMNIFIRCE 3. Public Service Commissions c-7 should COMMISSION, Appellee, Commerce Commission has d(legited custo r, Iowa Power and Light Company, responsibility to fix Utility rates that are commis Intervenor -Appellee. reasonable and just. I.C.A. § 476.8, ing of i cross-ap No. 62520. 4. Electricity C=11.3(1) The h Supreme Court of Iowa. State Commerce Commission's ruling ed in a Nov. 14. 197 M. that Des Moines franchise fees should be appeal: paid only by Des Moines customers of elec- 1. W;1 1 tric utility did not impair any franchise Moines r; The Polk Court, A. V. Hass and rights of city or abridge any right, of city Des Moil', "District James P. Donato, J.l.. -lenied a sutv order in under statutes providing for preservation of contracts regards to ;in order of the Commerce Com- v rights of municipal corporation acquired by of its rri;' mission relative to collection of the cost or franchise or agreement. 1,C.A. § 47623; in violau utility franchise fees by an electric utility. Cale 1975. § 400A21. 1977, ane The city or Des Moines appealed. The Z Wal Supreme Court, McGive.in, J., held that: 5. Electricity 011.3(6) ported by (1) a ruling of the Commission that Fran- Substantial evidence supported State Chise fees collected by Dus Maines should be Commerce Commission's ruling that it Under -rs of the paid only by Des Moines customers wool(] be reasonable that franchise fees col. city ordin utility did not abridge contractual rights of lected by city from electric utility be im- of the CIL; franchises the city under its franchise agreements prised upon city customers rather than with the utility, and (2) the Commission's sl%rvading*coAt of franchise over utilit ' v cus- years to ruling that it would be reasonable to collect tomem generally. I.C.A. §§ 17A.1 et seq., operate a,, such cost only from the Des Moines, custom. NAAS. sulid. 2, 17A.20. 476.23; Code 1975, public pla! urs was supported by substantial evidence. § 490A.S3. tion, and F" M %FIR , IT wrom, 11 mrn ny -DORM MICR46LAE CEDAR RAPIDS - DES . MOIINES- W r 0M r rurcnrnurn nv I I-"JORM MICR+LAB_. .1 1 f CEDAR RAPIDS • DES MOINES r" 01 _;y CITY OF DES MOINES v. IOWA STATE COMMERCE Iowa 13 ?, rY Cite s, Iowa•285 N.w:2E 12 Phillip T. Riley and M. A Iverson, Des public and private use in Des }bines. The - Moines, and John 11. Reichman of Surrey, franchises or agreement. still in effect im- Karasik, Morse & Sellout. New York City, pose on Iowa Pincer annual franchise taxes for appellant. or fees payable to the City of two percent • James R. Maret, Gary D. Stewart, and of Iowa Power's gas revenues and one per- Diane L. McIntire, Ocs bininus, for appellee. cent of its electric revenues derived from John C. Cortesio, Jr., Terry C. Hancock, sales within the municipal boundaries of the and William L. Dawe of Bradshaw, Fowler, City. .. Proctor & Fairgrave, Des Moines, for inter- The franchises do not specifically provide . ^)+ venor-appellee. a method by which Iowa Power is to recon- 'g er the cost+ of the fees. However, since - '. Considered en bane. before 1960 the fees were treated by Iowa Power as a cast of doing business and the McGIVERIN, Justice, fees were spread equally among all its cus- • " I The controlling question in this appeal is tomers, including those living outside the - .r; whether the franchise fee charged Interve- City. t { nor Iowa Power and Light Company (Iowa' On January 30, 1978, Iowa Power filed a Power) by petitioner City of'Des Moines, moor tariff revision proposal with the '•"••';.• 'j Iowa (City), should be collected only from Commission requesting increases in both I Iowa Power's customers in Des Moines or electric and natural gas rates. The revision whether that cost should hL paid as a sys- went into effect subject to refund on July - tem -wide expense b all the customers Iowa P y• 1, 1970. As a part of the revision, Iowa "�• Power serves. Respondent Iowa State power proposed to change the method of lCommerce Commission (Commission) and recovering the cost of the franchise fees. the district court ruled the franchise fee Each customer within the City would be +'r.'- should be collected only from Des Moines surcharged his respective share of the Fran- customers. City appeals. We affirm. chise, fee, rather than spreading the cost of • o' Commission cross-appeals from :pother rul- the franchise over the utility customers' ing of the district court. We dismiss the generally. The City challenged this aspect �; �`s'r • - •' _ cross -apical as moot. of the proposal by intervening in the pro- The following questions must be answer- ccedings before the Commission. low ed in our review and disposition of the 1 Testimony before the Commission estnb- 7 appeal• lished that the franchise fees were an iden- 1. When the Commission ruled the Des tifiable cost that benefited the City by re - " Moines franchise fee should be paid only by lieving city residents of taxes they would•`.` Des Moines customers of Iowa Power, were otherwise have to pay. Based on 19 15 reve- •-."•;.., contractual rights of City, which were part franchise Inca Power, nues the franchise payments made to City of its with abridged were nearly one million dollars, of which •1;'�, �.t ! in violation of section 4762M, The Code approximately one-half was paid by Iowa 1977, and 490A.23, The Code 1975? Power customers residing outside Des 2 Was the Commission's ruling sup- Moines. A witness for Iowa Power testi- ••-{;p , — ported by substantial e1'idenee? Pied it was fair to shift the cost of those ,'vf.•t ' Under the terms of two 1960 Des Moines fees to customers benefiting from the pay- city ordinances, which were ratified by vote ments. ,".; 'Nu p of the electorate, Iowa Power was granted The Commission approved the shift to franchises and the right for twenty-five City customers of the cost of the franchise years to acquire, construct, maintain, and fees finding, inter alis, that the previous .f,q i operate the necessary facilities on or under methal of recovering the ,mst of the fees public laces for the production, distribu- P P 1 was •int an inherent art of the franchise or P � ;pct.• I tion, and sale of gas and electric energy for ngreemcnt between City and Iowa Power >Y•li' i i Z,7J. r rurcnrnurn nv I I-"JORM MICR+LAB_. .1 1 f CEDAR RAPIDS • DES MOINES r" 01 _;y ink klue. 14 Iowa 285 NORTH WESTERN REPORTER, 2d SERIES and that the new method was just and reasonable. City filed petitions for judicial review, later consolidated and also sought a stay order in district court under Chapter 17A, The Code 1977, from enforcement of the Commission's ruling. Iowa Power inter- vened u rider section 17A.19(2) on the side of respondent Commission. The court (Donato, J.) denied the applica- tion for stay order. The court (Hass, J.) affirmed the ruling of the Commission. The Court found the evidence supported the Commission's finding that the new method of collecting franchise fees was just and reasonable and that there ryas no impair- ment of a contractual obligation because the franchise agreements did not define the manner of recovering the cost of such fees. [1) Our review under section 17A.20 is not de novo. We "review the record in the manner specified in § 17A.19(7) and make anew the judicial determinations specified in § 17A.19(8)." lfoffnlan t•. Iowa Depart- ment of Transportation, 257 N.W.2d 2:r, '25 (Iowa 1977); see Jackson County Public flasjohn/ v. Public Employment Relations Board, 2S0 N.W.2d 426, 429 (Iowa 1979) (quoting Hoffman). Our review is limited, as the district court's review was, to the record made before the Commission. Dav- cnlort Cmnmunityt. School District v. Iowa Civil Rights Commission, 277 N.W.2d 907, 909 (Iowa 1979); Hoffman, 257 N.W.2d at 25. I. Dirt the Cominicsionk ruling abridge Cily's contractual rights under sections 476Z',*, The C(xle 1077, and 400.4.23, The Code 197.5? City first contends the Cum. missions order, allocal.ing the full cost of the franchise fees It, City residents, abridg- es an essuntiel right acquired by the City 1. Notion q76 23(4) provides: If no, inconsistent with the provisiuns of this division: a. All rights of nundrip:d corporations un• der chapter 1e•1 In gram a person a franchise to erect, maintain, .rad nporte plants and systems for elennc light and hewer within the rorporme boundaries, and rights acquired by franchmr or agreement shall be preserved In these municipal corporations .. through its franchise or agreement with Iowa Power and therefore was in violation of sections 476.23, The Code 1977,1 and 490A.23, The Code 1975.= City claims that pursuant to the franchis. es the costs of the franchises were to be collected equally from all Iowa Power cus. tomers and that the Commission, by its order, abrogated that right. Due to their length, we do not set out the two Des Moines ordinances granting the franchises. However, the ordinances, as City partially concedes, do not prescribe the method of collecting the franchise fees by Iowa Power. City relics on what it regards as the intentions of the City and Iowa Power when the ordinances were passed by the City Council in 1960. City Points to the fact that Iowa Power had for several years prior to 1960 paid a franchise tax to City and surcharged the tax to all of its custom- ers. Also, in 1960 the president of Iowa Power in a written statement told the City Council, when it was considering the two ordinances, that"franchises have nothing to do with rates." City further argues that sections 476.23 and 490A.23 preserve rights acquired by City through its franchise with Iowa Power oven after the Commission was given utility rate -making authority by the legislature in 1963 by Chapter 490A, the Coda Section 490A.23 remained in effect until July 1, 1976, when the entire Chapter was revised to some extent as part of Chapter 476 of the 1977 Code. The present proceeding was then underway and section 476.23, The Code 1977, upon which City relies, became effee. Live on July 1, 1976. 2. Section 490A.23 provides in relevant part: All rights of municipal corporations In (ram chile and regulate use of streets, alleys and other public property, and all rights argtured by franchise or agrermrnl shall br preserved in such mumrtpnluies, escepnng only the duties and Jurisdiction crrnferred upon the cmnmmsmn in this chapter. J, utronn.urn nv JORM MICR#LAB- - h CEDAR RAPIDS DES MOINES C., 1.. re tl, n. ro Yat dr ha i I r ( ii CITY OF DES MOINES v. IOWA STATE: COMMERCE. Iowa 1 Chea:, lows, 2115 N.w'.2A 12 [21 We believe City's contentions fail Nothing Inas changed as between the for several reasons. First, the only (ran. cities and the utility. We must conclude chile rights City had were those provided that the cities' contracts are no more by the franchises themselves. However, impaired in the constitutional sense by the franchises do not state how Iowa Power the Cnmmission's new collection proce- is to collect the franchise fee. The Commis- (lure than they would be if rates were sion determined that the record did "not redesigned in other ways to increase their support the inference City argues, i.e., that burden, for example by shifting rate lev- the franchise agreement was predicated on els among residential and industrial or system -wide recovery of the fee" and refus- commercial users. The fact that the ed "lo draw such an unsupported infer• cities themselves are omsunters and sub. enee." This factual finding by the Commis- ject to higher charges docs not "impair•• sion is supported by substantial evidence on their contract; it morel '• reduces the ben - the record considered as a whole and an. efit of their bargain :Is anv rate increase swers adversely City's claim relative to the or rate design shift might do. intentions of City and Iowa Power. Second (Footnotes omitted). It is also important to fnjury Fund v. Mich. Coal Companv, 274 note that for the same reasons the court in N.W.2d 300, 303 (Iowa 1979); Catalfo 'v, AMvo found no violation of a 1915 Flurida Firestone Tire and Rubber Co., 213 N,W.2d statute, which prevented "The Commission 506, 509 (Iowa 1973). from affecting a city's right to 'continue to [31 Because no rights acquired by City receive revenue from tiny public utility as is under its franchise or agreement with Iowa now Provided . . . in any franchise." Power are impaired, sections 490A23, The 337 So.2d at 973 n.20. Code 1975, and 476.23, The Code 1977, did Other cases sustaining the Commission's not prohibit the Commission from idetermin- action are Ciq• of L•'Irnhurst v. lVesicrn ing that the rales charged City residents United Gns ,f Electric Co., 363 III. 144, 1 should include the costs of the franchise N•E.2d •139 (1936); Ci q• of !Fest Plains v. fees. The Commission has the delegated Missouri PublicService Conimhedon, 310 responsibility responsibility to fix rates that are "reasona- 5. 5V.2d 99-5 (SIo.1958); Ogden('its 1•. Public and just" § •176.3, The Code 1977;see Service Commission, 12••1 Utah •137, 2M P.2d Davenport ]Vater Company v. lawn State 751 (1953); and City of Norfolk v. Mesa - Commerce Commission, 190 N•W.2d 558.3, 592 pe:16c cC Potomac Telephone Co., 216 Ya. (Iowa 1971). 317, 213 S.E.2d 531 (1975). Several courts considering the effect of aA case holding the other way is City of collection change such ;s that proposed by }fontrose v. Public Utilities Cnnunisxion. low•:t Power have determined that no im. Colo., 590 P.2d .502(1979). There the Public pairment of a contract obligation it exists Utilities Commission ordered that municipal the franchise itself docs not derine the man- franchise charges be surchllrged to munici• nor in which the fee shall be collected. The pal resident customers. The Supreme following from City of Plant Civ.:Va • 0o, Court of Colorado, with one justice dissent - [w 337 So.20 966, 973 (F1a.1976), generally ing, found the decision of that commission defines the position of some courts that unjust and discriminatory, as well ;Is arhi. have faced the problem: Crary and capricious. However, the evi. dence before the Commission showed that The amount paid by Tampa Electric to municipal ratepayers already subsidized the each city under its franchise fee contract rural customers, both rural and municipal is the same whether the utility collects residents received benefits from the frim• the sum from some or all of its customers. chine and municipal customers ;done prm•id- Customers of Tamps Electric in each city ed the home base for the utility, which have always paid some part of the served both rural and municipal customers. amount the utility collects; the new pro- We are not faced with such it recurd in the cedure merely increases their burden• case presently before us. 2 i �••� � • YJ�. F� YC I'.'^ r.. "-,�t�2 `'C��4.1'"w•o.ti•Rl�wy�T4��.� - ..-. ... ...+��.-..rte '7`� . .�... as -- _ 1 ulranvnlnrn av I_ JORM MICR46LAB- I LEDAR RAPIDS a DES MOINES I J _y r _y 16 Iowa 265 NORTH WESTERN REPORTER, 2d SERIES �. In the present case the Commission's de. City has also argued that '+ vision did not alter the City's rights actually the Commissions stance with respect to ' given in the franchise. Iowa Power's obli- burden of proof was inconsistent and, t gallon to pay, and City's right to receive, therefore, assailable. The Court, how - the franchise fees remained. The decision ever, has already pointed Out that there 1 merely allocated the cost of the franchise was substantial evidence before the Com - fee payments directly to those who benefit- mission justifying assignment of these ed from City's receipt of such payments. identifiable costs to those receiving their [41 We conclude the franchises did not ultimate benefit. With that evidence j .. - present, the Court cannot disturb the 1 give City a contractual right that Iowa Commission's finding even if it were dis. 1 Power continue to collect the Des Moines posed to du so. franchise fees on a system -wide basis, and City has argued also that the advan- ' the Commission's decision did not impair pages that nonresident users obtain from any franchise rights of the City. Conse- the concentration of consumption within fluently, any rights City had under sections its boundaries and the consequent redue- 476.24 and 490A.29 were not abridged. tion of costs offset any burden imposed 11. Me; the Commission's ruling sup. upon those nonresidents arising tato porter/ kv substantial evidence? City con- their indirect contribution to the City's tends there wits not substantial evidence to franchise tax. Commission was right in - •_.; support the Commission's ruling. City fur- rejecting this argument for the reason, r+ i- ther claims the burden of proving the fran- among others, that there was no substan- i -i chile fee collection system should be tial evidence in the record sustaining it. ' ee, changed was on the Commission and not Commission could not avoid the conclu- {,'� City, because the Commission had approved sion found to he warranted under the law the system -wide collection basis for several by simple reliance upon an unsupported I years prior to 1976. assumption that economies are effected ':+ JSJ We have followed these in a municipality sufficient in amount to general offset a franchise fee collected by said _ rules. A rate fixed by the Commission for municipality. +. a public utility is presumed to be valid and - reasonable. The one challenging the validi- ty of a rate has the burden of proving that mission's ruling, it is unreasonable, confiscatory, excessive, whether specifically discussed or not, we +r or violative of cons immunities. have considered all contentions made by Pa'.rnport Water Company v. Inwa State City and find them without merit. We ., i{• . _j Commerce- Commission, 199 N•w.2d 563, 590 affirm on the appeal. y. .� (Iowa 1971). Commission crass -appeals from language In approving the change in method of in the court's ruling (Donato, J.) denying .� recovering the cost of the identifiable Fran- the City's petition for a stay order from ehisc fees• the Commission found the new enforcement of the Commission's derision. method to be just and reasonable. The In the ruling, the court stated methods by j Commission further found it would be lis- which any overcharges could he recouped in i the event, City prevailed on the appeal. a r,J vriminntu•y to impose those fees on ronresi- Commission objects to that statement by y dents of City who did not henefit from Cit • 1 ;. the court. We believe the district court's •• sen•idcs. statement amounted to dicta and was not r We devnn it unnvressary to detail further part of the ruling, which denied thr stay the evidentiary ra•nrl made before the order. In any event, the Commission's Cnmmisdon in aldiiion to that previously craws -appeal is snout because City has not ! stated. However, the record supports and prevailed on its appeal. No refund is neves- . IY- we agree with the following from the dis- nary. We give the cross-appeal no further trict court's ruling: consideration. i v 'Via {1 t ' _�.,'.r.nulw..f�..tam.w�.,A:.y,rr,,.I•w'.i:..�1�W:.1R•rnwi'>KA.W>y111m1i�1M'�Ji v no. IAICRnrtldra Ry DORM MIC RI�LAB I CEDAR RAf1DS • DES MOINES J_ !1 COMMITTEE ON PROFESSIONAL ETHICS v. GREEN inwa 17 Cit, at. Iowa 285.N'.W.2d 17 AFFIRMED ON THE APPEAL; HARRIS, Justice. that to CROSS-APPEAL DISMISSED. Nc must decide, on a do novo review of commission, the ...;putt .cot and, the report of our grievance except McCORMICK appropriate action in this attorney L{iscipli- .rt, how- oat there All justices concur and ALLBF.E, JJ., who take no part. nary proceeding. We are convinced the license must be revoked. :he Com- The respondent, Robert James Green, of these docs not dispute the commission's carefully ing their O SAnheuBEBStS1EM """' considered report. Respondent W35 29 •evidence r old at the time of the hearing. Fol - turb the years lowing his admission to the bar in August were dis- 1977 he never engaged in the active prac- is advan- Lice of late. At the time of the occurrences Which rise to this proceeding Iw was vain from COMMITTEE ON PROFESSIONAL ETH- work living in a small Iowa town, working as a in a o -'n within nt reduc- ICS AND CONDUCT, OF the IOWA BAR ASSOCIATION, Complain- self-employed painter. imposed STATE The respondent became acquainted With from ant. David Ogdon 1I sometime in 1973. There - .ng lie City's V. after Ogden was convicted in the federal . right in Robert James GREEN, Respondent. courts of importing marijuana and served Ogden then reason,No. 62955. time in a federal penitentiary. to his home in Clinton, Iowa, substan- l wining it. returned Supreme Court of Iowa. where he, his wife, and his mother were all c conclu- engaged in the real estate business. Ogden r the Ian• Nov. W, 1979. was a handyman who bought older houses, .upported improved them, and sold them for a profit. effected Notwithstanding Ogdens brush with the In a disciplinary proceeding, the Su- federal authorities the respondent remained _,Lnount to t by said preme Court, Harris, J., held that conviction on friendly terms with him. - of an accommodation controlled substance On October 9, 1977, Ogden asked respon- - the Com- of warrants revocation of liceiase. dent to help him paint a house in Clinton License revoked. which he agreed to do. lie worked on the house on October 10 and 11, spending the •r not, we evening of October 10 at the Ogden home. -' made by Attorney and Client 0=99, 58 It was his intention to stay in Clinton until crit. We Conviction on guilty plea to reduced the work was done charge of ;in accommodation controlled sub- On October 11 Ogden told the respondent language I denying stance offense, a serious misdemeanor, war- he was going to Iowa City for a karate -der from rants revocation of license. I.C.A. §§ 204: lesson. The respondent asked to go along ✓. decision. 401, solid. 1, 204.410; Code of Professional with the idea of having a couple of drinks, ethods by Responsibility, ECl-1, ECl-5, EC9-0; picking up his wife in West Branch, and cooped in DRi -102(A)(1, 3-0), 40 I.C.A. eh. 010 Ap- returning to Clinton with her. He denies pendix. tiny conversation Ogden about drugs ;e, appeal. ement by before leaving Clinton at 6;00 P. on. in 09- ict court's den's car. En route to Iowa City, Ogden -d was not Roger J. Kuhlc, Des Moines, for tom- told respondent of his intention to deliver I the stay plainant. cocaine to the home of Karen Jensen in ' smission's William L. Kutmus, Des Moines, for re- Solon, Iowa The respondent knew Karen former medical student. Accord- v has not ,1 is ne'e•CS- spondenL Jensen, a ing to respondent's testimony he told Ogden further it was a bad situation for him and asked to •:u Considered en bane, i IAlfanG tl IACn AY I"JORM--MICR#LAB- I I CEDAR RAPIDS • DES MOINES 7 _y it n n L. . 1 APPENDIX V Materials from the 1934-38 franchise renewal controversy --two chronologies, bribery case i1 PA I roup II mrn NV . DORM"" MICR+L-A 13* CEDAR RAPIDS •DES MDIYES I 1 ( u r I 'J I I I� I I � I i lJ L. . 1 APPENDIX V Materials from the 1934-38 franchise renewal controversy --two chronologies, bribery case i1 PA I roup II mrn NV . DORM"" MICR+L-A 13* CEDAR RAPIDS •DES MDIYES I 7 1 ( u r I i i i_ 7 ( 1 . r Iowa City Introduction �j / + , ,,.,. It,I Iowa City, Iowa,,%has for years been electrically serviced by the Iowa City Light and Power Company, a subsidiary of United Light and Pourer Company. Its attempts to secure low rates for this service resulted in a'¢e movement toward a municipally-otrned plan never achieved one;riox-�ot�e= !1 nwnn+ �i—esnaof2y-ot"Stat�Yesde>'ra-rosrci•-exhcuaa.,�tt_. -their: .glut the threat of oomnotition has, ao_OLten.-•true, resulted in a substantially lower rate schedule for the consumers of Iowa City. The Company taction were more than typical. *W resorted to paid propaganda against municipal owner- ship, dilatory and expensive litigation, pressure - politics, and finally to what several judges did not hesitate to brand as bribery to owing an election stray from municipal ownership. In its early stages the movement was not defini- tive in the direction of either competition by a new municipal plant, or purohaee of the existing plant. Early overtures by the City toward purchase were frustrated immediatoly by excessive demands by the Company.,_ ' is •phgbt Lo:r,-16 ; they -shall -not -pr. c . taotic lir. Guy C. !y;Ors, to invostmont banker from Ne -.v York, rwdo ;enrol j ansa^..oessful nttomptc to bring the city rand the company togotne; on un agreed purohuso pries.. I impetus for municipal.ownerahip, although su from a desire to obtain an'essantially public service p at a price fair to the'ublig may be given direction by people'whosee'in it's force for the progress of' dltmocX"r. Intellectual guidance for the movement in Iowa City came largely from Professor J. Pan der Zee of Iowa State University who spent individual time, money and effort In its support. He was met by lrru ;u �Ppts of "lunacy", "oonfiscation", and "social- ism", and a series of blocking moves that has ultimately exhaua.tad him and ebege&.the project. uvoncnucn pv 1 JORM MICRbLAB CEDAR RAPIDS •DES M018E5 ! i . __ __ ---;:: ter• � J M r 1 i 2 i Resume of Case History In 1909 the City ? Cit Light and Porrer Companytehich+,,aso'tosexpire ill o the Iowa 1934. In a special election on October 11, 1932 the question of renewal of the franchise was submitted to voters of the City. Tile electorate by a 3-1 vote refused to accede to a renewal (J, Van der Ze et al_ .4ati�/ I V. Means et al., 225 Iowa 871, 261 1J, .�00- pri It; a b� ae paying high rates, and welco;sd the I opportunity to give expression to its disapproval. Immediately the Camnany reduced its rates 13x, 1),' 1 On April 17, 1934 the electorate was called to Pass upon an ordinance to establish a ownediplant by the flotation of $917pproved by a municipally- mumunicis revenue I i bonds The proposal was ea majority. In it July of that year application for a (••;rant eind loan I' made to the Public Works Administration was approved. Another rate reduction b the Cor..nan follored (Ez. 1), The Public Works Administration's offer of a grant of 1413,000 was, in October, of the came yerr, rejected by the City Council which tabled the erdittanea voted on In Aurll--an action characterized by leaders of the municipal ownership movement as nullifying the majority vote.(J. Van der Zee v, lfeane, supra; 1;;t, 1), A "Municipal -Ownership Non -Partisan" party placed the Issas of municipal ormerehip squarely before i_ the City in the regular elections of March, 1935• 1 All its candidates were elected to office. Forthwith the application to the Public Works Administration was renewed. On ]lay 27, 1935, the new Council requested the Company to submit a price for its Iowa City distribution system. In an open letter to the Mayor and its consumers the Company refused to part with Its distribution system unless its entire plant were purchaced for a sum of i Tha eginlativ authority for,tha proceduro is to be I` foun ir, ti,c d, ' v-calloii 3lmmer Lav (Iowa 8ta ,, secs. 6134 d. land 61A4 -'d2), hich permits Municipal ties,to Finan emunleIP�llyrowneh, utilitled, Out" Of future reveh Ies, grid prphhibitEl f P ine>irrinr of general ob�`iga ono, •,or,, payment'; ou,.of tax 'revenues for the I Purpose;�}ie ,�iG)}ificanco' of. thio in auaessiag co`pan�prop ands"hill he apparort later. i I , 1' -ntran`nlurn aJORM MICR6L ,AB 1 J . ' CEDAR RAPIDS DES I401NE5 I _y 1 �. / 3 1� ' $1,125,000 (Ex. 10). It did not, however, wish to sell, and.presoed upon its consumers the proposal to reduce Its rates further for a period of two years if the project for municipal ownership were dropped (Ex. 10). Not even its orm price was sufficient to urge the Company to forego the opportunity for continued profits. Although it requested $1,125,000 --whereas the City had been empowered to spend only $917,000; offered Its entire plant --whereas the City had negotiated only for the distribution system, the generating system having been variously categorized as "depreciated" (Ex. 25) and "ru=age"2 (Ea. 32), and although, by reason of the lapse of its franchise, It was a tenant Ij at sufferance of the City's streets, it was still willing to cut rates Inorder to avoid being purchased-- even at its om prig In August, 1935 the Public Works Adminiotratlon - C) allotted G413,000 to the City, advancing almost ::30,000 In cash (J. Van der Zee v. N.eans, supra; Exs. 1 and 7).,�(` The hopelessness of negotiationa for purchase had been W i demonstrated. Engineers were retained to draft plane I and sneeiflcatlons for a new plant, and notices were IU1_Rr_1rief-•as•appellees in an appeal• from ad -order FermSt g. tho Company- to-•intervone in a euit'for 1R;}nnct n tooprevent•the establishment of,tho plant (Abbot al. v. CS_ t of Iowa City.et a3. (Sun. Ct. p' Iowa, squ Sept erm, y ) t!ao aefondero-or* no p_Q��t_atateel. "The location of Its (tile company's) 1 generating ply t is historical rathar than. eoonomie and soientifso. It is an out -of fb to two-phase eurrent"ayotom, a �e of the generating unite of which were oecond-hand >,rh they were' installed 17 years ago. Tlie generating apacity'is insufficient -and a -large-part of the Curr it aold in Iowa'City 1a pur- chased from a plant ices e� in Cedar Aapids.' (p. 2) 31t should be noted that "In report on Maximum Rates for Eleotrie Service pLpare November 1, 1935 by N.E. 8oiarob,.. con au�Jrir>v,'Gngin r for.the Iowa City, It was stated thtL';, a oit`y-owns plant financed on the basis of a'v0413,900 federal gran and ;'504,000 loan could 71eld ovgt $50,000 annually fter reserves and retl-eraent were provided for, using the sane rate schedyla as;promised by the Colapany the plan :gene dropped- / QQ Vithin�the vicinity of Iowa City, an Electrical Cons='gpsc Cooperative of farmers has bee establisl-wa. � 11h1 thio Coop6riitive apparently applied for a loan for J�f 1 L ugonni urn nv Ip t -JORM MICR#LAB J I CEDAR RAPIDS DES ROI4ES 4• published in Deeember,.,1;35, calling for Ecaled bids on plant and equip2ent'. reliminary engineerin; and legal work involved a cost of'almost µ•40,00o (Ex. 7). Company Tactics j.� The imminent possibility that the project for a municipal plant would become a fact spurred the vONt)rnv to take step to blook it. Its cam;)aign had two broad fronts : (a) Dilatory litigation --hopeless on its merits but useful for harrassipg the movement and freezing it77. i (b) Planne8ro p paganda and money pressure on the electorate to achieve an anti- fD Municipal ownership city council. (a) Litigation A temporary Injunction, secured in the State courts and later vacated, stopped the continuation of work toward building a plant. The suit :;as predicated on the alleged right (non-existent in Iowa) of a tax- payer to enjoin the building of a plant which :«s to be financed from operating revenues aurA3&)-, the right of a utility company whose franchise ii�cont ) the purpq4e of rural electrification, and contemplated Le1.:Lr sp2v! ed by L!ie Iowa City Light and r?oaer Company. 0 the basis of the rates quoted' by the Company, it'v impossible to obtain the loan. On 9ertei trA7• �,, 1936 the Mayor and the CBuncil of Iowa City r.cdrsssed ttie Cooperative t:it!l the hope that it would be able to sere'),ce it at r,Ites reasonable cnougi: to warrant obtaining t o loan:(Zx. 15). 4The concerted, nation -w ep-'propnganda v.rhich r_l...rayo is ready to back oppositio to public ounerchip is an Important factor in this ace, and will be commented on. 5The proposition seems rathhe Elly established in Iowa that a taxpayer cannot sue to enjoin construction of a Irunicipal plant `to be flnancctd out of revenues-- and not tares (Io:ra Public Servioet Co, v. Cm-mettaburg, 210 Iowa 300; IFia Publlo 5orvicev. Farcotta and liock:•rell City, 272 Iowa 61j); yet nucha suit was commenced in this case. k uvonniurn uv { "JORM MICR+LA13 CEDAR RAPIDS • DES MOINES I _y J _rfi n 9 had lapsed, and whioh persisted in operation at the sufferance of a city to attack the oity a proposal to build its whichand directedltthoiflotationthe ofvote bonds of Aprl to buildd 1934, s plant., The contentions were groundless, rli and were recognized by the court as such (Abbott et al, h V. C t of Ionia Clty, of al *$ 2^24 Iowa 698, t- 0 437 ,, but its decision was not forthcoming until the possibility Of hadput Vethe 4;arch, 1937 P anti-publiotied acsod-tho o nlerchip groelections up into power. At the same time that in3uactionz were zou ht In the state courts, suits for injunction were brought in the federal courts _rredicated on the unconstitution- ality of loans by the Publio Uort:o Ad.,.Unistration to municipalities for publicly -owned utilities. It was e\ not until 1939, An Alma ih"IV cel,1."51 3 of v5 9O J that the Supreme Court announced the basis of action groundless and the temporary In'unetion, granted below, without warrant. P,A, F-. ;k�, O.Du'"� the litigation wasvx its purposes were achieved. Bork was halted, the movement of the plan stopned until the Company had mopped up on the political front, the backers of the movement were forced to spend almost 115,000 for its legal defense (Ex. 1) and their strength was sapped. (b) Pressure on the fleetorato 01 did not Knorr any of the candidates or. the Citizen's (anti-public-ownerehin) tICIhOt personally. The question of refund was foremost in my mind at the time. That eras T�ha—dec1,dion in thiel cn'ee was h^nded�dotim ,in 193". iiy- hialtime the'City Council's complexlcn had /ehapgec It Ncji; anti -public 9 itership. � ^he appeal to Theupreme. curt of Iowa was contimtsd.by Profogso Van ,d r Zee though t} b City bi that time tetrad"''dropped "ou`t of Lhs litl(�atiorl. 1 i M,rpumen av i -�JORM. MICRI�LAB I CEDAR RAPIDS • DES MOINES ' I I J_ 1 I , 9 had lapsed, and whioh persisted in operation at the sufferance of a city to attack the oity a proposal to build its whichand directedltthoiflotationthe ofvote bonds of Aprl to buildd 1934, s plant., The contentions were groundless, rli and were recognized by the court as such (Abbott et al, h V. C t of Ionia Clty, of al *$ 2^24 Iowa 698, t- 0 437 ,, but its decision was not forthcoming until the possibility Of hadput Vethe 4;arch, 1937 P anti-publiotied acsod-tho o nlerchip groelections up into power. At the same time that in3uactionz were zou ht In the state courts, suits for injunction were brought in the federal courts _rredicated on the unconstitution- ality of loans by the Publio Uort:o Ad.,.Unistration to municipalities for publicly -owned utilities. It was e\ not until 1939, An Alma ih"IV cel,1."51 3 of v5 9O J that the Supreme Court announced the basis of action groundless and the temporary In'unetion, granted below, without warrant. P,A, F-. ;k�, O.Du'"� the litigation wasvx its purposes were achieved. Bork was halted, the movement of the plan stopned until the Company had mopped up on the political front, the backers of the movement were forced to spend almost 115,000 for its legal defense (Ex. 1) and their strength was sapped. (b) Pressure on the fleetorato 01 did not Knorr any of the candidates or. the Citizen's (anti-public-ownerehin) tICIhOt personally. The question of refund was foremost in my mind at the time. That eras T�ha—dec1,dion in thiel cn'ee was h^nded�dotim ,in 193". iiy- hialtime the'City Council's complexlcn had /ehapgec It Ncji; anti -public 9 itership. � ^he appeal to Theupreme. curt of Iowa was contimtsd.by Profogso Van ,d r Zee though t} b City bi that time tetrad"''dropped "ou`t of Lhs litl(�atiorl. 1 i M,rpumen av i -�JORM. MICRI�LAB I CEDAR RAPIDS • DES MOINES ' I I J_ 1 i the thin that influenced me to vote for the oltizens tioket--the aajount of the refund proposition.' - 0 - 'ldy nacos is Ellen Durno ... I went to the office of the Iowa City Light and Power Company for employment ... I worked on election day that year. I called up people and asked them to get out and vote: I don't think I called them on behalf of any particular candidate, but of Bourse I was workln. for the Light and Power,' I 'Dear Customer: AQproximately 21 months ago this company (Io+ra City Light and Pover Company) subcdtted n what it considered a fair proposal to the Mayor and City Council of Iowa City offering j to place in effect on the date of the first ` meter readings in July, 1935 reduced electric i rates if its business future could be assured by abandonment of plans for a municipal plant. j "The offered rates were further guaranteed he maximum rates for the next five years. 'Pending consideration of the above offer I the company agreed to impound the difference between the present and offered rates so that at any future time the proposal might be accepted funds would be immediately available for payment to customers. "And so that cash customer could ::now from mouth to mouth the amount currently impoundod in his own account, these sums have been printed In the circle on a letter addressed to him. Te�ony, John J. Reiland, cement finisher of Iowa, City. Van der Zee V. Means, 225 Iowa 271, 201 11.11. 460, Appeiants stract of Record, n. 222. uId., pp. 199, 200. r - MI[RRFIIMCtl RY -j '--� j - JORM MIC R6LAB I CEDAR RAPIDS • DES MOINES L I` t� 7 "To date our offer hes not been accepted. We trust, however, that the time Is approach- ing when this proposal will be accepted. Yours very truly, (signed) R. G. Taylor Vice President "Important The amount in the circle below will be paid to you when the reduced rate nro-oosal of the Iowa City Light and rower Company Is accepted by the City Council. This is contingent on abandonment of plans for a municipal plant.119 The company apparently ottuaked the municipal ov:nerslap plan on the ground tLat it :Mould raise city taxes nithougb under the lar, r:hcroby the ba;:de :could be ifsued to puy for the plant, financing taxation .:as prohibited. Thu chin 1.1.120 also made that shureholdera in an arfili•ttod -t hat ruiLiny compon, nould Itend to lose part of thoir investment, altihouCh purchnoc of tiullro property of tLo rilv+oy company was not contemplated us a part of tle deal. (r'xhibit 5, 14.) Com py of a letter sent by the Com any to itc colistimers, each month, from August 1935, until the nunicipal elections 1n 1937. Lllullterl.j.SghL r.Eul.Sailrr�ix,._Co pent',. war an nffiliatc •of Iow Cit •`LIOki,„and Power Company. Prior _ t'6-11 opeiA• ing of ou~; itory:the.Towa City Conpany had subjFcted employees and coniuners to a stock selling; campaign. Apparently many urcneoer.o..bol Ieve d they had bought shares in the local oompany.'° J r inrnnruwn Rr —DORM-MICR#L'AB- INES , l ICEDAR RAPIDS • DES MO J� 1 5 � i In March of 1937 the Company had impounded over .i $72,000 ready to gay out on defeat of the plan. It did pay out over x90,000. Nevertheleas the anti - public ownership candidates won by no more than a plurality, for the opposition candidates had split (EX. 1) . The last important skirmish of this battle was an action commenced by the defeated candidates to Invalidate the election on the ground that it was procured by bribery. The action was based on 3eotion 981 of Iowa Code (1935) which sets forth as a ground of contest of an election P I "That the incumbent has given or offered to any elector, ....any bribe or reward in money, property, or thing of value, for the purpose of procuring his election." ' Although all candidates knew of the Company's I offer --and there is evidence showing that candidacies were procured at the—instance of persons appearing; to have some oonneotion with the Company --candidates, ! of•eourne, being at the same Lime beneficiaries of the Company's offer, the majority of the Iowa Supreme Court could not find that the incumbents "acquiesced In, and approved and ratified" the conduct of the Company. The Court split 5 to 2, upholding the election (Van der 'Lee et al. v. tdeans, et al., 225 Iowa 871, 281 .u• �3), Violent castigation of the taotics of the Company may be found in two vigorous dissenting opinions. This defeat completed the campaign. The present leadership of the municipal ownership move- ment has indicated (Ex. ).that its funds, time and energy have been worn out. Iowa City has lower rates as a result of the struggle, but its desire to with- hold profit from a monopoly working .lithout a franchise for tho use of social improvement has been effectively frustrated. I , ....... .. . - MICRDFumrn RY ,'� I"JORM MICR#LAB J • CEDAR RAPIDS DES MOINES i � 1y r Propaganda !•;ethods The nation -aide atterb ion given to the Iowa City case has been characterized by the name-calling typical in the public-ownershin dispute, The project has been called 'cooia.: listio" (T. 15) "ai.IDed at the destruction of private property" (Ex. 15)0 "r"arxian" (Ex. 15) and 'economic lunacy" (Ex, 3). Its guiding apirit has been called "starry-eyed". SulStls fallacies'current in the propaganda against public ME i"e 4mr-mlMnn ' tit�er7,Yt,1 t, Of prime significance 1s the attempt to heap on the head of the federal administra- tion blame for local movement of local and spontaneou origin. $aha Yr, H.J. Gonden�s: 1 as heading for a blast on the project: 1,,.d "GOVERNMENT GRAiiT AND LOAD E11PLOYED TO CONFISCATE PRIVATE PROPERTY" His title is eub-headed: I "Iowa City's venture in :nunioipal owner- ' ship aimed at destruction of private property; ! no other reason exists for erection of proposed plant; Federal funds used to deprive citizens of property; President Roosevelt apnroveo," Nothing could be clearer than that 110 (lonfisoa- ` tion is involved, that behind the drive for municipal ownership are rational and sufficient desires for low rates and not for "destruction of private _rroperty", It was the City's absolute right to refuse to renew the Cocpany's franchise, and to build a new plant (Cedar a,)Ids later Co, v, Ci LJ* of Cedar Rrplds, 11S IrJ Iowa 25 ut...tha vehenenee of oppositiol,-maheo falPIAG --la.precentation difficult. Mr. Go.nden calls the City's applioation for Public Worcs Administration funds "one of the most a,.azing public decu,a, nto ever conceived" because it states that tho COrr_,any'a servicc is"excellent", fic.ignoree the fart that the City's voters had made it ulti^ntely clear that behind their drive was the desire for fair rates. 11Public Service idaa•azine, n. 113, Novenber 1937, 1 I i I MIC"DF II MFD RY I-JORM MOCR46LAS l 1 r..� CEDAR RAPIDS •DES MOINES I r L To do—nd the bona fidoo of the �mpany, Yre oondon.poinr out that it had of;octod• lir rate outs !. since 1922. Ila ignores the fact that throe of these cuts resulted from tho throat of crnapotition or ousts= or purchase. Ultimately, he clairle, no other rea m n could exist for the refusal to accept the Company's ofZer of lovar rates as a price for obandonment of the projeot than the desire "to force upon the citizons the ontoring node of oociuliatic ravolutions" then a utility obtains a franchise it maksa a contrnot, and it undertakes to abide by the will of the governing majority that it shall not continuo to operate on termination of the frgn chisa0 L.r such be its will, But it is claimed thr-t auch c rofusel to extend the franchise of a utilit7, whono common atocL is tightly hold by a holding company roaults in ". . the property of thousands of psrtn.rs (sic) ah_b90 aeviji;ta e•.ro invested in the Com. a:;yf a cocuritioo bean .forced out of existence by governmont" (p. 135)-/ l;of,otiationn for Purchaco of tk:o Co=Nary r of significance Is the appy cntly uninvited. intermediary of Guy Co 14yers in the•nogotiationa for purchase of the Coaapruy►n plant. Nro:a the lattor part of 1933, into 1936, 140ra levelled a contiwual barrage on Professor Van der Zoo, ldayor 1.1hrtin end the City Couacil of Iowa City»pro rrtng for purchase rather than competition. in—ro�lete clth`�➢ubilc+intororrt" piety (xx. ?A), ails position is =do apparent in n latter to to ldayor Of Iowa City (1�jt. 38) In which he lr oason tho City -to hurry in lasuing its bonds sirco the "bond markst Lo very good at the aomont" and that "You rould receive the beat POssiblo pries for ;our bonds hrour.,I 1113 or any other sn ora omp Elsie oupp sd . rhe plant, aas 7.rea y noted, van not suYfieiont to aupply the City's noedn. Buts P tAIf.ROF II IACD RY 1 JORM MICR6LA8 CEDAR RAPIDS •DES MOVIES i 0 _y 12. "Tio M-1, tar ua ituil..1.LL„ ...:I�d. u.l U!:. J. ! ^.!:1.at- I31;} 0.*—!%=i tf couL. lie '� -•'mo i _. �.,•% :'.'..1 ia:,G:ip .14 t10 ''Jill. halms) jou •..14,1 UnIz .. _......, ..:1; .it ( ._.`2:'J rJo:itiRil^l to ! what "t�:G ••^.0:'U%:.. v:.11:i ()r v:lC C )•: .: i;% U :J,1 ?.'v' Iw at ai:ri130 ..v ::i'?i i)1.'j.'!,. ;.'.) L!il .iie•' 'tC� L`il-v0^CL4tC 6E3t.^.11^i,1021 i i :ai.!. •' Iait ''%aG;l 1OL1.3124=11 cl!@ notc!1^enu.. r"� !i! fol"Co.',lrol.?1i000 in i:tiCC li�•�. 27)s 1.11f;ta.-"12•••(•4... 23) aria• for t•;:i'Lr.:irc In ra -:tet o: t:ic c:. oi: e::t,.:.n to ttic a •'atilral ":i `.: i).Q� ice^ (J.. •':•.w�. -':%52'P'0 :000Pt+: to i110 ciJn ,it--to-C:)4. '?''.J ':a° , tlj vi': :iir;,liiiOntll, to^� C:•GrO� :1C":'; 1^.:,t:l U'.' j"1.Ja0 t"Air o rri o Ge.1tuo. rG?i1. -•Ga nat ftrnoao to .xt '• •�c. .t}•e• ::it �.Q e {i L1� aia" a1'^ ,!r:.., .� ,.•, :.tl. y� I t, } L:ii .1 :r..1•ICi D. LJilu ,� rs uat.ai:��i-n •c�:u .iro:4Eai.,r •, Il , ?,• 1 � r.,�..4 �' .-`ar,.,rriricao �"� �.y3�;.a;;/s•parr,..•.:!n-=c3tr.;i1�'(it••-y�•e.•o?3't^:: i�,e::rrr,za^,::cr, ,::., Uw V der n, o .m.. nT 2..,• '•• r.1„1 L a::.3Dr 1rlri 1,.2:• ,•fie D.1 Ci tole:—cm 1_tii.. 'Y:,_.J 1. •Jt e1 L••. a.� Iln r..rJ J l':VGitii” riSt!:I' a..e .:irc--_t f'.30 ': 1 S iiv'L1.411."i t ulvo .".�`•:, �•i Lf.:• ' oiltiit• jera iiaat:! '0 :'..?.'•'.L:' .i•�^ Vic, Jl''1..'.i•' :J'a to ;C,._', In tho ac',t rztt: %runt' nom lilun G:r.i :rAi Lo 'c'r L7 on a n xvi o.^.c;io :•Oi i.^.r ii' '. .., (' •1nI'a� t'.1.l .• r. ,. V....., var L:.:1c.i 0..LA C' .-.tti 0•._. fi 23.. .,...''ice• L...% 1:. _. •• wo ,leu4+S1' ilex 4 'I: J. ,i .. .. yj. Y�.Fi{• J.1. 1L• � on. -.ally r::•iG C.:•' •• t: LCJ .'::i.''. i { �" J.l.{J. 111 i': iLi.�J• :t'r'.' Da.lunt}y..! PL. fJ:lo ?'".L.O C.JL Uy.',.i�i:•L.,,..o..�.. G't :1:.''••: 01.^.eL wan :1 ��.(;:i).: ..Gi)i�L1};:•iCi `U�.1L.' r;2'i'i;� .:i0 LS.v••la t:Ccirr tc ':...... ^..C•i::::J ^„`.iir3"!!:i'' 0:: ltd."10cil cf, t ::It tc:C 0�:i :`('%owLii•S O.i i.tonli= •;:'.•: r•.ii-i0i'r' tCi.') .'i •,,. i3j?.y.fl! :'a'.1.d it t 7..vi C•?'>';1'::.^i Cl C•ll f. t ho'Do -1' 007 :',Dec 11 t it c el i 2'r;1.'. to o":•nr; G lo."Or r :toc,_.ar:n oarrYL li utiian of ^r;: on;; r:ti.or, ::r.a7.4 nou . ,... Lo . fei_ r:.lt:D for Wo LO ..Jeri 1: MICROFILMFD RV 1 -� `JORM" MICR#LAO I I CEDAR RAPIDS • DES MOI YES ' 1 .,a a 0' I I , I 1 { I II IF i ii 1� i p. 37 i i IOiYA CITY. .I Conclusion. The experience of Iona City in its attempt to obtain a municipal plant, illustrates demonstrates the variety and efficacy of device;; which may be used by private companies to prevent municipal operation. Nevertheless, althougti I unsuccessful in setting up a public plant, the movement for munieipnl ownership j brought about substantial rate reductions. J MILRDFILMED 8Y '_"'-•� �.. JORM'-..MICR#LAB-- L.. 1. 1 CEDAR RAPIDS •DES MOINES 1 i i E ■ i) yi:e "ottry-c;ac: p") 141CA0F1IMFn AV —JORM MICR+LAB- CEDAR RAPIDS - DES MOINES -JORM -M-ICR+LAB CEDAR RAPIDS • DES M01 Iowa City F0. —37 BY E7acu'Uvc C=1ilittoop Hw-,dbill !-�i p L ccrue (Van dor Zoc) Btates: 1. Povement start ed by rearon of Kiril autos from 1929-1933 for municipal 01,1nerihip. IL.3sd1.atelv 00 reculced i La "t C .1, - 2. Flectorlite vOtca in 19�34 on nrOP031tion to spend 4917,00c) fora i,.;un1Cj-,.)ally-owaed by pur(-ha-,e or 00110trUrl-jon. To plant, be raised not by taxes but by 1-0r rate revenues. 3 City g»plies for "gift -loan" froM P -W -P- in Jul I and approved _jr lq*�I'�. another rate r.nL1110tion , 3 ,,it clolrtca Other 4. City counclimen tul-ntrift-loan' and "nullified =30rity vote in favor Of In OIL', cloction of runicipal ownerchip." ot Vc defeated 1935 t110 v ted po 0 company candidates On LothRepublican and Dc,-.Ocrat!O tIO!"Ot" "tTift 5. 1jew Counoll apr,lie(l fo,1, reneval of anked F c-00 to and loan" of 'V911i portlar its electric pro.. nearer eo-,T11any to 0011 in Io', -.-a City. "Your council n:,7cr j;:Ot to flrv't; b' it !Itll its proposal to btzy--in fact) Nat. On t.jc contrary never even Got to the good po-Vior coln".any Called your and councilmen 1pro-ocrtY 0-X9trcyr'ro Tb Vib AGAIN om-;J*0 11-n-DUCz tile city would aband:-n plans Sax a municipal plant." 6. ntnd U In August 1935, W.A.llot _1.7 col-pany be�-,an to Iowa City. Igan.adin t, sending monthly letters promisin,", cash "oontingont on refunds and lower rates for a rauniolPal abandonment of piano plant." it AL -JORM -M-ICR+LAB CEDAR RAPIDS • DES M01 D J L� 2 7• Com -any commenecd two (ir -Tu 1;Iva1lCate MTo upoot 1934 VOW in Savor of clltnicin al ownership. Coat of litigation nearly •'•15,000. Litigation raculteC In num.d_^;lt "clry so ti1St new oloctlon us( ---c ap 111t;, for Do:13P co::u):1I1y to -nut onntiblaten 1:1 for li rah 137 r•1ertionn. Lcoc::.1r; '. I1 ;:�scl. 1;'37 thr, l oft. 'd Ynt of X72 2;t!"in' robatec to conelur-0rz 11" Arty, •.t r iron, ^3 tl ^.: o� t:i) gat i . ,l:ep dd `.1f c plurcli t;, , the na l,ol`i aolitti::?: ra.tca. �. ,;1,1 t v^lldity of olcctlo:l ua c ;12.i 1!-1' con— tcsL'^d, vie t1se! Cauroilt"L.1lctom:1. ,�.:-;lo fox, now ':'1:1nt in o:_ci_1n;r, for co: :alrin new olfo" (mno offeotivcreon) x".0w?ituro Of Oi'•� .i? 1"•:':]^;OC1. 10, -Z;10 that If Citl Cd!lO vrUCiiO Fi1ii1 j:1i1a 4, V10 m—,ii)0rty Of i5r9.v.'.t0 cOmnany it'll. not have bccl- c103trOY011 :;iI! Il., t::PV 040 01vo U;11!S^,OEJ it h'.C; llnlro; (L.r LoZ•Yi• •''t)A xar. R �1• ;;a.].1:: un reccAlic 0 0Fl!ii1..':1 Cont?'i1:.ltu^ oICa to Mimp11MFR RY IJORM -MICR#LA:B" CEDAR RAPIDS • DES MOINES ki 3 2. Jurj-rarY of Drlbcry V.D. It an ezu-o (iron Van Cor Z'er3 ;3 Sln'"Mr,4 a- for mru.vj.4orj-r-Geand courtIsOP!ni0r) th7lt novamont OwneralliT) rt-'-rt"f1 in 1932 whan cleators X-6jeoted franchine coLgot I);? llCht and PO"WW cocipany operptiT," in Ivey.1 Cit- VOtG 1,, 1,53•' la�ls to aut-1)orj-,0 jsojI,,ljlce roV0nue boado. 3- Z 24-37 haitcrlal Manon iity slob;?--(Iazotto ccucca Va-1 dor ZCO Of lunvoy and otarry-qy-dnor 0O:,=ontI.,Z. o,, receipt OZ a bill b -0 for lof;al and onginet) it, y t�-.a GI ty for OC 1% 1". 01-Mcin P-QUOr. Ultil building I r)lanto lolioniitas P-d r. Pin-it "OOC701=n�1duI no" in Iowa. 4. 5�-12-37 Des Loinect T buna Photo, Of letter Uscd by compary ic+ c.0jj.,7u-..j2-- ZI.-Ount luo be ruccjv-usel 0 continfrent" cu 0: plan for a Cautial.'"al r1at. 5. Undatca Hin,vory cf (Van der Zoo V) Iota. Qty Pol'or Co. At preccilt v. GuL.-Il"'apy of ijj-jjt(jd Go,-_ "..o n. ctook from Tri- City PailloMy arc: Lif'J"t COM.-PI-LnY for %',500,0:',0- lOtTa City Liglit and�PoUt'r 1301d proforrotj Of ",111ted Light and Go.-.-:"pany of Dolavaro, -LIbZ1di.,rj of Un, tod Licht an%L Power col.,pany, but u unrelatad to Lao and eleotrio businena in Toua City, ;Tc ct-"02cnt 09 tlividend hinl4ory, 6. U-17-37 Glivil in"; The Rai 513tar Ic"UM oondo.=s money-politics of 10,,a City ,,cYT_r anti iLiTit; oat MaarMr It, a rcft-soap iters for t.'le ooripany, , I Kv M Fp Mir."FUMM AV JORM rAjCR#LA8 INES. CEDAR RAPIDS DES MO 'to F / 4 111 V�'I ! rrV ' i� 1• mi q1 1. 1 V r, S•'.i-1 (.,, .,. y yy 41a1' '.{ tglht" 11� AJ ri�,ly��i Lf `a � �# � `. .'. I:Aii�ll��r•ri?' `di.»':i'�FF'r cJ.aSsvr a wi'i�'7^ w'"eel; �js �llyNY`+:;!Sli,:'I �,i`a.lw��.Jriho�tll{a l i�i7„��,tti.y� 19j e�li3�1 I1.�H ., r MIfC"FII MCII RY I —JORM "-MICR( LAB-_ I CEDAR RAPIDS • DES MOINES ti I ` lis+. _ r d _ _._ .. .- - - T -�. � _.,iL•� y T r, r 4 7. Undated "Nro sad 14uro Dcnocracy" -T) (Van c�or flee ileetch of history .l. .October 1932, npooial oiection votero rofure to ronex franohiso. 2. -.April 1934, special election voters approve bond Inoue of "917,000 for munlolpal ownership by oonatruotion or acqulcition. i 3. July 1934, P.W.A. ready to aw=d ,,rant and loan of ,917,000. �D 4. October 1934, City Council returno P.W.A. contract. 5. In municipal election of 1,31,1ayor and coven Counoil_.en elected on municipal o nsruhip q tiokot. d. April 1935, Council ackr Iowa City i'ower and Li,ht to cot a price on 0datribution sycton. Power and Light offere al� of plant for ;;1,125,000. J _ oa 7. August 1935, P.11.A. Grantc ."413,000 and. a4van,c,as :;'28,000 in each. S. Contracta for en;;ln3crin� and l�Ioal ocrv_veo made and plana and opoci:icationo nrc,P41rea; alroat ^40,000 paid for there rervioes. 9. Pourer ana Light stnrto in,junotion ouit n,•:,ainut City and P.l3.A. In local ; nrlcral aintrict court, Dictrict of Cohl:;l:da court, and �J State court. 10. Aur,•unt 1935, and every ;:Icnth furan .tor 55,00 io ncLmore boiabrraca with euntinLcnt• rob _to offer if munioipal o:nerchlp plan I.efoatad. I 11. � aaroh 5, 1937, "Cltizonr :donnartinan (anti - municipal ownership) Party" iidoarc. 12. raruh 29, 1937, munioipal ownership oouncil owent out and anti-munialt-,a1 o:norraip oroad in. 'to F / 4 111 V�'I ! rrV ' i� 1• mi q1 1. 1 V r, S•'.i-1 (.,, .,. y yy 41a1' '.{ tglht" 11� AJ ri�,ly��i Lf `a � �# � `. .'. I:Aii�ll��r•ri?' `di.»':i'�FF'r cJ.aSsvr a wi'i�'7^ w'"eel; �js �llyNY`+:;!Sli,:'I �,i`a.lw��.Jriho�tll{a l i�i7„��,tti.y� 19j e�li3�1 I1.�H ., r MIfC"FII MCII RY I —JORM "-MICR( LAB-_ I CEDAR RAPIDS • DES MOINES ti I ` lis+. _ r d _ _._ .. .- - - T -�. � _.,iL•� F C D 13. Juno 19,37, diotrict oourt w oldos in;unction suit arlainst Coopany'o olair:r bro,,w;,it more than a yoar bororo. 14. July 1937, oloction oo,o;ent lnat•itritea in State distriut oourt on baric of bribes to voters. -New Council wlna in cllatrict court and abaulona plans for uUniolUal osvnorotttp, Cocjl,)w / tl- orn paid over to oonnur..or4 ohnreu of ,,94,000 1n rubates Sra.:ountled. 15. Jcinuary 1938, brlber3 cult appea.Iod to Iowa 5uprome Court. 16. In January 1933, United 5uawce ZuDrumo Court llaiaausses Foster ane, TALri:t'n sults to enJcin 11.:1.A' from so_k.irTi loa,re n:tct r.,ranta for raunioil:al planto.'t 17. 0otober 1)3c, Io,ra ,:upre;:,o Court n7oiued no bribes since no Dratificntinn° or t;o bribes by. Gounoilmean. Undated ::audbill To cloctoi to c -f lost. City Ro history of litli;atlon and municipal oanorchip. Fointo out ti]Rt Fo-Jar iiOrd_]any lort it:r car-=- in >tate courts (jar.ary l jt;) on validity of 1;;34 roferendumn on bonds for u:. n.lclnal owr•,crahip, and In Fodeval oourtc on right of i'.'r1.A. 'to s;:i'cEr loans (January .1),o) . !hits Gaya °sri2h the e rlcu3 ro3u'Lt that the lonor wins. ".,. do:socraoy in our ho c tom io na or trivl�.i ,dust beoauso Iowa City is not big.11 As s:,,uaent for a now muniuipally-owned plant in o;)ite of low rates "Pay tido lett VaLoc; but t:cop t:,o :;ig properties for thu City." (io, �) :St.R.to-�- ann-urnl ra,ofitt of to ba wi00,v00 (rs� _tram :3tiC,c1;,0 ?)cr year) . li m ironrumm RV JORMMICR6LA13 I CEDAR RAPIDS • DES MD19ES i E J� _�o 4 i i i i✓ I� I� i i A D 13. Juno 19,37, diotrict oourt w oldos in;unction suit arlainst Coopany'o olair:r bro,,w;,it more than a yoar bororo. 14. July 1937, oloction oo,o;ent lnat•itritea in State distriut oourt on baric of bribes to voters. -New Council wlna in cllatrict court and abaulona plans for uUniolUal osvnorotttp, Cocjl,)w / tl- orn paid over to oonnur..or4 ohnreu of ,,94,000 1n rubates Sra.:ountled. 15. Jcinuary 1938, brlber3 cult appea.Iod to Iowa 5uprome Court. 16. In January 1933, United 5uawce ZuDrumo Court llaiaausses Foster ane, TALri:t'n sults to enJcin 11.:1.A' from so_k.irTi loa,re n:tct r.,ranta for raunioil:al planto.'t 17. 0otober 1)3c, Io,ra ,:upre;:,o Court n7oiued no bribes since no Dratificntinn° or t;o bribes by. Gounoilmean. Undated ::audbill To cloctoi to c -f lost. City Ro history of litli;atlon and municipal oanorchip. Fointo out ti]Rt Fo-Jar iiOrd_]any lort it:r car-=- in >tate courts (jar.ary l jt;) on validity of 1;;34 roferendumn on bonds for u:. n.lclnal owr•,crahip, and In Fodeval oourtc on right of i'.'r1.A. 'to s;:i'cEr loans (January .1),o) . !hits Gaya °sri2h the e rlcu3 ro3u'Lt that the lonor wins. ".,. do:socraoy in our ho c tom io na or trivl�.i ,dust beoauso Iowa City is not big.11 As s:,,uaent for a now muniuipally-owned plant in o;)ite of low rates "Pay tido lett VaLoc; but t:cop t:,o :;ig properties for thu City." (io, �) :St.R.to-�- ann-urnl ra,ofitt of to ba wi00,v00 (rs� _tram :3tiC,c1;,0 ?)cr year) . li m ironrumm RV JORMMICR6LA13 I CEDAR RAPIDS • DES MD19ES i E J� _�o r , G 9- 11-1-35 • Repo"t On ac avmn rate fpr olectrlo service in Iowa Olty, Iowa ,v (rrv_:nrcd by .:.r.. Schwab' Co mmil.t_n r;ineer of io:.a City, Iowa) i Purouant to 01:x_^.er Law uhich ))rovI01n.3 that con- atruction contracts for public'-;,• v..,im.d utilities chall contain uc:•iodules of aa:a:.uz; oha_'',as, S3)n1ab proposed City t1mit if the r1teA 0"r'f-coted are used as CL : .^..Ufl (dote Viore ^:tee lator iilOAa t' iiteQ In a rethi rate 00`. oLL10 (.'.L": nt 15, 1 J7) pro;:a':.'[S byt110��G 9j'nl?y.) On tho bi•.c1.^. t : _t t:20 vi ty r_roul:2 aebleve 601 of the buainoco, ;'150,3'40 E -rocs rcvora:e, 1147,$•21 net, ai:i1 $]3,7411 after 1ay:ae t o: 45 on j .,917,000 is predlcatod, lcav_n; G Ll � 7 auaranteca to hold ,,ot1_uocd rate ooi?edulo 111 oifcot for two yaaro. Letter to oo:lour:?e:ro ntatcc t11rt tllo pronoco3 rates would be a cubatar:tin.1 Gavto coll3umarn whan oo .dared uitil pr orecod nurioi'i)al o.'n'aro111p rrtoa, a..ountin from 20--c".F,''. 6-235-35 Cliff^ten„ V. td'.�7 0 rlta.a0:Co onen letter, olai:ai1710 ,hr -t if t1:a pro�oot p c. -rant (:r::ich ;ren offered) t i9 Coto a d•n. �r� A1u cosid r -: eat tho relucad manic 1%, all,,- ow -,',c . plant so ` 2 O',f2i' and I.lij'=7t r: t^.o p�ro;dorod by t__c %o mil U;j er.Q atill olenr 1y,40,00(1 re.- a.1num. Curt=: r 49 sou -,"as Iu:aa 01,6-,Y uc-Vc "The Iona City caac cuppllea the fore2ost exax le Of ti -.e lf:n� l:n to hrnlch tiro i•,ropL"ato of t:he Heir Utopia are rropared to gu in forcing upar. rmerict. their ':ar: Sari philueo ,"y• It d.e:De!hutrateu clearly that no eonclacration, either of ethieo, Politica, 9004 bucineos or even com:cn honesty are to be perritted to woigh in the balarhoo ar*einat the chr_ngen proposod by the Brain Trout in oLa• �ooirl venturc. (11.13, Seems to blame '•�'zclhir:Lton for 7notiz Fmuon of leaclly Sp,;nt r;anus vor,Cure.) And in Vile particular vrrturo, rlat-rdthatr..ndlna Its abr~I>_rcbty and the fact th:.,.t 1.t s.zcur;ta to co :fieottion of the pro;•erty of r.;hu:;'rcr of clti--ane, the Preoider.t of the Crl.tisd. OCatea he.e ihe?rUly aria o?eoifica3.ly ooncurrru." Typic::.l of tone of t;hc arCl�l� "TP10 (the City's) ap;?lieatiorn for Fadaral funds to ono of VIa I?ua,t z.l�ziu j,luLlio documents svor• connive:,• on al;^ j it Fat£.LGFli "T] 'a scI•viee given by t:ho private Por_jpa:,ly Amts :Keri C:,CP3.3. etlt 1.:!e7 ai U: lily dua to :a•`eryB.'a0 C':iti:'1.Lar;'., •}(.7 ^:ilr.:�?`...:.+ of ccnatruction and C•::di;•3i;nnt ::.J1 ,;;f:S.�:'h;,ll °It ehuuld be plain frX% that, that utero was no reace:; for cr..nat;'l:oticrn of r..u:hicipal plant from a ocrvioe• there being j :U.�ectr..ac?r<>ir.Jtr:0iihic f: V;8ct:aQtc ovm,l r,y, VII-rc .:ae no nee.)6. of ir.trcraecinF; e: xaetiflon E a n r:c� r.r: of lranrom,n(, cervlce, or i•a`ovic,!rf; trotter io the f cllo:."ing appears on y. 11 of the !c plica - tion: E;y�Cez x111 riot ooa;'ctz c71th arty similar buaincoo as the franc)lino of t,ho Io:ra City LiFhtnac:i To:rer Con^cr; Ox1:1r c's v`Sr::Sry 13 1,311. , IAIr.GOFII mrn RV 1. �.I. -JORM- MICR6LAB- _ I CEDAR RAPIDS • DES MOINES I aai 01 ti • � t 1 `J ^T.tl rocord of J zoo zorvl.,)U at. collut [l•u1y aaoreasinq rnten, tha 001 "ony 1B t0 be told %t 1ia!1 (.v::l)iratlon of itz ai_'r 0:):.11::1 1111-1 tiro iii t} to 11:awk 11?) t.:ad diet ti out', to uSSY 1t:7 OLA tiie Ctr9Jt0, jUn% 1t0 ^QU:jx;,--nt and VU out :)n :iU01[1000. In Cl.Jov t0 brLIZ .1bout t::ir. t1Cb-C10, ProAl-noon Jan :ier Zoo and Ilia herlo;L :en prup;:nrd to pour nearly a 1311110- do,-.Lnr•� 01 to: a;n:.!;1 :.:o(iey into ti:o 1)lll liiitl(T cif d 17lullt, to ill!) e•inno tbf) pity debt by ::.ure tii:ln ULilf a ::l.11iolt to. drive a Good oitizG:L (sio) out 0 baair.e-o, 12'11 in o ler to ac0cu-.11a11 his 1:ot uch L20 for ly.11.C1 t, -;c -z0 1•' G nu econu::a.`J jUIItiLiC':.tiC11 111 the firut :;11.131;." (o.t 133-13'1) T e Cluthor pointe to Liio juri e'lo^.tIon -.nt the Company Eell:nyo llna ^.d n rr.Lv-roductlu:: P011CY, `.id "that since 1922 four rale c?ecreanec had bCen put into afflict, tot^:1_171r; ill all 5G}1.10 (1). lj�i, igt:csirL raot t'lst three Qf thew aocuircu in one year as recult of 1'iiL•aat.lt) Cout!''""t ` no 21-2"; ea:vin,ya o _'erad in noel 1011 r^ate0 Ondic.te ^.J'.ciil eoeaou.•y to !rt:; e re1'.uotir,•na 1>oecible) is merely oto for-.Q11-:011tha oltl:sell!t talo eiltJr! li> vcd}.--o of L ov 1-ri,.i^. 1: �l t: I'•^, ✓J='.tt'..):'.. u n ,!• l• �.I .t4. !!:1{i i�.:' i. i.11 :.v: 'I c�.�J,i:1S)i�t0 oft'^ot tlirt ^rojcot . -La C1. 11oy 6C [::Cn for 12 : o:!th.), reeul.tiui3 12-L 0.'un5^ to-nital OOOt 1:C' :Lail of 1'.vin nt li,'ooOvjlt IC -::r_ Ci.t � ct ,.;:¢ p: en) ..:•[tJ r�:,l ....'Lt nu :: , sl La:.;, cr.;ild bo mlCn:i do 3,500,00:, IiUff:1)1e"Y Ul.y iCitJUt'11i�; ti:0 i"A � i..:'1t t't �: 0•Jil ;Cii UtCCi: of .;ca „13'1".JC.ny l.c held by unit,hl Y Cwv ^.d UG1 It, at�.2tos tl_rt " ... tiro ;:rcperty of of a irtners w"1000 l:el'C invl a"Ud it tl:e 11C:..l:i:ny1.1 eecs:rit!ec, (1.c) beir.� fcrcCd cat of 0:c1t)t0no0 by CovGriw-ont.R (p. 135) 1 1 ! irilnryiwn Av `I- -DORM MICR+LABj - J I CEDAR RAPIDS • DES MOINES 1 r". 0 ti s n pus 1 Undated ':ullet..n Cf ;;n:aclnrl %r ;;er^.kan 1-4asue Ue ndat d (contributed by J^n dor 'Lee) pro^n- ndlzI ; for runia.iral I i.�oaea t :etloc of Co:Dnan;, OVC1-4n1'V. t9Cn Of ^3"^.tD a%'i rn^'lln- j Of O- ne7atinn r.v..nrr nn 2. .�ccunes Cori=y of rnl;ilntT ••11•:1wIlU.LOtCl Into .ones of voters to sr -read lien about inoreaoed texer, renultlr;: ; fron i.iuniaipal o:nlemi-Ap,, in vier of ::'ir:.r:•sr i.a*t (Io::^. Utat. 6,13 -4 -Ill, 6131i -d2) 1•;::+c'.. ;nr::atr nm;i�i^n1.tL"i.�a to finance r.:unioipnily 0erngd utllit±.eo out 0, future revenues nn:l rohibitEs nosu:,ptlon of general obli^ation, Or !,.Ixyr.,Ont by t.^_::0.t1011. f j, iu;cuoea Cc aran•r of trl::; :Laninl e:.n oyoco and } oLklerl 1:E.c gold mete„red noe'•:3 uolrl by L)y t.,^^t muniol;'•'t7. cwnersi:li? . In lo;;Jt City -.mold ^raJudla^ filo invenL:;.aat, :dheIcan E^ a r.,attcr Of feet tkle etOol, "an not ianilcd 1Jy lUi:a vity 1 o -;,r ailLl i.iU.. bnt by an affiliate havinC no phyaior.l relation vlth It. lr 11- -35Clii.;.in( yracllnr. 1'oat-"Jtrz^O.e.rQ 1 J• ' Letter fror., F.G.R. GOraCj, aLta.osani; 7v::2 City Iaullicipnl Oliacroklip p1c.n an sooinllat'io, iuld tho Procident of the Un1u00% 5t,.tr0 for rl-n •ov9.i ; it. clt.^.tor cn,,.any I offs:':, to n`711. entire 1•,7.ant for "U,000 tr':±.ca "it., turned :i0: n. 1G. 11 „_35 C. !.r : tl•0n;; to Van rhr zoo enoios.ing E:i> vo olin inr, i t.11e,-ea Gordon t0 k)e a "profoonloil:^.1 ?•rrop�i'aiHlistll for utilities. i IA1fGbFII IACII PY 1 , JORM' MICR#LAB'- -. 1.. I • I CEDAR RAPIDS DES MOINES I1 I J 1. 1' r i i 17. 12-9-35 I G i 11 zc;3 to ''dico.t o: o;Ji'a7L:GG i•U�t— ttt::d..,i.d (lc'ttrr, no clippings X - • an:a:or' nt;_P.G.R. n �orLlon rointu out tlu t in 1932 - J•o0;)le of 10'.r; t•elcnrLl of frcr....ar. li:loar. c of hii;h ra4^c j.�•J�,• .. eote(I to vu_l'i U:: c...1L .' 1°'r — ae'vtni , cicii- .1 OL'li : •,.L: :? OT` ._r: /i, Clailtl: 4.1M1t L:oturI,1j :L 11C:':, 1. —4v`^ 'rcgl7rvc''1 (::413,oco 11 -ant ie br;tter Uuainea0 ii::$S, btr".w.' it tlD',?i CL'i: Cd 7 Jt n` t II .r.`J 11 :7C 11° C •,n id for . R for :i .,�CG,v ), 'vl C.,,, to J'. C 1 y ultC 'a;ro. .,*d "Ity :Jcur.cil of ity to ;'rcaiQ•�:1L' Jo`: recon City 000_)Ci ati VC 6f _ lova vlty 3r�rGcsea cyr::)st::y tiJitl: ca;�n ,Clue _)1:'':: to COME) 7Go f. cn:`a ult:1 ciectri:lity. ki,) tulle t;1at 0-01 "' - tive c') -,",lied for r1upr+ly of :,I:r.:?r .0 Tcua City 0'.1• :• and L.i yat ::_Sal: r .otc:l c.:ari :u:.'. of* f .;u J or isG:lt:1 nor •a fcr 100 s.u. 1a!r iJlall ratc J.r• T'GCDD.^.11)10 LieO.a riu'a1 C1'•Ctrifics.8L1n. '.'ro�J.:' =o to ft.•'_;11a_: .; a 1 j. J c? ::o_ :•) i Cf it Cot:t:'. atc of i ttdt..t 4 1. ;'•tt (1.-•z( �� Jaltli�: ,:'). riiil''ii':'ll:.?• •�'t C '� J�• " 1u:;a City J'':1t C'ml ad A.: +r C:`t:. C:..fl•• II p. tl0 iii il'1` li. �: 1'0j`'or 11 LO.Inta L,/ U- ttul:u''i.';y iri 1�lO t'na CSi:: G` •7.L lU;: i': :iiLf, t�:.•^..t it Luilt' a .lart'a r Cncr: till;; L'.R;; ut: 1:10 c Y:)), Ciun of ecrvin;; a foder11 eontr:.c:Lor [ iA i'0,1130 Wa too I lr.'r[:o for t!lo CityLu 1100:10. it l;aa :;u10 3 to 1,011 t:1c t?1mit %ml buy curroriZ at 2F" por :+.';. hater . t i 11GFrCe t 1t tcic ad wan •' V j 1 Ir Nir.ROFIItdFll R9 �. I-JORM MLCR16LAB.. CEDAR RAPIDS DES MDI:JES I r I - . - I ,� 12 n o 20. UnaEited :Zridbill (V^r.:'.rr ,eo ?j GuotinC n7cm COQer RanlEo .:rtOr Cr,, v, CS.t•, Cedar Ranlds, 1 Ios:n 1_�Ol to 67;_Alot re u3c oY a city to e;:tend ai,al ooCj franchil3o la not a taicin of prlvatc i,ro�,crty oven t;touth aot=a lo, -3 'c'ult to V:.•V LL...,jL_nf• L�1 �y i -MIf.Rn�FlImFn nV -JORM'-MICR+L-AB- CEDAR - l RAPIDS DES MOINES E r: / ' I Ot OL -:57T71Vl��l[:l:t•a. .A,•c�Y.ri. y•,�I.�. ql:FfI.$q. �*1' !l�Ip .,.Il.tIti IdI I, T-7, . %pI1A /'.. f 1 mr..Ru IIMF" RY 1- -� ) JORM MICR(LAB I CEDAR RAPIDS • DES MOI.4ES j L 1 J= 13 h . Lict of t'ntor7.aln —76 (Tt�j !'-ile 1'10,;Otiati.o t� fo'*• , ro;la.ao of ton I'7.nnt 21— 9-16-35 J.D. ilooa to Van der Zoo v Advocatlna rurchare of ri 1v:oto plant rattler thancomnetltica. 0-taten ornerionoe in ..",ruffle that Coopotition in coctly to the extent of "noveral ai111on dollaro every your" And t7 -,t �c tL7.o is "ur"inr the _ ::rolmno of t:10 corr,any at tl is 7 point, 22, ;-1E-35 V,^..n der .:eo to +loo.3 Thia dice,;rees frith :1onc. ;t. -.too LnIt d Li, •I t wnu Power Cort;iany t! � o:•rner of pr?.vato ;1t, Jt..t intention to tnke ;a?vnntr—(, oP sei.er_1 arc:.It of ^t►13,oCo and bur o:: up to'`^7.7,C6O to oar*,y Lhrotrt;h proleet, Stlton co: .ny'r. fr:na'11^,e eroired January, 19311• and th _t r;ity Counoil rofue6,1 to renotr by vote nl t::: ee to ort, in Uotobe:b 1932, J 23• :-2C-31, Tole,•.raet G.C. 'rrrn to 9aa c:or 'reC Statoa has accwloab7.e .Iropooltloli 1---d will Ly sub3c?went phone ae::erte;i ile Co l : t,rza:1L;C I D1r0.1^.aC at ',L17,000, tt1C CCi I;'a2P.y 4, lot• ll, IZ,yE3rJ but Olth LO btiV C -al :;i`u11 j;CnfJ .".• o .U011 to purohaaa hydro. 21• • :-:2 35 I•• or , i Proaoina for otaten^nt of nro;;roan. V n :lrr leo oteted Council on;:oced to dant au -,:octad by � Myers. 24a. 9-27-35 I'.Ono On te'a. • _ ., .,tora to Van dcr lac, by '!an tier •lee Van der Zoo obleoto to car1t:1liZ1n[; eau+nl:1r•n as a basis for valuation of 11rivaO plant for purCll,no. i 25• S' -%`u-35 Tc?errnm b:yerc to Vc.n der icc States to Alone. Lt,tc;l CIOO.Ire to �-n ea . -, i -� �.. "1 1?Cc Ui e S Cow 1ci1. Siz;: eCted tact tont: tivo ;,rorr -^ ndE1 1 in local papors "ta:co odium off Cou:.CA for aeorat procoduro." Ven dor 1,40 ntatoc, t4in 1 would bo "butter nolltioa". Ot OL -:57T71Vl��l[:l:t•a. .A,•c�Y.ri. y•,�I.�. ql:FfI.$q. �*1' !l�Ip .,.Il.tIti IdI I, T-7, . %pI1A /'.. f 1 mr..Ru IIMF" RY 1- -� ) JORM MICR(LAB I CEDAR RAPIDS • DES MOI.4ES j L 1 J= r / 14 26.10-2-35 Van der Zee to Myers Re telephoned proposal. States Council proposed to purchase hydro power wholesale on ground that Electric would not pass on wholesale price as required by statute. Second ground: "The acquisition of the company's depreciated property a price that will build up an adequate, up-to-date installation is simply not good business ... When you declared the other night that this was a vindicative attitude to take, you were virtually asking Iowa City eople to for(;et and forgive (1) the compan.'Ees sale to them of $600,000 to $700,000 vrortit of unrelated holding companies' more or less reckless preferred stock and (2) the companies' exorbitant charges for dlectriuity in the last 21 years." States that past charges for pa.•rer have �%t.Eulted in not only adequate returns on companies' invest- ment but enough in excess charges to "pay for the entire property.' 27. 10-5-35 :,yers to Van der Zoo 1 Acknowledges receipt of letter of 10-2. Contains a resume of negotiation. Originally company demanded $1,125,000 and Kyers, at Van der Zee's suggestion, offered 0917,000. Alleges trouble to be in split- ting the difference. Suggests various procedures for settling the difference. States that pur- chase at $1,021,000 would be a "good buy°. i H. 1-11-36 Kyere to Van der Zea Recommending purchase of private plant as beet method of proceeding vrith public ownership. Advocates granting company a natural-gas franchise as part of consideration for purchase. Includes a report made by J.D. Roes of Seattle re acqulsi- tion of Puget Sound Power and Light properties in Seattle. States Ross to be advocats of purchase procedure. Ross report indicates (See. X, p. S) that after commencement of valuation and auditing of Puget Sound plant regarding purchase, a rate settlement reducing charFo for a first block from 5?4� to 5¢ was effeoted. f 1 MICROFIINFn RV j IJORM MICR#LAB CEDAR RAPIDS • DES MOINES r -- Aa W1 ■,. 2*1 �l J 29. 10-17-35 'rola ran !:yore to Van 601' .%CG . atS^ stu j, 1:yE�ra %[All C.Ili 1)j 11.:o:"O. i.y or3 thou � LIUCLoot3 ti:ut ac facia Erat aotcrn l:oucy in �:411 offer for t a ,,roperty for 1 :-aa `;117,C^•�. t[ontiona co:.r,.anyIn Itoolro for 11:aurnl r;E:a franohioo no 'I^rt of Con31-I-'�t1O:1 for j%UrOilanC. 30. 10-23-35 iclorram Myors to van (!or "'•ee Aakirg ter=. of bonds to br_ floatcO by City. 311bGe.^•'lent ili.0:1L` COnlicr9.'.tlon b.^.tl':C3n van ac. - Zoe and ::yC2"3 otatln' terms of bond" and "I, �- OU3P.ino -price of ar"a 1131tion Of :.ivivato !.V orn L't :tes t7Ir_t c6.. -.pa -i,- :,ill :�;' o t0 '.x:17,lli:�� and money could bO fliIiliv.lCf1 by 'Tall '.'1091. 0.1 j;urChp.vo or 01L;'�O retionuo bC)ni0. 31. 10-24-35 : clec c-' O v.yerc to 'Ian dor 'cc 1.ycr3 Ofi @i'� LO Oc.7.a o Tt% a J2. 10 2—�J—Jr. Telec re:. :^.:. 1c::r :ec tc '•�: � :)tatirsF, City Cou::cil unintercctrl in_:;,'ul.ar.c Of plant Ci1:CU GUOSL VGLLlh be a nrUL::.'v 'O Calle". 33 • 10-2U-35 Tolgl;wam ;;y9rs to van 0l.::oo states Van der Zee teC_oa "l.ror„ ctt Lw.ie".A Eelievee ti -t 1'e has Corwin, -L, bankar'n V...�� oc:n-pro-lco for price for ;:.e•Ilt "::i11 '.r� I:a1.rL tu1II1•.v1L OE: t0 LiE..i;.,.a i.uo LL1 .� Lr. Lf {. iiOUt:Ci1. 3 11-12-3-5 "ez"O sjy J. V .n :.cr "Lac J`"• Stating that Li.0 iycrz 41£:13 in L01-1, ro COCI'::Cn%L11)�T j r !"Yarn n : ara1 pural:Gc of t:lc rlani: at r;,.;2,C�::0. P. boforo City Couaoil but courla f;c'�j no :L„rcoclent . frou anyono to a fls=re 311 cr t`I:In `;7150;0'•03. 1 I , 1 I•I a, �� j, '2 4 .1• in� f1�y'1�A2”. � 1�'1 ��r �i A'', i ,� � Ik.) r 'tip r i � I �yl�j' '�"l E. Y'' � ¢1�'I ��" p, d� d � .s�i�. --� ' �i. �F'n{/r�'r1�I'I�'/l ��:r�=l �W`Ir "l� �IMr Py'� • r . �. J.... .. " r � ff � i 1. IAIf.ROFII IAFD RY "DORM'_ MICRiCAB' CEDAR RAPIDS DES MOINES I �J I r I� Y A 10 356 11-15-35 2U r :'e aanni:Aa-- '� 1nQ•^.; ^ �zitrror (n2turroyC i J �J '.l U. ty In 1.zt: liLl;__uAJ.I) t0 i'Lrl ' Cr L-oc 1'nolo-cin- lottcr from :%ors, otr..teC that buiId-I nC a .Slyd:;t ideal"' Jit,/ from b%.:yin ; th-- co—i'.ly ' e n11nt , ',:1v i n ca uu— ChP•Co or; trio Cround that It. ''7.::;:1:1 C`vold 1.1tT•�.: AtiU11 ,.ach coz--,ruV. light Instituto. 36. 12-11-15 :ilii)_ , J :'+ j , D.aI-,iait:'r, to 7!Aq dar a:.:o nOlQO17tj; j attar i;.'o:8 i:y:7r, Uig uluction!7 on muzilcl])ia U:;:i i'31ii10 in Ut:'tR2' cltles. for pu.:`oatae ofos a-ny'o 37. -12-4-3'5 3t1J:^, 'UT_^J, S:at:nic' ^r, a nd!.';arzliiEcr to :':ycra Rcis11on t.at Munielpal oi:nerc(:1-1 i.l ni 4efoato3 In of or Cit! ee ani]. .",tatce: °ht lo::n Cit; aorta of t:s CCu:callx);7 n ro to::11:;; lila positlon that, acc;ordins,* to bt_alr crginoorsl eatl!.ates, a compl:to r:^.:1 adequate nuns -.,lant can be built for ' 17,0:)0. 7f co, ::y pay about that much for a nlnnt winch E;onaratea only about ot:C-,.af of tii,3 ourre:lt u. cd In tiie City. ihair 10.c- caar:o to bo t;iat ;:rico Of `.`E°2,00'0 is a )..i.tLle 11101.'I to 'lar. uer ec !i:iC10^'.inr loner t0 �..•. ii:1i'tin, 8y�:ir Of lova ,ity. :1CUoi ^.aall:la of :':ll 1V-s"otc at �'rf') !`.ice • , t t,....,,, ':i; "•i)i)::il : uv:.et • 1a Very i'=l -,A; t-'.'te mo: -+n' -W, .'•:Cl' t' -:'t rcceiv'0 t11:> ), t �o a.S.1 ].a '•rico f- ou: uJ_i '.^. ai;:a 11.: OJ.' =::, Uoa . ....•.._ ` .t. -.'.r • J..•; t_:a .Ir-DU:it 1)1 av :1'.tyi Ue Q..:M1 r�•�. z1�eY. •.. •• •• a..•r{:i _. � il.^.t el:r f:+, balltlln� a.11C11t1U::1 (f''I:C'-r%vl::" :. '^.U�L'•' COUJ.Ii 17:4 yer;i anil.y i1C11i111Ci, _ll" .:C .... �.1,'4i:ap "ou 1:tia fira::oSnC.") f i i IAIf.RDFII IAFP PY 1" JORM.-MICR+LAB'-- 1 I CEDAR RAPIDS • DES MOINES 7 L� I� I Cr—+it—�T ' 0t r va„ a0�1 tii3i. C^, GSOd;I ,a ' n a •ul::c�nlOo o; 2ii_)T•= ou oAv.1 PTno.,i f�LO optm",i;.tu;ain Zn `ZToO gma PCttO aU::o,; P•ry itL�i't ID; Tjo7L ti Gt?q :Oi;.LO11+SJjTfI /i1T.7 t3S:Oj 0:( j.. oc.7toP t:�;_ 01 D.toG;t rc—a—at'6C • i I LZ as 1 !',fit ' f I I 155 IAIf9tlF II IAGO AY I �..1..___� .. -JORM,-`MICR#LAB CEDAR RAPIDS • DES MOIRES 01 i:u y'C CTx ;tr�1: ,o sT 00T•7.' CV ( %Li�T'I Pu•s a r:to:: AW, r::ol 30) �z1Tit ';a �nn� oy csoGlt er,:,z.^ate„ �S—!'C-G ' Sh .J,"J`itl♦ 90U Ph101", 1t�a�"T'MI0O Jy. tr Jit 01 V.LVI �t 0 -ca JV `Dy )L 'otqutjuty aoj.rd Gtj% gnogv Oq PTnor, sc � *oiiZc;1 ? ao�, Clcnp .wp, on C.roR;A c�t—Ca—[ tit 'luvid sq TO rsol OT41 30 Pala unulco cr:; a05 cco'OO(u I, . o:cr: 17j Ci j any i "Om, folia 'sononat; 'oaoStOq 0L In a3ft(;,r zu;oI TO f:u etco iut,)joti zat) twI, ::q ep-ov 1uac: 01 cac:oxo'N'T uj `d'CGnoTArto '.lt::.noq mul 'i cU,',l'ia cot.i;ln io coc', o oa�jp ',Knq 05 o.m:OeMrr I Cr—+it—�T ' 0t r va„ a0�1 tii3i. C^, GSOd;I ,a ' n a •ul::c�nlOo o; 2ii_)T•= ou oAv.1 PTno.,i f�LO optm",i;.tu;ain Zn `ZToO gma PCttO aU::o,; P•ry itL�i't ID; Tjo7L ti Gt?q :Oi;.LO11+SJjTfI /i1T.7 t3S:Oj 0:( j.. oc.7toP t:�;_ 01 D.toG;t rc—a—at'6C • i I LZ as 1 !',fit ' f I I 155 IAIf9tlF II IAGO AY I �..1..___� .. -JORM,-`MICR#LAB CEDAR RAPIDS • DES MOIRES 01 f� 0 4) 1�1; ti NIf.POFIUAFO. PY I �' 1 JORM-MICRA LAB` .I CEDAR RAPIDS • DES MOIRES J. r 7 C 1_........_.._.�� % INVESTMENT SECURITIES \ TELEPNONC'u DES .MOINES BUILDING •1 111 •i r� .1 I11 .�-/ ii l'. f. "�/1�1'. ti. Ali i\•A •1•ll l•i Il Apral. 17, 1.90 Lir. Ricivird lielLrn, Economic An::lyst Department of Commerce office of the Assistant Secretary ?ashington, D.C. Derr Lir. llel7nvan: ;Ile have been delayed sonewivht in nnshvering your Letter of *larch 7th, because of duties outside of the State which have nal:en our time. ;'e have had n vast r:motult of experience, as you periahps know, in the financing of .mtg vat t.;mrty yec:rs mr.Ie: t In their .cfforto to obt::in prm0r;;hSp of HIQ 1.01:011. 110.1il.io:1, electric light, and gas. RIe have never felt thn.t is sma11. n:uti.cip l.ity in the tliddleaest shou7.d truce on the operation of its ."as plant unless it era= already sucrersful.7.y operating its watea• and electric light; plant: Us in;,, the outline of your brief to dirr.0:;s rm tr:Sn r:itea!aions, e:e w".1 :Itte!.1pt to ;:novrer the-Miegestiona of yo.u• ont,.l.i.or. ener:'''ly :•Iul then give n0ecific insl:ancea of their operation. ,17.. The trend over a period of years of tile rbil.ity of lnwainipc.lil:ten to obi_sin funde.to build olectric 1Lalt — Plan t0 tit b.1gli credit 01' :11.1. mun:!..i;x:l.i.ti':;- 1:: T_oi':: "n;1 :uijoin.i.nr Gtutvs of !.i].nnesoto, Wisc:oloin, 111i.Irlia, .`•;i:;3o;ui, il.:br.slay :Md Kana:s, tl:c overwhelming trend is to finance lTojeots of this kind by the isnuancu of rovenue bonds, oxc].w:ivcl.y. Sinai: approximatoly 1923 the State of Io -a, xnu neighboring Str.tes, b:Ive inrlugurated legislation rdl.i.rh :i. t, the i;::n:lean of ruvnnucl hunrl, Tho `imnhcr T.:n'r known Its perm Section 6134 of the 19.'9 pevised Coale of the State of Iona, ll,i a lobby. career in the legiOrttuve :, uT erns opposed strongly by the utility lobby. The first ]are that wa:, pz.ssed erns little bettor than nothing at all. We were not even able to get anything said ahout the type of revenue bonds Lo be issued, i'o•DI o1' Lho bowl, ul' nol,iccs to SI!' required in thu-IOMMItco of these bonds, or any othor of the details. Cradu<:lly since this law ems jxissed however, 'ere have boon ablo to :;ecurl: slight modification of the Sta ate itself, end Supreme Court decinions have helped us in diagraming procedure to a point:^.here 'rte no.. hatvo + rensonv.ble yell nsscmbled vehicle for rovunuu financing. MIrRnFilmrn RY IJORM` MICR+LAB' CEDAR RAPIDS • DES MD INES j JI aai R r I 1 I I ,1 1 J r�f2. Lir. Richard Hollnt.n 4/17/1.0 ,o r) :/�. The trend in the altr:_nrttive u::o oC.;�neral oIAir•:ttion ur MWOM110 boll -Is. We leave complr.tely :-Miloned the ir:nu:utcn of Goneral Obligt:ti.ott bonds in our territory for the re:., -on that it in r.bsnl.utely untieceor;ary to increitse the collrttl:rail oblignt.inn in order for tho mrrkut to ub:;ot•U our revenue iesuen. I"e have a conAlLuLional debt limit in Iowa of 5',1 ;.� which does not permit construction of net,i uLia.ity plutts or acquisition of 'tile plants from the owners, cn,i still. keep ou• municipalities vi'thin their debt limits. 1[ovevur, -.c have had no default of any '.J;1(1) not even in our• nmall. town:: in Iorm with potntl.ntd•.nn of 0110. thuncn.ud, so dull; the population are getting to tho point where they have ne fear whatsoover j of these nlnnts being able to iv:y tlicir original construction costs. J /13• Yoe trend in i.ntere+`t}•utas and co,wnl:::;ion:;. The trend in interest tortes have boon definitely lower at all times, and the commission spread has follovrel the inti)ror;t rette trend. It is absolutely impossible for u4 to purchase revenue, issues with a soreud in O excess of 1.'4l to 2A gross. Avernpe, interest r. -:ter at the present time are t:pprori.1 -tely 22"0, and we feel tl-ua it, von-ld 1311 better i,: those bonds soul .l he purchased on a 31N to 3?4, Unnis, so th;•.t we could ,.get better institu'tioru.G, sales. Local iusurnlioe counani:n hr.ve Bono into che: per bond territories for their bonds; bec:tu::e of the lour intere:a r,tus that prevails in our =rket. .I� #4. ' Activities of interacts opposed to mninicipstl otrnea•nitip, directed towards hindnring the obtniniuL or money. Irtl•luoncn on cloctionr> Y 'l:he us•a of i , in anc_tinna,_ Ob:;ten:_Lira and de).;:y.i.ne tactic_:.! — There is an increase of r.ctivity by olectr.ic U,;ht comnnnins to hinder and retard acquisition by mtmL;ipsli.Lio. of t -heir electric light punt ,•Ironer- i,Lea. Tit," , first LhLng Lho t.u.q,ln dIl' tilt: ,wcunlu,ll•Y :Iso toll 'L: Llat it, lr impossible for the City to finance; the con::Lruct'ion of a noir plant because or the excunnive interOsL chargee, or no tt•HwU viimtsoevor for the paper. In case. the election .is fi,voruhle, in vpilav of this pt•opngr,nrin., imrnediatel.y injtine tion.^, aru filed trying to est,.blich the fact tint their. bonds are G'enerul Obligation bonds of the Community, that; ;his ia:>uu of bond., is lll.ogal, bect,u.^.e it puts the oity e:•er its uou,tituti.onal dent limit, I-nd notices were in:,deyuate wi i the Mlllot aimb.lCuuIui. 14ol., of out. city olfici.nls hol.l office for a two Year ;,eriod 0111. It 1:; f>.. tet: d Y y. It V..t if by bringing there injunctions, they cnil atop construction or ncouisition until L such a time its another city election rolls around. They go out and get back of a neer group of loci.l people synne,thetic to their poi;ition and in luNly cases are successful. in etcher tftro;rins out the olds Council or getting enough of their rol'lowers at the Cowicil to change the entire complexion. 115. State and locul laws. Provlsinnn favoring in,i hindering the finnncing of municipal uowet`ul_nLE. Yo,n• reco_imen.in.ti_nn_> Cor cltan�des. he hul.ievc Vxrb for the 11n5t rr'Pt� Mvtt. the Clr ntcr ;,rovisions governing Ii:Ldd.larw::burn :;t;ILe.❑ rot• Lha :cI!uiuLtlnn of their utility systams, and for the isruratce of revenue bnn•i:• for ;I:t.nlomt t.l,creof aro tlde,lu:ate. In Iam wo mould l.iku to nee our 1; ;: ahzingcd to the point where Zile city r;ithout incurring u i; neral. li votLu be considered in n 1 Ir i IAI[Rnru Rra RV .J -MICR46LAS... LORM IEEDAR RAPIDS •DES MOINES; R r I 1 I I ,1 1 J 1 i Fill'' .) D -i s f f I � 1 Ur. Richard IIolllnan /;/17/40, colanutin, conr:titution:iI debt lirll.t, n!.ss an ::mondm:ut ::o tlu:t the city v:ould oo•piv:nt rnd +::::ref, to •iLni.nL'::in c r:atu s11CCioient to pay oiler.tion and amol•ti:;Ab)n olm;•ga::•. Aa i.t in ;:L the :u•vscnL time, we can establish a lm:ximtm an,l minim n rnte cchledn_o but thu city does not agree to m::intain n .:uffi.AenV. r..te. It im.:: never nvrle any p::.rti- cul.ar difference as frr ::r: the avle of the bond:: lol:::ll.y .re concerned, 1 huwever, l'.•IRtorn in::uroic:: r.o:;q:nn:ie:: proCer Lhe other type of lien. We also believe Ur:t the StF:tute >il,nrl! 1.e r.1.;l.r.ifiea s•- to th ri. hail of the city at thu time of thu ir.nir:tti.on of tfv.: fr.nc!ll::e. Tire Supreme Conrail In Il.11nr,is hnva hold LIu1P wen r.il:iit:: pl•:rvu:ing to build thr-Ir own municipal light olanL:;, th:.t the Company in; y ••e11 il;:; service In the city even : fter the Cr: noh.iso c.:piveo. P• ri.:p:; the brat ans::er to this sitivition is a conriauui:.t.i:)n MIL to condemn nnll ti.kc- over the orooerty. I think uracil ful-tI c,,. :•Lkidy ::h,)uId be ,iven to this obstacle, and if conderuu:tion pvocccdings vi- %,nine to br rnrcr:;r..ry to gut rid of a pourer company in : community, z. bet.Lor• tierin.i.ti.on shmlld be written in our Statute books e:: to the ri ht: n.• thu city in determi.nim, value. In this connection the. i.nt:mgiblo v:)lmoo :;hculd be given no credence because it in hard for us to conceive tH:lt 11 po::<u comp=.my ;tftcr the expiration of . fruncllise 1,::: r.Iiy rl, ht to dumr Ild going vr.].ue. Citr:ti.on: Suprr:mc Court Decision - Genesoo, Illinoiss. j G. An exnlan: tuxy der:cri;itinn or Lhn prooed;u•e Lhr:mCh lrili.cil Daulir.ip•I.litir:s go in obt:,ining flan..- through bonds i•or the uat::blishment of a power plonL, s0 that the lc I:r_n mev h:rn_:io:ue irl_ i llt into the mochpnirs of the mutter._, f There i:; an undurlvinl; :lirficulty tlu: t; confronts ev.ry col.mullity becam'll of the ma ss of drtntl. noruns•n•y ::lid the len�tb ^f time it tl•kes to col:p].y with s1w.-Le provir;.ion:. to put all. o" Lherc details into operation aid in rluoilolnl io: l order. Ixm:inn0ntn1 n.dhcronce. ri' mua.cipal ov.-nor.,!:ip as a ;;ruup, ::In.a,lnu• th:•, ln. r.i.l.q :,i'I'i:^:.1;:, 0r L:;;:Icy.:r;:, is url �nlbl.ir: intorest .v -'Ah r thr n •,r:i.v:..te SO-Ifi it 'i.ut.nectu. 'rhln ptlbllc iuterc::L 1 vury erhp.ily rclanrled by uCi l iLy ron;c rlh:::. 'file. conunun motilod employed to disintegrate public opinion :uui ;ublic ovruership h:s brtcn tiro sale of preforrud star.;: in ::mall r:mo:lnl; :in r•:'•r:h :o:munILY ;:o thvA, tiro::e --tock- hoidm•s r;ill be so .^•elfish in Lhr•ir i.n!:>. b,� 7 •Ih el. ,!:vi.^ inv,.st_ i.ha:y du 11ol, 10.11 to t.ho ur::;d:: of' i,l:::ir cal nnuli.ty or of the I exec^,sive nroritl; vrllich arm. tc!:en ou'. oC tho co:aaiuxilLy etch ye::r. ,L)n:i:wr serious linea is to correct the mctho.,i of evalhulting electric light 1)7nnt, in occh corn^amity. The xntio of tFxnble value to actlral value is no ridiculous tlu.L it, i:; imnedia:tely ::er:n that po,: r conpl.alos ::re gt•.ying but a fruction of thu L'r:x burdun vrili.::!r they Ainulcl pny ill ench cotvaunity. ' f Attr:ched 'hereto i.:1 r•. list or only :. rep os. the situ -,tions ill v:hich v;e P:il.i try '::i :'•:7int .1111; :7; )i:YC tl:e •'.c:Ivol• eo!tp%nI , trCln::11.:r: G_ llr. ;nrds t9 ob:itruct Ulu•be;1L intereea:' of the co:,nneuiiLv in ncyui.r:ing thuir electric light pl! ntn, -n(1 ill Eail,l@: inn':mcc., th0ir 1;: t4:T:gr i)l: llt::, uvnncpmrn nv ' 1" JORM: MICRbLAB j +i I CEDAR RAP]D5 DES MDIYES 1 ` r' A. 'ul4, Str. Rlcl:::rd n, n`„Il.: 7o• -r ,"nctr�c T.ia•!a Pl��la /,/].'7,//a0 i?41tt[: fUL yc;.. .. [;U r. .:V'n lc4llt lIN.VC.! I.%. r,':v. u11, !'' , of hUVIIG, l:. .; td lied to vote L i..^.11nlC:'!'a" ?IcJ�I resuJ.t of prt:l l..i•gl c1rf::7:. ilii !• r..h lar..., i' rl ..!ll:a, .:. 1 ''(:1l, Jr.1 Ulil U. fr:rlr,l:irc. The "r;unifi"i t;'.Itorall` rnLr ::n..:? j :'t;' ru'.:cver, Ilurir. Lhc .:: I: 'r„ r ..•u!. .•i. r. ur . ri: .. r. ', _I 111 i.•L .1: L.., .:3; tia•ouj;h the el', Ort;l of t:l:: M'I it ! Ly, Ti rC- ( Z ", !9: 1' C. ri IV I :.:r La:i:;y t. .• "I':,•q: 111.4: The i.rcl le£n '..a:ci C„t(1•,: 1' '..11 : ?'L' r1 :: _ .^: v: a'' r:'L t:;n•.[:r lola,r:•Lly. Ir. 'lea Imecent. fJ;Inellirr tine 6ity r•.,. '.n: r n ,i:.11 tr: Cuc1,l::i:. 1.t (,`.'_„dlO,()CO 1u::8 (1e,,m'Vt: i.h'tiUll. ! t•, 1„ (1 :: 1!''I r! :11, 1,:rr r. Thu .rlu•ican :.1 cs• umjc:nj n: ih.r 'fcl•.L v1 :. art:: i.n D'vC.1l1.1'±'t Ull 1. :•UI.t::±:Q±' b' _r !'n!• im. 1. r:., .r r.. i.: Ci 1'11, [.• nu [] r.r: tCi;•:. .. Of T!.`•:OI!•a:+`;'•, itnJc-1' �i]'i:C a. `•n:! l.i J: Ui.l' ii: �Gl:i 'li ey, rv:'LU'!' :ll Ol'('fili�$L 1:.l tree J.71 1'"',-rlllwl't tp11 .. •' '''1. 'r ':. .. ]' ... '.'L6'i ty '1±'i 'L•r. ,. dCal. Uf .•':IICy, iiq;'i' .•.:: Ll!c : e:,'.111!.,i nll :1 L h: .rntcr7I m %. ., ...'1: !ctl imn b "'� .A±1'. .. .: L.:.: ]•. i'y °. P. .;Illi:!', !'rale n,.nor of both nf-vnnrl:r.;rc in D%vc.npol•t :.111 t!:'.: 1a•e:'idelt Q, 'ke bir; 3cnhl:iv. idler fol•RLel•l.y o:mod thn '.'LtcI' E:Cri:.7: i±y ill f:• :'til :1't Gilt! (:o1c it to the ;.l: r5cta! igtr., of lic oi:lnl•:.1l.i ror:-J:1 d in t,[.. Comp ny yta r.r. lbO. T111:1 6l:fnr:1, :u;b p na:: , ,.. 'rt • r. f, ill.: '1't•L'C.t!t 1..",1 tG1 lroperty thc: fr.Ce. of :;ilc•r:i.:s tis' Mie c pt•dst lit c• : . nor- [ 1. I ., tiC 1'U ::LtffJ.eiell':to , -11%j •(1eaL;yvar: t:l,t±i. Tliv,o ycltr:3 taro t ;.::. }:'id.:•!.: 11', 117:1 fOVIN . Oi', Sh [',d l; /L. •7 'IM I mor.i.111, I:ht. dil., l'SlltLt.d pl: lit,, r vo; crl„ V_ ti3 i:meri.c;:;! iTater. Slo2he Cus:,t,ry. f.1d to ;.i.c p'ur,cr to the CU.; to oral itt; ratCr;:G1'1::i 1'roi.crty : ml Cl•( eta It .^e".l'u or c1cr,Lil,n n•.'::'. C: 17.1.1:67 cnd i.nun, (lit,tely t`1'furt•:: I :••. ::r.1ie to lsneii: sv taiC li1•Cr:'ei•ty r:1 n )'r .r .'I r!i:: 111(• prie[.'. Tilt- 111,1.'.:,.• 1'r l•,{.['ll t•!11: 111•1,'1!:1Ly I,r:l .L t:. 1.OG,:, tit "1,(':0(I,IV)0, :.1 I".!•nllt•11 %ho 01!11' I!lL'i.!)ia;�' Itl:.l±t frola .t11I'Ly to fort;'yetll'a o71: : lit! it .J 111.11, 1naell 1:l j)L it :'il.'•L tilt .. 1'el .i! . 0171 l:1: Of the Utility cilli: to Koo:nll-. 1:1)(1 rXI-C! v ry :'-it t:.'1!t in L!:cir no;'rIIli '.':i :: I••[1 t;oul.d nut. cc' "it prieE• 'Jint miyolu': COLI](1 f+,Jn:'i[tr. l• 1'!'t: ;'t4N 1!'9. POrtcl z tv].y, the C.•le r: ti Oil Voted to i:.1 ,I:1;?,i;'ilr. l:: riG]'i_. ;.:!!I I:i !'•11:,1' by :r. C'j1.11:titlVll or cr,.r truc t:.( -u. The Ub:il ity rkx-l1' .y ill:.t:h.(!..1. Lel yL rcor;111, .11i't Oil tho limA'; that t!.i.(. wri, . double pnrpo:;c 1:nllot n 1i Lhel•Irore i?l.e;;a. The Gide r.,< fmight bi.tter]y in thv ?.olr;l Cotu'tn, tilt! to EtLneaC: 0,0111•t of Ione. T11c. ruprulle G urt held In :...ror of the: City. I1; is uur: 1tot;si.h]e I'm cities Lind toilets in IUi:ti to vo Lu wid liuild II ilex: •)1011L b000dt cit onl;ilicor: e5{:i^tU 1're:, of ma cCl;:•tr1.n:1]4in, 'au1 lw4ng Li.il. I'a•ice Tovrl l*r . t::..._. or buylt:g the C.-Arting r11U•,Crty nt iLt. CIt^•Iruc); t[•u ',6Tllr'. .;Gilt ro CI r I KCOkld_- to t: l:0 1)1.(15 oil 1.1.1 of the (lifforunt :,eetionr. Pur it. I. ct• Lr.u:LL;u ( u(! ( CLur :.: fo-ild out the Ilfir CV:I: 13•U['Li'•il etn(:1'r; 1'.n1'i'r bC r r. Cll 'eL1on :)i•7C 1'iL:.].ly t:blc ' a 1 �. :. n:. °!n... clld !:lL'clw::n t' 'ir to (u•ivt hu rt•.ic:.n 'fntc•1• ":(n.•i::'. C. '. ny il: ne en�� •u f11:1t1'J 1JLltj till GtC•?.l for ,...'�1, r�1�'. l'!'I:' ;'i:!':U it?_ i•.ill..I-mr 11L col 11(l leer% bC• it. -.Cd all$L' y, told Uw 11'.11!1. II!I• 1'' !.l9'I '.i!rl , !, (r1Li ti: !Int: U:lIL': il.:: uWll ..r. IIC'1'S7n t'ilG �•,rii;CGl eOldl)O::f.d Gr .,.a: OV "Ir"ll•111-!ili !)l i1 ..'..tel :. J.h I1rP„ biLlJ.d ].II[(?, hltltlp111r,t rGiliptrcilt, ;led rf:::(::v1,'irt r•1.. Lolr' 1 r ., ' tr y' +,:". , :65.nh .. vlvat where It. ought Lo be. '•r41.,T',. _`.:,j . i.. : ! p 77 ...�I �. 1.fl: •. r'1 "'1'ln?,liG,� 1 ..,1.'�. 1.•1• r :i'-��et� T�^!. r f mirpnFlImm 6Y �. I"1" JORM MICR+L'AB` CEDAR RAPIDS • DES MOINES i I -V 0- Mr. k(ich,rd Ill:].Jine:.n I i ! Jrct_r:_,i?J( I7.11nni: i i I �i l :a1 S.1( ,! . rcl•v111c "'• I I i t.!le r4. Fort Doace. Io:':n•, k'Ioetriv t_ Thom IC:1 }:(•1:71 ::vvt•r'lll :•tt'•e:ilL:: i•i,il: tlr Vrrl.'J RilUlltlilr:•} uli:r,Ll'lc !Ll'klt pJ.u.nt by tits City of tort Podge. Tho larder i1+ Lhi:, rlovc,w,ut al: old doctor by the name of Dr. Kime, retiviLic:slii.od dorm nn(i ruit.i+ing rias heard ;.bout the :ik.ttl:ltirllt dtn•?nv Lhc 1;• t !'_v( yr•: i•:. file. rlontln, r;,;u how- ever, the old and vencrvlble Pr. Irime ;:;lid he r:::n going to nt::rt 1, rlrive�for municipal osnership of tho electric J.i.l;ht '.rat., : ntl c nnrntnecd boldly in the local newzpaner the rec.son lie irA riot b:Ien : cti.,Q in the mat Ler for five years was that the loerl cl ctric eonpnny kl: r' el:!.r:red into r eontrc,ct end nr.id him t53 0:10 a year in c.' -1.,,h to 'Cecil out. of LII::.'.,-: 1.. Wh! -' her or nal: oi.ner 1.a;ney was paid was not known. But tlu•augh cert: -.in ratorney: il: Iola: •rho rc• 1;•r:nua foi• thio ::ort of ,.+or]c, J t. ir. ant• c,pini:,n thr't the lil'.i.l it', !l, vr• ;:•. i•) ant ('u; (::mule Of rlr,I:o., to bay Off consciantiuun objector:: 1,0 Lhc )•lmc.::•1 of thoir• fr; uclii::e ri illi:. Mil T2loctric t -lilt _nL 15. ford ._Io::,: ._ . ti i'1 The To:'.11 of ilil f P,} :•. l'i:r •d I Vi yr••'r:: "n i.n ,d"I' : t: x•11.4 1 Lr r,:,tl IBlU1:LC1— pal light plant. fin election ,•; ....•.• tlelrl r.tTl LF.C: fl•r Irrd:.i.;:': oC '110 Light i'Ir;rt.ir;rintern Light Por:er Coln}rainy r:.., defo.Lc:i. !:noth•r alulair,n :..., ka•]:i :.aui the Torm ea.s rmthori.zed to conr,Lruct its oun ul:::rt. 'iii': ':c+r,l.r: aL r;,r: lc•t to the Monroe Electric Cocln;my of Chicrgo :.nrl ::orb: t.... :.I:: recd jurl, Ut tinge t:o h, vo in- julldtiolln filed c,tt•::cicirg file cl.ecl._.:rl Irrnuoriiinli:.:'.:r.ort.i.n(; (.arca it.ntirnnl debt vlolra:iclu:, r••tc. The Fnprou.e C•,nrl, 1::0yd ,int:n :•n ollilJon v;.Udc.ting the eler.tiou. Irl the mCnlltinle, :'noi.hrn ;nit. r....' brr,;l; hL r:hirl: L:id in the CourLa for r.. trro }'eras time. 'fhe lett(:• ::ni.t .rc;:rrlv,-,l itself into ::n ouoter r,rocceciings by the Town, ;lnd it ern: nal: untie t.l!o y': rn o.ftur the municipal olectric plant r:r•.; comnletcd Llvit the Tulin ;rn:; ,•.lily `Q ou::L She Utility froin the Term of i!:il^o:vi t,nd r,:euro the: 1.• nt -5% of Lhc: 7.i. -11l: n1vilL u::er:. for its arm 1,1"llt. Diu'iug thin •t•vJnd or Lim. J1. i n:iao: e:: ry for Uli:? Cocr:c:ny to Carry both bon6s filet inter^::t CCn::011S :Ctt t;jc, r 1::: t1wi,t". 6l: to for tk:e reason tile` the engineers bird set up the bond reti.rinwint c:chedtt'.e on e'. h;•.::i:: that antici l^.ted the. fall lord. f.'hren it becowe L,nonn ".It: t thrur. ;a : .I to nor; ry clelinqul:ncy in 1.11a iutl•rc:r.t, tiro ;'o_'• T Col..lr..try 1.!.tll runlacd it.:: ,:(:tivitius laid ::pl•CU(l thc: 7,r01)1 ilk the: Le�:n th,. l; i:!:I: Lit 111. pial!`. t:::; .. D'I't re nlld tried to blly It br,nl,. Thi,: Covilvny promptly e;_1'l,nd. 3.11 I;i:e ul.d bon.l., and re- issuod them un :. c:.lightly c::tunlirli ;chuliu'c ah'oh .;a or vv vlrl•yk:•r11J to do +.nd which t,e did beroro sir: rot the of deliuqu.emci.c.a h•:d am cetu]cci :rt. This action dcfini telt' l,rsuired the To,:rl IS no ftttl.0 o aof: ni L t,: rle7.lu';unnoy, })it ll:.t fall th(.. utility nndar the Lniry •:u 1.11 9:nliv.l,:•I.'. : I,: '.:,'+;,:rloo, e:•: :Ile t•) :ecnrc ::lout 75 lAt1untlu•o:: of light, p'•: lit u:;orr Ili the Trim, •churl! •.... .•.;fl'iciant to hall In el.actioll Ire sell. thi: ;Irnnnrl.,• :u : ::i•. Ji:ff!r r;. of . ' '.''nter'la'.1. Upon 1.11 :'c'r:I.i �; !•lull, :i. .Tui i'1'iu:l L11 Flit ti ,,IIL lel 1,(• : 111.111.1</6111 Lrr"!,n •, !•!p, lilt! been in tho ea:;lloy of thr: Ced: r ^;nil1; Cti.':ii;y C•:rllr nv ('ur :rxe thirty yr; r„ liuly- evar, t1w `,ural ans forced Lo r:.1.1 fr.cicr.'.!1 c, inks L(+ ;; I,Ir_ !' o; o, c'u ;Fac of :.!le pro cr Ly, :,,:.,.Iy ivu to on::, 'Tlv rn;•;+••r i t Ill., 4 • , :11 I:ku�(. lltil::_tion is de}initcl;' ra;i: of lire reit' i.,; t{:... ..1t:,1,; '!'n;.n in T.o":I, ftrr ^ivu ye<r:• of r.c,dvii.ier: Of tui.• t;po M Jrct_r:_,i?J( I7.11nni: 1.ci_l,ric',ir�:C�'1_,IL Thir Com:,nny ..':i•o r:u 1 r::;:i' :a1 S.1( ,! . rcl•v111c "'• ;,, t.!le ii:w i:e: r.:mlT•Cil6::e6 .;; 1,. rt fru:.! i;ku3 City at LA 0 iCe of 1:a.1 :•I :•0, •..ni sco :I�.Isl;Lur i 6. "! C]. 1. n: J. ilk:;rill^i.l],e, };:.d a _ aa/ IAIf Raf II IAFa PV I -�" I —JORM "MICR#LAO- 1 � ++ CEDAR RAPIDS •DES MDIYES J ti #6. Mr. Richard Hollifinn /,/)7//,0 I very bitter fight WA the Illinois Ponpr MP, ;-4ii.ch run over a period of nenrly ton yisrs, ami wru. vari-IN to Llh: 14qavmi; AM A the Stc.te of Illinois. Tito Supronilc Courtlf, opinion i:: lk,',l; the ruling cruse for the Towns of IIJimils who Arh Io own Mr own MUM, rad cup :- Clear cut victory by the City. Mover, ties Illilloi:3 CourLs iw,v-a allowed the Util.itin.s to continue In bus]jiv.pp evc-11 1 Ct•:J- their Ir;.;: a:. --Arad und therefore while the right lips been given for Mier bo uwn their r,,,. -.,n titilities, they Must COM111(it their bupines:; in complil,ion ;:!Lh utilltipr. Thi,,. 1:> a bad pituution. Appi,runtly, tho only -:,ity U. e:,n 1:v coi-roclAd -I.:. for us to ctz-:rt a condennation suit in Illinois- to eon-aei.:n Lip.: pro.-cu-ty of the Utility rand take it over at o ret by the cou'del.al." 1, i nit (:(1;11.t. In tili:. 11VInflor the CWWts could establish u !ncthnd AM Um cities coup! dymnd upon. f,77. laftlle, Illinois t F]ootriq For the "InA six yor'.1%; the 1111 -'or of Pr-. B. ?:,. Orr, if:,: boer. fighting 0 for a inunicipal light plioit for ht:.' City. Four or five eIv!ction:; hu%vta been held in which the Utilities. hove :mkLd fr,r 1'eleWrll Of their frl;nchi.--.e. The first rccluo::t wc.. foi.- V,-,,enty ye:-, .%', t1w rc-quor 1; -a:is for fifteen,• the neat ten and the last request iui;, for u seven yezir period, rill of which were defefsted. ;.iter the Javl,sonvillx. c-rinu w: s Ocrided i1nd rho ;;upru!iio Court had given its npprovltl to the il.-xziot proceedinGv tt;kon rt Jrck,.onville, we found that the wording on the onr)ier procteud ings ht Tafille did not, coincide with the Courts •upprovul eyjiutly, thornfortt, -ac aro fit),,; pruptirint; to hold z,nolher election to authorise the City to construct JU, non rriusicipal light plant Mid issue bonds to pcy for the some. M Orr told file c.onfidentially that he lind been nlipronclied by remVSMAntives or the ULDAI-Ji!:1 Offering him '-,50'000 if he would -aithdrta; frow 'the fight. Thiv, of noia-::e, lie i-ofused to do l:-.nd in the 111cf.liti.11le the Coliqlally loss -rltidn I'llu lm;L fui.- -.-tuoks rinnouncee EL s'ninll reduction in their local rotes i,n,l pre gojn,, to inalo every zittealpt to defeat this neat elect,inn. I 'ai.1 furt1w.-i- inforix Lion to report to yuu on thi.�- ar it proLrersov. #8. 1.7c h:.:d a very interesting fi�hl- all of !(::,r at :'pHngriold, 61i:.ru;iiiri. Thic:or the ter,.i-; of their frmichise the City lr-r if r-11jil; to tc(pi1re the 111'11!"WLY or tip: Critirliltiors "'.'ntrar C. )fill wily Aly :,Iir(:!,j j.jtAI-o0:;- First, by i,gr%:-.oiiicnt as to price. "Oconll, ity : flAtro (Jon, n.% rolloos: The City to select one eneineer, the Conpiurs Co!aprvy to ---elecL (.,,:,.e Lnl;:.ncer, bnd the two selected to select a third. Minis 1: MU'untir-11 of Krn",: s, City, ware rAncted zw anginenru for the City, AMA, Mlich Fr llowenn of Chiet',!o were selected ns enginnors for Lie Comlany, viv; the two fWas svlocted Bll-eil: & VC -Itch of Ktunw.:; City ti:; the in,bUratillLY, L-119in(IL!'s. Bl:.ek r. W01-0 very :trbitrnry in their colic 111f: '.lid it wliv vlonrly lemon: t2-:-tcd from the ,.-Lilrt Llil.t- their interests were for the Colymny and not to render ituIx..-tial advice to both parties. Vie price. , s finally or $6,077,000 vurllotl lipe'll by Black L. vetttell and Alvord) Dui%licl: C. Vo;.soiq Burns %- l'olcDonrit-.11. -'.imply CLItild not concur, and they wrote a Pnher.lty rr.!port 1,o the City, establishing it price Or 05,232,000. An Auction woo held, mul i::ninly through the effoi-L,: if the W '.'.our cowpqlly thn ;Wce of Q077,N')O ict:I6`t.;;ted by f. throw to voto. It will not be necwnn*- to Eke thiv W1 into col humAlon emu& W wN cru hope- mirpilru mrn fly JORM -MICR#LAS CEDAR RAPIDS DES MOINES I i i /r7. Mr. Richard Hoil;uan //8. Sorintffiel.d. i1i;>onri. ";tter':orks Ccntt(i) fill tllr•t the City ..ill doc'i'le to ,JU I.hi:: ,;:itl:in Lhu uo;_I, tltir'ty dins. Needless to say, some :115,000 to 25,C00 .ate e:•:f•enr?Ud by t!:c :Saver Com;:,ny to defeat the fr1,11ohine right of the City to vw!1111•c. It is our opinion thct o})tion"; :in uny fr:,nchINU givlul; th(i City :.1 rigid to ilecuiVe mean little or nothing. 'There are dozen; of other In:;t,Allcrs .In :;1!u,ll cooualulitien in Iovat card ail�eiuing fit:ac:c .in ""Lich hilrtcz fights have resuatcd in be defeia of the• Cit}' 11h their• tl ttol 1112. t0 +rnl jrP ::11,1 Uf'41 1.!:u.ir UFill IiILLIiCif.4:1 !::"/•. lit s. I culled your .r.ttention ;:hon I v7.::i t, ;i r• i l.': ;all ;i.:h Y,: n:, :: City :.,:. _: months LU) to :1 nittcltiuu ill io;rl City, Iov.;:, ;:hiell i:: cute- of the nn:;t glaring eraan;,les of this sort of activity, ;.ftrr the Unil:ed Light F', power -twueeded in electing a Cotncil favorable to their ac"n selfi.:,}1 iuter,at they ci:nu: before the public +:vain ;.:hd usred for a franchise. reneon].. They ,:•ent r.o far to ;alblich s. rate reduction :.lid onnouaced that tlli:; rnt.e "educt.ion trnlld b„ n 11„,ctivl 1'ur u. txro your !r•:rlod uruvidinL the voters ".!'proved a renewal of their' fr:arch_:•c. They furthor announced, tb: t tlli:; rate redlteticill fwd beun acclmnil.ittod it, ., so;a:.rata fluid by the Comut:ny and about 560,000 wotil.d be credited rataI%ly to all users in proportion to the arlount cf electricity they hurl uued Burin[ cite lint two yr:;:r,. This varu r, v,:ry 1;L;7.ing I•;:r.mi,lc of buying tho vuters, but they "were ruccuu::fll in ocuo'll l.shing tlicil• uurpase. I1• lre C-11 be of ally ftlzther rt: sistrulce, pleaso rdvise, 1Ll %Tyr..," ..:,�y/ li.L ,'•. Cl`Il: ,11 CARLETON U, j u,roncnurn uv '-' I JORMMICR(�LAB' - l CEDAR RAPIDS • DES MOINES I , 1 i /r7. Mr. Richard Hoil;uan //8. Sorintffiel.d. i1i;>onri. ";tter':orks Ccntt(i) fill tllr•t the City ..ill doc'i'le to ,JU I.hi:: ,;:itl:in Lhu uo;_I, tltir'ty dins. Needless to say, some :115,000 to 25,C00 .ate e:•:f•enr?Ud by t!:c :Saver Com;:,ny to defeat the fr1,11ohine right of the City to vw!1111•c. It is our opinion thct o})tion"; :in uny fr:,nchINU givlul; th(i City :.1 rigid to ilecuiVe mean little or nothing. 'There are dozen; of other In:;t,Allcrs .In :;1!u,ll cooualulitien in Iovat card ail�eiuing fit:ac:c .in ""Lich hilrtcz fights have resuatcd in be defeia of the• Cit}' 11h their• tl ttol 1112. t0 +rnl jrP ::11,1 Uf'41 1.!:u.ir UFill IiILLIiCif.4:1 !::"/•. lit s. I culled your .r.ttention ;:hon I v7.::i t, ;i r• i l.': ;all ;i.:h Y,: n:, :: City :.,:. _: months LU) to :1 nittcltiuu ill io;rl City, Iov.;:, ;:hiell i:: cute- of the nn:;t glaring eraan;,les of this sort of activity, ;.ftrr the Unil:ed Light F', power -twueeded in electing a Cotncil favorable to their ac"n selfi.:,}1 iuter,at they ci:nu: before the public +:vain ;.:hd usred for a franchise. reneon].. They ,:•ent r.o far to ;alblich s. rate reduction :.lid onnouaced that tlli:; rnt.e "educt.ion trnlld b„ n 11„,ctivl 1'ur u. txro your !r•:rlod uruvidinL the voters ".!'proved a renewal of their' fr:arch_:•c. They furthor announced, tb: t tlli:; rate redlteticill fwd beun acclmnil.ittod it, ., so;a:.rata fluid by the Comut:ny and about 560,000 wotil.d be credited rataI%ly to all users in proportion to the arlount cf electricity they hurl uued Burin[ cite lint two yr:;:r,. This varu r, v,:ry 1;L;7.ing I•;:r.mi,lc of buying tho vuters, but they "were ruccuu::fll in ocuo'll l.shing tlicil• uurpase. I1• lre C-11 be of ally ftlzther rt: sistrulce, pleaso rdvise, 1Ll %Tyr..," ..:,�y/ li.L ,'•. Cl`Il: ,11 CARLETON U, j u,roncnurn uv '-' I JORMMICR(�LAB' - l CEDAR RAPIDS • DES MOINES I , 1 IF Copies of Franchises APPENDIX VI , u�roncn urn ov 'DORM;" MIC RICA B" 1 CEDAR RAN1D5 •DES MDIYES 1 t i ti .1 i 1 i r 3 L i. "J .I • t i i N('71lie's ELECTRIC FRANCHISE CHAPTER 3A ELECTRICAL FRANCHISE ORDINANCE NO. 6280 - *This ordinance was ratified by a vote of the electorate of the city of Des Moines held at a special election in the city of Des Moines, September 26, 1960. AN ORDINANCE granting unto Iowa Power and Light Company, its succes- sors and assigns, the right, franchise and privilege for a period of twenty-five (25) years from and after the adoption and approval hereof, to acquire, construct or maintain in the city of Des Moines, Iowa, the necessary facilities for the production, distri- bution, transmission or sale of electric energy for public and private use, and to use and occupy the public streets, high- ways, avenues, alleys, bridges and public places for such purposes, and prescribing the terms and conditions thereof; and providing for • the imposition and collection of a franchise, occupation or privi- lege tax. Be It Ordained by the City Council of the City of Des Moines,Iowa- Section 1. That Iowa Power and Light Company, a corporation, its successors and assigns, be and it is hereby granted and vested with the right, franchise and privilege for a period of twenty -rive (25) years from and after the adoption and approval hereat, as provided by law, to acquire, construct, maintain or operate in the city of Des Moines, Iowa, the necessary facilities for the production, distribu- tion, transmission or sale of electric energy for public and private use and to construct and maintain along, upon, across or under the etreefs, hirhwayR, avenues, alloys, bridges and public oloces the necessary fixtures and equipment for such purposes. Section 2. This franchise shall not be exclusive and shall not restrict in any manner the right of the city council or any other governing body of the city in the exercise of any regulatory power which it now has or which may hereafter be authorized or permitted by the laws of the State of Iowa. Section 3. That the Iowa Power and Light Company, its successors and assigns, shall at all times during the term of this frenchiae, conform with, submit to, and carry out any and all ordinances relating to any person, firm, or corporation furnishing electric light and power now in force or that may hereufter'be enocted and not ineon- sistent herewith. 1787 aai IRA 111 u,ranrn Nrn av JORMMIC Rr�LAB CEDAR RAPIDS IDS • DES MOINES II � DES MOINES CITY CODE '1) '^ Section 4. There is hereby Imposed upon the Iowa Power and Light Company and, by its acceptance of this franchise, it agrees that there i .0 1 r shall be pard by the Iowa Power and Light Compony and its successors and aesigns to the city of Des Moines, an annual franchise, occupation) or privilege Lex equal to one percent (1:) of the gross receipts of the said company derived by it from the distribution and sale of electric energy to consumers within the corporate limits of the city, of Dee Moines during the term of this franchise, to be paid to the• city treasurer semi-annually on the first day of February and the first day of August of each year for the six-month periods ending respectively on December 31 and June 30 next preceding. Such franchise, occupation or privilege tax shall be terminated if there shall be enacted by the Ceneral Assembly of the State of Iowa„ during the term of this franchise, a statute under the terms of which. the aforesaid company, its successors and assigns, shall pay to they city of Des Moines a tax which, when added to taxes other then the! aforesaid franchise, occupation or privilege tax payable by the, aforesaid company to the aforesaid city, will produce revenue for the. city in equal or greater annual anaunt than the sum of the aforesaid' franchise, occupation or privilege tax and all other taxes paid by the: aforesaid company to the city of Des Moines for the calendar year next, preceding the year in which such statutes goes into effect. Section 5. The provision for the franchise, occupation or privi- lege tax herein referred to shall not be construed as a repeal or modification of any previously enacted ordinance providing for the franchise tax presently paid by said company, but in no event, how- ever, shall such tax exceed one percent (15) of the gross receipts for electric energy sold in the city annually; the same to be paid semi- annually and within thirty (30) days of the expiration of the preced- ing six (6) months. Section 6. The provisions of this franchise shall not be deemed severable and if any pert be held invalid the entire franchise shall be deemed invalid. Passed August 22, 1960. Signed August 22, 1960. REINHOLD 0. CARLSON, Mayor. 1, Cortez Sauter, City Clerk of the city of Des Moines, hereby certify that the above and foregoing is a true copy of an ordinance passed by the city council of said city at a meeting August 22, 1960, signed by the Mayor August 22, 1960, and published as provided by low In the Des Moines Tribune August 26, 1960. 1788 CORTEZ SOUTER, City Clerk. mir4n; utArn ny -' -"JORM -MICR+L'AB� J I CEDAR RAPIDS • DES M014ES 1 J� u 1 ORDINANCE NO. S- 32788 All ORDINANCE GM.'ITING UNTO In!7A P1113LIC SFRVIGE CO'.iPAIIY, IT:,, CUCCE::.^AOR:, AND A'SIGNG, AUTHORITY TO EPECT, P(AINTAIN AND OPERATE PLANTS AND SYS - MIS FOR ELECTRIC LIGHT, HEAT AND POWER AND ELECTRIC DISTRIBUTION SYSTEMS IN THE CITY OF SIOUX CITY, IOVIA, FOR A PERIOD OF EIGHTEEN (18) YEARS AND Tu FURNISH ELECTRICAL ENERGY TO SAID CITY AND ITS INHABITANTS FOR LIGHT, HEAT AND PO?IER PURPOSES, AND INCLUDING THE RIGHT TO CON- STRUCT HIGH VOLTAGE ELECTRIC TRANSMISSION LINES INTO AND THROUGH THE SAID CITY, PROVIDING FOR THE IiEGULATIONS AND CONDITIONS UNDER 'iIHICH THE SAID RIGHT IS TO BE EXERCISED, AND Tn CONFER THE POWER OF COND12INATION, AND TO PROVIDE FOR THE I1APOSITION AND COLLECTION OF A FRANCHIiE FEE; AND PROVIDING FOR THE REPEAL OF ORDINANCE R-12134. BE IT ORDAINED by the Council of the City of Sioux City, Iowa: Section 1: Short Title. This Ordinance shall be ]mown and may be cited as the "Io-sa Public Sery a Company Electric Franchise Ordinance". Section 2: Franchise to Iowa Public Service Company. A non-exclusive franchise is hereby granted unto rUVLLU SERVICE COMPANY, a corporation, its successors and assigns, (herein "Grantee"), Cor a term of eighteen (18) years, commencing with the date this Ordinance becomes effective, to acquire, erect, maintain and operate plants and systems to provide electric light, heat and power,, electric distribution systems and electric transmission systems, (herein "Electric Utilities"), within the present and future corporate limits of the City of Sioux City, Tovn, (Herein "The City"), and the Grantee is granted the right, franchise and authority to construct, in- stall Arid maintain such Electric Utilif.!^❑ nvOr, ncr ::: and m-lor the atreets, a lleyr end public grounds of The City, and to gener!te, furnish, supply, tran=lt and distribute electricity to The City a:w !'..: inhabitants and others :vithin and .vith-st the corporate limits for all lqr:fnl purpnses, including public and private use, and upon such terms, conditions, restrictions and regulations as may be adopted pursuant to this Ordinance. Sec+.io. 3: Reservation of Powers. This franchise shall not restrict in any manner the right o The City in the exercise of any poser v:hich it now has nr w:hia mqy hereafter be authorized or permitted by the lavas of the State of Io:va. ani '- - DORM- MICROLAB-_.) -� CEDAR RAPIDS DES MOINES F Section 4' Compliance e:ith Applicable La:'ts and Ordinar.cen. The Grantee shall, at al limns during, thif: franr.hise, be r.nh,ipnt. In all lawful exercise of police power by The City and to such other reasonable regulations as administrative dir�ctiv�, re^nlnt.ino nr ordinance The Cit; ^.ay hereinafter, 1:y provide. Section 5: Construction of Flectric tlt.il.ities. Ali I:ler.l.ric Ut.ilitief: sha—T1 be constructed cr reconstructed in conforriance with applicable rules and regulations imposed upon the Grantee or ordered by the Federal or State government and the applicable ordinances of The City in effect nt the time of the construction or reconstruction. Section 6: Indemnification of The City. Grantee shall defend at its own expense, in the name and on ehalf of The City, and shall indemnify and save harmless The City from any and all claims, suits, losses, damages, costs or :expenses, whether caused or contributed to by the negligence of the Grantee, for The_Cit,r, on account of injury or damage to any person or property, caused for occasioned, or allegedly caused or occasioned, in whole or in part by ; reason of or arising out of the construction, excavation, operation or main- f tenance of Electric Utilities by the Grantee. However, the Granter shall not .`be obligated to defend, indemnify and save harmless 'file City for any casts s Oor damages arising from the sole negligence of The City. The duty of the Grantee to defend, and save harmless and indemnify The City shall extend to officers, employees and agents of The City to the extent, The City is ohli- 4 gated to defend, save harmless and indemnify by law. i ,action 7: Right of Eminent Domain. As hereinafter provided, Grantee shall i ,ave the power to condemn private property for the purpose of providing eiectrical service to the extent necessary to serve a public use and in a reasonable relationship to an overall plan of transmitting electricity in '.t.e public interest upon approval of the City Council. The Grantee must e.^::nl,lish the necessity for each taking of private property, and when so established, the City Council may approve the condemnation of the private pr^certy by resolution. Section 8: Franchise Fee, There is hereby imposed upon Grantee, and by its acceptance oT this franc ise it agrees to pay The City a fee equal to two 'percent (2%) of the gross revenue derived from the sale of electricity made :to consumers within the corporate limits of The City during the term of this 'franchise in order to compensate The City for the Grantee's use of the streets, alleys and publicwaysfor its poles, overhead wires, underground conduits and other Electric Utilities. The City may, by ordinance adjust the fee imposed upon Grantee from time to time, but in no event shall the fee exceed two per- cent (2%) of the gross revenue derived from the sale of electricity made to consumers within the corporate limits of The City during the term of this i franchise. The Grantee shall certify to The City, in a form acceptable to The City, records establishing such gross revenues for each month and shall pay the franchise fee to The City within thirty (30) days following the last day of the preceding month. Section 9: Assignment of Franchise. This franchise shall apply to, inure :o and Bind the parties hereto and their successors and assigns, provided the*. any assignment by the Grantee be also subject to the approval of the Council by resolution, :'rhich shall not be unreasonably withheld. L uvnnn. nv ! "-JORM. MICR4?LAB- - j CEDAR RAPIDS • DES MOINES 1 el til iM Section 10: Right to Purchase. The 0rantce, by the nnceptnnee of this Ordi— n— snce, agrees to and—To—es grant unto The City the right, during the 1fifteenth year of the term of this franchise, to purchase and take over, ifree and clear of all liens and encumbrances, the entire electrical system ,of the said Grantee, which may be owned, used and maintained by it in carry- ing out the terms and conditions of this Ordinance, including all property '71hich shall constitute the electrical s tem or the said Grantee, whether ;located ',within or without the corporate limits of The City, both at this time a .d at the time when such right of purchase shall accrue to The City, to- ve'.her with all renewals, improvements, betterments, repairs and additions and including all rights and claims of every kind, character and .;.,rIntion then o•:rned by the Grentee and used in connection with its e'_e ,rical system and used or employed in rendering the service required under the provisions of this Ordinance. Such purchase shall be subject to anyexisting contracts for electricity entered into previously in good fai'.h.. In the event said City shall elect to purchase under the provisions ,f *,hi- franchise, it :hall serve written notice of it.:: el'ee,tinn ^n to I up_n the said Grantee at least six (6) months before the exercise of such option. If at the time of the exercise by The City of such right to purchase the Grantee and The City are able to' agree upon the purchase price, then such prcperty shall be transferred to The City upon the payment of the agreed purchase price; but if the Grantee and The City, at such time, are unable to agree upon such purchase price, then the amount to be paid by The City of Sioux City for said property shall he determined in accordance with the provisions of Section 472.46 to 472.51, both inclusive, Chapter 472, of the 1175 Code of Iowa and all other amendments and substitutions which may be In force in the State of Iowa, at the time of said purchase, provided, how- ever, that in determining said purchase price, the said appraisers or arbitrators appointed under and by virtue of said statutes shall place no value upon the franchise herein granted. .Ieeticn II: Severability. If any or the provisions or this Ordinance are or�ason llegal or void, then the lawful provisions of this Ordinance, which are separable from said unlawful provisions, shall be and remain in Coll force and effect, the same as if the. Ordinance containnd no illegal or void provisions. rte- i rYronctiurn ov l.. _ JORM`�"MIC R�LAB1 I CEDAR 94Vl DS DES MDIRES I I� Section 12: Flection RequireThis This Ordinance is passed and adopted subject to t.e approval t ereo y --i--'e lectors of the Cit• of Sioux City provided in Sections 364.2W(b) and (c) and Chapter 49 of the 1i15ICode of Io:va. Upon passage of this Ordinance by the City Council, the said Council Pose f submit fur the calling of a :;pecial election in :;aid Cit; fvr the pur- pose of submitting the question of the approval of this Ordinance and the contract provisions t:ierein contained to the electors of said City, as pro- vided by la::•, and if approved by a majority of said electors of said City voting at said election that this Ordinance shall be published as provided by law. Upon such said publication and upon the acceptance of this Ordinance by the Grantee as herein provided, then, and not until then, shall this Ordinance take effect and its provisions be binding upon the City of Sioux City, Iowa. Section 13: Acceptance by Grantee. Within thirty the Dassape of this Ordinance end its a y (30) days from and after the Grantee shall file with the City Clerk its acceptance y the cofrthe f said City, of this Ordinance and of its terns and conditions, and said Ordinance with acceptance shall become and be a binding contract between The City and the Grantee, provided, however, that the Grantee shall pay all the costs incurred In holding said election as by law provided. iect ion 14: Repealer. In the event this Ordinance becomes effective, as ,ere} a pre Provide , then all Ordinances and parts of Ordinances of the City of Sioux. City, Iowa, in conflict herewith, and more especially Sections 12.04.060 through 12.04.240 inclusive of tke 1476 I+unicipal Code of Sioux ^.ity, Iowa, also known as Ordinance No. 11912134, are hereby repea2A . I_ Read First "ime:_p�v �6 1r)77 Read Second Time: Mava3_1 1077 Rules Suspended and ^ed Third 'Time: "fay n 107/ Pn^SED AND APPR!''9Ei': A , ln7'! i A- ✓/ �7L"i'G7LL ''i"Ll / '� • 1.9/M/n66/5177/6179/162/117/061 /m �J ir, wrPncuurn av ...1 JORMMICR#L AB CEDAR RAPIDS • DES MOINES 0202. -11 I F ,A N L IDORM M.CROLAB ;2A' 191 J A r, OPERATING BUDGET DISCUSSION February 3, 1982 Major Unresolved Issues 1. Personnel a. Confidential and administrative employee compensation b. Additional staff (1) Police (2) Finance (3) Senior Center (4) Mechanic - transit c. Staff not included in City Manager's recommendation 2. Library - Sunday service I 3. Equipment Division - vehicle replacement 4. Review of expanded service levels - not approved by City Manager 5. Funding for human service agencies 6. ECICOG budget 7. Broadband Commission budget 8. Revenue Sources and Revenue Levels a. Current Revenue Projections (1) Revenue Sharing - additional $67,000 (2) Compensation accounts - $28,000 b. Use of trust and agency levy for funding health and life insurance costs. c. Hotel -Motel Tax 1. d. Property Tax Levy e. Fee or rate increases - annual increments or larger periodic increases ' f. Policy regarding percent of financing to be provided from fees or fares (1) Transit (2) Refuse (3) Other j uirunniurn nv l -� DORM -`MIC R+LAB" -� I CEDAR RAV105 • DES MOINES R;L a. _y r �J • r. l Y i I 1 a City Councilmen Huse K. lernun. left. and E. John A'osiers view the city's first source of energy the diesel engine power plant used In 1949. Helping bring publir pnwrr to .Viou.r Center ons a major orhirrrmrm in their rant• pears with the council. SIOUX CENTER'S SAGES by PAMELA A. NAZARIJK assi.rtauteditor.Puma'roa•rR MULTIPLY JS YEARS UP SERVICE BY TWO. That gives you 70—three score anal 10 years of outstanding, combined service to a community by two respected city council. men on the Sioux Center, Iowa, City Coun- cil. Both E. John Kostcrs and Ross K. Ver- non were elected to the council in 1946, when the issue of establishing a municipal utility was heating up, and they arc still going strong. What do people like that do for an en- core? Run for reelection again, of course, they said. "Wc'm still only a couple of kids, • Vcr. non quipped. "We have a lot of ideas and think we still have something to offer," Kos. tens agreed. How are these men able to be reelected time and again, generally without opposi. tion? By knowing their neighbors, staying attuned to them, participating in eommu. 16 PUBLIC Puwl R JanuaryTcbruary 195: nity alrairs, and making lung -range deci- sions which prove to be sound. Both Kceacrs and Vernon are very active in Sioux Center—in their churches, the Chamber of Commerce, local volunteer fire department (both arc retired volunteer fire- men) and other civic organizations. They support community development; the city has grown from 1,000 persons in 1947 to 4,600 today. One of their foresighted decisions—cs- tablishment and development of the Sioux Center municipal electric utility—was an upcoming issue when Koslers and Vernon first ran for election in 1946. Although Kostem credits Edward Roc- lors, the former local newspaper editor, and Maurice Te Parke, former mayor for 34 years, for spearheading the public power drive, loth Kostcrs and Vernon were believ- ers in the concept. J lltrnf_ll 11 'At[) n1' IJORM MICROLAB CC RAI, • D[C.''I0INES A municipal utility system was consid- ered then because of the potential revenue it could bring in, they said. "I had just re• turned from Europe and seen a lot. • said Vernon. "Energy was becoming an impor. tant part of lira" "We saw towns (in the United States) that had their own systems—they helped the communities," Vernon said. "Even though Iowa Public Service Co. (IPs) is a good operating system and gave us fairly good service, we felt we would have less outages and more control with our system." "We did have lou of outages back then, added Kosters. Campaigning for city utility During that period the council look a lot of Rick, they said. People in the town did not understand lung -range programming, as is too often the case. 1 J _10 r ='Pcbpic don't always look far enoug„ ahead," Vernon said. "They think a decision may be detrimental in the short run. But we on the council don't claim to have all the answers; were not right all the time. We just try to make good judgments." When the iPs franchise came up for re- newal in Sioux Center public power had community backing. Ina public referendum in February 1947 the community voted 518 to 237 to authorize a $175,000 bond sale to finance a municipal electric utility. A year later, after a petition drive, a referendum to give ips the franchise again appeared on the ballot but it failed 632 to 272. The campaign for public power included provision of detailed information for voters. Civic organizations led ad hoc committees to support the proposal. They divided the city into zones and canvassed door to door. "We wanted the citizens to understand what was involved and what to expect with a mu- nicipally owned and operated system." Ver- non said. An ironic situation occurred after the sale. During the campaign trs had predicted the municipal system would have many out- - acquired 80 acres of land for a rccrca- tional center—two baseball diamonds• a football field and .stadium, track and indoor swimming pool complex—developed with 50 percent utility revenues and 50 percent governmental grants. Maintenance and op. cration arc funded jointly by the city, high school and community college. • constructed 60 low -rent apartments for the elderly, with federal assistance; • built a new- fire station with $100,000 of general obligation bonds; • started an underground distribution sys- tem which is now 85 percent complete; • buried the town's telephone cables: and • established an 80 -acre industrial park (40 acres arc now developed) with partial fund- ing by earnings of the municipal electric and natural gas systems. Vernon and Kosters are particularly proud of the independent operation of each of the city s utility systems — electric• gas and water. fish stands on its own. Both men pushed for this type of utility operating practice. I •r _..nls complementary Kosicrs and Vernon seem to have a great respect For each other. "John's an ingenious fellow," Vernon said of Kosters' mechanical abilities. "He can make and fix an awful lot ofthings." Before retiring in 1976. Kosters owned a small manufacturing company which built and repaired farm equipment. Vernon is vice president and manager of Northern Iowa Telephone Co. which serves Sioux Center. He also owns and operates a small private telephone company. Their areas of expertise complement each other, Sioux Center Mayor Bill Mouw said. Kosters is the mechanical expert. "He even picks up on things engineers miss," Mouw said. Vernon, with his background as man- agcr of another type of utility, is the expert on utility issues. "Their strong business backgrounds have been very helpful and evident in directing the affairs of the city of Sioux Center," said Utilities Superintendent Harold Schiebout. "They take the perspective that if we arc going to be in the (utility) business, we ought to be involved." Although the two councilmen admitted they do not always sec eye to eye on issues 'The profits are kept here in Sioux Center, and the town benefits.' which come before the council, for the most ages. However, soon after the change of ownership of the facilities a severe wind storm hit the area and ops asked the new public power system for power because of its outages, said Vernon. Sioux Center acquired two generating units from I Ps through condemnation. The city now receives about 80 percent of its power from the Western Arca Power Ad. ministration's I'ick-Sloon I lydru Rcsourecs Project on the upper Missouri River. The other 20 percent is supplemental power from the Missouri Basin Municipal Power Agency (MxMPA). Sioux Center maintains three generators with a combined capacity of 1,465 kW for local emergency power and I'm cuntructed peaking power for M IMPA, Community Benefited "We hesitate to say we are served better," Vernon said. "But the profits are kept here in Sioux Center, and the town benefits." He and Kustcrs believe reasonable rates arc important, but from the beginning wanted revenues used to build up the com- - munity. This has been done. Over the last 35 years, the community not only established an c1ftcient, reputable mu• nicipal electric utility but also has: . built a S200,000 public library, 50 percent funded by utility revenues; (t I, rt"', 47 . mronriiiArn nv JORM MIC R46LAB ' ' CEDAR RAPIDS DES tdO L'VES , 1 _y part they Iron out any disagreements. They discuss differences, try to be open and make modifications to come up with solutions. The natural gas system was established in Mayor Mouw, who has been councilman 1953 when Vernon look the lead in the de- or mayor for the past 22 years, said that the bate, pushing fur municipal ownership. The entire council works in the same manner. natural gas pipeline was laid down close to "There's an unwritten policy that we don't Sioux Center and outside private companies come to a final decision unless we all agree tried to gel the franchise to service the town on it," he said. with gas. But in a public referendum. which And so the dedication, insights and coop - also seemed to reflect the residents' opinion crative efforts of Kosters and Vernon, along of how the municipal electric utility was be- with thcirjunior council members, continue. ing operated, the voters resoundingly ap- Muth were again reelected for two-year proved the municipal gas utility, 404 to 28. terms• without opposition, in November. Thr Inhwu sal •Guns ('rnrrr rrtrrnn ruunrlbnrn rnnrplraPens rarh whrr. ternon awnr a small rrl,•Phmn• wilin• wid Aotter., i, un r,pnt oo mirhanirnl mourn. (t I, rt"', 47 . mronriiiArn nv JORM MIC R46LAB ' ' CEDAR RAPIDS DES tdO L'VES , 1 _y IA CITY COUNCIL LEGISLATIVE COMMITTEE AND AREA LEGISLATORS CITY COUNCIL LEGISLATIVE COMMITTEE: Joint meeting with area legislators, February 6, 1982 at 8:30 A.M. at the Highlander. Mayor Pro -tem Perret presiding. LEGISLATIVE COMMITTEE MEMBERS PRESENT: Balmer, Perret. Absent: Neuhauser IOWA LEGISLATORS PRESENT: Senator Small, Rep. Lloyd -Jones. Absent: Rep. Doderer STAFFME14BERS PRESENT: City Manager Berlin, City Clerk Stolfus, Asst. City Manager Helling. News Media: Daily Iowan, Scott Sonner. Perret noted that the meeting had been scheduled for update on concerns as listed on the agenda as presented. Local Option Tax Small explained the Senate vote, and outlined what had been taken out of the bill. Wheel tax is the only issue remaining. He was not sure there would be votes to get a motion to reconsider the bill in this form. j Lloyd -Jones commented that the State is considering sales tax. Local Government Tort Liability Lloyd -Jones advised that the bill had passed the Senate and the House. Small stated that cities would not be liable for punitive damages except where there had been malice or recklessness. Berlin noted the importance of inspectors documenting what they see and following up on deficiencies. " ' Mandated Costs The example Perret called attention to was the purchase of helmets for the Police Dept. Small thought this must have been an administra- tive rule. Berlin pointed out that there was no comnunciation regarding this change in rules. Small suggested that the League should follow up on the administrative rules process and provide information on what the effect of any change will be. Lloyd -Jones advised that under SJR6 the Legislature could override a rule. Small said that a petition could be made for a change in the rule, the League could ask the Labor Dept. to modify the rule. Youth Employment Program Perret noted the consideration of combining this agency with the Youth Conservation Corp. Berlin stated the City's concern regarding administration and need for local supervision and counseling. Small thought the Governor's funding level was $800,000, same as before. Helling advised that the Local Governing Board would write to the Office of Programming and Planning in Des Moines and a copy of this letter would be sent to the legislators. Mass Transit Lloyd -Jones said she had been assured there would be no cut- backs in funding. Perret commented on the meeting with IDOT and UMTA officials on the long-range outlook. Section 5 will be phased out in five years, Section 18 will be administered through the State. The City would like their funding amount to be based on a formula. Civil Service Berlin questioned the status of this bill. It does have some j support from AFSCME. Lloyd -Jones said the bill was in the Cities Committee. Small thought it might be worked on this year. Modification of the Veteran's I j In F MIrpnrumpm mV "JOR MMIC R+L AB l _`l 1 CEDAR RAPIDS • DES MOINES _,y Page 2 Preference area has been tried before, but was not successful. Legislative Committee February 6, 1982 Publishing of Information Requirements Small suggested that the City get together with the League to draft a bill using the arguments presented in the material given out. Other Concerns Berlin outlined problems encountered with the State's low penalty for bypassing requirements for subdividing. Small asked if City ordinance provisions requiring signatures could be drafted so that if the signature was not on file, the abstracter wouldn't process the deed. Legal will investigate. Council has previously been contacted by attorneys for subdivisions in the County, and for those, a letter was written saying only that the City would not legally contest the subdivision. Lloyd -Jones noted effective lobbying is needed for the land -use bill. Berlin related problems with IDOT regarding a joint project. Lid -Jones explained the status of the Rai road Bill, formation of a Shipper's Group for an Omaha -Chicago line. A study demonstrating that it will be a profit- able line has already been made. They do not think it would take the busin- ess from the Chicago Northwestern line, but might be competition for I-80. The Burlington -Northern has been designated to move hazardous wastes. April 22 is the target date for adjournment of the Legislature. Council and Legislators might meet again in March. Lloyd -Jones questioned and Perret rept ied regarding the City's application for a demonstration grant with UMTA for use of five small buses. ' Ridership of buses is up for this year. Meeting adjourned, 10:00 A.M. E uironcn urn av � -�" 7D0RM:'" MICR#LAB �. I CEDAR RAPIDS •DES MOIRES ti L IOWA CITY CONFERENCE BOARD FEBRUARY 8, 1982 IOWA CITY CONFERENCE BOARD, February 8, 1982, in the Conference Room at the Civic Center, 4:35 P.M. Mayor Neuhauser presiding. COUNCILMEMBERS PRESENT: Balmer, Neuhauser, Lynch, McDonald, Dickson, Erdahl, Perret. JOHNSON COUNTY BOARD OF SUPERVISORS PRESENT: Ockenfels, Donnelly, Cilek, Langenberg. IOWA CITY COMMUNITY SCHOOL BOARD: Cilek, Phelps. STAFFMEMBERS PRESENT: City Manager Neal Berlin, City Clerk Abbie Stolfus, City Attorney Bob Jansen; Asst. City Assessor Dan Hudson, Asst. City Mgr. Dale Helling. TAPE-RECORDED on Reel 82-5, Side 1, 160-200. City Clerk Stolfus advised that a quorum was present. Mayor Neuhauser announced that the meeting was being held to appoint a member to the Assessor's Examining Board. This is the Schoolboard's appointment. Phelps stated that Schoolboard President Aldinger was recommending the.appointment of Keith Borchart. It was moved by the City, seconded by the County to accept the recommendation. The.Mayor declared the motion carried, 3/0, each entity voting 'aye'. Cilek questioned when the next meeting would be held. There was discussion of a date for the Examining Board to report back to the Conference Board. It was moved by the City, seconded by the Schoolboard, to meet on March 15, 1982, to hear the report of the Examining Board and possibly act on the recommendation. The Mayor declared the motion carried, 3/0, each entity voting 'aye'. Perret asked for information from the Ad Hoc Committee appointed re merger of the City and County Assessor's offices. Balmer noted that the report was in the minutes as presented. It was moved by the City, seconded by the Schoolboard, to adjourn. The Mayor declared the motion carried, 3/0. 4:40 P.M. Jr• -- 1 m)rnnrnurn nv IDORM. --"M ICR+LAB"- _..� CEDAR RAPIDS DES MOI YES I r' :Z: -Ig 7 -40 e_ .,....