HomeMy WebLinkAbout1956-01-03Merldlan City HalI January 3, L956.
F
enue haal
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ve wi th in'
discussed
K
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AN
s tha t
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mo nd
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or
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rre
n1
Don !I. St
,/teG
stateS. Brown th:r the on
I
Lropertv owners a P ine
n
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NG..TITLE Vrr],-C
F I RTDIAN BY C
T0 5:oO--OICLo
CURIEYI HOURS FR
rd.inanc e Nu rnbe r
d.
NGTN
I\I 12
CTTY
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JLIVE
R
oot for the tllc
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r d eJ-lrrery fr6
tcL EF st of .. KeILr
if. the -pxopexly o
dr, mp , t.r.uck cIas s
€ojor I he-..t
would be set oxts
rHil RSuISED 0&l)
CT]RFEW HOURS TO I
ERSOI\]S LT]DER
CK },{IDNIGHT TO 5
OI. . -SGE; RArs nl
10 l-8 YEARS, AND
and sec onaied b
Id aho Codes e nrr.
ent days be dlspe
the irri
E DELTqIIENCY FO
es._to hc read
io
tc:--
vr0
n-.J,
1.s_
that
TI]E
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Fos-
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is 0r0,clo
OF AG
CLOCK
AGE
ARI}-IG
,. May
'uI ing
wlth
Bow e
Uws I
ft was suggested
ft
Go rick, -Y.ea; May.es,Yea
.Ma e9_,_!49_ &I_ipq .co
c1_p1a9()chesS dI bv
nstr cted to wr'lte a I tte
u cithetreetor theteIIinhim to
was
clea
Ttre C'lty Attorne
Avenue in front
r
l[ouI clean it
stuq[ec o!-!4a
I
coul-d-..- --
,a +L
bI
-f :-ocfc over to
_t
I
t!^_
t
by bhe uayor Ent f.uedl :
V
Bank Genl 1
dsl.Fwd.$52?65.?6 19496.64
L5',124.84F,cpts.18230.64Tota1 50096:40Dlsb. 3067.52
Balance 474)2€:8e 32?97;64
Report of freasurer of Merldlan
Ddcomber, 1955.
Vtlate r }'lre Band
8916.96 L122.92 1?O?.38
St.0t1. Ltb. Rec.
1711.60 158.84 79.42
35221.48 10628.56 l_281.76 1786.80 Ll52.39
248$.64 549.03 34.85
100?9.53 1246.91
834 .71
517.68
1. 17
79.42
80.59
685.98
15&_99
a44.82
1786.80 l_152.69 E6:EE- BTE:6d-
i
t was ac compll sh
rdin and EarI Re
CcunciI.
lutrdVolunteers Flre
Ofi- (Se,,ver) Gene
- 5-E
be en
was stiII
t the eas e-
and flled
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*or ]J
.unt 54t.cs -',-
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.-/+9.u0 -2\. rL
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94.08
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22?.5A,:a,77
2.
Eng .
ilray or
orney
p. Chief
( Sewer ) Gene
Gene
Qot unc ll-nen, - Geng
Councll:nan Gene
Oounoi Ima.r---- -Ge,ueSuptt Genecf Poli,oerk & Judge Gen e
Q-eoe
Gene
.F'ir,e
Gene
2
2
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?
2
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any Ggn e
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l+2 ' 50
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Rev enue
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Company
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Gen
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Gene
6.
3E99.tt*
1r 8. 13
16. 00
a l-c
ave
S
q he EI d
tr'rank Dahl
2
2
1-55 Aetna Lt-S_lrang S,q!Clty of ldeL-55
was crade b T.T
ad. be aI lowed.
nw8
ornpany
;ra 6.oIdrkand seconded b Dl +ll
ES
L-52 Selver((I ) Gene
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Yea.
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V
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2
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2
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)
.?
2
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The City At torney
Cos
dlfflculty with
I'or the sewer I
cleared u
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ona
r epo ted
les t but
Iie was
sign d
upf r him and
havi
me nt
ha t most of the e
!q! t!eIe
nsl,ructed
ibIe.
were so
to cont
sme ts h
th
and g
orttfn".* Feasatr:-i{y re uncilLIvas oresented to t
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ith
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uch
ith
formi
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aSa
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5I T2-I2-
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he City Records.
and Merryfi eId
_ ?urpose
9-55 Don Robert
e-J5--Mr &--I[hsli)-55 Hoffnan &
,=.55-:Jon-M--i-t
'
=f5,--Teuy-i^:.-55 Willian D.
L-r5 Orvllte Vi
h-55 Herald J
l-55 Grant L.
J 5 Roger-_L_. WL-55 Archle Per
55,--,Eue-eoe-L.
Dean Ioste
_Eelold Era
George EImI:51 .lt-a t e,-Ire.L-55 Director o
L-55 1{g t erworks
l-55 Namoa & Me
1-_55 --sbilllpe Jl-55 Stone PouI
l-55 Grant tr. A
l-55 ilountain S
Thomscn Ra
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56
.58(o
I
\
I
i
t
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Record No. B1C0I
a
I
i:
CIIY OF PEMDIAN
IDAHO
ENINEERI}Ii RTPORT
ON I].IE FEISIBILIIT
ofa
GAS DISIRIBU?IOI.I SYSTEM
Cornel,1, Howland, Heye s and Merryfield
Consulting Engineers
Corvallis, Oregon Boise, Idaho
December, 1!!!
I
copy {o. 3l
1
G
c0
718
PROI
REYN
\-\?/[
I
*1
TABLE OF CONTENTS
PAGE
I
II
v
v1
vII
Introduction
General
Gas Supply
Natural Oas as a Fuel
I
1
1
3
flf Paciflc Northrest Pipeline Corporationls
Proposed Rate Schedules . . .
fV Population and City Growth
5
Customers To Be Expected . . .
General.
Resldential Cus tomers
Comnerclal and SmalL fndustrial Customers
fndustrial- Interruptible Custoners
Residential anri Corrunerc ia1
fndustrial
lbtal- Load r...
Peak Daily Gas Requirements
Gas Lines and Appurtenances
Transmission LLne
BorderStation...Distribution Sys tern
Gas Se rvice Connections
Peak Shaving Equipment r . . .
B
IO
l0
Lr
t3
75
L7
11
2L
23
2lt
25
)<
27
2B
30
31
VIII 32
32
J4
'l<
36
36
)7
37
37
Lr
\)
Cost of Physical I'acil"ities . . . .
Transmis slon Line
Dlstribution Sys ten and Services
Miscellaneous Costs
Total Plrysical Costs .
fi Operating E)cpenses
Purc hase of Gas
Superintendence and labo"
Rents, Supplles and Equlpnent
Transportation Qquipnent . .
Office and General Expense .
fnsurance.
To ta1 Operatlng Expense
35
35
?<
36
36
X Bates for Resale, Operating Revenue,
General Considerati-on
Rates for Resale .
Operating Revenue and Profit . .
Operatlng Profit
XI Recommended Bond fssue, Debt Service and Anortlzation
Size of Bond fssue Required
Debt Service and Amortization
L6
L6
4l
;
5t
TABLE OF CONTEIfTS
Continued
xu
xI]r
l,te rc handis i-ng Appllances
Conclusions and Recomrnendations
LIST OF TABITS
Table
1.L
2
Comparative Cost of Available FueIs .
Sunnary of Pacific Northwest Pipeline Corporationl s
Past and Probeble Future Population . .
Past and Probable Future ResidentiaL and Comnerc iaf Units .
Estimated FiscaL lqr,r End Residential Customers
Estimated Effective Residential- Customers
Estirnated Year End Commercial and Small
fndustri a] Customers
Estimated Effective Conrnercial and Smafl
fndus trial Customers
Summary of Potential Indus trj-al Interruptibie loads . . . .
Annual Residential Gas Ioads
Annual Connerci.al and Small- fndustriaf Gas Loads
Potential IndustriaL lnterrupti-bIe Gas Ioads
Anticipated fndus trial Interruptible Annua1 Gas Loads . . .
Surnary of Antieipated Total Annual Gas Ioads .
Anticipated Daily Peak loads. .
Operating Expenses . . . .
Tentative Bond Amortization Schedule
LIST OI' CHARTS AND DRAWII\US
PoDulation Oraph .
Vlcinity uap (1001-I). . . . :
Gas Distribution System ]{ap (100}-2)
Residentiaf and ConnerciaL Rate Comparlson 0-7:000 Cu. Ft.
Lr.(
5,
7.
7
B
B
L2
'I 2
L5
B.
9,
10.
11.
12.
I3.
1!.
1C
l6,
L7.
r8.
'r(
t7
19
20
2ta,
.)
25
3B
L6
\e
9
26
29
hl+
Residential and Commercial Rate Comparison I0r000-
B0r00O cu. ft,t!5
PA-GE-fi
I . INMOIUCTION
GENEHAL.
subnitted herewith 1s a Beport on the Feaslbllity of a Gas Dlstrlbution
systern to serve the city of l,ieridian, Idaho. Th6 investlgation reported herein
was authorlzed by the City of Meridlan i..n rald i',lcvenb er, 1955. It was the pur-
pose of thls study to detemine the feasibllity of a gas distribution systen to
serve the City, to develop preliminary deslgns of the required facllltiesl to
estimate construction costs of a dlstribution system, and to study probable
loads, revenues, and avallab1e nethods of financing such a project as a non-
profit uorporation
In preparation for the investigation reported herein, a load su rvey was
conducted by tlds firm for the purpose of determining public interest and
probable future use for gas as a fuel. Thls load canvass reached approxlmately
3lper cent df the rcsidential dwel1lng units, !0 per cent of comnerc iaI units,
and all of the industr:ial units in the City. Additional information concem-
ing locatlon of existlng utllities, population charactertstics, building re-
cords, cllnatic conditions, and local fuel cost data was obtained. A trans-
nission 1lne route was investigated, and construction condl-tions to be en-
countered along thls route and within the City were considered. This infoF
nation, together wLth other necessary miscellaneous data, fonn the basl,s upon
whlch thls i.nvestlgatlon has been conducted.
GAS SUPPLY
Natural gas will be avaiLable to serwe the City of Meridian from Pacific
Northwest Pipeline Corporationts Z?-inch nain transmisslon 1lne running north-
west through Southern fdaho and Northeastern Oregon, bringing gas from the
San Juan basin in Colorado and New Mexicc. Thls transrnlssion llne wlll pass
-1-
| .':,
, ;i.:.-i
,, ,,,..'
::i .
t..
Merldlan at a minimum distance of about 2-L/2 ml;.e6.t lnter3ectlng Htghiray 30
to Narnpe at a polnt 3 niles West of tho Clty and Hlglnray 69 to fun: 3 nllee
South of the CttY..
A recent developlent ln natural gas supply occurred with the approval by
both Feder.al and Canadl,an goverr&lents of e contract by which Paclflc North-
west Plpe}lne Corporation rdlI obtain a large quantity of natural gas fr.m the
Cahadian gas fields. The utilization of Canadian gas provides a source of
supply at both ends of the Paciflc Northuestrs pipellne and rnore than doubles
the original gas allocatton for Southern ldaho. Wlth supply available at
both ends of the systern, the capacity of the pipeline shouLd exceed fifth
year demands, and it is generally felt by those people enggged ln the varioug
aspects of the natural gas business ttst a supply to neet the demand w-111 be
provided tt€rcafter. It ls, holrever, assuned for the purpose of computlng
revenues and debt serulce that load growth w111 be curtaifed at the five year
Load leveL.
A po tential gas field in the Payet'te-Ontario area of Idaho and Oregon ls pre-
sently being explored by Oroco 011 Company of Payette, Idaho. Tro gas-pro-
duclng weI1s have been drllled, and more welLs are planned Ln the near future.
Opinions vary as to the extent and reserve of natura] gaa i,n this area, and
extensive ddlling and exploration 1111 be necessary to prove or disprcve
the reserves. The Federal Power CoranlssLon under the Natural Gas Act has the
authority, and Ls required, t,o conpel a naturaL ges conpany to Gnder evidence
of adequate resewes before the Cornmission epproves an applicatlon to supp).y
natural gas to a glven area. ff an adequate supply is shown, the gas w111
find a ready market in thLs area to add to and supplement the gas provlded by
Paciflc Northwest. 0roco 01I Company has been contacted and was unable at
-2-
this tjme to provide any conclusive informatlon as to extent of supplyr, rates
or terns under whLch gas could be made available.
Forpurposesofthisstudy,therefore,lthasbeenassumedthatratesche-
dule s and supply conditions wo ul-d conform to those proposed by the Pacific
Northwest Pipeli-ne Corporation. If adequate reserves are discovered ln the
Payet te-ontario area, rate schedules and transmLssion line requi rcnent s !ri1I
necessLtate a revaluation of thls feasibillty report.
IT . MTURAL GAS AS A TUEL
NaturaL Gas has several deslrable characteristica as a fue1. Gas is clean
and provldes even, unlform, dependable heat with no storage required on the
premlses. A high heat of utilization of natural- gas, coupled w'tth 1ts uniform
and dependable qualities, make it an ideaL fuel for horne and industry. Con-
verslon to gas as a fuel a1lows space pr€sently occupled wlth coal storage ln
both home and comrnercial establishments to be converted lnto additional re-
creation or storage arEas. Contrary to popular opinlon, gas ls no nore danger-
ous than other fuels, provlded ordinary precautions and safety practices a:e
foliowed, as they are for other fueIs. Natural gas ls normally odorless;
however, before dlstribution an rrodorantrr ts lnJected into the gas so that
leaks can quickly be dected and reported to the dlstri.butor.
It is anticlpated tha t the greatest market for natural gas wl1J. be for
regidential anl conre rclal space heating. In a well balanced systen, it is
desirable to develop interruptlble and seasonaL industrial loads which can be
profi tably served throughout the off heating season. hlth ttd-s in mindp local
retall costs of the various resldentlal. and comnercial space heating fuels
were obLained. These costs fo11oru, together rith the heat content and seas-
onal efficiency of each.
-3-
.: r:uir
'tl1
i .. -'-
i) l_
i
,ti
:_.1:
'i:.
{
I. CoaI it6.59 1 ton delivered plus {)1.50/ton
storage and stoker costs - .df8.OO,/ton;
Seasonal efficiency of utillzation - 55%
2. 011 J.7'50/ oet.t LLL,ooo Btu/ Ga1.
Seasonal efficiency of uti.lization . 72fl
3, L. P. (Bottle) Gas L6Q / ga]..3 921000 Btu /gal.;
Seasonal efflciency of utilization = 151
L. Electricit3r o.9A / W, 3lil3 Btu/ KWH3
Seasonal efflciency of utllization 3 1008
5, Natural Gas I.IOI*^/1CF, IroOoroOO Btu / l,tcF,
Seasonal- effl.ciency of utlllzctlon -?59
Table I has been prepared to show the fuel cost comparisons for resl-
dential space he&tlng, based on the actual heat effoctively utilized
with each fueIr
TABLE I
COMPAPJUTVE COST OI. AVAILABIE TI,EIS
FueI
Electricl ty
l. P. Gas
011
CoaL
Na turaL Oas
Cost Per
Therm
Supplled
26r\Q
77,\Q
12.1'
Efflciency
of
Utlllzation
r00r
757[
72fl
95it
Cost Per
Therm
Utllized
26.1!i
23"20
15.8,
13.1'
!7,30
\\.7 o
7.20
B.5a*
1I.04jr-*
75fi
1,fi
* Natura- gas ccsLs based. on Bate Schedule C page lr2.
x+ Natural gas costs based on Rate Sc lredul'e B page lr2.
1 The nn 3 100pc00 BIU
] J"ICI' (Thousand Cubic Feet) 3 ]r0OOr00O BTU
lr
Table 1 indicates the space heatlng economy to be realized with natural
gas. A considerable econony is also reallzed using na tirral gas for cooklng and
water heating. However, &re to the high saturation of electric ranges anti
waterheaters,ltisnotanticipatedbhatalargechange.overintheseappli-
ances wiLL take place except for new construction and rcplacernent of o1d
appllanceso
Gas is distributed under pressure in a piPe systern slrrilar to the method
used for water dlstrl-bution. NaturaL gas, like any other fue1, will not burn
unless a supply of oxygen 1s avail-able. Mixed with the proper arnount of oxy-
gen, lt is explostvely inflarnmable. For this reason, it is contended that only
trained experts uhich a prlvate company can prcvlde should be trusted w.ith the
distribution of natural gas, that public bodi.es cannot provide the needed sklI1s.
There is no basis Ln fact for this contention, as ls e\ridenced by the large
nurnber of nunic ipal1y-owne d gas systems ln operation in the nlidwe st. These
systems are operated safely, with very l-it tle interruption of service, and at
a profit to the municipal distrlbutor. Meterlng; bLJ-Ilng, collection and
admlni.stration of a gas system are of the same conplexity as for a water or
eLectrical systen.
Adequate insuranee to cover the di.stributorl s risks can be had at reason-
able rates for either publlc or private ownership of the gas system.
III - PACIFIC NORTIIWEST PIPETIM CORPORATTON
PROPOSED RATE SCHEDULES
Three rate schedules have been proposed by Pacific North.,:^rest Pipeline
Corporation for Distributing System Service. Tte rate schedules for which
a parLicular locaI distrlbution systenr is eliglble depend on the maxirmln
quantity of gas (contract dernand ) the distrj-butor contracts to buy fron the
4-
,,.',;1:o
i;.
'.,
J
-r i. arl l
\.-|,''
pipetine corporatlon. l,leridlant e ffum peak daiLy requlrements riI} be less
than Ir0O0 l,lCF and renain less for the forseable future. ft is, thereforep
anticipated that Ra te Schedule DS-1 for small Volune dlstributors wl}I apply.
Rate schedufes DI.l for Large Volune dlstributors rith daily loads exceedlng
gooo licF and DI-1 for Inte rme dia te volune dist:.i.butors with daily requirenents
over 10O0 MC!' but under 9000 MCI' will not be applicabie for l'leridian'
Rate Schedute I-L has been proposed by Paeific Norttnrrest as an fndustrlal
fnterruptible Serrice. Distributors purclaslng gas under any one of the three
Distributor System ServiceE nentloned above may enter into a contract for Rate
Schedule I-1r provlded the lndustrial customer to which lnterruptible gas ls
to be sold has requirements exeeeding or estimated to exceed 50 MCF per day.
Gas purchased under thls scheduLe is subject to lnterruption or curtaLlnent 1'f
necessary. It is necessary, therefore, that industries served under this
schedul-e own and maintain a dual fuel systen.
Rate Schedule S-1r Seasonal Industrial Serrrlcee has been proposed by
Paciflc Norttnaext Pipeline Corporation to distribrrtors purchasing natural gas
under Rate Scledule DS-1 or Df-}. Irrder thls rate schedul-e gas nay be pur-
chased for reaale to ildustriaL consurners r^rho se entire gas requirements are
supp]ls6 during the rnonths of March through November. Gas purchased under
this echedule is not subject to curtallment or interruption during these
nonths.
The five rate schedules outlined above appear in pacific Ior uest pipe-
line corporationl strFPc Gas ?ariff, Original volume No. Ir I ?ab1e 2 has been
prepared to provLde a convenient and condensed reference to the schedule dis-
cussed above.
.t (
TABI,E 2
Slrl.lMARY 0f PACIFIC NORThT/IEST PIPELINE
CORPORA TTON PROPOSED RATE SCI{EDULES
Rate Schedule
DS-Ir Sma1l Volume
DI-II lntermediate
Volume
DL-I, Iarge Volune
Iesg tinn 1000
MCF
1000-9000
I{CF
Over 91000 MCF
Commodity
Denand Charge,
CInrge I Per Therm
None L.3
None b.3*
32.Lt / month/2.0
therm of b111-
ing denand i+x
None 2,5
None 3.2
I}pe of
Service
Firm Supply
Fi n Supp1y
Fi rrn Supply
Gas can be
interrupted
or c urtailed
Dist ribu tor
nrus t be pur-
chasing under
DS-l or DI-I.
Firm supply
from March
Through Nov-
enber,
Daily
Contract
Ilenand
f-1, lnterruptible
Industrial
5o v,cr/
Customer,
I'linimun
S-1r Seasonal
fndustrlaL
None
* Actual rate ls ,11.5, per therm for all gas delivered per nonth up to
12 tines the tsi11ing Denand and 2.0C per therrn for aL1 addltionalgas. Tlre Billing Denand is the Contract Demand multiplied by the
average nunbe r of thenrrs per MCF delivercd to buyer during the month.
Tl:r- \.30 per therm shovn above wouLd be about the average cost to a
dis tributor in Meridlan.r+* There is also a ninimun bILI under ttris scheduLe (no minimurn bi.].l
under any of the other schedu.Ies). ?he minimun blIL is on an annual
basis, and is applicable for each cal-ender year beglnning with theflrst January 1, following tire inltiation of seruice.
The nininun annual b111 will consist of the folJ.or.ring l(") The total monthly d.enand charges during the year, and(b) An amount conputed by multiplyin g ,,it.75 by the averageof the billing demands during the 12 months of the yearn
The Bllling Denand is the sarne as for DI-L except that prorlsion is
made to decrease lt duri-ng a development period of the first two years
of the contract.
- i l'iir
;i.j
!,
'.;'
'l:
: tr. i 1i r.l
fV - POPIILA1IOI{ Ai$D CITY CROI'ITH
A prinary requirement of a s tudy of thts nature Ls the establishrnent of
present and future population estilnates as a preliminary to de teminlng the
number of potential gas custoners, Liri. ts of serrrice, and esti:nate of growth.
From population reports provlded by the U.S" Bureau of Census for decile per-
iods from 1910 through !95O: e population gro th curve has been preparod and
is shown on page 9. Estlrnates of future growth are based on the assumption
that world conditions rrll1 renaln stable and that no maJor econonic crlses
will occur. It is our oplnlon that the estirnated populatlon Brovrth as deve-
Ioped hereJ.n is conservatlve, which approach appears prudent when considering
the feasibility of a new venture. The following tabulatioh represents es-
tinated population growth as taken from the aforementioned curvea
TABT,E 3
PAST AND PMBABLE FUTI'RE POPUI,T,TION
caLendar Year - 1910 L92O 1930 19b0 t95O t955 t96O tg65 l.9?A Lg?S* J+* ** .)t* Jrx.Populatlon 619 10oo l_ooL 1165 1B1o 1g3O 2OBO 2230 23gO 2530
* Estfunated** Forecast
Using other information published in the U.S. Bureau of Census reportsl
city water meter r€cordsl and results of an actual count, lt has been possible
to estimate the e,dsting and forecast the future number of occupLed residential
dwelling and eonmercLal uni ts in the City of Meridian as follows:
TABIE L
PAST AND PROBABLE FUTUNN RIS]DEN?IAL AI{D
COU}IERCIAL UNITS
calendar year t95S t9S6 t95? L95g L9S9 tg6o :1965 tglo t975
Redidentlel Unlts 610 620 6lo 6Lo 65o 660 710 760 810
Commercial Units 110 1LL 111 112 Lt? LI3 I15 IIg LZo
-8-
I ..-,.1..,J
ii )4 1:-ii-ii'.r:
t
crTY oF MER|D|AN, TDAHO
o;;Zt,ltst_-lScole ' ls Srrown I sxEEr I or I
:t H LJ I ++trft
t-frit.
+
I r
FI,l
1
IfltL -'.ffi
1-l-
- T--iT-r Ll tr I
E
r
t--.1--i-+'1 .T +Fl --t--1 +t
zIF
J
(Lo
TL
. l9 1 - t_t91+S r-+-t ffi ffi +l-t+j-t+H
*
l--
Hi-+
I
+1-
I
-ffi
+
I tI
n
-llFurH-tril-t -1_'r l-
l-
+-.t-,t--.t--+-
t-]-+-+
i'-l#+#l'....+...l-ffi
-l Tf-t
_ffi
+]-L
#
!+-.t
1...l-]..]-.H
-+i- ]+t I
1#i +f
+
-ffi
H++ff
L]-
ffi
t-1H
t++
I -H -i-FT
.t f
E
-l-+
ffi].-l-.H
l-l-l-Lr-L-LL
l*]i#
TlTill]il H--H-+
FE-]rfi
n-|-I-ff-n:l
I +
t+ftfrrrrn
+H..
-+--r
.--]-
rffi+i-+-+
-r-+--l--t--..r
l-
-lt-Ll,l--+
#
H++fr
ffi
ffi
+l
-ffiFu]
IJ
--+ +-+-i-I--.i+i]*t-i
#++r#
coRlrH.l. [0wLttD, lmYrs & tERRyfltUl
CORVALLIS, OREGON fi roor-r
?io1
B:
!
(..1 dZo
;5ln
9:
x5
tAraX
I
POPULATION GROWTH GRAPH
EEI{
,1 rt
ti;l
It should be clarlfled that conmercial units nay include several businesses,
with the unit counted being the prime heat supp1ler. Resldentl,al unlts include
duplex and other murtiple, sepa rately-heated dlrelling units'
V - NUI'jBER OF CUSrcIANS TO BE EXPECTED
General
When any new fuel becones available in a community, lt does not gain !r
nediate unive rsal use" this is true of natural gas in spLte of its economy and
other advantages. Equipment suitable for burning gas nust be purchased, and
people wlth new space heatlng equiprnent aI€ ver.Jr refuctant to make the necessary
lnvestroent to convert to gas until they have seen itg advantages proven by tttetr
neighbors. People with relatively old space heating equlpment may be unrllling
to lnvest the noney for conversion, and may wait to use gas untiL they buy new
equLpment. The sane is t rue of other appl-iances, rnary people are unwllling to
trade electric hot water heaters, stoves, clothesdtyers, etc. at a loss and
buy new gas equlpment, and will wait uniil the appli ance I need rcpl-acing, be-
fore using gas. There are also sone people who wiIL never become gas c ustomers
because, as a matter of personal cboice, they may prefer some other type of
fuel. However, the greatest nunbe r uilI ultimately become customers for space
heating, and space heating rep!€sents the greatest vo}urne of firm gao salesl
As soon as gas becones available, the gas load beglns to grou rapidly.
The gas sys tem obtains practically all the space heating ]oad for new con-
struction and a large proportion of new construction appliance business. Con-
versions increase after the first winter or tlro when heating bil1s have been
conparcd by neighbors, and potential customers become farnil,lar with the ad-
vantages of gas for teating. This rather substantial growth continues for
about five years, when a condition known irr tlte industry as ltsaturationrl is
-r0-
:i t.
.',,]
': .li
I tt,,: . ,-'
leached. DurLng thLs first five-year ped.od practically all of the lrtrediate
potentiaL on space heating and appllcance eonversions wil-1 be achieved. After
saturation, the gas load grcwth will esserrtially follow the general growth rate
of the City.
RESIDENTIAI CUSTOMERS
Durlng the nonth of Decenber a residential and conmertial Load s urvey
was conducted by the Engineers. Caavassers called on l0 per cent of the res-
identlaL dwelling units and /0 per cent of potential comrne rciaL end industrial
unlts. Residents of approximately J1 per cent of the dwelling units were act;
ua1Iy intervieued by the canvasslng personnel. Included in questions asked
by the canvasser were! interest in natural gas; interest j-n conrrergion to
natural gas for heating, cooking, and water heating when gas becomes avail-
able; house size, tJ,.pe and conditi.on; present fuels, and arurual firel costs.
Analysis of ti:e data obtained by field personnel lndicates that a very good
sanrpllng of expected gas custoners has been obtained, and when used with other
established cri-teria, forms an excellent basis for estimatlng the number of
expected gas custoners in the City. The establlshed criteria referred to
above inoLudes growth records for cittes ln the midwest who have initiated
naturaL gas serwice in the past five years and who have populatlon and other
conditions simi-Lar to those of Meridian.
Table 5 shows expected year end rcsidential customers for the first five
years of operation. As indicated in the table, most customers will be heating
customers, rith approxirnately one-ha1f of the heating customers also expected
to use gas for cooking and for hot-water teating. Of the total expected
nurnber of customers, app roxima tely lrl w111 be expected to use gas for r,rater
heating or cookJ-ng onlyr
-11-
, ..1
:'
Year of Sys tem 0neratl,on
Population
0ccupied Besidentlal Units
Heating Conve rsions
New Construction Hdatlng
Iear End Heating Custoners
Hot Water Converslons
New Construction Hot l,Iater
Year End Hot Water Custorners
Cooking Conversions
New Construction Cooklng
Year End Cooking Custone rs
TOTAL YEAE END RIS]DENTIAI
C I.XSTOIiDRS
?ABIJ 5
ESTN,NTM FISCAI, YEAR END MSIDENTIAL CUSTOI'IER.S
FIS CAI YEAR BEGINNINC YIAY 1
l-956
1960
6zo
97
B
to5
L990
6to
<)
B
L65
.)
3
lt
2020
610
u7
B
220
2l
)
20
)
r19
2o5o
65o'
\z
B
270
2080
650
\z
B
)20
20
5rC(
19
3
req7 1958 l-959 1960
5
LL
1,ll196L6
2l)
78
22
5
to5
20
5
130ue
L3
3
110 t7) 231 2B[ ,6
The fiscal year is used because it enconpasses the heating season. It is
used ln charts and table s throughout the balance of thls report.
0f the 660 residentiaL dwelJ.ing units expected to be occupled at the end
of -fiscaL year 1960 (!hy 1, ).96l), ,6 are expected to be gas custonlers. This
resufts in e residentlal narket saturation of 5L% as conpared to 8Ol for the
general- area between the Misslssippl River and Lhe Roclgr l,{ountalns. Iower
coal prices in Southern Idaho places natural gas in a less cornpetitive cost
position than enjoyed by gas in the mi,dr,rest. It is also desirable to be
conservative in arrlving at expeeted revenue.
Year end customers conriot be considered as providing a foad throughout
the fiscaL year considered. Conversions may be nade at any tire during the
year both because of decisions by the property owner and the probable backlog
of conversions or other instalrations faced bx the plunber. For this reason,
-12-
i, i J.l
effective customers have been conside:'ed as SOfi of conversion customers
during the opemting vear plus the previous year-end customers. As an ex-
amp1e, effective space heat customers during fiscal year 1958 wo u1d be 0.5
$5) + L65 or 192 customers effective for the year in computing revenue.
Tabl-e 5 shows expected effectj.ve customers classlfied by type of use.
TABLE 5
ESTIJ'fATD EITECTTVE NESIDENTIAL CISTOMERS
Fiseal Year BegLnnine May I
Year of Syg+,em Operation 1916 1957 L958 L959 1960
Heatlng Custoners 5z t]., l9Z zlJ;S 295
Hot i'Iater Heating Custoners 25 $ 92 117 ll!2
Cooklng Custoners 2) 59 B[ 108 130
Tota} Residential Custoners 55 IL2 2OZ 257 310
Comnercial and Sna1l IndustriaL Customers
The load survey conducted included contact wl t"h most of the downtown com-
mercial and small industrial unitso Deta obtained was sirnl.Iar to that ob-
tained from potentlal residenti.al customers, including lnterest in gas, plans
for conversion, si4e and typ€ of structure, fuel presently used, and present
fuel costs.
The sarne display of lnterest and intent to convert was found ln the con-
merclaf and indwtrial areas, as was found in resi.denti,al areas. Usual1y a
greater interest ls shown ln eonne rcia.L areas because of the many advantages
of natural gas previously discussed, includi.ng cleanfiness, dependability,
space savj-ng, lower maintenance etc. Business proprietors are usually rnore
awarc of the various economica and advantages of gas over other fuels and are
also in the position to deduct conversion cost fron g lDss lnc ome as a legl-
timate business expense. -13_
(.
. .;..1i: t ;
The actual count of business es tablislunents, schools, and publlc bulldings
ln Meridian is 12I, which cornprises a totaL of 111 connercial units. Three of
these comrnerclal units ar€ warehouses or other unheated buildings, and 26 con-
sist of coal yards, filling stations, oiL distributors, or are situated ln
residential dwellings, It is, therefore, anti.cipated that only 82 of the con-
mercial units r^r111 be potential natural gas custonrers.
TabLe ? indicates expected year end conmercial- customers for the first
five years of operation. Iotal year end customers shom represent lO5/" of
the expected heati,ng customers, as it is expected t}eL 5% of comnercial gas
customers w111 be non-heating cus tomers onJ.y. Such establishnents as restaur-
ants, bakeries, dry cleaners, and some others may use gas only for products
or processes.
In Tabl.c B the expected nurnber of effective heatlng and aon-he at ing con-
nerciaL customers is shown. Effective custoners include 50S of new hookups
within the year pLus year end custoners of the previous year,
trie estimate there will be lr7 year-end custorners 1n fiscal year 1!60, which
divided by the 111 total conmercial units, indicates a rnerket sahrration ot l?fr,
This percentage appears low primarily because of the 39 husint:ss units which
are never expected to become gas customers. Customer growth beyond the ftfth
year wlll consist principally of new construetion custoners.
-IL.
Year of Svs tem Operation
Commercial- Units
Heati.ng Conversions
New Constructlon Heating
Year End Hea tlng Cus toners
Non-Heat Conversions
Year-End Non-Heat Cus toners
Total Year End Customers
Year of Svstem 0pera ti on
Heating Customers
Non Heating Custone rs
To ta1 Customers
TABI,E 7
ESTI},{AIED YEAR TND COI{MERCIAL AND SI,,IALL
INDUSTRIAL CUSTOl,lEES
L956 t957 1958 t959
B
1
111
12
0
L2
2
2
l-2
111
9
0
2t
2
L
22
112
3o
l1
112
7
0
37
0
I
39
L960
113
7
1
t$
0
il
L7
L
TABLE 8
ESTI]'{ATED EFT,ECTTVE COM].{ERCIAL AND SI,IALL
INDUSTRIAL CUSTOMERS
t956 L957 1958
51625
r3lt
61625
L959
33
L
33
1960
ll1
I
l-r].
lndustrial Interruptible Customers
An intensive study of the industries in lbridian has been made both as to
potential gas consurnption and fueL comparison using na turaf gas. A manager
or an officer in each of these industries was carefully interviewed concer-
ni.ng industrial appLication, present fuel, operational status as to season,
quantities and cost of present fuel, antlcipated industrial expansion, and
other factors that might influence the use by that establisffient of natural
gas as an industrial fuel. A11 of these industries expressed a keen lnter-
-tr.-
est in the use of natural gas, and alf indicated an interest in convertlng
when gas becornes avaj-lable if fuel savings and conversion costs prored an
economieal advantage in favor of natural gas. The larges t potential indus-
trial customer is presently constder{.rg developnent of a seperate gas supply
direct from the Pacific Northwest Corporationr s Pipeline. The nininum daily
gas consuinption of 5O MCF of natural gas requlred to qualify for this inter-
rup tlble rate is equivalent to usage of about two tons of coal or J30 gallons
of #6 fuel- oll per day.
Industries using interruptible gas rnus t be prepared to use an auxiliary
fuel during certain cold periods of the year when natural gas demands for
space heating require the c urtallment or interruption of this natura]. gas
supply. l,lany years will pass when little or no intcrruption is madei however,
as a conservative approach to potential loads it has been assumed that lnter-
rup tion wo u1d exLst for an equivalent I rnonth period each year. Ictual lnter-
ruption experience in the Ytiddle l,,lest has rarc1y s houn a single interruption
to be of over 72 hours duration, and to taI cumulative lnterruptions for the
season have never exeeeded 30 dgys.
Table 9 shows fuel cost conparisons between natural gas and present
fuels which the existing industrial- interruptible loads might exDect. this
table has been prepared on the assumption that industri.al equip[ent is des-
igned to achieve best efficiency lrith its fuel; therefore, no difference in
efficiency of utilization between the varj.ous fueLs is assumed. Rate Sci,edule C,
developed in Section X of tirls report, ias b':en itsed for computati on of tle
nalural qas cost sir.own in Table 9.
-16-
- ij.,
TABTE 9
SUI,IMARY OF POIENTIAI INDUSTRIAL INTBRRUPTTBI,E LOADS
PIIESENT FI,EL
Heat Value
BTU/ Gals.
Annual
Usage
Annual FueI
Cost
Unit Fuel-
Cos ts
.,i 0.0,
per ga1.
$ 0.09
per gaI.
$ o.o9
per gal.
Unl t FueL
Cos ts
Brock Lunber Co.#6 ost 152rooo
Indu s try
Ada County Dalry-
menl s Association
IG ridian Mouldlng
Corrpany
fndus iry
Ada County Dai ry-
nenl s Assoclatlon
Meridlan l,loulding
Company
#6 oLL tszrooo
li6 ofi, t5zrmo
lrtr6orooo .ijr3lrhoo
GaI.
255r@O $ 22,995
GaI,
108 1000 ,$
GaI.
9,72O
FueI
Used
I'ue1
Used
Heat Value
Brv/q
*
Annual Gas
Requirement
AnnuaL Fuel
Cost
Gas
Gas
11000
1r000
c,35 l-66,000 $1001950
],1CF
o,35 29rooo
MOF
l5rgoo
Brock lurnber Co.Gas l-r000 o.35 L2 r3OO
}1CF
6r735
TOTAI POTII]IIAL INTERRUPTIBIE IOAD 20? t3a) MCI'/year
x Gas quantities in this table represent 9 months operation with natural gas'
** Annual cost under natural gas is cost of 9 months gas operation plus cost
of three months operation using oil.
VI . AMICIPATD LOADS
Residential and Conrnercia1
Many factors enter into the estination of gas foads' The first among
these is the nunber of customers. Thls factor has been covered in the pre-
-r?-
i
NATURAI GAS
'I
vious section of thls report. The weather of the locality is the next most
important factor. This factor is measured for heating purpose by means of a
unit called lrdegree days.rr The number of degree days in any one calendar day
is the nurnber of aegrees (F.) by which tlrc mean temperature falls below 650
(F.). The nurnber of degree days per year i-s the sunmation of the number of
degree days for the 155 aays of the year. the rrdegree dayrt 5.s, therefore,
important in deternining tle heating l-oad to be anticipated in a Eiven focal-
ity. U. S. dlimatological data shows the average nunber of degree days per
year for Merid ian to be very close to 5890. 0ther factors such as heating
habits, type of buildlngl maln te nance, cost df other fuels ln refation to gas,
number and type of appliances, and cost of converting heating equiplent must
be considered.
Taking all these considerations into account, we believe that Tables IO
and J.I give reasonable estimates of the residential and cornnerciaL loads to
be expe cted.
-IC-
t
Tab.l-e I0
Annua-I Re6identia.l- Gas Loads
Fiscal
Year Populatioa
L9r6 Lr96oL957 rt99o
L9SB 2rO2OL959 2,OrOLg6o 2ro8o
Occupied.
D*eJ.ling
Unlt6
620
63o
64o
6jo
56o
5Bo
59o
700
?10
720
730
?l+o
750
76C-
Sp ace
Eeat
Customers
,2L3'
L922\i
29'
")lL332
3l+o
348
356
351+
372
38o
3BB
390
4ol+
412
l+20
428
t$6
Cooking
Custor,rers
1l+3
]'4>
1l+B
151
lrl+
L72
t75
178
181
18l+
Cooking
Load
MCF
,43o
,l+50
,4Eo
r 51O
'5\o
'57o6oo
'72ot710
,780
,B1o
,B\o
Totaf
Effective
Custorers
fotal
Load
MCF
6rz9o
L6,28'
23r2OB
29,5L3
35r583
3g,2r8
l+or19B
l+1, t8E
42,L78
43,r58
U+r1rB
[rr1l+B
l+5r138
\7 rLzB48,uB
[9r]o8
\9,9\B
51roB8
52,C78
,3,O@
Eeating Water Water
Load Heat Eeat
!,!CF Custoners Load. MCF
5r\&
.ll+r I?,
201]-:60
25,72'
30,975
25
t)J
92
117
142
230
,90
840
oBo
300
530@
69o
220
05o
900
7l+o
580
,
l_
1
I
f
I
l"
l_
L
I
1
1
1
L
t
IfI
t
t
,
t
t
t
,
t
,
,
l_
2
3
3
3i'
l+
l+
4
4
4
l+
l+
4
5q
5
5
23
qo
B4
108
130
t57
150
153
t66
].69
6oo
520
208
BoB
l+oB
7@
B8B
008
128
2\B
368
lrSB
508
i28
BlrB
968
OBB
208
328
l+l+B
142
20?
2r7
310
340
3hB
356
361+a10
3Bo
388
395
\oT
l+15
423
\32
440
4l+9
hrB
L96t
a962
!963
t96\
L965
]10
14()
f70
200
230
,260
t29o
t32o
'35o,3Bo
,
t
t
t
2
2
2
2
2
2
2
2
2
2
2
2
670 34ro2o rr7
3r+,860 L623r,?oo L6736,5\a L72
37,380 L77
182
IB7
Lgz
t97
20,2
\zr\2o
t|3,260
44rloo
Ll+,94o
\5,7Bo
207
2L2
2L7
azI
IP\o
I
1966
r.967
t968
L969
]-970
L97t
L972
t973
t97t+
t97'
^OJ(J
39
39
4o
l+1
t
,
770
780
790
Boo
810
l+10
l+l+O
l+?o
,oo
,30
(
(
!
\l
't
(
Table I].
Annua"l Comercia]. and. Sna-L} ItdugtrlaL Gas Loads
-F l,6CAl.
Year
Begllniag
May 1
L956
t9r7
t9r8
1959
L96o
t96Lt*2
L963
L%\
t96,
t*6
t967
r968
L969
t970
L97t
r972
t973
]974
]-975
Conoerciaf
UDits
Heatlug
Custome16
5
J.C,
25
334I
u5
l+6
\7
\7
5o
51
,L
E',
,2
EeatlDg
Load
l,!cF
Noh-Heat
Cugtomers
Non-Eeet
Loaal
vcF
Tota.L
Effective
Customers
6
L6
25
33
4r
\6
l+6
\7
47
l+B
48
\9
\9
,o
To tal-
Load
I{CI'
I
o
I
L22
r22
f23
123
]21+
t2\
L2'
t25
]..26
t26
L27
Lll
]28
]'29
L29
130
r30
f31
]31
t
,
t
t
t
,
t
,
,
t
,
,
t
1
2
l+
,
7
I
B
a
I
B
B
B
B
B
9
9
9
9
o
9
oBo
880
500
940
3Bo
100
2Bo
2BO
16o
t+6o
6l}o
6\o
820
82o
ooo
000
lBO
]Bo
36a
JOU
f
?
l+
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l+
5
5
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6
6
6
6
7
7
7
7
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1
1
1
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2
2
2
10
I0
10
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to
11
}}ItIt
IL
\5
300
900
200
200
200
500
500
500
500
,oo
Boo
Boo
Boo
Boo
Boo
L00
100
r00
100
100
I
3
,
7
8
o
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9
9
9
t
t
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780
700
lLO
5Bo
60o
7Bo
7Bo
960
960
l+40
l+l+o
620
620
Boo
]-oo
2b
280
l+60
450
4,
l+B
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\9
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Indus trlal
Indus try
Ada County Dalrlrmenl s
Associatlon
Meri-dian Moulding Co.
Brock lunber Conpany
Present FueL
011
0r-t
0ir
Present Ioad
(M:ttton BTUI year)
?21rg2o
38r835
1611115 **
Potenti.al Annual
Oas load *
1661000 McF
291000 McF
13,?oo llcF
The potentiaL industria] intenuptlble gas loads are s hown in Tab1e 12.
TABIE 12
POTENTIAI II,IDUSTRIAL INTERBUPTIBI;E GqS IOADS
ToTAL PoTENTTAL GAS rOA0 2091700 McF
* Potential Gas load assuning J month interruption of gas supply..
,P* The present use of fireL by Brock Imber Conpany inplies a potentlal daily
gas load slightly under the rninlnum required for arr fndustrial fntermptiblerate, howeve r, expanslon ln the near future is expected and wl1l provl-de an
adequate gas potential to qualify this industry for an industriel interruf'-tible rate" Loads s nown arc nininrn for an industri"I inLt'rruntibi'' crstoner.
Due to the smal1 nunber of potential interruptlble lndustrial customers and
because the }arger potential customer is presently attempting to obtain gas
directly from the Pipeline Corporation, it ls impossible to accurately forecast
the order of conversion or the time at which ar\y one lndustry nay become a cus-
toner of the proposed gas system. ft 1s our opinion that most of these poten-
tial custoners wLIL convert to natural gas w'ithin the first five years of sys-
ten operation; howener, ln the interest of conservatlsni lt has been assumed
that no conversions wiJ.l have been made at the end of the first fiscat year of
operation. Ttre Brock Lurnber Cornpany has been assuned to convert durlng the
second year wl:Lle Meri.dian Moulding Conpaqy is assuned to convert during the third
year of systen operation. For revenue computation purposes, these industries
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$11L be considered as the only industrial i-nterruptlble loads thercafter.
Table 1l shows these anticipated industrial interrlptlble loads.
TABLE 13
ANTICIPAIED II{D IETRIAI INTERRUP?IBLE
Year of System Operation
ANNUAL GAS IOADS
Fiscal Year Beginning l'!ay 1
t956 L957 1958 L959
o 13,7m \2r?oo lprTOOAnnual Industrial Ioad
MC!'
1960
,[2, zoo
-22-
To tal Load
Surmary Tab1e IL indicates the total annual loads to be expected in the
City of Meridian. Also included 1n Table IL ls to tal arurual gas customers of
all classifLcations.
TABI,E IL
SLI.'IMARY 0f' ANTICIPAIID ToTAI, ANNUAL OAS IOADS
FiscaL Year
Annual- Annual Annual Indus- To tal Total Annual
Reslciential Conrne rcial trial Interr" Effective Gas Load
(MCr)Load (MCT')Load MCF Gas Customers MCFBeqinning Mav I Load
L956
L951
t958
L959
1960
196r
l-962
l-963
1961+
t965
lL966
t967
1958
L969
19?o
t97 r
'I Ca.
L973
),97)t
L975
6 r2go
L6r2B5
23r2O8
2g,6t)
3,,683
)9,zt$
1+0, f9B
l+1,188
lQ,t78
11.168
U,158
[5r r1r8
16,138
)!7,L2B
l+BrtIB
L9,108
L9,9LB
51,oBB
52,O78
53106B
1r380
3r?80
5,7oo
7 r1lr0
B,5Bo
g,600
9,780
9:7 Bo
9,960
9,960
10 r lrlr0
I0rliL0
lo,620
to 1620
10, Eoo
11,100
1r,2Bo
11r 2 B0
It r 1160
Ur1160
o
13 r700
lPrTm
I&rw
lpr'loo
b2 ,7oo
L2 ,7oo
li,7oo
lr2 1700
l!2 t7C[;.
\Q,76
lr2 t7cl,:_
lr2,7@
l!2 tTOo
lr2r?oo
lr2t7u.-
lQ,7oo
lQ,7oo
)!? r7oo
\z,7oo
7,670
8,76t
71r608
79,\5)
86,963
91r 518
92 1678
%1668
9[rB38
95
'828
97
'298
98, 288
99,u58
l00r lrLB
101r618
102 r g0B
t03,g2B
1o5ro6B
1051 238
1O7,228
6r
158
22?
290
35t
385
39ll
loz
Er
119
\28
B6
L\5
\16
\65
\73
Lr83
lrpr
501
510
-)a -
Peak Daily Gas Reoui rements
The peak dal1y gas ]oad requi r€nent for a distributor is the rrcontract
demandrr which the distributor contracts to btry from the Pipeline Corporation
and represents the maximun flrm gas requirements of the distribution systen
under the most severe conditions of tempe rature and weather that may be ex-
pected in the appropriate year. Calculations for thls load are based on ex-
pected customers, mean nininun recorded temperE tures in the area, prevai-Ii-ng
wlnd conditlons and tl€ other factors pr€viously nentioned on appraisal of gas
loads.
As discussed under rrCAS SlrPPLyr, present capabilities of the Pipeline Cor-
porationl s supply line may be limited. Where gas supply is adequate, peak days
are normally calculated from year to year, and an inezease in gas appropriatlons
requested from the pipeli-ne corporation according-Ly. Often such changes in
approp::iatlons can and will- be granted. Wbere the suppty is limited, howevere
and no plans have presently been made public which wouLd indicate othemise, ln-
creased apprcpriations may be dijficuft to obtain. The original contract de-
nand ls a fixed element in a }ong-time gas purchase contract end must not, under
present conditj,ons of supply, be underestiriated. For these reasons, and be-
cause annual gas cus tomers computed in a prevj-ous section are conservatlve to
avoid overostimation of annual revenue, peak daily gas requirements are calcu-
Iated assuning 70S residential and comrnert ia1 space heating narket saturation
in the fifth year of sys tetn operation. ff prornotional activity is suceessfully
carried on in the initial years of operation, the gas load will increase faster
ln the years before saturation, and number of customers could reach or exceed
tt 7O% market saturation referred to above.
Table 15 shows the anticipated peak daily loads through 1975.
-2lr-
IABLE 15
AN1ICIPAIM DAILY PEAK IOADS
Flscal Ygar Beeinarn{ L{aI l
Year of System operation 1956 l?57 l95B 1959
Total Gas Custoners 89 23:. ))2 L23
Peak DaiJ.y Ioads MCF L27 ,O 1fi7 609
VII . GAS IINES AND APPURIENANCES
Transmission Line
!960
513
?\3
1970
627
870
].975
672
927
Distributors purchaslng natural gas from the Paciflc Northuest Ptpeline
Corporation w:iIl be requlred to provlde transnisslon lines frorn the Pipeline
Corporationrs nain Line to the conrmunl,ty being serwed. D rawing nunrber 1001-1
is a rrVicinity Maprr showing the location of the Pacific Northues t PLpeline Cor-
porationls s upply line as it is to be constructed. The proposed two and one-
haLf mile transmissi.on 1lue to feed gas fr"om the Corporationt s Plpeline to the
City of Meridian is also shown on this drawing. I?re transmission line begins
at a point soutfrdest of the City of Meridian, on the intercection of Linder
Road and Pacific Northwestrs Pipeline and follows Llnder Road North to lts inter-
section with Overland Road. From this point the proposed line angles northeast
to the proposed border station loeation near the Southwest limits of the City.
It ls anticipated that the first 61500 feet of line wl1l be on county property
adjacent to Linder Road with the remaining 71500 feet on i:nproved prLvate pro-
perty.
Design conputations show that a l* inch high pressure wrapped and coated
steel pi.pe wiIl be adequate to serve a 90S space heating market saturation in
30 years as well as providing capacity for the present industries plus a lro i
industrial load grorvth. If market saturation exceeds rhe 90f maximun or if
-25_
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CITY OF MERIDIAN, IOAHO
II
VICINITY MAP
Scol.: t"= 2OOO'DATE I 20 DEC 55
coRlrttl. Howr-Al{o, flAYEs & tEnnYRtlD
CORVALLIS, OREGON lo0r-l
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lndus try develops, because of sone unforseeable economic conditions beyond pre-
sent expectations, funds far ln excess of the revenue anticipated in thi-s s tu{y
will be avallable to prorLde addltional transmission Line capacity. One nethod
in common practice to extend capacity of exis tj.ng supply lines is acconplished
by construction of additional transmj.ssion Iines from the corporations plpeline,
built in stages paralfel to the existing fine in conformance with load grotth
r€quirenents. As an example, the supplemental supply line could be laid for a
distance of one mile frorn the Corporationt s pipeLine and tied into the existing
pj.peline until l"oad growth necessitates the further extension of the supplemental
Line. Eventually two separate transmission lines ruould be available for gas
supply. Another comnon method of extending supply line capacities is accomplisle d
by raising the operating pressure in the existing 1ine. Tte l] inch I.D. pipe-
line has been deslgned for an operating pressur€ of 150 pslg to supply ttre es-
timated 3o-year load rcquirenents. Because standard sma1l diameter pipe is not
made with a wide variety of waLl thickness as is &ne with the l-arger dianeter
pipe, thls pipel,i.ne rould have a maximum operating pressure conslderably !,n ex-
cess of 1!0 psig design pressure. Pacific Northruest recently replied to our
inquiries concerning delivery pressure, stating that gas for all- resale cus-
tomers would be delivered at a naxlmum pressure of 1!0 psig and would be pro-
vided at this pressure on the maximun day" It is tlrerefore, apparent ttat
raising operating pressures as a method of inc:.easing pipefine capacity ls not
applicable because design pressure equals tlte maximur delivery pt€ssure.
A cost estimate has been preparcd for the proposed transmission pipeline
that alfows for minor line changes if right-of-way difficulLies so require.
BORDER STATION
A rBorder stationl is required at the terminus of transmission pipell,ne at
which point gas is delLvered into the distribution system. This station con-
sists of a snaI1 building containing equipnent that reduces transmisslon
47_
pr€ssure to distribution ptessur€, restores heat dissipated in the process of
expansion to distribution pressure, meters gas defivered by the transmission
line, and injects an odorant into the gas to aid in leak detection. The de-
si rable location for the border station is at or near the colporate linits,
to utilize higher transrniBslon pressures as long as possible, thus avoidlng
friction losses in the distribution system, and to make use of the two and one-
half niLes of pipeline for trpackingl to provide some Itpeak shavingrr effect ln
the transmission systen. The proposed border station location is s hown on both
the vicinity nap and distribution layout map, Drewing Number 1001-2. Final
l"ocation, of course, depends on property availability and right-of-way require-
ments. A shiftirg of location ldthin reasonable 1lmi+.s will not adversely
effect the over:a1l efficiency of the gas systen.
DISIIiIBLNION SISBM
The prellmlnary design of a gas distributlon system regulres nany consid-
arations, and j-nvolves various methods of layout. A basic requlrement i.s to
establish rreasonable limits of serrrice, yet prcvide adequate line capaclty for
future extensions to rneet new load grol:th. In the distribution system design
shown on Draldng lhrryber 10O1-2, natural gas serrrice has been protrided for all
potential customers within the corporate limits with the exception of approx-
imately eLght residential units, where wide diversity of location make them
highly ercpensive to serve. Line sizes are adequate to servj-ce these areas
when new construction or positive conrlittnents frorn potential customers w."rrant
the capital outlay of providing service.
The ideai- layout of a gas systen is approached eith a complete gri.d systen,
the major portion of l-ines being tied in on both ends. This not only a11ows for
maintenance of nore even pressures throughout the syst€m, but also provides for
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NATURAL GAS FEASIBILITY RE PORT
GAS DISTRIBUTION SYSTEM
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better area shrrt-off control when system repairs or extensions are required.
The main distribution lines witi:in the sys tem shom on Drawing Number 1001-2
do not form a gr"id system at this time, however, with ninor extensions, the more
lnportant lines rnay be connected in a grid. When load growth so waryants, lt
mqy be necessary to tie in sone of these l-ines. The system is designed to
make this an econornical operation.
The l! psi distribution system begins at the border station, southubst
of the City. A 6-1nch feeder maln extends fron the border station, along High-
way l0 tlen north on Meridian to Brcadway Street. From Broadway a lr-inch feeder
system supplies the remaining 2-inch and 1|-lnch distribution maLnsr Whe re pos-
sible, distribution lines have been located in alleys para1le1 to existing utili-
ties to eliminate the necesslty of fo1lor^ring streets and either disrupting Lanns,
shrubs, and trees, or rcquiring expensive renovaL and replacenent of pavement.
In the final design of the systen, minor route changes ar.e anticipated to avold
utilj-ties or other existing obstructions. Tlre actual extent of tle dist.:ibution
sJrsten may be reduced in the event potentiar customers at the extreniities of
the sys tem do not desire servicer the distributlon systern has been designed to
provide year around serrice to industrial interuptibie custoners as well as
residentieL end connercia] customers.
ff a seperate sulpLy system is obtained by the larger lndustry, both the
transmission Line and the 6-inch distribution feeder nain nay be reduced in
size and still be adequate for 30-year senl,cer
Gas Service Connections
Serrrice cornections consist of the service piping, a sewice Itteerr at the
main w'ith curb stop and valve box at the property line. A meter stop, pressur:e
regulator and gas meter ar€ located at tlle terndnation of U1e service. It ls
-30-
rcconnended that meter stop, requl-ator, and meter be installed outslde the
buil-dings to facilitate meter reading, to nininlze danger frorn gas leaks, and
to r€duce distributor iiabiLities. A plastic busi.ing be tween meter and building
is a further safe ty devise which is very inexpensive. fn qeneral, 3/Lrt' wrapped
and coated service pipine is recommended for residentlal cus tomers; with larger
sized customers requiring a volume beyond the capacity of a 3/lttt line, it ls re-
cornnended that approprlate sized wrapped steel pipe be used.
tho nethods of serring cus tome rs are in general use in other gas distr{.-
':ution systems. One type of serviee prcqides for cornplete serrrice fron the
distribution main to the neter at the dlstributorl s expense. The other type
of servi-ce provides tirat the distributor serve the customer at property lines
and furnish the gas meter, with cost of service on cus toners prenises borne
by the customer. Cholce of type of service is generally one of policy; how-
e''rerr in a new gas systen, an incenti,.re nay be provided to obtain more iDokups
lf the distributor offers to bear the cost of piping on customerrs property
prcrided custorner will request serwice by a given date. For cost estinating
puposqs it has been assuned that the distributor wl11 furnlsh the reter and
wilL constzuct the serwice to the property line only.
Peak Shavlne Equj.pnent
It is possible, and often profitable, for a large gas distribution systen
to instaLl peak shauing equipment as a meane of reducing the danand charge which
such a large distributor must otherwise pay. Because the peak daily gas ),oads
anticipated for the City of Meridi an are far below pr0o0 MCF wle re demand charges
become a serious consideration, peak s harring u:i1I not be needed for this putpose.
If, however, the gas supply remains lirni,ted and no additionaL increase in demand is
obtainable, peak s having equlpnent would be needed to aalow for further load
-3I-
$ 23r1oo.oo
1r200.00
200.00
690.oo
31000,00
)r.00O.00
32,150.@
growth beyond the slxth year of systen operation. Because the revenue to be
considered in this study is based on sixth year loads, an al l"owanc e for peak
shaving equipment to provide for growth beyond six years is not justifiable
at this time. Peak shaving, if required, can be accomplished by underground
storage if geological conditions are favorable, or by the use of lirnitpd
I
quantities of liqui.fied petroleurn gas.
I':III . COST OF PHYSICAL EACILIT]ES
f'or purehase of nraterials and equiprent and construction of the systen no
]ater than the sumrner of 1956: we believe the followlng estimates of cost are
realisti.c.
Transmissi.on Line
3|r rD wrapped sreel *rr:**to'":;::.fr"t:.;t*o
Canal Crossings lr ea. @ 3OO.O0
County Road Crossing 2 ea. @ 10O.0O
County Road !7'l,J and Damages 61 5OO tf @ 0.10
Private R7'!'I and Danrages 7,5OO ffi' @ O.lrO
Border Station ( Inc).udilg i,and) $ @bOOO.OO
TotaL Construc tion Cost
Plus 20S legal, Engineering, Bond Issue -
And Contd.ngencies
TOTAL
6,1i30.00
$38,580.00
Distribution Svstem and Services
A cost esttmate follows for initiaf constrtction of the distribution sys-
tem as shown in Drawing Numbe r 1001-2. Also covered ln thls estjJrate ls the
construction of 150 sewices, which i$ is felt can be more economically accom-
plished on a contract basis along wlth other intitial construction.
-32-
. :i l)
DISTRIBUTION SYSlEM COST ESTII'IATE
6tt Pi.pe 31330 L.r.
[tt Pipe gr33o L.F.
2rr Pipe 13r5[O t.r.
tltripe 13,800 L.r.
Trench Exc avation and Backfill lrOrOOO Lf.
6tt Valves & Boxes Z ean
lln \ralves & Boxes 5 ea.
2rr Valves & Boxes 9 ea.
I*" Valves & Boxes 20 ea.
Pavernent Remova.L and Rep),acement 33OO L.F.
Highway Pavement Removing arxl j50 I.f .
RepJ.acenent
G ravel Street fuplacement 131000 L.F.
RR Crossings (2 track) 1 ear
Drip Pots and Misc. Fittings L.S.
Service Connections*150 ea. @ 75.00
I9L57"50
18,193.50
16r2L8.oo
11r0lr0.O0
12 r 000.00
150.00
275.oo
225.oO
5oo.oo
1r 98o.oo
700.00
1r3o0.oo
1r5oo"oo
Ir200.00
12 ,500.00
Total ConstructLon . . $861969..00
@ 2,75
@ L,95
@ 1.2O
@ 0.80
@ 0.30
@ 75.00
@ 55.00
@ 25.00
@ 25,@
@ 0.50
@ 2.@
@ 0.10
@1500.00
@1200.00
PLus 201 Legal, Engineering, Bond Issue
and Contingencies . . . 17.393.80
TOTAI $1oLr362.Bo
*Includes cost of meter and installation of service connection
to customerls property llne onfy.
-33-
Mj-scelleneous Expenses
It ls reconrnended that the distributor nake provlsion for a study of tle
corrosive qualities of the soil and apply appropriate sathodic protection to the
entire gas system as needed. The cost of the corrosidn study is estimated to
be +i500.00 with subsequent cathodic protection costing approximately $21000.00.
The corrpsion study should be acconplished prior to initial construction. A
suwey of the sys tern is made and cathodi c protection devices are installed as
required after construction is cornpleted and after pipelines have become polo-
rized.
Other inltlal expenses over and abo rre construction costg are incurred in
placlng the gas systen into operation. Anong these expenses arc tools and
suppltes, and mobile equlpnentl It ls anticlpated that rneter testi,ng and lab
equipment wil-L be obtalned sonetime after a surplus of capital has been built
up. Meanwhife laboratory wo!'k and neter testing can be done by an adiacent
larger gas dis tributor.
The above costs ar€ estinated as follows:
MiscelIan eous ExDenses
Corrosion Study + 5oo.oo
Cathodic Protection . . . . . . . . . . .. $erOOo.oO
Tools and Supplies $1,2oo.oo
Moblle Equipnent .......S2 r 3oo!oo
ToTAL.... $6,000.00
^t
To tal- Phtysical Costs
The separate cost estimates qiven above are summarized below!
Transmlssion line and Bor;lcr Station. .,i 3Br5BO.O0
Distribution sys,,r-,m arxl Services 10,[1360.00
]4i.s cell-aneous 5TOOO.OO
TOTAI. CGT OF PIffSTCiTL FACILIIIES . . $1L8,9[O.OO
Note :This estjmate of to taL physicg[ costs is not the amount for which
financing arrangements will have to be nade. Additional money must
be prrcvi.ded to insure that adequate operating funds are avaifable
during the first two or three years. See dlscussi.on on size of
bond issue required i,n fater section.
U - OPERATI},E EXPENSES
Purchase of Gas
Rates used for purchase of natural gas are those proposed by Pacific
Northwest Pipeline Corporationrs, FPC Gas Tariff, Original Volune No. I.
These rates have been applied to the approprj.ate customers for each operating
year and a toial aru:tual gas cost obtalned. Recent staternents by the presi-
dent of the Pipeline Corporation indicate that construction costs are wel] within
the estimated Limits and that flnal. rates would in all probabirity remain as
proposed.
Superintendence and Iaboa
For the deteminatlon of operating costs lt has been assumed that the gas
system would be operated and naintalned as a separate utility having an inde-
pendent superintendent and labor force. Superlntendence and fabor under tlde
heading incluCes that necessary for general supe!.vising, neter reading, ser-
vl-ce calls, repairs and maintenance. Labor for new construction is not pnoperLy
considercd an operating expense itern and is included under resenes for capital
lnprovements, discussed later in this report.
-35-
- i:fli .i.
rilt :lr:
'i",,r'j,i:;
'; 'i
".., :.:i .i :.'::r:.
:: ._' l; ::i'at.I.lj r '"' 'r'l ''
.ril11 ._: ::
) 1,,"'):l i
Rents, Supplies and Equipnrent
Offlce, warehouse and shop facilities must be prol:ided for conducting busL-
ness, storage of tnateri.als and repair of equipment. The non-profit corporation
gas utility would have to build, purchase or rent these faci.Lities. It l,as been
assumed that this phase of the operating expenses should be tncluded on a rent,al
basis.
SuppJ-ie s and equipment for the operatlon of the shop facifities have al,so
been covered under this heading as well as replacement of tools etc., used in
the operation andnaintenance of the qas sys temL
Transportation Equipnent
operation and repair of the truck and other vehlcLes used in the operation
and maintenance of the gas sys tem is a necessary part of the operating expense.
Sufficient excess s hould retnain to buiLd up a fund for ultirnate zreplacenent of
obsolete or worn out vehicles. This all-owance does not inciude portj.ons of
transportation expense invol-ved in new construction, which portion is properly
charged to capital improvements.
0ffice and General Expense s
The billing and collection of gas accounts requires an office staff va!y-
ing in size as the gas systen grows.
MiscelLeneous office supplies, equipnent r:epaiJ and rcplacement, fuel supply
and electric seruice are needed for operating t"he office.
Insurance
An adequate insurance policy must be naintained to prctect the gas distri-
buLor from liabilities that could be lncurred by acci dents to gas systen per-
sonnel and any unforeseen accidents to gas eustonersl person or property for
which the distri.butor could be trefd llable. The proper coverage to be provided
- Jo-
a
..;,
'..|.,.,:-
by such a pollcy ie outside tire scope of tl.ris rcport, and is a natter to be
diecussed u:ith a rEputable insurance broker; however, funds estLnated for in-
surance in thj-s report should provide adequate coverage. By obtaining an ln-
surance po1iry oovering the overall City tiabilities of which the gas sys tem
woul-d be a part, a municipality can realize a naterial saving in the preimuns
attributabLe to the gas system. The non-profit corporation cannot realize these
savings and rust insure the gas systen indiuidualty.
Iglef Opq ratiqs lzcpense s
Table 16 shows the estimated ye arly operating expenses lncurred by the pro-
posed natural gas system.
X - RAIIS I'OR RESAI;E, OPERAIII{C BEVill{UE, 0PERATII,E PEOIIT
General Considerations
The first consideration in rate ma-king in any utility operation is the
sinple necessity to charge rates which cover the cost.s. Tlese costs consLst
of the following i terns which are discussed below:
1. Operating Expenses.
2. Debt service, amortization and/o r deprsciati.on
l. Funds for making routine expansions and extensions.
L. Taxes.
5. Return on investuent.
Operating expenses have been prerriously di,scussed and are l-isted in Table 15.
Debt serrice and anortization must be paid by utllities when deficit finan-
cing isused. Financing by tile non-profit corpomtion rrill be through the sale
of bonds, hence deficit fi-nancing. An al.tr'ownace for depreciateion in addltion
to debt sewice and anortization when deficit financing is used is equivalent
to forcing the rate payers to retire the property twice in one amortization per-
iod. This approach does not appear iustified.
-i]-
,,r l .,:
t.,::,
I
Table ]6
OPEAI$INIG D(PINSES
Warehouse,
Supplies
antl
Equipltrent Traaspt.
Office aDd General
(
Fisca.l
Year
BegiDning
May I
L956
\911
L958
L919
L960
Cost of
Gas
Billing &
Co]-].ecti.oa
2r9c,o
3rooo
3rl-oo
3r 2oo
31 300
Tota]'
operatlng
Expenee
12r 30O
2l,O4o
33,280
37,2rO
l+o,97o
b3,39o\\,23'
45rooo
\5,7\5
\6,1+zo
,orBB0
,1r41,
,2rooo
52160,
53ro?o
In6ur.Supt. Labor
t95t
t962
L963
L96t+
\965
J_9bO
]767
1968
1969
t97c
L97L
L972
t973
t97\
L975
1" 100
L2,o50
23,Loo
26rl4BO
29\ILO
3]-1670
32r1?o
32'59o
33rO90
33r)20
3\r]-ro
34, r80
35ro&
3r,5to
35,04o
36,560
37,OOO
37,l+9o
3Br00o
38rl+20
L, ooo
LrO2'
l-roro
lto75
l_,l_oo
Lr].2,
1r15o
L'L75
lr 2OO
L1225
lr2ro
1r275
Lr3oo
t'325
1r350
t
t
,
2
2
2
2
t
,
t
3
J
3
3
3
Boo
8l+o
BBO
920
960
000*
]oo
200
300
lroo
,0o
5oo
700
Boo
900
11 5oO
1r 550
116@
L'610
lr7OO
Lr72O
1,740
t1760
1,78o
IrBOO
!oo
500
5oo
700
Boo
3l+,
970
65,
2go
OI'
ooo
200
Loo
600
700
l+oo
,0o
50o
700
Boo
Bro
900
950
o.lo
000
t
,
t
,
,
,
t
t
,
t
t
t
II
1I
1
I]
2
Z
2
2
2
2
2
2
2
?
2
t+7
l+?
!8
l+9
50
300
l+oo
500
6oo
700
Boo
900
000
000
ooo
ooo
000
ooo
ooo
ooo
too
IOO
100
100
100
I
abI 3r
3t
aJ')
3t
Boo
Boo
Boo
8oo
Boo
900
900
900
900
900
ooo
000
ooo
000
000
t
t
t
,
t
3
l+
l+
4
l+
l+I
h
l+
l+
950
000
oro
roo
1 0,
200
200
200
200
200
(
t
,
t
,
t
t
3
3
3
3
3
J
3
3
4
l+
t
,
t
,
,
1
].
I
1
l_
t
t
t
,
t
t
1
1]
L
1
1I
I
I
2
82o
Bl+O
B60
8Bo
900
orat
9l+o
960
98o
o00
See discuBslon on Superiltenalence and LaborIt
I
Funds for naking rou tine expansions and extensions nust be tr"i1"bl". Wh"-
ther these funds corne frctn operat:ng profits or from additionaf financing, the
properby built or pwchased thereby should be added to the capital structure of
the utili ty.
Under direct municipal ounershlp, the gas sys tem would pay no taxes. It
is assuned that the sane condition wouLd apply to the non-profit cotporation.
Many nurdcipaLities have in recent years, adopted tle policy of paying rrin lieu
taxesrr to lessen criticism by proponents of private ownership. ft should be
reafized that any It i-n lieu taxesrr I or francl,ise taxes charged on the non-pro-
fit corporation wl11 reduce tlrc cumulatLve net snrplus profi t and lengthen the
tjre at which this surplus could be used to pay off remaining bonds.
PublicJ.y owned utlLities may provide for a re turn on invested capital as
a matter of poJicy of the governing body. Sucir fund s may be used for tax re-
duction or for such otLer rurposes as the governing body may direct. Probably
a better long-run public policy, however, is to use such fund s for purchase of
outstanding bonds, rate reductions, or for system extensions to save further fln-
ancing cosLs. Funds used for system extensions then add to the capital- structure
of the utility.
After determination of the total anount of revenue which must be received,
the second consideration in rate making is to estabLish a sctpdufe of rates which
distributes the total aE equitably as possible arong the rate payers. For instance,
consj,deration nust be given to the fact that it costs more per unit of gas sold in
investment, meter r€ading, biIling, collecting, and maintenance to sene the snal1
l:ousehold user than it does to serve the large connercial user. on the other hand,
the cormercial custcner is using the selvice in the conduct of a business operated
intheexpectationofmakingaprofit,andhecanrleductthecostfromhlstaxab]e
i,ncomeasapartoftheexpenseofdoingbusiness;buttothehouseholder'theser-
-39-
il
') i! :'
vlce becomes a necessity of }Ife, and he has no tax shelter on its cosL
Operating Profit, as used he rei-n, is the difference between total Operatlng
Revenue and Operatlng Dt?ense. To the publicly owued utiLiw, it ls the amount
of money aval,Iable for debt service and anortizationl routine extensions, rate
reductions, and such other purposes as the governing body nay di.rect.
RaLes fo r Resale
Idaho Nahral Gas Company and Itennountain Gas Conpany have filed before
the Idaho Pub-Lic Utifitles Commission schedule s of retail sal"es rates under
which the conpanies propose to dlstdbut€ na tural gas to oonmunit ie s and indus-
try in Southern Idaho. These oroposed rates are for the area as a whole and
are based on the assumption that onJ-y one gas company will be glven certlficates
in ldaho. Rates proposed bv Intennountaln Gas Company assune a linited supply
of natur6l gas, wherreas the rates of fdaho NaturaL Gas Cornparqr assume a larger
supply.
The possiblllty exists that natural ggs could be sold directly ftom
Paciflc Northwest Pipeline Corporation to the lnterruptlble industries rather
than being sold to distributing companies who in turn seII the eas to these
industries. This si.tuation has been in''restieated by our firm. It was detcr-
mined that direct gas sales to interruptible irdustries by Pacific North{est
was a natter of legal interpretation of ldatp 1ar as to whether or not the Idaho
Public Utilities Conmission has jurisdiction in thls type of sa1e. This inter-
pretation has not yet been requested or made; howeve r, it is anticlpated that
such a r€quest for inter?retation of Idaho Law rrill be rnade b'r one or more of
the distribution cornpani.e s in rdab. It is believed that if such industrial
gas sales are nade directly by the Rlpeline Cdmpany, PaClfic No rttwest would
chargehigherratesfordl.rectsalegasllranforgassoldtodistributorsfor
resale'
-Lo-
:1.
Because of the possibility of industriaL interrupLible loads in Meridian
being supplied directly by Pacific North^rest, three resale rate schedules have
been developed. In arriuing at Rate Schedule A, it was assumed that Pacific
Northwest would seLl direct to-.alI interruptlble industries. the burdcn od
debt service and anortizaLion of the Meridian gas distribution systern wou-Ld then
have to be borne dbtnpfeteLy by residenti.al, conmereial and slraf.I industries.
F.Ate Schedule B was developed assuning that Pacific Northwest would sel-I directly
to the creanery while the other two potential industrial interruptible loads
would become customers of the lleridian gas distribution system. Rate Schedule
C assures that, all potentia] indus trial interruptible custotne rs would be ser-
ved by the Merj-dian distribution systen. Eac h of Ure above described rate
schedules provide revenue capable of meetirg anortization and debt service
requirements of the facilities necessary to provide gas to the customers con-
sidered.
Rate Schedule A
Residential-, Commercial end Smal!, Inriustria -
@
@
@
@
o-Looo cu. fti (ufnimum suf)
Next tr00o cu. ft.
Next I!r000 cu. ft.
Next 2!r0CO cu. ft.
AII over !0r00O cu. ft"
$ 2.oo
I.20
1.10
1.00
0.70
per MCF
per MCF
per I"lcF
per MCF
per MCF
a
INDUS TRIA], ]N IERRUP TTBIE
Supplied by Pacific Northiwes t
INDUSTRIAI, SEASONAL
Supplied by PacifS-c Northwest
-lr1-
".::',,1r:.lil,
, i:' I
,t
NAIE SCHEDUIE B
Residential. Comrnerciaf and Sna11 Industrial
O-1r0OO cu. ft. (Minlnun BiU) @ $ 1.?5
Next [1000 cu. ft. @ 1.10
Next 201000 cu. ft. @ 1.00
Next 2!1000 cu. ft. @ 0.90
A11 over !Or0O0 eu. ftl @ 0.70
INDUS TRIAL INTERNUPT]B IE
* O.lr0 per aay
]IIDUSTR]AL SEASONAL
'$ 0.117 per MCF
RATE SCHEDUM C
per MCtr'
per MCtr'
per MCF
per MCF
per MCE
ResidentiaL. Conmerc iaL and Sma11 fnduEtrlal
0-1rOO0 cu. f t. ( yitntrnun nilr ) @ ,$ I.5O per MCtr'
Next LroOO cu. ft. @ O.9O per MCF
Next 201000 cu. ft. @ 0.70 per MCF
Next 2!1000 cu. ft. @ O.5O per MCF
Al-1 over !01000 cu. ft. @ 0.50 per l{CF
I}IDUSTRIAI INTERRI'Pfi BI,E
+ 0.35 per McF
INDUSTRIAL SEASONA],
$ 0. lr0 Per I'ICF
A comparison of the foregoi.ng tentative resale rate scheduLes shows the
gas cost advantage obtained by both lndustry and the o ther consumers i-n Meri-
dian with a cotnmon dis tributing sys ten serving a1t the potential gae cus tomers
in the City. the resale rates of natural gas under S chedule C are as Iofi or
lower than rates so far proposed by distributing conpanies for any other city
in fdaho. Although industry provides approximately !0 per cent of annual po-
tentialgassalesritsunitcostofgasisnucirlowerthanthatforresidential
and commerciaL sales. This is true because the cost of serving all of the in-
),2-
': ,_- '1
dustrial interruptible custorners is much lower: than serrrice cost for the re-
maj-nder of the community. The margin between cost of gas to the distributor
and resale cost to industrial interruptible customers i.s !iO.10 per MC$ whl-le
tire average margin for residentLal and comrnercial sales is dO.lrl per MC!' using
Fate Schedu-l-e C. This margin provides the revenue for eperating expenses and
debt service for the required facilities. Rate Schedule C was used to develop
?able 9 which shows annual fuel cost savings to be reall,zed by interruptlble
industries using naturaf gas in Meridj-an.
For purposes of computing revenue and profit in the reaainder of thls re-
port, Rate Schedule B has been assumed as providing a conservative approaclr
and has consequently been used.
A graphical comparison of residential and eonmerc ia1 rates proposed for
the l-ocal utility in Rate Sciredul-e B and statewide rates proposed by Idaho
Natural and fntemohntain Gas Compani.e s is sfrol,n on pages lrL aad L5.
Operating Revenue and Prof i t
Taktng into account tle characteristics of the various loads and using
tentative Rate Schedule B, we find that the average returns from the safe of
gas for tlrc various cLasses of use wi-Ll be as follows l
Residential- -
Commercial
Industrial
Seasonal
per MCF
pcr lIcF
per MCI'
$ r.rz
1.05
0.[0
0-17
These average returtrs multiplied by the gas requirements from Table 1.1r.
give the Operating fuvenue to be expected. Operatlng Revenue less Ope rating
Expense yields Operating Profit or trcash flowrr to be expected. Ihe results
of these computations are shown in Table 17.
J:,
t.,: ",1 ., i
I .,.
),. ,:
i=ii.; '.i ! .,.i
:,1, j,, .:
|,,'.,1
,-i
..t , .. ll
CITY OF MERIDIAN IDAHO
RATE
o ooo c.F.
COMPARISON
Scole: As Shown sxEEt I oF 2t955oec. 22
lt0tl,All0, HIYES & f,tRnYflttD
CORVALLIS OREGOI{
c0RxttL
-l,_L+\/+ -:
Ef#
o
o
oo
c
dI
l
L
L
T
!-
co
=rl
a I TAIN RESIOE NAL
tNTERt{oullTAlir
l
NATUBAL
c0 CIAL
RES IAL A
MERIDIAN GAS SYST (RATE' SCH to*.lr
I
IJJ
i
2 a 1 $
Consumplion I,OOO Cubic Feet
-]--l
-r-l--l-l++lI
tir
ffi
: r,l
f-
t;
+
t
d!
B:
Iu.;zi
7:a
x3
4r
'l ,l' :
. tJ- t_,l
I
I
l-ri-+l
I
1
I
-t.t
+- IDAHO
Aroor-t€Ell
+-+'I
l
+.t
,l
_ffi
+ii
f-r-ff-rT-t
I i_l -i i-l f
Ir--IJ--]-LLl--r--!natEs
8)
I
i l .l.t!
I
I I
I
I
I
I
r-+-1
1o I t
a!5-
CITY OF MERIDIAN IDAHO
r955 2 2Scole: As Shown Dcc. 22
o ooo -80 ooo c. F.
RATE COMPARISON
rL
r---l-LL H+
ll ffir j_#
o
o
oo
c
E]
c
co
=NTERM ESDE
INTERMOU COMMERCIAL
RESI T ,1
GAS SYSTEM (EATE S ULE BI
'l
I
60
L
20 3D 4b sb 70 .{
Consumption l,OO0 Cubic Feet
l-.t-.]-i- l-l-l
-t+++-+
;-+ttlr
l r-l i
-+
t-]-
ff-r - 1-----.1---.1
+r
+
i1J+t
-t-+-]--l-i'l_
l
ff-i--r-i
Itt-L-LtE|_H
8IED
i ttLL+ttjj#
coniltu. H0wtAtro, lilyts & iltRnyfltto
CORVALLIS. OREGON { roorr
li) j
cirlo:o:
zo
FT
P:
x5
U.IJ+
i-1-i
-t+
+1,
I
'f-t-t-t-l
I
ECH
r|r',_,1
!- rr !+'r
l_
lI-t
IDAHO NATIIFIIL
MERIDIAN
f-:I
I
. - -!L.-
I
I
,
TABIE 17
ANTICIPA@ OPEBA TIIG HEVEi'li,E, ffiPENSE AND PDFIT
Fiscal Year
Beginning
May 1
L956
L957
t958
t959
L960
196L
t962
L963
1961
l-965
]-966
l-967
1968
t969
L97o
t97t
197 2
l-973
L97l4
L975
Ope ra ting
Revenue
710
Operating
kpense
12r300
2l-t6l!O
33,2BO
37 t25O
ItO rg7O
LJ;9o
[L,a3o
lr5rom
\5
'7Lto)$,uzo
Lt7 t3bo
1J7,97o
LB r 660
)J9,29O
Sororo
50, BBo
513ItIo
52rO@
52,6N
53ro70
0perating
Profit
- 3r81o
6
'o5o15, ?80
20,)r9O
2r|OBO
27 ,690
2B rIir0
28, LBO
29r1l$
29 r\7O
3or160
30r6ir0
,2\O
:720
r 30O
,B5o
'\5o,llo
,Blro
, LBo
8
27
lr9
57
'\go,69o
060
t
t)
7lt,(
tt
7B
79
B1
82
Bj
66
7t
72
,o5o
,oBo
t37O
r lr8o
,7Bo
,890
'5oo,610
,9@
,010
r3I0
t?30
, Bio
,1110
,lilo
'55o
31
31
32
a)
33
llr
3L
35
Bli
B6
B7
BB
XI . RECOM{ENDM SOND ISSIIE, DEBT SERVICE, AND AI.IORrTZAION
In additlon to the basic cost of the physical faci,lities as estl-mated in
Section VfII, the publicly owned utility wiII require additional money for
initial serrice extensions and for contingencies. These r€qui t€nents are
estimated as follows:
1. Since natural gas is a ner,r and unf ani't iar fuel to the residents of
Southern Idaho, it may rlel1 be desirable to do some promotional- ad-
vertising to secure quicker acceptance of its use. Such quicker ac-
ceptancewillputt}reuti}ityi.naseff-sustainingpositionthatnuch
sooner.
If ltem I immediately above is successfully handled' nore serrices w111
-[6-
Size of Bond Issue Iicouired
')-ll,
l
,,1
.l', i
')
have to be provided for, and rnoney must be avaiLable to build them.
Such funda should be prorlded in the bond lssue.
3. It w111 be necessary from the standpoint of any potential bond buyer
to provide money in the bond issue to cover the interest for the first
fuo and one-half years.
The to tal" bond issue required, then, Ls sunmarized as folfows:
fnitial Constructlon :$ lLB r 9l+0
Advertlsing and Pronotion 2r9{O
Additional Senrices and Meters 3r75O
(50 @ $75.00)
Capitalized Interest 2br75}
Totar $179r9Lo
For afl practJ.cal purposes, say, .'U80r000
Debt Service and Atnortization
ft is our opinlon that the amount of the bond lssue developed above is
conservatively adequate. It is expected that the operatlon wiLl render sone
of this noney unnecessary within a very few years. Therefore, the managenent
of the utility should j.nsist on an adequate nrmber of bonds being optional
at an early date, or on a sinking fund type of bond, sone of which may be
calLed before naturity at a noninal- cost, in order to save interest b)' the
use of surplus as the business growso
Table 18 shows a tentative anortization schedute for a '$1801000 bond issue.
?his schedule is based on the assunption that gas supply wil"l be adequate only
through *he sixth year operation, that interest wilf be 5t4 "d that a 2.OO
coverage of each yearrs principal and interest requirements wil] be provided
by the yearts operating profit. ft is further assuned tlat tentatlve Rate
schedule B is a1plicah1e. rtle believe the bond issue can be sold under these
conditions. No bonds will be issued until most of the costs are more or le ss
7
'.i
definitelll established. Rlght-of-way costs, cons truction proposals, interest
rate, arrd the number of lnltial services w1Ll be avalLable. The final anorti--
zation schedu.Le adopted should be arrivod at wlth the advice of the bond
buyer.
Tire tentative bond amortlzation schedule indicates that bonds can be
comfortabty retired ln a thirty year amortization period, at the end of r,rliich
time a total of $113r0O0 would have been avail"abl-e for capltal irnprovements
and $2891350 would remaln in curnuLatlve net surplus. Note thAt in the slx-
teenth year, sufficient cumuhtlve net surplus is available to retura the
bond issue if no najor system expansions are requj-red.
+B-
c
I t t)
TASLE ].8
TBTTATNTE BOND AMORTIZAT ION SCHEEULE
IntereBt BonAs llterest & GrossFiBca.I
Year
L956
L957
1918
L959
L9@
1961
L962
L963
f?6J+
1965
]966
L967
]-95E
i t969Y 19?o
1971
L972
1973
19?\
L97'
L/76
t9Tl
t97B
]-979
19Bo
r-981
I9B2
1983
1984
L9Bl-
Operatiag
Proflt
$-3,810
6'oro
!5,78O
20 tl+9o25,60
27,59O
27,690
27,690
27,690
27,690
4,690
27,690
27,69c
27,5gO
27,690
27,690
4,6W
27,690
27 '6N27,690
27,690
27,690
27,690
27,690
27,59o
z1 ,690
z1 ,690
27,690
27,69C.
27,690
?r5,8l}o
Sonds
Outstandlng
$ I8o,ooo
000
ooo
ooo
ooo
o00
ooo
ooo
ooo
ooo
ooo
153rOOO
th8rooo
r\3rooo
r3?ro00
]3]-,00o
125, OOO
11Br0OO
l_LLr0oo
Lol+,000
ooo
ooo
ooo
ooo
000
ooo
000
000
ooo
ooo
@5#
$ 9r9oot'
90or
9oo*
900
900
790
,70
350
I30
910
59o
41,
l-lrO
865
535
205
87,
49o
105
720
280
B\O
3l+5
B50
300
750
145
540
8Bo
220
9 'goox9t9aox
9,90c,,t
91900
L]-rgoo
L3'79o
L3,r70
f3r 350
13r13o
12,gto
f3,690
13r41,
13r140
13r86,
L3,)35
13,205
13,875
13,490
13r rO5
L3r?20
13r2BO
13rB\o
t3r 3l+5
13rBro
r3r 3oo
13r?50
13r1\5
f3r 54O
LzrBBo
2r2\O
lorB3O
LOrrgo
r3rlBO
13r900
, ].20
]l+, 3l+o
1l+r 160
14,780
1\r0oo
l.l+r"7,
L4,550
L3rB25
14r115
14,1+85
13r81,
1l+, 2oo
1l+,585
13:9?o
1\r lrl9
]3, Bro
14,31+5
13rBllO
14r39o
13r940
1l+r rl+5
llrrLSo
1l+r 8ro
23,tqo
Capita.I
Inlrvmt.
ooo
ooo
ooo
000
ooo
000
000
000
000
ooo
000
ooo
ooo
ooo
ooo
000
ooo
ooo
ooo
ooo
ooo
000
ooo
ooo
ooo
000
ooo
000
Net
Surplus
24o
B30
2rrgo
,, ]8o
9r9OO
10, ]20
10, 3l+O
LC1160
Lor7Bo
].or 0OO
lo1275
Lor r5o
91825
lOrLr5
Cr:muletive
Surp]-us
240
lro7o
3,660
B,Bl+o
]Br7l+o
2Br860
39,200
l+9,760
50,540
?o,51+o
8or81i
9L 36'
].0].r190
Itl,3l+5
123,030
133, Bl+5
]l+rrO)}5
L56,53o
t67,600
1?9r0]0
1B9,860
2Olr2O'
2I2rOl+,
223,\35
23\,37,
2\5,92O
2r7,O7o
?6E,ffio
Dre Principal Surplus
$$$$(
2
4
4
4
l+
4
5
q
,
6
6
6
I
7
7o
B
o
o
Lo
10ItIt
12
t2
180
180
18O
l_Bo
17B
1?4
170
L6
L52
158
96
88
79
7o
60
50
39
28
L6
l+
t
,
,
t
t
t
,
t
t
t
t
t
t
t
t
9
9
o
o
9
9
9o
a
t
A
I
7
7
7
6
6
6
It
l+
J
3
2
]
t
t
t
,
t
t
$
ooo
000
000
ooo
000
ooo
000
ooo
000
000
000
000
000
000
ooo
ooo
ooo
ooo
oo0
ooo
000
000
000
ooo
ooo
t
t
t
t
t
t
,
,
t
,
,
t
,
t
t
ur685
10r815lt r 20o
tt1585
lOrg?0
lfr 41O
LorBSo
11r 31+5
].Or 8,l+O
11r390
1Org4O
l-Lrr\5
LLrl-50
11rB1O
20rvlo
$-
2,
10,
B,
B,
l+,
4,
l+,
\,
t,
l+,
l+,
l+,
4,
Irr
3t
3r
3r
2
3r
J'
3r
3,
3t
3r
?
a
l+, ooo l+,22o 3,9o0
,(
- l98rli4o** ISOTOOO 3?Br4l}Ox* lro2rlro It3rOOO
Pay 2| years i.nterest from proceeda of bond. sale.
Ioto.16 incfude intere6t pald froE proceed.s of bond Bale.
Unredeened. bonda oay be retlred. from cuBmLattve net Bur?1u6.
.lt*
*JF*
289 350
I I
(
3
i
XII . I,IERCHANDIS]TiG APPI,IANCES
The merchandlsing of gas appliances is a profitable business for either
a publicly or prlvafely owned utility, and whether or not the utility should
engaee in this aspect of the business is a matler of policy to be determined
by the utili.ty managenent. It is our feeli,ng that a public body properly en-
gages ln lhe utility busi.ness for only two rea6ons3
I. Iouer rates to its customers,2. The maintenance of loca1 control of utility
management.
i' The utility deaLs in products and serrices the sale of which are nonoplies;
there is no economic feasibllity for having conpeting utiJ-ities ln the same ser.-
vice area. A public body may regard it reasonable and desirable to engage in
business in ihe various utilities to prctect its citizens from a monopoly not
under its control. 0n the other hand, the sal-e of appliances has never been
mooopollstlci plentiful competition exists to protect the pubi-ic. Accordingly,
it 1s our opinion that a publj.cly-owned utility has no justification for entez-
ing into the business of nerchandising applicances.
However, it is considered by some that if the utility does not engage in
the nerctrandising of apph-a ces, lh6 sale of appliances, and iherefore load
growth of the utility, will 1ag because the dealers wllI not vigorously push
appliance sales. Thi s objection, vre bel'ieve, can be overcome by cooperation
of the utility with the dealers. The appfiance deafels nomally are not in a
position .f,o furnish the Services of plumbers and electricians for installation
of major appliances. These services can, however, be furni-shed by the utifit/
in cooperation with the appliance deaier. The utility can also offer display
space in. its offices to the various appliance dealers in rotation. we believe,
in this way, the publ-icly olrned utility serves both its own function and tlEt of
its citizens better tlian if it engaged in thie sal-e of appliances.
'5o-
-:
XIII CONCLUSIONS AI{D RECO}tr'{ENDATfONS
Several conclusions can be drawn from the foregoing discussions and tabu-
lations.
The unit cost of natu ral- gas shown in Rate Schedul-e A necessary to meet
debt service for a distribution system serving only residential, commercial
and smalI industrial customers is greater tlnn unit costs proposed by Inter-
mountain and fdalro Natural Gas Companies. Rate ScheduLe A provides an average
residential unit gas cost epproxi.m aLely 26 per cent greater than the unlt cost
proposed by fntermountain. The benefits of ultimate nunicipal otmershlp of the
sys tem and the si zabl-e surplus funds buiLt up because of the 2.0 eoverage re-
quired for debt service nay be considered by the City agalnst t}te inmediate
and considerable advantage of l-ower rates as offered by the pri?ate distributcrs,
In the event that the two smalle r potential- industrial interruptible loads
become natural gas customers of the proposed distribution system, Rate Schedule B
would apply. This Schedule provi de s revenue capable of meeting debt serrlce and
operation costs for the appropriate system at unit gas cosLs cornpetitS.ve wlth
these proposed by the aforenentioned private gas companles. A system that couLd
depend on these industrial loads would be cfearly feaolble.
As previously mentiored, Rate Schedul-e C provides gas to industrial and
all- other potentiar users at unit costs as low or lower than offered anynte re
else in the state of rdaho. Both industry and the corununity would benefit greatly
wi.th such an arrangement. A gas distribution sys ten wlth all three potentiar ln-
dustr{a1 l-oads as customers woul_d be highly feasible.
Bauing unforseen cons truc tlon difficulties, natural gas wiJ.r apparently be
avail-ab1e from Pacj-fic Northwest pipeline Corp orati.on in July, lpS. pi.pe de_
livery in this area will probably be delayed because of the large constructlon
:
-ri -
:tl
progran anticipated throughout the Country and in ldaho in L956 " At the present
timel pipe deliveries range between 8 and 12 weeks, depending upon
and size of pipe' Considering this factor, and allouing adequate
talled swveys, design, and construction cf the gas sys tem, i-t is tha t
at least 10 months tjme should be allowed after begirurlng of de ng
,
before gas can be delLvered to the utilityt s customers. The aL.rove
is provided to aid the City in its disposj.tion of the na turaL gas
tion
-52-
I
-t
T
j,.
I
I+
IO
ORDINANCE NO. 77
AMENDTNG TITLE V1,-, CHAPTER V 0F THE REVTSED oRDINANCES or'VtE
CfTY 0F MERIDfAN BY CI{ANGING THE CIIRI'8W HoURS lto IIrO0 OTCLOCK
P.M. T0 5:00 OrCI,OCK A.M. I'OR PERSONS UNDB 16 YEARS 0.0 AGEI'TXING CIIREEW UoIIRS. I'RoM 12 oiCIoCK MTDNIGHT T0 5:00 O,CLOCK A.M.
FOR PERSONS BEIITEEIf 16 AND }8 YEARS OF AGE; RAISING TTIE AGE OF
JWENILE DELINqUENCY FOR VToLATIoN T0 18 YEARS, AND DECLARTNG AN
EMERGENCY.
BE IT ORDAINED BY ITIE MAYOR AI{D CTTY COUNCIL OI' THE C]TY OI'tmRrDlAN, ADA COUMY, rDAHO:-
I
Section I. That Tltle VIII ,nences of the C1t,y of Merltllan, bto read as l'ollows:
Chapt ere a nai the
V of the Revlsed ordi-
same ls hereby amend eal
. 8-101 ! ESTABLISHfNG AGE FoR TLlm LIMIT: It shal1 be unlawfulfor any pelson unalor the age of slxteen (16) years to be or to rB-maln, antl it shall be unlawful for any parent, guardl
person having the care anal custody of any person unaleslxteen (15) years, to allow or pLrmit such peraons t
remaln, in or upon any street, alley, or publlc groun
corporate limlts of the Clty of Merliilan, Ad. a County,
between Lhe hourg of Il:0O orclock P.M. a ncl ,:00 o'cI
Ian, or otharr the age ofoboo!to
d. withln thefdaho, *+*
ock A.M. +**
ft shall be unlawful for a-ny perso-4.between the agq1qf' 16
and I ,fygqlg J!_b-e 0E to reqq-n, !nQ_!-t sFaII Se un-IEwful qool 3!I
pglent L guqrdia! af @er l dy br
any Det s on-5atwa on ttte ages o-16 andlS yeais_ t6 EIIow oa
anY ttriteil-qlleY or
u Fetween tlie Fours oc fouwn
oc ctn
8-502, EXCSPTToNS: The
shal,I not apply to any person
parents, guard18n, or other I
costoaly of hln or her, nor toof En errsnd or duty dlrected
other adult pelson having theto any person who ls actually
employment for prof i.t.
roviEions of 8-501 of thls Chapter
ho Is accompanlea by hls or her
It person having the care snal
ny person who ls ln the performance
y hls or her Parents, guartllan, ot
are anal custoaly of hln ol h6r, nor
t the tirne engEgeat in legitimate
oc
dlanIo
p
du
b
c
a
8-,O)I UNDER AGE VIOLATOR DEEMED JWENILE DELINQUEM:. ANY
perscn irnder the age of * 9lg!!g * (I8) years-violatlng the pro--vision" of thls Chipter shETIIEE-tleeoed a juvenile dellnquent
under the laws of the gtato of Ialaho.
8-rO4: PENALTY FOR ?.AR[NT OR GUARDIAN: Any parent, g,uartiian,
or other adult person havlng the care End custocy. o{ any person
"naer iie Jei oi +eiShteen*Tl8J years-who shal} vlolate the pro-
,i"ion"-or if,ts Cla5tffipon convlction 'uhereor-, - shal I , be^Punishable
by a r'lne ln any sui, not exceedlng one hundred d6l}srs ($I0o'oo)
WI{EREAS, There 1s an bmergency therefo!-'-which elglq:o9I fg
hereby OeclaieO to exist, thls-Oldinance shall take el'f ect and be
io-r:oi."" and effect from'and after i-ts passage, approval snal pub-
llcation as requlretl bY I8w-
C ity
t956.
Passed by tbe City Councll and approved'-by the-Mayor-of t
ol Merloiun, Ada County, Id'aho, thls )rd day of Januaryt
he --I
OVEB:
o
tan
Ir
ATTEST: ... -
Llxt oFFtcEs ol
GRAN'T L. AMBROSE
lilERtDtAt{, IDAHO
f,/'
AGiiE!iENT
THIS AGREEIiENT, entered into this 28 day of December,between HENttY NOr-LBOOM and NELLIE NOTEBoSTr hirsband and wifeof Ada County, Idaho, herein called Grantois, and the City oIvleridian, Ada County, Idaho, a nunicipal corporation, hereincalled Grantee, WITNESSETH:
1955
,f
VIHERIIAS, the parties heretofore entered into an option agrement under the terms of which grantee hras given the option topurchase certain land of grantors upon whlch to construct a sew-
age treatment plant, and grantee has exerci.sed said option, and-
WHllrtEAS, the parties desire by this agreement to incopora-te herein all their 1egal reJ-ations relative to said opti.on;
NOW THEREI'0R, in consideration of the covenants herein con-tained the parties hereto agree as follows:
1. Grantors hereby sel1 to grantee the following describedproperty for the purpose of grantee constructing a se!{age treat-
ment plant thereon:
The E* of the NEf of the NE+ of the SltI+, Section 1,T. 3 N., ]1. IW, Boise, Ivleridian, in Ada County, Idaho,subject to United States Bureau of Reclamation
drainage right-of-way.
vcnt
by
00,
and
da
ing
the
the
man
gra
1at
2. Grantee a;rees Lo pa
manner: S1 ,1q6.00 cash oreceipt for w:rich is herereof or the sum of g3 ,1'2[.d by grantors at any tiure'ntors, provj:cli however uher than -7 years from the
rantors therefor in the foIIow-
he executi.on of this agreement,
acknowledged; and the balanceinterest iree, payable on de-j-n such amounts as demanded byfinal payment shafl be made notte of this agreement.
). Grantors will forthwith execute and deliver their warr-
anty deed to grantee covering said property, and will afso forthwith furnlsh grantee a tltle insurance policy showing good and
marketable titl-e in grantors free and cl-ear of all encumbrances.
4. As part of the consideration for this agreenent grantor
wlll promptly execute and deliver to grantee a right of way
easement for road purposes to and from sai-d sewage treatmentplant across the following described property:
A strip of land lO feet wide, being the East lO feet
of the SWi of Section 1, T.3N., R 1W, Boise Meridian,in Ada County, State of ldaho.
5. As part of the consideration for this agreement it. is
agreed that ihe grantee w-il1 , at its own expense,. connect the
r6sidence of grantors, situated to the west of said roadway,
with the sewei line running north and south along said roadway.
6. As part of the consideration for this agreenent it is
agreed that lhe city will 1ay the connecting line to grantorsr
resi-dence free of charge, and that grantee will not charge grant
ors the customary hook-up charge, but that the plumbing work
shall be at tire expense of grantors.
--1.
l^w orFlcES 0F
GRANT L. AMBROSE
MERIDIAN. IDATIO
7. As further consideration for this agree!0ent j-t is agreedthat grantee will , at its own expense, construct an access road-
way from the roadvry easement described in paragraph ! above in
a westerly direction to a point near grantorsr residence on the
south side thereof. The location of said roadway shalI be desig-
nated by grantors to be on their own ]and, and after constructionthereof grantee shall have no interest therein.
This agreement shal1 be binding on the heirs, assigns and
1ega1 representatives of the partj.es hereto.
' IN WITNESS WHEREOF, the parties hereto have hereunto set
t*re1r hands and seals the day- and year first above lritten.
THE
BY
OF I,ERIDIA
v er
//*.9/^4/*"-Vev nrv Not eboom
Ne ote oom
STATE O}' ]DAHO
!-O
County of Ada
0n this 29 day of December, L955, before me, a Notary Pub-1ic for ldaho, personally appeared Henfy Noteboom, Ne1lie Bote-
boom, Donald M. Storey and Herald J. Cox, known to ne to be the
persons who executed the foregoing agreement, and acknowledgedto me that they executed the same.
IN VJITNESS WHERIoF, I have hereunlo set my hand and seal the
day and year in this certificate ij-rst above written.
Nofary Public. for Idaho
Residence: Meridian, Idaho
ft
\ /""'
MTY
,-\ MAYOR'\
)
)
BURCHAM BLAIR
ArroRNEys AND C6uNaELoRs
SHEiWOOD BUILDINO
SPOKANE I, WASHINGTON
MUNICIPAL AND COFPORATE BOND PFOCEEDINOS
PFIPARED AND EXAMINED
I, 0rrl 0cbarne tlrr na.lcrll5rlld, b.l66 Treasurer of
th. Clty ct llraULn, lih 0olni;1 Idahe -
*eertify that I have on this 13th day of January
Elohsr{t; I.rlttl & Pltcrron, Ina., ml Arroclatr
a of Spokar , State of lYcrhlngi@ the sum of $ 262 ,)Ol.',36 being the
purchase price of 2?, tatat\i5c1t-6! E1lYarBC Bcarb of l?5!
rfGlc ct tha e$t of l,lrt'ldlrtr, lda Ctdlllb, , State of ldeio
of the par value of $ ?7rr0CO.0O
bearing interest at the rate of sea balfi
firab s$d Dtmbra tlrtt of rech yerr,
nurnbered and payable as followc:
do hereby
lgrb , nceived from
dated Mrr lr19r,
Per ceitum per annum, payable a@l-aanEa llt m Jlnt
, being in denominations,
tsoad No!.(rmr.)I;-56-r0u-16
L7-2223-29,0-36n-ubr-1213-6t
10eo.0c
toQorQ
1000.00
looo.m
.1000.00
Daa61o. ttar lhtulltt
Uooo,oo Drorab., lrlgt71000.00 Dc*S.' !19t81000.00 Drombrr 111959l00O.C0 D*mber !lg60
Eerd. Hor, 62 to errrUetb
Iaclur:,.v.rt! snt of th;,rta rubrco{ to rudenptlop ,
On arv LnlGlcrt p*yncnt \-
dsta ol! .d oft6r orc. 1,
I965raad 3Bd. Ho., 435to t?r, both furclurlvo, or.a, of ib.lrtra rubJact .:
bo &fu&ptl.o& on stv tat$.ati psra.ni drtc oa ad
lDt.l
s ,moi00
,&or00
6000.o0
6000.o0
Iatorut
flr t6
DsEb.r lrt?6t 70m.00 1.2J7
Droraber 111962 ?00.00
Droorber LrI96l 000.00
Drorabcr 111964 tmo.COMrrl"f?fi =J0@-0S-,000.S - rftrr Drc. Ir 19581 ulll
7l - 80 IO0,C0 Dccccrbrr 11195? l@00.0O ttdepttolr to b. la th.
8l - 90 lo()o,m Dcoanhcr 111968 t#100.0O larcrar or{G of tho
9l - I01 !O0O.CO Drc.llbGr 11196? t :1tr0.00 nubortag of th. boo&,
l(E - U2 1@.00 lloor$cr l1I7?0 l'l{IF.m h&ho.t aubcrl flrtt,l
lU - Ul4 tm0'00 Drrnlba l1l9?l lr00of00 .t pForldrd b c*ld bodrl
U5 - U6 100.00 Drocrbcr I1I972 U06r00
r3? - r49 t0&.6 Droraro litg?! lromroo 3,5fi
lro - 162 lQ00r00 ltccr,:btr lllgzr tjimo.0o
f6, - 1?6 l0mr& Drorrorr l1lg7l U.m0.0C
l?? - r90 lofi).oo Dmb.l !19?6 l&omroo
l9f - 20, lmf00 Drorruhr 111777 U00.@
26 - 22O 1000.6 Doorohu lr19?E 15G00r00
2* - 215 10firr00 Drcabor lllfl? lr@'00
't"i 331r",. o.i.. lffi 'Pa7trd$"htn r' r98o n"lffiJ3P,ai.t bontrs, s,?l:90*;;ffi;;;;T-big ltL accrucd interest rrom D'c'Eb'r l' '195'
, i.
--- Ji""i"y314.- t9l6 the date of delivery of said bonds to tbe purchaser'
assreeatins tt. *t, fi..t heteinabove stated, which sum I have received'" Loop'o* maturing JCtc lt6tr 1956 , 19 , and all subsequcnt coupotrs were at'
tached toiaid bonds at the time of delivery, and all coupons of earliet maturity were detached.
I hereby certify that the officers who signed the bonds, viz':
.. ^ Oorl.d U. Stotc, Xcyor t*f, fqf'df.tl ltkry- .---. 9-rrt Colsm lt'.'lurtr af,-l'EtdlrEr^ li'h'
a:,' .itiiuld ,. cc' Ct.n* .l l*lldlra, Idthc
6 ,241/,are sti[[ in office.
Treasurer of lioddlrn, Adr eountyr td.he
lrweiyt.
g
t
BURCHAM & BLAIR,
AT.rORNEYS AND COUNSELORS
TELEPH ON E: ,$O$DGO{]O
SPOKANE 1, WAgHINGTON
Madiaon 4216
0rccder 2q 1955
I! Ft *t.ri-srr61 Ecrcnr Ecnd frsoc of the Clt; of Ittl' l.!,I of 1lt
Y
Oran t 1,. Ar,brora, Erq.,
h t.Lornoy aL Lar
929 Erst Plrst
lferldlan, Idaho
Dear !rr. Arbroac:
trr brc b.G qdrlrd that thc lore6olag bd. -, b6 !..dt fol crcolltc ih. Ltts
Flt of thlr t * ad Lh€r6forc aoclo.. 3tg{.iIr. ccrtlflcala rad Trucurftr Broelptfc rapktloa .d sricrt 16 by thc praper cfflciak rfi.! Lb bond. ht brco rtead.
rftc tla bdr bvc b.a at€n d .d a..ld .ad thl ?tu.uret ord Ct st hrrl aeartc{
U,ha 0.ttltlo.tr rgpcar{a8 oo Uh boct of roh bsd, bh. bmdt shedd b. Gh.aH to b.aril t,h.t' el.l hrrc bcco a lgard aod sorlcd.
ff,tlE, tb. badr lrr bca @cut.d the oclcced Eltmt qro Certl.ftortr b to b. oeLt a
aad sooatld brz Ubs tssyor' Tr.esuror and Clly Olrrt.
' Tb. blaok ta th. thl.rd llao rlLI b6 fl ll.d h $lth bhc dato thc boodr .rr tl6trd.
lln blral la thc f:rst llac belrr bhG b{d arhodulo and iho blanh traltrtc It fbfi
tbo pkor lcr tbo slgmtqr.. of thr clty .ffbfuL rlll bc fill€d b xtth the ig
dat c.
Yfe hcr. Left th blar* fcrr Lha place of dcllvery h blsnh-flt.t llac of Lh lrrt p.ilG.rh
hclorr thr rlturtue oa r€ arc.rot ogrLs la *rcre iha bonds arc to ba fiGor.ted, ]tt ra
to Ierldlro,
?hc !b7ar, el.tl rad trsasurer rlll rro tlte rr forn ol al3naburc te rlgntag th. sl6[r-
tura CcrtlfloaL. ss th€, uecd Ln slanlrq tln boadc. lleoa LhG qscut,loo of ,lI th!.€
Certlf!.ectcrl n! oll8lna ls, th€lr s 1gnat66 llII then bc ocrttltad aa }rra ard tadarby thc Cerhlrr, o! aoD ot hcr ef?lcl8l, of r Lrca 1 bank, ;ho rill clro clgn. sll Lhrec
CertlflceLcs.
oaa executed certitioaLe xiII bc r etai.acd by the City lsr bhslr rscG*.tfr, or rlll trc
dell'.'sred Lo tlp pqls[65€! xiLh thc boad., urd tbc other *111 bc rchti tc ur.
Lh. Tre.tar.rtr Bccelpt: Opoa r€ocl-pt of parroat of thc faII purohrlc prlce of tln
bhc City trcre urcr rill e orpleLc rad Gr*utc rl1 bh!6a Scociptr i. 61rlaab.
?hc blrat j.rt thr thtrd lln *tII bc flllad ln rith thc datc p.Fcrrt lr r.coclrd.
Ths bhn& la th€ 5th Llae ntll bc fillsd ln nith thc toial pureherc prlec o? lhe bosj6,
vlr, i?f5, ffiO.oor prr EIae, plllr .erftLd Lataroat froD D.e.nbct 1, I9r5 be dtbc ol
bc
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tho dallrcry of thc bcnda !o the pnrcheael, plor iha i15.90 prciEr. (ttr chcot nocltort
at bhls thc rlll be bha boLal of Lbe forogolag lesa lhe aeouat of Lhc sood frlth chcot
of $I3'?53,OO, of ec,uree. )
lh. bbql ln th. .GGod llac bclc Lbs Sch.&rL riII be fltld tr rlth th trtrl
rnooat ol acctnGi i.ol."e.rt frc D6€!!bs L, L95, to t-hc dst. of dcLlrcry of tb
bedr.
Tho Trcasurzr xill argn hor nar sL Lh€ eld of Lhe ..eceipt, qsia* Lhc s.Ero foro of
rlgmture sr sppears on t,hs coupas and e6 us€d on l,he bondG ond Si4aaL,:re Ccrt lfj,ca tc.
oao c opy of the F-eceipt aill be reba j-ned by thc Treasurer, oae givaE Lo Lhe purcherer
atrd th6 other rcturned Lo us.
In signlag bhe bonds :.e sui6csL ali use Lhe saoe color ink, black or hiue-blacl- ln
order Lo nt& e a aeetcr-appoerirrg bond.
Upoa rccelpt by us of ceeuted tsonds litu. lp 62 and z)6 tx oa eratrlns ttm, r[acnted
SlgnaL,,re Certiflcabe and Treasui.errs ir6s61ptr and an exgJ-co Lion ol all boada ac tothir nunber.lng, naturities, nmber of couponr, xe rri-l.L be 1n a poalLlon lo glvc mr
a.oprov t ag oplalorr-Lf the "oregolng are in ordor.
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