The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1932-07-14

ing values of $50 B. T. Us.
Monthly Service Charge ------$ rs
Plus meter reading as follows:
FIRST l,oG0 Gu. #. used per month
S1.75.
Next 1000 Gu. #. used per month,
S1.5O.
Next 1000 Gu. fit. used per month,
SIPS.
Over 5000 Gu. fit. used per month,
S1.O0 per NJ C. F.
Investigation shows that the pro-
posed rate schedule is lower in most
instances than in great many cities
much larger than Redwood Falls.
If franchise is granted, the city,
under the law, would have the right
at five year intervals to purchase the
gas system if they so desired and
wished to control and own the system.
They could purchase it by condemna-
ton proceedings, and pay for it on
a basis of its fair values as deter
mined by board Of appraisers.
The second proposition is: Shall the
city establish and construct NUM-
cipally owned gas system?
The high points of the proposition
that the Liquifed Natural Gas COR
poration has made to the city for
municipality owned plant are as fol-
lows:
1t is estimated that the costs of
the completed system including free
service connections to all those who
desire gas service and including the
furnishing of free ranges to the GUS
toners for their use is Forty Thous-
and Dollars O,OO0.O0). This figure
is based on 255 customers, and it in
cludes service connections and the
cost of 255 ranges installed complete
in the customers premises. The city
would receive the entire revenue of
the gas plant, which, based on the
average statistics from the Detroit
Lakes gas company and the known
contractual costs Of Propane gas and
255 customers, would produce net
operating revenue of $6,392 from
which the city would have to pay five
per cent interest on $4,000 invest
ment and create a sinking fund to re-
tire the $4,000 investment at the
rate of $4,000 year over twenty
year period.
The city council informed Mr.. Bark
er that if it was determined to build
a municipal plant, it would like to
have the company make arrange
ments whereby it would operate the
system for a time, to be determined
by the city council, so that the city
might have the advantage of their ex-
perience in building up the loads and
putting the business on a profitable
basis. For this reason, the company
has offered to lease the city's gas
system when completed for 20 years
at an annual rental Of four thousand
($4,OOOy payable semi-annually in ;ad-
vance, However, subject to cancel
lation upon notice by the city council
at any time when and if the city
council should determine it desired to
take over the operation. The offer of
lease also provides that the $4,000 an
! ual rental is based on the estimated
S11,444 gross income and should the
gross income from gas sales in Red
wood Falls exceed S11,444 during
the period of the lease, the company
would pay to the city an additional
rental of 20 per cent of such addl-
tional gross income.
Under the municipal plant, whether
the city would operate the plant it.
! self from the beginning or lease 1t
! to the company, the intent is that the
system should be put on a profitable
j income basis Immediately upon its
/ completion, and to accomplish this
! modern four top burner proclaim en-
ameled range with oven and brollel
will be furnished each customer who
| orders gas service while the construc-
/ ton crew is on the ground building
. the plant, and that no one in Redwood
Falls may be deprived of modern gas
| service with the free use of new
high grade range unless they woulo
be unable to pay monthly gas Dill
according to the amount of gas that
! they consumed.
1t is thought that under this plan
most everyone in Redwood Falls who
is able to pay a monthly gas bill vii
! Immediately use gas, and that after
having used this modern service
there will be market created for the
local merchants who desire to sell
water heaters, gas refrigerators
laundry plates, space heaters, coffee
i urn burners and many other standard
gas appliances.
| Summing up the two propositions
in either event, whether it is deter
mined that the city grant franchise
or build a municipality owned gas
! plant, if the deal is made with Mr.
! Bankers company it will mean that
Redwood Falls will receive lot OF
advertising in the adjacent trade
territory as the company's trucks
carrying the name Of Redwood Falls
Gas Company will be in each Of the
/ surrounding towns once a month. AL
bills for gas service in the adjacent
territory will be payable in Redwood
Falls at the company's office. The
! fact that the company will be send.