Show Vernal City Negotiating To Buy Local Gas Utility For some two and one one half half years Vernal Vernal Ver Ver- nal City has been negotiating with Utah Gas Service Company for the purchase purchase pur pur- chase of the Vernal Unit from that util util- ity The Vernal City Council has carefully carefully care care- fully studied the pros and cons and have reached the unanimous decision that It would be to to the best Interest of Vernal City its citizens and the Vernal area for Vernal City to purchase the local gas service and operate as a municipal gas utility stated Mayor Kay THE PRICE of has been arrived at with the seller Loran Laughlin Laugh Laugh- hn lin lin Including accepting Vernal bonds at cent Interest with Vernal's per option option op op- tion to place the bonds on the market at the end of one year for a more favorable favorable Interest rate if available The life of the bonds bond's will be 30 years Mayor Kay states that based on the present revenue from the sale of gas and converted to municipal operation Boettcher Company of Denver Investment In In- vestment Bankers projects the earned surplus over the 30 year life of the bonds to be or an average annual surplus of with the first full year 1971 at This is equal to 17 17 mills In Vernal City UTAH GAS Service Company hired Duff Phelps to make a feasibility study They reported that that- Vernal City could pay for the gas utility with Interest at six per percent per cent and they would be willing to finance the purchase on a revenue bond with results about the same as using 1 and interest interest inter inter- est of 6 per cent ent Mayor Kay stated that Utah Gas GasSer Ser Service vice Company has haa had It tt t t r tp D 4 tl ROBERT 1 t. UFFORD Vietnam Vietnam Viet Viet- nam victim R. R L. L Ufford Killed in Action Word was received Friday of the death of Robert L L. Ufford 21 son son of Mr and Mrs Richard Ufford Ufford who was killed in action in Vietnam Viet nam Wednesday of last week was at ata a night defensive position when American American Amer Amer- ican supporting mortar fire directed at ata a hostile force fell short and landed in his immediate vicinity UFFORD had been in Vietnam since October He Ile enlisted in the Army November 12 1968 Following his hU basic training at Fort Ord California he was sent to s sergeants sergeant's school at Fort Denning Benning Georgia From there he was sent to Fort Lewis Washington where he was assigned to train a patrol After receiving a two two- week overseas furlough he was assigned assigned as as- signed to Vietnam UFFORD was a 1967 graduate gradual of Uintah High School While In high school he was a member of the wrestling wrestling wrest wrest- ling team for three years For two years he placed in state championship wrestling wrest wrest- ling In 1968 he placed first in his weight in AAU wrestling competition He Ile was selected to attend Boys' Boys State and was an officer in FoA He lie was awarded a wrestling scholarship to Utah State University where he attended college college col col- lege for a year He lie was an active member member mem memo ber of the Church HE IS IS survived by his parents Vernal Vernal Ver Ver- nal brothers and slitters sisters Arnold Ft Stockton Texas Ronald serving in the Army at Fort Sill Oklahoma Donald Ellen Janet and Linna Rae Ufford Vernal Vernal Ver Ver- nal grandfather John C. C Ufford Vernal He lie is also survived by his fiancee Pat Bowles Dowles Vernal Funeral services will be held Thursday Thursday Thurs Thurs- day today at 12 noon at the Uintah Stake Center I tion on the main transmission lines for fora a number of years but during 1969 had hada a complete survey and additional anode beds placed on the distribution system This protection was installed by Harco Corporation as a result of Its findIngs findings find find- Ings In a system wide system wide study They reported reported re reo ported that a life expectancy of at least 30 years can be depended on which will be longer longcr than the life on the bonds VERNAL CITY hired C C. C H II Hoper and Associates of Denver to make an en en- gin cring study and report to determine the the value of the Vernal Gas System They arrived at a value of Replacement Replace ment Cost New of This is very close to the selling price of especially where consideration consider consider- atlon Is given to the fact that Utah Gas Service Company Is a going concern con conn cern corn and not In the experimental stage stated the Mayor Mayor Kay said that some question may be raised as to why Vernal City should get In the gas business The answer according to the mayor is Vernal Vernal Ver Ver- nal City like most cities is faced with Inflationary costs but no Inflated revenues re re- venues New services higher wages increased increased in in- creased cost of equipment and supplies all place a drain on current revenues reven reven- ues Capital improvements ments are not Inthe In Inthe inthe the planning because mill levy is the only source of revenue This would bevery be bevery bevery very objectionable because one mill produces produces pro pro- duces only and would put the entire cost on the already over taxed over taxed property owner With Wills the purchase of the gas utility and after reserves were built built up up Vernal Vernal Ver Ver- nal City could either cither reduce the cost of gas or reduce the present mill levy ANOTHER SOUND reason for municipal municipal muni muni- cipal ownership reported Mayor Kay Is all revenue above the purchase of gas and servicing of bonds would remain remain re reo main In Vernal Under the present ownership ownership own own- wages of employees and local expenses remain In Vernal with all profits and reserves leaving the area Utility operation is nor foreign to municipalities municipalities mu mu- Vernal o operates crates the water Continued on page 8 Gas Gas Utility Continued from page 1 system many cities In Arizona Colorado Colorado Colorado Colo Colo- rado New Mexico and other states operate operate operate op op- erate the gas utilities The Rangely Times of January 15 1970 quoting the Mayor of that city states the gas fund balance to be for the year 1969 and that tw two rate reductions had been made in the past two years without any increase in mill levy Another point to consider Is that Vernal Vcr Ver- nal would acquire the tho gas service without without without with with- out one ona dollar dolIar exchanged and will rec rec re re- re- re c lye cc-lye ive lve the customer deposit fund plus Vernal bonds will be what is known as Revenue Bonds Donds whereby only the revenue revenue re re- for venue from the from the system is pledged repayment and interest Under no circumstances circumstances cir cir- will mill levy or other monies mon mono les ies be required to service those bonds explained Mayor KayUTAH Kay UTAH GAS Service Company Is presently presently presently pre pre- serving Vernal City parts of Naples Naples Nap Nap- les Ics Maeser Glines and Stauffer Chemical Chemical Che CheN mical Company Company- It is only reasonable that Vernal would extend the system in many areas which are arc presently not served Vernal City City has retained the services of Edward W W. Clyde of Salt Lake City as legal adviser It will be remembered remember remember- ed that he represented Vernal in the development of the Ashley Valley Water System and that his predictions are well within the actual operations of the water system reported the Mayor Slayer Mayor Kay said that Vernal would plan piau on retaining the present employees of the company as far as possible He III also stated that there should be some economies in operating the gas system by Vernal such as joint billing common common common com com- mon yards and joint use of some machinery ma maN chinery Mountain Fuel Supply has attempted attempted at at- tempted to purchase Utah Gas Service Company but the parties could not get together This was probably because private utilities are controlled by the Public Service Commission which would limit the amount that they could offer Utah Gas Service Company stated Mayor May May- or Kay Mayor Kay stated th that t among Vernal Ver Ver- nal nals s future needs is Is' a new new fire station and city h hall hll u relocation of shops and yards continued improvements to parks improved land fill replacement of old and worn machinery and many other worthy projects lIe He stated that it is impossible to curtail any of the present services because of public demand New revenues must be raised to continue on the present level leyel Mayor Kay stated he firmly believes es that the acquisition of the gas service service ser ser- vice is the answer to Vernal's Vernal s financial needs |