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Show Board hears legal opinion Nothing stopping municipal move for 30 years in Cedar City. The lawyer's report said the three ways Cedar City can set up a system of it's own are: to set a competitive system, to purchase Cal-Pac's physical system outright, and to purchase (compensate) the property using the powers of eminent domain or condemnation. con-demnation. Braithwaite emphasized he researched only the legal application of the ordinance, not the economic feasibility of any of the options. No formulas exist A legal counsel told the Cedar City Electric Utility Board Wednesday there is nothing barring the city from competing directly with existing utilities or from purchasing or condemning con-demning present distribution systems. The board, established to research options available for electric service, had Robert Braithwaite, attorney, research the question: "If Cedar City decides to provide municipal power, what legal stumbling blocks would the franchise ordinance pose?" Ansering the question, Braithwaite said, "In a word, none." Rare Thing Braithwaite said if condemnation proceeding were undertaken to assess the real value of California-Pacific property, expert testimony would have to be had on the value of the utility as no such "formulas" exist. No lost profits, per se, are figured into the condemned selling price, he said, so the city wouldn't be buying the presumed profits for years into the future. In other action at the board meeting, present vice-chairman LaRue Gardner said she would decline the chairmanship chair-manship of the group, made vacant by the resignation of Kent Myers, if she were offered that role. She said the city council should appoint ap-point a new board chairman, although she would remain on the board as a member. Rates compared Board member Louie Tong presented a rate comparison analysis of charges made by Cal-Pac and Utah Power and Light at various killowatt levels. In all instances (different rate scales and wattagesi. I P&L's rates were slightly lower than California Pacific's. Tong said. The board also emphasized it wants the city to act on some of its proposals, namely the recommendation to join the I ntermountain Consumers Power Assocation. The board also said they w ill request the city to determine a means of gauging the resident's feelings on municipal power by September 15. Braithwaite said it is a rare thing for a community to condemn and then purchase a tuility, but that state statutes do allow for it. The stipulation that compensation has to be paid the utility, as exists in all eminent domain cases, is still present, he said. "I don't know how the franchise agreement has been represented, but it does allow for municipal power. It allows for competition," Braithwaite said. "There would not have to be compensation paid if under a competitive com-petitive set-up, however." Braithwaite also noted that the franchise agreement and franchise ordinance between California-Pacific and Cedar City does not require the power company to maintain distribution. Either party could make changes, that is, the power company could actually leave under the wording of the ordinance and the city could set up a competitive system. "The franchise ordinance does not require them to be here, it gives them the privilege to operate." Braithwaite said. "But obviously they want to be here." "It is wrong to think you are totally committed to Cal Pac. Hut without condemning the property, you can't stop them from operating " Signed in 1973 Braithwaite's five page report to the board studied the ordinance signed by Mayor Ixren Whetten in July of 1973. granting Cal Pac the right to operate |