Boston gas company d/b/a V. The board of assessors

Mr. Sansoucy next addressed functional obsolescence, a loss in value attributable to a deficiency or superadequacy

associated with property.¹⁸ Having considered various aspects of the appellant’s gas distribution system in Boston, Mr. Sansoucy concluded that the system exhibited functional obsolescence from two sources: excess construction, a superadequacy resulting from cast iron or steel pipe in the system valued at cost new, but which would be replaced by plastic pipe in a new system at a reduced cost; and excess operation and maintenance expenses associated with cast iron and steel pipe in the system.

To measure functional obsolescence resulting from excess construction, Mr. Sansoucy estimated the size, type, and footage of pipe in Boston that would likely be replaced with plastic. Mr. Sansoucy then estimated the cost differential among cast iron, steel, and plastic pipe using the RS Means Heavy Construction Cost manual, and applied the result to the pipe to be replaced, resulting in an allowance for excess construction of $28,026,368, which he rounded to $28,000,000. The substance of this analysis is reflected in the following table.

					Per Foot		Cost New		Cost New	Cost New Plastic			Total
					Prices (n/a		Iron to		Iron to	Price Difference			Difference
Row	Size/Type	Footage			= not		Steel		Plastic	Per Foot			(C x G)
					available)					(E-F)
					($)		($)		($)	($)			($)
1	1 inch - cast iron	281			n/a		8.35		3.43	4.92			1,383
2	1 inch - plastic	631			3.43
3	1 inch - steel	643			8.35					4.92			3,164
4	1¼ inch - cast iron	532			n/a		8.35		3.43	4.92			2,617
5	1¼. inch - plastic	1,816			3.43
6	1¼.. inch - steel	1,086			8.35					4.92			5,343
7	1½ inch - cast iron	3,135			n/a		8.35		3.43	4.92			15,424
8	1½ inch - plastic	188			3.43
9	1½ inch - steel	6,373			8.35					4.92			31,355
10	2 inch - cast iron	21,755			n/a		10.10		3.92	6.18			134,446
11	2 inch - plastic	13,607			3.92
12	2 inch - steel	21,035			10.10					6.18			129,996
13	2½ inch - cast iron	1,273			n/a		10.10		3.92	6.18			7,867
14	2½ inch - plastic		3		3.92
15	2½ inch - steel	493			10.10					6.18			3,047
16	3 inch - cast iron	134,978			n/a		13.00		5.55	7.45			1,005,586
17	3 inch - plastic	32,027			5.55
18	3 inch - regulator		6		-
19	3 inch - steel	44,835			13.00		13.00		5.55	7.45			334,021
20	3½ inch - plastic	7		5.55
21	4 inch - cast iron	896,441		n/a		19.15		11.40			7.75	6,947,418
22	4 inch - plastic	191,941		11.40
23	4 inch - regulator	2		-
24	4 inch - steel	183,835		19.15		19.15		11.40			7.75	1,424,721
25	5 inch - plastic	135		16.45
26	5 inch - regulator	5		-
27	5 inch - steel	1,600		24.50
28	6 inch - cast iron	1,204,379		n/a		30.00		21.50			8.50	10,237,222
29	6 inch - plastic	378,940		21.50
30	6 inch - regulator	41		-
31	6 inch - steel	282,904		30.00							8.50	2,404,684
32	8 inch - cast iron	234,531		n/a		42.50		28.00			14.50	3,400,700
33	8 inch - plastic	134,244		28.00
34	8 inch - regulator	28		-
35	8 inch - steel	133,612		42.50		42.50		28.00			14.50	1,937,374
36	TOTAL:											$28,026,368

Directory: files -> documents -> 2016
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