The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1893-08-21

supplying the city with water, and, if the
city shall determine to purchase, there
snail thereupon be three appraisers APP
pointed, one by the Board of Trustees of
the city, one by the contractor, and the
thlrd by the two thus selected; it being
understood that the agreement Of the
city TO purchase water for the term herein
specified, at the rate for which a bid
Tor such supply may be accepted,
IS part of the consideration moving
the contractor 10 sell and convey upon
the terms herein specified. Said appraisers
snail determine the actual value Of the
property constituting such water system.
In determining such value the APP
pralsers shall not consider any element
OF good Will. franchise or water right, but
Shall only consider the actual intrinsic
value OF the lands, wells, machinery,
pipes, clsterns, reservoirs. buildings,
mains and other property constituting
such water system, as ii acquired in the
nrst instance. taking into consideration
depreciation in machinery and other
perlshable property. If the city shall be
satisfied with the valuation thus fixed by
Inc appraisers, and the same shall be ap-
proved by majority vote of the electors
OF said city, the city shall become the
purchaser OF the property at the end of
SAID term OF twenty years, and pay there
Tor the appraised value; provided, how
ever. that in no event shall the city pay
10 exceed the sum Of $500, 900 for said en-
TIRE water system, and the contractor
must agree to sell and convey to the city
all OF the property constituting such
water system for said price, Payments
To be made either in cash or in bonds Of
the city bearing interest at per cent.
per annum, payable semi-annually, to be
duly issued according to law, at the
option of the city. If the city shall not
elect TO accept the property at
the valuation fixed by the APP
pralsers, or shall not exercise its option,
such failure to exercise lis option shall
have the effect of renewing the contract
for a further period of live years: and
TWO years before the expiration Of such
additional five years the city may again
exercise the option to purchase it at the
end of said renewed term, at the then
appraised value, and if not awaited of the
contract shall be considered extended for
further term of five years, on the same
terms as before. The said right to pur-
chase as aforesaid shall be a part of each
renewal. The contract shall be renewed
however, for only two terms of five
years each after the expiration of the
hrst twenty years, and unless the city
exercises this option to purchase before
the end of said thirty years, its option
shall cease, and at the end of said thirty
years, II not sooner terminated by pur-
chase, the said contract shall be at an end.
But at the end of the first twenty years
herein mentioned, the city, if 1t does not
elect to purchase, shall have the right to
Tx the price at which water shall be fur
nished 10 said city and its inhabitants
during the period OF time for which said
contract is extended, having due regard
to fair return on the amount of capital
invested IN the plant or water system,
and it being understood that the option
to purchase on the terms herein stated is
an Insepardble part of the contract, and is
an inducement to both parties to enter
into such contract.