Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-14
One f. TO Purchase Present Plant ii
Price IL within Reach.

One IL TO Purchase Present Plant ~
Price f. within Reach.
Exactly what recommendations would
be made to the city council at its meet
ing tonight had not been definitely de-
cided yesterday by the special water
works committee, II was stated. The
committee is scheduled for another meet
ing. at which Mr.. Kiersted. the expert
hydraulic engineer will be present, this
afternoon in the office of City Solicitor
Kimball At this conference, 1t is under
stood, the committee will come to some
final conclusion and the report to be made
to the city council will be formulated at
that time
Chairman Wallace or the members of
the special committee are not inclined to
take the public into their confidence. but
from another and an authoritative source
1t is said that the committee will make
two recommendations to the city council.
One will recommend municipal ownership
the price to be offered the water works
company for it's plant, however, not to
exceed the amount to which the city can
increase its bonded Indebtedness for this
purpose. The other recommendation will
be the granting of a new franchise to the
water works company on certain con-
| ditions.
One of the principal conditions, IL is
stated. on which a new franchise will be
granted the company is that 1t will enter
| into contract with the city to carry out
| the improvements in its service suggested
! by Expert Kiersted in his report to the
| special water works committee. These
| improvements, as estimated by Mr.. Kier-
sted, will entail an expenditure by the
company of over 100000, and are as fol-
lows:
High service for hill district ....s 26,O42
| Reinforcing mains in business dis
| trict .......... ................ 24,2lO
New pumping engine and piping. 2S,175
| Extensions and improvements of
Brick building at Thirty-seventh
street pumping station ....... $3.50
Total s107,1s2
Regarding the schedule of rates pro-
vided a new franchise was decided upon,
the city official from whom the above in
| formation was obtained, stated that Mr..
| Kiersted had submitted a schedule in his
| report and this probably would be taken
as a basis upon which to come to some
agreement with the water works COM
pany on this phase of the question. "Once
| 1t is decided to grant the water works
| company new franchise l do not ex-
pect there will be much trouble in COM
ing to an agreement relative to rates."
| said the official.
| While 1t is understood that certain
members of the city council are still in
favor of municipal ownership. it is be-
lieved that a majority of the council is
| opposed to this proposition. Those OPP
| posing the purchase by the city of the
| water works plant are of the opinion
| that the more economic proposition would
i be to allow the present company to con-
| tinue to operate the plant. Not only
| would the latter course undoubtedly re-
| lieve the city from what would likely
/ prove costly and lengthy litigation. but
It would save the city from mourning a
heavy Indebtedness. which, If the plant
under municipal ownerships failed to
prove a paying investment, would prove
| an expensive experiment.
In his report Mr. Kiersted placed his es-
innate OF the present value of the water
works plant at S4sOle9. to which he added
a going value of S20.749 making the total
value $5Oo.94s. To reproduce the present
plant, however, Mr.. Kiersted estimated the
cost at 1854. AS, to which would have to be
added his estimate of $1O7, 1872 for the needed
extensions and improvements. While some
OF the members OF the special water works
committee are optimistic enough to declare
that in the event Of the water works de-
clining to accept the offer for purchase by
the city, should municipal ownership be
decided upon. the city could proceed TO
construct a new plant, by others this is
not considered feasible.
While the members OF the special water
works committee are uncommunicative and
other members of the city council are not
in position to express any opinion until
they receive the report from the special
committee. present indications are that an
agreement will probably be reached between
the city council and the management of
the water works company whereby the
company will be granted a new franchise
OF sufficient term to warrant It making
the expenditure in carrying out the extern
sions and improvements in the service sug-
gested by Mr.. Kiersted In the event OF
the city council deciding on the latter solu-
ton OF the matter, the question OF grant
ing franchise would have to be submitted
to the people at a special election for their
approval
Manager Hart declined to discuss the mat.
ter until some action one way or the Other
Is taken by the city council