The San Francisco call., 1909-11-13
To the Honorable
The Board of Supervisors Of the
City and County Of San Francisco.


Ctu and County of San Francisco
Gentlemen: We have heretofore acknowledged re-
cept of your letter of October 25 1902 in which you
inclosed copy OF resolution No 4ol8 (new series),
approved October 90 1902 and notice bearing date
October 23 1907 addressed all owners of any exist
ing public utility, to w.t. water supply and works
for supplying water to the city and county of San
Francisco and its inhabitants, any portion thereof,
soliciting and inviting them to submit offer or
offers in writing to sell such utility the city and
county and stating that the board of supervisors will
consider any and all such offers that may be submitted
on the 18th day of November, 1909.
In compliance with this notice hereby offer as
follows
&. FIRST-It has been repeatedly stated by members
or your board that it policy to proceed with
the acquisition of the called Hetch Hetchy system
wi ther the city and county does does not acquire
the property of the Spring Valley company, and you
have formally declared favor of the acquisition OF
the ITetch Hetchy system. The cost of that system
will Ne more than S40000O00 1t will not be possible
for vu to incur an indebtedness of $40000000 for the
acauis ston of the Hetch Hetchy system and to pur
cllase the property of the Spring Valley water com
oany even the valuation placed upon 1t by your
board and by the city engineer, owing TO the charter
limitatiou rs upon the bonded indebtedness which the
nnicipa Sty may create without radical increase of
the pese1a assessed valuation of the property of the
tax PAYERS, The Hetch Hetchy system not be COM
peted inside of 10 II years from the date when
work is actively begun We recognize that if you are
to proceed with that system it is absolutely essential
to the protetaon of the city that some arrangement
be made by ,uhich the water supply may keep pace
with the denlaad until from Hetch Hetchy can
actually be delivered within the municipal limits In
this emergency and in order that the OF
this company rpay be utilized that the city may
be kept fully Supplied with water, and upon terms
which are financially possible to the municipality,
offer to sell to the city and county all of the distribu
ing system wthna the limits OF the municipality, in
Guiding reservoirs, pumping stations and all pipe lines
OF every descriptiog1 and service connections and also
500 acres of the MSrced ranch, i'll which included
the two Merced lakes, for $19420750. The details
of this offer will be furnished you request.
II the property be purchased will enter into a
contract to deliver to the city and county, at the
county ne for IS years water in the following guam
titles and at the following prices:
Forty million gallons per day until July /, l9Io at
IS cents per 1000 gallons;
Fifty million gallons per day from July |, 1910,
until July /, 1912, at IA per 1000 gallons;
Seventy million gallons per day from July |, 1912,
until July /, 1917, at l3 cents per 1000 gallons.
One hundred million gallons per day from July l.
1917 until July l. 1926 at Il cents per 1000 gallons;
and at the option of che city, be exercised when
the contract is made we will agree deliver daily
100000 gallons for stated time after 1926 per-
petuay The contract to fix the minimum quantity
which the municipality shall take during the periods
specified. Payments to be made by the city and
county each month for water supplied during the pre-
cedng month.
The property which we herein offer to sell will
be useful and available to the city and county III
nection with any water supply which the municipality
may acquire and the purchase of it by the city and
county under the plan sh ggested would practically
enable the municipality to own its water works long
before the time when water be supplied from any
other system.
If this proposition is accepted by you, all papers
necessary for its consummastion will be executed
once by the company and deposited in for a
period of five months
SECOND--If you willing to consider only the
purchase of the entire property of the company our
offer is follows:
There has been much discussion between members
of your board and representatives of this company
regarding the value of the conspany's property. Lt-