New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1916-04-26
RECORD SESSION
BY CITY COUNCIL
I -
f-MuCH BUSINESS TRANSACTED
IN SESSION LASTING BUT
FEW HOURS.
ROAD TRACTOR is PURCHASED
AND HEATING PLANT PLANS
APPROVED.

More business was crowded into the
short space of two hours at the council
meeting last Saturday evening than at
any previous meeting when the sessions
were stretched to close to the midnight
hour. In Saturdays session the council
decided to purchase road tractor and
roller at the price Of $4,000, heard the
report of the heating plant expert and
fixed the price Of steam to be furnished
the new corporation which will operate
the central heating plant in this city.
The members of the council had at
previous meeting instructed the COM
mittee on streets to make arrangements
for the purchase of the tractor and it
took but few minutes to definitely dis
pose of the matter by agreeing to the
purchase price and fixing the terms at
5000 down and 5000 per month.
Then came the reports of the heating
expert, substantially as published in last
H\weeks issue of the Review. Mr.. Foster
Supplemented his reports with short
verbal report as to how the city should
proceed in the matter.
The council committee which had been
appointed to confer with the Commercial
Club committee on the heating plant
proposition reported that it had met with
that body and came to an agreement
substantially as follows:
1T was agreed by the two committees,
subject to approval of the council, that
a rate of so cents per 100 lbs. condensa-
ton should be fixed for heating, subject
- to a discount of 10 per cent for prompt
payment. The committee of property
owners urged very strongly the propriety
of establishing rate of 40c per 100 lbs.
condensation, but finally consented to
the rate agreed upon with the reserva-
ton that after the plant is in operation
for year the rate shall be reduced to 40c
providing the returns justify such re-
duction.
'sThe plan of the committees of pro-
petty owners as stated to your COM
mittee is to form corporation at once.
All of sthe property owners within the
heating district shall be stockholders in
this corporation. The money with which
to construct the plant will be furnished
by the corporation. AS soon as the cor
poration is organized they will apply to
the city council for a franchise authoriz-
ing the corporation to lay their mains in
and along the necessary streets and alleys.
The corporation will then 60 ahead with
the construction of the plant. For
various reasons of legal nature it is
necessary that the contract for the con-
struction of the plant be made in the
name of the corporation. We are as
sured, however, by the property owners
committee that the letting of the contract
and any work done in or about the con-
struction of the plant will be at all times
subject to the supervision and control OF
the city council. In this connection it
has been suggested that a committee
from the city council together with the
superintendent be appointed to act for
~<he city.
cat the time that the franchise is
granted an agreement should be entered
into between the city and the corporation
providing that the city will furnish the
necessary steam at the price of SOC per
100 lbs, subject to discount of 10 per
cent for prompt payment, out of which
the following payments shall be made:
81. Interest at the rate of per cent
annually shall be paid to said corporation
on the total cost of the plant including
all expenses NECESSARILY indicental thereto.
"2. The expense of the operation of
the plant shall be paid.
: 49, A reasonable sum shall be set
= aside each year for depreciation.
''The remainder shall be the net re-
turn to the city for the steam so furnished
by it, and this amount shall be paid over
annually to the corporation as a part of
the purchase price of said plant and when
the amount so paid shall aggregate in
amount the total cost of said plant then
the corporation shall turn over and de-
liver said plant to the city as it's absolute
property, and shall surrender the fran
<ehise so granted said corporation.
Z GAS soon as the heating plant is COM
pleted it is intended that it's operation
and management shall be turned over
to the city and that it shall be operated
and managed in connection with the
electric light and water works depart