The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-06-05
CITY BODY TO
MAKE0FFER TO
BUY PROPERTY
Negotiations for Purchase of
Old Plant Must be Com
plete by June IL
WORTH is DISCUSSED
Offer Is Based Upon Cost of
building the Plant New
At This Time

The city commission of Bismarck
will offer the Bismarck Water Sun
ply company $25O,oOO for it's plant.
The offer. decided upon last night
IN lengthy meeting in which the
citizens committee deliberated with
the city commissioners, is regarded
as the final offer of the city. Ncgo-
tlahons for purchase of the water
company must close by the. night
Of June IL.
Inc city commission arrived at the
figure by taking the estimate of the
city engineer of ,ne value of the
present plant based upon prices con-
tanned in bids submitted for the
construction Of Il new plant and
adding sum because the companv
Is going concern
City Engineer Atkinson, after an
plying the prices in bids on the
building of a new plant to the prop
erty in the old plant, estimated the
| reproduction cost sI the present
plant at about $34O,OOO, and the de-
preciated value at about $24O.O
The figure of $4,000 was $4,000
higher than his estimate to the
railroad commission three years ago.
This difference was due to the in
crease in the price of cast iron pipe
used in the building of the plant,
and the valuation method being used
at that time being to take the
median of prices for period Of
several years
In presenting the estimate, the
city engineer disregarded all pre-
! vious estimates and methods, the in
structions being to apply the prices
given by bidders VINO offered to build
new plant, and apply depreciation.
The city some months ago made
the company an offer Of $265 900 for
the plant, that being an arbitrary
figure. The present figure, the com
mlssioncrS believe, is the fair value
in the light of what it costs to build
a plant at this time.
In the informal discussion the cost
OF taking up paving to build a new
plant was considered. This was es-
timated at $4,000. If the present
plant were bought and additions pro-
posed by the city made the cost of
tearing up paving would be $4,000.
IT the city took over the present
plant, according to some it would
Immediately have 20 spend several
thousand dollars in repairs
City Engineer Atkinson said that
he had always been in favor of TAX
ing over the present plant of the
company and putting on necessary
repairs and additions, if it could be
bought at a reasonable price, and
that in figuring the price the COM
mission ought to allow something
for the fact that the company is
going institution. There could be
some saving, he said, by the city
Immediately operating the present
plant without profit while additions
were being put on.
The city commission and citizens
committee was unanimous in their
opinion that $3.50, 900 was fair fig-
ure.
Commissioner Hensler introduced
it's adoption:
"The report of the City Engineer
as to the value Of the property of
the Bismarck Water Supply Com
pany having been received, and the
condition of such property having
been considered by the Board of
City Commissioners, and the value
of the said property having been
considered in the light of bids re-
ceived for the construction of COM
plete Water Works system, and the
Board of City Commissioners being
satisfied that $25O,O0O is the reason
able present value of the property
of such Bismarck Water Supply
Company,
"NOW THEREFORE, BE 1T RE-
SOLVED That the City of Bismarck
hereby offers to the Bismarck Water
Supply Company the sum of $25O,0O0
as the purchase price of its said
property, and
"BE 1T FURTHER RESOLVED
That negotiations for the purchase
of such property saall close finally
on the l1th day of June, 1928, at
eight o'clock, P. NJ, and that the
answer Of such company to the offer
here made be required on or prior
to such date:
Provided, that if such offer be ac-
cepted the purchase price shall be
paid within ninety (9O) days from
the date of acceptance.
"BE 1T FURTHER RESOLVED
That the City Auditor be and is here
by instructed to senc certified copy
of this resolution to the Bismarck
Water Supply Company at its Bis
mArck Office BY registered mail"
Commissioner Larson seconded the
motion moving the adoption OF the
resolution. On roll-call the commis-
sioners voted as follows. Ayes, Com
missioners French, Henzler, Larson,
Thompson and President Lenhart;
nays, none The motion carried and
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