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R. S. P,
<br />
<br />Septemb~e~ Z~,
<br />
<br />"(3) ~ne detail of the numerous items above mentioned, are to be worked out by-~he Govern.
<br />mentpiant..F~ngineers, and are to be a part of, and conform to the operation of the present
<br />
<br />"(4) Aceordir~ to ~he letter from A
<br /> dmzral Harris, dated Sept, 19th, the Government has
<br /> the apprgpriation available for the said enlargements and extensions, and are estimated
<br /> to cost ~1,800,000.00.
<br />
<br />~(5) The terms .a~d conditions wmil be covered in a tentative agreement, to be submitted
<br /> at an early date by the Government authorities, and was outlined ~n a conference with
<br /> ~ir. Dillon, of the marV!ndustrmal- Board; Admiral H~arris, Pres~ident of the Board of
<br /> Contro~, ~ud Captain ~att, Industrial Manager of the Nat7 Yard. Lieut. Col. Nau~y
<br /> also confirms our u~erstandlng and is in substance, as follows:
<br />
<br /> ~(a) ~The U. S. Government to advance the necessary funds for tbs extensio~m
<br /> and enlargements and to assist the City of Portsmouth, in f~uaneing the purchase price
<br /> fixed by recent arbitration, if necessar-y.
<br />
<br /> ~(b) All work to be under the supervision and inspec'tlon of the U. S. Government
<br /> Portsmouth.Engineers' but sub~ect to the approval of du~y authorized official of the City of
<br />
<br /> y~) ~The_oo.s~t 0~_.sala extensmons and enlargements to the Portsmouth Water Supply,
<br /> to be p m~ rot oy %ne city of Portsmouth, three (3) yea~s after the duration of the
<br /> war, at the then~ ~ appraised, value, taking into consideration the needs and demands ~
<br /> the City, for ~amc improvements at the time of the app~&isal, deducting such percent
<br /> of the total value of extensions and enlargements put' in by the Government, and not
<br /> needed at time cf the appraisal by the City to supply its then demands.
<br />
<br /> ~:{~) The said apDraisal to be made in the usual m~une~ by 'Arbitration, each party
<br /> to be ~ - 1
<br /> qua !y repr6sented by one disinterested a~oi~rator; the a~bitrator ~for ~the City
<br /> of Portsmouth to be chosen by the Council of the City; and if they ~e said arbitrators
<br /> do net agree then~by mutual selection of said arbitrators, an %~mpire may be chosen,
<br /> and the decision o£ two of such three shall be final. The said a~bitrmtors, for the
<br /> purpose of ascertaining the value or for aiding them in so doing, Shall have access to
<br /> the books ~nd papers of said Company.
<br />
<br /> '~(~) The City to pay to the U, S. Government 5% interest on the cost of said
<br />extensions and enlarg~nents, provided 50% of the net revenue derived over operating
<br />expenses by the City and above that derived by the City operating at its present ma~i-
<br />nam capacity, f~om said ~xtensions anden~arg~ments~ is su~ficient to pay the said 5%;
<br />otherwise the said 80% will be accg~ted by the Government as interest payment in full,
<br />using the w~a%e~ . rates current~ at the time the adjustment' is made using~ the present maxi-
<br />mum capacity of the plant as a basis for calculating the 5% interest to be paid the
<br />Gov~r~nment.
<br />
<br /> "(f) The City of Portsmouth to operate the Portsmouth Water SuUply and the said
<br /> extensions and enlargements in conuection therewith, and to have c~mrge of and be re-
<br /> sponsible 'for the collection of the revenues ther. ef~om.
<br />
<br /> "(g) The City of Portsmouth, Virginia, may deliver water to the City of ~erfolk,
<br /> Virginia, on metered rates and te~s to be agreed upon, said point of deliverv shall be
<br /> at a location to be designated by the City ofPortsmouth,' Va., provided the contract
<br /> for the sale of water to +JQ~e City of Norfolk is legal and everv right of the City of
<br /> Portsmouth s~feguarded, as to its future needs.
<br />
<br />"(~) At the several conferences held between the U. S. Gd~ernment and the City Officials,
<br /> the g~neraI plans of enlargement and extenslons,also the financi~ arrangements, have
<br /> been discussed and seem to ~eet with approval and understanding, although at present
<br /> writing, no action has been taken by Council regarding said improvements.
<br />
<br />"(~; Upon the receipt of Admiral Harris~ letter of Sept; 19th, and also b~ing informed
<br /> by Lieut. Co~. Naury that orders have been placed for machinery and materials for said
<br /> extensions and enlargements you wer~ advised by phone.
<br />
<br /> I sincerely trust the Government's tentative agreement will be on hand for the Coun-
<br /> cil's con~deration Tuesday night's call meeting, along with this or a report from your
<br /> committee at that time.
<br />
<br />=Respectfuliy submitted,
<br />
<br /> aW. B. Bates, City Manager.~
<br /> Then the following resolutions were adopted:
<br /> "Resolved, That the City Manager be instructed
<br />%o prepare a letter, s-~oject to the approval of the City Attorney, %o the President of the P.
<br />B. & S. Water Company, requesting data or inventory, &c., as requested by terms of contract and
<br />arbitration.=
<br />
<br /> "Resolved, That the 'City Manager be instructed to v~ite to the President of the P. B. & S.
<br />~ater Company notifying him that the City Council requests the right to audit the books of'said
<br />Companv since Apriilst, 1918, said audit to begin about October 10th, lgXe.~
<br />
<br /> At this point, letters to Admiral Harris from the City Clerk and f~om A~mirA~ ~Harris to
<br />the City Clerk were read in regard to the Admiral.s~presence at the call meeting.
<br />
<br /> The Chairm~n of:the Department of Finance presented the fotlowir~ repo~t:~
<br />
<br />
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