Water-works Question

The íollowing are the resolutions which wiU be cousidered at the special meeting of the Common Councll, to be held next Monday eveniug, at which meeting, we understand, is is diïsirahlo that there should be a large atteudfiuce of citizena, that their opiniona may be obtained. We also underfitand that parties trom abroad who have been investigating the subject with a view to raaking a bid, wiü be present at the meeting with full estimates of the cost of the works. It will be observed by those familiar with the resolutions, that the material change proposed is the guarantee of a certaiu amount of gross income instead of a speciftc sum to be paid aimually. From the discussions in the Council meeting last Monday eveuing the propositiou seems to be favorably received. First, That it is oxpedientto haveconstructed in said city of Auu Arbor, works for the purpose of suppiying said city and the inhabitants thereof with water' but that it U ioexpedient for said city, under the power grauted iu its charter, to build such WOlxs. Second. That, as an inducemcnt to the formation of a Company for the purpose of eonatructing aad operating sueh works, this Council will, aa aoou as practicable after the passage hereof, advertise for and roceive sealed proposals, each to be signed by at least five responsiblo bidders, for furnishing said city with water for public or municipal purposes, lor the pcriod or term of twenty years, with the privilege to said city of an additional term of not tesa thun tiw mr more than ten yearSj at a rate, or for a consideration, not exceeding üve thousand dollars per annum, or in lleu of sueh specitic sum, at the opüon of bidders, upon a guarantee by said city of au annual gross income from water rents, not exceeding ten per cent. on the actual costs of suco works, In tho marnier and on the terms and eoiiditions more particularly specified in the next succecding reaolution. Tkird. That this Council, in behalf of said city of Aun Arbor, undertakos and oblígales itself to contract for the supply of water aforesaid, in the manuer above and lereiuafter specified and provided, with the lowest bidders for furnishing such supply, by sealed proposals aforesaid, to be ascertaiued and detennincd by this Council, when and as soon as such bidders shall have completed their organization as a Company for the purpose of supplying suirl lityand the inhabitants thereof with water, agreeably to tho provisions of an act of the Legislature of the State of Michigan, entitled, " An act to autliorize the formation of conipanies for the introduetion of water into towns, cities and villages in the State of Michigan," approved April 3, 186Ü : Provided that such company shall, on its part, obligate itself to build and complete Ín said city of Ann Arbor, within one year from the date of such contract, works oí suflicient capacity to reasonably and properly supply said city and the mhabitants thereof with water, and within the same period, to Íroperly and permanently lay down in said city at eaat fifty thousand feet of main or supply pipe of sumcient strengt h. and size to adequately and at all times furnish water for fire duty and protection in said city ; and to furnish connect and permanently set in suitable and sufïicient frost-cases, for the use oí said city, sixty good and sufficient first-class fire hydrants, with two two-and-a-half-inch nozzles each, and six first-class " Center Street" hydrants, to be located by the authorities of said city, reasonably near to main or supply pipe that shall have been laidby such uompany; and thereafter,atall times duringthe term or terms aforesaid, for the consideration, not exceeding five thousand dollars per annum, or the guarantee of annual gross income proposed and accepted in marnier aforesaid, to ftiily and properly supply such hydrants with water for the use of said city, under asufflclent head, pms- sure or power, by machinery or otherwise, for efticientj continued and adequate fire duty and protection in any and every part of said city, without the aid or use of a fire eugine ; and further, at all times durhig the term or terms aforesaid, to maiutain the aforesaid hydrauts, and, upon the reasonable notification of the authorities of said city, to preserve the same in good repair ; and further, from time to time, and at all times duriDg the term or terms aforesaid, to permit said city without additional charge therefor, to make and maintain connection of all such otheror additional fire hydrants as it may electlo provide at its own cost, with the main or supply pipe of such eompany ; and at all times during the term or tornis aforesaid to fully and properly supply, without additionai charge to said city, all such other or additional hydrants, with water for fire duty or protection, in manner aforesairt ; and further, of the main or supply pipe to be laid within one year from the date of such contract, in manner aforesaid, to lay at least two thousand and ftvtihundred fcet south of Liberty streets, between Main and State streets, in the First ward of said city ; two thousand and five hundred feet on Liberty and Huron streets, west of First street, Ín the Second ward of said city ; three thousand feet, on Miller Avenue and Spring street, in the Thjrd ward of said city ; two thousand and five hundred feet north of Ann street anti east of Detroit street, in the Fourth ward of said city; one thousand feet in the Fifth ward of said city, and two thousand and five hundred feet east of State street, in the Sixth ward of said city ; and further, from time to time during the ternior terms aforesaid, and the continuance of such company, according to the growth and increase of said city, and such company receiving reasonable guarautee from prospective water consumera or froin said city, of a gross return of not less than ten per cent. per annum on all necessary increase of expenditure or iuvextment, toenlarge the capacity of such works and the extent of such main or supply pipe, so that said city and the inhabitants thereof may at all times be properly and fully supplied with water for all municipal and domestic purjwses. Provided further That in case such contract made in pursuance or these resolutions, ahall bebased upon a guarantee of annual income aforesaid, such works and any extensión thereof, shall be constructed uuder the supervisión of a Board of Directora, one at least, of whom shall be elected upon the nornination of the Common Council of said city, upon the lowest terms consistent with a proper, efficiënt and substantial construction, in manner aforesaid, that can be obtained by a reasonable advertisment for sealed proposals for such construction, and such cost sball be reported to the Common Council of said city, under the oath of the President and Secretary of such company; ahd furthe, in such case, that the aggregate gross income of such company, with a specific showing of gross income from extensions, if any, shall be reported to said Common Countil, under the oath aforesaid, on the first Monday in February annually, from and after the completion of said works ; and any deficit of grosa income which such company may be entitled to receive from said city agreeably to töe terms of such contract, if any, shall be thereupon aacertained and allowed by said Common Council, and be thereafter, within thirty days, payable upon the warrant of the Mayor and Recorder of said city, by the Treasurer thereof; and further, in such case, that one at least of the Directors of such company shall annually be elected, and at all times continued in such office, upon the nominatiou of the Common Council of said city ; and further, that the business, affairs and purposes of such company, shall at all times be managed, conducted and pursued with reasonable diligence, care and efficiency ; and the books, records and files of such company, shall be at all times acceaaible to the inapection of the Common Council, of said city, and of any comDdttee OJ member thereof; and furthei, that in case said city shall elect, to become a stockholder in such company, Ín purauance of the provisions of Section 17 of the aforesaid act, at any time within thirty days frora the completion of such works, the amount of stock, not exceeding forty per cent. of the whole amount in number of shares and nominal valué of the stock of said company, applled lor by said city, shall, upon payment therefore of the f uil amount paid in thereon, be transferred upon the books of said company , to said city; and further, that it shall be optional with said city at any time after the expiration of five years from the completion of such works topurchase from such company all its property, rights and privileges, at such pnce as may be agreed upon between said city and said company, or as ahall be ascertained in the manner provided in Section 16 of the aforesaid act, not excecdiug the actual cost of such works witn increase thereon, from the time of construction, at the rate of fiiteen per cent. per annum, less the amount of any dividend or dividends at any time paid to the stockholders of said company, and of all accumulated and reserved profits of such company. Fourth. That, as a further Inducement or encouragement to the formation of such company, this Council further undertakes and oblígales itself in behalf of said city of Ann Arbor, to grant by Ordinance, to such company, when duly orgamzed in manner aforesaid, all such right to the use of the streeta, alleys and public grounds of said city, as shall be necessary to enable such company to properly construct, enlarge, extend and opérate the aforesaid works, subject only to such just and reasonable terms, restrictions and limitations, as are contemplated by the provisions of the aforesaid and further, that this Council also undertakes and obligaten itself. iu behalf of said city, as aforesaid, to exempt such company, by Ordinance aforeMld, at all tunes, from the unpoaition of any restriction in respect to rates or charge for water contemplated by section 15 of the aforesaid act, that would, if imposed, prevent such company from realizing an aunual net iucoine, gain or proflt, over and above operating expenses, cost of extensious and repairs and interest on money borrowed, if any, equal to fifteen per cent. on its capital stock represen ted by the actual cost of the construction, enlargement and extensión of such works, on condition that such company shall contract with said city in the manner speciiied in the preceding resolu' felona, and shall, at all times, keep and perform all undcrtiikings, eovenants and conditions on its part to be kept or performed in pursuauce of such contract. _ ui m m