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HomeMy WebLinkAbout1945-1946 INC_GEN CORRESPONDANCETruce 159 1345 Country Club District Service Coo A-611 4nc o "dale Avenue Minneapolis 109 Virr_o Attentions Mr, Caarden Gentlemen; We have the following report :submitted to us by our fire .ch.ief,, Phil Bailey and pa:so it on to you in case you do not already know about theme hydrants. He informs us that the hydrants located in the following places have loose coupling connections: 4517 Arden Avenue 4619 Casco Avenue Cain o and Sunnyside 451S, Drexel Avenue He also reports that the `hydrant located at 'Bruce and Sunnyside was found full of ice and water_ a few days ago. They Isere able to remove the ice and then pump out the water,, but I thought it might be -well to check an this to see if it drains back pkoperlyo Some of these, I believe,, were found by the fire department and souie by the men who were flushing ' the seen ers,, and just thought you would like to kr.Ow about them. Yours very truly, Village Manager Pal S: Q x Poor Quality Document Disclaimer The original ,or copy of a- document or page of a document presented= at the time of digital scanning contained within this digital file may be of substandard quality for viewing, printing or faxing needs. VILLAGE OF EDINA 4801 WEST FIFTIETH:STREET EDINA, MINNESOTA _ December 83, 1945 s j Mayor and Village Council: Gentlemen: I vie wish to call lyour. attention to-the condition of the hydrants at the following 'locations: 4517 Arden Avenue 461.1 Casco Avenue Casco and Sunnys;ide 4515 Drexel Avenue These, hydrants have loose coupling connections which should be fixed at the .earliest possible date. The hydrant located at Bruce and Sunryside should also be checked for drainage as we have found, 'that the hydrant was full of water and ice a few days ago. We,*ere able to remove the ice and pump out the water on this occasion, but vie feel that an inspection is� necessary so that we will not have a recurrence of this condition. Very truly yours, i Fir e C of YB: ek R _1 09 t VENNUM, NEVILLE & ,WRIGHT 1460 NORTHWESTERN BANK BUILDING THOMAS VENNUM MINNEAPOLIS. 2 PHILIP NEVILLE WELLS J. WRIGHT - NORMAN L.NEWHALL,JR. - 1 "A'. Oso,fi?' Ga-,j7'den rAv-mue rccc- „'dtin—f- ­ i th t;ll' s+ ,ill t!'f% on o”' ;15, Un1 . t?-, .s a•`. ''ovf 1 ,}. ?A ^e1i` }.F� , t'1='y'_.IdlI :0 D only -ut you to n-ddi- --ion' i there ary rear -tin for not r eirfr, Your:; ver°v truly, i f AT T By THOMAS VENNUM 7a ro 10 Utley, P EMT & ERMT :Stt�NI$AS'47�.tS Y SEP 2 2 1945 ,8. W. S.__. TAX____ - - - - -- �. H. L...._.v.e- •CASH.- _._..-- ---°�- HUBBARD ENGINEERING COMPANY - Consulting Enginefrr,@_._ STENO___-- 225 North Michigan Avenue Chicago 1, Illinois September 19, 1945 - i Mr. Perry Moore, Stinchfield, Mackall, Crounse & Moores 1100 1st National Soo Line Bldg., Minneapolis 2, Minn. Dear, Mr. Moore:- Mr. Schmidt asked that I write.you and quote a paragraph from a letter received from Mr. Leonard M. Thompson, General Manager, Water Department, City of St. Paul, Minn. RI was advised a few days ago by Mr. Gaarden that'I should be prepared to proceed,.representing him in the.work- under discussion. I will be out of the city almost- continuausly between now and the-24th of the month, but will.try to have prepared a few-names of men- for consideration as a third party." The above, as you know, is in reference to the appraisal_ of the rater system of the Village of Edina. Mr. Schmidt said he would follow this up immediately after the 24th. of thi -s month. Sincerely yours, /s/ T. L. Bartos 1 VILLAGE OF EDINA 4801 WEST FIFTIETH STREET • EDINA, MINNESOTA Mr. Phil Srnith, Village Manager Village of Edina 4801 Nest Fiftieth Street Edina, Minnesota Greetings, Phil: There is a utter that I have neglected to call to your attention, but for fear that I might forget again, I am going to make a written request of it. Has the firm of attorneys who have been handling the water system litiga- tion for the village rendered a statement of their fees up to January 1, 1946? If not, I'would like to request that you check for such a statement after consulting with Harold Utley, the chairman of the Public Utilities Committee. Inasmuch as these fees have run into considerable money, it is my feeling that we should be up to date on these charges s.9-that the present Council is fully informed at all times. Sincerely, 7ayor Village of Edina Yarch 18, 1946 t J s c i 1 P.S. One more thing: When.you present the Planning?CommissionIs recommendation in connection with property at Fiftieth and Wooddale for park purposes at our next meeting, will you alsa be prepared to give'us minutes on any previous action taken by the.{former Council. { i MAR r t VILLAG i EDINA STAT"' OF AIM= IOTA COL"N.'ry 01' R.LOVOW41414 Appoa'l o-1 Courttx7 Club District sarviect comparkys a corporatlon# from RosolutLon W'.d Order of, Wv V111'aj4$ Ca". x,411 *f 114110 Village or :f In-%* FWTIG tjohadulo or Water ,q aces for the Villa4;* *C 1,41twa# * 0 -it 10 * * Tot v"111,464 of V'41WA Fdjn # .' a Minnosota JUDICIAL DVIMICT or- It' ION YOW KLI, PL- ". I A43'.,ii TARL. AflWa"IC11:4 thO On thO 4vbft"--ww** day or 1946o. 'the underulenod Appellant and Petitioner w111 *ovo tie abovo nwi* cou.rt for an ordor staylrj ho ror4o and ffoot of." U-int oortmin, ordor and roaalution of tbo council "ot MrAo VilluZo, ion 1,dlzmm dosorlbad In the oom-w p1tint "nail Mal datenAin4tion or 'w-ho 1.lsuas igod on b appeal In a trial on thou 4ocritiso at'id 4,4o-, a further or.4*r advan-o-Inj; Uto above uppou), I'ar a trlia at 4wn awAy dm-b# UP03 tha, OfAl'onduro This motionvill be baaad. upon the atta-ehad atz"Idavit or oaoar Onardta awl. tho varifled oompluint of 4ha votition*r and AppaUant h4arstu• Duetted thle � dQq of mwchis' 10454 V M-1. Rmv 7 "117T 'T IMM .. 1 1 1480 Us tls Pmnlc BU1141AS I- &Z m =V", 01-11 ArTiVIL40 VYLAK COUNTY 01� LN 9 :, A� Peigl of coumtr7 clut, Dlatrlot C ,,,,#VVJjOO fma Resolution, ftk,.-d order of the villafp COUUOU Of b-44 IAII4;;O of �.dlwv t"01104U10 of '*4'star nate s top vl��o vulu;,a or -,'.din& 0 * * 0 ip VISVIXOT COURT ­'T roi"'mn "MD1,01AT" Dl" SUT M!"42 ". =L11 C-111"I'M vp= the attedhea arridwIt or -000ar oaarden and. W* vorlrlod oa'vldlnt Mod kwroln OtA thm 3OU04 of Motion attadhad boroto# a T . IT in 4 "At the Villai;* Of Ldi nA abow cause before W,4o utiewr4l4ned# one of -tne 4 os of' tbo abo" mm*4 o*urt# on the '"WAMWAN"im dAy 0r x4rahs, 10408 fta to *q ou o r should not. be satored ataylri tho effect of that ao..�Yta-ln order atid ro-solution of tho COultoll of vaiwao or iana ea 4aaorlba4 In Ww comploint horoln.p and .for, a turthar order of the court *4vanolni; the Abova appoal upon tho ovlwular or trial ut an 04vily date. tT Z VURT*%,« R I'3,pvmxr, tha't a oppy or tl,�I* orde-ro to4dtbop with a copy Of, tlla NotJoe or.." one 'j Afridavit bo 'Sowed up-on the villa ggo of E41na on or before the AwAm"WOWAMO d4y of -a 1945# Patod tAlo 4*7 or ST THD ""'4Y�MTs T 'T "M OV IMP: COMITT OV %, MI 5, 1"41 HLO I DISTIRICT e4lMURT PO"UrET XMICIAT, VIVIMUCT I APPOSI of COU'Atry club Diot-riot Sarvica Comp,=7# 4 oorporationg rMM Posolution &;UI Order Of the V51.1,460 council or the VILISSO, or D41n&# TFUL: A Doba4ula of Vater Rates ror Ow V. 11%t?;O of Edina* * 0 0 4 a eY� 0 ISMIrS OF COUIVIT �,IILIMICPIH A t V10012 L x I I OLSICAR OMM, ":7# baiAt,, r3rdt Al .4-7 Sw*Ms depoijus and *taboo t' %t_ ho to tho -Vrasldent and Censral. Mane Vor of tho Votitioner and Appelluat in tho 4 V antltlod proceadine.# Thut thei,,a ar* opproxI.-Mbely n1no Madrad (000) reg"Ar damosVia o=*Awors of *at*r mid customers or "the Potitioner In the - Villao ar Z41 no; thet the avorsq.;s no t 41rterarmo In r4taa sought to bo establIahed by tho of UdIna U the ab-ove plrooecUzZ brAmed upon the normal co lob over a pool of rateen t your* would* Ir placed In effoo:ts result in a reduotion in receipts by tho Potitioner of ApPrOXIMUtoly the folle unts du ,6 the period* barainaftor set for tut Juntiary I to YoWnumy 26# 1,266 0317000 F*bm*27, 27 to Marc a# 1045 183000 April I to wee 300. 1946 7500,00 JU17 I to !.-,*Pto,4,bVr 30s. 1046 M-000 Ootober I to Decombar 31,9 1044 222AOO Powtoo it Via ardor of tbo Villairoo Mmall eat ould Villaj;* wIth ropploat to red'uOtIon I o wero 'Put into r-froot at thV timis kwovleftd by sold. order and MIA Above aourt on U pshding a�ipeal abould reruso to approve a.-44 rutesp Potit .ion or WmId ba roread to seek reoalvory and rapaywont or rat iiwelly nominal &30,-.,tvt* *ram Alne hua4red (900.) dif-faront the 00;A and exponce of WI-Adh would be ao subat U#L,2, so not V to JUSIAPY nuoh a0tiona Thore 1.8* S. Continues to bcij, &-,Ad will be Vxrouabout toho *urrent 7o4r# .4 conetwit 0itm in remidmate in a4id va- lago# A larZo number of t1w bA%Ai;a pro rant ed and ecoh daal- 4 larza numbo�r or the Uo aro ,,,,old• K*iW of tho prosent raoidanta, Who soave the 1116 .0 T.0 Out of tho city* Tour 41rf1. ant Is Irkrormed 4nd bollovea that the Council O;r tie Vill:, of 1131dina bas no power to ex tor an order for tho reduction or watots x**tee cover in.1; mW period prior to tbA entr7 of aka ld ordor and notpitlestion to Pe-titionor* AtrUnt to Womed gvd boltovoo tl�at even Vt-ja CMM*Ll had such powers tl4u rate aet by Its Order dsvimt,- bo suistal-ned 00 tO *07 PrtOP Pariods or au"-Ont. period-jp txv ftture p.ovlod under r0oti* 4nd, 14v vshle,-h will be Oeter-ndued upon u tria. of this appeal on Ito r*ritsw Dillioga az-o vmdi to conaWwro of wntor for preoo4ing, OWOXI=00,17 ti *0 MOUtbO Poriods on or but tho r1rat dV or 4rizo ig4s* 111U vast aaount of aub�at=tlal -work re . quired. in xis '+41 mount"D to bo 4111ed in t 11v,11t of tho 6der of t V111 Z0 Countil 144-s such that It to n0600 ry and, *do '. visable V t the o an oArI7. hc;ari upon *nd 4-etomlnat,104, or to notion mcdhex%in. pot1t1on6r to A ri-nanatel ,17 roavo , nalble Anp-660ta Voratlon exid, q�.,,,rjroot;jy aapabjt fingA014111:7 or rer=ftaa to r4aWont$ Of Bald 01111ai;o 4U�r 000 unto or MzWy detominod by this no on appoal to bo due tboA# If tlwra be a daterf*, m1n.ation unfavorQbla to, t �otltionero That bj r4MUOU Or UU6 C**to Af'oLvaulds, It la ;kor, Z`ie b6st latorasta qr thfa 0 2.0 . . . . 14i APP414nt and of bb* VIIIaLe and the aotumaw.-is tharato th*t tba" be alft a 7 40tormination 0*- this appeal# m,.mt this arridavit it mda in support or a motlQu etuyln4; 1411w arder and afroot of Uto order of the VIIIaGe of Edina mrerre4 to in amplaint boretp, with respoct to el e, of w&tor mitoo In auld villuj�,a until suoh time as tbaro has boon a f1mal daturminution of Me said %)panl on Ito marits# dnd, yor a furthor order advanoin the 0414 -appeal on the Ofaendar for trite at an aAA7 date* n V .4bearlbad wid sWorn -0 betoro Me thim M, daq or.tiurah* 1045. un nn I�ubllo# Uenvaqp oi ty, 'Ut In mr m1mi All MM- STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT IN RE: Appeal of Country Club District Service Company, a corporation, from Resolution and Order of the Village Council of the Village of Edina, Fixing Schedule of Water Rates for the Village of Edina. PETITION AND APPEAL Now comes your Petitioner and Appellant and represents to the Court as follows: I. The Petitioner and Appellant (hereinafter called the Petitioner) at all times hereinafter mentioned was and now is a corporation organized under and pursuant to the laws of the State of Minnesota and was and now is duly authorized to engage in the business of, among other things, maintaining and operating a water system in the Village of Edina, Henne- pin County, Minnesota, and charging residents of said Village and said Village for water and fire protection service. II. At'all times hereinafter mentioned, the Village of Edina (hereinafter called Village) was and still is a duly incorporated village, organized and existing under and pur- suant to the laws of the State of Minnesota.. III. On or about October 13, 1923, said Village granted to Petitioner a franchise for the operation of said water system, which was duly accepted and which was at all times subsequent to said date in full force and effect up to and including the 12th day of October, 1937, and from and after that date in full force and effect as amended. -it.. IV Said franchise, as amended, provides in part as follows: PROVISIONS OF FRANCHISE RESPECTING RATES THE VILLAGE COUNCIL OF THE VILLAGE OF EDINA Do Ordain as follows: SECTION 1: There is hereby granted to Country %lub Dis- trict Service Company, a corporation organized under the laws of Minnesota, its successors and assigns, the right and pri- vilege to install, maintain and operate a water system within the following territory, to -wit: To supply water for any and all purposes to any person, firm, corporation or the Village of Edina, or any of its agencies for use Within said Country Club District, together with the right and privilege on the request or demand of any person, firm, corporation, or the Village of Edina to connect said water main and pipes with any and all property within said Country Club District, for use upon and.within said Country Club District,'with the right on the part of said Country Club District Service Company, its successors or assigns, to charge such compen- sation as may be agreed upon between it and any person, firm or corporation, or the Village of Edina, which'charge, however, must in all and any cases, be fair, reasonable and .just. (a). Charges and rates for water shall always be fair, reasonable and just and subject at all times to control and revision by the Village Council. (b). The Village.Council. shall have the right to revise such charges and rates, giving notice to the Company•of its intention'so to do, and the Company shall have the right of hear- ing before said Village Council. (c).. The Company shall have the right to petition the Village Council to revise its charges and rates from time to time. (d). Consumers, equal to 20 per cent in number. as determined by the records of the Company, may petition the Council for.revision of water rates and charges made by said company from time to time. (e). The -Company shall have the right at, any time within thirty (30) days after the order or resolution of the Village Council is made re- vising.and fixing rates and charges for water, to appeal to the District Court of Hennepin County, Minnesota, from the rates and charges so fixed by the Village Council and shall have the right to have such order and action of the Village Council reviewed by said Court. Section 13:, (a) . ** (b). That the water to be furnished by said Company shall always be -pure and,safe for human con- sumption and free from contamination.. r2 .. (c). That the Company shall furnish a proper test of water when requested by the Village Council or its health officer. (d). The quality of water furnished and the times and method of testing the same shall at all times be subject to the regulation of the Village .Health Department and the Minnesota State Board of Health. (e). In the event the Village shall acquire the sewer system now operated by said Company and any addi- tions thereto,•by condemnation, purchase, abandon- ment or otherwise, the Company agrees to furnish all water needed or required for flushing sewers at a rate to be agreed upon between the Village Council and the Company, except as may be other- wise provided for. V. Pursuant to the rights and privileges granted Peti= tioner by said franchise, the Petitioner has for a period of over twenty (20) years sold water to the residents of said Village, and for eight (8). years preceding the commencement of this action Petitioner has sold and now is selling water for domestic.use and exclusive of fire protection charges to approximately nine hundred (900) residents of said Village upon the following basis: A minimum charge of'One Dollar ($1.00) per meter per quarter year, which min:,mum applies against the charge of 17.1 cents per 100 cubic Sleet, sub- ject to a discount of Ten per cent for payment within ten (10) days after billing, or a net charge of 15.39 cents per 100 c4bic feet. That said charge and rate now in effect is less than a rate which would be fair, just'and reasonable insofar as the Peti- tioner is concerned. That on the 26th day of February, 1945, there was delivered to the Petitioner, a notice of a resolution and order of the Village Council of the Village of Edina, a copy of which resolution and order is hereto attached, marked Exhibit "A", and.made a part hereof. -3- VI. The rate schedule set out in the resolution and order of said Village is unfair, unreasonable and unjust, is con- teary to and inconsistent with the provisions of said fran- chise, in violation of .the rights of the Petitioner under said franchise, and insofar as it seeks to make.any change. retroactive is unjust, unfair and unreasonable to Petitioner and contrary to law. VII. This action is brought under the terms and provisions of said franchise and is an appeal from the resolution and order aforesaid and from the rates and charge's .there,in fixed by said Village Council of the Village of Edina. WHEREFORE, petitioner prays an order of this Court to review the action of the said Village Council aforesaid and to determine that the charges and rates therein sought to be fixed are in such revision unfair, unreasonable and unjust in all respects and contrary to law insofar'as such order and resolution seeks to make.the same retroactive. Attorney for Petitioner 1460 N.W. Bank Building Minneapolis. 2, Minnesota Dated this day of March, 1945. -4- STATE OF MINNESOTA ) ) SS COUNTY OF HENtIEFIN ) OSCAR GAARDEN.; being first duly sworn, upon oath, says he is the president of Country Club District Ser- vice Company, corporation named in the foregoing petition; that he has read said petition and knows the contents thereof; that the averments therein are true of his own knowledge except such as are therein stated,on iriforma tion and belief and as to,those he believes them to be true to the best of his knowledge, information and .belief. Subscribed end sworn " o before me this day of blarch, 1945. .:-y STINCH FIELD, MACKALL, CROUNSE & MOO FREDERICK H. STINCHFIELD HENRY C.MACKALL ROBERT M.CROUNSE PERRY R.MOORE THOMAS P. HELMEY LESLIE L. ANDERSON DONALD A. HOLMES M. DANA NICHOLSON JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN Council for the Village of Edina Edina, Minnesota Attention: Mr. Bower Hawthorne, Clerk Gentlemen: ELE' FIRST NATION MINNEAPOLIS 2 March 17 1 9 4 5 Re: Village of Edina vs. C. 'C. D. S. C. You will recall that the writer mentioned to the Council a few weeks ago the desirability of an agreement respecting compensation for services of this firm in respect to the two controversies now pending with the Country Club District Service Company. Accordingly, we propose that we defend the interests of the Village in such matters on the following basis: Sixty -five Dollars (65.00) per day (7 -hour day per man) for all work and services rendered prior to and exclusive of court appearances. One Hundred Dollars ($100.00) per day, or major fraction thereof, in court, either upon trial or necessary court appearances in proceedings preliminary to trial, if any. It is understood that the above proposal em- braces services only and excludes disbursements of money as may be necessary and /or authorized, and excludes, as well, the payment of employment of expert witnesses if any be needed. The above proposal follows the general out- line of the basis of employment for the conduct of the past proceeding which terminated in the Supreme Court decision. . .. STINCHFIELD, MACKALL,CRO,UNSE & MOORE Council for the Village of Edina Page Two March 17 1 9 4 5 This will be found in our letter to your Council of April 14, 1939. The above proposal, however, Varies from the 1939 proposal with respect to the "out of court" work because, principally,of the general increase in expenses since six years ago. For your information, the Village Council on April 24, 1939, passed an ordinance which amended the By -Laws of the Village so as to empower the Council. -to "employ other or special counsel to prosecute or defend actions -or proceed- ings at law in'which the Village may be interested -" The Council having the power in its By -Laws, it would seem that an agreement of this nature could be con- summated by resolution. The writer, however, is not fully acquainted with your ordinary procedure; and if Karl Covell advises a different method of handling it, we shall be happy to accord with his views. We also enclose statement for services rendered during 1944 and to and including March 16, 1945. These are all matters occurring since the presentation of our last state- ment- time consumed was the equivalent of eleven and one - half days. We calculated this on the basis of $50.00 per day because of the fact that such was our last agreement and all previous statements were so computed. If your procedure still requires that a formal claim be made, would you please forward me a claim blank. Enclosure Yours very truly, ST IELD, MACKALL, CROUNSE & MOORE By STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL —SOO LINE BUILDING - MINNEAPOLIS r, k?.. Uarch 17 1 9 4 5 Council for a Village of Edina ! -Aina, Minnesota Attention: fir. dower Hawthorne, Clerk Gentlemen: 11e: village of Ed1*16L VSO C. co D. ". Co You will recall that the writer mentioned to the Council a fens weeks o3o the desirability of an agreement respecting cc itpensiation for services of tas firm in respect to the two controversies now pending with the Country Club District Service: Company. Accordingly, we propoee that we defend the interests of the Village in such matters can the following, basis: Sixty-five hollers ('S5.00j per day (7 -hour day per man) for all work and services ronderad prior to and exclusive- of court appearances. One Hundred dollars ($100.4 0) per day, or major fraction thereof, in court, oither upon trial or necessary court appearances in proceedings preliminary to trial, if any. It is understood that the above proposal em- braces services only and excludes disbursements of money as may be necessary and /or authorised, and excludes, as Well, the payment of employment of expert witnedses if any be needed. The above proposal follows they general out - line of the basis of employment for the conduct of the past proceeding which terminated in.the Fupreme Court decision. STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL-900 LINE BUILDING MINNEAPOLIS Council for the V111age*of Edina March 17 Page Two 1 9 4 5 Thi s, w►i ll be found in our letter to your Council of April 141, 1938. The above proposal, however, varies., from the 1939 proposal with respect to the "out of court" work because, principally, of the general increaw-in expenses since six years ago. For your information, the Village Council on April 24, 1939, passed an ordinance which amended the By -Laws of the Village so as to empower the Council to "employ other ,or special counsel to prosecute or defend actions or proceed - ings -at law in which the Village may be interested." . The Council having the power in its By- Laws, it would seem that an agreement of this nature could be con- summated by resolution. The writer, however, is not fully acquainted with your ordinary procedure, and if Karl Covell advises a different method of handling it, we shall be happy to accord with his views. We also enclose statement for services rendered during 1944 and to and Including -M &rch 16, , 1945. These are all matters occurring since the presentation of ob last state - ment. The time consumed was the equivalent of eleven-and one - half days. We calculated this on the basis of $50.00 per day because of the fact that such was our last agreement and all previous statements were`so computed -. If your procedure still requires that a formal claim be made,, would you please forward me a claim blank. Yours . very truly, STIHC ELD, B. Enclosure cc Mr. Lee Todd Mr. Karl Covell _34. Harold Utley MACKALL, CHOUNSE' & M00RE Wq'VI STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL —SOO LINE BUILDING MINNEAPOLIS Council for the Village of Edina. 1 diva, ?"ir_geGota Attention: -Mr. Bower Rawthorne, Clerk Gentlemen: Re: V March, 17 1 0 4 5 . V • Co L. r. C You will recall that the writer mentioned to the Council .a few weeks at3o the desirabil ty of as agreement respecting compensation for services of this firm in respect to the two controversies now pending with the Country Club District Service Company. Accordingly, are propose that we defend the Interests of t:ie Village in such matters can the following basis: Sixty -five Dollars 0,65.00) per day (7 -hour day per man) for all work and services rendered prior to and exclusive of court appeararices. One Hundred Dollars ($100.60) per day, or major fraction thereof, in court, dither upon trial or necessary court appearances In proceedings preliminary to trial, if ahy. It is understood that the 'above proposal em- braces services only and excludes disbursements of coney as may be necessary and /or authorized, and eXcludes, as well, the payment of employment of expert witnesses if any be needed. The above proposal follows the general out- line of the basis of employment for the conduct of the past proceeding *lhieh terminated in the Pupreme Court decision. STINCHFIELD, MACKALL. CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS Council for the Village of.Edina March 17 Page Two 1 9 4 5 This will be found in our letter to your. Council of April l4, 1939. The above proposal, however, varies from the 1939 proposal with respect to the "out of court's work because, principally, of the general increase in expenses since six years ago. For your information, the Village Council on April 24, 1939, passed an ordinance which amended the By -Law$ of the Tillage so as to empower the Council to "employ other or special counsel .to, prosecute or defend actions or proceed - ings at lair in .which the - Village way be interested." The Council fading the poorer in its By -Laws, it would seem that an agreement of' this nature. could be con - summated by- ;resolution. The -writer,_ hoviever, is not fully acquainted with'your'ordinary procedure'.--and if Karl Covell Advises a different method of handling . it, -we shall be happy to accord with his views :. e gao.. enclose statement- for - sereic`es rendered during '1944 acid .to arid. includin -g' tlsroh 16, 1945. These are all matters occurring- since the presentation of our last state- ment. The time consumed was. the .equivalent of; eleven and one - half days. Vie_ calculated. this- on -the basis..: of $50:00 per day because • of . the fact that such was our' 1a.s 'agreement - end .a11 -previous sta;tements.- were., so computed. If 'your-- procedure still requires that a= formal clait be made, `,would you please forward me -s claim blank. Yours very truly, ,,TI IELD, NACKALL, CROUNSE & MOOPa By Enclosure 4. cc . r., Lee Todd Mr. Karl Covell Mr.. Harold Utley PERRY R. MOORE ATTNY 120 NAT. SOO LINE BLDG. MPLS. EXTREMELY -SORRY TO FAIL, YOU AGAIN- TODAY. MUST HAVE ONE MORE. WEEK. NOW IN POSITION TO CONCENTRATE ,ON YOUR PROBLEM AND WILL. SEE YOU ON TWENTIETu KARL C SCHMIDT. e Mr. Utley: This wire came ?n this morning..-Mr.. Moore is out of town but will be in the office either March 14th or 15th. Joyce Voeks C 0 P Y f Charge to the account of $ CLASS OF SERVICE DESIRED DOMESTIC CABLE CHECK 1206 TELEGRAM ORDINARY ' DAY URGE URGE RATE ACCOUNTING INFORMATION SERIAL DEFERRED, > NIGHT LETTER NIGHT LETTER N • should c�cek class or si TIME FILED desired; ah..Id se nc. mesogc vri;7. d,v, ; ' transmiucd asa telegram or _ _ A. N. WILLIAMS - ordinary eablegnm. PRESIDENT Send the following telegram, subject to the terms on back hereof, which are hereby agreed to FOR VICTORY BUY Chicago, Illinois - 1944 ]!!larch 13 WAR BONDS TODAY -. 9:14 A.M. PERRY R. MOORE ATTNY 120 NAT. SOO LINE BLDG. MPLS. EXTREMELY -SORRY TO FAIL, YOU AGAIN- TODAY. MUST HAVE ONE MORE. WEEK. NOW IN POSITION TO CONCENTRATE ,ON YOUR PROBLEM AND WILL. SEE YOU ON TWENTIETu KARL C SCHMIDT. e Mr. Utley: This wire came ?n this morning..-Mr.. Moore is out of town but will be in the office either March 14th or 15th. Joyce Voeks I� T< ALL MESSAGES TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS: To guard agalnit mJstake3 Or delays, oho sender of a massage ehogld order It repeated that Is, telegraphed back to the nrlglnmting office for compparison. For this, one -half the unrepeated message rat a is charged 1n addition. Unless otle so Indicated on Its face, this {s an unropeated messago and paid for as such, in consideration whereof it is agreed between the sender of the message and ills Company as follows: 1. The Company shall not be liable for mistakes or delays In the transmfeslan or delivery, m for non -dcllvery, of any message received for transmission at the unropeated- message rate beyond the sum of five hundred dollars: nor for mistalres or delays In the transmission or dellvrry, or for unn- delivery of any message rerelved for transmission at the repeated - messagc rate beyond the sum of live thousand dollars, unless specially valued; Ror In any case for delays arising from unayoldable interruption In the working of Its lines. 2. Iu any event the Company shall not be liable inr damages for mistnkes.or delays in the trllnsmisslon or delivery, or for the non-deilvery, of any mesonge, whether caused by ire grgligrnrO of lea servants or otherwise, beyond the actual Ims not oxerr-ding In any event tae sum of live thousand dollars, at n htch amount the sender of earh message reprrsruty that the menage is valued. tuilcr9 a greater value Is stated iv writing by the sender thereof at the time the message is tendered for transmission, and unless Iho repeated- mtssngo rate Is paid or agreed to be paid, and an additional charge equal to one -tenth of one per cent of the amount by which such v7111ntlon shall'e�zoeed live thousand dollars. . 3.. The Company is hereby mado the agent of the sender, without liability, to forward this message over the lines of any other Company when necessary to reach its destination. 4. Except as otherwisn indicated In connection with the listing or individual places in the filed tariffs of the Company, tho amount paid for the transmission of n domestic telegram or an Incoming cable or radio mmv Sgo eovrrs Its delivery wit hln the following limits: In elites or towns of 5,000 or more inhabitants where the Company ban an office which, as shown by the fled Iariffa of the C'ompan Y. Is not operated through the ageocy of a railroad company. wit hi two miles of any open ma In or branch odlee of the Company; in cities or towns of 5,000 or more inhabitants where, ay shown by the filed tarlas of the Company, the telegraph service Is performed through the agency of a railroad company, within One mile of the telegraph Office: In rlt les or WWrin of less than 5,000 inhabitants In wbirh an office of the Company Is located, within one-half m le of the telegraph office. Beyond the Ittaits above specified the Company down not undertake to make delivery, but wlll.endeavor to arrango for delivery as the. agent of the sender, with the understanding that the sender authorizes the collection of any additional rhnree from the nddressee and agrees to y such additional charge I f It Is not collected from the addressee. There will be no additional charge for deliveries rondo by telephoap within w ' the curporato limits of any city or ton Pa which an'ofHce of the Company M located. 5. No re3ndnslbility attaches to this Company eoncorning messages untiftbe same are accepted at one of its transmitting offlcrs; and if a message 1s sent 1:o such ntilrc by one of the Company's messengers, he acts for that purpose as Wle agent of the sender. 6. The Company willnntbellable for damages or statutory penaltleein the _raacof any massage except an Intrastate mesa. ^,o In Texas wherr the claim Is not presented in writing to the Company nithln sixty day's after the message Is filed with I.he lompany for transrfiicsfon, and In the ease of an intrastate message to Texas the COmparly' will act fie liable for damages or statutory pens ltira where the claim is not presented In writing to the Company within ninety-five days after the cause of action, It any, shall have accrued; provided, however, thatneither Of theso con- lions shall apply to claims for damages or overcharges within the purview of 8ectlon 415 of the Communications Act of 1334. 7. It is agreed that in any action by the Company to recover the tolls for any message or messages the prompt and correct transmission and delivery thereof shall be prraumed, subject to rebuttal by cornpet.eat evidence. _ ,- 6. Special terms governing the transmission of mcssages according to their classes, as enumerated below, shall apply to metmagce to each of Duch reapectivo elaaaca In addition to all the foregoing terms. 0. No employee of the Company to authorlced to vary, the foregoing. 1(F1: CLASSES OF SERVICE ®OM €STIC SERVICES TELEGRAMS A full -rate rxpeditod service. DAY LETTERS ' A deferred service at lower than the standard telegram rateyi. SERIALS Tlessages sent in section during the sama Any. NIGHT LETTERS Accepted tip to 2 A.M, for delivery net earlier than the fnlloarina'mnrniox it mica F,Ibst:mtfully lower Ihnn the standard telegram or day lerter ­t- CABLE SERVICES ORDINARIES The standard service, at full rates. Code messages, consisting of 5- I6tter groups only, at a lower rate. ` DEFERREDS Plain- languago messages, subject to being deferred in favor of full -rate messages. NIGHT LETTERS 0verni„rht plain- languago messages. . URGENT! Dlecsnges taking precedence over all other mr53,1j;" except government messages. c Charge to the account of $ CLASS OF SERVICE DESIRED ' 1206 CHECK D2MEST1111 I CABLE TELEGRAM ORDINARY DAYLETTER EN T RATE ACCOUNTING INFORMATION SERIAL DEFERRED - - NIGHT LETTER NIGHT LETTER rtrens shoved .•.heck class of se Abe TIME FILED dai: cd; otherwise the me., —ago will - - transmiucd asa telegram or ordinary cablegram. A. N. WILLIAMS t PRESIDENT - Send the following telegram, subject to the terms on back-hereof, which are hereby agreed to FOR VICTORY C 0'P Y JANUARY 29, 1944 BUY — — — — 10 r44 A.M. WAR BONDS TODAY CA 490 31 - LAGRANGE ILL. PERRY R MOORE ATTY 1ST NAT. SOU LINE BLDG. MPLS. HOPE'TO COMPLETE EDINA REPORT BY NEXT WEEKEND. TIME HAS BEEN BADLY'CROWDED SINCE MY RETURN AND HAVE NOT HAD OPPORTUNITY TO WORK ON THIS AS STEADILY AS I HOPED. K' C SCHMIDT . ALL MESSAGES TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS: To guard against mistakes or delaya, rho sender of n massage should order IL reppeated that Is, telegraphed back to the originating otHco for compartson. For'thls, ono-haif the unrepcated mc-age rate is charged In cUdltfon. Unles o�herwise Sndtested on Its 1acd, this is an imrepeated message and paid for as such, to consideration wheroof It is hgreed between the sender of the message and thus Company as follows! 1. Tho Company shall net be liable for mistakes or delaya to the transmission or delivery, or tar non-dotiery. or any message received for transm lssion at the unrepcated - message rate heynnd the sum of 0ve hundred dollars: nor for mistakes or delays In the tranamisston or drllvrryt or far non- deliery, of any message received for transmL�Ion at the repeated - dlessage rate bi.yond the sum of Live thousand dollars, unless specially valued; nor in any case fnr delay's arising from unavoidable interruption in the working of ita lines. 2. In any event the Coptpany shall not be liable for damages for mistakes or delaya In the transmission or delivery, or for the non - delivery, of any message, wbeth -r caused by the negligence of ifs eervnnis or othcrwLe beyond the actual loss, not exceeding in any event the sum of live thousand dollars, at which amount the. seudcr of earh message repreNents that the me�a.gc is valued, unle,, s a greater value Is stated in wrlting by the sender thereof at the time the message is tendered for transmission, and unless the repeated- maasago rate is paid or agreed to be paid, and an additional charge equal to ono - tenth of one per cent of tho amount by which such valuation shall exceed five thousand dollars. 3. The Compnny 13 hereby made the agent of the sender, without liability, to forward this messagli over the lines of tmy.otber company when necessary to reach its destination. 4. Lxcept ne nth erwisc indleat6d in connection with the IIstlrr, of ind ividuat places in the flied te.rtas of the Company, the ama-int paid for the tranamission of a domestle telegram or n incoming cable or radio nice: agn covers Its delivery within the follo,dng llmirs: In cities or towns of 5,000 or more inhabitants where the Company has an office which, as shown by the filed tariffs of the Company, is not operated through the agency of a railroad company, withln two miles of any open main or branch office of the C npany; in titles or towns of 5,000 or more in.babltnnts where, as shown by,tbe. pled tariffs oI the Company, the telegraph service Is performed through the agency of a railroad company. �Itbin one mile of the telegrapph office: in cif irs or towns of Ices than 5,000 Inhabitants in which an office of the Company is located, within one -half mile of the telegraph office. Beyond the limits above specified the Com an dnes not undertaize to make delivery, but will endeavor to arrange for delivery as the agent. of the Bender, with the understanding that the sender authorizes the collection of any addIT.m y l charge from the addressee and agrees to Fay such additional charge 1 f I Is not collected from the addressee. There will be no additional charge for deliveries made by telephone within the corporate ilmila of any dity or town 1a which an oalce of the Company is located. 6. No responsibility attaches to this Company enneerding messnees until the same are accepted at one of Its transmitting offices; and if a message Is sent to such office by one of the Company-'s messengers, he acla for that purpose as the agent or the sender. 6. The Company will not be liable for damages orstatutory penalties in the case of any message except an Intrastate message in Texas where the claim is not presented in writing to the Compan•r withtu t Ixty days after the message is -filed with the Compnng for transmission, and in the case of an intrastate message in Texas the Company will not be liable for damages or statutory p(maltics where the claim is not presented in writing to the Company within ninety -five days after the cause of action, l f any, shall haveaccrucd: provided. however, that ucit her of these conditions shall apply to claims for damages or overcharges within the purview of Section 415 of the Communications Act of 1024. 7. It is agreed that in any action by the Company to recover the tolls for any message or messages the prompt and correct transmission and delivery thereof shall be presumed, subject to rebuttal by competent evidence. R. Special terms governing the transmission of menages according to their glasses, as enumerated below, shall apply to moalages in each of sucb resp6ative classes In addition to all the foregoing terms. B. No employee of the Company la'authorized to vary the foregoing. _ 10=12 CLAtSES OF SERVICE DOMESTIC SERVICES TELEGRAMS A full -rate expedited service. DAY LETTERS A deferred service at lower than the standard tclogramrates. SERIALS Tessages sent In sections during the sari- Any. NIGHT LETTERS `Arcepted lip to 2 A.M. for delivery not earller than tbe,following mernl ne at rat'? lalh:;tantially lower tban the etandord telf-. nm or tiny decree rata:. CABLE SERVICES ORDINARIES The standard service. at full rates. Code messages, consisting of 5- lottor groups only, at a lower rate. DEFERREDS Plain- languago messages, subject to bciog deferred In favor of full -rate mPs§ngrs. NIGHT LETTERS �T Overnight plain- languago messages. URGENTS McE_ ages taking precedence over all othrr, mrasat'rn r�Mpt roc. ernmenl mr?PBCPA. STINCHFIEILD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING. MINNEAPOLIS' February 29, 1944, Mr. Utley: Today I finally got Mr. Schmidt and he ad- vised me that he had been altogether preoccupied in con- nection with a large housing program for the State of Il- linois. He said that he had somem three,or four days in which he would sandwich in the report, and I could definite- ly plan on havin-T the report a'week from Monday - March 13th. Perry R. Moore STINCHFIELD, MACKALL,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C. MACKALL ROBERT M.CROUNSE PERRY R. MOORE THOMAS P. HELMEY LESLIE L.ANDERSON DONALD A.HOLMES M. DANA NICHOLSON JOHN M. PALMER FLO`�D E. NELSON EDWIN P. CHAPMAN i ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 January 31 1 9 4 6 DE Mr. Harold Utley, Chairman ERNST E;��ST Utility Committee MINNHAPOL13 Trustee of Village of Edina _ _ _ ^ _ - -. FEB 1- 1946 First National -Soo Line Bldg. C �_� &_�_� Minneapolis, Minnesota Iw. S.________-_-TAX- 4 S. H. L._- ____.CASH.�_._� STENO Dear Harold: Re: Country Club Service •Corporation This is just to advise you that yesterday, January 30, and at PIIr. Schmidt's request, I telephoned Mr. Thompson to contact Mr. Hagestad, River Falls, Wis- consin, determine if he were willing to serve and also further communicate with Mr. Schmidt concerning a meet- ing of the committee during the first week in February: Mr. Thompson said he was free to meet during that week. As the matter now stands, the procedure of meetings, etc. is more or less in the hands of the committee. I am forwarding a copy of this letter to each of Messrs. Thompson, Schmidt and Vennum. Yours very truly, STINCHFIELD, MACI {.ALL, CROUNSE & MOORE By 4< PRIVI : deg CC: Mr. Thompson, Mr. Schmidt Mr. Vennum EU if HED COUNTRY CLUB DISTRICT SERVICE CO. R ERlST "'t 4611 Wooddale Avenue MINNEAPOLIS, MINNESOTA MAR 8 1946 WALNUT 9617 H. C. 1-1. ---------- STENO. 110r0h 7,, Ida mr-O mwo34 Ca . Vtlbyo 1pta NO* Soo_I,ine, Slag* lum"T9116 R� mi'm Vakk gre lutle" I V" at your efficd to -call an today in regard to a `letter I have Just received frca Br# T1ha mpson of our Valuation Cgmittee, As. I did not find yon: In Ins . ancaosing herendth a cW Hof the letter from Ur,. Thamp®on ` It is sou espl mtwe Very truly �ou�io< FORM 115 -[ -4142. - F . COPY. JAR March 5, I1 Ws- - -- - Mrs Oscar gaaraemsa 14611 Wooddal a we: e Minneapolis, Minas Dear Mrs GAUrd"I Jest to keep you, informed as to the activities of the proposed TalwatiaR COMMIttees you are advised that I have writtea to Mrs Schmidt wider date of January 3D9 and epia.undsr date of labrnsry 20 relative to a meeting of the Committees It was originally soggosted by Mrs Schmidt that we hold a meeting the west of 3pebru"7 Its However, this date apparently fell through and I have so far received no response to my letters to Mrs Scheidt• I have no inclination to push the matter, unless you are desirous of doing sos 9=ept that after the first of April I will have very little time to devote to the matter until the first of jmes Tory sincerely Tows, (signed) Leona]. No ThcmrpsQR PHONE CENTRAL 2458 4a4d nfaweunf 'anl� Caa4adiwtl U1a#WWU 225 /NORTH MICHIGAN AVENUE CHICAGO 1; ILLINOIS LFC��� March, 8, 1946 ERASE i 3T `w16Vn[�APOLI� MAR1.1.1946 J. W. S ---------- --- TAX__- Mr. Harold Utley;,' S. H. �.---------- .c�sH._- 1200 is t National Soo Line, Bldg'.', K•-- STENO---- .� Minneapoli=s; Minn. Dear Mr., Utley. : - . • • . ' i Perry Moore earlled me this afternoon, regard- _ ing progress' on the Village of Edina appraisal. Since reaching agreement the latter part of January on Mr. Hagestad of River Falls, as the third appraiser, Mr. Thompson and the writer have both been out of town a great deal, and it has been difficult to get together on a date. I have just madd an appointment by telephone with both Mr. Thompson and Mr. Hagestad to meet them in St. Paul on Monday, March 18th, at 9:30 A.M. I will contact you while in the Twin Cities, and report on progress made. I appreciate that the Village Council are anxious to. complete this appraisal and I am sure the Appraisal Board will be anxious to expedite a conclusion, once we get the work under way. You 5�tr kes -tlb 1C. Schmidt, cc Mr. Perry Moore, Mr. Leonard Thompson Mr. Herman Hagestad TOTAL ESTIMATXD- COST 19635.7 BEN WOEHLER CHECK MADE BY FIRE CHIEF PHIL BAILEY ESTIMATE . OF - FWAIRB RMBD ON . BDINAI =FIRE xY tAR S 10 - Hyrdanta with cap cha -ins missing - $1,00 46000 New Chains and instilling 17 - Hydrant-- with-improper wrench clearenc'e rrel extension & valve rod 30*00 510.00 d New operating nut 16000 3 Broken barrels Dig up. & electric weld 60.00. 180400 1 •-Broken barrels or defective drain Weld barrels or replace drain shut off.slides 60000 47 • Ferrules need tightening 1100 47000 2 • Lead in new Ferrules 2.00 4,00 23 o Operating Stem to repack 2,50 7000- 3 - Lower.valve,not holding Replace leather valve 1240 37.50 26 - Improper drain 20,00 520100 Dig to. bottom & fill with some crushed rock 1 - Ferrules driven too far 5.00 5.00 11 • Operates too hard. 4.55 50.00 Take off bonnet clean stem & operating nut 2 Hydrants won* t. c lose 2 new operating nuts 4.00 8100 95 Paint all hydrants 1025 118.25 Hydrants in Country Club are in very poor condition. TOTAL ESTIMATXD- COST 19635.7 BEN WOEHLER CHECK MADE BY FIRE CHIEF PHIL BAILEY 14 HYDRANTS MMIEG REPAIR APRIL, 1946 4517 Bruce 4506 6unnyside 4609 Moreland 4511 Edina Blvd. 4617 Rdina Blvd. 4623 Wooddale Corner of Wooddale & Bridge 4515 Drexel 4637 Casco 4619 Casco - -Out Completly 4531 Casco 4517 Casco 4901 Arden 4 531 Arden 4515 Arden TAKEN 'R RCH914t 1946 PHILIP BAIL FIRL CURF VILLAGE OF EDINA 4801 WEST FIFTIETH STREET EDINA, MINNESOTA 1dr. Phil Smith Village of Edina 4801 ,Iffest Fiftieth Street Edina, Minnesota Greetings, Phil Mr. Don Schwert, living at 4517 Casco, has - called my attention to the deplorable condition of hydrants on Casco Avenue._ The hydrant in front of his property has been out of commission for over a year. Repeated complaints to both Oscar Garden andmembers of the Council have been of no avail. Mr. Schwert calls-attention to the fact that there is no fire protection available, and that in the event of loss, someone_is going to be subject to severe damages. This is the matter that you discussed at a recent meeting, but I am calling it to your attention with a request from Mr: Schwert's neighbors that the responsible parties do something about it.' Sincerely, YOR APR 2 91946 Vr EDINA pie 7 � ` 10 w 4ydrants with egg Ch&ing tAiS `I 11.00 010100 140 Chains and Inistalling 17 - Ilydrunts with, lr,3 irnf er wrenoh o%ee`° et morel- tert !10n valve rode -» 4 Z,30*0C 4 - raw of er- tl ; nut 3 -. M"ken barrels stI .s00 � �.60,`C0 6 4 electric wold I - Broken ,rrelo or defmtIve c1raln veld barrels or 'reel drain. ah afr e114ev 47;- vtrruie6 need tighteniM 10 00 x.47 *00 2 - 'Egad In view Ye ales MOO ;`400 ss fj z. ` Going A to ry nok - 14wer valve not b-qldi neple'oe leather vVe 20 dais 62?* DIE, to bottan ;', fill with some or usbed rock I rer'als driven tot - 1 ...00 T e off Hemet a la%,n a tee:-, L :�� ',4ti� � ��t 'O - faint all hydrants Hydrp-nta in Omuntry C lab are In Seery poor cormUtion, TOTAL MO. 9: 75 i Copies to Schmitt, Hagestad & Thompson - April 15, 1946• TAN MARCH9 1491946 -Philig Bailey _ Fire Chief MRANTS NEMING REPAIR APRIL, 9 1946 4,517 Bruce 4506 SummYside 4609 Moreland 4511 Sdina, Blvdp 4617 Edina Blvd. 4623 Wooddale Corner of Woodda'le & Bridge 4615' Drexel 4637 Casco 4619 Casco - -Out Completly 4531 Casco 4517 Casco 4901 Arden 4531 .Arden 4515 Arden, TAN MARCH9 1491946 -Philig Bailey _ Fire Chief Hon. J. A. A. Burnquiat, Attorney General& State State Capitol+ Sts Paulo uinnesota. Dear Sirz May 14th, 1946. of 11isaie seta, 8E s VILUGE OP EDM The Village Council of the Village of Edina has in- struoted me to submit to you the following facts and procure from you, if possible, an opinion specifying a plan by which the Village may legally accomplish the result which they desire and which is stated below. The facts are as followas The present water works system is owned by a private company* it extends south to a point approximately at 64th Street and France Avenue South, About a half mile south of this point-an owner of about sixty vacant lots has requested the Installation of water mains by the Village.to some, these sixty Iota and for the construction of a mein from them at the oorner of 67th Street and France Avenue to.the point desorib- ed above at 54th Street and France Avenue* prooeedinge were instituted by the Village under Chapter 425, Lave of 1921, in Minnesoto Statute$& 1941, Seatione 452911 to 432.24. The notice of hearing prescribed by Stotion 482.13 has been published and which speoified the proposal for in- stallation of mains among the sixty lots at 67th Street and also the proposed ooiastructivn of a main' along France Avenue from 64th Street to 67th Street. It is intended by the Council that the project would., be finanoed by special assessments as provided in_the not. Owners of property abutting on the main from 64th to 57th Street objected to be- ing assessed for this purpose as they do not want water service at this time. The proposed main from 64th to 57th Street will be an eight inch main, large enough to carry water for other territories to the South. Its #8 Hon• J. A. Aw Hurnquist• cost will be somewhere in the neighborhood of $100,00040. The Council infomad the real estate developer who owns the sixty lots that they would hot assess benefits against lots other than those in the terri- tory where. he a9me the, sixty lots +end which are to receive inmadiste water service. Iin other words, the Council would not at this time assess the France Avenue main from 66th to 67th Street against any a- butting propel* It was. Chen proposed that the Village give to this real ,estate developer a franchise to install it at his own expense and to own the main on France Avenue from 54th to 57th Street, with an option by the Village to repurehaee the same from him, at cost with proper adjust- ments, and also perhaps to Bay him installmente in case the Village eons struoted other*mains in other territories which would be served by water which floured through this Franoe Avenue main. The oounail- insists that any arrangement which, they make with the real estate developer, as outlined above for this masin, must contemplate the follcmingr that if and when the Village repurchases the main pursuant to the option from the real estate developer, the costs of such purobase must be aseessed.ae special assessments against (a,) -those who are immediately served by it as abutting miners with water service on Prance Avenue between 54th and 57th Street, (b) those who, In other territories where service mains we subsequently installed,,are served with water which will flacon through this main on France Avenue between 54th and-57th Street, After Village water meL ins, In the statutes which described in the, last effect to the pillage opinion as to whether if no hour and by what KHC -J n o3mmination of the statutes concerning; the was unable to find Pvj authority now existing authorised the Village to accomplish the results - preceding paragraph and gave my opinion'to that Council. They now respectfully request your theme results may legally be a000mplished and authority Yours very tespeotPAlly, Village Attorney r \ , a &pril 19; .1946 Tiro Oscar. Gaarden Northern States Porjor Co. _ .15 South 5th Street MirureUpolis,q Minnesota , Dear Idro Gaardon: ° In compliance with your request -of yesterday,,. we Ore pleased to mail you certifted copy of Council's - -- motionr,a.pproving your - proposed ivell site on W. 54th Street, 'betueen France and Halifax iivenuesa Your -s. ,very truly¢ VILIAGF OF EDT Mi. BY -Mlla--de- 11anager g8 EXCERPT "L+ROM MINUTES OF THU RE-GUI ,,Ct LI.ILETIII.OF THE EDIM VILL.'aLz COUIICIL, :TOLD IT3 VILL,M H,,LL _ "�T 8:00 P -Y- J"NU.,M 141 1946. "With regard to creation of Water Fain improvement District No. 3, approved earlier in the evening, Mr. Smith stated that the most important item at the _r present time was to be sure that Oscar Gaarden make arrangements to purchase property on 54th Street and proceed with drilling; a well. Utley moved that the council approve the proposed well site on the forth side of 54th Street between France and Halifax Avenues. notion seconded by Hawthorne and carried.,' Z, Bower Hawthorne, duly elected and qualified Clerk of the Village of Edina, do hereby certify that I have carefully compared the above excerpt and find that it is a true and correct copy of the I11inutes of the regular Meeting of the Village Council held January 14, 1946, insofar as they pertain to the well site. STINCH FIELD, MACKALL,CROLINSE & MOORE FREDERICK H. STINCHFIELD HENRY C.MACKALL ROBERT M. CROUNSE PERRY R.MOORE THOMAS P. HELM EY LESLIE L.ANDERSON DONALD A.HOLMES M. DANA NICHOLSON JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN Mr. H. C. Utley 1204 First National Soo Line Building Minneapolis, Minnesota Dear Harold: ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 November 5 1 9 4 6 Stanley Houck's death last week caused an unavoidable rearrangement in my trial program, which puts me in Sioux Falls on Vednesday, returning-late that night. Consequently, it will be impossible for me to meet with your special committee Wednesday night. I will, however, make myself available on either Thursday or Friday night for a similar meeting. I regret this situation very much, but it is entirely unavoidable. I will be back in Minneapolis on Thursday and Friday but will be in trial each of those days. I am assuming your meeting is in the evening. I tried today to reach Mr. Christopher, but was unable to reach him by telephone. 'ours very truly, V STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS Mr. T. L. Todd N. W. National Life Insurance Co. 430 Oak- Grove Minneapolis, Minnesota Dear Sir: 0 October 25 19 46 Re: Country' Club District -Sery c® Co. vs- Village -:of Edina In the action brought by the Country Club District Service Company to-recover.for hydrant rentals for the period from 1939 to 1945,"'-we interposed a demurrer - claiming that the complaint fails to state. a cause of action. Our demurrer was argued before Judge!Selover last week and we insisted at that-:time that the decision in the previous Supreme Court case involving hydrant'rentals for the years prior to 1039 is conclusive in favor of the. Village in the present action. The Judge has not ruled --upon our demurrer yet. During the course of the argument, `Mr. Vennum -indicated that he would move to. =amend his.complaint if the 'demurrer were sustained. In oppoaing - this motion to amend, we wish . to u -se an affidavit by ,'you in-the form herewith en- closed. The letter attached to -the` affidavit is an exact copy of the original which we have in our files. If the affidavit is:. satisf actor 0 will 'you - please sign and; acknowledge it before a notary, public.,-re- turning the original to us. -The-copy may be retained for your files. We should like to have this in our hands by Tuesday, October 29th.- STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING .MINNEAPOLIS Todd October 25 1 .9 4 6 2 - If there are any questions about this, please call the writer. Very truly yours, S INCHFIFLD, MACRALL, CROUNSE & MOORE Encl. By cc: -*"Mr. Harold C. Utley Mr. C. J. Christopher' tz STATE OF MINNESOTA COUNTY OF HENNEPIN Country Club District Service Company, a corp'orationp Plaintiffs Vs* Village of Edina:,, Defendant. STATE OF' MINNESOTA COMITY OF HENNEPIN DISTRICT COURT FOURTA juDiCIAL DISTRICT AFFIDAVIT OF T. Lo TODD OPPOSING PLAINTIFFt S MOTION TO AMEND ITS 00114PLAINT . T. L. TODD,, being'first-duly sworn, on Oaths, deposes and says that he was the President of th6 Village council of the Village of` Edina on the 6t1i4ay of September, ptember, 1944; that as such President he readived.wletter,on September 6, 1944.. from -the Country Club District Service Compan7"# dated September 6,4 1944,,.and signed bye Oscar Gaarden., President; and, that Attached hereto, marked Exhibii'Ap. and hereby made a part hereof, is a true and correct copy of said letter. Furthqr.aftlant sayeth'not,,. Gave that thi's, affidavit is made in oppos1t.1on t4 the, mot ion of the plaintiff to amend its complaint. herein..,' T L. 'Todd Subscribed and sworn to this .,day -of October, 1946 Notary Public, Hennepin County, Minn., My commission expires PF 4611 Wooddale- Avenue =� LA'i.,VOLIS, '91WILSOTA • aepte�Yber 5, 19:4 .Mr'. T. L..Todd, President SdIzia V111a6e Council 5404 mark Place Minneapolis.10s Minnesota Dear Mr. Todd: s I have a letter dated August 31, 1944s aiZned by Ur. .. C. Utley, chairman of tho Utilities Committee of they Edina Village Council* in 'whieh 'he states that the crater company proposal for fire protection - services is not acceptable. For many years the Company. has tried dillgently to collect for fire protes tion service; in the meantime ,diving this service in the hopes that retroactive' payment mould be. made.. Our proposal and lengthy computations.subm:.tted many times since 1935 showed that our proposals have been snore than reasonable.. We have proposed that rates would be lowered if net income shows more than ea fair return on Investment in a manner similar to that provided for in the franchise of the Minneapolis Gas Lir;ht ( Impany. The Company has sabmittod figures to show that studies made by the �kiscons�.n Public :,ervice Commission-allow fires protection charges far in excess of those submitted by the Company. All those. caloulations have been to no avail. Two privately owned mater systems at Crookston and Cass Lake, Xinnesotea, makes charges of ;*45.00 and :;60.00 respectively per hydrant per year. The Villages Council. has .taken no action' to indicate that they expect to ,pay earilthing for fire protection service,, even though we knave► extra pumping. capacity, . autozatie controls, extra - size water mains, hydrants, v&lvec, etc., designed specifically for this purpose.. Our franchise states that the Village shall pay for ;.ire protection service, but doers not definitely set the prioe. Indications seem to show 'that either the Council is not interested in having then Company furnish fire protection ser- vice; or, if they are, thoy do not wish tq. pay for it. In either case It seems 'useleena to continue further negotiations. The only solution to the problem seemd to be to limit the activities only to domestic service and diescontYnue all public fire protection .services. It is believed that the Village has no right to use crater from hydrants or trans other unmestereed sources without agree - ing to pay for the service.- Plans are being made to seal off fire hydrants. 'the Fires Underwriters Inspection Bureau informs us that when fire protection service is discontinued the fire insurance rates will increase from 57%. to 75% for the various types of reai- dential.buildings. Very truly yours, a/ (Oscar 4aarden) Omar warden ne�IIvia versa AiTant COUNTRY CLUB DISTRICT SERVICE CO. ' 4611 Wooddale Ave. MINNEAPOLIS, MINNESOTA WALT 3617 June 11, 1946 . Mr. H. Co Utley, c/o Ernst and Ernst, 1204 First National Soo Line Building, Minneapolis, Minnesota. Dear Mr. Utley: Following up our conversation of a week ago yesterday, I wrote to Mr. Leonard M. Thompson to find out the progress of the water system valuation report. I am enclosing a copy of his let- ter in answer to my letter. Very truly yours, Oscar Gaarden, President OG:bp A- ._ WATER DEPARTMENT City of St.Paul Tune 8, 1946 Mr. Oscar Gaarden, Country Club District Service Co. 4611 Wooddale Ave., Minneapolis, Minn. Dear Oscar: I was glad to receive the tabulation of bids on May 27th. While our computations have all been completed, I think this is splendid evi- dence that costs are still on the upgrade. I am very much disappointed that this report has not been placed in your hands long before this. We completed our work insofar as computations and agreement were concerned about the 18th of April. At that time we asked Mr. Schmidt to write up the results of our conclusions and then forward them to us for final check and review, following which they would be placed in -complete form ready for transmittal. I expected that this would be done some time ago but not having heard. from Mr. Schmidt I wrote to him on the 16th of May, mak- ing inquiry and received a letter on the 27th of May advising that the report should come along very shortly. Frankly, I do not know just what has been holding it up, unless, of course, he has had other work. I will try to keep you informed from here in as to what the status of the matter is. CCPY Very sincerely yours, /s/ Leonard N. Thompson Leonard N. Thompson General Manager. . — I Hv 2-49 1946 . Wr o Karl M. Sohmidt -4100 Grove Avenue y We ntern Springc4 llllo . ])ems rr fro ochmidt.s As a supplement to ,our. ,report of "Estimate of Repairs Needed _on rsdina. Fire' Hydrants "e as submitted to you on April 15b'we are enclosing- copy of report made by Ure Phil Bailey, Chief ,of. 'Volunteer F3rejIepartment, and vub- pitted by Yr.. Ben''Voehlee, -.superintendent' of Utilitiec for toe Village.P� This chart shoti a the loc ation of hydrants needznd attention and ,ir*ic ,te® whai repairs chou,*d be riade ,to put t_► ►rem In votki condltiono , Yo ur s ' very truly, 'tTI7, LAGP 0 P DDIITA BY Village bnager . I I' i i May 24, 11946 Mr. Ferry Moore � 1100 -First Natl. Soo Line Blddo Binneapolisp Binnesote, Dear girt Mr, H. C.. Utley* Chairman of Fubl u Utilities Coo itteeg requested that I snail you copy of, our report made by ZIa•a Phil Baileyp Chief of Volunteer •,ire Department, I and subniutod bar ro. Ben Woehlera Suneri:ntindent of Utilitieo for the Village. The atteohed chart choirs the location oft hydrants needing attention and indioatee what repo.ira should be mddo to peat them, its working condition. , Alco attached is SMM817 6hav ing estbn.ated cost of repairs need.edo yours very truly, o VILLAGE Or, EDINA BY Vi llWe Manager NIS. go • f .1 Ii RETURN RECEIPT Received from the Postmaster the Registered or Insured Article, the original number of which appears on the face of this Card. 1 � L l�Y.t.ViD .��� C!�.�2.%L�: � �.c1_------ •.Ya�L:,..,�,. - (Signature or name of addressee) ' � y ,. ,t >t 2 - -- -- - - - - -- - - -------- - - - - -• - -� =z -s_ =ti------------------------------- (Signature of addressee's agent, —Agent should enter addressee's name on line bNE above) -� Date of delivery ______ __ _.______�________ ______ 194 Y. 9 . GOVERNMENT PRINTING'OP /ICE 16 -12421 39nel ®ffieP Menartmettt PENALTY FOR PRIVATE USE TO AVOID PAYMENT OF POSTAGE, SSW Sheet and Number, or Pa.,, Office Box,} REGISTERED ARTICLE -" No. >- Posl 0�iee� -- INSURED PARCEL i i-_ Slate -- - - - - -- �t``'�EII'T FOIE . Declazetiealue, ���- ' From � - -/ ------- ------q-� -' -- ------------ --- r -- e - (e- ambers Addressed to'---- ------------- - - - - -= f.t,! _! November 13.., 1946 Mr, M. NichoUon ' 5tinchfield,, I ackall, 'Crounse fie, 1-16we 1100•First National,Soo Iine H1dee Hinneapolis 2* Minnesota Dear fir. Nicholson+ Re: Avoraisal Proceedings e Pleased "be.advised that the Notice and Resolution, regarding the purchase of, the -water system,.was mailed to the Country'Club Distriet,Service Company on November 9., 1946. The date appearing on the registered mailed receipt for,the Notice and Resolution sent to the Company is November 9,, 1946. Notice and Resolution was served upo,Oscar Caarden at_4611,wooddale Avenue,•on November 9, 1946, at 491+0 P.M. Return of Service, as signed by Hilding Dahl, Village Constable, before a-notary public, is here in;this offices. Yours very truly, TILLAGE CF EDINA BY' , Village Manager P'WSige � 0 1 11 STINCHFIELD, MACKALL,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C. MACKALL ROBERT M. CROUNSE PERRY R. MOORE THOMAS P. HELMEY LESLIE L. ANDERSON DONALD A. HOLMES M. DANA NICHOLSON JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 November 12 1 9 4 6 Mr. Phil Smith Edina Village Hall . 4801 West 50th Street Edina, Minnesota i Dear Mr. Smith: Re: Appralaal Proceedings Will you please write us advising the exact date on which the Notice and Resolution, regarding the purchase of the water system was mailed to the Country Club District Service Company and on what date the Notice and Resolution was served upon Oscar,Gaarden. Please also advise us of the date appearing on.the registered mailed receipt for the Notice and Resolut- ion sent to the Company. Very truly yours, STINCHFIELD, MACKALL, ICROUNSE & MOORE By i I I VILLAGE OF EDINA 4801 WEST FIFTIETH STREET • EDINA, MINNESOTA I', Hilding Dahl, Constable for the Village of .Edina, do hereby certify that on the 2 day of 4. -t), , 19460 atP.:M. I' served on Oscar Caarden of THE COUNTRY CLUB DISTRICT SERVICE COMPANY, at 4611 Wooddale Avenue, Minneapolis 10, Minnesota, copy of the attached letter dated November 8, 1946 and addressed to Country Club District Service Company and signed by Bower Hawthorne, Clerk of the Village of Edina; "Resolution of Edina Village Counoil Relating to Purchase of Water System of Cbu ntry Club Mi strict Service Company"', and "lxhibii_t Hi 1 di ng Dah 1, Vi age Cons table, Si geed and sworn to before me, a Notary Public for Hennepin County, Minnesota, this yZ`y of , 1946 h:, i__.ur: c:;p Gri• il, 1953 We hereby waive notice of special meeting of Council of.Village of Edina to be held on November 89 1946 in the Village Hall at 7:30 P.M., for the purpose of acting upon proposed resolutions respecting the purchase of the water system owned by the Country Club District Service Company. Village Clerk Village Trustee Dated this _day of 1946. 1 f We hereby waive notice of special meeting of Council 'of Village of Edina to be held on November S. 1946 in the V llage Nall'at 7:30 P.M.0 for the purpose of acting upon proposed resolutions respecting the purchase-of the water system owned by the Country Club District Seririce Company„ President of Edina Village C Village Clerk Village Trustee =' . Dated this day of '_,; 1916. We hemby mdve notice of special wing at _ Council of Village of Edinm, to be held on ftwember S.. 1946 In the MILage Na31 at 7 :30 PA.# for the purpose of acting upon Proceed resolutions respecting the purchase of the aver system cued by the Country Club District Service Cam:: President of Edina Village Cameff "U= clerk Village Trustee Vi7.?.e l Dated this daq of j 191+6. 1 e I VILLAGE OF EDINA 4801 West Fiftieth Street Edina, Minnesota November 8, 1946 Country Club District Service Company 4611 Wooddale Avenue Minneapolis, Minnesota Gentlemen: �J As you know, the Board of Appraisers filed with me on October 11, 1946, a report dated October 15, 1946, wherein the Appraisers have made valuations of the plant and property referred to in that report. A duplicate copy of this appraisal report was sent to you by the Appraisers. At a meeting held on November 8, 1946, the.Village Council of Edina adopted a resolution relating to the purchase of the plant and property referred to in that report. A copy of the resolution is sent to you herewith pursuant to the terms of the resolution. In accordance with the resolution, the Village of Edina hereby proffers to you the price of 066,412.32, plus the additional sums referred to in the resolution, under the terms stated in the resolution, and demands that you execute and deliver to the Village of Edina a proper deed of conveyance covering the plant and property of your company, used and use- ful, in connection with the water supply system installed in the Village of Edina under the water franchise, upon the payment or securing -of the total price so proffered by the Village. . It is requested,that .you advise the Village Council, in writing, whether or not,you accept this proffer. If you ac- cept the proffer, then the Village will proceed forthwith to make payment or secure payment of the total price proffered. Your attention is particularly directed to the second resolving clause of the resolution, and written notice is hereby given to you of the conclusions of the Village therein stated. The proceedings for the purchase of this plant and property by the Village have already been lore delayed and it is imperative that we now act promptly on the appraisal. Therefore, we must request that you have a written reply in the hands of the Village Council within twenty days from the date of this letter. If no written reply is received within twenty days, then the Village will conclude that you are not willing to go through with the sale under the terms of the franchise voluntarily and the Village will institute action against you to obtain con- veyance of the plant and property as outlined in the resolution. Very truly yours, Clerk of e village or na Trustee Utley offered the-following Resolution and moved its adoptions RESOLUTION OF EDINA VILLAGE COUNCIL RELATING TO PURCHASE OF WATER SYSTEM OF COUNTRY CLUB DISTRICT SERVICE COMPANY WHEREAS Section 9 of the water franchise issued to Country Club District Service Company by the Village of Edina provides that the Village may purchase the plant and prop- erty of the Country Club. District Service Company, used and use - ful, in connection with the water supply system installed in the Village of Edina under that franchise,. and WHEREAS said Section 9 provides for the determine tion of a price for said plant and property by appraisal in the event the parties are unable to agree upon a price, and WHEREAS a Board of Appraisers was appointed under said Section and that Board has made and filed on October 1I, 1946s with the Clerk of the Village an appraisal report dated, October 15, 1946, and I'MEREAS said-appraisal report has been fully con - sidered by this Council, and W1MEAS said appraisal report reads in part as follows: "The resolution of the Village Council and the notice to the Country Club District Service Co. initiating the appointment of these appraisers refers specifically to 'that part of the water system and plant, now used and useful., owned by and belonging. to The Country Club District Service Co., (See copy of notice.and •resolution attached.) "The .Board is cognizant of the fact that there is'a considerable difference of opinion between the principals to this proceeding as to an exact defi- nition of the property so owned, this difference being largely due to different interpretations placed on the recent Supreme Court opinion, by the Village officials and by the officers of the Country` Club District ,Service Co. "Because of this conflict in the definition of ownership, the data regarding.reproduction costs have been set forth separately, in such manner that a total fair value.of the used and useful portion of the water - works system, as appraised, can be readily determined by a proper combination of applicable figures given in. this report after, .the ownership has; been, defined. by competent authority. "Your board of appraisers has not attempted to interpret the recent decision of the Supreme Court of the State of Minnesota or to otherwise determine title -to any of the several portions of the water works system in the Village of Edina, or of the equi -. _ties of the two parties therein. V,1e believe our function, under the terms of the franchise, is only to determine the reproduction.cost of. the system, and that the disputes as to ownership-, equities, eta« should be determined by the principals themselves or by a court of competent jurisdiction. "Your board likewise expresses no opinion as to ownership of extensions of the distribution lines constructed and financed by Itontributions. in aid of- construotionf made by customers desiring water serv- ice since 1937, and which, as of December 31st, 1945, Is shown by company audits to amount to 1,?i4,776 #53." and VMPEA s said appraisers failed to make any . mention in said appraisal report of the "advances in aid of construction ", hereinafter referred to, and WHERBAS said appraisal report assigns a total valuation of }$150,914.66 to the items mentioned on page 9 of said report, and the Village is.not willing to accept IV150#914*66s or any larger suMp as a correct appraisal, or price .for purchase of said, plant and property, and UMMS the valuations assigned to the various individual items of the plant and property referred to in said appraisal report are acceptable to the Village Council and the Village Council has been advised by its attorneys and believes that said appraisal report and -franchise ohould be construed as permitting the Village to accept the valuations assigned to said various individual items so that those valuations can be used by the parties or a court to determine the proper price to be paid by the Village for the plant and property of the Country Club District Service Company,.used and useful, in connection with said water supply system, by combining the valuations assigned,to the various individual items of the plant and property referred to in said appraisal report which are owned.by said Company and by making appropriate deductions to be.determi.ned by the parties or a court for various items of said plant and property referred to in said appraisal report trhich are owned by the Village or by the residents of the Village and also by making equitable deductions, to be determined by the parties or a_court, for such sums as the Village claims were paid by the residents to the said Country Club District Servioe Company or Thorpe Bros. for certain parts of the plant and property referred to in said appraisal report and by making equitable deductiona, to be determined by the parties or a court, for such sums as were paid by the residents or contractors to the Country Club District Fservioe Company either as contributions- in aid. of construction of certain. items or as advances in aid of construction of certain items, suoh combinations and - deductions to be made in the same fashion as if the Village were proceeding to acquire title by eminent domain proceedings, and WHEREAS the Village wishes to reject said ap- praisal report unless said report and franchise are construed As aforesaid, and - 2 - r a, WIMREAS said Section 9 provides that In the avant the Village of Edina is dissatisfied with the. price fixed by the appraisal# the Village may, within thirty days after filing of the appraisal„ notify said Country Club District ,Service Company in wri4t3.ng and the Village shall thereafter not be obliged to accept said apprai,sal.or.purchase said plant and property and that otherwise said appraisal shalt be binding upon they Village; '40N , 2HEi1EF0RB,# BE IT RESOLVE) by the Council of the Village of. Rdi.na. that the Village of Edina should, and it hereby does* accept the valuations and prides assigned to the various individual items of the plant and property rem ferred to,in -said appraisal report if said appraisal report and the franchise be construed as permitting the Village to accept the valuations assigned to the various individual items referred to In said report and to have said valuations com" blued and to have-deductions made therefrom as previously mentioned and to thus determine-the price to be paid under said franchise for the plant and property of the Country Club District Service Company, used and useful* in connection with the water supply system instal led in the Village of Edim under said water franchise. RE11OLVED - FURTHER that if the appraisal report and the franchise cannot be construed as set forth in the preoed- ing paragraph of this resolution, then the Village should, and it hereby doss, notify the 'Country Club District Service Company in vwlting that the Village is dissatisfied with the price fixed by the appraisal, that the 'Village rejects said appraisal* and that . the Village skull not, under wuch circumstances, be obligated to accept said appraisal or purchase said plant and property of the Company, RE111OLV Z FURTHM, that the Village of Edina should, and it hereby doss, offer.to pay the Country Club District "'ervice Company for the plant and property of the Country Club District Service Company.'used and useful, in connection with the.water supply- system installed in the Village of Edina, under said franchise, the price properly determinable under said appraisal report, that Is, the sum of X66,41 .32, plus an additional sum equal to said . Company l s "book costs for any extensions made subsequent to March 1, 1946, other than for the Oak Drive extension which vas contracted in 1945 and is Included In" the valuation, and also plus an additional sum equal to the fair and reasonable value of "any small tools and equipment and any water meters In stock ", which items were omitted from the appraisal, and the fain and reasonable value of any real estate, vells,.buildings and pumping equipment ae- quired since March 1, 1946, and` used as a part of said.ester supply system. Said sum of 466,412.32 is determined as followst Total valuation of all the plant and property referred to in said appraisal report, per page 9- of appraisal, report $150 #914966 Minus the following items: i* Valuation of the original distribu- tion system installed in 1923, 1924, 1926 and 1928, per page 9 549902.28 2, Valuation of the real estate, per page.9 30200.00 3. Valuation of the tank and tower: installed in 1923# per page 9 .4,40a *53 4o "Contributions in aid of eon- struction ", referred to on page 5 14,776.53 56 Balance payable upon "advances in aid of construction" per Company's books on December 31, 1945 7,22000 Leaving the aforesaid price of $ 04,502.34 084 *502.34 X66,412.32 Said offer is made on the.understanding - that the aforesaid plant and property of the Company shall be conveyed to the Village of Edina by the Country Club District Service Company, free and clear of any liens, claims or eneumbrances, other than the claims of re- sidents of the Village to ownership of all or any part thereof* but upon the understanding that the Village shall assume and agree to pay any balances payable to the persons who made the aforesaid advances in aid of construction which shoved a balance of yp7,220.00 at the close of 1945. Suitable adjustments to the total sum offered will be made for any contributions in aid of conatruc- tion received or refunded by the Company since December 31# 1945, and for . any payments made by the Company in reduction of said balance of 07 #220.00, up to the time of purchase, and also suitable adjustments will be made for any accounts receivable or accounts payable of said Company which may be taken over by the Village in connection with the purchase. RESOLVED FU.ZTUR that the Village should, and does hereby, demand that the Country Club District Service Company eaeoute and deliver to the Village a proper deed of oonveyance covering the plant and property of the Country Club District "ervice Company, used and useful, in connection with water supply system installed in the Village of Edina under said franchise, upon the Villagers payment.or securing of the price proffered in the preceding; paragraph of this resolution, RWOLVED FURTHER that the Clerk of the Village shall forthwith send an offers demand and notice to the Country Club District Service Company in the form attached hereto, marked, hlxhibit A and hereby made a part hereof, together with a copy of this resolution. - 4 - RESOLVED - F'U T that in the event that the Country Club District :Iervice Company accepts the Village's offer to pay, as aforesaid., then the Village shall take appropriate steps to pay or secure the payment of said purchase prices obtain a proper deed of conveyance covering said plant and property and take, all other action necessary to consummate.the transaction. RESOLVED. PUTETR that in the event the Country Club District Service Company shall reject said proffer of pay- ments expressly or by inaction,.then Messrs. Stinchfie lds Maekall, Crounse & Moore, special attorneys for the Council of the Village of Edina, shall forthwith institute and maintain an action in the District Court of Minnesota in and for Hennepin County* against said Company to require the Company to convey the plant and property of the Country Club District e'ervioo Company, used and useful, in connection with the water supply systest installed in the Village of Edina under said franchise, to the Village of Edina upon payment of such sum as the Court shall deem equitably payable therefor by the Village based-on the valuations determined by said appraisal adjusted by using appropriate combinations' of 7 valuations of individual items and equitable deductions as afore- -mentioned under said Section 9 of the franchises whether that sum be more or less than the sum - proff6red as aforesaid. . RESOLVED PURTSLR that in the event that the. Courts in such actions shall order the Company to convey said plant and property of the Company as aforesaid, then the Village shall tame appropriate steps to pay or secure the payment of the sum so determined, shall obtain a proper deed of conveyance from the Company covering said plant and property and shall take all other action necessary to consummate the transaction. ATTEST: President of the Village Coun-aTT Village Clerk Motion to adopt the Resolution was _seconded by Trustee Willson, and on Rolleall there were five aye.s and no nays as follows: Willson, aye; tonne, aye; Utley,.aye; Hawthorne, aye; and Christopher, aye; and the Resolution was adopted. ATTESTS _(Signed) C. Z. Christopher Signed Bower Hawthorne President of the Village Council Village Clerk -5- . FiT IT A Country Club District "ervioe'Company 4611 Wooddals Avonue Minneapolis, MMinnesota . As you know„ the Board of - Appraisers filed with me on October 110, 1946s a report, dated October 15, 1946, . wherein the Appraisers have made valuations ai the plant and property referred to in that report, . duplicate copy of this appraisal report . was sent to you. by the Appraisers. At a meeting held on November Sr 1946, the Village, Council of Edina adopted a resolution relating to the purchase of the plant and property referred to In that report.. A copy of the.- resolution is seat to you h,erevith pursuant . to the terms of the resolution. In accordance with the resolution,. the Village of Edina hereby proffers tQ you t'he price of 066,412.32, plus, the additional sums.referred'to . in the resolution, under tha, terms stated in the resolutions, and demands that you exeoute- and deliver to the Village of Edina a proper-dead of conveyannee oovaring the plant and property of your company, used and use- fult in connection with the .water supply cyetem .lnstelled in the.Village of Mna•under the eater franchise, upon the payment or securing of the total. _ pricey so proffered by the Village. It is requested that you advise the Village Council, in writing, whether or not you ac0e3pt this proffer. If you ao." oept the proffer, then the Village will proceed forthwith to mare payment or secure payment of the.tctal.price proffered&, Your attention is particiAlarly Al! -ected to the second resolvIn,g clause of the resolution,-and written notice is hereby - given to you of the conclusions of the Village therein stated. The prof eedings for. the purchase of this .plant and.property by the Village have already been long delayed and it is .imperative that we now act promptly.on the appraisal. Therefore, we must request that you have -a written reply in the hands of the Village Council wltlitn, twenty days from the date of this letter. If no Written reply is. received r4 thin tvrenty days, than the Village will conclude that you are not willing to go through with the sale under the terms of the franchise voluntarily and the Village will institute action against you to obtain con- veyance of the plant and property as outlined in the resoluti.on. Very truly yours, MR r of t he Village of E E&�____._ , 4 VILLAGE dF EDIAA 4801 Walt Fiftieth Street Edina, Minnesota November S. 1946 Country Club District Service Company 4611 Wooddale Avenue Minneapolis, Minnesota Gentlemen: a As you know, the Board of Appraisers riled with me on October 11s, 1946, a report dated October 15, 1946, wherein the Appraisers have made valuations of the plant and property referred to in that report. A duplicate copy of this appraisal report was sent to you by the Appraisers. At a meeting hold: on 1Iovember 80, 1946, the Village Council of Edina adopted a resolution relating to the purchase of the plant and property referred to in that report. A copy of the resolution is sent to you herewith pursuant to the terms of the resolution. In accordance with the resolution, the Village of Edina hereby proffers to you the price of 466,412.32, plus the additional sums referred to in the resolution, under the terms stated in the resolution, and demands t tt you execute and deliver. to the Village of Edina a proper deed of conveyance covering the plant and property of your company, used and use- ful, in connection with the eater supply system installed in the Village of Edina under the water franchise, upon the payment or seourin of the -co taal price so proffered by the Village. It is requested that you advise the Village Council, In writing, whether or not you accept thi c proffer. If you ac- cept the proffer, then the Village will proceed forthwith to make payment or secure paaymont of the ,tdtal price proffered. Your attention is particularly directed to the second resolving clause of the resolution, rand, written notice is hereby given to you of the conclusions of the Vill®ge therein agitated. The proosedings for the purchase of this plant and property by the Village have already been long delayed and it is imperative that we now act promptly on the appraisal. Therefore, we must request that you have a written rep in the hands of the Village Council within twenty days from th date of this letter. If no written reply is received within twenty days, then the Village will conclude that you are not willing to go through with the sale under the terms of the franchise voluntarily and the Village will institute action aagainat you to obtain con- veyance of the plant and property as outlined in the resolution* Very truly yours, OW–PIA-05451, - R! - NPWA .c� s�, - i ! % + G a e Trustee Utley offered' the following Resolution and moved its adoptions TO M Pr a;iOUMT CLUB DXII''t AICT rViVTO C«! AWX 9�EiTr;z f��► , r' f@ i pair tr ial rater fl-anobjAw 140MA to 00Mtr7 Club '4str1*t Caae.PalAy l+y.%h#r vil 4491ar Ot !,'d1rA protritWs tb*,% tho VLIU&* any pars hWM the IIlssrt p-, Ox" of the aomorwy Club "k xSt aft "'Olnr o COSPOW., no" aad me- fal, in COM"atiaa with the motor aUpPiy System InstoluA As , for VMago of Ydlnw t ars► that ft4kmMi;"a mW . vxxpsr p said ttan 9 Providoo L'Or t ko dotexvas %U= of a prtet -Ver acrid .plant and -rroprorlry by appral"I in MW o"Ot Wso psrtiost or* unab]A to a poe ujmm Fries, std XIkrhS a "Ord of AppMl"ro V" oppoint % "r a!Aid ! *tian M%*%, DoAvd has marls aad tiled an Ootrober 0./1 ltd ", rith tha Clark or the 11LIzago, 4A avwolsal report dSUA Ostaber lb, 1%6* out $119AW. "14 ripper ina1 V*POS.S.has b*o a, fully *oaf* *14aaurrod by thi as O it a► orA ' war" t+sid . a"rata ox "Part roads in part as fs►xLa-s►+r t *The r+rsolublon of tho vulag 10090111 tie notisaR to t%+ -C�ltn Clubs !�iaartrlait '- srvlea Cc* initFhaa►tLIg thas appolnownt *r t►lh*#* apjprei,!aarr* roger* eirloolly to 'Mae part of the amtoor ayittosR t" ant f new >aaed and alr+ftuj, awned by and b plow g ing to Th Camel V]Lvb Aaetx dt ea YiaaaaF four "we lepy nottoo asd rosoluti+m' aa►tta6hod O "Tbr Itoord to 00CAtsant of thn taott that t1wraR In a aetwidoraablo' differonoe or e'pintoa began tho prlmlps1s is V la Proo"dim, ar to 44 oxost defl- nttian of the poope rt . so aramd l, this dlfforrrwat brow 1"0133 due to dif fa vontF 1_nterpa%toti.a►a o PIaoo4 on #ham r9cont �Tuprftw court. Opala lean by tho Vill" officials and by Vw a Tl"r r of the Csoia %Vy Club Dintrtst --or floo Ca* "4uswo Cf rile a� 'lint #u �� daafiniLl,� e,� ovru*rshlp# the, 4&taM rsgaardia ropredu*tJoan eersts have bsal a so* forth toprmtrl y# to such N*rmer :WWt a a fair "Ins of tho use+i end useful yoAlon of Wa +r a$03 - "rb* sysitar # os uyPra►?,.sod, can bo roasdily detomint+i by a preprr ambinraitioll of appIlooblo figures vie" .1A Mai Mpar t. of %or Va -s inuroaxlp I*s boo* dtf # and by v9WOUM authority. "Tow board of twmlao" -has not at -te> PUA to Int►rprst txe Haant d"I s 1 an of the, tYoaari of ttira ;taat� ot` flsesuts: or t* �stt►+�rrrtatsr airtaxeit titila to may Ot tho ago Porticos of . tcba rater Wafts In the U12aiov CAT' -A1rAv or of tho equ1,- ties t:f Who two parties tho"Inw bellovep yu"tIOUP Mderr t0aw of the franatt l"S is 0 $O del rraola r t?sr snprolfttion coat of %be -system, ad that tb* di spntear to to ovaraohips equitUst *to. atboUlt be detarlWtG0d 'b the` pri.aeaipaals th*Wotiv*s or by a o6ort of oc * ,Ut - 1wisalati+oa+ !*Your board lite*iao oxpsosox no op nton -rat to OWMrsh p or oaternsi,on* of the distribution ILA** aeonstruoted and finonsod by aaeantributiaw in aid at softstrue tionr 'nadt by ousltomar* doviring gyrator aaearv- .. too *too* 1937, and shi*h, as of D000 rber 31st,# i. h Is sb+ eowpwy sudigtas to amount to $14* s -5W aatcsd W f1 ' AF. r - itch id appraisers failed to Make say - noution in *Aid appra,1441 "Port or the "advames is aid of smstruotioat ", 'horetuaattor Wsirrod.to, and !f ►' � A*, ssid dp,prolsol report ussigm a totatal ralotatton of 4,160P914644 to the itraaut saesati.onsd on page 9 of said reports is axed vilaaate is not ailliad to aas"Pt 4150,*914*66, or arq Urger a**# • as a ooarroot appraisal or prig for purshuso of mald,92,ant.and property# &ad th* Yalurat m ur aaos i�pod to the ♦aarioto tudividual Items of the plash and property reforrod to in so-14 sppataisal report am aa000ptaable to for Village Couaeil, and tkw Village Coun+l U has boon aAvlrwd by it* atternays ataad 'bolLovos that sold appraisal report and t ranchloo should be son+ttrued as p+mit'tiA the Vfi.la * to 404opt tho raluatious Sasignoli to saJA v"lons- indivi4 it*** ea that those, YaluOtonatt son br Used by the partits or as o*vtvt to doter in* the pvo0or print to bey paid by t1it village for th# plant =4 property of tho Couaatry Club ristriot sere %ow CompAuy, used mid gssful -s In -somsotlAn ertth said seater supply . oteass by ocAblcaiaeg than Yaalvationar asRt d to the vatar&*us Individvol items of WN plaaht and property raaf*"od to In 'sold appraf eal rogovt vhf oh arcs. yarned by said CoupwW arA tW -x*ktng alapp riots de"tioaas . to be. d*%*rut1Md by the yartiox or a oburt ror various it#me of said Plant and propwty refexod to In said sppr*1seal "Port rhi.eh are osn*i by tba► Villa cr b* the residents of tho Village a*d also by making equitAblo doda0lonso, to be cbtst IM4 by the partUe or as *01wt, for each am$ as 1 o Village easixs w#re puld by tho roold*nts to this sa<ij Gauntry Club Distriat �orvio# Gastpany or Th* s* far e*rtaiu paru Of the p2Amt and pmperty veferrod to in Bald - tppra1044- 7 port and by min squitab'Jo ,dtducetionss to be do' Us Laod by the parties or as court, fear mush sustx aau wirer paaid by the "Bidentat or eontraotcrs to the Country CIO Dist of �*rvle# Cvmummr either see contrxbetions in old of "natrusti qu of 60rUlik items or so aadea sa In aid of, aeuptrootion of eortatin itemoo, such embinatioas and deductions to bo - maado in the saes. fashien *v If the Vill.agar were praesed la g, to **quira title by �ix�a►rst d�1a y�oi.>aE* u� . ri` ;5's1'.A US 'x12 Wishes to r#joat said OPM - p lsal. report =lose "Id report. mW frawhi,so are, construed as a�+srte raaai d s aaasd i. I a RR1" said !'eotion A provides that in tho #vOrit the vulage of Ran* to elt s stisfU41 with the prJL*o f iaad b tho atpppaiatal0 tbn vil rA mays within thi�yr days sftwr fi� �wp"Lisa3, Ratify c�atruntary Cltkb Distrla►t b*"jse arXILU tg. laQd pi11 shall thereof ter not b E *bligot to aosopt said`appoatsal or pursthase amid pleat end Pr*p*2*y and that eih+erarl,se said appraisal shall be btridind N(Wo T�i1�- :iSa7`cSts J% IT .:M""QtoVX► by th* comwil or th*. 1i Sgb of -!�xtlaa that tho viler* of Xdim shavId, and tt' hW by do*** a"opt tbo valuations and priars ses.iguej is t►1W various 1441vidn" tte%* of the plant and property rew furred to in said appraf sat report if "Id apprai*44 r*pwt SAd th* frathahi" ba OftatMOA are perNittitng the. t'tUa,St tat aasept tbo valvatifts assigaed t* the various individual Item rofoy"d to in said sport anal to have said valuations ate• birth to have +dadetatims woo tboretx4m as previously wentleaed had to tbas do to ral me the prt tc be paid urAor said frafthi tat tVV the Mast and property -of the Coxmtry Club District Sorriao Qom, used and useful # is cameetion with tho stater su "ky system ina tanod in the villa►ap at odor said water f ranshl oo o R?V "OXV= pr, RTURR that 'lf that appraisal roport and the frawuhisat Ou=t bi oonstr &* sot forth Sat the preset - ieeg paragraph of this rratoletti.on, tea the Village shoul,da and It hereby +dons, twt l #4e Ca sU7 ttlu�b USattri,at service Coapa xy in writing that #tho vUlage Is dissatiaflot with tkw Ps►i" fixed, , by the appraisalp that the vilfaga rejects said appraisal# had that the Village shall not,, under sash eircuuntemotp be obligated to aoeept said appmleal -nor purohase raid planar &M Property of the Cie 33'* OLV! :. PVaTHFX that the Village of FALas , =4 It hersbY 400s, off6r to P+ay the Ca+u► U7 Club r4striot ^ervteo Co "ny for OW plant aasd proporty at the Country Club Dist:rtet %orvio* Cowpanyt used wA uaoful,,# in a:ama►+etien with. the tato r Rup ,y system metalled in the v ilia g# of Edina r. Vmdar staid frazeahiso, the prioe yroyorly dotorxinablae unwr SAO apprat anal repert o that x m a the crust of WF422 * 38, plan an a4kUtiona3 sw*qual to said Costpar#yao 4book sext:s for say eattateuaiWW no" rubsrqu+Ms t to Marsh i, 1946, other then fur the Oak Drire extenslou, +thigh was ountrasted in It" oAd is Iraell" td ice" the 'aluatio o arse also plus am additional, star egtwth to the fair and reasmabla value of "any sal 'tools arai eq,uila 1- i and any orator motors in mteek* # whiob items more omitted fr ae the a ppruieal, and the .fair msd cease x ablar val%W of any real *state* wells,* buildiaga and l=Pla6 equipment ao quir*d *Lance Xtrah 1, 1946* and usod as a part of said water supply aryst4W* 'lad xvo of 0 ,54 #413.38 1s dottus"ined as followat 0Zi� 1 TOW valuation - of all the, plant ^nd! property roterv# to In 0^14 opprai►val, ropart, par paw i1 of appoai al report wines the foll4ving hams I • Vai%M%lon of the artai:ma distritu* 1996 and loge# per pago 0 "Yalaati+on oi' shot eta tn.at*ta* per paw► � 1�;�l�.t� 60 ftl"Uon of u1s, UrA ondt talrs izwt *d in 1 a, ..Psr page, 4 #403oU 4� 10coatributimtxr $A aid dt eva- �itxwae�t 'Zotarr". to on page d 14 *776*64 dr. Salanoo payatrl* MWn *A4T AOS$ In aid of foonatru0#10n"- pot CoapaAg`e books oa 1.0 ber , 29". a4,sas.3 fi ts4,.soss4 lrarr#.S the ai'+ vooald PASO at Fr ,41�t.�3d Said offer is mado are the turd *rstandLag that the af4ft44 .d plat t sort property of the Cospozq eh'all be cox►oysd to tho viljqM of Rdba b the C* mtrp -�Clab Distriot service G� arn uV, tree d '*I Of AnY � %ms: OALme or eAeumbraM. *et. cther tban the •laim or rod 41donts of the Village to ownersbip of an or any part, thoro*t, but n tb* vM40ratatnd1 tbAt tht V112 A9* sball &*sum mad agr•o to M any balance* patsblo to .tbo petwons vb* wad* .th! afor#4ajd advanoos in aid of *iUxtrua�e� Wh1sh �d a bale400. of _ �r'!'*�'i 0* at Ow Q� 0*0 of I%$* Suitable ad jastpottts to the 'tart 01 am offered will bo ' ae - ror anT, sontribu'tions in aid of . raoart.s truo- tion aroaoiv*d or rotumleA by the. Company: an** Ewoombor alp lt4$ * . and for *UX F is = do . bar. tho Ctwpoxy in r[tKe tion. tar said balanao of 070090* p. tap to tho Umo, ot, p h *4t, and s so suitable ad Justwnts Win be rude for a k$ aaopunto ,tS*oLtablar or aoeovate Mab2r of aaid Coa; W Vhloh mad► be taken otter by the village in abMwetion miith tho pwohaeow, 11MW that th* Villa&* should# WW does hsr*Di* don" that the Comtry Club District ��ervioe Cowpaay ez000to and deliver to the Vill r' a proper dood of *oijv*y*no* O*Yering the plant and pro' potty of the Country Club DistrUt oreia• Cemp yv � us*4 and uo+rrttj, ijj sonnaotion With ia,t *r supply sXstou W%*Uid in the Villagb of rdins undsr sat& fray uhisa, 'Ov*U the Mugots paymtrint sr •soeariag oaf, the prioat proffered In * pr000ding- .paragraph of thi'a -raeolutien* 3.W'_GL D 1;1JOTlMR that, tbo CUft of tNhs, MlaSi sbALU for vith amid an offers dowuvad .aril natjo* to the cauatX7 :lab Platriat ozovi4o eampaW in ttA fors attached horeto, marked Rxhlbtt s *nd hfrobp made a part boroor# t *g*t�.er vt9th a . *opt at this resolution*- }:L'" CXVrJ) FU =THPIA that In 'the sr'ivatt Ab r t the 0400try. Club Dlstrlot ''orvi. Com aaaaaoe,p taa the vUlago is offer to M# as s aforeso d s then %be V eg U take- mpp ate *Ups to peRy or eooe uro th& per. of WA pur b sio pAos$ obt*SA a D l* . doot of a aiaiirnvoyat3 * mvering. aaeaaxd plant aW ptapox ty ataaad take &U . othaar attion ueta o so ary to +eonsvamte the tra! nsaactlon, :2�.��iUm I ATi`HSH that i,ae # ervcntrt t:h+lr Gou try► Club Diaartriet Norviot Comp=W aaaballl rojeet: ss4d proffor of pie xontt expressly or by etion* tau Y+a vsrroo stinobfLoUt X"Calt C"umsir & t *ire,r m;wsial attorneys fbr the C owwll of the V111ago of FAtnav Ahall forthrnith inxt itutir and a sIntaaa.in an action in the Platriot€ Court or 191ta3no"taM1 in ond. for Uourtopin Comasy* aNgaimat a xJA Cowpomy to roquira the pomp to tonvoy that plant =A .. praposlW or Us Covatry Club District, rorvlao CompWo vsifd end unotals in s+o sati With the maator supply &" tom om £n#tallod in the Via a *f txalliJM Under awS44 fraanOU SO& to the VMa►go of Rdim upon:psysmat of such sot as the Court sue, dsa ogwdtably parayaablu thoretor bjr tbv MU St bao►eod on tbo valvaa>Rtieri+oia dotaaarRmlmA by raid aapprol eaal 44 justaaad Uy aaing appropriate oombioAtIons of vaalmatzons of individual item ,*A4 squItable, doduetims as eaafeare. w antioft& mdor said Seaotion W or t; ao frPaoneht"o Whigs+ that seas °4o were *r lops umn this aevo pwro roil as aaterwe aa'l d o I%QLVW MA'iHER tbAt in arrant that t1Wr Cad In each astion, *MU ardor tho Company to eonvoy` raid plant aid property of the Compaea are aforos*f p Mon tAba V Aaga she►U tame approprirat sl *.taop# to pay or as "uro the psyuont of the, sum so diltozul as od# rl^st+laU obtain ait pr p flood of e:aonvoyaaaaamw frem t CamPMV oovorrU4 aa+aaid plant WA proporty and Aball U&O all of hor aorustion zwoossary to sonawmo aU the traaansalaotton. ATTrST r Press, ent of the Village Council illage Clark' Notion to adopt the Resolution was seconded- by Trustee Willson, and on Rollcall there we're five ayes and no nays as follows: Willson, aye; Zonne,' aye; Utley, .aye; Hawthorne, aye; and Christopher, aye; and the Revolution was adopted. ATTZSTs (Signed) Co J. Christopher - President of -the Village Council (Signed) Hower Hawthorne Village Clerk Caountry Club t4str1ot Fae"LOS Company '�a�l� wCaPa�►ddala! �r+anuar - ' it�,n>�ieapol3s,r �tinaaoesota4 - A* you kMWe tb* 'Board of Appraisory tiled v1sk he on Ostaob+er Its .1946, oat ?brt dated datetar 15# 1M whe "� the ApWaisora have a*" V :UStiona of tier plant W d ply . referarod to In that roporte A. duplicato Copy *,C Uds appraisal "port ware imaa,tc to you by the Approlsoraaa. At a aweoting hold. on Novowbo r 130,1946# tbs villase, t;OWWLI of F..dirar, adoptod 0 "solution raa l*ting to -tho Perth"* of the plant an& propo y, roterrrd to to that rrporttf A *an of *be. resolution is aaaont to you herelorit h pursuant to.-#b& toms of tho ar+aaeoluti�►. . . a aesasAerdanarae Mith the rasolutiont the ViU*V of Edina %srarby protfae►rs to you the price, of 066jp4 it#3Rv. plus tba adaditi+a: wl sums xeftn,*d to in tbt rosalution# toot the toxss s tatod In the . re, solution,, mid dads that you aeacoeO* and 6*11year to the, Village of R410a *.proper +mod or aaearr>pc'a oy'ateR m oolvoriaag ttw plant and. property. or -your sompany, used mind W as��► fnl, in oveetmocti an with the Vator supply system iaaata 1104 In the VIl so of FAtua aeaador fire crater frmshi.a og, upon the past or soeuring of that tntal priao so prefforod by the Yl IW* It is r oquobtod than IOU aaaAviv* the yLuags - C 110 In w ritiaeg, wbiotho r or not you aR000pt this proffer. If you a *opt the paro�'tor* then tho will pl'"alod to thwith to maLUe payment oar ***are pay mat of tho tatal pri,ve p "fforod* Your attention it pa►rtler aariy diraraaUd to the s+ecowl resolving- olausae of %ba rsa 910tion, and Witt*u noti+es t0 . boreby divarn to you of the *orAluxions of Aho V311" t we$A •tatarai. Thar proa so4in, # ro r, the pur -ths s of Wo plat wA property by the Village hive already boon long delae* wrai it is imperative than we nov act raptly- an Mo. aappraiar"t Thorofore, war nuet "qu eot that you have ae written "ply In the hand* of the Vlllaug+e Counsil within twenty dxyar from the lotto► #t this lottor* If pa wrttten "ply is raeoei,v*d rt thin twenty #at thon the -VU%4k aria aaaaraol"do, that you or* not *111ing to gr tbrough with tho vsao° tender, .the tetwtae *r' tho r rAA*hteer "l.lnattatrily aattatd tho V121age will inotttuto aasti+cn aaguintst you to obtaln aatacaaaa- voyance of 'tbo plant ad property as aoutlinod in the raarac>~1utXon. � `sr7 . truly ''ours � I STINCHFIELD, MACKALL,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C.MACKALL ROBERT M. CPO UNSE PERRY R. MOORE THOMAS P. HELMEY LESLIE L. ANDERSON DONALD A. HOLMES M. DANA NI CHOLSON JOHN M. PALMER� FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN I I i Village Clerk Village of Edina 4801 West 50th Street Edina; Minnesota I - ELEVEN HUNDRED 1� FIRST NATIONAL-SOO LINE BUILDING MINNEAPOLIS 2 November 21 1 9 4 6 Dear Sir: i Re: Country Club District Service Co. I Mr. Harold Utley tells us that the Country Club District Service Company served a notice of appeal in the Appraisal Proceeding upon Mr. Bower Hawthorne, last Saturday, November 16th. Will you please send us a copy of the papers.which were served. Very truly yours, STINCHFIELD, MACKA LL, CROUNSE & MOORE By cc: Mr. Harold Utley T.:"LLAG��O� � 1100-First-Natl. Soo Pie Bldg. Mmeapol ls, Minnesota Dear T7r. iloore.a M . 14. D. Nicholson phoned me 'last week and asked ,ro to -submit cwt information I can on the use of water from hydrants in the Village of Edina, froh March,, 1939, to Marchi 19450 You perhaps know that I was employers by the Village as of April 1, 1942, and have been in their embloy continuously since that time. I have 'compiled the information herein submitted,, with the aid of Mr. Philip Bailey, Chief of Edina Volunteer Fire ieparttnent, and Mr. lieu Woehl ®r, Superintendent of 8tilitiea for the Village. Mr.-Bailey informs me that- tho Edina Volunteer Firb Department was organized January 15, 1912, and they have one piece of fire fighting equipment ;. namely, an International truck. This truck is equipped with ca suer tank of 250 -g414. on capacity, two -and - --half inch hose and one- and - one -half in6h hose, indi,�n fire fighting cans (grater)., and miscellaneous equiomnt,, The Village has a yenr••to -�e�r contract edth the City of Mmncapolis,to furniih service in the- so-c-nalots hydrant area, meaning that portion, of tam wham thore are water vw1ns. Thera is also a year -to -year contract rdth the Village of Hopkins to serve the Brost portion of Edina,, vdiare there are, no water a%ins or hydrants.' The latter ' contract ym are not interested in. The Edina Derartmant: has .an agreement whereby Minneapolis will not send their equipment out unless requested or approved 'by' EdIna. Chief I .ley says he has no record of . tUnncapolis fighting a fire direct from a hydr7int, except arse listed below; -although, at tiros they have connected their hose to the hydrant,..filled the hose with water, and "stood by". Ailey reports that'amost fires are extinguiahed with five- g4llon •grump 'cans. 1'ii.naacaoolis records show ninety per "cent of fires am handled 'by this method. I•lost fires in the Village have been ontsidv -of hydrant area. Following is list of fires for whi h water was used.; the tine of the fire, and estimated amount of water used:.° Mr. Perry Moore Re: Hydrants 12/11/46 #2 April n, i912.3r45 P.H. to 5:&5 P.M. House at 5506 Brookvidw avenue. Minneapolis Fire- Department `used 1 _'!'," hose lute with 1/2" tip, for approximately fifteen minutes. Estimated quantity -of water used -- 450 gallons. November In 1 :00 P,M. to 8:45 P.M � House sane as above at 5506 Brooksidw Avenue. Used one booster tank full from FAina truck$ and refilled tank after fire, from hydrant.. Estimated quantity of water used -- 250 gallons, March_ 2. 194.3.. 3 :1, P.M. to 10 :00 P.MA 'Feed store at Brookside and Eden avenues. Two tanks of crater from Edina truck. Estimated quantity of water used -= 500 gallons. May 9. 1943. 10:00 A.M. to 10:30 A.M. Brooder house, William i{OPp, on Highway No. 169 Filled booster tank from hydrant after, fire. Estimated quantity of water used from Edina truck -- 250 gallons. December 19A 1Ql, .• 4 :15 P.M. to 6 :30 P.M, Joe Garrison farm-at 70th Street and Cahill Road. Used two booster tanks full. Estimated- quantity of water used from Edina truck," -- 500 gallons.. October 26, j%&. 11:05 A J4 to 2 :15 P.M. Minneapolis, Northfield and Southern Railroad Bridge, one block south of Fenton Avenue. Two booster tanks fulls Estimated water used from Edina truck 500 gallons-. December 16. 1944. 6:00 P.ti. to 7:15 P.M. Woodpile at Dornblaser property. ll 2 booster tanks fu. Estimated water used from Edina truck 500 gallons. There were several grass fires during this six -gear period.,' but in most instances the grater used was no More than the 250 - gallon tank full; and the tank nras refilled from the water line in Vie Village game, using the water from. ,the Village well in the garage. A liberal estimate madp by Bailey is $,50Q gallo:ts per year for six years,.or•a total of 33,000 gallons. Mr. Perm Moore Re: Hydrants 12/n/46,--O a The following, information is given by Ben 11behler, Superintendent of Utilities: 'Uydrants: CMe= meisured W Pitat Gauae 4615 Browndale Avonue. 22 lbs. - 790 gallons per minute West end of.Sunnyside Road. 10 lbs. - 530 gallons per minute 4503 Arden Avenue.• 15 lbs.,- 650 gallons per minute: Average - - 653 gallons per minute 7 hydrants on Sunnyside Road ' 6 hydrants on Bridge Street B hydrants between Bridge Street and Couptry Club Road 1/2" nozzle] pressure 16.5 lbs; 100 feet of hole, average crater output 30 gallons per minute (T€Icen from National. Board of Fire Underwriters' Fire -Engine tests and Fire Stream Tables., Page 26). 21 hydrants used 30 minutes per year; 630 minutes at 30 gallons per minute equals 15,900 gallons per year or 113,400 gallons over a six gear period. The above is believed to be a liberal estimate of water consumption from Hydrants, used in flushing severs. a - To any knowledge and from what information -I can gather, there has been no street flushing done from hydrants. $rP►r•: ntcl i na Parks and YillaS2 Flower Beds. As determined from McCarthy' Well Company data: Using 3/4" garden hose,'five gallons per minute- -small parks and flower beds in CountW Club District. Right hours per week, for two months -- 19,200.-gallons. .Years 1939, 1940, 1941s 1942, 1943; no.sprinkiing done-in 1944 and 1945 because of abundance of rainfall. -- -five years-at 19'200 gallons -- 96,000 gallons. - In swmari.as.ng the above-it appears that a fair-estimate of water consumption from hydrants, March, 1939, to Burch, 1945,.is as follows: Edina. Fire Department 33s0OO gallons Sewer Department 1132400 " Street Department (flushing-streets) -O- " Parks 960000 " Total Consumption six years 242,400 gallons It records.show that an April 15,. 1946; I wrote to Mr, Karl Schmidt, 4200 Grove Avenue, Western Springs; Illinois, and enclosed a report of "Estimate of Repairs Needed an Edina Fire Hydrants", as submitted by 1-1r. Ben Woehler. The check of the' hydrants.was made by Philip Bailey,.Fire Chief. On Ilay 240 1946s I_again wrote Mrr. Schmidt, enclosing a chart prepared by Philip Bailey showing locations of i Mr. Perm Moore . Re! ittdranta l2 %ll %6 aft hydrants needing attention,and indicating what repairs should be made 'to gout _ttuam In working condition, On Kay 249 19469 I wrote you., enclosing a copy of the above mentioned report and chart which were railed to Mr. Schmidt, It was suggested that a copy of each of these be sent to Mr. Oscar Gaarden' but. � upon discus g this vtith .H 9.1ey and Wo h3br9 it ,was decided that it mkt antagonize Mr. Qua ten and -eve wo:ald not get favorable results-. It was then decided that Baileys being Chief of Fire- Depsr ment9 should contact and inform . Mr. Gaarden verbally in an effort to have the hydrants repaired. In this way Mr., Bailey could be assured of giving better fire protection to the 'Vill.ade. I have no definite knowledge that Dailey fulfilled this assignment. However, Wdehler- advises that an a few occasions he called Oaarden when there were major and I mediate repairs necessary Very truly yours'. Village Manager VILTAGE OIL' EDINA Plia, gs 'i ti J lei �d lu , Z'AV'Se ) ". \ V r �A J- I .ale r f �y i 1 7! Y ,' � V,,AelI&1 11 W -.40 A-W ✓ r - - -� '' ol r " SGT � OD 102 AdAd.Al w 9,-.j 0� J; all 10, i I A , STINCHFIELD, MACKAL_L,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C. MACKALL ROBERT M. CROUNSE PERRY R. MOORE THOMAS P. HELMEY LESLIE L. ANDERSON DONALD A. HOLMES M. DANA NICHOLSON JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN Mr. Bower Hawthorne, City Editor Mpls. Star- Journal & Tribune 427 Sixth Avenue South Minneapolis, Minnesota Dear Bower: ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 December I13 1 9 4 6 Re: Second Hydrant Rental Action .Judge Selover has just entered an order sustaining our demurrer to the complaint in the second hydrant rental action involving the years 1939 to 194,5. A copy of the Judge's Order and Memorandum is enclosed for your information. The ruling by Judge Selover and his comments regarding the previous Supreme Court decision should be helpful in convincing Oscar Gaarden that the Supreme Court decision is somewhat final.' You will notice that the Country Club District Service Company will be allowed to amend the present complaint only if the Company can show addit- ional facts which will warrant recovery. We doubt if such facts can be produced. Very truly yours, STINCHFIELD, MACKALL, CROUNSE & MOORE e7) Encl. By DEC 191 1946 . LLAG I county of INnn*pSn, Yourth Judicial mist riot. Country Club DI utrI *t Sft vi*s �ompaany, a cc��Waxawti,on, -.?1 aint*i ff, Too Nov 438360* Villas* of Mina, Dofondant The above entitled t attar *am on regularly .bsforw tshe undir*ISA*d, *no of th* Judges off" tho above named court, on the sixteenth day of - Oatvbor, 1946, far heariw. of a grerioral demurrer Interposed by tbo defendant to tl-w oampl oi►nt heroin. Stiu*hfI *ld# gooka3ll, Gros 4 Moor* appeared for tbi defend, ant:, in support of sold doeeurrer, and Vomum, detille . 4 Wright for the pliaiutiff, in opposition tbor*tow', abet Court hAvIng *Xxalued the pleading under attack,, hoard they a.rgummts of counsel and axaniAod their rosp*ative brrrikef *, the liaot of atlrAoh was ,pr4sontod Uovember 30,0 1046p *t wbia h- tint the matt *r van flnaI17 submitted$ it is hereby �- 1. That said dsmurro* be aud the *am* is- hersby- in all respects eustoinsdl 2. Thiat the plaintiff aay,,- within twenty days artesr tho flliz& and service at this `o dor# *arve upop counsel for the d+afondant a notice of 40,tion for pindssxoa to serve and file an wwad*d complaint }gain, . if oounsol for the plaintiff *an di.toover and pload facts *hi.ch can proparly corm the basis of such amended aasaplaint. Bated Doco bor 12# 1946, B7 the Court* is r at Mas . XEMORANDUMs la tho detorzdnatlow of- this matter, the Court Is eantrontod. with W10 deralsion of our aupromo. Court, in Country Club b1strict :etx"��.+�R. Ge�..tr.�illa�ee of Ydlna, 214. Ann'O 26. Phee same partiees as thorn, arse h*ro involved in a sirsllar sontrarrsrmy, ,pr*s+natlimg rim%lor que stims of law, UYUwr 'a similar ao't of f+sOss 41Mring only to the .extent# not important here, that. the ser.vtot .for -whieb .rs" covery, hero 1s. 4ou4,-ht ewbraoos a porio+i of time subsequent to thew t for *blob reaoV*rj was laoffeeetuailg sought in :than prior action to which 'r*f# renoo has loon mado, axed to tho furtheer extent that - harp* drotbe rvjj who Initiated tho *or . viees, are no ,longer oonr,*et *d .wLth plaintIff oorporativa, now 09=4,, tantrollod And mad *xoltxmlvely by on* Usear C�tardeex�.. xlait ti f .. eoaxtat ds : ?cat: aims T4aardeen male: over tbo glaint ifl, Torpor- ation,, ;.-he prml ueem and inducom nts, ttmitiolly made by Thorp* brothers to tho purclAsoree of lot* In tho V111age . of Edina, are not binding on plaintiff in its presant ownership, and that the, Suprow Court~ deeialon Is, for that .roavono axon. *Vpltcabls.' in WAs eeaaee, and that plain• tIff should be allowed to recover *A the ground of implied or quasi oontraot. ' Tbw difficulty ■b ah plaiatiff encount- ers hers is. that the le t, - awnorm aj34 they dotandant Village still have U-ee r1g .ht Igo ' rely, tree forswr oa the promei+soo and inducements under which trbay bought their lots, and; the late. tier not only vn much ptwmi,,sse sm4 isxduoeaawAtop but also on the t arms of the . rraa, IA feet whi.seh it Save to plaintiff and under 04ch alone VULutift. has a r3lxkit to operate. Thee .turthar insuperable obstaole to recovery her* Is the ract that, fhe ::,upx4=# Court, In ',he dooisLon to which roferon** Pas UOD mad** base .recited at le.ncth .tom sh uw of ownership and managam nt fry 2borpo Brother* to iGaard*n, and has def ao F] STINCHFIELD, MACKALL,CROL1NSE & MOORE FREDERICK H: STINCHFIELD HENRY C.MACKALL ROBERT M.CROUNSE PERRY R. MOORE THOMAS P. HELMEY LESLIE L.ANDERSON DONALD A. HOLMES M. DANA NICHOLSON JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN Mr. Phil Smith Edina Village Hall 4801 'Nest 50th Street Edina, Minnesota Dear Mr. Smith: ELEVEN HUNDRED FIRST NATIONAL-SOO LINE BUILDING MINNEAPOLIS 2 December 13 1 9 4 6 Re: Second Hydrant Rental Action .Thanks very much for your lengthy letter of December 11th, regarding the hydrants.. This letter will be useful in the event that the Country.Club.District Ser- vice Company moves to amend its complaint in the present action. As you may already know, Judge Selover sus- tained our demurrer in this case. Judge Selover further ruled that the plaintiff can amend the complaint in this case only if the plaintiff can show further facts justify- ing a recovery. A copy of Judge Selover's Order and Mem- orandum is enclosed for your information. Copies are'also being sent to all Council members. Very truly yours, STINCHFIELD, MACKALL, CROUNSE & MOORE Encl. By j n - { e DISVUCT Ccunty of hannevin, fourth Judislal. District. Country E.14b Distriat 3ervsas ��pnextg, a aur'�aratfvnf vac. Now 4383600 V111866 of LdInap w ar w w+y . s M ► 4 � r► s w � ait, . a. Ths, aebovs - entitlod . tter, * an-regularly Wore Abs. u eraiduod, on* of . tbs JWgoaE of tha obovo noxed court, * : the sirtoouth. da<y of C tdber# 1946j, 'for h*ari.zvA of A gsnrr*l . donu,rror intorposaed" by t�hb dofozd*nt to the acrpl.aint U*ruiuo hti btis .d, bal.I, . Gro see A. 'gooro appo"id for the ost erdw ant-p in support of said dwro *Ad V'o=ua, Soviil,o h aright 'for the► plo4atitt,, in -dpp sitlort tboretot The Court kwvl sx4110140d %b#. ploading und*r *ttjLck, baard , the aarrtaoosts of aaounsol * , *►&aimed their rwsp#*t1va briots,, the last of vblob v" prosantsd bormbar 343, 1948,0 4t. vhich tint- the zattor. . wav final3�y , xubolttedp i» . lu horsby -- R -3 KR L I* x'1.04 said adaurrer bo and b* ague Is horeby Sn all. r4spoicts . MustaSned 2. That tie piaiiitiff may$ sVithln twonty days after the Mini; and sorv3o of tbia arder4p .sarva upon counsel for the dotiandw.6 a notiaal of, notion.- for pera3solon to "rvo and ills an vmndod complaint b*r#1n,, if aounsol for tho plaintiff can disoovor and plead fiats' wb1*h ann'prop*rly fQrrx tho basis of such ama nod aauplaint. Datod D*aou or :2. 1046. MEMORANDUMS In- taro dote .nation of thi x mattoiri tber tou>rt is coalrout 4 w1� h tho de alsion of our upx . Coux"t, lb Country C.iub JUstr1at.':aerrv1e'* to. v.Yi,llage of H.dina, gld dim, 26* Tha' sams ;qmti*a as thore# are hair* Involvr" 1A e. simllar a94trovorsY',`Vg**#nting almailar questions of lax, under a stailar set of taots, differing only to t ble oxtonts not lakportant bores that tha service for. wkdoh �w eaysr,y hrro is sought . embxracos a psrLod. of tOw subsogrmt to tbat for *blob relcov ►ary was inetfalatually mouaUt In'tom prier ao tl ;m to which :rof o' rya nco )As -boern mado 1p arA to tho further oxtusat tbAtt Thorp* Zrothtrs, v&.o lai tiatod Ubs . &*r" vi.ae, area no lct or pomOa1~ed !i th rlaintlft corporation,. aev osnod, oont;rollo'd AvA smMaged exalusivol: by om Ossor l.ainti.ff oan:tonds .'cheat &Lao* faarden tools owar rbet ;21s1nt1i': rorpora.t ion,, . e , roual aos and 1adue*wants, InIt;ial1y 4* by 'Thorp* brothers to the purobasors of lots In tho VillaVe cif i�41 nw, are► not binding on piairtt:ii~f . ire i+ti pr*sont, awnorsbipp. and thxt-th* .3uprome t.ourt di teislon is, for that reason,* not rp,lii0ablo .In tuts agre, an4 t.<at plain- tiff should 'bo ollovold to .rosavoir on tho groin of Inplieet or gi^sl aoatraatG. VU difficulty *Meh ;�.ainti #i' enarsunt• era bore, to thax th* lot -a m in and the drfen"at Village still have tzs AFht to rely, th* femur on the prowtsaat arm iad4ofnents triter which y taought 'their lots,,- a the 1 0. ter not amly ' on sue% prmLsos and Andusome r<+ts, but also 04 , tho torus of t4m fxtnoblso whi.ob It Sago to plaintiff atilt under - ukdoh iaone. plaintiff bAs a riot --to operate. Tho rurthe+r lusuperabIft absteaolo 40 re oovory- blare '1s the fae t t L the UZ uprem '"+curt, in tha dalpislon to w2tl oh roforeno+t has Uon mad e,# Ila* rooi,ted of lonf.th the esht9 So at owao rsh3O t4d aawalmont from %ar;* troth*rrs to 0saxdsn„ and has dofi+ January 7, 1947 Air. Oscar Gaarden Country Club District Service ComparW 4611 Wooddale Avenue Minneapolis 10, Minnesota Dear Mr. Gaarden: We are attaching hereto duplicate copies of statements a of services rendered by Karl C. Schmidt, Herman T. Hagestad, and Leonard td. Thompson, on Board of Appraisers in the matter of the Re Valuation of Water System in the Village of Edina,. On January 13;, the Village will make to ter. Schmidt in the amount of x;506.54, to Mr, Hagestad in the amount of 377.65, and to Mr. Thompson in the amount of `384.88. Yours very truly# _ V11LIGE OF EDINA BY Village flan ;er MIS go I STINCHFIELD, MACKAL'L,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C.MACKALL ROBERT M. CROUNSE PERRY R. MOORE - THOMAS P. HELMEY LESLIE L.ANDERSON - DONALD A.HOLMES M -DANA NICHOLSON JOHN M. FLOYD E. NELSON ` EDWIN P. . CHAP CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN Mr. Harold Utley Ernst & Ernst 1204 -First 1lational -Soo. Line Building Minneapolis, Minnesota Dear Harold: I ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 January 23 Ep-h's JA'. 2- 51947, r] I saw Tom Vennum and asked him the reason for the delay in the resumption of your conferences. He stated that Oscar was engaged in getting figures for 1946 . and that he had called him `some_ few days ago. He now ex- pects him to be in before next Monday. I also told him that I had been instructed to move to advance all of our matters on the calendar for trial and suggested that he advise Oscar to that effect. He said he would. Yours very truly, STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL -900 LINE BUILDING MINNEAPOLIS January 23 Z 9 4 7 Mr. Karl C. Schmidt: Hubbard Engineering Co. 225 ; 1orth Ijichigan, Avenue Chicago,R. Illinois Dear Karl; Doubtless you have been informed that appeal has been taken by Oscar Gaarden from the report of the ap praisers.. Thereafter Oscar indicated that.he desired further talks-respecting settlement, but at- s conference between' fir. Utley,, Mr. Vennum and Oscar .. nothing happened. However,. as I understand it, Oscar was to return with some additional. figures for the gear 1946, and discuss further proposals., Yesterday Harold Utley ways ,disgusted with the . whole matter and,-directed me to get ,'all of our various cus'es advanced on the calendar for trial.. One of the arguments which Oscar c.o`ntinually raises is the charge that,the report is not a proper one because you are not a licensed engineer in Minnesota-and ,therefore-not entitled to practice engineering in this"Sta.te. He ca.aimsi; I suppose; .got , f'ur�tt,'ons here as,.. an appraiser on behalf` of the Village consti:ttite the pract c.e,; of engineer. ing. Lam informed.too,that the State 3oard' here has written . you two letters and they have had no response from you.. At the moment I know nothing about' the merits of this clams and find it quite difficult to be .interested in thii phase because it is my" view that Oscar knew Who. was : being ap- pointed as an appraiser and-not having objected at that timo has waived his right to object now,.. Doubtless` this is another bogey which. Oscar is'aocust.omed to raising.ti STINCHFIELD, MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS Mr. Karl C. Schmidt January 23 Page Two 1 9 4 7 Upon discussing this phase of. the matter with Harold 'the other day, he thought,: and I concurred, that it would relieve us of embarrassment if you Mould. qualify with the Minnesota Board at this time. As we understand it, al- though unofficially,. it Would mean the exPenditure of only $10.00. 1 have no doubt,, of course, that Oscar has made some sort of complaint and thus is the instigator of the matter.. may we hear from you. You rs very truly, ed: Mr4,• Harold Utley . �0 WALNUT 8817 i COUNTRY CLUB DISTRICT SERVICE CO. 4611 Wooddale Ave. MINNEAPOLIS, MINNESOTA June 10, 1946 Mr. C. is Christopher, President, The Edina Village Council, 4801 W. 50th ,Street, Minneapolis 10, Minnesota. Dear Mr. Christopher: JUN 13 1946 VILLA � EDINA FU_..e._..:!:....:...._....._ In our discussion Monday evening about the connection charge for water users in South Harriet Park on Wooddale Avenue, between 52nd Street affi Golf Terrace, on Kellogg Avenue and Oaklawn Avenue between 52nd and 54th Streets, and on Brookview Avenue between Oaklawn Avenue and 53rd Street, it was recommended by.Mre Utley that I write you a letter bring- ing out the points of interests In the area under discussion, between 52nd and 54th Streets, the extensions were completed as follows: Oaklawn Ave., 52nd, St. to 5232 Oaklawn Ave. Jan. 1938 5232 oaklawn Ave. to 53rd St. April 1938 Oaklawn Ave., 53rd St. to 5332 Oaklawn Ave. June 1939 5232 Oaklawn Ave. to 54th St., Oaklawn Ave. July 1940 Kellogg Ave., 52nd St. to 54th St. July 1940 Wooddale Ave., 52nd St. to'Golf Terrace June 1937 Brookview Ave., Oaklawn Ave* to 53rd St. (Alley) Sept. 1938 While the Oaklawn Avenue line was first being built Mr. Sharpe, then Mayor, and Mr. Moore, recorder, were present and the connection charge was discussed. They both assured me that the $50.00 per lot was approved. Later a paragraph approving was contained in one of Mr. Sharpe's official letters to the Country Club District Service Company. This letter was turned over to Mr. Thomas Vennum to use in a court case. He has not been able to find it since the court case was completed. The Village copy of this letter, however, should be in its files. I t was not discovered until some years later that the Village Council failed to pass an ordinance approving aid -of- construction charge of $50.00 per lot. The Country Club District Service Company is asking that the Council pass an ordinance approving the charge of $50.00 per lot in the area set forth above. It is hoped that the Council will see the reasonableness of this re- quest after studying the facts in the matter. The franchise has a clause which states that the Company is entitled to a fair return on extensions. The complaint of Mr. Karl Hauschild in his suit was that he was not Informed prior to connection that a charge was required and also that the Village Council had not approved the charge. He won his case in Judge Bard.wsll's Court. By error in our office he was not billed until nearly six months after he had made the connection. He did not ask our consent in mak- ing his connection. w Mr. C. J. Christopher -2- June 10, 1946 Mr. Lee Whiting knew of the charge in advance and tried to dodge the charge by having the plumber make the connection in spite of a lack of our ap- proval, The only plumbing concern he could get to proceed on this basis was Harris Brothers. They got a Village Permit to open the street, not a permit, to tap the water main. They were about to tap the main when they were advised that they could not proceed before the $50.00 charge had been paid. The sum was paid under protest and suit started. Judge Reed recently decided in his favor, largely because the Village Council had not formally approved the charge. The cases cited above were both handled by G. P. Mahoney. No doubt he will also try to induce others to start suit. There is attached hereto a complete list of the 48 water consumers in the area referred to above. Of these, 43 have paid $50.00 toward water main construction, one paid $100.00, the extra cost of $50.00 being mutually agreed upon because of extension in frozen ground. Four have made no payment ae shown on the list. Two have won court cases largely because the Village had not of- ficially acted on the aid -of- construction charge. A data sheet attached shows the number of water consumers, cost of water main extensions in the area, total contributions in- aid -of- construction, net Company investment,, gross operating revenue, allocated operating costs (except water main depreciation), depreciation of water mains in the area at 1 %, the income from operations in the area and. the return on the net Company investment. This sheet shows that the average return on the investment during the eight years ending with 1945 was only 0.14 %. Had $100.00 been charged instead of $50.00 the return would have averaged 0.10%. In order to have earned 6% per year on the investment the Company could have invested only $132.67, the balance of $8,418.61, or an average of $175.39'for each of the 49 consumers, would have had to be contributed as an aid -of- construction. In this connection it might be stated that the l-ot owners south of 54th Street on Wooddals Avenue, gellogg Avenue, and Oakl.awn Avenue are paying $208+ per lot in taxes for the extension- Anstalled by the Village. Today the _cost would be probably 75% more than this. In order to study the return on a basis of the expected saturation it was assumed that in 1954 there would be 60 consumers connected in the area. The estimated .total contributions would total $2850.00'and the Company net investment would be $5,569.61. The estimated profit of $90.81 would show a return of only 1.63 %. It is assumed a few of the residents would retain their own wells and that a few vacant lots would still exist in 1954. You will realize that in the case of a subdivision which has been sold out by the real estate sponsors, ownership is scattered, many lot owners living out of the city. It is impractical to contact all these owners and to get them to agree to pay a portion of the construction cost of a water main before they are ready to use it. The only way to give service to those desir- ing it is to install the extension and then collect at the time of connection. If a rate differential were to be charged to those who have made no contribution the fair charge would seem to me to be 6% of $5WO, or 75¢ per quarter year. This possibility was discussed.at our meeting last Monday. _ South Harriet Park - lot Addition Water Main Extensions 52nd St. to 54th St. Contribution in Aid of .Construction to June 6, 1946 Remarks Insto in frozen ground Present Date No. Address occupant Contribution Paid 1 5224 Brookview W. W. yocht $ 50.00 Apr. 1, 1942 2 5228 Brookview Harry Lundquist 50.00 Nov. 25, 1939 3 5236 Brookview R. D. MadSOn 50.00 Dec. S, 1939 4 5220 Oaklawn 0. L. Mickelsen 50.00 Mar. 28) 1942 Oct. 20) 5 5224 oaklawn E. Floyd Bell 50.00 Oct. 22) 1941 Oct. 17) 1942 6 5232 Oaklawn K• Be Sorom 100000 June 29) 1939 Oct. 18) 1939 7 .5236 oaklawn As T. Christenson 50.00 Dec. 29. 1939 8 5240 Oaklawn K. K. Wunsch 50.00 Oct. 27, 1939 9 5241 oaklawn H. R. gincell 50.00 June 17) 1939 Sept. 12) 10 Oaklawn Geo. G. Young 50.00 Feb. 7, 1940 11 .5300 5301 Oaklawn James H. Rodger 50.00 Dec.. 12) 1939 Jan. 25) 194o 12. 5304 oaklawn M. J• Johnson 50.00 Dec. 15, 1941 13 5305 Oaklawn Ruth Aygarn 50.00 Nov. 29, 1941 14 5332 Oaklawn John C. Wells 50.00 Mar. 27) 1941 Nov. 15) 15 5336 oaklawn Anton Duoos 50.00 Feb. 9, 1946 16 5348 Oaklawn E. Be Rouser - 50.00 Nov. 19, 1943 17 5351 Oaklawn A. G• Cooke 50.00 Apr. 15, 1946 19 5357 Oaklawn W. H. Little 50.00 Sept. 25, 1945 19 5211 Kellogg C. C. Swanson 50.00 Mar, 14, 1942 20 5221 Kellogg J. A. Hendrickson 50.00 June 22, 1939 21 5224 Kellogg Geo. Be Gaylord 50.00 June 4, 1940 22 5223 Kellogg Frank Be Charles 50.00 June 12, 1941 23 5236 Kellogg John Be Faegre 50.00 Jan. 3, 1940 24 5301 Kellogg Lee, A: Short 50.00 Oct. 16 1941 Aug. 1 ) 1942 25 5304 Kellogg A•.W. Bu:dke. 50.00 Nov..20, 1939 26 .5305 Kellogg 00 0. Myhre 50.00 Mar. 21) 1942 Apr• 17) 1944 27 5308 Kellogg Dr. Harry P. Harper 50.00 Sept. 9, 1943 28 5320 Kellogg Russel Johnson- 50.00 Apr. 2, 1941 29 5337 Kellogg John W. Windhorst 50.00 Feb. 7, 1942 30 5341 Kellogg Lloyd Engeisma 50.00'. Aug. 19, 1940 31 5344 Kellogg V. L. Plain 50.00 Oct. 25, 1945 32 5201 Wooddals W. We Hunter 50.00 July 12, 1939 33 5209 Wooddale 0, E. Brownell 5o.00 Sept. 16, 1939 5213 Wooddale is R. Olson 50.00 Nov. 9, 1941 .34 35 5217 Wooddale E. L. Zonne 50.00 Aug. 19. 1939 36 5221 Wooddale E. E. Quinn 50.00 June 2, 1939 37 5241 Wooddale Arthur C. Holm 50.00 Sept. 9, 1938 39 5245 Wooddale Jackson M. Taylor 50.00 Apr. 2, 1939 39 5309 Wooddale George Kelting 50.00 July 29 1941 40 5313 Wooddale C. F. Hardy 50.00 Apr. 18, 1938 41 5325 Wooddale Fred E. Ryman 50.00 Sept. 26, 1939 42 5329 Wooddale J. R. Mu"liken 50.00 Sept. 26, 1939 43 5333 Wooddale F. J. Seidl 50.00 Sept. 5) 3 ) 1943 44 5409 Wooddale R. E. Johnson 50.00 Oct. 16) Nov. 13) 1939 Remarks Insto in frozen ground -2- Present Date Nos. Address Occupant Contribution ' Paid Remarks. 4 5200 Oaklawn Karl Hauschild None Court Connected 9/ -4/39 (2 lots) 46 5217 Kellogg J. H. Stratton None Refused Connected 9/9/ 47 5305 wooddale A. J. Abplanalp None Refused Connected 11/3/43 48 5316 Kellogg Lee L. Whiting None Court Connected 6/28/4+ TOTAL PA7MZffTS $2250.00 Total No. of Company Net Company Cust. Extension Year in Area- Investment 1938 10 $'4.374.35 1939 21 5.418.47 1940 26 7/291.41 1941 34 9,418.61 1942 39 s,419.61 1943 43 8,418.61 1944 44 .8,418.61 1945 46 8.418.61 1946 21.25 499.49 to June 30 49 9,418.61 1947 575.57 .94.19 1.41 Total.to Total Consumer Net Company Contributions Investment Depreciation $ 500.00 $ 3,974.35 19000.00 4,419.47 1,225-00 6, o66.41 1,625.00 6,793.61 10900.00 6,519.61 2,025.00 6,393.61 20050.00 6,369.61 2,156.40 6,269.61 2,250.00 6,169.61 1945 (59.177.28) (12.475.00). (46,702.28) Ave. per yr. 7.397.16 1,559.38 5.937.7S 1949 1949 1950 1951 1952 1953 1954 (set) 60 $8,41s.61 $2,950.00 $5,568.61 Gross Oper. Revenue 71.82 236.94 5+9.44 723.6o 629.69 661.17 759.23 794.99 4.425.77 553.22 $925.00 3.770.35 591.78 471.29 73.97 $750.00 $84.19 *Allocated operating Costs include all water operating Costs except depreciation on dis- tribution allocated on the customer basis. 63.64 r 7.96 o.i4% $9o.gl 1.63% $15.42 Return Allocated Depreciation Oper. on Net. Ave. Gross Oper.Costs .1% of Total In_ come Co. Inv. Rev. per C $ 109.69+ $ 43.74 $ s1.60 2.1% $ 7.19 396.93 g-ls 204.07 4.6% 11.30 425.69 72.91 5o.94 0.9% 21.10 559.86 84-19 90.55 '1.2% 21.25 499.49 04.19 55.02 o.g% 16.10 575.57 .94.19 1.41 0.0% 15036 535.99 84019 139.05 2.2% 17.24 689.25 E4.19 22.44 0.4% ls.o6 3.770.35 591.78 471.29 73.97 $750.00 $84.19 *Allocated operating Costs include all water operating Costs except depreciation on dis- tribution allocated on the customer basis. 63.64 r 7.96 o.i4% $9o.gl 1.63% $15.42 INITIALS DATE PREPARED. p BY �.� APPROVED BY . a �o �rv-vr J�1-V ISo q-��� 1So�{t4 s o ZS 4•%�'l�b °i�'�v � j �.d� 11r I - a . ,Q0 1.18 �I ISO. LS I ti � - I � �3 y 8!YL.•a a�.l d Lh� �� p Z STINCHFIELD, MACKALL,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C. MACKALL ROBERT M.CROUNSE PERRY R. MOORE THOMAS P. HELMEY LESLIE A.HOLMES 6 DONALD A. HOLLSO M. DANA NIC HOLSON JOHN ".PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN Mr. Harold C. Utley 1204 First National Soo Line Bldg. Minneapolis, Minnesota Dear Harold: ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 December 13 1 9 4 6 flE U III. ERNS T & ERNST 0 MINf4EAP0L;s DEC 16 1946 TAX_ -® ^. - ---------- CASH. _ -- Re: Second Hydrant Rental Action Judge Selover has just entered an order sustaining our emurrer to the complaint in the second hydrant rental action involving the years 1939 to 1945. A copy of the Judge's Order and Memorandum is enclosed for your informatrlion. i The ruling- .by.Judge Selover and his comments regarding the previous Supreme Court decision - should be helpful in convincing Oscar Gaarden that the Supreme Court decision is somewhat final. You will notice that the Country Club District Service Company will be allowed to amend the present complaint only -if the Company can show addit- ional facts which will warrant recovery. We doubt if such facts can b4 produced. Very truly yours, C CHFIELD, Encl. B �PIACKALL, CROUNSE x MOORE 60 qPW County - of U*nnsplas r. rli r M r r r- w1 i a w a W AM r •t -New Country Club :Distriot Zarvrlee Cmpwq, a earporatiou, Plaintiffs V4. Village of Edina, Defendant. �r �. r wr r wit ♦ +� r r r w r r w r r �► h r v DISTRICT, CQURT, Fourth Judistal Distri st. No, 438360. The above entitled xoattar aa=ot en regularly before the undersigned,, one of tho Judges of tbo above zwwad courts on the sixteenth day of Dotober, 1946, for hearing of a general deaturror intsrpos*d by the defendant to the complaint herein. 6t1n0hf1t1ds Xacks11, Crounse Moore appeared for the defend- onts in support of said denurrsrs and VonAugs Neville & Writ" for the plaintiffs in apposition tbarety. The Court havi.ug examined the - pl oading under attacks heard the arguments of counsel and oxaminod their rospeativ o brlefs, the laMt of *b1ch was presented Xorsmber 300 19460 at trbieh time th* atatter %a.s flnally subfe itteds it is hereby ...• DRDY,a B F D I. That said deaaurrer be and tho acme Is hereby in all respect& sgstoi,nsd 2. That the plai.aatiff allays within twenty days after the filing and se"ioe of this order, serve upon oounsei, for the defendant a notir -o of notion for permission to servre' extd file an masndad vomplsint hsrein, if counsel, for: tha plaintiff eats discover and plead facts vblah can properly Form tho basis of ouch amended oomplalnt., D&ted Decouber 120 1946. By the Courts D str at •. AWWRANDUUt In the dotorainatioa ot this naaatter, the-Court Is. dQ71front+e d wi h that docisioU of oUr uprelJaalaR Court* In 'Country club Tai aaitri'at 'er'faico Co. T.Villaage. Or Uina, 214 Minn. 26. Tho so=* garti#s as thsro f aro -hero InvbIvod in aia similar eoxvwrovreray, presenting sixil*r questions of last, un,dor a si allor set of ran ots, di fror#Ag 041y, to the es +A>a7tt, not iar�.orteant horn j . thaatt tike' serviss tor'. -which ro- ;"ory here is sought oaabr* *#s a period of tiro subsequerdt to that for which recovery was Inoffeatually sought in the, prior Action to va+hiah. refer#.za#* has boon aadaa►, aaud' tea 00- furthor extent that Thorpe Brothorx,, eho in1 tinted the *ors vices are _ no 3 ox�er oozuateart+eai vart th �,►1 aaai�ttlPi` esearpvration. . now aa►wa od, controi.Ud and maAaSod exclusively vely by ons, Oscar Gaardon. Plaintiff contends that sinvis 0aardon took over the plaaint►i.1'1" corporntionb ihe �raaal,soz and Induea+:ar ents ,, Initially made by Tharp* trot xers to the purchasers of lots in the Village of Edina# are Aot binning on plointiff in its prose +nt ownerships- amid t-hAt the �3upronae Court deaa lsaion ia;, - for that rcaasoA, not sapplicaable in this aaasof and toot plain- tiff should be allowed to resovaer on the ground of lApliod *r quasi Qontr,&0t.' Tba ditfloutty which Plaintiff •noaunt� or* here is th*t� then lot-owners and the defondaut Village, still- have the aright to rely.. the former on thoproiRisos and induo0a s ats under whic'.1i th.y bought their lots, and the lot ter not only on. such promises *nd, induoomontst. but also on then tor=* of bast traneahlso whioh Lt gave to plaintiff and under vvhloh aaalono plaintift has a , rlght to operate. no further I aas4persblo obsta ols, Uo r*oovaery here is the raaact that rhes �upreaz* Court,a in the decision to wh1oh roforfrtee has 'boon tea, has rsolterd tat. l's TW, th the ehango , +of o- onorsb1p and zimageamont from !Zhorpo Brothers to 0 aardonp and. bassos► defi- S ' -s nicely naaattved any, rigb►t of roaovery by plaintiff under either ','`hose' sl.attors +ill ' havitw, baeo 'present#4 to the D11 trJet a-Oua t and the Supreme court as Issues in then form r oaso., the doci slvn thereon. can. not well be a on- sidorod as 31otume. A ca fui ' #tudy of the _complaint .harein, and At` ' the Suprww *o rt dtaisian, rails to rov#*1 any question of I.Aw laportant here *blob was not covorod and doeided ad- versely to tho plaintiff in that daalsiort. in whiah ail of, the 4uct. cos coa currod, ; Thia. Court must arA . does, follow . the law thus announced am the law 01, this a a;ei T!,A;% =zorandum is horeby - made a part of vbe fore- going order& i s i u SO. WALNUT 8817 COUNTRY CLUB DISTRICT SERVICE CO. 4611 Wooddale Ave. MINNEAPOLIS, MINNESOTA February 11, 19+7 FEB. X x 1941, . H. L----- --- -_.(;�54H._ Mr. H. C. Utley 120+ - 1st National Soo Line Building Minneapolis 2, Minnesota Dear Mr. Utley: In response to your request I am forwar- ding herewith a copy of Mr. Stokke's setup on the book value of the water system together with the accrued depreciation used for income tax purposes as of December 31, 1946. . This information is forwarded because you requested it and not because I believe it is per- tinent in arriving at a fair value of the physical of the water system for sale purposes. As stated to you verbally, utilities frequently use a differ- ent rate of depreciation for income tax purposes than for determining actual property value. The government.allows this on the theory that if a heavy depreciation is used the zero value is reached sooner, at which time higher income taxes will then offset any earlier saving. I have not had the opportunity to check the figures given in the attached statement. OG: ch Encl. Very truly yours, Oscar Gaarden f OOUNTRY CLUB DISTRIOT SERVICE COMPANY OOST OF WATER PLANT -AND EQUIPMENT AND ACCRUED DEPREOIATION AT DECEMBER _310 1946 Lan:? 54th and Halifax Land 50th and Wooddale Buildings Well No. 1 Well No. 2 Elevated tank and piping Pumping equipment Distribution system Water meters Miscellaneous tools and equipment Total N PROPERTY PER BOOKS DEO. 31. 1946 $ 2 458 63 3 000 00 2 194 57 2 579 27 1 950 00 10 053 34 8 709 228 134 449 44 5o6 66 169 97o 3o ACCRUED DEPREOIATION DEO . 31. 194§ $ o 0 991 25 472 68 308 75 4 145 05 30 684 6i 4o4-96- 44 o32_32 n. . . .Tanuary 229.1946- 1 . Country C1'ab .Di' tr ct Service Cop 4.611 Gooddal•e Avenue R*inneaspoliofl lfl\p., i innesota Gentlemen#- Attention,Hro. Oscar Gdurden Confirming our telephone conversation {of this date9 i you will find enclosed, a certified copy of .the councilts 3'anuary 14th mot! on- approving' the location f ok" the pro- .po.sed new well. I. will inform the council that you will proceed with the purchase of -this property. The "Va11-age_ will, nc ypro teed v�ith the planag apeci- ,.f1datione, and const ,6otion of "water main, extensions on �ialifeix. t�venue from 5.2nd,. to. 64th, and extending south, on Trance Avenue .to 5St' -h,', •ard serving t .he ' area east of France Avenue,. When these plans are completed$ I would like to go over them with yo-a, and get any suggestions you might have as to the s3izes'and method of distributione Your:e very trulyv VILLAGE OF EDIRRA BY Village anger PUS, ga. or CERT IF IC ATE STATE OF HINNESOT A Z . sus COUNTY OF HENIWIN) 19 the nndersigneds the duly qualified and- acting Clerk of the ,Village of Edina., Hennepin County Minnesota e 'do hereby certify that the follow=ing is, a true and correct copy of the 'Motion Approving well Site9 passed by the Edina Village. Council January 14p 19460 as set forth in the Yinut es : -:: "Utley moved that the council approve the Proposed well site 'on. the North. side -of. 54th Street between France and Halifax Avenues: Xotion seconded by Hawthorne and carried: ". Village Clerk . Deputy Clerk COUNTRY CLUB DISTRICT SERVICE CO. 4611 Wooddale Ave. MINNEAPOLIS, MINNESOTA VULL"T 9814 March 3, 1947. Mr. Phil W. Smith, lvianager, Village of Edina, 4801 W. 50th St. , C ity. Dear stir. Smith: The following is a legal description of Company's pump hpuse property on W. 50th St. near Woedda,le Ave.: Commencing at a point in S line of State Aid road No.20 distant 327.4 ft. West at right angles from N and S center line of Section 13 thence S parallel - with said N and S ling a distance of 195 ft. thence West at right angles 75 ft. thence N at right angles 175.45 ft. to S line of S�ate Aid road number 20 thence NE1y 77.5 ft. to beginning. ,"Very truly yours, Manager. 7030 11.0.45 IOM 403 Pryartuterd. A..J. CHESLEY, M. D. /� ��X 8ECRETARY AND EXECUTIVE OFFICER Phlisitnt of J$UniWiun �IIiBPrsi #� flItttii�Jtis ;_rinilitTEM�1IICTS 14 October 16, 1946 Mr. Phil Smith City Manager Edina, Minnesota Dear Sir: <ZO HERBERT M. BOSCH , DIRECTOR DIVISION OF SANITATION As you know, we have investigated the proposed well site at 53rd and Halifax Avenue. The site consisting of two 60 -foot lots is a little low at present and should be graded up so that drainage away from the pumphouse toward the street will be established. It is understood .that the well will be located on the lot line between Lots 30 and 31, and 50 feet east of the east street line of Halifax Avenue. We further understand that this will be a residence type pumphouse and that it is planned to obtain 1200 gallons per minute from the unit to be used as a standby. An arrangement should bemade with the owner of the adjacent lot on the south to keep the seer connections on the south half of the lot if possible. May we suggest that plans for the well'and pump- house showing piping arrangement etc., be taken up with this Division in the preliminary stage in order that they may be approved without question when they are formally submitted. Yours very truly, 2� irector,of Sanitation OEB :mab cc: Mr. Oscar Gaarden, 4611 Wooddale Ave., Mpls. cc: Village Council, c/o B. Hawthorne, Clerk, P. 0. 5301, Minnehaha Blvd., Edina cc: Dr. L. M. Campbell, Health Officer 4500 Edina Blvd., Zone 10, Mpls. January 28, 1946 REPORT REGARDING NEW WELL AND MATER. 11A.IN EXTENSION: On Tuesday, January 22, 1946, at 3 :10 P.M., I telephoned Oscar Gaarden at his Northern States Power office and mde inquiry as to the status of the new well. He informed me that he was haling difficulty getting well - drillers and equipment for the new well and that the earliest date for starting the project would be approxima tely six months from the date of our conversation. He had previously informed me that he could purchase a piec of property on the North side of We and.Franae Aven.ues., as a well site, did not recall the exact dimensions assured.me that it was large enough requirements. In.talking to him on the price of th.e property was. high, st 54th Street, between Halifax. from the sum of. ,$2,000.00. He of this property but he to satisfy State Board of Health the 22nd, he stated he felt that but. promised to make the best deal he possibly could and. immediately proceed with the purchase. I . agreed to mail to him a certified copy of the motion passed by th.e Village Council at their. January 14th. meeting, approving the site for the new well. This letter_ was mailed to Kr. Gaarden on `the 22nd. I also asked him if it made any difference to him who con- strutted the mains, and he said that it was agreeable to him to have the Village do- the construction: and assess the cost back as we see fit. Respectfully submitted, Phil W. Smith .1pril 30'* 194117 4 lkrry 0, Frank, O 1 to Y= letter of, zho 7W., xegaqdIa4; the cater, cit ,rcrthe "port of tho Villa,-,o j`J n =W- • iAAch IS W;>aF Ctcd. within the nwt Uvm mkt be glad test- 4uva teU7PhmIO mo VOW ltdr� ti.xdv=s puw.ic utiutitie3 fit" b -C 0 P Y _ Charge to the account of $ CLASS OF SERVICE DESIRED ` DOMIEST111 I CABLE 1211 CHECK TELEGRAM ORDINARY DAY URGENT LETTER RATE T DLX.' D, ACCOUNTING INFORMATION SERIAL DEFERRED NIGHT NIGHT ' LETTER LETTER' Patrons should checA clam oT sry I 'TIME FILED - deeired; orherwLve the mesipe will Abe lnmmiued'aan tNegrom or A. N.' WILLIAMS ordiwryeablegmm. PRESIDENT , Send the following telegram, subject to the terms on back hereof, which are hereby agreed to, FOR VICTORY BUY ' -,WAR BONDS May 82 1947 1 TODAY' LA GRANGE, •ILL. , Perry.. Moore, Attny. 1 Natl': Soo Line Bldg. Mpls.'. :Your suggestion of June 4th okay.' Will contact you latter part of . next week after return from Cleveland to arrange. con- ference. r Karl . Schmidt Of ALL MESSAGES TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS To guard against mistakes or delays, the sender of a message should order it repeated that Is, telegraphed . back to the originating office for comparison. For this. one -halt the unrepeated message race Is charged In addition. Unless otherwise indicated on its face, this Is an unrepeated message and paid for as such, in consideration whereof It Is agreed between the sender of the message and this Company as follows: - '\ 1. The Company shall not be liable for mistakes or delays In the transmission or delivery, or for non- dellvery. of any message received for transmission at the unrepeated - message rate beyond the sum of five hundred dollars: nor for mistakes or delays In the transmission or delivery, or for non - delivery, of any message received for transmission at the repeated - message rate beyond the sum of five-thousand dollars, unless specially valued: nor in any case for delays arising from unavoidable interruption In the working of its lines. 2. In any event the Company shall not be liable for damages for mistnkes.or delays In the transmission or dellvery,ror for the non - delivery, of any message, whether caused by the negligence of Its servants or otherwise, beyond the actual loss, not exceeding In any event the sum of give thousand dollars, at which amount the sender of earh message represents that the message Is valued, unless a greater value Is stated In writing by the sender thereof at the time the message Is tendered for transmission. and unless the repeated-message rate is paid or agreed to be paid, and an additional charge equal to one -tenth of one per cent of the amount by which such valuation shall exceed five thousand dollars. 3. The Company Is hereby made the agent of the sender, without liability; to forward thiq message over the lines of any other company when necessary to reach.Its destination. 4. Except as otherwise Indicated in connection with the listing of Individual pplaces In the filed tariffs of the Company, the amount paid for the transmission of a domestic telegram or an incoming cable or radio message covers Its delivery within the following llmlts: In titles or towns of 5,000 or more inhabitants where the Company has an office which, as shown by the filed tariffs of the Company, Is not operated through the agency of a railroad company) within two miles of any open main or branch office of the Company; In cities or towns of 5.000 or more in:abitants where, as shown by the filed tariffs of the Company, the telegraph service Is performed through the agency of a railroad company. within one mile of the telegraph once; in cities or towns of less than 5.000 inhabitants In which an office of the Company Is located, within one -half mile of the telegraph office. Beyond the limits above specified the Company does not undertake to make delivery, but will endeavor to arrange for delivery as the agent of the sender, with the understanding that the sender authorizes the collection of any additional charge from the addressee and agrees to pay such additional charge 1 f It Is not collected from the addressee. There will be no additional charge for deliveries made by telephone within the corporate limits of any city or town In which an office of the Company is located. 5. No responsibility attaches to this Company concerning messages until the same are accepted at one of Its transmitting offices; and If a message is sent to such office by one-of the Company's messengers, he acts for that purpose as the agent of the sender. I , B. The Company will not be liable for damages or statutory penalties In the case of any message except an intrasrate message In Texas where the claim Is not presented in writing to the Company within sixty days after the message Is 0led with the Company for transmission, and In the case of an intrastate message in Texas the Company will riot be liable for damages or statutory penalties where the claim Is not presented in writing to the Company within ninety-five days after the cause of action. if any, shall haveaccrued; provided. however, thatneltbeR of these conditions shall apply to claims for damages or overcharges within the purview of Section 415 of the Communications Act of 1934. _ 7. It Is agreed that In any action by the Company to recover the tolls for any message or messages the prompt and correct transmission and delivery thereof shall be presumed, subject to rebuttal by competent evidence. 8. Special terms governing the transmission of messages according to their classes, as enumerated below, shall apply to messages In each of such respective classes In addition to all the foregoing terms. , _ 9. No employee of the Company Is authorized to vary the foregoing. - 10.42 _ e t - ° CLASSES OF SERVICE DOMESTIC SERVICES CABLE SERVICES t TELEGRAMS ORDINARIES A full -rate expedited service. The standard - service, at full rates. Code messages. consisting of 5- letter groups only, i at a lower rate. DAY LETTERS DEFERREDS A deferred service at lower than the standard telegram rates. Plaln- language messages, subject to being deferred in favor of full -rate messages. , SERIALS Messages sent In sections during the same day. NIGHT' LETTERS , Overnight plain - language messages. NIGHT LETTERS r URGENTS Accepted u to 2 A.M. for delivery not e than the following morning at rates substantially PoNet than the Standard telegram m or or day letter rates. ' Messages taking precedence over all Dther messages except government messages. STINCHFIELD, MACKALL, CROUNSE & MOORE FREDERICK H' STINCHFIELD HENRY C. MACKALL ROBERT M. CROUNSE . PERRY R..MOORE THOMAS P. HELMEY LESLIE L.ANDERSON DONALD A. HOLMES JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN STEPHEN G'. PALMER III ' I ; Mr. Harold Utley Ernst & Ernst First Na- tional -Soo Line Building Minneapolis, Minnesota Dear Harold: I ELEVEN HUNDRED FIRST NATIONAL-SOO LINE BUILDING I MINNEAPOLIS 2 II May 6 19 47 k I Herewith copy of wire to Schmidt today, this after discussion with assignment clerk. This was best as- signment I could get but had it left tentative so to be sure to fit into Schmidtls plans. I intended to discuss this date with you but you were absent from your office and I felt I had to act today. Yours very truly, Enclosure f Charge to the account of STINCSFIELD, MACKALL, W: UUiV--jz cc ,:,uurcm $ CLASS OF SERVICE DESIRED , • DOMESTIC CABLE 1211 CHECK TELEGRAM ORDINARY , DAY URGENT LETTER RATE Wj`�j S T E IJDLX . ACCOUNTING INF6RMATION SERIAL DEFERRED NIGHLETTER 1 NIG LETTER - Pmmas shoahl check con of x � e - UNIO�N TIME FILED desired; otherwise the medaago will be trarumitted aso telegram or A. N. WILLIAMS ordinary cablegram. PRIES IDENT Send the following telegram, subject to the terms on back hereof, which are hereby agreed to Minneapolis, Minnesota FOR VICTORY May ' 6„ 1947 WAR BOldDS TODAY - Mr. Karl Schmidt _. 4200 Grove Avenue Western Springs, Illinois Impossible to continue case over term to September.. Finally succeeded in postponing trial to tentative date of June 4th or -thereabouts. ,Cannot get a later date as term ends June, -13th. ✓ray Please '-wire your preference of date, if any. Vie cannot defend- ,against Gaarden's attack your figures without you. Expect case to last two for pre.aration to three-days. 'If necessary I can come to Chicago.day or so/pto save ,you time here. Utley and council join me in insisting you be present. Please answer re date.pre €erence immediately ao I may advise clerk of court immediately. 11:15 A.M. cc: Mr. Utley ALL MESSAGES TAKEN BY THIS COMPANY 'ARE SUBJECT TO THE FOLLOWING TERMS; To guard agalnst mistakes or delays, the sender of a message should order it repeated, that is, telegraphed back to the originating office for comparLson.- .For tills, one -half the unrepeate message rate le charged In addition. Unless otherwise Indicated on Its face, this is an unrepeated message and paid for as such, in consideration whereof it is agreed between the sender of the, message and this Company as loilows: 1. The Company shall not be liable for mistakes or delays In the transmission or delivery. or for non' - delivery. of any message received for transmission at the unrepeated - message rate beyond the sum of five hundred dollars: nor for mistakes or delays In the transmission or delivery, or for nondelivery, of any message received for transmission at the. repeated - message rate beyond the sum of five thousand dollars, unless specially valued: nor in any case for delays arising from unavoidable Interruption In the working of its lines. 2. In any event the Company shall not be liable for damages for mistakes or delays In the transmission or del [very, or, for the non - delivery, of any message, whether caused by the negligence of Its servants or otherwise, beyond the actual loss, not exceeding In any event the sum of live thousand dollars, at which amount the sender of each message represents that the message Is valued, unless a reater value is stated in writing by the sender thereof at the time the message Is tendered for transmission, and unless the repeated- message rate is paid or agreed to be paid', and an additional charge equal to one tenth of one per cent of the amount by which such valuation shall exceed five thousand dollars. - 3. The Company Is hereby made the agent of the sender, without liability, to forward this message over the lines of any other company when necessary to reach Its destination. - 4. Except as otherwise Indicated in connection with the listing of Individual pplaces in the filed tariffs of the Company, the amount paid for the transmission of a domestic telegram or an incoming cable or radio message covers Its delivery within the following limits: In c,ties or towns of 5,000 or more Inhabitants where the Company has an office which. as shown by the filed tariffs of the Company. Is not operated through the agency of a railroad company, within two miles of any open main or branch office of the Company: In cities or towns of 5,000 or more Inaabllants where, as shown by the filed tariffs of the Company, the telegraph service Is performed through the agency of a railroad company. within one mile of the telegraph office; In cities or towns of less than 5.000 Inhabitants In which an office of the Company Is located, within one -half mile of the telegraph office. Beyond the limits above specified the Company does not undertake to make delivery, but will endeavor to arrange for delivery as the agent of the sender, with the understanding that the Sender authorizes the collection of any additional charge from the addressee and agrees to pay such additional charge 1 f it Is not collected from the addressee. There wNl be no additional charge for deliveries made by telephone within the corporate limits of any city or town In which an office of the Company is located. 5. No responsibility attaches to this Company concerning messages until the same are accepted at one of its transmitting offices: and if a message is sent to such office by one of the Company's messengers, he acts for that purpose as the agent of the sender. 6. The Company will not be liable for damages or statutory penalties In the case of any message except an Intrastate message In Texas where the claim Is not presented In writing to the Company wlthln sixty days after the message Is tiled with the Company for transmission, and In the case of an Intrastate message in Texas the Company will Prot beltable for damages or statutory penalties where the claim Is not presented In writing to the Company within ninety -five days after the cause of action. If any, shall haveaccrued: provided, however, that neither of these conditions shall apply to claims for damages or overcharges within the purview of Section 415 of the Communications Act of 1934. , 7. It Is agreed that in any action by the Company to recover the tolls for any message or messages the prompt and correct transmission and delivery thereof shaltbe presumed, subject to rebuttal by competent evidence. 8. Spectal.terms governing the transmission of messages according to their classes, as enumerated below, shall apply to messages in each of such respective classes fp addltlon to all the foregoing terms. - 9. No employee of the Company Is authorized to vary the foregoing. 10.42 CLASSES OF SERVICE DOMESTIC SERVICES TELEGRAMS 'A full -rate expedited service. . DAY LETTERS A. deferred service at lower than the standard telegram rates. SERIALS ' Messages sent to sections during the same day. NIGHT LETTERS Accepted u to 2 A.M. for delivery not earlier than the following morning at rates Substantially Power than the standard telegram or day letter rates. CABLE SERVICES , ORDINARIES A The standard service, at full rates. Code•messages. consisiing of 5- letter groups only, at a lower rate. . DEFERREDS Plain- language messages. subject to being deferred In favor of full-rate messages. NIGHT LETTERS Overnight plain - language messages. ' URGENTS Messages tatting precedence over all other messages except government messages. t A , 1 ,I 1 ,1 � t A , i 1 • , ,1 C 0 P y Charge to the account of $ CLASS OF SERVICE DESIRED i DOMESTIC CABLE 1211 CHECK In TELEGRAM ORDINARY JEJ _D N DAYLETTER URGERATE ACCOUNTING INFORMATION SERIAL DEFERRED , NIGHT- NIGHT LETTER LETTER Patrons should ch.k dace d ee TIME FILED desired: athmvive the message will�6e tnrumitled matNegram ev A, N. WILLIAMS ordinary cablegram. PRESIDENT Send the following telegram, subject to,the terms on back hereof, which are hereby agreed to FOR VICTORY BUY LaGrange, Illinois WAR TODAYDS May 1, 1947 Perry Moore, Attorney 'First National -Soo Line-Building Minneapolis, Minnesota Sorry but impossible for' me to •be ,in Minneapolis on Ninth. 1 Have been unable to change_ appointment in.Cleveland on that date. Am terribly overloaded' until after July, first with project that must be completed by then or result in,very'ex- pensive production l'o'sses.' Gantt you get` along without me KARL SCHMIDT .Received by Mr. Moore on May 2, 1947. � 1 ALL MESSAGES TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS: To guard agalnat mistakes or delays. the sender of a message should order it repeated that Is• telegraphed back to the originating office for com arlson. For ihls, one -half th unrepeated .message rate is charged In addition. Unless otherwise Indicated on Its face, this is an unrepeated message and paid for as such, in consideration whereof It la agreed between the'sender of the message and tills Company as follows: I. The Company shall not be liable for mistakes or delays In the transmission or delivery, or for non -delivery, of any message received for transmission atthe unrepeated- message rate beyond the sum of five hundred dollars: nor for mistakes or delays In the tranamJSsion or delivery.. or for non -delivery, of any message received for transmission at the repeated - message rate beyond the sum of five thousand dollars, unless specially valued; nor In any case for delays arising from unavoidable interruption In the working of Its lines. 2 Inany event the Company shall not be liable for damages for mistakes or delays in the transmission or delivery, or for the non - dellvery, of any message. whether caused by the negligence of its servants or otherwise. beyond the actual loss. not exceeding in any event the sum of live thousand dollars, at which amount the sender of each message represents that the message is valued. unless it greater value Is stated In writing by The sender tbereof at the time the message Is ten,;ered for transmission, and unless the repeated- message rate Is paid or agreed to be paid, and an additional charge equal to one -tenth of one per cent of the amount by which such valuation shall exceed five thousand-dollars. . 3. The Company Is hereby made the agent of the sender, without liability, to forward this message over the lines of any other company when necessary to reach Its destination. 4. Except as otherwise indicated In connection with the listing of Individual places In the filed tariffs of the Company, the amount paid for the transmission of it domestic telegram or an Incoming cable or radio message covers Its delivery within the following limits: In cities or towns of 5,000 or more inhabitants where the Company has an offlee which. as shown byy the flied tariffs of the Company, is not operated through the agency of a railroad company, within two miles of any open main or branch offlre of the'Company: In cities or towns of 5.000.or more Inaabitants where, as sbown by the hied tariffs of the Company, the telegraph service is performed through the agency of a railroad company within one mile of the telegraph office: In cities or towns of less than 5.000 Inhabitants in which an office of the Company is located, within one -half mile of the telegraph office. Beyond the limits above specified the Company does not undertake to mnke delivery, but will endeavor to arrange for delivery as the agent bf the sender, wlth.the understanding that the sender authorizes the collection of any additional charge from the addressee and agrees to pay such additional charge if It Is not collected from the addressee. There will be no additional charge for deliveries made by telephone within the corporate limits of any city or town In which an office of the Company is located. 5. No responsibility attaches to this Company concerning messages until the same are acceptkd at one of Its transmitting offices; and If a message to sent to such office by one of ' the Company's messengers, he aeta for that purpose as the agent of the sender. 0. The Company will not be liable for damages or statutory penalties in the case of any message except an tntrasrate message In Texas where the claim Is not presented In writing to the Company within sixty days after the message Is flied with the Company for transmission. and In the case of an Intrastate message in Texas the Company will not be liable for damages or statutory penalties where the claim is not presented In writing to the Company within ninety -five days after the cause of action. It any, shall have accrued; provided• however• that neither of these conditions shall apply to clalms for damages or overcharges within the purview of Section 415 of the Communications Act of 1934. 7. It Is agreed that In any action by the Company to recover, the tolls for any message or messages the prompt and correct transmission and delivery thereof shall be presumed, subject to rebuttal by competent evidence. g. Special terms governing the transmisslon.of messages according to their classes• as enumerhted below, shall apply to messages in each of such respective classes la addition to all the foregoing terms. 9. No employee of the Company Is authorized to vary the foregoing. 10.42 CLASSE + DOMESTIC SERVICES . TELEGRAMS A full -rate expedited service. DAY LETTERS A deferred service at lower than the standard telegram rates. SERIALS ' "Messages sent in sections during the same day. NIGHT LETTERS Accepted up to 2 A.M. for delivery not earlier than the following morning at rates substantially lower than the Standard telegram or day letter rates. 1 , S OF SERVICE CABLE SERVICES ORDINARIES The standard service, at full rates. Code messages. consisting of 5- letter groups only, at a lower rate. DEFERREDS Plain - language messages, subject to being deferred In favor of full -rate messages. NIGHT LETTERS Overnight plain - language messages. URGENTS Messages taking precedence over all other messagee except government messages\ I t 1. N STINCHFIELD, MACKALL, CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C. MACKALL . ROBERT M. CROUNSE PERRY R. MOORE - THOMAS P. HELMEY LESLIE L A.HOLMES - DONALD A. HOLM ES JOHN M, PALMER FLOYD E. NELSON EDWIN P. CHAPMAN ROBERT W. DYGERT DONALD A. MORKEN STEPHEN G. PALMER III Mr. Harold C Utley Ernst .& Ernst 1204 First.National -Soo Line Building Minneapolis, Minnesota Dear Harold: ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS 2 April 24 1 9 4 7 You request a statement concerning matters involving the Country Club District Service Company: 1. The original suit by the Country Club District Service Company against the Village for $80,000.00' for alleged hydrant rental. The Village counterclaimed alleging that the Service Company did not own the. original water system mostly north of 50th Street. The Supreme Court agreed with the Village. This had the effect of declaring. that the Country Club District Service Company was not the owner of a substantial part of the whole system. This pro -, ceeding is closed. 2. Gaarden continued to charge water rates to residents based on his alleged ownership of the entire system, disregarding the Supreme Court's declaration that he owned none of the so- called original system. Pursuant to the franchise and with expert advice, the Council valued the-property of the company and reduced the rates to be charged the users to accord with a reasonable return on the property owned by him, excluding, of course, the property - owned by the Village. The Service Company has appealed from this determination to the District Court. The case is now , set for trial on May 9, 1947. The only question is whether the rates fixed are just. and reasonable. STINCHFIELD, MACKALL,CROUNSE & MOORE Mr. Harold C. Utley April 24 Page Two 1 9 4 7 3. Mr. Gaarden commenced a suit for $22,770.25 for hydrant rental alleged to accrue since March 25, 1939 - the date of the commencement of the original action first above mentioned. We interposed a demurrer .which has been sustained by the Court. This disposes of this action without trial. 4. Pursuant to the franchise the Company and the Council have appointed appraisers for the purpose of arriving at a purchase price for the Village. This report has been made but,-,`Mr -.- Gaarden objects thereto on several grounds. The Village also objects to the price fixed by the appraisers. This matter is still pending. The Village is not bound by the appraisers' report and it.may disregard the same, appoint appraisers again or institute an ordinary condemnation proceeding. I trust you may get sufficient from the above to accompany your financial report:. Yours very truly, May 9, 1947 Country Flub District Service Co. 4611 Wooddale Avenue Edina, Minnesota . Attention Mr. Oscar Gaarden Gentlemen: On May 5, 1947, an inspection was made -of your water department by Inspector Leinfelder of this diitision, and you are hereby notified to comply with the following order: Provide a safety cage for water tank ladder as per specifications attached. As soon as the above order has'been complied with, kindly advise this-office, Yours very truly, INDUSTRIAL COMMISSION OF MINNESOTA BY._ Chief3 Div. of Accident Prevention ATE: NC encl.-- Note: Mir-. Leinfelder told the Tillage Office today, that Mr. G:aarden is carrying no Compensation Insurance on his employees, and has been given a Special Order by the Indtstrial Commission to obtain such a policy at once. a.- /V V,-A - a ,o %J. ///n L1L22 4) -o e) - IEY)° n c h c-.I& a re7n c r : h r P/_s dz c c"R s l -e- s Pa e'l /07-4/— P 14/ -6 rte. le JT od 0 . �CA4- L h (Tn l�7 t mil/ ��/ r - 9�s'� /__�� /_/ :.A2 � ll� oi `, _, . �� �_ i ,. � � r _ I � � � i��i� } , � � �j �, :i I . ! , s� �� �. � � �,. , i � . t � �! �� ; .:.� ., ,. _ , f. -i i � +. j ��� � .t., .f � � � i := I � � � � �� ;�� ' -. I ; I � � i " � Ii � � i I �.a � i �._' � i .�� ►� ,, � �� �� .:_ :. { i I� i� 'i -� III i �j !, I ,. � � r _ I � � � i��i� } , � � �j �, :i I . ! , s� �� �. � � �,. , i � . t � �! �� ; .:.� ., ,. _ , f. -i i � +. j ��� � .t., .f � � � i := I � � � � �� ;�� ' -. I ; I � � i " � Ii � � i I �.a � i �._' � i .�� ►� ,, � �� �� .:_ :. { 10 81t44MU w1th MW acne: a *LIB MOW 30* Aft Ch"Ims and ng talltng IT o 10ith Ir web 01- ` `t ton 41-4 valve *e , : *co *.vw qp"- std out C 490 r46 'u ° e1wq tfur *old *- tw ,; -en- •,,rrazSi�/1 iiaP, fieftot Bqqe _ dkaln . +� ratAaae of ON fiver valve not �JGUW lg to bottarl '�". fill with *elms auh r-Oa F*rrulfs drIven too far aw+'� 474*� Ott 450,66 �ri,4: �� ��,,yy vo off un al�iF�+:s� - -- overntllw, unat now o :�.� �� e * lzz�0 au bwarants Hydrontc In Oountry a. ub are In v"7 poor _ U * MM A A` OU 111HIL SAMT April 15, 1946 Copies to Schmitt, Hagestad & Thompson - April 151 1946, f\� \ I HYDR-Al\TTS l-'EEDII,TG REPAIR .APRIL, 1946 4517 Bruce l 4506 Summyside 4609 IIOr -eland 4511 Edina Blvd. 4617 Edina Blvd. 4623 boddale Corner of Sffboddale & Bridge i 4515 Drexel I 4637 Casco 4619 Casco - -Out Completly 4531 Casco 4517 Casco 4901 Arden 4531 Arden 4515 Arder. TAIKE ITARC., 149194;6 Philip Bailey Fire Chief l " STATEMENT RELATING TO PROPOSED WATER WORKS REVENUE BONDS VILLAGE OF EDINA, MINNESOTA VILLAGE OF EDINA- The Village of Edina is located immediately.Southwest of and adjacent to the City of Minneapolis. In area it comprises an entire township which_ has been organized and is operated as a Village under Minnesota general Statutes. The population of the entire Village is approximately 81000, and the assessed valuation of the Village in 1946 was $4,359,500.00. The principle development of the area, as a residential com- munity, began, in 1923 and 1924 with the development of the Country Club District by Thorpe Bros. of Minneapolis, by whom the original water works system in the Village was installed, in connection with that development. The Country Club District as well as the South and West of the original development, finest residential areas in the United States. ably with such areas as Shaker Heights in Cleve Country Club District of Kansas City, Missouri, original development was modeled. a substantial area to comprises one of the It compares very favor - land and with the on which much of the The area served by.the water works hereinafter described is occupied largely by highly successfiul. business and professional people employed in Minneapolis and adjoining suburbs. Business conducted within the Village is limited to a rela- tively small, but high grade, shopping area centering about the corner of France Avenue and Fiftieth Street and occupying approximately three square blocks and a few smaller developments in various parts of the Village.. WATERWORKS The original waterttorks system serving the Country Club District consisted of a distribution system supplied with-water pur- chased wholesale from the City of Minneapolis together with a 75,000 gallon elevated storage tank located near FiR ieth Street and Woodale Avenue. The franchise issued to Thorpe Bros. was held in the name of the Country Club District Service Co. In 1935, control of this company and the franchise were acquired by Mr. Oscar Gaardin, under whose management two deep wells were drilled, pumps and pump houses were installed and substantial extensions of water mains comprising the distribution system were builtti Between 1940 and the present date a number of water main extensions were built by the Village and financed by.'special assess- ments against the benefited property, although service for such extensions was provided by the Country Ciub- District Service Co. 1 WATERWORKS (Cont'd) As a preliminary step to the purchase of the property from the Country Club District Service Co.. the Village Council caused an appraisal to be made of the property owned by the Country Club District Service Co., as well as of certain other portions of the original waterworks system the ownership of which was disputed by the Village. On June 3, 147, agreement was reached between officers of the Country Club District Service Co. and the Village Council regarding the purchase of the Service Companies properties for the sum of $133,500.00. The tabulation below summarizes the principle items compris- ing the total waterworks system in the Village of Edina which serves approximately 50% of the residences or some 4,000 people: 1 - 75,000 gallon elevated tank on 100-ft. tower * 3 - Deep wells and-motor driven deep well pumps * 2 - Pump houses Necessary real estate for above distribution system consisting of: 10,355 ft. - 8" CI main 649490 ft. - 6" CI main 3,872 ft. - 4" CI. main 354 ft. - 2" CI main 831 ft. - Miscellaneous small galvanized iron main 134 Hydrants The entire distribution system is adequately, although not abundantly valved, permitting reasonable sectionalizing of the system for main- tenance work. One of the three wells* was completed early in June 1947 near 54th Street and Halifax Avenue by the Country Club District Service Co. The necessary pump and its installation are included in the purchase price although.installation of the pump has not been completed at this time, pending necessary electrical connections. The necessary pump house* for this equipment is not included in the purchase price but will be built from the proceeds of the proposed issue of revenue bonds. -2- WATER SUPPLIES Wati supply in the The approximately at an average ?r is obtained from deep Jordan Sandstone. quality of the water is 15 1/2 grains per gallon of approximately 48 °F. wells driven to an abundant excellent with a hardness of and is delivered by the pumps One small area is served with water purchased wholesale from the City of Minneapolis at rates somewhat in excess of those paid within the Village. It is expected that this area will be connected to the Village Distribution System in the near future. The total purchase of water in the year 1946 amounted to only $568.78. The combined capacity of the two present wells is 2,200 gallons per minute which with the overhead storage has been ample to date to take care of all demands. The.maximum observed demand is reported by Mr. Gaardin to have been approximately 1,900 gallons per minute. The new well at 54th and Halifax Avenue will have a . capacity of 1 200 gallons per minute, thus increasing total capacity by more than �Of. There have been some complaints of low pressure in certain areas during peak use seasons. It is expected that this shortcoming will be largely corrected by the installation of the new well and pump, by providing a source of supply near the area in which the complaints have originated. It is expected that this new well will also provide for reasonably expected growth for some years to come. It is probable however that within five to ten years at least one additional well and additional elevated storage for adequate fire protection will be required. The.cost of such additions should not exceed $50,000.00, and if required will be financed by additional revenue warrants that will be easily amortized by the increased demand and revenue. -3- VALUE OF PROPERTY . The tetal value of the physical property which will comprise the Village Water system as of June 30, 1947 is estimated as follows: PROPERTY FROM COUNTRY CLUB - DISTRIUT—EURVICE CO. On the basis of reproduction cost as of March 1, 19469 including additions during 1946 and 1947, at cost: Original distribution system Additions to distribution system Production and supply PROPERTY FROM VILLAGE Distribution system - at cost SUMMARY �Lana- Buildings Wells and pumps Distribution system Tank and tower TOTAL Reproduction Reproduction Costs and Costs as of Additions 3 -1 -46 plus Adjusted to Original Additions 6 -30 -47 for Cost at Cost Depreciation $ 589656.88 $ 781155.00 $ 53M2.61 68,696.48 40.8q8 * 44 $1689211. 0 90,166.60 6 120.08 224,441.66 81, . 71 17, �8o 42._ 96_ $173,416.2b F8,283.56 892 641047-68 2 61495-36 X322,72 .24 2 9,463.96 - ----- - - - - -- ----- - - - - ----- - - - - -- ---------- ----- - - - - - -- - ----- - - - - -- $ 5,200.00 2,124.42 25,112.02 22,684.92 374.00 $266,495.36 $ 5,400.00 29997.63 34, 55.80 266 , , 5A.,16 13 x318.6 5 $322,725.24 $ 5,400.00 2059.42 59.42 269239.72 231,669.00 _._3sZ9 5. 82 $269,463.96 It will be noted that the above-figures for reproduction are based on an appraisal as of March 1, 1946,-and cost for additions during the remainder of 1946 and 1947 for property acquired from the Sertrfce Co., and at cost for property built by the Village. Reproduction as of the present time would, no doubt, be ten to fifteen per cent higher. CONNECTED METERS There are at present'lP07 connected meters. The existing distribution system and extensions now.under construction will serve 411 vacant lots and 58 potential consumers now served.by private wells. Construction has been started or permits issued for 18 new.homes which will soon call for water connections. A review of growth ever the past ten year attached Exhibit I, shows an average year. During the war there was, of average increase would normally have annual increas course, little been much more. s, as shown e of 55 me growth so on the ters per the For purposes of projecting future income we have assumed an average yearly increase of 50 meters. `�t... NINGS .Exhibit I attached shows in detail the operating costs of the water works system for the past ten years as derived from audited annual reports of the Country Club District Service Co. The estimated annual operating expense for a normal year is also detailed in this Exhibit and is derived.fr.om a study of the ten year operating record during which time existing rates have been maintained. The average annual gross revenue per meter for the ten year period has been $22035. The average annual operating profit before interest and depreciation,charges has been $10.18. Some economies can be-expected under municipal operation due to the fact that much of the supervisory and c1brical work can be handled by employees whose .time is charged in part to other.Village functions. In estimating income available from future operations revenues of $10.00 per meter per year as available for debt service have been assumed. It should be noted that during the last five years, rainfall has been substantially above normal so that the net earnings for those years have been somewhat less than for the ten year period which it is believed provides a more dependable average. Expenditures by the Company for service on the consumers premises, such as meter repairs and maintenance, have been an increas- ingly substantial item. Inasmuch as meters are owned by the customers it will be the policy of the.Vil,lage,'to charge reasonably for such service. _FINANCIAL REQUIREMENTS The Village contemplates that an open -end issue of Revenue Bonds in the amount of $150,000 will provide sufficient funds for the purchase of the property of the Country Club District Service Co., such capital improvements as are necessary at this time, as well as a moderate amount of working capital. The proceeds of the sale will be applied approximately as follows: Purchase of Country Club District Service Co. property .................... ................:. $133,500.00 Reconditioning of hydrants and .... •. 11500.00 Reconditioning of Fiftieth Street main............ 500.00 New pump house and landscaping. 59000.00 Sa�fat'�4,5' ladder on tank and miscellaneous.•....... •• 19000.00 Appraisal and acquisition expense ....... .•.••.••°. � 31500.00 Working capital .... .........•.............•....... ,000.00 $150,000.00 Future.ext- ensions of.the water mains will be built by the Village and financed by special:assessments. -5- RATE SCHEDULE The present rate,which_ has been in use by she Country Club District Service Company for a number of years, is 17¢ per 100 cu. ft. gross less 10% .or 15.4 per 100 cu. ft. net, which net amount is ap- proximately equal to 20 1/2¢ per 11000 gallons. The Village contem- plates no changes in rates which would have the effect of reducing the net earnings in any material amount or which would jeopardize the maturity and interest requirements for the proposed bonds. The Village does, however, believe that a more scientific and equitable schedule of rates can be worked out to encourage an increase in con - sumption and possibly result in an increase in net earnings. Such a schedule would in all probability.embody (1) a flat monthly charge per, meter (2) a rate per 1,000 gallons for normal household use based on the winter quarters at a lower rate than now charged and (3) a lower rate for abnormal use, to encourage increased use of water for sprinkling and cooling. Such a study is to be undertaken and, if feasible, a revision of the rate structure-along the above lines will be made. MANAGEMENT It is the intention of the council to place the management of the utility in charge of present employees who have had experience in the.operation of water systems. The council also feels that the operation of the utility should follow the same principles and basis of costs and charges for services as would normally be followed in a privately operated system. These policies and basis of charge for various services are now under study. The council is investigating the feasibility f--,f placing the general direction of the utility under a Commission, although no con- clusions have been reached. APPROVING OPINION AND BONDS Proceedings incident to the proposed revenue bond issue are being directed by Mr. John Windhorst, Village Attorney with the assistance of the firm of Dorsey, .Colman, Barker, Scott_ & Barber. An approving opinion by the latter firm will be provided the purchaser of the bonds, and bonds will be printed at the expense of the'Village. -6- SUI.1 RY OF OP�RaTING COSTS (Before Interest, Depreciation, and Expanse of Litigation) COUNTRY CLUB DISTRICT 11HVIC i; CO. PO'uJER AND PUMPING Operating Labor Supplies and Expense. Maintenance Power Purchased Watcr Purchased Sub -Total DISTRIBUTION_ EXPENSE Operation of Distribution Services Maintenance Services on Customers'Premises Sub -Total ACCOUNTING A.ND COLLECTIONS Meter Reading Salaries and Wagos Payroll Taxes Miscellaneous Office Rent Sub -Total ADLINISTRATIVE AND GENERAL Salaries and 14ages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue dilater Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Metcr(a) Operating Profit'Per Meter (a) (a) Slide Rule Calculations Yt1RS _ 1937 i 1938 1939 1940 _ 1941 21.00 22.00 6' 41.00 -0- 236.25 166.88 192.68 140.91 106.80 150.68 24.38 77.05 114.47 117.36 87.61 1,938.20 10611.80 1,854.75 2,063.00 21554.00 -0- -0- 64.52 179.64 342.7 ;)2,150.461, 90 .532, 215.65 :;�2, 466..80 v3, 371.31 42.63 203.20 32.74 173.40 290.31 646.22 114.31. 70.59 835.05 266.18 -0- 230.72 548.27 103.62 103.61 . 1,112.0 ��0 .16 85 3 688.85 7`7206-.9-5 375.00 50.00 -0- 26.34 45.11' 125.00 140.00 140.00 150.00 160.00 795.00 805.00 787.50 800.00' 11815.00, 26.34 40.00 29.14 -0- -0- 110.29 218.12 211.74 649.59 785.73 -0- 480.00 504.00 -0- -0- X1,056.63 :�1,' .12 '1,674.38 �1 SS 9 59 2,760.73 810.00 907.00 854..70 11329.25 1019.00 69.25 9.30 71.69 107.45 15.24 107.77 . 172.79 140.84 151.75 155.64 10.00 80.00 375.00 50.00 -0- 26.34 45.11' 59.10 91.02 42.57 _20.00 55.00 77.50 91.70 106.25 (180.20 (164.53 238.73 265.10 221.00 ( -0- ( -0- 10.31 1;00 4.41 -0- "p1,223.56 ,T " -0- -0- X1,433.73 - 1,827.87 -0- ti�2,087.27 -0- ti1;864.11 591.04 1,055.08 1,1366"24 461 506 568 686 832 $12,21748 11,154.04 13,276.10 1502404 20,022.89 f 11 0 5-568.64 6515.89 8J20 92.0 7,128.38 P5,585.40 6p760.21 47,003.54 101030.85 ... 26.50 22.00 23.40 22.35 24.20 15.20 11.03 11.90 10.21 12.05 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stogk Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter( Operating Profit Per Meter (a) (a) Slide Rule Calculations 225.00 224.50 200.10 339.05 - 349.50 2,470.00 22633.75 22263.75 2,175.00 2,760'.00 -0- -0= -0- -0- -0- . 800.34 8 4.54 879.01 817.61 847.06 -0- -0- -0- -0- -0- 3,4� 95:34 692.79 �v3, 3 42.86 70,331.66 3, �. 53 1,541.25 1,500'.00 1,594.50 1,791.50 2,444.00 94.08 32.56 - 6.00 9.38 19.29 33.06 21.25 21,i,60 21.60 21.75 25.00 25.00 -0- -0- 156.00 23.31 .44.97 40.4? 42.01 45.48 111.25 123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 (.10.00 2.30 12.23 ( -0- ( -0- ( -0- • 12 0 -0- -0- -0- ; 22506.30 980.21 31,776-.82 7, 9'` 40; 7474 + 2,696-52 . 11388:61 10121.90 12224.48 1,-481.47 2,010.72 895 904 917 923 956 (1007 6/10/47) ;x18,238:71 18,169.34 19,332.33 19,036.27 23,929.03 11,572.33 11,051.40 11 2. 1181.10 882.68 ,6 66 .38 0 7,117.94 .,159-36 ?7,555.17 0;'9,046-35 a)$ 20.40 $ 20.20 $ 21.10 20.50 JP 25.00 �v 7.25 7.84 8.91 8.18 9.46 SUM1,1ARY OF OPERA^1ING COSTS (Before Interest, Depreciation, and ExTease of Litigation) COUNTRY CLUB DISTRICT SL'RVICE CO. Y E A R S 1942 1943 1944 1945 1_ POWER AND PUMPING Operating Labor 182.65 392.15 'a 586.50 616.25 0 69$.50 Supplies and Expense 145-95 142.45 166.00 152.83 162633 Maintenance 51.29 54.95 250.00 123.45 34 485 Power Purchased 2,426.09 2,498,00 2,532.92 2,242.85 2,84340 Water Purchased Sub -Total " 360.48 ,_ 306.68 13,166.46 x3,394.43 846.94 - 325.84 03 0,471.22 ,3070'336' DISTRIBUTION EXPENSE, Operation of Distribution Services 245.50 227.26 279.73 311.28 568;81 Maintenance 159.36 245.41 81.51 20.00 . 280.36 Services on Customerst Premises., Sub 610.Z6 389.40 ., 60,0.63 2 1.062.05 � -Total l9015. 2 a $62.07 ." 961.87 Cpl, 25 .O1 :�1, 911.22 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stogk Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter( Operating Profit Per Meter (a) (a) Slide Rule Calculations 225.00 224.50 200.10 339.05 - 349.50 2,470.00 22633.75 22263.75 2,175.00 2,760'.00 -0- -0= -0- -0- -0- . 800.34 8 4.54 879.01 817.61 847.06 -0- -0- -0- -0- -0- 3,4� 95:34 692.79 �v3, 3 42.86 70,331.66 3, �. 53 1,541.25 1,500'.00 1,594.50 1,791.50 2,444.00 94.08 32.56 - 6.00 9.38 19.29 33.06 21.25 21,i,60 21.60 21.75 25.00 25.00 -0- -0- 156.00 23.31 .44.97 40.4? 42.01 45.48 111.25 123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 (.10.00 2.30 12.23 ( -0- ( -0- ( -0- • 12 0 -0- -0- -0- ; 22506.30 980.21 31,776-.82 7, 9'` 40; 7474 + 2,696-52 . 11388:61 10121.90 12224.48 1,-481.47 2,010.72 895 904 917 923 956 (1007 6/10/47) ;x18,238:71 18,169.34 19,332.33 19,036.27 23,929.03 11,572.33 11,051.40 11 2. 1181.10 882.68 ,6 66 .38 0 7,117.94 .,159-36 ?7,555.17 0;'9,046-35 a)$ 20.40 $ 20.20 $ 21.10 20.50 JP 25.00 �v 7.25 7.84 8.91 8.18 9.46 POWER AND PU11PING Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased Sub -Total DISTRIBUTION EXPff�SE Operation of Distribution Services Maintenance Services on Consumers' Premises Sub -Total ACCOUNTING AND COLLECTION Meter Reading Salaries and.Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal.Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter (a) Operating Profit Per Dieter (a) (a) Slide Rule Calculations ESTILATED OP.MATION BY VILLAGE OF EDINA iESTIK,TE FOR NOR i; L YEAR 1,000.00 ( ( J50.00 ( ( 3<350.00 j 4,500.00 600.00 500.00 1,000.00 2,100,00 400.00 600.00 -0- 650.00 -0- � 13650.00 1,200.00 50.00 75.00 500.00 -0- -0- Legal and Audit ( 250-00, -0- 2,075.00 1,600.00 Village; and School 1025 22,550.00 3 121225.00 q 10,325.00, Available for Bonds and Interest 22,00 (10 Yr. Average, 22.35) 10.00 (10 Yr. Average- ;W10.18) PROJECTED Ki�TURI^1IES. EARlMJGS AND o"MPLUS WATER DEPARTMENT - VILLAGE OF EDINA TOTAL ANTI CIP11, TE, D RECUIR.E1 ElJTS NI; ^t EAR1,1INGS ESERVE INTEREST FOR AVAILABLE FOR FOR 1 YR. t1R C 2% MATURITY DEBT SERVICE DEBT S &ICE DEBT S'MVICE SURPLUS 1948 3,000.00 -0- 3,000.00 10,000.00 56 %,000.00 1949 3,000.00 51000.00 8;000.00 1o,500.00 7,900.00 1950 2,900.00 5,000:00 7,900.00 11,000.00 7,800.00 1951 .2;800.00 5,000,00 7,800.00 11,500.00 7,700.00 1952 2,700.00 5,000.00 7,700.00 125000.00 7,600.00 1953 2,600.00 7,000.00 71600.00 12,500.00 9;460.00 1954 2,460.00 7,000.00 9,460.00 13,000.00 9,320.00 1955 2,320.00 7,000.00 9,320.00 13,500.00 9,180.00 1956 2.180.00 7,000.00 9,180.00 - 14,000.00 10,040.00 1957 21040.00 8,000.00 10,040.00 14,500.00 9,880.00 1958 1,880.00 8,000.00 9,880.00 15,000.00 9,720.00 1959 1,720:00 8,000.00 9,720.00 15,500.00 9,560.00 1960 '12560.00 81000.00 9,560.00 16,000.00 11,400,.00 1961 12400.00 10;000.00 11,400.00 16,500.00 11,700.00 1962 1,200.00 10,000.00 11,200.00 17,000.00 11,000.00 1963 1,000.00 10,000.00 11,000.00 17,500.00 10,800.00 1964 800.00 10,000.00 10,800.00 15,000.00 10,600.00 1965 600.00 10,000.00 10;600.00 15,500.00 1051400.00 1966, 400.00 10,000.00 10,400.00- 19,000.00 10,200.00 1967 200.00 10,000.00 10,200.00 19,500.00 -0- 2,600.00 5,800.00 9,600.00 14;000.00 17,040.00 209720.00 25,040.00 29,000.00 33,620.00 3$,900.00 44,840-00 51,440.00 57,740.00 63,740.00 6g,44o.00 76,840.00 84,940.00 93,740-00 113,240.00 STATEMENT RELATING TO PROPOSED WATER WORKS REVENUE BONDS VILLAGE OF EDINA, MINNESOTA VILLAGE OF EDINA The Village of Edina is located immediately Southwest of and adjacent to the City of Minneapolis. In area it comprises an entire township which has been organized and is operated as a Village under Minnesota general Statutes. The population of the entire Village is approximately 8,0009 and the assessed valuation of the Village in 1946 was $4,359,500.00. The principle development of the area, as a residential com- munity, began in 1923 and 1924 with the development of the Country Club District by Thorpe Bros. of Minneapolis, by whom the original water works system in the Village was installed, in connection with that development. The Country Club District as well as a substantial area to the South and West of the original development, comprises one of the finest residential areas in the United States. It compares very favor- ably with such areas as Shaker Heights in Cleveland and with the Country Club District of Kansas City, Missouri, on which much of the original development was modeled. The area served by the water works hereinafter described is occupied largely by highly successful business and professional people employed in Minneapolis and adjoining suburbs. Business conducted within the Village is limited to a rela- tively small, but high grade, shopping area centering about the corner of France Avenue and Fiftieth Street and occupying approximately three square blocks and a few smaller developments in various parts of the Village. . WATERWORKS The original waterigorks system serving the Country Club District consisted of a distribution system supplied with water pur- chased wholesale from the City of Minneapolis together with a 75 000 gallon elevated storage tank located near FifLeth Street and Woodale Avenue. The franchise issued to Thorpe Bros. was held in the name of the Country Club District Service Co. In 1935, control of this company and the franchise were acquired by.Mr. Oscar Gaardin, under whose management two deep wells were drilled, pumps and pump houses were installed-and substantial extensions of water mains comprising the distribution system were built. Between 1940 and the present date a number of water main extensions were built.by the Village and financed,by special assess- ments against the benefited property, although service for such extensions was provided,by the Country Olub District Service Co. 'i WATERWORKS (Cont'd) As a preliminary step to the purchase of the property from the Country Club District Service Co.. the Village Council caused an appraisal to be made of the property owned by the Country Club District Service Co., as well as of certain other portions of the original waterworks system the ownership of which was disputed by the Village. On June 3, 147, agreement was reached between officers of the Country Club District Service Co. and the Village Council regarding the purchase of the Service Companies properties for the sum of $133,500.00. The tabulation below summarizes the principle items compris- ing the total waterworks system in the Village of Edina which serves approximately 50f of the residences or some 4,000 people: 1 - 75,000 gallon elevated tank on 100 ft. tower * 3 - Deep wells and motor driven deep well pumps * 2 - Pump houses Necessary real estate for above distribution system consisting of: 109355 ft. - 8" CI main 649490 ft. - 6" CI main 3,872 ft. - 4." CI.. main 354 ft. - 2" CI main 831 ft. - Miscellaneous small galvanized iron main 134 Hydrants The entire distribution system is adequately, although not abundantly valved, permitting reasonable sectionalizing of the system for main- tenance work. One of the three wells+ was completed early in June 1947 near 54th Street and Halifax Avenue by the Country Club District Service Co. The necessary pump and its installation are included in the purchase price although installation of the pump has not been completed at this time, pending necessary electrical connections. The necessary pump house* for this equipment is not included in the purchase price but will be built from the proceeds of the proposed issue of revenue bonds. -2- i WATER SUPPLIES Water is obtained from deep wells driven to an abundant supply in the Jordan Sandstone. The quality of the water is excellent with a hardness of approximately 15 1/2 grains per gallon and is delivered by the pumps at an average of approximately 48 °F. One small area 'is served with water purchased wholesale from the City of Minneapolis at rates somewhat in excess of those paid within the Village. It is expected that this area will be connected to the Village Distribution System in the near future. The total purchase of water in the year 1946 amounted to only $568.78. The combined capacity of the two present wells is 2,200 gallons per minute which with the overhead storage has been ample to date to take care of all demands. The maximum observed demand is reported by Mr. Gaardin to have been approximately 1,900 gallons per minute. The new well at 54th and Halifax Avenue will have a capacity of 1 200 gallons per minute, thus increasing total capacity by more than �Of. There have been some complaints of low pressure in certain areas during peak use seasons. It is expected that this shortcoming will be largely corrected by the installation of the new well and pump, by providing a source of supply near the area in which the complaints have originated. It is expected that this new well will also provide for reasonably expected growth for some years to come. It is probable however, that within five to ten years at least one additional well and additional elevated storage for adequate fire protection will'be required. The cost of such additions should not exceed $509000.00, and if required will be financed by additional revenue warrants that will be easily amortized by the increased demand and revenue. -3- VALUE OF PROPERTY The total value of the physical property which will comprise the*Village Water system as of June 30, 1947 is estimated as follows: PROPERTY FROM COUNTRY CLUB DISTRICT 9ERVICE CO. On the basis of reproduction cost as of March 1, 1946, including additions during 1946 and 1947, at cost: Original distribution system Additions to distribution system Production and supply PROPERTY FROM VILLAGE Disttrri-bution system - at cost SUMMARY Land Buildings Wells and pumps Distribution system Tank and tower TOTAL Reproduction Reproduction Costs and Costs as of Additions 3 -1 -46 plus Adjusted to Original Additions 6 -30 -47 for Cost at Cost Depreciation $ 581656.88 $ 78,155.00 $ 53,792.61 68,696.48 40 8 8.44 168,211. o 90,166.60 56,120.o8 224,441. 81, 80.71 ,i.��4,2. 6 T1739416 .28 8 2-83. 98,283:56, 96,047 ,.. 6�8 2 6,4y 3 $322,725 24 $269,463.96 ----- - - - - -- ----- - - - - -- ----- - - - - -- ----------- ----- - - - - -- ----- - - - - -- $ 5,200.00 21 24.42 25,112.02 22,684.92 _ x174.00 $2662495.36 $ 5,400.00 21997.63 349355.80 266,653.16 llt 18.6 $322,725.24 $ -51400.00 29359.42 269239-72 231,669.00 . _ 1, 2795. L2 $269,463.96 It will be noted that the above figures for reproduction are based on an appraisal as of March 1, 1946, and cost for additions during the remainder of 1946 and 1947 for property acquired from the Sertrtce Co. and at cost for property built by the Village. Reproduction as of the present time would, no doubt, be ten to fifteen per cent higher. CONNECTED METERS There are at present 1,007 connected meters. The existing distribution system and extensions now under construction will serve 411 vacant lots and 58 potential consumers now served by private wells. Construction has been started or permits issued for 18 new homes which will soon call for water connections. A review of growth ever the past ten years, asshown on the attached Exhibit I, shows an average annual increase of 55 meters per year. During the war there was, of course, little growth so the average increase would normally have been much more. For purposes of projecting future income we have assumed an average yearly increase of 50 meters. N ftVNINGS' Exhibit I attached shows In detail the operating costs of the water works system for the past ten years as derived from audited annual reports of the Country Club District Service Co. The estimated annual operating expense,for a normal.year is also detailed in this Exhibit and is derived from a study of the. ten year operating record during which time existing rates have been maintained. The average annual gross revenue per meter for the ten year period has been $22.35• The average annual operating profit before interest and depreciation charges has been $10.18. Some economies can be expected under.municipal operation due to the fact that much of the supervisory and c1brical work can be handled by employees whose time is charged in part to other Village functions. In estimating income available'from'future operations revenues of $10.00 per meter per year as available for debt service have been assumed. It should be noted that during the last five years, rainfall has been substantially above normal so that the net earnings for those years have been somewhat less than for the ten year period which it is believed provides a more dependable average. Expenditures by the Company for service on the consumers premises, such as meter repairs and maintenance, have been an increas- ingly substantial item. Inasmuch as meters are owned by the customers it will be the policy.of the Village to charge reasonably for such service. FINANCIAL REQUIREMENTS The Village contemplates.that.an open -end issue of Revenue Bonds in the amount of $150,000 will provide sufficient funds for the purchase of the property'of the Country Club District Service Co., such capital improvements as are necessary at this time, as well as a moderate amount of working capital. The proceeds of the sale will be applied approximately as follows: Purchase of Country Club District Service Co. property .......... .............................:. $133,500.00 Reconditioning of hydrants and valves ............. 19500.00 Reconditioning of Fiftieth Street main............ 500.00 New pump house and landscaping .................... 59000.00 Sa•feifiy�;- ladder on tank and miscellaneous........... 11000.00 Appraisal and acquisition expense................. 3,500.00 Working capital.......... 000.00 $1509000.00 . Future extensions of the water mains will he-built by the Village and financed by special assessments.. -5- RATE SCHEDULE The present rate,which has been in use by che'Country Club District Service Company for a number of 'years, is 170-per 100 cu. 'ft. gross less 10% or 15.4 per 100 cu. ft. net, which net amount is ap- proximately equal to 20 1/2¢ per 1,000 gallons. The Village contem- plates no changes in rates which would have the effect of reducing the net earnings in any material amount or which would jeopardize the maturity and interest requirements for the proposed bonds. The. Village does, however, believe that a more scientific and equitable schedule of rates can be worked out to encourage an increase in con- sumption and possibly result in an increase. in net earnings. Such a schedule would in all probability embody (1) a flat monthly charge per meter (2) a rate per 1,000 gallons for normal household use based on the winter quarters at a lower rate than now charged and (3) a lower rate for abnormal use, to encourage increased use of water for sprinkling and cooling. Such a study is to be undertaken and, if feasible, a revision of the rate structure along the above lines will be made. MANAGEMENT It is the intention of the council to place the management of the utility in charge of present employees who have had experience in the operation of water systems. The council also feels that the operation of the utility should follow the same principles and basis of costs and charges for services as would normally be followed in a privately operated system. These policies and basis of charge for various services.are now under study. The council is investigating the feasibility cf placing the general direction of the utility under a Commission, although no con- clusions have been reached. APPROVING OPINION AND BONDS Proceedings incident to the proposed revenue bond issue are being directed by Mr. John Windhorst, Village Attorney with the assistance of the firm of Dorsey, Colman, Barker, Scott & Barber. An approving opinion by the latter firm will be provided the purchaser of the bonds, and bonds will be printed at the expense of the Village. -E- SUf -11ARY OF OP ;RriTING COSTS (Before Interest, Depreciation, and Lxponsc of Litigation) COUNTRY CLUB DISTRICT S�]R.VICE CO. Y E A R S - 1937 _ 1938 1939 1940 1941 POWER AND PUI�iF'IIdG - Operating Labor 21:00 22;00 41.00 -0- a 236.25 Supplies and Expense 166;88 192.68 140.91 106.80 150.68 Maintenance 24.38 - 77.05 114.47 117.36 87.61 Power Purchased 1,938.20 1;611.80 1,854.75 2,063.00 2,554.00 4dater Purchased -0- -0 - 52 .179.64 342.7 Sub -Total P2,150.46 31,9'- 03.53 X2;215.65 .2,466.80 43,371.31 DISTRIBUTION rXPaJSE Operation of Distribution Services 42.63 203:20 32.74 173.40 2290.31 Maintenance 646.22 114.34 70.59 835:05 266.18 Services on CustomerstPremiscs -0- 0.72 103.62 103.61 303.16 Sub -Total 88 85 ,? 54.�-_ 72- T 206. 55 31,112.0 ; 859:65 ACCOUNTING AND COLLECTIONS Pieter Reading 125.00 140.00 140:00 150.00 160.00 Salaries and Wages 795.00 805400 787.50 800:00 1,815.00 Payroll Taxes 26.34 40:00 29.14 -0- -0- 1iscellaneous 110.29 218.12 211:74 649.59 785.73 Office Rent 0__ 480;00 504.00 -0- -0- Sub -Total Pl,056.63 1, 83:12 1., 74.38 X1,559.597?,760.73 �= 1,1NISTRATIVE �'1ND G Iy'ERt;L Salaries and Wages 810;00 907.00 854.70 19329425 1,319.00 Expense General Office 69.25 900 71.69 107:45 15.24 Insurance 107.77 172.79 140.84 151.75 155.64 Legal Services 10.00 80.00 375.00 50.00 -0- Payroll Taxes 26.34 45.11 59.10 91.02 42.57 Federal Capital Stock Tax 20.00 55.00 77.50 91.70 106.25 Iiscellaneous Supplies and (180.20 (164.53 238.73 265.10 221.00 Expense ( -0- ( -0- 10.31 1;00 4.41 _Other General Office Salaries -0- -0- -0- -0- -0- Sub -Total P1,T 223.56 _ X1,433.73 ; 1p827:g7 x2;087.27 :;1;8 61 .11 Taxes 591 9-04 1,055.08 1,136.24 Number of Teeters June 30 461 506 568 686 832 Revenue Water Sales „12,?47;$6 11,154.04 13,276:10 15,324:34 20,022.89 Total Operating Cost, before Interest, Depreciation, and Expense of Litigation 5 11 0 68;64 6,515.89 8J 20.80 2. Operating Profit'-' g x7,128.38 5,585.40 "?6o760.21 0,003.54�10,030.85 Average Water Sales Per Meter(a) 26.50 22.00 23:40 22:35 24.20 Operating Profit Per Pieter (a) 15:20 11.03 11:90 10.21 120-05 (a) Slide Rule Calculations (Before.Interest, SUNUI, OF OPh 'TING COSTS Depreciation, and Expense of Litigation) 904 917 COUNTRY CLUB DISTRICT SERVICE CO. Operation' of Distribution Services -245.50 227.26 279.73 311.28 Y E A R S Maintenance Customers'-Premises:;:-,6101 ' 159.36 6 245.41 81.51 8,40 600.6 _ 1942 1943 1944 �.. 1945 _ 1946 PO,NFR AND PUMPING 182..65 a 3.2.15 ':P 586-50 ; 616.25 698.50 Operating Labor 145.95 142.45 166.00 152.83 162.33` Supplies and Expense 51,29 54.95 250.00. 123.45 34465 Maintenance Power Purchased 2,426.09 2,498,00 '. 36048 2.;532.92 311. 2 2,242.85 3 .84 21843.20 8 Mater Purchased Sub ,�O6'68 3,166.46 x3,394.43 X3;846.94 ;3,471.22 x,307.6 -Total DISTRIBUTION EXPENSE 895 904 917 923 956 (1007 6/10/47).- Operation' of Distribution Services -245.50 227.26 279.73 311.28 568.81 Maintenance Customers'-Premises:;:-,6101 ' 159.36 6 245.41 81.51 8,40 600.6 _ 20.00 24.3 280.36 1 062.0 Services on Sub -Total �1s015.62 862.07 ;r 961.87 710 25.6.01 X1,911,22 ACCOUNTING AND COLLECTIONS Actor Reading r Salaries and adages Payroll Taxes Miscellaneous Office Rent SubTotal ADKINISTRATIVE.:AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal ,Services Payroll Taxes Federal Capital Stock'Tax Miscellaneous Supplies and Expense Other General office Salaries Sub -Total Taxes 225.00 224.50 200.10 339.05 349.50 2,470.00 2,633.75 2,263.75 21175.00 2,760,00 -0- -0- -0- -0- -0- 800.34 834.54 879.01 817.61 847106 -0- +0- 3',49 .34 73,692.79 3' 342.86 Z331.66 �3,95 56 1,541.25 12500.00 1;594.50 1,791.50 2,444.00 94.08 32.56 6.00 9.38 19•.29 33.06 21.25 21,60 21.60 21.75 25.00 25.00 -0- -0- 156:00 23.31 44.97. 40.47 42.01 45.148 111425 123._75 112.50 56.25 -0- 45740 96.95 ( 21.75 ( 20.00 ( 10.00 2.30 12.23 ( -0- ( -0; 218. 23.50 - 0-- 0- -0- 7 50 .30 1 980.21 51,7 6.82 x1,940.74 72s 9 .52 1,388.61 .1;121.90 1y224.48 1,481.47 21010.72 Number of Meters June 30 895 904 917 923 956 (1007 6/10/47).- Revenue Water.Sales ?183238.71 181169:34 19,332.33 19,036.27 23,929.03 Total Operating Cost, before Interest, Depreciation, and Expense of Litigation 11,572.33 11 0 1. 0 11 172. 11.481.10 '8]1_x, 82.68 Operating Profit ti ,6 6.38 4p7,117.94,�a8,159.36 X7,555.17 "9,04605 Average Water Sales Per Nieter(a)3 20.40 0" Operating Profit Per Meter (a) .4 7.25 (a) Slide Rule Calculations 20.20 21.10 20.50 a 25.00 7.84 8.91 8.18 9.46. POWER AND PUTTING Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased Sub -Total DISTRIBUTION EXPTU.SE Operation of Distribution Services Maintenance Services on Consumers' Premises Sub -Total ACCOUNTING AND COLLECTION Meter Reading. Salaries and Wages Payroll Taxes. Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter (a) Operating Profit Per Muter (a) (a) Slide Rule Calculations ESTII;ATED OP ZRATION BY VILtAG2 OF EDINA ESTIK;iTE FOR NOIU,iAL YAIl 1,000.00 ( ( 1,50.00 ,( 3,350.00 4,800.00 600.00 500.00 1.000.00 2,100.00 /00.00 600.00 -0- 650.00 -0- 1,650.00 6 1,200.00 50.00 75.00 500.00 Legal and Audit -0- -0- ( ( 250.00 -0- - 2;075.00 1,600.00 Village and School 1025. 22,550.00 12;225.00 Q 10,325.00 Available for Bonds and Interest 22.00 (10 Yr. Average - :;22.35) 10.00 (10 Yr. Average- w10.18) PROJECTED P A T URI TI ES , EARIMJfGS AND SURPLUS WATER DEPARTMENT - VILLAGE OF EDINA TOTAL ANTICIPATED REQUIR.EIIENTS NET EARNINGS RESERVE INTEREST FOR AV- '�ILABLE FOR FOR 1 YR. tEAR 0 2% MATURITY DEBT SERVICE DEBT SERVICE DEBT SERVICE SURPLUS 1948 3,000.00 -0- 3,000.00 w 10,000.00 $,000.00 1949 3,000.00 51000.00 8,000.00 10,500.00 7,900.00 2,600.00 1950 2,900.00 5,000.00 7,900.00 11,000.00 7,500.00 51800.00 1951 21800.00 5,000.00 7,800.00 11,500.00 7,700.00 9,600.00. 1952 2,700.00 5,000.00 7,700.00 12,000.00 7,600.00 14;000.00 1953 2,600.00 7,000.00 7,600.00 12,500,00 9;460.00 17,040.00 1954 2,460.00 7,000.00 9,460.00 13,000.00 9,320,00 209720.00 1,955 2,320.00 7,000.00 9,320.00 13,500-00 9,180.00 25,040.00 1956 2.180.00 7,000.00 9,180.00 14,000M 10;040.00 29,000.00 1957 2,040.00 85,000.00 10,040.00 14,500.00 9,880.00 33,620.00 1958 1,880.00 81000.00 9,880.00 15,000.00 9,720.00 38,900.00 1959 1,720.00 8,000.00 9,720.00 15,500.00 91560.00 44,840.00 1960 12560.00 8,000.00 9,560.00 16,000.00. 11,400.00 51;440.00 1961 1,400.00 10,000.00 11,400.00 16,500.00 11,700.00 57,740.00 1962 11200.00 10,000.00 11,200.00 17,000.00 111000.00 63,740.00 1963 1,000.00 102000.00 111000.00 17,500.00 10,800.00 69,440.00 1964 800.00 10,000.00 10,800.00 .18,000.00 10,600.00 16,840.00 1965 1966 600.00 10,000.00 101600000 18,500.00 10,400.00 84,940.00 400.00 109000.00 10,400.00 19,000.00 10,200.00 93,740.00 1967 200.00 10,000.00 10,200.00 19;500.00 -0- 113,240.00 STATEMENT RELATING TO PROPOSED WATER WORKS REVENUE'BONDS VILLAGE OF EDINA, MINNESOTA VILLAGE OF EDINA The Village of Edina is located immediately Southwest of and adjacent to the City of Minneapolis. In area it comprises an entire township which has been organized and is operated as a Village under Minnesota general Statutes. The population of the entire Village is approximately 8,000, and the assessed valuation of the Village in 1946 was $4,359,500.00. The principle development 'of the area, as a residential-com- munity, began in 1923.and 1924 with the development of the Country Club District by Thorpe Bros. of Minneapolis, by whom the original water works system in the Village was installed, in connection with that development. The Country Club District as well as a substantial area to the South and West of the original development, comprises one of the finest residential areas in the United States. It compares very favor- ably with such areas as Shaker Heights in Cleveland and with the Country Club District of Kansas City, Missouri, on which much of the original development was modeled. The area served by the water works hereinafter described is occupied largely by highly successful business and professional people employed in Minneapolis and adjoining suburbs. Business conducted within the Village is limited to a rela- tively small, but high grade, shopping area centering about the corner of France Avenue and Fiftieth Street and occupying approximately three square blocks and a few smaller developments in various parts of the Village. WATERWORKS The original watertorks system serving the Country Club District consisted of a- distribution system supplied with water pur- chased wholesale from the City of Minneapolis together with a 75,000 gallon elevated storage tank located near Fiftieth Street and Woodale Avenue. The franchise issued to Thorpe Bros. was held.in the name of the Country Club District Service Co. In 1935, control of -this company and the franchise were acquired by Mr. Oscar:Gaardirr., under whose management two deep wells were drilled, pumps and- pump houses were installed and substantial extensions of water mains comprising the distribution system were built. Between 1940 and the present date a number of water main extensions were built by the Village and financed by special assess- ments against the benefited property, although service for such extensions was provided by the Country Club District Service-Co.. S WATERWORKS (Cont'd) As a preliminary step to the purchase of the property from the Country Club District Service Co.. the Village Council caused an appraisal to be made of the property owned by the Country Club District Service Co., as well as of certain other portions of the original waterworks system the ownership of which was disputed by the Village. On June 3, 147, agreement was reached between officers of the Country Club District Service Co. and the Village Council regarding the purchase of the Service Companies properties for the sum of $133,500.00. The tabulation below summarizes the principle items compris- ing the total waterworks system in the Village of Edina which serves approximately 5010 of the residences or some 4,000 people: 1 - 75,000 gallon elevated tank on 100 ft. tower * 3 - Deep wells and motor driven deep well pumps * 2 - Pump houses Necessary real estate for above distribution system consisting of: 105355 ft. - 8" . CI main 649490 ft. - 6" CI main 39872 ft. - 4" CI..main 354 ft. - 2" CI main 831 ft. - Miscellaneous small galvanized iron main 134 Hydrants The entire distribution system is adequatelyq although not abundantly valved, permitting reasonable sectionalizing of the system for main- tenance work. One of the three wells* was completed early in June 1947 near 54th Street and Halifax Avenue by the Country Club District Service Co. The necessary pump and its installation are included in the purchase price although installation.of the pump has not been completed at this time, pending necessary electrical connections. The necessary pump house* for this equipment is not included in the purchase price but will be built from the proceeds of the proposed issue of revenue bonds. -2- WATER SUPPLIES Water is obtained from deep wells driven to an abundant supply in the Jordan Sandstone. The quality of the water is excellent with a hardness of approximately 15 1/2 grains per gallon and is delivered by the pumps at an average of approximately 48 °F. One small area is served with water purchased wholesale from the City of Minneapolis at rates somewhat in excess of those paid within the Village. It is expected that this area will be connected to the Village Distribution System in the near future. The total purchase of water in the year 1946 amounted to only $568.78. The combined capacity of the two-present wells is 2,200 gallons per minute which with the overhead storage has been ample to date to take care of all demands. The maximum observed demand is reported by Mr. Gaardin to have been approximately 1,900 gallons per minute. The new well at 54th and Halifax Avenue will have a capacity of 1 200 gallons per minute, thus increasing total capacity by more than �01. There have been some complaints of low pressure in certain areas during peak use seasons. 1t is expected that this shortcoming will be. largely corrected by the installation of the new well and pump, by providing a source of supply near the area in which the complaints have originated. It is expected that this new well will also provide.for reasonably expected growth for some years to come. It is probable however, that within five to ten years at least one additional well and additional elevated storage for adequate fire protection will be required. The cost of such additions should not exceed $50,000.00, and if required will be financed by additional revenue warrants that will be easily amortized by the increased demand and revenue. -3- VALUE OF PROPERTY The total value of the physical property which will comprise the Village Water system as of June 30, 1947 is estimated as follows: PROPERTY FROM COUNTRY CLUB D -1ST IGrSERVICE CO. - On the basis of reproduction cost as of March 12 19469. including additions during 1946 and 1947, at cost: Original distribution system Additions to distribution system Production and supply PROPERTY FROM VILLAGE Distribution system - at cost SUMMARY Lana Buildings Wells and pumps Distribution system Tank and tower TOTAL Reproduction Reproduction Costs and Costs as of .Additions 3 -1 -46 plus Adjusted to Original Additions 6 -30 -47 for Cost at Cost Depreciation $ 58,656.88 $ 78 , 155.00 $ 53,792.61 68,696.48 40 8, 58.44 $168_9_211.80 90,166.60 X120.08 $224,441. 81 2 g80. 71 42.96 173,416.26 $-276-14-9-5-. 8 28 6 e322,725.24 8 28 6 611047-68 3� $-229;463.96 - - --- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- ----- - - - - -- $ 5,200.00 2,124.42 25,112.02 22, 684.92 374. 0 $266,495.36 $ 5,400.00 21997.63 34,355.86 266 , . 5 .16 11 , 1 .6 $322,725.24 $ 5,400.00 2,359.42 2692 9.72 231,669.00 1,795,82 $269,463-96 It will be noted that the above figures for reproduction are based on an appraisal as of March 1, 1946, and cost for additions during the remainder.of 1946 and 1947 for property acquired from the Sertrtce Co. and at cost for property built by the Village. Reproduction as of the present time would, no doubt, be ten to fifteen per cent higher. CONNECTED METERS There are at present 1,007 connected meters. The existing distribution system and extensions now under construction will serve 411 vacant lots and 58 potential consumers now served by private wells. Construction has been started or permits issued for 18 new homes which will soon call for water connections. A review of growth over the past ten years, asshown on the attached Exhibit I, -shows an average annual increase of 55 meters per year. During the war there was, of course, little growth so the average increase would normally have been much more. For purposes of projecting future income we have assumed an average yearly increase of 50 meters. NINGS Exhibit I attached shows in detail the operating costs of the water works system for the past ten years as derived from audited, annual reports of the Country Club District Service Co. .The estimated annual operating expense for a normal year is also detailed in this Exhibit and is derived from a study of the ten year operating record during which time.existing rates have been maintained. The average annual gross revenue per meter for the ten year period has been $22.350 .The average annual operating profit before interest and depreciation charges has been $10.18. Some economies can be expected under municipal operation due to the fact that -much of the supervisory and c1brical work can be handled by employees whose time'is charged in part to other Village functions. In estimating income available from future operations revenues of $10.00 per meter per year as available for debt service have been assumed. It should be'noted that during the last five years, rainfall has been substantially above normal so that the net earnings for those years have been somewhat less than for the ten year period which it is believed provides a more dependable average. Expenditures by the Company for service on the consumers premises, such as meter repairs and maintenance, have been an increas- ingly substantial item. Inasmuch as meters,are owned by the customers it will be the policy of the Village to charge reasonably for such service. F_INA_NCIAL REQUIREMENTS M The Village contemplates that an open -end issue of Revenue Bonds in the amount of $150,000 will provide sufficient funds for the purchase of the property of the Country Club District Service Co., such capital improvements as are necessary at this time, as well as a moderate amount of working capital. The proceeds of the sale will be applied approximately as follows s Purchase of Country Club District Service Co. property .......... .............................:. $133,500.00 Reconditioning of hydrants and valves ............. 17500.00 Reconditioning of Fiftieth Street main............ 500.00 New Rump house and landscaping .................... 59000.00 Safc;-*yr;• ladder on tank and miscellaneous.......... 11000.00 Appraisal and acquisition expense.................. 3,500.00 Working capital.* o . ..................... 5.000.00 $150,000.00 Future ext�ensions of the water mains will be built by the Village and financed by special assessments. -5- RATE SCHEDULE The present rate,which has been in use by the Country Club District Service Company for a.number of years, is 170 per 100 cu. ft. gross less 10% or 15.4 per 100 cu. ft. net, which net amount is ap- proximately equal to 20 1/2¢ per 1,000 gallons. The Village contem- plates no changes in rates which would have the effect of reducing the net earnings in any material amount or which would jeopardize the maturity and interest requirements for the proposed bonds. The Village does, however, believe that a more scientific and equitable schedule of rates can be worked out to encourage an increase in con- sumption and possibly result in an increase in net earnings. Such a schedule would in all probability embody (1) a flat monthly charge per meter (2) a rate per 1,000 gallons for normal household use based on the winter quarters at a lower rate than now charged and (3) a lower rate for abnormal use, to encourage increased use of water for sprinkling and cooling. Such a study is to be undertaken and, if feasible, a revision of the rate structure along the above lines will be made. MANAGEMENT .It is the intention of the council to place the management of the utility in charge of present employees who have had experience in the operation of water systems. The council also feels that the operation of the utility should follow the same principles and basis of costs and charges for services, as would normally be followed in a privately operated system. These policies and basis of charge for various services are now under study. The council is investigating the feasibility c,f placing -the general direction of the utility under a Commission, although no con- clusions have been reached. APPROVING OPINION AND BONDS Proceedings incident,to the proposed revenue bond issue are being directed by Mr. John Windhorst, Village Attorney with the assistance of the firm of Dorsey, Colman, Barker, Scott & Barber. An approving opinion by the latter firm will be provided the purchaser of the bonds, and bonds will be printed at the expense of the Village.. -6- SU11.2, ARY OF OPER�;TING COSTS (Before Interest,. Depreciation, and Expcnsc of.Litigation) COUNTRY CLUB DISTRICT SERVICE CO.. POWER AND PUPPING Operatino Labor Supplies and Expense Niaint enan c e Power Purchased Walter Purchased 5 Sub -Total DISTRIBUTION EXPANSE Operation of Distribution Services Maintenance Services on Customers1Premiscs Sub -Total ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADLINISTRATIVE X0 GENERAL Salaries and gages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax P'liscollaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue ti-later Sales Y i;ARS 1937 3 -938 1939 1940 1941 - 21.00. 22.00 y 41.00 -0- 236.25 166.88 192.68 140.91 106.80 .150.68 24.38 77.05 114.47 117.36 87.61 1,938.20 1,611.80 1,854.75 2,063.00 21554.00 -0- -0- 64.52 179.64 -342.7 ;x2,150.46 "'1,90 .,53 ` 2,215.65 p2 66 80 73,371.31 42.63 203.20 32.74 173.40 290.31 646.22 114.34 70.59 835.05 266.18 -0- 230.72 1,� _ 03.62 103.61 303.16 688.85 ;; 54T.2? <� 206.95 71, T 1-2 .0 7859.65 125.00 140.00 140900 150.00 160.00 795.00 805.00 787:50 800.00 1,815.00 26.34 40.00 29.14 -0- -0- 110.29 218.12 211.74 649.59 785.73 -0- .480.00 504.00 -0- -0- 1;01,056.63 ;71,'� 683:12 7174.381 59 _ �2 760.73 810.00 907.00 854.70 1,329.25 11319.00 69.25 9.30 71.69 '107.45 15.24 107,.77 172.79 140.84 151.75 155.64 10.00 80.00 375.00 50.00 -0- 26.34 45.11 59.10 91.02 42.57 20.00 55.00 77.50 91.70 106.25 (180.20 (164.53 238.73 265.10 221.00 ( -0- ( -0- 10.31 1100 4.41 -0- -0- -0- -0- -0- 1�223..56 w1,433.73 x1,827.87 v2,087.27 ;1;864.11 591.04 11055.08 11136.24 461 506 568 686 - 832 '12,247v$8 11,154.04 13,276.10 150244-34 20,022.89 Total Operating Cost, before Intere-st,_Depreciation, and Expense of Litigation 5.119.50 5;568. 6.515.89 8-320.80 9,992.04 Operating Profit X7,128.38 ;x5, 585.40 ; 6, 760.21 4R:003 *' 54UO, O3O.85 Average Water Sales Per Keter(a) 26.50 22.00 23.40 22.35 24.20 Operating Profit Per Dieter (a) 15.20 11.03 11.90 10.21 .12.05 (a) Slide Rule Calculations SUMMARY OF OPIMATING COSTS (Before Interest, Depreciation, and Expense of Litigation) COUNTRY CLUB DISTRICT SERVICE CO. DISTRIBUTION EXPENSE, Operation of Distribution - Services 245.50 227.26 279.73 311.28 568.81 Maintenance 159.36 245.41 81.51 20.00 28.0.36 Services on Customers' Premises 6 T 359.40 600.6 L062.05 � Sub -Total . 9,015.62 862.07 ;P' 961-87 ;p1,25 .O1 X1,911.22 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent 'Sub -Total ADI`INISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stogk Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter( Operating Profit Per Meter (a) (a) Slide Rule Calculations 225.00 224.50 200.10 Y E A R S 349050 21470.00 2,633.75 1942 1943 1944 1945 1946 POWER AND PUMPING -0- -0- 800:34 834.54 879.01 Operating Labor 182065 392.15 'a 586.50 616.25 69$.50 Supplies and Expense 145.95 142.45 166,00 152.83 162633 Maintenance 51.29 54.95 250.00 123.45 34.05 Power Purchased 2;426.09 2,498.00 2,532.92 2,242.85 2,84340 Water Purchased Sub ' 360948 ,_ 306.88 211.52 2 33.84 568978 -Total 33,166.46 x3,394:43 ;3,846.94 :31471.22 ,3070- DISTRIBUTION EXPENSE, Operation of Distribution - Services 245.50 227.26 279.73 311.28 568.81 Maintenance 159.36 245.41 81.51 20.00 28.0.36 Services on Customers' Premises 6 T 359.40 600.6 L062.05 � Sub -Total . 9,015.62 862.07 ;P' 961-87 ;p1,25 .O1 X1,911.22 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent 'Sub -Total ADI`INISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stogk Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter( Operating Profit Per Meter (a) (a) Slide Rule Calculations 225.00 224.50 200.10 339.05 349050 21470.00 2,633.75 2,263.75 2,175.00 2,760.00 -0- -0- -0- -0- -0- 800:34 834.54 879.01 817.61 847.06 -0- -0- -0- -0- -0- `3,495.34 73 792.79 a3,3� 42.86 OP3� 31.66 '7_3_,95.5 �a 1,541.25 .. e 1,500.00 1,594.50 1,791.50 2,444.00 94.08 32.56 6.00 9.38 19.29 33.06 21.25 21,60 21.60 21.75 25.00 25,00 -0- -0- " 156.00 23.31 44.97 40.47 42.01 45.48, 111.25 '123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 ( 10.00 2.30 12.23 ( -0- ( -0- ( -0- 218. 123,50 -0- -0- -0- 52P506.30 X1,980.21 1 7'� 96.82 1,9 0;74 �2, 9 .52 1088.61 1,121.90 1,224.48 1,481.47 23010.72 895 904 917 923 �1506147) (1007 7 p18,238,71 18,169.34 19,332.33 19,036.27 23,929.03 110572.33 11.051.40 11 l 11 17 4T:" -' 14 882:68 6 .3 8 7,117.94 48,159.3 17,555.17 '9,0"� 4 a)$ 20-40-6 '20.20 $ 21.10 20.50 25.00 .v 7.25 7984 8.91 8.18 9.46 POWER AND PUTTING Operating Labor Supplies and Expense Maintenance 'Power Purchased Water Purchased Sub -Total DISTRIBUTION EXP11SE .Operation of Distribution Services Maintenance Services on Consumers' Premises Sub -Total ACCOUNTING AND COLLECTION Meter Reading . Salaries and Wages Payroll Taxes .Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters ' Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter (a) Operating Profit Per Ivieter (a) (a) Slide Rule Calculations ESTIIViTI ED OP�tATION 'BY VILL AGE OF EDINA ESTIK,VIE FOR NOIU -iAL Yi,,ALZ 1,000.00 ( ( 150.00 ( ( 3.,350.00 4,800„00 600.00 500,00 1.00() . 00 a 2,100 00 400_.00 600.00 -0- 650.00 -0- :� 1,650.00 p 1,200.00 50.00 ?5.00 500.00 Legal and Audit -0- -0- ( ( 250.00 -0- .2,075.00 1,600.00 1025 . 22,550.00 Village and School 3 12;225,00 a 10025.00 2°1vailable for Bonds and Interest 4 22.00 (10.Yr. Average - ,'x22.35) 10.00 (10 Yr. Average - :10.18) PROJECTED 'r :�TURITI S, EAMINGS AND SURPLUS WATER DEPARTMENT - VILLAGE OF EDINA TOTAL ANTICIPATED REQUIRfl TS NET EARNINGS 'LS a," ERVE INTEREST FOR AVAILABLE FOR FOR 1 YR. TEAR @ 2% MATURITY DEBT S= 2t'VICE MEBT SI, IGE DEBT SQL ICE SURPLUS 1948 3,000.00 4`p` -0- 31000.00 10,000.00 ,000.00 1949 3,000.00 51000.00 81000.00 10,500.00 7,900.00 1950 2,900.00 5,000.00 7,900.00 11,000.00 7,800.00 1951 2,800.00 5,000.00 7,800.00 11,500.00 7,700.00 1952 2,700.00 5,000.00 7,700.00 123000.00 7,600.00 1953 2,600.00 7,000.00 7,600.00 12,500.00 9;460.00 1954 2,460.00 7,000.00 9,460.00 13,000.00 9,320.00 1955 2,320.00 7,000.00 9,320.00 13,500.00 9,180600 1956 2.180.00 7,000.00 9,180.00 14,000.00 10,040.00 1957 2,040.00 8,000.00 10,040.00 14,500.00 9,880.00 1958 1,880.00 85,000.00 9,880.00 15,000,00 9,720.00 1959 1,720.00 8,000.00 9,720.00 15,500.00 91560.00 1960. 1,560.00 8,000.00 9,560.00 16,000.00 11,400.00 1961 12400.00 10;000.00 11,400.00 16,500.00 11,700.00 1962 1;200.00 10,000.00 11,200.00 17,OOC.00 111000.00 1963 1,000.00 10,000.00 11,000.00 17,500.00 10,800.00 1964 800.00 109000.00 10,800.00 181000.00 10,600.00 1965 600.00 10,000.00 10,600.00 18,500.00 102400.00 1966 400.00 10,000.00 10,400.00 19,000.00 10,200.00 1967 200.00. 103000.00 103200.00 19,500.00 -0- 2,600.00 5,800.00 9,600.00. 14;000.00 17,040.00 205720.00 25,040.00 29,000.00 33,620.00 38,900.00 44,840.00 51,440.00 57,740.00 63,740.00 69,440.00 76,840.00 84,940.00 93,740-00 113,240.00 STATEMENT RELATING TO PROPOSED WATER WORKS REVENUE BONDS VILLAGE OF EDINA, MINNESOTA VILLAGE OF EDINA The Village of Edina is located immediately Southwest of and adjacent to the City of Minneapolis. In area it comprises an entire township which has been organized and is operated as alVillage under Minnesota general Statutes. The population of the entire Village is approximately 89000, and the assessed valuation of the Village in 1946 was $4,359,500.00. The principle development of the area, as a residential com- munity, began in 1923 and 1924 with the development ofIthe Country Club District by Thorpe Bros. of Minneapolis, by whom the original water works system in the Village was installed, in connection with that development. The Country Club District as well as a substantial area to the South and West of the original development, comprises one of the finest residential areas in the United States. It compares very favor- ably with such areas as Shaker Heights in Cleveland and with the Country Club District-of Kansas City, Missouri, on which much of the original development was modeled. The area served by the water works hereinafter described is occupied largely by highly successful business and professional people employed in Minneapolis and adjoining suburbs. Business conducted within the Village is limited to a rela- tively small, but high grade, shopping area center.ing',about the corner, of France Avenue and Fiftieth Street and occupying approximately three square blocks and a few smaller developments in various parts of the Village. WATERWORKS The original watertrorks system serving the Country Club District consisted of a distribution system supplied with water pur- chased wholesale from the City of Minneapolis together with a 75,000 gallon elevated storage tank located near Fiftieth Street and Woodale Avenue. The franchise issued`to Thorpe Bros. was held in the name of the Country Club District Service Co. t In 1935, control.of- this.company and the franchise were acquired by Mr. Oscar Gaardin.,:under whose managementltwo deep wells were drilled, pumps and pump houses were installed and substantial extensions of,'water mains comprising the distribution system were built. Between 1940 and the present date a number of water main extensions were built by the Village and financed by special assess- ments against the benefited property, although service for such extensions was provided by the Country Olub District Service Co. WATERWORKS ont' d ) _ As a preliminary step to the purchase of the property from the Country Club District Service Co.. the Village Council caused an appraisal to be made of the property owned by the Country Club District Service Co., as well as of certain other portions of the original waterworks system the ownership of which was disputed by the Village. On June 3 147, agreement was reached between officers of the Country Club District Service Co.*and the Village Council regarding the purchase of the Service Companies properties for the sum of $133,500.00. The tabulation below summarizes the principle items compris- ing the total waterworks system in the Village of Edina which serves approximately 50% of the residences or some 4,000 people: 1 - 75,000 gallon elevated tank on 100 ft. tower * 3 - Deep wells and motor driven deep well pumps * 2 - Pump houses Necessary real estate for above distribution system consisting of: 109355 ft. - 8" CI main 649490 ft. - 6" CI main 3,872 ft. - 4" CI. main 354 ft. - 2" CI main 831 ft. - Miscellaneous small galvanized.iron main 134 - Hydrants The entire distribution system is adequately, although not abundantly valved, permitting reasonable sectionalizing of the system for main- tenance work. One of the three wells+ was completed early in June 1947 near 54th Street and Halifax Avenue by the Country Club District Service Co. The necessary pump and its installation are included in the purchase price although installation of the pump has not been completed at this time, pending necessary electrical connections. The necessary pump house* for this equipment is not included in the purchase price but will be built from the proceeds of the proposed issue of revenue bonds. -2- WATER SUPPLIES Water is obtained from deep wells driven to an abundant supply in the Jordan Sandstone. The quality of the water is excellent with a hardness of approximately 15 1/2 grains per gallon and is delivered by the pumps at an average of approximately 48 °F. One small area is served with water purchased wholesale from the City of Minneapolis at rates somewhat in excess of those paid within the Village. It is expected that this area will be connected to the Village Distribution System in the near future. The total purchase of waterin the year 1946 amounted to only $568.78. The combined capacity of the two present wells is 2,200 gallons per minute which with the overhead storage has been ample to date to take care of all demands. The maximum observed demand is reported by Mr. Gaardin to have been approximately 1,9F00 gallons per minute. The new well at 54th and Halifax Avenue will have a capacity of 1 200 gallons per minute, thus increasing total capacity by more tha 0%. There have been some complaints of low pressure in certain areas during peak use seasons. It is expected that this shortcoming will be largely corrected by the installation of the new well and pump, by providing a source of supply near the area in which the complaints have originated. It is expected that this new well will also provide for reasonably expected growth for some years to come. It is probable however that within five to ten years at least one additional well and additional elevated storage for adequate fire protection will be required. The cost of such additions should not exceed $50,000.009 and if required will be financed by additional revenue warrants that will be easily amortized by the increased demand and. revenue. -3- VALUE OF PROPERTY The total value of the physical property which will comprise the Village Water system as of June 30, 1947 is estimated as follows: PROPERTY FROM COUNTRY CLUB �DISTRIC — ERVICE CO. On the basis of reproduction cost as of March 11 19469 including additions during 1946 and 1947, at cost: Original distribution system Additions to distribution system Production and supply PROPERTY FROM VILLAGE Distribution system - at cost SUMMARY Lana— Building s Wells and pumps Distribution system Tank and tower TOTAL Reproduction Costs as of 3 -1 -46 plus Original Additions Cost at Cost Reproduction Costs and :Additions Adjusted to 6 -30 -47 for Depreciation $ 589656.88 $ 78,155.00 $ 53,792-61 68,696.48 40. 58.44 T1-68)211.80 9o,l(6.6o 6 120.08 224,441. 81, 80.71 17 , 942.96 X73 , 41b. 28 �85-t283 _ . 6 98,283: 6 96,047-68 2�6,49j.36 $3322,72 .24 $269,463.96 ----- - - - - -- ----- - - - - -- ----- - - - - -- ----------- ----- - - - - -- ----- - - - - -- $ 5,200.00 2,124.42 25,112.02 22g9684.92 3 74.00 $266,495.36 $ 5,400.00 2,997.63 34,355.80 266,6533.16 118.65 $322,725.24 $ 5,400.00 29359.42 26 , 2 9. 72 231,669.00 1, 72582 $269,463.96 It will be noted that the above figures for reproduction are based on an appraisal as of March 1, 1946, and cost for additions during the remainder of 1946 and 1947 for property acquired from the Sergi ±ce'�Co. and at cost for property built by the Village. Reproduction as of the present time would, no doubt, be ten to fifteen per cent higher. CONNECTED METERS. .There are at present 1,007 connected meters. The existing distribution system and extensions now under construction will serve 411 vacant lots and 58 potential consumers now served by private wells. Construction has been started or permits issued for 18 new homes which will soon call for water connections. A review of growth over the past ten years, asshown on.the attached Exhibit I, shows an average annual increase of 55 meters,per year. During the war. there was, of course, little growth so the average increase would normally have been.much more. For purptses of projecting future income we have assumed an average yearly increase of 50 meters. 1VIIVGS Exhibi� I attached shows in detail the operating costs of the water works system for the past ten years as derived from audited annual reports of the Country Club District Service Co. The estimated annual operating expense for a normal year is also detailed in this Exhibit and is derived from a study of the ten year operating record during which time :existing rates have been maintained. The average annual gross revenue per meter for the ten year period has been $22.35. The average annual operating profit before interest and depreciation charges has been $10.18. Some economies can be expected under municipal operation due to the fact that much of the supervisory'and c1brical work can be handled by employees whose time is charged in part to other Village functions. In estimating income available from future operations revenues of.$10.00.per meter per year as available for debt service have been assumed. It should be noted that during the last five years, rainfall has been substantially above normal so that the net earnings for those years have been somewhat less than for the ten year period which it is believed provides a more dependable average. Expenditures by the Company for service on the consumers premises, such as meter repairs and maintenance, have been an increas- ingly substantial item. Inasmuch as meters are owned by the customers it will be the policy of the Village to charge reasonably for such service. FINANCIAL REQUIREMENTS The Village contemplates that an open -end issue of Revenue Bonds' in the amount of $150,000 will provide sufficient funds for the purchase of the property of the Country Club District Service Co., such capital improvements as are necessary at this time, as well as a-moderate amount of working capital. The proceeds of the sale will be applied approximately as follows: Purchase of Country Club District Service Co. property ....................... .................:.'$133,500.00 Reconditioning of hydrants and valves ............. 11500.00 Reconditioning of Fiftieth Street main............. 500.00 New pump house and landscaping .................... 59000.00 Sa- fa,1- .Y.' %• ladder on tank and miscellaneous.......... 19000.00 Appraisal and acquisition expense ................. 3,.500.00 Working capital ...............° ................• L.4000_00 $1509000.00, Future extrnsions of the water mains will be built by the Village and financed by special assessments.- -5- RATE SCHEDULE The present rate,which has been in use by the Country Club District Service Company for a number of years, is 17¢ per 100 cu. ft. gross less 10% or 15.4 per 100 cu. ft. net, which net amount is ap- proximately equal to 20 1/2¢ per 12OOO.gallons. The Village contem -. plates no changes in rates which would have the effect of reducing the net earnings in any material amount or which would jeopardize the maturity and interest requirements for the proposed bonds. The Village does, however, believe that a more scientific and equitable schedule of rates can be worked out to encourage an increase in con- sumption and possibly result in an increase in net earnings. Such a schedule would in all probability embody (1) a flat monthly charge per meter (2) a rate per 1,000 gallons for normal household use based on the winter quarters at a lower rate than now charged and (3) a lower rate for abnormal use, to encourage increased use of water for sprinkling and cooling. Such a study is to be undertaken and, if feasible, a revision of the rate structure along the above lines will be made. MANAGEYMT It is the intention of the council to place the management of the utility in charge of present employees who have had experience in the operation of water systems. The council also feels that the operation of the utility should follow the same principles and basis of costs and charges for services as would normally be followed in a privately operated system. These policies and basis of charge for various services are now under study. The council is investigating the feasibility �f placing the general direction of the utility under a Commission, although no con- clusions have been reached. APPROVING OPINION AND BONDS Proceedings incident to the proposed revenue bond issue are being directed by Mr. John Windhorst, Village Attorney with the assistance of the firm of Dorsey, Colman, Barker, Scott & Barber. An approving opinion by the latter firm will be provided the purchaser of the bonds, and bonds will be printed at the expense of the Village. -6- SUI•I:aRY OF OPE14TING COSTS (Before Interest, Depreciation, and Expc;nse of Litigation) COUNTRY CLUB DISTRICT 52VICE CO. ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wagos Payroll Taxes P.ii s cellaneous Office Rent Sub -Total ADI.iINISTRATIVE :110 GENERAL Salaries and gages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and' Expense Other General Offic.e.Salaries Sub-Total- Taxes Number of Meters June 30 Revenue Water Sales 125.00 140.00 140.00 Y E jI 160.00 795.00 805.00 1937 1938 1939 1940 1941 POWER AND PUI•;PING -0- -0- . 110.29 218.12 211.74 Operating Labor 21."00 a 22.00 ti$ 41.00 -0- 236.25 Supplies and Expense 166.88 192.68 140.91 106.80 150.68 Maintenance 24.38 - 77.05 -114.47 117.36 87.61 Power Purchased 1,938.20 1,611.80 1,854.75 23063.00 2,554.00 Water Purchased -0- -0- 64.52 19,64 342.77 Sub -Total '2 , , . -72,215.65 <2 6.0 73,371.31 DISTRIBUTION EXPENSE 20.00 55.00 77.50 91.70 106.25 Operation of Distribution (164.53 238.73 265.10 221.00 (. -0- Services .42.63 203.20 32.74 173.40 290.31 Maintenance 646.22 114.34 70.59 835.05 266.18 Services on CustomerstPremises -0- -95 X0.72 103.62 103.61 3.16 Sub -Total 688 ;? 54�.-27 T 206.95 79112.0 6 . 859. 5 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wagos Payroll Taxes P.ii s cellaneous Office Rent Sub -Total ADI.iINISTRATIVE :110 GENERAL Salaries and gages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and' Expense Other General Offic.e.Salaries Sub-Total- Taxes Number of Meters June 30 Revenue Water Sales 125.00 140.00 140.00 150.00 160.00 795.00 805.00 787.50 800.00 1,815:00 26.34 40.00 29.14 -0- -0- . 110.29 218.12 211.74 649.59 785.73 -0- .480.00 504.00 -0- -0- v1 056.63 al-.q 683.12 51 ; 74.38 71 59 _ _ 2,760.73 810.00 907.00 854.70 1,329625 1,319.00 69.25 9.30 71.69 107.45 15.24 107.77 172.79 140.84 151.75 155.64 10.00 80.00 375.00 50.00 -0- 26.34 45.11 59.10 91.02 42.57 20.00 55.00 77.50 91.70 106.25 (180.20 (164.53 238.73 265.10 221.00 (. -0- ( -0- 10.31 1.00 4.41 _ -0- _ T1,223.56 -0- -0- al,X27.&7 -0- 7 g7 27 -0- ti�1;8, -- 64.11 _ 71,433.73 591.04 1,055.08 1,136.24 461 506 568 686 832 Q12,47 48 11,,154.04 130276.10 15024.34 20,022.89 Total Operating Cost, before Interest, Depreciation,. and Expense of Litigation'. . 5 11 0 ,. 68.64 �1� 8,320.80 920 Operating Profit a7,128.38 :x5,585.40 ;6,7 0.21 77,003.54710)030.85 Average Water Sales Per Meter(a) 26..50 22.00 23.40 22.35 24.20 Operating Profit Per %deter (a) 15.20 11.03 11.90 10.21 12.05 (a) Slide Rule Calculations SUN1f,ARY OF OPERATING COSTS (Before Interest, Depreciation, and Expense of Litigation) 1,500.00 COUNTRY CLUB DISTRICT SERVICE CO. 2,444.00 94.08 -. 32.56 6.00 Y E A R S 19.29 33.06 21.25 1942 1943 1944 1945 1946 POjdER AND PUMPING -0- -0- 156.00 23.31 Operating Labor 182.65 3 392.15 J 586.50 616.25 69$.50 Supplies and Expense 145.95 142.45 :`166.00 152.83 162633 .Maintenance 51.29 - 54.95 '250.00. 123..45 34.05 Power Purchased 2,426.09 2;498,00 2,532.92 2,.242..85 2,84340 Water Purchased '_350,48 - 03 6.68 11.2 - 325.84 $2,50 .30 Sub -Total 0$166.46 0.9394.43X3$846.94 X1,940.74 �21 96.52 0,471.22 $4007.66 DISTRIBUTION EXPENSE., 1,481.47 21010.72 Operation of Distribution Services 245.50 227.26 279.73 311.28 - 568.81 Maintenance 159.36 245.41 81.51 20.00 - 280.36 Services on,Customerst Premises Sub 6� T 389.40 2 600.6 2 1,062.05 � -Total X1,015. 862.07 ;v 961-87 p1,25 .01 X1,911.22 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADI4;INISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters June 30 Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter( Operating Profit Per Meter (a) (a) Slide Rule Calculations 225.00 224.50 200.10 339.05 -349.50 21470.00 22633.75 22263.75 23175.00. 21760.00 -0- -0- -0- . -0- -0- 800.34 834.54 879.01 817.61 847.06 -0- -0- -0- -0- -0- ;D,495.34 a3 692.79 0�342.46 �3,3'� 31.66 '43,956-56 1,541.25 1,500.00 19594.50 1,791.50 2,444.00 94.08 -. 32.56 6.00 - 9.38 19.29 33.06 21.25 2lo60 21.60 21.75 25.00 25.00 -0- -0- 156.00 23.31 44.97 40.47 42.01 . 45.48 111.25 123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 ( 10.00 2030 12.23 ( -0- ( -0- ( -0- 123,50 -0-� -0- -0- $2,50 .30 "p1,980.21 51,796.82 X1,940.74 �21 96.52 1,388061 1,121,90 �11221E.48 1,481.47 21010.72 895 904 917 923 956 (1007 6/10/47) ;318,238.71 18,169.34 19,332.33 199036027 23,929.03 11,572 33 11_ ,Oj1.40 11 172.97 11 .481.10 882.68 36 .38 ''7,1]-7.9442P159.36 0`7 ,555.17 X9,04 .35 a)3 20.40 20.20 $ 21.10 20.503' 25.00 7.25- 7.84 8.91 8.18 9.46 POWER AND PUA9'ING Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased Sub -Total DISTRIBUTION EXPEkiSE Operation of Distribution Services Maintenance Services on Consumers' Premises Sub -Total ACCOUNTING AND COLLECTION Meter Reading Salaries and Wages Payroll Taxes. Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes . Federal Capital Stock Tax 'Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter (a) Operating Profit Per Hoter (a) (a) Slide Rule Calculations ESTIIJITED OP�tATION BY VILLAGE OF EDINA ES'1`il j,TE FOR NO1:3• nL Yli]kl , 1,000.00 ( ( 450.00 ( ,( 3.350.00 4,800.00 600.00 500.00 1.000.00 2,100,00 P 400.00 600.00 -0- 650.00 -0- 1,650.00- 1,200.00 50.00 ?5.00 500.00 Legal and Audit -0- -0- ( ( 250.00 -0- 2,075.70 1,600.00 Village and School 1025 22,550.00 3 12; 2,00 1o,325.00 Available for Bonds and Interest 22.00 (10 Yr. Average- ,'f22.35) 10.00 (10 Yr. Average - ;`10.18) PROJECT IM MATURITI _;S1-EARNII�GS AND SURPLUS WATER DEPARTyiENT - VILLAGW OF EDINA TOTAL ANTICIPATED REQUIRZ iMTTS NET EARNINGS RESERVE INTEREST FOR AVAILABLE FOR FOR 1 YR. YEAR C 2% AATURITX DEBT SERVICE DLBT SERVICE DEBT SERVICE SURPLUS 1948 a 31000.00 -0- 31000.00 yP` 10,000.00 %,000.00 1949 32000.00 5,000.00 8,000.00 102500.00 7,900.00 1950 2,900.00 5,000.00 7,900.00 11,000.00 7,800.00 1951 2,800.00 5,000.00 72800.00 11,500,00 .7,700.00 1952 21700.00 5,000.00 7,700.00 12,000.00 7,600.00 1953 2,600.00 71000.00 71600.00 12,500,00 9;460.00 1954 22460.00 7,000.00 9,460.00 13,000.00 9,320.00 1955 2,320000 7,000.00 9,320.00 13,500.00 9,180.00 1956 2.180.00 7,000,00 9,130.00 14,000.00 10,040.00 1957 2,040.00 8,000.00 10,04o.00 142500.00 9,880.00 1958 1,880.00 82000.00 9,880.00 15,000.00 9,720.00 1959 1,720.00 8,000.00 92720.00 15,500.00 9,560.00 1960 1,560.00 8,000.00 9,560.00 16,000.00 11,400.00 1961 1,400.00 10,000.00 11,400.00 16,500.00 11,700.00 1962 1,200.00 10,000.00 11,200.00 17,000.00 112000.00 1963 1,000.00 10,000.00 112000.00 17,500.00 10.9800.00 1964 800.00 10,000.00 10,800.00 13,000.00 10,600.00 1965 600.00 10,000.00 10,600.00 13,500.00 10,400.00 1966 400.00 101000.00 10,400.00. 19,000.00 10,200.00 1967 200.00 10,000.00 10,200.00 19,500.00 -0- r 2,600.00 5,800.00 9,600.00 14;000.00 17,040.00 209720.00 25,040.00 29,000.00 33,620.00 38,900.00 44,840.00 51,440.00 57,740.00 63,740.00 69,440.00 76,840.00 84,940.00 93,740.00 113,240.00 STATEMENT RELATING TO PROPOSED WATER WORKS REVENUE BONDS VILLAGE OF EDINA, MINNESOTA VILLAGE OF EDINA The Village of Edina is located immediately Southwest of and adjacent to the City of Minneapolis. In area it comprises an entire township which has been organized and is operated as a Village under Minnesota general Statutes. The population of the entire Village is approximately 8,000, and the assessed valuation of the Village in 1946 was $4,359,500.00. The principle development of the area, as a residential com- munity, began in 1923 and 1924 with the development of the Country Club District by Thorpe Bros. of Minneapolis, by whom the original water works system in the .Village was installed, in connection with that development. The Country Club District as well as the South and West of the original development, finest residential areas in the United States. ably with such areas as Shaker Heights in Cleve Country Club District of Kansas City, Missouri, original development was modeled. a substantial area to comprises one-of the It compares very favor - land and with the on which much of the The area served by the water works hereinafter described is occupied largely by highly successful business and professional people employed in Minneapolis and adjoining suburbs. Business conducted within the Village is limited to a rela- tively small, but high grade, shopping area centering about the corner of France Avenue and Fiftieth Street and occupying approximately three square blocks and.a few smaller developments in various parts of the Village. WATERWORKS The original waterfvorks system serving the Country Club District consisted of a distribution system supplied with water pur- chased wholesale from the City of Minneapolis together with a 75,000 gallon elevated storage tank located near Fiftieth Street and Woodale Avenue. The franchise issued to Thorpe Bros. was held in the name of the Country Club District Service Co. In 1935, control of this company and the franchise were acquired by Mr. Oscar Gaardin, under whose management.two deep wells were drilled, pumps and pump houses were:'installed-:-.and,substantial extensions of water mains comprising the d str`ibiition .system were built. Between 1940 and the present date a number of water main extensions were built by�the Village'and financed by special assess- ments against the benefited.property, although service for such extensions was provided by the:Country Olub District Service Co. WATERWORKS (Cont ' d) As a nreliminary-step to the purchase of the property from the Country Club District Service Co.. the�Village Council caused an appraisal to be made of the property owned by the Country Club District Service Co., as well as of certain other portions of the original waterworks system the ownership of which was disputed by the Village. On June 3 147, agreement was reached between officers of the Country Club Dis ;rict Service Co. and the Village Council regarding the purchase of the Service Companies properties for the sum of $133,500.00. The tabulation below summarizes the principle items compris- ing the total waterworks system in the Village of Edina which serves approximately 50% of the residences or some 4,000 people: . 1 - 75,000 gallon elevated tank on 100 ft. tower * 3 - Deep wells and motor driven deep well pumps * 2 - Pump houses Necessary real estate for above distribution system consisting of: 109355 ft. - 81! CI main 641490 ft. - 6" CI main 3,872 ft. - 4" CI.. main 354 ft. - 2" CI main 831 ft. - Miscellaneous small galvanized iron main 134 Hydrants The entire distribution system is adequately, although not abundantly valved, permitting reasonable sectionalizing of the system for main- tenance work. One of the three wells* was completed early in June 1947 near 54th Street and Halifax Avenue by the Country Club District Service Co. The necessary pump and its installation are included in the purchase price although installation of the pump has not been completed at this time, pending necessary electrical.connections. The necessary pump louse* for this equipment is not included in the purchase price but will be built from the proceeds of the proposed issue of revenue bonds. -2- WATER SUPPLIES Water is obtained from deep wells driven to an abundant supply in the Jordan.Sandstone. The quality of the water is excellent with a hardness of approximately 15 1/2 grains per gallon and is delivered by the pumps at an average of approximately 4 OF.- One small area is served with water purchased wholesale from the City of Minneapolis at rates somewhat in excess of those paid within the Village. It is expected that this area will be connected to the Village Distribution System in the near future. The total purchase of water in the year 1946 amounted to only $568.78. The combined capacity of the two present wells is 2,200 gallons per minute which with the overhead storage has been ample to date to take care of all demands. The maximum observed demand is- reported by Mr. Gaardin to have been approximately 1,cY00 gallons per minute. The new well at 54th and Halifax Avenue will have a capacity 'of 1 200 gallons per minutes thus increasing total capacity bar more than �O%. There have been some complaints of low pressure in certain areas during peak use seasons. It is expected that this shortcoming will be largely corrected by the installation of the new well and pump, by providing a source of supply near the area in which the complaints have originated. It is expected that this new well will also provide for reasonably expected growth for some years to come. It is probable however, that within five to ten years at least one additional well and additional elevated storage for adequate fire protection will be required. The cost of such additions should not exceed $50,000.00, and if required will be financed by additional revenue warrants that will be easily amortized by.the increased demand and revenue. -3- VALUE OF PROPERTY The total value of the physical property which will comprise the Village Water system as of June. 30, 1947 is estimated as follows:. PROPERTY FROM COUNTRY CLUB DISMUI•SERVIC U0. On the basis of reproduction cost as of March 1, 19469 including additions during 1946 and 1947, at cost: Original distribution system Additions to distribution system Production and supply PROPERTY FROM VILLAGE Distri— b� ut on system at cost SUMMARY ~Lana– Buildings Wells and pumps Distribution system Tank and tower TOTAL Reproduction Reproduction Costs and Costs as of .Additions 3 -1 -46 plus Adjusted to Original Additions 6 -30 -47 for Cost at Cost Depreciation $ 589656.88 $ 78,155.00 $ 53,792.61 68,696.48 40,858.44 $178,211. 830 9o,1F6.6o 6 120.08 224,441. 81, 80. 71 17. 42 9�66 ,416.26 $489281076 98 28 6 96,04_7.6 267-9376 $322,725.24 $269,463-96 ----------- ----- - - - - -- ----- - - - - -- $ 5,200.00 2,124.42 25,112.02 22g,684.92 ,174.00 $266,495.36 $ 51400.00 2,997.63 34, �55.80 266, 5;. 16 ,1 ,31 .65 $322,725.24 $ 5,400.00 2,359.42 2612 72 231,669.00 _ �,795.82 $269,463- 96 It will be noted that the above figures for reproduction are based on an appraisal as of March 1, 1946, and cost for additions during the remainder of 1946 and 1947 for property acquired from the Serfrtce Co., and at cost for property built by the Village. Reproduction as of the present time would, no doubt, be ten to fifteen per cent higher. CONNECTED METERS There are at present 1,007 connected meters. The existing distribution system and extensions now under construction will serve 411 vacant lots and 58 potential consumers now served by private wells. Construction has been started or permits issued for 18 new homes which will soon call for water connections. A review of growth ever the past ten year attached Exhibit I, shows an average year. During the war there was, of average increase would normally have annual increas course, little been-much more. s, as.shown e of 55 me growth so on the ters per the For purposes of projecting future income we have assumed an average yearly increase of 50 meters. N WNINGS Exhibit I attached shows.in detail the operating costs of the water works system for the past ten years as derived from audited - annual reports of the Country Club District Service Co. The estimated annual operating expense for a normal year is also detailed in this Exhibit and is derived from a study of the ten year operating record during which time existing rates have been maintained. The average annual gross revenue per meter for the ten year period has been $22.35. The average annual operating profit before interest and depreciation charges has been $10.18. Some economies can be expected under municipal operation due to the fact that much of the supervisory and clibrical work can be handled by employees whose time is charged in part to other Village functions. In estimating income available from future operations revenues of $10.00 per meter per year as available for debt service have been assumed. It should be noted that during the last five years, rainfall has been substantially above normal so that the net earnings for those years have been somewhat less than for the ten year period which it is believed provides a more dependable average. Expenditures by the Company for service on the consumers premises, such as meter repairs and maintenance, have been an increas- ingly substantial item. Inasmuch as meters are owned by the customers. it will be the policy of the Village to charge.reasonably for such service. FINANCIAL REQUIREMENTS The Village contemplates that an open -end issue of Revenue Bonds in the amount of $150,000 will provide sufficient funds for the purchase of the property of the 'Country Club District Service Co. , such capital improvements as are necessary at this time, as well as. a moderate amount of working capital. The proceeds of the sale will be applied approximately as follows: Purchase of Country Club District Service Co. property .... ............................... : ... $133,500.00 Reconditioning of hydrants and valves ............. 19500.00 Reconditioning of Fiftieth Street main....o.. .... 0 500.00 New pump house and landscaping .................... 59000.00 Safaty. ", ladder on tank and miscellaneous.......... 1 000.00 Appraisal and acquisition expense ................. 3,500.00 Working capital...... F.-2,000.00 $150,000.00 Future extensions of the water. mains will be built by the Village and financed by special assessments. -5- RATE SCHEDULE The present rate,which has been in use by the Country Club District Service Company for a number of years, is 17¢ per 100 cu. ft. gross less 10% or 15.4 per 100 cu. ft. net, which net amount.is ap- proximately equal to 20 1/2¢ per 1,000 gallons. The Village contem- plates, no changes in rates which would have the effect of reducing the net earnings in any material amount or which would jeopardize the maturity and interest requirements for the proposed bonds. The Village does, however, believe that a more scientific and equitable schedule of rates can be worked out to encourage an increase in con- sumption and possibly result in an increase in net earnings. Such a schedule would in all probability embody (1) a flat monthly charge per meter (2) a rate per 1,000 gallons for normal household use based on the winter quarters at a lower rate than now charged and (3) a lower rate for abnormal use, to encourage increased use of water for sprinkling and cooling. Such a study is to be undertaken and, if feasible, a revision of the rate structure along the above lines will be made. MANAGEMENT It is the intention of the council to place the management of the utility in charge of present employees who have had experience in the operation of water systems. The council also feels that the operation of the utility should follow the same principles and basis of costs and charges for services as would normally be followed-in a privately operated system. These policies and basis of charge for various services are now under study. The council is investigating the feasibility r-f placing the general direction of the utility under a Commission, although no con- clusions have been reached. APPROVING OPINION AND BONDS Proceedings incident to being directed by Mr. John Windho assistance of the firm of Dorsey, An approving opinion by purchaser of the bonds, and bonds the Village. the proposed revenue bond issue are rst, Village Attorney with the .Colman, Barker, Scott & Barber. the latter firm will be provided.the will be printed at the expense of -6 SUi -;ARY OF OPERATING COSTS (Before Interest, Depreciation, and Lxpcnso of Litigation) COUNTRY CLUB DISTRICT S RVICE Co. POWER ZD PUPPING Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased Sub -Total . DISTRIBUTION XPD\JSE Operation of Distribution Services Maintenance Services on Customers'Premiscs Sub -Total ACCOUNTING AND. COLLECTIONS Motor Reading Salaries. and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADI-:INISTR «TIVE X0 GI]NERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax, Idscellaneou.s Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Dieters June 30 Revenue 1-later Sales Y E R S _ 1937 _1_938 1939 1940 1941 4 21.00 : 22.00 ti 41.00 -0- 236.25 166.88 192.68 140.91 106.80 150.68 24.38 77.05 114.47 117.36 87.61 1,938.20 1,611.80 12854.75 2,063.00 21554.00 -0- -0- 64.52 .179.64 -3T 42.77 P'2,150.46 q1 3.53 X2,215.65 � 2 466 .80 X3 2371.31 42.63 203.20 32.74 173.40 290.31 646.22 114.34 70.59 835.05 266.18 -0- 230.72 1� 03__62 103.61 303.16 3 688.85 4j 548.2 � 206.95 � 1,112.0 t� 85 5 125.00 1 -40.00 140.00 150.00 160.00 795.00 805.00 787.50 800.00 1,815.00 •26.34 40.00 "29.14 -o- -0- 110.29 218.12 211.74 649.59 785.73 -0- 480.00 504.00 -o- -0- 41, 056.63. �13.12 . 1, 674.38 al, 599.59 810.00 907.00 854.70 1,329.25 1,319.00 69.25 9.30 71.69 107.45 15.24 107.77 172.79 140.84 151.75 155.64 10.00 80.00 375.00 50.00 -0- 26.34 45.11 59.10 91.02 42.57 20.00 55.00 77.50 91.70- 106.25 (180.20 (164.53 238.73 265.10 221.00 ( -O- ( -0- 10.31 1.00 4.41 -0- 'P1 223.5 � -0- �1 433. , 73 -0- „- yv2, 087.27 ,�- 864.--_ ti�l; 864.11 � ., 827.7 a1, 827.87 591.04 1,055.08 11136.24 461 506 568 686 832 1)12,24748 11,154.04 13,276.10 15,324.34 20,022.89 Total Operating Cost, before Interest, Depreciation, and Expense of Litigation 5.119.50 -9568. 6;515.89 8 20.80 9,992.04 Operating Profit X7,128.38 X5,585.40 p6,760.21 �7,003.54�U.9030.85 Average Water Sales Per Peter(a) 26.50 22.00 23.40 22.35 24.20 Operating Profit Per Leter (a) 15.20 11.03 11.90 10.21 12.05 (a) Slide Rule Calculations SUM1,MY OF OPERATING COSTS (Before Interest, Depreciation, and Expense of Litigation) 1,594.50 COUNTRY CLUB DISTRICT SERVICE CO. .2,444.00 94.08 32.56 6.00 Y E A R S 19.29 33.06 21.25 1942 1943 1944 1945 1946 POIwr AND PUMPING -0- -0- 156.00 23.31 Operating Labor 182.65 3 392.15 '.a 586.50 616.25 69$.50 Supplies and Expense 145.95 142.45 166.00 152.83 162.,33 Maintenance 51.29 '54.95 250.00 123.45 3465 Power Purchased 2,426.09 2,498..00 2,532.92 2,242.85 2384340 Water Purchased - 3601.48 '_ 306.88 335.84 56878 Sub -Total '3,166.46 $3,394.43 �3,846.94 ;3,471.22 ,307. DISTRIBUTION EXPENSE 1,224.48 1,481.47 22010.72 Operation of Distribution Services 245.50 227.26 279.73 311.28 568.81 Maintenance 159.36 245.41 81.51 20.00 280.36 Services on Customersi Premises 6� Sub 389.40 600.6 .7 1,062.05 -Total ;1,015. 2 862.07 ;;v 961.87 X1,256.01 x,911.22 ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADriINISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes 225.00 224.50 200.10 339.05 349.50 21470.00 2,633.75 29263.75 2,175.00 22760.00 -0- -0- -0- -0- -0- 800.34 834.54 - 879.01 817.61 847.06 -0- -0- -0- -0- -0- `'3,495.34 333692.79 33,342.86 331.i66 43,9'r 56.56 1,541.25 1,500.00 1,594.50 1,791.50 .2,444.00 94.08 32.56 6.00 9.38 19.29 33.06 21.25 21460 21.60 21.75 25.00 25.00 -0- -0- 156.00 23.31 44.97 40.47 42.01 45.48 111.25 123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 ( 10.00 .2.30 12.23 ( -0- ( -0- ( .218.95 123.50 -o- -o- -o- $2, 50 .30 31, 980.21 70177-99"-_82 .-82 31, 9"T 40, 74 S 2.,696-52 1088.61 1,121.90 1,224.48 1,481.47 22010.72 Number of Meters June 30 895 904 917 923 956 (1007 6/10/47) Revenue Water Sales ;18;238.71 18,169.34 19,332.33 19,036.27 23,929.03 Total Operating Cost, before Interest, Depreciation, and Expense of Litigation 11 Operating Profit Average Water Sales Per Meter(a)$ Operating Profit Per Meter (a); (a) Slide Rule Calculations 2. 11_ ,051_.40 11.172.97 11 81.10 882.68 ►, 66.38 • 7,117�94 X8,159.36 Q7,555.17 ;"p'9,046-35 20.40 jp 20.20-$ 21.10"$ 20.50 p 25.00 7.25 7.84 8.91 8.18 9.46 POWER AND PUAUIING Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased Sub -Total DISTRIBUTION EXPENSE Operation of Distribution Services Maintenance Services on Consumers' Premises Sub -Total ACCOUNTING AND COLLECTION Meter Reading Salaries and Wages .Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL _Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax 'Miscellaneous Supplies and Expense Other General Office.Salaries Sub -Total Taxes Number of Meters Revenue Water Sales Total Operating. Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter (a) Operating Profit Per dieter (a) (a) Slide Rule Calculations ESTILATED OPz ATION BY VILLAGE OF EDINA ESTII�Z,TE FOR NOIU --IAL YEAR 1,000.00 ( 1,50.00 ( ( 3.350.00 4,800.00 600.00 500.00 1.000.00 2,100,00 400.00 600.00 -0.. 650.00 -0- D 1,650.00 1,200.00. 50.00 75.00 500.00 -0- -0- ( 250.00 -0- 2;075.00 1,600.00 1025 22,550.00 a 12:225.00 10,325.00 h 22.00 10.00 Legal and Audit Village and School Available for Bonds and Interest (10 Yr. Average -22.35) (10 Yr. Average - ;10.18) PROJECTED Iv;aTURITIES, EARNIiJGS AND SURPLUS WATER DEPARITENT - VILLAGE OF EDINA TOTAL ANTI CI Pit TED REQUIREI,J;i`:TS NET EARNINGS RESERVE INTEREST FOR AVAILABLE FOR FOR 1 YR. t1R (D 2% MATURITY. DEBT SERVICE DEBT SERVICE DEBT SQVICE SURPLUS 1948 3,000.00. -0- a 3,000.00 P 10,000100 ti q,,OoO.00 1949 3 ;000.00 5,000.00 8;000.00 10,500.00 7,900.00 2,600.00 1950 2;900000 5,000.00 7,900.00 11,000.00 7,800.00 5,800.00 1951 '1952 2,800.00 5,000.00 7,800.00 11,500.00 7,700.00 9,600.00 2)700.00 5,000.00 7,700.00 12,000.00 7,600.00 14;000.00 1953 2,600.00 7,000.00 7,600.00 12,500.00 9.;460.00 17,040.00 1954 2,460.00 7,000.00 9,460.00 13,000.00 9,320.00 209720.00 1955 2,320.00 7,000.00 9,320.00 13,500.00 9,180.00 25,040.00 1956 2.180.00 7,000.00 9,1 ^0.00 14,000.00 10,040.00 29,000.00 1957 2,040.00 8,000.00 .105040.00 14,500.00 9,880.00 33,620.00 1958 1;880.00 81000.00 9,880.00 15,000.00 9,720.00 38,900.00 1959 1,720.00 8,000.00 9,720.00 15,500.00 9,560.00 44,840.00 1960 1,560.00 8,000.00 9,560.00 16,000.00 11,400.00 51,440.00 1961 1,400.00 10;000.00 11,400.00 16,500.00 11,700.00 57,740.00 1962 1,200.00 10,000.00 11,200.00 17,000.00 11,000.00 63,740.00 1963 1,000.00 102000.00 11,000.00 17,500.00 10,800.00 69,440.00 1964 800.00 10,000.00 10,800.00 18,000.00 10,600.00 76,840.00 1965 1966 600.00 10,000.00 10,600.00 18,500.00 10,400.00 84,940.00 400.00 10,000.00 10,400.00 19,000.00 10,200.00 93,740.00 1967 200.00 105000.00. 101200.00 19,500.00 -0- 113,240.00 c- VILLAGE OF EDINA 4801 WEST FIFTIETH STREET EDINA, MINNESOTA June 20, 1947 To Interested Parties: There is enclosed herewith, data with respect to the proposed revenue bond issue of the Village of Edina.far the purpose of purchasing the Water Woiks facilities heretofore operated in said Village by the Cdrantry Club District Service Company, Any further information desired may be secured from the Council or by contacting Mr. Harold Utley, Chairman of the Village Public Utilities Committee; -Offers for the purchase of such bonds will be enter- twined by the Council'subject to prior sale, up to and including June 26, 1947. VILLAGE OF EDINA I VILLAGE OF EDINA 4801 WEST FIFTIETH STREET EDINA, MINNESOTA z June 20, 1947 i To Interested Parties: There is enclosed herewith, data with respect to the proposed revenue bond issue of the Village of Fdina for the purpose of purchasing the Water Works facilities heretofore operated in said Village by the Country,Club District Service Company. ' Any further information desired 'may be secured from the Council or by contacting Mr. Harold Utley, Chairman of the Village Public Utilities Committeeg Offers for the purchase of such bonds will be enter - tained by the Council subject to prior sale, up to and including June 26, 1947+ VILLAGE OF EDINA VILLAGE OF EDINA 4801 WEST FIFTIETH STREET • EDINA, MINNESOTA June 20, 1947 To Interested Parties: There is enclosed herewith, data with respect to the proposed revenue bond issue of the Village of Edina for the purpose of purchasing the Water Works facilities heretofore operated in said ViLLage by the Country Club District Service Company,: Any further information desired may be secured from the Council or by contacting PZr., Harold Utley, Chairman of the Village Public Utilities Committee, Offers for the purchase of such bonds will be enter - tained by the Council subject to prior sale, up to and including June 26., 1947. VILLAGE OF EDINA 0 A / JI PREPARED BY APPROVED BY INITIALS DATE 1 �I I� I i CARB60`N AND ALLOY STEEL CASTINGS L4�c ' Minneapolis Tleetrgc Steel Castings Company Columbia Heights, 3800 N. E. Fifth Street MINNEAPOLIS 13, MINNESOTA June 26, 1947 Village of Edina 4801 West 50th Street Minneapolis 10, Minnesota Attention: Mr. Ben Woehler Gentlemen: ELECTRIC PROCESS You will find herewith enclosed copy of my response to a letter from Mr. Oscar Gaarden of the Country Club District Service Company, copy of which you have, regarding the water mQter belonging to me which is in storage at the pumphouse. Due to the fact that I shall be unable to contact you before the first of July because I must be out of the city between now and that date, I am addressing this letter to you in order that the matter may be properly filed with the Village as a matter for adjustment when the Edina water utility passes to the ownership of. the Village, of which transfer I am for the first time advised in the County Club District Service Company's letter above- mentioned. Thank you for your consideration and I shall be calling upon you on my return to discuss the matter. Si ly yours mk Att/l S. V. Wood build `With Steel .1-0ustings June 26, 1947 Country Club District Service Company 4611 Wooddale Avenue Minneapolis 10, Minnesota Attention: Mr. Oscar Gaarden, Manager Gentlemen: Thank you for your letter of June 19th relative to the 2 -.inch water meter belonging to me and which you advise me in the above - mentioned letter is in storage at the present time at the pumphouse. You will find herewith enclosed a copy of a'letter which I have just addressed to Mr. Ben Woehler of the Village of Edina relative to the .matter. It would appear to me that this will put this matter on record so that when transfer is made to the Village on July 1st I should have no diffibulty in adjusting.whatever difference there may be and in the meantime I shall endeavor to call at the Village office relative to the matter. Thank you very much for your prompt response by letter to my telephone call of recent date. Yours very truly S. V. Wood mk N. COUNTRY CIAB DISTRICT SERVICE COMPANY SUTP EVENSES 193 6 8/10/36 Burlingame & Hitchcock, Engrs. (Water Softening Report) $ 75.00 Nothing listed under this Classification for 1937 ..0,.. Nothing listed under this Classification for 1938 -0.. 27U/39 Stinchfield, Crounse, McNally & Moore -Legal opinion and brief $300.00 5/8/39 9/11/39 Professional Services 250.00 MOO $1,150.0 ! 2 12/40 3/11/40 Karl C. " Schmidt " " ExpenseWitness� $100.00 34U/40 Stinchfield,Piackall,Crounse & Moore Services Witness Professional Services 804.50 1048.23 4/0/40 Clarence Holten Legal Fees 625.00 )D/14/40 a StinchfieldsMAckalliCrounse & Moore Professional Services 1.000.00 $30877,73 3 43 a.yy. inn. C. Ward Transcript of Case 545.60 Hennepin Cyj Review 25 Copies-Supreme 11/41 Postage Court Record flings ?95.00 _ 1.00 $1041.60 2 9/42 Hennepin County Review Briefs 346.80 9/14/42 BlackburnsAickels & Smith Appeal Bond Renewal. _ 20.003 366.80 1 3/1/43 Stinchfield,Mackall,Crounse & Moore Final Payment of 6/28/43 St.Paul Fire & 41arine Ins, Co. Court Costs Expenses 10,086.81 2694.19 7/12/43 Stinchfield,Mackall,Crounse & Moore Professional Services 83.00 Miscellaneous Expense 2.95$10,441.95 1 A2/44 StinchfieldA%ckall,Crounse & Moore Professional Services 560,34 6/26/44 Karl C. Schmidt " " 905.73 1046607 1 479745 Stinchfield,Mackall,Crounse & Moore n 599.71 1949. Nothing listed for 1946, 271-0/47 Herman T. Hagestad Bd, of Appraisers 377.15 Karl C. Schmidt n it rr 1,650.70 2,029.85 _ TOTAL EXPENSES TO DATE $210348.71 VILLAGE OF EDINA 4kI WEST FIFTIETH STREET -EDINA, MINNESOTA April 152 1947 Mr. Harold C. Utley Ernst & Ernst 1204-First Natl.-Soo Line Bldg. Minneapolis., Minn. ERNST & E '01N" CA. APR 16 1947 Dear Mr. Utley: Re: Water System Letter from H.O.Frank The Council., at their regular meeting of last evening, asked us to refer this letter to you for your reply. In this connection., it has been suggested that an explanation of the status of the Water System be incorporated in our Letter to Taxpayers. Yours - ery t: M ruly C 0 - Y Minnesp olis, Minn; April 7; 1947 Village of Edina, 4$01 West 50th Street . Minneapolis 10, Minn. Mayor and Trustees:';.- I am just one of those taxpayers who wanders and wonders - about our water works. Am informed that over a period of years the Village has paid out ' to attorneys $20,000.00 to $30,000.00 - and "we won our case" but are still paying for water to the same old parties. Where do we stand on this matter, and why has it not been settled to the complete and final end - one way or other; or are we to go thru the courts again? The people of the Village are at loss to figure out just where they stand-.on this vital .matter - they are entitled to know _. definitely. The matter should not be further delayed either if it.has not Veen settled. How about it? Yours very truly, (Signed) Harry 0. Frank 4602 Wooddale Ave. Edina - Minn. 'o ` COUNTRY CLUB DISTRICT SERVICE COMPANY SUIT EXPENSES 1936 8/10/36 Burlingame.& Hitchcock, :Engrs. (Water Softening Report) 75.00 1937 Nothing listed under this Classification for 1937 -0- 1938 Nothing listed under this Classification for 1938 -0- 1 2T1_3/39 Stinchfield, Crounse, McNally & Moore -Legal opinion and brief $300.00 5/8/39 " " " " - Professional Services 250.00 9/11/39 n n: it it - ii if 00.00 $1,150.00 1940 27U/40 Karl C.. Schmidt Expense- Witness; $100.00 3/11/40 if " 'r Services- Witness> 804.50 3/11/40 Stinchfield,Macka.11,Crounse & Moore Professional Services 1,348.23 4/8/40 Clarence Holten Legal Fees 625.00 10/11/40 Stinchfield,Mackall,Crounse & Moore Professional Services 1,000.00 $3,877.73 41 Wm. C. Ward Transcript of Case 545.60 11/41 Hennepin Cy. Review 25 Copies - Supreme Court Record 795.00 11/41 Postage Mailings 1.00 $1,341.60 1 2 9/42 Hennepin County Review Briefs 346.80 9/14/42 Blackburn,Nickels & Smith Appeal Bond Renewal 20.00$ 366.80 1 3T1/43 Stinchfield,Mackall,Crounse & Moore Final Payment of Court Costs 10,0$6.81 6/28/43 St.Paul Fire & Marine Ins, Co. Expenses 269.19 7/12/43 Stinchfield,Mackall,Crounse & Moore Professional Services 83,00 Miscellaneous Expense 2.95$10,441.95 1 6/-2T/44 Stinchfield,Mackall,Crounse & Moore Professional Services 560.34 6/26/44 Karl C. Schmidt " " 905.73 1,466,07 1 4/ 9 45 Stinchfield,Mackall,Crounse & Moore " " 599.71 1949 Nothing listed for 1946, 2/1-0/47 Herman T. Hagestad Bd. of Appraisers 377.15 Karl C. Schmidt - it it it 1,650.70 2,029.85 TOTAL EXPENSES TO DATE $21,348.71 STATEMENT RELATING TO,PROPOSED WATER WORKS REVENUE BONDS VILLAGE OF EDINA, MINNESOTA VILLAGE OF EDINA The Village of Edina is located immediately. Southwest of and adjacent to the City.of Minneapolis. In area it comprises an entire township which has been organized and is operated as'a Village under Minnesota general Statutes. The population of the entire Village is approximately 8,000, and the assessed valuation of the Village in 1946 was $4,359,500.00. The principle development of the,_area,.as a residential com- munity, began in 1923 . and 1924 with the development of the Country Club District by Thorpe Bros. of Minneapolis, by whom the original water works system in the Village was installed, in connection with that development. The Country Club'District as well as a substantial area to the South and West of the original development, comprises one of the finest residential areas in the United States. It compares very favor- ably with such areas as Shaker Heights in Cleveland and with the Country Club District of Kansas City., Missouri, on which much of the original development was modeled. The area served by the water works hereinafter described is occupied largely by highly successful business and professional people employed in Minneapolis and adjoining suburbs. Business conducted within the Village is limited to a rela- tively small, but high grade, shopping area centering about the corner of France Avenue and'Fiftieth Street and occupying approximately three square blocks and a few smaller developments in various parts of the Village. WATERWORKS The original'waterorks system serving the Country Club District consisted of a distribution system supplied with water pur- chased wholesale from the City of Minneapolis together with a 75 000 gallon elevated storage tank located near FiRieth.Street and Woodale Avenue. The franchise issued to'Thorpe Bros. was held in the name of the Country Club District Service Co. In 1935, control of this company and the franchise were acquired by Mr. Oscar Gaardin, under whose management two deep wells were drilled, pumps and pump houses were installed and substantial extensions of water mains comprising the distribution system were built. Between 1940 and the present date a number of water main extensions were built by the Village and financed by special assess- ments against the benefited property, although service for such extensions was provided by the Country Olub District Service Co. y � WATERWORKS (Cont'd) As a prelim - .Nary step to the purchase of the property from the Country Club District-Service Co., the Village Council caused an appraisal to be made of the property owned by the Country Club District.Service Co., as well as of certain other portions of the original waterworks system the owr_ership of which was disputed by the Village. On June 3 547, agreement was reached between officers of-the Country Club District Service Co. and the Village Council regarding the purchase of the Service Companies properties for the sum of $1339500e00. The tabulation below summarizes the principle items compris- ing the total waterworks system in the Village of Edina which serves approximately 50% of the residences or some 4,000 people: 1 - 75,000 gallon elevated tank on 100 ft. tower * 3 - Deep wells and motor driven deep well pumps * 2 - Pump houses Necessary real estate for. above distribution system consisting of: 10,355 ft. - 8" CI main 649490 ft. - 6" CI main 39872 ft. - 4" CI.. main 354 ft. - 2" CI main 831 ft. - Miscellaneous small galvanized iron main 134 Hydrants The entire distribution system is adequately, although not abundantly valved, permitting reasonable sectionalizing of the' system for main- tenance work One of the.three wells* was completed early in June 1947 near 54th Street and Halifax Avenue by the Country Club District Service Co. The necessary pump and its installation are included in the purchase price although installation of the pump has not been completed at this time, pending necessary electrical connections. The necessary pump liouse* for this equipment is not included in the purchase price but will be built from the proceeds of the proposed issue of revenue bonds. -P- ;- WATER SUPPLIES Water is obtained from deep wells driven to an abundant supply in the Jordan Sandstone. The quality of the water is excellent with a hardness of approximately 15 1/2 grains per gallon and is delivered by the pumps at an average of approximately 48 °F. One small area is served with water purchased wholesale from the City of Minneapolis at rates somewhat in excess of those paid within the Village. It is expected that this area will be connected to the Village Distribution System in the near future. The total purchase of water in the year 1946 amounted to only $568.78. The combined capacity of the two present wells is 29200 gallons per minute which with the overhead storage has been ample to date to take care of all demands. The maximum observed demand is reported by Mr. Gaardin to have been approximately 1 900 gallons per minute. The new well at 54th and Halifax Avenue will have a capacity of 1 200 gallons per minute, thus increasing total capacity by more than �O %. There have been some complaints of low pressure in certain areas during peak use seasons. It is expected that this shortcoming will be largely corrected by'the installation of the new well and pump, by providing a source of supply near the area in which the complaints have originated. It is expected that this new well will also provide for reasonably expected growth for some years to come. It is probable however that within five to ten years-at least one additional well and additional elevated storage for adequate fire protection will be required. The cost of such additions should not exceed $50,000.00, and if required will be financed by additional revenue warrants that will be easily amortized by the increased demand and revenue. -'A - VALUE OF PROPERTY The total value of the physical property which.will comprise the Village Water system as of June 309 1947 is estimated as follows: PROPERTY FROM COUNTRY CLUB 5—ISTRICT SERVICE CO. On the basis of reproduction cost as of March 19 1946, including additions during 1946 and 1947, at cost: Original distribution system Additions -to distribution system Production and supply PROPERTY FROM VILLAGE D stribut on system - at cost SUMMARY FLand- Buildings Wells and pumps Distribution system Tank and tower TOTAL Reproduction Costs as of 3 -1 -46 plus Original Additions Cost at Cost Reproduction Costs and Additions Adjusted to 6 -30 -47 for Depreciation $ 582656.88 $ 78,155.00 $ 53,792.61 68,696.48 40,858-44 $-168 , 211.8b 9o,1E6.6o 6 12o.o8 $2241441.6b 441.6b 81, 80. 71 ,42. 66 $1732416.2b 98,285.56 98 28 6 6 04 .68 $266,495-36 $3229725.24 $2 9,4 3.9b ----- - - - - -- ----- - - - - -- ----- - - - - -- $ 5,200.00 2,124.42 25,112.02 22, 684.92 ,174.00 $2669495.36 $ 5,400.00 2,997.63 4, 355.80 2962 .53.16 11,319.65 $322,725..24 $ 5,400.00 21359.42.. 26 , 239. 72 23 1,669.00 1.795.82 $269,463.96 It.will be-noted that the above figures for reproduction are based on an appraisal as of March 1, 1946, and cost for additions during the remainder of 1946 and 1947 for property acquired from the Serttce Co. and at cost for property built by the Village. Reproduction as of the present time would, no doubt, be ten to fifteen per cent higher. CONNECTED METERS There are at present 1P07 connected meters. The existing distribution system and extensions now under construction will serve 411 vacant lots and 58 potential consumers now served by private wells. Construction has been started or permits issued for 18 new homes which will soon call for water connections. A review of growth over the past ten years, asshown on the attached Exhibit I, shows an average annual increase of 55 meters per year. During the war there was, of course, little growth so the average increase would normally have been much more. For purposes of projecting future income we have assumed an average yearly increase of 50 meters. me 0 NINGS Exhibit I attached shows in detail the operating costs of the water works system for the past ten years as derived from audited annual reports of the Country Club District Service Co. The estimated annual operating expense for a normal year is also detailed in this Exhibit and is derived from a study of the ten year operating record during which time existing rates have been maintained. .The average annual gross revenue per meter for the ten year period has been $22.35. The average annual operating profit before interest and depreciation charges has been $10.18. Some economies can be expected under municipal operation due to the fact that much of the supervisory and c1brical work can be handled by employees whose time is charged in part to other Village functions. In estimating income available from future operations revenues of $10.00 per meter per year as available for debt service have been assumed. It should be noted that during the last five years, rainfall has been substantially above normal so that the net earnings for those years have been somewhat less than for the ten year period which it is believed provides a more dependable average. Expenditures by the Company for service on the consumers premises, .such as meter repairs and maintenance, have been an increas- ingly substantial item. Inasmuch as meters are owned by the customers it will be the policy of the Village to charge reasonably for such service. FINANCIAL REQUIREMENTS The Village contemplates that an open -end issue of Revenue Bonds in the amount of $150,000 will provide sufficient funds for the purchase of the property of the Country Club District Service Co., such capital improvements as are necessary at this time, as well as a moderate amount of working capital. The proceeds of the sale will be applied approximately as follows: Purchase of Country Club District Service Co. property ......... ............................... $1339500.00 Reconditioning of hydrants and valves ............. 19500.00 Reconditioning of Fiftieth Street main............ 500.00 New pump house and landscaping .................... 59000.00 Sa- faty)'-• ladder on tank and miscellaneous........... 1,000.00 Appraisal and acquisition expense ................. 39500.00 Working capital .... ............................... 000.00 $1501000.00 Future extensions of the water mains will be built by the Village and financed by special assessments. -5- RATE SCHEDULE The present rate,which has been in use by the Country Club District Service Company for a number of years, is 17¢ pet 100 cu. ft. gross less 10% or 15.4 per 100 cu. ft. net, which net amount is ap- proximately equal to 20 1/2¢ per 1,000 gallons. The Village'contem- plates'no changes in rates which would have the effect of reducing the net earnings in any material amount or which would jeopardize the maturity and interest requirements for the proposed bonds. The Village does, however, believe that a more scientific and equitable schedule of rates can be worked out to encourage an increase in con- sumption and possibly result in an increase in net earnings. Such a schedule would in all probability embody (1) a flat monthly charge per meter (2) a rate per 1,000 gallons for normal household use based on the winter quarters at a lower rate than now charged and (3) a lower rate for abnormal use, to encourage increased use of water for sprinkling and cooling. Such a study is to be undertaken and, if feasible, a revision of the rate structure along the above lines will be-made. MANAGEMENT It is the intention'of the council to place the management of the utility in charge of present employees who have had experience in the operation of water systems. The council also feels that the operation of the utility should follow the same principles and basis of costs and charges for services as would normally be followed in a privately operated system. These policies and basis of charge for various services are now under study. The council is investigating the feasibility of placing the general direction of the utility under a Commission, although no con- clusions have been reached. APPROVING OPINION AND BONDS . Proceedings incident to the proposed revenue bond issue are being directed by Mr. John Windhorst, Village Attorney with the assistance of the firm of Dorsey, Colman, Barker, Scott & Barber. An approving opinion by the latter firm will be provided the purchaser of the bonds, and bonds will be printed at the expense of the Village. -6- SM-I AR.Y OF OPER.;TING COSTS (Before Interest, Depreciation, and Lxpcnso of Litigation) COUNTRY CLUB DISTRICT Si!R.VICE CO. POWER AND PUMPING Oporatino Labor Supplies and Expense I.iaintenance Power Purchased Waster Purchased Sub -Total DISTRIBUTION EXPZNSE Operation of Distribution Services Maintenance Services on CustomerslPremises Sub -Total ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wagos Payroll Taxes 1:iscellaneous Office Rent Sub -Total ADLINISTRATIVE 10 G_;NERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Idscollaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Peters June 30 Revenue Water Sales _ YEARS 1937 1.938 1939 1940 1941 21.00 22.00 41.00 -0- a 236.25 166.88 192.68 140.91 106.80 150.68 24.38 - 77.05 114.47 117.36 87.61 11938.20 1,611.80 1,854.75 2,063.00 2,554.00 -0- r -0- 64.52 - 179.64 -3 42.77 ;2,150.46 1,903-53 �- - 2,215.65 7 66.10 0,371.31 42.63 203.20 . 32.74 173.40 290.31 646.22 114.34 70.59 835.05 a 266.18 -0- 688.85 230.72 103.62 103.61 303.16 548.27 $ 2o6.95 .;1,112.0 a 859. 5 125.00 140.00 140.00 150.00 160.00 795.00 805.00 787.50 800.00 1,815.00 26.34 40.00 29.14 -0- -0- 110.29 218.12 211.74. 649.59 785.73 -0- .480.00 504.00 -0- -0= �l 056.63 " '' , - 12 ;�1 683. :�1 , 674.3 1, 799.59 _ 2, 760.73 81040 907.00 854.70 1,329.25 1,319.00 69.25 9.30 71.69 107.45 15.24 107.77 172.79 140.84 151.75 155.64 10.00 80.00 375.00 50.00 -0- 26.34 " 45.11 59.10- 91.02 42.57 20.00 55.00 77.50 91.70 .106.25 (180.20 (164.53 238.73 265.10 221.00 ° ( -0- ( -0- 1001 1.00 4.41 -0- T1, 223.56 -0- -0- ,1,433.73 .�;1, 827.872; -0- 087.27 -0- ;1T 864.11 591.04 1,055.08 1,136.24 461 506 568 686 832 $12,247.g8 11,154.04 13,276.10 15,324.34 20,022.89. Total Operating Cost, before Interest, Depreciation, and Expense of Litigation 5.119.50 J��68 _LL X15.89 20.80 92.0 Operating Profit 77,128.38 y5,585.40 ;;;6,760.21 w72003.54w10,030.95 Average udater Sales Per Meter(a) 26.50 Operating Profit Per I,:eter (a) 15.20 (a) Slide Rule Calculations 22.00 23.40 22.35 24.20 11.03 11.90 .10.21 12.05 SUM1,A.RY OF OPERATING COSTS (Before Interest, Depreciation, and Expense of Litigation) / COUNTRY CLUB DISTRICT SERVICE CO. 1,594.50 11791.50 2,444.00 94.08 32.56 6.00 9.38 19.29 33.06 21.25 21.60 Y E A R S 21.75 25.00 25.00 1942. 1943 1944 _. 1945 1946 PO_iv'ER AND PUMPING 42.01 45.48 111.25 123.75 112.50 'Operating Labor 182.65 3 392.15 ' 586.50 616.25 69$.50 Supplies and Expense 145-95 142.45 166.00 152.83 162.33 Maintenance 51.29 54.95 250.00 123.45 34t$5 Power Purchased 2,426.09 2,498,00 2,532.92 2,242.85 2,843 -'20 Water Purchased ;• 360 48 306.88 3�- 11.52 35,84 -568978 Sub -Total $31166.46 0,394.43 ;3,8440.94 W33,471.22 $4007.66 DISTRIBUTION EXPENSE., Operation of Distribution Services 245.50 227.26 279.73 311.28 568.81 Maintenance 159.36 245.41 81.51 20.00 280.36 Services on Customers' Premises 6� Sub 2 389.40 � 24: 1,062.05 � -Total x1,015. a 862.07 ,� 9 1.87 X1,256.01 x1,911.22 ACCOUNTING AND COLLECTIONS licter reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Exepsnc •General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes 225.00 224.50 200.10 339.05 349.50 22470.00 22633.75 21263.75 2,175.00 2,760.00 -0- -0- -0- -0- -0= 800.34 834.54 879.01 817.61 847.06 ,-00-- -0- -0- -0- -0- T33,495.34 02692.79 x3,342.86 x3,3` -31566 .3,9 56.56 12541.25 1,500.00 1,594.50 11791.50 2,444.00 94.08 32.56 6.00 9.38 19.29 33.06 21.25 21.60 21.60 21.75 25.00 25.00 -O- -C- 156.00 23.31 44.97 40.47 42.01 45.48 111.25 123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 ( 10.00 2.30 12.23. (-o- ( -0- ( -0- �, 218.95 123.50 -0- _0__ e -0- �2,506.30 41,980.21 $1,7"'- 96.82 x;1,9 0:74 52,696-52 1,388.61 1,121.90 1,224.48 12481.47 21010.72 Number of Meters dune 30 895 904 917 923 956 (1007 6/10/47) Revenue Water Sales P18,238.71 18,169.34 19,332.33 19,036.27 23,929.03 Total Operating Cost, before Interest, Depreciation, and Expense of Litigation • Operating Profit 11,572.33 11� 051.40 11r ,172.97 11,481.10 882.68 1666.38 77,117. 94.x8,159.36 x7,555. 17.x9,04 -35 Average Water Sales Per Meter(a) Operating Profit Per Meter (a) 4` (a) Slide Rule Calculations 20.40 20.20 $ 21.10 7.25 7.84 8.91 20.50 25.00 8.18 9.46 POWER AND PUATING 'Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased SUb -Total DISTRIBUTION EXPIISE Operation of Distribution Services Maintenance Services on Consumers? Premises Sub -Total ACCOUNTING AND COLLECTION' Meter Reading Salaries and Wages Payroll Taxes, Miscellaneous Office Rent- Sub-Total ADMINISTRATIVE AND GENERAL Salaries and Wages ,Expense General Office ,Insurance • - ,Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total .Taxes Number of Meters Revenue Water Sales Total Operating Cost., before Interest, Depreciation, and Expense of Litigation Operating Profit Average Watsr Sales Per Meter'(a) Operating Profit 'Per Meter (a) (a) Slide Rule Calculations I ESTIIJATED OP MATION BY' VILLAGE OF..EDINA ESTIKr' TE FOR NOR,iAL YEAR 1,000.00 ( ( 450.00 ( 3.350.00 4,800..00 600.00 500,00 1.000.00 a 2,100.00 400..00 600.00 -0- 650 .,00 -0- 1,650.00 1,200,00 5Q.00 75.00 500.00 Legal and Audit -0- -0- ( 250.00 -0- 2;075,00 1,600.00 Village and School 1025 ; 22,550.00 " 12 225.00 sp 10,325.00 Available for Bonds and Interest 4 22,.00 (10 Yr. Average- P22.35) 1 10,.00 (10 Yr. Average-;'10.18) PROJECTED IiATURITI ,S, EARNII\GS AND SURPLUS WATER DEPARTMENT - VILLAGE OF EDINA TOTaL ANTICIPA7ED REC`UIREI,1-11TS NET ElddlINGS RESERVE INTEREST FOR AVAILABLE FOR FOR 1 YR. MR Q 2% MATURITY DEBT SERVICE DEBT SE2VICE DEBT SQVICE SURPLUS 1948 31000.00 -0- 32000.00 10;000.00 7,000.00 1949 3,000.00 5,000.00 $;000.00 10 500.00 7,900.00 1950 2,900.00 5,000.00 7,900.00 11,000.00 7,800.00 1951 2 ;800.00 5,000.00 7,800.00 11,500.00 7,700.00 1952 .2,700.00 5,000.00 7,700.00 129000.00 7,600.00 1953 2,600.00 7,000.00 7,600.00 12,500.00 9 1460.00 1954 2,460.00 7,000.00 9,460.00 13,000.00 .91320.00 1955 2,320.00 7,000.00 91320.00 13,500.00 9,180.00 1956 2.180,00 7,000.00 9,150.00 14,000.00 10,040.00 1957 2,040.00 8,000.00 101040.00 14,500.00 9,380.00 1958 12880.00 8,000.00 9,830.00 15,000.00 9,720.00 1959 1,720.00 8,000.00 9,720.00 15,500.00 91560.00 1960 1,560.00 83000.00 91560.00 16,000,00 11,400.00 1961 11400.00 10 ;000.00 11,400.00 16,500.00 11,700.00 1962 1,200.00 10,000.00 11,200.00 17,000.00 11,000.00 1963 1,000.00 10,000.00 11,000.00. 17,500.00 10,800.00 1964 800.00 10,000.00 10,800.00 189000.00 10,600.00 1965 600.00 10,00o.00. 10,600.00 18,500.00 10 ;400.00 1966 400.00 10,000.00 10,400.00 - 19,000.00 10,200.00 1967 200.00 10,000.00 1011200.00 19,500.00 -0- 2,600.00 5,300.00 9,600.00 14;000.00 17,040.00 209720.00 25,040.00 '9,000.00 33,620.00 38,900.00 44,840.00 51,440.00 57,740.00 63,740.00 69,440.00 76,840.00 84,940.00 93,740.00 113,240.00 SUi-2-IARY OF OPERATING COSTS (Before Interest, Depreciation, and �pcn'sc of Litigation) COUNTRY CLUB DISTRICT Si, VICE CO. PO'uER AND PIZ1PING Operating Labor Supplies and Expense Maintenance Power Purchased Wator Purchased Sub -Total DISTRIBUTION EXPENSE Operation of Distribution Services Paintenance Services on CustomerstPremiscs Sub -Total ACCOUNTING AND COLLECTIONS Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADI,.JNISTR.'iTIVE ;1IJD GENERAL Salaries and Wages" Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Id scellaneous Supplies and Expense Other General Oific.e Salaries Sub -Total Taxes Number of deters June 30 Revenue Water Sales. YEARS 1937 1.938 1939 1940 1941 21.00 4). 22.00 41.00 -0- a 236.25 166.88 192.68 140.91 106.80 150.68 24.38 77.,05 '114.47 117.36 87.61 1,938.20 1,611.80 1,854.75 2,063..00 22554.00 -0- .* -0 .r- 64,�2 L 42.77 ;2,150.46 v1,903-53 vY2, 215.65 ,p2, 466.80v3, 371.31 42.63 203.20 , 32.74 173.40 290,31 646.22 114.34 70.59 835.05 266.118 -0- 688 �5 230.72 548.27�,�` 20 -x.95 20 .95 112.61 '�1,1�12.06 .16 859. ,1 � 5 5 125.00. 140.00. 140-00' 150.00, 160.00. 795.00 805.00, 787.50 800.00 1,815.00 26.34 40.00 29.14' -0- -0- 110.29 218.12 211.74° 649.59 785.73 480.00 a1,683.12 504.00 a;674.38" • -0- -0- ;01,056.63 ;,?l.,599.59 772,760.73 810,00 907.00 854.70 1,329.25 1.,319,00 69.25 9.30 71.69 107:45 15.24 107.77 172.79 140.84 151.75 155.64 10.00 80.00 375.00 50.00 -0- 26.34 45.11 59.10 91.02 42.57 20.00 55.00. 77.50 91.70 ..106.25 - -. (180.20 (164.53 238.73 265.10 221.00 ( -0- ( -0- 10.31 1.00 4.41 �1, 223.56 -rl, 433.73 a1, 827.87 ,'2; 087.27 �1; 8 4.11 591.04 1,055.08 1,136.24. 461 506 568 686 832 Q12,?47 48 11,154.04 13,276.10 15024.34 20,022,89 Total Operating Cost,;before Interest; Depreciation,..and Expense of Litigation -5,119.50 5,568.'64 6.515.88 8;320.80 9.992104 Operating Profit x7,128.38 �5, 585. 40 - 69760_.21" = 7,003.54$101030.85 Average 'vdater Sales Per Meter(a) 26.50 Operating Profit Per deter (a) 15.20 (a) Slide Rule Calculations n 22., 00 23.40 22.35 24.20 11.03 11:90 10.21 12.05 SUDR,4ARY OF OPM- ATING COSTS (Before Interest, Depreciation, andacpense of Litigation) 1,594.50 COUNTRY CLUB DISTRICT SERVICE, CO. 32.56 6.00 9.38 19.29, 33.06 Y.EARS 21,60 21..60 21.75 1942 1943 1944 1945 1946 PO-64M AND PUMPING 44.97 40.47 42.01 45.48 111.25' Operating Labor 182.65 392.15 586,50 ;v 616.25 69$.50 Supplies and Expense 145.95 142.45 166.00 152.83 162,33 Maintenance 51.29 54-95 250.00 123.45 3445 Power Purchased 2,426 09 2,498..,00 2,532.92 2,2.2.85 2,843.;',)0 Water Purchased 360.,48 306.88 3_ 11.52 - 335.84 8� 8.78 Sub -Total 'p3'r ,166.46 0,394.43 O 846.94 ;3,4� 71.22 +,307.66 DISTRIBUTION EXPEUSE r Operation of Distribution Services ?.45.50 227•z6 279.73 311.28 568.81 Maintunance 159.36 245.41 81.51 20.00 280.36 Services on Customers' Premises 6389.40 600.6 24073 1,062.05 Sub -Total ;1,015. 2 862.07 961-87 X1,256.01 X1,911.22 ACCOUNTING AND COLLECTIONS Mcter Reading .Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Exepsne General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Number of Meters. June 30 Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter( Operating Profit Per Dieter (a) (a) Slide Rule Calculations 225.00 224.50 200.10 339.05 349.50 22470.00 22633.75 2,263.75 2,175.00 2,760.00 -0- -0- -0- -0- -0- 800.34 834.54 879.01 .817.61 847.06 -0- - -0- -0- -0- -0- 33,. 495.34 X3,692.79 'a3042.86 X3,3 1.66 3.9 6..56 1,541.25" 1,500.00 1,594.50 1,791.50 2,444.00 94.08 32.56 6.00 9.38 19.29, 33.06 21.25 21,60 21..60 21.75 25.00 25.00 -0- -0- 156.00. 23.31 44.97 40.47 42.01 45.48 111.25' 123.75 112.50 56.25 -0- 457.10 96.95 ( 21.75 ( 20.00 ( 10.00 2.30 12.23 ( -0- ( -0- ( -0- � 2188.95 1�� 23.50 -0- -0- -0- 52 06.30 X1,980.21 $1,7'r 96.82 71,97 10.74 �2, 696-52 1,388.61 1,121.90 1,221E-48 1,481.47 2,010.72 895 904 917 923 956 (1007 6/10/47) ;;18,238.71 18,169.34 19,332.33 19,036.27 23,929.03 .11.572-33 11,0.51./0 11,172 7 11� .481.10 882.68 ,666.38 X7,117.94 X8,159.36 }7,555.17 '4169,046-35 a)$ 20.40 20.20 $ 21.10 . 20.50 25.00 7.25 7.84 8.91 8.18 9.46 POWER AND PUI91ING Operating Labor Supplies and Expense Maintenance Power Purchased Water Purchased_ Sub - Total DISTRIBUTION EXPENSE Operation of Distribution Services Maintenance Services on Consumers' Premises Sub -Total ACCOUNTING AND COLLECTION Meter Reading Salaries and Wages Payroll Taxes Miscellaneous Office Rent Sub -Total ADMINISTRATIVE AND GENERAL Salaries and Wages Expense General Office Insurance Legal Services Payroll Taxes Federal Capital Stock Tax Miscellaneous Supplies and Expense Other General Office Salaries Sub -Total Taxes Nu#er of . Meters Revenue Water Sales Total Operating Cost, before Interest, Depreciation, and Expense of Litigation Operating Profit Average Water Sales Per Meter (a) Operating Profit Per Dieter (a) (a) Slide Rule Calculations ESTILATrD OP.�RATION BY VILLAGE OF EDINA ESTIKi ,TE FOR NORi.iAL . YEAH 1,000.00 ( L50.00 ( 3.150.00 4,500,00 600.00. 500.00 1,000.00 2,100,00 400.00. 600.00 -0- 650.00 -0 1,650.00 D 1,200.00 50.00 75.00 500.00 -0- -0- ( 250.00 -0- 2,075.00 1,600.00 1025 22, 550.00 Legal and Audit Village and School 12� 225.00 q 10,325.00 Available for Bonds and Interest 22.00 (10 Yr. Average - :;22.35 ) p 10.00- (10 Yr. Average- w10.18) PROJECTED I-iA1TURITIES, EARNMIGS AND SURPLUS WATER DEPARTMENT — VILLAGE OF EDIl`iA TOTAL ANTICIPATED REOUIR.EI LENTS NAT EARNINGS RESERVE INTEREST FOR AVAILABLE FOR FOR 1 YR. SEAR C 2% MATURITY DEBT -SERVICE DEBT SERVICE DEBT SQVICE SURPLUS 1948c 3,000.00 —0— 3,000.00 10,000.00' y> ,000.00 1949 31000.00 5,000.00 8,000.00 10,500.00 ,900.00 1950 22900.00 51000.00 7,900.00 115000.00 7,800.00 1951 2;800.00 5,000.00 7,800.00 11,500.00 7,700.00 1952 21700.00 5,000.00 7,700.00 12,000.00 7,600.00 1953 X-,600.00 7,000.00 7,600.00 1X-,500.00 9;46o.00 1954 2,460.00 7,000.00 9,460.00 131000.00 9,320.00 1955 2,320.00 7,000.00 9,320.00 13,500.00 9,180.00 1956 2.180.00 7,000.00 9,180.00 14,000.00 109040.00 1957 21040.00 .8,000.00 101040.00 11,500.00 9,380.00 1958 11880.00 81000.00 9,880.00 15,000.00 9,720.00 1959 1,.720.00 81000.00 9,720.00 15,500.00 91560.00 1960 11560.00 81000.00 9,560.00 16,000.00 11,400.00 1961 1,400.00 10,000.00 11,400.00 16,500.00 11,700.00 1962 .11200.00 10,000.00 11,200.00 17,000.00 111000.00 1963 1,000.00 10,000.00 11,000.00 17,500,00 10,800.00 1964 800.00 10,000.00 10,800.00 18,000.00 10,600.00 1965 1966 600.00 101000.00 10,600.00 18,500.00 10,400.00 400.00 10,000.00 10,400.00 19,000.00 10,200.00 1967 200.00 10,000.00 10,200.00 0 19,500.00 —0— 2,600.00 5,000.00 9,600.00 14;000.00 17,040.00 209720.00 25,040.00 29,000.00 33,620.00 38,900.00 44,840.00 51,440.00 57,740.00 63,740.00 69,440.00 76,840.00 84,940.00 93,740-.00 113,240.00 I - January.2VO. i -0 Country Club :,.strict Service Co. Oscar G"rdan, 'ureslaent 4612 Wooddale Ave. - Edina Gentlemens . I have been directed by the Village i:ouncil to nerve notice that Country Cluj, ';Astriet Service Go. has .violated Its franchise by failing and neglecting to furnis:i' to the Coudoil the dual statement therein prescribed )'or the years 1942, 1943 goad 1�6441 and to demsnd that the .prescribea statements be furnished forthwith. I have been - directed' further► to serve-notice that the mRi:ter of the revision of rates to be char 'ed by Country Club nistrf ct Service Co. and tale determination thereof* previously oontinueci from September 22, ' x.944, to October 60 1944, anC. tr.ereafto ° continued Indefin6tely cz; mutual consent,' shall be heard and detrr- -Aned at a meeting or the Village Council to be help: in Village, tall at 8 p.m. '!onday ,*, °ebrusry a ].945, The President of Country Club ',l atric t Service Co. S s requested to, appear at that time for herring aria to present any and all matters he deems . odv sable resting to said purposes and Witter,& Yours . very tru17A Boyer HAWthorne MUSS Mee'4 Dovembor 30, 1944 Thorpe Bros®, Xnc. 519 Marquette Awes. 1- 11nneapo? is Gentlemen: I have been directed to noiify you that the U61na Village. Council, by unaLimc;us vote of all members.. has taken action drwuAng attention to the tact :hat 'Sour° Tract Office and advertising signs at the southwest cornei, of Fiftieth street' and Wooddale avenue are oeinG maintained on residential property' in violation of the 3d.ina Zoning Ox-d inance and requesting that the building . an6 sieps be removed forthwith* Me action of the Council was tsken following redeipt of a petition sig od by several residents in the vicinity.of r iftieth and Woodd.ale, complaining against continued none - conforming use of the ppopertye Yours very trulys Boger Hawthorne 1 'pillage Clerk STINCHFIELD,.MACKALL, CROUNSE & MOORE ELEVEN HUNDRED FIRST NATIONAL-SOO LINE BUILDING MINNEAPOLIS September 27, 1944. Mr, Lee Todd Mr. Howard Utley Uri- 'Carl Schmidt Mr. Bower Rawthdrnel/__*� Gentlemen: I thought: it =wise t-o dictate on the day following our September 22nd-meeting the substance of the notes I kept during the meeting; copy thereof.is bnolosed for your general -information* Very truly yours-, Eno. OTL rDINA VI 9&: C®WTOIL FRIDAY P-M- - 'SEP TEWBn - . 1944. present Wore convening the riestings Todd Utley Ve.nuum Sc l=idt Hawthorne gent to Set Wilson at Legion meeting. Mr. Caarden distributed copy of "C mparative Water Raeteas" from 1939 issue of Minnesota Year Hooka Hawthorne arrived without Wilson or Wyatt. Todd oa21ed wdeetinZ to order -- mmounced a quorum prevent. Todd announced that the moeting especially called to give consideratlon to revising water rates and charges made by the Servvice.Companye Oaarden stated that he had notia® of the meeting and had received:-.the proposed findings. Todd states that.the Council members are all optlEl siridoa '; a 9,11 phases of the matter and that t4e'y are present to hear &W that he may have to offer upon the vatter of valuation and proper rates. Gaarden proeeaded to discuss items appear - Ing in "Proposed P19.ndings" accompanying Schmidt's letter to Utley of September S, 1944. ITEX 1* Caarden took up the matter - -- Item by item. Gaarden stetted that the files contained no explanation of how the figures were arrived at. 1dr. Sebmidt �1- C? explained the same to him in detail. Gaarden stated thAt this item and Item .2, sG far as the figures were concerned,. did not substantially vary from his, recollection of the facts* Gaarden, Saluaidt and others eatererd into calculations as to differences between the Figure in Iteri I and figures proviously euhmitted by Gaaarden. OaaRrden Inquired an to whether or not the 19$1 Oon,struction in the sun of *28,952.71 and the 1928 construe- Lion In the sum of 780045 were I'acluded. Schm1dt replied in the aaffirtative. Fatal. 271,722.1,7. Deducting this ��'27,731.17 from ',1819345.03 there is left '1, ,525.800 the t, tom. contri- bution of property made both by Thorpe, Brothers and the Service Company. Gaarden's figure for thAs result was ;'254,157.00 as against our X133,825.80, leaving a ditrarance of X20,531.20. 3&.midt pointed out to Gaarden that this in the difference be- terser► Mae I caber appralsal and 8ol=Idt, s -fiE cures; that Bch 6t used the Graeber appraisal as an Inventory only but applied actual coats thereto as evidenced by the original contracts and Invoices. In other words, the actual or historical cost Is V200531,20 leas than the Graber reproduction cost. In 8cg dto s figure there was included 6Z. for engineering for all Tears since 1930. I "�.' - 2. Gchmldt explained to Oaarden that this is com primed of the same Itato as Item 1, but being, a reproduction cost Is based on Lambert f as index for 1940. The year 1940 In selected because the franchise contemplates normal reproduction costs and -2- c, tberdfore excludes war conditions. Shortly bsfore this stage Messrsa Wilson and V'gatt entere.d the meeting. Gaarden states tl.at he objects to the method of arriving at the 0132,50©.Ob because he stood on the Graber appraisal. He then stated that had will list each of these items and set across therefrom the figures he believes correct along.with an appropriate explanation therefor. Gaarden thinks that , tlhe dif ference in reprodua- tion` cost is about 021 #000 which is .again about the same difference as in .Item 1. ITE 3. This is 1tem 1 less depreciation. Schmidt told Gaardeen he will use a depreciation rate of 2%; ' that Gaarden t s account$ showed sate as high as 2.04 and some under 21,13 that Schmidt arrived at an average of 1.99; - but adopted 2 %. ITMJ. 4. The same as Item 2 less depreciation# usInZ same composite basis at .2w for depreciation. passed without comment by warden. ITEU 5. Sobmidt explained this item included engineering at 6%. Passed without comment. ITFV 6. Gaarden admits that the Lambert Vaterworks Index is commonly used and is G.K. for this purpose. No other convent by Guarden. ITM 7. This its ItOm 6 less depreciation. at 9% as of January 1,,-1944. No particular Comment by Gaarden. -3- ITEM 8 This 16,Iten 6 less some depreciation at January 1, 1944 no particular co=en.t., I T P11 9 Onard6n statod'hO was not a1oar, as to this itom. 3ohzidt explainod the iiax.e in detail to him,- This Is the q4tual original coix6truction cost losi3 depreciation ac tun 21 .19.31 drA, to i T 1., 1944.* 04&rden a t-ated that he now unde!pstpdA it. JTV,za 10 Oaardell admi ts' t he is not entitled to a rolcurn an t�,,is $14 000 but is, ontitled to char-4a dej?rodiation on ,this sum.beeause he La"Jot ropllaco the propbrt"s a,"rden 'thl:nks the figure in obbut right. I T EM. - I, This Is Item -9 less Iteri 10- Vo particular CO.-mant necesoary's ITF,M 19 The discussion oj-0 . M- is itexi occasioned cOn- siderable' talk, concerairig t�he mmowit of money placed In the Company by t a z exa snd Corp r at ti-ve outset and the amo . unt of money Paid-by GaarddLz'to- Thorpe Brothers. - later paid for priferre4 stOck. Meaurp,.- 'Utley., Soholdt and RA16ors a -lained to biLr +,hut tae ( $15,600 rep;-esiented- issumlee of xP preferred stock bX,the Car ana wh1-61h ordinarily widuI4 have value but In this enae had no value. beoause,-Itho bo an rawj aelved nothing for It and was 'thus: dn ;.:imprudent',`,:' - inVeot- mant* Gaarden vas advised that we; b61116-evel- that, an item representing no property passing , to this Company should be entitled to consideration as a factor In deteriaLaing the rate base. ITEM. 13 Gaarden stated that this item eras self- explanatory anal he needed no further information on it. Be admitted having received a copy of Table 3 prepared by Schmidt and forwarded to him during the summer. ITE9 14 Gaarden stated that this was self- explanatory -- ft- having been explained in tabulations already presented . to him. ITEM lb Considerable discussion eras had,00ncerning, the prOpristy of 6$ rate of return. Gaak4en mentioned the return of Unadapolia bras Company which is -fixed at 6 sand statod that it Brae, established, according to his uncertain Information, in-the year 1939 crr thereabouts. Schmidt mead from his report, to the Council upon tbs anb ject: of Pate Of return •N th"a page &, Guarden states that his pres9at interest rate on mortgage in 6 %. Upon questioning, daarden admits that the argumonts for 6% as recast by Schmidt are good — that he would not $al 69 was unfair; that if other valuations were agreeable he I►Puld concede that 6% was satisfactory. XTRU 16 This point raised considerable discussion in- volviAg. aub jest of dual ownership of the entire sysvem and the collection of depreciation upon tYaat portion belonging -93- r _ to ,the Villaago. Gaardbn . aagrodd that he would collect than daprsaa laation and. would turn, it ov ®r to us aostming that we' arrived at a P cir, valuaat on aaid t9aat the propeVty awned ' by the village and owned by ':him could be' det`lulte.ly nmrked off so that there would be definite recsponolbility for replaac=Ont. Various mathods of handling claepreciatloh were dincusaed, ortioh Of the aystein built by theh Village on v$th ,Street, lwad brought up for discussion and it was satatod .that it,,Zhould be disposed of on. the same basis as tho country Club Di stviot.. ZT Ra 1 17 Gdaardeai ,stated that he would say "off hand" that the, amount ws6 o.,K. V .d8 Gaaa rden stated that Schmidt' s estimate of 14,000 tuble fesa t a xuru 1.ly per custots er was about aright, and that the use of 9041 meters 'aria alwo O.K. There rolloe ed a discus ®ion concerning the Proprioty or the 60 cents service chfirge, part ratesa, and Step rates. XTUK 02• Mr. Venuum brought up the ratter that the interest cn the mortgage_ was operating 'expenses sifter a d9.s- cUe01ou GaaX"s iDla aSTreed it was not operating expense, ttley b ought uP the matter vhothe.r Tnoome TAX0e Miould be deducted before calculating than amount of. return. Utley .contended that it caould not be and aaaaarden d1aalms that it should be handled as all other taxes. '0 Peveral members of the Coluloll engaged in this diaou'- eiOn, all Contrary to GaardOn's contention. Gaardan will investigate this matter furtha r. Mr; xyooro then asked Gaardo.- 1f he thought we ahould take into cons Iderati on.A in arritring at fair value, the 6xae88i.ve earnings mads and the deproalation heretofore taken upon property t4a Service Company did not awn, and Gaarden repllod that,aasumine; there were such excessive earn1zWs and excessive aepreci.ationx there should bo an Adjustment, The discussion prooveded to the matter of 'bydrant rental,, it being Gaardon +s contention that hydrant rental should be cak-Arged as a 88parate 'item separate from .the rates bec&uee, it was srcaieAtif ically correct to do so., It wa.3 stated that there were 900 zaftter users v lao were get- ting: fire protection, 300 getting hire Protectioxe wero not paying for it becauas0 they had their own walls, and come 800 users in the faring section that bonefi test on neither point. It was stated by txewthorn and others that curtain residents who had their own walls wero not gutting a reduced tire iliZuraince rate. Scbmidt awed warden if there wore any other factors set forth 'fin t►ho proposed findings" which we had otherulas overlooked that ohoitld be ornsWerad by us in arriving at a fair value.. Ga4rdon said he knew of none and that he believed eve had covered the ground. About the middle of the meeting Mr. DI"oore told Gaarden that if It was necessary to go to court on this rate ratter, the Council probably would not allow, ,.7. /.' • i f 1. 1 him ;,tp charged hls ittOrhOY ; eOs as an expenee of operation. 11 MIR: i AOpealr *d that the two principal points of dispute Involvod. the iolg t -to be given to Gnarden' a Plain as to whothar.' `or' not he still owned an , of the System with the. old; 00:untry Club Distrirtr and in additi6n the prbprle r o ' t r leer pprQ Daly 1 Wi SCONSI Y PUBLILUMMICE C01RAI SSI GA APP We repeat what has been reiterated many times bef ore;, namely, In apportioning the value of items it seems im- probablee in certain ca.sec; that any definite lines can be drawn; or results reached upon which all could be expected to agree, and the results must be determined by careful study and consideration and the e, =ercise of judgm®nt as to what is fair. A fairly detailed statement of ,the apportionment of the fixed capital and Operating expenses is present-gd here with the basis used Wherp fi&ures are shown they are approx• iisate avereges. Vats i's done with the thought in mind that it would give those interested a. thence for constructive criticism and to suggest, if poesibl; , any improvements or refinements which might be followed in. the futures . A-p-riortionoGnt of Fixed Capital 1,, Land„ Buildings a.tid _Sta^vcturea Source of atrn l .V sand, Water Rights and Structures, These items. might be &npor toned on the basis of t:ie maximum y indicated fire stream ,.e-ands for fire protection service to total demands,, including fire demandso It will vary from about 1p% for a Iarae city to as much as 50 %for.avery small village, PumPi Station Land and Ruildin These values might be apportioned -on airs basis of the estimated required capacities of pumps and equipment. which govern the proportion of buildings and hence the land on which built,; allocatable to each class This has frequently been determined on the basis of the formulas for Freeman "s curves! here reproduced, for convenience, The use of these formulae is particularly help ful since in most instances the actual fire demand experienced is infrequent and irregulax,n The estimate of fire .demand should be based on what demands could reasonably be expected for a city of the size in question,, i i "4 Pre=an:l s CVTV68h maximum No., fire streams Population in M°s A 10 Minimim Roo fire streams 1.7 V-Population in Ws l 0-03 PoPc in ms's: The indicated nisnber .of fire streams are multiplied by the rate of discharge of stream per minute to determine fire demand in gallons, floro The rate of discharge of stream per minute will normally very between 175 to 250 gallons per minute depending on tue size of nozzle and nozzle pressures Storage Land, Reservoir and StenAp ipe. These items together are of more importance to fire protection service in the smaller comaur..ities because more reliance is placed on these structures for pressure. Hance a part is usually allocated to fire protection service on the basis of at least the normal minimum demand of this class of service. General Office land and Structures This should be allocated on an overhead basis. 2, Purificati on Buildinps and Zaukrmeet Allocated entirely to general service. since fire protection does not need pure filtered watern 3-� ingstation Equipment This has been apportioned to fire protection service on the basis of 'the indicat63. required capacity of fire pro- tection service., • 4. ,Transmission and.Distribation Investment Mains. This can be apportioned on the basis of minimum fire demand of fire protection serviced Services and ConsumersO meters w Apportioned 100% to general servicao Hydrantsc: Apportioned 100% to fire protection servicae �m General Nguipmento, This should be apportioned on as overhead basis except for Laboratory Equipment which should be charged entirely to general service, and 2L9 and Transportation .quipnzent might be apportioned on the b_ asis of minimum fire demand of fire protection service —2— 0 With the completion of our apportionment of fixed capital we field that of the total there has been allocated to fire protection service, from 11 to 60% depending on the size of the community and equipment installed. This figure is used in apportioning our cost,of operating the utility to divide the fixed charges, such as depreciation, taxes and return on the investment,.between ganeral service and fire protection service. It has been fairly well demonstrated that the larger the city the more dependence the city puts on the pumpers used by-the fire department for supplying water under high pressure,, The larger utilities do'not attempt to increase the pressure on the mains when fires OCCUrr as do many of the smaller. In many of the latter communities a reservoir, steel tank or stand pipe is placed in as elevated position so as to give the rsquired high static pressure required by the fire protection service. In the smaller communities duplication of equipment is primarily due to the 'amlamriters'� requirements and this helps swell the proportion chargeable to the fire protection o ervi ce. Although the fire department uses water only at infrequent and irregular intervals.. it at times requires many thousands of gallons nee° minute in a. small ?portion of a city block. Such demand may occur at any point within a very large territory. In ,a, small city it may equal from forty to sixty per cent of the total de:;iand, made on the plant, -- . A large city invariably maintains "a great many portable pumpers„ I.n oas urge city, such equipment is main- tained with an aggregate rated pumping capacity of 26,500 gallons per minuted These lama only from hydrants on the water departmentEs mains,, Determination of Maximum Demands of Each major Class of Serviced An examination of the .pumpage and consuiption records will disclose the date of the.maximum, hourly .total. The maximum hourly= peak used in the analysis is determined at a rate of a number of gallons per minute. To this demand we add an estimated fire protection. service demand in gallons per minute ;, for apportioning our total capacity or demand costs. The use of Freeman0a curvei§ may be helpful in determining the maximum number of fire streams for a city of the size in ques- tion, It is not necessary at'this time to discuss such facts as that the peak hourly rate for residential consumers will not coincide with that for commercial and industrial customers,, We are concerned here only arith the percentage of the demF.nd costs allocatable tyolfire protection service, II, apportionment of Operating.. jSxReases between capac� ity or Demand Costs Oatput Costa and Direct to General Service or Fire Protection Service. i It should b:o remembered that with a larger utility a more detailed syste� of accounto and breakdown of operating expenses is available in preparing an allocation of costs, With a smaller water utility, it may be necessary to make an allocation of a total amount expended for one general class of expenses �:ithout th® posoibilitp of making a more detailed breakdowao The apportiorinent used would be more of a composite ratio considering the nature of the expenses included In the - total. 1. Source of Water SuoRl These expenses include labor and material in repairs to river and lake sources, springs;, large open wells, shallow tubular wells, deep: artasia:n walls, or whatever the source of supply might be. These expense items occur quite regularly and for about the same einountc in suscessive years, in order to keep the source of supply in good condition. Since these ex- penses are largely fixed and do not very grith the amount of water pumped., they are allocated 100% to „capacity", It should be kept is mind that the capacity or demand costs are later apportioned to fire protection aorv%c.e; on the basis of the demand which the tyke or service MRPzes on the system, 2. Ft,MIno Eapenaes Z &bor and Superintendence Ordinarily a simperint*neetit,, using the common under - standibg of the duties of such am officer,, devotes the greater part of his time to overseei7ifi, and directing, and hie labor in -that respect would be quite in 3pendent of output, and hence the greater portion should 'be e aarged to °capacityc. Ira a =all ple.nt, the s(I- Called superintendent is in reality a laborer and not so 'exclusively a, director of operation. In such a case a large part of his tine in the station would be influenced by and proportioned to the output. The number of hours of productive labor roug'�aw.y approximates the number of hours the pooping plr..nt is operated at full .load. In some cases the labor could be apportioned. upon a load or capacity factor basis. Under these ci.rctmetances it would appear that from 20% to 30% of superintendence should be apportioned to :atio outputu and the bslance to "capacity ". The capacity factor is the ratio ' of total annual puopage to annual plant pumping capacity on a 24 hour basis, The operation of the pumping station may)also require labor in addition to that of the superintendent„ ?pile the duties of this labor concern the operation of the pumps, M A large part of this may be non -productive when considered on a load or ceps-city factor basiac It requires a certain amount of help at the station whether a 5undred thousand or a million gallons of water are being pumpLd per day,, so that the item of pump labor has been..apportioned in a ratio similar to super, intend.enceo If a oonsidera.bl.e part of the electric pugrping equipment is a.utom.atic fn operation', the portion of labor apportionable 20 output would tend to be smaller 'usl If s wed ; pofler pumpii g is used tine Should be appor­-- tioned to' cape.ci.ty :and output using percentages based on the division of coal be'treen that used In banking boilers and for standby serviee and that used for pumping operation LubrIcpn Lubricants used at the* sto-ti.on would depend almost entirely, upon. the �peration of 'the various pieces of apparatus so that this ite. .can be charger IOU%} to output„ Ptmninc Sees and Expenses Some of these m_iscelleneoa =l expenses occur regularly and hence are: moro; or lads fixed while others are dependent on the operatlen of the egtupment and ape proportional- to to the rate at whicn the plant' io run, These coats are uoually allocated 50% to capa.c£ty, a'Interence of Bus.ld3•ngq This includes maintene. -ace to pumping station buildings fixtures nad grounrls:, and to pumpjag, equipment within the buildin�-, or on the; grounds. Kai.2- 'e_!-"nce expanse on pumping station buildings occurs irrespective of the fact that the plant may be opere.ting or idle, It ia, more or less a fixed expense and crn: be' charged entirely to wca.�oacitryao Ida.inter.ance of pim rpiaa equipment,, Maintenance to pipping equipment is of several types. Some rtaintexaanca is necessary to keep -up P.ppeara.nce of equip- ment such as. clepr:ir& polishing and painting. This is chargeable to lac&ppcityw, tear and tzar at or near no load or xcc.id.enve, to idle afachinery necessitates some ma.inten.nce, This portion may be -Nall and should be merged to "capacityuo The largest portion of maintenance is ?necessary due to the regular operption ;of the equipment and ica properly chargeable to output,, Some of this maintenance will vary according to the output consid6ring the sire of,-load and change in loads Other m- aiatenan.ce will vary in proportion to the degree to which the egaipaient may be - ,rcrloaded, This would depend on the number cnd type of pumping units available for operation: For a emllsr v..tilit r There the bra_ -kdorn of main- tenance eapenue is not avc:ilzule in i,ts acf „eunting classifica- tion, an apportionment of :ns?ntom -=e of pumping equipment of 65% to output and 35% tc capacity �--.rpea..-s rer..sonable<, ilaintenance of Misc.ellemei -las Pumpina EgL�2mant These lt=o cov,;r repair oxpenuitures on cranes. hoists-, machine tools, safety FT,,lihucee end other miscellnn' .us equipment, A 50--,'0%, sp'.it -ewee:: c-�pacit�f ,r.&. .)utput expenses appears res:eone,blo,. Power Puraa,sed It is coz,sid.eraC_ home '11*h,"t this s-b.ould be charge able entirely to "output” since wren pumpe are idle no cur -eztt will be used nlid. 'L ence no exp?use of this .n,-.ture incurred,. .`ur.1: an apportioment is lncar -ect for the ,reason that the smount paid for energy ib itaalf male ,q of " 6pacit -" and "ontcwut" costa: If en_erg r is pu:•c�::sad 3n t: damri.Be,. _ 6 eneru;r c._rge type of _.-,te 't::e kev, r�.d ?OrtLar _oul. ,- tiaras ©Y,; the portion dnarge :,la t. cap.cit; La a,: it c,:.eF;;. r ,is c`� rgs will averaga about 25 % of ;1- = 'JUI 3, Purifi.catin.;,�r,sa On vita %ref tment of water is necessa -. -1 or-17F ;. •t ie a-txoly of e- Me ral service.. it would appear t'i*.t it directly i:, R t_ entirety to general service. i¢'' 1L1 I;:xlor cent. -Ar. c ;nditio.ns a certain small portion may be r,e- A- np,hIs 2c fira irot,ection service and output exponse; k. Transmission r.nd D'Ist:ltr:i.or Expenso: erinteiAar,ce r:c? Lsb,,r Superintendence, salaries of office employegs, labor, and salZries of shop for•e;-an r,n0 :s,ui.9tributed 1-,bor arcs- appoi• tioned 60% to 70% to ca. ,acitva e,nd. 4C to 34 to Output as a rule,. These percentages are t1he rest -lt of obeerve.tion of the character of tt;e vexiouv jobs r.s°.na1 d, Sa.larteb of a n`7ineers, sliop labor, labor anr` teaming;, miscellaneouF field expense; _�•ental of motor va„aicles �,ind miscellv.neius distilbution supplies F_nd. expensea h ^.va been allocated on a 50­50% basis, If 'the above segregation is not ays.ilable for a smaller water utility, a, composite of about 60 -409 may be used,, Storm® Reservoir and Standpipe Labor Labor of troll pR ing,!insp ®ctingfl and operating the distribution storage fa.cilities', including distribution reser,- voirs„ tanks and standpipes, transportation exoense appear to be as much capacitor as output ®xnonsss, and hence a 50 -50% split appears reasonable Maos and Records i Labor involved in the upkeep of maps and records of the transmission and distribution system is little affected by any output of water. The information is for record purposes and should be charged 100% to'1,cepscity"o Maintenance of Storage Reservoir and Standpipe. The e2:pentse items iri this account are quite inde- pendent of the quantity of water sold and are charged 100% to scapa.city "", Maintenance of Distribution Main Piping andaecials, Valves - and Valve Boxes The maintenance must be carried out;, even though the use of service is only nominal'aampaeed to the capacity of th9 equipment which must be provided to meet the maximum demande It is sometimes urged that this expense should be charged wholly to output, or at least the greater portion should be so allocated,, It appears, however. that a substantial portion is expense which is incurred independently of actually furnishing watero It is rather the expense incurred by the utility in holding its main$ in readiness, to furnish water at any time in any quantity, In many case's this expense has been appor- tioned 60% to capacity and 40% to output. Distribution Expense Items Directly Apportioned to One Class or Another -- Some distribution oxpense items are incurred direct- ly on property such as services and meters which is used for the specific supply of water service to the individual customer, These sbovld be borne directly by the consumer affected,, Such items are as follows,, -7- Inspecting and Testing Meters and Measuring Devices. 100% to general Removing and Resetting Meters and Measuring Devices n >o s Inspecting CustomersO Installations Maintenance, Bldgs. rind. Fixtures capacity Services " n eeneral Meters W Hydrants If fire If a detailed breakdown of distribution labor an d. maintenance is available other items may 'be apportioned direct -, ly: Labor and Expenses - Hydrant Inspection 100% to fire Wages ® turn on &ad off men e � g9neral Wages - emargency wa.tcim2an W r capacity water vraste inspector " general Maintenance, Service Corutections Branch Connections r' n fire Tocls and Equipment '1 e9 output Shop and tiach inert' & Equip. rr a 5a Comm arciel Expensees Expenses of hand? ins applications for crater service;,. meter reading, prepaxing bills,, collecting. bool&eeping and new business are distinctly corasm, er expenses and .should be borne directly by general service customers: Hence these costs are apportioned 1004 to genera. service;, G. Qeneral and lliscella.neous Erponses These exTeaess are in- 1"he nature of fixed or indirect eapensose It is contended by con. that they should be charged entirely to "cnpa.cit-.7e y:� that they do not vRT_ with or are affected to any codsiderable derea by the autiputo On the other hand they are occasioned, ins .)plying that output, hence "out- put!' should beer its pr(rportiomate pexto One of the principles in cost accounting is thn.t each unit of product must bear its share of the indirect eypenses� The product of a water utility is 'service rather than ;a commodity, and the unit is composed of several elements, bath pcepacity" and "output" costs Hence, it .is not-equitable to assess the indirect expenses to any 'one of these two elements but each must bear its proper sharee, If this mere not done it would be found that the rate would be so high for some snort -hour users as to be prohibitive;, while some long -hour consumer, would be receiving a rate alto- gether too lows �SG i General, Undistributed and Miscellaneous expenses are chargeable to all departments P-rd to make an equitable distribution of these expenses, they are apportioned on an overhead basis, or in the same ratio as the totals of opera.t- expenses other than these expenses bear to each other. If sufficient detail io available some general and miscellaneous expense items can be segregated, charged directly to than de- partment to which they refer, and 'allocated on the same basis as the expenses of that d.epartmento Lxamplee of such items are boiler insurance to pumping expense., fire insurance to maintenance of respective buildings to which it relates,, and unemployment insurance and pensioas`expense to the salaries and wages to which they refer@, III,. Apportionment of Total Cost of Qperatioa Between the J!!o major Classes of Service Capacity or demmid expense Apportioned to fire protection service on basis of maximum fire demand.. Output Exo ens e From the quantity of dater actually used in fighting fires as obtained from the, water department and from such data Rs are available as to losses, etcc... it appears that as a rule only about 2% of the output cost is a reasonable amount to allocate to fire protection services Direct costs are;,, of course, allocated 100%. The allowances for local taxes'. retirement expense and return on the'earnizig value have been apportioned on the estimated divisfoh of the physical property assignable to each class of service; giving from 10 to 660% to fire protection service depending on the size of the utility and the factors noted hereino When the foregoing allocations have been made we have the total.coat of operating the utility broken down into the two major classes of service supplied by the utility, Each analysis shows that following the indicated' basis of apportionment we got a lump sum charge for fire pro- tection service as of a certain date. deny appear to.believe that this cost should be divided by the number of hydrants In use to get a cost per hydrant. If this was dome we might get a charge of $41.00 per hydrant. for example. However,, if an additional block or even if several blocks of mein ore laid, and hydrants installed;; to add $41.' 00 for each. h=ydrant placed might be excessive. i - Tic & ditional cla arge for firo protection service which arises Frhen =da extensions are laid and nee hydrants installed thereon will defend. on such factors as the cost of the extension End the number of hydrants installcd3 If a proposed extension is not such tns.t the capacity of the plant, would have to be increased in order to meet the demand, it would seem that the oharge 'f o°- ad.c?itiona,l fi -re protection service on this extension would not include any of the capacity expenses of the utility, as these have already been included to the rate for e;xi sting fire protection,; The cost to the municipe.lity, therefore, fov fire protection on the proposed extension, should be made up of the amount of the interest, local taxes and. depreciation on the portion of the investment allocatable to this class of service and. the cost to the utility of pumping whatever additional mater is required. This Is negligible as practically the only additional pumpage, aside from what water may actually be used in time of fire, will be the 8Inount of leakage and ,coat of keeping water in the main, even if none is ueedo If a 61, main costa$1.,76 per foot to lay and 33e3% of the investment in grains is allocatable to fire protection service and our allowance for taxes, depreciation and return approximates 9.5% we Get fixed charged per lineal foot of Oe main laid of approximately 5o5Fs With a. hydrant costing in place (including its stub) _bou't, $100,,00 and with the same for fixed charges we get an additional charge for each hydrant placed of $9.RO., The laying of 1200 feet of main and the placing of three hydrants 'on this basis would add $67,,20 additional charge on main footage r-nd $29.50 per hydrant,,. .It should be noted that the addition of now pumps, source of supply and other units might so affect the portion of fixed capital allccatable to .Fire protection service as to necessitate reanalyzing the costs,, Given below is a calculation of an illustrative application of the foregoing method of ana.lyttis to a hypotheti- cal case of water utility with about 1100 customers. _10 , ALLOOATI(IN TO G�aMAL AND YUBLIC t` F, ?XTECTION SERVIC! Costs ILLUSTRATIVE ANALYSIS OF COSTS OF SUPPLYING WATBA SERVICR* Total teens• � ALLOCATIO14 Of QPERATIN ' � �- bllc t _ U } U Capacity`" Costs u $ 2922 U $ 1233 ` oc t i.on of Egxmenses : z 3885 79 Direct Fspensa 4 2195. 289 �• Total Operating Expense �,' JIM s <_ _7.11.1 _ '_$.,.,. _2451 g Uncollectible Bills Annual Capacity 2 Output General Sixed Charges;,' Public 8 8 bncenaer Cosh t Costs 8 Service F.P S Taxes 3440 J U L Return L 6634 V S k Source of dater Supply $ 250 t $ 250 $ z $ o $ L 100% to capacity Electric Power Pumping. Labor and Superintendence $ 6950 a � 1035 776 z 259 75% to ca�a.city; 25% to output Pumping Supplies and Expenses 155 z 77 = 78 4 a 50% " " ; 5 w M Maintenance z 275 z 96 179 35% w w ; 65% w w Power Purchased 3465 866 a 2599 20 " '" ; 75% Purification 45 8 45 8 100% to output. Transmission and Distribution Superintendence L 90 54 36 n u s ' 609 to capacity; 40% to output Storage Reservoir and Standpips Labor 10 t: 5 5 50 to capacity; 50% to output Maps and Records r; 35 35 ", t i; 100% to cajaacitya Inspecting and Testing Meters � 120 8 120 100 direct to general service Removing and Resetting Meters r, 135 L [, s 135 s 6 100 direct to general service Inspecting Customers Installations 8 30 ° 30 3 100 direct to general service kaintenance Storages Reservoir and Standpipe ;, 80 8 g0 100 to capacity Distribution Mains � 395 � 23`1' 158 � 60�b to Capacity; 40�+ to output Services 330 l t 8 330 8 8 loco direct to general service Deters 310 s' r 310 1006 direct to general service — Hyrents 215 —u — u t 245 100 +direct to Fire Protection Service Commercial 8 935 8 8 '-r 100$ direct to general service Total $ 7940 8 $ 2476 3359 8 $ 1860 8 $! 245 Same vas note (15) General P�►d Misee,: ?pneoua s —6 „ 335 4�a _ c, 9 3 2* 3% 3 4 1e 42o 9 2 o and 3-1 `' to r*epective classes of expense Total Operat ng ,Expense $ X74 s $ 29a— 9 -33E4 2195 ALLOOATI(IN TO G�aMAL AND YUBLIC t` F, ?XTECTION SERVIC! Costs z s Total teens• 8 h Geineral Service �- bllc t U U } U Capacity`" Costs u $ 2922 8 $ 1233 ip 1689 "Output„ coats 3964 3885 79 Direct Fspensa 4 2195. 289 �• Total Operating Expense �,' JIM s <_ _7.11.1 _ '_$.,.,. _2451 g Uncollectible Bills 100 2 100 Sixed Charges;,' 8 8 8 a Depreciation t 3225 8 o Taxes 3440 Return 6634 k Tots-1 F. C, $ 13295 $ 8402 $ 4893 p Total Operating Costs $ 22765 b $ 15815 e $ 6950 a (1) 42.2% to general; 57..9% to XP-S': 2% to (2) 63.2% to generals 36.9% to F.Pa`. e For an average city of about 4400 popLE, 1130 customers; book value of property and plus., $215,000; customer contribution $55e000y depreciation. reserve $42,000. (I) & (2) See footu�.tev on usparats sheet„ OFF,— Per Froeitiange curves 8 maximim nwAber fire straws 11inimum wmber fire streams WMMUM FIRE -DMLU11D Gaaeral,Service Demand Fire Protection Demand 11 streams 6 200 GPM MINIMUM FIRE DWAND Gpneral Service Demand Fire Protection Demand 4 streams.@ 200 GPM (2) Total - - goo If . " 33.3• Land - Pumping Station, $ 2c,200 - General Office 1,400* Ground Source of Supply 14,,goo General Office Building 4,6000 Pumping Station Building 5,200 Reservoir and Standpipe 24,90o Purification 1c 300 Pumping Station Equipment 15900 Distribution Maine 116,o00 ServicGe 10,500 maters 9,700 Hydrants 7,400 General Equipment ­.1 Total 215,000 Total (ElL-ainating $ 100% to FCP.S0 10 nogg .5 J 1.7 , 0,03 NA) 3 60 1600 gaic, per min. 42.2% 2200 se a s -57,,-A * d 10M� 1.600 gal. pe,&' min, 6164% goo If . " 33.3• I- 2466 166,6% Allocated to 18272 57.9% to F.P.S. Overhead basis 5,612 57,69% to F-POSC Overhead basis 3,006 57.9% to F-P-S- 9,-292 33.3% to F-P-S- 0 All to General Service 5.,190 57.9% to F-P-S 0 39,629, 33o3%'to F,PoS- 0 All to General Service 0 4 as 6 7,400 100% to FCP.S0 Overhead basis $ 400 36:.9% 3%7!44 WISCOYSIN PUBLIC SMVICE CCUdISSION PUBLIC: FIT E PAOTEC TI JC1 E�i SVI CE DATA WISCONSIN MUMICIPA.LITIES HAVIRG POPUIATICINS 3,000 To 65000 Served by Peoples Water Light and Power Co'mpaay Served. by Northern Wisconsin Power Company i Public Fire .1rotection Fire 194.0 i bar of Service Protection, P opula- H-Mun , Hydra nto Charge Charge P e' r Y:ior. P --Pri _ '!V3 42 1 42 Lira rd, Berlin - 4 „247 M ' 132 $5,; 280 $40. Burlington 4,43.4 M I x36 599440 4o,,00 Belavan 3,4414 M 102 50611 55.03. Edgerton 3,,266 ' log - 4;,672 43026 Hurley 3 375 H i 95 8,700 102.35 Jeff ersou 3059 ! 67. 3 ,145 46,,94 Ladyamitk 3,571 M g5 6-,os6 ri.6o Lakin Genava, 3,239 141 8,652 62-79 Little Chute 30360 61 6 ®662 112.49 New London 4;&='S &I I.11 6,660 60.00 ocono..2oToc 40362 i 150 59474 %6.49 0cont o 5.;362 129 15,000 116 � :,g park Falls 3,252 x 1 59 40248 72.00 Platteville 40762 hi 161 %J95 55"00 Plymouth 14,,170 M 91 4o370' 49"09 Port Washington 4,046 M 119 30240 27,:,23 Ripon 9i 40566 F Rot Avail. 7,630 2/ Not Avail, Shawano 5,, 565 k 120 3 o 590 29�, 92 Shesboyga.n. Falls' 3,395 M ! 91 5,270 57.91 Sparta 5,920 M ! 131 79980 60,,92 Stoughton. 4,743 M I 110 5 ©004 45-49 Stu geou Bay 5,439 14 132 7,962 6o,)32 g omen 3_,917 N, 94 4, 9g0 59.29 Tomahawk 1,361; 65 5i,087 79.26 ft roq a 3, 54 ap 79 6,900 97.3Pa Test Bend 5.452 s69 1,696 49.10 Whitawater 3,;589 n 131 60oo0 45.30 1 Sex-7e& by Oconto City Water Sgpply 06mpay.. 2� Ser•ived by Wisconsin Power a:Y - Light Comp r:, The annual ebarge ($76,30) is for h7dremts and mai.us as of Vare a 1, 193& For oubseauent additions, additional annual charde3 of go par lineal foot Of main aD.eI,$7.50 for each hydrazit are asoessed, ®E; 27.739 j 94' $1g0000 $ 49.13 Mellon* 1r,598 P 26 20705 104.03 Bayfield ** 1212 P 40 2o400 60.00 Served by Peoples Water Light and Power Co'mpaay Served. by Northern Wisconsin Power Company i 1 DISCUSSION OF ATTA.CTIM EARNINGS RCPORT IN CONNECTION �iITH VILLAGE PAYk.1=4 T FOR FIRE PROTECTION It will be seen from the attached earnings sheet that for the average year of the past seven years, the profit would have been $38861 over a 6% return for the giz;,, ., a ra%as set forth in the Water CompanyD a August reporto This-contemplates present water rates and payment for fire protection by. the Pillage at the rates proposed byt�=A - thte Company in 19430 If we add $4 ,,000 for working capital, then the profit in the average year would be reduced'to $148o61 per yearo If we deduct 614,900 from the rate 'base as being the total contributions 7t,s,�"° in aid of construction,, then the excess offer would be $1 ®042.61. It is believedr.. . however. that this deduction would be -offset by the cost of a new well, which should mow be installed® thereby leaving, no excess profit, It is not conceded as proper to deduct all of these contributions in case of ptrchaseo The Company auditor °s net revenue has in it depreciation on the portion of�,q the water system allocated to the Village in the am of $665038 (for 1943a "on a °� (� .property value Of $391,914490 This sum represents only 3,6% of the gross, revenue ;! � for 1943- The difference in the depreciation rate used by.the auditor.and that used © in the Companyas August report is $632,02,, representing only 3o4% of the 1943 gross revenue, Both of the above amounts represent a' theoretical rate reduction of only 7 %ram na Ibis could easily -be offset by deferred maintence ,Rich .must moon be met, such as,, painting tank and ,strtactures,, grading and care 6f grounds surrounding the pump house and the reconnection of the isolated section of line on 50th Street between wooddale and Bruce Avenueso The latter job may cost well over 81 ,,000, as the line is under 4 heavy cencrets pavement and a large portion of it may have to be opened up for repairs, The City of Minneapolis allows the Minneapolis Gas Light Company to charts SZ•4&� legal expenses connected with rate discussion and litigation to be Included in open ►'d�'� etng costs. where an evense of unusual size appears in any one year, the Pas Company is :asked to apportion it over a period' of a few 9eare so' that rates will not fluctua too much because of this item of ezpenseo i CMCLUSI ONs After correcting Company figures for 6% instead of 6k% fair return, after CWTacting,for mortgage and note interest, after correcting for depreciation on the j� p on of the water system allocated to the Village adopting the amount used by the V rMage for working capital, after correcting for d`ftYerences is depreciation rates in the auditor0s report and that used in the CcmpwW0 s August report. and aso=- i that new contraction work Immediately to be ur dextaken offsets the contributions In au- of construction, and also assuming that the heavy maintenance work soon, to be T midartaken offsets the small eorcess in earnings over 6A then, the present domestie *ester rate should be continued and the Village should pay a fire protection charge 'asp ;proposed by the CompazWo 1t' is assumed in these calculations that the be responsible for replacement of ,any lines allocated to its owner _:gyp and that `U--a Company will pay to the Tillage, annually, a sum equal to 1633% of the ,salue,of Ch8 portion allocated to Ito It is also understood that no depreciation is to be paid on the portion of water mains installed by the Village itselfo The Company is to continue to serve :,tsr consumers on this portion of the system, make ordinary repairs, maintain hydranteA" 3.nd supply sufficient pumping capacity for fire protection purposes In the preceding calculations,,- no consideration has been given to the portion of the two sewer systems belonging to the Company. This has been deferred for separate consideration, W Ima ` la ll /44 N 0 S CALCULATION OF PROPI -T OR LOSS ON VARIOUS RATE BASIS AV9- Report Add $4 ✓000 led,.; ,Coatrib, CoCoD_nSs Coo Work' +var- In Aid Average investment for year rr�rv-).' =' $ 65,6is435 69061 35 ` $ 54,1711;35' Fair return eat 6% 3 3tG :t; s 3,,937.10 4o177 ;10 1,28310 Net revenue before interest, 4,M.01 40852.21 40882021 Profit or loss, 945011 `705 -1i 1�59911 Fire protection charge (if paid) 1,;590,00. 1o59040 1, 590, 00/. Adjusted profit or lose j 2,,535,•11 2c,295.11 2;;1891111 Average investment for year $ 770259 ®70 91025940 $ 66,359,70 Fair return. at. 6% 4®63505$ �<<�T50� 309�3eCP Net revenue before interest 2 ®522089 2£,522,39 2p522,,99 Profit or lose 2,.11206; 2,3�2e6j l�`;.'15..,6o Fire protection charge (if. paid) 1,940040 1,S4000 10640000✓ Adjusted profit or lose 27269 512,69 391,31 l 2 202- average investment for year 93 ®4i3.70 $ 97j,41340 $ 62„513,,70 Pair return at 6% 5,604032 5,544082 4x950,,92 Wet revemso'aefore W- crest 3,619,24 30619024 30619f.:24. Pr9fi.t or logo I 1)31�P 56, 2,225,59 ? '=3_,; 59 Fire' protection charge .(If Paid) 2,160000 2,160.00 2,160.00 � Adjusted profit or loss 174042 ». 52542 r Average investment f6r.year $108,243014 $$112_,243014 $ 9703¢3.114 Fair return at 6,1v' 69494.59 6,734059 5A -59 Net revenue before interest 3v727.47 3o727-47 30727t,47 Profit or loss 2,767,12 ,,�007,J2 - 2, 117, 12 Tire protection. charge (if paid) . 2 78OA00 2o79D,,00 2,780,00� ' Adjusted profit .or lose. 12,58 22'7„12 666: ez 191 - Average investment; for year i $1163,361-69 $117, 36169 $102; 461.69 Taira return at 6% 6..:801,;70 T,.,04i�70 6,.1477.0 Net revenue before interest 6, 074-- 92 6 474c,$2 6:.074:.: 92 Profit or loss 7 ua: 8 p(�� .J 6, to ^q Pir5 protection charge (if paid)," 1143-15 3,143J5 3:.143075 Adjusted profit or loss 2416: -57 2.117657 3;070•.167 D? Average investment fors year 1114-209,14 $118,.209;14 $101, 306<,14 Fair return s,,t 6% 6,,852,,49 7;092-.49 6,ig8.,49 Fet revenue before interest 2 , 9TT,40 2097T,,,4o 2,97T,40 Profit or loss 3:075 ' 4,,115 Og 3,:.?21,.69 Fire protection charge (ii 'paid) 3,,;245, „00 3;.245 -00 1245;,,00' Adjusted profit or loss 6313:09 970b09 23:,91 I U4 Average .investment for year $114,231.49 $118,:2311,,49 $1031".331,7,49 Fair retam e.t 6% 6 53-'89 T,091,99 6...159 ,a9 . Net revenue before interest 2,o92,-,67 2.;092,:,6 T 2, 092.: 7 6 Profit or loss 4 s6E ,22 5.001::22 4:.107: -22 Fire protection 61,arge (if paid 24 ",00 3: - ., 3:- 245,00 3:;2- X5,:,00 Ad=justed profit or loss i..53.6:22 SUMMARY - SEM YEARS TOTAL FAIR RETM $ 41;160 ., iT. $ 42„ 860.,1T $ 36,, 6o2, i7 TOTAL NET.. PX- 2 8 6 . 0 5. 9 M 2 5 ,,X96^ TO 25,--696, . 70 TOTAL FROPIT OR LOSS ? 5",24 4"s g �;. J 315..705.47 TOTAL r-IRE kROTECTI035 COST 15,,003,:, Ty 18,.003,75 18.- ,003cT5 AVGo AWUS TM PROFIT OR LOSS 2,72-0. 29 1,, 040,, 28 T., 299.,,,2 9 Average per year 388,, 61 148,„ 61 1,-.o42,-61 OGBIna 10/5/ INITIALS DATE l PREPARED ` BY APPROVED_ BY II / `L e - _- - -- - - -- -- �'= -�4 __ c�„ _ _ _ !/tti.e �,� -ate• - - - - -- cG�a..Tu� — - - -�. - - -- !�'..,l�,/� -.e. o�Eo %tl�,.��c..Q ..�„CQ.ti- - i6G._ ,i..,Ys•, �C�.�y,�.�.Q�,. ,B.�T' ,,�, �- - a+f.ew....aA,i,,� For $7 dam( 6 d' . /7Z 6` /�33 1 _ No. 1 G. E. ` Miller -Davis Co., Minneapolis of 1te of Alinneota, County Auditor's Notice to Clerk HENNEPI as of General Election Countyo � ....... .........:.................... f Tothe--------------------- - - - - -- -Clerk of the ---- ----- - - - -- - -- ---------- of-- - - - - --0 ------------------------------------ - - -- in the County of---- HEXNEP1K -------------------------------- State of Minnesota: f0ou are 31)erebp .ROtif[eb, That a General Election will be held in all the election districts of your ................... .............................on Tuesday, the Seventh (7) day of November, 1944, at which the polls will be open from the hour of Seven o'clock d4. M. to the hour of Eight o'clock P. JVf., for the purpose of electing the following officers, and voting upon the following proposed amendment to the constitution of the State of Minnesota, to -wit: Eleven Presidential Electors One Governor One Lieutenant Governor One Secretary of State One State Treasurer One Attorney General STA'V'E OFFICERS One Railroad and Warehouse Commissioner (For full term of six years) One Railroad and Warehouse Commissioner (To fill unexpired term of deceased commissioner expiring 1st Monday in January, 1949) One Chief Justice of Supreme Court Three Associate Justices of Supreme Court DISTRICT OFFICERS One Representative in Congress for the----- ----° Gll _ p g -- -- ------------------------------ Congressional District ------ - - - - -- District Judges-- for the------- - - - - -- - - Judicial District --- -- -- - - - - -- --- - - - -- Representative -- in the House of Representatives of the Minnesota Legislature from ----------------------------------------------- - - - - - - - - - -- a resentative - - -- ;g. the House of Representatives of the Minnesota Legislature from P g th �--�0 -------------------- - - - -- Legislative District. COUNTY OFFICERS 'One Judge of Probate *0 '-'lerk of die - District C-bar ---------------------------------------------------------------- -- - - - - -- ------------------------------------------------------ o ; One County Commissioner for the----------- - - ------------------------------------ Commissioner District -------- - ------------------------------------------------------------------- - - - - -- * Only in Counties where Incumbent's term expires on the first Monday in January, 1945. Notice is Further Given, That the following Amendment to the Constitution of the State of Minnesota will be submitted to the voters of the State of Minnesota; for their approval or rejection, at the next General Election above specified, to-wit: Shall the Constitution be amended by adding thereto a new article, to be known as Aiticle 19, permitting the state to construct, improve, maintain, and operate, and assist in constructing, improving, maintaining, and operating airports and other air navigation facili- ties; to expend monies, including monies appropriated by the legislature, and to incur debts and issue bonds, for such purposes; authorizing the levy of an excise tax on fluids and other means or instrumentalities used for aircraft and airport power purposes, or the business of selling or dealing therein, and taxes on aircraft in lieu of personal property taxes. . ....................... .. ......................... .........................County .4udttor Dated........ � ............. .............................., 19�i �. 1-lEl�.NE�.I ..................County, Minn. NOTE —The Auditor will insert the number of District Judges and members of House of Representatives to be elected; and erase from the above lists any office in which no vacancy occurs. The clerk will post one copy of Notice of Election at least fifteen (15) days before said election in each voting district of his town, village or city. —Sec. 205.19, Minnesota Election Laws. i September S, 1944 Countr7 Club District bervice Coy 4511 T3oo4dalo vivo Edina lnne o Attentions of aeoarI Gaorden, Preeidentr You are hereby notifl©d that th© matte of rovision of Count Club District Service Coy " rates and . ohergeq 0 water users in the Village of Edina, will bo oansidered at a _ spocial meeting of the Ul3a& Council in the Village Hall at 8 p-M. September 18, 1944;p at which time you - may b©- -heard,, 0 BY ORDM 0P' THE WAGE C©MIL Wirer flaathornb 11113,age C1ork t I 1� COUNTRY CLUB DISTRICT SERVICE COMPANY R. .poor, T EDINA VILLAGE COUNCIL On FIRE PROTECTION CHARGES' Aazu .944 L COURM CLLQB DISSIC2 SIMCZ CO. 4611 Wooddale Avenue Walnut 3017 UIHI3WMIS9 YIRMOTA Mrs Zs Le Todd@ President. Uira Pillage Council, 5u04 Park Place. City (100 Dear Mrs Mat I as sorry tbmt . there has been a considerable delay in the prep - aratlon of .the data ta show.whether or not the not revenue obt4�insd fran the op=eration of the Zdiaa Water Utility -as separate and distenct iron `the' portion of the sewer syste n to which we clal& ownership. At -this , particular time the delay could not Tell have been avoldede Purthersore the job is rather involved. ae an Inspection of the figaras atta0bod hereto will reveal., 2to Water Caagpan�y is asking that the Village pay for fire protec- tion service on a baele; which win not only repay it for extra operating ecpeanseo but also to give a fair4eturn on the investment in, the portion of the water utility caned ,by its While it is believed the proper basis for calculating the -cost of fire protection is est,forth in the formulae used by the Public Service Comission of Wiseonsims the Village has indicated that it would rather cousider'the basis to be an Overall fair return ineludizg revenue from domestic service. At our lest meeting we promised to make a setup based on this theory- These are not forth. in Tables ls2e3 and 4a .Fable I sets v{p three columns based on interpretations,of the opinion given by the Z ate ftrjWe Court and also on the use of depreciated value rather than original cost U a basis for fair returns Before the ad- vent of the §new deal§ the Wted States Supreme Court establ.iched fors period of over 50. years that the rate base for public utilities sliould be determined by consideration of historical costs reproduction cost Find a • dent inreotmente The plan of using depreciated value as a'. rate basin aas not considered.and indeed could not be If public utilities are to give good service and pay investors a fair return ,on their investm=t. Some of the reasome are (1) the investor never sees nor does he get wW direct benefit, from the depreciation fun$. Gone of his Investment is repaid from the do- pteciation funds (2) utilities do not depreciate a piece of,equlyment until It is removed from services Its total cost installed. lose salvage value, Is then eaarged against the depreciation reserves A'depreeiation reserve is built to a poi=nt considered large' enough to take care of estimated retirements for a reasonable time in the futures This varies frees, 15% to 25% of the cost of the property operated. While, strait line methods of calculation are often' used in setttne up depreciations actual retirements follow a line eithilar,in form to curve h -Z shown in sketch, (dull line),, ' 7 Uto T. Jodda president -2- b. of 3W CL Op w� uY WF 0: — LJ 103 August l0, l%A Accvomila►tiona of reserve from A to B should be sufficient to cover rettrements between B and D. Zven thou& the reserve 'is, reinvested back into the property the utility is responsible for reylacememt of equip - ment retired, even though this regu_lres new money from outside the utility's . depreciation funito (3) If we assumo that a property of soy $100,000. orig- inal cost with an average life of .50 years were considered, tha annual strait -, line depreciation rate would be W A fair rettarn w6, a yield the inve3tog-' 6j% or $6,5oo. .Suppose` the lepreclstiou fund of $20"000 toe the first year were reinvested in the property., On the theory.thaV depreciated value should be the rate base the base would thou be $98,000 but the rep ilning life of the property in service is only slightly abays 49 years. The depreciation ciarge for the second year would then be &04 %. por the third year f,` would be only slightly over 48 years, or a< depreciation rate of 248 Follow this example through it would be discovered that'thi required extra allow - ance for depreciation would be exactly equivalent to the allowance Of the fair return on the f ? *_il origsr3Z investment of $100,000 and a 2% rate of depreciation. 'this is proven in books published on utility, appraisals and is upheld by the chief engineer of the Public Service CommiesiOno Sava goverzMent commissions have, ; however, ' in this time of political pressua a iW,, against public utilities, used deprecia"ed valus Instead of original cosy as a rate base in spite of its proven economic falsityo 2�1e 91=84Polis Gas. Light Co. franchise assss the origii 1, ca4 t nip a rate bast, The argument is sometimes used that if,depreclation funds, are reinvested in new property that earnings are higher than fair by the rele, , five amoent of * a reinvestmento As an example, if a property worth orig- inally $100,000, the &nnual $2,000 depreciation fund, if used for now e.;- tausions, it is clatined the earning would be 6j% on $102,000 -or $6,630 in- stead of 6j% on $100,000 or $605000 ,Actually it does not work out that way' The depreciation fund is usually invested in new extensions which by them-- selves, do not generally reach n basis of faqir return for many yearao Fu a tal ftmore the. guide as to fair return must be ftgured.'on w, basis of a fain arnut31 addition to the earned surplus fund availablo for div suds, afte..? opereLting costs, taxes and depreciation on the portion of ,the system on which�deprarAstion is to be carried, and not on an assumption that each -new, extension or piece, of equi�ent will immediately pay its full share° tiro Te L. Todd, President August 100 I now wish to take uV the matter ofi the porvion of the u411ty;, It say, granted to the la', ywchasGre by the Skate Supreme Comte 'loci claim is made by' the , Cam that the decision could not possibly i:"cluat more than the port <,n of the, pipe limes fi•ont_na each lot sold. prior ,o Oct- lo- 1935- In :lase of a water utility owned i,p a aUnicipalityo only that portion of a water main frosting. ou a lot is taxed against that-; lots This tax does 'not include any cost -to cover trunk line feseders,, yanj� ing egnipmento , sepal estate nor many other pieces of equipment which a.za o:t a general natured This would praclude the inolusion of the 50th. St„ IL!6 and the te=ak in any purchase by lot owners* On the date of transfer thorps Broso had a right' to eel]: the 30% of the lines in the old Country Club Dib, trict fronting on lots they evined plus lines fronting on property not f c1 divided into lots and also the property. on 50th Street sad the tank located on the golf club lando The stateseDt •improvesents in and paid forts coule3 not by any'strete:h of imagination include more 'thsn is usmlly included in lot taxes*, in-fact it is quite probable that lines fronting on lots sold. prior to the'date of stock transfer of the Country Club District Service Company amounted tea a great deal less than the 709 used in these calcurativ -as for the original country club districts In this connection we night state that wo cannot, concelveo nos can the fudge ,of the District Court nor can several attorneys, .und:erstRVd the, reasoning nor the intent of the higher court* 'here certainly was intention of Thorpe.Brose to sell n portion of the sewer,water, electric and /or telephone e,,vatems when a lot spas sold in the Country Clubo To as c- . on every originaal lot buyer who could be located in the Trin City Ar6a ti =+,, determine this points, A stenographer took down their statements* We alsc<' obtained signed atatements frca all lot salesmen. except Charles Hay ai i two who were out of the city and who did not answer correepondene:eo Tae a lot saleenaan .who claimed ha thecight these utilities were included was CbsvA.L Uys Perhaps his sharp fuel with Ure So S. Thorpe, Sro over L the pia;►sao., of rent for the house'he occupiei for many years might have had a bearirC o:;. the ratter of his claimed undermtandinge In all cf tbo~so called only ore man who had purchased a lot from Mr. Hay, stated that he had any understrund. Ing that any utility lines we`6 a :sc1uard. with hie loto This fact toge• the ,. with paragrap?a 10 of each deed9 it seems to me,, precludes any possible cur•. that --�,y, utility lines were inelvAed in any lot purchasesy If such j6s t it,' ease, and we honestly believe it to be so, then I cannot see why she away of such property does not violate the 5th amendment to the federal yuii e3itutiono Nothing in, the calculations has been included in the capitallia- tion to cover cost. of sectoring franchise„ worklog capitals including etcrA of supp ies, maters (which are handled at cost), advances payments a .1c, '' Y s e ' 1W,timate additions to crapital . on *%all&. it is fair to earn a Inclusion of Vase items world show greutev losses than those In the ah:rs os attached hereto. lire T. L. Todd.. President Aug"t 1Oy 1944 The year 1936 was not included in the attached tsbulatr.Ons bscaas't the•accounts were not audited for that yearo IU,.. Graberce appraisal was,as of January 1, 1937 and the bookkeeping system in use set np as of t""' -date. If 1936 were included we are certain that a great lose would have been show, as water was p, rchased up to W=Ch 15 a,� a cost of $2 „500,00 s.Ld. furl�her adore,, many frozen water mains had to be repaired because Of the cXtrc.nely cold weather lasting many months in the 1935 -f� winter season. Table pool shows the original,cost, reduction of rate base due to supreme court decision and depreciated value of all property of the water. -system which was. installed by the ccmpany from x923 td 1943 ir. lusive, nc,� i=luding working capital,, etco Table No.. 2 shows the original cost of the system insta1&od by the canpanys, the value.after subtracting of the portion granted to the vil- lags by the court and also the depreciated values included -in Table le Fs�e return o_•- the two latter investment values was calculated and arom i� wab salitracted the actual net earnings shown in the auditors report for ca” year from,193d to 1943 inclusive® These differences were corrected it. case for depreciation on the 'portion the court allocated �o the v311age2 though there is grave doubt that the company will not be liable for re- plecement of equipment on this portion of the old system as well _-a any other portion installed by the companyo These tabloe assume replacemer-; by the Village of the Village awned lines., Table Noo3 shows the cost to the.village if it had paid the com- pany for firs' protection as per the, schedule offered:; The number of hs•- drants se,M iaried from 51 to 106- The average is about $30,00 Per hydrants a figure considerably below that charged by privately owned water systema and considerably below -that allowed by the Public Service CommissiC4 of Wisconsin for municipally owned water utilities of a size comparable that of Idinao Table Roo 4 summarizes the information from Tables Note 2 and 3 and compares.th' income with that. which_ would: have bben the case had the village paid for fire protection in each of the.ee`Aen years-, . The conclusion to be drawn from these =lcu1a•: ioua is 1-hat If the "Company had received payments for fire protection Its would hive just about broken even for the seven year period on the depreciated value rate base,, On the original cost rate base the loss shown was over $500 per average year. W ,1936 "been included aad if working capital had been added to the rate base. the loss "per, year would have been considerably greatera It can therefore be seen that'the eonpanyoe proposed schedule for f'�ue protection ..s more -than fairo -Ths depr6ciated value rate bass calculatiox:e are-included merely 'to show that the proposed sc`iedsle. for lire protection w �iA not ` a too high wen on this lower rate tease and �co because depreciated al-ae 6 .caasicieet9d right o: fair,. Yr. T a Ln Todd: Prasiden The- Yinn6apolis Gas Light CoupaUY is &110 -19d a to r-e�a•3 Ga origi nal cost (nook 'deprociated vajus� of, all now ccnatruction af•4er agrea ing to a lump sues income of $1,200;9000 on the old systemo . Rates are var up or down as the net earninge are lower or higher than a 6j%- re,�uvac It, is suggested to the, council,that they approve 'the fire prc tection schedule as submitted -nr the company, on the condition Vlat 'if lags prove to be higher than 6 : ±, the ,ompap shall lows.' rates to a► po ,z`� to yield only 6J I$ is the opinion of the company that we sh_nLd hes a 'a step fate for domestic water consumption; one ��4ts for consumptions up . 10,,000 cubic feet and a lower rate for consumptions above 10,00P 4tibi lea.- per quF►rter°yearo Coats of "eerAce - per 1X000 cubic lee'; of water are less for.large consumers than for small consumers, It is the desire of the cc-n pane to ,continue economical wah- gemen+t and to give Mina as low a watez' ice- rate as is. consistan•', with good business pr-aaice- !While Mina has the right granted by the franchise to pin'chase the water and sewer syatems at say time V4 will be readily seen that such purchase would not be a ^,ery eatiaPa 1_11.,orr for. the F_e;raflt owner? on accowt of the tax situation -and also on account of the extremely lo+s yields for high grade'securities in which proceeds might be invested, Th% argument has been ,brought up that the pa7tent. of fire protection wou a hav W to' be made 'out , of the general tax f=d and therefor: °e be unfair to tax payei�s, who are outside of �thc iiys protection linitso We asunot see' the f of cry .i2 this argmnezXi,_, Zvsry city and village in the stated no doubt; would have this same condition, This fact should not deprive those who need fire; pre - tection, wid who can benefit to the extent of about $15 ;000,,00 Per year iL fire inaaraice rates„ from enjoying the benefit of such protection,, Furthe.— more it is believed the dax payers in the rural se-:tions of Finns receive back in improvements a far granter portion of, their taxes than those in thy: , urban section, Payaen` of fire pre :setion -wouM be as oppo rtunity to ovate .up ..this unbalanced condi ioxk We-are forwarding a copy of this repor� to tlaa- mayor and ea&, -councilmano This is no•; intendod in any way to reflect on the u`WAlit7 cormittes but' it is Pet' that this would give each council member oppaz' tunity to carefully study the matter at his leisure-; The underaigned it willing at all times to confer with any member individually or 'a$ a group - regarding any pair-'es .10 Fully understood° Our books are open for chec�s'L:ag or examination at ar.• tims_, It is hoped tha,� the matter can soor3 be se4tt.' &I on a fair and equi,d a' :e basis-to all coaceerned� COMMIT CLUB DISTRICT S MRVICE CO. OVVULL EARNINGS ON INVESTMENT WATER DEPARTL•SLbTT ft —tal. construction to Oct. 1, 1935 lfotsl construction to Deco 31, 1930 Ttal construction to Deco 310 1937 Average property value for 1937 lair return on property value, .6j,% Not revenue f or .1937, auditor I s report. Profit or loss over fair return - Profit or lose adjusted for depr.ec ®on Vil.portion. Total construction to Deco 31,1939 Average property. value for-1938' fair return on property value Net revenue for .1939,audtto_ A report Profit or. loss over fair return, 1935 Profit or loss adjusted for deprecoon Viloportion Total construction to Dec`0 31,'1939 Average property value for 1939 fair return on property value net = revenue -for 1939„ auditoro.s report Profit or lose over-fair return,, 1939 Profit or loss adjusted for deprec,on Vilo portion Total construction to Deco 31, 1940 ,Average property, viLlimo for 1940 Fa =r return.on property value let revenue for. 1940, auditors s report Profit or loss over fair .return, 1940. Profit or loss. adjusted for deprecoon Viloportion Tonal construction. to Deco 310 1941 Average property value for 1941 ftir return on-property value Net: revenue for 1941' auditor° s. iep,3 It Profit or loss over fair retur-'11, 1941 Profit or lose adjusted for deprecoon Viloportion TA33LI NO. 2 gL', Ue ,efor$ deduction of YC.. deduction. er Macau - Value, Vil"Portion 6 D 21141 1 i!Mreciated $ 93,211.08 $ 43,296419 1775.39 .$ 36,139.72 99,500064 596545.75 113,3;1.69 52,42so28 ll1fl565m84 '71r,659.95 - 4,997 ®02 63ti544.07 2071.49 65961�o35 570531.47 ,959.31 4,265.19 3.739.55 3,290.34 3,290034 97'x -95 449021 312.27 213.37 - 122,793.33 52,660.44 73 669„06 771)'2519-70 . 6s, 616.56 5p02�1o0� 1,522056 4,4E-008" 1,522,)56 IN 9026 2,937.52 2,s 6068 2,274094 143973.94 103,95895 93,,401.25 93,413.70 93,539.16 6,071099 5d;29J9s 2,59,9010,' '20599'o10 3,472,79 2,8300'9,9 - 2,giOo21 2,,l6Sa30 152, 2.2.2 -112,527033 100,329.05. log, 243-12f 96,s6 77o55 T: 035 "so 6 D 21141 20597.92 2,597.92 4 ,,437.89 3-699.49 1775.39 30035.90 154,110.94 114®16,05 ,100-239-29 113,3;1.69 100,238.16` 7,358,:,51 '6,519.41 - 4,997 ®02 4,997002. 2071.49 1,521039 10705091 ,959.31 ti Total construction to Deco 31, 1942 Average property value for 19132 Fair return on property value Not revenue for 1942paccou.nta.nt;e report Profit or loss over fair return, 1942 Profit_ or loss adjusted for deprec.,on Vil�p;ortion Total construction to Deco 31, 1943 dverage property value for 1943 Y&ir- return on property value Mit 'revenue for 1943 a.ccountantl s report Profit or loss over fair return, 1943 Profit or lose adjusted.f or deprecoon Vil.portion TABLE,NOo2 CONTITUD 114, 208.1€3 §9,W-92 7,423.53 6,458.33 2,025.17 29025017 5,398.36 4,433016 4P735.79 M70.59 154,157.64 114,242475 .96,,719 "55 .114,231 ,,49 97,599005 7,425.05 6.343194 1,320040 1,320.40 6,104.65 5,023054 5,,442.07 4,,360096 a _ COUNTRY CLUB DISTRICT SERVICE COMPANY EFFECT ` 0 F EARNINGS OF LITER DEPAP.VENT ' IF PILLA.03 HAD PAID FOR FIRE PROTECTION- 1937 - 3 ' No Payment for IF. P. Fire Proto With Payment for Fw P.v . ; Before, After Coat as per Before Lfte D®2r®ciatioi6 Dewreclation Prc asai'., Dgrecia.tion Elpractatim x.937 P- 2i9937 # 1.- 59�oc 1�277-73 1 803,37 . 1938 20836068, 2,274.94 1fl84o.00 996.68. 434.5 3939 2,910o21 2,16&,zo 2o16o.00 650.21 9,,30 294® 3fl775a30 3flo35�90 28780000 99530 22590 1g io7c oq� 85908x. 3n1�+3�75 1,4314. R , Z94"94 19142 :4,735.78 3,770058 3..245�00 1,480.79 525.58 1943 5..442.07 4,36o.96 ;,, 245.00 2,197.07 1,,,115.96 ' ',atal, 7' yro.$. 21,621.22 :160256.12 $ 18-003ro75 V 3,6o7,47 $ 1r747-E3 kvaFage per Tear 3., 088.74 2, "322 _ ;0 2 57 1c 96 515o.35',- 249.56 i DRAFT Minutes of Special Meeting of Edina Village Council Thursday, January 25, 1945, 8 p.m. Present: Todd, Utley, Willson, Wyatt Absent: Hawthorne Also Present: Village attorney; Karl H. Covell, Perry R. Moore and Edwin P. Chapman I11 the absence of Mr." Hawthorne, Mr. Todd was appointed recorder pro tem. The meeting was .called to order Ashley Brooks appeared seeking information regarding a proposed transfer of his taxi cab business and licenses, and was advised by Mr. Covell to present a proper application pursuant to the requirements of the ordinance for action by the council at its next meeting. Mr. Utley presented a communication from Mr. Thomas Vennum to the council, dated January 16, 1945, relating to the water system negotiations with Oscar Gaarden.. General discussion was had concerning the matter and the communication was ordered filed. On emotion by. Utley, seconded by Wyatt, duly adopted, the recorder was instructed to notify Mr. Gaarden and the Country Club District Service Company that the Company has violated its franchise by failing and neglecting to furnish to the council the annual statement therein prescribed for the years 19421 1943 and 1944, and the recorder was instructed to demand that the prescribed statements be furnished forthwith. Moved by Utley, seconded by Willson, that the matter of the revision of rates to be charged by the Country Club District Service Company and the determination thereof;. previously continued from the September 22, 1944, meeting to October 6, 1944, which was thereafter continued indefinitely by mutual consent, shall; be heard and determined at a meeting to be held Mond ay, February 5, 1945, at 8 p.m. and that the recorder notify Mr. Gaarden and the Country Club District Service Company thereof, requesting him to appear for hearing and to present any and all ma.ttersIdee4& advisable relating to the said purposes and matter. Upon a vote, all present voting aye, the motion was carried and declared duly adopted. Upon motion made by 01yatt, seconded by Willson, and duly adopted, the meeting was adjourned to February 5, CD 1945, at 8 p.m. Recorder, Pro Tem -2- February 23 1 9 4 5 Country Club District Service Corporation 4611 Wooddale Avenue South Minneapolis, Minnesota Attention: Mr. Oscar Gaarden, President Dear Sir: I herewith transmit to you and serve upon you a certified copy of the resolution and order of the Council for the Village of Edina passed on February 5, 1945, the contents of which are self - explanatory. Yours very truly, Bower Hawthorne Village Recorder RESOLUTION AND .ORDER OF VILLAGE COUNCIL OF THE VILLAGE OF EDINA Passed by the Village Council of Edina on Monday, February 5, 1945, 8 p.m. unanimously. Present all members of the Council. Passed WHEREAS the recent decision of the Supreme Court of Minnesota property now being Service Company to Edina and.upon the lected by said Com- and bears importantly upon the value of the devoted by the Country Club District the public service in the Village of rates and charges now being made and col- pany for providing such water and service, WHEREAS it appears to the Village Council that the rates and charges now being made by said utility are not just and reasonable, and WHEREAS the Council has given due notice of its meetings and'its- purpose,to the Country Club District Service Company and its President, Oscar Gaarden has appeared and has been heard :;at tw6 formal meetings and various intermediate meetings and conferences with a special committee, and WHEREAS the Council has had the aid of expert opinion upon the matter of _the valuation of the .property owned by the utility. NOW',' THEREFORE, BE IT RESOLVED: I. That the Council hereby finds each and all of the facts and figures set forth on the attached exhibit to be true and adopts the same as its findings herein; that upon careful- consideration of all of such findings, embracing the historical cost, less depreciation, the reproduction cost, less depreciation, the financial history and all other relevant facts, the Council hereby determines the fair present value of the properties now owned by the Country Club District Service Company and devoted to the public service, including an adequate allowance fort m rking capital, to be the sum of Fifty Thousand Dollars ($50,000'.00). IT The Council further finds that an annual return of six per cent (6 %) on the fair value of the property of the Country Club District Service Company,'used and useful, in supplying water service in the Village of Edina is fair, reason- able and adequate. III The Council further finds that the sum of Five Thousand Dollars ($5,000.00) is a Xair and adequate allowance as and'for working capital to meet current operating expenses .and maintain necessary inventories of meters, office supplies, equipment, etc. IV That the rates and charges now being made for water and water service by the utility to the village residents are not just and.reas.onable, and that in the interest of the public should be revised. downward. V That proper provision for adequate depreciation reserves, all proper operating expense, and for a six per cent (6%) net return on- the fair present value. of the Service Company's property will be fairly provided for by an annual yield of 016,550.00, based on an average ye arts sales through approxi- mately 900 meters presently connected. VI That the above requirements will be produced through the following rate schedule which is hereby ddopted and which the Company is hereby ordered and directed to place into effect and to charge and to collect; RATE SCHEDULE A. A service charge of 60 cents . per meter per month, or $1.80 per quarter, shall be made,in lieu of any-other minimum charge B. A water charge, as indicated by meters, shall be made at the rate of 91 cents per 100 cubic .feet. Item B will be subject to a discount of ten per cent (10%) for payment within ten days after billing date. C. That said rate change shall be effective as of January 1, 1940 and that the Service Company is hereby ordered and directed to refund to each and all of its customers, the difference between actual collections and the amount that would have been collected had the above rates actually been in effect on that date; and that without regard to such refunds, or any delay in the making 'of same, or to any controversies or disputes that may arise by reason of the retroactive provisions of this rate, the Village Council, without waiver of its right to claim 'said refunds to b®. made to its customers, hereby orders and directs that the above rates be placed in effect forthwith, and that all charges made for water and services. �3r furnished after January 1, 1945, shall be computed, billed and colle'ated at said new rates. -4- 1) The original construction coat of the entire Beater works system in the V113a6e of kdinea, used and used as _q1-'.January 1, 19449 was 01619345.03 2) Tho normal reproduction coot of the entire property would be ftelG39500.00 3) . The val.ue tff the entire property as of Jury 1, 19440, based on original cost less. depreciation Is i30., "9.36 4) The value of the mires property, as of January 1, 1944., based on normal reproduction cost lass depreciation is 5) They total original construction cost of improvements and extensions built by, the Country Club D striPt.Service Company, subsequent to 1935-has been 69,387.77 6) The normal reproduction cost of the Improv&M Monts and- extenal6nee, deacribe d In Item 5 would be 71,241.00 7) The value of this propesrty - ( Item 5). as, of ►nary 1, 1944, bas_ rid on original cost lass depreciation is . 610014.00 8) The value of this property (I..tsm 6) as of'.... January 1, 1944, based on reproduction coat 10881 depreciation is.. 028,561.40 9) The unazorti ze 4 . Portion of. the invest by a C.C.1D.S. Co.. in :Property built aubr sequent to 1935 Is (Item 5 Tess eaceruestl de Preclati.on reserves from Service Co. audits) 4S,864.12 10). Of the above amount "contributions in aid of construction" iiave accounted for.. 11) .. They net investment of the C3.C.D.S.Co. in property built subseseuent tb 1935 is x,954.12 12) Preferred stock of the-C.C_.D.S. Co. was issued _ to T1wrpes. £3ros. Co. for the' purported purchase of property built prior to 1€36 toy Thorpe troa. the validity of which is not admitted by tbe. V111890 ofEdinea, to the extent of 15,0300.00 Jb -13) Earnings and accrued depreciation reserves, realized by the C.00D.s. Co, since 1936, by virtue of said company having improperly capitalized property belonging; to-the Village., and by virtue of delays in court and other proceedings necessary to a proper determina- tion of ownership and fair value, have been excessive, when measured by fair and.proper returns, by more than 219800.00 14) Of the above sum (Item 13) the excessive amounts realized since instigation of the 1940 litigation amounts to approximately 11,000.00 STATE OF MINIMMOTA ) ss COUNTY OF HENNEPIN ) The undersigned hereby certifies that he is the Recorder for the Council of the Village of Edina; that on the 5th day oi'February, 1945, at a meeting, duly called and held, said Council passed and adopted a resolution and order, a true,and correct copy of which is attached hereto, Dated at Minneapolis, Minnesota this day'. of February, 1945. Subscribed and sworn to before me this 23,J day of February, 1945. Notary Public THOMAS VENNUM _ PHILIP NEVILLE J WELLS J. WRIGHT NORMAN L.NEWHALL,JR:. VENNUM, NEVILLE• & WRIGHT 1460 NORTHWESTERN BANK BUILDING - MINNEAPOLIS 2 February 2, 1945 Village. of Zdina 4801 West Fiftieth Street Fdins, Minnesota Gentlemen: Your letter of January 29th has been referred to ne by Mr. Oscar Gearden. I air:, unfortunately, engaged on 21.ondp evening ir_" teaching the- final session of school from 8:00 to 10:30, rhich is like - wise true on Wednesday ni "Qht. I would epprecipte it very much if this neetine could be held on some other occasion. With reference to the . annual statement, earring stetements -have already been submitted to you, except possibly for 1944, which is not yet 'available. There has-been no chance in the capital set up. We have delayed submitting tbese.to you because the construe - tion of the decision rendered by the Supreme Court has_ left us in 'a quandry. Since'.���e disagree with you upon it,'my sucgestion to Mr. Gearden is,thet statements be prepared bused on the original capital set up since the lest audit furnished you, and lee has instructed his auditor, to get these out imnediat.ely and send• them to you. TV:ns Yours very truly, STINCHFIELD, MACKALL,CROUNSE & MOORE FREDERICK H. STINCHFIELD HENRY C.MACKALL ROBERT M.CROUNSE PERRY R. MOORE - THOMAS P. HELMEY LESLIE L.ANDERSON DONALD A. HOLMES M. DANA NICHOLSON JOHN M. PALMER FLOYD E. NELSON EDWIN P. CHAPMAN - Mr. Bower Hawthorne City Editor. Minneapolis Star Journal & Tribune Minneapolis, Minnesota Dear Mr. Hawthorne: ELEVEN HUNDRED FIRST NATIONAL -SOO LINE BUILDING MINNEAPOLIS -2 January 26, 1945 We enclose a draft of . the. minutes of last night's meeting for your use in entering the same in the minute book for signature of Mr. Todd.. We draw your attention to the notices to be sent to. Oscar Gaarden and the Country Club District Service Company. A copy of the letter and the minutes is being sent to Mr. Todd. Yours very truly, STINCHFIELD, MACKALL, CROM\?SE & MOORE By , Enclosure STATE OF MINNESOTA DISTRICT CURT COUNTY OF IMINITEFIN FOURTH JUDICIAL DISTRICT IN RE .• Appeal of Country Club District Service Company, as corporation, .from Resolution and order of the Village Council of the Village of Edina, Fixing Schedule of Water Rates for the. Village of Edina., �aa��s�asa� PETITION AND APPEAL Now comes your Petitioner and Appellant and represents to the Count as follows :. 1• The Petitioner and Appellant (hereinafter called the Petitioner) at all times hereinafter mentioned was and now is as corporation organized under and pursuant to the laws of the State of Milmosotaa and was and now is duly authorized to engage in the business of, among other things, maintaining and operating as water system in the ' Villaage of Edinaa # Henne- pin County, Uinnesotaa, and charging residents of said Village and said 'Villages for eater and fire protection asery ce. ZI. At all times hereinafter mentioned, the Village of Edina (hereinafter called Village) was and still is as duly incorporated village, organized and existing under and pur- suant to the lawn of the State of Minnesota. ZII. On or about October 13, 1923, said Village granted to iatI loner a franchise for the operation of said water asyastem, which wag duly accepted and which was at all times subsequent to-said date ' in .full. force and effect up to and including the 12th day of October, 1937, and from and after that date in full force and effect as amended. -1- 1V. Said franchise, as amended# provides in pant as follows: PROVISIONS OF FRANCHISE RE.SPLCTI140 RATES THE VILLAGE COUNCIL OF THE VILLAGE OF EDINA Igo Ordain as follows t SECTION 1s There is hereby granted to Country Club Dis- trict Service Company, a corporations organized under the laws of Minnesota, its successors and assigns, the right and pri- vilego to install, maintain and operate a grater system within the following territory, to -grits To supply pater for any and all purposes to any person, firm, corporation or the Village of Edina, or any of its agencies for use within said Country Club District, together with the right and privilege on the request or demand of any person, firm, corporation, or the Village of Edina to connect said water main and pipes with any and all property within said Country Club District, for use upon and within said Country Club District, with the right on the part of said Country Club District Service Company, its successors or assigns, to charge such compen- sation as may be agreed upon between it and any person, firm or corporation, or the Village of tdina, which charge, however, must in all and any cases, be fair, reasonable and ,just. (a). Charges and rates for water shall always be fair, reasonable and just and subject :at all times to control and revision by the Village Council. (b). The Village Council shall have the right to revise such charges and rates, giving notice to the Company of its'- intention so ,to do, and the Company shall have the right of hear- ing before said Village Council. (c). The Company shall have the right to petition they Village'Council to revise its charges'. and rates from time to time. (d). Consumers, equal to 20 per cunt in number as determined by the'rocords of the Company, may petition the Council for revision of water rates and. charges made by,. said company from time to time`:. (e). The Company shall have the right -at any time within thirty (30) days after the order or resolution of, the Village Council is made re- vising and fixing. rates and charges for grater, to appeal to the District Court,-'of Hennepin County, Minnesota, from the ' rates and charges so fixed by the Village Counail 'end shall have the right to have such order and action of the Village Council reviewed by said Court. Section 13: (a) . aso (b). That the water to be furnished by said Company. shall always be.pure and safe for human con - sumption and, free from contamination -,.,= That the Company shall furnish a proper tent of mater when requested by the Village Council or its health officers (d). The quality of water furnished and the times and method of testing the same shall, at all times be subject to the regulation of the Village Health Department and the Minnesota Mate .Hoard of Health. (e). In the event the Village shall acquire the sealer system now operated by said Company and any addL- tions thereto, by condemnation, purchaser, abandon - ment or otherwise* the Company agrees to furnish all water needed or required for flushing sewers at a rate to be agreed upon between the Village Council and the Company, except as may be other- wise provided for. V Pursuant to the rights and privileges granted reti- tionor by said franchisep the Petitioner has for a period of over twenty (20) years sold grater to the 'residents of said Village, and for eight yeare proceeding the comuencement of this action Petitioner has sold and now is solling: a step For domestic use and exclusives of fire protection charges to approximately nine hundred (900) residents of'sald Village upon the following basis; A minimum charge of One'-Dollar (01.00) per motor per quarter Meer, which minimum applies against the charge or 17.1-c.onts per 100 cubic feet, sub- ject to a diaaount of Ten per cent for payment within 'tan (10) days attar billing, or a not charge of 15.39 cents per-100 cubic feet. That said charge and rata .now in effect is less than a rate which would be fair, just and reasonable insofar as the Peti- tioner Is concerned* Than on the 26th day of February, 1945# there was delivered to the Petitioner, a'notice of a resolution and order of the Village Council of the Village ©f UdLna, a copy of which resolution and order is hereto attached, marred Exhibit "A"p and made a part hereof. -3- Vi. The rata schedule set out in the resolution and order of said Village is _unfair, unreasonable and unjust.. is con- trary to and ir:donsistent with the ,provisions of as-id fran- chise, in violation of the rights of the Petitioner under said franahi:sa, and insofar as it seeks to makes any-change retroactive Is unjust, unfair and unreasonable to Petitioner and contrary to lava, V11- This action is brought under the terms and provisions of said franchise and Is an appogl front the resolution and order aforocaid and from-the rates and charges therein fixed by said 'V1114ge Council of the Villag'D of Rdina. 1� ILERi Ui E, petitioner prays an order of this Court to review tip, action of the said Village Council aforesaid and to determine that the charges and rates therein sought to be fixed are in such revision unfair, unreasonable and unjust in all respects and contrary to law insofar as ouch - I order and resolution seeks to make.the,'oume retroactive.. alt orneg ror FoRtIonor 1460 N,00. Bank Building f ihneapol,is 9, Minnesota Dated this ` day of March, 1945. -4- STATE OF MINNESOTA ) COUNTY OF MVINEFI ). OSCAR GA DEN, being first duly sworn, upon oath, says he is the president of Country Club District Ser- �ioe Company, oorporation named in the foregoing petition; that he has read said petition and knows' the contents ther eof; that the avermente therein are true. of, his dean knowledge 'except such as are therein stated d'n''informa- ti,on and beli6f and as to those he believes then to-be true to the 'beat of his knowledge, information and belief. Subscribed and sworn 'to before me this �.�� day- of Warch, 190 • City PoDo E01HA ,MiN^t' Not Billmas Ada,- Minnesota 10300 Aitkin it 1 ©600 Albert Lees " 100200 Alexandria �� 309 Appleton st 10700 Arlington H 10000 Aurora n 1o50O Brainerd st 200 500 - Cambridge n 10200 Cannon Falls n 10400 Cass. Labe 10500 Chasis n 20000. Clovet , 605oo Crooketon n 6o5O. Crosby ;t 305 Dawson l o 5OO Dser,River st 900 Duluth 1020000 East GraTnd forks n 3,000 Elbow Lake n 10000 Ely +' .10200 rairmont e= 50600 Faribault tt 15,000 International Palle 50100 COMPARATIVE YIAT11 RATES PROP., 1939 ISSM" a MINNVISOU YW BOOK Minimum terl Not Billmas 31ks, 70500 foals, 50000 Galso 370500 Woo 750000 Galso ' M® Meter 1Q000 CU07to 2 ,)000 Cuort© 50„000 CuoFto 10A000 Cuorto 1.00 �oo � l.S�/ 3:78 ?To 153 $2000 $2000 $ 2050 ' 5000 $ 12050 $ 250W o - 3.75 7.00 14.25 20050 2o25 202�j 2025 4050 11025 22050 1000 1090 3009 5065 9045 2025 .1000 2025 2097 5.34 llo09 19754 2000 2000 2093 504o 9023 14085 o a 4o20 70E4 17040 •31.12 2025 2025 3.35 6075 16 -9s . 33.75 '! (1.00) (1.00) 1 -87 1097. 3063 5088 11038 18088 090 090 3.00 6.00 15600 29020 2.55 2.55 4.35 7.95 17095 32035 1.25 1.25 2025 4025 9000 14.00 1-50 , 1050 3050 603o 13095 24.75 1.95 1o95 3090. 6o90 14.40 25.35 2025 2025. 3.75 7050 19.75 37.50 , 2025 2.25 5007. So55 15099 23°55 2.00 -2000 3042 5.99 10055 17.67 1.50 0 1050 7 3o00 7050 15.00 3000 3000 4091 9099 .17054 30.36 2000 .2o00 3095 6000 11-65 21o00 2016 2016 2025 4050 10035 19027 2025 2025 2048 4073 7097 12.02- 1.50 1050 300 6,00 15,00 30000 2oOO 2o00 2003 3.S3 81,10, 14095 Bainimm _ �tiaaterly Met Hilliaae - 5 ge 3 0 0566 dalsO 50000 �'alsc 370500 lBsla,, 750 000 Gals0, • City meter at or 1,000 CU-Pto 2�000 culpt, 5C 000 CurYt1 X 101000 Cu -Btu Jackson, Minnesota 203®0 $lo50 $10 3 $ 2060, $ 460 9035 $ 169 jordari N lo2Qp o 0 3coo boo 12°75. 21.050 - Marshall 350 6CI50 14'.00, 31x31 26.,50 190g6 Montevideo .500 2000 - 2000 3033. 5032 Mara n 1 ®100 ° ° 2069 5,,06 12019 24006" Pipastone` ss 3 #500 °. 5005 9020 14095 2620 Renville n 1.100 0 4050 8000 1T000 32000 . Rochester 22 9000 1050 1050 2000 4000 20,00 igloo Stc Cloud 229000 3000 . " 2000 2000 40o0 9050 1T006 sto James 299 1,25- 1025 3038 6.45 ' 1395. 25020 Sto Louis park 100000 ° 0 106o 3020 9100- 160oo, St. Paul « 300,000 OT5 1005 I-T5 245 6105 " 11OT5 Sleepy we " 206m 0 2o50 5co0 1250- .25000 South St. Paul it 110000 066 066 1065 3-30, g125" 16.00 Springfield _ 20100 050 050 3000 6�oo 13075 22100 Tracy . 20600 2010 2010 3009 4.99 io069 2019 Waseca �t 40000 0 225 4050 11025' 22050 White Bear Iaske 11 39000 1050 lo50 2090.. 4 "90 9090 17,,15 Winnebago w,. 108DO 3000 3000 - 2025 4050 11o25 Worthington n 3 ®900 1000 1000 2085 5070 13'54 ''21,,25 24023 Iminneapolis (City' 500o000 1050 2025 1000 2000 375 -- - -- -iavo© minneapolis (Outside). 1.50 2025 1060 320 8x.00 16,,00 sdioso minnesota 1000 1000. 1054 1.09 740. 15039 Noteez No record is available of fire protection charges by iimicipally owned voter utilities0 Of the privately owed utilities (Casa Lake,:. Crookston.., Edina and Traacy),. all receive fire promotion- charges, except Lild.ina0 Casa Lake receives $5o,7,00 per hydrant per gear 'and the Crookston utility receives 45,,00 per hydrant per year for 100 hydrants 0 and $42050 per hydrant per year for 39 hydrant-ac Minneapolis has -one Of the lowest water rates in the United States for the area inside Its corporate limits;- municipally ownFd water systems •charge coat of water mains to abutting property; they also pay no taxes; Thews two factors should allow ffinnicipal Vlater systeias to charge much lower ratew than privately owned systemsl OGs lna 9/19/44 a 2 1 STATE OF MINNESOTA COUNTY OF HENNEPIN IN RE: Appeal of Country Club District Service Company, a corporation, from Resolution and Order of the Village Council of the Village of Edina, Fixing Schedule of Water Rates for.the Village of Edina.. DISTRICT COURT FOURTH JUDICIAL DISTRICT NOTICE OF.MOTION TO: Village of Edina Edina, Minnesota �d YOU: WILL ?LEASE TAKE NOTICE tha t on the ay of .x,:,1945, the undersigned Appellant and Petitioner will move-the above name court for an order staying the force,and effect of that certain order and resolution of the Council of the Village of Edina described in the com- plaint until final determination of the issues raised on this appeal in a trial on their,merits, and for a further order, advancing the above;appeal for a trial.at,an early date upon the calendar.. This motion will be based upon the attached affidavit of Oscar Gaarden and the verified complaint of the Petitioner - and Appellant herein. Dated this ' day of March, 1945.. 41-.. . _. VENNUM, NE ILLE & WRIGHT 1460 N.,' W.' Bank Building Minneapolis, Minnesota r STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT IN RE: Appeal of Country Club District Service Company, a corporation, from Resolution and order .of the ORDER TO,SHOW CAUSE Village Council of the Village of Edina, Fixing Schedule of Water Rates for the Village of Edina Upon the attached affidavit of Oscar Gaarden and the verified complaint filed herein and the Notice of Motion attached hereto, IT IS.HEREBY ORDERED that the Village•of Edina show cause before•the undersigned, one of the judges of'the above named court, on the., day of March, 1945, as to why an order should not be. entered staying the effeat of that certain order and resolution of the Council of the Village of Edina as described in .the complaint herein, ' and for a further order of the court advancing the above appeal upon the calendar for trial at an early date. IT IS FURTHER ORDERED that a copy of this order, together with a copy of the Notice of Motion and Affidavit be served upon the Village of Edina on or.before the day of Dated this day of , 1 94 5, STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JTJDICIAL DISTRICT IN RE: _ _appeal _of _.Country Club-- Kstrict Service Company., a corporation, from Resolution and Order of-the A F F I D A V I T Village Council of the Village _ — — — of Edina, Fixing Schedule of Water Rates for the Village of Edina. STATE.OF MINNESOTA ) s8 COUNTY OF HENNEPIN. ) OSCAR GAARDEN, being first duly sworn, deposes and estates that he is,the President and General Manager of the Petitioner and Appellant in the above entitled proceeding. .That there are approximately nine hundred (900) regular domestic consumers.of.water and customers of the Petitioner in the Village of Edina; that the average net difference in rates sought to be established by the Village of Edina in the above proceeding based upon the normal consumption over a period of recent years would, if placed in effect, result in a reduction in receipts by the Petitioner of approximately the following amounts during the periods hereinafter set forth: January l to February 26, 1945 $517.00 February 27 to March 31, 1945.. 183.00 April 1 to June 30y 1945 .750 "00 July 1 to September 30, . 1945 950.00 October 1 to December 519 1945 800.00 03000,. 00 If the order of the Village Council of said Village with respect to reduction in rates were put into effect at the time provided by said order and the above court on this endin appeal should refuse to p g pp approve said rates,, Petitioner would be forced to seek recovery and repayment of relatively nominal amounts from nine hundred (900), different consumers, the cost and expense of which would be so substantial as not to justify such action. There is; and continues to be, and will be throughout the current year, a constant flux in residents in said Vil- lage. A large number of the, horses -are rented and each year a large number of the homes are sold. luny of the present residents who leave the Village move out of the city. Your Affiant is informed and believes that the Council of the Village of Edina.has no power to enter an order for the reduction of water rates covering any period prior to the entry of said order and notification to the Petitioner. Affiant is informed and believes that even if the.Council' had such power, the rate set by its order cannot be sustained as to any prior period., 'or current period, or future period under facts a'nd-law vihich will be determined upon a trial of this appeal on its merits. Billings are made,to consumers of water for preceding approximately three months periods on or about the first day of Aprils 1945. The vast amount of substantial work required in recomputing an ounts to . be billed in the light of the 'order of the,Village Council is such that it is necessary and ad- visable - that there be an early hearing upon and determination of the motion filed herein. Petitioner is a financially responsible.Minnesota cor- poration and perfectly capable financially of refunding-to the residents of said Village any amounts of money determined by this court on appeal,to be due them, if there be a deter - ,mination unfavorable to the Petitioner. That by reason of the facts aforesaid; it-is for the best interests of the -2- . Q Appellant and of the Village and the consumers therein that, there be an 'early determination of this appeal. That this affidavit is made in support of a motion staying the order and effect of the order of the Village of Edina referred to .in .complaint herein' with respect to change .of water rates in said Village until such time as there has been 'a final determination of the said appeal on its merits, and for a further order advancing the said appeal on the' calendar for trial at an early date. OSCAR GAARDEN Subscribed and sworn to before me this 8th day ,of March, 1945, CONSUELO BUOT` Notary Public, Hennepin. County, Minn. My Coimnission Expires Nov. 5, 1949. -3- STATE OF MINNESOTA COUNTY OF HEWEPIN IN RE: Appeal of Country Club District Service Company, a corporation, from Resolution and Order of the Village Council of the Village of Edina, Fixing Schedule of Water Ratbs for the Village of Edina.., DISTRICT COURT FOURTH JUDICIP,L DISTRICT PETITION AND APPEAL Now comes your Petitioner. and Appellant and represents to the Court as follows: I. The Petitioner and Appellant (hereinafter called the Petitioner) at all times hereinafter mentioned was and now is a corporation organized under and pursuant to the laws of. the State of Minnesota and was and now i's duly authorized to engage'In the business of, among other things, maintaining and operating a. water system in the Village of Edina, Henne- pin County, Minnesota, and charging residents.of said Village and said Village for water and fire protection service. II. At all times hereinafter mentioned, the Village of Edina (hereinafter called Village) was and still is a duly incorporated village, organized and existing under and pur- suant to the laws of the State of Minnesota. III. On or about October 130 19230 said Village granted to Petitioner a franchise for the operation of said water system, which was duly accepted and which was at all times subsequent to said date in full force and effect up to and including the,l2th day of October, 1937, and from and-after that date in full force and effect as amended. _1`. ♦ it Said franchise, as amended, provides in part as follows. PROVISION'S OF FRANCHISE RESPECTING RATES THE VILLAGE COUNCIL OF THE VILLAGE OF EDINA Do Ordain as follows :, SECTION 1: There is hereby granted to'Country Club Dis- trict Service Company, a,00rporation organized under the laws of Minnesota, its successors and assigns, the right and pri- vilege to install, maintain-and operate a water system within the following territory, to -wits To supply water for any and all purposes,to any person, firm, corporation or the Village of Edina, or any of its ageZigie.s for use urithin said Country Club District, together with the right and privilege on the request or demand of any person;,: firm, corporation, or the Village of Edina.to connect said water main and pipes with any and all property within said Country Club District, for use upon and within said Country Club District, with the right on the part of said Country -Club District Service Company, its successors or assigns, to charge such compen- sation as may be agreed upon between it and any person, firm or corporation, or the Village of Edina, which charge, however, must in all and any cases, be fair, reasonable and just. (a). Charges and rates for water shall always be fair, reasonable and just and subject at all times to control and revision by the Village Council,. (b). The Village Council shall have the right to revise such charges and rites, giving notice to the Company of its intention so to do, and the Company shall have the'right of hear - ing before said Village Council. (c). The Company shall have the right to petition - the Village Council to revise its charges and rates from time to time. (d). Consumers, equal to 20 per cent in number as determined by the records of the Company, may petition the Council for.revision of water rates and charges made by said company from time to time. (e). The Company shall have the right at any time within thirty (30) days . after the order or resolution of the Village Council is made re- viging and fixing rates and charges for water, to appeal to the.Distriet Court,of Hennepin County, Minnesota,, from ;the_, rates and' charges so fixed by the Village Council and shall have the right to have such order and action of the Village Council revidwed by said Court. Section 13: (b). That the water to be furnished by said Company shall always be pure and safe for human con- sumption and free from contamination. -2- (o). That the Company -shall furnish a proper test of water when requested by the Village Council or its health officer. (d). The. .quality of water furnished and the times and method of testing the same shall at all times be-subject to the regulation of the Village Health Department and the.Minnesota State Board of Health. (e). In the event the Village shall acquire the sewer system now operated by said Company and any addi -, tions thereto, by condemnation, purchase, abandon- ment or otherwise, the Company agrees to furnish all water needed.or required for flushing sewers at a rate to be agreed upon between the Village Council and the Company, except'as may be other- wise provided for. V. Pursuant to the rights and privileges granted Peti- tioner by said franchises- the Petitioner, has for a period of over twenty (20) years sold water to the residents of said Village,and' for eight (8) years preceding the commencement' of this action Petitioner has sold end now is selling water for domestic use and exclusive of fire protection charges to approximately nine hundred (900) residents of said Village upon the following basis. A minimum ,charge of One Dollar ($1.00) per meter per quarter year, which minimum applies against. the chargo of 17.1 cants per 100 .cubic feet, sub - jedt to a-discount of Ten per cent for payment within ten (10) days after billing, or a net charge .of.15.39 .cents per 100 cubic feet. That said charge and rate now in effect is less than a rate which.would be fair, just and reasonable insofar as the Peti- tioner is concerned. That on the 26th day of February, 1945, there was delivered to.the Petitioner, a notice of a resolution and order of the Village Council of the Village of Edina, a copy of which resolution and order is hereto attached, marked Exhibit "A", and made a part hereof. �3. VI. The rate schedule set out in the resolution and order of said Village is unfair, unreasonable and unjust, is con- trary to and inconsistent with.the provisions of said fran- chise,, in violation of the rights of the Petitioner under. said franchise, and insofar as it.seeks to make'any change retroactive is unjust,,unfair and unreasonable to Petitioner-- and contrary to law. VII. This action is brought under -the terms and provisions of said franchise and is an appeal from the resolution.and order aforesaid and from the 'rates and 'charges therein fixed by said Village Council of the Village of Edina. WHEREFORE, petitioner prays an order of this Court to review the action of the said Village Council aforesaid and dd:etermiming�- that the charges and -rates. therein sought to be fixed are in such revision unfair, unreasonable.and unjust in all respects and contrary to law insofar as such order and resolution seeks to make'the same retroactive .*and that said order and resolution are of no force and effect' and for such other relief as to the Court may seem just and equi- table. Attorney for Petitioner 1460 N; W. Bank Building Minneapolis 2, Minnesota. Dated this day of Farah, 1945. -•4� STATE OF MINNESOTA ) ss COUNTY OF HENNEPIN ; OSCAR GAARDEN, being first duly -sworn,-.upon oath, says he is the president of Country Club District-Ser- vice' Company; corporation named in the foregoing petition; that he has read said petition.and knows the contents thereof; that the averments therein are true of his own knowledge exoept such as are therein stated on informa- tion and belief and as to those he believes them to be true to the best of his knowledge; information and belief. Osc /9 RA4el -1 Subsoribed and sworn to before me this day of March, 1945. THOMAS YfAtF1UK4, Notary public, Honmpin County, Minn. MY Commission Freires Saat. 29. 1947- i l , r. 1 1 . facto and figures eat forth on the.attached exhibit to be trm and adopts the acme 0.9 Ito findings he"In; that upon eaveftl consideration of all of ouch find * mbraoing the historical 000to lose depr"Istien® the Mroductimi costs, loss depreciations, the finmetal btstsry aW all other relevant facts® the Combil herft detemines the fair prgment� vales of the p"pertie nom owned IV the Country Club District Service CampW and. devoted to the public savice, :ImlwAng an adequate allawanco -for working capitals, to be the, awl ,of Fifty Thousand oli o t 500000400- lI the Comell further finds that an dmnUPA raturn of cis per cent (6) an the fair valve of the ProPOV of the `Gauati�+Club:Distriet Service C e used 1, In supplying vies► service in the Ville 'of tdins to fair. r ci able asst! ac Equate. I$1 e em mil f thor finds that the am of Y&" .Thot4na bolln6te \ ($5,;000,,00) is a fair tvd adequr allowance as aW for workIM vapital to moat current opernting espansea and maintain neceawry Inventories of me teree office mWpliea, aqutpmeoto ate. IV :t - the rates rad charges now being made for ter and rater service by tha utillty tO the village Vealdento are not just' and reasonablot and Wit. in the interest of tho public should, be ravisea dowwarde V That. proper. Provision for naequate dcpreciati reserveoa all p er operating w9emee and for a n1z per cant ( � t I not return on the ZvAr pracent the ; Sorvtc a Company's p -Tapeart7 will be Fairly provided for by as anmml yield of 8160 550*004 based via an averace ymr° o caloothrough appro a cattily 9M Peters prosently con ecUde Vx ` t the above requirements will be produced throw the following mto edhedule which Is hereby adcyted and Alch the - Compmy le horeby ovdared and directed to place Into effect an to urge muid to collects BATS SCHM ILM Ao A service clarp of 6D cants per motor per monthp or $I. SD per quartos . shaAl be made in lien of wW other MInImm Ch" roe. loo A grater charge. ce Indicated by neterev shall, be made at tho rate of costs per 100 cubic feet. item p will be subject to as discooat of ten per cent (10;x) for VVment within teat doye after billing dateo a `fit vald rste chango s .l be effective, an of d'aazUU7 I, 1 a W that the Sevvice CGIAD.VW is beroW or tired w3.d directed to refUnd to eta aaW all of its Mtomeng the difference between actual: collections ate. the emomt that, would have ba3.M collected had th© above rates. actually been in effect on that dateg nna W-A without regard to ouch raftMq.. or any delay In the making of saw, or to asW controversies or disputes t1 mt mW arlde by remote of the retroactive provislow of this rates the Village Councilo vAthnut waiver of its ri&t to claim said versa to be made to its caatcmera, here , orders yawl directs that the above rates be placed into effect forthwithp and tkat all charges made for water and aerview p3 z ftwulohod after Jame► "10 -19450 shall be. cao*ntodo - billed 8', coliect9d at omid.-®fit nA000 1) the origiwl conatruttlon c"t of tho antiVe WrAer VOfto syste 1U the Village of IdiVaj ad and useful 'a s of January it 1.944,E me 8161o34s.03 2) Tho norm roproduction **at of the entire • property wadi be $153. .Add 3) the valuo of the OnUre, proVa%V as of iom--ry is 1944o "based. an .gi cost lose depreciation to 43%969.39 4) The value of the entire propo'tV. no of January 1, 19441 basad on normal srWoductlon caret lease depreciation is 0119.E 1000 9) the total orlewl. construction Lost of imprw me me amd esteenotoas built by the Comtry Ol b Dleetriet, 8ftViCe COq9wW# ! „ subOequOUt to 1935 has been 69.39T -TT 6) The novwd ra por tetiorn cost a the %ranter cents aud extensions deacrOad is ltw 5 VoOd 7) fey 'rauo of this property, (item 5) as of .Janun7 1, 19Wss balled an ortainal coot lose desretioa is 6.,�14.tM3 8) 746 value of this prverrty (t tea► 5) as of - Jc ►' 1, 1944# baeod on reproduction coslo $a3 degrecintion t.s 62,5U.00 9) fto unaw ozy0isod portion of the 11westment by the C.C.D.g. Co. 14 propOrtybUllt Sequent to 1935 16 (Item 9 lose accrued depr'ecitation rmarves from 3-orrice co. audit*) s WaA4.12 10) Of the above amount "contributions in aid Of Co"trution" have acct ted for s 1409Di.00 11) the not Investment or the C.C.D.19. Co. 1 Property built mbsequent to 1935 Is 4 33464-22 22) preferred stock of the a.CeD. S. Co. me leamnd to Tho7l a Bran. ON for the paporteA purebuse Of PrVOrtY built prior to 1936 'by Tharp® Bros. ths veltdity of crhich la not admitted by tho TUUO of Mi nag to the osteeot of 9 1593DO00 f 13) Boma! . en atcrUM depVeclatlom ree"ee. rwassea Vii' the O.G.A.S. C6. ssllice 1936 a by vIrtup of ea ld **gVwW he,Q Improperly Ital1saed proportV Ulanging to the Villageo and by virtue of delays In 0ourt and other, prooeedtogg ndceadw7 to z proper detam » Lion of omerWAV and f4ir value, 1mve bean . 6=60afveo vAw Mmed by ftir,wid pier ret s* ' more than 14) or the AbOV6 mm (Item 13) thm a eegiva Momto rr l ea elnce $Astiga#on of the 1940 lItIgation amounts to qWr*xUmtolv se - Comm or Ramniq The undersigned hereby Certifies that hg 3o the Rocordw for the Council of the Villago of m1nal thgt an the 5th.day of Fdbrtavy.o 194% tit d meetlnga c1 Baled wd holds. said Ce ll psese& and adopted a ro6olution and orders a trW and correct copy of thick le attndhod hereto. Mated at Minnempollep Minnesota this 23rd day of Febrwx7, 3.945. I 0I ) Bomar navftww acri'bod 000rn to before 'me thin 23rd, day. of Fehr%i %z7o.__ ES sd) Forry a.'tfoore ep CERTIFICATE OF � BOIJER HAWTHORNE VILLAGE CLERK STATE OF MINNSWTA ) COUNTY OF HENNEPIN) SS VILLAGE OF EDINA I, the undersigned, being the duly qualified and acting Village Clerk and-Recorder of the Village of Edina, Hennepin County, Minnesota, do hereby certify that I have carefully compared the attached transcripts of . the "Minutes 'of the Meeting of the Public Utilities Committee of the Edina Village Council, held at 8:00 P.M., Tuesd%r, June 3, 1947 ", and Minutes of the Special Meeting of the Edina Village Council, held at 9:00 P,M,, Tuesday, June 3, 194711, with_thb originals thereof on file and of record in mV office, and the same are full, true and correct transcripts therefrom. WITNESS cr hand and the official seal of said Village this, the Fifth day of June, 1947. x �'-; Village.Clerk (SEAL) V i CERTIFICATE OF B014MM HAtITHORNE VILLAGE CLERK STATZ OF 11IWIuSOTA ) COUNTY OF WINkTIN) SS VILLAG% OF EDINA I, the undersigned,: being the duly qualified and acting Village Clerk and Recorder of the Village'of Edina, Hennepin County, Plinnesota, do hereby certify that I,.have carefully, compared the attached transcripts of the "Minutes- of :_the Meeting of the Public Utilities _ Committee of the Edina Village Council, held at 8x00 P.M., `Iuesdsy, June 3, 1947 ", and Plinutes of the Special Fleeting of the Edina Village Council, held at 9 :00 P.M., Tuesday, June 3, 194711, with thb originals thereof on file and of record in nV office, and the same are full, true and correct transcripts therefrom. WITNESS mV hand and the official seal of said Village this, the Fifth day of June, 19470 Village Clerk (SEAL) Made this 3rd day of June, 1947; For J?'1.00 and other valuable consideration, including mutual covenants, the undersigned Oscar Gaarden, sole stockholder of Country Club District Service Company, and Country Club District Service Company, a corporation., (by authority of a stockholderst meeting held this date) do hereby irrevocably offer to sell, transfer and convey all of the right, title and interest of the Country Club District Service Company in and to all of its physical assets devoted to water utility purposes, free and clear of all liabilities, as of June 2, 1947, including work and materials now under contract and construction, and also including sewers, to the Village of Edina for the sum of $135,000.00. Said sum is understood to include y2,500.00 for materials, supplies, tools, office equipment, meters, stock, pipe fittings, etc.,,which is to be immediately inventoried at cost and the difference.betti>>een the' amount of said inventory and ;2,500.00, whether more or less, as the case may be, shall be added to or subtracted from the-total sum of $135,000.00. Any improvements, additions, alterations or changes in or to said systems which may be.required between this date and the effective date hereof shall be made and installed by the.Service Company and payment made by the Village therefor in addition to the sum above mentioned, pro- vided, however, that such improvements, installation, change or alterations shall first be approved by the Village Engineer. As a part of this offer, if and when finally accepted, all pending litigation between the parties shall be dismissed with p'ejudice and without cost to either party. f And in addition thereto,.each of the parties shall execute mutual releases absolving the other from any debts,. claims or demands of any kind or nature whatsoever. It is further understood that if the Council resolves to favorably recommend the acceptance of this offer, all pending litigation shall be held in status quo until after July 1, 1947. The payment of said.�135,000.00 shall be made in cash on or before August 15, 1947. - 1. The offerors further propose to operate said systems in the usual and customary manner until July l; 1947. Oscar G aarden agrees to extend his full coopera- tion to the Village by. way of consultation and advice during the transition period. Said Gaarden further agrees to cause this trans- action to be authorized and further approved by its Board of Directors and /or stockholders, if in the opinion of the counsel for the Village the same shall be necessary. It is agreed that this offer shall be submitted to the Village Council of Edina within three (3) days at which time said Council shall either (1) reject said offer, or (2) if deemed satisfactory; said Council will, by appropriate resolution, agree to favorably recommend the purchase.of said properties -at said price to the voters of the Village. if recommended favorably, the Council shall also agree to cause an election to.be held upon the question of the acquisition of- said properties at such time during the month of June as may comply with applicable laws in order that the consummation of said transaction, if approved by the. voters, may be completed on July 1, 1947. 2 It is further understood that if'said Council accepts said offer, the entire transaction shall be set forth in a further formal contract not inconsistent with the pro- visions hereof and With such additional provisions for the protection of both parties as may be necessary in the opinion of their officers and counsel. It is further understood that the Service Company shall pay all obligations for work contracted to the effective date of this instrument. Tie offer also to surrender the ' existing franchises. COUNTRY CLUB DISTRICT SERVICE CGP,ZPAI\Y By_ /V Oscar Gaarden, President Oscar Gaarden,.Individually 3. Y :w OWWILs IU&41 Al S*00 Pmt fit` �r3a.t.w Au a a - h --11, at tbo MMIt vuu two aaro Vito. Atb MAnoa 1,n„ OW nw Cmdttw sett at t "Ilw W4 Am Ao 3ATa to +d" tb~ `b at UO COU"04 tbo 3p*" VJIUWO OWA04# aad SWI. 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THE PUBLIC UTILITIES COMMITTEE. OF THE EDINA- e VILIAGE COUNCIL, HELD AT 8:00 P.M., TUESDAY, JUNE 3, 1947, IN THE EDINA VILLAGE HALL. All members of the Public Utilities . Committee were Ir esent, with Chai rman Utley presiding. The Committee met at the Villagq Hall, June 3, 1947, to receive the report of the Chairman the Special Village Counsel, and -Karl Schmidt,, Consultant, with reference to _ 1 past and current negotiations for the purchase of water and sewer systems from the - Country Club District Services Company;. said matter having ,culminated immediately_ prior to the commencement of the trial on the mater rates case. Messrs. Schmidt and Moo�e were present. r' After full•discussion,' Mr. Hawthorne moved..' seconded by Mr. Willson, that the recommendation of the Chairman of the Committee, Counsel, and Consultant, that the water and sewer systems be purchased from the Country Club District Service Company and Oscar 1 Garden as presented to the meeting be accepted, and that'said purchase be' favorably recommended to the Village Council for acquisition, according to law. Motion passed unanimously. Motion.by Hawthorne for adjournment was seconded by Child and carried. 'Respectfully submitted • H. C. Utley, Chairman ° Public Utilities Committee 9 V % Age - -- - -- - - - -- -- - - -- - - - - -- "74 I MINUTES'OF THE SPECIAL MEETING OF IHE* EDINA VILLAGE COUNCIL, HELD AT 9:00 P.M., TUESDAY,,JUNE-3. 1947, IN THE EDINA VILLAGE HALL. All members of the Villa ge Council were present. President Christopher called the meeting to order, stating that the Special Meeting was being convened with unanimous consent of the Council. Chairman Utley of the Public Utilities Committee reported as follows: (Pick up Full Text 'of Minutes of Public 'Utilities Committee) -Hawthorne moved, Utley seconded, and motion was unanimously carried, that written offer of the Country Club District Service Company and Oscar Gaarden, dated June 3, 1947, be written into the Minutes of this Meeting and made a part hereof:. (Pick up .Written Offer Here) Utley offered the following Resolution-and moved its adoptions BE IT RESOLVED by the Village CcAmcil of the Village of Edina that the written offer of the Country Club District Service Company and Oscar.Gaarden, dated June 3, 1947, to sell to the Village of Edina the,properties of said Company for $135,000 be accepted; and that the Council proceed to accpire said properties in accordance with said offer or as otherwise permitted by law. Motion to adopt the Resolution was seconded by- Hawthorne, and on Rollcall there were fYve ages and no nays., as follows Child, aye; Utley, aye;.Willson, aye; Hawthorne, ape; and Christopher, aye; and the Resolution was adopted. ATTEST: President of the Village Council Village Clerk Utley moved, Hawthorne seconded, and motion was unanimously carried, that Village Attorney and Mr. Perry Moore, as Special Village Counsel, be directed to f urnish the Village Council with proper procedure for acquiring properties of Country Club District Service Company, and o draft the proper resolutions. for' said acgpisition. Mo ion by Hawthorne for adjournment was seconded by Utley and carried. _Village Clerk L(-�' r�1122,12 4-0 A5� �21 �,p M�,e, - - �o k2 j6j&�4-9 T4- Ael -,"4' 110 1164 Y .ctRi a3- ej leol