upr000089 100

\ u W m value of the material and supplies, also net In & 3 M m in the appraisals, was $89,908*90 at September 1,1938, of which, in ay opinion, onijr that portion of It that In applicable to the maintenance material B M m m be considered ae included in paragraph (e) of the purchase offer, for reasons stated in a? letter of December 17, 1998 to Hr# Bennett# ffee mine of the maintenance material and supplies at September 1# 1998 should not be ineluded in the appraisals} however, Z ad 11 need sn estimate of snoh rains in order to do* duet it from the gross offer of 18,900,000 preliminary to as* sigzatsat o f the remainder of the offer to the property. On the appraisal stannary it is stated that the mine of the eater rights has bees excluded from the appraisals# Is such mine Included in the m ine of $897,950 assigned to the eater bearing lands? is yon sill resell, a mine of #90,000 see assigned to the eater rights during the resent rate ease be* fore the M i Public service commission# It is also stated on the appraisal summary that the "going concern mine" has been excluded from the appraisals# Z a this an item that should be excluded? Use# if available, ehat amount m e considered to represent this item and on ehat basis, if needed, could it or should it be segregated between the two water facilities? It ie a i m noted in section 3 on page 9 of the pro* posed purchase contract with the later District, which was read at the conference referred to on page 1 hereof, that notwith­standing the other provisions thereof, whereby additions and betterments oenstrueted after September 1, 1998 would be added to the beele purchase price, the entire cost of the improvements being constructed under W#9« Ho# 8019-21 will be borne by the railroad and will not be added to the basic purchase price# W#0*Ho# 9015-lA provides for the construction of a booster pumping station containing two pumps at charleston Boulevard Reservoir, eonstruetloa of a 3 0 0 ,0 0 0 gal# elevated steel tank and various pipe lines# The east of this work Is estimated at #18?,900, and as of October 31, 1938 there had bean expended #91,709*59 of which only #193*83 had been expended as a t May 31. 1998# The work was started May 89, 1998 and at Movam* bar 30, 1998 was *9$ physically completed# Since the additions M l betterments in your appraisals have been brought down only to May 31, 1998f I assume that only the amount of #193«83 for W*0. Ho* 9019*11 is presently Ineluded in your appraisals# If this assumption is correct, and since it appears to be the intention for the railroad to complete this project at its expense, and upon your confirming this intention I suggest the entire estimated cost of #187,800 be ineluded in your revised appraisals for M m Co# property#