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Show AQUEDUCT NEAR SAN DIEGO, CALIF. 3 ing 10 percent, the Federal Works Agency 20 percent, and the balance (70 percent) being borne by the INavy. The hope was expressed at that time tha* the construction work would take less than 2 years. And, finally, the said letter made reference to the recommendation of the committee that the city of San Diego should negotiate with the metropolitan water district of southern California with respect to postwar utilization of the new aqueduct. The records indicate that by check No. 8540253, dated August 28, 1945, the War Department paid $1,500,000 as its share of the estimated cost of the work to the Navy Department. At about the same time the Chief of the Bureau of Yards and Docks called upon the Federal Works Agency for $3,500,000 as its share of the estimated cost. In reply, the Administrator advised that it would be necessary to secure clearances from the Bureau of the Budget and the Appropriations Committees of the House and Senate before the requested funds could be advanced. Later, by letter dated August 30, 1945, the Administrator wrote to the Secretary of the IM avy, in part, as follows: With the cessation of the war and the onset of demobilization, I am reluctant to attempt obtaining the necessary authority to allocate any funds to assist in the construction of the San Diego war-supply project, unless such allocation of funds by the Federal Works Agency under present conditions should be essential and clearly in the public interest. I urge, cherefore, that you review this water project in the light of the changed conditions and that you advise me whether the construction of the project, either as planned or with modifications, is necessary and in the public interest and, furthermore, whether you deem it essential and proper that the Federal Works Agency participate in defraying any part of the cost of such project.. I shall defer taking any further action regarding this matter pending the receipt of your reply to this letter. The reply of the Secretary of the Navy, dated October 23, 1945, was, in pertinent part, as follows: Subsequent to receipt of your letter of August 30, the entire matter of the construction of this aqueduct has been given thorough reconsideration by the Secretary of the Navy, with the result that a decision has been made to proceed with the work, without modification in design, as a necessary adjunct to the water-supply system of the city of San Diego. Completion of this construction at the earliest possible date is considered to be in the public interest, inasmuch as the prospective requiiements for potable water in the San Diego area will not be appreciably diminished in the foreseeable future and the condition of the ieserve supply continues critical. This Bureau accordingly proposes to proceed with construction of the project in conforming with the President's original instructions. During the restudy of this project, it was considered appropriate to review the financial aspects and future disposition of this aqueduct. With the approval of the Bureau of Reclamation, the Navy Department has entered into an agreement with the city of San Diego, under which the aqueduct wTill upon completion be leased to the city at an annual rental of $500,000. The city of San Diego will assume responsibility for the maintenance and operation of the line. The city further has an option at 5-year intervals,with approval of the electors, to purchase the aqueduct at its construction cost minus the total amount of rentals to date. The term of the lease is for 32 years unless terminated at an earlier date due to the city exercising its option to purchase. Under this agreement, construction funds advanced by the Navy and other participating agencies will be eventually returned in full to the Treasury. As you will recall, the War Department is to share in the cost of this project and that Department's share of the funds already have been transferred to this Bureau. The original construction cost was conservatively estimated at $17,500,000, but it has now been found that because of the favorable low bids received in the cases of contracts already awarded, the total construction cost of the entire project will be considerably reduced. Inasmuch as revised estimates now indicate that the work can be accomplished for approximately $14,500,000, it will now be possible to reduced your Agency's share (20 percent) in the partici- |
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Original book: [State of Arizona, complainant v. State of California, Palo Verde Irrigation District, Coachella Valley County Water District, Metropolitan Water District of Southern California, City of Los Angeles, California, City of San Diego, California, and County of San Diego, California, defendants, United States of America, State of Nevada, State of New Mexico, State of Utah, interveners] : California exhibits. |