HomeMy WebLinkAboutCity Council Ordinance 1962-07Ordinance No. 62-7
Village of Plymouth
An Ordinance Granting a Fran-
chise to Birchwood Estates Wa-
ter Co., to Construct. Operate
and Maintain a Water yatem
in the Village of Plymonihl set-
ting forth conditions accompa.
nyinngg the Grant of Franchise:
Providing for Village Regula•
tion of the Water System Pro-
Ti
Option for Ta>ceo�sr
by the Village of Plymouth: and
Prescribing Penalbi for the
Violation of its Provisions.
The Village Council of the Vil-
lage of Plymouth does hereby or-
dain as follows:
Section 1. Title. This Ordinance
shall be known and may be cited
as the Birchwood Estates Water
Franchise Ordinance.
Section L Definitions. For the
purpose of this Ordinance, the
following terms, phrases, words
and their derivations shall have
the meaning given herein. Wher.
not inconsistent with the context,
words used in the present tense
include the future, words in the
plural number include the singu-
lar number, and words in the
singular number include the
plural number. The word "shall'
is always mandatory and t,at
merely directive.
2.1 "Village" is the Village of
Plymouth.
2.2 "Company" is the grantee
of rights under this franchise as
follows, namely Birchwood Es-
tates Water Co.
2.3 "Council' is the Village
Council of the Village of Plym-
outh.
2.4 "Person" is any person, firm,
partnership, association, corpora-
tion, company or organization of
anv kind,
Section 3. Grant of Authority.
There is hereby granted by the
Village to the Company, its suc-
ceSsors and assigns, the right and
privilege to construct, erect, oper-
ate, and maintain in, upon, along,
across, above, over and under the
streets, alleys, public ways and
public places now laid out or ded-
,caterd and all extensions thereof
and additions thereto in the Vil-
lage, pipes, accessories and other
fixtures necessary or proper for
the maintenance and operation in
the Village of a water distribu-
tion system. This `ranchise and
grant of authority is liven in re-
spect to the following described
area in the Village of Plymouth.
That part of the Northeast u4
of the Southeast ?a, lying north
of the South 535.4 feet thereof;
that part of the East 10 acres of
Government Lot 7, lying north
of the South 535.4 feet thereof;
also that part of the North 725
feet of Government Lot 7, lying
west of the West line of the East
10 acres of said Government Lot
7; all in Section 32, Township
118, Range 22. Subject to an
easemer c for road purposes over
the East 33 feet thereof.
The right to use and occupy said
streets, alleys, public ways and
places for the purposes herein set
forth shall not be exclusive and
the Village reserves the right to
grant the similar use of said
streets, alleys, public ways and
places to any person at any period
of this franchise.
Section 4. Compliance with Ap-
plicable Laws and Ordinances.
The Company shall at all times
during the life of this franchise be
subject to all lawful exercise of
the police power by the Village
and to such reasonable regula-
tions as the Village shall here-
after by Resolution or Ordinance
provide.
Section '.i. Company Liability
Indemnifieation. It is expressly
understood and agreed by the and
between the Company and the
Village that the Company shall
save the Village harmless from
all loss sustained by the Village
on account of any suit, judgement,
execution, claim or demand what-
soever resulting from negligence
on the part of the company in the
construction, operation or main-
tenance of its water system in
the Village. The Village shall
notify the Company by registered
mail addressed to the following
address:
16018 Excelsior Boulevard,
Hopkins, Minnesota
within 90 days after the presen-
tation of any claim or demand,
either by suit or otherwise, made
against the Village on account of
any negligence as aforesaid on the
part of the Company.
Section 6. Liability Insurance.
At the time of acceptance of this
franchise, the Company shall pro-
cure the issuance of and keep in
force at all times thereafter dur-
ing construction, maintenance or
operation of the system or any
part thereof by the Company,
public liability insurance with
personal injury limits of not less
than $100,000.00 each person and
$300,000.00 each accident and pro-
perty damage limits of not less
than $25,000.00. Said policy of in-
surance shall be issued by an in-
surance company authorized to do
business in the State of Minnesota
and approved as to form by the
Village attorney. Said insurance
policy shall provide protection to
the Village in accordance with
the indemnification p r o v i s i o n
above. A certifited copy of such
insurance policy shall be filed
with the Village Clerk, at the
time of notification by the Com-
pany of acceptance of the fran-
chise.
Section 1. Construction It is
contemplated that the Company
shall construct the water system
in the area stated in portions as
platted. In advance of the start
of construction of each portion of
the system, the Company shall
submit to the Village Council, in
duplicate, complete pians and
specifications for the portion pro-
posed to be constructed. Such
plans and specifications shall be
examined by the Village Engin-
eer and shall meet the reasonable
requirements of the Village Coun-
cil and the Village Engineer and
no construction of said portion of
the water system shall be com-
menced unless and until written
notice of approval by the Council
has been furnished by the Village
Clerk.
Once construction h a s b e e n
commenced, it shall be diligently
prosecuted by the Company to
completion.
Section S. Bond — Construc-
tion. Prior to the start of con-
struction of each portion of the
water system, the company shall
furnish to the Village a corpo-
rate surety performance and com-
pletion bond in an amount of not
less than 100% of the estimated
cost of completing such portion
of the system, conditioned upon
the Company's construction and
completion of such portion of the
system in accordance with the
plans and specifications approved
by the Village Council and in ac-
cordance with the provisions of
this Ordinance. No such construc-
tion shall be started until the
bond furnished has been ap-
proved by the Council and filed
with the Village Clerk.
Section & Sento Standards.
The Company shall maintain and
operate its water plant and sys-
tem, render efficient service, and
supply water to users in such
quantities as shall be in accord-
ance with the reasonable rules
and regulations as may be from
time to time promulgated by the
Village Council. The quality of
such water shall meet the mini-
mum standards prescribed by the
Minnesota State Board of Health.
All water shall be supplied
through meters which shall ac-
curately measure the amount of
water supplied to any consumer
and the Company shall, at any
time when requested by a con-
sumer, make a test of the accu-
racy of any water meter. When-
ever it is necessary to shut off
or interrupt service for the pur-
pose of repairs, adjustments or
installation, the Company shall
do so at such time as will cause
the least amount of inconvenience
to its customers and unless such
repairs are unforeseen and imme-
diately necessary, the company
shall give reasons b l e notice
thereof to consumers.
Section 10. Company Hulas. The
Company shall have the authority
to p-omulgate such rules, regula-
tionf, terms and conditions gov-
erning the conduct of its business
ae .hall be reasonably necessary
to enable the Company to exer-
cise its rights and perform its ob-
ligations under this franchise and
to insure an uninterrupted service
to each and all of its customers.
It is provided, however that such
rules, regulations, terms and con-
ditions shall not be in conflict
with the provisions hereof or of
laws of the State of Minnesota
and such rules and regulations,
terms and conditions shall be sub-
ject to approval of the Village
Council.
Section 11. Bor_d — Perform-
ance. At the time of acceptance
of this franchise, the Company
shall procure, and keep in force
thereafter at all times during the
period of this franchise, a corpo-
rate surety performance bond in
an amount not less than $5,000.00
conditioned upon compliance with
all the terms of this franchise and
the reasonable regulations by the
Village Council and conditioned
upon the continued supplying by
the Company of an adequate and
safe water supply to the cus-
tomers and users of the water
system and upon the proper
maintenance, operation and up-
keE of the system.
Section 1L Restoration. In case
of any disturbance of pavtment.
sidewalk, drive -way, or other
surfacing, by the Company or its
agents and employees then the
Company sh:ali at its own cost
and expense Rnd in a manner
approved by the Village Engin-
eer, replt.ce and restore all pav-
ing, sidewalk or driveway sur-
face or any street or alley dis-
turbed in as good condition as
before said work was commenced
and shall maintain the restora-
tion in an approved condition for
a period of one year.
Section IL Relocation. In the
event that at any time during the
first twelve and one-half years
of this franchise the Village shall
I-wfully elect to alter or change
We grade of any street or alley
or other public way, any removal,
re-laying and re -location of any
of the pipes, tubing or other fix-
tures of the water system shall
be accomplished at the expense
of the Village. In the event that
at any time during the second
twelve and one-half years of this
franchise the Village shall law-
fully elected to alter or change
the grade -f any street or alley
or other public way, the Com-
t,.any, upon reasonable notice by
the Village, shall remove, re-lay,
and re -locate its pipes, tubing and
other fixtures at its own expense.
Section 14. Coat. The Company
shall pay to the Village all rea-
sonable costs incurred by the Vil-
lage in examination of plans and
specifications, policing construc-
tion, preparation of legal instru-
ments and documents and publi-
cation of franchise.
Section I& Preferential or Dis-
criminatory Practices Prohl **&
The Company shall not as to
rates, charges, service facilities,
rules, regulations or in any other
respect make or grant any prefer-
ence or advantage to any person
nor subject any person to any
prejudice or disadvantage; pro-
vided that, nothing in this fran-
chise shall be deemed to prohibit
the establishment of a graduated
scale of charges and classified
rate schedules to which any cus-
tomer coming within such classi-
fication would be entitled.
Stenon 14. Rates — IaWaL The
Company shall he entitled to
charge water usere a fair and
reasonable rate for the furnishing
of water. Initial rates are es-
tablished as follows:
Flat rate—$.50 per t h o u s a n d
gallons.
Minimum rate — $3.00 per
month.
Section 17. Hates
The Company shall be entitled
charge water users such rates for
the furnishing of water as will
produce a reasonable return upon
its investment, which in no event
shall exceed 6% thereof, It shall
depreciate the property at a rate
of 4% per annum. Depreciation
shall be a proper expense for pur-
poses of determining the Com-
pany's return upon its investment.
If the Company desires to in-
crease rates as above provided,
it shall file with the Village
Clerk, at least 00 days prior to
the date the grantee desires to
have the new rates become effec-
tive, a schedule of the proposed
increased rates. Such new rates
shall become effective on the rate
requested by the Company unless
disapproved by the Village Coun-
cil before such date. If the pro-
posed rates are disapproved by
the Council, the rates then in ef-
fect shall continue in effect.
Section le. Hydrants. The Com-
pany shall install and maintain
hydrants as a part of its water
distribution system for the pur-
poses of fire protection. The loca-
tion of all hydrants shall be ap-
proved by the Village Engineer
and said hydrants may be used
by the Village in the performance
of its governmental functions
without charge and as a part of
the consideration for the issuance
of this franchise.
Section I& Hook-up Charges,
For permitting a user to hook-up
to the water system the charges
made by the Company for such
shall be limited to the cost of
materials and labor in no event
shall such charges exceed the sum
of $500.00 per user.
Section 20. Reports. The Com-
pany shall file with the Village
Council annually, a copy of its
annual report for the preceding
fiscal year, together with a bal-
ance sheet anit ;ncome statement
for the operation by the Com-
pany under this franchise. At the
request of the Village Council at
any time, copies of income tax re-
turns filed with the Federal Gov-
ernment shall be furnished by
the Company to the Council.
section 21. Sale to Vivage. In
the event the Village should de-
sire to acquire the water system
during the term of this franchise,
or if at the expiration of the
franchise term, or upon forfei-
ture as provided in Section 23 be-
low, the Village elects to obtain
and take over the property of the
Company in its entirety, then in
that event the Village shall at-
tempt to make purchase of said
property on a negotiated basis
with the then owners. In the
event that such negotiations
should fail then the purchase
price shall be determined by
three appraisers, one of whom
shall be selected by the Village,
one of whom shall be selected by
the then owners of the system
and the third of whom shall be
selected by the first two so chos-
en. Said appraisers shall hear the
parties and make a determination
as to the value of the system and
their determination as to a fair
sale and purchase price shall be
binding upon said parties.
Section 22. Insurance System
The Grantee shall at all times
keep the water tanks, pumps,
pump houses and other insurable
portions of the system, or any
part thereof, insured in an insur-
er approved by the Village Coun-
cil against the perils of fire, wind-
storm and other coverages set
forth in the standard extended
coverage endorsement, to the ex-
tent of the replacement cost
thereof, and shall Ale a certificate
of such insurance with the Vil-
lage Clerk. Such insurance shall
be payable to the Grantee and to
the Village as their interests may
appear, and the Grantee shall be
obligated to use the proceeds
thereof for the repair or replace-
ment of the damaged or destroyed
property, to the extent necessary
to so repair or replace such dam-
aged or destroyed property.
Section 23. Forfeiture. Any vio-
lation by the Company, its ven-
dees, lessee, or successors of the
provisic:►s of this franchise or any
material portion thereof, or the
failure to promptly perform any
of the provisions thereof, shall be
cause for the forfeiture of this
franchise and all rights here-
under. Such forfeiture shall be
instituted only after written no-
tice to the Company by the Vil-
lage and a continuation of such
violation, failure or default. In
addition thereto, any person, firm
or corporation violating any of
the provisions of this Ordinance
shall be deemed guilty of a mis-
demeanor and punished accord-
ingly. Each day of such violation
shall constitute a separate of-
fense.
Section 24. Effective Date. The
franchise and rights herein grant-
ed shall take effect and be in
force from and after the final pas-
sage hereof as required by law,
filing of acceptance by the Com-
pany with the Village Clerk and
publication; and shall continue in
force and effect unless otherwise
terminated for a term of 25 years
after the effective date of this
franchise. This franchise shall be
deemed null and void unless an
acceptance has been filed within
14 days after notification to the
Company.
Passed on first reading this 3rd
day of July, 1984.
Thos J. Keefe,
Mayor
Attest:
W T. Johnson, Clerk
(7-12, '02)