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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)