HomeMy WebLinkAboutCity Council Ordinance 1964-05VILLAGE OF PLYMOUTH
ORDINAKII.- E NO. 64-5
An Ordinance Gbsasting a Fran -
cum to Birchwood lutes wa-
ter Co.. to Ca sstruaL overaft
and Maintain a Waters System
in the Village of Plymouth;
Setting Forth Conditions Ac.
companying the Otani of Fran-
chises Providing for Village
Regulatim of the Water Sys-
tema Providing an Option for
Take -owes bT the Village of
Plymouths and Prescribing Pen.
alties for the Violation at the
Provisions.
The Village Council of the Vil-
lage of Plymouth does hereby
ordain as follows:
Section 1. Title. This Ordinance
;shall be known and may be cited
as. the Birchwood 'Mates Water
riauchise Ordinance.
Section A Deffinitions. For the
purpose of this Ordinance, the
following terns, phrases, words
and their derivations shall have
the meaning given herein. When
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 plur-
' number. The word "shall" is
always mandatory and not mere-
ly 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 Ply-
mouth.
2.4 "Person" Is any person,
firm, partnership, association, cor-
poration, company or organiza-
tion of any 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, op-
erate, and maintain in, upon,
along, across, above, over and
under the streets, alleys, public
ways and public places now laid
out or dedicated and all exten-
s I o n s thereof and additions
thereto in the Village, pipes, ac-
cessories and other fixtures ne-
cessary or proper for the main-
tenance and operation in the Vil-
lage of a water distribution sy-
stem. This franchise and grant
of authority is given in respect
to the following described area
in the Village of Plymouth:
All of the area within the
boundaries of the prelimin-
ary plat of Imperial Hills as
approved by the council on
October 26, 1864, a copy of
which preliminary plat is on
file in the office of the Vil-
lage Clerk.
The right to use and occupy
said streets, alleys, public ways
and places for the purptwes here-
in set forth ahal'-not be exclusive
and the Village reserves the right
to grant the similar use of said
streets, allevs, public ways and
places to any person at any per-
iod of this franchise.
Section 4. Compliance with Ap.
plic" 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 Vil-
lage and to such reasonable reg-
ulation as the Village shall here-
after by Resolution or Ordinance
provide.
Section L Company Liabfiif+ly--
Ind�mnificatioa. It is expressly
understood and agreed by and
between the Company and the
Village that the-ompany shall
save the village harmless from
all loss sustained by the Village
on account of any suit, judgment,
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 no-
tify 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 afore -said 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 leas
than $100,000.00 each person and
$300,000.00 each accident and
property damage limits of not
less than $W,000.00. Said policy
of insurance shall be issued by
an it ,urance company authorized
to do business in the State of
Minnesota and approved as to
form by the Village Attorney.
Said insurance policy shall pm -
vide protection to the Village in
accordance with the indemnifica-
tion provision above. A certified
copy of such insurance policy
shall be filed with the Village
Clerk, at the time of notice
by the Company of acceptance of
the fkanchise.
Section !. Coot: echo It is
contemplated that the Company
shall construct the water system
in the arra stated in portions as
platted. In advance of the start
of construction of each portion
(f the system, the Company shall
E.ubmit 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 Coun-
cil has been furnished by the
Village Clerk.
Once construction has been
commenced, it shall be diligently
prosecuted by the Company to
completion.
Section 8.
Prior to the start of construction
of each portion of the water sy-
stem, the Company shall furnish
to the Village a corporate surety
performance and completion 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 com-
pletion of such portion of the
system in accordance with the
plans and specifications approved
by the Village Council and in
accordance with the provisions
of this Ordinance. No such con-
struction shall be started until
the bond furnished t ; been ap-
proved by the Coun .: and filed
with. the Village Clerk.
section sl. Service Standards.
The Company shall maintain and
operate its star plant and sy-
stem, render t. Acient seniL*_ and
supply water - %ers in such
quantities as all oe in accord-
ance with the reasonable rules
and regulations as may :)e 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 Hoard of Health
and determinations of such qual-
ity shall be made by the Minne-
sota State Board of Health. All
water shall be supplied through
meters which shall accurately
measure the amount of water
supplied to any consumer and
the Company shall, at any time
when requested by a consumer,
make a test of the accuracy of
any water meter. Whenever it is
necessary to shut off or interrupt
service for the purpose of re-
pairs, adjustments or installation,
the Company shall do so at such
time as will cause the least
amount of inconvience to its cus-
tomers and unless such repairs
are unforeseen and immediately
necessary, the Company shall give
reasonable notice thereof to con-
sumers.
Section is Company Rules.
The Company shall have the au-
thority to promulgate such rules.
regulations, terms and conditions
governing the conduct of its busi-
ness as shall be reasonably ne-
cessary to enable the Company
to exercise its rights and per-
form its obligations ander this
franchise and to insure an unm_
terrupted service to each and all
of its customers. It is provided,
however, that such rules, regu-
lations, terms and conditions shall
not be in conflict with the pro-
visions hereof or of laws of the
State of Minnesota and such rules
and regulations, terms and con-
ditions shall be subject to ap-
proval of the Village Council.
Section ll. Bond—Performance.
At the time of acceptance of this
franchise, the Company shall
procure, and keep in force there-
after at all times during the per-
iod of this franchise, a corporate
surety performance bond is an
amount not less than $5,000.00
conditioned upon compliance with
all the terms of this franehis-
and the reasonable rcgulations
by the Village Council and con-
ditioned upon the continued sup-
plying by the Company of an
adequate and safe water supply
to the customers and users of the
water system and upon the prop-
er maintenance, operation and
upkeep of the system.
Section IL Restoration. In case
of any disturbance of pavement,
sidewalk, drive -way, or other
surfacing, by the Company or its
agents and employees then the
Company shall at its own cyst and
expense, and in a manner ap-
proved by the Village Engineer,
replace and restore all paving,
sidewalk or driveway surface of
any street or alley disturbed in
as good condition as b+lore said
work was commenced and shall
maintain the restoration in an
approved condition for a period
of one year.
Section I& Relocation. In the
event that at any time during
the first twelve and one-half
years of this franchise the Vil-
lage shall lawfully elect to alter
or change the grade of any street
or alley or other public way, any
removal, re-laying and reloca-
tion of any of the pipes, tubing or
other fixtures of the water sy-
stem 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
lawfully elect to alter or change
the grade of any street or alley
or other public way, the com-
pany, upon the reasonable notice
by the Village, shall remove, re-
lay and re -locate its pipes, tub-
ing and other fixtures at its own
expense.
Section 14. Costs. The Company
shall pay to the tillage all reas-
onable 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 15. Preferential or Dis-
criminatory Practices Prohibited.
The Company shall not as to
rates, charges, service facilities,
rules, regulations or in any other
respect make or grant any pref-
erence or advantage to any per-
son nor subject any person to any
prejudice or disadvantage; pro-
vided that, nothing in this fran-
chise shall be deemed to pro-
hibit the establishment of a grad-
uated scale of r;ipiges and clas-
siflea rate sch,:t:ules to which
any customer coming within such
classification would be entitled.
Section Ill. Rates—Initial. The
Company shall be entitled to
charge water users a fair and
reasonable rate for the furnishing
of water. Initial rates are estab-
lished as follows:
Flat rate — $.50 per thousand
gallons.
Minimum r a t. e— $8.00 p e r
month.
Section 17. Rates — Changes.
The Company shall be entitled to
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. De-
preciation shall be a proper ex-
pense for purposes of determin_
ing the Company's return upon its
investment. If the Company de-
sires to increase rates as above
provided, it shall file with the
Village Clerk, at least 90 days
prior to the date the grantee de-
sires to have the new rates be-
come effective, a schedule of the
proposed increased rates. Such
new rates shall become effective
on the date requested by the
Company unless disapproved by
the Village Council before such
date. If the proposed rates are
disapproved by the Council, the
rates then in effect shall continue
in effect.
Section 10. 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 lo-
cation of all hydrants shall be
approved 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 It Hook-up Charges.
For permitting a user to hook-up
to the watr:, system the charges
made by the Company for such
shall be limited to the cost of ma-
terials and labor and in no event
shall such charges exceed the
x
sum of $SWM per user.
its 21k Reporta. 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 and income statement
for the operation by the Com-
pany under this franchise. At the
request of the Village Couts-2il at
any time, copies of income tax
returns filed with the Federal
Government shall be furnished by
the Company to the Council.
Seed= 21. Sao to village. 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 fran-
chise term, or upon forfeiture as
provided in Section 23 below, the
Village elects to obtain and take
over the oroperty of the Compare•
in its entirety, then in that evi nt
the Village shall attempt 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 deter-
mined 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 chosen. Said appraisers shall
hear the parties and make a de-
termination 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, pumrs,
pump houses and other insurable
portions of the system, or any
part thereof, insured in an in-
surer approved by the Village
Council agains . the perils of fire,
windstorm and other coverages
set forth in the standard extend-
ed coverage endorsement, to the
extent of the replacement cost
thereof, and shall file a certificate
of such insurance with the Vil-
lage Clerk. Such insurance shalt
v payable to the Grantee and to
he Village as their interests may
appear, and the Grantee shall be
obligated to use the proceeds
thereof for the repair or re-
placement of the damaged or
destroyed property, to the ex-
tent necessary to so repair or
replace sut:li damaged or de-
stroyed property.
Section 2& Forfeiture. Any
violation by the Company, its
vendees, lessee, or successors of
the previsions of this franchise
or any material portion thereof,
or the failure to promptly per-
form any of the provisions there-
of, shall be cause for the forfeit-
ure of this franchise and all
rights hereunder. Such forfeiture
shall be instituted only alter
written notice to the Company by
the Village and a continuation
of such violation, failure or de-
fau%t. In addition thereto, any
person, firm or corporation vio-
lating any of the provisions of
this ordinance shall be deemed
guilty of a misdemeanor and
punished accordingly. Each day
of such violation shall constitute
a separate offense.
Section R4. Effective Data. 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 other-
wise 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
Bled within 14 days after notiff-
cation to the Company of passage.
Passed on first reading this 9th
day of November, 1964.
(Sgd.) Loring M. Staples, Jr.
Mayor
ATTEST:
H. T. Johnson
Clerk
(11-15,'64)