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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)