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HomeMy WebLinkAboutCity Council Ordinance 1961-06ORDINANCE NO. VILLAGE OF PLYMOUTH An Ordinance Granting a Fran- chise to Hadley Hills Water Co.. to Construct. Operate and M �n- tain a Warr System in the Village of Plymouth; Setting Forth Conditions Accompany- ing the Grant of Franchise; Providing for Village Regula- tion of the Water System; Pro- viding an Option for Take -Over by the Village of Plymouths and Prescribing Penalties for the Violation of Its Provisions. The Village Council of the Vil- lage of Plymouth does hereby ordain as follows: Seetim 1. Title. This Ordinance shall be known and may be cited as the Hadley Hills Water Fran- chise Ordinance. Sectbm 2. Definitions. For the purpose of this Ordinance, the following terms, 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 wards in the singular number include the plur- al number. The word "shall" is always mandatory and not merely directive. 2.1 "Village" is the Village of Plymouth. 2.2 "Company" is the grantee of rights under this fran- chise as follows, namely Hadley Hills Water Co. 2.8 "Council" is the Village Council of the Village of Plymouth. 2.4 "Person" is any person, firm, partnership, associa- tion, corporation, company or organization of any kind. Section 3. Grant of Authority. There is hereby granted by the Village to the Company, its suc- cessors and assigns, the -ight 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 dedicated and all extensions thereof and additions thereto in the village, paper, accessories and other fixtures necessary or proper for the maintenance and opera- tion in the Village of a water dis- tribution system. This franchise and grant of authority is given in respect to the following described area in the Village of Plymouth: The right to use and occupy said streets, alleys, public ways and places for the purposes here- in 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 per- iod 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 Vil- lage and to such reasonable regu- lation as the Village shall here- after by Resolution or Ordinance provide. sections. Company y— Indemniiicadon. It is expressly understood and agreed by 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, judgment, execution, claim or demand what- soever resulting from negligence on the part of the Company in the construction, operation or maintenance of its water system in the Village. The Village shall notify the Company by registered mail addressed to the following address: % David C. Bell Investment Company Midland Bank Building, Min- neapolis, Minnesota within 90 days after the presen- tation of any claim or demand, either by suit or itherwise, made against the Village on account of any negligence as afore -said on the part of the Company. Section 6. L WAlitr 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- -ig construction, maintenance or .,peration of the system or any part thereof by the Company, public liability insurance with personal injury limru, -%f not less than $1W QW.00 each Ix -son and 61-b $300,000.00 each accident, and property 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 Minne- sota and approved as to form by the Village Attorney. Said insur- ance policy shall provide protec- tion to the Village in accordance with the indemnification provi- sion above. A certified copy of such insurance policy shall be filed with the Village Clerk, at the time of notification by the Company of acceptance of the franchise. Section 7. 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 plans and specifications for the portion pro- posed to be constructed. Such Plans and specifications shall be examined by the Village Tngi- neer and shall meet the reason- able requir !.neints of the Village Council and the Village Engineer and no construction of E aid por- tion of the water Sy,, err, shall be commenced unless and , 3ntil writ- ten notice of approval by the Council has been furnished by the Village Clerk. Once construction has been commenced, it shall be diligently prosecuted by the Company to completion. Section 6. B%_,� . Prior to the start of construction of each portion of the water sys- tem, the Company shall furnish to the •. iilage a corporate surety performance and completion bond in an amount of not less than 100% of the estimated cost of completing such portion ..;f the system, conditioned upon the Company's construction and com- pletion of such portion of the system in accordance with the plans and speeifications approved by the Villagf Council and in ac- cordance with the provisions of this Ordinance. No such construc- tion shall be started until the bond furnished has been approved r by the Council and filed with the Village Clerk. Section •. Senice 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 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 mi:asure 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 interrupe service for the purpose 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 immediately necessary, the Company shall give reasonable notice thereof to consumers. Section 10. Company Rules. The Company shall have the authori- ty to promulgate such rules, regu- lations, terms and conditions gov- erning the conduct of its business as shall be reasonably necessary to enable the Company to exer- cise its rights and perform its obligations under this franchise and to insure an uninterrupted service to each and all of its customers. It is provided, how- ever, that such rules, regulations, terms and conditions 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 subject to approval of the Village Council. Section 11. Bond --Performance. At the time of acceptance of this franchise, the Company shall pro- cure, and keep in force thereafter at all times during the period of this franchise, a corporate surety performance bond in an amount not less than $5,0(V.00 conditioned upon compliance with all the terms of this franchise and the reasonable regulations by the Vil- lage Council and conditioned upon the continued supplying by the Company of an adequate and safe water supply to the custo. mers and users of the water sys- tem and upon the proper mainte- nance, operation and upkeep of the system. Section 12. Restoration. In case of any disturbance of pavement, sidewa)k, drive -way, or other sur- facin�, by the Company or its agents and employees then the Company shall at its own cost 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 a.3 before said work was commenced and shall maintain the restoration in an approved condition for a period of one year. Section 16. RelonC xt. In the event that at any time during the first 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, 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 fran- chise the Village shall lawfully elect to alter or change the grade of any street or alley or other public way, the Company, 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. Costs. 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 15. Preferential or Dis- criminatory Practices Prohfbted. The Company shall not, as to rues, charges, service faeilitie-, 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; provided that, nothing in this franchise shall be deemed to pro- hibit the establishment of a grad- uated scale of charges and classi- fied rate schedules to which any customer coming within such clas- sification would be entitled. Section 16. Rales—Initial. The Company shall be entitled to charge water users a fair and rea- sonable rate for the furnishing of water. Initial rates are established as follows: Flat rate -4.50 per thousand gallons. Minimum rate—$3.00 per month. Section 17. Rales—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. Depreciation shall be a proper expense for pur- poses of determining the Com- pany's return upon its invest- ment. If the Company desires to increase rates as above provided, it shall file with the Village Clerk, at least 90 days prior to the date the grantee desires to have the new rates become effective, a schedule of the proposed in- creased rates. Such new rates shall become effective on the date requested by the Company un- less 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 16. 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 19. 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 ma- terials and labor and in no event shall such charges exceed the sum of $500.00. 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 and income statement for the operation by the Company under this franchise. At the re- quest of the Village Council at any time, copies of income tax returns filed with the Federal Government shall be furnished by the Company to the Council. Section 21. Sale 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 29 below, the Village elects to obtain and take over the property of the Company in iLa entirety, thea in that event the Village shall attempt to make purchase of said property Oak a negotiated basis with the then owners. In the e••ent that such negotiationa should fail then the purchare price shall be determ- ined by three appraisers, one of whom shall be selected by the Village, one of whom shall be selected by the then owaen of the system and the third of whom shall be selected by the Asst two so chosen. Said appraisers shall hear the parties and make a de termination as to the value of the systein and their determination as to a fair sale and purchase price shall be binding upon add parties. Secthm 22. Insurance Ststean. 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 i -n an insurer approved by the Village Council 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 file a certificate of such insurance with the Village 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 'he extent necessary to so repair or replace such dam- aged or destroyed property. Section 22. Forfeiture. Any vio- lation by the Company, its ven- dees, lessee, or successors, of the provisions 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 hereun- der. Such forfeiture shall be in- stituted only after written notice to the Company by the Village and a continuation of such vio- lation, failure or default. In addi- tion thereto, any person, firm or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misde- meanor and punished according- ly. Each day of such violation shall constitute a separate offense. Section 2C Effective Date. The franchise and rights herein grant- ed shall take effect and be in force from and after the final passage hereof as required by law, filing of acceptance by the Company with the Village Clerk and pub- lication; and shall continue in force and eft ect 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 of passage. Passed on first reading this 18th day of May, 1951. (Sgd) Thos. J. Keefe, Mayor Protem, Attest: H. T. Johnson, Clerk. 5-25-81