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